[Congressional Record (Bound Edition), Volume 155 (2009), Part 16]
[House]
[Pages 21842-21896]
[From the U.S. Government Publishing Office, www.gpo.gov]




           STUDENT AID AND FISCAL RESPONSIBILITY ACT OF 2009

  The SPEAKER pro tempore. Pursuant to House Resolution 746 and rule 
XVIII, the Chair declares the House in the Committee of the Whole House 
on the state of the Union for the consideration of the bill, H.R. 3221.

                              {time}  1626


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the state of the Union for the consideration of the bill 
(H.R. 3221) to amend the Higher Education Act of 1965, and for other 
purposes, with Ms. Jackson-Lee of Texas in the chair.
  The Clerk read the title of the bill.
  The CHAIR. Pursuant to the rule, the bill is considered read the 
first time.
  The gentleman from California (Mr. George Miller) and the gentleman 
from Minnesota (Mr. Kline) each will control 30 minutes.
  The Chair recognizes the gentleman from California.
  Mr. GEORGE MILLER of California. Madam Chair, I yield 4 minutes to 
the gentleman from Texas (Mr. Hinojosa), the Chair of the Subcommittee 
on Higher Education.
  Mr. HINOJOSA. Madam Chair, as chairman of the Subcommittee on Higher 
Education, Lifelong Learning and Competitiveness, I rise in support of 
H.R. 3221, the Student Aid and Fiscal Responsibility Act.
  I congratulate Chairman George Miller for his great leadership in 
bringing this historic legislation to the House floor. I also want to 
thank my colleagues from the Education and Labor Committee on both 
sides of the aisle for supporting the largest investment ever in higher 
education.
  The bill embraces President Obama's educational priorities by helping 
us to reach the goal of producing the most college graduates in the 
world by 2020 and makes our workforce strong and competitive. This bill 
will provide much-needed relief to families who are struggling to pay 
tuition, as well as students and workers who seek to access high-
skilled and family-sustaining jobs.
  The legislation will increase affordability, accessibility, and 
college completion rates, particularly for first-generation college, 
low-income, minority, and middle class students.
  H.R. 3221 invests $40 billion to increase the maximum annual Pell 
Grant scholarship to $5,550 in 2010, and by 2019 increase it to $6,900.
  It also provides low-income and middle class families with reliable, 
affordable, high-quality direct Federal student loans, and simplifies 
the application process for financial aid.
  H.R. 3221 strengthens our Nation's minority-serving institutions, 
MSIs, particularly in the STEM areas so students can stay in school, 
graduate and succeed in our global economy. It does this by investing 
$2.55 billion in our Nation's minority-serving institutions over a 10-
year period. We estimate that this funding will reach at least 500 
institutions of higher learning. These investments will expand 
educational opportunities in the STEM fields and support students in 
staying in school and graduating at our Nation's Historically Black 
Colleges and Universities; Hispanic-serving institutions; tribally 
controlled colleges and universities; predominantly black institutions; 
and Asian American and Native Pacific Islander-serving institutions.
  These investments will create a new generation of minority workers in 
STEM fields, professionals that our country desperately needs to remain 
competitive in our world.

                              {time}  1630

  For decades, MSIs have provided educational opportunities for tens of 
thousands of minority, low-income, and first-generation college 
students due to their accessibility, affordability, and close proximity 
to the communities they serve. If we hope to reach President Obama's 
goals, we must make sure that more minority students are completing 
advanced college degrees.
  This bill invests $10 billion in our Nation's community colleges to 
support President Obama's American Graduation Initiative and expands 
educational opportunities to millions of students who attend our 
Nation's community colleges.
  These institutions serve young people who are just beginning their 
careers but need flexible schedules to work to pay their tuition and 
living expenses. They serve displaced workers who must upgrade their 
skills to pursue a new career and enter high-growth sectors of our 
economy.
  They serve older students and adult learners who seek specialized 
training and are attending their local community college for the very 
first time. They serve veterans who are pursuing postsecondary 
education after having served in the military.
  This bill includes $8 billion in investments in early childhood 
education to increase access to high-quality early education programs. 
And we know that children who have an early start by the time they 
enter kindergarten are more likely to go to college and succeed. There 
is proof that early reading and writing, from cradle to 5 years of age, 
equals success in school.
  The CHAIR. The time of the gentleman has expired.
  Mr. GEORGE MILLER of California. I yield the gentleman an additional 
30 seconds.
  Mr. HINOJOSA. This legislation is fiscally responsible and helps 
reduce the deficit. It complies with pay-as-you-go and directs $8 
billion in savings back to the U.S. Treasury to help pay down the 
deficit.
  Our competitiveness and innovation in the world depends on our 
ability to invest in human capital and train a workforce for the 21st 
century. I urge my colleagues to support this historic investment in 
higher education.
  Mr. KLINE of Minnesota. Madam Chair, I rise in opposition to H.R. 
3221, and yield myself such time as I may consume.
  Government takeover. We have seen and heard a lot of those two words 
lately--in the credit markets, the banking sector, the automotive 
industry, and even the building of schools. Then there's health care--
an industry that assumes one-sixth of America's gross domestic product. 
We're not talking about health care today, but perhaps we should be.
  The vote we will take on student lending is a culmination of a plan 
set in motion more than a decade and a half ago--and one that bears an 
eerily strong resemblance to the health care debate that rages on 
today.
  In 1993, Congress created a so-called government option for college 
loans. The idea of this Direct Loan Program was to introduce 
competition and hold down costs. Sound familiar? Just 16 years later, 
we're about to vote on a plan that would completely and permanently 
eliminate the private sector's role in originating and raising capital 
for Federal student loans. In its place will be a one-size-fits-all 
Federal loan model that requires the U.S. Treasury to directly lend 
tens of billions of dollars each year--tens of billions of dollars we 
don't have, and will be forced to borrow.
  So why is Congress intervening to declare one program the winner? If 
it's

[[Page 21843]]

truly about competition, the best program ought to win in the 
marketplace. In fact, one program has won--the public-private 
partnership of the Federal Family Education Loan Program, which is the 
choice of three-quarters of colleges and universities today.
  By eliminating the FFEL program, we will lose the choice, the 
competition, and innovation of the private sector. That includes 
everything from technological innovations to loan discounts and 
borrower services. We will also lose jobs--an estimated 30,000 or more 
in congressional districts from coast to coast.
  And what are we getting in return? My colleagues on the other side of 
the aisle tout this legislation as being fiscally responsible. 
Respectfully, I beg to differ.
  The bill is awash with new entitlement programs, including a new 
early childhood program to develop and fund programs at the State 
level; a new program to build and renovate schools; and a new program 
to bolster community colleges and involve the Federal Government in 
developing online curriculum.
  Add to these new programs the cost of expanding Pell Grants, funding 
for Minority Serving Institutions and the Perkins Loan Program, and we 
have on our hands a massive entitlement spending spree. This spending 
is allegedly paid for by $87 billion in so-called savings from 
elimination of the FFEL program. Unfortunately, the numbers just don't 
add up.
  CBO tells us the bill will require $13.5 billion in new discretionary 
spending--real money that simply isn't counted in the mandatory score. 
CBO also tells us that, using current figures, the Pell Grant expansion 
will cost $11.4 billion more than scorekeepers originally predicted--
again, a cost not counted for in the ``official'' score. That means 
this bill will cost closer to $15 billion over the next 10 years--and 
when market risk is factored in, the cost spikes to nearly $50 billion 
more.
  Madam Chair, there's a better way. Later in the debate, I will join 
the ranking member on the Higher Education Subcommittee, Mr. Guthrie, 
in offering an amendment to stabilize student lending by extending 
programs approved on a bipartisan basis last year.
  With this plan, we can put $13 billion towards deficit reduction and, 
most importantly, we can convene a nonpartisan commission to study 
long-term structural changes to our student lending systems. In short, 
it's a thoughtful, reasonable approach to determine what's best for 
students, schools, and taxpayers alike.
  I urge my colleagues to slow down, take a breath, and ask yourself 
whether another government takeover is what we need right now. I think 
the answer is a clear ``no.''
  I reserve the balance of my time.
  Mr. GEORGE MILLER of California. I yield myself 30 seconds. I 
appreciate that the gentleman wants to make this comparison between a 
public option and the private sector. Let's run down what happened over 
the last 10 years.
  The private sector took $100 billion in subsidies, and as they became 
the most profitable sector of the American economy, they couldn't give 
back any of those subsidies. While they were getting the $100 billion 
in subsidies, they were engaged in price-fixing, anti-competitive 
practices, briberies, conflicts of interest, improper disclosure. And, 
at the end of that, they needed a bailout.
  Sound familiar? Want to invest again?
  The CHAIR. The time of the gentleman has expired.
  Mr. GEORGE MILLER of California. I yield myself an additional 30 
seconds. Or, you can look at the public option here. The public option 
offered a product of equal value, very low cost, easy to administer, 
attractive to the people who used it. Major universities have used it 
for years with any problems, very complimentary about it, and it is in 
fact saving the loan industry at this very time because the private 
system has collapsed.
  I yield 4 minutes to a member of the committee, the gentleman from 
New York (Mr. Bishop).
  Mr. BISHOP of New York. I thank the chairman for yielding, and I 
thank him for his leadership in bringing this very important piece of 
legislation to the floor. I want to amplify what the chairman just said 
because I think it's important for all of us to understand how the FFEL 
program works right now.
  The way it works right now is that the Federal Government is 
providing approximately 60 percent of the capital that the private 
lenders provide to needy students. We do so because of the lack of 
liquidity in private credit markets.
  So what we are doing is, we are paying private lenders a subsidy so 
that they will have the privilege of lending federally-originated money 
to their borrowers. We guarantee repayment of that money to the tune of 
97 percent of the amount outstanding and the private lenders reap 
whatever interest payments are paid by the borrowers.
  This is a really, really good deal for private lenders. It is a deal 
that costs the American taxpayer approximately $8 billion to $9 billion 
a year that we don't need to spend in that fashion. We can provide--we, 
the Federal Government--can provide the loan capital that students 
need. In fact, we now provide approximately 30 percent of the schools 
in the country that participate in the Guaranteed Student Loan Program, 
participate in the Direct Loan Program.
  I used to work at a school that participated in the Direct Loan 
Program. We made the transition from private lending to direct lending 
early on, and it was an absolutely seamless transition. We did not have 
to add a single staff person. Our students felt very advantaged by the 
change that we made. And we are now asking that all schools make that 
change, and we are doing so so that we can redirect that $8 billion or 
$9 billion that right now goes to pad the profit margins of the private 
lenders and direct that money primarily to needy students.
  Let me put that in context. We right now rank sixth in the world in 
terms of the college-going rate for our population. We used to be 
first. Approximately only one out of every two students that enter 
college ever graduates. Those are two pretty daunting statistics if we 
are going to remain competitive in a very difficult global marketplace.
  We need to have an educated workforce. We need to have a workforce 
that can be competitive. And the pathway to that is access to college--
and not just access to college, but degree attainment.
  This bill provides at least the financial mechanism for students to 
be able to achieve that goal. We dramatically expand the availability 
of the Pell Grant and increase the Pell Grant maximum in a way that it 
keeps pace with inflation so that it maintains its buying power.
  We guarantee access to capital in the Guaranteed Student Loan 
Program, a subject I just talked about. We dramatically expand the 
availability of Perkins loans. Right now, students borrow $1.5 billion 
in Perkins loans. We would increase that amount to $6 billion a year, 
dramatically expanding both the number of students that can benefit and 
the number of schools that participate.
  We also simplify the financial aid process. This is a process that 
has proven very daunting to many, many students. I used to administer 
that process. I recognize firsthand how difficult it can be. We 
simplify the financial aid process, particularly the administration of 
the so-called FAFSA form, and we remove that barrier, that roadblock 
that has prevented many students from pursuing their dreams. And we do 
all of this by not adding a dime to the bill that the taxpayers will be 
asked to carry. We redirect money, as I say, from the banks. And we do 
so in a fashion that helps needy students.
  Mr. KLINE of Minnesota. At this time I'd like to yield 3 minutes to 
the ranking member on the Higher Education Subcommittee, the gentleman 
from Kentucky (Mr. Guthrie).
  Mr. GUTHRIE. I rise in opposition to H.R. 3221 because I believe 
there's a better way to protect students, colleges, and taxpayers. The 
authors of this legislation will argue that the purpose of H.R. 3221 is 
to simply stabilize

[[Page 21844]]

student lending. They claim the Federal Family Education Loan program, 
or the FFEL, is on ``life support'' and must be replaced with the 
government-run Direct Loan Program.
  The FFEL program has been a stable, reliable source of private 
capital for student loans for more than 40 years. It provides a choice 
of loan providers--from large, national lenders to small, local 
nonprofits--and an array of benefits and services.
  Colleges and universities overwhelmingly prefer the FFEL, with 70 to 
80 percent of schools consistently opting for the public-private 
option.
  Dr. Gary Ransdell, president of Western Kentucky University, has told 
me that the end of the FFEL program would, ``mean the loss of financial 
literacy programs, college access programs, default aversion programs, 
borrowing benefits, and other support services.''
  Further, Dr. William Huston, president of St. Catharine College, a 
small, independent private college in my district, has shared his 
concerns about the impact the policy shift will have on schools of his 
size. He said the shift, ``would mean investing staff time and money to 
change systems and processes at a time where budgets have been cut to 
the core.''
  Clearly, the rush to the Direct Loan Program will have a major impact 
on schools and students.
  Now, it is true that the FFEL program was hit by the global market 
collapse that rocked our economy last year--and when that happened, 
student loan capital dried up, along with the capital across all 
sectors. And when stability was needed, Congress stepped in.

                              {time}  1645

  Last year, Congress passed the Ensuring Continued Access to Student 
Loans Act, or ECASLA, which provided a temporary Federal backstop to 
protect borrowers from loan disruption. This program has worked 
exceedingly well, and to my knowledge, not a single borrower has been 
left without a loan. The program is still in place today, and if our 
goal is simply to stabilize student lending, there is a simple 
solution: we should extend programs under ECASLA to retain the Federal 
backstop until the economy rebounds.
  These programs are working today, which means there would be no 
confusion for schools and no uncertainty for borrowers if we were to 
simply extend this program while the market remains turbulent. In fact, 
Republicans had offered a plan that would exactly do that.
  Later today I will join Ranking Member Kline to offer an alternative 
to H.R. 3221. Our plan extends ECASLA through 2014, aligning it with 
other programs under the Higher Education Act. In the meantime, we are 
calling for a commission to study student loan programs and propose 
alternatives that will protect borrowers and taxpayers alike. Simply 
put, our plan is a way to slow down and take a more thoughtful, 
reasonable approach to long-term student loan reform. Instead, we're 
going to vote on a plan that will reshape the way students pay for 
college in this country and radically expand the Federal Government in 
the process. Proponents of this bill claim it saves $87 billion for 
taxpayers.
  The CHAIR. The time of the gentleman from Kentucky has expired.
  Mr. KLINE of Minnesota. I yield the gentleman 1 additional minute.
  Mr. GUTHRIE. In reality, that $87 billion is a combination of savings 
and government earnings that come because the Federal Government 
charges students a higher interest rate than it costs to borrow, 
turning student loans into a profit-making venture for the government. 
And what do we do with this $87 billion? We are taking student money 
and spending much of it on an array of new government programs.
  Students and schools will lose the value of choice, competition and 
innovation. Meanwhile, taxpayers will be on the hook for massive new 
entitlement spending and a huge expansion in government borrowing to 
finance loans that now need to be made directly from the Federal 
Treasury.
  I urge my colleagues to join me in voting ``no.''
  Mr. GEORGE MILLER of California. I yield 2 minutes to the gentlewoman 
from Hawaii (Ms. Hirono) who has put an awful lot of work into the 
early childhood education section of this legislation.
  Ms. HIRONO. Madam Chair, as a member of the House Education and Labor 
Committee and as an original cosponsor of this bill, I rise in strong 
support of H.R. 3221, the Student Aid and Fiscal Responsibility Act. I 
thank Chairman Miller for his leadership on this, as well as on so many 
other important measures.
  While this bill includes many significant provisions, the part of the 
bill that I am especially excited about is the creation of the Early 
Learning Challenge Fund. Like the PRE-K Act I introduced in 2007 and 
again earlier this year, the Early Learning Challenge Fund would 
establish a competitive grant program to support, not supplant, States' 
efforts to improve the quality of their early education programs. 
Evidence shows that quality early education is the best foundational 
investment we can make in our children.
  Last night I had the opportunity to meet with members of the 
philanthropic community who came together in recognition and support of 
quality early education. To quote these people, quality early education 
is ``the most powerful investment America can make.'' They not only 
understand the value of quality early learning, but they support 
successful programs all across the country, including in Hawaii. And 
they are not alone. Educators, economists, brain development 
researchers, police chiefs, Chambers of Commerce, retired military 
personnel all have emphasized the critical need for quality early 
education to prepare our children for success at school and in life. 
This bill is an important step in preparing our children for such 
success. I urge my colleagues to support this measure, a bill that 
makes important investments in education for all of our keiki--that's 
Hawaiian for children--from birth through college.
  Mr. KLINE of Minnesota. Madam Chair, at this time I am pleased to 
yield 3 minutes to the distinguished gentleman from Indiana (Mr. 
Souder).
  Mr. SOUDER. I thank our ranking member.
  The loud sound you hear is the big gulp of the public option 
swallowing the private option. We hear all kinds of excuses why it's 
not the same, but here are some of the key business points to remember 
here: There has already been confusion in the quotes here on the floor 
about this 7 percent that the private sector has between revenues, 
which is the loan income that the banks receive, and their profits. 
There's also confusion between the net profit and the gross profit. The 
gross profit has all the expenses coming out, whereas the net profit is 
the bottom line, which is a relatively small number.
  The reason this is important is that government, if they take this 
over and swallow the whole public sector into the public option, will 
have basically the same costs. Only when you compare cost to cost, the 
government can't deliver at the same price as the private sector. It 
never has, it never will in any category in the history of the United 
States.
  Now in this expense question--and we've argued about this for years--
one of the things that's clear is that the Federal Government doesn't 
depreciate. So fixed expenses, like buildings, aren't counted in their 
expenses that come off of the net profit, because that's a different 
budget. We do buildings in one appropriations bill, in one lump sum. It 
is not something that you would amortize over time.
  Mixed expenses--for example, the expenses at the Department of 
Education, such as lighting in the building, even in many cases staff--
aren't assigned to the student loans. They're assigned to the 
Department of Education. But even then when you ask the private sector 
to compete, even paying in that profit, 80 percent of the colleges 
chose the private sector because the service delivery was better. In 
fact, hopefully, the government is going to be wise enough here that 
they're going

[[Page 21845]]

to contract out with the private sector at the end of the day to 
deliver much of these services because there is no capability in the 
Federal Government to deliver this.
  Now the proposal, on the face of it, isn't even plausible that we're 
hearing about all these new funding programs when the net profit out of 
the private sector is minimal compared to the new program. So where 
does this money come from? The best I've been able to determine is it's 
a different method of borrowing. Banks have to use the LIBOR rate, the 
interbank lending rate, whereas we are apparently going straight to the 
Fed and Treasury. That's merely a transfer of government funds that are 
off budget onto budget but still reduces the liquidity in the banking 
system, and it's being used to subsidize the new programs in the 
student loans.
  Now why does this become important? Why won't the same grounds apply 
to SBA? Because if SBA goes directly into this same fund, there's no 
reason to use a bank. On what grounds do we use banks for farmers' 
loans? If they're going to borrow the money directly from the Treasury 
and the Fed, they can borrow it cheaper than any bank, and that we 
should eliminate any loans that are going through anywhere in the 
private sector where there is a government alternative.
  The CHAIR. The time of the gentleman from Indiana has expired.
  Mr. KLINE of Minnesota. I yield the gentleman an additional 30 
seconds.
  Mr. SOUDER. Thank you.
  The key question here is, the constitutional authority of the Federal 
Government is to regulate interstate commerce. Then we have the Federal 
Reserve System that was set up to provide a balance and stability in 
the funding of the United States. What we did not create is a national 
bank.
  This bill is the beginning of the creation of a national bank, and 
that there is no logical reason why every other lending category won't 
become a national bank, too. That's the big gulp we are hearing here 
and in many other areas, a massive government takeover in category 
after category.
  Mr. GEORGE MILLER of California. I yield 2 minutes to the gentlewoman 
from Nevada (Ms. Titus).
  Ms. TITUS. Thank you, Mr. Chairman.
  I rise today in strong support of H.R. 3221. Nevada has been 
particularly hard hit by the economic downturn. We're facing record 
unemployment. The investments in this bill will help Nevada's students 
and dislocated workers obtain the education and training they need to 
compete in the workforce, and it will do so in a fiscally responsible 
way.
  Specifically, this bill invests more than $60 million in Pell Grants 
for Nevada's Third Congressional District, making more than 13,000 
students eligible for aid. It also provides $1 million a year for the 
next 5 years to bolster colleges' access and completion support 
programs for students in Nevada. It strengthens our community colleges 
by ensuring that Nevada receives nearly $19 million to help finance 
projects to renovate and construct state-of-the-art facilities; and 
finally, it invests in 21st century green high-performing public 
schools by providing Nevada's school districts with more than $25 
million over the next 2 years for school modernization, renovation and 
repairs to create healthier, safer and more energy-efficient teaching 
and learning climates, the implementation of which will put Nevadans to 
work.
  I am also pleased that this bill includes an amendment that I offered 
to establish an advisory council to the Secretary of Education on green 
high-performing schools. Quality education is the key to prosperity for 
individuals and for our country. I urge your support.
  Mr. KLINE of Minnesota. Madam Chair, at this time I am very pleased 
to yield 3 minutes to the gentlelady from Illinois (Mrs. Biggert).
  Mrs. BIGGERT. I thank the gentleman for yielding.
  I rise in opposition to this bill. Sixty years ago, the only student 
loans available were private loans. Unfortunately, the system left out 
many students with either limited financial resources or poor or 
nonexistent credit. So in 1965, Congress created the Federal Family 
Education Loan Program which has successfully administered and 
regulated federally backed private student loans for the past 44 years.
  But President Clinton decided that we could save money by creating a 
new federally run program to provide student loans at public option. At 
present, just under one-third of colleges have chosen the public 
option, also known as the Direct Loan Program. However, Democrats have 
decided that by leveraging the borrowing power of the Federal 
Government, which Congress has more aptly demonstrated, they can save 
money, as scored by CBO.
  We all know that because of the Federal Government's size and ability 
to raise taxes at any time to pay off its debts, it can borrow money at 
a cheaper rate than private banks. By requiring all students that use 
Federal loans to borrow directly from the government, this bill allows 
the government to make a greater profit off students, count it as a 
``cost savings,'' and then spend it on other educational priorities.
  It is interesting that after the government's student loan ``public 
option'' failed to gain widespread acceptance, the other side of the 
aisle now proposes to eliminate all other choices so that students are 
forced into the public option. Even more interesting is that the other 
side of the aisle has proposed another ``public option'' that will 
supposedly save money by using the government's size to underpay 
doctors and hospitals, which forces private plan owners to make up the 
difference. I fear that in a few years, the public plan may soon be the 
only affordable option available to most Americans.
  I don't want a single-payer health care system, and I don't want a 
single-payer student loan program. Just as 83 percent of Americans are 
satisfied with their current health care, over two-thirds of all 
colleges have elected to go with the privately administered FFEL 
program. We should let colleges continue to select the student loan 
program that works best for their students, not the one chosen by 
bureaucrats in Washington.
  I urge all of my colleagues to join me in voting ``no'' on this bill 
to make sure that the student loan ``public option'' is not the only 
option.
  Mr. GEORGE MILLER of California. I yield 2 minutes to the gentlewoman 
from California (Ms. Chu), the newest member of our committee.
  Ms. CHU. Thank you, Chairman Miller.
  As a professor for over 20 years in the L.A. Community College 
District, I know firsthand how important community colleges are to 
helping hardworking Americans achieve their dreams. About one out of 
every two college students attends a community college, and they are 
some of the hardest workers I have ever met. My students came from all 
walks of life. They were immigrants, single moms and laid-off workers, 
and many of these students were the first in their families to go to 
college.
  Community colleges are the backbone of our Nation's workforce, 
providing students with technical training to fill our Nation's most 
critical fields. They excel at meeting the needs of students from all 
backgrounds and circumstances. The investments in this bill truly 
reflect the role community colleges play in our economy. Seven billion 
dollars is provided to reinvigorate the community college experience, 
to improve instruction, initiate job placement counseling, and create 
nontraditional programs for students on the weekends, evenings or even 
online.
  There is $2.5 billion in grants provided to renovate community 
college facilities. It will allow them to accommodate their growing 
enrollment and provide students with modern equipment and facilities so 
they are better prepared when they graduate.
  In an increasingly competitive world economy, America's economic 
strength depends upon the education and skill of its workers. This bill 
will help us to meet that challenge.
  Mr. KLINE of Minnesota. Madam Chair, could I inquire how much time is 
remaining, please?

[[Page 21846]]

  The CHAIR. The gentleman from Minnesota has 16\1/2\ minutes, and the 
gentleman from California has 15\1/2\ minutes remaining.

                              {time}  1700

  Mr. KLINE of Minnesota. Madam Chair, at this time, I yield 3 minutes 
to the distinguished gentleman from California (Mr. McClintock).
  Mr. McCLINTOCK. I thank the gentleman from Minnesota.
  Madam Chairman, this really is a case study in how a public option 
ultimately becomes a public monopoly in a span of just a few years.
  The gentleman from Minnesota is absolutely right, this Direct Loan 
Program was established in 1993 as a public option. It was designed to 
increase consumer choice; that's what we were told at the time. It had 
only one problem. The consumers never warmed to it.
  At its peak, the government Direct Loan Program only attracted 34 
percent of loan volume. Today, even with all of the financial 
difficulties in the private sector, it has earned only 27 percent of 
the market. The rest of that market is ably administered by 1,500 
active lenders and servicers and guarantee agencies that employ more 
than 30,000 private sector workers. This bill literally shuts down 40 
years of successful private sector involvement with student loans and 
hands the government monopoly control. As the bumper sticker warns, the 
government hates competition.
  We're told this is going to save money. Well, pardon my skepticism, 
but I seriously doubt that the same government that runs FEMA is going 
to bring efficiency to the student loan program. In fact, it's 
precisely the fierce competition among loan providers that has produced 
lower prices for students and universities and that produces 
innovations in loan delivery and processing and servicing, not to 
mention broader benefits such as college planning services, financial 
literacy education, default aversion, and FAFSA assistance.
  One of those providers is the California EdFund, near my district. 
Last year alone, the EdFund helped nearly 420,000 borrowers to avoid 
default. They saved taxpayers $4.2 billion in default claims; that's 
one provider, $4.2 billion in savings for American taxpayers.
  Before the government took over our automobile manufacturers, Will 
and Ariel Durant asked this question: What makes Ford a good car? 
Chevrolet. Competition. That creative and innovative force is snuffed 
out by this bill for the student loan industry. And mark my words, if 
this bill becomes law, we are going to be back here in a few years to 
address growing cost overruns and inefficiencies in yet another failed 
government monopoly program.
  Mr. GEORGE MILLER of California. I just want 10 seconds to say that 
I'm glad the gentleman mentioned the California EdFund. The EdFund 
supports this legislation.
  I yield 2 minutes to the gentleman from Iowa (Mr. Loebsack), who was 
very involved in writing this legislation.
  Mr. LOEBSACK. Madam Chair, I rise today in strong support of the 
Student Aid and Fiscal Responsibility Act. In particular, I want to 
thank Chairman Miller and all of my committee colleagues for their 
great work on this legislation.
  I am particularly pleased this bill contains legislation I worked on 
with Chairman Miller, Congressman Kildee and Congressman Chandler to 
help modernize, renovate, and repair our crumbling public schools with 
energy efficient and renewable resources.
  Schools across America in every State are deteriorating. In my State 
alone, the GAO has found that 79 percent of all schools needed to 
repair or upgrade their buildings and facilities. Providing schools 
with funds to help leverage local dollars to modernize their schools in 
need of repair will also create good-paying local jobs in every State 
and will help improve the safety and the health of our students.
  This legislation will provide much needed funds for school facility 
modernization projects over the next two fiscal years to help ensure 
our students have world-class, safe, healthy and energy-efficient 
environments in which to learn.
  Given the increasingly global nature of our economy and the 
workplaces our students will be entering, it is more important than 
ever that we dedicate the resources necessary to ensure children will 
be able to compete. With the passage of this historic Student Aid and 
Fiscal Responsibility Act, we will indeed be making a historic 
commitment to the next generation through significantly improved 
educational opportunities, and I urge my colleagues to vote for this 
bill.
  Mr. KLINE of Minnesota. Madam Chair, at this time, I yield 2 minutes 
to the gentleman from Indiana (Mr. Burton).
  Mr. BURTON of Indiana. If a government program is so great, why is it 
that the colleges and universities around the country--70 to 80 percent 
of them--are going with the Federal Family Education Loan Program? It's 
because it's better, it works better. They don't want to mess with the 
government bureaucracy.
  You know, in 1993, and I think it's been stated already, and I don't 
want to be redundant, but the Clinton administration resurrected the 
idea of the Direct Lending Program and they pushed it through Congress. 
It didn't take long for the program's reputation to become synonymous 
with slow, inefficient, government bureaucracy service. And the 
Minority Views section of this bill, H.R. 3221, reminds us that in 1997 
the program completely collapsed, as it probably will again, and was 
unable to make consolidation loans to borrowers. And in 1998, the 
Congress passed the Higher Education Amendments of 1998, which 
specifically blocked the Clinton administration from phasing out the 
FFEL Program because it did not make for sound public policy then, and 
it doesn't now.
  And I think it's extremely important. We have unemployment right now 
that's at 9.7 percent. I'm sure it's going to go over 10 percent. More 
than 30,000 private sector jobs are directly affected by what you're 
going to do today. In the State of Indiana, it's 2,356 jobs. And right 
in the Fifth District, it's 1,500 jobs. And our unemployment rate in 
that State is 10.4 percent. I don't understand, at a time of economic 
difficulty, you want to do something that's going to put more people 
out of work, especially when you're talking about a program that didn't 
work before, it was junked, and now you're going to resurrect it.
  I know you'll come up with a million ideas of why we ought to do 
this, but it's more government control, more government bureaucracy, 
something that hasn't worked, and the American people simply don't want 
it. We just passed the stimulus bill, and the stimulus bill obviously 
hasn't done a great deal to solve the problem.
  The CHAIR. The time of the gentleman has expired.
  Mr. KLINE of Minnesota. I yield the gentleman an additional 30 
seconds.
  Mr. BURTON of Indiana. Let me just say to my colleagues that we don't 
need more government right now; we need less government. We need 
competition in the private sector. We don't need to take over education 
like we did the automobile industry, the finance industry, and you're 
trying to do with the health industry. It doesn't work. Socialism 
doesn't work. Government control doesn't work.
  So I urge my colleagues to reconsider and think. It didn't work 
before. It won't work now.


                       Announcement by the Chair

  The CHAIR. The Chair reminds Members that they must address their 
remarks to the Chair.
  Mr. GEORGE MILLER of California. Madam Chairman, I yield 2 minutes to 
the gentleman from Massachusetts (Mr. Tierney), a member of the 
committee.
  Mr. TIERNEY. You know, to listen to this debate, Madam Chairwoman, 
you would think that we were disallowing banks and private lenders from 
lending. That's not the case at all. If they want to make private 
student loans, they can. The fact of the matter is that without a 
subsidy and without a guarantee, they probably won't find themselves 
very competitive. Right now, the government is providing 60 percent of

[[Page 21847]]

all the capital that goes in because that market didn't have the 
liquidity it required in order to keep up those loans.
  What we are seeing is the option here for the taxpayers--the same 
people who are trying to send their kids to school--transferring their 
money over to private lenders, guaranteeing the loans, giving them 
subsidies so they can make a profit that will be money that can't be 
used for Pell Grant scholarships and for low-interest loans.
  The people in my district, 100,000 residents in Massachusetts will 
get more Pell Grant scholarships because we take that money and, 
instead of giving it to the lenders, we give it to the families. One 
hundred thousand people in Massachusetts will get lower interest rate 
loans because we don't take that money and transfer their tax money to 
private lenders; we, in fact, keep it in the system. So when all that 
is said and done and we've improved education, as the President has 
called on us to do, we will put $10 billion back in to pay down our 
debt.
  This is a sad tale when they think that the only way they can keep 
private lenders in business is if we give them subsidies and then we 
guarantee their loans. If they want to compete, let them compete. They 
can make their loans. They can go out any time they want.
  But I think the American families are saying they're hard-pressed. 
Some of them are out of work. Some of them are making less. All of them 
have more bills to pay for college for their students. They want to be 
able to have access to those Pell Grant scholarships. They want to have 
lower interest rate loans so that their children have the opportunity 
to move forward. Better the opportunity for them than for the private 
lenders to pad their Wall Street investors' pockets. And that's why we 
have to move forward on this. That's what is going to improve this 
country and make us competitive as we move forward.
  Mr. KLINE of Minnesota. Madam Chair, at this time, I yield 2\1/2\ 
minutes to the gentleman from Wisconsin (Mr. Petri).
  Mr. PETRI. I thank my colleague from Minnesota.
  Madam Chair, I rise in support of the Student Aid and Fiscal 
Responsibility Act, which eliminates the Federal Family Education Loan 
Program and moves origination of all Federal student loans to the 
Direct Loan Program.
  For over two decades, I have championed direct loans as the most 
cost-effective way to provide student loans, but the defenders of the 
archaic FFEL guarantee loan program remain confused, so let me be 
clear.
  Currently, we have two Federal student loan programs which provide 
the exact same loans to students. FFEL is a Federal program, not a 
private loan program. Private lenders make the loans with two separate 
subsidies from the Federal Government: a guaranteed interest rate 
that's determined through the political process, not the markets, and a 
guarantee against default losses. Thus, if a student defaults, the 
taxpayers are on the hook, not the private lender. The profits are 
private, but the losses are socialized. FFEL is not a free enterprise.
  Over the years, FFEL has proven to be fraught with scandal and an 
unreliable source of funds, and it costs billions of dollars more for 
the taxpayers. A writer for a conservative columnist Bill Kristol's 
Weekly Standard Magazine aptly described the FFEL Program as ``a 
textbook example of crony capitalism.'' In contrast, the Direct Loan 
Program eliminates the middleman, lending directly from the Treasury, 
and all servicing and bill collection is handled by private companies 
operating through performance-based contracts.
  Over the years, there has been unanimous agreement by budget experts 
under both the Clinton and Bush administrations on the excessive costs 
of FFEL. Earlier this year, an estimate by the CBO once again 
reiterated this conclusion when it reported that switching to 100 
percent direct lending would result in nearly $87 billion in savings.
  At this point, I would like to engage in a colloquy with Chairman 
Miller.
  Chairman Miller, I support the grant program included in this bill 
that aims to strengthen community colleges. It's my understanding that 
public 2-year liberal arts colleges that offer associate degrees and 
certificate programs, such as the University of Wisconsin Colleges, 
will be eligible to compete for these funds.
  Do you agree with that interpretation?
  Mr. GEORGE MILLER of California. If the gentleman would yield, yes, I 
do agree with the intent of that language.
  Mr. PETRI. I thank the gentleman for his assurance. And I thank my 
colleague for the time.
  Mr. GEORGE MILLER of California. Madam Chair, I yield 2 minutes to 
the gentleman from Illinois (Mr. Hare), a vigorous member of the 
committee.
  Mr. HARE. Madam Chair, I rise in strong support of the Student Aid 
and Fiscal Responsibility Act. I am particularly pleased with the 
investment that this bill makes in the Pell Grant, early childhood 
education, and our Nation's community colleges.
  H.R. 3221 provides $76.1 million to increase the maximum Pell Grant 
in my congressional district to $6,900 by the year 2019. Additionally, 
over 16,700 Illinois students will now be eligible for Pell 
scholarships.
  The legislation also includes my amendments to remove barriers to 
expanding access to early learning programs to disadvantaged children, 
and to encourage States to implement positive behavioral supports in 
their early childhood education system.
  Finally, I added provisions to make west central Illinois's community 
colleges more competitive for college completion grants and to direct 
the Institute of Education Sciences to collect data on the location of 
grant recipients, ensuring that the most remote American communities 
are accessing funding opportunities.
  Again, H.R. 3221 takes bold steps towards improving the accessibility 
of higher education, invests in our children, and focuses on the 
important role community colleges play in economic development.
  I commend my chairman, Chairman Miller, and President Obama for this 
visionary initiative, and I urge all my colleagues to support it.
  Mr. KLINE of Minnesota. Madam Chair, at this time, I yield 4 minutes 
to the distinguished ranking member on the Budget Committee, the 
gentleman from Wisconsin (Mr. Ryan).

                              {time}  1715

  Mr. RYAN of Wisconsin. I thank the chairman.
  Madam Chairman, I rise in opposition to this bill. Let me be clear: I 
support education. It's an indispensable component of America's 
prosperity. I don't find fault with Pell Grants or student loans. What 
I find fault with is the way that the math doesn't add up in this bill.
  This bill includes a sleight of hand in so many ways that it either 
raises the deficit by $5.7 billion or by as much as $39 billion. It 
creates 10 new entitlement programs that will dramatically increase 
spending over the next 10 years, and it adds to our already alarming 
levels of borrowing. Let me try and explain what's going on with 
respect to how the budget gimmicks are employed here.
  First off, the bill claims to reduce mandatory spending by $7.8 
billion and dedicates that savings to deficit reduction; but through 
this budget gimmick, the bill shifts $13.5 billion in necessary program 
administrative costs over to the discretionary category where it cannot 
be counted by the Congressional Budget Office. With this gimmick 
removed, the bill actually increases the deficit by $5.7 billion. 
That's the smallest budget gimmick in this bill.
  The second largest budget gimmick in this bill is the way that it is 
scored, not using the kind of scoring that we use for such things like 
when we scored Fannie and Freddie or the TARP, where we used risk-
adjustment scoring under the credit reform rules. If you actually score 
it under the accurate rules that the CBO says it ought to be scored 
under, this bill would raise the deficit by $32 billion.

[[Page 21848]]

  Beyond that, these 10 new entitlement programs that are being created 
have artificial sunset dates in the law. The most permanent thing in 
Washington is a temporary government program; and if you repeal these 
artificial sunset dates, that's $39 billion added to the deficit, which 
is according to the Congressional Budget Office.
  This bill does not save money. This bill raises the deficit. This 
bill crowds out the private sector; it deprives students of choices; it 
uses enormous budget gimmicks, and it exploits the budget 
reconciliation system to try and say that it's saving money and 
reducing the deficit when, in actuality, using honest budgeting and 
honest accounting, it does nothing like that.
  Mr. GEORGE MILLER of California. I yield 2 minutes to the gentleman 
from North Dakota (Mr. Pomeroy).
  Mr. POMEROY. Madam Chair, I rise to engage in a colloquy with Mr. 
Miller, the distinguished chairman of the Education and Labor 
Committee.
  Chairman Miller, I rise to discuss an issue that is of critical 
importance to my district.
  We have a unique situation in North Dakota. As you know, the Bank of 
North Dakota was created by statute in 1919 to meet the needs of North 
Dakota citizens, and it is the only State-owned bank in the country.
  By State statute, the Bank of North Dakota has administered both 
lending and loan guarantee functions to assist families, schools, and 
lenders in providing reliable student loans for over 42 years. It is 
the only bank in the country to perform the guaranteed lending and 
servicing functions for the Federal student loan program. Mr. Chairman, 
this important institution has served more than 150,000 borrowers at 20 
postsecondary institutions in my State.
  The Bank of North Dakota has provided one-to-one counseling and 
default prevention workshops for schools and lenders, providing 
techniques to use when counseling borrowers on their student loan debt. 
The result has been an extremely low default rate under the FFEL loans 
administered by the Bank of North Dakota.
  For all of these reasons, I've been a huge supporter of this Bank of 
North Dakota student lending program. I commend the work that its 55 
State employees have done to make college accessible for North Dakota 
students. I have received concerns about altering the Bank of North 
Dakota's role in student lending programs, and I would like to address 
that issue.
  Mr. GEORGE MILLER of California. Will the gentleman yield?
  Mr. POMEROY. I yield to the gentleman.
  Mr. GEORGE MILLER of California. I thank the gentleman for his 
attention to this issue. I recognize that the Bank of North Dakota is 
an important institution in North Dakota and is different from any 
other lending institution in the country.
  Mr. POMEROY. I acknowledge that this legislation ensures a role for 
private lenders in the servicing of loans. Particularly, I thank the 
chairman for his inclusion of a provision that ensures nonprofit 
entities, such as the Bank of North Dakota, will be able to service 
student loans in their States.
  Will you work with me, Mr. Chairman, as this legislation moves to 
conference, to ensure that the Bank of North Dakota can continue to 
participate in the Federal lending program?
  Mr. GEORGE MILLER of California. If the gentleman will yield, yes, I 
will work with you, as this legislation moves to conference, to ensure 
that State banks have a continued role in the Federal student lending 
program.
  Mr. POMEROY. I thank the Chair.
  Mr. KLINE of Minnesota. Madam Chair, at this time, I am pleased to 
yield 2 minutes to the distinguished gentleman from Georgia, Dr. Price, 
a member of the committee.
  Mr. PRICE of Georgia. Madam Chairman, here we are again--growing 
government. The Student Aid and Fiscal Responsibility Act, an Orwellian 
title to say the least, marks the culmination of a 44-year journey to 
finally end the private student lending system, but is doing so in the 
midst of the worst economic downturn in generations.
  Now, perhaps my friends on the other side didn't notice this fact, 
but they must be ignoring that there are more than 14 million Americans 
unemployed on their watch. This legislation has real consequences for 
the economy, specifically in regard to job losses.
  Based on an employment survey of private lending loan participants, 
conducted jointly by the Consumer Bankers Association, the Education 
Finance Council and the National Council of Higher Education Loan 
Programs, this plan targets and may eliminate up to 30,000 private-
sector jobs. So nearly every State could expect to see job losses when 
the Democrats ``invest in education.''
  Remember, this is in the midst of the worst economic downturn in 
generations. It really has reached a point where the question has got 
to be asked: Is there any sector of the economy that the Democrats 
aren't planning to have the government control and dominate? Taking 
over the entire student lending system is just the latest example after 
health care, the national energy tax, financial institutions, and auto 
bailouts. Madam Chair, you could go on and on and on.
  The other side is clearly more committed to creating more bureaucracy 
than in preserving jobs, and more bureaucracy is exactly what happens 
when you have a public option in this or in any other arena.
  The finances, as my friend from Wisconsin talked about, would be 
laughable if they weren't so serious. Ten new entitlement programs 
convert the Perkins Loan Program from a discretionary program to a 
mandatory program. They create a new college access and completion fund 
with four new programs, costing $3 billion.
  The CHAIR. The time of the gentleman has expired.
  Mr. KLINE of Minnesota. I yield the gentleman an additional 30 
seconds.
  Mr. PRICE of Georgia. It creates a new $4.9 billion mandatory fund 
program to modernize, renovate, and repair public elementary and 
secondary schools. That's right, Madam Chair. It's Federal money for 
building local schools. They create the 70th--get that, Madam Chair--
the 70th program for early learning programs in this Nation at a cost 
of $8 billion. You'd think we could have relied on the previous 69. 
It's a bad idea, even after 44 years, whose time has not come.
  Mr. GEORGE MILLER of California. I yield 2 minutes to the gentleman 
from Oregon (Mr. Wu), a member of the committee.
  Mr. WU. Thank you, Mr. Chairman.
  Madam Chair, what is truly Orwellian is the distortion of argument 
presented by the other side in this debate because--do you know what?--
any bank that wants to make a student loan can continue to make a 
student loan. What will not happen anymore is making those student 
loans with a taxpayer subsidy, a subsidy where not only is there a 
guaranteed interest rate but where the deal is that the taxpayer keeps 
the bad loans and the private sector, the bank, gets to keep the good 
loans. That's not going to happen anymore. Who is going to benefit? 
Students.
  I want to rise in support of this bill, not only because of the 
tremendous advances in student financial aid--in Pell Grants and in 
working toward a better loan rate for students--but also because of the 
assistance to local schools to build safer, more energy-efficient 
schools, which would be better learning environments. Also, it will 
return jobs, and it will be more energy efficient for local 
communities.
  So many of our communities are in urgent need of renovated schools, 
and recent estimates show that America's schools need billions of 
dollars in retrofitting and repair just to have safe and healthy 
learning environments for our kids. The funds in this bill will also 
help our schools return money to our communities by saving energy and 
creating jobs.
  I want to especially thank Chairman Miller for working with me to add 
seismic retrofitting, better storm water runoff systems and additional 
clean energy sources as permissible uses under this bill for our local 
schools. In a place like Oregon, where better, sound science has found 
that we have a much higher earthquake risk

[[Page 21849]]

than we originally thought--and that science has just come out in the 
last 10 or 15 years--we urgently need the seismic retrofits and other 
safety measures. So I want to commend the Chair for working with me on 
this.
  I urge support for this legislation with all of its important 
components to create healthy and safe schools and also to financially 
assist college students through school.
  Mr. KLINE of Minnesota. Madam Chair, may I inquire again as to the 
time remaining.
  The CHAIR. The gentleman from Minnesota has 4 minutes. The gentleman 
from California has 6\1/2\ minutes.
  Mr. KLINE of Minnesota. Madam Chair, at this time, I am pleased to 
yield 3 minutes to the gentleman from East Tennessee, Dr. Roe. 
  Mr. ROE of Tennessee. I thank the gentleman for yielding.
  Madam Chair, I rise in opposition to H.R. 3221. What we are doing 
here today is using our country's financial crisis as an excuse to 
eliminate an industry that has proven to be more popular and at least 
as well run, if not more so, than its government counterpart. I might 
add that my son just used this program for his own education.
  A unified Democratic majority of the House, Senate and White House 
created the Direct Loan Program in 1993. Back then, many Republicans 
were skeptical that the Democrats' intention was to simply ``introduce 
competition and keep private lenders honest.'' In what is literally 
their first opportunity since then with a unified majority, they are 
proving Republicans' suspicions correct. The comparisons to our health 
care debate are obvious and too strong to ignore.
  In the debate we are having on health care, our friends on the other 
side of the aisle are making the case that we need the government and 
private industry to compete to provide consumers the best choice. So 
it's astonishing that we're considering a bill that eliminates the 
Federal Family Education Loan program, which consumers are choosing by 
a nearly 3-1 margin over its government-run Direct Loan Program 
alternative. So much for competition.
  What's worse is this legislation may increase the deficit even more. 
If we use CBO's generous assumptions, this bill will save $13 billion 
over the first 5 years, but only $7 billion over the next 10 years. 
That means in the second 5 years of the bill's scope, the bill will 
actually cost taxpayers $6 billion in new funding. This does not even 
begin to address what happens in the second 10 years when the spending 
doesn't have to be offset. It's just so disingenuous to pass more debt 
on to future generations while calling our actions ``fiscally 
responsible.'' That's only if the assumptions are correct. The CBO has 
estimated that, if the default rates run higher than their estimates, 
this bill could cost taxpayers $33 billion more in 10 years.
  The spending would be less troubling if it weren't mandatory 
spending, which means it goes on autopilot and is never reviewed by 
Congress for effectiveness, and it never has to comply with annual 
budgets.
  The most disappointing aspect of this whole debate is that there is 
an obvious bipartisan alternative that achieved 388 votes in the last 
Congress. The Ensuring Continued Access to Student Loans Act, which 
ensures that private lenders can make it through a tough credit crisis, 
should be what we're considering today instead of this partisan 
approach.
  Since passing in the last Congress, we should all be commending 
Chairman Miller and members of the committee who were here last year 
for a job well done. Instead, the Democrats are, once again, trying to 
have the government take over private industry, which is providing a 
service the American people like.
  Here is the bottom line in this debate: if you like multibillion 
dollar programs that have zero oversight from Congress and are on 
autopilot, vote for this bill. If you like to increase unemployment, 
you should vote for this bill. If you believe Washington bureaucrats 
will improve their performance and will find ways to become more 
efficient by eliminating their competition, you should definitely 
support this bill.
  If you feel like we should be seeking common, bipartisan ground on 
the future of our children's education, please join me in voting ``no'' 
on this program and in voting ``yes'' on the Kline amendment.
  Mr. GEORGE MILLER of California. I yield 2 minutes to the gentlewoman 
from New Hampshire (Ms. Shea-Porter).
  Ms. SHEA-PORTER. I thank Chairman Miller for yielding me time and for 
his leadership on this bill.
  Madam Chair, as a member of the Committee on Education and Labor, I 
rise to express my support for the Student Aid and Fiscal 
Responsibility Act.
  With this legislation, we are investing in our students. We are 
providing needed dollars to improve our early education programs and to 
rebuild our schools. We simplify the student aid application, the 
dreaded FAFSA. We invest $40 billion in Pell Grants. We do this, and we 
produce a savings of $10 billion over the next 10 years. I am pleased 
that we also recognize the important work done by the local nonprofits 
in our communities by ensuring them a continued role in the servicing 
of student loans.
  In my home State of New Hampshire, we have one of these local 
nonprofits, the New Hampshire Higher Education Assistance Foundation. 
NHHEAF is a well-respected member of our community, and it provides 
many jobs. I am proud that, through our working committee, we were able 
to ensure that NHHEAF continues to provide services to our students and 
to their families through both loan servicing and new grant programs 
provided for in this legislation.
  I am proud to be an original cosponsor, and I urge a ``yes'' vote so 
we can help American students and their families.
  Mr. KLINE of Minnesota. Madam Chair, I reserve the balance of my 
time.
  Mr. GEORGE MILLER of California. I yield 1 minute to the gentlewoman 
from California (Ms. Pelosi), our Speaker.

                              {time}  1730

  Ms. PELOSI. Thank you to the chairman for giving me this opportunity 
to come to the floor in strong support of the Student Aid and Fiscal 
Responsibility Act. I do so because education is the best investment 
individuals can make in themselves, parents can make in their children, 
and a Nation can make in its citizens and in its future.
  Today is possible because of the leadership of the distinguished 
chairman of the Education and Labor Committee, Congressman George 
Miller. Students across America have no better advocate for affordable 
and accessible higher education. Thank you, Mr. Miller.
  I would also like to acknowledge the chairman of the Subcommittee on 
Higher Education, Lifelong Learning and Competitiveness--I love that 
trio of jurisdiction--and a national leader on college affordability, 
Congressman Ruben Hinojosa. To them and all of the members of the 
Education and Labor Committee, we are all in your debt.
  We all know that for every additional year of higher education, an 
individual's earnings increase about 10 percent. We know that education 
is key to the prosperity of our Nation, the prosperity of the 
individual, the prosperity of the Nation.
  But for far too many, a quality higher education has been simply 
unaffordable. I have heard of cases where parents have been hesitant to 
encourage their children to strive for college because they can't 
afford to send them. What sadder testimony could there be for prospects 
for that person.
  Expanding access to higher education is essential to building 
America's way out of recession and keeping our Nation competitive. 
Innovation begins in the classroom. It is essential that we prepare our 
students for 21st century jobs by providing all Americans with the 
skills they need to compete.
  When Democrats came to the majority in 2007, we passed in a 
bipartisan

[[Page 21850]]

way the College Cost Reduction and Access Act. That was the single 
largest investment in education since the GI Bill in 1944, until today.
  Today we will make the largest investment in making college more 
affordable in the history of our Nation. On the 100th day of President 
Obama's presidency, in the House and in the Senate, we passed the 
budget. The President had three pillars for turning the economy around, 
for creating jobs in that budget, to create jobs to give tax breaks to 
the middle class and to reduce the deficit. The three pillars for 
turning the economy around and creating jobs were investments in 
education, in health care, and in a new energy policy for good, green 
jobs for the future.
  Today, we are passing legislation to support the education pillar of 
that budget. Again, education is essential to the fulfillment of 
individuals, the competitiveness of our Nation, and it is the 
foundation of our democracy.
  This bill is a great bill, and I want to again reiterate what others 
have said. It invests $40 billion in Pell Grants and increases the 
maximum grant that can be awarded. That makes a big difference to our 
students. It invests more than $2.5 billion in Historically Black 
Colleges and Universities and Minority-Serving Institutions, a big 
issue for Mr. Hinojosa and for many of us here. It strengthens the 
Perkins Loan Program that provides low-cost loans to students. It keeps 
interest rates low for those who have Federal student loans. This is 
very important.
  This means that more students will enter college, that they will 
graduate with less debt, and that the Federal loan initiatives that 
they and their families depend upon are strengthened for decades to 
come. On top of all of that, taxpayers will save money.
  Under Mr. Miller's leadership, we are investing in our children 
without heaping mountains of debt upon them. This legislation is 
fiscally responsible, following the strict standards of the pay-as-you-
go spending and saving for the taxpayer.
  You heard all the things I said about Pell Grants and college 
investments and Perkins loans and low interest rates. With the $87 
billion in taxpayer savings that this bill achieves, we are able to do 
all of that by switching to a Direct Loan Program. So it invests $77 
billion back into the education of our people while reducing the 
Federal entitlement spending by $10 billion. That's billion with a 
``B.''
  This legislation seizes the opportunity to strengthen our Nation by 
making an historic commitment to our students and a landmark investment 
in our future. I urge my colleagues to join the distinguished chairman 
and members of the committee in a bipartisan way and vote ``aye.''
  Mr. KLINE of Minnesota. Madam Chair, I will continue to reserve.
  Mr. GEORGE MILLER of California. I yield 3 minutes to the gentleman 
from New Jersey (Mr. Andrews), a member of the committee.
  Mr. ANDREWS. Madam Chair, I thank our chairman for yielding, and I 
rise in strong support of this bill.
  The issues before the House, tonight, Madam Chair, are these: Do you 
agree or disagree that the time has come to make college more 
affordable for men and women around this country, by making Pell Grant 
scholarships more available, student loans less expensive, more 
available. I think most people would say, Yes, we do agree with that.
  The issue before the House tonight is, is it time for the country to 
make an investment in the youngest Americans, 3- and 4- and 5-year-olds 
who have yet to go to formal school so they get the highest level of 
achievement early in their lives. I think most people would say yes, 
the answer is yes.
  The question before the House tonight is that at a time when many of 
our schools are inefficient, falling apart, badly in need of repair or 
replacement, is it time to put Americans back to work in repairing and 
rebuilding some of those schools? I think, Madam Chair, most people 
would say, yes, it is time to do that.
  But they are worried about the fiscal crisis that this administration 
and this Congress inherited. So maybe we shouldn't do those things.
  But if there is a way to reduce the deficit and achieve the things I 
just talked about, wouldn't it make sense to do that? And I think most 
would say, yes, it most certainly would, and that is precisely what the 
bill before us tonight does.
  The Congressional Budget Office, a fair, nonpartisan arbiter of the 
facts, said the following: The status quo student loan program that 
takes taxpayer money and gives it to private lenders and then rewards 
them to take a risk, not with their money, but with ours, doesn't make 
any sense.
  Let me say that again. The way the present program works is that 
private lenders get money from the taxpayers, take a risk with the 
taxpayers' money, and get paid a reward for taking that risk.
  Now, it is fine to take a risk with your own money--and we should 
encourage that in this country. But when you are taking a risk with the 
taxpayers' money, you shouldn't be rewarded for it. This bill stops 
that practice, and the Congressional Budget Office says that yields $87 
billion in savings over the next few years.
  Here's what we do. We invest $77 billion of that in the education of 
the people in this country, the strongest engine of economic growth 
known to this country, educating men and women to be scientists and 
teachers and engineers and craftsmen and craftswomen, educate our young 
children, repair our schools that are in need of repair.
  But then, the bill also takes $10 billion and reduces the deficit 
that we inherited. This is a chance to vote ``yes'' for college 
scholarships and loans. It's a chance to vote ``yes'' for educating the 
youngest Americans. It's a chance to vote ``yes'' to rebuild our 
crumbling schools and vote ``yes'' for deficit reduction.
  I urge a ``yes'' vote.
  Mr. KLINE of Minnesota. Madam Chair, can I inquire of the Chair the 
remaining time?
  The CHAIR. The gentleman from California has 1 minute remaining and 
the gentleman from Minnesota has 1 minute remaining.
  Mr. KLINE of Minnesota. Madam Chair, I yield myself the remainder of 
my time.
  It is clear, Madam Chair, that there is some dispute over what this 
does to the deficit. But I would argue that looking at the latest 
information from, as my friend from New Jersey says, the fair, 
nonpartisan arbiter of the facts, the Congressional Budget Office, this 
legislation will add to the deficit somewhere between $15 billion and 
$50 billion, subject to debate.
  What is absolutely clear is that forcing the public option is a 
government takeover. It does grow a government with more new programs, 
and it does force job losses. I think that's indisputable.
  Madam Chair, this is bad policy, it's a bad bill, and I urge a ``no'' 
vote.
  Madam Chair, I yield back the balance of my time.
  Mr. GEORGE MILLER of California. Madam Chair, I believe that many of 
those facts just cited are in dispute but I just want to say this: We 
got off to a rather fast start this afternoon, and I want to take a 
moment just to thank all of the members of the committee who worked so 
hard on this legislation, and I want to thank the Rules Committee for 
making the rule in order.
  I want to thank the minority. I know they don't agree with this 
legislation, but I appreciate the work that they have done with us on 
facilitating the markup of this legislation and bringing it to the 
floor. I just wanted to acknowledge that. We kind of just got right 
into the bill.
  But I wanted to say that on behalf of all of the staffs that have 
worked together. Again, they don't agree on the outcome or the bill in 
this fashion, but we still have to work together to meet our 
obligations as a committee to this House, and I wanted to take time to 
thank everybody.
  Mr. PLATTS. Madam Chair, today, we will be considering as part of the 
Manager's Amendment, an opportunity to provide financial assistance for 
higher education to the children of police officers, firefighters, and 
other first responders who made the ultimate sacrifice in the line of 
duty. Based on the Children of Fallen Heroes Scholarship Act that 
Representative Patrick Murphy introduced--with

[[Page 21851]]

myself as a lead cosponsor--a child of one of these fallen service men 
and women would become automatically eligible for the maximum Pell 
Grant amount. This benefit already exists for the children of military 
servicemembers who are killed in action.
   This legislation is aimed at ensuring we do right by police 
officers, firefighters and other first responders who put their own 
lives at risk everyday to keep us safe. Making a college education more 
accessible to the children of these fallen heroes is an important 
expression of our Nation's gratitude. This legislation is a justified 
price for our Nation to pay to ensure that those serving on the front 
lines in our communities know that a higher education will be within 
their children's reach should the unthinkable happen.
  Mr. McKEON. Madam Chair, the Federal Family Education Loan Program 
has been in place since the 1960's and has successfully allowed 
millions of students to further their education. And yet the Majority, 
today, seeks to eliminate this program that works so well. It is 
innovative, creative, adaptive, and flexible, none of which the 
federally-run Direct Loan program can match.
  In contrast, the federally-run Direct Loan program began in 1992. It 
was supposed to ``compete'' with the private option. Included in the 
program was a subsidy to schools that participated in the new program; 
an incentive. It didn't work. The highest percentage of the student 
loan market that Direct Loans ever commanded was 34 percent.
  Despite the limitations of the federally-run Direct Loans, the 
Majority will vote today to shut the more successful FFEL program down 
and consolidate the entire federal student loan program into the Direct 
Loan program.
  In the Federal Family Education Loan program, which features a 
public-private partnership, there are more than 4,000 participating 
institutions. Students attending these institutions have received 
approximately $66 billion this year.
  In comparison, in the federally-run Direct Loan program, where the 
loans come directly from the government, there are roughly 1,700 
institutions. Students attending these institutions have received 
approximately $22 billion this year.
  This is clearly a case of schools ``voting with their feet.''
  The Administration has argued that the FFEL program is ``on life 
support,'' and does not provide a stable source of capital. With all 
due respect, this is like arguing that the federal government should 
directly manufacture and sell cars because the Administration is now 
assisting Chrysler and GM.
  For some reason, Democrats believe that with all of the different 
types of lenders out there--from mortgage lenders, to small business 
lenders, to consumer lenders--it is student lenders that are ripe for a 
federal monopoly.
  So to those who claim the FFEL program does not work, I would only 
ask you to look back on the last 40+ years before the credit crisis 
that crippled our entire financial system. The private sector is and 
has been a stable source of capital--it's one that has served millions 
of students and families for decades. Instead of trying to keep private 
capital and innovation out of student lending permanently, perhaps we 
should be looking for ways to bring it back.
  The Federal Government has its hands in the financial services 
industry, the insurance industry, the auto industry, and now wants to 
get its hands on the energy industry, medical industry, and the student 
loan industry. Not to mention a plethora of new Czars with no 
accountability to the American people. Saddling taxpayers with close to 
$50 billion in additional risk and stripping them of their freedom to 
choose how to best fund their education is completely irresponsible.
  And I find it truly remarkable that at a time when the federal 
government should be helping create a climate conducive to job growth 
that they would choose to eliminate an entire private industry that 
helps students, employs over 35,000 people, and is much more effective 
than a government run program.
  I urge a strong ``no'' vote on this bill.
  Ms. JACKSON-LEE of Texas. Madam Chair, I stand here today to express 
my support for H.R. 3221, The Student Aid and Fiscal Responsibility 
Act. With an emphasis on improving access to financial support for 
higher education, increasing educational opportunities and preparing 
students for 21st century jobs by providing the resources they need to 
compete, H.R. 3221 ensures that we will be able to effectively rise up 
out of the ashes of what has been categorized as the longest and 
deepest economic downturn since the Great Depression. The national 
economic crisis has begun to infiltrate every corner of this country, 
and my home state of Texas is no exception.
  In the midst of this very difficult economic climate, there has never 
been a more important and relevant time for the passage of H.R. 3221, 
the Student Aid and Fiscal Responsibility Act, which provides access to 
affordable quality education opportunities. In accordance with 
President Obama's statement that the best investment in our economic 
future is an investment in our children's education, this important 
legislation helps to make college and post secondary education more 
affordable, and subsequently takes the necessary steps to invest in our 
country's economic future, all at no new cost to taxpayers.
  By making college more affordable, H.R. 3221 will enable more 
American students to not only matriculate on to higher education, but 
it will enable them to have the financial capability to graduate. This 
legislation provides all federal student loan borrowers with upgraded 
and modernized customer service, by providing them access to a public-
private partnership that will serve as a resource for loan support. 
H.R. 3221 prepares students and graduates for 21st century jobs by 
providing Americans with the requisite skills and cutting edge 
resources they need to compete in today's job market.


                            Early Education

  This vital legislation ensures that the next generation of students 
enters kindergarten with the skills they need to succeed in school, by 
reforming state standards and practices for birth-to-five early 
learning programs. This will have an immediate and direct impact on low 
income children entering kindergarten with the school readiness skills 
needed to succeed at this critical stage in learning development.
  It is important to note that H.R. 3221 creates an Early Learning 
Challenge Fund, which would award competitive grants to states that 
implement overall standards-based reform, thereby incentivizing each 
state to transform their early education standards and practices, to 
build an effective early childhood workforce, and improve the school 
readiness outcomes of young children from every demographic and every 
socio-economic background.


                          Direct Loan Program

  H.R. 3221 provides reliable, affordable high-quality Federal student 
loans for all families. By strengthening the Pell Grant System, and by 
converting all new federal student lending funds to the stable, 
effective and cost-efficient Direct Loan program, the proper lending 
infrastructure to ensure a solid lending program removed from the 
fluctuations of the economy will be in place. Beginning in July 2010, 
new federal student loans will be originated through the Direct Loan 
program, rather than through lenders who are subsidized by taxpayers in 
the federally-guaranteed student loan program. One of the major 
benefits of the Direct Loan program is that unlike lender-based 
programs, the Direct Loan program is insulated from market swings, will 
enable students to have access to low-cost federal college loans 
irrespective of the current state of the economy.


              Fiscal Responsibility and Financial Literacy

  My concern for the importance of instilling a sense of fiscal 
responsibility in our youth runs deep. Recent studies have indicated 
that young people do not even know basic financial topics such as the 
impact of student loans on one's credit, how to balance a checkbook, 
and the impact of automobile loans on one's credit. Because of my 
concern that young people are not sufficiently informed about financial 
literacy, this year I introduced H.R. 1325, to require financial 
literacy counseling for borrowers, and for other purposes. H.R. 1325 is 
relevant in the discussion of financial aid and fiscal responsibility, 
because approximately two-thirds of students borrow to pay for college 
according to the Center for Economic and Policy Research. Moreover, one 
in ten of student borrowers have loans more than $35,000. This 
legislation was designed to ensure that our nation's college students 
will be more prepared when incurring student loan debt and help them to 
avoid default as student loans severely impact one's credit score.
  Currently there is about $60 billion in defaulted student loan debt. 
Many students do not understand the reality of repaying student debt 
while taking out these loans. While most Americans have debt of some 
kind, student loan repayment is especially scary, as one cannot just 
declare bankruptcy and have their loans discharged. Due to the lack of 
financial literacy counseling for borrowers, student loan payments are 
often higher than expected. Recent graduates are unable to afford the 
monthly payments resulting in them living paycheck to paycheck, 
acquiring credit card debt and in extreme cases, grads leaving the 
country in order to avoid repayment and debt collectors.
  Students and parents are not currently receiving the proper or any 
information of the burden that their student loans will have once they 
graduate. This is possibly a result of the relationship between student 
loan companies

[[Page 21852]]

and universities, as some lenders offer universities incentives to 
steer borrowers their way.
  College campuses are one place that young Americans are introduced to 
credit and the possibility of living beyond their means. With proper 
loan and credit counseling the burden of debt incurred in college could 
be greatly reduced. Especially in this time of recession, financial 
literacy is one of the most important tools that we can give to our 
students in order to ensure their success in the future.
  My resolution was crafted to provide financial literacy training to 
students taking out Federal Student Loans and will require a minimum of 
4 hours of counseling including entrance and exit counseling. 
Counseling will include the fundamentals of basic checking and savings 
accounts, budgeting, types of credit and their appropriate uses, the 
different forms of student financial aid, repayment options, credit 
scores and ratings, as well as investing.


                    increasing funding for education

  Madam Chair, I also would like to address the relevance of this 
measure to our nation's Historically Black Colleges and Universities 
(HBCUs), and minority serving institutions, and to thank Chairman 
Miller, other members of the Committee and the staff for taking bold 
and necessary steps to ensure the long-term and robust engagement of 
these institutions for many years to come. I have always been a 
proponent of increasing educational opportunities for students of every 
level, from every socioeconomic background throughout our nation will 
yield the greatest return on our investment. Providing access to 
educational opportunities is critical to the nation's long term 
prosperity. Most recently I advocated on behalf of the Departments of 
Labor, Health and Human Services, and Education and Related Agencies 
Appropriations Act of 2010, H.R. 329, which sought to make the 
necessary investments to provide children with a 21st century 
education, will provide the resources to modernize our schools and 
colleges, and will provide funding to make college more affordable.
  Just as I supported past legislation like H.R. 3081, the American 
Recovery and Reinvestment Act of 2009, which placed a premium on 
providing funding for and lending institutional support to our 
Historical Black Colleges and Universities (HBCUs) and Predominantly 
Black Institutions (PBIs), the Student Aid and Fiscal Responsibility 
Act invests $2.55 billion in HBCUs and Minority-Serving Institutions to 
provide students with the support they need to stay in school and 
graduate.
  HBCUs and PBIs as defined in the Higher Education Act of 1965, as 
amended (HEA) as the following: A historically Black college or 
university is an institution of higher education established prior to 
1964, whose principal mission was, and is, the education of Black 
Americans, and that is accredited by a nationally recognized 
accrediting agency or association determined by the Secretary to be a 
reliable authority as to the quality of training offered or is, 
according to such an agency or association, making reasonable progress 
toward accreditation. Historically Black colleges or universities also 
include any branch campus of a southern institution of higher education 
that prior to September 30, 1986, received a grant as an institution 
with special needs under HEA Section 321 and was formally recognized by 
the National Center for Education Statistics as a Historically Black 
College or University.
  Predominantly Black Institutions are defined in HEA Section 318. 
These institutions meet basic eligibility under Title III, Section 
312(b) and serve at least 40 percent Black American students. Basic 
eligibility under Title III, Section 312(b) of the HEA is met by 
institutions that:
  have low educational and general expenditures (E&G) or seek a waiver 
by submitting evidence that is both persuasive and compelling to have 
this requirement waived;
  have a requisite enrollment of needy students;
  are legally authorized within their respective state to award 
bachelors degrees or are a community college; and
  are accredited by a nationally or state recognized accrediting 
agency.
  An institution is considered to have met the enrollment of needy 
students criterion if (1) at least 50 percent of its degree-seeking 
students receive financial assistance under one or more of the 
following programs: Federal Pell Grant Program, Federal Supplemental 
Educational Opportunity Grant Program, Federal Work-Study Program and/
or the Federal Perkins Loan Program or (2) the percentage of its 
undergraduate degree-seeking students who were enrolled at least half-
time and received a Federal Pell Grant met or exceeded the average for 
similar institutions.
  We must invest in our nation's Historically Black Colleges and 
Universities (HBCUs) and other Minority Serving Institutions. A digital 
disparity between HBCU campuses and their counterparts currently 
exists. There is a significant need among HBCUs to update technological 
equipment and to develop advanced and cutting edge educational and 
technological opportunities for students. In the face of the adversity 
that outdated technology poses, HBCUs continue to generate thousands of 
African-American graduates who are prepared to compete in and 
contribute to our global economy. HBCUs represent nine of the top ten 
colleges that graduate the most African-Americans who go on to earn 
Ph.D.s. HBCUs and PBIs continue to provide opportunity and advancement 
to African-American students, and therefore are worthy of federal 
support.
  Accordingly, my past legislative efforts have supported efforts to 
provide $653 million to strengthen the capacity of HBCUs and PBIs, 
Hispanic-serving Institutions, Tribal Colleges and Universities and 
Native American-serving Institutions, Asian Pacific Islander, and 
Native American Institutions. In the state of Texas, we have Tribal, 
Hispanic and African American populations that will benefit greatly 
from provisions that provide mandatory funding for the next 10 years. 
As the nation meets the demands associated with global competitiveness 
and changing demographics, resources provided in this measure very much 
are need to ensure our nation's long-term viability. The $85 million 
designated annually for HBCUs is particularly noteworthy, and will 
contribute greatly to helping these historic institutions in equipping 
students with the skills and exposure needed to drive globally relevant 
innovations and nationally relevant achievement.
  Additionally, the measure provides unprecedented increases in student 
aid--particularly for the Pell Grant and Perkins Loan programs. Most 
notably, by ensuring that all new federal student loans will be 
processed through the Direct Student Loan program, the bill is expected 
to generate $87 billion in savings over the next ten years. These 
savings will be reinvested in other worthy projects benefiting 
community colleges and expanding the number of students who enroll and 
graduate from college.
  As a Representative from the 18th Congressional District of Texas, I 
know firsthand that this will enable HBCUs like Texas Southern 
University in my district and Prairie View A&M University just outside 
of my district to thrive.
  My past support of bills such as H.R. 3293 have advocated on behalf 
of an investment of $15.9 billion for Title I Education for the 
Disadvantaged Children Account, which will provide much needed support 
to underprivileged children in Grades K through 12, and will give hope 
to the low income families in my district in Houston, that their 
children will receive quality education. There is no greater investment 
in our country than an investment in our children's opportunity to 
obtain a quality education. I urge my colleagues today to pass this 
critical piece of legislation, as our nation's long-term prosperity 
hangs in the balance. Madam Chair, I support this legislation. I urge 
my colleagues to do the same.
  Mr. SABLAN. Madam Chair, I rise today in support of H.R. 3221, the 
Student Aid and Fiscal Responsibility Act. I wish to thank Chairman 
Miller for his leadership on this bill, and express my thanks to the 
staff as well.
   Madam Chair, the financial resources of local governments and 
college and university scholarship funds are quickly dwindling. I am 
encouraged that this Congress is working to ensure access to student 
grants and loans at a time when many families, including those in my 
district in the Northern Mariana Islands, are struggling to make ends 
meet. The changes made by H.R. 3221 will mean that even more students 
will get the opportunity to pursue higher education.
  This legislation will raise the annual maximum Pell grant to 
unprecedented levels and ensure that these grants will continue to 
increase with the cost of tuition. It will open up an additional $4 
million for Pell grants in the Northern Marianas alone. It will make 
investments in financial aid that will benefit students from every 
district, no matter where they go to college. Increased funding to 
minority-serving institutions, including those with large populations 
of Pacific Islanders, will ensure that our students from the Northern 
Marianas are cared for and supported, both socially and academically, 
when they are so far away from their home.
   Three quarters of a million dollars will be available in the 
Northern Marianas for programs that encourage students to stay in 
school and make sure they succeed. And money will also be dedicated to 
community colleges, like Northern Marianas College, to help them 
finance new projects and cover existing needs.
   Higher education is truly the investment of a lifetime--it creates 
opportunities and opens

[[Page 21853]]

doors that will benefit our students and families far into the future. 
I applaud this legislation.
  Mr. ROSKAM. Madam Chair, I rise in strong opposition to H.R. 3221, 
the Student Aid and Financial Responsibility Act, which abolishes a 
historically successful private-public partnership in the student 
lending market in favor of a newer government-run program. In an unwise 
grab for total government control over the student lending market, this 
Majority is going to destroy a program that has provided need-based 
financial assistance to thousands of graduate students that have 
attended Midwestern University in my Congressional District.
  Created in 1966, the Federal Family Education Loan program has 
distributed more than 200 million loans to college students totaling 
nearly $800 billion. In 1993, the Direct Loan program--the government 
``option'' in the student lending program--was established to promote 
competition. Now, this Majority wants to consolidate all federally 
supported student lending under the Direct Loan Program. Let me be 
clear about the consequences of this ploy: millions of dollars in 
financial aid for thousands of students across the country will be 
lost. Doing away with the Federal Family Education Loan program will 
also do away with the School as Lender program.
   H.R. 3221 ignores the needs of graduate students. School as Lender 
is a vital need-based aid program for financially struggling graduate 
student education. Opponents of the School as Lender program have 
characterized these schools as profit-hungry proxies for commercial 
lenders. To the contrary, these schools obtain credit to make loans and 
use the proceeds from their origination to support financial aid. 
School as Lender institutions are prohibited by law from making money 
from the program--all proceeds from the sale of loans must be returned 
to graduate students in the form of need-based grants. School lenders 
have low default rates, indicating that schools are not irresponsibly 
encouraging students to assume more loan burden than they can afford. 
Without School as Lender, many students will now be forced to take out 
more loans and student debt.
   Within my Congressional District, one of the pioneers of the School 
as Lender program, Midwestern University, uses its School as Lender 
program to provide need-based grants to students who would otherwise 
not be able to pursue the University's graduate programs in osteopathic 
medicine, pharmacy, dental medicine and other health sciences. 
Decreasing access to education for low-income students would further 
inflame the shortage of the healthcare workforce as Congress considers 
a massive expansion of health insurance coverage. Over the past three 
academic years, Midwestern University has paid out over four million 
dollars in School as Lender scholarship monies to more than 1,500 
students. Midwestern lacks profit motives to continue the program--they 
simply desire to maintain an affordable option to attract graduate 
students.
   Midwestern University offers flexible and innovative student loan 
options. Through the School as Lender program, Midwestern is able to 
break down cost barriers that keep many low-income students from 
seeking graduate degrees. I urge my colleagues to stand on the side of 
students in need and reject this government grab for control of student 
lending that will rob many graduate students of the assistance needed 
to pursue advanced education.
  Ms. LEE of California. Madam Chair, I rise in support of H.R. 3221, 
the Student Aid and Fiscal Responsibility Act. As a member of the 
Appropriations Subcommittee on Labor, HHS, and Education, with the 
responsibility for funding these programs, I want to thank Chairman 
Miller for crafting this important bill and bringing it to the floor.
  Education is the key to ensuring that our future leaders, scientists, 
teachers, doctors and others are well prepared to be globally 
competitive. This legislation will help countless students realize the 
dream of going to college by: (1) Improving college access and 
completion; (2) Increasing Pell Grant awards and expanding the low-cost 
Perkins Loans; (3) Investing in Historically Black Colleges and 
Universities and Minority-Serving Institutions; (4) Strengthening our 
community colleges; (5) Establishing an Early Learning Challenge Fund; 
(6) Streamlining student aid applications; and (7) Reforming students 
loans to help students not banks.
  That means more of our youth will go to college and acquire the 
skills they need to compete in the global economy while graduating with 
less college debt. Now that's something we should all support.
  Mr. KUCINICH. Madam Chair, I rise in support of the Student Aid and 
Fiscal Responsibility Act and thank Congressman Miller for his 
leadership on this bill. I am proud to be an original cosponsor of this 
historic legislation. In a time of economic crisis and increased 
hardship across the United States, the Student Aid and Fiscal 
Responsibility Act ensures that students and families are supported in 
realizing their education goals.
  Access to quality education is a key factor in securing a successful 
and bright future. This legislation makes historical investments to 
expand access to education by investing in high-quality early childhood 
education and increasing college affordability. It invests in community 
colleges and partnerships with businesses and job training programs to 
ensure that our nation has the most qualified workforce.
  The bill ensures that the success of the students, not the private 
loan companies, is at the center of the student loan system by 
converting all federal student lending to a Direct Loan program. In 
addition, it increases access to federal loans by simplifying the Free 
Application for Federal Student Aid (FAFSA) form. I am also pleased 
that the bill provides for the removal of the question regarding first-
time, minor drug offenses on the FAFSA form. According to the American 
Civil Liberties Union, lower-income communities and communities of 
color are disproportionately denied access to critical federal loans 
due to the inclusion of this question on the FAFSA form. We have a 
responsibility to ensure that students wishing to improve themselves 
and contribute positively to our society are given the chance to do so.
  As a strong proponent of early childhood education and the sponsor of 
H.R. 555, the Universal Prekindergarten Act, I strongly support the 
establishment of the Early Learning Challenge Fund in this bill. The 
Early Learning Challenge Fund invests $8 billion dollars over the next 
eights years for increasing access to high-quality early childhood 
education for children of diverse economic and social backgrounds.
  I am particularly pleased that two of my amendments are included in 
this bill. I worked with Congressman Hare on our amendment to expand 
reporting requirements to include reporting on barriers to high-quality 
early childhood education programs. Investment in developing and 
expanding access to high-quality early learning programs is critical in 
addressing the achievement gap for low-income children.
  The other amendment in this bill was taken up as part of the 21st 
Century Green High-Performing Public School Facilities Act, which 
provides schools access to funds for modernization, renovation and 
repair projects that are safer and more energy efficient. My amendment 
ensures that those school funds can be used to remove sources of lead 
in drinking water such as pipes, solder and pipe fittings. Childhood 
exposure to lead has been associated with (see health effects from the 
press release)
  I believe that access to quality education is a universal right. This 
legislation takes important steps to ensure that students of all social 
and economic backgrounds are afforded the opportunity to attend high-
quality educational institutions. I strongly urge passage of this bill.
  Mr. BLUMENAUER. Madam Chair, I am proud today to support House 
Resolution 3221, the Student Aid and Fiscal Responsibility Act. This is 
long-overdue legislation that will provide funding directly to 
students, rather than to bankers. In addition, this bill expands a 
successful, much needed program to help more students go to college, 
supports job training at a time when millions of Americans are 
searching for ways to survive in a tough and changing economy, 
simplifies the financial aid process to make it easier for families to 
apply, and supports early childhood education so that more children 
graduate from high school and proceed to higher education. At the same 
time, this bill streamlines government programs to put an additional 
$87 billion back into the federal budget over ten years.
  I've heard from individuals in my home state about how this bill 
would impact their lives. It will mean that 20,594 students will be 
eligible for Pell Grants next year and the 107,677 Oregon students who 
applied for subsidized loans last year will be guaranteed low interest 
rates. An additional $1.6 million per year will go towards Oregon's 
College Access Challenge Grant program, which will have a huge impact 
on the 25,000 students who use it to help prepare for and make 
undergraduate and graduate work affordable. I am also pleased that the 
bill reinvests in our community colleges. I am impressed by the work 
that the two community colleges in my district, Portland Community 
College and Mt. Hood Community College, have done to help individuals 
struggling to prepare themselves for a changing economy. I am pleased 
that President Obama has recognized the importance of

[[Page 21854]]

higher education and the need to make it accessible and affordable in 
today's changing economy.
  I urge my colleagues to join me in supporting the Student Aid and 
Fiscal Responsibility Act.
  Mr. SPRATT. Madam Chair, I rise in support of the Student Aid and 
Fiscal Responsibility Act. In one fell swoop, this legislation helps 
millions of students afford to go to college, and it reduces the 
deficit by making the student loan program more efficient. Rarely are 
we given the chance to help students, improve government services, and 
reduce the deficit all at the same time; today we should embrace that 
opportunity.
  By making the student loan program more efficient, the bill reinvests 
some of those savings into increasing the maximum Pell Grant award next 
year and in the future, benefitting the six million low-income students 
who rely on Pell Grants to help pay for college. The legislation 
provides for the maximum Pell grant to increase from $5,550 in 2010 to 
$6,900 in 2019. The bill also revamps the Perkins loan program, 
expanding it to every college in the country--currently, fewer than 
500,000 students receive Perkins Loans. The bill also simplifies the 
process for applying for federal student financial aid, and offers new 
services to help students both attend and complete college.
  In addition to making college more accessible, this bill also invests 
in education for pre-school and school-aged children. It expands and 
improves early learning systems through competitive grants for states 
to offer high-quality services for children age zero to five, and will 
support more and better training for early childhood educators. The 
bill also provides funding to help modernize and repair schools--
elementary and secondary schools as well as community colleges across 
the country. The funding is targeted for projects that are energy 
efficient and that create healthier and safer learning environments for 
our children.
  To help strengthen our economy, the Congressional budget resolution 
that we passed earlier this year called for significant investments in 
education--including in Pell Grants--within a framework of fiscal 
responsibility. Today we have before us a bill that fulfills the 
challenge. It makes the student loan program run more efficiently, and 
thus reduces the deficit, while making dramatic improvements in our 
education system that will help students of all ages. I urge my 
colleagues to join me in supporting this bill.
  Mr. BURGESS. Madam Chair, regrettably, today we voted on yet another 
expansion of our federal government at a severe cost to the American 
taxpayer. $100 billion dollars of stimulus money has already been given 
to the U.S. Department of Education in the ``American Recovery and 
Reinvestment Act''--the so-called stimulus bill. With money borrowed 
from our children's future, the full appropriations of the stimulus 
bill have yet to be spent--and we have yet to be given an accounting of 
who exactly is getting and spending the American taxpayer's money. I 
can not support the duplicative spending in H.R. 3221, the Student Aid 
and Fiscal Responsibility Act of 2009, until there is full 
accountability from the U.S. Department of Education of how they are 
spending this stimulus money.
  Furthermore, while I cast a no vote on H.R. 3221, I will note there 
are several good things in this bill. For instance, one of the proposed 
nine new federal programs at the U.S. Department of Education is one 
focused on our veterans. Members of our Armed Services should be given 
loan forgiveness when they valiantly serve to protect our freedoms, and 
they should be allowed to transfer general education credits from one 
school to another while they are serving. I wish this portion of this 
bill was given to Members for individual consideration; however, it 
wasn't.
  Instead, this bill primarily sought to get rid of the Federal Family 
Education Loan Program (FFELP) and replace it with the U.S. Department 
of Education's Direct Loan Program. FFELP has been around for 40 years 
and served our constituents in allowing them access to higher 
education. To replace it in its entirety with the direct Loan program 
would be fiscal malfeasance. The U.S. Department of Education does not 
have the funds to give loans to students who are eligible for college 
loans and, in fact, has lost money in this program. From 1995 to 2003 
the Direct Loan program borrowed $137 billion to float this program and 
has posted a loss in the amount repaid and the amount borrowed.
  I am also troubled by particular attention in this bill in Title III 
directed at giving grants to Louisiana, Mississippi and Alabama for 
losses suffered during their Hurricane Katrina and Hurricane Rita, but 
no similar funding will be given to Texas for the losses they suffered 
during Hurricane Ike. Texas students deserve as much sound 
infrastructure as a result of hurricane destruction as Louisiana, 
Mississippi and Alabama.
  Furthermore, we should not have to use an education bill to address 
the voter fraud and tax evasion activity by the organization known as 
ACORN. I voted yes on the Motion to Recommit this bill to address the 
ACORN issues, but considering ACORN could have access to $1 billion--as 
compared to the $50 billion the American taxpayer could lose as a 
result of H.R. 3221--I will continue to vote no on H.R. 3221.
  This bill is just another example of the federal government getting 
rid of choice and mandating only a public option. Just as I have fought 
the battle with regards to our healthcare, I am equally concerned that 
our education program remains vibrant and competitive.
  Ms. MATSUI. Madam Chair, I rise today in support of the legislation 
before us today, H.R. 3221.
  A college degree is now deeply intertwined with the promise of the 
American dream, and it is our responsibility to provide equal 
opportunities to America's students. As the skill requirements of jobs 
continue to increase, so too should access to postsecondary education 
for all of our nation's students.
  The Student Aid and Fiscal Responsibility Act directs the government 
to originate all student loans and it also ensures that there is a role 
for private industry, guarantee agencies, and non-profits in providing 
their services. This truly is a public-private partnership.
  Moving all loans to the Direct Lending program will save the federal 
government and taxpayers almost $100 billion over the next 10 years as 
it eliminates tax-payer funded subsidies private lenders have been 
receiving to make student loans. Students in Sacramento will see a 
dramatic increase in their Pell grant awards over the next 10 years 
with total amounts going from $44 million to over $110 million in our 
community alone.
  The savings found through this proposal will help strengthen the Pell 
grant program, keep interest rates on student loans low, improve 
community colleges, and expand early childhood education.
  Given the recent economic downturn, more and more students are 
seeking aid, and additional Pell funds will allow them to achieve their 
goals.
  Elisa Pina is a fourth year student at California State University, 
Sacramento, which is located in my district. She is receiving the Cal 
Grant and the Pell Grant, and is also a participant in the Federal 
Work-Study Program. With the recent state budget cuts to the Cal Grant, 
the Pell Grant is crucial to her ability to stay in school.
  Elisa comes from a low-income family. Without the financial aid 
afforded to her through these programs, she would have never been able 
to afford college.
  Elisa's story, thanks to the federal loan program this Congress has 
supported, is one of millions in communities all across the country. 
The bill before us today will make her dream of going to college a 
reality for millions more.
  Madam Chair, for all of these reasons, I urge my colleagues to 
support the underlying bill.
  Mr. BROUN of Georgia. Madam Chair, I rise today in opposition to H.R. 
3221, the Student Aid and Fiscal Responsibility Act of 2009. I oppose 
this bill because, as the nonpartisan CBO has reported, it will cost 
taxpayers more than $15 billion over 10 years. And it could also 
eliminate as many as 30,000 private-sector jobs.
  In fact, H.R. 3221 will eliminate choice, competition, and 
innovation, while growing government and increasing the deficit. This 
bill will eliminate choice and competition by ending the Federal Family 
Education Loan Program and giving the Federal Government a monopoly 
over student aid financing.
  This bill will also reduce innovation and grow the government by 
expanding mandatory and entitlement spending by billions of dollars.
  When will the massive spending and Federal takeover end?
  Congress should not be growing government and increasing the debt 
burden on taxpayers. It has no business putting taxpayers on the hook 
for defaulted student loans when the private sector would gladly bear 
this risk.
  As Herbert Hoover once said, ``blessed are the young, for they shall 
inherit the national debt.'' That is a sad truth. We should be working 
to lessen that burden, not take away their choices and reduce their 
chances to succeed.
  Parents, college presidents, and financial aid professionals are 
against this takeover. They are the experts on this issue because they 
are the ones that have to foot the bill. I urge my colleagues to hear 
them and vote no on this legislation.
  Mr. TIAHRT. Madam Chair, I rise in opposition to H.R. 3221, the 
Student Aid and Fiscal

[[Page 21855]]

Responsibility Act because it will increase our deficit, but not help 
Americans with the expense of college. This bill is just one more area 
where the President and his party's leadership in the House are seeking 
to take over private industry. This is yet another one-size-fits-all 
government program intended to cripple the private sector and force 
additional financial risk on the American taxpayer.
  In the last few months, we have watched the national debt level grow 
at an unprecedented rate. We spent billions of dollars bailing out the 
automobile industry. We have thrown good money after bad to prop up 
portions of the financial sector that we are told are ``too big to 
fail.'' We've bailed out Fannie Mae and Freddie Mac, only to watch the 
housing industry continue to flounder. We have spent more than $780 
billion on a stimulus package that has left us with higher unemployment 
than we had before the bill. And in the next few weeks, we will need to 
raise the debt ceiling again.
  Claims that this bill will save the nation billions of dollars look 
like a budget gimmick to pay for new government programs. Government 
has grown enough in recent years. We need to be looking for ways to 
save money and reduce our deficit, not spend ``projected savings'' on 
new, duplicative programs.
  Furthermore, the money that supporters claim will be made available 
by these budget gimmicks is only expected to cover the first five years 
of these new programs. After that, Congress will be forced to find 
alternative sources of funding for them, or eliminate them. This is as 
productive as a credit card offering no payments for six months. This 
is a very poor way to manage the finances of the nation.
  A second big problem I see with H.R. 3221 is the federalization of 
the student loan industry. If we run out of money for this program in 
the future, what happens to the students? With no private lenders, the 
students are left without any other source of funding for their 
education.
  Fifteen years ago, when the federal government first got involved in 
the business of providing student loans, Congress was told that this 
was not an attempt for the federal government to take over the student 
loan industry, but simply a way to improve the system, and provide 
``competition'' to the private sector. Yet, fifteen years later, here 
we are, debating a bill that would force private lenders out of the 
industry.
  Does this argument sound familiar? It should. These are the same 
explanations being offered today by the President and by Democrat 
leaders in the House and Senate on health care. We are told that the 
bill will not lead to a government takeover of health care. Proponents 
say that a ``government option'' will simply compete, not replace, 
private health insurance plans. But I wonder, if the health care bill 
were to pass, how long would it be before this body is having a similar 
vote to eliminate private health insurance plans.
  I urge my colleagues to join me in voting against this bill. This is 
a big government takeover of a private industry that will saddle 
taxpayers with the risk of billions in additional debt, while shrinking 
access to resources for future generations of students. In short, Madam 
Chair, if it ain't broke, don't fix it.
  Mr. VAN HOLLEN. Madam Chair, I rise today in strong support of the 
Student Aid and Fiscal Responsibility Act. Today's bill provides access 
to education and builds a strong 21st Century workforce.
  It provides access to college by ensuring that students have a 
reliable source of affordable federal loans. It simplifies the FAFSA to 
make it easier to apply for assistance. And it guarantees the Pell 
grant as a key to college affordability by indexing the maximum award 
to the Consumer Price Index plus one percent.
  SAFRA will also help students stay in college with a new federal 
emphasis on college completion. As increasing numbers of Americans turn 
to community college for job training, this bill invests $3 billion to 
fund programs to retain and graduate students.
  SAFRA provides access to quality early childhood education by making 
new investments in innovative birth through five programs. The bill 
ensures that every child enters kindergarten ready to succeed by 
transforming early education standards and building our early childhood 
workforce.
  And finally, it provides access to safe places to learn with funds to 
repair crumbling schools and make energy-efficiency improvements to 
save money over the long term.
  Importantly, SAFRA makes these vital investments without adding a 
single penny to the federal deficit. In fact, it would return $10 
billion in savings to the Treasury.
  I urge my colleagues to support this bill and ensure that every child 
has access to a high quality education, from birth to graduation day.
  Mr. DINGELL. Madam Chair, I rise today in strong support of H.R. 
3221, the Student Aid and Fiscal Responsibility Act. For far too long 
private lenders have saddled our students with thousands of dollars of 
debt, all so they could make a profit. Today Congress puts an end to 
this ensuring that all students who desire a higher education can do so 
in an affordable manner.
  When I was growing up I was told that in order to have a good job you 
must graduate from grade school, and then it was high school and now it 
is college. Unfortunately the reality is that all too often, many of 
our brightest and best are not pursuing college because they cannot 
afford to do so. I hear time and time again from my young constituents 
who are working two or three part-time jobs all so they can take a 
class or two a semester. We cannot allow our brightest minds to burn 
out before they can complete their degree. Higher education should be 
an opportunity and not a burden.
  H.R. 3221 will change this by ensuring that the students are the 
focus of our higher education system once again. This legislation will 
change the way the student loan system functions by ensuring all new 
loans are operated through the Direct Loan program, saving the 
taxpayers $87 billion and guaranteeing our students have access to low-
cost, reliable federal loans.
  The savings from this change will be directed towards increasing 
government grant loan assistance for tuition payments. Pell grants, 
which serve nearly seven million students, will be increased to $5,550 
in 2010 and to $6,900 by 2019. To ensure that these grants continue to 
keep up with the rising costs of tuition, beginning in 2011 the grants 
will be linked to the Consumer Price Index.
  In my district more than 13,000 students rely on the Pell grant to 
help pay for their schooling. This increase of funding would be 
critical for each one of these students and would increase the total 
amount of Pell grant awards in the 15th District from $34 million to 
over $85 million.
  This legislation will also simplify the FAFSA, making it easier for 
families to apply for financial aid. By permitting families to use 
information from their tax returns, the FAFSA process will be more 
streamlined and effective for our students. This is critical for 
families in the 15th District who submitted nearly 38,000 applications 
last year and are anticipated to submit 56,000 in the 2012 school year.
  H.R. 3221 also lowers the interest rates on government-subsidized 
loans helping to lower college debt after graduation, which will be 
critical to the nearly 334,000 students in Michigan who rely on these 
loans.
  Increased funding will also be directed to our community colleges, 
many of whom in Michigan are overwhelmed with trying to serve the 
thousands of dislocated workers who are looking to start their second 
career. I have always believed that our community colleges and 
universities deserve equal treatment; however, this recession has made 
demonstrated the many different types of students our community 
colleges serve. This legislation will help these colleges to work more 
closely with our business community, the state and job training 
programs and adult education programs to ensure our adult learners have 
access to the support they need to complete their degree or 
certificate. And for the over 177,000 students currently enrolled in 
Michigan community colleges, we must ensure that they have safe, 
quality facilities in which to learn. Under H.R. 3221 Michigan will 
receive nearly $88 million to help finance projects to repair or 
construct new community college facilities.
  Overall this legislation makes unprecedented and much-needed reforms 
to our student aid system, however, we must also ensure that our 
colleges and universities have the resources and the support they need 
to implement this bill. I know for the colleges and universities in my 
district, they are already struggling with reduced financial assistance 
from the state, therefore, we must ensure that the consideration of any 
financial match is weighed against the current situation in our 
economy, and what our schools are already committed to doing to assist 
needy students.
  Madam Chair, I am pleased to rise in support of this legislation and 
I urge strongly that my colleagues do the same. We have all watched the 
tuition at public and private colleges double, then triple as time has 
passed, creating a burdensome gap for our students to overcome. The 
students of this country are our greatest hope--they are our future 
doctors, our future lawyers, our future teachers and our future public 
servants. To not ensure that they have an affordable, quality education 
would be to shortchange their success and the success of our country.
  Ms. WATERS. Madam Chair, I rise to support H.R. 3221, the Student Aid 
and Fiscal Responsibility Act of 2009. I'd also like to

[[Page 21856]]

commend my colleague from California, Chairman George Miller for his 
hard work to bring this bill to the floor today.
  Now more than ever, Americans need affordable and quality educational 
opportunities that will help make our economy stronger and more 
competitive. This bill embraces President Obama's challenge to produce 
more college graduates by the year 2020 by making higher education more 
accessible. This legislation achieves that goal by transforming the way 
student loan programs operate.
  The Student Aid and Fiscal Responsibility Act is the single largest 
investment in aid to help students and families pay for college in 
history--and it does so at no cost to taxpayers. The bill reforms the 
system of federal student loans to save taxpayers $87 billion--and then 
invests $77 billion of those savings back into education, particularly 
by making college more affordable, and directs $10 billion back to the 
Treasury to reduce entitlement spending. Among its many provisions, I 
am especially pleased that the maximum Pell Grant is increased from 
$5,350 in 2009 to $5,550 in 2010 and to $6,900 in 2019 and that 
interest rates are kept low on subsidized federal student loans. This 
will help more students graduate with less debt. Unfortunately, too 
many students are graduating with record debt, partly because grant aid 
doesn't cover nearly as large a share of college costs as it used to. 
This legislation will allow us to invest $40 billion in the Pell Grant 
scholarship, to keep interest rates affordable on need-based federal 
student loans, to simplify the federal student aid application process, 
and to invest in other forms of aid that will help low-income, middle 
class and minority students pay for and complete college.
  H.R. 3221 will also stabilize and safeguard the federal student loan 
program that students and families depend on to pay for college. The 
intertwined economic and credit crises have exposed serious 
vulnerabilities in the structure of the federally-guaranteed student 
loan program--putting it on life support. Families shouldn't have to 
worry about whether the roller coaster fluctuations of the financial 
markets will hurt their access to low-cost student loans. By 
originating all new federal loans through the cheaper Direct Loan 
program, students and parents will be able to receive the same loans 
with the added assurance that these loans are entirely reliable, no 
matter what happens in the economy. This simple change will save 
taxpayers $87 billion over 10 years.
  H.R. 3221 also builds on the best of what works in the private sector 
to provide borrowers with top-notch customer service. The legislation 
will allow state non-profit lenders and private industry to continue 
doing what they do best--servicing loans. It will allow private 
entities to compete for contracts to service these loans--ensuring that 
students get the best services available and maintaining jobs in 
communities across the country. This bill also eliminates waste and 
creates a streamlined, cost-effective program for families and 
taxpayers. Each year, billions of taxpayers' dollars are being sent 
into a program that no longer works--and that the Department of 
Education can administer for a much lower cost. This is exactly the 
kind of waste we need to eliminate in tough fiscal times. By cutting 
out the middleman, this legislation will save taxpayers $87 billion 
over 10 years, according to the Congressional Budget Office. It's a 
smarter business decision for taxpayers and families.
  One of the most exciting provisions of this bill is that is makes an 
unprecedented $10 billion investment to make community colleges part of 
our economy's recovery. For years, business leaders have told us there 
weren't enough workers with the knowledge and the expertise for their 
specific industries. H.R. 3221 will change that. It will help us build 
a 21st century workforce by strengthening partnerships among community 
colleges, businesses and job training programs that will align 
community college curricula with the needs of high-wage, high-demand 
industries. It will provide community colleges with the tools to 
replicate programs that are successfully educating and training 
students and workers for these fields.
  As a former Head Start volunteer coordinator, I know first-hand that 
creating better educational opportunities demands that we invest in our 
students long before they reach college. To ensure that the next 
generation of students enters kindergarten with the skills they need to 
succeed in school, the legislation creates an Early Leaning Challenge 
Fund to increase high-quality early learning opportunities for low-
income children. It also will help provide every child with access to a 
world-class learning environment by investing in school modernization, 
renovation, and repair projects that will create healthier, safer, and 
more energy-efficient environments--a measure the House is already on 
record supporting.
  However there is one provision that was added to HR 3221 in the 
Education and Labor Committee that I am very concerned about. I'm sure 
it was included with the best of intentions, but for the record, I 
would like to share with my colleagues what I believe will be the real 
impact of this provision. Under current law, for-profit postsecondary 
schools are required to maintain a certain formula for how they receive 
federal funding, commonly known as 90-10. This means that a school 
must, at a minimum, acquire 10 percent of its funding from sources 
other than federal money. The original 90-10 provisions were added 
because too many for-profit schools were receiving large amounts of 
federal funding from students who indebted themselves without receiving 
the training they signed up for. I worked with a number of my 
colleagues here to help put those 90-10 provisions in place. This 
formula was enacted after years of students being ripped off and 
schools raking in record profits. If the schools violate 90-10, they 
are assessed a financial penalty.
  The provision added in Committee would weaken the current standards 
and basically kick the can down the road by extending the violation 
period from two to three years. This is completely unnecessary. What is 
the point of having the formula if we'll allow for-profit schools to 
continue to violate it?
  I am looking forward to work with Chairman Miller and other Members 
to make sure that the final bill does not include another victory for 
an industry that does not have students' best interests in mind. Moving 
forward, it is my recommendation that we revisit the rules that govern 
these for-profit schools and allow them to continue accessing federal 
funds but that also ensure that they fully report graduation and 
dropout rates, default rates, and job placement rates.
  In closing, this is not a perfect bill, but it is a tremendous 
investment in education for American families and I urge my colleagues 
to vote for passage on H.R. 3221, the Student Aid and Fiscal 
Responsibility Act of 2009.
  Ms. HERSETH SANDLIN. Madam Chair, the House is considering H.R. 3221, 
the Student Aid and Fiscal Responsibility Act. I support many of the 
goals of this legislation, including finding savings in the current 
student loan program and directing these funds toward expanding student 
grant aid that will help make higher education a reality for more South 
Dakotans. However, I have heard from constituents who work in the 
Federal Family Education Loan Program, FFELP, in my State, and in 
particular from The Student Loan Corporation in Sioux Falls, that the 
enactment of this bill could result in the loss of hundreds if not 
thousands of jobs in South Dakota during this period of continuing 
higher unemployment, as the country works its way out of economic 
recession. I also have concerns about completely eliminating a role for 
the private sector in providing student loans and about the potential 
disruptions in access to loans for students that could occur during the 
proposed transition to the new system over the next months.
  I have helped to lead the effort in the House of Representatives with 
my colleague and fellow Blue Dog. Allen Boyd of Florida, and we've been 
joined by a number of our colleagues in the House of Representatives in 
sharing our concerns on this subject with U.S. Department of Education 
Secretary Arne Duncan and with the House Education and Labor Committee. 
I urged the Secretary and the Committee to more fully consider all 
possible alternatives that would substantially increase funding for 
Pell Grants and other important sources of financial access to higher 
education, while maintaining jobs in our districts and ensuring 
continued access to loans for students. Over the course of the FFELP's 
decades of existence, it has proven that private competition in the 
student loan system provides benefits to students. I believe that the 
FFELP has been a cost effective alternative to ``direct lending'' for 
many students in South Dakota. In addition, I am concerned that the 
Department of Education may not have the resources adequate to handle 
the origination, administration and servicing of all student loans 
beginning in July 2010.
  The assumption of complete responsibility for providing federally-
backed loans to students by the Department of Education Direct Loan, 
DL, program presents very real risks of job losses and ends the 
reliable administration and servicing of student loans at the more than 
4,000 schools that are not currently enrolled in the DL program, 
including most colleges and universities in South Dakota. While a 
number of these schools have begun exploring a transition to DL with 
the Department of Education, the risks of a possible disruption in 
students' ability to access student loans is very real during the rapid 
transition of these 4,000 schools to DL by July 10, 2010. Further,

[[Page 21857]]

we do not want to put undue resource burdens on schools and States that 
are already facing increased budgetary pressures during this economic 
downturn.
  While the bill does present potential opportunities for some lenders 
in South Dakota, overall, the possible downsides of the bill for South 
Dakota are substantial, and what's more, I believe they could be 
addressed in this legislation while preserving the goal of increasing 
financial assistance for higher education. Thus, while I fully support 
the goal of finding savings within the current student loan program to 
provide students with much-needed increases in federal financial aid 
for higher education, I cannot support today's bill, which I believe 
should be improved before being passed by the House.
  As the legislative process moves forward in the Senate, I will 
continue to work towards a bill that achieves significant increase in 
financial assistance for students seeking higher education, that 
preserves jobs for South Dakotans, and ensures our students receive the 
specialized attention and information needed to make the best choices 
for funding their higher education.
  Mr. GENE GREEN of Texas. Madam Chair, I rise today to show my support 
for H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009.
  This legislation will make a college education more accessible to 
young Americans. Through initiatives such as a $40 billion investment 
in Pell Grants, the number of people eligible for a Pell Grant award 
greatly increases as does the monetary allotment associated with the 
award. Under this legislation over $85.4 million will be invested in 
our district to increase the maximum annual Pell Grant scholarship to 
$5,550 in 2010 and to $6,900 by 2019. In the 2010-2011 academic year 
18,184 students in our district will be eligible for a Pell Grant 
award.
  This bill will also help make a college education more accessible and 
affordable to Americans by streamlining the FAFSA student aid 
application. The simplification of the FAFSA form will help provide 
needed support to the growing number of families applying for student 
aid by allowing them to use the information on their tax returns to 
verify their eligibility.
  The Student Aid and Fiscal Responsibility Act also sets in motion a 
five-year initiative aimed at improving college access and completion 
support programs through the College Access and Completion Fund, 
resulting in at least $14.1 million a year for the next five years in 
Texas. The increased funding is to be used towards providing students, 
particularly those from disadvantaged backgrounds, with the support 
they need to stay in school and graduate despite obstacles, 
particularly those of a financial nature.
  For students who need further financial assistance, this legislation 
increases the availability of Perkins Loans, and increases the 
reliability and affordability of federal student loans through the 
Direct Loan program.
  In addition to making education more affordable, The Student Aid and 
Fiscal Responsibility Act of 2009 aims to improve the quality of higher 
education in the United States. One of the main components of the bill 
I am excited about is the major investment in our local community 
colleges. In 2007, over 497,500 students were enrolled in Texas 
community colleges, and this bill will help to increase the 
effectiveness and impact of community colleges in our area by 
continuing to develop first-rate affordable education right here in our 
district, which, in turn, will help build our workforce and community.
  H.R. 3221 not only focuses on higher learning, but also childhood 
education by establishing an Early Learning Challenge Fund. Over the 
next two years, Texas will receive more than $359.4 million to develop 
schools that equip every child with access to a world-class learning 
environment.
  I strongly believe in the power of education, and am proud to support 
this legislation that increases individuals access to higher education, 
improves the quality of that education, and helps to develop a skilled 
workforce, while reducing the deficit.
  Mr. BOYD. Madam Chair, I rise to express my concern with H.R. 3221, 
the Student Aid and Fiscal Responsibility Act of 2009. This legislation 
was crafted in the Committee on Education and Labor after President 
Obama's Fiscal Year 2010 Budget proposed reforming the federal student 
loan system. Although I support the President's goal of ensuring our 
affordable and accessible educational opportunities for our nation's 
children, I have some serious reservations with this bill.
  H.R. 3221 calls for the transition of all federal student lending to 
the Direct Loan Program by July 1st 2010. Not only will this move end 
the reliable administration and servicing of student loans at more than 
4,000 schools across the country, this transition will risk job losses 
at a time when unemployment is threatening to hit 10 percent 
nationwide. This industry represents over 30,000 jobs throughout our 
country, and 700 Sallie Mae employees in my district alone.
  These employees have a history with the program, the college 
administrators and the students that they serve, given the over 40 
years of the program's existence. During that time the private industry 
has continued to evolve to better help students with their financial 
responsibilities through quality customer service and product 
innovation. It is evident that as the Direct Loan and Federal Family 
Education Loan (FFEL) programs have competed over the years the quality 
of the student experience has been changed for the better. I am not 
comfortable taking this dynamic out of the equation via the provisions 
in H.R. 3221. Furthermore, I am concerned that the quick transition 
required by this bill could prove burdensome to many of the schools 
that are currently using the FFEL program despite the efforts of the 
Department of Education to prepare for it.
  I believe that the country and students would be better served if the 
private industry framework of the current system was enhanced instead 
of proceeding with H.R. 3221 as written and I would therefore urge my 
colleagues to vote no.
  Mr. KIND. Madam Chair, I rise today in support of H.R. 3221, The 
Student Aid and Fiscal Responsibility Act.
  With the struggling economy, rising cost of tuition, and decrease in 
the availability of student aid, working families are finding it 
increasingly difficult to send their children to college. In order to 
ensure that America is able to compete in the global economy and remain 
a leader in the innovative industries of the future, this historic 
legislation invests in our economic future by making college more 
affordable and accessible. By reforming our student loan system, 
simplifying the student loan application process, investing in 
community colleges to create a highly skilled workforce, and 
strengthening early childhood education programs we will guarantee that 
the next generation is equipped with the necessary skills to compete 
worldwide.
  In a fiscally responsible way, the Student Aid and Fiscal 
Responsibility Act will make college more affordable and accessible by 
transforming our student aid system. The reforms will make student 
loans more reliable and accessible for a greater number of students. 
Pell Grant Scholarships will receive an additional $40 billion over the 
next 10 years, $500 million of that will go to students in Wisconsin. 
In 2019, it is estimated that 20,000 western Wisconsin students will be 
awarded $75 million in Pell Grants. The bill also simplifies the Free 
Application for Federal Student Aid (FAFSA) form by allowing families 
to fill out the application with information from just a tax return to 
prove eligibility.
  This legislation also invests heavily in community colleges to 
cultivate a highly skilled workforce to compete in the global economy. 
It will encourage and support relationships between community colleges, 
businesses, states and adult education programs. These partnerships are 
already occurring in western Wisconsin and with additional grants and 
investment, our community colleges will be able to strengthen and build 
upon these partnerships, creating additional jobs and economic 
development.
  Not only will the Student Aid and Fiscal Responsibility Act do a 
better job getting kids to college, it will also provide assistance to 
ensure that they make it to graduation. Investing in college access and 
completion support programs will ensure that students receive guidance 
to ensure they make it to graduation. Further, secondary schools in 
western Wisconsin will receive $57 million for school renovation to 
improve the classroom experience and enhance learning for students.
  Ensuring that children are put on a path toward academic success 
begins at an early age. I have always believed that we must place an 
emphasis on early childhood education in order to prepare students to 
excel once they begin in school. I have long supported and advocated 
for legislation that would strengthen early childhood education by 
providing states with grant opportunities, increased funding, and 
better training for educators. In previous years, I have introduced 
legislation that would have accomplished many of the same goals of this 
bill by creating an Early Learning Challenge Fund to award competitive 
grants to states that implement early education reforms. This provision 
is crucial as we work to provide learning and development opportunities 
to children at an early age, ensuring that kids are ready for success 
once they enter the school system.
  As the country continues to work through some of the most difficult 
economic conditions

[[Page 21858]]

in a generation, it is imperative that we increase our investment in 
education. Innovation and a highly skilled workforce are keys to 
unlocking the future potential of America. If we are truly going to 
compete against emerging nations like China and India, we must continue 
to invest in our education system.
  I am proud to represent western Wisconsin, which is home to six 
universities and dozens of community and technical colleges. With such 
an emphasis on higher education, we have long been working to become a 
leader in producing workers for the 21st Century's global economy. This 
historic legislation will build on the infrastructure already available 
in western Wisconsin and make higher education more affordable and 
accessible for everyone.
  Mr. INSLEE. Madam Chair, I rise to express my support for H.R. 3221, 
and to express my gratitude to Chairman Miller for including in this 
bill a very important section to close gaps in college degree 
attainment and completion.
  Section 783 of the bill, which provides for innovation in college 
access and completion national activities, authorizes the Secretary of 
Education to award grants to innovative programs that improve student 
outcomes for college bound students.
  In 2007, only 27.8 percent of college freshmen, or roughly one-
fourth, went on to complete their degrees. In the highly competitive 
21st century, America can little afford to fall behind in the 
technology curve; today, China graduates eight times as many 
engineering students as us, and India five times more.
  We have an abundance of bright students in this country, and by 
increasing the number of individuals with postsecondary degrees, any 
expenditure we make towards that end will be returned many times over 
as these graduates enter the work force and start contributing to what 
is already the world's largest and most advanced economy.
  In June, I introduced H.R. 3259, to establish grants for college 
success and completion. My bill, coauthored with Representative 
Reichert, would encourage and help students from low-income and 
disadvantaged families attend college. This group of Americans 
represents the last great untapped source of American brainpower, as 
only 6 percent of them are expected to earn a bachelor's degree by age 
24--seven and a half times smaller than the expected graduation rates 
of students from wealthy backgrounds.
  I urge passage of H.R. 3221, and encourage my colleagues to continue 
investing in America's future by cosponsoring H.R. 3259.
  Mr. STARK. Madam Chair, I rise today in support of creating education 
opportunity for millions of students. The Student Aid and Fiscal 
Responsibility Act (H.R. 3221) is the single largest investment in 
college affordability in our nation's history. In addition, the 
legislation will provide much-needed resources for states to develop 
and improve early childhood education programs.
  The ideal behind this bill is simple: stop providing taxpayer 
subsidies to banks to act as the middlemen in student lending, save 
billions, and reinvest most of those savings into our beleaguered 
education system.
  By moving all student loans into the Department of Education's Direct 
Lending Program, this legislation saves $87 billion that would 
otherwise be siphoned off by private lenders. These savings allow for 
historic investments in the Pell Grant and Perkins Loan programs for 
low- and moderate-income students. Over 16,000 students in my 
Congressional District rely on Pell Grants each year. These students 
will see the maximum grant rise to $5,500 in 2010 and automatically 
increase each year thereafter to keep up with inflation. By 2019, the 
maximum grant is expected to be $6,900. Similarly, the Perkins Loan 
program will receive a $6 billion boost, providing assistance for 
thousands of new students.
  The bill also invests in another vital resource: Our community 
colleges. H.R. 3221 invests $10 billion in community colleges to 
modernize facilities, implement reforms, and work with local employers 
to create curricula to ensure that students are graduating able to 
fulfill local workforce needs.
  Finally, the legislation before us will help to make sure that every 
child enters school ready to learn and achieve by creating the ``Early 
Learning Challenge Fund.'' This fund will provide resources to states 
to expand and improve their ``Birth to Five'' early childhood education 
programs by improving licensing standards, developing high quality 
curricula aimed at cognitive, emotional, and social development, and 
building a highly qualified workforce.
  The Student Aid and Fiscal Responsibility Act is an example of reform 
that this Congress can achieve when we are willing to put aside the 
narrow concerns of special interests and support common sense policies 
that will provide greater educational opportunity. I urge all of my 
colleagues to support the bill.
  Mr. FORBES. Madam Chair, I oppose H.R. 3221, the Student Aid and 
Fiscal Responsibility Act of 2009, because I cannot support legislation 
that amounts to a government takeover of student loans, and at the 
expense of private industry. The same legislation does continue several 
efforts I have championed throughout my time as a Member of Congress, 
and it is regretful that these initiatives were not taken up separately 
to make it easier for students to get the financial aid they need to 
get a college degree.
  I support increasing the amount of aid available to college students 
through Pell Grants awards and voted to do so twice in the 110th 
Congress (H.R. 4137 and H.R. 2669). This program is vital to ensuring 
the accessibility of higher education for all Americans and I'm pleased 
this bill continues this increase in Pell Grants.
  In addition, I supported efforts to cut interest rates on federal 
student loans in half (H.R. 5) and to expand eligibility for parents to 
qualify for education loans for their children (H.R. 5715). I have also 
been a strong supporter of funding for Historically Black Colleges and 
Universities (HBCUs) and Minority Serving Institutions, which received 
valuable support in this bill as well.
  I was a proud supporter and original sponsor of legislation that 
would help bridge economic opportunity and the digital divide between 
minority institutions and their counterparts (H.R. 4137 in the 110th). 
I will continue to fight for these critical initiatives and others to 
improve access and quality in American education.
  Pell Grants awards, HBCUs, community college funding, and pre-K 
programs are too important to include them in the same bill alongside 
reckless provisions that restrict the student loan market and place the 
fate of student access to financial aid under the care and supervision 
of the federal government.
  Mr. POMEROY. Madam Chair, I rise today in support of H.R. 3221, 
important legislation that will provide critical resources for 
community colleges and expand access to higher education for our 
nation's students. While I have some remaining concerns with this bill 
that need to be addressed before enactment, I am voting to move this 
measure forward in the process because it strengthens our student aid 
programs while decreasing our federal deficit by $10 billion.
  H.R. 3221 provides an historic investment in Pell Grants and ensures 
that interest rates remain low on need-based federal student loans. I 
am a strong supporter of making college more accessible for everyone, 
and am pleased that the bill invests $90 million in North Dakota for 
the Pell Grant program. This increased level of funding means that 
17,143 student will be eligible for a Pell Grant award in the 2010-2011 
academic year, an increase of 37 percent over the 12,467 North Dakota 
students eligible in the 2007-2008 school year. And by 2019, the number 
of students receiving Pell Grants will nearly double from 2007-2008 
levels to 21,410. Under this legislation, the maximum Pell Grant 
scholarship will ultimately reach $6,900 by 2019, representing over a 
45 percent increase in the maximum Pell Grant Award over the next 10 
years from today's maximum Pell Grant level of $4,731. This is good 
news for students.
  However, there are a few issues of remaining concern with H.R. 3221. 
First, I strongly believe that student loans should be affordable. I 
have heard concerns from several North Dakota institutions that under 
the new Direct Perkins loans program, students are required to pay 
interest accrued on Direct Perkins loans while they are in school. The 
final proposal of this bill must weigh these concerns with the number 
of new students who will enter the Perkins loan program as a result of 
increasing the loan authority of this program.
  Second, it is important to ensure that rural and rural-serving 
community colleges receive their fair share of funding from the new 
Higher Education Federal Assistance for Community College Modernization 
and Construction program. Rural and rural-serving colleges face unique 
challenges in providing critical educational opportunities for our 
nation's rural students, and should receive an appropriate portion of 
the funding provided under this program. I also believe that the 
Veterans Resource Officer Grant program should be modified to better 
ensure that rural and small schools have access to this program.
  Third, as the only state-owned bank in the country, the Bank of North 
Dakota should continue to be allowed to provide student loans. The Bank 
of North Dakota currently serves about 75 percent of North Dakota 
students and has been a wonderful partner for students and their 
families. The Bank of North Dakota's service should not be disrupted. 
This is why I led an amendment that was made in order

[[Page 21859]]

that ensures that non-profit entities like the Bank of North Dakota can 
continue to provide valuable student borrower services, including 
delinquency prevention, default aversion, and loan counseling. In 
addition, I appreciate Chairman Miller's commitment on the floor to 
work with me in conference to ensure that this important institution 
will continue to have a role in federal student lending programs.
  Having received the Chairman's assurances to work together on these 
issues in conference, I am going to vote to move this bill forward. I 
hope by furthering this bill, we can build on its historic investments 
in the Pell Grant program and strengthen its provisions for North 
Dakota schools and students.
  Mr. LANGEVIN. Madam Chair, I rise in support of H.R. 3221, the 
Student Aid and Fiscal Responsibility Act. This legislation makes 
urgently-needed investments in our education system by helping students 
and their families pay for college, modernizing schools and curricula, 
and training our future workforce for the 21st Century.
  H.R. 3221 will provide reliable, affordable, high-quality federal 
student loans for all families. Beginning July 1, 2010, all new federal 
student loans will be originated through the Direct Loan Program, which 
is insulated from market swings and can guarantee students access to 
low-cost federal loans in any economy.
  I am also pleased that $40 billion of the money saved from switching 
all loans to the Direct Loan Program will go to boosting Pell Grants. 
Over the next ten years, this measure will invest more than $154.6 
million in Rhode Island to increase the maximum annual Pell Grant 
scholarships to $5,550 in 2010 and to $6,900 by 2019. In the 2010-2011 
academic school year, this will help nearly 12,000 eligible students in 
my congressional district.
  Far too many students face unnecessary barriers when it comes to 
pursuing a college degree. This measure will make it easier to apply 
for financial aid by simplifying the FAFSA form, which many families 
find confusing and overly burdensome, and allowing applicants to use 
the information on their tax returns. Meanwhile, under this bill, Rhode 
Island will receive $3.8 million over the next five years for the 
College Access Challenge Grant program, which will bolster college 
access and completion support programs, increase financial literacy 
education, and help retain and graduate students.
  H.R. 3221 also strengthens our state's seven community colleges that 
teach more than 15,000 students each year. Community colleges excel at 
meeting the needs of students from all backgrounds and work with 
businesses to ensure students have the skills they need to fulfill 
local workforce needs. This measure will establish a competitive grant 
program for community colleges to raise graduation rates, modernize 
facilities, and create new online learning opportunities.
  This legislation not only invests in our college students, but also 
focuses on the next generation of students by ensuring that all 
children have the preparation and skills they need on their very first 
day of school. By creating the Early Learning Challenge Fund, 
competitive grants will be awarded to states that implement 
comprehensive reform of birth-to-five early learning programs. H.R. 
3221 also provides more than $13.7 million over the next two years to 
Rhode Island school districts for school modernization, renovation and 
repair projects that will create healthier, safer and more energy-
efficient teaching and learning climates.
  Madam Chair, this measure will have long-term benefits for our 
economy. Going forward, we must continue to build upon these advances 
so the next generation is encouraged to pursue their dreams.
  Mr. ETHERIDGE. Madam Chair, I rise in support of H.R. 3221, the 
Student Aid and Fiscal Responsibility Act. As the first member of my 
family to graduate from college, I know that the opportunity to go to 
college was the key to any success that I have had in life. I 
understand firsthand that pursuing education after high school can be a 
challenging financial decision. Working families struggle to enable 
their children to go to college, and individuals who wish to pursue a 
second degree must weigh the costs carefully. This bill takes 
significant steps to make college more affordable and to ease the 
burden of debt for those who take out loans to pay for higher 
education.
  H.R. 3221 continues our work to increase Pell Grants to keep up with 
increasing educational costs, raising the maximum grant to $6,900 over 
the next ten years. It invests $3 billion in efforts that improve 
access to college and support students throughout their education, like 
the successful initiatives of the College Foundation of North Carolina 
and the North Carolina Educational Assistance Authority in my state. 
The legislation also strengthens Perkins Loans by making more students 
eligible and keeping interest rates low.
  H.R. 3221 makes critical investments in our historically black 
colleges and universities and minority-serving institutions, and 
strengthens community colleges and training programs to ensure every 
student has the opportunity to succeed in school and gain the skills 
they need for success in our 21st century technological economy. It 
also invests in quality early education opportunities that plant the 
seeds of success for the next generation of college graduates. Finally, 
it makes all of these investments in a fiscally-responsible manner, 
even devoting $10 billion in savings to pay down the deficit.
  I am pleased that Chairman Miller worked with me to ensure that non-
profits and state agencies, like the North Carolina College Foundation 
and the North Carolina Educational Assistance Authority, continue to 
have a role in providing services to college-bound students. Millions 
of North Carolina families turn to these institutions for help with 
college counseling, loan support, and default prevention. It would be a 
tragedy to lose the local knowledge and expertise they provide. Student 
loan reform must preserve a role for these valuable loan guarantors and 
affiliated non-profits, and I am pleased that an amendment I offered 
which explicitly authorizes support for their services was included in 
the final bill.
  As the former superintendent of North Carolina's schools, I know 
firsthand the needs of our school districts for modernization and 
renovation funding. I am pleased H.R. 3221 contains $2 billion in each 
of the next two years to help schools maintain high-quality facilities 
that help students learn. I appreciate Chairman Miller's commitment to 
work with me to ensure that we use some of this funding in support of 
our federal responsibility for federally-connected children. In my 
district, the schools in Harnett County and Cumberland County, as well 
as those in the rest of the state, are proud to be able to educate the 
sons and daughters of those who serve and protect our nation. However, 
the growth at Fort Bragg and Pope Air Force Base under the Base 
Realignment and Closure (BRAC) process, threatens to overwhelm the 
school districts' already strained budgets as they work to make room 
for these students. We have a responsibility to help these schools, and 
I look forward to working with the chairman to support our military 
families.
  Madam Chair, H.R. 3221 represents a significant investment in the 
future of our nation, and a historic commitment to our students and 
working families. I urge my colleagues in joining me in support of this 
legislation.
  Mr. LARSON of Connecticut. Madam Chair, I rise today in support of 
H.R. 3221--the Student Aid and Fiscal Responsibility Act of 2009. This 
bill makes the single-largest investment in student aid in our nation's 
history and will increase opportunities for our workforce to expand 
their skills through community colleges. I would like to thank Chairman 
Miller for working with me to include in the bill legislation that I 
offered to expand the mission of community college computer labs as a 
hub for training our nation's workers. Specifically the addition of 
Section 503 (f)(8) allows funds for community college reform to be used 
for the purpose of ``providing information technology training for 
students and members of the public seeking to improve their computer 
literacy and information technology skills through public accessibility 
to community college computer labs and information technology training 
providing on weeknights and weekends by an employee of a community 
college who is capable of basic computer instruction.''
  I.am a strong supporter of our nation's community colleges and 
believe they represent an invaluable and untapped information hub 
within our communities. By participating in the program set forth by 
the bill and simply keeping their computer labs open to the public for 
20 hours a week on weeknights and 10 hours a week on weekends, our 
community colleges would provide individuals the ability to gain the 
skills they need to move into a new job or advance in their current 
job. Further, to ensure that the time spent in the computer labs will 
help build those information technology skills, the community colleges 
should be required to have an instructor from the college present to 
provide basic computer instruction during those hours. Access to this 
instruction should also be free of charge and accessible to students 
and members of the public.
  In order to provide this access to the computer labs my intent when 
drafting this language was to allow community colleges to access funds 
for the maintenance, administration and improvement of computer labs, 
which includes: staffing facilities; purchasing computer equipment, 
which includes hardware and software; maintaining, repairing, and 
replacing

[[Page 21860]]

technology equipment; maintaining and securing facilities; and 
providing utilities for the facilities and computer equipment.
  Once again, I thank Chairman Miller for his hard work on this 
legislation and urge its passage.
  Mr. GRAYSON. Madam Chair, the U.S. House of Representatives has 
passed a bill including prohibitions on federal funds and other 
activities with respect to certain organizations. The intent of 
Congress with respect to those provisions is as follows:

       The purpose of this bill is to cleanse federal contracting 
     and grant-making, completely and permanently. The purpose is 
     to put an end to the invidious practice of rewarding those 
     who steal taxpayer money by giving them more taxpayer money. 
     The bill imposes, and is intended to impose, a corporate 
     death penalty on contractors who fall within the scope of its 
     prohibitions. This is remedial legislation. The primary 
     intention is not merely to penalize such organization, since 
     other laws perform that function. Rather, the intention is to 
     protect the Government and the taxpayers from losses in the 
     future, and to deter misconduct on the part of federal fund 
     recipients. The intention of deterrence, in particular, 
     requires that these prohibitions be construed broadly, and 
     enforced strictly.
       By this bill, Congress intends to exercise the full extent 
     of its Constitutional authority, both express and implied. 
     This includes, but is not limited to, Congress's express 
     authority under the Appropriations Clause of the 
     Constitution.
       Notwithstanding the heading on the part of the bill 
     containing these provisions, it is not Congress's intent that 
     these prohibitions apply only to organizations that have been 
     indicted. Rather, Congress intends that the prohibitions 
     apply to all ``covered organizations,'' as defined in the 
     bill.
       With respect to the prohibitions set forth in paragraph 
     (a), Congress intends that these prohibitions be automatic 
     and permanent. In this context, ``automatic'' means not 
     subject to alleviation by administrative action. Regarding 
     such prohibitions, Congress intends to substitute a ``per 
     se'' rule in place of any rule requiring a balancing of 
     factors, or exercise of discretion or judgment, to the full 
     extent permitted for Congress by the U.S. Constitution. 
     ``Permanent'' means lasting for the entire time that the 
     organization remains in existence. If a principal, or 
     principals, of a covered organization form(s) or attempt(s) 
     to form a new organization, then that new organization may be 
     deemed, through administrative action, to be a covered 
     organization. ``Principal'' means an officer, a director, or 
     an owner of at least five percent of the shares of a covered 
     organization.
       It is the intent of Congress that any organization seeking 
     or receiving a federal contract, grant, cooperative 
     agreement, any other form of agreement, federal funds, or 
     promotion by a Federal employee or contractor shall certify, 
     both when seeking and when receiving such a benefit, that the 
     organization is not a covered organization as that term is 
     defined in this bill. Any organization falsely making such a 
     certification shall be deemed a covered organization (and, in 
     fact, already is one), and shall be subject to prosecution 
     under 18 U.S.C. 1001 or any similar provision in the Criminal 
     Code. Any individual making such a false certification on 
     behalf of a covered organization shall be similarly liable. 
     Congress strongly recommends to federal prosecutors that they 
     execute their prosecutorial discretion in a manner that holds 
     such organizations and individuals accountable, to the 
     fullest extent permitted by law.
       Congress intends that all covered organizations be added to 
     the ``Excluded Parties'' list maintained by the Federal 
     Government, with a prescribed duration on that list of 
     ``permanent.'' Whenever the U.S. Department of Justice (DOJ) 
     learns or has reason to believe that an organization is a 
     covered organization, it shall be the duty of DOJ to apprise 
     the debarring officials of all relevant federal agencies of 
     such information. Congress intends that any person or 
     organization shall have standing to request that any 
     debarring official shall identify an organization as a 
     covered organization, and add that organization to the 
     ``Excluded Parties'' list. Congress also intends that the 
     contention that any federal offeror or contractor is a 
     covered organization is a contention that is a valid basis 
     for a bid protest. Such a contention may be asserted at the 
     Government Accountability Office, the U.S. Court of Federal 
     Claims, and any other tribunal with bid protest authority.
       The term ``covered organization'' includes parent 
     companies, subsidiaries and subsidiaries of parent companies 
     of a covered organization. Such affiliation is to be 
     determined by legal ownership of at least 50%.
       The term ``organization'' in paragraph (a) means only a 
     covered organization. The enumerated prohibitions apply to 
     covered organizations only.
       In subparagraph (a)(1), the term ``other form of 
     agreement'' includes, but is not limited to, the execution of 
     contract options, the award of task orders, and any other 
     form of action that establishes or increases the legal rights 
     of any federal contractor or grantee.
       In subparagraph (a)(2), the term ``[n]o Federal funds in 
     any other form may be provided'' shall mean that all 
     contracts and grants that have been awarded to a covered 
     organization with a remaining duration of more than one year 
     on the date of enactment shall, within that one-year period, 
     be terminated for the convenience of the Government.
       In subparagraph (b)(1) of the prohibitions, Congress 
     recognizes that the denial of liberty or property on the 
     basis of an indictment, without conviction, raises 
     Constitutional due process issues. If it is determined that 
     such denial is unconstitutional, or otherwise contrary to 
     law, then it is the intent of Congress that subparagraph 
     (b)(1) be held void, but that the remainder of the 
     prohibitions remain intact and enforceable.
       In subparagraph (b)(3) of the prohibitions, it is the 
     intent of Congress that this subparagraph be construed 
     expansively. The term ``Federal or State regulatory agency'' 
     shall include any agency authorized by law to issue 
     regulations, whether or not such regulations have been 
     issued. For instance, the term includes, but is not limited 
     to, the U.S. Departments of Defense, Health and Human 
     Services, and Labor. The term ``filed a fraudulent form'' 
     includes, but is not limited to, actions that would establish 
     liability under 18 U.S.C. 1001 or 31 U.S.C. 3729. A 
     conviction or judgment under these laws, or any similar law, 
     is sufficient per se to establish that an organization is a 
     covered organization.
       The term ``filed a fraudulent form'' is derived in part 
     from a report dated July 23, 2009 and issued by the Ranking 
     Member of the Committee on Oversight and Government Reform. 
     Page five of that report discusses allegations, not resulting 
     in a conviction or judgment, that ``ACORN has submitted false 
     filings to the Internal Revenue Service and the Department of 
     Labor.'' The report states that: ``All of these fraudulent 
     acts would constitute a violation of 18 U.S.C. 1001 by 
     presenting false documents to the United States government.'' 
     A fortiori, any acts that actually do (not merely ``would'') 
     constitute such a violation, or a violation of similar 
     provisions such as those appearing in 31 U.S.C. 3729, as 
     determined by a conviction or judgment, shall per se 
     constitute the ``fil[ing] of a fraudulent form'' within the 
     meaning of these prohibitions. As the Ranking Member's report 
     describes, however, the term ``filed a fraudulent form'' 
     extends to all organizations that have filed such a form, 
     whether or not such a filing has resulted in a conviction or 
     judgment. The Ranking Member issued a statement yesterday, 
     which said: ``For far too long, recipients of federal dollars 
     have been given free reign [sic] and some have acted in a 
     reckless and cavalier way and whether it be ACORN or anyone 
     else--abuse and fraud will not be tolerated.'' He added, 
     ``frankly, I don't know how anyone can successfully argue 
     [that] those who actually perpetrate fraud and misuse 
     taxpayer dollars should not be'' subject to these 
     prohibitions.
       The term ``form'' is to be construed broadly. It includes 
     all communications, in any form or format, which include any 
     information required by law. For instance, a request for 
     payment under a cost reimbursement contract that includes a 
     statement of incurred costs is a ``form'' within the meaning 
     of subparagraph (b)(3), because (among other reasons) such a 
     statement is required by law. Whenever the Government finds 
     that such a request is excessive, and reduces it, then this 
     means that the form that was filed was fraudulent, unless the 
     contractor possessed no information whatsoever that did allow 
     or should have allowed the contractor to know that the form 
     was excessive. No proof of specific intent to defraud is 
     required. It is the intent of Congress that the term ``form'' 
     include, but not be limited to, the term ``claim'' under 18 
     U.S.C. 287, the terms ``claim,'' ``record'' and ``statement'' 
     in 31 U.S.C. 3729, and the terms ``statement,'' 
     ``representation'' and ``entry'' under 10 U.S.C. 1001.
       In all administrative or judicial proceedings regarding 
     whether a party has ``filed a fraudulent form,'' in cases 
     based on a conviction or judgment, the inquiry shall be 
     limited to whether there is any evidence in the record on 
     which the finder of fact could have determined that the 
     organization filed a fraudulent form. Under no circumstances 
     shall the burden of proof be anything beyond ``adequate 
     evidence'' in administrative proceedings, or ``support by any 
     evidence in the record'' in judicial proceedings, when such 
     judicial review of such administrative action is allowable at 
     all.
       It is the intent of Congress that administrative action to 
     add an organization to the ``Excluded Parties'' list is 
     ministerial. For that reason, and otherwise, such 
     administrative action is committed to agency discretion under 
     5 U.S.C. 702(a)(1). In all judicial proceedings, it is the 
     intent of Congress that the prohibitions apply to an 
     organization that has been found to be a covered organization 
     unless and until a final judgment has been entered in favor 
     of the organization. Specifically, it is the intent of 
     Congress that in determining whether the organization should 
     be granted interim relief in such proceedings, the greatest 
     weight be the public interest in having the Government issue 
     contracts and grants only to organizations with unquestioned 
     integrity.

[[Page 21861]]

       It is the intention of Congress that the term ``covered 
     organization'' apply to all organizations qualifying within 
     the definitions of subparagraphs (b)(1) through (b)(4), 
     without regard to when the acts establishing such 
     qualification occurred. Specifically, it is not the intent of 
     Congress that such acts be limited to acts following 
     enactment of these prohibitions. If, for instance, an 
     organization filed a fraudulent form with any Federal or 
     State regulatory agency in 2006, that organization is a 
     covered organization as of the date of enactment, and subject 
     to all prohibitions from the date of enactment onward.
       Regarding paragraph c, if it shall be ruled or held that 
     this provision, or any other provision in these prohibitions, 
     is a bill of attainder, or constitutionally infirm for any 
     other reason, it is the intent of Congress that these 
     prohibitions nevertheless apply to all covered organizations 
     for which these prohibitions are not a bill of attainder, or 
     constitutionally infirm.
       Regarding paragraph (d) of the prohibitions, the revision 
     of the Federal Acquisition Regulation (FAR) shall include the 
     revisions set forth above, including but not limited to 
     revision of Parts 3, 9, 15 and 33 of the FAR.

  Mr. GEORGE MILLER of California. Madam Chair, I yield back the 
balance of my time.
  The CHAIR. All time for general debate has expired.
  Pursuant to the rule, the amendment in the nature of a substitute 
printed in the bill shall be considered as an original bill for the 
purpose of amendment under the 5-minute rule and shall be considered 
read.
  The text of the committee amendment is as follows:

                               H.R. 3221

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Student Aid and Fiscal 
     Responsibility Act of 2009''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.

              TITLE I--INVESTING IN STUDENTS AND FAMILIES

          Subtitle A--Increasing College Access and Completion

Sec. 101. Federal Pell Grants.
Sec. 102. College Access and Completion Innovation Fund.
Sec. 103. Investment in historically Black colleges and universities 
              and other minority-serving institutions.
Sec. 104. Investment in cooperative education.
Sec. 105. Loan forgiveness for servicemembers activated for duty.
Sec. 106. Veterans Educational Equity Supplemental Grant Program.

         Subtitle B--Student Financial Aid Form Simplification

Sec. 121. General effective date.
Sec. 122. Treatment of assets in need analysis.
Sec. 123. Changes to total income; aid eligibility.

                     TITLE II--STUDENT LOAN REFORM

                    Subtitle A--Stafford Loan Reform

Sec. 201. Federal Family Education Loan appropriations.
Sec. 202. Scope and duration of Federal loan insurance program.
Sec. 203. Applicable interest rates.
Sec. 204. Federal payments to reduce student interest costs.
Sec. 205. Federal PLUS Loans.
Sec. 206. Federal Consolidation Loan.
Sec. 207. Unsubsidized Stafford loans for middle-income borrowers.
Sec. 208. Loan repayment for civil legal assistance attorneys.
Sec. 209. Special allowances.
Sec. 210. Revised special allowance calculation.
Sec. 211. Origination of Direct Loans at institutions located outside 
              the United States.
Sec. 212. Agreements with institutions.
Sec. 213. Terms and conditions of loans.
Sec. 214. Contracts.
Sec. 215. Interest rates.

                    Subtitle B--Perkins Loan Reform

Sec. 221. Federal Direct Perkins Loans terms and conditions.
Sec. 222. Authorization of appropriations.
Sec. 223. Allocation of funds.
Sec. 224. Federal Direct Perkins Loan allocation.
Sec. 225. Agreements with institutions of higher education.
Sec. 226. Student loan information by eligible institutions.
Sec. 227. Terms of loans.
Sec. 228. Distribution of assets from student loan funds.
Sec. 229. Implementation of non-title IV revenue requirement.
Sec. 230. Administrative expenses.

            TITLE III--MODERNIZATION, RENOVATION, AND REPAIR

             Subtitle A--Elementary and Secondary Education

Sec. 301. Definitions.

 Chapter 1--Grants for Modernization, Renovation, or Repair of Public 
                           School Facilities

Sec. 311. Purpose.
Sec. 312. Allocation of funds.
Sec. 313. Allowable uses of funds.
Sec. 314. Priority projects.

 Chapter 2--Supplemental Grants for Louisiana, Mississippi, and Alabama

Sec. 321. Purpose.
Sec. 322. Allocation to local educational agencies.
Sec. 323. Allowable uses of funds.

                     Chapter 3--General Provisions

Sec. 331. Impermissible uses of funds.
Sec. 332. Supplement, not supplant.
Sec. 333. Prohibition regarding State aid.
Sec. 334. Maintenance of effort.
Sec. 335. Special rule on contracting.
Sec. 336. Use of American iron, steel, and manufactured goods.
Sec. 337. Labor standards.
Sec. 338. Charter schools.
Sec. 339. Green schools.
Sec. 340. Reporting.
Sec. 341. Special rules.
Sec. 342. Promotion of employment experiences.
Sec. 343. Advisory Council on Green, High-Performing Public School 
              Facilities.
Sec. 344. Education regarding projects.
Sec. 345. Availability of funds.

                      Subtitle B--Higher Education

Sec. 351. Federal assistance for community college modernization and 
              construction.

                TITLE IV--EARLY LEARNING CHALLENGE FUND

Sec. 401. Purpose.
Sec. 402. Programs authorized.
Sec. 403. Quality pathways grants.
Sec. 404. Development grants.
Sec. 405. Research and evaluation.
Sec. 406. Reporting requirements.
Sec. 407. Construction.
Sec. 408. Definitions.
Sec. 409. Availability of funds.

                TITLE V--AMERICAN GRADUATION INITIATIVE

Sec. 501. Authorization and appropriation.
Sec. 502. Definitions; grant priority.
Sec. 503. Grants to eligible entities for community college reform.
Sec. 504. Grants to eligible States for community college programs.
Sec. 505. National activities.

     SEC. 3. REFERENCES.

       Except as otherwise expressly provided, whenever in this 
     Act an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Higher Education Act of 1965 (20 
     U.S.C. 1001 et seq.).

              TITLE I--INVESTING IN STUDENTS AND FAMILIES

          Subtitle A--Increasing College Access and Completion

     SEC. 101. FEDERAL PELL GRANTS.

       (a) Amount of Grants.--Section 401(b) (20 U.S.C. 1070a(b)) 
     is amended--
       (1) by amending paragraph (2)(A) to read as follows:
       ``(A) The amount of the Federal Pell Grant for a student 
     eligible under this part shall be--
       ``(i) the maximum Federal Pell Grant, as specified in the 
     last enacted appropriation Act applicable to that award year, 
     plus
       ``(ii) the amount of the increase calculated under 
     paragraph (8)(B) for that year, less
       ``(iii) an amount equal to the amount determined to be the 
     expected family contribution with respect to that student for 
     that year.''; and
       (2) by amending paragraph (8), as amended by the Higher 
     Education Opportunity Act (Public Law 110-315), to read as 
     follows:
       ``(8) Additional funds.--
       ``(A) In general.--There are authorized to be appropriated, 
     and there are appropriated, to carry out subparagraph (B) of 
     this paragraph (in addition to any other amounts appropriated 
     to carry out this section and out of any money in the 
     Treasury not otherwise appropriated) the following amounts--
       ``(i) $2,030,000,000 for fiscal year 2008;
       ``(ii) $2,733,000,000 for fiscal year 2009; and
       ``(iii) such sums as may be necessary for fiscal year 2010 
     and each subsequent fiscal year to provide the amount of 
     increase of the maximum Federal Pell Grant required by 
     clauses (ii) and (iii) of subparagraph (B).
       ``(B) Increase in federal pell grants.--The amounts made 
     available pursuant to subparagraph (A) shall be used to 
     increase the amount of the maximum Federal Pell Grant for 
     which a student shall be eligible during an award year, as 
     specified in the last enacted appropriation Act applicable to 
     that award year, by--
       ``(i) $490 for each of the award years 2008-2009 and 2009-
     2010;
       ``(ii) $690 for the award year 2010-2011; and
       ``(iii) the amount determined under subparagraph (C) for 
     each succeeding award year.
       ``(C) Inflation-adjusted amounts.--
       ``(i) Award year 2011-2012.--For award year 2011-2012, the 
     amount determined under this subparagraph for purposes of 
     subparagraph (B)(iii) shall be equal to--

       ``(I) $5,550 or the total maximum Federal Pell Grant for 
     the preceding award year (as determined under clause 
     (iv)(II)), whichever is greater, increased by a percentage 
     equal to the annual adjustment percentage for award year 
     2011-2012; reduced by

[[Page 21862]]

       ``(II) $4,860 or the maximum Federal Pell Grant for which a 
     student was eligible for the preceding award year, as 
     specified in the last enacted appropriation Act applicable to 
     that year, whichever is greater; and
       ``(III) rounded to the nearest $5.

       ``(ii) Subsequent award years.--For award year 2012-2013 
     and each of the subsequent award years, the amount determined 
     under this subparagraph for purposes of subparagraph (B)(iii) 
     shall be equal to--

       ``(I) the total maximum Federal Pell Grant for the 
     preceding award year (as determined under clause (iv)(II)), 
     increased by a percentage equal to the annual adjustment 
     percentage for the award year for which the amount under this 
     subparagraph is being determined; reduced by

       ``(II) $4,860 or the maximum Federal Pell Grant for which a 
     student was eligible for the preceding award year, as 
     specified in the last enacted appropriation Act applicable to 
     that year, whichever is greater; and
       ``(III) rounded to the nearest $5.

       ``(iii) Limitation on decreases.--Notwithstanding clauses 
     (i) and (ii), if the amount determined under clause (i) or 
     (ii) for an award year is less than the amount determined 
     under this paragraph for the preceding award year, the amount 
     determined under such clause for such award year shall be the 
     amount determined under this paragraph for the preceding 
     award year.
       ``(iv) Definitions.--For purposes of this subparagraph--

       ``(I) the term `annual adjustment percentage' as it applies 
     to an award year is equal to the sum of--

       ``(aa) the estimated percentage change in the Consumer 
     Price Index (as determined by the Secretary, using the 
     definition in section 478(f)) for the most recent calendar 
     year ending prior to the beginning of that award year; and
       ``(bb) one percentage point; and

       ``(II) the term `total maximum Federal Pell Grant' as it 
     applies to a preceding award year is equal to the sum of--

       ``(aa) the maximum Federal Pell Grant for which a student 
     is eligible during an award year, as specified in the last 
     enacted appropriation Act applicable to that preceding award 
     year; and
       ``(bb) the amount of the increase in the maximum Federal 
     Pell Grant required by this paragraph for that preceding 
     award year.
       ``(D) Program requirements and operations otherwise 
     unaffected.--Except as provided in subparagraphs (B) and (C), 
     nothing in this paragraph shall be construed to alter the 
     requirements and operations of the Federal Pell Grant Program 
     as authorized under this section, or to authorize the 
     imposition of additional requirements or operations for the 
     determination and allocation of Federal Pell Grants under 
     this section.
       ``(E) Availability of funds.--The amounts made available by 
     subparagraph (A) for any fiscal year shall be available 
     beginning on October 1 of that fiscal year, and shall remain 
     available through September 30 of the succeeding fiscal 
     year.''.
       (b) Conforming Amendments.--Title IV (20 U.S.C. 1070 et 
     seq.) is further amended--
       (1) in section 401(b)(6), as amended by the Higher 
     Education Opportunity Act (Public Law 110-315), by striking 
     ``the grant level specified in the appropriate Appropriation 
     Act for this subpart for such year'' and inserting ``the 
     Federal Pell Grant amount, determined under paragraph (2)(A), 
     for which a student is eligible during such award year'';
       (2) in section 402D(d)(1), by striking ``exceed the maximum 
     appropriated Pell Grant'' and inserting ``exceed the Federal 
     Pell Grant amount, determined under section 401(b)(2)(A), for 
     which a student is eligible'';
       (3) in section 435(a)(5)(A)(i)(I), by striking ``one-half 
     the maximum Federal Pell Grant award for which a student 
     would be eligible'' and inserting ``one-half the Federal Pell 
     Grant amount, determined under section 401(b)(2)(A), for 
     which a student would be eligible'';
       (4) in section 483(e)(3)(ii), by striking ``based on the 
     maximum Federal Pell Grant award at the time of application'' 
     and inserting ``based on the Federal Pell Grant amount, 
     determined under section 401(b)(2)(A), for which a student is 
     eligible at the time of application'';
       (5) in section 485E(b)(1)(A), by striking ``of such 
     students' potential eligibility for a maximum Federal Pell 
     Grant under subpart 1 of part A'' and inserting ``of such 
     students' potential eligibility for the Federal Pell Grant 
     amount, determined under section 401(b)(2)(A), for which the 
     student would be eligible''; and
       (6) in section 894(f)(2)(C)(ii)(I), by striking ``the 
     maximum Federal Pell Grant for each award year'' and 
     inserting ``the Federal Pell Grant amount, determined under 
     section 401(b)(2)(A), for which a student may be eligible for 
     each award year''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) of this section shall take effect on July 1, 2010.

     SEC. 102. COLLEGE ACCESS AND COMPLETION INNOVATION FUND.

       (a) Header.--Part E of title VII (20 U.S.C. 1141 et seq.) 
     is amended by striking the header of such part and inserting 
     the following:

       ``PART E--COLLEGE ACCESS AND COMPLETION INNOVATION FUND''.

       (b) Purpose.--Part E of title VII (20 U.S.C. 1141 et seq.) 
     is further amended by inserting before section 781 the 
     following:

     ``SEC. 780. PURPOSES.

       ``The purposes of this part are--
       ``(1) to promote innovation in postsecondary education 
     practices and policies by institutions of higher education, 
     States, and nonprofit organizations to improve student 
     success, completion, and post-completion employment, 
     particularly for students from groups that are 
     underrepresented in postsecondary education; and
       ``(2) to assist States in developing longitudinal data 
     systems, common metrics, and reporting systems to enhance the 
     quality and availability of information about student 
     success, completion, and post-completion employment.''.
       (c) Authorization and Appropriation.--Section 781(a) (20 
     U.S.C. 1141(a)) is amended to read as follows:
       ``(a) Authorization and Appropriation.--
       ``(1) In general.--There are authorized to be appropriated, 
     and there are appropriated, to carry out this part (in 
     addition to any other amounts appropriated to carry out this 
     part and out of any money in the Treasury not otherwise 
     appropriated), $600,000,000 for each of the fiscal years 2010 
     through 2014.
       ``(2) Allocations.--Of the amount appropriated for any 
     fiscal year under paragraph (1)--
       ``(A) 25 percent shall be made available to carry out 
     section 781;
       ``(B) 50 percent shall be made available to carry out 
     section 782;
       ``(C) 23 percent shall be made available to carry out 
     section 783; and
       ``(D) 2 percent shall be made available to carry out 
     section 784.''.
       (d) State Grants and Grants to Eligible Entities.--Part E 
     of title VII (20 U.S.C. 1141 et seq.) is further amended by 
     adding at the end the following:

     ``SEC. 782. STATE INNOVATION COMPLETION GRANTS.

       ``(a) Program Authorization.--From the amount appropriated 
     under section 781(a)(2)(B) to carry out this section, the 
     Secretary shall award grants to States on a competitive basis 
     to promote student persistence in, and completion of, 
     postsecondary education.
       ``(b) Federal Share; Non-Federal Share.--
       ``(1) Federal share.--The amount of the Federal share under 
     this section for a fiscal year shall be equal to \2/3\ of the 
     costs of the activities and services described in subsection 
     (d)(1) that are carried out under the grant.
       ``(2) Non-federal share.--The amount of the non-Federal 
     share under this section shall be equal to \1/3\ of the costs 
     of the activities and services described in subsection 
     (d)(1). The non-Federal share may be in cash or in kind, and 
     may be provided from State resources, contributions from 
     private organizations, or both.
       ``(3) Supplement, not supplant.--The Federal and non-
     Federal shares required by this paragraph shall be used to 
     supplement, and not supplant, State and private resources 
     that would otherwise be expended to carry out activities and 
     services to promote student persistence in and completion of 
     postsecondary education.
       ``(c) Application and Selection.--
       ``(1) Application requirements.--For each fiscal year for 
     which a State desires to receive a grant under this section, 
     the State agency with jurisdiction over higher education, or 
     another agency designated by the Governor or chief executive 
     of the State to administer the grant program under this 
     section, shall submit an application to the Secretary at such 
     time, in such manner, and containing such information as the 
     Secretary may require. Such application shall include--
       ``(A) a description of the State's capacity to administer 
     the grant under this section;
       ``(B) a description of the State's plans for using the 
     grant funds for activities described in subsection (d)(1), 
     including plans for how the State will make special efforts 
     to provide benefits to students in the State who are from 
     groups that are underrepresented in postsecondary education;
       ``(C) a description of how the State will provide for the 
     non-Federal share from State resources, private 
     contributions, or both;
       ``(D) a description of--
       ``(i) the administrative system that the State has in place 
     to administer the activities and services described in 
     subsection (d)(1); or
       ``(ii) the plan to develop such administrative system;
       ``(E) a description of the data system the State has or 
     will have in place to measure the performance and progress 
     toward the State's goals included in the Access and 
     Completion Plan submitted, or that will be submitted, under 
     paragraph (2)(A); and
       ``(F) the assurances under paragraph (2).
       ``(2) State assurances.--The assurances required in 
     paragraph (1)(F) shall include an assurance of each of the 
     following:
       ``(A) That the State will submit, not later than July 1, 
     2011, an Access and Completion Plan to increase the State's 
     rate of persistence in and completion of postsecondary 
     education. Such plan shall include--
       ``(i) the State's annual and long-term quantifiable goals 
     with respect to--

       ``(I) the rates of postsecondary enrollment, persistence, 
     and completion, disaggregated by income, race, ethnicity, 
     sex, disability, and age of students;
       ``(II) closing gaps in enrollment, persistence, and 
     completion rates for students from groups that are 
     underrepresented in postsecondary education;
       ``(III) targeting education and training programs to 
     address labor market needs in the State, as such needs are 
     determined by the State, or the State in coordination with 
     the State public employment service, the State workforce 
     investment board, or industry or sector partnerships in the 
     State; and

[[Page 21863]]

       ``(IV) improving coordination between two-year and four-
     year institutions of higher education in the State, including 
     supporting comprehensive articulation agreements between such 
     institutions; and

       ``(ii) the State's plan to develop an interoperable 
     statewide longitudinal data system that--

       ``(I) can be linked to other data systems, as applicable, 
     including elementary and secondary education and workforce 
     data systems;
       ``(II) will collect, maintain, disaggregate (by 
     institution, income, race, ethnicity, sex, disability, and 
     age of students), and analyze postsecondary education and 
     workforce information, including--

       ``(aa) postsecondary education enrollment, persistence, and 
     completion information;
       ``(bb) post-completion employment outcomes of students who 
     enrolled in postsecondary programs and training programs 
     offered by eligible training providers under the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801 et seq.);
       ``(cc) postsecondary education and employment outcomes of 
     students who move out of the State; and
       ``(dd) postsecondary instructional workforce information; 
     and

       ``(III) makes the information described in subclause (I) 
     available to the general public in a manner that is 
     transparent and user-friendly.

       ``(B) That the State has a comprehensive planning or policy 
     formulation process with respect to increasing postsecondary 
     enrollment, persistence, and completion that--
       ``(i) encourages coordination between the State 
     administration of grants under this section and similar State 
     programs;
       ``(ii) encourages State policies that are designed to 
     improve rates of enrollment and persistence in, and 
     completion of, postsecondary education for all categories of 
     institutions of higher education described in section 132(d) 
     in the State;
       ``(iii) considers the postsecondary education needs of 
     students from groups that are underrepresented in 
     postsecondary education;
       ``(iv) considers the resources of public and private 
     institutions of higher education, organizations, and agencies 
     within the State that are capable of providing access to 
     postsecondary education opportunities within the State; and
       ``(v) provides for direct, equitable, and active 
     participation in the comprehensive planning or policy 
     formulation process or processes, through membership on State 
     planning commissions, State advisory councils, or other State 
     entities established by the State and consistent with State 
     law, by representatives of--

       ``(I) institutions of higher education, including at least 
     one member from a junior or community college (as defined in 
     section 312(f));
       ``(II) students;
       ``(III) other providers of postsecondary education services 
     (including organizations providing access to such services);
       ``(IV) the general public in the State; and
       ``(V) postsecondary education faculty members, including at 
     least one faculty member whose primary responsibilities are 
     teaching and scholarship.

       ``(C) That the State will incorporate policies and 
     practices that, through the activities funded under this 
     section, are determined to be effective in improving rates of 
     postsecondary education enrollment, persistence, and 
     completion into the future postsecondary education policies 
     and practices of the State to ensure that the benefits 
     achieved through the activities funded under this section 
     continue beyond the period of the grant.
       ``(D) That the State will participate in the evaluation 
     required under section 784.
       ``(3) Subgrants to nonprofit organizations.--A State 
     receiving a payment under this section may elect to make a 
     subgrant to one or more nonprofit organizations in the State, 
     including agencies with agreements with the Secretary under 
     subsections (b) and (c) of section 428 on the date of the 
     enactment of the Student Aid and Fiscal Responsibility Act of 
     2009, or a partnership of such organizations, to carry out 
     activities and services described in subsection (d)(1), if 
     the nonprofit organization or partnership--
       ``(A) was in existence on the day before the date of the 
     enactment of the Student Aid and Fiscal Responsibility Act of 
     2009; and
       ``(B) as of such day, was participating in activities and 
     services related to promoting persistence in, and completion 
     of, postsecondary education, such as the activities and 
     services described in subsection (d)(1).
       ``(4) Priority.--In awarding grants under this section, the 
     Secretary shall give priority to States that enter into a 
     partnership with one of the following entities to carry out 
     the activities and services described in subsection (d)(1):
       ``(A) A philanthropic organization, as such term is defined 
     in section 781(i)(1).
       ``(B) An agency with an agreement with the Secretary under 
     subsections (b) and (c) of section 428 on the date of the 
     enactment of Student Aid and Fiscal Responsibility Act of 
     2009.
       ``(d) Uses of Funds.--
       ``(1) Authorized uses.--A State receiving a grant under 
     this section shall use the grant funds to--
       ``(A) provide programs in such State that increase 
     persistence in, and completion of, postsecondary education, 
     which may include--
       ``(i) assisting institutions of higher education in 
     providing financial literacy, education, and counseling to 
     enrolled students;
       ``(ii) assisting students enrolled in an institution of 
     higher education to reduce the amount of loan debt incurred 
     by such students;
       ``(iii) providing grants to students described in section 
     415A(a)(1), in accordance with the terms of that section; and
       ``(iv) carrying out the activities described in section 
     415E(a); and
       ``(B) support the development and implementation of a 
     statewide longitudinal data system, as described in 
     subsection (c)(2)(A)(ii).
       ``(2) Prohibited uses.--Funds made available under this 
     section shall not be used to promote any lender's loans.
       ``(3) Restrictions on use of funds.--A State--
       ``(A) shall use not less than \1/3\ of the sum of the 
     Federal and non-Federal share used for paragraph (1)(A) on 
     activities that benefit students enrolled in junior or 
     community colleges (as defined in section 312(f)), two-year 
     public institutions, or two-year programs of instruction at 
     four-year public institutions;
       ``(B) may use not more than 10 percent of the sum of the 
     Federal and non-Federal share under this section for 
     activities described in paragraph (1)(B); and
       ``(C) may use not more than 6 percent of the sum of the 
     Federal and non-Federal share under this section for 
     administrative purposes relating to the grant under this 
     section.
       ``(e) Annual Report.--Each State receiving a grant under 
     this section shall submit to the Secretary an annual report 
     on--
       ``(1) the activities and services described in subsection 
     (d)(1) that are carried out with such grant;
       ``(2) the effectiveness of such activities and services in 
     increasing postsecondary persistence and completion, as 
     determined by measurable progress in achieving the State's 
     goals for persistence and completion described in the Access 
     and Completion Plan submitted by the State under subsection 
     (c)(2)(A), if such plan has been submitted; and
       ``(3) any other information or assessments the Secretary 
     may require.
       ``(f) Definitions.--In this section:
       ``(1) Industry or sector partnership.--The term `industry 
     or sector partnership' means a workforce collaborative that 
     organizes key stakeholders in a targeted industry cluster 
     into a working group that focuses on the human capital needs 
     of a targeted industry cluster and that includes, at the 
     appropriate stage of development of the partnership--
       ``(A) representatives of multiple firms or employers 
     (including workers) in a targeted industry cluster, including 
     small- and medium-sized employers when practicable;
       ``(B) 1 or more representatives of State labor 
     organizations, central labor coalitions, or other labor 
     organizations;
       ``(C) 1 or more representatives of local workforce 
     investment boards;
       ``(D) 1 or more representatives of postsecondary 
     educational institutions or other training providers; and
       ``(E) 1 or more representatives of State workforce agencies 
     or other entities providing employment services.
       ``(2) State public employment service.--The term `State 
     public employment service' has the meaning given such term in 
     section 502(a)(9) of the Student Aid and Fiscal 
     Responsibility Act of 2009.
       ``(3) State workforce investment board; local workforce 
     investment board.--The terms `State workforce investment 
     board' and `local workforce investment board' have the 
     meanings given such terms in section 502(a)(10) of the 
     Student Aid and Fiscal Responsibility Act of 2009.

     ``SEC. 783. INNOVATION IN COLLEGE ACCESS AND COMPLETION 
                   NATIONAL ACTIVITIES.

       ``(a) Programs Authorized.--From the amount appropriated 
     under section 781(a)(2)(C) to carry out this section, the 
     Secretary shall award grants, on a competitive basis, to 
     eligible entities in accordance with this section to conduct 
     innovative programs that advance knowledge about, and 
     adoption of, policies and practices that increase the number 
     of individuals with postsecondary degrees or certificates.
       ``(b) Eligible Entities.--The Secretary is authorized to 
     award grants under subsection (a) to--
       ``(1) institutions of higher education;
       ``(2) States;
       ``(3) nonprofit organizations with demonstrated experience 
     in the operation of programs to increase postsecondary 
     completion;
       ``(4) philanthropic organizations (as such term is defined 
     in section 781(i)(1));
       ``(5) entities receiving a grant under chapter 1 of subpart 
     2 of part A of title IV; and
       ``(6) consortia of any of the entities described in 
     paragraphs (1) through (5).
       ``(c) Innovation Grants.--
       ``(1) Minimum award.--A grant awarded under subsection (a) 
     shall be not less than $1,000,000.
       ``(2) Grants uses.--The Secretary's authority to award 
     grants under subsection (a) includes--
       ``(A) the authority to award to an eligible entity a grant 
     in an amount equal to all or part of the amount of funds 
     received by such entity from philanthropic organizations (as 
     such term is defined in section 781(i)(1)) to conduct 
     innovative programs that advance knowledge about, and 
     adoption of, policies and practices that increase the number 
     of individuals with postsecondary degrees or certificates; 
     and
       ``(B) the authority to award an eligible entity a grant to 
     develop 2-year programs that provide supplemental grant or 
     loan benefits to students that--
       ``(i) are designed to improve student outcomes, including 
     degree completion, graduation without student loan debt, and 
     post-completion employment;

[[Page 21864]]

       ``(ii) are in addition to the student financial aid 
     available under title IV of this Act; and
       ``(iii) do not result in the reduction of the amount of 
     that aid or any other student financial aid for which a 
     student is otherwise eligible under Federal law.
       ``(3) Application.--To be eligible to receive a grant under 
     subsection (a), an eligible entity shall submit an 
     application at such time, in such manner, and containing such 
     information as the Secretary shall require.
       ``(4) Priorities.--In awarding grants under subsection (a), 
     the Secretary shall give priority to applications that--
       ``(A) are from an eligible entity with demonstrated 
     experience in serving students from groups that are 
     underrepresented in postsecondary education, including 
     institutions of higher education that are eligible for 
     assistance under title III or V, or are from a consortium 
     that includes an eligible entity with such experience;
       ``(B) are from an eligible entity that is a public 
     institution of higher education that does not predominantly 
     provide an educational program for which it awards a 
     bachelor's degree (or an equivalent degree), or from a 
     consortium that includes at least one such institution;
       ``(C) include activities to increase degree or certificate 
     completion in the fields of science, technology, engineering, 
     and mathematics, including preparation for, or entry into, 
     postbaccaluareate study, especially for women and other 
     groups of students who are underrepresented in such fields;
       ``(D) are from an eligible entity that is a philanthropic 
     organization with the primary purpose of providing 
     scholarships and support services to students from groups 
     that are underrepresented in postsecondary education, or are 
     from a consortium that includes such an organization; or
       ``(E) are from an eligible entity that encourages 
     partnerships between institutions of higher education with 
     high degree-completion rates and institutions of higher 
     education with low degree-completion rates from the same 
     category of institutions described in section 132(d) to 
     facilitate the sharing of information relating to, and the 
     implementation of, best practices for increasing 
     postsecondary completion.
       ``(5) Technical assistance.--The Secretary may reserve up 
     to $5,000,000 per year to award grants and contracts to 
     provide technical assistance to eligible entities receiving a 
     grant under subsection (a), including technical assistance on 
     the evaluation conducted in accordance with section 784 and 
     establishing networks of eligible entities receiving grants 
     under such subsection.
       ``(d) Reports.--
       ``(1) Annual reports by entities.--Each eligible entity 
     receiving a grant under subsection (a) shall submit to the 
     Secretary an annual report on--
       ``(A) the effectiveness of the program carried out with 
     such grant in increasing postsecondary completion, as 
     determined by measurable progress in achieving the goals of 
     the program, as described in the application for such grant; 
     and
       ``(B) any other information or assessments the Secretary 
     may require.
       ``(2) Annual report to congress.--The Secretary shall 
     submit to the authorizing committees an annual report on 
     grants awarded under subsection (a), including--
       ``(A) the amount awarded to each eligible entity receiving 
     a grant under such subsection; and
       ``(B) a description of the activities conducted by each 
     such eligible entity.

     ``SEC. 784. EVALUATION.

       ``From the amount appropriated under section 781(a)(2)(D), 
     the Director of the Institute of Education Sciences shall 
     evaluate the programs funded under this part. Not later than 
     January 30, 2016, the Director shall issue a final report on 
     such evaluation to the authorizing committees and the 
     Secretary, and shall make such report available to the 
     public.

     ``SEC. 785. VETERANS RESOURCE OFFICER GRANTS.

       ``(a) Program Authorized.--The Secretary shall award 
     grants, on a competitive basis, to eligible institutions of 
     higher education to hire a Veterans Resource Officer to 
     increase the college completion rates for veterans enrolled 
     at such institutions.
       ``(b) Definitions.--In this section:
       ``(1) Eligible institution of higher education.--The term 
     `eligible institution of higher education' means an 
     institution of higher education that has an enrollment of at 
     least 100 full-time equivalent students who are veterans.
       ``(2) Full-time equivalent students.--The term `full-time 
     equivalent students' has the meaning given such term in 
     section 312(e).
       ``(3) Veteran.--The term `veteran' has the meaning give 
     such term in section 480(c).
       ``(c) Application.--To be eligible to receive a grant under 
     this section, an eligible institution of higher education 
     shall submit an application at such time, in such manner, and 
     containing such information as the Secretary shall require.
       ``(d) Uses of Funds.--
       ``(1) In general.--An eligible institution of higher 
     education receiving a grant under this section shall use such 
     grant to hire 1 or 2 Veterans Resource Officers (in the case 
     of an institution that has an enrollment of at least 200 
     full-time equivalent students who are veterans) to serve in 
     the office of campus programs, or a similar office, at such 
     institution and carry out the activities described in 
     paragraph (2).
       ``(2) Activities.--A Veterans Resource Officer shall carry 
     out activities at an eligible institution of higher education 
     to help increase the completion rates for veterans enrolled 
     at such institution, which shall include the following 
     activities:
       ``(A) Serving as a link between student veterans and the 
     staff of the institution.
       ``(B) Serving as a link between student veterans and local 
     facilities of the Department of Veterans Affairs.
       ``(C) Organizing and advising student veterans 
     organization.
       ``(D) Organizing veterans oriented group functions and 
     events.
       ``(E) Maintaining newsletters and listserves to distribute 
     news and information to all student veterans.
       ``(F) Organizing new student veterans campus orientation.
       ``(G) Ensuring that the Department of Veterans Affairs 
     certifying official at such institution is properly trained.
       ``(3) Priority.--To the extent practicable, each 
     institution described in paragraph (1) shall give priority to 
     hiring a veteran to serve as a Veterans Resource Officer.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2010 and each 
     succeeding fiscal year.''.

     SEC. 103. INVESTMENT IN HISTORICALLY BLACK COLLEGES AND 
                   UNIVERSITIES AND OTHER MINORITY-SERVING 
                   INSTITUTIONS.

       Section 371 (20 U.S.C. 1067q) is amended--
       (1) in subsection (a)--
       (A) in paragraph (2), by striking ``section 502'' and 
     inserting ``section 502(a)'';
       (B) in paragraph (3), by striking ``section 316'' and 
     inserting ``section 316(b)'';
       (C) in paragraph (5), by striking ``in subsection (c)'' and 
     inserting ``in section 318(b)'';
       (D) in paragraph (6), by striking ``in subsection (c)'' and 
     inserting ``in section 320(b)''; and
       (E) in paragraph (7), by striking ``in subsection (c)'' and 
     inserting ``in section 319(b)'';
       (2) in subsection (b)--
       (A) in paragraph (1)(A), by striking ``$255,000,000'' and 
     all that follows and inserting ``$255,000,000 for each of the 
     fiscal years 2008 through 2019.''; and
       (B) by amending paragraph (2)(B) to read as follows:
       ``(B) Stem and articulation programs.--From the amount made 
     available for allocation under this subparagraph by 
     subparagraph (A)(i) for any fiscal year--
       ``(i) 90 percent shall be available for Hispanic-serving 
     institutions for activities described in sections 503 and 
     513, with a priority given to applications that propose--

       ``(I) to increase the number of Hispanic and other low-
     income students attaining degrees in the fields of science, 
     technology, engineering, or mathematics; and
       ``(II) to develop model transfer and articulation 
     agreements between 2-year Hispanic-serving institutions and 
     4-year institutions in such fields; and

       ``(ii) 10 percent shall be available for grants under 
     section 355.'';
       (C) in paragraph (2)(C)(ii), by striking ``and shall be 
     available for a competitive'' and all that follows and 
     inserting ``and shall be made available as grants under 
     section 318 and allotted among such institutions under 
     section 318(e), treating such amount, plus the amount 
     appropriated for such fiscal year in a regular or 
     supplemental appropriation Act to carry out section 318, as 
     the amount appropriated to carry out section 318 for purposes 
     of allotments under section 318(e)''; and
       (D) in paragraph (2)(D)--
       (i) in clause (iii), by striking ``for activities described 
     in section 311(c)'' and inserting ``and shall be made 
     available as grants under section 320, treating such 
     $5,000,000 as part of the amount appropriated for such fiscal 
     year in a regular or supplemental appropriation Act to carry 
     out such section and using such $5,000,000 for purposes 
     described in subsection (c) of such section''; and
       (ii) in clause (iv), by striking ``described in subsection 
     (a)(7)--'' and all that follows and inserting ``and shall be 
     made available as grants under section 319, treating such 
     $5,000,000 as part of the amount appropriated for such fiscal 
     year in a regular or supplemental appropriation Act to carry 
     out such section and using such $5,000,000 for purposes 
     described in subsection (c) of such section''; and
       (3) by striking subsection (c).

     SEC. 104. INVESTMENT IN COOPERATIVE EDUCATION.

       There are authorized to be appropriated, and there are 
     appropriated, to carry out part N of title VIII of the Higher 
     Education Act of 1965 (20 U.S.C. 1161n) (in addition to any 
     other amounts appropriated to carry out such part and out of 
     any money in the Treasury not otherwise appropriated), 
     $10,000,000 for fiscal year 2010.

     SEC. 105. LOAN FORGIVENESS FOR SERVICEMEMBERS ACTIVATED FOR 
                   DUTY.

       (a) In General.--Section 484B(b)(2) (20 U.S.C. 1091b(b)(2)) 
     is amended by adding at the end the following:
       ``(F) Tuition relief for students called to military 
     service.--
       ``(i) Waiver of repayment by students called to military 
     service.--In addition to the waivers authorized by 
     subparagraphs (D) and (E), the Secretary shall waive the 
     amounts that students are required to return under this 
     section if the withdrawals on which the returns

[[Page 21865]]

     are based are withdrawals necessitated by reason of service 
     in the uniformed services.
       ``(ii) Loan forgiveness authorized.--Whenever a student's 
     withdrawal from an institution of higher education is 
     necessitated by reason of service in the uniformed services, 
     the Secretary shall, with respect to the payment period or 
     period of enrollment for which such student did not receive 
     academic credit as a result of such withdrawal, carry out a 
     program--

       ``(I) through the holder of the loan, to assume the 
     obligation to repay--

       ``(aa) the outstanding principal and accrued interest on 
     any loan assistance awarded to the student under part B 
     (including to a parent on behalf of the student under section 
     428B) for such payment period or period of enrollment; minus
       ``(bb) any amount of such loan assistance returned by the 
     institution in accordance with paragraph (1) of this 
     subsection for such payment period or period of enrollment; 
     and

       ``(II) to cancel--

       ``(aa) the outstanding principal and accrued interest on 
     the loan assistance awarded to the student under part D or E 
     (including a Federal Direct PLUS loan awarded to a parent on 
     behalf of the student) for such payment period or period of 
     enrollment; minus
       ``(bb) any amount of such loan assistance returned by the 
     institution in accordance with paragraph (1) of this 
     subsection for such payment period or period of enrollment.
       ``(iii) Reimbursement for cancellation of perkins loans.--
     The Secretary shall pay to each institution for each fiscal 
     year an amount equal to the aggregate of the amounts of 
     Federal Perkins loans in such institutions's student loan 
     fund which are cancelled pursuant to clause (iii)(II) for 
     such fiscal year, minus an amount equal to the aggregate of 
     the amounts of any such loans so canceled which were made 
     from Federal capital contributions to its student loan fund 
     provided by the Secretary under section 468. None of the 
     funds appropriated pursuant to section 461(b) shall be 
     available for payments pursuant to this paragraph. To the 
     extent feasible, the Secretary shall pay the amounts for 
     which any institution qualifies under this paragraph not 
     later than 3 months after the institution files an 
     institutional application for campus-based funds.
       ``(iv) Loan eligibility and limits for students.--Any 
     amounts that are returned by an institution in accordance 
     with paragraph (1), or forgiven or waived by the Secretary 
     under this subparagraph, with respect to a payment period or 
     period of enrollment for which a student did not receive 
     academic credit as a result of withdrawal necessitated by 
     reason of service in the uniformed services, shall not be 
     included in the calculation of the student's annual or 
     aggregate loan limits for assistance under this title, or 
     otherwise affect the student's eligibility for grants or 
     loans under this title.
       ``(v) Definition.--In this subparagraph, the term `service 
     in the uniformed services' has the meaning given such term in 
     section 484C(a).''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect for periods of service in the uniformed services 
     beginning after the date of the enactment of this Act.
       (2) Definition.--In this paragraph, the term ``period of 
     service in the uniformed services'' means the period 
     beginning 30 days prior to the date a student is required to 
     report to service in the uniformed services (as defined in 
     section 484C(a) of the Higher Education Act of 1965 (20 
     U.S.C. 1091c(a)) and ending when such student returns from 
     such service.

     SEC. 106. VETERANS EDUCATIONAL EQUITY SUPPLEMENTAL GRANT 
                   PROGRAM.

       (a) Veterans Educational Equity Supplemental Grant 
     Program.--Subpart 1 of part A of title IV (20 U.S.C. 1070a et 
     seq.) is amended by adding at the end the following:

     ``SEC. 401B. VETERANS EDUCATIONAL EQUITY SUPPLEMENTAL GRANT 
                   PROGRAM.

       ``(a) Veterans Educational Equity Supplemental Grants 
     Authorized.--The Secretary shall award a grant to each 
     eligible student, in an amount determined in accordance with 
     subsection (c), to assist such student with paying the cost 
     of tuition incurred by the student for a program of education 
     at an institution of higher education.
       ``(b) Definitions.--In this section--
       ``(1) Eligible student.--The term `eligible student' means 
     a student who--
       ``(A) is a covered individual, as such term is defined in 
     section 3311(b) of title 38, United States Code;
       ``(B) is enrolled at an institution of higher education 
     that--
       ``(i) is not a public institution of higher education; and
       ``(ii) is located in a State with a zero, or very low, 
     maximum tuition charge per credit hour compared to the 
     maximum tuition charge per credit hour in all other States, 
     as determined by the Secretary of Veterans Affairs (based on 
     the determinations of maximum tuition charged per credit hour 
     in each State for the purposes of chapter 33 of title 38, 
     United States Code); and
       ``(C) is eligible for educational assistance for an 
     academic year, and will receive an amount of such assistance 
     for such year for fees charged the individual that is less 
     than the maximum amount of such assistance available for fees 
     charged for such year in such State.
       ``(2) Educational assistance.--The term `educational 
     assistance' means the amount of educational assistance from 
     the Secretary of Veterans Affairs an eligible student 
     receives or will receive under section 3313(c)(1)(A) of title 
     38, United States Code, or a similar amount of such 
     assistance under paragraphs (2) through (7) of such section 
     3313(c).
       ``(c) Grant Amount.--A grant to an eligible student under 
     this section be equal to an amount that is--
       ``(1) the maximum amount of educational assistance for fees 
     charged that the eligible student would receive, in 
     accordance with section 3313(c) of title 38, United States 
     Code, if such student attended the public institution of 
     higher education in the State in which the eligible student 
     is enrolled that has the highest fees charged to an 
     individual for a year in such State (as determined by the 
     Secretary of Veterans Affairs for the purposes of chapter 33 
     of such title 38), less
       ``(2) the educational assistance the eligible student will 
     receive, in accordance with such section, for fees charged to 
     the student for such year at the institution of higher 
     education at which the student is enrolled.
       ``(d) Uses of Funds.--An eligible student who receives a 
     grant under this section shall use such grant to pay tuition 
     incurred by the student for a program of education at an 
     institution of higher education.
       ``(e) Notification.--The Secretary, in coordination with 
     Secretary of Veterans Affairs, shall establish a system of 
     notification to ensure the timely delivery to each eligible 
     student of--
       ``(1) educational assistance received by the student; and
       ``(2) grants awarded to the student under this section.
       ``(f) Authorization and Appropriation.--There are 
     authorized to be appropriated, and there are appropriated, 
     such sums as may be necessary to carry out this section (in 
     addition to any other amounts appropriated to carry out this 
     section and out of any money in the Treasury not otherwise 
     appropriated).''.
       (b) Conforming Amendment.--The header for subpart 1 of part 
     A of title IV (20 U.S.C. 1070a et seq.) is amended by 
     inserting ``; Veterans Educational Equity Supplemental 
     Grants'' after ``Pell Grants''.

         Subtitle B--Student Financial Aid Form Simplification

     SEC. 121. GENERAL EFFECTIVE DATE.

       Except as otherwise provided in this subtitle, amendments 
     made by this subtitle shall be effective with respect to 
     determinations of need for assistance under title IV of the 
     Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) for 
     award years beginning on or after July 1, 2011.

     SEC. 122. TREATMENT OF ASSETS IN NEED ANALYSIS.

       (a) Amount of Need.--Section 471 (20 U.S.C. 1087kk) is 
     amended--
       (1) by striking ``Except'' and inserting the following:
       ``(a) In General.--Except'';
       (2) by inserting ``and subject to subsection (b)'' after 
     ``therein''; and
       (3) by adding at the end the following:
       ``(b) Asset Cap for Need-based Aid.--Notwithstanding any 
     other provision of this title, a student shall not be 
     eligible to receive a Federal Pell Grant, a Federal Direct 
     Stafford Loan, or work assistance under this title if--
       ``(1) in the case of a dependent student, the combined net 
     assets of the student and the student's parents are equal to 
     an amount greater than $150,000 (or a successor amount 
     prescribed by the Secretary under section 478(c)); or
       ``(2) in the case of an independent student, the net assets 
     of the student (and the student's spouse, if applicable) are 
     equal to an amount greater than $150,000 (or a successor 
     amount prescribed by the Secretary under section 478(c)).''.
       (b) Data Elements.--Section 474(b) (20 U.S.C. 1087nn(b)) is 
     amended--
       (1) by striking paragraph (4); and
       (2) by redesignating paragraphs (5), (6), and (7) as 
     paragraphs (4), (5), and (6), respectively.
       (c) Dependent Students.--Section 475 (20 U.S.C. 1087oo) is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``adjusted''; and
       (ii) by inserting ``and'' after the semicolon;
       (B) in paragraph (2), by striking ``; and'' and inserting a 
     period; and
       (C) by striking paragraph (3);
       (2) in subsection (b)--
       (A) in the header, by striking ``Adjusted'';
       (B) in the matter preceding paragraph (1), by striking 
     ``adjusted'';
       (C) by striking paragraph (1);
       (D) by redesignating paragraphs (2) and (3) as paragraphs 
     (1) and (2), respectively;
       (E) in paragraph (1) (as redesignated by subparagraph (D) 
     of this paragraph), by striking ``adjusted''; and
       (F) in paragraph (2) (as redesignated by subparagraph (D) 
     of this paragraph), by striking ``paragraph (2)'' and 
     inserting ``paragraph (1)'';
       (3) by repealing subsection (d);
       (4) in subsection (e)--
       (A) by striking ``The adjusted available'' and inserting 
     ``The available'';
       (B) by striking ``to as `AAI')'' and inserting ``to as 
     `AI')'';
       (C) by striking ``From Adjusted Available Income (AAI)'' 
     and inserting ``From Available Income (AI)''; and
       (D) in the table--
       (i) by striking ``If AAI'' and inserting ``If AI''; and
       (ii) by striking ``of AAI'' each place it appears and 
     inserting ``of AI'';
       (5) in subsection (f)--
       (A) by striking ``and assets'' each place it appears;
       (B) in paragraph (2)(B), by striking ``or assets''; and

[[Page 21866]]

       (C) in paragraph (3)--
       (i) by striking ``are taken into'' and inserting ``is taken 
     into''; and
       (ii) by striking ``adjusted'';
       (6) in subsection (g)(6), by striking ``exceeds the sum 
     of'' and all that follows and inserting ``exceeds the 
     parents' total income (as defined in section 480)'';
       (7) by repealing subsection (h); and
       (8) in subsection (i), by striking ``adjusted'' each place 
     it appears.
       (d) Family Contribution for Independent Students Without 
     Dependents Other Than a Spouse.--Section 476 (20 U.S.C. 
     1087pp) is amended--
       (1) in subsection (a)--
       (A) by striking paragraph (1);
       (B) by redesignating paragraphs (2) and (3) as paragraphs 
     (1) and (2), respectively;
       (C) in paragraph (1) (as redesignated by subparagraph (B)), 
     by striking ``the sum resulting under paragraph (1)'' and 
     inserting ``the family's contribution from available income 
     (determined in accordance with subsection (b))''; and
       (D) in paragraph (2)(A) (as redesignated by subparagraph 
     (B)), by striking ``paragraph (2)'' and inserting ``paragraph 
     (1)'';
       (2) by repealing subsection (c); and
       (3) in subsection (d)--
       (A) by striking ``and assets''; and
       (B) by striking ``or assets''.
       (e) Family Contribution for Independent Students With 
     Dependents Other Than a Spouse.--Section 477 (20 U.S.C. 
     1087qq) is amended--
       (1) in subsection (a)--
       (A) by striking paragraph (1);
       (B) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (1), (2), and (3), respectively;
       (C) in paragraph (1) (as redesignated by subparagraph (B)), 
     by striking ``such adjusted available income'' and inserting 
     ``the family's available income (determined in accordance 
     with subsection (b))'';
       (D) in paragraph (2) (as redesignated by subparagraph (B)), 
     by striking ``paragraph (2)'' and inserting ``paragraph 
     (1)''; and
       (E) in paragraph (3)(A) (as redesignated by subparagraph 
     (B)), by striking ``paragraph (3)'' and inserting ``paragraph 
     (2)'';
       (2) by repealing subsection (c); and
       (3) in subsection (d)--
       (A) by striking ``The adjusted available'' and inserting 
     ``The available'';
       (B) by striking ``to as `AAI')'' and inserting ``to as 
     `AI')'';
       (C) by striking ``From Adjusted Available Income (AAI)'' 
     and inserting ``From Available Income (AI)''; and
       (D) in the table--
       (i) by striking ``If AAI'' and inserting ``If AI''; and
       (ii) by striking ``of AAI'' each place it appears and 
     inserting ``of AI''; and
       (E) in subsection (e)--
       (i) by striking ``and assets''; and
       (ii) by striking ``or assets''.
       (f) Regulations; Updated Tables.--Section 478 (20 U.S.C. 
     1087rr) is amended--
       (1) in subsection (a), by inserting ``or amounts, as the 
     case may be,'' after ``tables'' each place the term appears;
       (2) by amending subsection (c) to read as follows:
       ``(c) Asset Cap for Need-based Aid.--For each award year 
     after award year 2011-2012, the Secretary shall publish in 
     the Federal Register a revised net asset cap for the purposes 
     of section 471(b). Such revised cap shall be determined by 
     increasing the dollar amount in such section by a percentage 
     equal to the estimated percentage change in the Consumer 
     Price Index (as determined by the Secretary) between December 
     2010 and the December preceding the beginning of such award 
     year, and rounding the result to the nearest $5.'';
       (3) by repealing subsection (d); and
       (4) in subsection (e), by striking ``adjusted'' both places 
     it appears.

     SEC. 123. CHANGES TO TOTAL INCOME; AID ELIGIBILITY.

       (a) Definition of Untaxed Income and Benefits.--Section 
     480(b)(1) (20 U.S.C. 1087vv(b)(1)), as amended by the Higher 
     Education Opportunity Act (Public Law 110-315), is amended--
       (1) by striking subparagraphs (A), (B), (C), (E), (F), and 
     (I);
       (2) by redesignating subparagraphs (D), (G), and (H) as 
     subparagraphs (A), (B), and (C), respectively;
       (3) in subparagraph (B) (as redesignated by paragraph (2)), 
     by inserting ``and'' after the semicolon; and
       (4) in subparagraph (C) (as redesignated by paragraph (2)), 
     by striking ``; and'' and inserting a period.
       (b) Definition of Assets.--Section 480(f)(2) (20 U.S.C. 
     1087vv(f)(2)) is amended--
       (1) by striking ``or'' at the end of subparagraph (B);
       (2) by striking the period at the end of subparagraph (C) 
     and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(D) an employee pension benefit plan (as defined in 
     section 3(2) of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1002(2))).''.
       (c) Financial Administrator Discretion.--Section 479A(b) 
     (20 U.S.C. 1087tt) is amended in the subsection heading, by 
     striking ``to Assets''.
       (d) Suspension of Eligibility for Drug-related Offenses.--
     Section 484(r)(1) (20 U.S.C. 1091(r)(1)) is amended to read 
     as follows:
       ``(1) In general.--A student who is convicted of any 
     offense under any Federal or State law involving the sale of 
     a controlled substance for conduct that occurred during a 
     period of enrollment for which the student was receiving any 
     grant, loan, or work assistance under this title shall not be 
     eligible to receive any grant, loan, or work assistance under 
     this title from the date of that conviction for the period of 
     time specified in the following subparagraphs:
       ``(A) For a first offense, the period of ineligibility 
     shall be 2 years.
       ``(B) For a second offense, the period of ineligibility 
     shall be indefinite.''.

                     TITLE II--STUDENT LOAN REFORM

                    Subtitle A--Stafford Loan Reform

     SEC. 201. FEDERAL FAMILY EDUCATION LOAN APPROPRIATIONS.

       Section 421 (20 U.S.C. 1071) is amended--
       (1) in subsection (b), in the matter following paragraph 
     (6), by inserting ``, except that no sums may be expended 
     after June 30, 2010, with respect to loans under this part 
     for which the first disbursement would be made after such 
     date'' after ``expended''; and
       (2) by adding at the end the following new subsection:
       ``(d) Termination of Authority To Make or Insure New 
     Loans.--Notwithstanding paragraphs (1) through (6) of 
     subsection (b) or any other provision of law--
       ``(1) no new loans (including consolidation loans) may be 
     made or insured under this part after June 30, 2010; and
       ``(2) no funds are authorized to be appropriated, or may be 
     expended, under this Act or any other Act to make or insure 
     loans under this part (including consolidation loans) for 
     which the first disbursement would be made after June 30, 
     2010,

     except as expressly authorized by an Act of Congress enacted 
     after the date of enactment of Student Aid and Fiscal 
     Responsibility Act of 2009.''.

     SEC. 202. SCOPE AND DURATION OF FEDERAL LOAN INSURANCE 
                   PROGRAM.

       Section 424(a) (20 U.S.C. 1074(a)) is amended by striking 
     ``September 30, 1976,'' and all that follows and inserting 
     ``September 30, 1976, for each of the succeeding fiscal years 
     ending prior to October 1, 2009, and for the period from 
     October 1, 2009, to June 30, 2010, for loans first disbursed 
     on or before June 30, 2010.''.

     SEC. 203. APPLICABLE INTEREST RATES.

       Section 427A(l) (20 U.S.C. 1077a(l)) is amended--
       (1) in paragraph (1), by inserting ``and before July 1, 
     2010,'' after ``July 1, 2006,'';
       (2) in paragraph (2), by inserting ``and before July 1, 
     2010,'' after ``July 1, 2006,'';
       (3) in paragraph (3), by inserting ``and that was disbursed 
     before July 1, 2010,'' after ``July 1, 2006,''; and
       (4) in paragraph (4)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``July 1, 2012'' and inserting ``July 1, 2010''; and
       (B) by repealing subparagraphs (D) and (E).

     SEC. 204. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS.

       (a) Higher Education Act of 1965.--Section 428 (20 U.S.C. 
     1078) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), in the matter preceding subparagraph 
     (A), by inserting ``for which the first disbursement is made 
     before July 1, 2010, and'' after ``eligible institution''; 
     and
       (B) in paragraph (5), by striking ``September 30, 2014,'' 
     and all that follows through the period and inserting ``June 
     30, 2010.'';
       (2) in subsection (b)(1)--
       (A) in subparagraph (G)(ii), by inserting ``and before July 
     1, 2010,'' after ``July 1, 2006,''; and
       (B) in subparagraph (H)(ii), by inserting ``and that are 
     first disbursed before July 1, 2010,'' after ``July 1, 
     2006,'';
       (3) in subsection (f)(1)(A)(ii)--
       (A) by striking ``during fiscal years beginning''; and
       (B) by inserting ``and first disbursed before July 1, 
     2010,'' after ``October 1, 2003,''; and
       (4) in subsection (j)(1), by inserting ``, before July 1, 
     2010,'' after ``section 435(d)(1)(D) of this Act shall''.
       (b) College Cost Reduction and Access Act.--Section 303 of 
     the College Cost Reduction and Access Act (Public Law 110-84) 
     is repealed.

     SEC. 205. FEDERAL PLUS LOANS.

       Section 428B(a)(1) (20 U.S.C. 1078-2(a)(1)) is amended by 
     striking ``A graduate'' and inserting ``Prior to July 1, 
     2010, a graduate''.

     SEC. 206. FEDERAL CONSOLIDATION LOAN.

       (a) Amendments.--Section 428C (20 U.S.C. 1078-3) is 
     amended--
       (1) in subsection (a)--
       (A) by amending paragraph (3)(B)(i)(V) to read as follows:
       ``(V) an individual who has a consolidation loan under this 
     section and does not have a consolidation loan under section 
     455(g) may obtain a subsequent consolidation loan under 
     section 455(g).''; and
       (B) in paragraph (4)(A), by inserting ``, and first 
     disbursed before July 1, 2010'' after ``under this part'';
       (2) in subsection (b)--
       (A) in paragraph (1)(E), by inserting before the semicolon 
     ``, and before July 1, 2010''; and
       (B) in paragraph (5), by striking ``In the event that'' and 
     inserting ``If, before July 1, 2010,'';
       (3) in subsection (c)(1)--
       (A) in subparagraph (A)(ii), by inserting ``and that is 
     disbursed before July 1, 2010,'' after ``2006,''; and
       (B) in subparagraph (C), by inserting ``and first disbursed 
     before July 1, 2010,'' after ``1994,''; and
       (4) in subsection (e), by striking ``September 30, 2014.'' 
     and inserting ``June 30, 2010. No loan

[[Page 21867]]

     may be made under this section for which the first 
     disbursement would be on or after July 1, 2010.''.
       (b) Effective Date.--The amendments made by subsection 
     (a)(1)(A) shall be effective at the close of June 30, 2010.

     SEC. 207. UNSUBSIDIZED STAFFORD LOANS FOR MIDDLE-INCOME 
                   BORROWERS.

       Section 428H (20 U.S.C. 1078-8) is amended--
       (1) in subsection (a), by inserting ``that are first 
     disbursed before July 1, 2010,'' after ``under this part'';
       (2) in subsection (b)--
       (A) by striking ``Any student'' and inserting ``Prior to 
     July 1, 2010, any student''; and
       (B) by inserting ``for which the first disbursement is made 
     before such date'' after ``unsubsidized Federal Stafford 
     Loan''; and
       (3) in subsection (h), by inserting ``and that are first 
     disbursed before July 1, 2010,'' after ``July 1, 2006,''.

     SEC. 208. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE 
                   ATTORNEYS.

       Section 428L(b)(2)(A) (20 U.S.C. 1078-12(b)(2)(A)) is 
     amended--
       (1) by amending clause (i) to read as follows:
       ``(i) subject to clause (ii)--

       ``(I) a loan made, insured, or guaranteed under this part, 
     and that is first disbursed before July 1, 2010; or
       ``(II) a loan made under part D or part E; and''; and

       (2) in clause (ii)--
       (A) by striking ``428C or 455(g)'' and inserting ``428C, 
     that is disbursed before July 1, 2010, or section 455(g)''; 
     and
       (B) in subclause (II), by inserting ``for which the first 
     disbursement is made before July 1, 2010,'' after ``or 
     428H''.

     SEC. 209. SPECIAL ALLOWANCES.

       Section 438 (20 U.S.C. 1087-1) is amended--
       (1) in subsection (b)(2)(I)--
       (A) in the header, by inserting ``, and before july 1, 
     2010'' after ``2000'';
       (B) in clause (i), by inserting ``and before July 1, 
     2010,'' after ``2000,'';
       (C) in clause (ii)(II), by inserting ``and before July 1, 
     2010,'' after ``2006,'';
       (D) in clause (iii), by inserting ``and before July 1, 
     2010,'' after ``2000,'';
       (E) in clause (iv), by inserting ``and that is disbursed 
     before July 1, 2010,'' after ``2000,'';
       (F) in clause (v)(I), by inserting ``and before July 1, 
     2010,'' after ``2006,''; and
       (G) in clause (vi)--
       (i) in the header, by inserting ``, and before july 1, 
     2010'' after ``2007''; and
       (ii) in the matter preceding subclause (I), by inserting 
     ``and before July 1, 2010,'' after ``2007,'';
       (2) in subsection (c)--
       (A) in paragraph (2)(B)--
       (i) in clause (iii), by inserting ``and'' after the 
     semicolon;
       (ii) in clause (iv), by striking ``; and'' and inserting a 
     period; and
       (iii) by striking clause (v); and
       (B) in paragraph (6), by inserting ``and first disbursed 
     before July 1, 2010,'' after ``1992,''; and
       (3) in subsection (d)(2)(B), by inserting ``, and before 
     July 1, 2010'' after ``2007''.

     SEC. 210. REVISED SPECIAL ALLOWANCE CALCULATION.

       (a) Revised Calculation Rule.--Section 438(b)(2)(I) of the 
     Higher Education Act of 1965 (20 U.S.C. 1087-1(b)(2)(I)) is 
     amended by adding at the end the following new clause:
       ``(vii) Revised calculation rule to reflect financial 
     market conditions.--

       ``(I) Calculation based on libor.--For the calendar quarter 
     beginning on October 1, 2009, and each subsequent calendar 
     quarter, in computing the special allowance paid pursuant to 
     this subsection with respect to loans described in subclause 
     (II), clause (i)(I) of this subparagraph shall be applied by 
     substituting `of the 1-month London Inter Bank Offered Rate 
     (LIBOR) for United States dollars in effect for each of the 
     days in such quarter as compiled and released by the British 
     Bankers Association' for `of the quotes of the 3-month 
     commercial paper (financial) rates in effect for each of the 
     days in such quarter as reported by the Federal Reserve in 
     Publication H-15 (or its successor) for such 3-month period'.
       ``(II) Loans eligible for libor-based calculation.--The 
     special allowance paid pursuant to this subsection shall be 
     calculated as described in subclause (I) with respect to 
     special allowance payments for the 3-month period ending 
     December 31, 2009, and each succeeding 3-month period, on 
     loans for which the first disbursement is made--

       ``(aa) on or after the date of enactment of the Student Aid 
     and Fiscal Responsibility Act of 2009, and before July 1, 
     2010; and
       ``(bb) on or after January 1, 2000, and before the date of 
     enactment of the Student Aid and Fiscal Responsibility Act of 
     2009, if, not later than the last day of the second full 
     fiscal quarter after the date of enactment of such Act, the 
     holder of the loan affirmatively and permanently waives all 
     contractual, statutory or other legal rights to a special 
     allowance paid pursuant to this subsection that is calculated 
     using the formula in effect at the time the loans were first 
     disbursed.

       ``(III) Terms of waiver.--A waiver pursuant to subclause 
     (II)(bb) shall--

       ``(aa) be applicable to all loans described in such 
     subclause that are held under any lender identification 
     number associated with the holder (pursuant to section 487B); 
     and
       ``(bb) apply with respect to all future calculations of the 
     special allowance on loans described in such subclause that 
     are held on the date of such waiver or that are acquired by 
     the holder after such date.

       ``(IV) Participant's yield.--For the calendar quarter 
     beginning on October 1, 2009, and each subsequent calendar 
     quarter, the Secretary's participant yield in any loan for 
     which the first disbursement is made on or after January 1, 
     2000, and before October 1, 2009, and that is held by a 
     lender that has sold any participation interest in such loan 
     to the Secretary shall be determined by using the LIBOR-based 
     rate described in subclause (I) as the substitute rate (for 
     the commercial paper rate) referred to in the participation 
     agreement between the Secretary and such lender.'';

       (b) Conforming Amendment.--Section 438(b)(2)(I) (20 U.S.C. 
     1087-1(b)(2)(I)) is further amended--
       (1) in clause (i)(II), by striking ``such average bond 
     equivalent rate'' and inserting ``the rate determined under 
     subclause (I)''; and
       (2) in clause (v)(III) by striking ``(iv), and (vi)'' and 
     inserting ``(iv), (vi), and (vii)''.

     SEC. 211. ORIGINATION OF DIRECT LOANS AT INSTITUTIONS LOCATED 
                   OUTSIDE THE UNITED STATES.

       (a) Loans for Students Attending Institutions Located 
     Outside the United States.--Section 452 (20 U.S.C. 1087b) is 
     amended by adding at the end the following:
       ``(d) Institutions Located Outside the United States.--Loan 
     funds for students (and parents of students) attending 
     institutions located outside the United States shall be 
     disbursed through a financial institution located in the 
     United States and designated by the Secretary to serve as the 
     agent of such institutions with respect to the receipt of the 
     disbursements of such loan funds and the transfer of such 
     funds to such institutions. To be eligible to receive funds 
     under this part, an otherwise eligible institution located 
     outside the United States shall make arrangements, subject to 
     regulations by the Secretary, with the agent designated by 
     the Secretary under this subsection to receive funds under 
     this part.''.
       (b) Conforming Amendments.--
       (1) Amendments.--Section 102 (20 U.S.C. 1002), as amended 
     by section 102 of the Higher Education Opportunity Act 
     (Public Law 110-315) and section 101 of Public Law 111-39, is 
     amended--
       (A) by striking ``part B'' each place it appears and 
     inserting ``part D'';
       (B) in subsection (a)(1)(C), by inserting ``, consistent 
     with the requirements of section 452(d)'' before the period 
     at the end; and
       (C) in subsection (a)(2)(A)--
       (i) in the matter preceding clause (i), by striking ``made, 
     insured, or guaranteed'' and inserting ``made''; and
       (ii) in clause (iii)--

       (I) in subclause (III), by striking ``only Federal 
     Stafford'' and all that follows through ``section 428B'' and 
     inserting ``only Federal Direct Stafford Loans under section 
     455(a)(2)(A), Federal Direct Unsubsidized Stafford Loans 
     under section 455(a)(2)(D), or Federal Direct PLUS Loans 
     under section 455(a)(2)(B)''; and
       (II) in subclause (V), by striking ``a Federal Stafford'' 
     and all that follows through ``section 428B'' and inserting 
     ``a Federal Direct Stafford Loan under section 455(a)(2)(A), 
     a Federal Direct Unsubsidized Stafford Loan under section 
     455(a)(2)(D), or a Federal Direct PLUS Loan under section 
     455(a)(2)(B)''.

       (2) Effective date.--The amendments made by subparagraph 
     (C) of paragraph (1) shall be effective on July 1, 2010, as 
     if enacted as part of section 102(a)(1) of the Higher 
     Education Opportunity Act (Public Law 110-315).

     SEC. 212. AGREEMENTS WITH INSTITUTIONS.

       Section 454 (20 U.S.C. 1087d) is amended--
       (1) in subsection (a), by striking paragraph (4) and 
     redesignating the succeeding paragraphs accordingly; and
       (2) in subsection (b)(2), by striking ``(5), (6), and (7)'' 
     and inserting ``(5), and (6)''.

     SEC. 213. TERMS AND CONDITIONS OF LOANS.

       (a) Amendments.--Section 455 (20 U.S.C. 1087e) is amended--
       (1) in subsection (a)(1), by inserting ``, and first 
     disbursed on June 30, 2010,'' before ``under sections 428''; 
     and
       (2) in subsection (g)--
       (A) by inserting ``, including any loan made under part B 
     and first disbursed before July 1, 2010'' after ``section 
     428C(a)(4)''; and
       (B) by striking the third sentence.
       (b) Effective Date.--The amendment made by subsection 
     (a)(1) shall apply with respect to loans first disbursed 
     under part D of title IV of the Higher Education Act of 1965 
     (20 U.S.C. 1087a et seq.) on or after July 1, 2010.

     SEC. 214. CONTRACTS.

       Section 456 (20 U.S.C. 1087f) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) in the header, by striking ``In general'' and inserting 
     ``Awarding of contracts'';
       (ii) by striking ``The Secretary'' and inserting the 
     following:
       ``(A) In general.--The Secretary''; and
       (iii) by adding at the end the following:
       ``(B) Awarding contracts for servicing loans.--The 
     Secretary shall, if practicable, award multiple contracts, 
     through a competitive bidding process, to entities, including 
     eligible not-for-profit servicers, to service loans 
     originated under this part. The competitive bidding process 
     shall take into account price, servicing capacity, and 
     capability, and may take into account the capacity and 
     capability to provide default aversion activities and 
     outreach services.
       ``(C) Job retention incentive payment.--(i) In a contract 
     with an entity under subparagraph (B) for the servicing of 
     loans, the Secretary shall provide a job retention incentive

[[Page 21868]]

     payment, in an amount and manner determined by the Secretary, 
     if such entity agrees to give priority for hiring for 
     positions created as a result of such a contract to those 
     geographical locations at which the entity performed student 
     loan origination or servicing activities under the Federal 
     Family Education Loan Program as of the date of enactment of 
     the Student Aid and Fiscal Responsibility Act of 2009.
       ``(ii) In determining the allocation of loans to be 
     serviced by an entity awarded such a contract, the Secretary 
     shall consider the retention of highly qualified employees of 
     such entity a positive factor in determining such 
     allocation.'';
       (B) in paragraph (2)--
       (i) in the first sentence, by inserting ``, including 
     eligible not-for-profit servicers,'' after ``The entities'';
       (ii) by amending the third sentence to read as follows: 
     ``The entities with which the Secretary may enter into such 
     contracts shall include, where practicable, agencies with 
     agreements with the Secretary under sections 428(b) and (c) 
     on the date of the enactment of the Student Aid and Fiscal 
     Responsibility Act of 2009, and eligible not-for-profit 
     servicers, if such agencies or servicers meet the 
     qualifications as determined by the Secretary under this 
     subsection and if those agencies or servicers have such 
     experience and demonstrated effectiveness.''; and
       (iii) by striking the last sentence and inserting the 
     following: ``In awarding contracts to such State agencies, 
     and such eligible not-for-profit servicers, the Secretary 
     shall, to the extent practicable and consistent with the 
     purposes of this part, give special consideration to State 
     agencies and such servicers with a history of high quality 
     performance and demonstrated integrity in conducting 
     operations with institutions of higher education and the 
     Secretary.'';
       (C) by redesignating paragraph (3) as paragraph (4), and by 
     inserting in such paragraph ``, or of any eligible not-for-
     profit servicer to enter into an agreement for the purposes 
     of this section as a member of a consortium of such 
     entities'' before the period at the end; and
       (D) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) Servicing by eligible not-for-profit servicers.--
       ``(A) In general.--Notwithstanding any other provision of 
     this section, in each State where one or more eligible not-
     for-profit servicer has its principal place of business, the 
     Secretary shall contract with each such servicer to service 
     loans originated under this part on behalf of borrowers 
     attending institutions located within such State, provided 
     that the servicer demonstrates that it meets the standards 
     for servicing Federal assets and providing quality service 
     and agrees to service the loans at a competitive market rate, 
     as determined by the Secretary. In determining such a 
     competitive market rate, the Secretary may take into account 
     the volume of loans serviced by the servicer. Contracts 
     awarded under this paragraph shall be subject to the same 
     requirements for quality, performance, and accountability as 
     contracts awarded under paragraph (2) for similar activities.
       ``(B) Allocations.--(i) One servicer.--In the case of a 
     State with only one eligible not-for-profit servicer with a 
     contract described in subparagraph (A), the Secretary shall, 
     at a minimum, allocate to such servicer, on an annual basis 
     and subject to such contract, the servicing rights for the 
     lesser of--
       ``(I) the loans of 100,000 borrowers (including borrowers 
     who borrowed loans in a prior year that were serviced by the 
     servicer) attending institutions located within the State; or
       ``(II) the loans of all the borrowers attending 
     institutions located within the State.
       ``(ii) Multiple servicers.--In the case of a State with 
     more than one eligible not-for-profit servicer with a 
     contract described in subparagraph (A), the Secretary shall, 
     at a minimum, allocate to each such servicer, on an annual 
     basis and subject to such contract, the servicing rights for 
     the lesser of--
       ``(I) the loans of 100,000 borrowers (including borrowers 
     who borrowed loans in a prior year that were serviced by the 
     servicer) attending institutions located within the State; or
       ``(II) an equal share of the loans of all borrowers 
     attending institutions located within the State, except the 
     Secretary shall adjust such shares as necessary to ensure 
     that the loans of any single borrower remain with a single 
     servicer.
       ``(iii) Additional allocation.--The Secretary may allocate 
     additional servicing rights to an eligible not-for-profit 
     servicer based on the performance of such servicer, as 
     determined by the Secretary, including performance in the 
     areas of customer service and default aversion.
       ``(C) Multiple loans.--Notwithstanding the allocations 
     required by subparagraph (B), the Secretary may transfer 
     loans among servicers who are awarded contracts to service 
     loans pursuant to this section to ensure that the loans of 
     any single borrower remain with a single servicer.''; and
       (2) by adding at the end the following:
       ``(c) Report to Congress.--Not later than 3 years after the 
     date of the enactment of the Student Aid and Fiscal 
     Responsibility Act of 2009, the Secretary shall prepare and 
     submit to the authorizing committees, a report evaluating the 
     performance of all eligible not-for-profit servicers awarded 
     a contract under this section to service loans originated 
     under this part. Such report shall give consideration to--
       ``(1) customer satisfaction of borrowers and institutions 
     with respect to the loan servicing provided by the servicers;
       ``(2) compliance with applicable regulations by the 
     servicers; and
       ``(3) the effectiveness of default aversion activities, and 
     outreach services (if any), provided by the servicers.
       ``(d) Definitions.--In this section:
       ``(1) Default aversion activities.--The term `default 
     aversion activities' means activities that are directly 
     related to providing collection assistance to the Secretary 
     on a delinquent loan, prior to the loan being legally in a 
     default status, including due diligence activities required 
     pursuant to regulations.
       ``(2) Eligible not-for-profit servicer.--
       ``(A) In general.--The term `eligible not-for-profit 
     servicer' means an entity that, on the date of enactment of 
     the Student Aid and Fiscal Responsibility Act of 2009--
       ``(i) meets the definition of an eligible not-for-profit 
     holder under section 435(p), except that such term does not 
     include eligible lenders described in paragraph (1)(D) of 
     such section;
       ``(ii) notwithstanding clause (i), is the sole beneficial 
     owner of a loan for which the special allowance rate is 
     calculated under section 438(b)(2)(I)(vi)(II) because the 
     loan is held by an eligible lender trustee that is an 
     eligible not-for-profit holder as defined under section 
     435(p)(1)(D); or
       ``(iii) is an affiliated entity of an eligible not-for-
     profit servicer described in clause (i) or (ii) that--

       ``(I) directly employs, or will directly employ (on or 
     before the date the entity begins servicing loans under a 
     contract awarded by the Secretary pursuant to subsection 
     (a)(3)(A)), the majority of individuals who perform student 
     loan servicing functions; and
       ``(II) on such date of enactment, was performing, or had 
     entered into a contract with a third party servicer (as such 
     term is defined in section 481(c)) who was performing, 
     student loan servicing functions for loans made under part B 
     of this title.

       ``(B) Affiliated entity.--For the purposes of subparagraph 
     (A), the term `affiliated entity' means an entity contracted 
     to perform services for an eligible not-for-profit servicer 
     that--
       ``(i) is a nonprofit entity or is wholly owned by a 
     nonprofit entity; and
       ``(ii) is not owned or controlled, in whole or in part, 
     by--

       ``(I) a for-profit entity; or
       ``(II) an entity having its principal place of business in 
     another State.

       ``(3) Outreach services.--The term `outreach services' 
     means programs offered to students and families, including 
     programs delivered in coordination with institutions of 
     higher education that--
       ``(A) encourage--
       ``(i) students to attend and complete a degree or 
     certification program at an institution of higher education; 
     and
       ``(ii) students and families to obtain financial aid, but 
     minimize the borrowing of education loans; and
       ``(B) deliver financial literacy and counseling tools.''.

     SEC. 215. INTEREST RATES.

       Section 455(b)(7) (20 U.S.C. 1087e(b)(7)) is amended by 
     adding at the end the following new subparagraph:
       ``(E) Reduced rates for undergraduate fdsl on and after 
     july 1, 2012.--Notwithstanding the preceding paragraphs of 
     this subsection and subparagraph (A) of this paragraph, for 
     Federal Direct Stafford Loans made to undergraduate students 
     for which the first disbursement is made on or after July 1, 
     2012, the applicable rate of interest shall, during any 12-
     month period beginning on July 1 and ending on June 30, be 
     determined on the preceding June 1 and be equal to--
       ``(i) the bond equivalent rate of 91-day Treasury bills 
     auctioned at the final auction held prior to such June 1; 
     plus
       ``(ii) 2.5 percent,

     except that such rate shall not exceed 6.8 percent.''.

                    Subtitle B--Perkins Loan Reform

     SEC. 221. FEDERAL DIRECT PERKINS LOANS TERMS AND CONDITIONS.

       Part D of title IV (20 U.S.C. 1087a et seq.) is amended by 
     inserting after section 455 the following new section:

     ``SEC. 455A. FEDERAL DIRECT PERKINS LOANS.

       ``(a) Designation of Loans.--Loans made to borrowers under 
     this section shall be known as `Federal Direct Perkins 
     Loans'.
       ``(b) In General.--It is the purpose of this section to 
     authorize loans to be awarded by institutions of higher 
     education through agreements established under section 
     463(f). Unless otherwise specified in this section, all terms 
     and conditions and other requirements applicable to Federal 
     Direct Unsubsidized Stafford loans established under section 
     455(a)(2)(D) shall apply to loans made pursuant to this 
     section.
       ``(c) Eligible Borrowers.--Any student meeting the 
     requirements for student eligibility under section 464(b) 
     (including graduate and professional students as defined in 
     regulations promulgated by the Secretary) shall be eligible 
     to borrow a Federal Direct Perkins Loan, provided the student 
     attends an eligible institution with an agreement with the 
     Secretary under section 463(f), and the institution uses its 
     authority under that agreement to award the student a loan.
       ``(d) Loan Limits.--The annual and aggregate limits for 
     loans under this section shall be the same as those 
     established under section 464, and aggregate limits shall 
     include loans made by institutions under agreements under 
     section 463(a).

[[Page 21869]]

       ``(e) Applicable Rates of Interest.--Loans made pursuant to 
     this section shall bear interest, on the unpaid balance of 
     the loan, at the rate of 5 percent per year.''.

     SEC. 222. AUTHORIZATION OF APPROPRIATIONS.

       Section 461 (20 U.S.C. 1087aa) is amended--
       (1) in subsection (a), by inserting ``, before July 1, 
     2010,'' after ``The Secretary shall'';
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) by striking ``(1) For the purpose'' and inserting ``For 
     the purpose''; and
       (ii) by striking ``and for each of the five succeeding 
     fiscal years''; and
       (B) by striking paragraph (2); and
       (3) by striking subsection (c).

     SEC. 223. ALLOCATION OF FUNDS.

       Section 462 (20 U.S.C. 1087bb) is amended--
       (1) in subsection (a)(1), by striking ``From'' and 
     inserting ``For any fiscal year before fiscal year 2010, 
     from''; and
       (2) in subsection (i)(1), by striking ``for any fiscal 
     year,'' and inserting ``for any fiscal year before fiscal 
     year 2010,''.

     SEC. 224. FEDERAL DIRECT PERKINS LOAN ALLOCATION.

       Part E of title IV is further amended by inserting after 
     section 462 (20 U.S.C. 1087bb) the following:

     ``SEC. 462A. FEDERAL DIRECT PERKINS LOAN ALLOCATION.

       ``(a) Purposes.--The purposes of this section are--
       ``(1) to allocate, among eligible and participating 
     institutions (as such terms are defined in this section), the 
     authority to make Federal Direct Perkins Loans under section 
     455A with a portion of the annual loan authority described in 
     subsection (b); and
       ``(2) to make funds available, in accordance with section 
     452, to each participating institution from a portion of the 
     annual loan authority described in subsection (b), in an 
     amount not to exceed the sum of an institution's allocation 
     of funds under subparagraphs (A), (B), and (C) of subsection 
     (b)(1) to enable each such institution to make Federal Direct 
     Perkins Loans to eligible students at the institution.
       ``(b) Available Direct Perkins Annual Loan Authority.--
       ``(1) Availability and allocations.--There are hereby made 
     available, from funds made available for loans made under 
     part D, not to exceed $6,000,000,000 of annual loan authority 
     for award year 2010-2011 and each succeeding award year, to 
     be allocated as follows:
       ``(A) The Secretary shall allocate not more than \1/2\ of 
     such funds for each award year by allocating to each 
     participating institution an amount equal to the adjusted 
     self-help need amount of the institution, as determined in 
     accordance with subsection (c) for such award year.
       ``(B) The Secretary shall allocate not more than \1/4\ of 
     such funds for each award year by allocating to each 
     participating institution an amount equal to the low tuition 
     incentive amount of the institution, as determined in 
     accordance with subsection (d).
       ``(C) The Secretary shall allocate not more than \1/4\ of 
     such funds for each award year by allocating to each 
     participating institution an amount which bears the same 
     ratio to the funds allocated under this subparagraph as the 
     ratio determined in accordance with subsection (e) for the 
     calculation of the Federal Pell Grant and degree recipient 
     amount of the institution.
       ``(2) No funds to non-participating institutions.--The 
     Secretary shall not make funds available under this 
     subsection to any eligible institution that is not a 
     participating institution. The adjusted self-help need amount 
     (determined in accordance with subsection (c)) of an eligible 
     institution that is not a participating institution shall not 
     be made available to any other institution.
       ``(c) Adjusted Self-help Need Amount.--For the purposes of 
     subsection (b)(1)(A), the Secretary shall calculate the 
     adjusted self-help need amount of each eligible institution 
     for an award year as follows:
       ``(1) Use of base self-help need amounts.--
       ``(A) In general.--Except as provided in paragraphs (2), 
     (3), and (4), the adjusted self-help need amount of each 
     eligible institution shall be the institution's base self-
     help need amount, which is the sum of--
       ``(i) the self-help need of the institution's eligible 
     undergraduate students for such award year; and
       ``(ii) the self-help need of the institution's eligible 
     graduate and professional students for such award year.
       ``(B) Undergraduate student self-help need.--To determine 
     the self-help need of an institution's eligible undergraduate 
     students, the Secretary shall determine the sum of each 
     eligible undergraduate student's average cost of attendance 
     for the second preceding award year less each such student's 
     expected family contribution (computed in accordance with 
     part F) for the second preceding award year, except that, for 
     each such eligible undergraduate student, the amount computed 
     by such subtraction shall not be less than zero or more than 
     the lesser of--
       ``(i) 25 percent of the average cost of attendance with 
     respect to such eligible student; or
       ``(ii) $5,500.
       ``(C) Graduate and professional student self-help need.--To 
     determine the self-help need of an institution's eligible 
     graduate and professional students, the Secretary shall 
     determine the sum of each eligible graduate and professional 
     student's average cost of attendance for the second preceding 
     award year less each such student's expected family 
     contribution (computed in accordance with part F) for such 
     second preceding award year, except that, for each such 
     eligible graduate and professional student, the amount 
     computed by such subtraction shall not be less than zero or 
     more than $8,000.
       ``(2) Ratable reduction adjustments.--If the sum of the 
     base self-help need amounts of all eligible institutions for 
     an award year as determined under paragraph (1) exceeds \1/2\ 
     of the annual loan authority under subsection (b) for such 
     award year, the Secretary shall ratably reduce the base self-
     help need amounts of all eligible institutions until the sum 
     of such amounts is equal to the amount that is \1/2\ of the 
     annual loan authority under subsection (b).
       ``(3) Required minimum amount.--Notwithstanding paragraph 
     (2), the adjusted self-help need amount of each eligible 
     institution shall not be less than the average of the 
     institution's total principal amount of loans made under this 
     part for each of the 5 most recent award years.
       ``(4) Additional adjustments.--If the Secretary determines 
     that a ratable reduction under paragraph (2) results in the 
     adjusted self-help need amount of any eligible institution 
     being reduced below the minimum amount required under 
     paragraph (3), the Secretary shall--
       ``(A) for each institution for which the minimum amount 
     under paragraph (3) is not satisfied, increase the adjusted 
     self-help need amount to the amount of the required minimum 
     under such subparagraph; and
       ``(B) ratably reduce the adjusted self-help need amounts of 
     all eligible institutions not described in subparagraph (A) 
     until the sum of the adjusted self-help need amounts of all 
     eligible institutions is equal to the amount that is \1/2\ of 
     the annual loan authority under subsection (b).
       ``(d) Low Tuition Incentive Amount.--
       ``(1) In general.--For purposes of subsection (b)(1)(B), 
     the Secretary shall determine the low tuition incentive 
     amount for each participating institution for each award 
     year, by calculating for each such institution the sum of--
       ``(A) the total amount, if any (but not less than zero), by 
     which--
       ``(i) the average tuition and required fees for the 
     institution's sector for the second preceding award year; 
     exceeds
       ``(ii) the tuition and required fees for the second 
     preceding award year for each undergraduate and graduate 
     student attending the institution who had financial need (as 
     determined under part F); plus
       ``(B) the total amount, if any (but not less than zero), by 
     which--
       ``(i) the total amount for the second preceding award year 
     of non-Federal grant aid provided to meet the financial need 
     of all undergraduate students attending the institution (as 
     determined without regard to financial aid not received under 
     this title); exceeds
       ``(ii) the total amount for the second preceding award 
     year, if any, by which--

       ``(I) the tuition and required fees of each such student 
     with such financial need; exceeds
       ``(II) the average tuition and required fees for the 
     institution's sector.

       ``(2) Ratable reduction.--If the sum of the low tuition 
     incentive amounts of all participating institutions for an 
     award year as determined under paragraph (1) exceeds \1/4\ of 
     the annual loan authority under subsection (b) for such award 
     year, the Secretary shall ratably reduce the low tuition 
     incentive amounts of all participating institutions until the 
     sum of such amounts is equal to the amount that is \1/4\ of 
     the annual loan authority under subsection (b).
       ``(e) Federal Pell Grant and Degree Recipient Amount.--For 
     purposes of subsection (b)(1)(C), the Secretary shall 
     determine the Federal Pell Grant and degree recipient amount 
     for each participating institution for each award year, by 
     calculating for each such institution the ratio of--
       ``(1) the number of students who, during the most recent 
     year for which data are available, obtained an associate's 
     degree or other postsecondary degree from such participating 
     institution and, prior to obtaining such degree, received a 
     Federal Pell Grant for attendance at any institution of 
     higher education; to
       ``(2) the sum of the number of students who, during the 
     most recent year for which data are available, obtained an 
     associate's degree or other postsecondary degree from each 
     participating institution and, prior to obtaining such 
     degree, received a Federal Pell Grant for attendance at any 
     institution of higher education.
       ``(f) Definitions.--As used in this section:
       ``(1) Annual loan authority.--The term `annual loan 
     authority' means the total original principal amount of loans 
     that may be allocated and made available for an award year to 
     make Federal Direct Perkins Loans under section 455A.
       ``(2) Average cost of attendance.--
       ``(A) In general.--The term `average cost of attendance' 
     means the average of the attendance costs for undergraduate 
     students and for graduate and professional students, 
     respectively, for the second preceding award year which shall 
     include--
       ``(i) tuition and required fees determined in accordance 
     with subparagraph (B);
       ``(ii) standard living expenses determined in accordance 
     with subparagraph (C); and
       ``(iii) books and supplies determined in accordance with 
     subparagraph (D).
       ``(B) Tuition and required fees.--The average undergraduate 
     and graduate and professional tuition and required fees 
     described in subparagraph (A)(i) shall be computed on the 
     basis of information reported by the institution to the 
     Secretary, which shall include--

[[Page 21870]]

       ``(i) total revenue received by the institution from 
     undergraduate and graduate and professional students, 
     respectively, for tuition and required fees for the second 
     preceding award year; and
       ``(ii) the institution's full-time equivalent enrollment of 
     undergraduate and graduate and professional students, 
     respectively, for such second preceding award year.
       ``(C) Standard living expenses.--The standard living 
     expense described in subparagraph (A)(ii) is equal to the 
     allowance, determined by an institution, for room and board 
     costs incurred by a student, as computed in accordance with 
     part F for the second preceding award year.
       ``(D) Books and supplies.--The allowance for books and 
     supplies described in subparagraph (A)(iii) is equal to the 
     allowance, determined by an institution, for books, supplies, 
     transportation, and miscellaneous personal expenses, 
     including a reasonable allowance for the documented rental or 
     purchase of a personal computer, as computed in accordance 
     with part F for the second preceding award year.
       ``(3) Average tuition and required fees for the 
     institution's sector.--The term `average tuition and required 
     fees for the institution's sector' shall be determined by the 
     Secretary for each of the categories described in section 
     132(d).
       ``(4) Eligible institution.--The term `eligible 
     institution' means an institution of higher education that 
     participates in the Federal Direct Stafford Loan Program.
       ``(5) Participating institution.--The term `participating 
     institution' means an institution of higher education that 
     has an agreement under section 463(f).
       ``(6) Sector.--The term `sector' means each of the 
     categories described in section 132(d).''.

     SEC. 225. AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION.

       (a) Amendments.--Section 463 (20 U.S.C. 1087cc) is 
     amended--
       (1) in subsection (a)--
       (A) in the heading, by inserting ``for Loans Made Before 
     July 1, 2010'' after ``Agreements'';
       (B) in paragraph (3)(A), by inserting ``before July 1, 
     2010'' after ``students'';
       (C) in paragraph (4), by striking ``thereon--'' and all 
     that follows and inserting ``thereon, if the institution has 
     failed to maintain an acceptable collection record with 
     respect to such loan, as determined by the Secretary in 
     accordance with criteria established by regulation, the 
     Secretary may require the institution to assign such note or 
     agreement to the Secretary, without recompense;''; and
       (D) in paragraph (5), by striking ``and the Secretary shall 
     apportion'' and all that follows through ``in accordance with 
     section 462'' and inserting ``and the Secretary shall return 
     a portion of funds from loan repayments to the institution as 
     specified in section 466(b)'';
       (2) by amending subsection (b) to read as follows:
       ``(b) Administrative Expenses.--An institution that has 
     entered into an agreement under subsection (a) shall be 
     entitled, for each fiscal year during which it services 
     student loans from a student loan fund established under such 
     agreement, to a payment in lieu of reimbursement for its 
     expenses in servicing student loans made before July 1, 2010. 
     Such payment shall be equal to 0.50 percent of the 
     outstanding principal and interest balance of such loans 
     being serviced by the institution as of September 30 of each 
     fiscal year.''; and
       (3) by adding at the end the following:
       ``(f) Contents of Agreements for Loans Made on or After 
     July 1, 2010.--An agreement with any institution of higher 
     education that elects to participate in the Federal Direct 
     Perkins Loan program under section 455A shall provide--
       ``(1) for the establishment and maintenance of a Direct 
     Perkins Loan program at the institution under which the 
     institution shall use loan authority allocated under section 
     462A to make loans to eligible students attending the 
     institution;
       ``(2) that the institution, unless otherwise specified in 
     this subsection, shall operate the program consistent with 
     the requirements of agreements established under section 454;
       ``(3) that the institution will pay matching funds, 
     quarterly, in an amount agreed to by the institution and the 
     Secretary, to an escrow account approved by the Secretary, 
     for the purpose of providing loan benefits to borrowers;
       ``(4) that if the institution fails to meet the 
     requirements of paragraph (3), the Secretary shall suspend or 
     terminate the institution's eligibility to make Federal 
     Direct Perkins Loans under section 455A until such time as 
     the Secretary determines, in accordance with section 498, 
     that the institution has met the requirements of such 
     paragraph; and
       ``(5) that if the institution ceases to be an eligible 
     institution within the meaning of section 435(a) by reason of 
     having a cohort default rate that exceeds the threshold 
     percentage specified paragraph (2) of such section, the 
     Secretary shall suspend or terminate the institution's 
     eligibility to make Federal Direct Perkins Loans under 
     section 455A unless and until the institution would qualify 
     for a resumption of eligible institution status under such 
     section.''.
       (b) Effective Date.--The amendments made by paragraph (2) 
     of subsection (a) shall take effect on October 1, 2010.

     SEC. 226. STUDENT LOAN INFORMATION BY ELIGIBLE INSTITUTIONS.

       Section 463A (20 U.S.C. 1087cc-1) is amended--
       (1) in subsection (a), by striking ``Each institution'' and 
     inserting ``For loans made before July 1, 2010, each 
     institution''; and
       (2) in subsection (b), by striking ``Each institution'' and 
     inserting ``For loans made before July 1, 2010, each 
     institution''.

     SEC. 227. TERMS OF LOANS.

       (a) Section 464 (20 U.S.C. 1087dd) is amended--
       (1) in subsection (a)(1), by striking ``section 463'' and 
     inserting ``section 463(a)'';
       (2) in subsection (b)(1), by inserting ``made before July 
     1, 2010,'' after ``A loan'';
       (3) in subsection (c)--
       (A) in paragraph (1), by inserting ``made before July 1, 
     2010,'' after ``a loan'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), by inserting ``made before July 1, 
     2010,'' after ``any loan''; and
       (ii) in subparagraph (B), by inserting ``made before July 
     1, 2010,'' after ``any loan'';
       (C) in paragraph (3)(B), by inserting ``for a loan made 
     before July 1, 2010,'' after ``during the repayment period'';
       (D) in paragraph (4), by inserting ``before July 1, 2010,'' 
     after ``for a loan made'';
       (E) in paragraph (5), by striking ``The institution'' and 
     inserting ``For loans made before July 1, 2010, the 
     institution''; and
       (F) in paragraph (6), by inserting ``made before July 1, 
     2010,'' after ``of loans'';
       (4) in subsection (d), by inserting ``made before July 1, 
     2010,'' before ``from the student loan fund'';
       (5) in subsection (e), by inserting ``with respect to loans 
     made before July 1, 2010, and'' before ``as documented in 
     accordance with paragraph (2),'';
       (6) by repealing subsection (f);
       (7) in subsection (g)(1), by inserting ``and before July 1, 
     2010,'' after ``January 1, 1986,'';
       (8) in subsection (h)--
       (A) in paragraph (1)(A) by inserting ``before July 1, 
     2010,'' after ``made under this part''; and
       (B) in paragraph (2), by inserting ``before July 1, 2010,'' 
     after ``under this part''; and
       (9) in subsection (j)(1), by inserting ``before July 1, 
     2010,'' after ``under this part''.

     SEC. 228. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS.

       (a) Section 465 (20 U.S.C. 1087ee) is amended--
       (1) in subsection (a), by inserting ``and before July 1, 
     2010,'' after ``June 30, 1972,''; and
       (2) by amending subsection (b) to read as follows:
       ``(b) Reimbursement for Cancellations.--
       ``(1) Assigned loans.--In the case of loans made under this 
     part before July 1, 2010, and that are assigned to the 
     Secretary, the Secretary shall, from amounts repaid each 
     quarter on assigned Perkins Loans made before July 1, 2010, 
     pay to each institution for each quarter an amount equal to--
       ``(A) the aggregate of the amounts of loans from its 
     student loan fund that are canceled pursuant to this section 
     for such quarter, minus
       ``(B) an amount equal to the aggregate of the amounts of 
     any such loans so canceled that were made from Federal 
     capital contributions to its student loan fund.
       ``(2) Retained loans.--In the case of loans made under this 
     part before July 1, 2010, and that are retained by the 
     institution for servicing, the institution shall deduct from 
     loan repayments owed to the Secretary under section 466, an 
     amount equal to--
       ``(A) the aggregate of the amounts of loans from its 
     student loan fund that are canceled pursuant to this section 
     for such quarter, minus
       ``(B) an amount equal to the aggregate of the amounts of 
     any such loans so canceled that were made from Federal 
     capital contributions to its student loan fund.''.
       (b) Section 466 (20 U.S.C. 1087ff) is amended to read as 
     follows:

     ``SEC. 466. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS.

       ``(a) Capital Distribution.--Beginning July 1, 2010, there 
     shall be a capital distribution of the balance of the student 
     loan fund established under this part by each institution of 
     higher education as follows:
       ``(1) For the quarter beginning July 1, 2010, the Secretary 
     shall first be paid, no later than September 30, 2010, an 
     amount that bears the same ratio to the cash balance in such 
     fund at the close of June 30, 2010, as the total amount of 
     the Federal capital contributions to such fund by the 
     Secretary under this part bears to--
       ``(A) the sum of such Federal contributions and the 
     institution's capital contributions to such fund, less
       ``(B) an amount equal to--
       ``(i) the institution's outstanding administrative costs as 
     calculated under section 463(b),
       ``(ii) outstanding charges assessed under section 
     464(c)(1)(H), and
       ``(iii) outstanding loan cancellation costs incurred under 
     section 465.
       ``(2) At the end of each quarter subsequent to the quarter 
     ending September 30, 2010, the Secretary shall first be paid 
     an amount that bears the same ratio to the cash balance in 
     such fund at the close of the preceding quarter, as the total 
     amount of the Federal capital contributions to such fund by 
     the Secretary under this part bears to--
       ``(A) the sum of such Federal contributions and the 
     institution's capital contributions to such fund, less
       ``(B) an amount equal to--
       ``(i) the institution's administrative costs incurred for 
     that quarter as calculated under section 463(b),
       ``(ii) charges assessed for that quarter under section 
     464(c)(1)(H), and

[[Page 21871]]

       ``(iii) loan cancellation costs incurred for that quarter 
     under section 465.
       ``(3)(A) The Secretary shall calculate the amounts due to 
     the Secretary under paragraph (1) (adjusted in accordance 
     with subparagraph (B), as appropriate) and paragraph (2) and 
     shall promptly inform the institution of such calculated 
     amounts.
       ``(B) In the event that, prior to the date of enactment of 
     the Student Aid and Fiscal Responsibility Act of 2009, an 
     institution made a short-term, interest-free loan to the 
     institution's student loan fund established under this part 
     in anticipation of collections or receipt of Federal capital 
     contributions, and the institution demonstrates to the 
     Secretary, on or before June 30, 2010, that such loan will 
     still be outstanding after June 30, 2010, the Secretary shall 
     subtract the amount of such outstanding loan from the cash 
     balance of the institution's student loan fund that is used 
     to calculate the amount due to the Secretary under paragraph 
     (1). An adjustment of an amount due to the Secretary under 
     this subparagraph shall be made by the Secretary on a case-
     by-case basis.
       ``(4) Any remaining balance at the end of a quarter after a 
     payment under paragraph (1) or (2) shall be retained by the 
     institution for use at its discretion. Any balance so 
     retained shall be withdrawn from the student loan fund and 
     shall not be counted in calculating amounts owed to the 
     Secretary for subsequent quarters.
       ``(5) Each institution shall make the quarterly payments to 
     the Secretary described in paragraph (2) until all 
     outstanding Federal Perkins Loans at that institution have 
     been assigned to the Secretary and there are no funds 
     remaining in the institution's student loan fund.
       ``(6) In the event that the institution's administrative 
     costs, charges, and cancellation costs described in paragraph 
     (2) for a quarter exceed the amount owed to the Secretary 
     under paragraphs (1) and (2) for that quarter, no payment 
     shall be due to the Secretary from the institution for that 
     quarter and the Secretary shall pay the institution, from 
     funds realized from the collection of assigned Federal 
     Perkins Loans made before July 1, 2010, an amount that, when 
     combined with the amount retained by the institution under 
     paragraphs (1) and (2), equals the full amount of such 
     administrative costs, charges, and cancellation costs.
       ``(b) Assignment of Outstanding Loans.--Beginning July 1, 
     2010, an institution of higher education may assign all 
     outstanding loans made under this part before July 1, 2010, 
     to the Secretary, consistent with the requirements of section 
     463(a)(5). In collecting loans so assigned, the Secretary 
     shall pay an institution an amount that constitutes the same 
     fraction of such collections as the fraction of the cash 
     balance that the institution retains under subsection (a)(2), 
     but determining such fraction without regard to subparagraph 
     (B)(i) of such subsection.''.

     SEC. 229. IMPLEMENTATION OF NON-TITLE IV REVENUE REQUIREMENT.

       (a) Amendments.--Section 487(d) (20 U.S.C. 1094(d)) is 
     amended--
       (1) in paragraph (1)(E), by striking ``July 1, 2011'' and 
     inserting ``July 1, 2012'';
       (2) in paragraph (1)(F)--
       (A) by redesignating clauses (iii), (iv), and (v) as 
     clauses (iv), (v), and (vi), respectively; and
       (B) by inserting after clause (ii) the following new 
     clause:
       ``(iii) for the period beginning July 1, 2010, and ending 
     July 1, 2012, the amount of funds the institution received 
     from loans disbursed under section 455A;'';.
       (3) in paragraph (2)(A), by striking ``two consecutive'' 
     and inserting ``three consecutive''; and
       (4) in paragraph (2)(B)--
       (A) by striking ``any institutional fiscal year'' and 
     inserting ``two consecutive institutional fiscal years'';
       (B) by striking ``the two institutional fiscal years after 
     the institutional fiscal year'' and inserting ``the 
     institutional fiscal year after the second consecutive 
     institutional fiscal year''; and
       (C) by striking ``two consecutive'' in clause (ii) of such 
     paragraph and inserting ``three consecutive''.
       (b) Temporary Effect.--The amendments made by paragraphs 
     (3) and (4) of subsection (a)--
       (1) shall take effect on the date of enactment of this Act; 
     and
       (2) shall cease to be effective on July 1, 2012.

     SEC. 230. ADMINISTRATIVE EXPENSES.

       Section 489(a) (20 U.S.C. 1096(a)) is amended--
       (1) in the second sentence, by striking ``or under part E 
     of this title''; and
       (2) in the third sentence--
       (A) by inserting ``and'' after ``subpart 3 of part A,''; 
     and
       (B) by striking ``compensation of students,'' and all that 
     follows through the period and inserting ``compensation of 
     students.''.

            TITLE III--MODERNIZATION, RENOVATION, AND REPAIR

             Subtitle A--Elementary and Secondary Education

     SEC. 301. DEFINITIONS.

       In this subtitle:
       (1) The term ``Bureau-funded school'' has the meaning given 
     such term in section 1141 of the Education Amendments of 1978 
     (25 U.S.C. 2021).
       (2) The term ``charter school'' has the meaning given such 
     term in section 5210 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7221i).
       (3) The term ``CHPS Criteria'' means the green building 
     rating program developed by the Collaborative for High 
     Performance Schools.
       (4) The term ``Energy Star'' means the Energy Star program 
     of the United States Department of Energy and the United 
     States Environmental Protection Agency.
       (5) The term ``Green Globes'' means the Green Building 
     Initiative environmental design and rating system referred to 
     as Green Globes.
       (6) The term ``LEED Green Building Rating System'' means 
     the United States Green Building Council Leadership in Energy 
     and Environmental Design green building rating standard 
     referred to as LEED Green Building Rating System.
       (7) The term ``local educational agency''--
       (A) has the meaning given such term in section 9101 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7801);
       (B) includes any public charter school that constitutes a 
     local educational agency under State law; and
       (C) includes the Recovery School District of Louisiana.
       (8) The term ``outlying area''--
       (A) means the United States Virgin Islands, Guam, American 
     Samoa, and the Commonwealth of the Northern Mariana Islands; 
     and
       (B) includes the Republic of Palau.
       (9) The term ``public school facilities'' means existing 
     public elementary or secondary school facilities, including 
     public charter school facilities and other existing 
     facilities planned for adaptive reuse as public charter 
     school facilities.
       (10) The term ``Secretary'' means the Secretary of 
     Education.
       (11) The term ``State'' means each of the 50 States, the 
     District of Columbia, and the Commonwealth of Puerto Rico.

 CHAPTER 1--GRANTS FOR MODERNIZATION, RENOVATION, OR REPAIR OF PUBLIC 
                           SCHOOL FACILITIES

     SEC. 311. PURPOSE.

       Grants under this chapter shall be for the purpose of 
     modernizing, renovating, or repairing public school 
     facilities (including early learning facilities, as 
     appropriate), based on the need of the facilities for such 
     improvements, to ensure that public school facilities are 
     safe, healthy, high-performing, and technologically up-to-
     date.

     SEC. 312. ALLOCATION OF FUNDS.

       (a) Reservation.--
       (1) In general.--From the amount appropriated to carry out 
     this chapter for each fiscal year pursuant to section 345(a), 
     the Secretary shall reserve 2 percent of such amount, 
     consistent with the purpose described in section 311--
       (A) to provide assistance to the outlying areas; and
       (B) for payments to the Secretary of the Interior to 
     provide assistance to Bureau-funded schools.
       (2) Use of reserved funds.--In each fiscal year, the amount 
     reserved under paragraph (1) shall be divided between the 
     uses described in subparagraphs (A) and (B) of such paragraph 
     in the same proportion as the amount reserved under section 
     1121(a) of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 6331(a)) is divided between the uses described in 
     paragraphs (1) and (2) of such section 1121(a) in such fiscal 
     year.
       (3) Distressed areas and natural disasters.--From the 
     amount appropriated to carry out this chapter for each fiscal 
     year pursuant to section 345(a), the Secretary shall reserve 
     5 percent of such amount for grants to--
       (A) local educational agencies serving geographic areas 
     with significant economic distress, to be used consistent 
     with the purpose described in section 311 and the allowable 
     uses of funds described in section 313; and
       (B) local educational agencies serving geographic areas 
     recovering from a natural disaster, to be used consistent 
     with the purpose described in section 321 and the allowable 
     uses of funds described in section 323.
       (b) Allocation to States.--
       (1) State-by-state allocation.--Of the amount appropriated 
     to carry out this chapter for each fiscal year pursuant to 
     section 345(a), and not reserved under subsection (a), each 
     State shall be allocated an amount in proportion to the 
     amount received by all local educational agencies in the 
     State under part A of title I of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6311 et seq.) for the 
     previous fiscal year relative to the total amount received by 
     all local educational agencies in every State under such part 
     for such fiscal year.
       (2) State administration.--A State may reserve up to 1 
     percent of its allocation under paragraph (1) to carry out 
     its responsibilities under this chapter, which include--
       (A) providing technical assistance to local educational 
     agencies;
       (B) developing an online, publicly searchable database that 
     includes an inventory of public school facilities in the 
     State, including for each such facility, its design, 
     condition, modernization, renovation and repair needs, 
     utilization, energy use, and carbon footprint; and
       (C) creating voluntary guidelines for high-performing 
     school buildings, including guidelines concerning the 
     following:
       (i) Site location, storm water management, outdoor 
     surfaces, outdoor lighting, and transportation, including 
     public transit and pedestrian and bicycle accessability.
       (ii) Outdoor water systems, landscaping to minimize water 
     use, including elimination of irrigation systems for 
     landscaping, and indoor water use reduction.

[[Page 21872]]

       (iii) Energy efficiency (including minimum and superior 
     standards, such as for heating, ventilation, and air 
     conditioning systems), use of alternative energy sources, 
     commissioning, and training.
       (iv) Use of durable, sustainable materials and waste 
     reduction.
       (v) Indoor environmental quality, such as day lighting in 
     classrooms, lighting quality, indoor air quality (including 
     with reference to reducing the incidence and effects of 
     asthma and other respiratory illnesses), acoustics, and 
     thermal comfort.
       (vi) Operations and management, such as use of energy-
     efficient equipment, indoor environmental management plan, 
     maintenance plan, and pest management.
       (3) Grants to local educational agencies.--From the amount 
     allocated to a State under paragraph (1), each eligible local 
     educational agency in the State shall receive an amount in 
     proportion to the amount received by such local educational 
     agency under part A of title I of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) for 
     the previous fiscal year relative to the total amount 
     received by all local educational agencies in the State under 
     such part for such fiscal year, except that no local 
     educational agency that received funds under such part for 
     such fiscal year shall receive a grant of less than $5,000 in 
     any fiscal year under this chapter.
       (4) Special rule.--Section 1122(c)(3) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6332(c)(3)) shall 
     not apply to paragraph (1) or (3).
       (c) Special Rules.--
       (1) Distributions by secretary.--The Secretary shall make 
     and distribute the reservations and allocations described in 
     subsections (a) and (b) not later than 120 days after an 
     appropriation of funds for this chapter is made.
       (2) Distributions by states.--A State shall make and 
     distribute the allocations described in subsection (b)(3) 
     within 90 days of receiving such funds from the Secretary.

     SEC. 313. ALLOWABLE USES OF FUNDS.

       A local educational agency receiving a grant under this 
     chapter shall use the grant for modernization, renovation, or 
     repair of public school facilities (including early learning 
     facilities, as appropriate), including--
       (1) repair, replacement, or installation of roofs, 
     including extensive, intensive or semi-intensive green roofs, 
     electrical wiring, water supply and plumbing systems, sewage 
     systems, storm water runoff systems, lighting systems, 
     building envelope, windows, ceilings, flooring, or doors, 
     including security doors;
       (2) repair, replacement, or installation of heating, 
     ventilation, or air conditioning systems, including 
     insulation, and conducting indoor air quality assessments;
       (3) compliance with fire, health, seismic, and safety 
     codes, including professional installation of fire and life 
     safety alarms, and modernizations, renovations, and repairs 
     that ensure that schools are prepared for emergencies, such 
     as improving building infrastructure to accommodate security 
     measures and installing or upgrading technology to ensure 
     that schools are able to respond to emergencies such as acts 
     of terrorism, campus violence, and natural disasters;
       (4) retrofitting necessary to increase the energy 
     efficiency and water efficiency of public school facilities;
       (5) modifications necessary to make facilities accessible 
     in compliance with the Americans with Disabilities Act of 
     1990 (42 U.S.C. 12101 et seq.) and section 504 of the 
     Rehabilitation Act of 1973 (29 U.S.C. 794);
       (6) abatement, removal, or interim controls of asbestos, 
     polychlorinated biphenyls, mold, mildew, lead-based hazards, 
     including lead-based paint hazards, or a proven carcinogen;
       (7) measures designed to reduce or eliminate human exposure 
     to classroom noise and environmental noise pollution;
       (8) modernization, renovation, or repair necessary to 
     reduce the consumption of coal, electricity, land, natural 
     gas, oil, or water;
       (9) installation or upgrading of educational technology 
     infrastructure;
       (10) modernization, renovation, or repair of science and 
     engineering laboratories, libraries, and career and technical 
     education facilities, and improvements to building 
     infrastructure to accommodate bicycle and pedestrian access;
       (11) installation or upgrading of renewable energy 
     generation and heating systems, including solar, 
     photovoltaic, wind, biomass (including wood pellet and woody 
     biomass), waste-to-energy, and solar-thermal and geothermal 
     systems, and for energy audits;
       (12) measures designed to reduce or eliminate human 
     exposure to airborne particles such as dust, sand, and 
     pollens;
       (13) creating greenhouses, gardens (including trees), and 
     other facilities for environmental, scientific, or other 
     educational purposes, or to produce energy savings;
       (14) modernizing, renovating, or repairing physical 
     education facilities for students, including upgrading or 
     installing recreational structures made from post-consumer 
     recovered materials in accordance with the comprehensive 
     procurement guidelines prepared by the Administrator of the 
     Environmental Protection Agency under section 6002(e) of the 
     Solid Waste Disposal Act (42 U.S.C. 6962(e));
       (15) other modernization, renovation, or repair of public 
     school facilities to--
       (A) improve teachers' ability to teach and students' 
     ability to learn;
       (B) ensure the health and safety of students and staff;
       (C) make them more energy efficient; or
       (D) reduce class size; and
       (16) required environmental remediation related to 
     modernization, renovation, or repair described in paragraphs 
     (1) through (15).

     SEC. 314. PRIORITY PROJECTS.

       In selecting a project under section 313, a local 
     educational agency may give priority to projects involving 
     the abatement, removal, or interim controls of asbestos, 
     polychlorinated biphenyls, mold, mildew, lead-based hazards, 
     including lead-based paint hazards, or a proven carcinogen.

 CHAPTER 2--SUPPLEMENTAL GRANTS FOR LOUISIANA, MISSISSIPPI, AND ALABAMA

     SEC. 321. PURPOSE.

       Grants under this chapter shall be for the purpose of 
     modernizing, renovating, repairing, or constructing public 
     school facilities, including, where applicable, early 
     learning facilities, based on the need for such improvements 
     or construction, to ensure that public school facilities are 
     safe, healthy, high-performing, and technologically up-to-
     date.

     SEC. 322. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

       (a) In General.--Of the amount appropriated to carry out 
     this chapter for each fiscal year pursuant to section 345(b), 
     the Secretary shall allocate to local educational agencies in 
     Louisiana, Mississippi, and Alabama an amount equal to the 
     infrastructure damage inflicted on public school facilities 
     in each such district by Hurricane Katrina or Hurricane Rita 
     in 2005 relative to the total of such infrastructure damage 
     so inflicted in all such districts, combined.
       (b) Distribution by Secretary.--The Secretary shall 
     determine and distribute the allocations described in 
     subsection (a) not later than 120 days after an appropriation 
     of funds for this chapter is made.

     SEC. 323. ALLOWABLE USES OF FUNDS.

       A local educational agency receiving a grant under this 
     chapter shall use the grant for one or more of the activities 
     described in section 313, except that an agency receiving a 
     grant under this chapter also may use the grant for the 
     construction of new public school facilities.

                     CHAPTER 3--GENERAL PROVISIONS

     SEC. 331. IMPERMISSIBLE USES OF FUNDS.

       No funds received under this subtitle may be used for--
       (1) payment of maintenance costs, including routine repairs 
     classified as current expenditures under State or local law;
       (2) stadiums or other facilities primarily used for 
     athletic contests or exhibitions or other events for which 
     admission is charged to the general public;
       (3) improvement or construction of facilities the purpose 
     of which is not the education of children, including central 
     office administration or operations or logistical support 
     facilities; or
       (4) purchasing carbon offsets.

     SEC. 332. SUPPLEMENT, NOT SUPPLANT.

       A local educational agency receiving a grant under this 
     subtitle shall use such Federal funds only to supplement and 
     not supplant the amount of funds that would, in the absence 
     of such Federal funds, be available for modernization, 
     renovation, repair, and construction of public school 
     facilities.

     SEC. 333. PROHIBITION REGARDING STATE AID.

       A State shall not take into consideration payments under 
     this subtitle in determining the eligibility of any local 
     educational agency in that State for State aid, or the amount 
     of State aid, with respect to free public education of 
     children.

     SEC. 334. MAINTENANCE OF EFFORT.

       (a) In General.--A local educational agency may receive a 
     grant under this subtitle for any fiscal year only if either 
     the combined fiscal effort per student or the aggregate 
     expenditures of the agency and the State involved with 
     respect to the provision of free public education by the 
     agency for the preceding fiscal year was not less than 90 
     percent of the combined fiscal effort or aggregate 
     expenditures for the second preceding fiscal year.
       (b) Reduction in Case of Failure To Meet Maintenance of 
     Effort Requirement.--
       (1) In general.--The State educational agency shall reduce 
     the amount of a local educational agency's grant in any 
     fiscal year in the exact proportion by which a local 
     educational agency fails to meet the requirement of 
     subsection (a) by falling below 90 percent of both the 
     combined fiscal effort per student and aggregate expenditures 
     (using the measure most favorable to the local agency).
       (2) Special rule.--No such lesser amount shall be used for 
     computing the effort required under subsection (a) for 
     subsequent years.
       (c) Waiver.--The Secretary shall waive the requirements of 
     this section if the Secretary determines that a waiver would 
     be equitable due to--
       (1) exceptional or uncontrollable circumstances, such as a 
     natural disaster; or
       (2) a precipitous decline in the financial resources of the 
     local educational agency.

     SEC. 335. SPECIAL RULE ON CONTRACTING.

       Each local educational agency receiving a grant under this 
     subtitle shall ensure that, if the agency carries out 
     modernization, renovation, repair, or construction through a 
     contract, the process for any such contract ensures the 
     maximum number of qualified bidders, including local, small, 
     minority, and women- and veteran-owned businesses, through 
     full and open competition.

[[Page 21873]]



     SEC. 336. USE OF AMERICAN IRON, STEEL, AND MANUFACTURED 
                   GOODS.

       (a) In General.--None of the funds appropriated or 
     otherwise made available by this subtitle may be used for a 
     project for the modernization, renovation, repair, or 
     construction of a public school facility unless all of the 
     iron, steel, and manufactured goods used in the project are 
     produced in the United States.
       (b) Exceptions.--Subsection (a) shall not apply in any case 
     or category of cases in which the Secretary finds that--
       (1) applying subsection (a) would be inconsistent with the 
     public interest;
       (2) iron, steel, and the relevant manufactured goods are 
     not produced in the United States in sufficient and 
     reasonably available quantities and of a satisfactory 
     quality; or
       (3) inclusion of iron, steel, and manufactured goods 
     produced in the United States will increase the cost of the 
     overall project by more than 25 percent.
       (c) Publication of Justification.--If the Secretary 
     determines that it is necessary to waive the application of 
     subsection (a) based on a finding under subsection (b), the 
     Secretary shall publish in the Federal Register a detailed 
     written justification of the determination.
       (d) Construction.--This section shall be applied in a 
     manner consistent with United States obligations under 
     international agreements.

     SEC. 337. LABOR STANDARDS.

       The grant programs under this subtitle are applicable 
     programs (as that term is defined in section 400 of the 
     General Education Provisions Act (20 U.S.C. 1221)) subject to 
     section 439 of such Act (20 U.S.C. 1232b).

     SEC. 338. CHARTER SCHOOLS.

       (a) In General.--A local educational agency receiving an 
     allocation under this subtitle shall reserve an amount of 
     that allocation for charter schools within its jurisdiction 
     for modernization, renovation, repair, and construction of 
     charter school facilities.
       (b) Determination of Reserved Amount.--The amount to be 
     reserved by a local educational agency under subsection (a) 
     shall be determined based on the combined percentage of 
     students counted under section 1113(a)(5) of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 6313(a)(5)) in 
     the schools of the agency who--
       (1) are enrolled in charter schools; and
       (2) the local educational agency, in consultation with the 
     authorized public chartering agency, expects to be enrolled, 
     during the year with respect to which the reservation is 
     made, in charter schools that are scheduled to commence 
     operation during such year.
       (c) School Share.--Individual charter schools shall receive 
     a share of the amount reserved under subsection (a) based on 
     the need of each school for modernization, renovation, 
     repair, or construction, as determined by the local 
     educational agency in consultation with charter school 
     administrators.
       (d) Excess Funds.--After the consultation described in 
     subsection (c), if the local educational agency determines 
     that the amount of funds reserved under subsection (a) 
     exceeds the modernization, renovation, repair, and 
     construction needs of charter schools within the local 
     educational agency's jurisdiction, the agency may use the 
     excess funds for other public school facility modernization, 
     renovation, repair, or construction consistent with this 
     subtitle and is not required to carry over such funds to the 
     following fiscal year for use for charter schools.

     SEC. 339. GREEN SCHOOLS.

       (a) In General.--Of the funds appropriated for a given 
     fiscal year and made available to a local educational agency 
     to carry out this subtitle, the local educational agency 
     shall use not less than the applicable percentage (described 
     in subsection (b)) of such funds for public school 
     modernization, renovation, repair, or construction that are 
     certified, verified, or consistent with any applicable 
     provisions of--
       (1) the LEED Green Building Rating System;
       (2) Energy Star;
       (3) the CHPS Criteria;
       (4) Green Globes; or
       (5) an equivalent program adopted by the State, or another 
     jurisdiction with authority over the local educational 
     agency, that includes a verifiable method to demonstrate 
     compliance with such program.
       (b) Applicable Percentages.--The applicable percentage 
     described in subsection (a) is--
       (1) for funds appropriated in fiscal year 2010, 50 percent; 
     and
       (2) for funds appropriated in fiscal year 2011, 75 percent.
       (c) Rule of Construction.--Nothing in this section shall be 
     construed to prohibit a local educational agency from using 
     sustainable, domestic hardwood lumber as ascertained through 
     the forest inventory and analysis program of the Forest 
     Service of the Department of Agriculture under the Forest and 
     Rangeland Renewable Resources Research Act of 1978 (16 U.S.C. 
     1641 et seq.) for public school modernization, renovation, 
     repairs, or construction.
       (d) Technical Assistance.--The Secretary, in consultation 
     with the Secretary of Energy and the Administrator of the 
     Environmental Protection Agency, shall provide outreach and 
     technical assistance to States and local educational agencies 
     concerning the best practices in school modernization, 
     renovation, repair, and construction, including those related 
     to student academic achievement, student and staff health, 
     energy efficiency, and environmental protection.

     SEC. 340. REPORTING.

       (a) Reports by Local Educational Agencies.--Local 
     educational agencies receiving a grant under this subtitle 
     shall annually compile a report describing the projects for 
     which such funds were used, including--
       (1) the number and identity of public schools in the 
     agency, including the number of charter schools, and for each 
     school, the total number of students, and the number of 
     students counted under section 1113(a)(5) of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 6313(a)(5));
       (2) the total amount of funds received by the local 
     educational agency under this subtitle, and for each public 
     school in the agency, including each charter school, the 
     amount of such funds expended, and the types of 
     modernization, renovation, repair, or construction projects 
     for which such funds were used;
       (3) the number of students impacted by such projects, 
     including the number of students so impacted who are counted 
     under section 1113(a)(5) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6313(a)(5));
       (4) the number of public schools in the agency with a 
     metro-centric locale code of 41, 42, or 43 as determined by 
     the National Center for Education Statistics and the 
     percentage of funds received by the agency under chapter 1 or 
     chapter 2 of this subtitle that were used for projects at 
     such schools;
       (5) the number of public schools in the agency that are 
     eligible for schoolwide programs under section 1114 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6314) and the percentage of funds received by the agency 
     under chapter 1 or chapter 2 of this subtitle that were used 
     for projects at such schools;
       (6) for each project--
       (A) the cost;
       (B) the standard described in section 339(a) with which the 
     use of the funds complied or, if the use of funds did not 
     comply with a standard described in section 339(a), the 
     reason such funds were not able to be used in compliance with 
     such standards and the agency's efforts to use such funds in 
     an environmentally sound manner; and
       (C) any demonstrable or expected benefits as a result of 
     the project (such as energy savings, improved indoor 
     environmental quality, student and staff health, including 
     the reduction of the incidence and effects of asthma and 
     other respiratory illnesses, and improved climate for 
     teaching and learning); and
       (7) the total number and amount of contracts awarded, and 
     the number and amount of contracts awarded to local, small, 
     minority, women, and veteran-owned businesses.
       (b) Availability of Reports.--A local educational agency 
     shall--
       (1) submit the report described in subsection (a) to the 
     State educational agency, which shall compile such 
     information and report it annually to the Secretary; and
       (2) make the report described in subsection (a) publicly 
     available, including on the agency's website.
       (c) Reports by Secretary.--Not later than March 31 of each 
     fiscal year, the Secretary shall submit to the Committee on 
     Education and Labor of the House of Representatives and the 
     Committee on Health, Education, Labor and Pensions of the 
     Senate, and make available on the Department of Education's 
     website, a report on grants made under this subtitle, 
     including the information from the reports described in 
     subsection (b)(1).

     SEC. 341. SPECIAL RULES.

       Notwithstanding any other provision of this subtitle, none 
     of the funds authorized by this subtitle may be--
       (1) used to employ workers in violation of section 274A of 
     the Immigration and Nationality Act (8 U.S.C. 1324a); or
       (2) distributed to a local educational agency that does not 
     have a policy that requires a criminal background check on 
     all employees of the agency.

     SEC. 342. PROMOTION OF EMPLOYMENT EXPERIENCES.

       The Secretary of Education, in consultation with the 
     Secretary of Labor, shall work with recipients of funds under 
     this subtitle to promote appropriate opportunities to gain 
     employment experience working on modernization, renovation, 
     repair, and construction projects funded under this subtitle 
     for--
       (1) participants in a YouthBuild program (as defined in 
     section 173A of the Workforce Investment Act of 1998 (29 
     U.S.C. 2918a));
       (2) individuals enrolled in the Job Corps program carried 
     out under subtitle C of title I of the Workforce Investment 
     Act of 1998 (29 U.S.C. 2881 et seq.);
       (3) individuals enrolled in a junior or community college 
     (as defined in section 312(f) of the Higher Education Act of 
     1965 (20 U.S.C. 1088(f))) certificate or degree program 
     relating to projects described in section 339(a); and
       (4) participants in preapprenticeship programs that have 
     direct linkages with apprenticeship programs that are 
     registered with the Department of Labor or a State 
     Apprenticeship Agency under the National Apprenticeship Act 
     of 1937 (29 U.S.C. 50 et seq.).

     SEC. 343. ADVISORY COUNCIL ON GREEN, HIGH-PERFORMING PUBLIC 
                   SCHOOL FACILITIES.

       (a) Establishment of Advisory Council.--The Secretary shall 
     establish an advisory council to be known as the ``Advisory 
     Council on Green, High-Performing Public School Facilities'' 
     (in this section referred to as the ``Advisory Council'') 
     which shall be composed of--
       (1) appropriate officials from the Department of Education;
       (2) representatives of the academic, architectural, 
     business, education, engineering, environmental, labor, and 
     scientific communities; and

[[Page 21874]]

       (3) such other representatives as the Secretary deems 
     appropriate.
       (b) Duties of Advisory Council.--
       (1) Advisory duties.--The Advisory Council shall advise the 
     Secretary on the impact of green, high-performing schools, 
     on--
       (A) teaching and learning;
       (B) health;
       (C) energy costs;
       (D) environmental impact; and
       (E) other areas that the Secretary and the Advisory Council 
     deem appropriate.
       (2) Other duties.--The Advisory Council shall assist the 
     Secretary in--
       (A) making recommendations on Federal policies to increase 
     the number of green, high-performing schools;
       (B) identifying Federal policies that are barriers to 
     helping States and local educational agencies make green, 
     high-performing schools;
       (C) providing technical assistance and outreach to States 
     and local educational agencies under section 339(d); and
       (D) providing the Secretary such other assistance as the 
     Secretary deems appropriate.
       (c) Consultation.--In carrying out its duties under 
     subsection (b), the Advisory Council shall consult with the 
     Chair of the Council on Environmental Quality and the heads 
     of appropriate Federal agencies, including the Secretary of 
     Commerce, the Secretary of Energy, the Secretary of Health 
     and Human Services, the Secretary of Labor, the Administrator 
     of the Environmental Protection Agency, and the Administrator 
     of the General Services Administration (through the Office of 
     Federal High-Performance Green Buildings).

     SEC. 344. EDUCATION REGARDING PROJECTS.

       A local educational agency receiving funds under this 
     subtitle may encourage schools at which projects are 
     undertaken with such funds to educate students about the 
     project, including, as appropriate, the functioning of the 
     project and its environmental, energy, sustainability, and 
     other benefits.

     SEC. 345. AVAILABILITY OF FUNDS.

       (a) Chapter 1.--There are authorized to be appropriated, 
     and there are appropriated, to carry out chapter 1 of this 
     subtitle (in addition to any other amounts appropriated to 
     carry out such chapter and out of any money in the Treasury 
     not otherwise appropriated), $2,020,000,000 for each of 
     fiscal years 2010 and 2011.
       (b) Chapter 2.--There are authorized to be appropriated, 
     and there are appropriated, to carry out chapter 2 of this 
     subtitle (in addition to any other amounts appropriated to 
     carry out such chapter and out of any money in the Treasury 
     not otherwise appropriated), $30,000,000 for each of fiscal 
     years 2010 and 2011.
       (c) Prohibition on Earmarks.--None of the funds 
     appropriated under this section may be used for a 
     Congressional earmark as defined in clause 9(d) of rule XXI 
     of the Rules of the House of Representatives.

                      Subtitle B--Higher Education

     SEC. 351. FEDERAL ASSISTANCE FOR COMMUNITY COLLEGE 
                   MODERNIZATION AND CONSTRUCTION.

       (a) In General.--
       (1) Grant program.--From the amounts made available under 
     subsection (i), the Secretary shall award grants to States 
     for the purposes of constructing new community college 
     facilities and modernizing, renovating, and repairing 
     existing community college facilities. Grants awarded under 
     this section shall be used by a State for one or more of the 
     following:
       (A) To reduce financing costs of loans for new 
     construction, modernization, renovation, or repair projects 
     at community colleges (such as paying interest or points on 
     such loans).
       (B) To provide matching funds for a community college 
     capital campaign to attract private donations of funds for 
     new construction, modernization, renovation, or repair 
     projects at the community college.
       (C) To capitalize a revolving loan fund to finance new 
     construction, modernization, renovation, and repair projects 
     at community colleges.
       (2) Allocation.--
       (A) Determination of available amount.--The Secretary shall 
     determine the amount available for allocation to each State 
     by determining the amount equal to the total number of 
     students in the State who are enrolled in community colleges 
     and who are pursuing a degree or certificate that is not a 
     bachelor's, master's, professional, or other advanced degree, 
     relative to the total number of such students in all States, 
     combined.
       (B) Allocation.--The Secretary shall allocate to each State 
     selected by the Secretary to receive a grant under this 
     section an amount equal to the amount determined to be 
     available for allocation to such State under subparagraph 
     (A), less any portion of that amount that is subject to a 
     limitation under paragraph (3).
       (C) Reallocation.--Amounts not allocated under this section 
     to a State because--
       (i) the State did not submit an application under 
     subsection (b);
       (ii) the State submitted an application that the Secretary 
     determined did not meet the requirements of such subsection; 
     or
       (iii) the State is subject to a limitation under paragraph 
     (3) that prevents the State from using a portion of the 
     allocation,
     shall be proportionately reallocated under this paragraph to 
     the States that are not described in clause (i), (ii), or 
     (iii) of this subparagraph.
       (3) Grant amount limitations.--A grant awarded to a State 
     under this section--
       (A) to reduce financing costs of loans for new 
     construction, modernization, renovation, or repair projects 
     at community colleges under paragraph (1)(A) shall be for an 
     amount that is not more than 25 percent of the total 
     principal amount of the loans for which financing costs are 
     being reduced; and
       (B) to provide matching funds for a community college 
     capital campaign under paragraph (1)(B) shall be for an 
     amount that is not more than 25 percent of the total amount 
     of the private donations of funds raised through such 
     campaign over the duration of such campaign, as such duration 
     is determined by the State in the application submitted under 
     subsection (b).
       (4) Supplement, not supplant.--Funds made available under 
     this section shall be used to supplement, and not supplant, 
     other Federal, State, and local funds that would otherwise be 
     expended to construct new community college facilities or 
     modernize, renovate, or repair existing community college 
     facilities.
       (b) Application.--A State that desires to receive a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information and assurances as the Secretary may require. Such 
     application shall include a certification by the State that 
     the funds provided under this section for the construction of 
     new community college facilities and the modernization, 
     renovation, and repair of existing community college 
     facilities will improve instruction at such colleges and will 
     improve the ability of such colleges to educate and train 
     students to meet the workforce needs of employers in the 
     State.
       (c) Use of Funds by Community Colleges.--
       (1) Permissible uses of funds.--Funds made available to 
     community colleges through a loan described in subsection 
     (a)(1)(A), a capital campaign described in subsection 
     (a)(1)(B), or a loan from a revolving loan fund described in 
     subsection (a)(1)(C) shall be used only for the construction, 
     modernization, renovation, or repair of community college 
     facilities that are primarily used for instruction, research, 
     or student housing, which may include any of the following:
       (A) Repair, replacement, or installation of roofs, 
     including extensive, intensive, or semi-intensive green 
     roofs, electrical wiring, water supply and plumbing systems, 
     sewage systems, storm water runoff systems, lighting systems, 
     building envelope, windows, ceilings, flooring, or doors, 
     including security doors.
       (B) Repair, replacement, or installation of heating, 
     ventilation, or air conditioning systems, including 
     insulation, and conducting indoor air quality assessments.
       (C) Compliance with fire, health, seismic, and safety 
     codes, including professional installation of fire and life 
     safety alarms, and modernizations, renovations, and repairs 
     that ensure that the community college's facilities are 
     prepared for emergencies, such as improving building 
     infrastructure to accommodate security measures and 
     installing or upgrading technology to ensure that the 
     community college is able to respond to emergencies such as 
     acts of terrorism, campus violence, and natural disasters.
       (D) Retrofitting necessary to increase the energy 
     efficiency of the community college's facilities.
       (E) Modifications necessary to make facilities accessible 
     in compliance with the Americans with Disabilities Act of 
     1990 (42 U.S.C. 12101 et seq.) and section 504 of the 
     Rehabilitation Act of 1973 (29 U.S.C. 794).
       (F) Abatement, removal, or interim controls of asbestos, 
     polychlorinated biphenyls, mold, mildew, or lead-based 
     hazards, including lead-based paint hazards from the 
     community college's facilities.
       (G) Modernization, renovation, or repair necessary to 
     reduce the consumption of coal, electricity, land, natural 
     gas, oil, or water.
       (H) Modernization, renovation, and repair relating to 
     improving science and engineering laboratories, libraries, or 
     instructional facilities.
       (I) Installation or upgrading of educational technology 
     infrastructure.
       (J) Installation or upgrading of renewable energy 
     generation and heating systems, including solar, 
     photovoltaic, wind, biomass (including wood pellet and woody 
     biomass), waste-to-energy, solar-thermal and geothermal 
     systems, and energy audits.
       (K) Other modernization, renovation, or repair projects 
     that are primarily for instruction, research, or student 
     housing.
       (L) Required environmental remediation related to 
     modernization, renovation, or repair described in 
     subparagraphs (A) through (K).
       (2) Green school requirement.--A community college 
     receiving assistance through a loan described in subsection 
     (a)(1)(A), a capital campaign described in subsection 
     (a)(1)(B), or a loan from a revolving loan fund described in 
     subsection (a)(1)(C) shall use not less than 50 percent of 
     such assistance to carry out projects for construction, 
     modernization, renovation, or repair that are certified, 
     verified, or consistent with the applicable provisions of--
       (A) the LEED Green Building Rating System;
       (B) Energy Star;
       (C) the CHPS Criteria, as applicable;
       (D) Green Globes; or
       (E) an equivalent program adopted by the State or the State 
     higher education agency that includes a verifiable method to 
     demonstrate compliance with such program.
       (3) Prohibited uses of funds.--
       (A) In general.--No funds awarded under this section may be 
     used for--
       (i) payment of maintenance costs;
       (ii) construction, modernization, renovation, or repair of 
     stadiums or other facilities primarily used for athletic 
     contests or exhibitions or other events for which admission 
     is charged to the general public; or

[[Page 21875]]

       (iii) construction, modernization, renovation, or repair of 
     facilities--

       (I) used for sectarian instruction, religious worship, or a 
     school or department of divinity; or
       (II) in which a substantial portion of the functions of the 
     facilities are subsumed in a religious mission.

       (B) Four-year institutions.--No funds awarded to a four-
     year public institution of higher education under this 
     section may be used for any facility, service, or program of 
     the institution that is not available to students who are 
     pursuing a degree or certificate that is not a bachelor's, 
     master's, professional, or other advanced degree.
       (d) Application of GEPA.--The grant program authorized in 
     this section is an applicable program (as that term is 
     defined in section 400 of the General Education Provisions 
     Act (20 U.S.C. 1221)) subject to section 439 of such Act (20 
     U.S.C. 1232b). The Secretary shall, notwithstanding section 
     437 of such Act (20 U.S.C. 1232) and section 553 of title 5, 
     United States Code, establish such program rules as may be 
     necessary to implement such grant program by notice in the 
     Federal Register.
       (e) Concurrent Funding.--Funds made available under this 
     section shall not be used to assist any community college 
     that receives funding for the construction, modernization, 
     renovation, and repair of facilities under any other program 
     under this Act, the Higher Education Act of 1965, or the 
     American Recovery and Reinvestment Act of 2009.
       (f) Reports by the States.--Each State that receives a 
     grant under this section shall, not later than September 30, 
     2012, and annually thereafter for each fiscal year in which 
     the State expends funds received under this section, submit 
     to the Secretary a report that includes--
       (1) a description the projects for which the grant funding 
     was, or will be, used;
       (2) a list of the community colleges that have received, or 
     will receive, assistance from the grant through a loan 
     described in subsection (a)(1)(A), a capital campaign 
     described in subsection (a)(1)(B), or a loan from a revolving 
     loan fund described in subsection (a)(1)(C); and
       (3) a description of the amount and nature of the 
     assistance provided to each such college.
       (g) Report by the Secretary.--The Secretary shall submit to 
     the authorizing committees (as defined in section 103 of the 
     Higher Education Act of 1965) an annual report on the grants 
     made under this section, including the information described 
     in subsection (f).
       (h) Definitions.--
       (1) Community college.--As used in this section, the term 
     ``community college'' means--
       (A) a junior or community college, as such term is defined 
     in section 312(f) of the Higher Education Act of 1965 (20 
     U.S.C. 1085(f)); or
       (B) a four-year public institution of higher education (as 
     defined in section 101 of the Higher Education Act of 1965) 
     that awards a significant number of degrees and certificates 
     that are not--
       (i) bachelor's degrees (or an equivalent); or
       (ii) master's, professional, or other advanced degrees.
       (2) CHPS criteria.--The term ``CHPS Criteria'' means the 
     green building rating program developed by the Collaborative 
     for High Performance Schools.
       (3) Energy star.--The term ``Energy Star'' means the Energy 
     Star program of the United States Department of Energy and 
     the United States Environmental Protection Agency.
       (4) Green globes.--The term ``Green Globes'' means the 
     Green Building Initiative environmental design and rating 
     system referred to as Green Globes.
       (5) Leed green building rating system.--The term ``LEED 
     Green Building Rating System'' means the United States Green 
     Building Council Leadership in Energy and Environmental 
     Design green building rating standard referred to as the LEED 
     Green Building Rating System.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.
       (7) State.--The term ``State'' has the meaning given such 
     term in section 103 of the Higher Education Act of 1965 (20 
     U.S.C. 1003).
       (i) Availability of Funds.--There are authorized to be 
     appropriated, and there are appropriated, to carry out this 
     section (in addition to any other amounts appropriated to 
     carry out this section and out of any money in the Treasury 
     not otherwise appropriated), $2,500,000,000 for fiscal year 
     2011, which shall remain available until expended.

                TITLE IV--EARLY LEARNING CHALLENGE FUND

     SEC. 401. PURPOSE.

       The purpose of this title is to provide grants on a 
     competitive basis to States for the following:
       (1) To promote standards reform of State early learning 
     programs serving children from birth through age 5 in order 
     to support the healthy development and improve the school 
     readiness outcomes of young children.
       (2) To establish a high standard of quality in early 
     learning programs that integrates appropriate early learning 
     and development standards across early learning settings.
       (3) To fund and implement quality initiatives that improve 
     the skills and effectiveness of early learning providers, and 
     improve the quality of existing early learning programs, in 
     order to increase the number of disadvantaged children who 
     participate in comprehensive and high-quality early learning 
     programs.
       (4) To ensure that a greater number of disadvantaged 
     children enter kindergarten with the cognitive, social, 
     emotional, and physical skills and abilities needed to be 
     successful in school.
       (5) To increase parents' abilities to access comprehensive 
     and high quality early learning programs across settings for 
     their children.

     SEC. 402. PROGRAMS AUTHORIZED.

       (a) Quality Pathways Grants.--The Secretary shall use funds 
     made available to carry out this title for a fiscal year to 
     award grants on a competitive basis to States in accordance 
     with section 403.
       (b) Development Grants.--The Secretary shall use funds made 
     available to carry out this title for a fiscal year to award 
     grants in accordance with section 404 on a competitive basis 
     to States that demonstrate a commitment to establishing a 
     system of early learning that will include the components 
     described in section 403(c)(3) but are not--
       (1) eligible to be awarded a grant under subsection (a); or
       (2) are not awarded such a grant after application.
       (c) Reservations of Federal Funds.--
       (1) Research, evaluation, and administration.--From the 
     amount made available to carry out this title for a fiscal 
     year, the Secretary--
       (A) shall reserve up to 2 percent jointly to administer 
     this title with the Secretary of Health and Human Services; 
     and
       (B) shall reserve up to 3 percent to carry out activities 
     under section 405.
       (2) Tribal school readiness planning demonstration.--After 
     making the reservations under paragraph (1), the Secretary 
     shall reserve 0.25 percent for a competitive grant program 
     for Indian tribes to develop and implement school readiness 
     plans that--
       (A) are coordinated with local educational agencies serving 
     children who are members of the tribe; and
       (B) include American Indian and Alaska Native Head Start 
     and Early Head Start programs, tribal child care programs, 
     Indian Health Service programs, and other tribal programs 
     serving children.
       (3) Quality pathways grants.--
       (A) In general.--From the amount made available to carry 
     out this title for a fiscal year and not reserved under 
     paragraph (1) or (2), the Secretary shall reserve a percent 
     (which shall be not greater than 65 percent for fiscal years 
     2010 through 2012 and not greater than 85 percent for fiscal 
     year 2013 and each succeeding fiscal year) determined under 
     subparagraph (B) to carry out subsection (a).
       (B) Determination of amount.--In determining the amount to 
     reserve under subparagraph (A), the Secretary, consistent 
     with section 403(e), shall take into account the following:
       (i) The total number of States determined by the Secretary 
     to qualify for receipt of a grant under this title for the 
     year.
       (ii) The number of children under age 5 from low-income 
     families in each State with an approved application under 
     section 403 for the year.
       (C) Reallocation.--For fiscal year 2013 and subsequent 
     fiscal years, the Secretary may reallocate funds allocated 
     for development grants under subsection (b) for the purpose 
     of providing additional grants under subsection (a), if the 
     Secretary determines that there is an insufficient number of 
     applications that meet the requirements for a grant under 
     subsection (b).
       (d) State Applications.--In applying for a grant under this 
     title, a State--
       (1) shall designate a State-level entity for administration 
     of the grant;
       (2) shall coordinate proposed activities with the State 
     Advisory Council on Early Childhood Education and Care 
     (established pursuant to section 642B(b)(1)(A) of the Head 
     Start Act (42 U.S.C. 9837b(b)(1)(A))) and shall incorporate 
     plans and recommendations from such Council in the 
     application, where applicable; and
       (3) otherwise shall submit the application to the Secretary 
     at such time, in such manner, and containing such information 
     as the Secretary may reasonably require.
       (e) Priority in Awarding Grants.--In awarding grants under 
     this title, the Secretary shall give priority to States--
       (1) whose applications contain assurances that the State 
     will use, in part, funds reserved under section 658G of the 
     Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
     9858e) for activities described in section 403(f);
       (2) that will commit to dedicating a significant increase, 
     in comparison to recent fiscal years, in State expenditures 
     on early learning programs and services; and
       (3) that demonstrate efforts to build public-private 
     partnerships designed to accomplish the purposes of this 
     title.
       (f) Maintenance of Effort.--
       (1) In general.--With respect to each period for which a 
     State is awarded a grant under this title, the aggregate 
     expenditures by the State and its political subdivisions on 
     early learning programs and services shall be not less than 
     the level of the expenditures for such programs and services 
     by the State and its political subdivisions for fiscal year 
     2006.
       (2) State expenditures.--For purposes of paragraph (1), 
     expenditures by the State on early learning programs and 
     services shall include, at a minimum, the following:
       (A) State matching and maintenance of effort funds for the 
     Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
     9858 et seq.).
       (B) State matching funds for the State Advisory Council on 
     Early Childhood Education and Care (established pursuant to 
     section 642B(b)(1)(A) of the Head Start Act (42 U.S.C. 
     9837b(b)(1)(A))).

[[Page 21876]]

       (C) State expenditures on public pre-kindergarten, Head 
     Start (including Early Head Start), and other State early 
     learning programs and services dedicated to children 
     (including State expenditures under part C of the Individuals 
     with Disabilities Education Act (20 U.S.C. 1431 et seq.)).
       (g) Prohibitions on Use of Funds.--Funds under this title 
     may not be used for any of the following:
       (1) Assessments that provide rewards or sanctions for 
     individual children or teachers.
       (2) A single assessment used as the primary or sole method 
     for assessing program effectiveness.
       (3) Evaluating children other than for--
       (A) improving instruction or classroom environment;
       (B) targeting professional development;
       (C) determining the need for health, mental health, 
     disability, or family support services;
       (D) informing the quality improvement process at the State 
     level;
       (E) program evaluation for the purposes of program 
     improvement and parent information; or
       (F) research conducted as part of the national evaluation 
     required by section 405(2).
       (h) Federal Administration.--
       (1) In general.--With respect to this title, the Secretary 
     shall bear responsibility for obligating and disbursing funds 
     and ensuring compliance with applicable laws and 
     administrative requirements, subject to paragraph (2).
       (2) Interagency agreement.--The Secretary of Education and 
     the Secretary of Health and Human Services shall jointly 
     administer this title on such terms as such secretaries shall 
     set forth in an interagency agreement.

     SEC. 403. QUALITY PATHWAYS GRANTS.

       (a) Grant Period.--Grants under section 402(a)--
       (1) may be awarded for a period not to exceed 5 years; and
       (2) may be renewed, subject to approval by the Secretary, 
     and based on the State's progress in--
       (A) increasing the percentage of disadvantaged children in 
     each age group (infants, toddlers, and preschoolers) who 
     participate in high-quality early learning programs;
       (B) increasing the number of high-quality early learning 
     programs in low-income communities;
       (C) implementing an early learning system that includes the 
     components described in subsection (c)(3); and
       (D) incorporating the findings and recommendations reported 
     by the commission established under section 405(1) into the 
     State system of early learning.
       (b) Matching Requirement.--
       (1) In general.--Subject to subsection (g), to be eligible 
     to receive a grant under section 402(a), a State shall 
     contribute to the activities assisted under the grant non-
     Federal matching funds in an amount equal to not less than 
     the applicable percent of the amount of the grant.
       (2) Applicable percent.--For purposes of paragraph (1), the 
     applicable percent means--
       (A) 10 percent in the first fiscal year of the grant;
       (B) 10 percent in the second fiscal year of the grant;
       (C) 15 percent in the third fiscal year of the grant; and
       (D) 20 percent in the fourth fiscal year of the grant and 
     subsequent fiscal years.
       (3) Non-federal funds.--A State may use the following to 
     satisfy the requirement of paragraph (1):
       (A) Cash.
       (B) In-kind contributions for the acquisition, 
     construction, or improvement of early learning program 
     facilities serving disadvantaged children.
       (C) Technical assistance related to subparagraph (B).
       (4) Private contributions.--Private contributions made as 
     part of public-private partnerships to increase the number of 
     low-income children in high-quality early learning programs 
     in a State may be used by the State to satisfy the 
     requirement of paragraph (1).
       (5) Financial hardship waiver.--The Secretary may waive or 
     reduce the non-Federal share of a State that has submitted an 
     application for a grant under section 402(a) if the State 
     demonstrates a need for such waiver or reduction due to 
     extreme financial hardship, as defined by the Secretary by 
     regulation.
       (c) State Applications.--In order to be considered for a 
     grant under section 402(a), a State's application under 
     section 402(d) shall include the following:
       (1) A description of how the State will use the grant to 
     implement quality initiatives to improve early learning 
     programs serving disadvantaged children from birth to age 5 
     to lead to a greater percentage of such children 
     participating in higher quality early learning programs.
       (2) A description of the goals and benchmarks the State 
     will establish to lead to a greater percentage of 
     disadvantaged children participating in higher quality early 
     learning programs to improve school readiness outcomes, 
     including an established baseline of the number of 
     disadvantaged children in high-quality early learning 
     programs.
       (3) A description of how the State will implement a 
     governance structure and a system of early learning programs 
     and services that includes the following components:
       (A) Not later than 12 months after receiving notice of an 
     award of the grant, complete State early learning and 
     development standards that include social and emotional, 
     cognitive, and physical development domains, and approaches 
     to learning that are developmentally appropriate (including 
     culturally and linguistically appropriate) for all children.
       (B) A process to ensure that State early learning and 
     development standards are integrated into the instructional 
     and programmatic practices of early learning programs and 
     services, including services provided to children under 
     section 619 and part C of the Individuals with Disabilities 
     Education Act (20 U.S.C. 1419, 1431 et seq.).
       (C) A program rating system that builds on licensing 
     requirements, as appropriate, and other State regulatory 
     standards and that--
       (i) is designed to improve quality and effectiveness across 
     different types of early learning settings;
       (ii) integrates evidence-based program quality standards 
     that reflect standard levels of quality and has progressively 
     higher levels of program quality;
       (iii) integrates the State's early learning and development 
     standards for the purpose of improving instructional and 
     programmatic practices;
       (iv) addresses quality and effective inclusion of children 
     with disabilities or developmental delays across different 
     types of early learning settings;
       (v) addresses staff qualifications and professional 
     development;
       (vi) provides financial incentives and other supports to 
     help programs meet and sustain higher levels of quality;
       (vii) includes mechanisms for evaluating how programs are 
     meeting those standards and progressively higher levels of 
     quality; and
       (viii) includes a mechanism for public awareness and 
     understanding of the program rating system, including rating 
     levels of individual programs.
       (D) A system of program review and monitoring that is 
     designed to rate providers using the system described in 
     subparagraph (C) and to assess and improve programmatic 
     practices, instructional practices, and classroom 
     environment.
       (E) A process to support early learning programs 
     integrating instructional and programmatic practices that--
       (i) include developmentally appropriate (including 
     culturally and linguistically appropriate), ongoing, 
     classroom-based instructional assessments for each domain of 
     child development and learning (including social and 
     emotional, cognitive, and physical development domains and 
     approaches to learning) to guide and improve instructional 
     practice, professional development of staff, and services; 
     and
       (ii) are aligned with the curricula used in the early 
     learning program and with the State early learning and 
     development standards or the Head Start Child Outcomes 
     Framework (as described in the Head Start Act), as 
     applicable.
       (F) Minimum preservice early childhood development and 
     education training requirements for providers in early 
     learning programs.
       (G) A comprehensive plan for supporting the professional 
     preparation and the ongoing professional development of an 
     effective, well-compensated early learning workforce, which 
     plan includes training and education that is sustained, 
     intensive, and classroom-focused and leads toward a 
     credential or degree and is tied to improved compensation.
       (H) An outreach strategy to promote understanding by 
     parents and families of--
       (i) how to support their child's early development and 
     learning;
       (ii) the State's program rating system, as described in 
     subparagraph (C); and
       (iii) the rating of the program in which their child is 
     enrolled.
       (I) A coordinated system to facilitate screening, referral, 
     and provision of services related to health, mental health, 
     disability, and family support for children participating in 
     early learning programs.
       (J) A process for evaluating school readiness in children 
     that reflects all of the major domains of development, and 
     that is used to guide practice and improve early learning 
     programs.
       (K) A coordinated data infrastructure that facilitates--
       (i) uniform data collection about the quality of early 
     learning programs, essential information about the children 
     and families that participate in such programs, and the 
     qualifications and compensation of the early learning 
     workforce in such programs; and
       (ii) alignment and interoperability between the data system 
     for early learning programs for children and data systems for 
     elementary and secondary education.
       (4) A description of how the funds provided under the grant 
     will be targeted to prioritize increasing the number and 
     percentage of low-income children in high-quality early 
     learning programs, including children--
       (A) in each age group (infants, toddlers, and 
     preschoolers);
       (B) with developmental delays and disabilities;
       (C) with limited English proficiency; and
       (D) living in rural areas.
       (5) An assurance that the grant will be used to improve the 
     quality of early learning programs across a range of types of 
     settings and providers of such programs.
       (6) A description of the steps the State will take to make 
     progress toward including all center-based child care 
     programs, family child care programs, State-funded 
     prekindergarten, Head Start programs, and other early 
     learning programs, such as those funded under title I of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6301 et seq.) or receiving funds

[[Page 21877]]

     under section 619 or part C of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1419, 1431 et seq.) in 
     the State program rating system described in paragraph 
     (3)(C).
       (7) An assurance that the State, not later than 18 months 
     after receiving notice of an award of the grant, will conduct 
     an analysis of the alignment of the State's early learning 
     and development standards with--
       (A) appropriate academic content standards for grades 
     kindergarten through 3; and
       (B) elements of program quality standards for early 
     learning programs.
       (8) An assurance that the grant will be used only to 
     supplement, and not to supplant, Federal, State, and local 
     funds otherwise available to support existing early learning 
     programs and services.
       (9) A description of any disparity by age group (infants, 
     toddlers, and preschoolers) of available high-quality early 
     learning programs in low-income communities and the steps the 
     State will take to decrease such disparity, if applicable.
       (10) A description of how the State early learning and 
     development standards will address the needs of children with 
     limited English proficiency, including by incorporating 
     benchmarks related to English language development.
       (11) A description of how the State's professional 
     development plan will prepare the early learning workforce to 
     support the early learning needs of children with limited 
     English proficiency.
       (12) A description of how the State will improve 
     interagency collaboration and coordinate the purposes of this 
     title with the activities funded under--
       (A) section 658G of the Child Care and Development Block 
     Grant Act of 1990 (42 U.S.C. 9858e);
       (B) section 619 and part C of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1419, 1431 et seq.);
       (C) title I of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 6301 et seq.);
       (D) State-funded pre-kindergarten programs (where 
     applicable);
       (E) Head Start programs; and
       (F) other early childhood programs and services.
       (13) A description of how the State's early learning 
     policies, including child care policies, facilitate access to 
     high-quality early learning programs for children from low-
     income families.
       (14) An assurance that the State will continue to 
     participate in part C of the Individuals with Disabilities 
     Education Act (20 U.S.C. 1431 et seq.) for the duration of 
     the grant.
       (d) Criteria Used in Awarding Grants.--In awarding grants 
     under section 402(a), the Secretary shall evaluate the 
     applications, and award grants under such section on a 
     competitive basis, based on--
       (1) the quality of the application submitted pursuant to 
     section 402(d);
       (2) the priority factors described in section 402(e);
       (3) evidence of significant progress in establishing a 
     system of early learning for children that includes the 
     components described in subsection (c)(3); and
       (4) the State's capacity to fully complete implementation 
     of such a system.
       (e) Criterion Used in Determining Amount of Award.--In 
     determining the amount to award a State under section 402(a), 
     the Secretary shall take into account--
       (1) the proportion of children under age 5 from low-income 
     families in the State relative to such proportion in other 
     States; and
       (2) the State plan and capacity to implement the criteria 
     described in paragraphs (3) and (4) of subsection (d).
       (f) State Uses of Funds.--
       (1) In general.--A State receiving a grant under section 
     402(a) shall use the grant as follows:
       (A) Not less than 65 percent of the grant amount shall be 
     used for two or more of the following activities to improve 
     the quality of early learning programs serving disadvantaged 
     children:
       (i) Initiatives that improve the credentials of early 
     learning providers and are tied to increased compensation.
       (ii) Initiatives that help early learning programs meet and 
     sustain higher program quality standards, such as--

       (I) improving the ratio of early learning provider to 
     children in early learning settings;
       (II) reducing group size;
       (III) improving the qualifications of early learning 
     providers; and
       (IV) supporting effective education and training for early 
     learning providers.

       (iii) Implementing classroom observation assessments and 
     data-driven decisions (which may include implementation of a 
     research-based prevention and intervention framework designed 
     to build social competence and prevent challenging behaviors) 
     tied to activities that improve instructional practices, 
     programmatic practices, or classroom environment and promote 
     school readiness.
       (iv) Providing financial incentives to early learning 
     programs--

       (I) for undertaking quality improvements that promote 
     healthy development and school readiness; and
       (II) maintaining quality improvements that promote healthy 
     development and school readiness.

       (v) Integrating State early learning and development 
     standards into instructional and programmatic practices in 
     early learning programs.
       (vi) Providing high-quality, sustained, intensive, and 
     classroom-focused professional development that improves the 
     knowledge and skills of early learning providers, including 
     professional development related to meeting the needs of 
     diverse populations.
       (vii) Building the capacity of early learning programs and 
     communities to promote the understanding of parents and 
     families of the State's early learning system and the rating 
     of the program in which their child is enrolled and to 
     encourage the active involvement and engagement of parents 
     and families in the learning and development of their 
     children.
       (viii) Building the capacity of early learning programs and 
     communities to facilitate screening, referral, and provision 
     of services related to health, mental health, disability, and 
     family support for children participating in early learning 
     programs.
       (ix) Other innovative activities, proposed by the State and 
     approved in advance by the Secretary that are--

       (I) based on successful practices;
       (II) designed to improve the quality of early learning 
     programs and services; and
       (III) advance the system components described in subsection 
     (c)(3).

       (B) The remainder of the grant amount may be used for one 
     or more of the following:
       (i) Implementation or enhancement of the State's data 
     system described in subsection (c)(3)(K), including 
     interoperability across agencies serving children, and unique 
     child and program identifiers.
       (ii) Enhancement of the State's oversight system for early 
     learning programs, including the implementation of a program 
     rating system.
       (iii) The development and implementation of measures of 
     school readiness of children that reflect all of the major 
     domains of child development and that inform the quality 
     improvement process.
       (2) Priority.--A State receiving a grant under section 
     402(a) shall use the grant so as to prioritize improving the 
     quality of early learning programs serving children from low-
     income families.
       (g) Special Rule.--
       (1) In general.--Beginning with the second fiscal year of a 
     grant under section 402(a), a State with respect to which the 
     Secretary certifies that the State has made sufficient 
     progress in implementing the requirements of the grant may 
     apply to the Secretary to reserve up to 25 percent of the 
     amount of the grant to expand access for children from low-
     income families to the highest quality early learning 
     programs that offer full-day services, except that the State 
     must agree to contribute for such purpose non-Federal 
     matching funds in an amount equal to not less than 20 percent 
     of the amount reserved under this subsection. One-half of 
     such non-Federal matching funds may be provided by a private 
     entity.
       (2) Non-federal funds.--A State may use the following to 
     satisfy the matching requirement of paragraph (1):
       (A) Cash.
       (B) In-kind contributions for the acquisition, 
     construction, or improvement of early learning program 
     facilities serving disadvantaged children.
       (C) Technical assistance related to subparagraph (B).
       (3) Financial hardship waiver.--The Secretary may waive or 
     reduce the non-Federal share of a State under paragraph (1) 
     if the State demonstrates a need for such waiver or reduction 
     due to extreme financial hardship, as defined by the 
     Secretary by regulation.
       (h) Improvement Plan.--If the Secretary determines that a 
     State receiving a grant under section 402(a) is encountering 
     barriers to reaching goals described in subsection (c)(2), 
     the State shall develop a plan for improvement in 
     consultation with, and subject to approval by, the Secretary.

     SEC. 404. DEVELOPMENT GRANTS.

       (a) Grant Period.--Grants under section 402(b) may be 
     awarded for a period not to exceed 3 years, and may not be 
     renewed.
       (b) State Uses of Funds.--
       (1) In general.--A State receiving a grant under section 
     402(b) shall use the grant to undertake activities to develop 
     the early learning system components described in section 
     403(c)(3) and that will allow a State to become eligible and 
     competitive for a grant described in section 402(a).
       (2) Priority.--A State receiving a grant under section 
     402(b) shall use the grant so as to prioritize improving the 
     quality of early learning programs serving low-income 
     children.
       (c) Matching Requirement.--
       (1) In general.--To be eligible to receive a grant under 
     section 402(b), a State shall contribute to the activities 
     assisted under the grant non-Federal matching funds in an 
     amount equal to not less than the applicable percent of the 
     amount of the grant.
       (2) Applicable percent.--For purposes of paragraph (1), the 
     applicable percent means--
       (A) 20 percent in the first fiscal year of the grant;
       (B) 25 percent in the second fiscal year of the grant; and
       (C) 30 percent in the third fiscal year of the grant.
       (3) Non-federal funds.--A State may use the following to 
     satisfy the requirement of paragraph (1):
       (A) Cash.
       (B) In-kind contributions for the acquisition, 
     construction, or improvement of early learning program 
     facilities serving disadvantaged children.

[[Page 21878]]

       (C) Technical assistance related to subparagraph (B).
       (4) Private contributions.--Private contributions made as 
     part of public-private partnerships to increase the number of 
     low-income children in high-quality early learning programs 
     in a State may be used by the State to satisfy the 
     requirement of paragraph (1).
       (5) Financial hardship waiver.--The Secretary may waive or 
     reduce the non-Federal share of a State that has submitted an 
     application for a grant under section 402(b) if the State 
     demonstrates a need for such waiver or reduction due to 
     extreme financial hardship, as defined by the Secretary by 
     regulation.

     SEC. 405. RESEARCH AND EVALUATION.

       From funds reserved under section 402(c)(1), the Secretary 
     of Education and the Secretary of Health and Human Services, 
     acting jointly, shall carry out the following activities:
       (1) Establishing a national commission whose duties shall 
     include--
       (A) reviewing the status of State and Federal early 
     learning program quality standards and early learning and 
     development standards;
       (B) recommending benchmarks for program quality standards 
     and early learning and development standards, including 
     taking into consideration the school readiness needs of 
     children with limited English proficiency; and
       (C) reporting to the Secretaries of Education and Health 
     and Human Services not later than 2 years after the date of 
     the enactment of this Act on the commission's findings and 
     recommendations.
       (2) Conducting a national evaluation of the grants made 
     under this title through the Institute of Education Science 
     in collaboration with the appropriate research divisions 
     within the Department of Health and Human Services.
       (3) Supporting a research collaborative among the Institute 
     of Education Sciences, the National Institute of Child Health 
     and Human Development, the Office of Planning, Research, and 
     Evaluation within the Administration for Children and 
     Families in the Department of Health and Human Services, and, 
     as appropriate, other Federal entities to support research on 
     early learning that can inform improved State and other 
     standards and licensing requirements and improved child 
     outcomes, which collaborative shall--
       (A) biennially prepare and publish for public comment a 
     detailed research plan;
       (B) support early learning research activities that could 
     include determining--
       (i) the characteristics of early learning programs that 
     produce positive developmental outcomes for children;
       (ii) the effects of program quality standards on child 
     outcomes;
       (iii) the relationships between specific interventions and 
     types of child and family outcomes;
       (iv) the effectiveness of early learning provider training 
     in raising program quality and improving child outcomes;
       (v) the effectiveness of professional development 
     strategies in raising program quality and improving child 
     outcomes; and
       (vi) how to improve the school readiness outcomes of 
     children with limited English proficiency, special needs, and 
     homeless children, including evaluation of professional 
     development programs for working with such children; and
       (C) disseminate relevant research findings and best 
     practices.
       (4) Evaluating barriers to improving the quality of early 
     learning programs serving low-income children, including 
     evaluating barriers to successful interagency collaboration 
     and coordination, by conducting a review of the statewide 
     strategic reports developed by the State Advisory Councils on 
     Early Care and Education and other relevant reports, 
     reporting the findings of such review to Congress, and 
     disseminating relevant research findings and best practices.

     SEC. 406. REPORTING REQUIREMENTS.

       (a) Reports to Congress.--For each year in which funding is 
     provided under this title, the Secretary shall submit an 
     annual report to the Committee on Education and Labor of the 
     House of Representatives and the Committee on Health, 
     Education, Labor and Pensions of the Senate on the activities 
     carried out under this title, including, at a minimum, 
     information on the following:
       (1) The activities undertaken by States to increase the 
     availability of high-quality early learning programs.
       (2) The number of children in high-quality early learning 
     programs, and the change from the prior year, disaggregated 
     by State, age, and race.
       (3) The number of early learning providers enrolled, with 
     assistance from funds under this title, in a program to 
     obtain a credential or degree in early childhood education 
     and the settings in which such providers work.
       (4) A summary of State progress in implementing a system of 
     early learning with the components described in section 
     403(c)(3).
       (5) A summary of the research activities being conducted 
     under section 405 and the findings of such research.
       (b) Reports to Secretary.--Each State that receives a grant 
     under this title shall submit to the Secretary an annual 
     report that includes, at a minimum, information on the 
     activities carried out by the State under this title, 
     including the following:
       (1) The progress on fully implementing and integrating into 
     a system of early learning each of the components described 
     in section 403(c)(3).
       (2) The State's progress in meeting its goals for 
     increasing the number of disadvantaged children participating 
     in high-quality early learning programs, disaggregated by 
     child age.
       (3) The number and percentage of disadvantaged children 
     participating in early learning programs at each level of 
     quality, disaggregated by race, family income, child age, 
     disability, and limited English proficiency status.
       (4) The number of providers participating in the State 
     quality rating system, disaggregated by setting, rating, and 
     the number of high-quality providers available in low-income 
     communities.
       (5) Information on how the funds provided under this title 
     were used to increase the availability of high-quality early 
     learning programs for each age group, disaggregated by race 
     and limited English
     ficient status, to the maximum extent practicable.
       (6) Information on professional development and training 
     expenditures, including--
       (A) the number of early learning providers engaged in such 
     activities; and
       (B) the number of early learning providers enrolled in 
     programs to obtain a credential or degree in early childhood 
     education, disaggregated by the type of credential and 
     degree.
       (7) The change in the number and percentage of early 
     learning providers with appropriate credentials or degrees in 
     early childhood education, including the change in 
     compensation given to such providers, in comparison to the 
     prior fiscal year, disaggregated by early learning setting 
     and the type of credential or degree.
       (8) In the case of a State receiving a grant under section 
     402(a), the percentage of children receiving assistance under 
     the Child Care and Development Block Grant Act of 1990 (42 
     U.S.C. 9858 et seq.) who participate in the highest quality 
     early learning programs, disaggregated by program setting and 
     child age.
       (9) Barriers to expanding access to high-quality early 
     learning programs for disadvantaged children.

     SEC. 407. CONSTRUCTION.

       Nothing in this title--
       (1) shall be construed to require a child to participate in 
     an early learning program; or
       (2) shall be used to deny entry to kindergarten for any 
     individual if the individual is legally eligible, as defined 
     by State or local law.

     SEC. 408. DEFINITIONS.

       For purposes of this title:
       (1) Child.--The term ``child'' refers to an individual from 
     birth through the day the individual enters kindergarten.
       (2) Disadvantaged.--The term ``disadvantaged'', when used 
     with respect to a child, means a child whose family income is 
     described in section 658P(4)(B) of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858n(4)(B)).
       (3) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given such term in section 637 of the Head Start Act 
     (42 U.S.C. 9832).
       (4) Limited english proficient.--The term ``limited English 
     proficient'' has the meaning given such term in section 637 
     of the Head Start Act (42 U.S.C. 9832).
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.
       (6) State.--The term ``State'' has the meaning given such 
     term in section 9101 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7801).

     SEC. 409. AVAILABILITY OF FUNDS.

       There are authorized to be appropriated, and there are 
     appropriated, to carry out this title (in addition to any 
     other amounts appropriated to carry out this title and out of 
     any money in the Treasury not otherwise appropriated) 
     $1,000,000,000 for each of fiscal years 2010 through 2017.

                TITLE V--AMERICAN GRADUATION INITIATIVE

     SEC. 501. AUTHORIZATION AND APPROPRIATION.

       (a) Authorization and Appropriation.--There are authorized 
     to be appropriated, and there are appropriated, to carry out 
     this title (in addition to any other amounts appropriated to 
     carry out this title and out of any money in the Treasury not 
     otherwise appropriated), $730,000,000 for each of the fiscal 
     years 2010 through 2013, and $680,000,000 for each of the 
     fiscal years 2014 through 2019.
       (b) Allocations.--Of the amount appropriated under 
     subsection (a)--
       (1) $630,000,000 shall be made available for each of the 
     fiscal years 2010 through 2013 to carry out section 503;
       (2) $630,000,000 shall be made available for each of the 
     fiscal years 2014 through 2019 to carry out section 504;
       (3) $50,000,000 shall be made available for each of the 
     fiscal years 2010 through 2019 to carry out subsection (a) of 
     section 505; and
       (4) $50,000,000 shall be made available for each of the 
     fiscal years 2010 through 2013 to carry out subsections (b) 
     and (c) of section 505.
       (c) Responsibility.--
       (1) In general.--With respect to sections 503 and 504, the 
     Secretary of Education shall bear the responsibility for 
     obligating and disbursing funds under such sections and 
     ensuring compliance with applicable law and administrative 
     requirements, subject to paragraph (2).
       (2) Interagency agreement.--The Secretary of Education and 
     the Secretary of Labor shall jointly administer sections 503 
     and 504 on such terms as such Secretaries shall set forth in 
     an interagency agreement.

     SEC. 502. DEFINITIONS; GRANT PRIORITY.

       (a) Definitions.--In this title:
       (1) Area career and technical education school.--The term 
     ``area career and technical

[[Page 21879]]

     education school'' has the meaning given such term in section 
     3 of the Carl D. Perkins Career and Technical Education Act 
     of 2006 (20 U.S.C. 2302).
       (2) Community college.--The term ``community college'' 
     means a public institution of higher education at which the 
     highest degree that is predominantly awarded to students is 
     an associate's degree.
       (3) Eligible entity.--The term ``eligible entity'' means--
       (A) a community college or community college district;
       (B) an area career and technical education school;
       (C) a public four-year institution of higher education 
     that--
       (i) offers two-year degrees;
       (ii) will use funds provided under this section for 
     activities at the certificate and associate degree levels; 
     and
       (iii) is not reasonably close, as determined by the 
     Secretary, to a community college;
       (D) a public four-year institution of higher education that 
     is in partnership with an eligible entity described in 
     subparagraph (A), (B), or (C);
       (E) a State that--
       (i) is in compliance with section 137 of the Higher 
     Education Act of 1965 (20 U.S.C. 1015f);
       (ii) has an articulation agreement pursuant to section 486A 
     of such Act (20 U.S.C. 1093a); and
       (iii) is in partnership with an eligible entity described 
     in subparagraph (A), (B), (C), or (D); or
       (F) a consortium of at least 2 entities described in 
     subparagraphs (A) through (E).
       (4) Industry or sector partnership.--The term ``industry or 
     sector partnership'' has the meaning given such term in 
     section 782(f) of the Higher Education Act of 1965.
       (5) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given 
     such term in section 101 of the Higher Education Act of 1965 
     (20 U.S.C. 1001).
       (6) Philanthropic organization.--The term ``philanthropic 
     organization'' has the meaning given such term in section 
     781(i) of the Higher Education Act of 1965 (20 U.S.C. 
     1141(i)).
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.
       (8) State.--The term ``State'' has the meaning given such 
     term in section 103 of the Higher Education Act of 1965 (20 
     U.S.C. 1003).
       (9) State public employment service.--The term ``State 
     public employment service'' refers to a State public 
     employment service established under the Wagner-Peyser Act 
     (29 U.S.C. 49 et seq.).
       (10) State workforce investment board; local workforce 
     investment board.--The terms ``State workforce investment 
     board'' and ``local workforce investment board'' refer to a 
     State workforce investment board established under section 
     111 of the Workforce Investment Act (29 U.S.C. 2821) and a 
     local workforce investment board established under section 
     117 of such Act (29 U.S.C. 2832), respectively.
       (11) Supportive services.--The term ``supportive services'' 
     has the meaning given such term in section 101(46) of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2801(46)).
       (b) Grant Priority.--In addition to any grant priorities 
     established under any other provision of this title, the 
     Secretary, in awarding grants under this title, shall give 
     priority to applications focused on serving low-income, 
     nontraditional students who do not have a bachelor's degree, 
     and who have one or more of the following characteristics:
       (1) Are the first generation in their family to attend 
     college.
       (2) Have delayed enrollment in college.
       (3) Have dependents.
       (4) Are independent students.
       (5) Work at least 25 hours per week.
       (6) Are out-of-school youth without a high school diploma.

     SEC. 503. GRANTS TO ELIGIBLE ENTITIES FOR COMMUNITY COLLEGE 
                   REFORM.

       (a) Program Authorization.--
       (1) Grants authorized.--
       (A) In general.--Subject to paragraph (2), from the amount 
     appropriated to carry out this section, the Secretary, in 
     coordination with the Secretary of Labor, shall award grants 
     to eligible entities, on a competitive basis, to establish 
     and support programs described in subparagraph (B) at 
     eligible entities described in subparagraphs (A) through (D) 
     of section 502(a)(3).
       (B) Programs.--The programs to be established and supported 
     with grants under subparagraph (A) (and carried out through 
     activities described in subsection (f)) shall be programs--
       (i) that are--

       (I) innovative programs; or
       (II) programs of demonstrated effectiveness, based on the 
     evaluations of similar programs funded by the Department of 
     Education or the Department of Labor, or other research of 
     similar programs; and

       (ii) that lead to the completion of a postsecondary degree, 
     certificate, or industry-recognized credential leading to a 
     skilled occupation in a high-demand industry.
       (2) Limitation.--For each fiscal year for which funds are 
     appropriated to carry out this section, the aggregate amount 
     of the grants awarded to eligible entities that are States, 
     or consortia that include a State, shall be not more than 50 
     percent of the total amount appropriated under section 
     501(b)(1) for such fiscal year.
       (3) Prohibition.--The Secretary shall not award a grant to 
     an eligible entity for the same activities that are being 
     supported by other Federal funds.
       (b) Grant Duration and Amount.--
       (1) Duration.--A grant under this section shall be awarded 
     to an eligible entity for a 4-year period, except that if the 
     Secretary determines that the eligible entity has not made 
     demonstrable progress in achieving the benchmarks developed 
     pursuant to subsection (g) by the end of the third year of 
     such grant period, no further grant funds shall be made 
     available to the entity after the date of such determination.
       (2) Amount.--The minimum amount of a total grant award 
     under this section over the 4-year period of the award shall 
     be $750,000.
       (c) Priority.--In awarding grants under this section, the 
     Secretary shall give priority to eligible entities that--
       (1) enter into partnerships with--
       (A) philanthropic or research organizations with expertise 
     in meeting the goals of this section;
       (B) businesses or industry or sector partnerships that--
       (i) design and implement programs described in subsection 
     (a)(1)(B);
       (ii) pay a portion of the costs of such programs; and
       (iii) agree to collaborate with one or more eligible 
     entities to hire individuals who have completed a particular 
     postsecondary degree, certificate, or credential program; or
       (C) labor organizations that provide technical expertise 
     for occupationally specific education necessary for an 
     industry-recognized credential leading to a skilled 
     occupation in a high-demand industry; or
       (2) are institutions of higher education eligible for 
     assistance under title III or V of the Higher Education Act 
     of 1965, or consortia that include such an institution.
       (d) Federal and Non-Federal Share; Supplement, Not 
     Supplant.--
       (1) Federal share.--The amount of the Federal share under 
     this section for a fiscal year shall be not greater than \1/
     2\ of the costs of the programs, services, and policies 
     described in subsection (f) that are carried out under the 
     grant.
       (2) Non-federal share.--
       (A) In general.--The amount of the non-Federal share under 
     this section for a fiscal year shall be not less than \1/2\ 
     of the costs of the programs, services, and policies 
     described in subsection (f) that are carried out under the 
     grant. The non-Federal share may be in cash or in kind, and 
     may be provided from State resources, local resources, 
     contributions from private organizations, or a combination 
     thereof.
       (B) Financial hardship waiver.--The Secretary may waive or 
     reduce the non-Federal share of an eligible entity that has 
     submitted an application under this section if the entity 
     demonstrates a need for such waiver or reduction due to 
     extreme financial hardship, as defined by the Secretary by 
     regulation.
       (3) Supplement, not supplant.--The Federal and non-Federal 
     shares required by this section shall be used to supplement, 
     and not supplant, State and private resources that would 
     otherwise be expended to establish and support programs 
     described in subsection (a)(1)(B) at eligible entities.
       (e) Application.--An eligible entity seeking to receive a 
     grant under this section shall submit to the Secretary an 
     application at such time, in such manner, and containing such 
     information as the Secretary may require. Such application 
     shall describe the programs under subsection (a)(1)(B) that 
     the eligible entity will carry out using the grant funds, 
     (including the programs, services, and policies under 
     subsection (f)), including--
       (1) the goals of such programs, services, and policies;
       (2) how the eligible entity will allocate grant funds for 
     such programs, services, and policies;
       (3) how such programs, services, and policies, and the 
     resources of the eligible entity, will enable the eligible 
     entity to meet the benchmarks developed pursuant to 
     subsection (g), and how the eligible entity will track and 
     report the entity's progress in reaching such benchmarks;
       (4) how the eligible entity will use such programs, 
     services, and policies to establish quantifiable targets for 
     improving graduation rates and employment-related outcomes;
       (5) how the eligible entity will serve high-need 
     populations through such programs, services, and policies;
       (6) how the eligible entity will partner with industry or 
     sector partnerships in the State, the State public employment 
     service, and State or local workforce investment boards in 
     carrying out such programs, services, and policies;
       (7) an assurance that the eligible entity will share 
     information with the Learning and Earning Research Center 
     established under section 505(b), once such Center is 
     established;
       (8) an assurance that the eligible entity will participate 
     in the evaluation of such programs, services, and policies 
     under subsection (i); and
       (9) the potential for such programs, services, and policies 
     to be replicated at other institutions of higher education.
       (f) Uses of Funds.--An eligible entity receiving a grant 
     under this section shall use the grant funds to carry out the 
     programs described in subsection (a)(1)(B), which shall 
     include at least 2 of the following activities:
       (1) Developing and implementing policies and programs to 
     expand opportunities for students at eligible entities 
     described in subparagraphs (A) through (D) of section 
     502(a)(3) to earn bachelor's degrees by--

[[Page 21880]]

       (A) facilitating the transfer of academic credits between 
     institutions of higher education, including the transfer of 
     academic credits for courses in the same field of study; and
       (B) expanding articulation agreements and guaranteed 
     transfer agreements between such institutions, including 
     through common course numbering and general core curriculum.
       (2) Expanding, enhancing, or creating academic programs or 
     training programs, which shall be carried out with industry 
     or sector partnerships or in partnership with employers and 
     may include other relevant partners, that provide relevant 
     job-skill training (including apprenticeships and worksite 
     learning and training opportunities) for skilled occupations 
     in high-demand industries.
       (3) Providing student support services, including--
       (A) intensive career and academic advising;
       (B) labor market information and job counseling; and
       (C) transitional job support, supportive services, or 
     assistance in connecting students with community resources.
       (4) Creating workforce programs that provide a sequence of 
     education and occupational training that leads to industry-
     recognized credentials, including programs that--
       (A) blend basic skills and occupational training that lead 
     to industry-recognized credentials;
       (B) integrate developmental education curricula and 
     instruction with for-credit coursework toward degree or 
     certificate pathways; or
       (C) advance individuals on a career path toward high-wage 
     occupations in high-demand industries.
       (5) Building or enhancing linkages, including the 
     development of dual enrollment programs and early college 
     high schools, between--
       (A) secondary education or adult education programs 
     (including programs established under the Carl D. Perkins 
     Career and Technical Education Act of 2006 and title II of 
     the Workforce Investment Act of 1998 (29 U.S.C. 9201 et 
     seq.)); and
       (B) eligible entities described in subparagraphs (A) 
     through (D) of section 502(a)(3).
       (6) Implementing other innovative programs, services, and 
     policies designed to--
       (A) increase postsecondary degree, certificate, and 
     industry-recognized credential completion rates, particularly 
     with respect to groups underrepresented in higher education, 
     at eligible entities described in subparagraphs (A) through 
     (D) of section 502(a)(3); and
       (B) increase the provision of training for students to 
     enter skilled occupations in high-demand industries.
       (7) Improving the timeliness of the process for creating 
     degree, certificate, and industry-recognized credential 
     programs at eligible entities described in subparagraphs (A) 
     through (D) of section 502(a)(3) that--
       (A) reflect and respond to regional labor market 
     developments and trends;
       (B) effectively address the workforce needs of employers in 
     the State; and
       (C) are designed in consultation with such employers.
       (g) Benchmarks.--
       (1) In general.--Each eligible entity receiving a grant 
     under this section shall develop quantifiable benchmarks on 
     the following indicators (where applicable), to be approved 
     by the Secretary:
       (A) Closing gaps in enrollment and completion rates for--
       (i) groups underrepresented in higher education; and
       (ii) groups of students enrolled at the eligible entity (or 
     at an institution of higher education under the jurisdiction 
     of the eligible entity, in the case of an entity that is not 
     an institution) who have the lowest enrollment and completion 
     rates.
       (B) Addressing local and regional workforce needs.
       (C) Establishing articulation agreements between two-year 
     and four-year public institutions of higher education within 
     a State.
       (D) Improving comprehensive employment and educational 
     outcomes for postsecondary education and training programs, 
     including--
       (i) student persistence from one academic year to the 
     following academic year;
       (ii) the number of credits students earn toward a 
     certificate or an associate's degree;
       (iii) the number of students in developmental education 
     courses who subsequently enroll in credit bearing coursework;
       (iv) transfer of general education credits between 
     institutions of higher education, as applicable;
       (v) completion of industry-recognized credentials or 
     associate's degrees to work in skilled occupations in high-
     demand industries;
       (vi) transfers to four-year institutions of higher 
     education; and
       (vii) job placement related to skills training or 
     associate's degree completion.
       (2) Report.--The eligible entity receiving such a grant 
     shall annually measure and report to the Secretary the 
     progress of the entity in achieving the benchmarks developed 
     pursuant to paragraph (1).
       (h) Provision of Transfer of Credit Information in 
     Community College Course Schedules.--To the maximum extent 
     practicable, each community college receiving a grant under 
     this section shall include in each electronic and printed 
     publication of the college's course schedule, in a manner of 
     the college's choosing, for each course listed in the 
     college's course schedule, whether such course is 
     transferable for credit toward the completion of a 4-year 
     baccalaureate degree at a public institution of higher 
     education in the State in which the college is located.
       (i) Evaluation.--The Secretary shall allocate not more than 
     two percent of the funds appropriated under section 501(b)(1) 
     to the Institute of Education Sciences to conduct 
     evaluations, ending not later than January 30, 2014, that--
       (1) assess the effectiveness of the grant programs carried 
     out by each eligible entity receiving such a grant in--
       (A) improving postsecondary education completion rates 
     (disaggregated by age, race, ethnicity, sex, income, and 
     disability);
       (B) improving employment-related outcomes for students 
     served by such programs;
       (C) serving high-need populations; and
       (D) building or enhancing working partnerships with the 
     State public employment service or State or local workforce 
     investment boards; and
       (2) include any other information or assessments the 
     Secretary may require.
       (j) Report.--The Secretary shall submit to the Committee on 
     Health, Education, Labor, and Pensions of the Senate and the 
     Committee on Education and Labor of the House of 
     Representatives an annual report on grants awarded under this 
     section, including--
       (1) the amount awarded to each eligible entity under this 
     section;
       (2) a description of the activities conducted by each 
     eligible entity receiving a grant under this section; and
       (3) a summary of the results of the evaluations submitted 
     to the Secretary under subsection (i) and the progress each 
     eligible entity made toward achieving the benchmarks 
     developed under subsection (g).

     SEC. 504. GRANTS TO ELIGIBLE STATES FOR COMMUNITY COLLEGE 
                   PROGRAMS.

       (a) Program Authorization.--From the amount appropriated to 
     carry out this section, the Secretary, in coordination with 
     the Secretary of Labor, shall award grants to eligible 
     States, on a competitive basis, to implement the systematic 
     reform of community colleges located in the State by carrying 
     out programs, services, and policies that demonstrated 
     effectiveness under the evaluation described in section 
     503(i).
       (b) Eligible State.--In this section, the term ``eligible 
     State'' means a State that demonstrates to the Secretary in 
     the application submitted pursuant to subsection (e) that the 
     State--
       (1) has a plan under section 782 of the Higher Education 
     Act of 1965 to increase the State's rate of persistence in 
     and completion of postsecondary education that takes into 
     consideration and involves community colleges located in such 
     State;
       (2) has a statewide longitudinal data system that includes 
     data with respect to community colleges;
       (3) has an articulation agreement pursuant to section 486A 
     of the Higher Education Act of 1965 (20 U.S.C. 1093a);
       (4) is in compliance with section 137 of such Act (20 
     U.S.C. 1015f); and
       (5) meets any other requirements the Secretary may require.
       (c) Grant Duration; Renewal.--A grant awarded under this 
     section shall be awarded to an eligible State for a 6-year 
     period, except that if the Secretary determines that the 
     eligible State has not made demonstrable progress in 
     achieving the benchmarks developed pursuant to subsection (g) 
     by the end of the third year of the grant period, no further 
     grant funds shall be made available to the entity after the 
     date of such determination.
       (d) Federal and Non-Federal Share; Supplement, Not 
     Supplant.--
       (1) Federal share.--The amount of the Federal share under 
     this section for a fiscal year shall be not greater than \1/
     2\ of the costs of the reform described in subsection (f) 
     that is carried out with the grant.
       (2) Non-federal share.--
       (A) In general.--The amount of the Non-Federal share under 
     this section for a fiscal year shall be not less than \1/2\ 
     of the costs of the reform described in subsection (f) that 
     is carried out with the grant. The non-Federal share may be 
     in cash or in kind, and may be provided from State resources, 
     local resources, contributions from private organizations, or 
     a combination thereof.
       (B) Financial hardship waiver.--The Secretary may waive or 
     reduce the non-Federal share of an eligible State that has 
     submitted an application under this section if the State 
     demonstrates a need for such waiver or reduction due to 
     extreme financial hardship, as defined by the Secretary by 
     regulation.
       (3) Supplement, not supplant.--The Federal and non-Federal 
     share required by this section shall be used to supplement, 
     and not supplant, State and private resources that would 
     otherwise be expended to carry out the systematic reform of 
     community colleges in a State.
       (e) Application.--An eligible State desiring to receive a 
     grant under this section shall submit to the Secretary an 
     application at such time, in such manner, and containing such 
     information as the Secretary may require. Such application 
     shall describe the programs, service, and policies to be used 
     by the State to achieve the systematic reform described in 
     subsection (f), including--
       (1) the goals of such programs, services, and policies;
       (2) how the State will allocate grant funds to carry out 
     such programs, services, and policies, including identifying 
     any State or private entity that will administer such 
     programs, services, and policies;
       (3) how such programs, services, and policies will enable 
     the State to--

[[Page 21881]]

       (A) meet the benchmarks developed pursuant to subsection 
     (g), and how the State will track and report the State's 
     progress in reaching such benchmarks; and
       (B) benefit students attending all community colleges 
     within the State;
       (4) how the State will use such programs, services, and 
     policies to establish quantifiable targets for improving 
     graduation rates and employment-related outcomes;
       (5) how the State will serve high-need populations through 
     such programs, services, and policies;
       (6) how the State will partner with the State public 
     employment service and State or local workforce investment 
     boards in carrying out such programs, services, and policies;
       (7) how the State will evaluate such programs, services, 
     and policies, which may include participation in national 
     evaluations; and
       (8) how the State will involve community colleges and 
     community college faculty in the planning, implementation, 
     and evaluation of such programs, services, and policies.
       (f) Uses of Funds.--An eligible State receiving a grant 
     under this section shall use the grant funds to implement the 
     systematic reform of community colleges located in the State 
     by carrying out programs, services, and policies that the 
     Secretary has determined to have demonstrated effectiveness 
     based on the results of the evaluation described in section 
     503(i). States shall allocate not less than 90 percent of 
     such grant funds to community colleges within the State.
       (g) Benchmarks.--
       (1) In general.--Each eligible State receiving a grant 
     under this section shall, in consultation with the Secretary, 
     develop quantifiable benchmarks on the indicators identified 
     in section 503(f)(1).
       (2) Progress.--An eligible State receiving such a grant 
     shall annually measure and report to the Secretary progress 
     in achieving the benchmarks developed pursuant to paragraph 
     (1).
       (h) Report.--
       (1) Reports to the secretary.--Each eligible State 
     receiving a grant under this section shall annually submit to 
     the Secretary and the Secretary of Labor a report on such 
     grant, including--
       (A) a description of the systematic reform carried out by 
     the State using such grant; and
       (B) the outcome of such reform, including the State's 
     progress in achieving the benchmarks developed under 
     subsection (g).
       (2) Reports to congress.--Not later than 6 months after the 
     end of the grant period, the Secretary shall submit to the 
     Committee on Health, Education, Labor, and Pensions of the 
     Senate and the Committee on Education and Labor of the House 
     of Representatives a summary of the reports submitted under 
     paragraph (1) with respect to such grant period.
       (i) Sense of Congress.--It is the sense of Congress that--
       (1) community colleges play an important role in preparing 
     and training students seeking to enter the workforce;
       (2) it is vital that all States have access to the 
     resources and assistance needed to compete for grants 
     authorized under this section; and
       (3) in executing the grant program authorized under this 
     section, the Secretary will make available any and all 
     assistance, guidance, and support to States seeking to 
     compete for grants authorized under this section and will 
     work to ensure that such grants are distributed in a fair and 
     equitable manner.

     SEC. 505. NATIONAL ACTIVITIES.

       (a) Open Online Education.--From the amount appropriated to 
     carry out this section, the Secretary is authorized to make 
     competitive grants to, or enter into contracts with, 
     institutions of higher education, philanthropic 
     organizations, and other appropriate entities to develop, 
     evaluate, and disseminate freely-available high-quality 
     online training, high school courses, and postsecondary 
     education courses. Entities receiving funds under this 
     subsection shall ensure that electronic and information 
     technology activities meet the access standards established 
     under section 508 of the Rehabilitation Act of 1973 (29 
     U.S.C. 794d).
       (b) Learning and Earning Research Center.--
       (1) In general.--From the amount appropriated to carry out 
     this section, the Director of the Institute of Education 
     Sciences is authorized to award a grant to, or enter into a 
     contract with, an organization with demonstrated expertise in 
     the research and evaluation of community colleges to 
     establish and operate the Learning and Earning Research 
     Center (in this section referred to as the ``Center'').
       (2) Grant term.--The grant or contract awarded under this 
     section shall be awarded for a period of not more than 4 
     years.
       (3) Board.--The Center shall have an independent advisory 
     board of 9 individuals who--
       (A) are appointed by the Secretary, based on 
     recommendations from the organization receiving the grant or 
     contract under this section; and
       (B) who have demonstrated expertise in--
       (i) data collection;
       (ii) data analysis; and
       (iii) econometrics, postsecondary education, and workforce 
     development research.
       (4) Center activities.--The Center shall--
       (A) develop--
       (i) peer-reviewed metrics to help consumers make sound 
     education and training choices, and to help students, 
     workers, schools, businesses, researchers, and policymakers 
     assess the effectiveness of community colleges, and courses 
     of study at such colleges, in meeting education and 
     employment objectives and serving groups that are 
     underrepresented in postsecondary education;
       (ii) common metrics and data elements to measure the 
     education and employment outcomes of students attending 
     community colleges;
       (B) coordinate with the Institute of Education Sciences and 
     States receiving a grant under subsection (c) to develop--
       (i) standardized data elements, definitions, and data-
     sharing protocols to make it possible for data systems 
     related to postsecondary education to be linked and 
     interoperable, and for best practices to be shared among 
     States;
       (ii) standards and processes for facilitating sharing of 
     data in a manner that safeguards student privacy; and
       (C) develop and make widely available materials analyzing 
     best practices and research on successful postsecondary 
     education and training efforts;
       (D) make the data and metrics developed pursuant to 
     subparagraph (A) available to the public in a transparent, 
     user-friendly format that is accessible to individuals with 
     disabilities; and
       (E) consult with representatives from States with respect 
     to the activities of the Center.
       (c) State Systems.--
       (1) In general.--From the amount appropriated to carry out 
     this section, the Secretary is authorized to award grants to 
     States or consortia of States to establish cooperative 
     agreements to develop, implement, and expand interoperable 
     statewide longitudinal data systems that--
       (A) collect, maintain, disaggregate (by institution, 
     income, race, ethnicity, sex, disability, and age), and 
     analyze student data from community colleges, including data 
     on the programs of study and education and employment 
     outcomes for particular students, tracked over time; and
       (B) can be linked to other data systems, as applicable, 
     including elementary and secondary education and workforce 
     data systems.
       (2) Supplement, not supplant.--Funds appropriated to carry 
     out this subsection shall be used to supplement, and not 
     supplant, other Federal and State resources that would 
     otherwise be expended to carry out statewide longitudinal 
     data systems, including funding appropriated for State 
     Longitudinal Data Systems in the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 115).
       (3) Privacy and access to data.--
       (A) In general.--Each State or consortia that receives a 
     grant under this subsection or any other provision of this 
     Act shall implement measures to--
       (i) ensure that the statewide longitudinal data system 
     under this subsection and any other data system the State or 
     consortia is operating for the purposes of this Act meet the 
     requirements of section 444 of the General Education 
     Provisions Act (20 U.S.C. 1232g) (commonly known as the 
     ``Family Educational Rights and Privacy Act of 1974'');
       (ii) limit the use of information in any such data system 
     by governmental agencies in the State, including State 
     agencies, State educational authorities, local educational 
     agencies, community colleges, and institutions of higher 
     education, to education and workforce related activities 
     under this Act or education and workforce related activities 
     otherwise permitted by Federal or State law;
       (iii) prohibit the disclosure of personally identifiable 
     information except as permitted under section 444 of the 
     General Education Provisions Act and any additional 
     limitations set forth in State law;
       (iv) keep an accurate accounting of the date, nature, and 
     purpose of each disclosure of personally identifiable 
     information in any such data system, a description of the 
     information disclosed, and the name and address of the 
     person, agency, institution, or entity to whom the disclosure 
     is made, which accounting shall be made available on request 
     to parents of any student whose information has been 
     disclosed;
       (v) notwithstanding section 444 of the General Education 
     Provisions Act, require any non-governmental party obtaining 
     personally identifiable information to sign a data use 
     agreement prior to disclosure that--

       (I) prohibits the party from further disclosing the 
     information;
       (II) prohibits the party from using the information for any 
     purpose other than the purpose specified in the agreement; 
     and
       (III) requires the party to destroy the information when 
     the purpose for which the disclosure was made is 
     accomplished;

       (vi) maintain adequate security measures to ensure the 
     confidentiality and integrity of any such data system, such 
     as protecting a student record from identification by a 
     unique identifier;
       (vii) where rights are provided to parents under this 
     clause, provide those rights to the student instead of the 
     parent if the student has reached the age of 18 or is 
     enrolled in a postsecondary educational institution; and
       (viii) ensure adequate enforcement of the requirements of 
     this paragraph.
       (B) Use of unique identifiers.--It shall be unlawful for 
     any Federal, State, or local governmental agency to--
       (i) use the unique identifiers employed in such data 
     systems for any purpose other than as authorized by Federal 
     or State law; or
       (ii) deny any individual any right, benefit, or privilege 
     provided by law because of such individual's refusal to 
     disclose the individual's unique identifier.
       (d) Report.--The Secretary shall submit to the Committee on 
     Health, Education, Labor,

[[Page 21882]]

     and Pensions of the Senate and the Committee on Education and 
     Labor of the House of Representatives an annual report on the 
     amounts awarded to entities receiving grants or contracts 
     under this section, and the activities carried out by such 
     entities under such grants and contracts.

  The CHAIR. No amendment to the committee amendment is in order except 
those printed in House Report 111-256. Each amendment may be offered 
only in the order printed in the report, by a Member designated in the 
report, shall be considered read, shall be debatable for the time 
specified in the report, equally divided and controlled by the 
proponent and an opponent of the amendment, shall not be subject to 
amendment, and shall not be subject to a demand for division of the 
question.


       Amendment No. 1 Offered by Mr. George Miller of California

  The CHAIR. It is now in order to consider amendment No. 1 printed in 
House Report 111-256.
  Mr. GEORGE MILLER of California. I have a manager's amendment at the 
desk.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 1 offered by Mr. George Miller of California:
       Page 11, after line 21, insert the following new subsection 
     (and redesignate the succeeding subsection accordingly):
       (b) Multiple Pell Grant Awards.--Section 401(b)(5) (20 
     U.S.C. 1070a(b)(5)) is amended--
       (1) in subparagraph (A)--
       (A) by inserting ``who is making satisfactory academic 
     progress according to the institution's standards'' after 
     ``award a student''; and
       (B) by striking ``to permit such student to accelerate the 
     student's progress toward a degree or certificate'' and 
     inserting ``to permit such student to accelerate the 
     student's graduation date, whether making full- or part-time 
     progress toward a degree or certificate,''; and
       (2) by adding at the end the following new subparagraph:
       ``(C) A student may not receive a combination of first and 
     second scheduled award funds under this paragraph that 
     exceeds the amount the student would otherwise be eligible to 
     receive for the payment period.''.
       Page 11, line 22, redesignate subsection (b) as subsection 
     (c).
       Page 13, line 10, redesignate subsection (c) as subsection 
     (d).
       Page 13, line 11, strike ``(a) and (b)'' and insert ``(a) 
     and (c)''.
       Page 12, line 17, strike ``483(e)(3)(ii)'' and insert 
     ``483(e)(3)(A)(ii)''.
       Page 15, line 8, strike the quotation marks and the second 
     period.
       Page 15, after line 8, insert the following:
       ``(3) Expiration of authority.--The authority to award 
     grants under this part shall expire at the end of fiscal year 
     2014.''.
       Page 19, line 6, strike ``two-year and four-year'' and 
     insert ``public two-year and public four-year''.
       Page 19, line 10, insert ``in consultation with faculty 
     from participating institutions'' after ``institutions''.
       Page 21, line 4, strike ``polices'' and insert 
     ``practices''.
       Page 21, lines 7 through 9, strike ``for all categories'' 
     and all that follows through ``in the State''.
       Page 21, line 13, insert ``and'' after the semicolon.
       Page 21, beginning on line 14, strike clause (iv).
       Page 21, line 20, strike ``(v)'' and insert ``(iv)''.
       Page 23, beginning on line 5, strike paragraph (3) and 
     insert the following:
       ``(3) Subgrants to nonprofit organizations.--
       ``(A) In general.--A State receiving a payment under this 
     section may elect to make a subgrant to one or more nonprofit 
     organizations in the State, or a partnership of such 
     organizations, to carry out activities and services described 
     in subsection (d)(1), if the nonprofit organization or 
     partnership--
       ``(i) was in existence on the day before the date of the 
     enactment of the Student Aid and Fiscal Responsibility Act of 
     2009; and
       ``(ii) as of such day, was participating in activities and 
     services related to promoting persistence in, and completion 
     of, postsecondary education, such as the activities and 
     services described in subsection (d)(1).
       ``(B) Nonprofit organizations.--For the purposes of this 
     section, nonprofit organizations in a State include--
       ``(i) agencies with agreements with the Secretary under 
     subsections (b) and (c) of section 428 on the date of the 
     enactment of the Student Aid and Fiscal Responsibility Act of 
     2009;
       ``(ii) nonprofit subsidiaries of agencies described in 
     clause (i), if such subsidiaries were established, pursuant 
     to the law of such State, on or before January 1, 1998; and
       ``(iii) eligible not-for-profit servicers, as defined in 
     section 456(d), with an agreement with the Secretary under 
     subsection (a)(3) of section 456, except that such a servicer 
     shall only be eligible for a subgrant from the State for 
     which the servicer is receiving an allocation under such 
     agreement.
       Page 24, after line 9, insert the following:
       ``(C) A nonprofit subsidiary of agencies described in 
     subparagraph (B), if such subsidiary was established, 
     pursuant to the law of such State, on or before January 1, 
     1998.
       Page 25, line 3, strike ``and''.
       Page 25, after line 5, insert the following:
       ``(vi) assisting institutions of higher education institute 
     programs of persistence focused on students at risk of not 
     completing; and
       Page 25, line 5, before the semicolon insert ``, in 
     accordance with such section''.
       Page 27, beginning on line 1, strike ``, at the appropriate 
     stage of development of the partnership''.
       Page 27, line 8, strike ``central labor coalitions'' and 
     insert ``trade unions or consortia of trade unions''.
       Page 28, beginning on line 17, strike paragraph (3) and 
     insert the following:
       ``(3) nonprofit organizations with demonstrated experience 
     in the support, improvement, or operation of programs to 
     increase postsecondary completion, including--
       ``(A) agencies with agreements with the Secretary under 
     subsections (b) and (c) of section 428 on the date of the 
     enactment of the Student Aid and Fiscal Responsibility Act of 
     2009;
       ``(B) nonprofit subsidiaries of agencies described in 
     subparagraph (A), if such subsidiaries were established, 
     pursuant to State law, on or before January 1, 1998; and
       ``(C) eligible not-for-profit servicers, as defined in 
     section 456(d), with an agreement with the Secretary under 
     subsection (a)(3) of section 456, except that such a servicer 
     shall only be eligible for a subgrant from the State for 
     which the servicer is receiving an allocation under such 
     agreement;
       Page 33, beginning on line 14, strike section 785 and 
     insert the following:

     ``SEC. 785. PARTICIPATION OF PRIVATE, NONPROFIT INSTITUTIONS 
                   OF HIGHER EDUCATION.

       ``(a) Voluntary Participation.--A private, nonprofit 
     institution of higher education may voluntarily elect to 
     participate in a State's efforts under this part to increase 
     postsecondary enrollment, persistence, and completion. A 
     State--
       ``(1) shall not require any private, nonprofit institution 
     to participate in such efforts; and
       ``(2) may require such an institution that voluntarily 
     elects to participate in such efforts to provide appropriate 
     information to allow the State to assess the institution's 
     progress towards the goals described in subclauses (I) and 
     (II) of section 782(c)(2)(A)(i).
       ``(b) Rule of Construction.--Nothing in this part, 
     including voluntary participation described in subsection 
     (a), shall be construed to--
       ``(1) authorize the Secretary, a State, or an officer or 
     employee of the Department or of a State to exercise any 
     direction, supervision, or control other than that is 
     currently granted over a private, nonprofit institution of 
     higher education, including control over curriculum, program 
     of instruction, administration, governance, personnel, 
     articulation, the awarding of credit, graduation or degree 
     requirements, or admissions;
       ``(2) authorize the Secretary, a State, or an officer or 
     employee of the Department or of a State to require a 
     private, nonprofit institution of higher education to 
     participate in a longitudinal data system; or
       ``(3) limit the application of the General Education 
     Provisions Act.
       ``(c) Enforcement.--If any State fails or refuses to comply 
     with any provision of this section, the State shall no longer 
     be eligible for assistance under this part.''.
       Page 36, line 21, strike ``2019.'' and insert ``2019. The 
     authority to award grants under this section shall expire at 
     the end of fiscal year 2019.''.
       Page 38, line 4, insert a period after ``318(e)''.
       Page 38, line 25, insert a period after ``such section''.
       Page 39, line 8, after the period insert ``The authority to 
     award grants under part N of title VIII of such Act shall 
     expire at the end of fiscal year 2010.''.
       Page 40, beginning on line 13, strike ``awarded to the 
     student under'' and insert ``first disbursed to the student 
     before July 1, 2010, under''.
       Page 41, line 3, strike ``awarded'' and insert 
     ``disbursed''.
       Page 41, strike lines 4 through 9 and insert ``student 
     under part D (including a Federal Direct PLUS loan disbursed 
     to a parent on behalf of the student), or first disbursed to 
     the student under part E before July 1, 2010, for such 
     payment period or period of enrollment; minus''.
       Page 43, line 16, strike ``when such student returns from 
     such service'' and insert ``upon termination of the 
     deployment of such student for such service''.
       Page 43, beginning on line 17, amend section 106 to read as 
     follows:

     SEC. 106. VETERANS RESOURCE OFFICER GRANTS.

       Section 873 (20 U.S.C. 1161t) is amended--

[[Page 21883]]

       (1) by amending the header to read as follows: ``MODEL 
     PROGRAMS FOR CENTERS OF EXCELLENCE FOR VETERAN STUDENT 
     SUCCESS; VETERANS RESOURCE OFFICERS'';
       (2) in subsection (a), by inserting ``, or the hiring of 
     Veterans Resource Officers,'' after ``model programs'';
       (3) by amending subsection (b) to read as follows:
       ``(b) Grant Authorized.--
       ``(1) In general.--Subject to the availability of 
     appropriations under subsection (f), the Secretary shall 
     award grants to institutions of higher education to--
       ``(A) develop model programs to support veteran student 
     success in postsecondary education; or
       ``(B) hire a Veterans Resource Officer to increase the 
     college completion rates for veteran students enrolled at 
     such institutions of higher education.
       ``(2) Grant period.--A grant awarded under this section 
     shall be awarded for a period of 3 years.''; and
       (4) in subsection (c)--
       (A) in paragraph (1)--
       (i) by amending the header to read as follows: ``Model 
     program required activities''; and
       (ii) in the matter preceding subparagraph (A), by striking 
     ``under this section'' and inserting ``for the purpose 
     described in subsection (b)(1)(A)'';
       (B) by redesignating paragraph (2) as paragraph (3); and
       (C) by inserting after paragraph (1) the following:
       ``(2) Veterans resource officer required activities.--An 
     institution of higher education receiving a grant for the 
     purpose described in subsection (b)(1)(B) shall use such 
     grant to hire a Veterans Resource Officer whose duties shall 
     include--
       ``(A) serving as a liaison between--
       ``(i) veteran students;
       ``(ii) the faculty and staff of the institution; and
       ``(iii) local facilities of the Department of Veterans 
     Affairs;
       ``(B) organizing and advising veteran student organizations 
     and hosting veterans-oriented group functions on campus;
       ``(C) distributing news and information to all veteran 
     students, including through maintaining newsletters and 
     listserves; and
       ``(D) assisting in the training of Department of Veterans 
     Affairs certifying officials, when applicable.''.
       Page 47, after line 6, insert the following new sections:

     SEC. 107. OFFICER DANIEL FAULKNER CHILDREN OF FALLEN HEROES 
                   SCHOLARSHIP.

       (a) Short Title.--This section may be cited as the 
     ``Officer Daniel Faulkner Children of Fallen Heroes 
     Scholarship Act of 2009''.
       (b) Calculation of Eligibility.--Section 473(b) (20 U.S.C. 
     1087mm(b)(2)) is amended--
       (1) in paragraph (2)--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``(in the case of a student who meets the requirement of 
     subparagraph (B)(i)), or academic year 2010-2011 (in the case 
     of a student who meets the requirement of subparagraph 
     (B)(ii)),'' after ``academic year 2009-2010''; and
       (B) by amending subparagraph (B) to read as follows:
       ``(B) whose parent or guardian was--
       ``(i) a member of the Armed Forces of the United States and 
     died as a result of performing military service in Iraq or 
     Afghanistan after September 11, 2001; or
       ``(ii) was actively serving as a public safety officer and 
     died in the line of duty while performing as a public safety 
     officer; and'';
       (2) in paragraph (3)--
       (A) by striking ``Notwithstanding'' and inserting the 
     following:
       ``(A) Armed forces.--Notwithstanding'';
       (B) by striking ``paragraph (2)'' and inserting 
     ``subparagraphs (A), (B)(i), and (C) of paragraph (2)''; and
       (C) by adding at the end the following:
       ``(B) Public safety officers.--Notwithstanding any other 
     provision of law, unless the Secretary establishes an 
     alternate method to adjust the expected family contribution, 
     a financial aid administrator shall adjust the expected 
     family contribution in accordance with this subsection for 
     each student who meets the requirements of subparagraphs (A), 
     (B)(ii), and (C) of paragraph (2).''; and
       (3) by adding at the end the following:
       ``(4) Treatment of pell amount.--Notwithstanding section 
     1212 of the Omnibus Crime Control and Safe Streets Act of 
     1968, in the case of a student who receives an increased 
     Federal Pell Grant amount under this section, the total 
     amount of such Federal Pell Grant, including the increase 
     under subparagraph (A), shall not be considered in 
     calculating that student's educational assistance benefits 
     under the Public Safety Officer's Benefits program.
       ``(5) Definitions.--For purposes of this subsection--
       ``(A) the term `public safety officer' means an individual 
     serving a public agency in an official capacity, with or 
     without compensation, as a law enforcement officer, as a 
     firefighter, or as a member of a rescue squad or ambulance 
     crew;
       ``(B) the term `law enforcement officer' means an 
     individual who--
       ``(i) is authorized by law to engage in or supervise the 
     prevention, detection, investigation, or prosecution of, or 
     the incarceration of any person for, any violation of law; 
     and
       ``(ii) has statutory powers of arrest or apprehension;
       ``(C) the term `firefighter' means an individual who is 
     trained in the suppression of fire or hazardous-materials 
     response and has the legal authority to engage in these 
     duties;
       ``(D) the term `member of a rescue squad or ambulance crew' 
     means an individual who is an officially recognized or 
     designated public employee member of a rescue squad or 
     ambulance crew; and
       ``(E) the term `public agency' means the United States, any 
     State of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, the Virgin Islands of the United 
     States, Guam, American Samoa, the Trust Territory of the 
     Pacific Islands, the Commonwealth of the Northern Mariana 
     Islands, any territory or possession of the United States, or 
     any unit of local government, department, agency, or 
     instrumentality of any of the foregoing, and the Amtrak 
     Police and Federal Reserve Police departments.''.

     SEC. 108. TEACHER EXCELLENCE.

       (a) Establishment.--The Secretary of Education may make 
     grants to local educational agencies for the purpose of 
     improving teacher excellence in public elementary and 
     secondary schools.
       (b) Use of Funds.--Grants under this section shall be used 
     for the establishment, expansion, or improvement of--
       (1) professional development activities that are aligned to 
     the curriculum and student academic needs;
       (2) mentoring and induction programs for new teachers and 
     principals; or
       (3) career ladders that allow teachers to take on new 
     professional roles, such as career teachers, mentor teachers, 
     and master teachers.
       (c) Application.--A local educational agency desiring a 
     grant under this section shall submit to the Secretary of 
     Education an application at such time, in such manner, and 
     accompanied by such information as the Secretary may 
     reasonably require.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section such sums as may 
     be necessary for fiscal year 2010 and each of the 5 
     succeeding fiscal years.
       Page 48, lines 1 and 2, strike ``Grant, a Federal Direct 
     Stafford Loan, or work assistance under'' and insert ``Grant 
     or a Federal Direct Stafford Loan under''.
       Page 50, line 20, insert a period after ``section 480)''.
       Page 57, line 2, insert ``the'' after ``enactment of''.
       Page 59, line 16, through page 60, line 3, strike paragraph 
     (1) and insert the following:
       (1) in subsection (a)(4)(A), by inserting ``, and first 
     disbursed before July 1, 2010'' after ``under this part'';
       Page 62, line 7, strike the comma after ``2010''.
       Page 62, line 3, strike the comma after ``428C''.
       Page 65, line 7, strike ``; and'' and insert ``; or''.
       Page 65, line 15, after ``loan'' insert ``(or, if the 
     holder acts as eligible lender trustee for the beneficial 
     owner of the loan, the beneficial owner of the loan),''.
       Page 65, line 23, through page 66, line 13, strike 
     subclause (III) and insert the following:

       ``(III) Terms of waiver.--

       ``(aa) In general.--A waiver pursuant to subclause (II)(bb) 
     shall be in a form (printed or electronic) prescribed by the 
     Secretary, and shall be applicable to--
       ``(AA) all loans described in such subclause that the 
     lender holds solely in its own right under any lender 
     identification number associated with the holder (pursuant to 
     section 487B);
       ``(BB) all loans described in such subclause for which the 
     beneficial owner has the authority to make an election of a 
     waiver under such subclause, regardless of the lender 
     identification number associated with the loan or the lender 
     that holds the loan as eligible lender trustee on behalf of 
     such beneficial owner; and
       ``(CC) all future calculations of the special allowance on 
     loans that, on the date of such waiver, are loans described 
     in subitem (AA) or (BB), or that, after such date, become 
     loans described in subitem (AA) or (BB).
       ``(bb) Exceptions.--Any waiver pursuant to subclause 
     (II)(bb) that is elected for loans described in subitem (AA) 
     or (BB) of item (aa) shall not apply to any loan described in 
     such subitem for which the lender or beneficial owner of the 
     loan demonstrates to the satisfaction of the Secretary that--
       ``(AA) in accordance with an agreement entered into before 
     the date of enactment of the Student Aid and Fiscal 
     Responsibility Act of 2009 by which such lender or owner is 
     governed and that applies to such loans, such lender or owner 
     is not legally permitted to make an election of such waiver 
     with respect to such loans without the approval of one or 
     more third parties with an interest in the loans, and that 
     the lender or owner followed all available options under such 
     agreement to obtain such approval, and was unable to do so; 
     or

[[Page 21884]]

       ``(BB) such lender or beneficial owner presented the 
     proposal of electing such a waiver applicable to such loans 
     associated with an obligation rated by a nationally 
     recognized statistical rating organization (as defined in 
     section 3(a)(62) of the Securities Exchange Act of 1934), and 
     such rating organization provided a written opinion that the 
     agency would downgrade the rating applicable to such 
     obligation if the lender or owner elected such a waiver.''.
       Page 66, line 18, after ``any loan'' insert ``in which the 
     Secretary has purchased a participation interest and''.
       Page 66, beginning on line 21, strike ``and that is held'' 
     and all that follows through ``the Secretary'' on line 23.
       Page 69, beginning on line 15, strike paragraph (2) and 
     insert the following:
       (2) Effective date.--The amendments made by subparagraph 
     (C) of paragraph (1) shall be effective as if enacted as part 
     of section 102(a)(1) of the Higher Education Opportunity Act, 
     in accordance with section 102(e) of such Act, as amended by 
     section 101(a)(2) of Public Law 111-39.
       Page 71, line 24, insert ``located in the United States'' 
     before ``at which''.
       Page 72, line 7, insert ``(employed in the United States)'' 
     after ``employees''.
       Page 72, line 20, after ``2009,'' insert ``nonprofit 
     subsidiaries of such an agency,''.
       Page 72, line 21, after ``agencies'' insert ``, 
     subsidiaries,''.
       Page 72, line 24, after ``agencies'' insert ``, 
     subsidiaries,''.
       Page 73, line 5, strike ``State agencies, and'' and insert 
     ``agencies, subsidiaries, and''.
       Page 73, line 9, strike ``State agencies and'' and insert 
     ``such agencies, subsidiaries, and''.
       Page 73, line 10, strike ``such''.
       Page 74, line 1, strike ``one or more'' and insert ``at 
     least one''.
       Page 74, strike ``may take'' on line 12 through ``the 
     servicer.'' on line 13, and insert ``shall set such rate so 
     that (i) the rate is commercially reasonable in relation to 
     the volume of loans being serviced by the eligible not-for-
     profit servicers, and (ii) in the Secretary's judgment, the 
     eligible not-for-profit servicers can reasonably provide any 
     additional services, such as default aversion or outreach, 
     provided for in the contracts awarded under this 
     paragraph.''.
       Page 74, beginning on line 22, strike ``on an annual 
     basis'' and insert ``each year''.
       Page 75, line 13, strike ``on an annual basis'' and insert 
     ``each year''.
       Page 76, beginning on line 9, strike subparagraph (C) and 
     insert the following:
       ``(C) Loan servicing retention.--
       ``(i) In general.--In addition to any new loans allocated 
     to a servicers under subparagraph (B)(ii), an eligible not-
     for-profit servicer shall retain the servicing of loans 
     allocated to such servicer in previous years, except as 
     provided in clause (ii), or as otherwise provided for in 
     accordance with the terms of a contract under this paragraph.
       ``(ii) Transfers for multiple loans.--Notwithstanding 
     clause (i) and the allocations required by subparagraph (B), 
     the Secretary may transfer loans among servicers who are 
     awarded contracts to service loans pursuant to this section 
     to ensure that the loans of any single borrower remain with a 
     single servicer.
       Page 76, line 17, strike ``3 years'' and insert ``5 
     years''.
       Page 77, beginning on line 14, strike ``, including due 
     diligence activities required pursuant to regulations''.
       Page 77, beginning on line 16, strike paragraph (2) and 
     insert the following:
       ``(2) Eligible not-for-profit servicer.--
       ``(A) In general.--The term `eligible not-for-profit 
     servicer' means an entity--
       ``(i) that is not owned or controlled in whole or in part 
     by--

       ``(I) a for profit entity; or
       ``(II) a nonprofit entity having its principal place of 
     business in another State; and

       ``(ii) that--

       ``(I) as of July 1, 2009--

       ``(aa) meets the definition of an eligible not-for-profit 
     holder under section 435(p), except that such term does not 
     include eligible lenders described in paragraph (1)(D) of 
     such section; and
       ``(bb) was performing, or had entered into a contract with 
     a third party servicer (as such term is defined in section 
     481(c)) who was performing, student loan servicing functions 
     for loans made under part B of this title;

       ``(II) notwithstanding subclause (I), as of July 1, 2009--

       ``(aa) is the sole beneficial owner of a loan for which the 
     special allowance rate is calculated under section 
     438(b)(2)(I)(vi)(II) because the loan is held by an eligible 
     lender trustee that is an eligible not-for-profit holder as 
     defined under section 435(p)(1)(D); and
       ``(bb) was performing, or had entered into a contract with 
     a third party servicer (as such term is defined in section 
     481(c)) who was performing, student loan servicing functions 
     for loans made under part B of this title; or

       ``(III) is an affiliated entity of an eligible not-for-
     profit servicer described in subclause (I) or (II) that--

       ``(aa) directly employs, or will directly employ (on or 
     before the date the entity begins servicing loans under a 
     contract awarded by the Secretary pursuant to subsection 
     (a)(3)(A)), the majority of individuals who perform borrower-
     specific student loan servicing functions; and
       ``(bb) as of July 1, 2009, was performing, or had entered 
     into a contract with a third party servicer (as such term is 
     defined in section 481(c)) who was performing, student loan 
     servicing functions for loans made under part B of this 
     title.
       ``(B) Affiliated entity.--For the purposes of subparagraph 
     (A), the term `affiliated entity'--
       ``(i) means an entity contracted to perform services for an 
     eligible not-for-profit servicer that--

       ``(I) is a nonprofit entity or is wholly owned by a 
     nonprofit entity; and
       ``(II) is not owned or controlled, in whole or in part, 
     by--

       ``(aa) a for-profit entity; or
       ``(bb) an entity having its principal place of business in 
     another State; and
       ``(ii) may include an affiliated entity that is established 
     by an eligible not-for-profit servicer after the date of 
     enactment of the Student Aid and Fiscal Responsibility Act of 
     2009, if such affiliated entity is otherwise described in 
     subparagraph (A)(ii)(III) and clause (i) of this 
     subparagraph.
       Page 80, after line 22, insert the following new section:

     SEC. 216. TECHNICAL ASSISTANCE TO INSTITUTIONS OF HIGHER 
                   EDUCATION.

       Section 458(a) (20 U.S.C. 1087h(a)) is amended--
       (1) by redesignating paragraph (5) as paragraph (6); and
       (2) by inserting after paragraph (4) the following new 
     paragraph:
       ``(5) Technical assistance to institutions of higher 
     education.--
       ``(A) Provision of assistance.--The Secretary shall provide 
     institutions of higher education participating, or seeking to 
     participate, in the loan programs under this part with 
     technical assistance in establishing and administering such 
     programs, including assistance for an institution of higher 
     education during such institution's transition into such 
     programs. Such assistance may include technical support, 
     training for personnel, customized assistance to individual 
     institutions of higher education, development of 
     informational materials, and other services the Secretary 
     determines to be appropriate.
       ``(B) Funds.--There are--
       ``(i) authorized to be appropriated, and there are 
     appropriated, to carry out this paragraph (in addition to any 
     other amounts appropriated to carry out this subparagraph and 
     out of any money in the Treasury not otherwise appropriated), 
     $50,000,000 for fiscal year 2010; and
       ``(ii) authorized to be appropriated such sums as may be 
     necessary to carry out this paragraph for fiscal years 2011 
     through 2014.''.
       Page 84, line 8, insert ``(except as provided in paragraphs 
     (3) and (4))'' after ``as follows''.
       Page 85, after line 12, insert the following new 
     paragraphs:
       ``(3) Required minimum amount.--Notwithstanding paragraph 
     (1), in no case shall the sum of a participating 
     institution's allocation of loan authority computed under 
     subsections (c), (d), and (e) be less than the average of the 
     institution's total principal amount of loans made under this 
     part for each of the academic years 2003-2004 through 2007-
     2008.
       ``(4) Additional adjustments.--If the Secretary determines 
     that the sum of a participating institution's allocation of 
     loan authority under subsections (c), (d), and (e) is below 
     the minimum amount required under paragraph (3), the 
     Secretary shall--
       ``(A) for each institution for which the minimum amount 
     under paragraph (3) is not satisfied, increase the amount of 
     such sum to the amount of the required minimum under such 
     paragraph; and
       ``(B) ratably reduce the amount of the sum of such loan 
     authority of all participating institutions not described in 
     subparagraph (A).
       Page 87, beginning on line 20, strike paragraph (3).
       Page 88, beginning on line 1, strike paragraph (4).
       Page 96, line 14, insert ``in'' after ``specified''.
       Page 97, line 8, strike ``(a)''.
       Page 105, line 2, strike the period after the second 
     semicolon and insert ``and''.
       Page 105, strike lines 3 through 20, and insert the 
     following:
       (3) in paragraph (2), by adding at the end the following 
     new subparagraph:
       ``(C) Exception.--Notwithstanding subparagraphs (A) and 
     (B), an institution that fails to meet the requirements of 
     subsection (a)(24) for two consecutive institutional fiscal 
     years, and the second such institutional fiscal year ends 
     after July 1, 2008, and before July 1, 2011, shall not be 
     determined ineligible in accordance with subparagraph (A) 
     unless the institution fails to meet the requirements of 
     subsection (a)(24) for a third consecutive institutional 
     fiscal year.''.
       Page 111, line 22, insert ``, including life-cycle cost 
     effectiveness,'' before ``and waste''.
       Page 117, beginning on line 7 strike ``including, where 
     applicable, early learning facilities, based'' and insert 
     ``(including early learning facilities, as appropriate), 
     based''.
       Page 122, line 11, insert ``(including early learning 
     facilities, as appropriate)'' after ``facilities''.

[[Page 21885]]

       Page 131, after line 7, insert the following:
       (d) Termination.--The authority to establish and maintain 
     the Advisory Council under this section shall expire at the 
     close of September 30, 2011.
       Page 132, after line 6, insert the following:
       (d) Sunset.--The authority to award grants under this 
     subtitle shall expire at the end of fiscal year 2011.
       Page 138, after line 8, insert the following:
       ``(K) Expansion or building of computer lab facilities, 
     including facilities used to provide information technology 
     training to students and members of the public.''.
       Page 138, line 9, redesignate subparagraph (K) as 
     subparagraph (L).
       Page 138, line 12, redesignate subparagraph (L) as 
     subparagraph (M).
       Page 141, line 1, strike ``(f)'' and insert ``(e)''.
       Page 141, line 16, strike ``(g)'' and insert ``(f)''.
       Page 141, line 21, strike ``(h)'' and insert ``(g)''.
       Page 143, line 10, strike ``(i)'' and insert ``(h)''.
       Page 143, strike line 15, and insert the following: ``year 
     2010, which shall remain available until expended. The 
     authority to award grants under this section shall expire at 
     the end of fiscal year 2010.''.
       Page 144, line 7, strike ``, and improve'' and insert 
     ``and''.
       Page 146, line 8, after ``children'' insert ``, including 
     programs receiving funds under section 611(h)(4) and 643(b) 
     of the Individuals with Disabilities Education Act (20 U.S.C. 
     1411(h)(4); 1443(b))''.
       Page 146, beginning on line 23, strike ``determined by the 
     Secretary to qualify for receipt of'' and insert ``with an 
     approved application for''.
       Page 148, line 10, after the semicolon, insert ``and''.
       Page 148, strike lines 11 through 14.
       Page 148, line 15, strike ``(3)'' and insert ``(2)''.
       Page 151, line 18, strike ``and'' at the end.
       Page 151, line 22, strike the period at the end and insert 
     ``; and''.
       Page 151, after line 22, insert the following:
       (E) committing State resources for supporting early 
     learning programs and services.
       Page 154, line 24, strike ``, as appropriate,''.
       Page 154, line 25, after ``standards'' insert ``, as 
     appropriate,''.
       Page 156, line 3, after ``including'' insert ``the''.
       Page 156, line 6, strike ``providers'' and insert ``early 
     learning programs''.
       Page 157, line 22, before ``program'' insert ``early 
     learning''.
       Page 158, line 1, before ``disability,'' insert ``dental, 
     developmental delay and''.
       Page 161, after line 20, insert the following:
       (14) A description of how the State will implement a 
     process for improving the quality of early learning services 
     to better meet the needs of children who have experienced 
     abuse or neglect, been exposed to violence, toxic stress, 
     parental substance abuse, mental illness, or homelessness, or 
     have had early behavioral and peer relationship problems, 
     including addressing appropriate professional development, 
     programmatic practices, classroom environment, and outreach 
     and support to meet the needs of such children.
       Page 161, line 21, redesignate paragraph (14) as paragraph 
     (15).
       Page 165, line 5, insert ``early learning'' before 
     ``program''.
       Page 165, line 13, before ``disability,'' insert ``dental, 
     developmental delay and''.
       Page 167, line 5, strike ``services,'' and insert 
     ``services (or, if the State can demonstrate that it is 
     already meeting the needs of such children in such manner, 
     the State may apply to expand access for disadvantaged 
     children in such manner and the State's application may not 
     be adversely treated due to such request),''.
       Page 168, line 16, strike ``to'' and insert ``that''.
       Page 168, line 18, strike ``allow a State to become 
     eligible and competitive'' and insert ``improve a State's 
     competitiveness''.
       Page 171, line 24, strike ``could include determining'' and 
     insert ``may include''.
       Page 172, line 1, after ``(i)'' insert ``examining''.
       Page 172, line 4, after ``(ii)'' insert ``examining''.
       Page 172, line 6, after ``(iii)'' insert ``examining''.
       Page 172, line 9, after ``(iv)'' insert ``examining''.
       Page 172, line 12, after ``(v)'' insert ``examining''.
       Page 172, line 14, strike ``and'' at the end.
       Page 172, line 15, after ``(vi)'' insert ``examining''.
       Page 172, after line 20, insert the following:
       (vii) Supporting the development of valid and reliable 
     assessments of young children and program quality, including 
     in domains including language, literacy, mathematics, 
     science, social and emotional development, and approaches to 
     learning, with particular attention to development of 
     assessments of domains for which there are few appropriate 
     assessments, that are--

       (I) developmentally, linguistically, and culturally 
     appropriate for the population served, including children 
     with disabilities and children with limited English 
     proficiency;
       (II) consistent with relevant, nationally recognized 
     professional and technical standards related to the 
     assessment of young children;
       (III) consistent with the guidelines on assessment for 
     improved practice and for accountability in the National 
     Research Council Committee on Developmental Outcomes and 
     Assessments for Young Children; and

       Beginning on page 172, strike line 23 through page 173, 
     line 6, and insert the following:
       (4) Not later than 18 months after the date of the 
     enactment of this Act, conducting a review of the statewide 
     strategic reports developed by the State Advisory Councils on 
     Early Care and Education (established pursuant to section 
     642B(b)(1)(A) of the Head Start Act (42 U.S.C. 
     9837b(b)(1)(A))) and other relevant information (including 
     information reported by States under section 406(b)(9)) to 
     evaluate barriers to increasing access to high-quality early 
     learning programs for low-income children, reporting on the 
     findings of such review, and disseminating relevant findings 
     and best practices.
       Page 174, line 12, before ``progress'' insert ``State's''.
       Page 174, line 24, strike ``providers'' and insert ``early 
     learning programs''.
       Page 175, line 1, strike ``providers'' and insert ``early 
     learning programs''.
       Page 175, line 7, strike ``proficient'' and insert 
     ``proficiency''.
       Page 175, line 10, after ``providers'' insert ``and early 
     learning programs''.
       Page 175, line 18, strike ``appropriate''.
       Page 177, line 19, after ``2017.'' insert ``The authority 
     to award grants under this title shall expire at the end of 
     fiscal year 2017.''.
       Page 178, line 4, after ``2019.'' insert ``The authority to 
     award grants under this title shall expire at the end of 
     fiscal year 2019.''.
       Page 179, strike line 7, and insert ``In this title:''.
       Page 179, line 20, insert ``that has at least one 
     articulation agreement with a 4-year institution of higher 
     education'' after ``district''.
       Page 179, line 22, insert ``that has at least one 
     articulation agreement with an institution of higher 
     education'' after ``school''.
       Page 180, after line 6, insert the following:
       (D) a Tribal College or University;
       Page 180, line 7, strike ``(D)'' and insert ``(E)''.
       Page 180, lines 9 and 10, strike ``or (C)'' and insert 
     ``(C), or (D)''.
       Page 180, line 11, strike ``(E)'' and insert ``(F)''.
       Page 180, beginning on line 15, strike clause (ii) and 
     insert the following:
       (ii) has established and implemented a comprehensive 
     articulation agreement between or among public institutions 
     of higher education in the State that includes outlining the 
     acceptability of community college courses in transfer for 
     credit at public 4-year institutions in the State; and
       Page 180, line 20, strike ``or (D); or'' and insert ``(D), 
     or (E);''.
       Page 180, line 21, strike ``(F)'' and insert ``(G)''
       Page 180, line 22, strike ``(E).'' and insert ``(F); or''.
       Page 180, after line 22, insert the following:
       (H) at the discretion of the Secretary, a private, not-for-
     profit, 2-year institution of higher education in Puerto 
     Rico, the District of Columbia, Guam, the United States 
     Virgin Islands, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, the Republic of the Marshall 
     Islands, the Federated States of Micronesia, or the Republic 
     of Palau.
       Page 182, after line 6, insert the following:
       (12) Tribal college or university.--The term ``Tribal 
     College or University'' has the meaning given such term in 
     section 316 of the Higher Education Act of 1965 (20 U.S.C. 
     1059c).
       Page 182, beginning on line 7, strike subsection (b).
       Page 183, line 8, strike ``(D)'' and insert ``(E)''.
       Page 184, line 9, after ``same'' insert ``specific''.
       Page 184, line 10, after ``Federal'' insert ``grant''.
       Page 185, line 20, strike ``or''.
       Page 185, line 24, strike the period and insert ``; or''.
       Page 185, after line 24, insert the following:
       (3) are focused on serving low-income, nontraditional 
     students (as defined in section 803(j) of the Higher 
     Education Act of 1965 (20 U.S.C. 1161c(j))), who do not have 
     a bachelor's degree.
       Page 187, after line 6, insert the following:
       (4) Exception.--This subsection shall not apply to Tribal 
     Colleges and Universities.
       Page 188, line 19, strike ``and'' after the semicolon.
       Page 188, line 22, strike the period and insert ``; and''.
       Page 188, after line 22, insert the following:
       (10) how the eligible entity will incorporate and support 
     faculty and staff of the institution in meeting the goals of 
     such programs, services, and policies.
       Page 189, line 6, strike ``(D)'' and insert ``(E)''.
       Page 190, line 3, strike ``and''.
       Page 190, line 6, strike the period and insert ``; and''.
       Page 190, after line 6, insert the following:
       (D) library services, including information literacy 
     activities, to--

[[Page 21886]]

       (i) help increase postsecondary degree, certificate, and 
     industry-recognized credential completion rates, particularly 
     with respect to groups underrepresented in higher education; 
     and
       (ii) assist individuals with obtaining and retaining 
     employment.
       Page 190, line 11, insert ``, information literacy,'' after 
     ``skills''.
       Page 191, line 5, strike ``(D)'' and insert ``(E)''.
       Page 191, line 13, strike ``(D)'' and insert ``(E)''.
       Page 191, beginning on line 17, strike ``Improving the 
     timeliness of the process for creating'' and insert 
     ``Creating, in a timely and efficient manner,''.
       Page 191, line 20, strike ``(D)'' and insert ``(E)''.
       Page 192, after line 2, insert the following:
       ``(8) Providing information technology training for 
     students and members of the public seeking to improve their 
     computer literacy and information technology skills through 
     public accessibility to--
       ``(A) community college computer labs; and
       ``(B) information technology training provided on 
     weeknights and weekends by an employee of a community college 
     who is capable of basic computer instruction.''.
       Page 192, lines 6 and 7, strike ``applicable)'' and insert 
     ``applicable to the institution's use of funds provided under 
     this section)''.
       Page 196, line 5, strike ``subsection (e)'' and insert 
     ``subsection (f)''.
       Page 196, beginning on line 25, strike ``subsection (g)'' 
     and insert ``subsection (h)''.
       Page 197, after line 3, insert the following:
       (d) Priority.--In awarding grants under this section, the 
     Secretary shall give priority to applications focused on 
     serving low-income, nontraditional students (as defined in 
     section 803(j) of the Higher Education Act of 1965 (20 U.S.C. 
     1161c(j))), who do not have a bachelor's degree.
       Page 197, line 4, redesignate subsection (d) as subsection 
     (e).
       Page 197, line 9, strike ``subsection (f)'' and insert 
     ``subsection (g)''.
       Page 197, line 14, strike ``subsection (f)'' and insert 
     ``subsection (g)''.
       Page 198, line 7, redesignate subsection (e) as subsection 
     (f).
       Page 198, line 13, strike ``subsection (f)'' and insert 
     ``subsection (g)''.
       Page 198, line 23, strike ``subsection (g)'' and insert 
     ``subsection (h)''.
       Page 199, line 20, redesignate subsection (f) as subsection 
     (g).
       Page 200, line 4, redesignate subsection (g) as subsection 
     (h).
       Page 200, line 8, strike ``section 503(f)(1)'' and insert 
     ``section 503(g)(1)''.
       Page 200, line 13, redesignate subsection (h) as subsection 
     (i).
       Page 200, line 22, strike ``subsection (g)'' and insert 
     ``subsection (h)''.
       Page 201, line 6, redesignate subsection (i) as subsection 
     (k).
       Page 201, line 15, strike ``will'' and insert ``should''.
       Page 201, line 18, strike ``will'' and insert ``should''.
       Page 202, beginning on line 2, strike ``training, high 
     school courses, and postsecondary education courses'' and 
     insert ``courses, including instructional materials, for 
     training and postsecondary education readiness and success''.
       Page 203, line 9, insert ``faculty,'' after ``students,''.
       Page 209, after line 2, insert the following:
       (d) Evaluation.--From the amounts appropriated to carry out 
     this section, the Secretary shall, not later than 30 days 
     after the date of the enactment of this Act, allocate not 
     less than $1,000,000 for the contract with, and report by, 
     the National Research Council required under section 
     1107(c)(2) of the Higher Education Opportunity Act (Public 
     Law 110-315).
       (e) Model to Determine Credit Transferability.--From the 
     amounts appropriated to carry out this section, the Secretary 
     may develop a model, which leverages existing technologies if 
     appropriate, of a service that enables students to determine 
     the transferability of credits between institutions of higher 
     education voluntarily participating in such service.
       Page 209, line 3, redesignate subsection (d) as subsection 
     (f).
       Conform the Table of Contents accordingly.

  The CHAIR. Pursuant to House Resolution 746, the gentleman from 
California (Mr. George Miller) and a Member opposed each will control 
10 minutes.
  The Chair recognizes the gentleman from California.
  Mr. GEORGE MILLER of California. Madam Chair, I yield 2 minutes to 
the gentleman from American Samoa (Mr. Faleomavaega).
  Mr. FALEOMAVAEGA. Madam Chair, I rise today in strong support of H.R. 
3221, the Student Aid and Fiscal Responsibility Act of 2009. I 
especially want to thank Chairman Miller; the ranking member, Mr. 
Kline; and members of the House Education and Labor Committee for 
producing this important bill to reform the student loan program, 
provide modernization, renovation and repair of public school 
facilities, enhance early learning and strengthen our Nation's 
community colleges.
  I also want to commend the chairman of the Higher Education 
Subcommittee, the gentleman from Texas, Mr. Ruben Hinojosa, for his 
leadership and efforts in bringing this legislation to the floor.
  Madam Chair, this bill provides many benefits to our schools and 
families across the United States. Especially in these dire economic 
times, H.R. 3221 provides much-needed assistance, not only to make 
education more affordable and accessible, but also assist us to 
increase the number of degrees and certificate completion rates.
  Madam Chair, I want to thank the authors and sponsors, especially for 
recognizing the value of community colleges throughout our Nation. This 
legislation gives authorization to the Secretary of Education to award 
grants to States and territories for the construction of new community 
college facilities and for the modernization, renovation and 
improvement of existing facilities.
  This is a fantastic bill, and I urge my colleagues to support this 
legislation.
  Mr. KLINE of Minnesota. Madam Chair, I rise in opposition to the 
amendment.
  The CHAIR. The gentleman from Minnesota is recognized for 10 minutes.
  Mr. KLINE of Minnesota. Madam Chair, I have got to admit that this 
manager's amendment does make some helpful changes, and I appreciate 
that. However, it fails to address the fundamental flaws with the 
underlying bill, and for that reason I must oppose it.
  I do appreciate Chairman Miller's willingness to incorporate some 
modest bipartisan changes. For example, Mr. Platts' amendment to assist 
the children of fallen public safety officers.
  And despite these improvements, the bill still imposes a heavy cost 
on Americans today and in the future. It will cost students and schools 
the benefits of choice, competition and innovation. It will cost our 
workforce tens of thousands of jobs, including over 600 jobs in my home 
State of Minnesota and over 1,000 jobs in Chairman Miller's home State 
of California.

                              {time}  1745

  It could cost taxpayers billions of dollars and increased deficit 
spending.
  So, despite the important improvements that the manager's amendment 
makes, I am still unable to support this amendment.
  Madam Chair, I reserve the balance of my time.
  Mr. GEORGE MILLER of California. Madam Chair, I yield 2 minutes to 
the gentleman from Connecticut (Mr. Larson), the distinguished Caucus 
Chair.
  Mr. LARSON of Connecticut. I thank Chairman Miller for yielding.
  Madam Chair, expanding access to an affordable college education and 
job training is one of the surest ways we can build a stronger and more 
competitive American economy for years to come.
  The Student Aid and Fiscal Responsibility Act of 2009 is the single 
largest investment, the single largest investment, in aid to help 
students and families to pay for college in the history of this 
country.
  I commend Chairman Miller, the ranking member, and the entire 
committee, especially in these severe and dire economic times and when 
there's so much stress on working families, to provide this opportunity 
to have America resume the preeminent position that it occupies 
economically, socially, culturally, and militarily in society. This 
means for Connecticut, as Joe Courtney, a member of the committee, 
reminds us, over 277 million additional dollars in funding for Pell 
Grants to thousands of Connecticut students.
  This bill also includes legislation that I've worked on, and I thank 
the chairman and the members for including it, the notion of expanding 
opportunity to our community colleges, to expand their mission, an 
opportunity to reach out in these economic times for people who seek to 
retrain themselves and utilize the opportunities that our community 
colleges represent.
  Community colleges reach every corner of this country with over 1,100 
in

[[Page 21887]]

urban, rural, and suburban settings. This is vitally important in this 
economy and as we face additional global challenges that we are able to 
retrain our workforce in a manner that allows them to matriculate into 
the job networks that will be created from the community college effort 
combining with the entrepreneurial and private sector to create the 
jobs that we need.
  I commend Chairman Miller for this effort and urge support of this 
bill.
  Mr. KLINE of Minnesota. Madam Chair, at this time, I yield such time 
as he may consume to the ranking member on the Higher Education 
Subcommittee, the gentleman from Kentucky (Mr. Guthrie).
  Mr. GUTHRIE. Madam Chairman, this amendment may do a number of 
positive things to improve the bill, but at its heart I still have 
significant concerns.
  Specifically, I have concerns about the impact of this bill on the 
deficit and jobs all across the country. We have heard from the 
Congressional Budget Office since the introduction of this bill, since 
the bill was originally scored, that there are a number of hidden costs 
included. No matter how we look at it, this bill will not save $10 
billion over 10 years. In fact, we believe that the cost of this bill 
is at least $15 billion, a $15 billion cost that will go towards the 
deficit, not towards deficit reduction.
  Finally, I am very concerned about the implication on the 
unemployment rate in my State. We are federalizing one more private 
sector program and eliminating all the good work being done throughout 
the country by the private sector. This could mean as many as 30,000 
jobs being lost nationwide, approximately 500 in my State, the 
Commonwealth of Kentucky, all because we decided to kill this program 
rather than figure out a viable solution.
  The services being provided by guarantee agencies and lenders will 
not be continued at nearly the same level when these entities are 
required to enter into contracts with the Federal Government. We have 
already seen the impact of these contracts. Earlier this year, the 
Department of Education contracted out the servicing function of the 
Direct Loan Program for four servicers. The low contract price ensured 
that most of these servicers will only be able to provide bare-bones 
compliance with the law, not the robust services that were previously 
provided by the private sector.
  In short, I am very concerned about the true impact of this bill. 
Unfortunately, we will not recognize the impact until this bill has 
been implemented, and then it may be too late.
  I urge my colleagues to oppose the amendment.
  Mr. GEORGE MILLER of California. Madam Chair, I yield 1 minute to the 
gentleman from Rhode Island (Mr. Kennedy).
  Mr. KENNEDY. Madam Chair, as we know from legislation that this 
committee worked on many years ago called the Foundations for Learning 
program as part of the Elementary and Secondary Education Act, social 
and emotional development are as important as anything in the early 
part of a child's life. Importantly, in this piece of legislation, we 
recognize these same important facts, and in this legislation we 
reflect these findings by acknowledging the importance of intervening 
early in a child's life who has had domestic violence exposure, has had 
homelessness exposure, has had their parents exposed to mental illness. 
Intervention in these children's lives makes an enormous difference in 
their social/emotional development and in their educational abilities 
later on in life. For these reasons, I think this is an important piece 
of legislation that needs to be adopted.
  I appreciate the chairman for acknowledging these facts and 
incorporating this legislation into the body of his bill.
  Mr. KLINE of Minnesota. Madam Chair, I reserve the balance of my 
time.
  Mr. GEORGE MILLER of California. Madam Chair, I yield 1 minute to the 
gentlewoman from California (Ms. Woolsey), a member of the committee.
  Ms. WOOLSEY. Madam Chair, I rise in strong support of H.R. 3221, the 
Student Aid and Fiscal Responsibility Act of 2009, because it invests 
in the future of our Nation, making college a reality for more students 
by investing in Pell Grants and programs that will ensure improved 
graduation rates and the renewed investment of our Nation's future.
  Creating the American Graduation Initiative was one of the most 
important parts because it will help community colleges find innovative 
ways to improve the developmental education and job skills training 
that so many students and workers need.
  In the end, we are investing in our future. Twenty-five percent of 
our population are the young people of this Nation. One hundred percent 
of our future is made up of those individuals. With H.R. 3221, we are 
ensuring that we will have a better future because they will have a 
better future.
  I request that every Member of this Congress vote for our kids and 
our future.
  Mr. KLINE of Minnesota. I continue to reserve the balance of my time.
  Mr. GEORGE MILLER of California. Madam Chair, I yield 1 minute to the 
gentlewoman from Ohio (Ms. Sutton).
  Ms. SUTTON. Madam Chair, I rise in strong support of the Student Aid 
and Fiscal Responsibility Act, and I want to commend my friend, the 
chairman, George Miller, for his great work and leadership on this and 
so many issues.
  Investing in education is one of the most important things we can do 
to grow and strengthen our workforce and secure our well-being as a 
Nation. This bill makes historic investments in our economic future by 
improving early education opportunities and making college more 
affordable and all at no taxpayer expense.
  The economic downturn has made a growing college affordability crisis 
worse for America's students and families, but this bill will help our 
neediest students and their families by increasing the maximum annual 
Pell Grant scholarship, and it targets $6.8 billion to community 
colleges, like Lorain County Community College in my district. And this 
bill transforms the way our student loan programs operate, guaranteeing 
our students access to low-cost loans irrespective of market 
fluctuations.
  By cutting out the middleman, this legislation will save taxpayers 
$87 billion over 10 years. It pays for itself with $77 billion and 
returns $10 billion to deficit reduction.
  Mr. KLINE of Minnesota. I continue to reserve the balance of my time.
  Mr. GEORGE MILLER of California. Madam Chair, I yield myself the 
balance of my time.
  Madam Chair, just to quickly run through the manager's amendment, in 
addition to the technical changes, my amendment would also refine 
provisions regarding grants authorized under title I of the bill. It 
ensures that services for veterans are coordinated with those existing 
under current law, and it provides educational financial assistance for 
children of public safety officers and other first responders killed in 
the line of duty. It creates a program to promote teacher excellence, 
and it requires the Secretary to consider a State's financial 
commitment to early learning when evaluating certain grant renewals and 
specifies that Tribal Colleges and Universities are eligible to receive 
American Graduation Initiative grants.
  I would urge all the Members to support the manager's amendment.
  I would also like to draw attention to one part of this legislation, 
and that is really the unprecedented $10 billion investment to make 
community colleges part of our economy's recovery.
  For years, business leaders have told us that there weren't enough 
workers with the knowledge and the expertise for their specific 
industries. Community colleges do and can play an even more significant 
role in addressing this shortage. This bill will help us build a 21st 
century workforce by strengthening partnerships among community 
colleges, businesses, and job training programs that will align 
community college curricula with the needs of high-wage, high-demand 
industries.
  It will help provide community colleges with the tools to replicate 
programs that are successfully educating

[[Page 21888]]

and training students and workers for these skilled jobs. And it will 
fulfill an important priority for the business community, which has 
continually understood the value community colleges have in training 
highly skilled workers and meeting local employment needs as economies 
change and move from one kind of economy to another. That's why this 
historic initiative has strong support from the business community, 
including the Business Roundtable.
  The Business Roundtable recently wrote to me and to the members of 
the committee, ``On behalf of the Business Roundtable, I want to 
commend you for inclusion of the Community College Initiative in H.R. 
3221. This Community College Initiative and the President's American 
Graduation Initiative reflect the fact that community colleges have 
emerged as important institutions where acquiring skills for new jobs 
and new careers will take place . . . That is why the Community College 
Initiative is so important. For community colleges to reach their 
potential and become more effective, they need to increase graduation 
rates, adopt innovations to help them better serve their customers, and 
develop partnerships and closer cooperation with the private sector.''
  For that reason, they support that provision of the bill, and I'm 
delighted we worked long and hard on both sides of this committee with 
the business community to try to develop a program to strengthen our 
community colleges.
  Madam Chair, I yield back the balance of my time.
  Mr. BARROW. Madam Chair, I rise today to express my gratitude to the 
Chairman of the Committee on Education and Labor, Chairman Miller, and 
Ranking Member Kline, for working with me to include an amendment I 
offered in the Manager's Amendment of this bill.
  I believe The Student Aid and Fiscal Responsibility Act will make 
college education more affordable for more American students than ever 
before, transform early education opportunities, and ultimately help 
build a stronger, more competitive American economy for the future, 
while saving taxpayers money.
  For the reforms in this bill to be effective, it's critical that our 
colleges and universities have the right tools to make these reforms as 
successful as possible. My amendment requires the Secretary of 
Education to provide funding and technical assistance to institutions 
of higher education in operating the Direct Loan program, including 
assisting institutions with the transition into the program.
  Right now, college costs more than ever, while families are 
struggling more than ever. Allowing our students to graduate with a 
better education and less debt is the best way to make sure that 
American workers remain competitive long into the future.
  Mr. KLINE of Minnesota. Madam Chair, I want to thank Chairman Miller 
for the improvements that his manager's amendment has made to the bill.
  As I stated earlier, the fundamental flaws with this legislation 
still remain, even though there are parts, which as he correctly 
stated, that some members of the community certainly support, some 
members of the business community. Many of us support, for example, Mr. 
Platts' amendment to assist the children of fallen public safety 
officers, and I'm glad those are included in the manager's amendment. 
But it doesn't change the fact that the underlying bill is still flawed 
public policy.
  We have heard again and again from speakers tonight that this is 
going to put money back into the Treasury and reduce the deficit, and 
yet we have provided information from the Congressional Budget Office 
that shows that's not the case. This is going to increase the deficit; 
it's going to increase the debt.
  I was staggered the other day, Madam Chair, to look and see that we 
are now projecting, with the latest numbers from the White House, that 
within the next 10 years, the national debt will have grown to $21 
trillion. And this bill, the underlying bill, adds new programs, 
programs that will be chronically underfunded, will nevertheless 
compete for money, will grow that deficit spending. So while I 
appreciate the improvements that the manager's amendment has made, I 
still must oppose this.
  Madam Chair, I yield back the balance of my time.

                              {time}  1800

  The CHAIR. The question is on the amendment offered by the gentleman 
from California (Mr. George Miller).
  The amendment was agreed to.


                Amendment No. 2 Offered by Mr. Hoekstra

  The CHAIR. It is now in order to consider amendment No. 2 printed in 
House Report 111-256.
  Mr. HOEKSTRA. Madam Chair, I have an amendment at the desk.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 2 offered by Mr. Hoekstra:
       Strike title III of the Bill, and redesignate titles IV and 
     V as titles III and IV, respectively.
       Redesignate sections 401 through 409 as sections 301 
     through 309, respectively.
       Redesignate sections 501 through 505 as sections 401 
     through 405, respectively.
       Page 144, line 23, strike ``section 403'' and insert 
     ``section 303''.
       Page 145, line 1, strike ``section 404'' and insert 
     ``section 304''.
       Page 145, line 4, and page 174, lines 3 and 14, strike 
     ``section 403(c)(3)'' and insert ``section 303(c)(3)''.
       Page 145, line 17, and page 174, line 5, strike ``section 
     405'' and insert ``section 305''.
       Page 147, line 4, strike ``404'' and insert ``304''.
       Page 148, line 10, strike ``section 403(f)'' and insert 
     ``section 303(f)''.
       Page 150, line 15, strike ``section 405(2)'' and insert 
     ``section 305(f)''.
       Page 151, lines 4 and 25, page 153, lines 8 and 12, page 
     162, lines 2 and 17, page 163, line 1, page 166, lines 18 and 
     23, page 168, lines 4 and 19, and page 175, line 25, strike 
     ``section 402(a)'' and insert ``section 302(a)''.
       Page 151, line 21, strike ``section 405(1)'' and insert 
     ``section 305(1)''.
       Page 153, line 13, and page 162, line 6, strike ``section 
     402(d)'' and insert ``section 302(d)''.
       Page 168, lines 10, 15, and 21, page 169, line 2, and page 
     170, line 7, strike ``section 402(b)'' and insert ``section 
     302(b)''.
       Page 168, line 17, strike ``section 402(c)(3)'' and insert 
     ``section 302(c)(3)''.
       Page 170, line 11, strike ``section 402(c)(1)'' and insert 
     ``section 302(c)(1)''.
       Page 178, line 9, strike ``503'' and insert ``403''.
       Page 178, line 12, strike ``504'' and insert ``404''.
       Page 178, lines 15 and 18, strike ``section 505'' and 
     insert ``section 405''.
       Page 178, beginning on line 20, strike ``sections 503 and 
     504'' and insert ``sections 403 and 404''.
       Page 179, line 3, strike ``sections 503 and 504'' and 
     insert ``sections 403 and 404''.
       Page 183, line 8, strike ``section 502(a)(3)'' and insert 
     ``section 402(a)(3)''.
       Page 184, line 6, and page 194, line 10, strike ``section 
     501(b)(1)'' and insert ``section 401(b)(1)''.
       Page 188, line 15, strike ``section 505(b)'' and insert 
     ``section 405(b)''.
       Page 189, line 6, and page 191, lines 5, 13, and 20, strike 
     ``section 502(a)(3)'' and insert ``section 402(a)(3)''.
       Page 196, line 2, and page 200, line 1, strike ``503(i)'' 
     and insert ``403(i)''.
       Page 200, line 8, strike ``section 503(f)(1)'' and insert 
     ``section 403(f)(1)''.
       Conform the table of contents accordingly.

  The CHAIR. Pursuant to House Resolution 746, the gentleman from 
Michigan (Mr. Hoekstra) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Michigan.
  Mr. HOEKSTRA. Madam Chair, the Student Aid Fiscal Responsibility Act 
that is in front us today will authorize $6.6 billion in new mandatory 
taxpayer dollars to create three Federal school construction programs 
for elementary and secondary schools.
  What my amendment will do is strike these new government programs 
that would nationalize the school construction industry and direct the 
savings toward deficit reduction.
  You know, in the years I have been in Congress, one of the things 
that we continue to see over the years is the continued expansion of 
the role of the Federal Government in K-12 education. We saw the most 
massive expansion in 2001, the passage of No Child Left Behind. No 
Child Left Behind has left a tremendous number of mandates, increased 
costs, and little improvement in schools, in children's performance 
around the country.
  Now, rather than giving back and yielding control for our kids' 
education back to parents, back to local schools and back to States, 
again, we are having another massive expansion of the Federal 
Government's involvement in

[[Page 21889]]

K-12 education, this time in school construction.
  I am sure the arguments will be: but we need to help the schools. We 
need to help the States. We need to build them and give them the money 
to build new schools.
  Excuse me, where does this money come from? Well, some of this money, 
if not all of it, will be deficit spending which States can't do. But 
in reality, if it is deficit spending, it is our kids and grandkids 
that will be paying for it. And if it is money that we collect in 
taxes, it is going to be money that comes from the States, comes from 
individuals in our local communities, comes to Washington, and then we 
will tell them how they can spend it. There are 27, at last count 27, 
directives as to how States and local school districts will be able to 
spend their own money.
  School districts must ensure that a certain percentage of the school 
construction materials meet green standards. School districts must 
compile a report describing the projects funded under the bill and 
seven other reporting requirements. School districts should educate 
students about the school construction being constructed at their 
school. I am assuming if they are going to have to be required to teach 
their students, there is going to have to be some reporting requirement 
saying I educated my kids at my school about what this project is 
about, and they are going to fill it out and send it to the State and 
send it to Washington.
  Meaning that for every construction dollar that we spend, maybe 60-65 
cents of it will actually be spent on construction. The other 35 to 40 
cents of that dollar will be spent on reporting requirements, applying 
for it, meeting Federal requirements, and those types of things
  This is a bad idea. We will not end up building more schools. We will 
not end up having more construction; we will have less construction 
because Federal bureaucracy and Federal bureaucrats will end up 
siphoning a lot of this money for their purposes to make sure that the 
local school districts do what Washington bureaucrats want them to do 
and not what needs to be done in their local school districts.
  This is a bad idea. I encourage my colleagues to support this 
amendment and reduce the deficit, take some of the burden off our kids 
and grandkids in the future.
  I reserve the balance of my time.
  Mr. GEORGE MILLER of California. I rise in opposition to the 
amendment.
  The Acting CHAIR (Mr. Kissell). The gentleman from California is 
recognized for 5 minutes.
  Mr. GEORGE MILLER of California. I yield myself 2 minutes.
  What this amendment would do, while the author has talked about a lot 
of other things he doesn't like in the bill, this amendment would 
strike the school construction money that is in this legislation for 
elementary, secondary, and for the community colleges. I think this is 
a very important part of this legislation. Many, many Members have 
supported the efforts that we have had before to try to have the 
Federal Government help local communities address school construction 
needs.
  When we see now that the community colleges are under tremendous 
pressure because of the economic dislocation from the recession that 
has taken place and continues to take place in so many communities and 
so many families, as people are going back to the schools, we recognize 
the shortage of facilities that are there and what we are saying is 
this time we will lend a hand to those community colleges and to those 
K-12, elementary and secondary school districts so that they can 
modernize their school facilities and make the investments that will 
save them money.
  As we see reports of schools making investments in solar and 
insulation and energy-efficient buildings, what we see is a dramatic 
drop in the ongoing operating costs of those schools in terms of the 
utility bills that are really quite dramatic. We ought to do what we 
can to facilitate. We have the opportunity with this legislation to 
help facilitate local school districts meeting that demand.
  This also comes at an important time for these local school districts 
because, as you know, they are under siege from the loss of revenues in 
many local districts because of the economic downturn. In some cases 
they have had to postpone these projects even though they are 
desperately needed. They have had to postpone these modernizations that 
are desperately needed. And we know the fact that when children have 
the availability of a clean, well-lit place, modern facilities, they in 
fact do better in school. It is a statement of values and also a 
statement about their community and their children. I would hope we 
would vote against this amendment.
  I reserve the balance of my time.
  Mr. HOEKSTRA. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, Washington has helped enough. My local school districts 
are saying: Stop, we don't need more of Washington's help. You gave us 
No Child Left Behind with great fanfare, promises of all of this money, 
and all we got were rules and regulations which are taking valuable 
time and resources away from educating our kids and putting it into 
bureaucracy and trying to follow ill-advised guidelines, mandates, and 
directives from Washington, D.C.
  They say: Stop, we don't need any more of this Washington help where 
you come into our school districts, where you come into our 
communities. And if you are going to pay for these bills, which most 
likely will not be paid for, but if they were, you come into our 
communities and you extract $6 billion out, and then you force us to 
apply to get that money back knowing that the money will be 
appropriated or allocated by who has power in Washington, D.C. and who 
has the quote/unquote ``most influence'' and it will be distributed 
unfairly.
  They don't need that kind of help anymore where we take their money, 
allocate it back to them after they have applied for it, tie all sorts 
of mandates and restrictions to it so we shrink the purchasing power of 
that dollar. And then we have the Federal Government come in, this 
wonderful Department of Education come in, and they will audit us to 
make sure that we spend the money exactly the way they told us to spend 
it.
  That kind of help is no longer helping our kids. It never did help 
our kids. We are failing our kids with this legislation. We are 
shrinking the purchasing power of education dollars, not enhancing it. 
This kind of Washington help needs to stop.
  Mr. GEORGE MILLER of California. Mr. Chairman, I yield myself 15 
seconds.
  We should not punish local school districts or schoolchildren because 
a Republican President, George Bush, broke his promise to this country, 
to families, and to students and teachers when he failed to deliver on 
his promise of 77 billion additional dollars that school districts had 
to make up while living under No Child Left Behind. Let's not punish 
our kids today because a President could not keep his promise.
  I yield the balance of my time to the gentleman from New York (Mr. 
Bishop).
  Mr. BISHOP of New York. I rise in opposition to the amendment. Let me 
make a couple of points.
  First, the section that the amendment seeks to strike is essentially 
a bill passed by the House earlier this year with broad bipartisan 
support, the 21st Century Green High-Performing Public Schools 
Facilities Act. It passed with very good bipartisan support. We are 
seeking simply to fund that bill in part.
  It is estimated that the backlog of unmet needs for K-12 educational 
facilities amounts to some $255 billion. This is a very modest effort 
on the part of the Federal Government to help local school districts 
deal with that need.
  I was frankly surprised to hear the gentleman from Michigan say that 
his school districts and his school superintendents are saying enough. 
I have had the exact opposite experience. I would say that rarely does 
a week go by that some school superintendent or

[[Page 21890]]

some school board members do not come to my office seeking Federal help 
with their facility's needs. Their budgets are strained, particularly 
in these tough economic times. They have real bricks-and-mortar needs. 
They are unable to address them without hurting their academic 
programs, and they are seeking the help of the Federal Government, 
quite the contrary to the experience that the gentleman from Michigan 
has had.
  So I urge we reject this amendment, and I would urge that we support 
the facilities needs of K-12 education as well as our community 
colleges.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Michigan (Mr. Hoekstra).
  The question was taken; and the Acting Chair announced that the noes 
appeared to have it.
  Mr. HOEKSTRA. Mr. Chairman, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Michigan 
will be postponed.


                 Amendment No. 3 Offered by Mr. Cardoza

  The Acting CHAIR. It is now in order to consider amendment No. 3 
printed in House Report 111-256.
  Mr. CARDOZA. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 3 offered by Mr. Cardoza:
         Page 185, line 20, strike ``or''; on line 24, strike the 
     period and insert ``; or''; and after line 24, insert the 
     following new paragraph:
         (3) are community colleges located in areas with high 
     unemployment rates.

  The Acting CHAIR. Pursuant to House Resolution 746, the gentleman 
from California (Mr. Cardoza) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from California.
  Mr. CARDOZA. Mr. Chairman, I yield myself such time as I may consume.
  California community colleges recently announced that their 
enrollment for the 2008-2009 academic year increased at the system's 
110 colleges in California by more than 135,000 students. Extremely 
high unemployment rates and restrictive admissions at the State's 4-
year college systems have led to record numbers of students seeking 
degrees and certificates. This trend in increasing enrollments is being 
mirrored across our Nation during these tough economic times. While 
increased enrollments in higher education programs is to be applauded, 
there is also some concern about our State's ability to manage the 
impact of enrolling so many new students.
  California's community colleges are dealing with nearly $1 billion in 
cuts as a result of the State's budget crisis this year. The shortfall 
in funding is placing stress on a system that is already stretched to 
capacity. H.R. 3221 will provide critical funding opportunities for 
those very community colleges to better serve their students, filling a 
funding gap most States are currently unable to meet.
  Providing access to affordable higher education, especially at the 
community college level, is going to be essential to the recovery of 
congressional districts like mine that have extremely high unemployment 
rates. As I have said many times, this economic crisis has hit my 
district particularly hard. In July, the Bureau of Labor Statistics 
ranked the metropolitan area of Merced, California, with the fourth 
highest unemployment rate in the Nation at 17.6 percent. Two other 
metropolitan areas in my district, Modesto and Stockton, had 
unemployment rates of 16.3 and 16.0 respectively. All three areas are 
well over the national average unemployment rate of 9.7.
  My amendment to H.R. 3221 simply provides community colleges serving 
in areas with high unemployment rates, higher than the national average 
like my district, have priority consideration when applying for this 
grant money. Investing in our community college system, especially the 
ones in high unemployment areas above the national average, is a 
critical part of any economic recovery plan; and it will allow our 
Nation to emerge from this downturn empowered with both the education 
and workforce skills needed to succeed in the 21st century.
  I ask my colleagues on both sides of the aisle to support this 
commonsense amendment.

                              {time}  1815

  I yield to the chairman.
  Mr. GEORGE MILLER of California. I thank the gentleman for yielding. 
I rise in support of his amendment. I think he makes a very important 
point in terms of the priority that we have to give to those areas that 
have really received very harsh treatment in this economic dislocation.
  We know and we believe and the President has made it clear that 
community colleges are one of the engines to change those outcomes and 
to reinvigorate those local economies.
  So I strongly support the gentleman's amendment and thank him for 
offering it.
  Mr. CARDOZA. Resuming, Mr. Chair, I would thank the chairman for his 
work on this bill. It's a fine piece of legislation, and I thank him 
for supporting my amendment.
  Mr. Chairman, as Merced College, Modesto Junior College, and San 
Joaquin Delta College work hard to retain our workforce and educate the 
next generation of Americans, they're building a new foundation for 
hope and prosperity across the country. Investing in these schools and 
other institutions in these areas suffering from high unemployment 
rates is critical to the future success of our country. Again, I urge 
the adoption of my amendment.
  I yield back the balance of my time.
  Mr. KLINE of Minnesota. Mr. Chairman, I claim time in opposition to 
the amendment, although I don't oppose the amendment.
  The Acting CHAIR. Without objection, the gentleman from Minnesota is 
recognized for 5 minutes.
  There was no objection.
  Mr. KLINE of Minnesota. Thank you, Mr. Chairman. I just wanted to 
take a moment, reflecting on the debate that we just had with Mr. 
Hoekstra's amendment, because it strikes to the underlying bill. And 
that's the problem here: Not this amendment--the underlying bill.
  The chairman of the committee, the distinguished chairman, pointed 
out that there was a broken promise. And I'm sad to say it was entirely 
predictable that President Bush would be blamed for breaking a promise. 
But I would point out that we have had Presidents going back for years 
and Congresses going back for years and this Congress today that is 
failing to live up to a promise made many years ago, and that's to 
provide its share, its full funding of special education under IDEA.
  And so whether we're talking about green, high-performing schools as 
a new program or many of the new programs introduced in this 
legislation, it seems to me we ought to fulfill that promise first 
rather than starting new programs which will be chronically underfunded 
and will be competing for that essential funding under IDEA.
  So, again, the problem here is not this amendment. I'm going to 
support this amendment. It's the underlying bill.
  I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from California (Mr. Cardoza).
  The amendment was agreed to.


           Amendment No. 4 Offered by Mrs. Mc Morris Rodgers

  The Acting CHAIR. It is now in order to consider amendment No. 4 
printed in House Report 111-256.
  Mrs. McMORRIS RODGERS. I have an amendment made in order under the 
rule.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 4 offered by Mrs. McMorris Rodgers:
       Page 118, beginning on line 8, strike section 331 and 
     insert the following:

     SEC. 331. IMPERMISSIBLE USES OF FUNDS AND CONCURRENT FUNDING.

       (a) In General.--No funds received under this subtitle may 
     be used for--
       (1) payment of maintenance costs, including routine repairs 
     classified as current expenditures under State or local law;

[[Page 21891]]

       (2) stadiums or other facilities primarily used for 
     athletic contests or exhibitions or other events for which 
     admission is charged to the general public;
       (3) improvement or construction of facilities the purpose 
     of which is not the education of children, including central 
     office administration or operations or logistical support 
     facilities; or
       (4) purchasing carbon offsets.
       (b) Funding Under Other Acts.--Funds made available under 
     this title shall not be used to assist any local educational 
     agency that receives funding for the construction, 
     modernization, renovation, and repair of facilities under the 
     American Recovery and Reinvestment Act of 2009.
       Conform the table of contents accordingly.

  The Acting CHAIR. Pursuant to House Resolution 746, the gentlewoman 
from Washington (Mrs. McMorris Rodgers) and a Member opposed each will 
each control 5 minutes.
  The Chair recognizes the gentlewoman from Washington.
  Mrs. McMORRIS RODGERS. I yield myself such time as I may consume. The 
amendment that I'm offering today is all about good, responsible 
government practices--it ensures that Federal resources, limited as 
they are, are directed to those areas that have the greatest need for 
construction funds.
  This last February, we approved the stimulus package, $787 billion. 
More than $53 billion went to the State Fiscal Stabilization Fund, 
which funds States and localities to use the funds for any activity 
under ESEA, IDEA, the Carl Perkins Career and Technical Education Act, 
the Adult and Family Literacy Act, or for modernization, renovation, or 
repair of public school facilities.
  I was one of a number of Members concerned about the prospect of 
creating a nationalized school construction fund, particularly in light 
of reports indicating the lack of academic achievement made over the 
last decade by our middle and high school students. For example, the 
2006 Program for International Assessment puts United States 15-year-
olds in the bottom quarter of participating OCED nations in math 
literacy and in the bottom third in science literacy.
  This is unacceptable. These reports demonstrate that there's more to 
be done to improve and strengthen the education that our students are 
receiving, especially as it relates to the Nation's future 
competitiveness in the global market.
  I do not believe that a federalized school construction program, one 
with limited transparency and accountability, is the solution to the 
problem.
  Let me be clear. There's no doubt that certain schools are in dire 
need of renovation and repair. We can assist them in making the 
necessary repairs in order to create safe and secure learning 
environments. However, once secure funds have been directed to one area 
for construction and repair, responsible governance tells us that any 
remaining funds should go to those areas that have not yet received the 
funding but have a demonstrated need.
  My amendment accomplishes this by restricting areas that have already 
received construction funds through the stimulus package from receiving 
funds authorized by this bill for construction. H.R. 3221 already 
provides a limitation on construction funding for community colleges 
that have received the stimulus dollars. It should be no different for 
elementary and secondary schools--sending a much needed message that 
learning should be a priority, especially in the formative years of a 
child's education.
  I urge my colleagues to recognize the need for responsible governance 
by supporting this amendment.
  I reserve the balance of my time.
  Mr. GEORGE MILLER of California. I rise in opposition to the 
amendment.
  The Acting CHAIR. The gentleman from California is recognized for 5 
minutes.
  Mr. GEORGE MILLER of California. I yield myself 1 minute.
  This is really sort of a redo of where we were with the previous 
amendment to strike the construction funds that would be available--in 
this case, the K-12. The gentlewoman's amendment, as it's drafted, 
would, if they receive those funds under the Recovery Act, of which one 
of the allowable costs originally started out with the line item for 
construction, it became an allowable cost--if they received any of 
those funds, they would be ineligible to receive these construction 
funds.
  The fact of the matter is the record is starting to develop that very 
few if any of the school districts were able to use those funds for 
construction because of the fact of the cuts that took place in almost 
every State across the country where those funds have been used to try 
to mitigate the firing of teachers, to continue to try to develop a 
reasonable class size, and all of the other costs that were going as 
local school districts were really very hard hit in this economic 
recovery from the downturn in local revenues, in State revenues. And 
that's why this amendment is necessary.
  The opposition to this amendment is important so that these school 
districts can receive these funds to build clean, modern, and energy-
efficient facilities.
  I yield 3 minutes to the gentlewoman from Texas (Ms. Jackson-Lee).
  Ms. JACKSON-LEE of Texas. I thank the distinguished chairman and I 
thank him for his stellar leadership and an overwhelming change in the 
way we think about education.
  I rise to oppose the present amendment, but support the underlying 
bill. This is a response to the competitiveness of the world. Each and 
every district that is represented here in this body, rural and urban, 
large and small, clamors for more education, particularly secondary 
education, higher education.
  In my own district alone, as it relates to Pell Grants, 23,084 
students will be impacted, with as much as $110 million in new Pell 
dollars that will help not only the Nation's colleges but, in my 
instance, the 18th Congressional District.
  I happen to have a district that has any number of colleges, both 
private and public, large and small, research and nonresearch, students 
coming from all economic backgrounds, and I can assure you the 
importance of Pell Grants is without comparison.
  Then I also represent an area that was hit by Hurricane Ike 1 year to 
the date last week, still suffering from the lack of infrastructure, 
schools that have been destroyed. And the $359 million that will come 
in construction dollars to Texas, K-12, is going to be a remarkable 
change for the people of Galveston or the people on the gulf who are 
impacted by this devastating hurricane.
  In addition, I think it's important to note a full $87 billion in 
savings. Competition in place. Anyone who wants to provide a student 
loan--private bank, State bank--can provide it. But we are providing 
for the hardworking, taxpaying families additional dollars and a fair, 
even playing field. That's something to celebrate.
  We're investing $3 billion to bolster college access and completion 
support. Crucial issues. I happen to have a very large community 
college system. I'm gratified that language is in here specifically to 
enhance community college.
  Our community college system is growing with 60,000 students-plus. 
This is the first step. Go to a community college, be you someone who 
is working, someone who is raising children, someone who is going back 
to school, a military person who is retired or has just gotten out of 
the service, working with the GI Bill--you now have an opportunity to 
be able to go to a college that has reinforced dollars.
  This is a bill that cuts at America's competitiveness. The world is 
getting smaller. People know science and math. They are looking to be 
inventive. And that means in order to create an economic engine for 
this country, we have got to educate our population.
  People are clamoring for education. As I indicated, all walks of 
life, retirees, people who are changing jobs, people who have been laid 
off and fired. This is a new step.
  So let me just say I want to applaud what we are doing here today, 
not because Members are doing it, but because we're changing lives. I 
ask my colleagues to support this legislation.
  Mrs. McMORRIS RODGERS. This amendment is about responsibility and

[[Page 21892]]

recognizing that we have limited dollars. We just passed $53 billion in 
the stimulus package that includes funding made available for school 
construction.
  There are a lot of priorities within our education system. I, too, am 
very concerned about competitiveness--about America's competitiveness, 
about our future, what's happening in our schools. And in Congress we 
need to make sure that we're getting the resources where they are 
needed so that our kids can compete, so that our students can succeed. 
That's not happening. Our students are not competing effectively in the 
world, in the global environment right now, in the global economy, and 
we're falling behind. I quoted the numbers for math and science.
  What this is doing is just saying that the money that will be made 
available will be made available to school districts that didn't 
receive the school construction money in the stimulus package. In my 
mind, it prevents double dipping. It will allow more schools to 
possibly access the school construction dollars, and it will protect 
other dollars to be used for other priority projects within our 
education system.
  I yield back the balance of my time.
  Mr. GEORGE MILLER of California. I yield myself the balance of my 
time.
  It's a very clever amendment. What it says is, if you got money from 
the stimulus package, you cannot get money for school construction. 
Mind you, the money in the stimulus package did not provide for school 
construction. It provided it as an allowable expense. But whether you 
used it or didn't, under this legislation you wouldn't get it because 
it was an allowable expense under that legislation.
  The fact of the matter is that we have far too many children in this 
country and every region of this country going to antiquated, outdated, 
unsafe schools. And the backlog for school modernization, for energy 
modernization, for trying to clean schools up and repair them and 
renovate them is as long as the road from here to the West Coast.
  And the fact of the matter is that this government has the ability to 
help those schools to do that. So that those children that you're 
worried about learning, we know that they learn better if they're in a 
clean, well lit, warm place to learn, as opposed to a place where the 
rain is coming through, the lavatories don't work, the windows are 
broken. That sounds like that's extreme. No, that's the case in far too 
many schools all across this country in all different settings.
  We should reject this amendment. I would urge my colleagues to vote 
``no.''

                              {time}  1830

  The Acting CHAIR. The question is on the amendment offered by the 
gentlewoman from Washington (Mrs. McMorris Rodgers).
  The question was taken; and the Acting Chair announced that the noes 
appeared to have it.
  Mr. KLINE of Minnesota. Mr. Chairman, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentlewoman from Washington 
will be postponed.


            Amendment No. 5 Offered by Ms. Pingree of Maine

  The Acting CHAIR. It is now in order to consider amendment No. 5 
printed in House Report 111-256.
  Ms. PINGREE of Maine. Mr. Chair, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 5 offered by Ms. Pingree of Maine:
       Page 109, line 24, strike ``and''.
       Page 110, line 5, strike the period at the end and insert 
     ``; and''.
       Page 110, after line 5, insert the following:
       ``(C) local educational agencies serving geographic areas 
     that contain a military installation selected for closure 
     under the base closure and realignment process pursuant to 
     the Defense Base Closure and Realignment Act of 1990 (part A 
     of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note).''.

  The Acting CHAIR. Pursuant to House Resolution 746, the gentlewoman 
from Maine (Ms. Pingree) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentlewoman from Maine.
  Ms. PINGREE of Maine. Thank you very much, Mr. Chair.
  In addition to making landmark investments in higher education and 
student financial aid, H.R. 3221 provides over $4 billion in funding 
for K-12 public schools. This funding is critical to ensure that 
students grow up and learn in healthy, safe environments that maximize 
their chances to receive a quality education and graduate from high 
school. This is particularly challenging for areas that are facing 
extraordinary economic hardship. Public schools in these areas need 
additional attention and support to make sure these students have every 
opportunity to succeed.
  H.R. 3221 currently sets aside $200 million in reserve funding for K-
12 schools that are located in areas suffering from a natural disaster 
or severe economic distress. However, it does not recognize areas 
affected by the closure of a military base due to Base Realignment and 
Closure, the BRAC process, as eligible for this emergency educational 
funding. A base closure, such as the closure of the Brunswick Naval Air 
Station in my district, is a devastating event in a community. Schools 
in these communities need special attention, because unlike areas hit 
by economic recession, the closure of a base means the overnight 
disruption of the local economy. With a dramatic loss of taxpayers and 
Federal Impact Aid funding, which disappears 1 year after the students 
leave, BRAC communities are left without a dependable source of funding 
for critical school repairs.
  In Brunswick, Maine, in my district, the closure of the once vibrant 
Brunswick Naval Air Station will result in an estimated 7,000 total 
jobs lost, a reduction in 10 percent of the public school population, 
and millions of dollars in lost economic activity, including $1 million 
in school funding that will be lost.
  And my district is not alone. The closure of the Naval Air Station in 
Corpus Christi, Texas, will result in over 7,000 military and civilian 
jobs lost from that area. In fact, the 2005 BRAC resulted in the 
closure of major Army, Navy and Air Force bases in States across the 
country, including Maine, Georgia, New Jersey, New York, Virginia, 
Pennsylvania and Texas. Mr. Chair, schools in communities affected by 
these closures would all be eligible to benefit from much-needed 
funding under this amendment. We need to help communities like 
Brunswick recover from the loss of a military base, and we need to give 
them the resources they need to maintain a high-quality school system.
  These investments in education are critical to putting these 
communities on a path to economic growth and redevelopment. The need 
for emergency educational funding in areas affected by the base 
closures is clear. My amendment helps public schools in BRAC 
communities recover from the devastating impact of losing hundreds of 
students and millions of dollars in taxpayer support.
  I urge you to support the schools, teachers and students in BRAC 
communities by voting ``yes'' on this amendment.
  I reserve the balance of my time.
  Mr. GUTHRIE. Mr. Chair, I rise to claim the time in opposition even 
though I do not oppose the amendment.
  The Acting CHAIR. Without objection, the gentleman from Kentucky is 
recognized for 5 minutes.
  There was no objection.
  Mr. GUTHRIE. Mr. Chairman, supporting our men and women in uniform is 
important, and so too is it important to support the communities where 
the military has left an imprint. I think this is a reasonable way of 
targeting funding, and I will not oppose the amendment.
  As we try to do what's best for communities, including those impacted 
by a base closure, we should consider job losses that would come as a 
result of this underlying bill.
  I reserve my time.
  Ms. PINGREE of Maine. I yield such time as he may consume to the 
gentleman from California (Mr. Miller).

[[Page 21893]]


  Mr. GEORGE MILLER of California. I want to thank the gentlewoman for 
offering this amendment. I know how hard she has worked on this problem 
and the impact that a BRAC closure can bring to all of our communities. 
Many of us have experienced that in the past and even again currently. 
I want to thank her for this amendment, and I would hope that we would 
accept it. We plan to accept the amendment on this side, and apparently 
the Republicans will accept it on their side. Thank you so much for 
offering this.
  Ms. PINGREE of Maine. Thank you for your thoughts. I just want to, 
once again, urge my colleagues to support this amendment, the schools 
and the teachers in those communities that are affected by the BRAC.
  I yield back the balance of my time.
  Mr. GUTHRIE. Mr. Chairman, I do think it is a good way to target this 
funding to assist communities that are affected by Federal decisions in 
the Base Realignment and Closure, be they positive or negative for 
those communities.
  I yield back my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentlewoman from Maine (Ms. Pingree).
  The amendment was agreed to.


            Amendment No. 6 Offered by Ms. Pingree of Maine

  The Acting CHAIR. It is now in order to consider amendment No. 6 
printed in House Report 111-256.
  Ms. PINGREE of Maine. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 6 offered by Ms. Pingree of Maine:
       Page 140, beginning on line 18, strike subsection (e) and 
     insert the following:
       ``(e) Concurrent Funding.--Funds made available under this 
     section shall not be used to assist any community college 
     that receives funding for the construction, modernization, 
     renovation, and repair of facilities under any other program 
     under this Act''.

  The Acting CHAIR. Pursuant to House Resolution 746, the gentlewoman 
from Maine (Ms. Pingree) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentlewoman from Maine.
  Ms. PINGREE of Maine. Thank you, Mr. Chair.
  H.R. 3221 makes a remarkable investment in higher education at a time 
when our country needs it the most. But during these tough economic 
times, students need to be able to access an affordable education.
  In my home State of Maine, we have one of the highest high school 
graduation rates in the country but one of the lowest rates for entry 
into college. Far too often, qualified, hardworking students in my 
State don't go to college because their families just can't afford it.
  President Obama set a goal that by 2020, America will once again have 
the highest proportion of college graduates in the world. Investment in 
our community colleges is essential to achieving this goal in Maine and 
across the country. Community colleges are a critical resource for new 
and returning students who want to further their education and enhance 
their job skills. They provide a wide variety of innovative educational 
programs at affordable rates, and American families recognize the value 
of community colleges. In my State and many others, there are waiting 
lists because the community colleges can't handle the demand. That is 
why we must ensure that these schools have the funding they need to 
construct new facilities as well as the ability to renovate and repair 
existing facilities to create safe, energy-efficient, effective 
learning environments.
  The need is high. The American Association of Community Colleges 
estimates that it would take roughly $100 billion to fully fund the 
construction and renovation of community colleges across the country. 
This far exceeds the $2.5 billion that we have set aside under this 
bill. Unfortunately, when this bill was originally drafted, it included 
a provision to prohibit any community college that received Recovery 
Act funding from receiving grants for construction or repair. That's 
why I'm offering this critically important amendment.
  The intent of the recovery package was to provide a temporary 
injection of money into our economy and to create jobs and support our 
States, schools and local communities who were struggling during an 
economic downturn. States were encouraged to use this money for 
facility improvements and modernization. In Maine, every community 
college except one accepted this funding. They had no way of knowing 
that using these funds would interfere with their ability to access 
additional support. These schools should not be penalized for accepting 
this help.
  It is also important to note that this amendment would also permit 
Historically Black Colleges and Universities to receive assistance 
under this bill, even if they also received assistance under the Higher 
Education Act of 1965. These institutions play an important role in our 
educational system and should not be excluded from the benefits 
provided by this bill. As President Obama declared, It's time to reform 
our community colleges so that they provide Americans of all ages a 
chance to learn the skills and knowledge necessary to compete for the 
jobs of the future. This amendment and the underlying bill will help do 
just that.
  I urge a ``yes'' vote on this amendment, and I reserve the balance of 
my time.
  Mrs. McMORRIS RODGERS. Mr. Chair, I rise to claim time in opposition.
  The Acting CHAIR. The gentlewoman is recognized for 5 minutes.
  Mrs. McMORRIS RODGERS. Mr. Chair, I rise in opposition to this 
amendment. My opposition is an attempt to put this Congress on a path 
to fiscal responsibility. I'm a big supporter of the community colleges 
and the important opportunities that they offer students across this 
country. But as I described just a few minutes ago, last February this 
body approved $53 billion in spending for schools, including higher 
education facilities, for activities including construction. I 
expressed concern then, as I am now, that this federalized school 
construction fund is not the answer to improving our Nation's education 
system. In fact, the Higher Education Act already includes a program by 
which community colleges can receive funding for construction and 
repairs.
  If this amendment passes, there will be three Federal construction 
funding sources for community colleges to choose from--the stimulus 
package, the Higher Education Act and H.R. 3221, the underlying bill.
  When I talk to community colleges, and when I talk to schools in my 
district, what they want is more flexibility, more local control, not 
more programs with more strings attached to them, particularly at a 
time when this Nation is running record deficits, we're losing 
thousands of jobs, and families are struggling to make ends meet. It 
seems to me that once funds have been obtained by a community college 
for construction, any remaining funds should be directed toward job 
training or teaching displaced workers new job skills.
  To me, this amendment makes the statement that we are not concerned 
about the Nation's fiscal status. Well, I am concerned, and I urge my 
colleagues to be concerned as well by opposing this amendment.
  I reserve the balance of my time.
  Ms. PINGREE of Maine. Mr. Chair, I rise again to support the 
amendment and to talk about the importance of community college 
modernization, about the ability for our community colleges to rebuild 
and restructure these important institutions. In this time of such dire 
economic need, I find that so many of my constituents are contacting me 
and saying, You know, at this moment in time, I plan to go back to 
college and get an education; I want to do everything I can to make 
sure that as the economy improves, I am ready and prepared with the 
skills for this new century.
  People want to have green jobs. They want to be prepared for the new 
technology. They want an education. And

[[Page 21894]]

as young people grow up in my State--particularly my State, 38th in per 
capita income--many, many families struggling in this economy, the one 
thing we hear over and over again is that those young people in our 
State who graduate from high school at such high rates want to go on to 
college, they want to make sure they can get a college education. But 
over and over I hear from young people, You know, we couldn't afford 
it; I had to take a year off. And we hear from the community colleges, 
We can't expand fast enough; we can't make sure that we have the space 
available for the young people who want to attend college in our State.
  In this time of dire economic need, when our State is turning to the 
Federal Government and saying, Do what you can to help us with 
education, I can't imagine any reason not to support our community 
colleges, not to make sure that they are able to take advantage of 
every possible opportunity for educational funding.
  I come from a State that has really struggled to balance the budget, 
like so many other States across the country. Our State has made cuts 
everywhere they could to local education, places that we never wanted 
to go in the State Government to make those cuts. And you know what I 
hear all the time from my State legislators, from my former colleagues 
in the State legislature? They say, Please make sure that the Federal 
Government puts all the money it can into education, particularly 
higher education.
  That's what this amendment does. It makes sure that no community 
college is penalized for taking advantage earlier. It makes sure that 
every community college is available to be there for our young people. 
I continue to support this amendment. I think it's so important in my 
State and so many other States. I encourage my colleagues to vote 
``yes'' on this amendment.
  I yield back the balance of my time.
  Mrs. McMORRIS RODGERS. Mr. Chair, it is really about fiscal 
responsibility. And instead of starting a new program with the limited 
dollars that we have, let's direct those dollars to our community 
colleges, but let's direct it to the programs that will actually offer 
job retraining, job skills and offer more programs that we need all 
across this country rather than another school construction program to 
complement two funding sources that already exist.
  With that, I stand in opposition.
  I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentlewoman from Maine (Ms. Pingree).
  The amendment was agreed to.

                              {time}  1845


                  Amendment No. 7 Offered by Ms. Foxx

  The Acting CHAIR. It is now in order to consider amendment No. 7 
printed in House Report 111-256.
  Ms. FOXX. I have an amendment at the desk, Mr. Chairman.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 7 offered by Ms. Foxx:
       Page 27, beginning on line 20, strike ``has the meaning 
     given'' and all that follows through ``2009'' and insert 
     ``refers to a State public employment service established 
     under the Wagner-Peyser Act (29 U.S.C. 49 et seq.)''.
       Page 27, line 25, strike ``have the meanings given'' and 
     all that follows through page 28, line 2, and insert ``refer 
     to a State workforce investment board established under 
     section 111 of the Workforce Investment Act (29 U.S.C. 2821) 
     and a local workforce investment board established under 
     section 117 of such Act (29 U.S.C. 2832), respectively.''
       Amend title V of the Bill to read as follows:

                  TITLE V--PRIVACY AND ACCESS TO DATA

     SEC. 501. PRIVACY AND ACCESS TO DATA.

       (a) In General.--Each State or consortia that receives a 
     grant under any provision of this Act shall implement 
     measures to--
       (1) ensure that the statewide longitudinal data system 
     under this subsection and any other data system the State or 
     consortia is operating for the purposes of this Act meet the 
     requirements of section 444 of the General Education 
     Provisions Act (20 U.S.C. 1232g) (commonly known as the 
     ``Family Educational Rights and Privacy Act of 1974'');
       (2) limit the use of information in any such data system by 
     governmental agencies in the State, including State agencies, 
     State educational authorities, local educational agencies, 
     community colleges, and institutions of higher education, to 
     education and workforce related activities under this Act or 
     education and workforce related activities otherwise 
     permitted by Federal or State law;
       (3) prohibit the disclosure of personally identifiable 
     information except as permitted under section 444 of the 
     General Education Provisions Act and any additional 
     limitations set forth in State law;
       (4) keep an accurate accounting of the date, nature, and 
     purpose of each disclosure of personally identifiable 
     information in any such data system, a description of the 
     information disclosed, and the name and address of the 
     person, agency, institution, or entity to whom the disclosure 
     is made, which accounting shall be made available on request 
     to parents of any student whose information has been 
     disclosed;
       (5) notwithstanding section 444 of the General Education 
     Provisions Act, require any non-governmental party obtaining 
     personally identifiable information to sign a data use 
     agreement prior to disclosure that--
       (A) prohibits the party from further disclosing the 
     information;
       (B) prohibits the party from using the information for any 
     purpose other than the purpose specified in the agreement; 
     and
       (C) requires the party to destroy the information when the 
     purpose for which the disclosure was made is accomplished;
       (6) maintain adequate security measures to ensure the 
     confidentiality and integrity of any such data system, such 
     as protecting a student record from identification by a 
     unique identifier;
       (7) where rights are provided to parents under this clause, 
     provide those rights to the student instead of the parent if 
     the student has reached the age of 18 or is enrolled in a 
     postsecondary educational institution; and
       (8) ensure adequate enforcement of the requirements of this 
     paragraph.
       (b) Use of Unique Identifiers.--It shall be unlawful for 
     any Federal, State, or local governmental agency to--
       (1) use the unique identifiers employed in such data 
     systems for any purpose other than as authorized by Federal 
     or State law; or
       (2) deny any individual any right, benefit, or privilege 
     provided by law because of such individual's refusal to 
     disclose the individual's unique identifier.
       Conform the table of contents accordingly.

  The Acting CHAIR. Pursuant to House Resolution 746, the gentlewoman 
from North Carolina (Ms. Foxx) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentlewoman from North Carolina.
  Ms. FOXX. Mr. Chairman, I want to thank the Rules Committee for 
making my amendment in order and am glad to be here to speak on this 
bill.
  First I want to say that my whole life was spent in education. I was 
president of a community college. I spent 12 years on a school board. I 
taught and was an assistant dean at Appalachian State University, so I 
was an administrator there. I was the director of a TRIO program at 
Appalachian. So I have been very much involved with education all my 
life. I am the product of a public school system and give credit to the 
success that I've had in life to the fact that I had great teachers and 
administrators who cared a lot about me and gave me some direction, 
although I came from extreme poverty and from a family where no one had 
ever graduated from high school.
  I'm a very strong supporter of community colleges because I believe 
community colleges have been terrific in our country, particularly in 
North Carolina. I think we have an excellent system of community 
colleges, and so I am very proud of having been associated with them. 
They were created to be able to serve the community in which they are 
located, and they're able to pivot very quickly to offer the kinds of 
programs that the community needs, particularly in the area of 
workforce development.
  So I want to say that while I'm here to strike a part of this bill 
that would be spending money on new educational programs, it isn't 
because I have any animus toward education programs at all--and I have 
great experience in that area. But my amendment strikes the entire 
American Graduation Initiative created by title V of the bill while 
maintaining the privacy provisions that apply to the whole act. These 
privacy provisions are very important because they ensure that student 
information is protected from individuals not authorized to view it and 
that students can't be identified by any unique identifier. This is 
also an area that I have been very much concerned about.
  Title V authorizes and appropriates a total of $730 million between 
FY 2010

[[Page 21895]]

and FY 2030 and $680 million between FY 2014 and 2019. The savings from 
my amendment would be put towards deficit reduction.
  My objections to this section come from several different areas. 
Number one, this is duplicative of programs already authorized under 
the Higher Education Act and the Workforce Investment Act. The new open 
online education provision gives authorization grants from the Federal 
Government to develop curricula that will be used in online courses. In 
my opinion, this is a step towards Federal curriculum for schools and 
colleges. It also severely interferes with the authority of States and 
localities to determine the curriculum that schools provide. This 
provision also wastes taxpayer money to federally fund an online course 
initiative that's already being provided by 1,000 colleges and 
universities across the country.
  I am also concerned about a provision in that section which says, 
``The Secretary is authorized to make grants to other appropriate 
entities.'' Is it possible that ACORN could receive funding through 
this broad statement? Can the majority promise me on the record that $1 
is not now nor will it go to ACORN after passage of this bill? Again, 
the way this section reads, it can go to other appropriate entities. 
And we have seen how the folks on the other side have found every 
excuse in the world to fund that program.
  We also aren't getting any sense of responsibility from the kind of 
legislation that's being passed here that we're hearing so much about 
from the President and my colleagues on the other side. We've heard so 
much about how the States don't have the money to do what they need to 
do. This is then a welfare program for the States and the community 
colleges within the States.
  The community colleges already have programs where they evaluate what 
they're doing. They have to justify their programs, and the State 
should be setting priorities and funding those things that are most 
needed in the State. With unemployment as high as it is, I know that 
all the community colleges in North Carolina are setting priorities to 
work with people who need to get the education they need to get jobs, 
but there is so much taxpayer money wasted here on administration and 
bureaucracy and very little lack of accountability, despite what my 
colleagues have said.
  The Acting CHAIR. The time of the gentlewoman has expired.
  Mr. GEORGE MILLER of California. Mr. Chairman, I rise in opposition 
to the amendment.
  The Acting CHAIR. The gentleman is recognized for 5 minutes.
  Mr. GEORGE MILLER of California. I yield 2 minutes to the gentleman 
from New Jersey (Mr. Andrews), a member of the committee.
  Mr. ANDREWS. Mr. Chairman, I rise in opposition to this amendment.
  This amendment does not pose a choice between those who support 
bureaucracy and those who support education. It poses a choice between 
those who wish to see economic growth by investing in the most 
important aspect of economic growth, our workforce, and those who would 
prevent such a thing.
  I would not rely on this argument on, frankly, my colleagues here in 
the House, although I commend them for putting this in the bill. I 
would rely instead upon this statement from the Business Roundtable, 
which is the association of chief executive officers of leading U.S. 
companies with more than $5 trillion in annual revenues and 10 million 
employees. So this is not the community colleges speaking. This is not 
those of us on the majority side speaking. It is the CEOs of the 
leading companies in America, and here is what they said:
  ``On behalf of the Business Roundtable, I want to commend you''--it's 
addressed to Chairman Miller--``for inclusion of the Community College 
Initiative in H.R. 3221. This Community College Initiative and the 
President's American Graduation Initiative reflect the fact that 
community colleges have emerged as important institutions where 
acquiring skills for new jobs and new careers will take place.''
  The United States cannot compete without the most highly skilled and 
motivated workers in the world, and I dare say that our odds of 
achieving that goal in the workforce are severely compromised if our 
community college sector is not strengthened.
  The community colleges that I represent are overwhelmed with new 
applicants. They're overwhelmed attempting to find facilities and 
resources to deal with the education of those new applicants. That's 
why my colleges would agree with the CEOs of the biggest companies in 
this country who say that the Community College Initiative is so 
important for community colleges to reach their potential.
  Let us not unduly constrict these fine institutions. Let us not 
listen to Republicans or Democrats. Let's listen to the leaders of 
corporate America who say, vote ``yes'' and oppose this amendment.
  Mr. GEORGE MILLER of California. I yield 2 minutes to the gentleman 
from North Carolina (Mr. Miller).
  Mr. MILLER of North Carolina. Mr. Chairman, it's astonishing that 
when unemployment in many parts of North Carolina is more than 13 
percent that I have to defend an investment in community colleges.
  Community colleges give students a chance to learn the skills that 
they will need to support themselves and support their families, and 
community college students move heaven and Earth to take advantage of 
that chance. Community college students often work full time, go to 
school full time, and for many, you can put on top of that, taking care 
of their children.
  In North Carolina, about one adult in six is enrolled in the 
community college each year. All manner of workers depend on our 
community colleges for the skills they need for their livelihood: 
construction workers, law enforcement and other first responders, 
biotech workers, all manner of health care workers, and on and on. Talk 
to community college students and you will learn what industries are 
laying off and what industries are hiring.
  North Carolina, like much of the Nation, was already going through a 
tough economic transition even before the recession, and millions of 
families depend on a community college education to make it through. 
And tough economic times have only made community colleges more 
important. Enrollment in North Carolina's community colleges increased 
by 8 percent just last year, and preliminary data shows that enrollment 
is increasing even more this year.
  I welcome the Obama administration's recognition of the importance of 
community colleges to working families, to breadwinners willing to work 
hard to learn new skills. It is long overdue. And North Carolina's 
community college leaders welcome that, too, and strongly support this 
program.
  I have a letter dated just yesterday from the President of North 
Carolina's Community Colleges strongly supporting this program. Help 
parents who will make any sacrifice to support their families. Vote for 
working families. Defeat this amendment.
  Mr. GEORGE MILLER of California. Mr. Chairman and Members of the 
House, this amendment should be overwhelmingly rejected. Not only does 
it destroy the Obama administration's initiative on community colleges, 
but it destroys what almost every Member knows, that as much as the 
community colleges are doing today, as many students as they help, 
they're being asked to do even more. And the fact of the matter is we 
need them to do more, and we need them to do a better job.
  We still have too many students who are starting community colleges 
but are not successfully completing it, either with a certificate for a 
career or an AA degree or transition to a 4-year school, whatever path 
they take. We have got to strengthen those pathways that those students 
take. We have got to strengthen the ability of the community colleges 
to make sure that they can provide that kind of opportunity. They are 
becoming the catalyst for economic innovation, economic change, 
economic revitalization and flexibility in all of our communities.
  And what the Obama administration is suggesting with this initiative 
is

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that we should help them do that because we're vitally in need of their 
success so that people can change the careers as we move from one 
economy to another. As energy becomes modern and innovative and new, we 
need a different type of energy worker.
  We must defeat this Foxx amendment. We must stick by this initiative 
and support the community colleges.
  The Acting CHAIR. The question is on the amendment offered by the 
gentlewoman from North Carolina (Ms. Foxx).
  The question was taken; and the Acting Chair announced that the noes 
appeared to have it.
  Mr. GEORGE MILLER of California. Mr. Chairman, I demand a recorded 
vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentlewoman from North 
Carolina will be postponed.
  Mr. GEORGE MILLER of California. Mr. Chairman, I move that the 
Committee do now rise.
  The motion was agreed to.
  Accordingly, the Committee rose; and the Speaker pro tempore (Mr. 
Andrews) having assumed the chair, Mr. Kissell, Acting Chair of the 
Committee of the Whole House on the State of the Union, reported that 
that Committee, having had under consideration the bill (H.R. 3221) to 
amend the Higher Education Act of 1965, and for other purposes, had 
come to no resolution thereon.

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