[House Report 118-337]
[From the U.S. Government Publishing Office]


118th Congress }                                          { Report 
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                          { 118-337

======================================================================
 
                     BIPARTISAN WORKFORCE PELL ACT

                                _______
                                

 December 22, 2023.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Ms. Foxx, from the Committee on Education and the Workforce, submitted 
                             the following

                              R E P O R T

                        [To accompany H.R. 6585]

    The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 6585) to amend the Higher Education Act 
of 1965 to extend Federal Pell Grant eligibility to certain 
short-term workforce programs, having considered the same, 
reports favorably thereon with an amendment and recommends that 
the bill as amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Bipartisan Workforce Pell Act''.

SEC. 2. WORKFORCE PELL GRANTS.

  (a) In General.--Section 401 of the Higher Education Act of 1965 (20 
U.S.C. 1070a), as amended by section 703 of the FAFSA Simplification 
Act (title VII of division FF of Public Law 116-260), is amended by 
adding at the end the following:
  ``(k) Workforce Pell Grant Program.--
          ``(1) In general.--For the award year beginning on July 1, 
        2025, and each subsequent award year, the Secretary shall award 
        grants (to be known as `Workforce Pell Grants') to eligible 
        students under paragraph (2) in accordance with this 
        subsection.
          ``(2) Eligible students.--To be eligible to receive a 
        Workforce Pell Grant under this subsection for any period of 
        enrollment, a student shall meet the eligibility requirements 
        for a Federal Pell Grant under this section, except that the 
        student--
                  ``(A) shall be enrolled, or accepted for enrollment, 
                in an eligible program under section 481(b)(3) 
                (hereinafter referred to as an `eligible workforce 
                program'); and
                  ``(B) may not--
                          ``(i) be enrolled, or accepted for 
                        enrollment, in a program of study that leads to 
                        a master's degree, doctoral degree, or other 
                        post-graduate degree; or
                          ``(ii) have attained such a degree.
          ``(3) Terms and conditions of awards.--The Secretary shall 
        award Workforce Pell Grants under this subsection in the same 
        manner and with the same terms and conditions as the Secretary 
        awards Federal Pell Grants under this section, except that--
                  ``(A) each use of the term `eligible program' shall 
                be substituted by `eligible workforce program under 
                section 481(b)(3)', other than with respect to--
                          ``(i) paragraph (9)(A) of such subsection; 
                        and
                          ``(ii) subsection (d)(2); and
                  ``(B) a student who is eligible for a grant equal to 
                less than the amount of the minimum Federal Pell Grant 
                because the eligible workforce program in which the 
                student is enrolled or accepted for enrollment is less 
                than an academic year (in hours of instruction or weeks 
                of duration) may still be eligible for a Workforce Pell 
                Grant in an amount that is prorated based on the length 
                of the program.
          ``(4) Prevention of double benefits.--No eligible student 
        described in paragraph (2) may concurrently receive a grant 
        under both this subsection and--
                  ``(A) subsection (b); or
                  ``(B) subsection (c).
          ``(5) Duration limit.--Any period of study covered by a 
        Workforce Pell Grant awarded under this subsection shall be 
        included in determining a student's duration limit under 
        subsection (d)(5).''.
  (b) Effective Date.--The amendment made by subsection (a) shall take 
effect as if included in section 703 of the FAFSA Simplification Act 
(title VII of division FF of Public Law 116-260; 134 Stat. 3191) and in 
accordance with section 701(b) of such Act.

SEC. 3. PROGRAM ELIGIBILITY FOR WORKFORCE PELL GRANTS.

  Section 481(b) of the Higher Education Act of 1965 (20 U.S.C. 
1088(b)) is amended--
          (1) by redesignating paragraphs (3) and (4) as paragraphs (4) 
        and (5), respectively; and
          (2) by inserting after paragraph (2) the following:
  ``(3) (A) A program is an eligible program for purposes of the 
Workforce Pell Grant program under section 401(k) only if--
          ``(i) it is a program of at least 150 clock hours of 
        instruction, but less than 600 clock hours of instruction, or 
        an equivalent number of credit hours, offered during a minimum 
        of 8 weeks, but less than 15 weeks;
          ``(ii) it is not offered as a correspondence course, as 
        defined in 600.2 of title 34, Code of Federal Regulations (as 
        in effect on September 20, 2020);
          ``(iii) the State board makes a determination that the 
        program--
                  ``(I) provides an education aligned with the 
                requirements of high-skill, high-wage (as identified by 
                the State pursuant to section 122 of the Carl D. 
                Perkins Career and Technical Education Act (20 U.S.C. 
                2342), or in-demand industry sectors or occupations;
                  ``(II) meets the hiring requirements of potential 
                employers in the sectors or occupations described in 
                subclause (I); and
                  ``(III) satisfies any applicable educational 
                prerequisite requirement for professional licensure or 
                certification in the State or States in which the 
                program is offered, as applicable, such that a student 
                who completes the program is qualified to--
                          ``(aa) practice or find employment in the 
                        sectors or occupations described in subclause 
                        (I); and
                          ``(bb) as applicable, take any licensure or 
                        certification examinations required to practice 
                        or find employment in such sectors or 
                        occupations;
          ``(iv) after the State board makes the determination that the 
        program meets the requirements under clause (iii), the 
        accrediting agency or association recognized by the Secretary 
        pursuant to section 496(a) determines that the program--
                  ``(I) either--
                          ``(aa) leads to a recognized postsecondary 
                        credential that is stackable and portable 
                        across more than one employer; or
                          ``(bb) with respect to students enrolled in 
                        the program--
                                  ``(AA) prepares such students for 
                                employment in an occupation for which 
                                there is only one recognized 
                                postsecondary credential; and
                                  ``(BB) provides such students with 
                                such a credential upon completion of 
                                such program;
                  ``(II) prepares students to pursue 1 or more 
                certificate or degree programs at 1 or more 
                institutions of higher education (which may include the 
                institution of higher education providing the program), 
                including by ensuring--
                          ``(aa) that a student, upon completion of the 
                        program and enrollment in such a related 
                        certificate or degree program, will receive 
                        academic credit for the program that will be 
                        accepted toward meeting such certificate or 
                        degree program requirements; and
                          ``(bb) the acceptability of such credit 
                        toward meeting such certificate or degree 
                        program requirements; and
                  ``(III) posts prominently on the website of the 
                institution the recognized postsecondary credential 
                that will be awarded to the student upon completion of 
                the program, including the entity issuing the 
                credential, any third-party endorsements of the 
                credential, the occupation or occupations for which the 
                credential prepares individuals for employment, the 
                competencies achieved to earn the credential, the level 
                of mastery of such competencies and how mastery is 
                assessed, and specific information with respect to 
                where, whether, and under what circumstances the 
                credential is stackable or portable;
                  ``(IV) with respect to the information collected 
                under section 131(i)--
                          ``(aa) posts such information prominently on 
                        the website of the institution; and
                          ``(bb) provides such information in a written 
                        disclosure to each prospective student prior to 
                        entering into an enrollment agreement with such 
                        student for such program, and establishes 
                        procedures for each such student to confirm 
                        receipt of such disclosure;
                  ``(V) has established a plan to ensure students who 
                completed the program have access to transcripts for 
                completed coursework without a fee; and
                  ``(VI) has been offered by an eligible institution of 
                higher education for not less than 1 year prior to the 
                date on which such agency or association is to make a 
                determination under this paragraph;
          ``(v) after the accrediting agency makes the determination 
        that the program meets the requirements under clause (iv), the 
        Secretary determines that--
                  ``(I) for each award year, the program has a verified 
                completion rate of at least 70 percent, within 150 
                percent of the normal time for completion;
                  ``(II) for each award year, the program has a 
                verified job placement rate of at least 70 percent, 
                measured 180 days after completion;
                  ``(III) for each award year, the program charges to a 
                Workforce Pell Grant recipient under section 401(k) a 
                total amount of tuition and fees for the program for 
                such year that does not exceed the value-added earnings 
                of students for the most recent year for which data is 
                available; and
                  ``(IV) for at least 2 of the 3 most recent 
                consecutive award years for which data are available, 
                the median earnings of students who completed the 
                program, measured three years after students completed 
                the program, exceeded the annual median earnings of 
                individuals in the State in which the program is 
                located--
                          ``(aa) who are in the labor force;
                          ``(bb) who are between 25 and 34 years of 
                        age, inclusive; and
                          ``(cc) for whom the highest degree attained 
                        is a high school diploma (or recognized 
                        equivalent); and
          ``(vi) in the case of a program that has been an eligible 
        workforce program under this paragraph for 3 or more years, it 
        uses common, linked, open, and interoperable data formats when 
        posting on the website of the institution the data required 
        under subclauses (III) and (IV) of clause (iv).
  ``(B)(i) The Secretary shall establish an appeals process wherein a 
program may request that, in making a determination under subparagraph 
(A)(v) (other than with respect to the median earnings of the 
individuals in the State described in subclause (IV) of such 
subparagraph), the Secretary use alternate earnings data, provided by 
the program, that is based on local, State, or Federal administrative 
data sources and that is statistically rigorous, accurate, comparable 
to, and representative of such students, if such program objects to a 
determination made by the Secretary under such subparagraph for 
purposes of--
          ``(I) eligibility under this paragraph; or
          ``(II) the reporting or publishing of the rates or earnings 
        described in such a determination under section 131(i).
  ``(ii) In the case of a program that is seeking to establish initial 
eligibility under this paragraph that does not have data available for 
the Secretary to make the determinations required under subparagraph 
(A)(v), the Secretary may, for a period that does not exceed 1 year, 
make such determinations (other than the median earnings of the 
individuals in the State described in subclause (IV) of such 
subparagraph) with respect to the program using, as provided by the 
program--
          ``(I) alternate earnings data of students who complete the 
        program, provided such data are statistically rigorous, 
        accurate, comparable to, and representative of such students; 
        and
          ``(II) alternate completion and job placement rates of 
        students who enroll in the program, provided such data are 
        statistically rigorous, accurate, comparable, and 
        representative of such students.
  ``(iii) If the Secretary determines that a program provided 
inaccurate earnings data under clause (i)(I) or clause (ii), such 
program shall return to the Secretary any funds received under section 
401(k) during the period beginning on the date that is the first day of 
the provisional eligibility period and ending on the date on which the 
Secretary makes such determination.
  ``(C)(i) In the case of a program that is seeking to establish 
initial eligibility under this paragraph, the Secretary shall grant 
eligibility for the program if it meets the requirements of this 
paragraph not more than 120 days after the date on which the Secretary 
receives a submission from such program for consideration as an 
eligible workforce program under this paragraph.
  ``(ii) If a program that is an eligible workforce program under this 
paragraph no longer meets one or more of the requirements under this 
paragraph, as determined by the State Board, accrediting agency, or the 
Secretary, the Secretary--
          ``(I) may withdraw the eligibility of such program; and
          ``(II) shall prohibit such program, and any substantially 
        similar program of the institution, from being considered an 
        eligible workforce program under this paragraph for a period of 
        not less than 3 years.
  ``(D)(i) In the case of a program with a number of enrolled students 
that is insufficient to provide the Secretary with enough relevant data 
to make the determinations under subparagraph (A)(v), the Secretary 
shall--
          ``(I) aggregate up to 4 years of additional data for such 
        program and use such aggregated data to make such 
        determinations; or
          ``(II) only if such aggregated data under subclause (I) is 
        insufficient, aggregate up to 4 years of data of students who 
        completed or were enrolled in, as applicable, similar programs 
        at the institution (as determined using the first 4 digits of 
        the CIP codes of such programs) and use such data to make such 
        determinations.
  ``(ii) For purposes of this subparagraph, the term `CIP code' means 
the 6-digit taxonomic identification code assigned by an institution of 
higher education to a specific program of study at the institution, 
determined by the institution in accordance with the Classification of 
Instructional Programs published by the National Center for Education 
Statistics.
  ``(E) In this paragraph:
          ``(i) The term `eligible institution of higher education' 
        means an institution of higher education (as defined in section 
        102) that--
                  ``(I) is approved by an accrediting agency or 
                association that meets the requirements of section 
                496(a)(4)(C); and
                  ``(II) has not been subject, during any of the 
                preceding 3 years, to--
                          ``(aa) any suspension, emergency action, or 
                        termination under this title;
                          ``(bb) any adverse action by the 
                        institution's accrediting agency or association 
                        that revokes or denies accreditation for the 
                        institution; or
                          ``(cc) any final action by the State where 
                        the institution holds its legal domicile, 
                        authorization, and accreditation that revokes a 
                        license or other authority to operate.
          ``(ii) The term `median earnings', when used with respect to 
        an eligible workforce program under this paragraph--
                  ``(I) means the median annualized earnings, 
                calculated using earnings for a pay period, month, 
                quarter, or other time period deemed appropriate by the 
                Secretary, of all students who received Federal 
                financial assistance under this title and who completed 
                the program in an academic year; and
                  ``(II) shall be measured a given number of years 
                after such students completed the program, with the 
                number of years determined in accordance with this Act 
                based on the intended use of the median earnings data 
                being calculated.
          ``(iii) With respect to students who received Federal 
        financial aid under this title and who completed an eligible 
        workforce program under this paragraph in a given year, the 
        term `value-added earnings' means--
                  ``(I) the median earnings of such students, measured 
                one year after students completed the program; minus
                  ``(II) for the year median earnings are measured for 
                such students under subclause (I), 150 percent of the 
                poverty line applicable to a single individual as 
                determined under section 673(2) of the Community 
                Services Block Grant Act (42 U.S.C. 9902(2)) for such 
                year and, in the case of a program offered in-person, 
                adjusted by the regional price parity index of the 
                Bureau of Economic Analysis for the metropolitan 
                statistical area in which the eligible institution of 
                higher education offering such program is located.
          ``(iv) The terms `industry or sector partnership', `in-demand 
        industry sector or occupation', `recognized postsecondary 
        credential', and `State board' have the meanings given such 
        terms in section 3 of the Workforce Innovation and Opportunity 
        Act.''.

SEC. 4. DATA COLLECTION AND DISSEMINATION RELATED TO WORKFORCE PELL.

  Section 131 of the Higher Education Act of 1965 (20 U.S.C. 1015) is 
amended by adding at the end the following:
  ``(i) Data Collection and Dissemination Related to Workforce Pell.--
          ``(1) Primary data source.--The Secretary shall use data from 
        the National Student Loan Data System or administrative data 
        maintained by the Department, matched with Internal Revenue 
        Service income data to collect data and make calculations in 
        accordance with this subsection and section 481(b)(3).
          ``(2) Publication.--The Secretary shall, on an annual basis, 
        collect, verify, and make publicly available on the College 
        Scorecard website (or any similar successor website), the 
        information required under section 481(b)(3)(A)(v), with 
        respect to each eligible program under section 481(b)(3) 
        (hereinafter referred to as an `eligible workforce program'), 
        including--
                  ``(A) the length of the program (as measured in clock 
                hours, credit hours, or weeks);
                  ``(B) the required tuition and fees of the program;
                  ``(C) the difference between the required tuition and 
                fees described in section 481(b)(3)(A)(v)(III) and 
                median amount of grant aid (which does not need to be 
                repaid) provided to students receiving Workforce Pell 
                Grants, disaggregated by source of such grant aid;
                  ``(D) the median earnings of students as such term is 
                defined in section 481(b)(3)(E);
                  ``(E) the median earnings of students who did not 
                complete the program and received Federal financial 
                assistance under this title;
                  ``(F) the ratio of the amount described in 
                subparagraph (C) to the value-added earnings (as such 
                term is defined in section 481(b)(3)(E)) of students 
                and an explanation, in clear and plain language, of 
                this ratio;
                  ``(G) in the case of a program that prepares students 
                for a professional licensure or certification 
                examination, the share of such students who pass such 
                examinations;
                  ``(H) the number of students enrolled in the program 
                during the most recent academic year for which data is 
                available;
                  ``(I) the percentage of students who enroll in the 
                program and who complete the program within--
                          ``(i) 100 percent of the normal time for 
                        completion of such program;
                          ``(ii) 150 percent of the normal time for 
                        completion of such program; and
                          ``(iii) 200 percent of the normal time for 
                        completion of such program;
                  ``(J) the percentage of students who are employed not 
                later than 180 days and 1 year, respectively, after 
                completing the program;
                  ``(K) the percentage of individuals--
                          ``(i) who have completed such program; and
                          ``(ii) 1 year after such completion, whose 
                        median earnings exceed 150 percent of the 
                        poverty line applicable to a single individual, 
                        as determined under section 673(2) of the 
                        Community Services Block Grant Act (42 U.S.C. 
                        9902(2));
                  ``(L) the percentage of students who enroll in a 
                certificate or degree program at any institution of 
                higher education within 1 year of completing such 
                program; and
                  ``(M) the percentage of students who complete a 
                subsequent certificate or degree program at any 
                institution of higher education within 6 years of 
                completing such program.
          ``(3) Data disaggregation.--The information in subparagraphs 
        (D), (E), and (H) through (M) shall be disaggregated by--
                  ``(A) sex;
                  ``(B) race and ethnicity;
                  ``(C) income quintile, as defined by the Secretary; 
                and
                  ``(D) status as a recipient of a Workforce Pell 
                Grant.
          ``(4) Exceptions.--Notwithstanding any other provision of 
        this subsection, if disclosure of any data under paragraph (1) 
        is prohibited under State or Federal privacy laws or 
        regulations, the Secretary shall take the steps described in 
        paragraph (5), and any other steps determined by the Secretary 
        to be necessary to make publicly available such data in 
        accordance with such laws and regulations.
          ``(5) Small programs.--
                  ``(A) Aggregation.--For purposes of publishing the 
                information described in this subsection with respect 
                to an eligible workforce program, for any year for 
                which the number of students is determined by the 
                Secretary to be of insufficient size to maintain the 
                privacy of student data, the Secretary shall, to obtain 
                data for a sufficient number of students to maintain 
                student privacy--
                          ``(i) aggregate up to 4 years of additional 
                        data for such program;
                          ``(ii) only if the aggregated data under 
                        clause (i) is insufficient to maintain student 
                        privacy or cannot be aggregated, aggregate data 
                        for students who completed or were enrolled in, 
                        as applicable, similar programs at the 
                        institution (as determined using the first 4 
                        digits of the CIP codes); or
                          ``(iii) only if the aggregated data under 
                        clause (ii) is insufficient to maintain student 
                        privacy or cannot be aggregated, aggregate data 
                        with respect to all students who completed or 
                        were enrolled in, as applicable, any program of 
                        the institution of the same credential level, 
                        in lieu of data specific to students in such 
                        program.
                  ``(B) Notification of aggregation.--The Secretary 
                shall prominently indicate whether data published under 
                this subsection has been aggregated in accordance with 
                subparagraph (A).
                  ``(C) CIP code defined.--For purposes of this 
                paragraph, the term `CIP code' means the 6-digit 
                taxonomic identification code assigned by an 
                institution of higher education to a specific program 
                of study at the institution, determined by the 
                institution in accordance with the Classification of 
                Instructional Programs published by the National Center 
                for Education Statistics.''.

SEC. 5. ACCREDITING AGENCY DETERMINATION OF ELIGIBILITY REQUIREMENTS 
                    FOR THE WORKFORCE PELL GRANTS PROGRAM.

  (a) References.--Except as otherwise expressly provided, whenever in 
this section an amendment or reference is expressed in terms of an 
amendment or reference to a section or other provision, the amendment 
or 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.).
  (b) Recognition of Accrediting Agency or Association.--Section 
496(a)(4) (20 U.S.C. 1099b(a)(4)) is amended--
          (1) in subparagraph (A), by striking ``and'' at the end;
          (2) in subparagraph (B)(ii), by inserting ``and'' at the end; 
        and
          (3) by adding at the end the following:
          ``(C) if such agency or association has or seeks to include 
        within its scope of recognition the evaluation of the quality 
        of institutions offering an eligible program under section 
        481(b)(3), such agency or association shall, in addition to 
        meeting the other requirements of this subpart, demonstrate to 
        the Secretary that, with respect to such an eligible program--
                  ``(i) the agency or association's standards include a 
                process for determining if the institution has the 
                capability to effectively offer such program; and
                  ``(ii) the agency or association requires a 
                demonstration that the program satisfies the 
                requirements of section 481(b)(3)(A)(iv);''.
  (c) Prospective Accreditors.--The Secretary--
          (1) in the case of an accrediting agency or association that 
        is not recognized under section 496 (20 U.S.C. 1099b) and that 
        is seeking initial recognition to evaluate only eligible 
        programs under section 481(b)(3) (20 U.S.C. 1088(b)), may only 
        recognize such agency or association for such purpose if such 
        agency or association demonstrates, in the application 
        submitted under such section 496 for such recognition, 
        compliance with the requirements of such section for at least 1 
        year prior to the date on which such application is submitted;
          (2) shall, not later than 1 year after receiving such an 
        application, make a recommendation with respect to whether such 
        agency or association should be recognized for such purpose; 
        and
          (3) shall, after making the recommendation described in 
        paragraph (2), direct the National Advisory Committee on 
        Institutional Quality and Integrity (as established by section 
        114 (20 U.S.C. 1011c)) (hereinafter referred to as ``NACIQI'') 
        to, at the first scheduled meeting of such Committee following 
        such a recommendation--
                  (A) evaluate the recognition of the agency or 
                association; and
                  (B) advise the Secretary with respect to whether the 
                agency or association meets the criteria under section 
                496(a)(4)(C) (20 U.S.C. 1099b(a)(4)) (as added by 
                subsection (b)).
  (d) Technical Assistance.--The Secretary shall provide technical 
assistance to any prospective accrediting agency or association seeking 
initial recognition by the Secretary under section 496 (20 U.S.C. 
1099b), including with respect to recognition to evaluate institutions 
with an eligible Workforce Pell Grants program.
  (e) Additional NACIQI Review Meetings.--For the purpose of preparing 
for the implementation of the Workforce Pell Grant program under 
section 401(k) (20 U.S.C. 1070a) (as added by section 2), and in 
addition to the meetings required under section 114(d)(1) (20 U.S.C. 
1011c(d)(1)), NACIQI shall, for the period beginning on the date of the 
enactment of this Act and ending on December 31, 2030, hold meetings to 
evaluate the recognition of prospective accrediting agencies or 
associations described in subsection (c) and the addition to the scope 
of recognition of accrediting agencies and associations under section 
496(a)(4)(C) (20 U.S.C. 1099b(a)(4)).
  (f) Interim Accreditation Authority.--
          (1) Notification.--Beginning on the date of the enactment of 
        this Act, a recognized accrediting agency or association that 
        seeks, for the first time, to add to its scope of recognition 
        the evaluation of the quality of institutions offering an 
        eligible program under section 481(b)(3) (20 U.S.C. 1088(b)) 
        may include within its scope of recognition the evaluation of 
        such institutions if such agency or association--
                  (A) submits to the Secretary a notification of the 
                agency or association's intent to add the evaluation of 
                such institutions to its scope of recognition; and
                  (B) includes with such notification an explanation of 
                how the agency or association intends to meet the 
                criteria under section 496(a)(4)(C) (20 U.S.C. 
                1099b(a)(4)) (as added by subsection (b)).
          (2) Review of scope of changes.--Upon receipt of a 
        notification from an accrediting agency or association 
        described in subparagraph (A), the Secretary shall direct 
        NACIQI to evaluate, at the next available meeting of such 
        Committee, the addition to the scope of recognition of the 
        agency or association and to advise the Secretary with respect 
        to whether the agency or association meets the criteria under 
        section 496(a)(4)(C) (20 U.S.C. 1099b(a)(4)) (as added by 
        subsection (b)).
          (3) Termination of interim authority.--The interim authority 
        granted to an agency or association under this paragraph shall 
        terminate on the earlier of--
                  (A) the date that is 5 years after the date of the 
                enactment of this Act; or
                  (B) the date on which the Secretary determines 
                whether such agency or association meets the criteria 
                under section 496(a)(4)(C) (20 U.S.C. 1099b(a)(4)) (as 
                added by subsection (b)).

SEC. 6. RULE OF CONSTRUCTION.

  Nothing in this Act shall be construed to impose or increase an 
occupational licensing or certification requirement on eligible 
programs under this title.

SEC. 7. AGREEMENTS WITH APPLICABLE EDUCATIONAL INSTITUTIONS.

  (a) Direct Loans.--Section 454(a) of the Higher Education Act of 1965 
(20 U.S.C. 1087d(a)) is amended--
          (1) in paragraph (5), by striking ``and'' after the 
        semicolon;
          (2) by redesignating paragraph (6) as paragraph (7); and
          (3) by inserting after paragraph (5) the following:
          ``(6) notwithstanding any other provision of this Act, for 
        the award year beginning on July 1, 2024, and each subsequent 
        award year, if such institution is an applicable educational 
        institution that is an organization subject to taxation under 
        section 4968 of the Internal Revenue Code of 1986, provide that 
        such institution may not award--
                  ``(A) a Federal Direct Stafford Loan, a Federal 
                Direct Unsubsidized Stafford Loan, or a Federal Direct 
                Plus Loan to any eligible student; or
                  ``(B) a Federal Direct Plus Loan to a parent of an 
                eligible dependent undergraduate student if such 
                student is eligible for a Federal Pell Grant.''; and
  (b) Federal Supplemental Educational Opportunity Grants.--Section 
413C(a) of the Higher Education Act of 1965 (20 U.S.C. 1070b-2(a)) is 
amended--
          (1) in paragraph (3), by redesignating subparagraphs (A) 
        through (D) as clauses (i) through (iv), respectively;
          (2) by redesignating paragraphs (1) through (3) as 
        subparagraphs (A) through (C), respectively;
          (3) in the matter preceding subparagraph (A), as so 
        redesignated, by striking ``Assistance may'' and inserting
          ``(1) In general.--Assistance may''; and
          (4) by adding at the end the following:
          ``(2) Exception.--In addition to the requirements under 
        paragraph (1), for the award year beginning on July 1, 2024 and 
        each subsequent award year, an institution that is an 
        applicable educational institution that is an organization 
        subject to taxation under section 4968 of the Internal Revenue 
        Code of 1986, may only receive assistance under this subpart if 
        such institution guarantees that, for each such award year--
                  ``(A) the total amount of grants and scholarships, 
                including other financial assistance not received under 
                this title as defined in section 480(i), awarded to a 
                student who receives a Federal Pell Grant under this 
                title shall not be less than the student's cost of 
                attendance (as defined in section 472); and
                  ``(B) the percentage of students enrolled at such 
                institution who are eligible for a Federal Pell grant 
                will be equal to or greater than the percentage of 
                students who were enrolled at such institution and were 
                eligible for a Federal Pell grant in the award year 
                during which the Bipartisan Workforce Pell Act was 
                enacted.''.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

  In addition to funds made available for payment of Workforce Pell 
Grants under section 401(k) of the Higher Education Act of 1965 (as 
added by section 2 of this Act), there are authorized to be 
appropriated to the Secretary of Education $40,000,000 for fiscal year 
2025 and $30,000,000 for each of the 4 succeeding fiscal years for the 
costs of implementing such section 401(k) and the other amendments to 
the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) made by this 
Act.

                                Purpose

    One of the primary purposes of the Higher Education Act of 
1965 (HEA) is to support postsecondary education access for 
low-income students. This includes assisting families with 
access to federal financial aid, including through the Pell 
Grant, in cases where a student may not otherwise have access 
to aid. As the 21st-century workforce evolves, it is critical 
to reform and realign federal financial aid to support access 
to postsecondary education programs that provide the valuable 
skills education necessary for today's in-demand careers. H.R. 
6585, the Bipartisan Workforce Pell Act, would extend Pell 
Grant eligibility to high-quality, short-term education 
programs that provide low-income students and workers 
opportunities to quickly advance their careers. In doing so, 
H.R. 6585 also establishes an accountability framework to 
assess the effectiveness of short-term programs to ensure that 
students and taxpayers receive a positive return on their 
investment for the Workforce Pell Grant.

                            Committee Action


                             115TH CONGRESS

Legislative Action

    On December 1, 2017, Chairwoman Virginia Foxx (R-NC) 
introduced the Promoting Real Opportunity, Success, and 
Prosperity through Education Reform Act (H.R. 4508) with 
Representative Brett Guthrie (R-KY). Additional cosponsors 
included Representatives Joe Wilson (R-SC), Duncan Hunter (R-
CA), Phil Roe (R-TN), Glenn Thompson (R-PA), Tim Walberg (R-
MI), Todd Rokita (R-IN), Lou Barletta (R-PA), Luke Messer (R-
IN), Bradley Byrne (R-AL), Dave Brat (R-VA), Elise Stefanik (R-
NY), Rick Allen (R-GA), Jason Lewis (R-MN), Francis Rooney (R-
FL), Paul Mitchell (R-MI), Tom Garrett (R-VA), Lloyd Smucker 
(R-PA), Drew Ferguson (R-GA) Ron Estes (R-KS), and Karen Handel 
(R-GA).
    The bill was referred solely to the Committee on Education 
and the Workforce. On December 12, 2017, the Committee 
considered H.R. 4508 in legislative session and reported it 
favorably, as amended, to the House of Representatives by a 
recorded vote of 23-17.

                             116TH CONGRESS

Legislative Action

    On October 15, 2019, Chairman Robert C. ``Bobby'' Scott (D-
VA) introduced the College Affordability Act (H.R. 4674) with 
Representatives Susan Davis (D-CA) Ral Grijalva (D-AZ), Joe 
Courtney (D-CT), Marcia Fudge (D-OH), Del. Gregorio Kilili 
Camacho Sablan (D-MP), Frederica Wilson (D-FL), Suzanne 
Bonamici (D-OR), Mark Takano (D-CA), Alma Adams (D-NC), Mark 
DeSaulnier (D-CA), Donald Norcross (D-NJ), Pramila Jayapal (D-
WA), Joseph Morelle (D-NY), Susan Wild (D-PA), Rep. Josh Harder 
(D-CA), Kim Schrier (D-WA), Jahana Hayes (D-CT), Donna Shalala 
(D-FL), Andy Levin (D-MI), Ilhan Omar (D-MN), David Trone (D-
MD), Susie Lee (D-NV), Lori Trahan (D-MA), and Joaquin Castro 
(D-TX).
    The bill was referred solely to the Committee on Education 
and Labor. On October 28, 2019, the Committee considered H.R. 
4674 in legislative session and reported it favorably, as 
amended, to the House of Representatives by a recorded vote of 
28-22.

                             117TH CONGRESS

First Session--Hearing

    On July 29, 2021, the Committee's Subcommittee on Higher 
Education and Workforce Investment held a virtual hearing, 
``Keeping the Pell Grant Promise: Increasing Enrollment, 
Supporting Success.'' The hearing examined trends related to 
Pell Grant eligible students' access to postsecondary 
education. Testifying before the Subcommittee were Dr. Justin 
Ortagus, Associate Professor of Higher Education Administration 
and Policy and Director of the Institute of Higher Education, 
University of Florida, Gainesville, Florida; Dr. Robert J. 
Jones, Chancellor, University of Illinois Urbana-Champaign, 
Champaign, Illinois; Dr. Michael B. Poliakoff, President, 
American Council of Trustees and Alumni, Washington, District 
of Columbia; Ms. Darleny Suriel, Student, City College of New 
York, New York, New York.

Other Legislative Action

    On February 4, 2022, the House considered H.R. 4521, the 
America Competes Act. An amendment offered by Representative 
Levin expanded Pell Grant eligibility to high-quality short- 
term skills and workforce development programs. The amendment 
passed the House by a vote of 238-193.

                             118TH CONGRESS

First Session--Hearing

    On February 8, 2023, the Committee on Education and the 
Workforce held a hearing on ``American Education in Crisis'' to 
examine the state of American education, including K-12 
education, postsecondary education, and workforce development. 
During the hearing witness Dr. Monty Sullivan made comments 
supporting expansion of Pell Grants to cover short-term 
workforce programs and responded to a question from Ranking 
Member Scott that measuring earnings as a way to determine 
value was a key component of separating effective from 
ineffective programs. Dr. Sullivan also stated that America's 
worker shortage ``is too big for America's public institutions 
only to solve.'' Mr. Scott Pulsipher echoed Dr. Sullivan, 
stating that the value of a program is more important than its 
modality. Testifying before the Committee were Mrs. Virginia 
Gentles, Director, Education Freedom Center, Independent 
Women's Forum, Arlington, Virginia; Dr. Monty Sullivan, 
President, Louisiana Community and Technical College System, 
Baton Rouge, Louisiana; Mr. Scott Pulsipher, President, Western 
Governors University, Salt Lake City, Utah; and The Hon. Jared 
Polis, Governor, State of Colorado, Denver, Colorado.
    On May 16, 2023, the Committee on Education and the 
Workforce held a hearing on ``Examining the Policies and 
Priorities of the U.S. Department of Education.'' The purpose 
of the hearing was to examine the policies and priorities of 
the U.S. Department of Education. Testifying before the 
Committee was Miguel Cardona, Secretary, U.S. Department of 
Education, Washington, District of Columbia During the hearing, 
Chairwoman Foxx made comments and asked questions regarding 
Workforce Pell in postsecondary education. Representative Lori 
Chavez-DeRemer (R-OR) asked if the Biden administration was 
supportive of Pell Grant eligibility for short-term programs 
and Secretary Cardona confirmed interest in expanding the Pell 
Grant with increased accountability and committed to working 
with the Committee on a proposal.
    On Thursday June 22, 2023, the Committee on Education and 
the Workforce held a hearing on ``Competencies Over Degrees: 
Transitioning to a Skills-Based Economy.'' The purpose of the 
hearing was to examine the rise of skills-based hiring and 
discuss policies that can facilitate an emphasis on skills to 
prepare a stronger, more competitive workforce for the 21st 
century economy. During the hearing, Ranking Member Scott made 
comments urging passage of Workforce Pell to enable access to 
short term programs. Testifying before the Committee were Dr. 
Karin Kimbrough, Chief Economist, LinkedIn, Sunnyvale, 
California; Dr. Mark Smith, Director of HR Thought Leadership, 
SHRM, Alexandria, Virginia; Mr. Dan Healey, Head of People for 
Customer Success, SAP, Newton Square, Pennsylvania; and Dr. 
Papia Debroy, Senior Vice President of Insights, 
Opportunity@Work, Washington, District of Columbia.
    On July 27, 2023, the Committee's Subcommittee on Higher 
Education and Workforce Development held a hearing on 
``Lowering the Costs and Increasing Value for Students, 
Institutions, and Taxpayers.'' The purpose of the hearing was 
to discuss ways in which the accountability system of the HEA 
can be reformed. During the hearing, witnesses testified that a 
return on investment metric, such as the value-added earnings 
metric in H.R. 496, the PELL Act, would be an appropriate 
accountability metric. Testifying before the Subcommittee were 
Dr. Andrew Gillen, Senior Policy Analyst, Texas Public Policy 
Foundation, Austin, Texas; Mr. Michael Horn, Co-Founder, 
Clayton Christensen Institute, Lexington, Massachusetts; Mr. 
Stig Leschly, Founder and President, Postsecondary Commission, 
Boston, Massachusetts; and Dr. Stephanie Cellini, Professor of 
Public Policy and Public Administration, and of Economics, The 
George Washington University, Washington District of Columbia.

Legislative Action

    On December 5, 2023, Representative Stefanik, Chairwoman 
Foxx, Ranking Member Scott, and Representative DeSaulnier 
introduced H.R. 6585, the Bipartisan Workforce Pell Act. The 
bill was referred solely to the Committee on Education and the 
Workforce. On December 12, 2023, the Committee considered H.R. 
6585 in legislative session and reported it favorably, as 
amended, to the House of Representatives by a recorded vote of 
37-8. The Committee adopted the following amendment to H.R. 
6585:
          1. Amendment in the Nature of a Substitute--
        Chairwoman Foxx offered an Amendment in the Nature of a 
        Substitute (ANS) that ensured that a state career and 
        technical education agency's definition of ``high-
        skill, high-wage'' is utilized by the state workforce 
        development board in determining program eligibility 
        for Workforce Pell Grants; added a requirement 
        regarding data formats used by institutions to post 
        Workforce Pell Grant program information on their 
        website; provided technical clarification that 
        organizations of an institution are part of an 
        applicable educational institution in determinations 
        made in section 7 of the bill; clarified a provision 
        related to the requirement of an applicable educational 
        institution to cover students' full cost of attendance; 
        and clarified that the authorization of appropriations 
        is funding to the Secretary of Education to implement 
        the program in the first five years. The ANS was 
        adopted by voice vote.

                            Committee Views


                              INTRODUCTION

    For many years, a wide range of education stakeholders, 
state elected officials, and Members of Congress have 
considered and supported allowing students to utilize their 
Pell Grants for short- term programs. Yet, Title IV of the HEA 
does not allow Pell Grants to be used for programs requiring 
fewer than 600 hours, or 15 weeks, of instruction. More 
broadly, the HEA maintains a traditional framework for 
postsecondary education delivery that reflects a time when the 
average student was an 18- to 24-year-old who could enroll in 
college full-time, earn credit hours based on class seat time, 
and have his or her financial aid disbursed based on his or her 
credit hour courseload. Today, over 30 percent of enrolled 
students are considered non-traditional, which includes 
students who are 25 years or older, took time off before 
enrolling in college, are enrolled part-time, work full- time, 
or are financially independent but supporting dependents.\1\ At 
a time when employers are eager to find workers for unfilled 
jobs in the U.S.,\2\ H.R. 6585, the Bipartisan Workforce Pell 
Act, provides a solution for low-income students to pay for 
their education while learning new industry skill sets.
---------------------------------------------------------------------------
    \1\Post-Traditional Students in Higher Education, Postsecondary 
National Policy Institute, updated Mar., 2023, at 1, https://pnpi.org/
wp-content/uploads/2023/03/PostTraditional_FactSheet_
Mar2023.pdf.
    \2\Job Openings and Labor Turnover Summary, Bureau of Labor 
Statistics, Dec. 5, 2023, https://www.bls.gov/news.release/
jolts.nr0.htm#::text=PressOffice%40bls.gov%20JOB%20 
OPENINGS,of%20Labor%20Statistics%20reported%20today.
---------------------------------------------------------------------------

Unfilled Jobs and a Skills Mismatch

    There are approximately 8.7 million job openings across the 
country.\3\ As employers work to fill these jobs, there is an 
increased demand for the skills Americans need to thrive in the 
workforce. Technological advancements are rapidly changing the 
economy, requiring workers to gain new skills in order to keep 
pace. An analysis of millions of job listings found that 37 
percent of the average job's skills have been replaced over the 
past five years.\4\ Recent breakthroughs in artificial 
intelligence (AI) have led economists to estimate that roughly 
two-thirds of U.S. occupations are exposed to some degree of 
automation by AI.\5\ In addition to the natural challenges of 
an ever-changing economy, employers are increasing their 
reliance on credentials instead of degrees as a determinant of 
a potential worker's skill, which is leading to a shift to 
skills-based hiring.\6\ It is critical for federal policy to 
recognize the importance of providing multiple pathways after 
high school; short-term programs eligible for funding under the 
Bipartisan Workforce Pell Act will provide opportunities for 
workers to reskill or upskill to remain competitive in the 
labor market, or pursue additional postsecondary education if 
they choose to do so.
---------------------------------------------------------------------------
    \3\Job Openings and Labor Turnover Summary, Bureau of Labor 
Statistics, Dec. 5, 2023, https://www.bls.gov/jlt/.
    \4\Coursera Blog, Coursera and Burning Glass Institute Release 2023 
Skills Compass Report to Help L&D Leaders Develop High ROI Learning 
Programs, Feb. 9, 2023, https://blog.coursera.org/coursera-and-burning-
glass-institute-release-2023-skills-compass-report-to-help-ld-leaders-
develop-high-roi-learning-programs/.
    \5\Generative AI could raise global GDP by 7%, Goldman Sachs, Apr. 
5, 2023, https://www.goldmansachs.com/insights/pages/generative-ai-
could-raise-global-gdp-by-7-percent.html.
    \6\Google, Apple and 12 Other companies that no longer require 
employees to have a college degree, CNBC Make It, updated Oct. 8, 2018, 
https://www.cnbc.com/2018/08/16/15-companies-that-no-longer-require-
employees-to-have-a-college-degree.html.
---------------------------------------------------------------------------

The Pell Grant as an Effective Tool

    Pell Grants are the primary federal source of need-based 
aid to low-to-moderate-income Americans in their pursuit of 
college degrees. Approximately $26 billion in Pell Grant aid 
was awarded to over six million students in fiscal year (FY) 
2021.\7\ Students are eligible to receive a Pell Grant for a 
maximum of 12 semesters.\8\ The maximum Pell Grant for an 
academic year is currently $7,395 with a minimum Pell Grant 
award amount of $750.\9\ Pell Grants are prorated by the 
student's enrollment rate (full-time or part-time) and by the 
program's length. Under the Bipartisan Workforce Pell Act, 
Workforce Pell Grants would be prorated by program length. 
Although the Pell Grant amounts may be a small fraction of cost 
of attendance in both traditional and short-term programs, we 
know the Pell Grant is effective at aiding students, especially 
first- time students, complete their education and increase 
their future earning potential.\10\ The federal government 
provides $110 billion in student loans, grants, and work-study 
funding annually.\11\ In contrast, $5.3 billion was disbursed 
for workforce development under Title I of the Workforce 
Innovation and Opportunity Act (WIOA)\12\ and $1.4 billion 
through the Perkins Career and Technical Education Act state 
grants.\13\ The Bipartisan Workforce Pell Act would take one 
small step in providing more equal funding across postsecondary 
education programs.
---------------------------------------------------------------------------
    \7\Federal Pell Grant Program of the Higher Education Act: Primer, 
Congressional Research Service, updated Jan. 24, 2023, at 1, https://
crsreports.congress.gov/product/pdf/R/
R45418#::text=The%20federal%20Pell%20Grant%20program,have%20been%20awar
ded%20 since%201973.
    \8\Id., at 10.
    \9\2023-2024 Federal Pell Grant Payment and Disbursement Schedules, 
Federal Student Aid, Jan. 26, 2023, https://fsapartners.ed.gov/
knowledge-center/library/dear-colleague-letters/2023-01-26/2023-2024-
federal-pell-grant-payment-and-disbursement-
schedules#::text=On%20December% 
2029%2C%202022%2C%20the,contribution%20(EFC)%20is%206656.
    \10\Jeffrey T. Denning, Benjamin M. Marx, and Lesley J. Turner, 
ProPelled: The Effects of Grants on Graduation, Earnings, and Welfare, 
Am Econ J Appl Econ, 2019, 11(3): 193-224, https://pubs.aeaweb.org/doi/
pdfplus/10.1257/app.20180100.
    \11\About Us, Federal Student Aid, https://studentaid.gov/about 
(last visited Dec. 15, 2023).
    \12\FY 2024 Budget in Brief, Department of Labor, https://
www.dol.gov/sites/dolgov/files/
general/budget/2024/FY2024BIB.pdf, (last visited Dec. 15, 2023).
    \13\Fiscal Year 2024 Budget Summary, Department of Education, 
https://www2.ed.gov/about/overview/budget/budget24/summary/
24summary.pdf, (last visited Dec. 15, 2023).
---------------------------------------------------------------------------

Benefits of Short-term Skills Education

    While a college degree is one of the safest investments an 
individual can make, not all college programs are created 
equal, and far too many leave students with debt they cannot 
repay or with a credential they cannot use in the labor market. 
Recent studies found that over one quarter of bachelor's degree 
programs leave students worse off financially than if they had 
not enrolled, and an estimated 40 percent of master's degrees 
provide students a negative return on investment.\14\ Research 
on the benefits of short-term programs of a variety of lengths 
is more limited than those on college degrees because data on 
such programs is more limited. However, studies generally show 
that those who attain a more occupationally focused certificate 
from a short-term program have higher rates of employment and 
earn approximately 10 percent more than those with only a high 
school diploma.\15\ Surveys of short-term programs have also 
found that graduates themselves report higher levels of 
marketability, employment, and income than those with only a 
high school diploma.\16\ Similar to traditional higher 
education programs, not all short-term programs are created 
equal. However, research has noted that with the appropriate 
measures to assess key indicators of effectiveness, short-term 
programs can produce a positive return on investment for 
students.\17\
---------------------------------------------------------------------------
    \14\How to Hold Colleges and Universities Accountable for Prices 
and Outcomes, Medium, Mar. 31, 2022, https://freopp.org/improving-
return-on-investment-in-higher-education-principles-for-
reform-e6ed38c50ae5.
    \15\Sandy Baum, Harry Holzer, Grace Luetmer, Should the Federal 
Government Fund Short-Term Postsecondary Certificate Programs? Center 
on Education Data and Policy, corrected January 2021, https://
www.urban.org/sites/default/files/publication/103370/should-the-
federal-
government-fund-short-term-postsecondary-certificate-programs_0_0.pdf.
    \16\When do Adults without Degrees Benefit from Earning 
Certificates and Certifications?, Strada, Gallup, Lumina, at 4, https:/
/cdn2.hubspot.net/hubfs/5257787/StradaLuminaGallup _Report_FiNAL-
1.pdf?utm_campaign=Gallup%20Report%3A%20Certified%20Value&utm_ 
medium=email&_hsenc=p2ANqtz-9h0k7PZ6fg0BRFf8ilhJMtKrnXN-
fqdx0Owlw55sQ2UVewVdK 
umaXctQuJzFs95gW6DR_OdQDXOyKYQKgRlPJAc7JKmw&_hsmi=74072828&utm_content 
=74072828&utm_source=hs_automation&hsCtaTracking=1354c347-29f4-4d06-
a22f-3fa5cf2aac2 d%7Cdf76db14-d0d1-472b-a716-bcbd1c1d7a34#page=4, (last 
visted Dec. 15, 2023)
    \17\Baum, supra note 15, at https://www.urban.org/sites/default/
files/publication/103370/should-the-federal-government-fund-short-term-
postsecondary-certificate-programs_0_0.pdf
---------------------------------------------------------------------------
    By providing a greater earnings potential and labor market 
value, shorter-term programs have become an increasingly 
preferred choice for students. Additionally, the adaptability 
of these education programs allows them to address developing 
workforce needs and fit into a non- traditional student's daily 
life. In fact, a 2020 survey found that 62 percent of Americans 
prefer a career path that does not require a traditional four-
year degree.\18\
---------------------------------------------------------------------------
    \18\Public Viewpoint: COVID-19 Work and Education Survey, Strada 
Center for Consumer Insights, Jun. 24, 2020, https://
stradaeducation.org/wp-content/uploads/2020/06/pv-one-pager-062420.pdf.
---------------------------------------------------------------------------
    In addition to their adaptability, short-term programs also 
are generally less expensive than traditional four-year 
degrees. While the cost of a short-term program varies widely, 
ranging between $1,000 and $10,000,\19\ the cost is still less 
than the average yearly cost of tuition and fees for a 
bachelor's degree, which is $11,260 for public institutions 
(in-state) and $41,540 for private non-profit institutions in 
the 2023-2024 award year.\20\ For many students, quality short-
term programs may be a better financial option than traditional 
higher education, providing an alternative with a shorter time 
to a credential and a high paying job.
---------------------------------------------------------------------------
    \19\Finding the Right Training, TrainingProviderResults.gov, 
https://www.training providerresults.gov/#!/about (last visited Dec. 
15, 2023).
    \20\Trends in College Pricing and Student Aid 2023, College Board, 
Nov. 2023, https://
research.collegeboard.org/media/pdf/Trends 
%20Report%202023%20Updated.pdf.
---------------------------------------------------------------------------

An Effective Workforce Pell Grant Framework

    H.R. 6585 is a bipartisan solution that addresses a 
shortcoming present in past short-term Pell Grant legislative 
proposals, situating the program in both the higher education 
and workforce systems. Acknowledging that short-term skills 
education programs participate, or will participate, in both 
the WIOA and HEA systems, this bill aligns these two systems. 
In effect, Workforce Pell Grant programs are not asked to meet 
burdensome HEA requirements that are incongruent with the WIOA 
system.
    H.R. 6585 would first require a state workforce development 
board to determine whether a short-term program meets three 
requirements to ensure the program is aligned with industry 
needs. This is directly aligned with requirements from WIOA and 
ensures that programs prepare students for in-demand 
occupations.
    Second, the bill requires that an accrediting body 
determine the short-term program has met another six 
requirements, ensuring accreditors will play a role in 
overseeing Workforce Pell Grant programs. In addition to 
relying on accrediting bodies already recognized by the 
Department of Education (ED), H.R. 6585 facilitates a 
streamlined process for new entities to become recognized 
accreditors solely to oversee Workforce Pell Grant programs. 
Engaging new accreditors with experience gauging the 
effectiveness of in-demand skills education will bring a fresh 
perspective to program monitoring.
    Finally, ED would be required to determine if a short-term 
program meets four additional outcome metrics. To be eligible 
for funding, a program must have at least a 70 percent job 
placement rate and a 70 percent completion rate. In addition to 
these concrete metrics, programs must provide enough of an 
earnings boost for Workforce Pell Grant recipients one year 
after graduation to exceed the cost of the program and produce 
median earnings for Workforce Pell Grant recipients that are 
not less than a high school graduate in the state for at least 
two of three recent years. These four measures will be 
recalculated every year by ED for a program to maintain 
eligibility. As a result of this three-pronged approach, 
Workforce Pell Grant programs will have more accountability 
requirements to meet than all other Title IV programs.
    Because of these high guardrails, H.R. 6585 allows all 
short-term providers, even when delivering education online, to 
participate if their short-term program meets these 
accountability measures. Students and workers should have the 
option to choose the institution and education delivery model 
that meets their specific needs, especially because eligible 
programs will have proven they can meet a substantially higher 
bar than traditional Pell Grants programs. In fact, in order to 
reach the students and workers demanding short-term relevant 
education, limiting what types of providers are eligible for 
Workforce Pell Grants would have a negative effect on meeting 
our workforce needs.
    Demand continues to grow for online education. Between 2012 
and 2019, students who chose hybrid and distance education-only 
grew by 36 percent. Unsurprisingly, the pandemic introduced 
online learning to almost every student.\21\ A 2022 national 
survey found that the number of high school respondents 
planning to attend a fully online education provider had 
doubled from 2020.\22\ Online program schedules can often 
provide more convenience for students, and fully online short-
term programs may be especially appropriate for programs in 
growing fields like cybersecurity, information technology, 
finance, and software development whose core skillsets involve 
high levels of computer and technological fluency. Excluding 
online short-term programs would signal that online education 
in postsecondary education should not be a delivery model of 
the future, which runs counter to the trends of industry and 
American life. To ensure high-quality online education through 
Workforce Pell Grant programs, H.R. 6585 requires programs to 
have appropriate levels of engagement between students and 
faculty during their program commensurate to traditional higher 
education programs delivered in online settings.
---------------------------------------------------------------------------
    \21\Nadine Diaz-Infante, Michael Lazar, Samvitha Ram, and Austin 
Ray, Demand for online education is growing. Are providers ready? 
McKinsey & Company Education, Jul. 20. 2022, https://www.mckinsey.com/
industries/education/our-insights/demand-for-online-education-is-
growing-are-providers-ready.
    \22\A Surge in Young Undergrads, Fully Online, Inside Higher Ed, 
Oct. 13, 2022, https://www.insidehighered.com/news/2022/10/14/more-
traditional-age-students-enroll-fully-online-
universities.
---------------------------------------------------------------------------
    In a similar way, excluding for-profit institutions from 
Workforce Pell Grants would limit access to institutions that 
may be the best choice for a student or worker because of 
location or the types of programs offered. H.R. 6585 promotes 
access for students by casting a wide net to allow online 
education and all institutions to serve as Workforce Pell Grant 
providers.
    H.R. 6585 also includes new policies not found in other 
short-term program legislation to refocus what should be 
required of an effective short-term postsecondary education 
program. For example, H.R. 6585 requires a Workforce Pell Grant 
program to post the specific competencies a Workforce Pell 
Grant program provides to its graduates. With more Americans 
turning towards skills-based education, the credentials these 
programs award are a vital signal of an individual's mastery of 
industry-relevant skills and competencies. By facilitating more 
consistent and transparent information on what competencies a 
credential provides, employers seeking to implement skills-
based hiring will be better able to gauge the skills a worker 
possesses and determine their ability to perform a job 
successfully.

                               CONCLUSION

    H.R. 6585, the Bipartisan Workforce Pell Act, provides 
opportunities for students and workers looking to gain skills 
in high-demand fields by allowing Pell Grants to support 
students enrolled in high-quality, short-term education 
programs that will lead to career advancement. Through robust 
guardrails to measure the value of short-term programs, 
Workforce Pell Grants will enable a new generation of students 
to connect with meaningful employment, provide in-demand 
businesses with more high-skill workers, and reverse the 
critical worker shortage. H.R. 6585 produces benefits across 
the economy, taking an important step to align education 
opportunities to workforce needs.

                                Summary

    H.R. 6585 authorizes Pell Grants for short-term programs of 
at least 150 clock hours of instruction but no more than 600 
clock hours, or the equivalent number of credit hours, and 
offered during a minimum of eight weeks but less than 15 weeks. 
The bill would require state workforce development boards, 
accreditors, and the Secretary to determine whether a short-
term program has met multiple requirements before a program can 
become eligible for a Workforce Pell Grant.

                  H.R. 6585 SECTION-BY-SECTION SUMMARY

Section 1. Short title

    Bipartisan Workforce Pell Act

Section 2. Workforce Pell Grants

    This section authorizes the Department of Education (ED) to 
award Workforce Pell Grants beginning on July 1, 2025, for the 
2025-2026 award year. An eligible student for a Workforce Pell 
Grant must be enrolled in an eligible workforce program, may 
not have attained a postgraduate degree, and must otherwise 
meet the eligibility criteria to receive a Pell Grant.
    The grant will have the same terms and conditions and will 
be awarded in the same manner as other Pell Grants. This 
includes allowing certain students to receive a Workforce Pell 
Grant less than the minimum Pell Grant since the grant will be 
prorated by the program's length. No eligible student may 
receive both a Workforce Pell Grant and a regular Pell Grant in 
the same enrollment period. Workforce Pell Grants will count 
towards a student's lifetime eligibility for the regular Pell 
Grant.

Section 3. Program eligibility for Workforce Pell Grants

    This section adds eligible workforce programs, of at least 
150 clock hours of instruction (or an equivalent number of 
credit hours) but less than 600 clock hours of instruction, 
offered during a minimum of eight weeks but less than 15 weeks, 
to the list of eligible programs for the purposes of Title IV. 
A Workforce Pell Grant program may not be a correspondence 
course.
    In order to be an eligible program, a state workforce board 
authorized under WIOA must first determine if a program 
provides education aligned with high-skill, high-wage, or in-
demand industry sectors or occupations, meets the hiring 
requirements of potential in-demand industry or sector 
employers, and satisfies any applicable educational 
prerequisite requirement for professional licensure or 
certification in the state or states in which the program is 
offered, as applicable.
    A recognized accreditor must then determine if the program:
           leads to a recognized postsecondary 
        credential that provides academic credit that is 
        stackable towards one or more certificate or degree 
        programs. Programs that prepare students for 
        occupations where there is only one recognized 
        postsecondary credential do not have to be stackable.
           leads to a recognized postsecondary 
        credential that is portable across more than one 
        employer.
           makes public on the institution website 
        information on the recognized postsecondary credential 
        provided by the program, including any third-party 
        endorsements of the credential, the occupations the 
        credential prepares a student for, the competencies 
        achieved to earn the credential.
           provides a written disclosure to and 
        confirmation of receipt of the disclosure from 
        prospective students.
           ensures students will have access to 
        transcripts for the completed coursework without a fee.
           has been offering instruction for not less 
        than one year before an accreditor determines 
        eligibility.
    ED will then determine if a program:
           has a verified completion rate of at least 
        70 percent, within 150 percent of normal time of 
        completion.
           has a verified job placement rate of at 
        least 70 percent, measured 180 days after completion.
           provides a positive return on investment for 
        students and taxpayers by which the total amount of 
        tuition and fees charged to a Workforce Pell Grant 
        recipient will not exceed the value-added earnings of 
        the recipient one year after he or she completes the 
        program.
                   the value-added earnings metric 
                is calculated as the difference between the 
                median earnings of such students receiving 
                federal financial aid who completed the program 
                and 150 percent of the federal poverty line 
                (FPL) for a single individual, adjusted for the 
                geographic location of the institution offering 
                the program.
                   Example: A program is eligible 
                for Workforce Pell Grants if the value-added 
                earnings are greater than or equal to the 
                tuition and fees charged to Pell Grant 
                recipients.
                  Value-Added Earnings  Tuition and Fees
                  Where:
                   Median Earnings measured one year 
                after students complete: $33,870
                   150 percent FPL = $21,870
                   Tuition and Fees: $10,000
          Value-added earnings ($33,870-$21,870 = $12,000) > 
        Tuition and Fees ($10,000) = PASS
           for at least two of the three most recent 
        award years, the median earnings of Workforce Pell 
        Grant recipients must not be less than the median 
        earnings of a high school graduate in the state in 
        which the program is located.
    ED must establish a process allowing programs to submit 
alternate data for the purpose of gaining initial provisional 
eligibility and appealing ED data determinations for eligible 
programs. Programs must submit other local, state, or federal 
administrative data sources to comply with the program 
eligibility requirements. If ED determines that such 
alternative earnings data is inaccurate, the program must 
return any Workforce Pell Grant funds received during the 
provisional eligibility period. In the case of determining 
program eligibility of small programs, ED must aggregate (up to 
four years of) additional data for a program to obtain 
sufficient data to maintain student privacy. If this is 
insufficient to maintain student privacy, ED must aggregate 
data for students in similar programs. For purposes of 
publishing the required outcomes data for small programs, ED 
must aggregate data by the same methods for program 
eligibility, but if these methods are still insufficient to 
maintain student privacy, or data is not available or cannot be 
aggregated, data must be aggregated at the institution level.
    If a program meets the requirements of this section, ED 
must grant eligibility no more than 120 days after ED receives 
the program's application. After being an eligible workforce 
program for three years, an institution must use common, 
linked, open, and interoperable data formats when posting the 
required information on the institution's website.

Section 4. Data collection and dissemination related to workforce Pell 
        Grants

    This section requires ED to use current administrative data 
maintained by ED, matched with Internal Revenue Service income 
data, to implement the data collection requirements and all 
necessary calculations required by the bill. ED is required to 
annually collect, verify, and make publicly available on the 
College Scorecard data related to each Workforce Pell Grant 
program, except when disclosure of any of the data is 
prohibited under state or federal privacy laws or regulations. 
In those cases, ED must make publicly available the data in 
accordance with those laws and regulations.

Section 5. Accreditation agency determination of eligibility 
        requirements for the Workforce Pell Grants Program

    If a recognized accreditor has or seeks to include within 
its scope of recognition the evaluation of Workforce Pell Grant 
programs, then the accreditor must demonstrate to ED that its 
standards include a process for determining if an institution 
has the capability to effectively offer a Workforce Pell Grant 
program and requires that programs satisfy the bill's 
requirements.
    The bill provides an efficient process for prospective 
accreditors seeking to only evaluate Workforce Pell Grant 
programs to receive initial recognition by ED. ED is also 
required to provide technical assistance to any prospective 
accreditor seeking initial recognition.
    During the initial five years following enactment of the 
bill, a recognized accreditor that seeks to expand its scope of 
recognition to evaluate Workforce Pell Grant programs must 
notify ED of its intent to receive interim accreditation 
authority. The accreditor must also submit documentation to ED 
that the agency has standards and a process in place for 
determining if an institution has the capability to meet the 
requirements to be an eligible Workforce Pell Grant program.
    This section requires ED to direct the National Advisory 
Committee on Institutional Quality and Integrity to hold 
additional meetings through 2030 to evaluate the recognition of 
prospective accreditors and the additions to scope for 
recognized accreditors.

Section 6. Rule of construction

    Nothing in this bill should be construed to impose or 
increase an occupational licensing or certification requirement 
on programs participating in Title IV.

Section 7. Agreements with applicable educational institutions

    This section provides mandatory savings for the complete 
cost of the bill. It prohibits an applicable educational 
institution, that is subject to an excise tax on investment 
income of private institutions, from awarding a Federal Direct 
Stafford Loan, a Federal Direct Unsubsidized Stafford loan, or 
a Federal Direct Plus Loan to any eligible student. Applicable 
educational institutions also must not award a Federal Direct 
Plus Loan to a parent of a Pell Grant recipient. As a condition 
of receiving funding under the Federal Supplemental Educational 
Opportunity Grant program, an applicable educational 
institution must cover the full cost of attendance to Pell 
Grant recipients at the institution, but institutional aid and 
other outside grants and scholarships may help cover this cost. 
An institution must also maintain or increase Pell Grant 
enrollment each subsequent award year.

Section 8. Authorization of appropriations

    In addition to funds made available for Workforce Pell 
Grants, this section authorizes $40 million for fiscal year 
2025 and $30 million for four additional fiscal years for ED to 
implement the bill.

                       Explanation of Amendments

    The amendments, including the amendment in the nature of a 
substitute, are explained in the body of this report.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. H.R. 6585 would extend Pell Grant eligibility to high-
quality, short-term education programs that provide low-income 
students and workers opportunities to quickly advance their 
careers so it does not apply to the Legislative Branch.

                       Unfunded Mandate Statement

    Pursuant to Section 423 of the Congressional Budget and 
Impoundment Control Act (as amended by Section 101(a)(2) of the 
Unfunded Mandates Reform Act, P.L. 104-4) the Committee adopts 
as its own the cost estimate being prepared by the 
Congressional Budget Office (CBO).

                           Earmark Statement

    H.R. 6585 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of House Rule XXI.

                            Roll Call Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee Report to include for 
each record vote on a motion to report the measure or matter 
and on any amendments offered to the measure or matter the 
total number of votes for and against and the names of the 
Members voting for and against.


         Statement of General Performance Goals and Objectives

    In accordance with clause (3)(c) of House rule XIII, the 
goal of H.R. 6585, the Bipartisan Workforce Pell Act, is to 
extend Pell Grant eligibility to high-quality, short-term 
education programs that provide low-income students and workers 
opportunities to quickly advance their careers.

                    Duplication of Federal Programs

    No provision of H.R. 6585 establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the committee's oversight findings and recommendations are 
reflected in the body of this report.

                       Required Committee Hearing

    In compliance with clause 3(c)(6) of rule XIII the 
following hearings held during the 118th Congress were used to 
develop or consider H.R. 6585: on February 8, 2023, the 
Committee on Education and the Workforce held a hearing on 
``American Education in Crisis''; on May 16, 2023, the 
Committee on Education and the Workforce held a hearing on 
``Examining the Policies and Priorities of the U.S. Department 
of Education''; on Thursday June 22, 2023, the Committee on 
Education and the Workforce held a hearing on ``Competencies 
Over Degrees: Transitioning to a Skills-Based Economy''; and on 
July 27, 2023, the Committee's Subcommittee on Higher Education 
and Workforce Development held a hearing on ``Lowering the 
Costs and Increasing Value for Students, Institutions, and 
Taxpayers.''

               New Budget Authority and CBO Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause 3(c)(3) of rule XIII of the Rules of 
the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has requested 
but not received a cost estimate for the bill from the Director 
of the Congressional Budget Office. The Chairwoman of the 
Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

                        Committee Cost Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison of the 
costs that would be incurred in carrying out H.R. 6585. 
However, clause 3(d)(2)(B) of that rule provides that this 
requirement does not apply when, as with the present report, 
the Committee has requested a cost estimate for the bill from 
the Director of the Congressional Budget Office.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                      HIGHER EDUCATION ACT OF 1965




           *       *       *       *       *       *       *
TITLE I--GENERAL PROVISIONS

           *       *       *       *       *       *       *


                    PART C--COST OF HIGHER EDUCATION

SEC. 131. IMPROVEMENTS IN MARKET INFORMATION AND PUBLIC ACCOUNTABILITY 
                    IN HIGHER EDUCATION.

  (a) Improved Data Collection.--
          (1) Development of uniform methodology.--The 
        Secretary shall direct the Commissioner of Education 
        Statistics to convene a series of forums to develop 
        nationally consistent methodologies for reporting costs 
        incurred by postsecondary institutions in providing 
        postsecondary education.
          (2) Redesign of data systems.--On the basis of the 
        methodologies developed pursuant to paragraph (1), the 
        Secretary shall redesign relevant parts of the 
        postsecondary education data systems to improve the 
        usefulness and timeliness of the data collected by such 
        systems.
          (3) Information to institutions.--The Commissioner of 
        Education Statistics shall--
                  (A) develop a standard definition for the 
                following data elements:
                          (i) tuition and fees for a full-time 
                        undergraduate student;
                          (ii) cost of attendance for a full-
                        time undergraduate student, consistent 
                        with the provisions of section 472;
                          (iii) average amount of financial 
                        assistance received by an undergraduate 
                        student who attends an institution of 
                        higher education, including--
                                  (I) each type of assistance 
                                or benefit described in section 
                                428(a)(2)(C)(ii);
                                  (II) fellowships; and
                                  (III) institutional and other 
                                assistance; and
                          (iv) number of students receiving 
                        financial assistance described in each 
                        of subclauses (I), (II), and (III) of 
                        clause (iii);
                  (B) not later than 90 days after the date of 
                enactment of the Higher Education Amendments of 
                1998, report the definitions to each 
                institution of higher education and within a 
                reasonable period of time thereafter inform the 
                authorizing committees of those definitions; 
                and
                  (C) collect information regarding the data 
                elements described in subparagraph (A) with 
                respect to at least all institutions of higher 
                education participating in programs under title 
                IV, beginning with the information from 
                academic year 2000-2001 and annually 
                thereafter.
  (b) Data Dissemination.--The Secretary shall make available 
the data collected pursuant to subsection (a). Such data shall 
be available in a form that permits the review and comparison 
of the data submissions of individual institutions of higher 
education. Such data shall be presented in a form that is 
easily understandable and allows parents and students to make 
informed decisions based on the costs for typical full-time 
undergraduate students.
  (c) Study.--
          (1) In general.--The Commissioner of Education 
        Statistics shall conduct a national study of 
        expenditures at institutions of higher education. Such 
        study shall include information with respect to--
                  (A) the change in tuition and fees compared 
                with the consumer price index and other 
                appropriate measures of inflation;
                  (B) faculty salaries and benefits;
                  (C) administrative salaries, benefits and 
                expenses;
                  (D) academic support services;
                  (E) research;
                  (F) operations and maintenance; and
                  (G) institutional expenditures for 
                construction and technology and the potential 
                cost of replacing instructional buildings and 
                equipment.
          (2) Evaluation.--The study shall include an 
        evaluation of--
                  (A) changes over time in the expenditures 
                identified in paragraph (1);
                  (B) the relationship of the expenditures 
                identified in paragraph (1) to college costs; 
                and
                  (C) the extent to which increases in 
                institutional financial aid and tuition 
                discounting practices affect tuition increases, 
                including the demographics of students 
                receiving such discounts, the extent to which 
                financial aid is provided to students with 
                limited need in order to attract a student to a 
                particular institution, and the extent to which 
                Federal financial aid, including loan aid, has 
                been used to offset the costs of such 
                practices.
          (3) Final report.--The Commissioner of Education 
        Statistics shall submit a report regarding the findings 
        of the study required by paragraph (1) to the 
        appropriate committees of Congress not later than 
        September 30, 2002.
          (4) Higher education market basket.--The Bureau of 
        Labor Statistics, in consultation with the Commissioner 
        of Education Statistics, shall develop a higher 
        education market basket that identifies the items that 
        comprise the costs of higher education. The Bureau of 
        Labor Statistics shall provide a report on the market 
        basket to the Committee on Labor and Human Resources of 
        the Senate and the Committee on Education and the 
        Workforce of the House of Representatives not later 
        than September 30, 2002.
          (5) Fines.--In addition to actions authorized in 
        section 487(c), the Secretary may impose a fine in an 
        amount not to exceed $25,000 on an institution of 
        higher education for failing to provide the information 
        described in paragraph (1) in a timely and accurate 
        manner, or for failing to otherwise cooperate with the 
        National Center for Education Statistics regarding 
        efforts to obtain data on the cost of higher education 
        under this section and pursuant to the program 
        participation agreement entered into under section 487.
  (d) Promotion of the Department of Education Federal Student 
Financial Aid Website.--The Secretary shall display a link to 
the Federal student financial aid website of the Department in 
a prominent place on the homepage of the Department's website.
  (e) Enhanced Student Financial Aid Information.--
          (1) Implementation.--The Secretary shall continue to 
        improve the usefulness and accessibility of the 
        information provided by the Department on college 
        planning and student financial aid.
          (2) Dissemination.--The Secretary shall continue to 
        make the availability of the information on the Federal 
        student financial aid website of the Department widely 
        known, through a major media campaign and other forms 
        of communication.
          (3) Coordination.--As a part of the efforts required 
        under this subsection, the Secretary shall create one 
        website accessible from the Department's website that 
        fulfills the requirements under subsections (b), (f), 
        and (g).
  (f) Improved Availability and Coordination of Information 
Concerning Student Financial Aid Programs for Military Members 
and Veterans.--
          (1) Coordination.--The Secretary, in coordination 
        with the Secretary of Defense and the Secretary of 
        Veterans Affairs, shall create a searchable website 
        that--
                  (A) contains information, in simple and 
                understandable terms, about all Federal and 
                State student financial assistance, readmission 
                requirements under section 484C, and other 
                student services, for which members of the 
                Armed Forces (including members of the National 
                Guard and Reserves), veterans, and the 
                dependents of such members or veterans may be 
                eligible; and
                  (B) is easily accessible through the website 
                described in subsection (e)(3).
          (2) Implementation.--Not later than one year after 
        the date of enactment of the Higher Education 
        Opportunity Act, the Secretary shall make publicly 
        available the Armed Forces information website 
        described in paragraph (1).
          (3) Dissemination.--The Secretary, in coordination 
        with the Secretary of Defense and the Secretary of 
        Veterans Affairs, shall make the availability of the 
        Armed Forces information website described in paragraph 
        (1) widely known to members of the Armed Forces 
        (including members of the National Guard and Reserves), 
        veterans, the dependents of such members or veterans, 
        States, institutions of higher education, and the 
        general public.
          (4) Definition.--In this subsection, the term 
        ``Federal and State student financial assistance'' 
        means any grant, loan, work assistance, tuition 
        assistance, scholarship, fellowship, or other form of 
        financial aid for pursuing a postsecondary education 
        that is--
                  (A) administered, sponsored, or supported by 
                the Department of Education, the Department of 
                Defense, the Department of Veterans Affairs, or 
                a State; and
                  (B) available to members of the Armed Forces 
                (including members of the National Guard and 
                Reserves), veterans, or the dependents of such 
                members or veterans.
  (g) Promotion of Availability of Information Concerning Other 
Student Financial Aid Programs.--
          (1) Definition.--For purposes of this subsection, the 
        term ``nondepartmental student financial assistance 
        program'' means any grant, loan, scholarship, 
        fellowship, or other form of financial aid for students 
        pursuing a postsecondary education that is--
                  (A) distributed directly to the student or to 
                the student's account at an institution of 
                higher education; and
                  (B) operated, sponsored, or supported by a 
                Federal department or agency other than the 
                Department of Education.
          (2) Availability of other student financial aid 
        information.--The Secretary shall ensure that--
                  (A) not later than 90 days after the 
                Secretary receives the information required 
                under paragraph (3), the eligibility 
                requirements, application procedures, financial 
                terms and conditions, and other relevant 
                information for each nondepartmental student 
                financial assistance program are searchable and 
                accessible through the Federal student 
                financial aid website in a manner that is 
                simple and understandable for students and the 
                students' families; and
                  (B) the website displaying the information 
                described in subparagraph (A) includes a link 
                to the National Database on Financial 
                Assistance for the Study of Science, 
                Technology, Engineering, and Mathematics 
                pursuant to paragraph (4), and the information 
                on military benefits under subsection (f), once 
                such Database and information are available.
          (3) Nondepartmental student financial assistance 
        programs.--The Secretary shall request all Federal 
        departments and agencies to provide the information 
        described in paragraph (2)(A), and each Federal 
        department or agency shall--
                  (A) promptly respond to surveys or other 
                requests from the Secretary for the information 
                described in such paragraph; and
                  (B) identify for the Secretary any 
                nondepartmental student financial assistance 
                program operated, sponsored, or supported by 
                such Federal department or agency.
          (4) National stem database.--
                  (A) In general.--The Secretary shall 
                establish and maintain, on the website 
                described in subsection (e)(3), a National 
                Database on Financial Assistance for the Study 
                of Science, Technology, Engineering, and 
                Mathematics (in this paragraph referred to as 
                the ``STEM Database''). The STEM Database shall 
                consist of information on scholarships, 
                fellowships, and other programs of Federal, 
                State, local, and, to the maximum extent 
                practicable, private financial assistance 
                available for the study of science, technology, 
                engineering, or mathematics at the 
                postsecondary and postbaccalaureate levels.
                  (B) Database contents.--The information 
                maintained on the STEM Database shall be 
                displayed on the website in the following 
                manner:
                          (i) Separate information.--The STEM 
                        Database shall provide separate 
                        information for each of the fields of 
                        science, technology, engineering, and 
                        mathematics, and for postsecondary and 
                        postbaccalaureate programs of financial 
                        assistance.
                          (ii) Information on targeted 
                        assistance.--The STEM Database shall 
                        provide specific information on any 
                        program of financial assistance that is 
                        targeted to individuals based on 
                        financial need, merit, or student 
                        characteristics.
                          (iii) Contact and website 
                        information.--The STEM Database shall 
                        provide--
                                  (I) standard contact 
                                information that an interested 
                                person may use to contact a 
                                sponsor of any program of 
                                financial assistance included 
                                in the STEM Database; and
                                  (II) if such sponsor 
                                maintains a public website, a 
                                link to the website.
                          (iv) Search and match capabilities.--
                        The STEM Database shall--
                                  (I) have a search capability 
                                that permits an individual to 
                                search for information on the 
                                basis of each category of the 
                                information provided through 
                                the STEM Database and on the 
                                basis of combinations of 
                                categories of the information 
                                provided, including--
                                          (aa) whether the 
                                        financial assistance is 
                                        need- or merit-based; 
                                        and
                                          (bb) by relevant 
                                        academic majors; and
                                  (II) have a match capability 
                                that--
                                          (aa) searches the 
                                        STEM Database for all 
                                        financial assistance 
                                        opportunities for which 
                                        an individual may be 
                                        qualified to apply, 
                                        based on the student 
                                        characteristics 
                                        provided by such 
                                        individual; and
                                          (bb) provides 
                                        information to an 
                                        individual for only 
                                        those opportunities for 
                                        which such individual 
                                        is qualified, based on 
                                        the student 
                                        characteristics 
                                        provided by such 
                                        individual.
                          (v) Recommendation and disclaimer.--
                        The STEM Database shall provide, to the 
                        users of the STEM Database--
                                  (I) a recommendation that 
                                students and families should 
                                carefully review all of the 
                                application requirements prior 
                                to applying for any aid or 
                                program of student financial 
                                assistance; and
                                  (II) a disclaimer that the 
                                non-Federal programs of student 
                                financial assistance presented 
                                in the STEM Database are not 
                                provided or endorsed by the 
                                Department or the Federal 
                                Government.
                  (C) Compilation of financial assistance 
                information.--In carrying out this paragraph, 
                the Secretary shall--
                          (i) consult with public and private 
                        sources of scholarships, fellowships, 
                        and other programs of student financial 
                        assistance; and
                          (ii) make easily available a process 
                        for such entities to provide regular 
                        and updated information about the 
                        scholarships, fellowships, or other 
                        programs of student financial 
                        assistance.
                  (D) Contract authorized.--In carrying out the 
                requirements of this paragraph, the Secretary 
                is authorized to enter into a contract with a 
                private entity with demonstrated expertise in 
                creating and maintaining databases such as the 
                one required under this paragraph, under which 
                contract the entity shall furnish, and 
                regularly update, all of the information 
                required to be maintained on the STEM Database.
          (5) Dissemination of information.--The Secretary 
        shall take such actions, on an ongoing basis, as may be 
        necessary to disseminate information under this 
        subsection and to encourage the use of the information 
        by interested parties, including sending notices to 
        secondary schools and institutions of higher education.
  (h) No User Fees for Department Financial Aid Websites.--No 
fee shall be charged to any individual to access--
          (1) a database or website of the Department that 
        provides information about higher education programs or 
        student financial assistance, including the College 
        Navigator website (or successor website) and the 
        websites and databases described in this section and 
        section 132; or
          (2) information about higher education programs or 
        student financial assistance available through a 
        database or website of the Department.
  (i) Data Collection and Dissemination Related to Workforce 
Pell.--
          (1) Primary data source.--The Secretary shall use 
        data from the National Student Loan Data System or 
        administrative data maintained by the Department, 
        matched with Internal Revenue Service income data to 
        collect data and make calculations in accordance with 
        this subsection and section 481(b)(3).
          (2) Publication.--The Secretary shall, on an annual 
        basis, collect, verify, and make publicly available on 
        the College Scorecard website (or any similar successor 
        website), the information required under section 
        481(b)(3)(A)(v), with respect to each eligible program 
        under section 481(b)(3) (hereinafter referred to as an 
        ``eligible workforce program''), including--
                  (A) the length of the program (as measured in 
                clock hours, credit hours, or weeks);
                  (B) the required tuition and fees of the 
                program;
                  (C) the difference between the required 
                tuition and fees described in section 
                481(b)(3)(A)(v)(III) and median amount of grant 
                aid (which does not need to be repaid) provided 
                to students receiving Workforce Pell Grants, 
                disaggregated by source of such grant aid;
                  (D) the median earnings of students as such 
                term is defined in section 481(b)(3)(E);
                  (E) the median earnings of students who did 
                not complete the program and received Federal 
                financial assistance under this title;
                  (F) the ratio of the amount described in 
                subparagraph (C) to the value-added earnings 
                (as such term is defined in section 
                481(b)(3)(E)) of students and an explanation, 
                in clear and plain language, of this ratio;
                  (G) in the case of a program that prepares 
                students for a professional licensure or 
                certification examination, the share of such 
                students who pass such examinations;
                  (H) the number of students enrolled in the 
                program during the most recent academic year 
                for which data is available;
                  (I) the percentage of students who enroll in 
                the program and who complete the program 
                within--
                          (i) 100 percent of the normal time 
                        for completion of such program;
                          (ii) 150 percent of the normal time 
                        for completion of such program; and
                          (iii) 200 percent of the normal time 
                        for completion of such program;
                  (J) the percentage of students who are 
                employed not later than 180 days and 1 year, 
                respectively, after completing the program;
                  (K) the percentage of individuals--
                          (i) who have completed such program; 
                        and
                          (ii) 1 year after such completion, 
                        whose median earnings exceed 150 
                        percent of the poverty line applicable 
                        to a single individual, as determined 
                        under section 673(2) of the Community 
                        Services Block Grant Act (42 U.S.C. 
                        9902(2));
                  (L) the percentage of students who enroll in 
                a certificate or degree program at any 
                institution of higher education within 1 year 
                of completing such program; and
                  (M) the percentage of students who complete a 
                subsequent certificate or degree program at any 
                institution of higher education within 6 years 
                of completing such program.
          (3) Data disaggregation.--The information in 
        subparagraphs (D), (E), and (H) through (M) shall be 
        disaggregated by--
                  (A) sex;
                  (B) race and ethnicity;
                  (C) income quintile, as defined by the 
                Secretary; and
                  (D) status as a recipient of a Workforce Pell 
                Grant.
          (4) Exceptions.--Notwithstanding any other provision 
        of this subsection, if disclosure of any data under 
        paragraph (1) is prohibited under State or Federal 
        privacy laws or regulations, the Secretary shall take 
        the steps described in paragraph (5), and any other 
        steps determined by the Secretary to be necessary to 
        make publicly available such data in accordance with 
        such laws and regulations.
          (5) Small programs.--
                  (A) Aggregation.--For purposes of publishing 
                the information described in this subsection 
                with respect to an eligible workforce program, 
                for any year for which the number of students 
                is determined by the Secretary to be of 
                insufficient size to maintain the privacy of 
                student data, the Secretary shall, to obtain 
                data for a sufficient number of students to 
                maintain student privacy--
                          (i) aggregate up to 4 years of 
                        additional data for such program;
                          (ii) only if the aggregated data 
                        under clause (i) is insufficient to 
                        maintain student privacy or cannot be 
                        aggregated, aggregate data for students 
                        who completed or were enrolled in, as 
                        applicable, similar programs at the 
                        institution (as determined using the 
                        first 4 digits of the CIP codes); or
                          (iii) only if the aggregated data 
                        under clause (ii) is insufficient to 
                        maintain student privacy or cannot be 
                        aggregated, aggregate data with respect 
                        to all students who completed or were 
                        enrolled in, as applicable, any program 
                        of the institution of the same 
                        credential level, in lieu of data 
                        specific to students in such program.
                  (B) Notification of aggregation.--The 
                Secretary shall prominently indicate whether 
                data published under this subsection has been 
                aggregated in accordance with subparagraph (A).
                  (C) CIP code defined.--For purposes of this 
                paragraph, the term ``CIP code'' means the 6-
                digit taxonomic identification code assigned by 
                an institution of higher education to a 
                specific program of study at the institution, 
                determined by the institution in accordance 
                with the Classification of Instructional 
                Programs published by the National Center for 
                Education Statistics.

           *       *       *       *       *       *       *


                      TITLE IV--STUDENT ASSISTANCE


  Part A--Grants to Students in Attendance at Institutions of Higher 
Education

           *       *       *       *       *       *       *



                     Subpart 1--Federal Pell Grants

SEC. 401. FEDERAL PELL GRANTS: AMOUNT AND DETERMINATIONS; APPLICATIONS.

  (a) Program Authority and Method of Distribution.--(1) For 
each fiscal year through fiscal year 2017, the Secretary shall 
pay to each eligible institution such sums as may be necessary 
to pay to each eligible student (defined in accordance with 
section 484) for each academic year during which that student 
is in attendance at an institution of higher education, as an 
undergraduate, a Federal Pell Grant in the amount for which 
that student is eligible, as determined pursuant to subsection 
(b). Not less than 85 percent of such sums shall be advanced to 
eligible institutions prior to the start of each payment period 
and shall be based upon an amount requested by the institution 
as needed to pay eligible students until such time as the 
Secretary determines and publishes in the Federal Register with 
an opportunity for comment, an alternative payment system that 
provides payments to institutions in an accurate and timely 
manner, except that this sentence shall not be construed to 
limit the authority of the Secretary to place an institution on 
a reimbursement system of payment.
  (2) Nothing in this section shall be interpreted to prohibit 
the Secretary from paying directly to students, in advance of 
the beginning of the academic term, an amount for which they 
are eligible, in cases where the eligible institution elects 
not to participate in the disbursement system required by 
paragraph (1).
  (3) Grants made under this subpart shall be known as 
``Federal Pell Grants''.
  (b) Purpose and Amount of Grants.--(1) The purpose of this 
subpart is to provide a Federal Pell Grant that in combination 
with reasonable family and student contribution and 
supplemented by the programs authorized under subparts 3 and 4 
of this part, will meet at least 75 percent of a student's cost 
of attendance (as defined in section 472), unless the 
institution determines that a greater amount of assistance 
would better serve the purposes of this section.
  (2)
          (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 (7)(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.
  (B) In any case where a student attends an institution of 
higher education on less than a full-time basis (including a 
student who attends an institution of higher education on less 
than a half-time basis) during any academic year, the amount of 
the Federal Pell Grant to which that student is entitled shall 
be reduced in proportion to the degree to which that student is 
not so attending on a full-time basis, in accordance with a 
schedule of reductions established by the Secretary for the 
purposes of this division, computed in accordance with this 
subpart. Such schedule of reductions shall be established by 
regulation and published in the Federal Register in accordance 
with section 482 of this Act.
  (3) No Federal Pell Grant under this subpart shall exceed the 
difference between the expected family contribution for a 
student and the cost of attendance (as defined in section 472) 
at the institution at which that student is in attendance. If, 
with respect to any student, it is determined that the amount 
of a Federal Pell Grant plus the amount of the expected family 
contribution for that student exceeds the cost of attendance 
for that year, the amount of the Federal Pell Grant shall be 
reduced until the combination of expected family contribution 
and the amount of the Federal Pell Grant does not exceed the 
cost of attendance at such institution.
  (4) No Federal Pell Grant shall be awarded to a student under 
this subpart if the amount of that grant for that student as 
determined under this subsection for any academic year is less 
than ten percent of the maximum amount of a Federal Pell Grant 
award determined under paragraph (2)(A) for such academic year.
  (5) Notwithstanding any other provision of this subpart, the 
Secretary shall allow the amount of the Federal Pell Grant to 
be exceeded for students participating in a program of study 
abroad approved for credit by the institution at which the 
student is enrolled when the reasonable costs of such program 
are greater than the cost of attendance at the student's home 
institution, except that the amount of such Federal Pell Grant 
in any fiscal year shall not exceed the maximum amount of a 
Federal Pell Grant award determined under paragraph (2)(A), for 
which a student is eligible during such award year. If the 
preceding sentence applies, the financial aid administrator at 
the home institution may use the cost of the study abroad 
program, rather than the home institution's cost, to determine 
the cost of attendance of the student.
  (6) No Federal Pell Grant shall be awarded under this subpart 
to any individual who is incarcerated in any Federal or State 
penal institution or who is subject to an involuntary civil 
commitment upon completion of a period of incarceration for a 
forcible or nonforcible sexual offense (as determined in 
accordance with the Federal Bureau of Investigation's Uniform 
Crime Reporting Program).
          (7) Additional funds.--
                  (A) In general.--There are authorized to be 
                appropriated, and there are appropriated (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) $2,090,000,000 for fiscal year 
                        2009;
                          (iii) to carry out subparagraph (B) 
                        of this paragraph, 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); and
                          (iv) to carry out this section--
                                  (I) $13,500,000,000 for 
                                fiscal year 2011;
                                  (II) $13,795,000,000 for 
                                fiscal year 2012;
                                  (III) $7,587,000,000 for 
                                fiscal year 2013;
                                  (IV) $588,000,000 for fiscal 
                                year 2014;
                                  (V) $0 for fiscal year 2015;
                                  (VI) $0 for fiscal year 2016;
                                  (VII) $1,320,000,000 for 
                                fiscal year 2017;
                                  (VIII) $1,334,000,000 for 
                                fiscal year 2018;
                                  (IX) $1,370,000,000 for 
                                fiscal year 2019;
                                  (X) $1,455,000,000 for fiscal 
                                year 2020; and
                                  (XI) $1,170,000,000 for 
                                fiscal year 2021 and each 
                                succeeding fiscal year.
                  (B) Increase in federal pell grants.--The 
                amounts made available pursuant to clauses (i) 
                through (iii) of subparagraph (A) of this 
                paragraph 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 each of the award years 
                        2010-2011, 2011-2012, and 2012-2013; 
                        and
                          (iii) the amount determined under 
                        subparagraph (C) for each succeeding 
                        award year.
                  (C) Adjustment amounts.--
                          (i) Award year 2013-2014.--For award 
                        year 2013-2014, 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 2013-2014, 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.
                          (ii) Award years 2014-2015 through 
                        2017-2018.--For each of the award years 
                        2014-2015 through 2017-2018, 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) Subsequent award years.--For 
                        award year 2018-2019 and each 
                        subsequent award year, the amount 
                        determined under this subparagraph for 
                        purposes of subparagraph (B)(iii) shall 
                        be equal to the amount determined under 
                        clause (ii) for award year 2017-2018.
                          (iv) Definitions.--For purposes of 
                        this subparagraph--
                                  (I) the term ``annual 
                                adjustment percentage'' as 
                                applied to an award year, is 
                                equal to 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
                                  (II) the term ``total maximum 
                                Federal Pell Grant'' as applied 
                                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 authorize the imposition of additional 
                requirements or operations for the 
                determination and allocation of Federal Pell 
                Grants under this section.
                  (E) Ratable increases and decreases.--The 
                amounts specified in subparagraph (B) shall be 
                ratably increased or decreased to the extent 
                that funds available under subparagraph (A) 
                exceed or are less than (respectively) the 
                amount required to provide the amounts 
                specified in subparagraph (B).
                  (F) 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.
          (8)(A) Effective in the 2017-2018 award year and 
        thereafter, the Secretary shall award an eligible 
        student not more than one and one-half Federal Pell 
        Grants during a single award year to permit such 
        student to work toward completion of an eligible 
        program if, during that single award year, the 
        student--
                          (i) has received a Federal Pell Grant 
                        for an award year and is enrolled in an 
                        eligible program for one or more 
                        additional payment periods during the 
                        same award year that are not otherwise 
                        fully covered by the student's Federal 
                        Pell Grant; and
                          (ii) is enrolled on at least a half-
                        time basis while receiving any funds 
                        under this section.
                  (B) In the case of a student receiving more 
                than one Federal Pell Grant in a single award 
                year under subparagraph (A), the total amount 
                of Federal Pell Grants awarded to such student 
                for the award year may exceed the maximum basic 
                grant level specified in the appropriate 
                appropriations Act for such award year.
                  (C) Any period of study covered by a Federal 
                Pell Grant awarded under subparagraph (A) shall 
                be included in determining a student's duration 
                limit under subsection (c)(5).
                  (D) In any case where an eligible student is 
                receiving a Federal Pell Grant for a payment 
                period that spans two award years, the 
                Secretary shall allow the eligible institution 
                in which the student is enrolled to determine 
                the award year to which the additional period 
                shall be assigned, as it determines is most 
                beneficial to students.
  (c) Period of Eligibility for Grants.--(1) The period during 
which a student may receive Federal Pell Grants shall be the 
period required for the completion of the first undergraduate 
baccalaureate course of study being pursued by that student at 
the institution at which the student is in attendance except 
that any period during which the student is enrolled in a 
noncredit or remedial course of study as defined in paragraph 
(2) shall not be counted for the purpose of this paragraph.
  (2) Nothing in this section shall exclude from eligibility 
courses of study which are noncredit or remedial in nature 
(including courses in English language instruction) which are 
determined by the institution to be necessary to help the 
student be prepared for the pursuit of a first undergraduate 
baccalaureate degree or certificate or, in the case of courses 
in English language instruction, to be necessary to enable the 
student to utilize already existing knowledge, training, or 
skills. Nothing in this section shall exclude from eligibility 
programs of study abroad that are approved for credit by the 
home institution at which the student is enrolled.
  (3) No student is entitled to receive Pell Grant payments 
concurrently from more than one institution or from the 
Secretary and an institution.
  (4) Notwithstanding paragraph (1), the Secretary may allow, 
on a case-by-case basis, a student to receive a basic grant if 
the student--
          (A) is carrying at least one-half the normal full-
        time work load for the course of study the student is 
        pursuing, as determined by the institution of higher 
        education; and
          (B) is enrolled or accepted for enrollment in a 
        postbaccalaureate program that does not lead to a 
        graduate degree, and in courses required by a State in 
        order for the student to receive a professional 
        certification or licensing credential that is required 
        for employment as a teacher in an elementary school or 
        secondary school in that State,
except that this paragraph shall not apply to a student who is 
enrolled in an institution of higher education that offers a 
baccalaureate degree in education.
  (5) The period during which a student may receive Federal 
Pell Grants shall not exceed 12 semesters, or the equivalent of 
12 semesters, as determined by the Secretary by regulation. 
Such regulations shall provide, with respect to a student who 
received a Federal Pell Grant for a term but was enrolled at a 
fraction of full-time, that only that same fraction of such 
semester or equivalent shall count towards such duration 
limits.
  (d) Applications for Grants.--(1) The Secretary shall from 
time to time set dates by which students shall file 
applications for Federal Pell Grants under this subpart.
  (2) Each student desiring a Federal Pell Grant for any year 
shall file an application therefor containing such information 
and assurances as the Secretary may deem necessary to enable 
the Secretary to carry out the functions and responsibilities 
of this subpart.
  (e) Distribution of Grants to Students.--Payments under this 
section shall be made in accordance with regulations 
promulgated by the Secretary for such purpose, in such manner 
as will best accomplish the purpose of this section. Any 
disbursement allowed to be made by crediting the student's 
account shall be limited to tuition and fees and, in the case 
of institutionally owned housing, room and board. The student 
may elect to have the institution provide other such goods and 
services by crediting the student's account.
  (f) Calculation of Eligibility.--(1) Each contractor 
processing applications for awards under this subpart 
(including a central processor, if any, designated by the 
Secretary) shall, in a timely manner, furnish to the student 
financial aid administrator (at each institution of higher 
education which a student awarded a Federal Pell Grant under 
this subpart is attending), as a part of its regular output 
document, the expected family contribution for each such 
student. Each such student financial aid administrator shall--
          (A) examine and assess the data used to calculate the 
        expected family contribution of the student furnished 
        pursuant to this subsection;
          (B) recalculate the expected family contribution of 
        the student if there has been a change in circumstances 
        of the student or in the data submitted;
          (C) make the award to the student in the correct 
        amount; and
          (D) after making such award report the corrected data 
        to such contractor and to a central processor (if any) 
        designated by the Secretary for a confirmation of the 
        correct computation of amount of the expected family 
        contribution for each such student.
  (2) Whenever a student receives an award under this subpart 
that, due to recalculation errors by the institution of higher 
education, is in excess of the amount which the student is 
entitled to receive under this subpart, such institution of 
higher education shall pay to the Secretary the amount of such 
excess unless such excess can be resolved in a subsequent 
disbursement to the institution.
  (3) Each contractor processing applications for awards under 
this subpart shall for each academic year after academic year 
1986-1987 prepare and submit a report to the Secretary on the 
correctness of the computations of amount of the expected 
family contribution, and on the accuracy of the questions on 
the application form under this subpart for the previous 
academic year for which the contractor is responsible. The 
Secretary shall transmit the report, together with the comments 
and recommendations of the Secretary, to the Committee on 
Appropriations of the Senate, the Committee on Appropriations 
of the House of Representatives, and the authorizing 
committees.
  (g) Insufficient Appropriations.--If, for any fiscal year, 
the funds appropriated for payments under this subpart are 
insufficient to satisfy fully all entitlements, as calculated 
under subsection (b) (but at the maximum grant level specified 
in such appropriation), the Secretary shall promptly transmit a 
notice of such insufficiency to each House of the Congress, and 
identify in such notice the additional amount that would be 
required to be appropriated to satisfy fully all entitlements 
(as so calculated at such maximum grant level).
  (h) Use of Excess Funds.--(1) If, at the end of a fiscal 
year, the funds available for making payments under this 
subpart exceed the amount necessary to make the payments 
required under this subpart to eligible students by 15 percent 
or less, then all of the excess funds shall remain available 
for making payments under this subpart during the next 
succeeding fiscal year.
  (2) If, at the end of a fiscal year, the funds available for 
making payments under this subpart exceed the amount necessary 
to make the payments required under this subpart to eligible 
students by more than 15 percent, then all of such funds shall 
remain available for making such payments but payments may be 
made under this paragraph only with respect to entitlements for 
that fiscal year.
  (i) Treatment of Institutions and Students Under Other 
Laws.--Any institution of higher education which enters into an 
agreement with the Secretary to disburse to students attending 
that institution the amounts those students are eligible to 
receive under this subpart shall not be deemed, by virtue of 
such agreement, a contractor maintaining a system of records to 
accomplish a function of the Secretary. Recipients of Pell 
Grants shall not be considered to be individual grantees for 
purposes of subtitle D of title V of Public Law 100-690.
  (j) Institutional Ineligibility Based on Default Rates.--
          (1) In general.--No institution of higher education 
        shall be an eligible institution for purposes of this 
        subpart if such institution of higher education is 
        ineligible to participate in a loan program under part 
        B or D as a result of a final default rate 
        determination made by the Secretary under part B or D 
        after the final publication of cohort default rates for 
        fiscal year 1996 or a succeeding fiscal year.
          (2) Sanctions subject to appeal opportunity.--No 
        institution may be subject to the terms of this 
        subsection unless the institution has had the 
        opportunity to appeal the institution's default rate 
        determination under regulations issued by the Secretary 
        for the loan program authorized under part B or D, as 
        applicable. This subsection shall not apply to an 
        institution that was not participating in the loan 
        program authorized under part B or D on the date of 
        enactment of the Higher Education Amendments of 1998, 
        unless the institution subsequently participates in the 
        loan programs.
  (k) Workforce Pell Grant Program.--
          (1) In general.--For the award year beginning on July 
        1, 2025, and each subsequent award year, the Secretary 
        shall award grants (to be known as ``Workforce Pell 
        Grants'') to eligible students under paragraph (2) in 
        accordance with this subsection.
          (2) Eligible students.--To be eligible to receive a 
        Workforce Pell Grant under this subsection for any 
        period of enrollment, a student shall meet the 
        eligibility requirements for a Federal Pell Grant under 
        this section, except that the student--
                  (A) shall be enrolled, or accepted for 
                enrollment, in an eligible program under 
                section 481(b)(3) (hereinafter referred to as 
                an ``eligible workforce program''); and
                  (B) may not--
                          (i) be enrolled, or accepted for 
                        enrollment, in a program of study that 
                        leads to a master's degree, doctoral 
                        degree, or other post-graduate degree; 
                        or
                          (ii) have attained such a degree.
          (3) Terms and conditions of awards.--The Secretary 
        shall award Workforce Pell Grants under this subsection 
        in the same manner and with the same terms and 
        conditions as the Secretary awards Federal Pell Grants 
        under this section, except that--
                  (A) each use of the term ``eligible program'' 
                shall be substituted by ``eligible workforce 
                program under section 481(b)(3)'', other than 
                with respect to--
                          (i) paragraph (9)(A) of such 
                        subsection; and
                          (ii) subsection (d)(2); and
                  (B) a student who is eligible for a grant 
                equal to less than the amount of the minimum 
                Federal Pell Grant because the eligible 
                workforce program in which the student is 
                enrolled or accepted for enrollment is less 
                than an academic year (in hours of instruction 
                or weeks of duration) may still be eligible for 
                a Workforce Pell Grant in an amount that is 
                prorated based on the length of the program.
          (4) Prevention of double benefits.--No eligible 
        student described in paragraph (2) may concurrently 
        receive a grant under both this subsection and--
                  (A) subsection (b); or
                  (B) subsection (c).
          (5) Duration limit.--Any period of study covered by a 
        Workforce Pell Grant awarded under this subsection 
        shall be included in determining a student's duration 
        limit under subsection (d)(5).

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Subpart 3--Federal Supplemental Educational Opportunity Grants

           *       *       *       *       *       *       *



SEC. 413C. AGREEMENTS WITH INSTITUTIONS; SELECTION OF RECIPIENTS.

  (a) Institutional Eligibility.--[Assistance may]
          (1) In general._Assistance may  be made available 
        under this subpart only to an institution which--
                  [(1)] (A) has, in accordance with section 
                487, an agreement with the Secretary applicable 
                to this subpart;
                  [(2)] (B) agrees that the Federal share of 
                awards under this subpart will not exceed 75 
                percent of such awards, except that the Federal 
                share may be exceeded if the Secretary 
                determines, pursuant to regulations 
                establishing objective criteria for such 
                determinations, that a larger Federal share is 
                required to further the purpose of this 
                subpart; and
                  [(3)] (C) agrees that the non-Federal share 
                of awards made under this subpart shall be made 
                from the institution's own resources, 
                including--
                          [(A)] (i) institutional grants and 
                        scholarships;
                          [(B)] (ii) tuition or fee waivers;
                          [(C)] (iii) State scholarships; and
                          [(D)] (iv) foundation or other 
                        charitable organization funds.
          (2) Exception.--In addition to the requirements under 
        paragraph (1), for the award year beginning on July 1, 
        2024 and each subsequent award year, an institution 
        that is an applicable educational institution that is 
        an organization subject to taxation under section 4968 
        of the Internal Revenue Code of 1986, may only receive 
        assistance under this subpart if such institution 
        guarantees that, for each such award year--
                  (A) the total amount of grants and 
                scholarships, including other financial 
                assistance not received under this title as 
                defined in section 480(i), awarded to a student 
                who receives a Federal Pell Grant under this 
                title shall not be less than the student's cost 
                of attendance (as defined in section 472); and
                  (B) the percentage of students enrolled at 
                such institution who are eligible for a Federal 
                Pell grant will be equal to or greater than the 
                percentage of students who were enrolled at 
                such institution and were eligible for a 
                Federal Pell grant in the award year during 
                which the Bipartisan Workforce Pell Act was 
                enacted.
  (b) Eligibility for Selection.--Awards may be made under this 
subpart only to a student who--
          (1) is an eligible student under section 484; and
          (2) makes application at a time and in a manner 
        consistent with the requirements of the Secretary and 
        that institution.
  (c) Selection of Individuals and Determination of Amount of 
Awards.--(1) From among individuals who are eligible for 
supplemental grants for each fiscal year, the institution 
shall, in accordance with the agreement under section 487, and 
within the amount allocated to the institution for that purpose 
for that year under section 413D, select individuals who are to 
be awarded such grants and determine, in accordance with 
section 413B, the amounts to be paid to them.
  (2)(A) In carrying out paragraph (1) of this subsection, each 
institution of higher education shall, in the agreement made 
under section 487, assure that the selection procedures--
          (i) will be designed to award supplemental grants 
        under this subpart, first, to students with exceptional 
        need, and
          (ii) will give a priority for supplemental grants 
        under this subpart to students who receive Pell Grants 
        and meet the requirements of section 484.
  (B) For the purpose of subparagraph (A), the term ``students 
with exceptional need'' means students with the lowest expected 
family contributions at the institution.
  (d) Use of Funds for Less-Than-Full-Time Students.--If the 
institution's allocation under this subpart is directly or 
indirectly based in part on the financial need demonstrated by 
students who are independent students or attending the 
institution on less than a full-time basis, then a reasonable 
proportion of the allocation shall be made available to such 
students.
  (e) Use and Transfer of Funds for Administrative Expenses.--
An agreement entered into pursuant to this section shall 
provide that funds granted to an institution of higher 
education may be used only to make payments to students 
participating in a grant program authorized under this subpart, 
except that an institution may use a portion of the sums 
allocated to it under this subpart to meet administrative 
expenses in accordance with section 489 of this title.

           *       *       *       *       *       *       *


PART D--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

           *       *       *       *       *       *       *


SEC. 454. AGREEMENTS WITH INSTITUTIONS.

  (a) Participation Agreements.--An agreement with any 
institution of higher education for participation in the direct 
student loan program under this part shall--
          (1) provide for the establishment and maintenance of 
        a direct student loan program at the institution under 
        which the institution will--
                  (A) identify eligible students who seek 
                student financial assistance at such 
                institution in accordance with section 484;
                  (B) estimate the need of each such student as 
                required by part F of this title for an 
                academic year, except that, any loan obtained 
                by a student under this part with the same 
                terms as loans made under section 428H (except 
                as otherwise provided in this part), or a loan 
                obtained by a parent under this part with the 
                same terms as loans made under section 428B 
                (except as otherwise provided in this part), or 
                obtained under any State-sponsored or private 
                loan program, may be used to offset the 
                expected family contribution of the student for 
                that year;
                  (C) provide a statement that certifies the 
                eligibility of any student to receive a loan 
                under this part that is not in excess of the 
                annual or aggregate limit applicable to such 
                loan, except that the institution may, in 
                exceptional circumstances identified by the 
                Secretary, refuse to certify a statement that 
                permits a student to receive a loan under this 
                part, or certify a loan amount that is less 
                than the student's determination of need (as 
                determined under part F of this title), if the 
                reason for such action is documented and 
                provided in written form to such student;
                  (D) set forth a schedule for disbursement of 
                the proceeds of the loan in installments, 
                consistent with the requirements of section 
                428G; and
                  (E) provide timely and accurate information--
                          (i) concerning the status of student 
                        borrowers (and students on whose behalf 
                        parents borrow under this part) while 
                        such students are in attendance at the 
                        institution and concerning any new 
                        information of which the institution 
                        becomes aware for such students (or 
                        their parents) after such borrowers 
                        leave the institution, to the Secretary 
                        for the servicing and collecting of 
                        loans made under this part; and
                          (ii) if the institution does not have 
                        an agreement with the Secretary under 
                        subsection (b), concerning student 
                        eligibility and need, as determined 
                        under subparagraphs (A) and (B), to the 
                        Secretary as needed for the alternative 
                        origination of loans to eligible 
                        students and parents in accordance with 
                        this part;
          (2) provide assurances that the institution will 
        comply with requirements established by the Secretary 
        relating to student loan information with respect to 
        loans made under this part;
          (3) provide that the institution accepts 
        responsibility and financial liability stemming from 
        its failure to perform its functions pursuant to the 
        agreement;
          (4) provide for the implementation of a quality 
        assurance system, as established by the Secretary and 
        developed in consultation with institutions of higher 
        education, to ensure that the institution is complying 
        with program requirements and meeting program 
        objectives;
          (5) provide that the institution will not charge any 
        fees of any kind, however described, to student or 
        parent borrowers for origination activities or the 
        provision of any information necessary for a student or 
        parent to receive a loan under this part, or any 
        benefits associated with such loan; [and]
          (6) notwithstanding any other provision of this Act, 
        for the award year beginning on July 1, 2024, and each 
        subsequent award year, if such institution is an 
        applicable educational institution that is an 
        organization subject to taxation under section 4968 of 
        the Internal Revenue Code of 1986, provide that such 
        institution may not award--
                  (A) a Federal Direct Stafford Loan, a Federal 
                Direct Unsubsidized Stafford Loan, or a Federal 
                Direct Plus Loan to any eligible student; or
                  (B) a Federal Direct Plus Loan to a parent of 
                an eligible dependent undergraduate student if 
                such student is eligible for a Federal Pell 
                Grant.
          [(6)] (7) include such other provisions as the 
        Secretary determines are necessary to protect the 
        interests of the United States and to promote the 
        purposes of this part.
  (b) Origination.--An agreement with any institution of higher 
education, or consortia thereof, for the origination of loans 
under this part shall--
          (1) supplement the agreement entered into in 
        accordance with subsection (a);
          (2) include provisions established by the Secretary 
        that are similar to the participation agreement 
        provisions described in paragraphs (1)(E)(ii), (2), 
        (3), (4), (5), and (6) of subsection (a), as modified 
        to relate to the origination of loans by the 
        institution or consortium;
          (3) provide that the institution or consortium will 
        originate loans to eligible students and parents in 
        accordance with this part; and
          (4) provide that the note or evidence of obligation 
        on the loan shall be the property of the Secretary.
  (c) Withdrawal and Termination Procedures.--The Secretary 
shall establish procedures by which institutions or consortia 
may withdraw or be terminated from the program under this part.

           *       *       *       *       *       *       *


   Part G--General Provisions Relating to Student Assistance Programs


SEC. 481. DEFINITIONS.

  (a) Academic and Award Year.--(1) For the purpose of any 
program under this title, the term ``award year'' shall be 
defined as the period beginning July 1 and ending June 30 of 
the following year.
  (2)(A) For the purpose of any program under this title, the 
term ``academic year'' shall--
          (i) require a minimum of 30 weeks of instructional 
        time for a course of study that measures its program 
        length in credit hours; or
          (ii) require a minimum of 26 weeks of instructional 
        time for a course of study that measures its program 
        length in clock hours; and
          (iii) require an undergraduate course of study to 
        contain an amount of instructional time whereby a full-
        time student is expected to complete at least--
                  (I) 24 semester or trimester hours or 36 
                quarter credit hours in a course of study that 
                measures its program length in credit hours; or
                  (II) 900 clock hours in a course of study 
                that measures its program length in clock 
                hours.
  (B) The Secretary may reduce such minimum of 30 weeks to not 
less than 26 weeks for good cause, as determined by the 
Secretary on a case-by-case basis, in the case of an 
institution of higher education that provides a 2-year or 4-
year program of instruction for which the institution awards an 
associate or baccalaureate degree and that measures program 
length in credit hours or clock hours.
  (b) Eligible Program.--(1) For purposes of this title, the 
term ``eligible program'' means a program of at least--
          (A) 600 clock hours of instruction, 16 semester 
        hours, or 24 quarter hours, offered during a minimum of 
        15 weeks, in the case of a program that--
                  (i) provides a program of training to prepare 
                students for gainful employment in a recognized 
                profession; and
                  (ii) admits students who have not completed 
                the equivalent of an associate degree; or
          (B) 300 clock hours of instruction, 8 semester hours, 
        or 12 hours, offered during a minimum of 10 weeks, in 
        the case of--
                  (i) an undergraduate program that requires 
                the equivalent of an associate degree for 
                admissions; or
                  (ii) a graduate or professional program.
  (2)(A) A program is an eligible program for purposes of part 
B of this title if it is a program of at least 300 clock hours 
of instruction, but less than 600 clock hours of instruction, 
offered during a minimum of 10 weeks, that--
          (i) has a verified completion rate of at least 70 
        percent, as determined in accordance with the 
        regulations of the Secretary;
          (ii) has a verified placement rate of at least 70 
        percent, as determined in accordance with the 
        regulations of the Secretary; and
          (iii) satisfies such further criteria as the 
        Secretary may prescribe by regulation.
  (B) In the case of a program being determined eligible for 
the first time under this paragraph, such determination shall 
be made by the Secretary before such program is considered to 
have satisfied the requirements of this paragraph.
  (3)(A) A program is an eligible program for purposes of the 
Workforce Pell Grant program under section 401(k) only if--
          (i) it is a program of at least 150 clock hours of 
        instruction, but less than 600 clock hours of 
        instruction, or an equivalent number of credit hours, 
        offered during a minimum of 8 weeks, but less than 15 
        weeks;
          (ii) it is not offered as a correspondence course, as 
        defined in 600.2 of title 34, Code of Federal 
        Regulations (as in effect on September 20, 2020);
          (iii) the State board makes a determination that the 
        program--
                  (I) provides an education aligned with the 
                requirements of high-skill, high-wage (as 
                identified by the State pursuant to section 122 
                of the Carl D. Perkins Career and Technical 
                Education Act (20 U.S.C. 2342), or in-demand 
                industry sectors or occupations;
                  (II) meets the hiring requirements of 
                potential employers in the sectors or 
                occupations described in subclause (I); and
                  (III) satisfies any applicable educational 
                prerequisite requirement for professional 
                licensure or certification in the State or 
                States in which the program is offered, as 
                applicable, such that a student who completes 
                the program is qualified to--
                          (aa) practice or find employment in 
                        the sectors or occupations described in 
                        subclause (I); and
                          (bb) as applicable, take any 
                        licensure or certification examinations 
                        required to practice or find employment 
                        in such sectors or occupations;
          (iv) after the State board makes the determination 
        that the program meets the requirements under clause 
        (iii), the accrediting agency or association recognized 
        by the Secretary pursuant to section 496(a) determines 
        that the program--
                  (I) either--
                          (aa) leads to a recognized 
                        postsecondary credential that is 
                        stackable and portable across more than 
                        one employer; or
                          (bb) with respect to students 
                        enrolled in the program--
                                  (AA) prepares such students 
                                for employment in an occupation 
                                for which there is only one 
                                recognized postsecondary 
                                credential; and
                                  (BB) provides such students 
                                with such a credential upon 
                                completion of such program;
                  (II) prepares students to pursue 1 or more 
                certificate or degree programs at 1 or more 
                institutions of higher education (which may 
                include the institution of higher education 
                providing the program), including by ensuring--
                          (aa) that a student, upon completion 
                        of the program and enrollment in such a 
                        related certificate or degree program, 
                        will receive academic credit for the 
                        program that will be accepted toward 
                        meeting such certificate or degree 
                        program requirements; and
                          (bb) the acceptability of such credit 
                        toward meeting such certificate or 
                        degree program requirements; and
                  (III) posts prominently on the website of the 
                institution the recognized postsecondary 
                credential that will be awarded to the student 
                upon completion of the program, including the 
                entity issuing the credential, any third-party 
                endorsements of the credential, the occupation 
                or occupations for which the credential 
                prepares individuals for employment, the 
                competencies achieved to earn the credential, 
                the level of mastery of such competencies and 
                how mastery is assessed, and specific 
                information with respect to where, whether, and 
                under what circumstances the credential is 
                stackable or portable;
                  (IV) with respect to the information 
                collected under section 131(i)--
                          (aa) posts such information 
                        prominently on the website of the 
                        institution; and
                          (bb) provides such information in a 
                        written disclosure to each prospective 
                        student prior to entering into an 
                        enrollment agreement with such student 
                        for such program, and establishes 
                        procedures for each such student to 
                        confirm receipt of such disclosure;
                  (V) has established a plan to ensure students 
                who completed the program have access to 
                transcripts for completed coursework without a 
                fee; and
                  (VI) has been offered by an eligible 
                institution of higher education for not less 
                than 1 year prior to the date on which such 
                agency or association is to make a 
                determination under this paragraph;
          (v) after the accrediting agency makes the 
        determination that the program meets the requirements 
        under clause (iv), the Secretary determines that--
                  (I) for each award year, the program has a 
                verified completion rate of at least 70 
                percent, within 150 percent of the normal time 
                for completion;
                  (II) for each award year, the program has a 
                verified job placement rate of at least 70 
                percent, measured 180 days after completion;
                  (III) for each award year, the program 
                charges to a Workforce Pell Grant recipient 
                under section 401(k) a total amount of tuition 
                and fees for the program for such year that 
                does not exceed the value-added earnings of 
                students for the most recent year for which 
                data is available; and
                  (IV) for at least 2 of the 3 most recent 
                consecutive award years for which data are 
                available, the median earnings of students who 
                completed the program, measured three years 
                after students completed the program, exceeded 
                the annual median earnings of individuals in 
                the State in which the program is located--
                          (aa) who are in the labor force;
                          (bb) who are between 25 and 34 years 
                        of age, inclusive; and
                          (cc) for whom the highest degree 
                        attained is a high school diploma (or 
                        recognized equivalent); and
          (vi) in the case of a program that has been an 
        eligible workforce program under this paragraph for 3 
        or more years, it uses common, linked, open, and 
        interoperable data formats when posting on the website 
        of the institution the data required under subclauses 
        (III) and (IV) of clause (iv).
          (B)(i) The Secretary shall establish an appeals 
        process wherein a program may request that, in making a 
        determination under subparagraph (A)(v) (other than 
        with respect to the median earnings of the individuals 
        in the State described in subclause (IV) of such 
        subparagraph), the Secretary use alternate earnings 
        data, provided by the program, that is based on local, 
        State, or Federal administrative data sources and that 
        is statistically rigorous, accurate, comparable to, and 
        representative of such students, if such program 
        objects to a determination made by the Secretary under 
        such subparagraph for purposes of--
                  (I) eligibility under this paragraph; or
                  (II) the reporting or publishing of the rates 
                or earnings described in such a determination 
                under section 131(i).
          (ii) In the case of a program that is seeking to 
        establish initial eligibility under this paragraph that 
        does not have data available for the Secretary to make 
        the determinations required under subparagraph (A)(v), 
        the Secretary may, for a period that does not exceed 1 
        year, make such determinations (other than the median 
        earnings of the individuals in the State described in 
        subclause (IV) of such subparagraph) with respect to 
        the program using, as provided by the program--
                  (I) alternate earnings data of students who 
                complete the program, provided such data are 
                statistically rigorous, accurate, comparable 
                to, and representative of such students; and
                  (II) alternate completion and job placement 
                rates of students who enroll in the program, 
                provided such data are statistically rigorous, 
                accurate, comparable, and representative of 
                such students.
          (iii) If the Secretary determines that a program 
        provided inaccurate earnings data under clause (i)(I) 
        or clause (ii), such program shall return to the 
        Secretary any funds received under section 401(k) 
        during the period beginning on the date that is the 
        first day of the provisional eligibility period and 
        ending on the date on which the Secretary makes such 
        determination.
          (C)(i) In the case of a program that is seeking to 
        establish initial eligibility under this paragraph, the 
        Secretary shall grant eligibility for the program if it 
        meets the requirements of this paragraph not more than 
        120 days after the date on which the Secretary receives 
        a submission from such program for consideration as an 
        eligible workforce program under this paragraph.
          (ii) If a program that is an eligible workforce 
        program under this paragraph no longer meets one or 
        more of the requirements under this paragraph, as 
        determined by the State Board, accrediting agency, or 
        the Secretary, the Secretary--
                  (I) may withdraw the eligibility of such 
                program; and
                  (II) shall prohibit such program, and any 
                substantially similar program of the 
                institution, from being considered an eligible 
                workforce program under this paragraph for a 
                period of not less than 3 years.
          (D)(i) In the case of a program with a number of 
        enrolled students that is insufficient to provide the 
        Secretary with enough relevant data to make the 
        determinations under subparagraph (A)(v), the Secretary 
        shall--
                  (I) aggregate up to 4 years of additional 
                data for such program and use such aggregated 
                data to make such determinations; or
                  (II) only if such aggregated data under 
                subclause (I) is insufficient, aggregate up to 
                4 years of data of students who completed or 
                were enrolled in, as applicable, similar 
                programs at the institution (as determined 
                using the first 4 digits of the CIP codes of 
                such programs) and use such data to make such 
                determinations.
          (ii) For purposes of this subparagraph, the term 
        ``CIP code'' means the 6-digit taxonomic identification 
        code assigned by an institution of higher education to 
        a specific program of study at the institution, 
        determined by the institution in accordance with the 
        Classification of Instructional Programs published by 
        the National Center for Education Statistics.
          (E) In this paragraph:
                  (i) The term ``eligible institution of higher 
                education'' means an institution of higher 
                education (as defined in section 102) that--
                          (I) is approved by an accrediting 
                        agency or association that meets the 
                        requirements of section 496(a)(4)(C); 
                        and
                          (II) has not been subject, during any 
                        of the preceding 3 years, to--
                                  (aa) any suspension, 
                                emergency action, or 
                                termination under this title;
                                  (bb) any adverse action by 
                                the institution's accrediting 
                                agency or association that 
                                revokes or denies accreditation 
                                for the institution; or
                                  (cc) any final action by the 
                                State where the institution 
                                holds its legal domicile, 
                                authorization, and 
                                accreditation that revokes a 
                                license or other authority to 
                                operate.
                  (ii) The term ``median earnings'', when used 
                with respect to an eligible workforce program 
                under this paragraph--
                          (I) means the median annualized 
                        earnings, calculated using earnings for 
                        a pay period, month, quarter, or other 
                        time period deemed appropriate by the 
                        Secretary, of all students who received 
                        Federal financial assistance under this 
                        title and who completed the program in 
                        an academic year; and
                          (II) shall be measured a given number 
                        of years after such students completed 
                        the program, with the number of years 
                        determined in accordance with this Act 
                        based on the intended use of the median 
                        earnings data being calculated.
                  (iii) With respect to students who received 
                Federal financial aid under this title and who 
                completed an eligible workforce program under 
                this paragraph in a given year, the term 
                ``value-added earnings'' means--
                          (I) the median earnings of such 
                        students, measured one year after 
                        students completed the program; minus
                          (II) for the year median earnings are 
                        measured for such students under 
                        subclause (I), 150 percent of the 
                        poverty line applicable to a single 
                        individual as determined under section 
                        673(2) of the Community Services Block 
                        Grant Act (42 U.S.C. 9902(2)) for such 
                        year and, in the case of a program 
                        offered in-person, adjusted by the 
                        regional price parity index of the 
                        Bureau of Economic Analysis for the 
                        metropolitan statistical area in which 
                        the eligible institution of higher 
                        education offering such program is 
                        located.
                  (iv) The terms ``industry or sector 
                partnership'', ``in-demand industry sector or 
                occupation'', ``recognized postsecondary 
                credential'', and ``State board'' have the 
                meanings given such terms in section 3 of the 
                Workforce Innovation and Opportunity Act.
  [(3)] (4) An otherwise eligible program that is offered in 
whole or in part through telecommunications is eligible for the 
purposes of this title if the program is offered by an 
institution, other than a foreign institution, that has been 
evaluated and determined (before or after the date of enactment 
of the Higher Education Reconciliation Act of 2005) to have the 
capability to effectively deliver distance education programs 
by an accrediting agency or association that--
          (A) is recognized by the Secretary under subpart 2 of 
        part H; and
          (B) has evaluation of distance education programs 
        within the scope of its recognition, as described in 
        section 496(n)(3).
  [(4)] (5) For purposes of this title, the term ``eligible 
program'' includes an instructional program that, in lieu of 
credit hours or clock hours as the measure of student learning, 
utilizes direct assessment of student learning, or recognizes 
the direct assessment of student learning by others, if such 
assessment is consistent with the accreditation of the 
institution or program utilizing the results of the assessment. 
In the case of a program being determined eligible for the 
first time under this paragraph, such determination shall be 
made by the Secretary before such program is considered to be 
an eligible program.
  (c) Third Party Servicer.--For purposes of this title, the 
term ``third party servicer'' means any individual, any State, 
or any private, for-profit or nonprofit organization, which 
enters into a contract with--
          (1) any eligible institution of higher education to 
        administer, through either manual or automated 
        processing, any aspect of such institution's student 
        assistance programs under this title; or
          (2) any guaranty agency, or any eligible lender, to 
        administer, through either manual or automated 
        processing, any aspect of such guaranty agency's or 
        lender's student loan programs under part B of this 
        title, including originating, guaranteeing, monitoring, 
        processing, servicing, or collecting loans.
  (d) Definitions for Military Deferments.--For purposes of 
parts B, D, and E of this title:
          (1) Active duty.--The term ``active duty'' has the 
        meaning given such term in section 101(d)(1) of title 
        10, United States Code, except that such term does not 
        include active duty for training or attendance at a 
        service school.
          (2) Military operation.--The term ``military 
        operation'' means a contingency operation as such term 
        is defined in section 101(a)(13) of title 10, United 
        States Code.
          (3) National emergency.--The term ``national 
        emergency'' means the national emergency by reason of 
        certain terrorist attacks declared by the President on 
        September 14, 2001, or subsequent national emergencies 
        declared by the President by reason of terrorist 
        attacks.
          (4) Serving on active duty.--The term ``serving on 
        active duty during a war or other military operation or 
        national emergency'' means service by an individual who 
        is--
                  (A) a Reserve of an Armed Force ordered to 
                active duty under section 12301(a), 12301(g), 
                12302, 12304, or 12306 of title 10, United 
                States Code, or any retired member of an Armed 
                Force ordered to active duty under section 688 
                of such title, for service in connection with a 
                war or other military operation or national 
                emergency, regardless of the location at which 
                such active duty service is performed; and
                  (B) any other member of an Armed Force on 
                active duty in connection with such emergency 
                or subsequent actions or conditions who has 
                been assigned to a duty station at a location 
                other than the location at which such member is 
                normally assigned.
          (5) Qualifying national guard duty.--The term 
        ``qualifying National Guard duty during a war or other 
        military operation or national emergency'' means 
        service as a member of the National Guard on full-time 
        National Guard duty (as defined in section 101(d)(5) of 
        title 10, United States Code) under a call to active 
        service authorized by the President or the Secretary of 
        Defense for a period of more than 30 consecutive days 
        under section 502(f) of title 32, United States Code, 
        in connection with a war, other military operation, or 
        a national emergency declared by the President and 
        supported by Federal funds.
  (e) Consumer Reporting Agency.--For purposes of this title, 
the term ``consumer reporting agency'' has the meaning given 
the term ``consumer reporting agency that compiles and 
maintains files on consumers on a nationwide basis'' in Section 
603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)).
  (f) Definition of Educational Service Agency.--For purposes 
of parts B, D, and E, the term ``educational service agency'' 
has the meaning given the term in section 8101 of the 
Elementary and Secondary Education Act of 1965.

           *       *       *       *       *       *       *


PART H--PROGRAM INTEGRITY

           *       *       *       *       *       *       *


               Subpart 2--Accrediting Agency Recognition

SEC. 496. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.

  (a) Criteria Required.--No accrediting agency or association 
may be determined by the Secretary to be a reliable authority 
as to the quality of education or training offered for the 
purposes of this Act or for other Federal purposes, unless the 
agency or association meets criteria established by the 
Secretary pursuant to this section. The Secretary shall, after 
notice and opportunity for a hearing, establish criteria for 
such determinations. Such criteria shall include an appropriate 
measure or measures of student achievement. Such criteria shall 
require that--
          (1) the accrediting agency or association shall be a 
        State, regional, or national agency or association and 
        shall demonstrate the ability and the experience to 
        operate as an accrediting agency or association within 
        the State, region, or nationally, as appropriate;
          (2) such agency or association--
                  (A)(i) for the purpose of participation in 
                programs under this Act, has a voluntary 
                membership of institutions of higher education 
                and has as a principal purpose the accrediting 
                of institutions of higher education; or
                  (ii) for the purpose of participation in 
                other programs administered by the Department 
                of Education or other Federal agencies, has a 
                voluntary membership and has as its principal 
                purpose the accrediting of institutions of 
                higher education or programs;
                  (B) is a State agency approved by the 
                Secretary for the purpose described in 
                subparagraph (A); or
                  (C) is an agency or association that, for the 
                purpose of determining eligibility for student 
                assistance under this title, conducts 
                accreditation through (i) a voluntary 
                membership organization of individuals 
                participating in a profession, or (ii) an 
                agency or association which has as its 
                principal purpose the accreditation of programs 
                within institutions, which institutions are 
                accredited by another agency or association 
                recognized by the Secretary;
          (3) if such agency or association is an agency or 
        association described in--
                  (A) subparagraph (A)(i) of paragraph (2), 
                then such agency or association is separate and 
                independent, both administratively and 
                financially of any related, associated, or 
                affiliated trade association or membership 
                organization;
                  (B) subparagraph (B) of paragraph (2), then 
                such agency or association has been recognized 
                by the Secretary on or before October 1, 1991; 
                or
                  (C) subparagraph (C) of paragraph (2) and 
                such agency or association has been recognized 
                by the Secretary on or before October 1, 1991, 
                then the Secretary may waive the requirement 
                that such agency or association is separate and 
                independent, both administratively and 
                financially of any related, associated, or 
                affiliated trade association or membership 
                organization upon a demonstration that the 
                existing relationship has not served to 
                compromise the independence of its 
                accreditation process;
          (4)(A) such agency or association consistently 
        applies and enforces standards that respect the stated 
        mission of the institution of higher education, 
        including religious missions, and that ensure that the 
        courses or programs of instruction, training, or study 
        offered by the institution of higher education, 
        including distance education or correspondence courses 
        or programs, are of sufficient quality to achieve, for 
        the duration of the accreditation period, the stated 
        objective for which the courses or the programs are 
        offered; [and]
          (B) if such agency or association has or seeks to 
        include within its scope of recognition the evaluation 
        of the quality of institutions or programs offering 
        distance education or correspondence education, such 
        agency or association shall, in addition to meeting the 
        other requirements of this subpart, demonstrate to the 
        Secretary that--
                  (i) the agency or association's standards 
                effectively address the quality of an 
                institution's distance education or 
                correspondence education in the areas 
                identified in paragraph (5), except that--
                          (I) the agency or association shall 
                        not be required to have separate 
                        standards, procedures, or policies for 
                        the evaluation of distance education or 
                        correspondence education institutions 
                        or programs in order to meet the 
                        requirements of this subparagraph; and
                          (II) in the case that the agency or 
                        association is recognized by the 
                        Secretary, the agency or association 
                        shall not be required to obtain the 
                        approval of the Secretary to expand its 
                        scope of accreditation to include 
                        distance education or correspondence 
                        education, provided that the agency or 
                        association notifies the Secretary in 
                        writing of the change in scope; and
                  (ii) the agency or association requires an 
                institution that offers distance education or 
                correspondence education to have processes 
                through which the institution establishes that 
                the student who registers in a distance 
                education or correspondence education course or 
                program is the same student who participates in 
                and completes the program and receives the 
                academic credit; and
          (C) if such agency or association has or seeks to 
        include within its scope of recognition the evaluation 
        of the quality of institutions offering an eligible 
        program under section 481(b)(3), such agency or 
        association shall, in addition to meeting the other 
        requirements of this subpart, demonstrate to the 
        Secretary that, with respect to such an eligible 
        program--
                  (i) the agency or association's standards 
                include a process for determining if the 
                institution has the capability to effectively 
                offer such program; and
                  (ii) the agency or association requires a 
                demonstration that the program satisfies the 
                requirements of section 481(b)(3)(A)(iv);
          (5) the standards for accreditation of the agency or 
        association assess the institution's--
                  (A) success with respect to student 
                achievement in relation to the institution's 
                mission, which may include different standards 
                for different institutions or programs, as 
                established by the institution, including, as 
                appropriate, consideration of State licensing 
                examinations, consideration of course 
                completion, and job placement rates;
                  (B) curricula;
                  (C) faculty;
                  (D) facilities, equipment, and supplies;
                  (E) fiscal and administrative capacity as 
                appropriate to the specified scale of 
                operations;
                  (F) student support services;
                  (G) recruiting and admissions practices, 
                academic calendars, catalogs, publications, 
                grading and advertising;
                  (H) measures of program length and the 
                objectives of the degrees or credentials 
                offered;
                  (I) record of student complaints received by, 
                or available to, the agency or association; and
                  (J) record of compliance with its program 
                responsibilities under title IV of this Act 
                based on the most recent student loan default 
                rate data provided by the Secretary, the 
                results of financial or compliance audits, 
                program reviews, and any such other information 
                as the Secretary may provide to the agency or 
                association;
        except that subparagraphs (A), (H), and (J) shall not 
        apply to agencies or associations described in 
        paragraph (2)(A)(ii) of this subsection;
          (6) such an agency or association shall establish and 
        apply review procedures throughout the accrediting 
        process, including evaluation and withdrawal 
        proceedings, which comply with due process procedures 
        that provide--
                  (A) for adequate written specification of--
                          (i) requirements, including clear 
                        standards for an institution of higher 
                        education or program to be accredited; 
                        and
                          (ii) identified deficiencies at the 
                        institution or program examined;
                  (B) for sufficient opportunity for a written 
                response, by an institution or program, 
                regarding any deficiencies identified by the 
                agency or association to be considered by the 
                agency or association--
                          (i) within a timeframe determined by 
                        the agency or association; and
                          (ii) prior to final action in the 
                        evaluation and withdrawal proceedings;
                  (C) upon the written request of an 
                institution or program, for an opportunity for 
                the institution or program to appeal any 
                adverse action under this section, including 
                denial, withdrawal, suspension, or termination 
                of accreditation, taken against the institution 
                or program, prior to such action becoming final 
                at a hearing before an appeals panel that--
                          (i) shall not include current members 
                        of the agency's or association's 
                        underlying decisionmaking body that 
                        made the adverse decision; and
                          (ii) is subject to a conflict of 
                        interest policy;
                  (D) for the right to representation and 
                participation by counsel for an institution or 
                program during an appeal of the adverse action;
                  (E) for a process, in accordance with written 
                procedures developed by the agency or 
                association, through which an institution or 
                program, before a final adverse action based 
                solely upon a failure to meet a standard or 
                criterion pertaining to finances, may on one 
                occasion seek review of significant financial 
                information that was unavailable to the 
                institution or program prior to the 
                determination of the adverse action, and that 
                bears materially on the financial deficiencies 
                identified by the agency or association;
                  (F) in the case that the agency or 
                association determines that the new financial 
                information submitted by the institution or 
                program under subparagraph (E) meets the 
                criteria of significance and materiality 
                described in such subparagraph, for 
                consideration by the agency or association of 
                the new financial information prior to the 
                adverse action described in such subparagraph 
                becoming final; and
                  (G) that any determination by the agency or 
                association made with respect to the new 
                financial information described in subparagraph 
                (E) shall not be separately appealable by the 
                institution or program;
          (7) such agency or association shall notify the 
        Secretary and the appropriate State licensing or 
        authorizing agency within 30 days of the accreditation 
        of an institution or any final denial, withdrawal, 
        suspension, or termination of accreditation or 
        placement on probation of an institution, together with 
        any other adverse action taken with respect to an 
        institution; and
          (8) such agency or association shall make available 
        to the public, upon request, and to the Secretary, and 
        the State licensing or authorizing agency a summary of 
        any review resulting in a final accrediting decision 
        involving denial, termination, or suspension of 
        accreditation, together with the comments of the 
        affected institution.
  (b) Separate and Independent Defined.--For the purpose of 
subsection (a)(3), the term ``separate and independent'' means 
that--
          (1) the members of the postsecondary education 
        governing body of the accrediting agency or association 
        are not elected or selected by the board or chief 
        executive officer of any related, associated, or 
        affiliated trade association or membership 
        organization;
          (2) among the membership of the board of the 
        accrediting agency or association there shall be one 
        public member (who is not a member of any related trade 
        or membership organization) for each six members of the 
        board, with a minimum of one such public member, and 
        guidelines are established for such members to avoid 
        conflicts of interest;
          (3) dues to the accrediting agency or association are 
        paid separately from any dues paid to any related, 
        associated, or affiliated trade association or 
        membership organization; and
          (4) the budget of the accrediting agency or 
        association is developed and determined by the 
        accrediting agency or association without review or 
        resort to consultation with any other entity or 
        organization.
  (c) Operating Procedures Required.--No accrediting agency or 
association may be recognized by the Secretary as a reliable 
authority as to the quality of education or training offered by 
an institution seeking to participate in the programs 
authorized under this title, unless the agency or association--
          (1) performs, at regularly established intervals, on-
        site inspections and reviews of institutions of higher 
        education (which may include unannounced site visits) 
        with particular focus on educational quality and 
        program effectiveness, and ensures that accreditation 
        team members are well-trained and knowledgeable with 
        respect to their responsibilities, including those 
        regarding distance education;
          (2) monitors the growth of programs at institutions 
        that are experiencing significant enrollment growth;
          (3) requires an institution to submit for approval to 
        the accrediting agency a teach-out plan upon the 
        occurrence of any of the following events:
                  (A) the Department notifies the accrediting 
                agency of an action against the institution 
                pursuant to section 487(f);
                  (B) the accrediting agency acts to withdraw, 
                terminate, or suspend the accreditation of the 
                institution; or
                  (C) the institution notifies the accrediting 
                agency that the institution intends to cease 
                operations;
          (4) requires that any institution of higher education 
        subject to its jurisdiction which plans to establish a 
        branch campus submit a business plan, including 
        projected revenues and expenditures, prior to opening 
        the branch campus;
          (5) agrees to conduct, as soon as practicable, but 
        within a period of not more than 6 months of the 
        establishment of a new branch campus or a change of 
        ownership of an institution of higher education, an on-
        site visit of that branch campus or of the institution 
        after a change of ownership;
          (6) requires that teach-out agreements among 
        institutions are subject to approval by the accrediting 
        agency or association consistent with standards 
        promulgated by such agency or association;
          (7) makes available to the public and the State 
        licensing or authorizing agency, and submits to the 
        Secretary, a summary of agency or association actions, 
        including--
                  (A) the award of accreditation or 
                reaccreditation of an institution;
                  (B) final denial, withdrawal, suspension, or 
                termination of accreditation of an institution, 
                and any findings made in connection with the 
                action taken, together with the official 
                comments of the affected institution; and
                  (C) any other adverse action taken with 
                respect to an institution or placement on 
                probation of an institution;
          (8) discloses publicly whenever an institution of 
        higher education subject to its jurisdiction is being 
        considered for accreditation or reaccreditation; and
          (9) confirms, as a part of the agency's or 
        association's review for accreditation or 
        reaccreditation, that the institution has transfer of 
        credit policies--
                  (A) that are publicly disclosed; and
                  (B) that include a statement of the criteria 
                established by the institution regarding the 
                transfer of credit earned at another 
                institution of higher education.
  (d) Length of Recognition.--No accrediting agency or 
association may be recognized by the Secretary for the purpose 
of this Act for a period of more than 5 years.
  (e) Initial Arbitration Rule.--The Secretary may not 
recognize the accreditation of any institution of higher 
education unless the institution of higher education agrees to 
submit any dispute involving the final denial, withdrawal, or 
termination of accreditation to initial arbitration prior to 
any other legal action.
  (f) Jurisdiction.--Notwithstanding any other provision of 
law, any civil action brought by an institution of higher 
education seeking accreditation from, or accredited by, an 
accrediting agency or association recognized by the Secretary 
for the purpose of this title and involving the denial, 
withdrawal, or termination of accreditation of the institution 
of higher education, shall be brought in the appropriate United 
States district court.
  (g) Limitation on Scope of Criteria.--Nothing in this Act 
shall be construed to permit the Secretary to establish 
criteria for accrediting agencies or associations that are not 
required by this section. Nothing in this Act shall be 
construed to prohibit or limit any accrediting agency or 
association from adopting additional standards not provided for 
in this section. Nothing in this section shall be construed to 
permit the Secretary to establish any criteria that specifies, 
defines, or prescribes the standards that accrediting agencies 
or associations shall use to assess any institution's success 
with respect to student achievement.
  (h) Change of Accrediting Agency.--The Secretary shall not 
recognize the accreditation of any otherwise eligible 
institution of higher education if the institution of higher 
education is in the process of changing its accrediting agency 
or association, unless the eligible institution submits to the 
Secretary all materials relating to the prior accreditation, 
including materials demonstrating reasonable cause for changing 
the accrediting agency or association.
  (i) Dual Accreditation Rule.--The Secretary shall not 
recognize the accreditation of any otherwise eligible 
institution of higher education if the institution of higher 
education is accredited, as an institution, by more than one 
accrediting agency or association, unless the institution 
submits to each such agency and association and to the 
Secretary the reasons for accreditation by more than one such 
agency or association and demonstrates to the Secretary 
reasonable cause for its accreditation by more than one agency 
or association. If the institution is accredited, as an 
institution, by more than one accrediting agency or 
association, the institution shall designate which agency's 
accreditation shall be utilized in determining the 
institution's eligibility for programs under this Act.
  (j) Impact of Loss of Accreditation.--An institution may not 
be certified or recertified as an institution of higher 
education under section 102 and subpart 3 of this part or 
participate in any of the other programs authorized by this Act 
if such institution--
          (1) is not currently accredited by any agency or 
        association recognized by the Secretary;
          (2) has had its accreditation withdrawn, revoked, or 
        otherwise terminated for cause during the preceding 24 
        months, unless such withdrawal, revocation, or 
        termination has been rescinded by the same accrediting 
        agency; or
          (3) has withdrawn from accreditation voluntarily 
        under a show cause or suspension order during the 
        preceding 24 months, unless such order has been 
        rescinded by the same accrediting agency.
  (k) Religious Institution Rule.--Notwithstanding subsection 
(j), the Secretary shall allow an institution that has had its 
accreditation withdrawn, revoked, or otherwise terminated, or 
has voluntarily withdrawn from an accreditation agency, to 
remain certified as an institution of higher education under 
section 102 and subpart 3 of this part for a period sufficient 
to allow such institution to obtain alternative accreditation, 
if the Secretary determines that the reason for the withdrawal, 
revocation, or termination--
          (1) is related to the religious mission or 
        affiliation of the institution; and
          (2) is not related to the accreditation criteria 
        provided for in this section.
  (l) Limitation, Suspension, or Termination of Recognition.--
(1) If the Secretary determines that an accrediting agency or 
association has failed to apply effectively the criteria in 
this section, or is otherwise not in compliance with the 
requirements of this section, the Secretary shall--
          (A) after notice and opportunity for a hearing, 
        limit, suspend, or terminate the recognition of the 
        agency or association; or
          (B) require the agency or association to take 
        appropriate action to bring the agency or association 
        into compliance with such requirements within a 
        timeframe specified by the Secretary, except that--
                  (i) such timeframe shall not exceed 12 months 
                unless the Secretary extends such period for 
                good cause; and
                  (ii) if the agency or association fails to 
                bring the agency or association into compliance 
                within such timeframe, the Secretary shall, 
                after notice and opportunity for a hearing, 
                limit, suspend, or terminate the recognition of 
                the agency or association.
  (2) The Secretary may determine that an accrediting agency or 
association has failed to apply effectively the standards 
provided in this section if an institution of higher education 
seeks and receives accreditation from the accrediting agency or 
association during any period in which the institution is the 
subject of any interim action by another accrediting agency or 
association, described in paragraph (2)(A)(i), (2)(B), or 
(2)(C) of subsection (a) of this section, leading to the 
suspension, revocation, or termination of accreditation or the 
institution has been notified of the threatened loss of 
accreditation, and the due process procedures required by such 
suspension, revocation, termination, or threatened loss have 
not been completed.
  (m) Limitation on the Secretary's Authority.--The Secretary 
may only recognize accrediting agencies or associations which 
accredit institutions of higher education for the purpose of 
enabling such institutions to establish eligibility to 
participate in the programs under this Act or which accredit 
institutions of higher education or higher education programs 
for the purpose of enabling them to establish eligibility to 
participate in other programs administered by the Department of 
Education or other Federal agencies.
  (n) Independent Evaluation.--(1) The Secretary shall conduct 
a comprehensive review and evaluation of the performance of all 
accrediting agencies or associations which seek recognition by 
the Secretary in order to determine whether such accrediting 
agencies or associations meet the criteria established by this 
section. The Secretary shall conduct an independent evaluation 
of the information provided by such agency or association. Such 
evaluation shall include--
          (A) the solicitation of third-party information 
        concerning the performance of the accrediting agency or 
        association; and
          (B) site visits, including unannounced site visits as 
        appropriate, at accrediting agencies and associations, 
        and, at the Secretary's discretion, at representative 
        member institutions.
  (2) The Secretary shall place a priority for review of 
accrediting agencies or associations on those agencies or 
associations that accredit institutions of higher education 
that participate most extensively in the programs authorized by 
this title and on those agencies or associations which have 
been the subject of the most complaints or legal actions.
  (3) The Secretary shall consider all available relevant 
information concerning the compliance of the accrediting agency 
or association with the criteria provided for in this section, 
including any complaints or legal actions against such agency 
or association. In cases where deficiencies in the performance 
of an accreditation agency or association with respect to the 
requirements of this section are noted, the Secretary shall 
take these deficiencies into account in the recognition 
process. The Secretary shall not, under any circumstances, base 
decisions on the recognition or denial of recognition of 
accreditation agencies or associations on criteria other than 
those contained in this section. When the Secretary decides to 
recognize an accrediting agency or association, the Secretary 
shall determine the agency or association's scope of 
recognition. If the agency or association reviews institutions 
offering distance education courses or programs and the 
Secretary determines that the agency or association meets the 
requirements of this section, then the agency shall be 
recognized and the scope of recognition shall include 
accreditation of institutions offering distance education 
courses or programs.
  (4) The Secretary shall maintain sufficient documentation to 
support the conclusions reached in the recognition process, 
and, if the Secretary does not recognize any accreditation 
agency or association, shall make publicly available the reason 
for denying recognition, including reference to the specific 
criteria under this section which have not been fulfilled.
  (o) Regulations.--The Secretary shall by regulation provide 
procedures for the recognition of accrediting agencies or 
associations and for the appeal of the Secretary's decisions. 
Notwithstanding any other provision of law, the Secretary shall 
not promulgate any regulation with respect to the standards of 
an accreditation agency or association described in subsection 
(a)(5).
  (p) Rule of Construction.--Nothing in subsection (a)(5) shall 
be construed to restrict the ability of--
          (1) an accrediting agency or association to set, with 
        the involvement of its members, and to apply, 
        accreditation standards for or to institutions or 
        programs that seek review by the agency or association; 
        or
          (2) an institution to develop and use institutional 
        standards to show its success with respect to student 
        achievement, which achievement may be considered as 
        part of any accreditation review.
  (q) Review of Scope Changes.--The Secretary shall require a 
review, at the next available meeting of the National Advisory 
Committee on Institutional Quality and Integrity, of any change 
in scope undertaken by an agency or association under 
subsection (a)(4)(B)(i)(II) if the enrollment of an institution 
that offers distance education or correspondence education that 
is accredited by such agency or association increases by 50 
percent or more within any one institutional fiscal year.

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