[116th Congress Public Law 91]
[From the U.S. Government Publishing Office]



[[Page 133 STAT. 1189]]

Public Law 116-91
116th Congress

                                 An Act


 
    To reauthorize mandatory funding programs for historically Black 
 colleges and universities and other minority-serving institutions, and 
       for other purposes. <<NOTE: Dec. 19, 2019 -  [H.R. 5363]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Fostering 
Undergraduate Talent by Unlocking Resources for Education Act.>> 
SECTION 1. <<NOTE: 20 USC 1001 note.>> SHORT TITLE; REFERENCES.

    This Act may be cited as the ``Fostering Undergraduate Talent by 
Unlocking Resources for Education Act'' or the ``FUTURE Act''.
SEC. 2. CONTINUED SUPPORT FOR MINORITY-SERVING INSTITUTIONS.

    Section 371(b)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 
1067q(b)(1)(A)) is amended by striking ``for each of the fiscal years 
2008 through 2019.'' and all that follows through the end of the 
subparagraph and inserting ``for fiscal year 2020 and each fiscal year 
thereafter.''.
SEC. 3. SECURE DISCLOSURE OF TAX-RETURN INFORMATION TO CARRY OUT 
                    THE HIGHER EDUCATION ACT OF 1965.

    (a) In General.--Paragraph (13) of section 6103(l) of the Internal 
Revenue Code of 1986 <<NOTE: 26 USC 6103.>>  is amended to read as 
follows:
            ``(13) Disclosure of return information to carry out the 
        higher education act of 1965.--
                    ``(A) Applications and recertifications for income-
                contingent or income-based repayment.--The Secretary 
                shall, upon written request from the Secretary of 
                Education, disclose to any authorized person, only for 
                the purpose of (and to the extent necessary in) 
                determining eligibility for, or repayment obligations 
                under, income-contingent or income-based repayment plans 
                under title IV of the Higher Education Act of 1965 with 
                respect to loans under part D of such title, the 
                following return information from returns (for any 
                taxable year specified by the Secretary of Education as 
                relevant to such purpose) of an individual certified by 
                the Secretary of Education as having provided approval 
                under section 494(a)(2) of such Act (as in effect on the 
                date of enactment of this paragraph) for such 
                disclosure:
                          ``(i) Taxpayer identity information.
                          ``(ii) Filing status.
                          ``(iii) Adjusted gross income.
                          ``(iv) Total number of exemptions claimed, if 
                      applicable.
                          ``(v) Number of dependents taken into account 
                      in determining the credit allowed under section 
                      24.

[[Page 133 STAT. 1190]]

                          ``(vi) If applicable, the fact that there was 
                      no return filed.
                    ``(B) Discharge of loan based on total and permanent 
                disability.--The Secretary shall, upon written request 
                from the Secretary of Education, disclose to any 
                authorized person, only for the purpose of (and to the 
                extent necessary in) monitoring and reinstating loans 
                under title IV of the Higher Education Act of 1965 that 
                were discharged based on a total and permanent 
                disability (within the meaning of section 437(a) of such 
                Act), the following return information from returns (for 
                any taxable year specified by the Secretary of Education 
                as relevant to such purpose) of an individual certified 
                by the Secretary of Education as having provided 
                approval under section 494(a)(3) of such Act (as in 
                effect on the date of enactment of this paragraph) for 
                such disclosure:
                          ``(i) The return information described in 
                      clauses (i), (ii), and (vi) of subparagraph (A).
                          ``(ii) The return information described in 
                      subparagraph (C)(ii).
                    ``(C) Federal student financial aid.--The Secretary 
                shall, upon written request from the Secretary of 
                Education, disclose to any authorized person, only for 
                the purpose of (and to the extent necessary in) 
                determining eligibility for, and amount of, Federal 
                student financial aid under a program authorized under 
                subpart 1 of part A, part C, or part D of title IV of 
                the Higher Education Act of 1965 the following return 
                information from returns (for the taxable year used for 
                purposes of section 480(a) of such Act) of an individual 
                certified by the Secretary of Education as having 
                provided approval under section 494(a)(1) of such Act 
                (as in effect on the date of enactment of this 
                paragraph) for such disclosure:
                          ``(i) Return information described in clauses 
                      (i) through (vi) of subparagraph (A).
                          ``(ii) The amount of any net earnings from 
                      self-employment (as defined in section 1402(a)), 
                      wages (as defined in section 3121(a) or 3401(a)), 
                      and taxable income from a farming business (as 
                      defined in section 236A(e)(4)).
                          ``(iii) Amount of total income tax.
                          ``(iv) Amount of any credit allowed under 
                      section 25A.
                          ``(v) Amount of individual retirement account 
                      distributions not included in adjusted gross 
                      income.
                          ``(vi) Amount of individual retirement account 
                      contributions and payments to self-employed SEP, 
                      Keogh, and other qualified plans which were 
                      deducted from income.
                          ``(vii) Amount of tax-exempt interest 
                      received.
                          ``(viii) Amounts from retirement pensions and 
                      annuities not included in adjusted gross income.
                          ``(ix) If applicable, the fact that any of the 
                      following schedules (or equivalent successor 
                      schedules) were filed with the return:
                                    ``(I) Schedule A.
                                    ``(II) Schedule B.

[[Page 133 STAT. 1191]]

                                    ``(III) Schedule D.
                                    ``(IV) Schedule E.
                                    ``(V) Schedule F.
                                    ``(VI) Schedule H.
                          ``(x) If applicable, the amount reported on 
                      Schedule C (or an equivalent successor schedule) 
                      as net profit or loss.
                    ``(D) Additional uses of disclosed information.--
                          ``(i) In general.--In addition to the purposes 
                      for which information is disclosed under 
                      subparagraphs (A), (B), and (C), return 
                      information so disclosed may be used by an 
                      authorized person, with respect to income-
                      contingent or income-based repayment plans, awards 
                      of Federal student financial aid under a program 
                      authorized under subpart 1 of part A, part C, or 
                      part D of title IV of the Higher Education Act of 
                      1965, and discharges of loans based on a total and 
                      permanent disability (within the meaning of 
                      section 437(a) of such Act), for purposes of--
                                    ``(I) reducing the net cost of 
                                improper payments under such plans, 
                                relating to such awards, or relating to 
                                such discharges,
                                    ``(II) oversight activities by the 
                                Office of Inspector General of the 
                                Department of Education as authorized by 
                                the Inspector General Act of 1978, and
                                    ``(III) conducting analyses and 
                                forecasts for estimating costs related 
                                to such plans, awards, or discharges.
                          ``(ii) Limitation.--The purposes described in 
                      clause (i) shall not include the conduct of 
                      criminal investigations or prosecutions.
                          ``(iii) Redisclosure to institutions of higher 
                      education, state higher education agencies, and 
                      designated scholarship organizations.--Authorized 
                      persons may redisclose return information received 
                      under subparagraph (C), solely for the use in the 
                      application, award, and administration of 
                      financial aid awarded by the Federal government or 
                      awarded by a person described in subclause (I), 
                      (II), or (III), to the following persons:
                                    ``(I) An institution of higher 
                                education participating in a program 
                                under subpart 1 of part A, part C, or 
                                part D of title IV of the Higher 
                                Education Act of 1965.
                                    ``(II) A State higher education 
                                agency.
                                    ``(III) A scholarship organization 
                                which is an entity designated (prior to 
                                the date of the enactment of this 
                                clause) by the Secretary of Education 
                                under section 483(a)(3)(E) of such Act.
                      This <<NOTE: Applicability. Consent.>> clause 
                      shall only apply to the extent that the taxpayer 
                      with respect to whom the return information 
                      relates provides written consent for such 
                      redisclosure to the Secretary of Education.
                    ``(E) Authorized person.-- <<NOTE: Definition.>> For 
                purposes of this paragraph, the term `authorized person' 
                means, with respect

[[Page 133 STAT. 1192]]

                to information disclosed under subparagraph (A), (B), or 
                (C), any person who--
                          ``(i) is an officer, employee, or contractor, 
                      of the Department of Education, and
                          ``(ii) is specifically authorized and 
                      designated by the Secretary of Education for 
                      purposes of such subparagraph (applied separately 
                      with respect to each such subparagraph).
                    ``(F) Joint returns.-- <<NOTE: Applicability.>> In 
                the case of a joint return, any disclosure authorized 
                under subparagraph (A), (B), or (C) with respect to an 
                individual shall be treated for purposes of this 
                paragraph as applying with respect to the taxpayer.''.

    (b) Confidentiality of Return Information.--Section 6103(a)(3) of 
such Code <<NOTE: 26 USC 6103.>> is amended by inserting ``, (13)'' 
after ``(12)''.

    (c) Conforming Amendments.--
            (1) Section 6103(p)(3)(A) of such Code is amended by 
        striking ``(13)''.
            (2) Section 6103(p)(4) of such Code is amended by inserting 
        ``, (13)'' after ``(l)(10)'' each place it appears.

    (d) <<NOTE: 26 USC 6103 note.>>  Effective Date.--The amendments 
made by this section shall apply to disclosures after the date of the 
enactment of this Act.

    (e) <<NOTE: 26 USC 6103 note.>>  Requirement To Designate the 
Inspector General of the Department of Education as an Authorized 
Person.--The Secretary of Education shall authorize and designate the 
Inspector General of the Department of Education as an authorized person 
under subparagraph (E)(ii) of section 6103(l)(13) of the Internal 
Revenue Code of 1986 for purposes of subparagraphs (A), (B), and (C) of 
such section.

    (f) <<NOTE: 26 USC 6103 note.>> Report to Treasury.--The Secretary 
of Education shall annually submit a written report to the Secretary of 
the Treasury--
            (1) regarding redisclosures of return information under 
        subparagraph (D)(iii) of section 6103(l)(13) of the Internal 
        Revenue Code of 1986, including the number of such 
        redisclosures; and
            (2) regarding any unauthorized use, access, or disclosure of 
        return information disclosed under such section.

    (g) <<NOTE: 26 USC 6103 note.>> Report to Congress.--The Secretary 
of the Treasury (or the Secretary's designee) shall annually submit a 
written report to Congress regarding disclosures under section 
6103(l)(13) of the Internal Revenue Code of 1986, including information 
provided to the Secretary under subsection (f).
SEC. 4. AUTOMATIC RECERTIFICATION OF INCOME.

    (a) Income-Contingent Repayment.--
            (1) In general.--Section 455(e) of the Higher Education Act 
        of 1965 (20 U.S.C. 1087e(e)) is amended by adding at the end the 
        following:
            ``(8) Automatic recertification.--
                    ``(A) In general.-- 
                <<NOTE: Procedures. Determinations.>> The Secretary 
                shall establish and implement, with respect to any 
                borrower described in subparagraph (B), procedures to--
                          ``(i) use return information disclosed under 
                      section 6103(l)(13) of the Internal Revenue Code 
                      of 1986, pursuant to approval provided under 
                      section 494, to

[[Page 133 STAT. 1193]]

                      determine the repayment obligation of the borrower 
                      without further action by the borrower;
                          ``(ii) allow the borrower (or the spouse of 
                      the borrower), at any time, to opt out of 
                      disclosure under such section 6103(l)(13) and 
                      instead provide such information as the Secretary 
                      may require to determine the repayment obligation 
                      of the borrower (or withdraw from the repayment 
                      plan under this subsection); and
                          ``(iii) provide the borrower with an 
                      opportunity to update the return information so 
                      disclosed before the determination of the 
                      repayment obligation of the borrower.
                    ``(B) Applicability.--Subparagraph (A) shall apply 
                to each borrower of a loan made under this part who, on 
                or after the date on which the Secretary establishes 
                procedures under such subparagraph--
                          ``(i) selects, or is required to repay such 
                      loan pursuant to, an income-contingent repayment 
                      plan; or
                          ``(ii) recertifies income or family size under 
                      such plan.''.
            (2) Conforming amendment.--Section 455(e)(6) of the Higher 
        Education Act of 1965 (20 U.S.C. 1087e(e)(6)) is amended--
                    (A) by striking ``including notification of such 
                borrower'' and all that follows through ``that if a 
                borrower'' and inserting ``including notification of 
                such borrower, that if a borrower''; and
                    (B) by striking ``as determined using the 
                information described in subparagraph (A), or the 
                alternative documentation described in paragraph (3)''.

    (b) Income-Based Repayment.--Section 493C(c) of the Higher Education 
Act of 1965 (20 U.S.C. 1098e(c)) is amended--
            (1) by striking ``The Secretary shall establish'' and 
        inserting the following:
            ``(1) In general.--The Secretary shall establish''; and
            (2) by striking ``The Secretary shall consider'' and 
        inserting the following:
            ``(2) Procedures for eligibility.--The Secretary shall--
                    ``(A) consider'';
            (3) by striking ``428C(b)(1)(E).'' and inserting the 
        following: ``428C(b)(1)(E); and
                    ``(B) carry out, with respect to borrowers of any 
                loan made under part D (other than an excepted PLUS loan 
                or excepted consolidation loan), procedures for income-
                based repayment plans that are equivalent to the 
                procedures carried out under section 455(e)(8) with 
                respect to income-contingent repayment plans.''.
SEC. 5. AUTOMATIC INCOME MONITORING PROCEDURES AFTER A TOTAL AND 
                    PERMANENT DISABILITY DISCHARGE.

    Section 437(a) of the Higher Education Act of 1965 (20 U.S.C. 
1087(a)) is amended by adding at the end the following:
            ``(3) Automatic income monitoring.--
                    ``(A) <<NOTE: Determinations.>>  In general.--The 
                Secretary shall establish and implement, with respect to 
                any borrower described in subparagraph (B), procedures 
                to--

[[Page 133 STAT. 1194]]

                          ``(i) use return information disclosed under 
                      section 6103(l)(13) of the Internal Revenue Code 
                      of 1986, pursuant to approval provided under 
                      section 494, to determine the borrower's continued 
                      eligibility for the loan discharge described in 
                      subparagraph (B);
                          ``(ii) allow the borrower, at any time, to opt 
                      out of disclosure under such section 6103(l)(13) 
                      and instead provide such information as the 
                      Secretary may require to determine the borrower's 
                      continued eligibility for such loan discharge; and
                          ``(iii) provide the borrower with an 
                      opportunity to update the return information so 
                      disclosed before determination of such borrower's 
                      continued eligibility for such loan discharge.
                    ``(B) Applicability.--Subparagraph (A) shall apply--
                          ``(i) to each borrower of a loan that is 
                      discharged due to the total and permanent 
                      disability (within the meaning of this subsection) 
                      of the borrower; and
                          ``(ii) <<NOTE: Time period.>>  during the 
                      period beginning on the date on which such loan is 
                      so discharged and ending on the first day on which 
                      such loan may no longer be reinstated.''.
SEC. 6. PROCEDURE AND REQUIREMENTS FOR REQUESTING TAX RETURN 
                    INFORMATION FROM THE INTERNAL REVENUE SERVICE.

    (a) In General.--Part G of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1088 et seq.) is amended by adding at the end the 
following:
``SEC. 494. <<NOTE: 20 USC 1098h.>>  PROCEDURE AND REQUIREMENTS 
                        FOR REQUESTING TAX RETURN INFORMATION FROM 
                        THE INTERNAL REVENUE SERVICE.

    ``(a) Notification and Approval Requirements.--
            ``(1) Federal student financial aid.--In the case of any 
        written or electronic application under section 483 by an 
        individual for Federal student financial aid under a program 
        authorized under subpart 1 of part A, part C, or part D, the 
        Secretary, with respect to such individual and any parent or 
        spouse whose financial information is required to be provided on 
        such application, shall--
                    ``(A) notify such individuals that--
                          ``(i) if such individuals provide approval 
                      under subparagraph (B), the Secretary will have 
                      the authority to request that the Secretary of the 
                      Treasury disclose return information of such 
                      individuals to authorized persons (as defined in 
                      section 6103(l)(13) of the Internal Revenue Code 
                      of 1986) for the relevant purposes described in 
                      such section; and
                          ``(ii) the failure to provide such approval 
                      for such disclosure will result in the Secretary 
                      being unable to calculate eligibility for such aid 
                      to such individual; and
                    ``(B) require, as a condition of eligibility for 
                such aid, that such individuals affirmatively approve 
                the disclosure described in subparagraph (A)(i).
            ``(2) Income-contingent and income-based repayment.--

[[Page 133 STAT. 1195]]

                    ``(A) New applicants.--In the case of any written or 
                electronic application by an individual for an income-
                contingent or income-based repayment plan for a loan 
                under part D, the Secretary, with respect to such 
                individual and any spouse of such individual, shall--
                          ``(i) provide to such individuals the 
                      notification described in paragraph (1)(A)(i);
                          ``(ii) require, as a condition of eligibility 
                      for such repayment plan, that such individuals--
                                    ``(I) affirmatively approve the 
                                disclosure described in paragraph 
                                (1)(A)(i) and agree that such approval 
                                shall serve as an ongoing approval of 
                                such disclosure until the date on which 
                                the individual elects to opt out of such 
                                disclosure under section 455(e)(8) or 
                                the equivalent procedures established 
                                under section 493C(c)(2)(B), as 
                                applicable; or
                                    ``(II) provide such information as 
                                the Secretary may require to confirm the 
                                eligibility of such individual for such 
                                repayment plan.
                    ``(B) Recertifications.--With respect to the first 
                written or electronic recertification (after the date of 
                the enactment of the FUTURE Act) of an individual's 
                income or family size for purposes of an income-
                contingent or income-based repayment plan (entered into 
                before the date of the enactment of the FUTURE Act) for 
                a loan under part D, the Secretary, with respect to such 
                individual and any spouse of such individual, shall meet 
                the requirements of clauses (i) and (ii) of subparagraph 
                (A) with respect to such recertification.
            ``(3) Total and permanent disability.--In the case of any 
        written or electronic application by an individual for a 
        discharge of a loan under this title based on total and 
        permanent disability (within the meaning of section 437(a)) that 
        requires income monitoring, the Secretary shall--
                    ``(A) provide to such individual the notification 
                described in paragraph (1)(A)(i); and
                    ``(B) require, as a condition of eligibility for 
                such discharge, that such individual--
                          ``(i) affirmatively approve the disclosure 
                      described in paragraph (1)(A)(i) and agree that 
                      such approval shall serve as an ongoing approval 
                      of such disclosure until the earlier of--
                                    ``(I) the date on which the 
                                individual elects to opt out of such 
                                disclosure under section 437(a)(3)(A); 
                                or
                                    ``(II) the first day on which such 
                                loan may no longer be reinstated; or
                          ``(ii) provide such information as the 
                      Secretary may require to confirm the eligibility 
                      of such individual for such discharge.

    ``(b) Limit on Authority.--The Secretary shall only have authority 
to request that the Secretary of the Treasury disclose return 
information under section 6103(l)(13) of the Internal Revenue Code of 
1986 with respect to an individual if the Secretary of Education has 
obtained approval under subsection (a) for such disclosure.''.

[[Page 133 STAT. 1196]]

    (b) <<NOTE: Repeal.>>  Conforming Amendment.--Section 484(q) of the 
Higher Education Act of 1965 (20 U.S.C. 1091(q)) is repealed.
SEC. 7. INCREASED FUNDING FOR FEDERAL PELL GRANTS.

    Section 401(b)(7)(A)(iv) of the Higher Education Act of 1965 (20 
U.S.C. 1070a(b)(7)(A)(iv)) is amended--
            (1) in subclause (X), by striking ``$1,430,000,000'' and 
        inserting ``$1,455,000,000''; and
            (2) in subclause (XI), by striking ``$1,145,000,000'' and 
        inserting ``$1,170,000,000''.
SEC. 8. REPORTS ON IMPLEMENTATION.

    (a) In General.--Not later than each specified date, the Secretary 
of Education and the Secretary of the Treasury shall issue joint reports 
to the Committees on Health, Education, Labor, and Pensions and Finance 
of the Senate and the Committees on Education and Labor and Ways and 
Means of the House of Representatives regarding the amendments made by 
this Act. Each such report shall include, as applicable--
            (1) <<NOTE: Update.>>  an update on the status of 
        implementation of the amendments made by this Act;
            (2) <<NOTE: Evaluation.>>  an evaluation of how such 
        implementation had affected the processing of applications for 
        Federal student financial aid, applications for income-based 
        repayment and income-contingent repayment, and applications for 
        discharge of loans under title IV of the Higher Education Act of 
        1965 (20 U.S.C. 1070 et seq.) based on total and permanent 
        disability; and
            (3) implementation issues and suggestions for potential 
        improvements.

    (b) Specified Date. <<NOTE: Definition. Time periods.>> --For 
purposes of subsection (a), the term ``specified date'' means--
            (1) the date that is 90 days after the date of the enactment 
        of this Act;
            (2) the date that is 120 days after the first day that the 
        disclosure process established under section 6103(l)(13) of the 
        Internal Revenue Code of 1986, as amended by section 3(a) of 
        this Act, is operational and accessible to officers, employees, 
        and contractors of the Department of Education (as specifically 
        authorized and designated by the Secretary of Education); and

[[Page 133 STAT. 1197]]

            (3) the date that is 1 year after the report date described 
        in paragraph (2).

    Approved December 19, 2019.

LEGISLATIVE HISTORY--H.R. 5363:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 165 (2019):
            Dec. 10, considered and passed House and Senate.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2019):
            Dec. 19, Presidential statement.

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