[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.
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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).
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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.
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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.
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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).
* * * * * * *
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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