[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4595 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 4595
To improve the structure of the Federal Pell Grant program, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 20, 2024
Ms. Hirono (for herself, Mrs. Murray, Mr. Reed, Mr. Whitehouse, Mr.
Padilla, Mr. Kaine, Mr. Van Hollen, Mr. Booker, Ms. Warren, Mr. Durbin,
Mr. Bennet, Ms. Duckworth, Mr. Welch, Mrs. Shaheen, Mr. Wyden, Mr.
Cardin, Mr. Casey, Ms. Hassan, Mr. Blumenthal, Mrs. Gillibrand, Mr.
Warnock, Mr. Heinrich, Ms. Butler, Ms. Klobuchar, Mr. Coons, Mr. Brown,
Mr. Fetterman, Ms. Baldwin, Mr. Merkley, Mr. Markey, Mr. Murphy, Mr.
Ossoff, and Ms. Smith) introduced the following bill; which was read
twice and referred to the Committee on Health, Education, Labor, and
Pensions
_______________________________________________________________________
A BILL
To improve the structure of the Federal Pell Grant program, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Pell Grant Preservation and
Expansion Act of 2024''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The United States needs individuals with the knowledge,
skills, and abilities that enable them to thrive as educated
citizens in society and successfully participate in an
interconnected economy.
(2) Investments in higher education through student aid
such as the Federal Pell Grant program under section 401 of the
Higher Education Act of 1965 (20 U.S.C. 1070a) help students
and families reach, afford, and complete education and training
opportunities beyond high school.
(3) The Federal Pell Grant program is the largest source of
federally funded grant aid for postsecondary education.
(4) The Federal Pell Grant program allows millions of
people of the United States to attend college and is especially
vital for students of color. Three in 5 African American
undergraduate students, and one-half of all Latino
undergraduate students, rely on the Federal Pell Grant program.
(5) The Federal Pell Grant program should continue to be a
reliable source of funding for aspiring students, their
families, and future generations that they can count on to be
there for them when they seek higher education.
(6) To stabilize Federal Pell Grant funding and ensure the
grant will continue to serve millions of students now and in
the future, the program should become a fully mandatory program
that grows with inflation.
(7) Restoring prior eligibility cuts and expanding access
to underserved students will give millions of students and
families the critical student aid support they need and
deserve.
SEC. 3. TABLE OF CONTENTS; REFERENCES.
(a) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title.
Sec. 2. Findings.
Sec. 3. Table of contents; references.
Sec. 4. Doubling Federal Pell Grants and providing all Federal Pell
Grants through mandatory funding.
Sec. 5. Providing increased Federal Pell Grants and other assistance
for recipients of means-tested benefits.
Sec. 6. Federal aid eligibility for dreamer students.
Sec. 7. Restoring the total semesters of Federal Pell Grant
eligibility.
Sec. 8. Reducing financial aid penalties from satisfactory academic
progress determinations.
Sec. 9. Conforming amendments.
Sec. 10. Effective date.
(b) References.--Except as otherwise expressly provided, whenever
in this Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provision of the
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
SEC. 4. DOUBLING FEDERAL PELL GRANTS AND PROVIDING ALL FEDERAL PELL
GRANTS THROUGH MANDATORY FUNDING.
(a) Amount of Minimum Federal Pell Grants.--Section 401 (20 U.S.C.
1070a) is amended--
(1) in subsection (a)(2)(F), by striking ``10 percent'' and
inserting ``5 percent'';
(2) in subsection (b)--
(A) in paragraph (1)(B)(i), by striking ``paragraph
(5)(A)'' and inserting ``paragraph (5)'';
(B) by striking paragraph (5) and inserting the
following:
``(5) Total maximum federal pell grant.--
``(A) Award year 2025-2026.--For award year 2025-
2026, the total maximum Federal Pell Grant award shall
be $10,000.
``(B) Award year 2026-2027.--For award year 2026-
2027, the total maximum Federal Pell Grant award shall
be $11,000.
``(C) Award year 2027-2028.--For award year 2027-
2028, the total maximum Federal Pell Grant award shall
be $12,000.
``(D) Award year 2028-2029.--For award year 2028-
2029, the total maximum Federal Pell Grant award shall
be $13,000.
``(E) Award year 2029-2030.--For award year 2029-
2030, the total maximum Federal Pell Grant award shall
be $14,000.
``(F) Award year 2030-2031 and subsequent years.--
For award year 2030-2031, and each subsequent award
year, the total maximum Federal Pell Grant award shall
be $14,000--
``(i) increased by the adjustment
percentage for the award year for which the
amount under this subparagraph is being
determined; and
``(ii) rounded to the nearest $50.
``(G) Definition of adjustment percentage.--In this
paragraph, the term `adjustment percentage,' as applied
to an award year, is equal to the percentage increase
in the Consumer Price Index, as defined in section
478(f), for the most recent calendar year ending prior
to the beginning of the award year.'';
(C) by striking paragraphs (6) and (7) and
inserting the following:
``(6) Appropriation of funds.--There are authorized to be
appropriated, and there are appropriated, out of any money in
the Treasury not otherwise appropriated, such sums as may be
necessary for fiscal year 2025 and each subsequent fiscal year
to provide the Federal Pell Grant for which a student shall be
eligible under this section during an award year.''; and
(D) by redesignating paragraphs (8) and (9) as
paragraphs (7) and (8), respectively;
(3) in subsection (d)(5)(B)--
(A) in clause (i), by striking ``subclause (I) or
(II)'' and inserting ``subclause (I), (II), or (III)'';
and
(B) in clause (ii)--
(i) in subclause (I)(bb), by striking
``or'' after the semicolon;
(ii) in subclause (II)(bb)(CC), by striking
the period and inserting ``; or''; and
(iii) by adding at the end the following:
``(III) during a period for which
the student did not receive a loan
under this title but for which, if the
student had received such a loan, such
loan would have been discharged under
the circumstances described in
subclause (II)(bb)(CC).'';
(4) by striking subsections (g) and (h); and
(5) by redesignating subsections (i) and (j) as subsections
(g) and (h), respectively.
(b) Repeal of Scoring Requirement.--Section 406 of H. Con. Res. 95
(109th Congress) is amended--
(1) by striking subsection (b); and
(2) by striking ``(a) In General.--Upon'' and inserting the
following: ``Upon''.
(c) Student Support Services.--Section 402D(d)(1) (20 U.S.C. 1070a-
14(d)(1)) is amended by striking ``the minimum'' and inserting ``10
percent of the total maximum''.
(d) Scholarship Component.--Section 404E(d) (20 U.S.C. 1070a-25(d))
is amended by striking ``less than the minimum'' and inserting ``less
than 10 percent of the total maximum''.
SEC. 5. PROVIDING INCREASED FEDERAL PELL GRANTS AND OTHER ASSISTANCE
FOR RECIPIENTS OF MEANS-TESTED BENEFITS.
(a) Increased Amount of Maximum Federal Pell Grants for Students
With Negative Student Aid Indexes.--Section 401(b)(1) (20 U.S.C.
1070a(b)(1)), as amended by section 4 of this Act, is further amended--
(1) in subparagraph (A)--
(A) in the matter preceding clause (i), by striking
``A student'' and inserting ``Except in the case of a
student with a student aid index of less than zero, a
student'';
(B) by striking clause (i); and
(C) by redesignating clauses (ii) and (iii) as
clauses (i) and (ii), respectively;
(2) by redesignating subparagraphs (B) through (E) as
subparagraphs (C) through (F), respectively;
(3) by inserting after subparagraph (A) the following:
``(B) A student with a student aid index of less
than zero shall be eligible for a Federal Pell Grant
award that exceeds the total maximum Federal Pell Grant
by an amount equal to the amount by which the student's
student aid index is less than zero.'';
(4) in subparagraph (C), as redesignated by paragraph (2)--
(A) in the matter preceding clause (i), by striking
``subparagraph (A) for an academic year,'' and
inserting ``subparagraph (A), or an increased Federal
Pell Grant under subparagraph (B), for an academic
year,''; and
(B) in clause (ii), by striking ``, except that a
student aid index of less than zero shall be considered
to be zero for the purposes of this clause'';
(5) in subparagraph (D), as redesignated by paragraph (2),
by striking ``(A) or (B)'' and inserting ``(A), (B), or (C)'';
(6) in subparagraph (E), as redesignated by paragraph (2),
by inserting ``or an increased Federal Pell Grant under
subparagraph (B)'' after ``subparagraph (A)''; or
(7) in subparagraph (F), as redesignated by paragraph (2),
by striking ``or a minimum Federal Pell Grant under
subparagraph (C)'' and inserting ``an increased Federal Pell
Grant under subparagraph (B), or a minimum Federal Pell Grant
under subparagraph (D)''.
(b) Special Student Aid Index Rule for Recipients of Means-Tested
Benefits.--Section 473 (20 U.S.C. 1087mm) is amended by adding at the
end the following:
``(d) Special Rule for Means-Tested Benefit Recipients.--
Notwithstanding subsection (b), for an applicant (or, as applicable, an
applicant and spouse, or an applicant's parents) who, at any time
during the previous 2 -year period, received a benefit under a means-
tested Federal benefit program, as defined in section 479(b)(4)(H), (or
whose parent or spouse received such a benefit, as applicable), the
Secretary shall for the purposes of this title consider the student aid
index as equal to -$1,500 for the applicant.''.
SEC. 6. FEDERAL AID ELIGIBILITY FOR DREAMER STUDENTS.
Section 484 (20 U.S.C. 1091) is amended--
(1) in subsection (a)(5), by inserting ``, or be a Dreamer
student, as defined in subsection (u)'' after ``becoming a
citizen or permanent resident''; and
(2) by adding at the end the following:
``(u) Dreamer Students.--
``(1) In general.--In this section, the term `Dreamer
student' means an individual who--
``(A)(i) is not a citizen or national of the United
States; and
``(ii) is inadmissible or deportable under the
Immigration and Nationality Act (8 U.S.C. 1101 et
seq.)); and
``(B)(i) in the case of such an individual who was
younger than 18 years of age on the date on which the
individual initially entered the United States--
``(I) has earned a high school diploma, the
recognized equivalent of such diploma from a
secondary school, or a high school equivalency
diploma recognized by State law, or is
scheduled to complete the requirements for such
a diploma or equivalent before the next
academic year begins;
``(II) is enrolled at an institution of
higher education pursuant to subsection (d);
``(III) has served in the uniformed
services (as such term is defined in section
101 of title 10, United States Code) for not
less than 2 years and, if discharged, received
an honorable discharge;
``(IV) has acquired a degree, certificate,
or recognized postsecondary credential from an
institution of higher education or area career
and technical education school (as such term is
defined in section 3 of the Carl D. Perkins
Career and Technical Education Act of 2006 (20
U.S.C. 2302)); or
``(V) has completed not less than 2 years
in a postsecondary program at an institution of
higher education, or area career and technical
education school, in the United States; or
``(ii)(I) is, or at any time was, eligible for a
grant of deferred action pursuant to--
``(aa) the memorandum of the Department of
Homeland Security entitled `Exercising
Prosecutorial Discretion with Respect to
Individuals Who Came to the United States as
Children' issued on June 15, 2012; or
``(bb) the memorandum of the Department of
Homeland Security entitled `Exercising
Prosecutorial Discretion with Respect to
Individuals Who Came to the United States as
Children and with Respect to Certain
Individuals Who Are the Parents of U.S.
Citizens or Permanent Residents' issued on
November 20, 2014; or
``(II) would have been eligible for such a grant of
deferred action if the applicable memorandum described
in subclause (I) had been fully in effect since the
date on which it was issued.
``(2) Hardship exception.--The Secretary shall issue
regulations that direct when the Department shall waive the age
requirement of paragraph (1)(B)(i) for an individual to qualify
as a Dreamer student under such paragraph, if the individual
demonstrates compelling circumstances, such as economic
hardship (as defined in section 435(o)).''.
SEC. 7. RESTORING THE TOTAL SEMESTERS OF FEDERAL PELL GRANT
ELIGIBILITY.
Section 401(d)(5)(A) is amended by striking ``12'' each place the
term appears and inserting ``18''.
SEC. 8. REDUCING FINANCIAL AID PENALTIES FROM SATISFACTORY ACADEMIC
PROGRESS DETERMINATIONS.
Section 484(c) of the Higher Education Act of 1965 (20 U.S.C.
1091(c)) is amended to read as follows:
``(c) Satisfactory Progress.--
``(1) Definitions.--In this subsection:
``(A) Appeal.--The term `appeal' means a process by
which a student who is not meeting the institution's
satisfactory academic progress standards petitions the
institution for reconsideration of the student's
eligibility for assistance under this title.
``(B) Financial aid probation.--The term `financial
aid probation' means a status assigned by an
institution to a student who fails to make satisfactory
academic progress and who has appealed and has had
eligibility for aid reinstated.
``(C) Financial aid warning.--The term `financial
aid warning' means a status assigned to a student who
fails to make satisfactory academic progress at the end
of the semester or equivalent period in which the
student first fails to make such progress.
``(D) Payment period.--The term `payment period'
means the applicable payment period described in
section 668.4 of title 34, Code of Federal Regulations,
or any successor regulation.
``(2) Satisfactory academic progress policy.--An
institution shall establish a reasonable satisfactory academic
progress policy for determining whether an otherwise eligible
student is making satisfactory academic progress in the
student's educational program and may receive assistance under
this title. The Secretary shall consider the institution's
policy to be reasonable if--
``(A) the policy is not more burdensome than the
policy the institution applies to a student who is not
receiving assistance under this title;
``(B) the policy provides for consistent
application of standards to all students, including
full-time, part-time, undergraduate, and graduate
students, and all educational programs established by
the institution;
``(C)(i) the policy specifies the grade point
average that a student must achieve at each evaluation,
or if a grade point average is not an appropriate
qualitative measure, a comparable assessment measured
against a norm; and