[Congressional Bills 118th Congress] [From the U.S. Government Publishing Office] [H.R. 8807 Introduced in House (IH)] <DOC> 118th CONGRESS 2d Session H. R. 8807 To improve the structure of the Federal Pell Grant program, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES June 21, 2024 Mr. Pocan (for himself, Mr. Scott of Virginia, Ms. Bush, Ms. Bonamici, Mr. Garamendi, Ms. Norton, Ms. Wilson of Florida, Ms. Williams of Georgia, Mr. Doggett, Mr. Thompson of Mississippi, Mr. Sarbanes, Mr. Sablan, Ms. Strickland, Ms. Moore of Wisconsin, Ms. Lee of California, Mr. Sherman, Mr. Vargas, Ms. Kelly of Illinois, Mr. Grijalva, Mr. Goldman of New York, Ms. Adams, Mr. Carson, Mrs. Beatty, Mr. Magaziner, Mr. DeSaulnier, Ms. Matsui, Mr. Raskin, Ms. Ocasio-Cortez, Mr. Espaillat, and Mr. Krishnamoorthi) introduced the following bill; which was referred to the Committee on Education and the Workforce, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned _______________________________________________________________________ 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 during such time period; 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 instituti