HR 589 IH

To provide for the full funding of the Pell Grant Program.

February 13, 2001

Mrs. MINK of Hawaii introduced the following bill; which was referred to the Committee on Education and the Workforce

To provide for the full funding of the Pell Grant Program.

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 Full Funding Act'.

SEC. 2. FULL FUNDING OF PELL GRANT AWARDS.

Subsection (g) of section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a(g) is amended to read as follows:

`(g) ADJUSTMENTS FOR INSUFFICIENT APPROPRIATIONS-

`(1) FISCAL YEARS 2002 AND 2003- (A) If, for fiscal years 2002 and 2003, the funds appropriated for payments under this subpart are insufficient to satisfy fully all entitlements, as calculated under subsection (b), the amount paid with respect to each entitlement shall be--

`(i) the full amount for any student whose expected family contribution is $400 or less; or

`(ii) a percentage of that entitlement, as determined in accordance with a schedule of reductions established by the Secretary for this purpose, for any student whose expected family contribution is more than $400.

`(B) Any schedule established by the Secretary for the purpose of subparagraph (A)(ii) of this subsection shall contain a single linear reduction formula in which the percentage reduction increases uniformly as the entitlement decreases, and shall provide that if an entitlement is reduced to less than $200, no payment shall be made.

`(2) SUCCEEDING FISCAL YEARS- (A) For fiscal year 2004 or any succeeding fiscal year, each institution of higher education which has an agreement with the Secretary under subparagraph (C) of this paragraph--

`(i) shall make awards to its eligible students in the full amount to which such student is entitled under this subpart;

`(ii) shall, except as provided in subparagraph (E), credit the amounts of such awards toward the tuition, fees, room and board, and other expenses incurred by the eligible student; and

`(iii) shall submit vouchers for reimbursement of such awards at such time, in such form, and containing or accompanied by such information as the Secretary may require by regulation.

`(B) The Secretary shall reimburse each institution submitting a voucher under subparagraph (A)(iii) for the full amount of the awards credited by such institution to eligible students as required by subparagraph (A)(ii).

`(C) Each institution desiring to provide grants under this subpart to its eligible students shall enter into an agreement with the Secretary for purposes of this subsection. Such agreement shall--

`(i) specify the conditions with which the institution shall comply to obtain reimbursements under this subsection;

`(ii) specify the obligations of the Secretary with respect to such reimbursements; and

`(iii) contain such additional terms and conditions as the Secretary may require by regulation.

`(D) An institution which--

`(i) has entered into an agreement with the Secretary under subparagraph (C);

`(ii) has awarded grants to eligible students in accordance with this subpart; and

`(iii) credited such awards in accordance with subparagraph (A)(ii) of this subsection;

shall be deemed to have a contractual right against the United States to receive reimbursement according to the provisions of this subsection. Such reimbursements shall, for purposes of chapter 39 of title 31, United States Code, be considered to be payments made for the acquisition of services by contract with the Department.

`(E) In the case of a student who does not reside in institutionally owned or operated housing and whose basic grant exceeds the amount of the tuition and fees owed by that student, the institution shall pay such excess to such student in accordance with procedures as may be prescribed by the Secretary. For purposes of subparagraph (D)(iii), any amounts so paid shall be treated as amounts credited in accordance with subparagraph (A)(ii), and may be used by such student to cover room, board, transportation, child care, books, and other costs of attendance.'.

END