[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1136 Introduced in Senate (IS)]
<DOC>
115th CONGRESS
1st Session
S. 1136
To improve the structure of the Federal Pell Grant program, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 16, 2017
Ms. Hirono (for herself, Mrs. Murray, Mr. Reed, Mr. Whitehouse, Ms.
Warren, and Mr. Schatz) 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''.
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 to 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) Protecting surplus funds, 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. Funding Federal Pell Grants through mandatory funding.
Sec. 5. Restoring Federal Pell Grant eligibility for borrower defense.
Sec. 6. Federal Pell Grant eligibility for DREAMer students.
Sec. 7. Repeal of suspension of eligibility under the Higher Education
Act of 1965 for grants, loans, and work
assistance for drug-related offenses.
Sec. 8. Extending Federal Pell Grant eligibility of certain short-term
programs.
Sec. 9. Providing Federal Pell grants for Iraq and Afghanistan
veteran's dependents.
Sec. 10. Increasing support for working students by 35 percent.
Sec. 11. Increasing the Federal Pell Grant auto-zero threshold.
Sec. 12. Raising the total semesters of Federal Pell Grant eligibility.
Sec. 13. Conforming amendments.
Sec. 14. 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. FUNDING FEDERAL PELL GRANTS THROUGH MANDATORY FUNDING.
(a) Mandatory Funding; Reinstating Eligibility for Incarcerated
Individuals.--Section 401 (20 U.S.C. 1070a) is amended--
(1) in subsection (a)(1), by striking ``through fiscal year
2017'';
(2) in subsection (b)--
(A) by striking paragraphs (1), (6), and (7);
(B) by redesignating paragraph (8) as paragraph
(7);
(C) by striking subparagraph (A) of paragraph (2);
(D) by redesignating subparagraph (B) of paragraph
(2) as paragraph (2);
(E) by inserting before paragraph (2) (as
redesignated by subparagraph (D)) the following:
``(1) Amount.--The amount of the Federal Pell Grant for a student
eligible under this subpart shall be--
``(A) the maximum Federal Pell Grant described in paragraph
(6); less
``(B) the amount equal to the amount determined to be the
expected family contribution with respect to such student for
such year.'';
(F) in paragraph (4), by striking ``maximum amount
of a Federal Pell Grant award determined under
paragraph (2)(A)'' and inserting ``maximum Federal Pell
Grant described in paragraph (6)'';
(G) in paragraph (5), by striking ``maximum amount
of a Federal Pell Grant award determined under
paragraph (2)(A)'' and inserting ``maximum amount of a
Federal Pell Grant award described in paragraph (6)'';
(H) by inserting after paragraph (5) the following:
``(6) Maximum federal pell grant.--
``(A) Award year 2018-2019.--For award year 2018-
2019, the maximum Federal Pell Grant shall be $6,420.
``(B) Subsequent award years.--For award year 2019-
2020 and each subsequent award year, the maximum
Federal Pell Grant shall be equal to the total maximum
Federal Pell Grant for the preceding award year under
this paragraph--
``(i) increased by the annual adjustment
percentage for the award year for which the
amount under this subparagraph is being
determined; and
``(ii) rounded to the nearest $5.
``(C) Definition of annual adjustment percentage.--
In this paragraph, the term `annual adjustment
percentage,' as applied to an award year, is equal to
the estimated percentage increase 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
(I) in paragraph (7), as redesignated by
subparagraph (B), by striking ``may exceed'' and all
that follows through the period and inserting ``may
exceed the maximum Federal Pell Grant available for an
award year.'';
(3) in subsection (f)--
(A) in paragraph (1), by striking the matter
preceding subparagraph (A) and inserting the following:
``After receiving an application for a Federal Pell
Grant under this subpart, the Secretary (including any
contractor of the Secretary processing applications for
Federal Pell Grants under this subpart) shall, in a
timely manner, furnish to the student financial aid
administrator at each institution of higher education
that a student awarded a Federal Pell Grant under this
subpart is attending, the expected family contribution
for each such student. Each such student financial
administrator shall--''; and
(B) in paragraph (3)--
(i) by striking ``after academic year 1986-
1987''; and
(ii) in paragraph (3), by striking ``the
Committee on Appropriations of the Senate, the
Committee on Appropriations of the House of
Representatives, and'';
(4) by striking subsections (g) and (h);
(5) by redesignating subsections (i) and (j) as subsections
(g) and (h), respectively; and
(6) by adding at the end the following:
``(k) 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 2017 and each subsequent fiscal year to provide the maximum
Federal Pell Grant for which a student shall be eligible under this
section during an award year.''.
(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''.
SEC. 5. RESTORING FEDERAL PELL GRANT ELIGIBILITY FOR BORROWER DEFENSE.
Section 401(c)(5) (20 U.S.C. 1070a(c)(5)) is amended--
(1) by striking ``(5) The period'' and inserting the
following: ``(5) Maximum period.--
``(A) In general.--Except as provided in
subparagraph (B), the period''; and
(2) by adding at the end the following:
``(B) Exception.--
``(i) In general.--Any Federal Pell Grant
that a student received during a period
described in subclause (I) or (II) of clause
(ii) shall not count towards the student's
duration limits under this paragraph.
``(ii) Applicable periods.--Clause (i)
shall apply with respect to any Federal Pell
Grant awarded to a student to attend an
institution--
``(I) during a period--
``(aa) for which the
student received a loan under
this title; and
``(bb) for which the loan
described in item (aa) is
forgiven under--
``(AA) section
437(c)(1) or 464(g)(1)
due to the closing of
the institution;
``(BB) section
455(h) due to the
student's successful
assertion of a defense
to repayment of the
loan; or
``(CC) section
432(a)(6), section
685.215 of title 34,
Code of Federal
Regulations (or a
successor regulation),
or any other loan
forgiveness provision
or regulation under
this Act, as a result
of a determination by
the Secretary or a
court that the
institution committed
fraud or other
misconduct; or
``(II) 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, the
student would have qualified for loan
forgiveness under subclause (I)(bb).''.
SEC. 6. FEDERAL PELL GRANT 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) was younger than 16 years of age on the date
on which the individual initially entered the United
States;
``(B) has provided a list of each secondary school
that the student attended in the United States; and
``(C)(i) has earned a high school diploma, the
recognized equivalent of such diploma from a secondary
school, or a high school equivalency diploma in the
United States or is scheduled to complete the
requirements for such a diploma or equivalent before
the next academic year begins;
``(ii) has acquired a degree from an institution of
higher education or has completed not less than 2 years
in a program for a baccalaureate degree or higher
degree at an institution of higher education in the
United States and has made satisfactory academic
progress, as defined in subsection (c), during such
time period;
``(iii) at any time was eligible for a grant of
deferred action under--
``(I) the June 15, 2012, memorandum from
the Secretary of Homeland Security entitled
`Exercising Prosecutorial Discretion with
Respect to Individuals Who Came to the United
States as Children'; or
``(II) the November 20, 2014, memorandum
from the Secretary 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'; or
``(iv) has served in the uniformed services, as
defined in section 101 of title 10, United States Code,
for not less than 4 years and, if discharged, received
an honorable discharge.
``(2) Hardship exception.--The Secretary shall issue
regulations that direct when the Department shall waive the
requirement of subparagraph (A) or (B), or both, of paragraph
(1) for an individual to qualify as a Dreamer student under
such paragraph, if the individual--
``(A) demonstrates compelling circumstances for the
inability to satisfy the requirement of such
subparagraph (A) or (B), or both; and
``(B) satisfies the requirement of paragraph
(1)(C).''.
SEC. 7. REPEAL OF SUSPENSION OF ELIGIBILITY UNDER THE HIGHER EDUCATION
ACT OF 1965 FOR GRANTS, LOANS, AND WORK ASSISTANCE FOR
DRUG-RELATED OFFENSES.
(a) Repeal.--Subsection (r) of section 484 (20 U.S.C. 1091(r)) is
repealed.
(b) Revision of FAFSA Form.--Section 483 of the Higher Education
Act of 1965 (20 U.S.C. 1090) is amended by adding at the end the
following:
``(i) Convictions.--The Secretary shall not include any question
about the conviction of an applicant for the possession or sale of
illegal drugs on the FAFSA (or any other form developed under
subsection (a)).''.
(c) Conforming Amendments.--The Act (20 U.S.C. 1001 et seq.) is
amended--
(1) in section 428(b)(3) (20 U.S.C. 1078(b)(3))--
(A) in subparagraph (C), by striking ``485(l)'' and
inserting ``485(k)''; and
(B) in subparagraph (D), by striking ``485(l)'' and
inserting ``485(k)'';
(2) in section 435(d)(5) (20 U.S.C. 1085(d)(5))--
(A) in subparagraph (E), by striking ``485(l)'' and
inserting ``485(k)''; and
(B) in subparagraph (F), by striking ``485(l)'' and
inserting ``485(k)'';
(3) in section 484 (20 U.S.C. 1091), as amended by section
6, by redesignating subsections (s),(t), and (u) as subsections
(r), (s), and (t), respectively;
(4) in section 485 (20 U.S.C. 1092)--
(A) by striking subsection (k); and
(B) by redesignating subsections (l) and (m) as
subsections (k) and (l), respectively; and
(5) in section 487(e)(2)(B)(ii)(IV) (20 U.S.C.
1094(e)(2)(B)(ii)(IV)), by striking ``(l) of section 485'' and
inserting ``(k) of section 485''.
SEC. 8. EXTENDING FEDERAL PELL GRANT ELIGIBILITY OF CERTAIN SHORT-TERM
PROGRAMS.
(a) In General.--Section 401 (20 U.S.C. 1070a), as amended by
section 4, is further amended by inserting after subsection (h) the
following:
``(i) Job Training Federal Pell Grant Program.--
``(1) Definitions.--In this subsection:
``(A) Eligible career pathway program.--The term
`eligible career pathway program' means a program
that--
``(i) meets the requirements of section
484(d)(2);
``(ii) is a program of training services
listed under section 122(d) of the Workforce
Innovation and Opportunity Act (29 U.S.C.
3152(d)); and
``(iii) is part of a career pathway, as
defined in section 3 of such Act (29 U.S.C.
3102).
``(B) Job training program.--The term `job training
program' means a career and technical education program
at an institution of higher education that--
``(i) provides not less than 150, and not
more than 600, clock hours of instructional
time over a period of not less than 8, and not
more than 15, weeks;
``(ii) provides training aligned with the
requirements of employers in the State or local
area, which may include in-demand industry
sectors or occupations, as defined in section 3
of the Workforce Innovation and Opportunity Act
(29 U.S.C. 3102), in the State or local area
(as defined in such section);
``(iii) is a program of training services,
and provided through an eligible provider of
training services, listed under section 122(d)
of such Act (29 U.S.C. 3152(d));
``(iv) provides a student, upon completion
of the program, with a recognized postsecondary
credential, as defined in section 3 of such
Act, that is recognized by employers in the
relevant industry, including credentials
recognized by industry or sector partnerships
in the State or local area where the industry
is located;
``(v) has been determined, by the
institution of higher education, to provide
academic content, an amount of instructional
time, and a recognized postsecondary credential
that are sufficient to--
``(I) meet the hiring requirements
of potential employers; and
``(II) satisfy any applicable
educational prerequisite requirement
for professional licensure or
certification, so that the student who
completes the program and seeks
employment qualifies to take any
licensure or certification examination
needed to practice or find employment
in an occupation that the program
prepares students to enter;
``(vi) may include integrated or basic
skills courses; and
``(vii) may be offered as part of an
eligible career pathway program.
``(2) In general.--For the award year beginning on July 1,
2018, and each subsequent award year, the Secretary shall carry
out a program through which the Secretary shall award job
training Federal Pell Grants to students in job training
programs. Each job training Federal Pell Grant awarded under
this subsection shall have the same terms and conditions, and
be awarded in the same manner, as a Federal Pell Grant awarded
under subsection (a), except as follows:
``(A) A student who is eligible to receive a job
training Federal Pell Grant under this subsection is a
student who--
``(i) has not yet attained a baccalaureate
degree or postbaccalaureate degree;
``(ii) attends an institution of higher
education;
``(iii) is enrolled, or accepted for
enrollment, in a job training program at such
institution of higher education; and
``(iv) meets all other eligibility
requirements for a Federal Pell Grant (except
with respect to the type of program of study,
as provided in clause (iii)).
``(B) The amount of a job training Federal Pell
Grant for an eligible student shall be determined under
subsection (b)(1), except that--
``(i) the maximum Federal Pell Grant
awarded under this subsection for an award year
shall be 50 percent of the maximum Federal Pell
Grant awarded under subsection (b)(5)
applicable to that award year; and
``(ii) subsection (b)(4) shall not apply.
``(3) Inclusion in total eligibility period.--Any period
during which a student receives a job training Federal Pell
Grant under this subsection shall be included in calculating
the student's period of eligibility for Federal Pell Grants
under subsection (c), and any regulations under such subsection
regarding students who are enrolled in an undergraduate program
on less than a full-time basis shall similarly apply to
students who are enrolled in a job training program at an
eligible institution on less than a full-time basis.''.
(b) Additional Safeguards.--Section 496(a)(4) (20 U.S.C.
1099b(a)(4)) is amended--
(1) in subparagraph (A), by striking ``and'' after the
semicolon;
(2) in subparagraph (B)(ii), by inserting ``and'' after the
semicolon; 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 of higher education
participating in the job training Federal Pell Grant
program under section 401(i), such agency or
association shall, in addition to meeting the other
requirements of this subpart, demonstrate to the
Secretary that, with respect to such job training
programs--
``(i) the agency or association's standards
include a process for determining whether the
program provides training aligned with the
requirements of employers in the State or local
area served by the program; and
``(ii) the agency or association requires a
demonstration that the program--
``(I) has identified each
recognized postsecondary credential
offered and the corresponding industry
or sector partnership that actively
recognizes each credential in the
relevant industry in the State or local
area where the industry is located; and
``(II) provides the academic
content and amount of instructional
time that is sufficient to--
``(aa) meet the hiring
requirements of potential
employers; and
``(bb) satisfy any
applicable educational
prerequisites for professional
licensure or certification
requirements so that the
student who completes the
program and seeks employment
qualifies to take any licensure
or certification examination
that is needed to practice or
find employment in an
occupation that the program
prepares students to enter;''.
SEC. 9. PROVIDING FEDERAL PELL GRANTS FOR IRAQ AND AFGHANISTAN
VETERAN'S DEPENDENTS.
(a) Amendments.--Part A of title IV (20 U.S.C. 1070a et seq.) is
amended--
(1) in section 401, as amended by section 8, by inserting
after subsection (i) the following:
``(j) Scholarships for Veteran's Dependents.--
``(1) Definition of eligible veteran's dependent.--In this
subsection, the term `eligible veteran's dependent' means a
dependent or an independent student--
``(A) whose parent or guardian was a member of the
Armed Forces of the United States and died as a result
of performing military service in Iraq or Afghanistan
after September 11, 2001; and
``(B) who, at the time of the parent or guardian's
death, was--
``(i) less than 24 years of age; or
``(ii) enrolled at an institution of higher
education on a part-time or full-time basis.
``(2) Grants.--
``(A) In general.--The Secretary shall award a
Federal Pell Grant, as modified in accordance with the
requirements of this subsection, to each eligible
veteran's dependent to assist in paying the eligible
veteran's dependent's cost of attendance at an
institution of higher education.
``(B) Designation.--Federal Pell Grants made under
this subsection may be known as `Iraq and Afghanistan
Service Grants'.
``(3) Prevention of double benefits.--No eligible veteran's
dependent may receive a grant under both this subsection and
subsection (a).
``(4) Terms and conditions.--The Secretary shall award Iraq
and Afghanistan Service Grants under this subsection in the
same manner and with the same terms and conditions, including
the length of the period of eligibility, as the Secretary
awards Federal Pell Grants under subsection (a), except that--
``(A) the award rules and determination of need
applicable to the calculation of Federal Pell Grants
under subsection (a) shall not apply to Iraq and
Afghanistan Service Grants;
``(B) the provisions of paragraph (1)(B) and (3) of
subsection (b), and subsection (f), shall not apply;
``(C) the maximum period determined under
subsection (c)(5) shall be determined by including all
Iraq and Afghanistan Service Grants received by the
eligible veteran's dependent, including such Grants
received under subpart 10 before the effective date of
this subsection; and
``(D) an Iraq and Afghanistan Service Grant to an
eligible veteran's dependent for any award year shall
equal the maximum Federal Pell Grant available under
subsection (b)(5) for that award year, except that an
Iraq and Afghanistan Service Grant--
``(i) shall not exceed the cost of
attendance of the eligible veteran's dependent
for that award year; and
``(ii) shall be adjusted to reflect the
attendance by the eligible veteran's dependent
on a less than full-time basis in the same
manner as such adjustments are made for a
Federal Pell Grant under subsection (a).
``(5) Estimated financial assistance.--For purposes of
determinations of need under part F, an Iraq and Afghanistan
Service Grant shall not be treated as estimated financial
assistance as described in sections 471(3) and 480(j).''; and
(2) by striking subpart 10 of part A (20 U.S.C. 1070h).
(b) Effective Date; Transition.--
(1) Effective date.--The amendments made by this section
shall take effect with respect to the award year immediately
following the date of enactment of this Act.
(2) Transition.--The Secretary shall take such steps as are
necessary to transition from the Iraq and Afghanistan Service
Grants program under subpart 10 of part A of title IV of the
Higher Education Act of 1965 (20 U.S.C. 1070h), as in effect on
the day before the effective date of this section, and the Iraq
and Afghanistan Service Grants program under section 401(j) of
the Higher Education Act of 1965 (20 U.S.C. 1070a(j)), as
amended by this section.
SEC. 10. INCREASING SUPPORT FOR WORKING STUDENTS BY 35 PERCENT.
(a) Dependent Students.--Section 475(g)(2)(D) (20 U.S.C.
1087oo(g)(2)(D)) is amended to read as follows:
``(D) an income protection allowance (or a
successor amount prescribed by the Secretary under
section 478) of $9,010 for academic year 2018-2019;''.
(b) Independent Students Without Dependents Other Than a Spouse.--
Section 476(b)(1)(A)(iv) (20 U.S.C. 1087pp(b)(1)(A)(iv)) is amended to
read as follows:
``(iv) an income protection allowance (or a
successor amount prescribed by the Secretary
under section 478)--
``(I) for single or separated
students, or married students where
both are enrolled pursuant to
subsection (a)(2), of $14,010 for
academic year 2018-2019; and
``(II) for married students where
one is enrolled pursuant to subsection
(a)(2), of $22,460 for academic year
2018-2019;''.
(c) Independent Students With Dependents Other Than a Spouse.--
Section 477(b)(4) (20 U.S.C. 1087qq(b)(4)) is amended to read as
follows:
``(4) Income protection allowance.--The income protection
allowance is determined by the following table (or a successor
table prescribed by the Secretary under section 478), for
academic year 2018-2019:
``Income Protection Allowance
----------------------------------------------------------------------------------------------------------------
Family Size Number in College
----------------------------------------------------------------------------------------------------------------
For each
(including 1 2 3 4 5 additional
student) subtract:
----------------------------------------------------------------------------------------------------------------
2 $35,470 $29,410 $6,030
3 44,170 38,130 $32,070
4 54,540 45,490 42,450 $36,370
5 64,360 58,280 52,240 46,190 $40,160
6 75,260 69,210 63,190 57,090 51,070
For each
additional
add: 8,500 ''.
----------------------------------------------------------------------------------------------------------------
(d) Updated Tables and Amounts.--Section 478(b) (20 U.S.C.
1087rr(b)) is amended--
(1) in paragraph (1), by striking subparagraphs (A) and (B)
and inserting the following:
``(A) In general.--For each academic year after
academic year 2018-2019, the Secretary shall publish in
the Federal Register a revised table of income
protection allowances for the purpose of sections
475(c)(4) and 477(b)(4), subject to subparagraphs (B)
and (C).
``(B) Table for independent students.--For each
academic year after academic year 2018-2019, the
Secretary shall develop the revised table of income
protection allowances by increasing each of the dollar
amounts contained in the table of income protection
allowances under section 477(b)(4) by a percentage
equal to the estimated percentage increase in the
Consumer Price Index (as determined by the Secretary
for the most recent calendar year ending prior to the
beginning of the academic year for which the
determination is being made), and rounding the result
to the nearest $10.''; and
(2) in paragraph (2), by striking ``shall be developed''
and all that follows through the period at the end and
inserting ``shall be developed for each academic year after
academic year 2018-2019, by increasing each of the dollar
amounts contained in such section for academic year 2018-2019
by a percentage equal to the estimated percentage increase in
the Consumer Price Index (as determined by the Secretary for
the most recent calendar year ending prior to the beginning of
the academic year for which the determination is being made),
and rounding the result to the nearest $10.''.
SEC. 11. INCREASING THE FEDERAL PELL GRANT AUTO-ZERO THRESHOLD.
Section 479(c) (20 U.S.C. 1087ss(c)) is amended--
(1) in paragraph (1)(B), by striking ``$23,000'' and
inserting ``$34,000'';
(2) in paragraph (2)(B), by striking ``$23,000'' and
inserting ``$34,000''; and
(3) in the matter following paragraph (2)(B), by striking
``adjusted according to increases in the Consumer Price Index,
as defined in section 478(f)'' and inserting ``annually
increased by the estimated percentage change in the Consumer
Price Index, as defined in section 478(f), for the most recent
calendar year ending prior to the beginning of an award year,
and rounded to the nearest $1,000''.
SEC. 12. RAISING THE TOTAL SEMESTERS OF FEDERAL PELL GRANT ELIGIBILITY.
Section 401(c)(5)(A) (20 U.S.C. 1070a(c)(5)(A)), as amended by
section 5, is further amended by striking ``12'' each place the term
appears and inserting ``14''.
SEC. 13. CONFORMING AMENDMENTS.
The Act (20 U.S.C. 1001 et seq.) is amended--
(1) in section 401A(d)(1)(B)(i) (20 U.S.C. 1070a-
1(d)(1)(B)(i)), by striking ``section 401(b)(2)(B)'' and
inserting ``section 401(b)(2)'';
(2) in section 402D(d)(1) (20 U.S.C. 1070a-14(d)(1)), by
striking ``section 401(b)(2)(A)'' and inserting ``section
401(b)(1)'';
(3) in section 420R(d)(2) (20 U.S.C. 1070h(d)(2)), by
striking ``subsection (b)(1), the matter following subsection
(b)(2)(A)(v),'';
(4) in section 435(a)(5)(A)(i)(I) (20 U.S.C.
1085(a)(5)(A)(i)(I)), by striking ``under section
401(b)(2)(A)'' and inserting ``, as appropriate, under section
401(b)(2)(A) (as in effect on the day before the effective date
of the Pell Grant Preservation and Expansion Act) or section
401(b)(1)'';
(5) in section 483(e)(3)(A)(ii) (20 U.S.C.
1090(e)(3)(A)(ii)), by striking ``section 401(b)(2)(A)'' and
inserting ``section 401(b)(1)'';
(6) in section 485E(b)(1)(A) (20 U.S.C. 1092f(b)(1)(A)), by
striking ``section 401(b)(2)(A)'' and inserting ``section
401(b)(1)''; and
(7) in section 894(f)(2)(C)(ii)(I) (20 U.S.C.
1161y(f)(2)(C)(ii)(I)), by striking ``section 401(b)(2)(A)''
and inserting ``section 401(b)(1)''.
SEC. 14. EFFECTIVE DATE.
Except as otherwise provided, this Act, and the amendments made by
this Act, shall take effect beginning on July 1, 2018, and shall apply
to grant and award determinations made under title IV of the Higher
Education Act of 1965 (20 U.S.C. 1001 et seq.) beginning with the 2018-
2019 award year.
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