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[DOCID: f:h589ih.txt]






107th CONGRESS
  1st Session
                                H. R. 589

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 13, 2001

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

_______________________________________________________________________

                                 A BILL


 
       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.''.
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