PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the House Committee on Education and Workforce.
Congressional Research Service
Version 00 · Introduced in House · Oct 1, 2026
America's College Promise Act of 2026
This bill provides funding and establishes grant programs to expand access to higher education, including by providing free community college to students.
Specifically, the bill establishes a program to waive resident tuition and fees for community college students. The Department of Education (ED) must award grants to states and tribal colleges and universities to pay the federal share of the program.
Showing the opening paragraphs of the official summary.
As a condition of receiving such a grant, a state must (1) submit a plan to align the requirements for receiving a regular high school diploma with the requirements for entering credit-bearing coursework at community colleges; and (2) submit a plan to improve transfer pathways between institutions of higher education (IHEs), including by ensuring that associate degrees awarded by community colleges are fully transferable to four-year IHEs.
Next, the bill directs ED to award grants to states and tribal colleges and universities for implementing evidence-based institutional reforms and innovative practices to improve student outcomes.
In addition, ED must award grants to participating historically Black colleges and universities, tribal colleges and universities, and minority-serving institutions to waive or significantly reduce the first 60 credits of tuition and fees for low-income students.
People & committees
Rep. Grijalva, Adelita S. [D-AZ-7] · D–AZ
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Referred to the House Committee on Education and Workforce.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
Source last updated: Oct 14, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2026-10-01 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
This proposal would fund participating states and eligible Tribal Colleges and Universities to make community college tuition and fees free for qualifying students. It would also fund efforts to help students stay in college and finish, and reduce tuition for qualifying low-income students at participating four-year historically Black, tribal, and minority-serving institutions. Participation and student eligibility would carry conditions; the four-year program would not necessarily eliminate tuition. These are proposed changes, not evidence of enacted benefits.
Ensure that the total amount of tuition and fees charged to an eligible student in the State or the eligible Tribal College or University shall be $0.
how the eligible entity will use the requested funds to implement promising and evidence-based institutional reforms and innovative practices to improve student outcomes
Grants to historically Black Colleges and Universities, Tribal Colleges and Universities, and Minority-Serving Institutions
Funds awarded under this subpart to a participating eligible institution shall be used to waive or significantly reduce tuition and fees for eligible students by an amount not to exceed the annual per-student rebate amount.
(1) in a public or nonprofit 4-year institution that has a student body of which not less than 35 percent are low-income students;
(B) is a low-income student;
2026-10-01: Introduced in House
The bill would be called the America’s College Promise Act of 2026. It would add a federal grant program for tuition-free community college to the Higher Education Act and would itself appropriate whatever sums are necessary for fiscal year 2027 and every following fiscal year, without a stated dollar ceiling.
This Act may be cited as the America’s College Promise Act of 2026.
Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) is amended by adding at the end the following:
the Secretary shall award grants to eligible States and eligible Tribal Colleges and Universities to pay the Federal share of expenditures needed to carry out the activities and services described in section 499E.
There are authorized to be appropriated, and there are appropriated to carry out this subpart (in addition to any other amounts appropriated to carry out this subpart and out of any money in the Treasury not otherwise appropriated), such sums as may be necessary for fiscal year 2027 and each succeeding fiscal year.
Community college eligibility would require undergraduate enrollment at least half-time in an eligible program. Where resident tuition rates apply, students would have to qualify for those rates or qualify except for their immigration status. The definition excludes dual-enrollment and early-college-high-school students and requires U.S. citizens to file the Free Application for Federal Student Aid. Its duration condition says a student must not have already enrolled for more than six semesters, or the equivalent, with tuition and fees set to zero under this program.
(A) is enrolled as an undergraduate student in an eligible program (as defined in section 481(b)) at a community college on not less than a half-time basis; (B) in the case of a student who is enrolled in a community college that charges different tuition rates on the basis of in-State or in-district residency, either— (i) qualifies for in-State or in-district resident community college tuition; or (ii) would qualify for such in-State or in-district resident tuition at such community college, but for the immigration status of such student; and (C) has not been enrolled (whether full-time or less than full-time) for more than 6 semesters (or the equivalent) for which community college tuition and fees of the student were set to $0 pursuant to section 499D(a); (D) is not enrolled in a dual or concurrent enrollment program or early college high school; and (E) in the case of a student who is a United States citizen, has filed a Free Application for Federal Student Aid described in section 483 for the applicable award year for which the student is enrolled.
Participating states and tribal colleges would have to charge eligible students zero tuition and fees without applying the students’ other financial assistance to those charges. They could not impose additional student eligibility requirements or deny program benefits because of citizenship or immigration status.
(1) Ensure that the total amount of tuition and fees charged to an eligible student in the State or the eligible Tribal College or University shall be $0. (2) For each year of the grant no amount of financial assistance for which an eligible student qualifies may be applied to such tuition or fees.
A State or eligible Tribal College or University that receives a grant under this subpart may not impose additional eligibility requirements on eligible students other than the requirements under this subpart.
No individual shall be determined to be ineligible to receive benefits provided under this subpart (including tuition and fees set to $0 and other aid provided under this subpart) on the basis of citizenship, alienage, or immigration status.
Covered community colleges would include public institutions and public branch campuses where associate degrees are the highest or predominant degree, plus eligible tribal colleges. Locally operated community colleges would count as state-operated colleges. In a state without a qualifying public institution or branch, the Secretary could designate a qualifying academic unit within a public four-year institution, but that unit must have existed on July 1, 2021.
The term community college means— (A) a degree-granting public institution of higher education at which— (i) the highest degree awarded is an associate degree; or (ii) an associate degree is the predominant degree awarded; (B) an eligible Tribal College or University; (C) a degree-granting branch campus of a 4-year public institution of higher education if, at such branch campus— (i) the highest degree awarded is an associate degree; or (ii) an associate degree is the predominant degree awarded; or (D) at the designation of the Secretary, in the case of a State that does not operate or control any institution that meets a definition under subparagraph (A) or (C), a college or similarly defined and structured academic entity— (i) that was in existence on July 1, 2021; (ii) within a 4-year public institution of higher education; and (iii) at which— (I) the highest degree awarded is an associate degree; or (II) an associate degree is the predominant degree awarded.
the term community college operated or controlled by a State shall include a community college operated or controlled by a local government within such State.
Federal community college grants to states would use a per-student formula based initially on the latest available national average resident community college tuition and fees. The federal percentage would fall from 100% in award year 2027–2028 to 95%, 90%, and 85% in the next three years, then 80% from 2031–2032 onward. Subsequent annual formula increases would be limited to the smaller of estimated consumer-price inflation or 3%. These percentages apply to the formula, not necessarily each college’s actual charges.
a per-student amount that is equal to the applicable percent described in subparagraph (B) of— (i) for the 2027–2028 award year, the average unweighted resident community college tuition and fees per student in all States for the most recent year for which data are available; and (ii) for each subsequent award year, the amount determined under this paragraph for the preceding award year, increased by the lesser of— (I) a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary) since the date of such determination; or (II) 3 percent.
The applicable percent for a State receiving a grant under this subpart shall be— (i) for the 2027–2028 award year, 100 percent; (ii) for the 2028–2029 award year, 95 percent; (iii) for the 2029–2030 award year, 90 percent; (iv) for the 2030–2031 award year, 85 percent; and (v) for the 2031–2032 award year and each subsequent award year, 80 percent.
States’ required contributions would rise from 0% in 2027–2028 to 5%, 10%, and 15%, then 20% from 2031–2032 onward, using the specified 2027–2028 tuition-and-fee base. States would owe their contribution even if federal funds alone covered free tuition. They could not count in-kind contributions or double-count money used to satisfy existing-support requirements. Certain state student aid and local funds could count if colleges would avoid a net reduction in total revenue per student.
the State share of a grant under this subpart for each fiscal year shall be the amount needed to pay the applicable percent described in subparagraph (B) of the average unweighted resident community college tuition and fees per student in the 2027–2028 award year for all eligible students in the State for such award year.
(i) for the 2027–2028 award year, 0 percent; (ii) for the 2028–2029 award year, 5 percent; (iii) for the 2029–2030 award year, 10 percent; (iv) for the 2030–2031 award year, 15 percent; and (v) for the 2031–2032 award year and each subsequent award year, 20 percent.
The State shall provide the State share even if the State is able to set tuition and fees charged to eligible students attending community colleges operated or controlled by the State to $0 as required by section 499D without such State share.
No funds that count toward the maintenance of effort requirement under section 499D(c) may also count toward the State share under this subsection.
In the case of a State that demonstrates to the satisfaction of the Secretary that community colleges operated or controlled by such State will not experience a net reduction in total per-student revenue (including revenue derived from tuition and fees) as compared to the preceding State fiscal year in such State, a State may include, as part of the State share— (A) any financial aid that is provided from State funds to eligible students for such students’ cost of attendance that is not awarded predominantly on the basis of merit; and (B) any funds provided to community colleges by local governments in such State for the purpose of carrying out this subpart
A State shall not include in-kind contributions for purposes of the State share described in paragraph (1).
Eligible tribal colleges would receive the greater of the full per-student formula amount or their 2027–2028 cost of eliminating eligible students’ tuition and fees, adjusted for inflation and enrollment. State-only contribution, education-alignment, transfer, and existing-support requirements would not apply to them. The bill would preserve Bureau of Indian Education funding availability and uses.
The amount of the Federal share for an eligible Tribal College or University receiving a grant under this subpart shall be the greater of— (A) 100 percent of the per-student amount determined in accordance with clause (i) or (ii) of paragraph (1)(A), as applicable, with respect to eligible students enrolled in such eligible Tribal College or University (based on full-time equivalent enrollment); or (B) the amount that is 100 percent of the total amount needed to set tuition and fees to $0 for all eligible students enrolled in such eligible Tribal College or University for the 2027–2028 award year, increased by the percentage increase in the Consumer Price Index (as determined by the Secretary) between July 1, 2027, and the applicable award year, and adjusted to reflect the enrollment in such eligible Tribal College or University for such applicable award year.
The Secretary may not apply any requirements applicable only to States under this subpart to an eligible Tribal College or University, including the requirements under subsection (b) and subsection (b) and (c) of section 499D.
Nothing in this subpart shall be construed to impact the availability of funds from, or uses of funds provided by, the Bureau of Indian Education for Tribal Colleges and Universities.
The Secretary would have to reduce or waive the community college contribution for specified territories and areas if it caused substantial hardship, and proportionately increase the federal percentage. This rule would cover Puerto Rico, the District of Columbia, Guam, American Samoa, the U.S. Virgin Islands, the Northern Mariana Islands, and the Freely Associated States.
If the Secretary determines that requiring an outlying area or territory to provide a State share in accordance with this subsection would represent a substantial hardship for the outlying area or territory, the Secretary shall reduce or waive the State share for such area or territory. If the Secretary so reduces or waives the amount of the State share of an outlying area or territory, the Secretary shall increase the applicable percent used to calculate the Federal share for such area or territory, in proportion to the reduction in the applicable percent used to calculate such State share.
the term outlying area or territory means the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, the United States Virgin Islands, the Commonwealth of the Northern Mariana Islands, and the Freely Associated States.
Community college grants would account for part-time enrollment and associated tuition charges. First-year estimates would use the preceding school year’s eligible enrollment. Within 180 days after a grant was received, the Secretary would check whether actual eligible enrollment exceeded the estimate and, if so, make a supplementary payment.
the Secretary shall develop and implement a formula for accurately estimating the number of eligible students and for making adjustments based on the number of eligible students enrolled in the community colleges operated or controlled by a State or in an eligible Tribal College or University on less than a full-time basis and the associated tuition and fees charged to such students in proportion to the degree to which each such student is not attending on a full-time basis.
For the first year for which grants are awarded under this subpart, the number of eligible students in a State or eligible Tribal College or University shall be considered to be equal to the number of eligible students who were in the State or eligible Tribal College or University for the preceding school year.
Not later than 180 days after the date on which a State or eligible Tribal College or University receives a grant under this subpart, the Secretary shall— (1) in consultation with the State or eligible Tribal College or University concerned, determine whether the actual number of eligible students in the State or eligible Tribal College or University for the year covered by the grant is greater than the estimated number of such students that was used to determine the amount of the grant; and (2) in the case of a determination under paragraph (1) that the actual number of eligible students in the State or eligible Tribal College or University is higher than such estimate, issue a supplementary grant payment
Applicants would have to describe college reforms intended to improve student outcomes and how credential programs would meet quality standards. They would also have to help eligible students access income-tested benefits for costs other than tuition and fees, notify students annually of remaining eligibility, and explain how prospective students could attend tuition-free.
a description of the promising and evidence-based institutional reforms and innovative practices to improve student outcomes, including transfer and completion rates, that have been or will be adopted by each such community college
a description of how the State or eligible Tribal College or University will ensure that programs leading to a recognized postsecondary credential meet the quality criteria established by the State under section 122(b)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152(b)(1)) or other quality criteria determined appropriate by the State or eligible Tribal College or University
an assurance that the State or eligible Tribal College or University will assist eligible students in obtaining information about and accessing means-tested Federal benefit programs and similar, State, tribal, and local benefit programs that can provide financial assistance for any component of the student’s cost of attendance, as defined under section 472, other than tuition and fees
an assurance that, for each year of the grant, the State or eligible Tribal College or University will notify each eligible student of the student’s remaining eligibility for assistance under this subpart
an assurance that the State or eligible Tribal College or University will clearly communicate to prospective students, including students with prior college experience who have not completed a postsecondary degree or credential, their families, and the general public— (A) plans to implement the program funded under this subpart; and (B) how eligible students can attend a community college operated or controlled by the State or eligible Tribal College or University without paying tuition and fees.
Participating states would have to align public high-school diploma requirements with entry requirements for community college courses that earn credit. They would submit a plan and certify alignment within three years after their first grant. A state missing that deadline would have to explain the delay and submit a plan to certify by year five.
The State shall— (i) submit a plan to align the requirements for receiving a regular high school diploma from public schools in the State with the requirements for entering credit-bearing coursework at community colleges in such State; and (ii) not later than 3 years after the date on which the State first receives a grant under this subpart, certify to the Secretary that such alignment has been achieved.
If a State does not provide the certification required under subparagraph (A) by the date specified in such subparagraph, the State shall submit to the Secretary, at such time and in such manner as the Secretary may require— (i) a written explanation for the delay in making the certification; and (ii) a plan that will enable the State to make the certification by not later than 5 years after the date on which the State first received a grant under this subpart.
States would also need faculty-developed transfer plans. These would make community college associate degrees count as the first two years of related public bachelor’s programs, improve transfer of individual courses, expand ways to award community college credentials using later coursework, and provide transfer counseling. States would certify implementation within three years; a missed deadline would require an explanation and a plan to certify by year five.
submit a plan, developed in collaboration with faculty from institutions of higher education in the State, to improve transfer pathways between institutions of higher education in the State
(I) ensuring that associate degrees awarded by community colleges in the State are fully transferable to, and credited as, the first 2 years of related baccalaureate programs at public institutions of higher education in such State; (II) increasing the transferability of individual courses within the certificate or associate programs offered by community colleges in the State to related baccalaureate programs offered by institutions of higher education in such State to maximize the transferability of credits for students who transfer before completing an associate degree; (III) expanding the use of reverse transfer policies that allow institutions to— (aa) implement the process of retroactively granting a certificate or associate degree to students who had not completed the requirements for such certificate or degree before they transferred; and (bb) allow academic credits for coursework completed at a 4-year institution to be applied to a previously attended community college for the purpose of obtaining an associate degree or a certificate; and (IV) ensuring that students attending community colleges in the State have access to comprehensive counseling regarding the process for transferring to a 4-year institution of higher education
not later than 3 years after the date on which the State first receives a grant under this subpart, certify to the Secretary that the State is carrying out the plan submitted in accordance with clause (i) and is meeting the requirements of subclauses (I) through (IV) of such clause.
If a State does not provide the certification required under subparagraph (A) by the date specified in such subparagraph, the State shall submit to the Secretary, at such time and in such manner as the Secretary may require— (i) a written explanation for the delay in making the certification; and (ii) a plan that will enable the State to make the certification by not later than 5 years after the date on which the State first received a grant under this subpart.
To receive their full community college grants, states generally would have to maintain three kinds of education support at least at their preceding three-year averages: higher-education support per full-time-equivalent student, operating support for public four-year institutions, and need-based financial aid. Full-time-equivalent enrollment combines part-time enrollment into comparable full-time units. The higher-education support calculation would exclude student-paid charges, predominantly merit-based aid, research, and several other specified categories.
A State receiving a grant under this subpart shall be entitled to receive its full allotment of funds under this subpart for a fiscal year only if, for each year of the grant, the State provides— (1) State fiscal support for higher education per full-time equivalent student at a level equal to or exceeding the average amount of State fiscal support for higher education per full-time equivalent student provided for the 3 consecutive preceding fiscal years; (2) financial support for operating expenses (excluding capital expenses and research and development costs) for public 4-year institutions of higher education at a level equal to or exceeding the average amount provided for the 3 consecutive preceding State fiscal years; and (3) financial support for need-based financial aid at a level equal to or exceeding the average amount provided for the 3 consecutive preceding State fiscal years.
(v) tuition, fees, or other educational charges paid directly by a student to a public institution of higher education or to the State;
(II) financial aid to students awarded predominantly on the basis of merit, including programs awarded on the basis of predicted or actual academic performance or assessment; (III) research and development; (IV) hospitals, athletics, or other auxiliary enterprises
Community college grant money would first cover zero tuition and fees. After demonstrating that this demand was met, recipients could use remaining funds for need-based aid, student-support reforms, education quality, academic staffing, training capacity, college readiness, dual enrollment, or unmet financial need at public four-year institutions. None of this grant could pay grant-administration costs, and it would have to add to other funding rather than replace it.
Except as provided in subsection (b), a State or eligible Tribal College or University shall use a grant under this subpart only to ensure that the total amount of tuition and fees charged to an eligible student in the State or the eligible Tribal College or University shall be $0.
If a State or an eligible Tribal College or University demonstrates to the Secretary that the State or eligible Tribal College or University has grant funds remaining after meeting the demand for activities described in subsection (a), the State or eligible Tribal College or University may use those funds to carry out 1 or more of the following: (1) Providing need-based financial aid to students that may be used by such students to pay any component of cost of attendance, as defined under section 472. (2) Improving student outcomes by implementing evidence-based institutional reforms or practices. (3) Enhancing the quality and equity of public higher education to improve student outcomes, including transfer and completion rates and labor market outcomes. (4) Investing in and diversifying the academic workforce. (5) Expanding the scope and capacity of high-quality academic and occupational skills training programs at community colleges, which may include collaboration with one or more industry or sector partnerships (as defined in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3201)). (6) Improving postsecondary education readiness in the State, including through outreach and early intervention. (7) Expanding access to dual or concurrent enrollment programs, such as early college high school programs. (8) Reducing unmet need at public 4-year institutions of higher education.
A State or Tribal College or University that receives a grant under this subpart may not use any funds provided under this subpart for administrative purposes relating to such grant.
Funds made available under this subpart shall be used to supplement, and not supplant, other Federal, State, tribal, and local funds that would otherwise be expended to carry out activities described in this section.
States would report annually on community college grant spending, compliance, and transfer, graduation, and credential results broken down by race, income, and age. The Secretary would report annually to the relevant congressional committees and provide technical assistance. Continued funding would depend on available spending authority and compliance; the Secretary could stop federal funding for grant violations or inadequate progress on promised reforms.
A State receiving a grant under this subpart shall submit to the Secretary an annual report that shall include— (A) the uses of grant funds under this subpart; (B) the progress made in fulfilling the requirements of the grant; (C) the rates of transfer, graduation, and attainment of recognized postsecondary credentials at participating community colleges, disaggregated by race, income, and age; and (D) any other information that the Secretary may require.
The Secretary shall, on an annual basis— (A) compile and analyze the information described in paragraph (1); and (B) prepare and submit to the authorizing committees a report
The Secretary shall provide technical assistance to States and eligible Tribal Colleges and Universities concerning best practices regarding the promising and evidence-based institutional reforms and innovative practices to improve student outcomes and shall disseminate such best practices among such entities.
may continue to receive funding under this subpart for future fiscal years conditioned on the availability of budget authority and on meeting the requirements of the grant, as determined by the Secretary.
The Secretary may discontinue funding of the Federal share of a grant under this subpart if the State or eligible Tribal College or University has violated the terms of the grant or is not making adequate progress in implementing the reforms described in the application submitted under section 499C.
The bill would provide five levels of relief during higher unemployment, using state or national conditions. Tier I would cover a qualifying rise of at least 0.5 percentage points when no higher tier applied. Tiers II through V would start at three-month average unemployment rates of 6.5%, 7.5%, 8.5%, and 9.5%, respectively, with the highest applicable tier controlling.
(1) Tier I A State shall be eligible for relief under tier I for a fiscal year in which— (A) (i) the State was in an elevated unemployment period at any point in the fiscal year; or (ii) the Nation as a whole was in an elevated unemployment period at any point in the fiscal year; and (B) the State is not eligible for relief under any other tier.
(2) Tier II A State shall be eligible for relief under tier II for a fiscal year in which— (A) (i) the State average unemployment rate was equal to or greater than 6.5 percent but less than 7.5 percent at any point in the fiscal year; or (ii) the national average unemployment rate is equal to or greater than 6.5 percent but less than 7.5 percent at any point in the fiscal year; and (B) the State is not eligible for relief under tier III, IV, or V. (3) Tier III A State shall be eligible for relief under tier III for a fiscal year in which— (A) (i) the State average unemployment rate was equal to or greater than 7.5 percent but less than 8.5 percent at any point in the fiscal year; or (ii) the national average unemployment rate is equal to or greater than 7.5 percent but less than 8.5 percent at any point in the fiscal year; and (B) the State is not eligible for relief under tier IV or V. (4) Tier IV A State shall be eligible for relief under tier IV for a fiscal year in which— (A) (i) the State average unemployment rate was equal to or greater than 8.5 percent but less than 9.5 percent at any point in the fiscal year; or (ii) the national average unemployment rate is equal to or greater than 8.5 percent but less than 9.5 percent at any point in the fiscal year; and (B) the State is not eligible for relief under tier V. (5) Tier V A State shall be eligible for relief under tier V for a fiscal year in which— (A) the State average unemployment rate was equal to or greater than 9.5 percent at any point in the fiscal year; or (B) the national average unemployment rate is equal to or greater than 9.5 percent at any point in the fiscal year.
The term elevated unemployment period— (A) when used with respect to the Nation as a whole, means a consecutive, 3-month period in a fiscal year in which the national average unemployment rate is not less than 0.5 percentage points above the lowest national average unemployment rate for the 12-month period preceding such 3-month period; and (B) when used with respect to a State, means a consecutive, 3-month period in a fiscal year in which the State average unemployment rate is not less than 0.5 percentage points above the lowest State average unemployment rate for the 12-month period preceding such 3-month period.
(3) National average unemployment rate The term national average unemployment rate means the average (seasonally adjusted) rate of total unemployment in all States for a consecutive, 3-month period in a fiscal year, based on data from the Bureau of Labor Statistics of the Department of Labor. (4) State average unemployment rate The term State average unemployment rate means the average (seasonally adjusted) rate of total unemployment in a State for a consecutive, 3-month period in a fiscal year, based on data from the Bureau of Labor Statistics of the Department of Labor.
Qualifying states could request temporary waivers of the requirements to maintain education spending, provided they did not cut the protected categories disproportionately. Tier I relief would cover the following fiscal year; higher-tier relief could cover the determination year, the next year, or both. From 2031–2032 onward, qualifying matching relief would change the federal/state percentages from 80/20 to 85/15, 90/10, 95/5, or 100/0 for Tiers II through V. Earlier scheduled percentages would also be adjusted where specified. States receiving relief would have to keep paying public-college employees and contractors to the greatest extent practicable.
a State that meets the qualifying spending requirements may request a waiver of the requirements under such subsection (c). The Secretary shall waive the requirements of such subsection (c) for a State that makes a qualifying request under this subsection
(1) Tier I With respect to each State eligible for relief under tier I, such requirements shall be waived for the fiscal year succeeding the fiscal year in which the determination of the State’s eligibility for such relief is made. (2) Tiers II through V With respect to each State eligible for relief under tier II, III, IV, or V, such requirements shall be waived, in accordance with subsection (d), for— (A) the fiscal year in which the determination of the State’s eligibility for such relief is made; (B) the fiscal year succeeding the fiscal year described in subparagraph (A); or (C) both such fiscal years.
The term qualifying spending requirements means the requirements that a State not disproportionately decrease spending for any of the categories described in paragraphs (1) through (3) of section 499D(c) relative to such State’s overall, average decrease in spending for the 3 consecutive preceding fiscal years.
a State that is eligible for relief under tier II, III, IV, or V may request relief with respect to the requirements of such subsection (b).
(A) Tier II With respect to a State that is eligible for relief under tier II, the Secretary shall— (i) apply section 499B(a)(1)(B)(v) by substituting 85 percent for 80 percent; and (ii) apply section 499B(b)(1)(B)(v) by substituting 15 percent for 20 percent. (B) Tier III With respect to a State that is eligible for relief under tier III, the Secretary shall— (i) apply section 499B(a)(1)(B)(v) by substituting 90 percent for 80 percent; (ii) apply section 499B(b)(1)(B)(v) by substituting 10 percent for 20 percent; (iii) apply section 499B(a)(1)(B)(iv) by substituting 90 percent for 85 percent; and (iv) apply section 499B(b)(1)(B)(iv) by substituting 10 percent for 15 percent.
(C) Tier IV With respect to a State that is eligible for relief under tier IV, the Secretary shall— (i) apply section 499B(a)(1)(B)(v) by substituting 95 percent’ for 80 percent; (ii) apply section 499B(b)(1)(B)(v) by substituting 5 percent for 20 percent; (iii) apply section 499B(a)(1)(B)(iv) by substituting 95 percent for 85 percent; (iv) apply section 499B(b)(1)(B)(iv) by substituting 5 percent for 15 percent; (v) apply section 499B(a)(1)(B)(iii) by substituting 95 percent for 90 percent; and (vi) apply section 499B(b)(1)(B)(iii) by substituting 5 percent for 10 percent.
(D) Tier V With respect to a State that is eligible for relief under tier V, the Secretary shall— (i) apply section 499B(a)(1)(B)(v) by substituting 100 percent’ for 80 percent; (ii) apply section 499B(b)(1)(B)(v) by substituting 0 percent for 20 percent; (iii) apply section 499B(a)(1)(B)(iv) by substituting 100 percent for ’85 percent’; (iv) apply section 499B(b)(1)(B)(iv) by substituting 0 percent for 15 percent; (v) apply section 499B(a)(1)(B)(iii) by substituting 100 percent for 90 percent; (vi) apply section 499B(b)(1)(B)(iii) by substituting 0 percent for 10 percent; (vii) apply section 499B(a)(1)(B)(ii) by substituting 100 percent for 95 percent; and (viii) apply section 499B(b)(1)(B)(ii) by substituting 0 percent for 5 percent.
for the 2031–2032 award year and each subsequent award year, 80 percent.
A State that receives relief under subsection (a) or (b) shall, to the greatest extent practicable, continue to pay its employees of, and contractors with, public institutions of higher education in the State during the period in which the State is receiving such relief.
The Student Success Fund would be available to states and tribal colleges already receiving tuition-free community college grants. Priority would go to applicants proposing to devote a significant share of funds to improving enrollment, persistence, transfers, completion, or employment outcomes for underserved students, including low-income students, students of color, students with disabilities, first-generation students, and student parents.
the Secretary shall carry out a grant program (to be known as the Student Success Fund)
the term eligible entity means a State or Tribal College or University that is a recipient of a grant under subpart 1.
the Secretary shall give priority to eligible entities that propose to use a significant share of grant funds to improve enrollment, retention, transfer, or completion rates or labor market outcomes among students of color, low-income students, students with disabilities, students in need of remediation, first generation college students, student parents, and other underserved student populations.
Student Success Fund allocations would consider eligible enrollment, the share of students receiving federal Pell Grants, and a funding-to-net-price ratio designed to reward low student prices alongside sustained public support. The Secretary would have to publish the formula and estimated allocations no later than the application notice.
The Federal share of a grant under this subpart shall be based on a formula, developed by the Secretary, that accounts for— (A) the State or Tribal College or University relative share of eligible students, as determined in accordance with section 499B(c); (B) the State or Tribal College or University relative share of Federal Pell Grant recipients; and (C) the ratio between a State or Tribal College or University funding per full-time equivalent (FTE) student at public institutions of higher education and the average net price at public 4-year institutions of higher education, in such a way as to reward States and Indian tribes that keep net prices for students low while maintaining their fiscal support for higher education.
publish such formula and estimated allotments not later than the date of the notice soliciting applications for participation in the program under this subpart.
Student Success Fund recipients generally would supply nonfederal cash or in-kind contributions equal to 25% of their federal grant in participation years one through four, 50% in years five and six, 75% in years seven and eight, and 100% thereafter. These are percentages of the federal grant, not total program costs. The Secretary could modify or waive this requirement for tribal colleges. Returned or unrequested grant amounts would be redistributed for the following fiscal year.
an eligible entity participating in the program under this subpart shall provide, from non-Federal sources, in cash or in-kind— (A) in each of the first, second, third, and fourth years of participation in the program, an amount equal to 25 percent of the amount such entity received under subsection (a) with respect to such year; (B) in each of the fifth and sixth years of participation in the program, an amount equal to 50 percent of the amount such entity received under subsection (a) with respect to such year; (C) in each of the seventh and eighth years of participation in the program, an amount equal to 75 percent of the amount such entity received under subsection (a) with respect to such year; and (D) in the ninth year and each subsequent year thereafter of participation in the program, an amount equal to 100 percent of the amount such entity received under subsection (a) with respect to such year.
The Secretary may modify or waive the matching fund requirements under paragraph (1) in the case of an eligible entity that is a Tribal College or University.
If an eligible entity returns to the Secretary any portion of the grant amount provided to such eligible entity under this subpart for any fiscal year, or requests a grant amount that is less than the Federal share determined for such entity in accordance with subsection (a), the Secretary shall reallot such excess amount for the succeeding fiscal year
Student Success Fund applications would describe intended spending, annual implementation milestones, matching contributions, and anticipated student outcomes. States would also analyze institutional funding and student demographics and explain how they would prioritize lower-funded institutions serving disproportionate shares of specified underserved students. The Secretary would approve plans or require revisions within 180 days, and approved and revised plans would be public.
(A) the amount of funds requested by the eligible entity under this subpart and the intended use of such funds;
annual implementation benchmarks that the entity will use to track progress in implementing such reforms and practices
(D) how the eligible entity will meet its matching fund requirements under section 499J(b); (E) if the eligible entity is a State, how such eligible entity will prioritize spending on the public institutions of higher education specified in paragraph (2)(B); and (F) the improvements the eligible entity anticipates in student outcomes, including improvements in transfer rates or completion rates, or both;
(A) with respect to each public institution of higher education of the eligible entity— (i) the total per-student funding; (ii) the amount of per-student funding from State-appropriated funds; (iii) the student demographics (including data on race, income, disability status, and remediation); and (iv) transfer and completion rates, including such rates among low-income students, students of color, students with disabilities, and students in need of remediation; and (B) whether, of the public institutions of higher education of the eligible entity, the public institutions of higher education that received less funding on a per-student basis described in clause (i) or (ii), or both, of subparagraph (A), are serving disproportionately high shares of low-income students, students of color, students with disabilities, or students in need of remediation.
Not later than 180 days after receiving a plan under subsection (a), the Secretary shall— (A) approve the plan; or (B) require revisions to such plan.
The Secretary shall make each plan approved under subsection (b)(1)(A) and each plan revised under subsection (b)(2) available to the public on the website of the Department.
Student Success Fund recipients would report progress in their third participation year and every two years afterward, with spending plans for the next two years. The Secretary would have 180 days to approve those plans or require revisions. Missing implementation milestones would require a written explanation and a plan to meet them within one year after that explanation. Approved, revised, and corrective plans would be public.
For the third year in which an eligible entity participates in the program under this subpart, and every 2 years thereafter, the eligible entity shall submit a report to the Secretary
(A) the progress in meeting the annual implementation benchmarks included in the application of such eligible entity under section 499K(a)(1)(B); (B) the progress in improving the student outcomes identified by the entity under section 499K(a)(1)(F); and (C) with respect to the 2 years after such report is submitted— (i) a plan for the use of funds under this subpart; and (ii) the amount of funds requested by the eligible entity under this subpart.
Not later than 180 days after receiving a plan under paragraph (1)(C)(i), the Secretary shall— (A) approve the plan; or (B) require revisions to such plan.
If an eligible entity does not meet the annual implementation benchmarks included in the application of such eligible entity under section 499K(a)(1)(B), as required to be reported under subsection (a)(1)(A), such eligible entity shall submit to the Secretary, at such time and in such manner as the Secretary may require— (1) a written explanation for the delay in meeting such requirements; and (2) a plan that will enable such eligible entity to meet such requirements not later than 1 year after the date on which the eligible entity submitted the written explanation under paragraph (1).
The Secretary shall make each plan approved under subsection (a)(2)(A), each plan revised under subsection (a)(3), and each plan submitted under subsection (b)(2) available to the public on the website of the Department.
Student Success Fund grants generally could support only the approved or revised plan, with up to 5% allowed for administration. They could not pay recruitment contractors through revenue-sharing agreements or fund endowments, athletics, sectarian instruction, or religious worship. Grants would supplement other funding rather than replace it.
Except as provided in subsection (b), an eligible entity shall use a grant under this subpart only to carry out the plan approved or revised for such year under section 499K.
An eligible entity that receives a grant under this subpart may use not more than 5 percent of such grant for administrative purposes relating to the grant under this subpart.
No funds received under this section shall be used to— (1) pay contractors for the provision of pre-enrollment recruitment activities through a revenue sharing agreement; or (2) fund endowments, athletics, sectarian instruction, or religious worship.
Grant funds awarded under this subpart shall be used to supplement, and not supplant, other Federal, State, tribal, and local funds that would otherwise be expended to carry out activities assisted under this subpart.
The bill would itself appropriate $1 billion annually for the Student Success Fund starting in fiscal year 2027, with no stated final year. That money would remain available until spent.
There are authorized to be appropriated, and there are appropriated to carry out this subpart (in addition to any other amounts appropriated to carry out this subpart and out of any money in the Treasury not otherwise appropriated), $1,000,000,000 for fiscal year 2027 and each succeeding fiscal year.
Funds appropriated under subsection (a) shall remain available to the Secretary until expended.
The four-year tuition-reduction program would cover participating historically Black and tribal colleges, plus the specified Alaska Native-serving, Asian American and Native American Pacific Islander-serving, Hispanic-serving, Native American-serving nontribal, Native Hawaiian-serving, and predominantly Black institutions. They would have to be public or nonprofit four-year institutions with at least 35% low-income students. Its stated purposes include encouraging bachelor’s-degree completion and community college transfers; these are goals, not demonstrated results.
the Secretary shall award grants to participating historically Black colleges or universities that meet the requirements of section 499S(a)
the Secretary shall award grants to participating Tribal Colleges or Universities that meet the requirements of section 499S(a)
the Secretary shall award grants to participating Alaska Native-serving institutions, Asian American and Native American Pacific Islander-serving institutions, Hispanic-serving institutions, Native American-serving nontribal institutions, Native Hawaiian-serving institutions, and Predominantly Black institutions that meet the requirements of section 499S(a)
(1) in a public or nonprofit 4-year institution that has a student body of which not less than 35 percent are low-income students;
(1) encourage students to enroll and successfully complete a bachelor’s degree at such colleges and universities; (2) provide incentives to community college students to transfer to such colleges and universities through strong transfer pathways to complete a bachelor’s degree program
Participating four-year institutions would commit to student-success reforms and set performance goals. Institutions receiving grants for transfer students would need a formal statewide credit-transfer agreement with community colleges. It would guarantee transfer of community college credits toward related requirements and acceptance of associate degrees as the first two years of related bachelor’s programs.
commits to maintaining or adopting and implementing promising and evidence-based institutional reforms and innovative practices to improve the completion rates and other student outcomes
(3) sets performance goals for improving student outcomes for the duration of the grant; and (4) if receiving a grant for transfer students, has a formal, statewide articulation agreement with community colleges in the State in which such institution operates that guarantees— (A) that a student who earns postsecondary credit at any community college in such State shall be able to fully transfer such credit toward meeting related degree or certificate requirements at such institution; and (B) that associate degrees awarded by community colleges in the State are fully transferable to, and credited as, the first 2 years of related baccalaureate programs at such institution.
Students in the four-year program would have to attend at least half-time and be low-income, regardless of age. Low-income eligibility would include both Pell Grant-eligible students and students who meet Pell financial criteria but cannot receive a Pell Grant. The definition also requires no more than 60 credits of enrollment at the participating institution under this program and no more than six semesters, or equivalent, of prior program benefits.
The term eligible student means a student, regardless of age, who— (A) is enrolled in an eligible program (as defined in section 481(b)) at a participating eligible institution, on at least a half-time basis; (B) is a low-income student; (C) has been enrolled at such participating eligible institution under this subpart for not more than 60 credits; and (D) has not been enrolled (whether full-time or less than full-time) for more than 6 semesters (or the equivalent) for which the student received a benefit under this subpart.
The term low-income student shall include— (A) any student eligible for a Federal Pell Grant under section 401; and (B) any student who meets the financial eligibility criteria for receiving a Federal Pell Grant under section 401, but who is ineligible to receive a Federal Pell Grant.
Four-year grants would initially use actual institutional tuition and fees multiplied by the preceding year’s eligible enrollment. The per-student amount would be capped at the national average annual tuition and fees at public four-year institutions, and its annual growth would be capped at 3%. First-year tuition increases would also be restricted by the institution’s previous five years of increases. Grants would be adjusted for less-than-full-time enrollment and associated charges.
For the first year that an eligible institution participates in the grant program under this subpart and subject to paragraph (3), such eligible institution shall receive a grant in an amount based on the product of— (A) the actual cost of tuition and fees at the eligible institution in such year (referred to in this subpart as the per-student rebate); and (B) the number of eligible students enrolled in the eligible institution for the preceding year.
in no case shall the amount of the per-student rebate for an eligible institution increase by more than 3 percent as compared to the amount of such rebate for the preceding year.
No eligible institution participating in the grant program under this subpart shall receive a per-student rebate amount for any year that is greater than the national average of annual tuition and fees at public 4-year institutions of higher education for such year, as determined by the Secretary.
During the first year of participation in the grant program under this subpart, no eligible institution may increase tuition and fees at a rate greater than any annual increase at the eligible institution in the previous 5 years.
The Secretary shall develop and implement a formula for making adjustments to grant amounts under this subpart based on the number of eligible students at each eligible institution enrolled less than full-time and the associated tuition and fees charged to such students in proportion to the degree to which each such student is not attending on a full-time basis.
Four-year institutions would use grants to waive or significantly reduce eligible students’ tuition and fees, up to the annual per-student grant amount. Funds could cover only the first 60 credits for which the student enrolled at the participating institution. The grants would supplement other funding rather than replace it.
Funds awarded under this subpart to a participating eligible institution shall be used to waive or significantly reduce tuition and fees for eligible students by an amount not to exceed the annual per-student rebate amount. Such funds under this subpart may only be used to waive or reduce tuition and fees for the first 60 credits for which an eligible student is enrolled in the participating eligible institution.
Funds made available under section 499U to carry out this subpart shall be used to supplement, and not supplant, other Federal, State, tribal, and local funds that would otherwise be expended to carry out activities under this subpart.
The bill would itself appropriate the following amounts for the four-year grant program: $98.10 million in fiscal 2027; $321.04 million in 2028; $1,912.01 million in 2029; $1,988.71 million in 2030; $2,068.96 million in 2031; $2,151.01 million in 2032; $2,184.90 million in 2033; $2,329.37 million in 2034; $2,423.91 million in 2035; and $2,521.99 million annually from 2036 onward.
For the purpose of carrying out this subpart there are authorized to be appropriated, and there are appropriated— (1) $98,100,000 for fiscal year 2027; (2) $321,040,000 for fiscal year 2028; (3) $1,912,010,000 for fiscal year 2029; (4) $1,988,710,000 for fiscal year 2030; (5) $2,068,960,000 for fiscal year 2031; (6) $2,151,010,000 for fiscal year 2032; (7) $2,184,900,000 for fiscal year 2033; (8) $2,329,370,000 for fiscal year 2034; (9) $2,423,910,000 for fiscal year 2035; and (10) $2,521,990,000 for fiscal year 2036 and each succeeding fiscal year.
Each year’s four-year program appropriation would remain available through the following two fiscal years. If funding fell short of calculated grants, the Secretary could reduce grants proportionately or take other steps to distribute the available money equitably.
Funds appropriated under subsection (a) for a fiscal year are to remain available to the Secretary through the two fiscal years following such fiscal year.
If the amount appropriated under subsection (a) for a fiscal year is not sufficient to award each institution participating in the grant programs under sections 499P, 499Q, and 499R a grant under this subpart equal to 100 percent of the grant amount determined under section 499S(b), the Secretary may ratably reduce the amount of each such grant or take other actions necessary to ensure an equitable distribution of such amount appropriated under subsection (a).
The supplied official-actions snapshot, updated October 14, 2026, records introduction in the House and referral to the House Committee on Education and Workforce on October 1, 2026. It does not establish what happened after that snapshot.
Source snapshot updated 2026-10-14T16:09:47Z. 2026-10-01: Referred to the House Committee on Education and Workforce. 2026-10-01: Introduced in House
A closer look
Reviewed version: Introduced in House · 2026-10-01. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or separate policy rider was identified in the complete supplied introduced text. Its funding and conditions concern the college-affordability and student-success programs it creates. This conclusion is limited to this version and does not establish the contents or attachment history of other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No earmark was identified in the complete supplied introduced text under the requested definition. The program appropriations and allocation rules do not by themselves establish congressionally directed awards outside competitive or formula allocation. This conclusion is limited to this version; absent disclosures and accompanying materials prevent a broader formal determination.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
Findings to examine
The supplied introduced text contains special financing, exemption, and eligibility provisions within its main policy. These classifications identify narrow treatment for scrutiny, without implying improper purpose or treating ordinary program beneficiaries as special favors.
Eligible Tribal Colleges and Universities would receive special community college financing: the greater of the full formula amount or the inflation- and enrollment-adjusted cost of eliminating tuition and fees. They would be exempt from state-only requirements. Tribal colleges could also receive a modified or waived Student Success Fund match. These are express financing and compliance exceptions within the education programs.
The amount of the Federal share for an eligible Tribal College or University receiving a grant under this subpart shall be the greater of— (A) 100 percent of the per-student amount determined in accordance with clause (i) or (ii) of paragraph (1)(A), as applicable, with respect to eligible students enrolled in such eligible Tribal College or University (based on full-time equivalent enrollment); or (B) the amount that is 100 percent of the total amount needed to set tuition and fees to $0 for all eligible students enrolled in such eligible Tribal College or University for the 2027–2028 award year, increased by the percentage increase in the Consumer Price Index (as determined by the Secretary) between July 1, 2027, and the applicable award year, and adjusted to reflect the enrollment in such eligible Tribal College or University for such applicable award year.
The Secretary may not apply any requirements applicable only to States under this subpart to an eligible Tribal College or University, including the requirements under subsection (b) and subsection (b) and (c) of section 499D.
The Secretary may modify or waive the matching fund requirements under paragraph (1) in the case of an eligible entity that is a Tribal College or University.
Puerto Rico, the District of Columbia, Guam, American Samoa, the U.S. Virgin Islands, the Northern Mariana Islands, and the Freely Associated States would qualify for a special hardship exception to the community college contribution requirement. A substantial-hardship determination would require a reduced or waived local share and a proportionately increased federal percentage.
If the Secretary determines that requiring an outlying area or territory to provide a State share in accordance with this subsection would represent a substantial hardship for the outlying area or territory, the Secretary shall reduce or waive the State share for such area or territory. If the Secretary so reduces or waives the amount of the State share of an outlying area or territory, the Secretary shall increase the applicable percent used to calculate the Federal share for such area or territory, in proportion to the reduction in the applicable percent used to calculate such State share.
the term outlying area or territory means the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, the United States Virgin Islands, the Commonwealth of the Northern Mariana Islands, and the Freely Associated States.
A narrow alternative eligibility route would allow the Secretary to designate certain academic units within public four-year institutions as community colleges. It applies only in states without a qualifying public institution or branch campus and only to units existing on July 1, 2021, where associate degrees are the highest or predominant degree. The text names no specific institution benefiting from this date-limited exception.
(D) at the designation of the Secretary, in the case of a State that does not operate or control any institution that meets a definition under subparagraph (A) or (C), a college or similarly defined and structured academic entity— (i) that was in existence on July 1, 2021; (ii) within a 4-year public institution of higher education; and (iii) at which— (I) the highest degree awarded is an associate degree; or (II) an associate degree is the predominant degree awarded.
Full text preserved for this analysis. Legislative record snapshot: Oct 14, 2026. How PlainBill uses AI