H.R. 5532

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5532 Introduced in House (IH)]

<DOC>

119th CONGRESS
1st Session
H. R. 5532

To direct the Secretary of Education to establish a program to 
facilitate the transition to tuition-free community college in certain 
States, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

September 19, 2025

Mr. Smith of Washington introduced the following bill; which was 
referred to the Committee on Education and Workforce, and in addition 
to the Committee on Ways and Means, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To direct the Secretary of Education to establish a program to 
facilitate the transition to tuition-free community college in certain 
States, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

TITLE I

SECTION 101. TUITION-FREE COMMUNITY COLLEGE GRANT AND SUPPORT PROGRAM.

(a) In General.--The Secretary shall establish a program to provide 
grants to each State that submits a complete application under 
subsection (b) to--
(1) facilitate tuition-free community college for eligible 
students;
(2) award subgrants to eligible institutions for the 
improvement of the capacity of institutions to provide 
supportive services; and
(3) award subgrants to eligible institutions for the 
provision of direct grants to student to address non-tuition 
costs to meet the growing demand from employers for workers 
with postsecondary credentials.
(b) Application.--To be eligible for a grant under this section, a 
State shall submit to the Secretary an application in such form, at 
such time, and containing such information as the Secretary determines 
appropriate, including a State plan describing the following:
(1) Interagency committee.--
(A) In general.--A plan to formalize an interagency 
committee within such State to--
(i) evaluate gaps and opportunities in the 
State workforce, higher education, childcare, 
and human services systems; and
(ii) maximize Federal and State resources 
to support pathway development that increases 
economic mobility and recognized postsecondary 
credential attainment.
(B) Membership.--An assurance that such committee 
shall consist of members from the following entities:
(i) State unemployment insurance agency.
(ii) Office of the State higher education 
executive officer and public college boards.
(iii) State community college system.
(iv) State departments of health and human 
services.
(v) State departments of economic 
development.
(vi) Workforce development agencies.
(vii) State or local housing authorities.
(viii) Students enrolled in community 
colleges in the State.
(ix) Other relevant State agencies as 
determined by the State.
(2) Education alignment.--A plan to--
(A) with respect to eligible individuals without a 
secondary school diploma or its recognized equivalent, 
facilitate the completion of such diploma or recognized 
equivalent at a community college;
(B) ensure that credits received for Advanced 
Placement or International Baccalaureate classes are 
applied to an equivalent community college course; and
(C) otherwise align the requirements between 
secondary schools and community colleges in order to 
increase the accessibility of community college for 
eligible individuals.
(3) Development.--A plan to--
(A) improve career pathway development, with 
special attention to career pathways related to in-
demand industry sectors or occupations identified under 
paragraph (14);
(B) increase economic mobility of State residents; 
and
(C) provide access to affordable postsecondary 
education for State residents through a network of 
coordinated State and Federal support systems designed 
and implemented by State agencies in partnership with 
public institutions of higher education and public 
higher education systems.
(4) Credential attainment.--A plan to prioritize secondary 
and recognized postsecondary credential attainment through--
(A) integrated education and training models;
(B) dual enrollment programs; and
(C) an increased number of navigators.
(5) Priority.--A plan to prioritize assistance to 
individuals--
(A) with a barrier to employment;
(B) with incomes below 200 percent of the poverty 
level; or
(C) without a recognized postsecondary credential.
(6) Public resources.--A plan to maximize public resources 
to support the attainment of a recognized postsecondary 
credential, including with respect to--
(A) transportation;
(B) on-campus or off-campus housing;
(C) childcare;
(D) food assistance; and
(E) other support programs.
(7) Outreach.--A plan to reach eligible individuals without 
a recognized postsecondary credential, including with respect 
to individuals who--
(A) live in high-poverty areas;
(B) are first-generation students;
(C) are low-income students; and
(D) identify as belonging to other underrepresented 
student groups.
(8) Recognized postsecondary credential enrollment, 
persistence, retention and completion.--A plan to increase 
enrollment, persistence, retention, and credential completion 
by--
(A) developing new, or expanding existing, degree 
and credential programs based on the needs of in-demand 
industry sectors or occupations identified under 
paragraph (14);
(B) increasing the number of career counselors and 
navigators;
(C) ensuring that eligible students enrolled in 
community colleges--
(i) are not charged tuition or fees; and
(ii) are not required to apply Federal, 
State, or private financial assistance 
(including scholarships) to pay for the cost of 
tuition or fees; and
(D) ensuring that the eligibility of an eligible 
student enrolled in community college for a Federal 
Pell Grant under subpart 1 of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070a et seq.) or 
other financial assistance is not affected by funds 
provided under this Act or private scholarship awards 
unless the total amount of such student's Federal Pell 
Grant, other financial assistance, and private 
scholarships exceeds the student's annual cost of 
attendance.
(9) Cost analyses.--Cost analyses for--
(A) providing tuition-free community and technical 
college pathways to individuals who have not attained--
(i) a secondary school diploma or its 
recognized equivalent; or
(ii) a recognized postsecondary credential, 
up to and including a bachelor's degree; and
(B) expanding institutional capacity to meet an 
increased demand for recognized postsecondary 
credentials by expanding supportive services, including 
with respect to hiring additional--
(i) career counselors;
(ii) navigators; and
(iii) other support staff.
(10) Data collection.--
(A) In general.--A plan for data collection efforts 
to measure program outcomes and evaluate program 
success, including by leveraging existing 
administrative data to track any change in 
participation in recognized postsecondary credential 
programs at community colleges.
(B) Content.--An assurance that the State that 
awards subgrants under this title will collect the 
following data:
(i) With respect to each public institution 
of higher education--
(I) the number and percentage of 
students receiving emergency aid; and
(II) the average grant amount for 
each student.
(ii) With respect to each semester or 
quarter at a public institution of higher 
education--
(I) rate of retention; and
(II) rate of completion of a 
recognized secondary credential.
(iii) The grade point averages of students 
receiving emergency aid subgrants.
(iv) Other data reported by the State.
(v) Other data required by the Secretary.
(11) Data sharing.--A State shall--
(A) provide an interagency data-sharing agreement 
that facilitates statewide data collection efforts 
between--
(i) State agencies that oversee the 
dispersal of State and Federal benefits;
(ii) the State educational agency;
(iii) the State higher education system;
(iv) the State board; and
(v) other agencies determined by the 
Secretary to be necessary; and
(B) detail how such agreement will promote cross-
agency collaboration and improve recognized 
postsecondary credential completion.
(12) Transfer agreements.--A description of--
(A) transfer agreements between 2-year and 4-year 
public institutions of higher education in such State; 
and
(B) the ways in which the State will expand the 
number of transfer agreements, including with respect 
to the facilitation and improvement of credit transfers 
between institutions.
(13) Sustaining funds.--The State shall describe--
(A) the ways in which such State will sustain a 
tuition-free community college model; and
(B) the amount of Federal assistance needed to 
sustain the model described in subparagraph (A).
(14) In-demand industry sectors or occupations.--A plan 
to--
(A) identify in-demand industry sectors or 
occupations in such State; and
(B) develop and provide access to pathways to 
credential and degree programs for jobs in such 
industries, giving priority to credential and degree 
programs that correspond to high-quality jobs in 
consultation with--
(i) the State board;
(ii) the State health and human services 
agency;
(iii) the State board of higher education; 
and
(iv) business industry groups within the 
State.
(15) Federal programs.--
(A) In general.--A description of how the State 
will use amounts under covered programs, to the extent 
otherwise permitted by law, to reduce eligibility and 
participation requirement barriers in such programs in 
order to--
(i) treat the pursuit of a recognized 
postsecondary credential as meeting any 
compliance, work participation, and core 
activity requirements for each such program; 
and
(ii) increase access to and completion of 
recognized postsecondary credential programs.
(B) Covered programs defined.--In this paragraph, 
the term ``covered programs'' means--
(i) the temporary assistance for needy 
families program under part A of title IV of 
the Social Security Act (42 U.S.C. 601);
(ii) the Supplemental Nutrition Assistance 
Program Employment and Training Program under 
section 6 of the Food and Nutrition Act of 2008 
(7 U.S.C. 2015);
(iii) the Child Care Development Fund under 
the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858 et seq.); and
(iv) housing assistance programs carried 
out by the Secretary of Housing and Urban 
Development.
(c) Grant Amounts.--The Secretary shall determine grant amounts 
under subsection (a) with respect to each State based on the following:
(1) Statewide unemployment and underemployment rates that 
are 1 percentage point above the national average.
(2) The number of local educational agencies in a State 
that elect to receive special assistance payments under section 
11(a)(1)(F) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1759a(a)(1)(F)).
(3) A statewide official poverty rate that is 1 percentage 
point above the national average.
(4) As of the date on which the application is submitted 
under subsection (b), whether the State carries out a tuition-
free community college program.
(d) Funds.--
(1) Timing.--A grant under this title shall be awarded for 
a period of 5 years, of which--
(A) a maximum of 1 year may be used for planning; 
and
(B) a minimum of 4 years shall be used for 
implementation.
(2) Federal cost share.--The Federal cost share of 
facilitating tuition-free community college for eligible 
students pursuant to a grant awarded under subsection (a) shall 
be not less than 100 percent for costs incurred during the 5-
year grant period described in paragraph (1).
(e) Grant Uses.--An eligible State shall use grant funds awarded 
under this section--
(1) to implement the State plan submitted as part of the 
application under subsection (b), including with respect to 
data collection and reporting in accordance with paragraph (10) 
of such subsection; and
(2) to award subgrants to--
(A) eligible institutions in accordance with 
section 102; and
(B) eligible students in accordance with section 
103.
(f) Eligible Student Defined.--In this section, the term ``eligible 
student'' means an individual who--
(1) is at least 18 years of age;
(2) does not have a postsecondary credential that is less 
than a bachelor's degree; and
(3) when used with respect to a State, is a resident of the 
State.

SEC. 102. SUBGRANTS FOR INSTITUTIONAL CAPACITY AND WRAPAROUND SERVICES.

(a) In General.--A State that receives a grant under section 101 
shall award subgrants to eligible institutions for institutional 
capacity and wraparound services.
(b) Application.--An eligible institution seeking a subgrant under 
this section shall submit to the State an application in such form, at 
such time, and containing such information as the State may require.
(c) Subgrant Uses.--An eligible institution that receives a 
subgrant under this section shall use such subgrant funds for 
implementing activities and services that improve retention and 
completion of recognized postsecondary credentials, including--
(1) identifying and addressing the needs of students, 
including affordable housing, childcare, transportation, and 
food;
(2) supporting the work of navigators, including--
(A) providing information to students with respect 
to eligibility for assistance under other Federal, 
State, and institutional assistance programs; and
(B) connecting students with on-campus and off-
campus supportive services;
(3) hiring additional staff;
(4) increasing access to supportive services by 
centralizing such services on-campus;
(5) offering additional scheduling options for classes with 
respect to the day, time, and location of such classes;
(6) improving the transfer of credits between institutions 
of higher education, including community colleges;
(7) expanding pathways related to in-demand industry 
sectors or occupations;
(8) providing access to technology, including--
(A) digital literacy courses;
(B) computers;
(C) software; and
(D) other equipment necessary to attain a 
recognized postsecondary credential; and
(9) partnering with an entity selected by the State to 
provide technical assistance, including with respect to--
(A) carrying out the State plan under section 101;
(B) awarding subgrants under section 103;
(C) developing reports under section 104;
(D) connecting students to public benefits; and
(E) carrying out the activities described in 
paragraphs (1) through (8).
(d) Eligible Institution Defined.--In this section, the term 
``eligible institution'' means an institution--
(1) located in the State; and
(2) that is--
(A) a community college that is located in a 
geographic area that serves local educational agencies 
that participate, through the community eligibility 
provision authorized by the Healthy, Hunger-free Kids 
Act of 2010 (42 U.S.C. 1758 note et seq.) in--
(i) the national school lunch program under 
the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1751 et seq.); and
(ii) the school breakfast program under the 
Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
seq.);
(B) a community college that is located in 
geographic areas with 40 percent of the population at 
or below the Federal poverty line;
(C) an institution of higher education with an 
admission rate of 50 percent or higher; or
(D) an institution that is eligible to receive a 
grant under part A or B of title III or title V of the 
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), 
including--
(i) a historically Black college or 
university;
(ii) a Hispanic-serving institution;
(iii) a Tribal college or university;
(iv) a minority-serving institution; and
(v) a rural-serving institution of higher 
education.

SEC. 103. SUBGRANTS FOR EMERGENCY AID TO STUDENTS.

(a) In General.--A State that receives a grant under section 101 
shall award subgrants to eligible students for emergency aid.
(b) Application.--
(1) In general.--An eligible student seeking a subgrant 
under this section shall submit to the State an application in 
such form, at such time, and containing such information as the 
State may require.
(2) Notification of receipt.--Upon receipt of an 
application from an eligible student under paragraph (1), the 
State shall notify such student of such receipt in a manner to 
be determined by the State.
(3) Appeal.--If an application submitted by an eligible 
student under paragraph (1) is denied by the State, such 
student may appeal such denial in a manner to be determined by 
the State.
(c) Timing.--A subgrant awarded under this section shall be for a 
period of 5 years.
(d) Contracts.--A State may award a contract to a scholarship-
granting organization for purposes of--
(1) accepting applications from eligible students under 
subsection (b)(1); and
(2) disbursing subgrant funds to eligible students in 
accordance with subsection (e)(4).
(e) Funds.--
(1) Administration.--Not more than 20 percent of funds 
awarded under this section may be used for the administration 
of emergency aid to eligible students.
(2) Direct aid.--Not less than 80 percent of funds awarded 
under this section shall be used to award emergency aid 
subgrants to eligible students.
(3) Subgrant amounts.--
(A) Eligible students without dependents.--With 
respect to an academic year, a subgrant awarded to an 
eligible student that does not have a dependent may not 
exceed $1,500.
(B) Eligible students with dependents.--With 
respect to an academic year, a subgrant awarded to an 
eligible student with a dependent may not exceed 
$2,500.
(4) Disbursement of funds.--An institution shall disburse 
funds to eligible students in a timely manner, as determined by 
the State.
(5) Federal taxes.--A subgrant under this title may not be 
considered income for purposes of the Internal Revenue Code of 
1986.
(f) Eligible Student Defined.--In this section, the term ``eligible 
student'' means a student enrolled at a public junior or community 
college in the applicable State and participating in the tuition-free 
program pursuant to section 101, without regard to whether such student 
submits an application under section 483 of the Higher Education Act of 
1965 (20 U.S.C. 1090), who is experiencing financial challenges that 
may affect the ability of such student to remain enrolled at such 
college, including--
(1) lack of access to or loss of--
(A) employment (including a temporary loss of 
employment);
(B) transportation;
(C) child care;
(D) utilities (including water and electricity); or
(E) housing;
(2) food insecurity;
(3) with respect to a student or the dependent of such 
student, a medical condition or need, including--
(A) pregnancy; and
(B) mental health conditions; and
(4) with respect to a student who is a dependent--
(A) the death of a parent or guardian; or
(B) a parent or guardian with a medical condition 
that results in temporary or permanent loss of 
employment of such parent or guardian.

SEC. 104. REPORTS.

(a) Annual Report.--
(1) In general.--Not later than 1 year after receiving the 
reports required under subsection (b) for a year, and on an 
annual basis thereafter, such State shall submit to the 
Secretary a report describing--
(A) the uses of funds under this title;
(B) progress made in fulfilling the requirements of 
the grant;
(C) with respect to participating community 
colleges, rates of--
(i) graduation;
(ii) persistence;
(iii) transfer; and
(iv) attainment of recognized postsecondary 
credentials;
(D) the institutional reports submitted under 
subsection (b);
(E) the ways in which the State is communicating 
with institutions to--
(i) understand the barriers of students, 
with respect to eligibility and access, to 
public supports; and
(ii) use the information described in 
subparagraph (A) to inform any changes;
(F) the ways in which the State human services 
agency and State board are aligning the policy goals of 
such agencies with the policy goals of the State higher 
education agency;
(G) changes in access to, and use of, public 
benefits;
(H) changes in employment with respect to in-demand 
industry sectors and high-quality jobs;
(I) changes in rates of unemployment and 
underemployment;
(J) other data as provided by the State; and
(K) other data as required by the Secretary.
(2) Disaggregation.--The information described in 
subparagraphs (G) through (K) shall be disaggregated, to the 
extent practicable, by--
(A) race;
(B) ethnicity; and
(C) income level.
(b) Institution Report.--Not later than 1 year after receiving a 
subgrant under section 102 or 103, and on an annual basis thereafter, 
an institution shall submit to the State a report describing--
(1) the uses of funds;
(2) with respect to the period beginning on the date on 
which a subgrant was received and ending on the date on which 
the report is submitted, changes in rates of--
(A) retention; and
(B) graduation;
(3) the ways in which such institution increased awareness 
of, and access to, public supports made available through State 
agencies; and
(4) the ways in which such institution made improvements to 
tracking data with respect to--
(A) the basic needs of students;
(B) the financial barriers of students; and
(C) the connection of students to public supports.
(c) Public Access.--
(1) In general.--Not later than 1 year after the date 
described in subsection (a)(1) each year, the Secretary shall 
make the data from the report submitted by each State pursuant 
to such subsection publicly available and shall include--
(A) a dashboard that provides key metrics; and
(B) downloadable data sets for each participating 
State and participating institution.
(2) Development of metrics.--In developing or adapting the 
reporting metrics described in paragraph (1)(A), the Secretary 
may consult with the Director of the Institute of Education 
Sciences.

SEC. 105. DEFINITIONS.

In this title:
(1) Business industry group.--The term ``business industry 
group'' means an organization that represents businesses 
(including small businesses), individual employers, industry 
clusters, and individuals from--
(A) business or trade organizations;
(B) economic development organizations;
(C) nonprofit organizations, community-based 
organizations, or intermediaries;
(D) philanthropic organizations;
(E) industry associations; or
(F) other organizations determined necessary by the 
State.
(2) Community college.--The term ``community college'' has 
the meaning given the term ``junior or community college'' in 
Section 312 of the Higher Education Act of 1965 (20 U.S.C. 
1058).
(3) Eligible state.--The term ``eligible State'' means a 
State that is a recipient of a grant under section 101.
(4) ESEA terms.--The terms ``secondary school'' and 
``Secretary'' have the meanings given such terms in section 
8101 of the Elementary and Secondary Education Act (20 U.S.C. 
7801).
(5) HEA terms.--
(A) Hispanic-serving institution.--The term 
``Hispanic-serving institution'' has the meaning given 
such term in section 502 of the Higher Education Act of 
1965 (20 U.S.C. 1101a).
(B) Historically black college or university.--The 
term ``historically Black college or university'' has 
the meaning given the term ``part B institution'' in 
section 322 of the Higher Education Act of 1965 (20 
U.S.C. 1061).
(C) Junior or community college.--The term ``junior 
or community college'' has the meaning given such term 
in section 502(a) of the Higher Education Act of 1965 
(20 U.S.C. 1101a(a)).
(D) Minority-serving institution.--The term 
``minority-serving institution'' includes the entities 
described in paragraphs (1) through (7) of section 
371(a) of the Higher Education Act of 1965 (20 U.S.C. 
1067q(a)).
(E) Tribal college or university.--The term 
``Tribal college or university'' has the meaning given 
such term in section 316(b) of the Higher Education Act 
of 1965 (20 U.S.C. 1059c(b)).
(F) Rural-serving institution of higher 
education.--The term ``rural-serving institution of 
higher education'' has the meaning given such term in 
section 861(b) of the Higher Education Act of 1965 (20 
U.S.C. 1161q(b)).
(6) High-quality job.--The term ``high-quality job'' means 
a job that is defined by the interagency committee described in 
section 101(b)(1).
(7) Institution of higher education.--The term 
``institution of higher education'' has the meaning given such 
term in section 101 of the Higher Education Act of 1965 (20 
U.S.C. 1001).
(8) WIOA terms.--
(A) The terms ``in-demand industry sector or 
occupation'', ``individual with a barrier to 
employment'', ``recognized postsecondary credential'', 
``State board'', and ``supportive services'' have the 
meanings given such terms in section 3 of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3102).
(B) The term ``integrated education and training'' 
has the meaning given such term in section 203 of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 
3272).
(9) Navigator.--The term ``navigator'' means an individual 
who is integrated into the existing community college operation 
and who works with students to--
(A) understand the eligibility of such students for 
Federal, State, and local financial aid and benefit 
options;
(B) assist such students with the application 
process for such options; and
(C) connect students with resources on campus and 
in the community.

SEC. 106. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as are necessary 
to carry out this title for fiscal year 2026 and each of the 4 
succeeding fiscal years.
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