text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``William H. Gray, III, College 
  Completion Challenge Grant Program of 1999''.
  
  SEC. 2. PROGRAM AUTHORIZED.
  
      Subpart 2 of part A of title IV of the Higher Education Act of 1965 
  (20 U.S.C. 1132a et seq.) is amended by adding at the end thereof the 
  following new chapter:
  
   ``CHAPTER 4--WILLIAM H. GRAY, III, COLLEGE COMPLETION CHALLENGE GRANT 
                                  PROGRAM
  
  ``SEC. 408A. FINDINGS.
  
      ``Congress makes the following findings:
              ``(1) Students from low-income families are significantly 
          more likely to leave a 4-year institution of higher education 
          without a baccalaureate degree than are students with higher 
          incomes.
              ``(2) Even among students with above average grades, low-
          income students are still more likely to leave a 4-year 
          institution of higher education without a baccalaureate degree 
          than are students with higher incomes, especially low-income 
          students enrolled at private institutions.
              ``(3) This lack of persistence to completion of a 
          baccalaureate degree continues to contribute to the gap in 
          educational attainment and ultimate income levels between 
          disadvantaged students and their more affluent classmates.
              ``(4) While the focus of Federal student financial 
          assistance and higher education programs has traditionally been 
          to ensure access to postsecondary education, the Federal 
          Government should expand its role in student financial 
          assistance programs for postsecondary education to address this 
          lack of persistence to baccalaureate degree completion.
              ``(5) The amount of grant assistance provided to 
          postsecondary students is critical to their persistence and 
          degree attainment.
              ``(6) In addition to economic disadvantage, the following 
          factors significantly contribute to a student dropping out of a 
          4-year institution of higher education:
                      ``(A) A delayed entry into postsecondary education 
                  after graduating from high school.
                      ``(B) A low grade point average.
                      ``(C) Working full-time while enrolled.
                      ``(D) Being a first-generation college student.
                      ``(E) Being less engaged with an academic program.
              ``(7) Most students who drop out of college, particularly 
          those at the greatest risk of leaving their programs of study 
          without a baccalaureate degree, do so during the first 2 years 
          of study.
              ``(8) At-risk students who receive targeted academic 
          support services persist to degree completion at higher rates 
          than at-risk students who do not receive such services.
              ``(9) Educators interested in student retention have long 
          viewed intensive academic summer programs for incoming first-
          year students as very important in helping students from 
          disadvantaged backgrounds become acclimated to college life and 
          in improving retention.
  
  ``SEC. 408B. PURPOSE AND PROGRAM AUTHORITY.
  
      ``(a) Purpose.--The purpose of this program is to assist 
  institutions of higher education to help students who are at risk of 
  ending their postsecondary education prior to obtaining baccalaureate 
  degrees, particularly those who are economically disadvantaged, to stay 
  in school until they obtain those degrees.
      ``(b) Program Authorized.--From funds appropriated pursuant to 
  section 408G for each fiscal year, the Secretary is authorized, in 
  accordance with the requirements of this chapter, to award competitive 
  grants to eligible institutions to enable them to pay the Federal share 
  of the costs of carrying out programs designed to meet the purpose of 
  this chapter.
      ``(c) Duration of Grant.--A grant made under this chapter shall be 
  awarded for a period of 3 years.
  
  ``SEC. 408C. INSTITUTIONAL ELIGIBILITY.
  
      ``(a) In General.--An institution of higher education is eligible 
  to receive a grant under this chapter if the institution--
              ``(1) meets the requirements of section 102; and
              ``(2) awards baccalaureate degrees, or, subject to 
          subsection (b)(1), associate degrees.
      ``(b) Limitations.--
              ``(1) Associate degree-granting institutions.--An eligible 
          applicant that awards only associate degrees may apply for a 
          grant under this chapter only as part of a consortium that 
          includes one or more institutions of higher education that 
          awards baccalaureate degrees.
              ``(2) Multiple grants.--An institution that receives a 
          grant under this chapter may compete to receive a subsequent 
          grant, but may not receive more than two grants under this 
          chapter.
  
  ``SEC. 408D. APPLICATION PROCESS.
  
      ``(a) In General.--
              ``(1) ____.--Each eligible applicant that desires a grant 
          under this chapter shall submit to the Secretary an application 
          for that grant at such time and containing such information as 
          the Secretary may prescribe.
              ``(2) Demonstration of prior commitment.--In order to 
          receive a grant under this chapter, an applicant shall 
          demonstrate in its application, to the satisfaction of the 
          Secretary, its successful prior commitment to the purposes of 
          this chapter, through the prior support of at least one of the 
          activities described in section 408E(a).
      ``(b) Matching Requirement.--
              ``(1) In general.--The Federal share of the cost of 
          programs assisted under this chapter shall not be more than 50 
          percent, and the matching funds shall be from non-Federal 
          sources.
              ``(2) Consortia.--The Secretary may establish in 
          regulations the matching requirement applicable to a consortium 
          of institutions in which some of the institutions are eligible 
          for a waiver of the matching requirement pursuant to section 
          395 or section 515.
      ``(c) Coordination Requirement.--Each eligible institution shall 
  ensure that the activities provided under this chapter are, to the 
  extent practicable, coordinated with, complement, and enhance related 
  services under other Federal and non-Federal programs, and do not 
  duplicate the services already provided at that institution.
      ``(d) Supplement, Not Supplant.--Funds under this chapter shall be 
  used to supplement, and not supplant, non-Federal funds expended for 
  existing programs.
  
  ``SEC. 408E. AUTHORIZED ACTIVITIES.
  
      ``(a) In General.--An eligible institution that receives a grant 
  under this chapter shall, except as provided in subsection (b), use the 
  grant to provide services or assistance to students at risk of leaving 
  their programs of study without baccalaureate degrees, particularly 
  economically disadvantaged students, by carrying out one or more of the 
  following:
              ``(1) Implementing an intensive summer program for incoming 
          first-year students (or students entering their second or third 
          year of postsecondary education if the institution can 
          demonstrate that it is addressing the needs of first-year 
          students and that a summer program could help retention of 
          second- or third-year students at risk of dropping out), 
          provided that the institution demonstrates in its application 
          that it has a strong commitment to student retention through 
          additional activities.
              ``(2) Developing a strong student support service program, 
          targeted to students in their first 2 years of postsecondary 
          education, that includes activities such as--
                      ``(A) peer tutoring;
                      ``(B) mentoring programs involving faculty and 
                  upper class students;
                      ``(C) activities to assist students currently 
                  enrolled in a 2-year institution to secure admission 
                  and financial assistance in a 4-year program of 
                  postsecondary education;
                      ``(D) activities to assist students in securing 
                  admission and financial assistance for enrollment in 
                  graduate and professional programs; and
                      ``(E) assistance in course selection.
              ``(3) Providing grants to students in their first 2 years 
          of postsecondary education, in an amount not less than required 
          under subsection (c), except that a recipient that provides 
          grants under this paragraph shall also provide services under 
          paragraphs (1) or (2), or both.
      ``(b) Special Rule.--A recipient of funds under this chapter may 
  serve students who have completed their first 2 years of postsecondary 
  education if it demonstrates in its application, to the satisfaction of 
  the Secretary, that--
              ``(1) these students are at high risk of dropping out; and
              ``(2) it will first meet the needs of all its eligible 
          first- and second-year students for services under this 
          chapter.
      ``(c) Grant Size.--
              ``(1) In general.--The Secretary may, by regulation, 
          establish minimum student grant award levels for purposes of 
          subsection (a)(3), taking into account such factors as the 
          different costs of attendance associated with public and 
          private institutions.
              ``(2) Exception.--If the Secretary does not establish 
          minimum student grant award levels under paragraph (1), or if 
          an institution wishes to provide grants under subsection (a)(3) 
          in an amount less than the minimum set by the Secretary, the 
          institution shall demonstrate in its application, to the 
          satisfaction of the Secretary, that the size of the grants it 
          will provide is appropriate and likely to have a significant 
          effect on the persistence problem at that institution.
  
  ``SEC. 408F. RELATION TO OTHER FINANCIAL ASSISTANCE.
  
      ``A grant provided to a student by an eligible institution from an 
  award made under this chapter shall not be considered in determining 
  that student's need for grant or work assistance under this title, 
  except that in no case shall the total amount of student financial 
  assistance awarded to a student under this title exceed that student's 
  cost of attendance, as defined by section 472.
  
  ``SEC. 408G. AUTHORIZATION OF APPROPRIATIONS.
  
      ``(a) In General.--There are authorized to be appropriated to carry 
  out this chapter $35,000,000 for fiscal year 2000, and such sums as may 
  be necessary for each of the 4 succeeding fiscal years.--
      ``(b) Special Rule.--From the amounts appropriated under subsection 
  (a) for any fiscal year, the Secretary may reserve up to 1 percent of 
  such amount for that fiscal year in order to carry out an evaluation of 
  the program authorized by this chapter.''.
  
  SEC. 3. EFFECTIVE DATE.
  
      The amendment made by section 2 shall be effective on October 1, 
  1999.
target: Authorizes the Secretary of Education to make competitive matching grants to such institutions or consortia (which may include associate degree-granting institutions belonging to a consortium that also includes baccalaureate degree- granting institutions). Limits to two the number of such grants to any institution.
  Requires institutions to use grant funds to provide services or assistance to students, particularly economically disadvantaged students, at risk of leaving their programs of study without baccalaureate degrees. Requires this to be done through one or both of the following: (1) intensive summer programs for incoming first-year students (and, under certain conditions, second- or third-year students); and (2) student support service programs, targeted to students in their first two years of postsecondary education. Allows institutions, if they carry out either or both of those required programs, to use such funds also for grants to students in their first two years of postsecondary education. Allows use of such funds to serve students who have completed their first two years of postsecondary education if they are at-risk and the institution will first meet the needs of all its eligible first- and second-year students for services under this Act.
  Authorizes appropriations.
feat_title: William H. Gray, III, College Completion Challenge Grant Program of 1999