Federal Work-Study Improvement Act
This bill reauthorizes through FY2028 and otherwise revises the Federal Work-Study Program, including by removing a provision that prohibits a participating institution of higher education from using more than 25% of program funds for wages for students employed with private for-profit organizations.
To amend the Higher Education Act of 1965 to treat all institutions of 
higher education equally for purposes of determining the Federal share 
     under the Federal work-study programs, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Work-Study Improvement 
Act''.

SEC. 2. FEDERAL WORK-STUDY PROGRAMS.

    (a) Authorization of Appropriations; Work-Based Learning Defined.--
Section 441 of part C of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1087-51) is amended--
            (1) in subsection (a), by striking ``community service 
        activities'' and inserting ``work-based learning''; and
            (2) by striking subsections (b) and (c) and inserting the 
        following:
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this part, $1,520,000 for fiscal year 2023 
and each of the 5 succeeding fiscal years.
    ``(c) Work-Based Learning Defined.--For purposes of this part, the 
term `work-based learning' means paid interactions with industry or 
community professionals in real workplace settings that foster in-
depth, first-hand engagement with the tasks required of a given career 
field, that are aligned to a student's field of study.
    ``(d) Secretarial Requirement.--The Secretary may not award funds 
under this part based on whether an institution of higher education 
meets the definition of section 101 or 102(a)(1)(A).''.
    (b) Allocation of Funds.--Section 442(d)(1) of part C of title IV 
of the Higher Education Act of 1965 (20 U.S.C. 1087-52(d)(1)) is 
amended by striking ``community service'' and inserting ``work-based 
learning''.
    (c) Grants for Federal Work-Study Program.--Section 443 of part C 
of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087-53) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``community 
                service'' and inserting ``work-based learning'';
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) provide that funds granted an institution of higher 
        education, pursuant to this section, may be used only to make 
        payments to students participating in work-study programs, 
        except that an institution may use a portion of the sums 
        granted to it to meet administrative expenses in accordance 
        with section 489 of this Act, may use a portion of the sums 
        granted to it to meet the cost of a job location and 
        development program in accordance with section 446 of this 
        part, and may transfer funds in accordance with the provisions 
        of section 488 of this Act;'';
                    (C) by amending paragraph (5) to read as follows:
            ``(5) provide that the Federal share of the compensation of 
        students employed in the work-study program in accordance with 
        the agreement shall not exceed--
                    ``(A) 75 percent for the first fiscal year after 
                the date of the enactment of the Federal Work-Study 
                Improvement Act;
                    ``(B) 65 percent for the second fiscal year after 
                such date;
                    ``(C) 60 percent for the third fiscal year after 
                such date;
                    ``(D) 55 percent for the fourth fiscal year after 
                such date; and
                    ``(E) 50 percent each succeeding fiscal year,
        except that the Federal share may exceed 50 percent if the 
        Secretary determines, pursuant to regulations promulgated by 
        the Secretary establishing objective criteria for such 
        determinations, that a Federal share in excess of such amounts 
        is required in furtherance of the purpose of this part;''; and
                    (D) by striking paragraph (8)(B) and inserting the 
                following:
                    ``(B) in work-based learning;'';
            (2) in subsection (c)--
                    (A) by striking paragraphs (2) and (3); and
                    (B) by redesignating paragraphs (4) and (5) as 
                paragraphs (2) and (3), respectively;
            (3) by striking subsection (d)(3); and
            (4) by striking subsection (e)(3).
    (d) Job Location and Development Programs.--Section 446 of part C 
of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087-56) is 
amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``10 percent or $75,000'' and 
                inserting ``20 percent or $150,000''; and
                    (B) by striking ``community service jobs'' and 
                inserting ``career and technical job placement''; and
            (2) in subsection (b)(1), by striking ``80'' and inserting 
        ``50''.
    (e) Additional Funds; Work Colleges.--Sections 447 and 448 of part 
C of title IV of the Higher Education Act of 1965 is amended (20 U.S.C. 
1087-57, 1087-58), by striking ``community service'' each place it 
appears and inserting ``work-based learning''.

SEC. 3. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS.

    (a) Repeal.--Subpart 3 of part A of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070b et seq.) is repealed.
    (b) Effective Date.--The repeal made by subsection (a) shall take 
effect on June 30, 2022.
    (c) Appropriations.--Notwithstanding subsections (a) and (b), sums 
appropriated under section 413A for fiscal year 2022 shall be available 
for payments to institutions of higher education under such section (as 
in effect on June 29, 2022) through the end of fiscal year 2023.
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Federal Work-Study Improvement Act
To amend the Higher Education Act of 1965 to treat all institutions of higher education equally for purposes of determining the Federal share under the Federal work-study programs, and for other purposes.
Federal Work-Study Improvement Act
Rep. Keller, Fred