Territories College Access Act
This bill establishes a grant program to cover the difference between in-state and out-of-state tuition and fees for students who are residents of an outlying area (i.e., American Samoa, the Northern Mariana Islands, Guam, or the Virgin Islands) and who attend a public institution of higher education located in a state, the District of Columbia, or Puerto Rico.
A student on whose behalf a grant is made must maintain full-time employment within the outlying area for at least two years. Further, a student who completes less than the required two years of employment must repay the grant, or the grant must be treated as a loan that is subject to repayment.
Lastly, the Government Accountability Office must report on the program's effectiveness in expanding educational opportunities for these students.
To establish a program that enables college-bound residents of outlying 
 areas of the United States to have greater choices among institutions 
              of higher education, 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 ``Territories College Access Act''.

SEC. 2. PURPOSE.

    It is the purpose of this Act to establish a program that enables 
college-bound residents of outlying areas to have greater choices among 
institutions of higher education.

SEC. 3. COLLEGE ACCESS GRANTS.

    (a) Grants.--
            (1) In general.--
                    (A) Allocation to outlying areas.--From the total 
                amount appropriated under subsection (n) for a fiscal 
                year, the Secretary shall allocate 25 percent to each 
                outlying area to make grants to eligible institutions 
                in accordance with subparagraph (B).
                    (B) Grants to eligible institutions.--From the 
                amount allocated to an outlying area under subparagraph 
                (A) for a fiscal year, the Governor of the outlying 
                area shall carry out a program under which the Governor 
                awards grants to eligible institutions, on behalf of 
                each eligible student from the outlying area who is 
                enrolled in such institution, to pay the difference 
                between--
                            (i) the base amount of tuition and fees 
                        charged to the eligible student; and
                            (ii) the base amount of tuition and fees 
                        charged to a student of the institution who is 
                        a resident of the State in which the 
                        institution is located.
            (2) Maximum student amounts.--The amount paid on behalf of 
        an eligible student under this section shall be--
                    (A) not more than $15,000 for any one award year 
                (as defined in section 481 of the Higher Education Act 
                of 1965 (20 U.S.C. 1088)); and
                    (B) not more than $45,000 in the aggregate.
            (3) Proration.--In the case of a grant made under this 
        section on behalf of an eligible student who is attending an 
        eligible institution on a less than full-time basis, the amount 
        of the grant shall be reduced in proportion to the degree to 
        which that student is not so attending on a full-time basis.
    (b) Reduction for Insufficient Appropriations.--
            (1) In general.--If the funds appropriated pursuant to 
        subsection (n) for any fiscal year are insufficient to enable 
        the Governor of an outlying area to award a grant in the amount 
        determined under subsection (a) on behalf of each eligible 
        student from the outlying area enrolled in an eligible 
        institution, then the Governor, in consultation with the 
        Secretary, shall--
                    (A) first, ratably reduce the amount of the tuition 
                and fee payment made on behalf of each eligible student 
                from the outlying area who has not received funds under 
                this section for a preceding year; and
                    (B) after making reductions under subparagraph (A), 
                ratably reduce the amount of the tuition and fee 
                payments made on behalf of all other eligible students 
                from the outlying area.
            (2) Adjustments.--The Governor of an outlying area, in 
        consultation with the Secretary, may adjust the amount of 
        tuition and fee payments made under paragraph (1) based on--
                    (A) the financial need of the eligible students to 
                avoid undue hardship to the eligible students; or
                    (B) undue administrative burdens on the Governor.
            (3) Further adjustments.--Notwithstanding paragraphs (1) 
        and (2), the Governor of an outlying area may prioritize the 
        making or amount of tuition and fee payments under this 
        subsection based on the income and need of eligible students.
    (c) Rule of Construction.--Nothing in this section shall be 
construed to require an institution of higher education to alter the 
institution's admissions policies or standards in any manner to enable 
an eligible student to enroll in the institution.
    (d) Applications.--Each student desiring that a Governor award a 
grant under this section to an eligible institution on behalf of the 
student shall submit an application to the eligible institution at such 
time, in such manner, and accompanied by such information as the 
eligible institution may require.
    (e) Employment Agreement.--
            (1) In general.--Except as provided in subsection (g), each 
        application submitted under subsection (d) shall contain or be 
        accompanied by an agreement by the applicant that the applicant 
        will--
                    (A) maintain full-time employment within the 
                outlying area where the applicant was domiciled, as 
                described in subsection (l)(3)(A), for a period of not 
                less than 2 years within the 4-year period after the 
                date the applicant completes the course of study for 
                which the applicant received grant assistance under 
                this section; and
                    (B) submit evidence of such employment in the form 
                of a certification by the employer upon completion of 
                each year of such employment.
            (2) Failure or refusal to carry out employment 
        obligation.--In the event that an applicant is determined to 
        have failed or refused to carry out the employment obligation 
        described in paragraph (1), the sum of the grant assistance 
        under this section received by such applicant shall be treated 
        as a loan and collected from the applicant in accordance with 
        subsection (f) and the policies and procedures under subsection 
        (h)(2).
    (f) Repayment for Failure To Complete Employment.--In the event 
that a student on whose behalf a grant is made under this section fails 
or refuses to comply with the employment obligation in the agreement 
under subsection (e), the sum of the amounts of any such grant received 
by such student shall, upon a determination of such a failure or 
refusal in such employment obligation, be treated as a loan, and shall 
be subject to repayment, together with interest thereon accruing from 
the date of the grant award, in accordance with terms and conditions 
specified by the Governor through policies and procedures under 
subsection (h)(2).
    (g) Extenuating Circumstances.--
            (1) In general.--Each Governor shall identify extenuating 
        circumstances under which a student on whose behalf a grant is 
        made under this section who is unable to fulfill all or part of 
        the student's employment obligation under subsection (e) may be 
        excused from fulfilling that portion of the employment 
        obligation.
            (2) Continuous enrollment.--If a student on whose behalf a 
        grant is made under this section is continuously enrolled at an 
        institution of higher education in one or more 
        postbaccalaureate programs and is maintaining satisfactory 
        progress in the course of study the student is pursuing in 
        accordance with section 484(c) of the Higher Education Act of 
        1965 (20 U.S.C. 1091(c)), the employment obligation in the 
        agreement under subsection (e) shall begin once such recipient 
        is no longer continuously enrolled.
    (h) Administration of Program.--
            (1) In general.--Each Governor shall carry out the program 
        authorized under this section in consultation with the 
        Secretary. Each Governor may enter into a grant, contract, or 
        cooperative agreement with another public or private entity to 
        administer the program under this section if the Governor 
        determines that doing so is a more efficient way of carrying 
        out the program.
            (2) Policies and procedures.--Each Governor, in 
        consultation with institutions of higher education eligible for 
        participation in the program authorized under this section, 
        shall develop policies and procedures for the administration of 
        the program.
            (3) Memorandum of agreement.--Each Governor and the 
        Secretary shall enter into a memorandum of agreement that 
        describes--
                    (A) the manner in which the Governor shall consult 
                with the Secretary with respect to administering the 
                program authorized under this section; and
                    (B) any technical or other assistance to be 
                provided to the Governor by the Secretary for purposes 
                of administering the program (which may include access 
                to the information in the common financial reporting 
                form developed under section 483 of the Higher 
                Education Act of 1965 (20 U.S.C. 1090)).
    (i) Governor's Report.--Each Governor shall report to the 
authorizing committees annually regarding--
            (1) the number of eligible students from the outlying area 
        attending each eligible institution and the amount of the grant 
        assistance paid to such institutions on behalf of the eligible 
        students;
            (2) the extent, if any, to which a ratable reduction was 
        made in the amount of tuition and fee payments made on behalf 
        of eligible students from the outlying area;
            (3) the progress in obtaining recognized academic 
        credentials of the cohort of eligible students from the 
        outlying area for each year; and
            (4) the number of eligible students whose grant assistance 
        under this section has been converted to a loan, and the 
        repayment of such loans.
    (j) GAO Report.--Beginning on the date of enactment of this 
section, the Comptroller General of the United States shall monitor the 
effect of the program authorized under this section on educational 
opportunities for eligible students. The Comptroller General shall 
analyze whether eligible students had difficulty gaining admission to 
eligible institutions because of any preference afforded in-State 
residents by eligible institutions, and shall expeditiously report any 
findings regarding such difficulty to the authorizing committees. In 
addition, the Comptroller General shall--
            (1) analyze the extent to which there are an insufficient 
        number of eligible institutions to which students from outlying 
        areas can gain admission, including admission aided by 
        assistance provided under this section, due to--
                    (A) caps on the number of out-of-State students the 
                institution will enroll;
                    (B) significant barriers imposed by academic 
                entrance requirements (such as grade point average and 
                standardized scholastic admissions tests); and
                    (C) absence of admission programs benefitting 
                minority students; and
            (2) report the findings of the analysis described in 
        paragraph (1) to the authorizing committees.
    (k) General Requirements.--
            (1) Personnel.--The Secretary shall arrange for the 
        assignment of an individual, pursuant to subchapter VI of 
        chapter 33 of title 5, United States Code, to serve as an 
        adviser to each Governor with respect to the program authorized 
        under this section.
            (2) Administrative expenses.--Each Governor may use not 
        more than 5 percent of the funds made available for the program 
        authorized under this section for a fiscal year to pay the 
        administrative expenses of the program for the fiscal year.
            (3) Inspector general review.--The program authorized under 
        this section shall be subject to audit and other review by the 
        Inspector General of the Department of Education in the same 
        manner as programs are audited and reviewed under the Inspector 
        General Act of 1978 (5 U.S.C. App.).
            (4) Gifts.--Each Governor may accept, use, and dispose of 
        donations of services or property for purposes of carrying out 
        this section.
            (5) Maximum student amount adjustments.--Each Governor 
        shall establish rules to adjust the maximum student amounts 
        described in subsection (a)(2)(B) for eligible students who 
        transfer between the eligible institutions.
    (l) Definitions.--In this section:
            (1) Authorizing committees.--The term ``authorizing 
        committees'' has the meaning given the term in section 103 of 
        the Higher Education Act of 1965 (20 U.S.C. 1003).
            (2) Eligible institution.--The term ``eligible 
        institution'' means an institution that--
                    (A) is a public 4-year institution of higher 
                education located in one of the several States of the 
                United States, the District of Columbia, or the 
                Commonwealth of Puerto Rico;
                    (B) is eligible to participate in the student 
                financial assistance programs under title IV of the 
                Higher Education Act of 1965 (20 U.S.C. 1070 et seq.); 
                and
                    (C) enters into an agreement with a Governor 
                containing such terms and conditions as the Governor 
                and institution may jointly specify, including a 
                requirement that the institution use the funds made 
                available under this section to supplement and not 
                supplant assistance that otherwise would be provided to 
                eligible students.
            (3) Eligible student.--The term ``eligible student'' means 
        an individual who--
                    (A) was domiciled in the outlying area from which a 
                grant is sought under this section for not less than 
                the 12 consecutive months preceding the commencement of 
                the freshman year of the individual at an institution 
                of higher education;
                    (B) graduated from a secondary school in such 
                outlying area, or received the recognized equivalent of 
                a secondary school diploma while domiciled in such 
                outlying area, on or after January 1, 2017;
                    (C) begins the individual's undergraduate course of 
                study within the 3 calendar years (excluding any period 
                of service on active duty in the Armed Forces, or 
                service under the Peace Corps Act (22 U.S.C. 2501 et 
                seq.) or subtitle C of title I of the National and 
                Community Service Act of 1990 (42 U.S.C. 12571 et 
                seq.)) of graduation from a secondary school, or 
                obtaining the recognized equivalent of a secondary 
                school diploma;
                    (D) is enrolled or accepted for enrollment, on at 
                least a half-time basis, in a baccalaureate degree or 
                other program (including a program of study abroad 
                approved for credit by the eligible institution at 
                which such student is enrolled) leading to a recognized 
                educational credential at an eligible institution;
                    (E) if enrolled in an eligible institution, is 
                maintaining satisfactory progress in the course of 
                study the student is pursuing in accordance with 
                section 484(c) of the Higher Education Act of 1965 (20 
                U.S.C. 1091(c));
                    (F) while enrolled in an eligible institution, 
                maintains the outlying area where the applicant was 
                domiciled pursuant to subparagraph (A) as the 
                individual's principal place of residence for purposes 
                of the laws of such outlying area; and
                    (G) has not completed the individual's first 
                undergraduate baccalaureate degree course of study.
            (4) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).
            (5) Governor.--The term ``Governor'' means--
                    (A) the Governor of the United States Virgin 
                Islands, with respect to the grants authorized to be 
                made by such Governor under subsection (a);
                    (B) the Governor of the Commonwealth of the 
                Northern Mariana Islands, with respect to the grants 
                authorized to be made by such Governor under subsection 
                (a);
                    (C) the Governor of Guam, with respect to the 
                grants authorized to be made by such Governor under 
                subsection (a); and
                    (D) the Governor of American Samoa, with respect to 
                the grants authorized to be made by such Governor under 
                subsection (a).
            (6) Outlying area.--The term ``outlying area'' means any of 
        the four insular areas specified under section 8101(36)(A) of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801(36)(A)).
            (7) Secondary school.--The term ``secondary school'' has 
        the meaning given the term in section 8101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 7801).
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (9) State.--Except as used in paragraph (2)(A), the term 
        ``State'' has the meaning given the term in section 103 of the 
        Higher Education Act of 1965 (20 U.S.C. 1003).
    (m) Effective Date.--This section shall take effect with respect to 
payments for periods of instruction that begin on or after January 1, 
2021.
    (n) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $40,000,000 for each of the 
fiscal years 2022 through 2027, and such sums as may be necessary for 
each of the succeeding fiscal years. Such funds shall remain available 
until expended.
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Territories College Access Act
To establish a program that enables college-bound residents of outlying areas of the United States to have greater choices among institutions of higher education, and for other purposes.
Territories College Access Act
Del. Plaskett, Stacey E.