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.
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.
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