Grants for Federal work-study programs

Section 443 of the Higher Education Act of 1965 (20 U.S.C. 1087–53) is amended— (1) in subsection (b)— (A) by amending paragraph (2) to read as follows: (2) provide that funds granted to 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— (A) shall, beginning in fiscal year 2028— (i) use at least 3 percent of the total amount of funds granted to the institution under this section for that fiscal year to compensate students who have exceptional need (as defined in section 413C(c)(2)) and are employed in a work-based learning position during a qualified period of nonenrollment, as defined in subsection (f); (ii) use at least 7 percent of the total amount of funds granted to the institution under this section for that fiscal year to compensate students employed in work-based learning positions; and (iii) use at least 7 percent of the total amount of funds granted to the institution under this section for that fiscal year to compensate students employed in community service, and shall ensure that not less than 1 tutoring or family literacy project (as described in subsection (d)) is included in meeting the requirement of this subparagraph, except that the Secretary may waive a clause under this subparagraph with respect to an institution if the Secretary determines that enforcing that clause would cause hardship for students at the institution; and (B) may— (i) use a portion of the sums granted to it to meet administrative expenses in accordance with section 489; (ii) 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; and (iii) transfer funds in accordance with section 488;; (B) in paragraph (4)— (i) by striking $300 and inserting $500; and (ii) by inserting except as provided under subsection (f), before provide; (C) in paragraph (5)— (i) in subparagraph (A)(ii), by striking and at the end; (ii) in subparagraph (B), by inserting and after the semicolon; and (iii) by adding at the end the following: (C) the Federal share shall equal 100 percent if the institution is eligible for assistance under title III or title V;; (D) in paragraph (6)— (i) by inserting who demonstrate exceptional need (as defined in section 413C(c)(2)) after students; and (ii) by inserting and prioritize employment for students who are currently homeless individuals described in section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a) or foster care youth after institution; (E) in paragraph (7), by striking vocational and inserting career; (F) in paragraph (8)(A)(i), by striking or vocational goals and inserting career goals; (G) in paragraph (10), by striking; and and inserting a semicolon; (H) by redesignating paragraph (11) as paragraph (15); and (I) by inserting after paragraph (10) the following new paragraphs: (11) provide an assurance that compensation of students employed in the work-study program in accordance with the agreement shall include reimbursement for reasonable travel (not including the purchase or lease of a vehicle) directly related to the work-study program; (12) provide an assurance that the institution will administer and use feedback from the surveys required under section 449A to improve the experiences of students employed in the work-study program in accordance with the agreement; (13) provide an assurance that the institution will collect data from students and employers so that the employment made available from funds provided under this part will, to the maximum extent practicable, complement and reinforce the educational goals or career goals of each student receiving assistance under this part; (14) provide an assurance that if the institution receives funds under section 442(a)(1)(A), the institution shall— (A) use the funds to compensate students employed in the work-study program in accordance with the agreement; and (B) prioritize the awarding of the funds (and increasing the amount of each award) to students— (i) who demonstrate exceptional need (as defined in section 413C(c)(2)); and (ii) who are employed in work-based learning opportunities through the work-study program in accordance with the agreement; and; (2) in subsection (c)— (A) by amending paragraph (2) to read as follows: (2) provide that— (A) in the case of an institution that has not received a waiver from the Secretary, such institution will not use more than 25 percent of the funds made available to such institution under this part for any fiscal year for the operation of the program described in paragraph (1); and (B) in the case of an institution that has received a waiver from the Secretary, the institution will not use more than 50 percent of the funds made available to the institution under this part for any fiscal year for the operation of the program described in paragraph (1);; (B) in paragraph (4)— (i) by inserting and complement and reinforce the educational goals or career goals of each student receiving assistance under this part after academically relevant; and (ii) by striking and at the end; (C) in paragraph (5), by striking the period at the end and inserting; and; and (D) by adding at the end the following: (6) provide an assurance that the compensation of students employed in the work-study program in accordance with the agreement shall include reimbursement for reasonable travel (not including the purchase or lease of a vehicle) directly related to such work-study program.; (3) in subsection (d)(1)— (A) by striking In any academic year to which subsection (b)(2)(A) applies, an institution shall ensure that funds granted to such institution under this section are used in accordance with such subsection and inserting An institution may use the funds granted to such institution under this section; and (B) by striking travel and inserting reasonable travel (not including the purchase or lease of a vehicle); and (4) by adding at the end the following: (f) Qualified period of nonenrollment (1) In general A student may be awarded work-study employment during a qualified period of nonenrollment if— (A) the student demonstrates exceptional need (as defined in section 413C(c)(2)) in the award year prior to the qualified period of nonenrollment; (B) the student is employed in a work-based learning position; and (C) the employment— (i) involves less than 25 percent administrative work; and (ii) is for at least 20 hours per week, unless the institution waives that requirement— (I) at the request of the student; or (II) based on a finding by the institution that the requirement presents a hardship in finding a work-based learning position for the student. (2) Funds earned (A) In general Any funds earned by a student (beyond standard living expenses (as such term is described in section 413D(c)(3)(C))) during the qualified period of nonenrollment less than or equal to $2,500 may not be applied to the student’s cost of attendance for the next period in which the student is enrolled. (B) Excess funds Any funds earned by a student (beyond standard living expenses (as such term is described in section 413D(c)(3)(C))) during the qualified period of nonenrollment in excess of $2,500 shall be applied to the student’s cost of attendance for the next period in which the student is enrolled. (3) Definition of qualified period of nonenrollment In this subsection, the term qualified period of nonenrollment means, with respect to a student, a period of nonenrollment— (A) that occurs between a period of enrollment and a period of anticipated enrollment; and (B) the duration of which is no longer than 6 months. (g) Cooperative education (1) In general A student may be awarded work-study employment for participation in cooperative education on— (A) a part-time basis; or (B) a full-time basis for a period equal to or less than 6 months. (2) Private agreements for cooperative education As part of its agreement described in subsection (b), an institution of higher education may, at its option, enter into an additional agreement with the Secretary that provides for the operation by the institution of a program of cooperative education of its students (on the basis described in subparagraph (A) or (B) of paragraph (1)) by a private for-profit organization under an agreement between the institution and the organization that complies with subsection (c). (3) Full-time basis period The period specified in paragraph (1)(B) may be non-consecutive and include participation during qualified periods of nonenrollment (as defined in subsection (f)(3)). (4) Cooperative education defined In this subsection, the term cooperative education means a program of alternating or parallel periods of academic study and work-based learning designed to give students work experiences related to their academic or career objectives. (h) Notification regarding SNAP (1) In general (A) Notification An institution receiving a grant under this part shall notify (by email or other electronic means) each eligible student of their potential eligibility for participation in the Supplemental Nutritional Assistance Program (SNAP) under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) and the process for obtaining more information, confirming eligibility, and accessing benefits under that program. (B) Development The notice under this paragraph shall be developed by the Secretary in consultation with the Secretary of Agriculture, and shall include details on eligibility requirements for participation in SNAP that a student must satisfy. (C) Requirements The notice under this paragraph shall, to the extent practicable, be specific to the student’s State of residence and shall provide contact information for the local office where an application for SNAP may be made. (2) Evidence of participation in federally financed work-study program The notice under paragraph (1) shall include an official document notifying the recipient that they are potentially an eligible student sufficient for purposes of demonstrating that the exclusion from ineligibility for participation in the SNAP under section 6(e)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(e)(4)) applies to the student. (3) Guidance The Secretary of Education, in consultation with the Secretary of Agriculture, shall provide guidance to States and institutions of higher education on how to identify and communicate with students who are likely to be eligible for the SNAP, including those eligible for a State or federally financed work-study program. (4) Definitions As used in this subsection, the term eligible student means a student receiving work-study assistance under this part..