Providing increased Federal Pell Grants and other assistance for recipients of means-tested benefits

(a) Increased amount of maximum Federal Pell Grants for students with negative student aid indexes Section 401(b)(1) (20 U.S.C. 1070a(b)(1)), as amended by section 4 of this Act, is further amended— (1) in subparagraph (A)— (A) in the matter preceding clause (i), by striking A student and inserting Except in the case of a student with a student aid index of less than zero, a student; (B) by striking clause (i); and (C) by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively; (2) in subparagraph (B)— (A) in the matter preceding clause (i), by striking subparagraph (A) for an academic year, and inserting subparagraph (A), or an increased Federal Pell Grant under subparagraph (B), for an academic year,; and (B) in clause (ii), by striking, except that a student aid index of less than zero shall be considered to be zero for the purposes of this clause; (3) in subparagraph (C), by striking subparagraph (A) or (B) and inserting subparagraph (A), (B), or (C); (4) in subparagraph (D), by inserting or an increased Federal Pell Grant under subparagraph (B) after subparagraph (A); (5) in subparagraph (E), by striking or a minimum Federal Pell Grant under subparagraph (C) and inserting an increased Federal Pell Grant under subparagraph (B), or a minimum Federal Pell Grant under subparagraph (D); (6) by redesignating subparagraphs (B) through (F) as subparagraphs (C) through (G), respectively; and (7) by inserting after subparagraph (A) the following: (B) A student with a student aid index of less than zero shall be eligible for a Federal Pell Grant award that exceeds the total maximum Federal Pell Grant by an amount equal to the amount by which the student’s student aid index is less than zero.. (b) Special student aid index rule for recipients of means-Tested benefits Section 473 (20 U.S.C. 1087mm) is amended by adding at the end the following: (d) Special rule for means-Tested benefit recipients Notwithstanding subsection (b), for an applicant (or, as applicable, an applicant and spouse, or an applicant’s parents) who, at any time during the previous 2-year period, received a benefit under a means-tested Federal benefit program, as defined in section 479(b)(4)(H), (or whose parent or spouse received such a benefit, as applicable), the Secretary shall for the purposes of this title consider the student aid index as equal to –$1,500 for the applicant..