H.R. 5532

119th CONGRESS 1st Session

To direct the Secretary of Education to establish a program to facilitate the transition to tuition-free community college in certain States, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES · September 19, 2025 · Sponsor: Mr. Smith of Washington

H.R. 5532

TITLE I

Sec. 101. Tuition-free community college grant and support program

(a) In general
- The Secretary shall establish a program to provide grants to each State that submits a complete application under subsection (b) to—
  - facilitate tuition-free community college for eligible students;
  - award subgrants to eligible institutions for the improvement of the capacity of institutions to provide supportive services; and
  - award subgrants to eligible institutions for the provision of direct grants to student to address non-tuition costs to meet the growing demand from employers for workers with postsecondary credentials.
(b) Application
- To be eligible for a grant under this section, a State shall submit to the Secretary an application in such form, at such time, and containing such information as the Secretary determines appropriate, including a State plan describing the following:
- (1) Interagency committee
  - (A) In general
    - A plan to formalize an interagency committee within such State to—
      - (i) evaluate gaps and opportunities in the State workforce, higher education, childcare, and human services systems; and
      - (ii) maximize Federal and State resources to support pathway development that increases economic mobility and recognized postsecondary credential attainment.
  - (B) Membership
    - An assurance that such committee shall consist of members from the following entities:
      - (i) State unemployment insurance agency.
      - (ii) Office of the State higher education executive officer and public college boards.
      - (iii) State community college system.
      - (iv) State departments of health and human services.
      - (v) State departments of economic development.
      - (vi) Workforce development agencies.
      - (vii) State or local housing authorities.
      - (viii) Students enrolled in community colleges in the State.
      - (ix) Other relevant State agencies as determined by the State.
- (2) Education alignment
  - A plan to—
    - with respect to eligible individuals without a secondary school diploma or its recognized equivalent, facilitate the completion of such diploma or recognized equivalent at a community college;
    - ensure that credits received for Advanced Placement or International Baccalaureate classes are applied to an equivalent community college course; and
    - otherwise align the requirements between secondary schools and community colleges in order to increase the accessibility of community college for eligible individuals.
- (3) Development
  - A plan to—
    - improve career pathway development, with special attention to career pathways related to in-demand industry sectors or occupations identified under paragraph (14);
    - increase economic mobility of State residents; and
    - provide access to affordable postsecondary education for State residents through a network of coordinated State and Federal support systems designed and implemented by State agencies in partnership with public institutions of higher education and public higher education systems.
- (4) Credential attainment
  - A plan to prioritize secondary and recognized postsecondary credential attainment through—
    - integrated education and training models;
    - dual enrollment programs; and
    - an increased number of navigators.
- (5) Priority
  - A plan to prioritize assistance to individuals—
    - with a barrier to employment;
    - with incomes below 200 percent of the poverty level; or
    - without a recognized postsecondary credential.
- (6) Public resources
  - A plan to maximize public resources to support the attainment of a recognized postsecondary credential, including with respect to—
    - transportation;
    - on-campus or off-campus housing;
    - childcare;
    - food assistance; and
    - other support programs.
- (7) Outreach
  - A plan to reach eligible individuals without a recognized postsecondary credential, including with respect to individuals who—
    - live in high-poverty areas;
    - are first-generation students;
    - are low-income students; and
    - identify as belonging to other underrepresented student groups.
- (8) Recognized postsecondary credential enrollment, persistence, retention and completion
  - A plan to increase enrollment, persistence, retention, and credential completion by—
    - developing new, or expanding existing, degree and credential programs based on the needs of in-demand industry sectors or occupations identified under paragraph (14);
    - increasing the number of career counselors and navigators;
    - ensuring that eligible students enrolled in community colleges—
      - (i) are not charged tuition or fees; and
      - (ii) are not required to apply Federal, State, or private financial assistance (including scholarships) to pay for the cost of tuition or fees; and
    - ensuring that the eligibility of an eligible student enrolled in community college for a Federal Pell Grant under subpart 1 of title IV of the Higher Education Act of 1965 () or other financial assistance is not affected by funds provided under this Act or private scholarship awards unless the total amount of such student’s Federal Pell Grant, other financial assistance, and private scholarships exceeds the student’s annual cost of attendance. 20 U.S.C. 1070a et seq.
- (9) Cost analyses
  - Cost analyses for—
    - providing tuition-free community and technical college pathways to individuals who have not attained—
      - (i) a secondary school diploma or its recognized equivalent; or
      - (ii) a recognized postsecondary credential, up to and including a bachelor’s degree; and
    - expanding institutional capacity to meet an increased demand for recognized postsecondary credentials by expanding supportive services, including with respect to hiring additional—
      - (i) career counselors;
      - (ii) navigators; and
      - (iii) other support staff.
- (10) Data collection
  - (A) In general
    - A plan for data collection efforts to measure program outcomes and evaluate program success, including by leveraging existing administrative data to track any change in participation in recognized postsecondary credential programs at community colleges.
  - (B) Content
    - An assurance that the State that awards subgrants under this title will collect the following data:
      - (i) With respect to each public institution of higher education—
      - the number and percentage of students receiving emergency aid; and
      - the average grant amount for each student.
      - (ii) With respect to each semester or quarter at a public institution of higher education—
      - rate of retention; and
      - rate of completion of a recognized secondary credential.
      - (iii) The grade point averages of students receiving emergency aid subgrants.
      - (iv) Other data reported by the State.
      - (v) Other data required by the Secretary.
- (11) Data sharing
  - A State shall—
    - provide an interagency data-sharing agreement that facilitates statewide data collection efforts between—
      - (i) State agencies that oversee the dispersal of State and Federal benefits;
      - (ii) the State educational agency;
      - (iii) the State higher education system;
      - (iv) the State board; and
      - (v) other agencies determined by the Secretary to be necessary; and
    - detail how such agreement will promote cross-agency collaboration and improve recognized postsecondary credential completion.
- (12) Transfer agreements
  - A description of—
    - transfer agreements between 2-year and 4-year public institutions of higher education in such State; and
    - the ways in which the State will expand the number of transfer agreements, including with respect to the facilitation and improvement of credit transfers between institutions.
- (13) Sustaining funds
  - The State shall describe—
    - the ways in which such State will sustain a tuition-free community college model; and
    - the amount of Federal assistance needed to sustain the model described in subparagraph (A).
- (14) In-demand industry sectors or occupations
  - A plan to—
    - identify in-demand industry sectors or occupations in such State; and
    - develop and provide access to pathways to credential and degree programs for jobs in such industries, giving priority to credential and degree programs that correspond to high-quality jobs in consultation with—
      - (i) the State board;
      - (ii) the State health and human services agency;
      - (iii) the State board of higher education; and
      - (iv) business industry groups within the State.
- (15) Federal programs
  - (A) In general
    - A description of how the State will use amounts under covered programs, to the extent otherwise permitted by law, to reduce eligibility and participation requirement barriers in such programs in order to—
      - (i) treat the pursuit of a recognized postsecondary credential as meeting any compliance, work participation, and core activity requirements for each such program; and
      - (ii) increase access to and completion of recognized postsecondary credential programs.
  - (B) Covered programs defined
    - In this paragraph, the term covered programs means—
      - (i) the temporary assistance for needy families program under part A of title IV of the Social Security Act (); 42 U.S.C. 601
      - (ii) the Supplemental Nutrition Assistance Program Employment and Training Program under section 6 of the Food and Nutrition Act of 2008 (); 7 U.S.C. 2015
      - (iii) the Child Care Development Fund under the Child Care and Development Block Grant Act of 1990 (); and 42 U.S.C. 9858 et seq.
      - (iv) housing assistance programs carried out by the Secretary of Housing and Urban Development.
(c) Grant amounts
- The Secretary shall determine grant amounts under subsection (a) with respect to each State based on the following:
  - Statewide unemployment and underemployment rates that are 1 percentage point above the national average.
  - The number of local educational agencies in a State that elect to receive special assistance payments under section 11(a)(1)(F) of the Richard B. Russell National School Lunch Act (). 42 U.S.C. 1759a(a)(1)(F)
  - A statewide official poverty rate that is 1 percentage point above the national average.
  - As of the date on which the application is submitted under subsection (b), whether the State carries out a tuition-free community college program.
(d) Funds
- (1) Timing
  - A grant under this title shall be awarded for a period of 5 years, of which—
    - a maximum of 1 year may be used for planning; and
    - a minimum of 4 years shall be used for implementation.
- (2) Federal cost share
  - The Federal cost share of facilitating tuition-free community college for eligible students pursuant to a grant awarded under subsection (a) shall be not less than 100 percent for costs incurred during the 5-year grant period described in paragraph (1).
(e) Grant uses
- An eligible State shall use grant funds awarded under this section—
  - to implement the State plan submitted as part of the application under subsection (b), including with respect to data collection and reporting in accordance with paragraph (10) of such subsection; and
  - to award subgrants to—
    - eligible institutions in accordance with section 102; and
    - eligible students in accordance with section 103.
(f) Eligible student defined
- In this section, the term eligible student means an individual who—
  - is at least 18 years of age;
  - does not have a postsecondary credential that is less than a bachelor’s degree; and
  - when used with respect to a State, is a resident of the State.

Sec. 102. Subgrants for institutional capacity and wraparound services

(a) In general
- A State that receives a grant under section 101 shall award subgrants to eligible institutions for institutional capacity and wraparound services.
(b) Application
- An eligible institution seeking a subgrant under this section shall submit to the State an application in such form, at such time, and containing such information as the State may require.
(c) Subgrant uses
- An eligible institution that receives a subgrant under this section shall use such subgrant funds for implementing activities and services that improve retention and completion of recognized postsecondary credentials, including—
  - identifying and addressing the needs of students, including affordable housing, childcare, transportation, and food;
  - supporting the work of navigators, including—
    - providing information to students with respect to eligibility for assistance under other Federal, State, and institutional assistance programs; and
    - connecting students with on-campus and off-campus supportive services;
  - hiring additional staff;
  - increasing access to supportive services by centralizing such services on-campus;
  - offering additional scheduling options for classes with respect to the day, time, and location of such classes;
  - improving the transfer of credits between institutions of higher education, including community colleges;
  - expanding pathways related to in-demand industry sectors or occupations;
  - providing access to technology, including—
    - digital literacy courses;
    - computers;
    - software; and
    - other equipment necessary to attain a recognized postsecondary credential; and
  - partnering with an entity selected by the State to provide technical assistance, including with respect to—
    - carrying out the State plan under section 101;
    - awarding subgrants under section 103;
    - developing reports under section 104;
    - connecting students to public benefits; and
    - carrying out the activities described in paragraphs (1) through (8).
(d) Eligible institution defined
- In this section, the term eligible institution means an institution—
  - located in the State; and
  - that is—
    - a community college that is located in a geographic area that serves local educational agencies that participate, through the community eligibility provision authorized by the Healthy, Hunger-free Kids Act of 2010 ( note et seq.) in— 42 U.S.C. 1758
      - (i) the national school lunch program under the Richard B. Russell National School Lunch Act (); and 42 U.S.C. 1751 et seq.
      - (ii) the school breakfast program under the Child Nutrition Act of 1966 (); 42 U.S.C. 1771 et seq.
    - a community college that is located in geographic areas with 40 percent of the population at or below the Federal poverty line;
    - an institution of higher education with an admission rate of 50 percent or higher; or
    - an institution that is eligible to receive a grant under part A or B of title III or title V of the Higher Education Act of 1965 (), including— 20 U.S.C. 1001 et seq.
      - (i) a historically Black college or university;
      - (ii) a Hispanic-serving institution;
      - (iii) a Tribal college or university;
      - (iv) a minority-serving institution; and
      - (v) a rural-serving institution of higher education.

Sec. 103. Subgrants for emergency aid to students

(a) In general
- A State that receives a grant under section 101 shall award subgrants to eligible students for emergency aid.
(b) Application
- (1) In general
  - An eligible student seeking a subgrant under this section shall submit to the State an application in such form, at such time, and containing such information as the State may require.
- (2) Notification of receipt
  - Upon receipt of an application from an eligible student under paragraph (1), the State shall notify such student of such receipt in a manner to be determined by the State.
- (3) Appeal
  - If an application submitted by an eligible student under paragraph (1) is denied by the State, such student may appeal such denial in a manner to be determined by the State.
(c) Timing
- A subgrant awarded under this section shall be for a period of 5 years.
(d) Contracts
- A State may award a contract to a scholarship-granting organization for purposes of—
  - accepting applications from eligible students under subsection (b)(1); and
  - disbursing subgrant funds to eligible students in accordance with subsection (e)(4).
(e) Funds
- (1) Administration
  - Not more than 20 percent of funds awarded under this section may be used for the administration of emergency aid to eligible students.
- (2) Direct aid
  - Not less than 80 percent of funds awarded under this section shall be used to award emergency aid subgrants to eligible students.
- (3) Subgrant amounts
  - (A) Eligible students without dependents
    - With respect to an academic year, a subgrant awarded to an eligible student that does not have a dependent may not exceed $1,500.
  - (B) Eligible students with dependents
    - With respect to an academic year, a subgrant awarded to an eligible student with a dependent may not exceed $2,500.
- (4) Disbursement of funds
  - An institution shall disburse funds to eligible students in a timely manner, as determined by the State.
- (5) Federal taxes
  - A subgrant under this title may not be considered income for purposes of the Internal Revenue Code of 1986.
(f) Eligible student defined
- In this section, the term eligible student means a student enrolled at a public junior or community college in the applicable State and participating in the tuition-free program pursuant to section 101, without regard to whether such student submits an application under section 483 of the Higher Education Act of 1965 (), who is experiencing financial challenges that may affect the ability of such student to remain enrolled at such college, including— 20 U.S.C. 1090
  - lack of access to or loss of—
    - employment (including a temporary loss of employment);
    - transportation;
    - child care;
    - utilities (including water and electricity); or
    - housing;
  - food insecurity;
  - with respect to a student or the dependent of such student, a medical condition or need, including—
    - pregnancy; and
    - mental health conditions; and
  - with respect to a student who is a dependent—
    - the death of a parent or guardian; or
    - a parent or guardian with a medical condition that results in temporary or permanent loss of employment of such parent or guardian.

Sec. 104. Reports

(a) Annual report
- (1) In general
  - Not later than 1 year after receiving the reports required under subsection (b) for a year, and on an annual basis thereafter, such State shall submit to the Secretary a report describing—
    - the uses of funds under this title;
    - progress made in fulfilling the requirements of the grant;
    - with respect to participating community colleges, rates of—
      - (i) graduation;
      - (ii) persistence;
      - (iii) transfer; and
      - (iv) attainment of recognized postsecondary credentials;
    - the institutional reports submitted under subsection (b);
    - the ways in which the State is communicating with institutions to—
      - (i) understand the barriers of students, with respect to eligibility and access, to public supports; and
      - (ii) use the information described in subparagraph (A) to inform any changes;
    - the ways in which the State human services agency and State board are aligning the policy goals of such agencies with the policy goals of the State higher education agency;
    - changes in access to, and use of, public benefits;
    - changes in employment with respect to in-demand industry sectors and high-quality jobs;
    - changes in rates of unemployment and underemployment;
    - other data as provided by the State; and
    - other data as required by the Secretary.
- (2) Disaggregation
  - The information described in subparagraphs (G) through (K) shall be disaggregated, to the extent practicable, by—
    - race;
    - ethnicity; and
    - income level.
(b) Institution report
- Not later than 1 year after receiving a subgrant under section 102 or 103, and on an annual basis thereafter, an institution shall submit to the State a report describing—
  - the uses of funds;
  - with respect to the period beginning on the date on which a subgrant was received and ending on the date on which the report is submitted, changes in rates of—
    - retention; and
    - graduation;
  - the ways in which such institution increased awareness of, and access to, public supports made available through State agencies; and
  - the ways in which such institution made improvements to tracking data with respect to—
    - the basic needs of students;
    - the financial barriers of students; and
    - the connection of students to public supports.
(c) Public access
- (1) In general
  - Not later than 1 year after the date described in subsection (a)(1) each year, the Secretary shall make the data from the report submitted by each State pursuant to such subsection publicly available and shall include—
    - a dashboard that provides key metrics; and
    - downloadable data sets for each participating State and participating institution.
- (2) Development of metrics
  - In developing or adapting the reporting metrics described in paragraph (1)(A), the Secretary may consult with the Director of the Institute of Education Sciences.

Sec. 105. Definitions

In this title:
- The term business industry group means an organization that represents businesses (including small businesses), individual employers, industry clusters, and individuals from—
- The term community college,junior or community college has the meaning given the term in Section 312 of the Higher Education Act of 1965 (). 20 U.S.C. 1058
- The term eligible State means a State that is a recipient of a grant under section 101.
- The terms and have the meanings given such terms in section 8101 of the Elementary and Secondary Education Act (). secondary school,Secretary 20 U.S.C. 7801
- The term high-quality job means a job that is defined by the interagency committee described in section 101(b)(1).
- The term institution of higher education has the meaning given such term in section 101 of the Higher Education Act of 1965 (). 20 U.S.C. 1001
- The term navigator means an individual who is integrated into the existing community college operation and who works with students to—

Sec. 106. Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out this title for fiscal year 2026 and each of the 4 succeeding fiscal years.