,i #aafth ,,congress #ast ,session ,h4 ,r4 #dhea ,,in ,,the ,,house ,,of ,,representatives ,october #bc1 #bjai,ms4 ,stefanik 7for herself and ,mr4 ,keller7 introduced the following bill2 which was referred to the ,committee on ,education and ,labor ,a ,,bill ,to amend the ,higher ,education ,act of #aife to carry out a ,state workforce incentive program4 #a4 ,short title ,this ,act may be cited as the ,state ,workforce ,incentive ,act4 #b4 ,state workforce incentive program ,part ,g of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhh et seq47 is amended by adding at the end the following3 #dic;,e4 ,state workforce incentive program 7a7 ,purpose ,the purpose of this section is to support the workforce in ,state-determined high-need or public-service occupations1 and to encourage individuals to pursue and maintain employment in such occupations through annual incentive payments towards their eligible ,federal loans4 7b7 ,allotment and allocations of credits for reducing ,federal loan debt 7#a7 ,in general ,from the amount appropriated under subsection 7e71 the ,secretary shall annually allot1 in accordance with paragraph 7#b71 loan repayment credits to each ,state with an approved ,state implementation plan1 which may be allocated to eligible borrowers in such ,state for the purpose of reducing the amount owed on the eligible ,federal loans of such borrowers4 7#b7 ,allotment of loan repayment credits to ,states 7,a7 ,in general ,each ,state with an approved ,state implementation plan shall receive an allotment of loan repayment credits on ,july #a of each year1 as follows3 7i7 #j4ej of the amount appropriated under subsection 7e7 shall be allotted on the basis of the relative population of the ,state1 compared to the total population in all ,states with an approved ,state implementation plan4 7ii7 #j4be of the amount appropriated under subsection 7e7 shall be allotted on the basis of the relative amount of individuals in poverty in the ,state1 compared to the total amount of individuals in poverty in all ,states with an approved ,state implementation plan4 7iii7 #j4be of the amount appropriated under subsection 7e7 shall be allotted on the basis of the relative excess number of individuals in poverty in the ,state1 compared to total excess number of individuals in poverty in all ,states with an approved ,state implementation plan4 7,b7 ,definitions ,for purposes of this paragraph3 7i7 ,individuals in poverty ,the term individuals in poverty means the number of individuals who are living below #ajj percent of the poverty line4 7ii7 ,excess number ,the term excess number1 when used with respect to the excess number of individuals in poverty in a ,state1 means the number that represents the number of individuals in poverty in the ,state in excess of #h percent of the total number of individuals in the ,state for whom the poverty status is determined4 7,c7 ,carryover of loan repayment credits ,any loan repayment credits allotted to a ,state and not obligated to a borrower during the award year during which such credits were allotted shall-- 7i7 be retained by the ,state during the period covered by the ,state plan2 and 7ii7 may be allocated by the ,state to a borrower at any point during such period4 7#c7 ,mandatory funds for fiscal year #bjba ,for fiscal year #bjba1 there shall be available to the ,secretary1 from funds not otherwise appropriated1 funds to be obligated to ,states receiving an allotment under this section for administrative costs under this section not to exceed #ej1jjj1jjj4 7c7 ,state implementation plan 7#a7 ,in general ,to be eligible for an allotment of loan repayment credits under this section1 a ,state shall submit to the ,secretary a ,state implementation plan every #e years4 7#b7 ,contents ,each ,state implementation plan shall cover a period of #e award years and include the following3 7,a7 ,the ,state entity responsible for administering the program under this section4 7,b7 ,a description of how the ,state will identify the workforce and public service needs 7as defined by the ,state7 to be addressed through the program1 including descriptions of how the ,state-- 7i7 will use ,state1 regional1 or local labor market data to determine workforce needs2 7ii7 will consider particular occupations that support the economic development of rural and underserved communities 7which may include farmers71 as determined by the ,state2 7iii7 will determine the occupations for which borrowers shall be eligible to receive loan repayment credits2 7iv7 will determine the amount of loan repayment credits to be annually allocated to borrowers in each occupation determined under clause 7iii72 and 7v7 will project the total amount of loan repayment credits to be awarded annually to borrowers eligible for such credits1 and use this projection to ensure the ,state has been allotted sufficient loan repayment credits to meet the ,state's obligations under clauses 7iii7 and 7iv74 7,c7 ,a description of how the ,state will administer the program under this section1 including descriptions of-- 7i7 how the ,state will promote such program1 and publicly announce to the general public in the ,state the list of eligible occupations and the annual amount of loan repayment credits to be awarded for such occupations during the period covered by the plan2 7ii7 the borrower-friendly application process for borrowers to apply to the ,state for loan repayment credits2 7iii7 the process the ,state will use to verify the ,state-determined eligibility factors of each applicant and how such application will be seamlessly submitted under subsection 7d77#a77;,c7 to the ,secretary for ,federal verification of the ,state's determination of the amount of loan repayment credits to be allocated2 and 7iv7 how the ,state will determine if the ,state has sufficient loan repayment credits to add occupations to the list of eligible occupations or increase the amount of loan repayment credits to be awarded to borrowers in eligible occupations1 and how the ,state will inform the general public in the ,state of such changes4 7,d7 ,an assurance that following the public release of the ,state determined eligible occupations and loan repayment credit amounts1 such occupations and credit amounts will not be reduced or become unavailable for allocation to borrowers eligible for such credits in the ,state for the period covered by the plan4 7,e7 ,an assurance that the ,state will comply with subsection 7d77#b77;,c7 to use non-,federal funds to provide the full ,state-determined amount of loan repayment credits in accordance with such subsection4 7,f7 ,an assurance that no borrower will receive more than #aj1jjj in loan repayment credits for an award year4 7#c7 ,plan approval ,the ,secretary shall approve a plan submitted under this section that meets the requirements of paragraph 7#b74 7d7 ,borrower application process 7#a7 ,state requirements ,each ,state receiving an allotment of loan repayment credits under this section shall-- 7,a7 upon receipt of approval of the ,state's plan under subsection 7c77#c71 carry out the announcement and promotion requirements described in subsection 7c77#b77;,c77i72 7,b7 require each borrower seeking such credits to submit an application to the ,state at such time1 in such manner1 and containing such information as may be required by such ,state2 and 7,c7 upon ,state verification of eligibility of a borrower for an allocation of loan repayment credits 7including employment in an eligible occupation and the application requirements under subparagraph 7,b771 the ,state shall submit to the ,secretary-- 7i7 the application of the borrower2 and 7ii7 a determination of the number of such credits that should be allocated to the borrower4 7#b7 ,secretary approval 7,a7 ,full amount 7i7 ,in general ,subject to subparagraphs 7,b7 and 7,c71 upon a determination that a borrower meets the requirements of clause 7ii71 the ,secretary shall cancel an amount equal to the amount of credits allocated to the borrower under paragraph 7#a77;,c77ii7 of the outstanding balance of principal or interest on the eligible ,federal loans of such borrower4 7ii7 ,borrower requirements ,a borrower meets the requirements of this clause if the borrower-- 7,i7 has entered repayment on any eligible ,federal loan and such loans are less than #ij days delinquent2 7,,ii7 whose total number of loan repayment credits under this section has resulted in the cancellation of less than #ej1jjj on the borrower's eligible ,federal loans2 and 7,,iii7 earned an adjusted gross income of less than #abj1jjj during the prior calendar year4 7,b7 ,partial amount 7i7 ,in general ,in the case of a borrower whose allocation amount under subparagraph 7,a7 would result in the borrower receiving greater than a total of #ej1jjj in loan repayment credits under the program under this section1 the ,secretary shall cancel an amount described in clause 7ii7 of the outstanding balance on the eligible ,federal loans of the borrower4 7ii7 ,amount ,the amount described in this clause is an amount that would result in the borrower receiving a total of #ej1jjj in loan cancellation under this section4 7,c7 ,insufficient credits ,in the case of a ,state that does not have a sufficient allotment of loan repayment credits to allocate the number of credits to a borrower in an amount determined under paragraph 7#a77;,c77ii7 for such borrower1 the ,secretary shall1 with respect to the outstanding balance of the borrower's eligible ,federal loans-- 7i7 cancel an amount equal to the amount of such credits that are remaining in the ,state's allotment2 and 7ii7 notify the ,state of its obligation to use non-,federal funds to cancel an amount equal to the difference between the allocation amount determined for the borrower and the amount cancelled under clause 7i74 7e7 ,funding ,there are authorized to be appropriated1 and there are appropriated to carry out this section 7in addition to any other amounts appropriated to carry out this section and out of any money in the ,treasury not otherwise appropriated7-- 7#a7 for each of the first and second award years that begin on or after the date of enactment of the ,state ,workforce ,incentive ,act1 an amount equal to #j4ja of the loans made under part ,d and first disbursed during the preceding award year2 7#b7 for each of the third and fourth award years that begin after the date of enactment of the ,state ,workforce ,incentive ,act1 an amount equal to #j4jb of the loans made under part ,d and first disbursed during the preceding award year2 7#c7 for each of the fifth and sixth award years that begin after the date of enactment of the ,state ,workforce ,incentive ,act1 an amount equal to #j4jc of the loans made under part ,d and first disbursed during the preceding award year2 and 7#d7 for the seventh award year that begins after the date of enactment of the ,state ,workforce ,incentive ,act and each succeeding award year1 an amount equal to #j4jd of the loans made under part ,d and first disbursed during the preceding award year4 7f7 ,definitions ,in this section3 7#a7 ,loan repayment credit ,the term loan repayment credit means a credit for the outstanding balance of principal or interest on eligible ,federal loans that shall be cancelled on such loans1 at the rate of #a credit equals #a of such principal or interest4 7#b7 ,eligible ,federal loan ,the term eligible ,federal loan means a loan made under part ,d1 other than-- 7,a7 a ,federal ,direct ,,plus ,loan made on behalf of a dependent student2 or 7,b7 a ,federal ,consolidation ,loan1 if the proceeds of such loan were used to discharge the liability on a loan described in subparagraph 7,a74 4 #c4 ,sunset of public service loan forgiveness ,section #dee7m7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7m77 is amended by adding at the end the following3 7#e7 ,sunset ,the ,secretary shall not have the authority to cancel under this subsection the obligation to repay the balance of principal and interest due on the eligible ,federal ,direct ,loans made under this part to a new borrower on or after ,july #a1 #bjbj4 4