,,ii #aafth ,,congress #ast ,session ,h4 ,r4 #ecfc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #aj1 #bjai,received ,,an ,,act ,to reauthorize mandatory funding programs for historically ,black colleges and universities and other minority-serving institutions1 and for other purposes4 #a4 ,short title2 references ,this ,act may be cited as the ,fostering ,undergraduate ,talent by ,unlocking ,resources for ,education ,act or the ,,future ,act4 #b4 ,continued support for minority-serving institutions ,section #cga7;b77#a77;,a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajfgq7b77#a77;,a77 is amended by striking for each of the fiscal years #bjjh through #bjai4 and all that follows through the end of the subparagraph and inserting for fiscal year #bjbj and each fiscal year thereafter44 #c4 ,secure disclosure of tax-return information to carry out the ,higher ,education ,act of #aife 7a7 ,in general ,paragraph 7#ac7 of section #fajc7l7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#ac7 ,disclosure of return information to carry out the ,higher ,education ,act of #aife 7,a7 ,applications and recertifications for income-contingent or income-based repayment ,the ,secretary shall1 upon written request from the ,secretary of ,education1 disclose to any authorized person1 only for the purpose of 7and to the extent necessary in7 determining eligibility for1 or repayment obligations under1 income-contingent or income-based repayment plans under title ,,iv of the ,higher ,education ,act of #aife with respect to loans under part ,d of such title1 the following return information from returns 7for any taxable year specified by the ,secretary of ,education as relevant to such purpose7 of an individual certified by the ,secretary of ,education as having provided approval under section #did7;a77#b7 of such ,act 7as in effect on the date of enactment of this paragraph7 for such disclosure3 7i7 ,taxpayer identity information4 7ii7 ,filing status4 7iii7 ,adjusted gross income4 7iv7 ,total number of exemptions claimed1 if applicable4 7v7 ,number of dependents taken into account in determining the credit allowed under section #bd4 7vi7 ,if applicable1 the fact that there was no return filed4 7,b7 ,discharge of loan based on total and permanent disability ,the ,secretary shall1 upon written request from the ,secretary of ,education1 disclose to any authorized person1 only for the purpose of 7and to the extent necessary in7 monitoring and reinstating loans under title ,,iv of the ,higher ,education ,act of #aife that were discharged based on a total and permanent disability 7within the meaning of section #dcg7;a7 of such ,act71 the following return information from returns 7for any taxable year specified by the ,secretary of ,education as relevant to such purpose7 of an individual certified by the ,secretary of ,education as having provided approval under section #did7;a77#c7 of such ,act 7as in effect on the date of enactment of this paragraph7 for such disclosure3 7i7 ,the return information described in clauses 7i71 7ii71 and 7vi7 of subparagraph 7,a74 7ii7 ,the return information described in subparagraph 7,c77ii74 7,c7 ,federal student financial aid ,the ,secretary shall1 upon written request from the ,secretary of ,education1 disclose to any authorized person1 only for the purpose of 7and to the extent necessary in7 determining eligibility for1 and amount of1 ,federal student financial aid under a program authorized under subpart #a of part ,a1 part ,c1 or part ,d of title ,,iv of the ,higher ,education ,act of #aife the following return information from returns 7for the taxable year used for purposes of section #dhj7;a7 of such ,act7 of an individual certified by the ,secretary of ,education as having provided approval under section #did7;a77#a7 of such ,act 7as in effect on the date of enactment of this paragraph7 for such disclosure3 7i7 ,return information described in clauses 7i7 through 7vi7 of subparagraph 7,a74 7ii7 ,the amount of any net earnings from self-employment 7as defined in section #adjb7;a771 wages 7as defined in section #caba7;a7 or #cdja7;a771 and taxable income from a farming business 7as defined in section #bcf;,a7e77#d774 7iii7 ,amount of total income tax4 7iv7 ,amount of any credit allowed under section #be;,a4 7v7 ,amount of individual retirement account distributions not included in adjusted gross income4 7vi7 ,amount of individual retirement account contributions and payments to self-employed ,,sep1 ,keogh1 and other qualified plans which were deducted from income4 7vii7 ,amount of tax-exempt interest received4 7viii7 ,amounts from retirement pensions and annuities not included in adjusted gross income4 7ix7 ,if applicable1 the fact that any of the following schedules 7or equivalent successor schedules7 were filed with the return3 7,i7 ,schedule ,a4 7,,ii7 ,schedule ,b4 7,,iii7 ,schedule ,d4 7,,iv7 ,schedule ,e4 7,v7 ,schedule ,f4 7,,vi7 ,schedule ,h4 7x7 ,if applicable1 the amount reported on ,schedule ,c 7or an equivalent successor schedule7 as net profit or loss4 7,d7 ,additional uses of disclosed information 7i7 ,in general ,in addition to the purposes for which information is disclosed under subparagraphs 7,a71 7,b71 and 7,c71 return information so disclosed may be used by an authorized person1 with respect to income-contingent or income-based repayment plans1 awards of ,federal student financial aid under a program authorized under subpart #a of part ,a1 part ,c1 or part ,d of title ,,iv of the ,higher ,education ,act of #aife1 and discharges of loans based on a total and permanent disability 7within the meaning of section #dcg7;a7 of such ,act71 for purposes of-- 7,i7 reducing the net cost of improper payments under such plans1 relating to such awards1 or relating to such discharges1 7,,ii7 oversight activities by the ,office of ,inspector ,general of the ,department of ,education as authorized by the ,inspector ,general ,act of #aigh1 and 7,,iii7 conducting analyses and forecasts for estimating costs related to such plans1 awards1 or discharges4 7ii7 ,limitation ,the purposes described in clause 7i7 shall not include the conduct of criminal investigations or prosecutions4 7iii7 ,redisclosure to institutions of higher education1 ,state higher education agencies1 and designated scholarship organizations ,authorized persons may redisclose return information received under subparagraph 7,c71 solely for the use in the application1 award1 and administration of financial aid awarded by the ,federal government or awarded by a person described in subclause 7,i71 7,,ii71 or 7,,iii71 to the following persons3 7,i7 ,an institution of higher education participating in a program under subpart #a of part ,a1 part ,c1 or part ,d of title ,,iv of the ,higher ,education ,act of #aife4 7,,ii7 ,a ,state higher education agency4 7,,iii7 ,a scholarship organization which is an entity designated 7prior to the date of the enactment of this clause7 by the ,secretary of ,education under section #dhc7;a77#c77;,e7 of such ,act4 ,this clause shall only apply to the extent that the taxpayer with respect to whom the return information relates provides written consent for such redisclosure to the ,secretary of ,education4 7,e7 ,authorized person ,for purposes of this paragraph1 the term authorized person means1 with respect to information disclosed under subparagraph 7,a71 7,b71 or 7,c71 any person who-- 7i7 is an officer1 employee1 or contractor1 of the ,department of ,education1 and 7ii7 is specifically authorized and designated by the ,secretary of ,education for purposes of such subparagraph 7applied separately with respect to each such subparagraph74 7,f7 ,joint returns ,in the case of a joint return1 any disclosure authorized under subparagraph 7,a71 7,b71 or 7,c7 with respect to an individual shall be treated for purposes of this paragraph as applying with respect to the taxpayer4 4 7b7 ,confidentiality of return information ,section #fajc7;a77#c7 of such ,code is amended by inserting 1 7#ac7 after 7#ab74 7c7 ,conforming amendments 7#a7 ,section #fajc7p77#c77;,a7 of such ,code is amended by striking 7#ac74 7#b7 ,section #fajc7p77#d7 of such ,code is amended by inserting 1 7#ac7 after 7l77#aj7 each place it appears4 7d7 ,effective date ,the amendments made by this section shall apply to disclosures after the date of the enactment of this ,act4 7e7 ,requirement ,to designate the ,inspector ,general of the ,department of ,education as an authorized person ,the ,secretary of ,education shall authorize and designate the ,inspector ,general of the ,department of ,education as an authorized person under subparagraph 7,e77ii7 of section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf for purposes of subparagraphs 7,a71 7,b71 and 7,c7 of such section4 7f7 ,report to ,treasury ,the ,secretary of ,education shall annually submit a written report to the ,secretary of the ,treasury-- 7#a7 regarding redisclosures of return information under subparagraph 7,d77iii7 of section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf1 including the number of such redisclosures2 and 7#b7 regarding any unauthorized use1 access1 or disclosure of return information disclosed under such section4 7g7 ,report to ,congress ,the ,secretary of the ,treasury 7or the ,secretary's designee7 shall annually submit a written report to ,congress regarding disclosures under section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf1 including information provided to the ,secretary under subsection 7f74 #d4 ,automatic recertification of income 7a7 ,income-,contingent repayment 7#a7 ,in general ,section #dee7;e7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7e77 is amended by adding at the end the following3 7#h7 ,automatic recertification 7,a7 ,in general ,the ,secretary shall establish and implement1 with respect to any borrower described in subparagraph 7,b71 procedures to-- 7i7 use return information disclosed under section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf1 pursuant to approval provided under section #did1 to determine the repayment obligation of the borrower without further action by the borrower2 7ii7 allow the borrower 7or the spouse of the borrower71 at any time1 to opt out of disclosure under such section #fajc7l77#ac7 and instead provide such information as the ,secretary may require to determine the repayment obligation of the borrower 7or withdraw from the repayment plan under this subsection72 and 7iii7 provide the borrower with an opportunity to update the return information so disclosed before the determination of the repayment obligation of the borrower4 7,b7 ,applicability ,subparagraph 7,a7 shall apply to each borrower of a loan made under this part who1 on or after the date on which the ,secretary establishes procedures under such subparagraph-- 7i7 selects1 or is required to repay such loan pursuant to1 an income-contingent repayment plan2 or 7ii7 recertifies income or family size under such plan4 4 7#b7 ,conforming amendment ,section #dee7;e77#f7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7e77#f77 is amended-- 7,a7 by striking including notification of such borrower and all that follows through that if a borrower and inserting including notification of such borrower1 that if a borrower2 and 7,b7 by striking as determined using the information described in subparagraph 7,a71 or the alternative documentation described in paragraph 7#c74 7b7 ,income-,based repayment ,section #dic;,c7c7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajih;e7c77 is amended-- 7#a7 by striking ,the ,secretary shall establish and inserting the following3 7#a7 ,in general ,the ,secretary shall establish 2 and 7#b7 by striking ,the ,secretary shall consider and inserting the following3 7#b7 ,procedures for eligibility ,the ,secretary shall-- 7,a7 consider 2 7#c7 by striking #dbh;,c7b77#a77;,e74 and inserting the following3 #dbh;,c7b77#a77;,e72 and 7,b7 carry out1 with respect to borrowers of any loan made under part ,d 7other than an excepted ,,plus loan or excepted consolidation loan71 procedures for income-based repayment plans that are equivalent to the procedures carried out under section #dee7;e77#h7 with respect to income-contingent repayment plans4 4 #e4 ,automatic income monitoring procedures after a total and permanent disability discharge ,section #dcg7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg7;a77 is amended by adding at the end the following3 7#c7 ,automatic income monitoring 7,a7 ,in general ,the ,secretary shall establish and implement1 with respect to any borrower described in subparagraph 7,b71 procedures to-- 7i7 use return information disclosed under section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf1 pursuant to approval provided under section #did1 to determine the borrower's continued eligibility for the loan discharge described in subparagraph 7,b72 7ii7 allow the borrower1 at any time1 to opt out of disclosure under such section #fajc7l77#ac7 and instead provide such information as the ,secretary may require to determine the borrower's continued eligibility for such loan discharge2 and 7iii7 provide the borrower with an opportunity to update the return information so disclosed before determination of such borrower's continued eligibility for such loan discharge4 7,b7 ,applicability ,subparagraph 7,a7 shall apply-- 7i7 to each borrower of a loan that is discharged due to the total and permanent disability 7within the meaning of this subsection7 of the borrower2 and 7ii7 during the period beginning on the date on which such loan is so discharged and ending on the first day on which such loan may no longer be reinstated4 4 #f4 ,procedure and requirements for requesting tax return information from the ,internal ,revenue ,service 7a7 ,in general ,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 #did4 ,procedure and requirements for requesting tax return information from the ,internal ,revenue ,service 7a7 ,notification and approval requirements 7#a7 ,federal student financial aid ,in the case of any written or electronic application under section #dhc by an individual for ,federal student financial aid under a program authorized under subpart #a of part ,a1 part ,c1 or part ,d1 the ,secretary1 with respect to such individual and any parent or spouse whose financial information is required to be provided on such application1 shall-- 7,a7 notify such individuals that-- 7i7 if such individuals provide approval under subparagraph 7,b71 the ,secretary will have the authority to request that the ,secretary of the ,treasury disclose return information of such individuals to authorized persons 7as defined in section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf7 for the relevant purposes described in such section2 and 7ii7 the failure to provide such approval for such disclosure will result in the ,secretary being unable to calculate eligibility for such aid to such individual2 and 7,b7 require1 as a condition of eligibility for such aid1 that such individuals affirmatively approve the disclosure described in subparagraph 7,a77i74 7#b7 ,income-contingent and income-based repayment 7,a7 ,new applicants ,in the case of any written or electronic application by an individual for an income-contingent or income-based repayment plan for a loan under part ,d1 the ,secretary1 with respect to such individual and any spouse of such individual1 shall-- 7i7 provide to such individuals the notification described in paragraph 7#a77;,a77i72 7ii7 require1 as a condition of eligibility for such repayment plan1 that such individuals-- 7,i7 affirmatively approve the disclosure described in paragraph 7#a77;,a77i7 and agree that such approval shall serve as an ongoing approval of such disclosure until the date on which the individual elects to opt out of such disclosure under section #dee7;e77#h7 or the equivalent procedures established under section #dic;,c7c77#b77;,b71 as applicable2 or 7,,ii7 provide such information as the ,secretary may require to confirm the eligibility of such individual for such repayment plan4 7,b7 ,recertifications ,with respect to the first written or electronic recertification 7after the date of the enactment of the ,,future ,act7 of an individual's income or family size for purposes of an income-contingent or income-based repayment plan 7entered into before the date of the enactment of the ,,future ,act7 for a loan under part ,d1 the ,secretary1 with respect to such individual and any spouse of such individual1 shall meet the requirements of clauses 7i7 and 7ii7 of subparagraph 7,a7 with respect to such recertification4 7#c7 ,total and permanent disability ,in the case of any written or electronic application by an individual for a discharge of a loan under this title based on total and permanent disability 7within the meaning of section #dcg7;a77 that requires income monitoring1 the ,secretary shall-- 7,a7 provide to such individual the notification described in paragraph 7#a77;,a77i72 and 7,b7 require1 as a condition of eligibility for such discharge1 that such individual-- 7i7 affirmatively approve the disclosure described in paragraph 7#a77;,a77i7 and agree that such approval shall serve as an ongoing approval of such disclosure until the earlier of-- 7,i7 the date on which the individual elects to opt out of such disclosure under section #dcg7;a77#c77;,a72 or 7,,ii7 the first day on which such loan may no longer be reinstated2 or 7ii7 provide such information as the ,secretary may require to confirm the eligibility of such individual for such discharge4 7b7 ,limit on authority ,the ,secretary shall only have authority to request that the ,secretary of the ,treasury disclose return information under section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf with respect to an individual if the ,secretary of ,education has obtained approval under subsection 7a7 for such disclosure4 4 7b7 ,conforming amendment ,section #dhd7q7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajia7q77 is repealed4 #g4 ,increased funding for ,federal ,pell ,grants ,section #dja7;b77#g77;,a77iv7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj;a7b77#g77;,a77iv77 is amended-- 7#a7 in subclause 7,x71 by striking #a1dcj1jjj1jjj and inserting #a1dee1jjj1jjj2 and 7#b7 in subclause 7,,xi71 by striking #a1ade1jjj1jjj and inserting #a1agj1jjj1jjj4 #h4 ,reports on implementation 7a7 ,in general ,not later than each specified date1 the ,secretary of ,education and the ,secretary of the ,treasury shall issue joint reports to the ,committees on ,health1 ,education1 ,labor1 and ,pensions and ,finance of the ,senate and the ,committees on ,education and ,labor and ,ways and ,means of the ,house of ,representatives regarding the amendments made by this ,act4 ,each such report shall include1 as applicable-- 7#a7 an update on the status of implementation of the amendments made by this ,act2 7#b7 an evaluation of how such implementation had affected the processing of applications for ,federal student financial aid1 applications for income-based repayment and income-contingent repayment1 and applications for discharge of loans under title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq47 based on total and permanent disability2 and 7#c7 implementation issues and suggestions for potential improvements4 7b7 ,specified date ,for purposes of subsection 7a71 the term specified date means-- 7#a7 the date that is #ij days after the date of the enactment of this ,act2 7#b7 the date that is #abj days after the first day that the disclosure process established under section #fajc7l77#ac7 of the ,internal ,revenue ,code of #aihf1 as amended by section #c7;a7 of this ,act1 is operational and accessible to officers1 employees1 and contractors of the ,department of ,education 7as specifically authorized and designated by the ,secretary of ,education72 and 7#c7 the date that is #a year after the report date described in paragraph 7#b74 ,passed the ,house of ,representatives ,december #aj1 #bjai4;,cheryl ,l4 ,johnson1,clerk