,,ii  #aah? ,,congress  #b;d ,session   
,s4 #dach  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,april #ag1 #bjbd,mr4  
,b5net 7= himself & ,mr4 ,rubio7        
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,heal?1 ,education1 ,labor1 & ,p5sions  
,a ,,bill  ,to e/abli% an alt]native1   
outcomes-bas$ process = au?oriz+        
innovative1 high-quality high] education
 provid]s to p>ticipate 9 programs "u   
title ,,iv ( ! ,high] ,education ,act ( 
#aife4  #a4 ,%ort title ,?is ,act may be
 cit$ z ! ,high] ,education ,innovation 
,act4  #b4 ,alt]native au?orization     
sy/em ,"p ,h ( title ,,iv ( ! ,high]    
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajii;a et seq47 is am5d$ by add+ at !  
end ! foll[+3  #d ,alt]native           
au?orization sy/em  #dih;,c4 ,alt]native
 au?orization sy/em  7a7 ,def9itions ,9 
?is section3 7#a7 ,innovation au?oriz]  
,! t]m innovation au?oriz] or au?oriz]  
means an entity t has be5 approv$ by !  
,secret>y to c>ry out au?orization (    

eligible entities4  7#b7 ,eligible      
entity ,! t]m eligible entity means an  
in/itution ( high] education or ano!r   
entity t-- 7,a7 promotes & supports     
/ud5t success outcomes &                
co/-effectiv5ess 9 po/second>y          
education2  7,b7 provides an educational
 program-- 7i7 t leads to a degree or   
c]tificate2  7ii7 ( c\rse bundles2 or   
7iii7 t leads to an indu/ry-recogniz$   
cr$5tial t meets ! requirem5ts = lic5s+ 
9 ! relevant field2  7,c7 agrees to     
specifi$ outcome-bas$ ov]sight & report+
 requirem5ts describ$ 9 ?is section2    
7,d7 demon/rates t ! entity provides    
high-quality education by meet+ or      
exce$+ ! m9imum ?re%olds = ea* ( !      
p]=mance metrics t are requir$ by !     
innovation au?oriz] 9 accordance )      
subsection 7b7 & :i* are develop$ 9     
accordance ) subsection 7d72  7,e7 meets
 ! def9ition ( an in/itution ( high]    
education "u section #aja or #ajb1      
except t ! entity ne$ n meet !          
requirem5ts describ$ 9-- 7i7 section    

#aja7;a77#e72  7ii7 section             
#ajb7;b77#a77;,a77ii77,,ii72 or  7iii7  
section #ajb7;b77#a77;,d72 &  7,f7 meets
 ! o!r requirem5ts = p>ticipation 9 ?is 
title4  7#c7 ,tea*-out plan ,! t]m      
tea*-out plan means a writt5 plan t     
provides = ! equitable treatm5t ( /ud5ts
 if an eligible entity ceases to op]ate 
be=e all /ud5ts h complet$ _! program ( 
/udy1 & may include1 if requir$ by !    
,secret>y1 an agreem5t betwe5 eligible  
entities or betwe5 an eligible entity & 
ano!r in/itution = su* a tea*-out plan4 
7#d7 ,c\rse bundle ,! t]m c\rse bundle  
means a s]ies ( c\rses1 or ! equival5t1 
t lead to-- 7,a7 pr(ici5cy 9 a set (    
m>ketable skills or compet5cies2 or     
7,b7 an indu/ry-recogniz$ cr$5tial t    
meets ! requirem5ts = lic5s+ 9 !        
relevant field4  7#e7 ,completion ,! t]m
 completion means-- 7,a7 9 ! case ( a   
c\rse bundle-- 7i7 completion ( a s]ies 
( c\rses-- 7,i7 t lead to pr(ici5cy 9 a 
set ( m>ketable skills or compet5cies2  
or  7,,ii7 t result 9 an                

indu/ry-recogniz$ cr$5tial t meets !    
requirem5ts = lic5s+ 9 ! relevant field2
 or  7ii7 successful completion ( a set 
( assessm5ts-- 7,i7 t demon/rates       
pr(ici5cy 9 a set ( m>ketable skills or 
compet5cies2 or  7,,ii7 t results 9 an  
indu/ry-recogniz$ cr$5tial t meets !    
requirem5ts = lic5s+ 9 ! relevant field2
 &  7,b7 9 ! case ( a program lead+ to a
 c]tificate or degree1 receipt ( !      
c]tificate or degree4  7b7 ,approval (  
innovation au?oriz]s  7#a7 ,9 g5]al ,!  
,secret>y %all e/abli% a process =      
approv+ innovation au?oriz]s to c>ry out
 ! au?orization ( eligible entities4    
7#b7 ,reque/ = applications ,n lat] ?an 
#bge days aft] ! date ( enactm5t ( ?is  
subp>t1 ! ,secret>y %all publi% a reque/
 = applications f entities t desire to  
become innovation au?oriz]s4 ,any       
accr$it+ ag5cy or association curr5tly  
recogniz$ by ! ,secret>y or any entity n
 curr5tly recogniz$ by ! ,secret>y may  
apply to be approv$ z innovation        
au?oriz]s4  7#c7 ,application           

,requirem5ts ,an entity t desires to be 
approv$ by ! ,secret>y z an innovation  
au?oriz] "u p>agraph 7#a7 %all submit an
 application to ! ,secret>y t includes !
 foll[+ in=mation3 7,a7 ,in=mation on ! 
entity's prior exp]i5ce z an au?oriz]1  
accr$itor1 programmatic accr$itor1 or   
indu/ry validator1 or /rong evid5ce &   
hi/ory t demon/rates ! entity is equipp$
 to be a high-quality au?oriz]4  7,b7   
,an explanation ( :y ! entity is        
qualifi$ & capable ( be+ an innovation  
au?oriz]1 accompani$ by support+        
docum5tation4  7,c7 ,evid5ce t ! entity 
is f9ancially able to meet ! requirem5ts
 = au?oriz+ eligible entities1 includ+ !
 requirem5ts "u p>agraph 7#g74  7,d7 ,a 
description ( ! process t ! entity w use
 = aw>d+ au?orization1 & susp5d+ or     
revok+ an eligible entity's             
au?orization1 includ+-- 7i7 ! p]=mance  
metrics ! au?oriz] w use 9 mak+         
det]m9ations ab\t au?orization1 :i* %all
 meet ! requirem5ts describ$ "u         
subsection 7d72  7ii7 ! m9imum ?re%old =

 ea* p]=mance metric describ$ 9 clause  
7i71 :i* %all require an eligible entity
 to meet or exce$ ! #fj?-p]c5tile /ud5t 
outcome = ea* su* p]=mance metric 9 ord]
 to be aw>d$ au?orization by !          
innovation au?oriz]2  7iii7 any o!r     
crit]ia or metrics t ! entity w use z an
 innovation au?oriz] to aw>d            
au?orization /atus to an eligible       
entity1 if applicable2 &  7iv7 ! process
 =-- 7,i7 monitor+ au?oriz$ eligible    
entities1 ensur+ t ea* eligible entity  
cont9ues to meet ! crit]ia =            
au?orization 7includ+ ! ?re%old = ea*   
applicable p]=mance metric z describ$ 9 
clause 7ii772 &  7,,ii7 ensur+ !        
accuracy & validity ( data4  7,e7 ,a    
description ( ! entity's area (         
educational or subject matt] focus1 if  
applicable4  7,f7 ,! composition or     
memb]%ip ( ! entity t seeks to become an
 innovation au?oriz]1 & ! entity's      
relation%ip or "w ) applicable indu/ries
 & bus9esses4  7,g7 ,a demon/ration t ! 
entity has-- 7i7 cle> & effective       

controls to protect aga9/ conflicts (   
int]e/1 or ! appe>ance ( conflicts (    
int]e/1 betwe5 ! entity t wi%es to be an
 innovation au?oriz] & eligible entities
 7includ+ controls reg>d+ pot5tial      
conflicts ( int]e/ betwe5 bo>d memb]s1  
commission]s1 evaluation team memb]s1   
consultants1 adm9i/rative /aff1 & o!r   
repres5tatives ( ! entity t wi%es to be 
an au?oriz] & eligible entities72 &     
7ii7 requirem5ts to ensure t1 z an      
au?oriz]1 ! entity & ! /aff1 &          
repres5tatives ( ! entity w be sep>ate &
 indep5d5t 7z def9$ 9 section #dif7;b771
 bo? adm9i/ratively & f9ancially1 f any 
eligible entities & w receive no b5efit1
 f9ancial or o!rwise1 f au?oriz+ an     
eligible entity4  7,h7 ,an agreem5t t ! 
entity w make applicable au?orization   
data1 docum5ts1 & det]m9ations publicly 
available4  7#d7 ,dissem9ation (        
in=mation ,= ! purpose ( det]m9+ m9imum 
?re%olds = p]=mance metrics "u p>agraph 
7#c77;,d77ii7 & subsection 7d77#a77;,b71
 ! ,secret>y %all-- 7,a7 dissem9ate to  

innovation au?oriz]s1 on an annual      
basis1 in=mation ab\t #fj?-p]c5tile     
/ud5t outcomes on ! p]=mance crit]ia    
describ$ "u subsection 7d71 9 !         
aggregate = all /ud5ts & disaggregat$ by
 /ud5t income qu>tile & field ( /udy2 & 
7,b7 provide ! in=mation describ$ 9     
subp>agraph 7,a7 to an innovation       
au?oriz] or an entity t wi%es to apply  
to become an innovation au?oriz] ^u     
reque/4  7#e7 ,limitation1 ,susp5sion1  
or t]m9ation ( au?oriz] approval  7,a7  
,notice & opportunity = correction ,if !
 ,secret>y det]m9es t an innovation     
au?oriz] has fail$ to apply &           
effectively en=ce ! p]=mance crit]ia1   
includ+ ! m9imum ?re%olds = su* crit]ia1
 specifi$ 9 ! innovation au?oriz]'s     
application "u p>agraph 7#c7 9 aw>d+1   
monitor+1 & revok+ au?orization /atus = 
eligible entities1 ! ,secret>y %all     
provide notice to ! innovation au?oriz] 
& give ! innovation au?oriz] a #f-mon?  
p]iod to apply & en=ce ! p]=mance       
crit]ia & m9imum ?re%olds describ$ 9 !  

innovation au?oriz]'s application "u    
p>agraph 7#c74  7,b7 ,limitation1       
susp5sion1 or t]m9ation ,if1 aft] !     
#f-mon? p]iod describ$ 9 subp>agraph    
7,a71 ! ,secret>y det]m9es t an         
innovation au?oriz] has /ill fail$ to   
effectively en=ce ! p]=mance crit]ia &  
m9imum ?re%olds specifi$ 9 t innovation 
au?oriz]'s application "u p>agraph 7#c71
 ! ,secret>y %all limit1 susp5d1 or     
t]m9ate ! recognition ( t innovation    
au?oriz]4  7#f7 ,loss ( au?oriz]        
approval ,9 ! case ( an eligible entity 
au?oriz$ by an innovation au?oriz] ^:   
recognition has be5 limit$1 susp5d$1 or 
t]m9at$ by ! ,secret>y-- 7,a7 if !      
eligible entity successfully demon/rates
 to ! ,secret>y t ! eligible entity     
meets ! p]=mance crit]ia & m9imum       
?re%olds t su* au?oriz] specifi$ 9 its  
application "u p>agraph 7#c71 ! eligible
 entity %all h #f mon?s to apply =      
accr$itation by ano!r accr$it+ ag5cy or 
association or au?orization by ano!r    
innovation au?oriz]2 or  7,b7 ! eligible

 entity %all prep>e a tea*-out plan t   
meets ! ,secret>y's regulations =       
tea*-out plans & %all submit su* plan to
 ! ,secret>y4  7#g7 ,au?oriz] risk %>+  
,ea* innovation au?oriz] %all ent] into 
an agreem5t ) ! ,secret>y :]eby !       
innovation au?oriz] agrees to pay !     
,secret>y an am\nt equal to n less ?an  
#be p]c5t ( ! am\nt ( ,f$]al /ud5t loans
 t are held by curr5t & =m] /ud5ts ( any
 eligible entity au?oriz$ by !          
innovation au?oriz] "u subsection 7d7 & 
t are 9 default ea* fiscal ye>4  7c7    
,eligibility = f$]al pell grant fund+   
,eligible entities t are au?oriz$ by an 
innovation au?oriz] %all be eligible to 
receive ,f$]al ,pell ,grant fund+ 9     
accordance ) subsection 7f74  7d7       
,au?orization by an innovation au?oriz] 
7#a7 ,au?orization process  7,a7 ,9     
,g5]al ,an innovation au?oriz] may      
au?orize an eligible entity1 if-- 7i7 t 
eligible entity meets ! crit]ia "u      
subsection 7a77#b72 &  7ii7 9 ! case (--
 7,i7 an eligible entity t has n c>ri$  

out an educational program = m ?an #b   
ye>s1 ! eligible entity agrees to1 &    
describes a high-quality1 evid5ce-bas$  
plan to1 meet )9 #b ye>s ! specific     
p]=mance metrics & m9imum ?re%olds      
requir$ by ! innovation au?oriz] 9      
accordance ) subsection 7b77#c77;,d72 & 
7,,ii7 an eligible entity t has c>ri$   
out an educational program = m ?an #b   
ye>s1 ! eligible entity demon/rates t ! 
eligible entity meets ! specific        
p]=mance metrics & m9imum ?re%olds      
requir$ by ! innovation au?oriz] 9      
accordance ) subsection 7b77#c77;,d74   
7,b7 ,p]=mance metrics  7i7 ,9 ,g5]al ,9
 accordance ) subp>agraph 7,c71 ea*     
innovation au?oriz] %all-- 7,i7 use1 9  
ord] to det]m9e :e!r to aw>d            
au?orization to an eligible entity1 n   
less ?an-- 7aa7 #a p]=mance metric      
relat+ to /ud5t le>n+1 z describ$ 9     
clause 7ii72  7bb7 ! p]=mance metric    
relat+ to completion1 z describ$ 9      
clause 7iii72 &  7cc7 #b p]=mance       
metrics relat+ to ! b5efit to ! /ud5t & 

af=dability1 z describ$ 9 clause 7iv72  
7,,ii7 e/abli% ! m9imum ?re%olds = ea*  
p]=mance metric t ! eligible entity mu/ 
meet or exce$ 9 ord] to be au?oriz$ by !
 au?oriz] 9 accordance ) subsection     
7b77#c77;,d77ii71 ensur+ t ea* m9imum   
?re%old meets or exce$s ! #fj?-p]c5tile 
/ud5t outcome = ! p]=mance metric2 &    
7,,iii7 9 ! det]m9ation ab\t :e!r an    
eligible entity meets ! requir$ ?re%old 
= au?orization = ea* p]=mance metric1   
include data f all /ud5ts :o enroll 9 ! 
eligible entity4  7ii7 ,/ud5t le>n+ ,!  
p]=mance metrics relat+ to /ud5t le>n+  
are ! foll[+3 7,i7 ,a nationally def9$1 
demon/rat$1 objective1 & v]ifiable      
measure ( /ud5t le>n+1 includ+ a measure
 ( ! k or skills ga9$ by ! /ud5t f !    
educational program or in/itution4      
7,,ii7 ,demon/rat$ quality bas$ on an   
evaluation conduct$ by an indep5d5t     
evaluator t uses evaluation crit]ia     
approv$ by ! ,:at ,works ,cle>+h\se ( ! 
,in/itute ( ,education ,sci5ces & %[s   
/ati/ically significant increases 9     

/ud5t le>n+4  7,,iii7 ,pass rates &     
ov]all scores on qualify+ or lic5s+     
exam9ations4  7iii7 ,completion  7,i7 ,9
 ,g5]al ,! p]=mance metric relat+ to    
completion is ! p]c5tage ( all /ud5ts :o
 complete ! educational program & ea*   
program ( /udy 9-- 7aa7 #ajj p]c5t ( !  
normal "t = completion ( ea* program (  
/udy2  7bb7 #aej p]c5t ( ! normal "t =  
completion ( ea* program ( /udy2 &  7cc7
 #bjj p]c5t ( ! normal "t = completion (
 ea* program ( /udy4  7,,ii7 ,transf]   
/ud5ts ,9 det]m9+ ! p]c5tage "u         
subclause 7,i71 an eligible entity may  
include ! /ud5ts 9 ea* program ( /udy :o
 transf] & successfully complete a      
program ( /udy4  7iv7 ,b5efit to /ud5t &
 af=dability ,! p]=mance metrics relat+ 
to b5efit to ! /ud5t & af=dability are !
 foll[+3 7,i7 ,rates ( employm5t or     
enrollm5t 9 & completion ( graduate or  
pr(essional s*ool4  7,,ii7 ,increases 9 
income = /ud5ts4  7,,iii7 ,! co/ (      
tuition & fees1 ! net price disaggregat$
 by income qu9tile & educational        

program1 & ! m$ian total loan debt      
accru$ by /ud5ts :o 7 enroll$ 9 !       
eligible entity4  7,,iv7 ,/ud5t loan    
repaym5t rates = ,f$]al & private /ud5t 
loans1 if applicable4  7,v7 ,m$ian      
income ( /ud5ts :o 7 enroll$ 9 !        
eligible entity4  7,c7 ,data s\rce ,:5  
an innovation au?oriz] uses data ab\t   
income or employm5t1 z describ$ 9       
subp>agraph 7,b77iv71 ! foll[+          
provisions %all apply3 7i7 ,! innovation
 au?oriz] %all use wage data ga!r$ 9    
accordance ) clauses 7iii7 & 7iv7 & %all
 disaggregate su* data 7except t su*    
disaggregation %all n be requir$ 9 a    
case 9 :i* ! results w\ld reveal        
p]sonally id5tifiable in=mation ab\t an 
individual /ud5t71 by-- 7,i7 educational
 program bas$ on ! ,classification (    
,in/ructional ,programs ,code develop$  
by ! ,national ,c5t] = ,education       
,/ati/ics2  7,,ii7 cr$5tial receiv$2    
7,,iii7 noncomplet]s2  7,,iv7 eligible  
entity2 &  7,v7 ,/ate & region (        
employm5t4  7ii7 ,! innovation au?oriz] 

%all include data =-- 7,i7 #a ye> aft]  
educational program completion2  7,,ii7 
#c ye>s aft] educational program        
completion2 &  7,,iii7 #e ye>s aft]     
educational program completion4  7iii7  
,not)/&+ any o!r provision ( law1 !     
,secret>y1 9 coop]ation ) ! ,commission]
 ( ,social ,security1 & ea* eligible    
entity ^: wage data w be evaluat$ 9     
accordance ) subp>agraph 7,b77iv7 %all  
e/abli% a sy/em ?r\gh :i* relevant data 
may be retriev$ f ! ,social ,security   
,adm9i/ration1 includ+ data on m$ian    
annual e>n+s & employm5t metrics4  7iv7 
,! ,secret>y1 innovation au?oriz]s1 &   
eligible entities %all n %>e p]sonally  
id5tifiable in=mation ( a /ud5t 9 c>ry+ 
out ?is subp>agraph1 except z necess>y  
to enable individuals :o are employ$ by 
! ,dep>tm5t to meet ! report+           
requirem5ts & data dissem9ation purposes
 & requirem5ts "u ?is ,act4  7,d7       
,transp>5cy ,not)/&+ ! specific p]=mance
 metrics us$ by any specific au?oriz]1  
ea* au?oriz$ eligible entity %all make  

public & disaggregate in=mation on all (
 ! metrics describ$ "u subp>agraph 7,b7 
= ! eligible entity z a :ole & = ea*    
educational program ( ! eligible entity1
 z applicable4  7#b7 ,r5ew+ au?orization
 ,an innovation au?oriz] %all require   
ea* eligible entity t has be5 au?oriz$  
by ! innovation au?oriz] to h ! eligible
 entity's au?orization r5ew$ n lat] ?an 
#b ye>s aft] ! eligible entity is fir/  
au?oriz$1 & n lat] ?an e #e ye>s        
!reaft]4  7#c7 ,loss ( au?orization     
7,a7 ,9 g5]al ,an innovation au?oriz]   
%all remove an eligible entity f        
au?oriz$ /atus if1 = #b consecutive     
cal5d> ye>s1 t eligible entity falls    
bel[ ! m9imum ?re%old = any p]=mance    
metric requir$ = au?orization by !      
innovation au?oriz] 9 accordance )      
subsection 7b77#c77;,d74  7,b7 ,petition
 to rega9 au?orization ,an eligible     
entity t is remov$ f au?oriz$ /atus may 
petition an innovation au?oriz] to rega9
 au?orization by demon/rat+ to !        
innovation au?oriz] t ! eligible entity 

is ensur+ quality & /ud5t success & has 
met1 & w cont9ue to meet1 ! m9imum      
?re%olds = ea* p]=mance metric requir$ =
 au?orization by ! innovation au?oriz] 9
 accordance ) subsection 7b77#c77;,d74  
7#d7 ,accr$itation deem$ ,au?orization  
by an innovation au?oriz] approv$ by !  
,secret>y "u ?is section %all be deem$  
recogniz$ accr$itation = purposes (     
title ,,iv4  7e7 ,accr$itation &        
au?orization2 *ang+ accr$itors or       
au?oriz]s  7#a7 ,accr$itation &         
au?orization ,an eligible entity t      
o!rwise meets ! requirem5ts =           
au?orization by an innovation au?oriz] &
 ! requirem5ts = accr$itation by a      
recogniz$ accr$it+ ag5cy or association 
may hold accr$itation & au?orization f  
bo? entities4  7#b7 ,*ang+ accr$itors or
 au?oriz]s ,an eligible entity t o!rwise
 meets ! relevant requirem5ts =         
accr$itation or au?orization may notify 
! ,secret>y & *ange accr$itation or     
au?orization /atus-- 7,a7 f an          
innovation au?oriz] to a recogniz$      

accr$it+ ag5cy or association2 or  7,b7 
f a recogniz$ accr$it+ ag5cy or         
association to an innovation au?oriz]4  
7f7 ,eligibility = ,f$]al pell grant    
fund+  7#a7 ,au?oriz] ,f$]al ,pell      
,grant fund+ requirem5ts  7,a7          
,aggregate innovation au?oriz] ,f$]al   
,pell ,grant cap  7i7 ,individual       
au?oriz] cap ,! ,secret>y %all det]m9e1 
9 accordance ) subp>agraph 7,b7 = ea*   
aw>d ye> & = ea* innovation au?oriz]1 ! 
total maximum am\nt ( ,f$]al ,pell      
,grant funds t all eligible entities t  
are au?oriz$ by a giv5 innovation       
au?oriz] may receive ?r\gh tuition & fee
 paym5ts f enroll$ /ud5ts :o receive a  
,f$]al ,pell ,grant4  7ii7 ,aggregate   
au?oriz] cap ,! ,secret>y %all det]m9e  
ea* innovation au?oriz] ,f$]al ,pell    
,grant cap1 z describ$ 9 clause 7i71 9 a
 mann] t ensures t ! aggregate am\nt (  
,f$]al ,pell ,grant funds t all eligible
 entities au?oriz$ by all innovation    
au?oriz]s receive ea* ye> does n exce$  
#j4e p]c5t ( total ,f$]al ,pell ,grant  

fund+ = ! previ\s aw>d ye>4  7,b7       
,individual innovation au?oriz] ,f$]al  
pell grant cap ,! ,secret>y %all det]m9e
 ea* innovation au?oriz]'s cap "u       
subp>agraph 7,a77i7 bas$ on-- 7i7 !     
au?oriz]'s exp]i5ce & track record (    
aw>d+ au?orization to eligible entities2
 &  7ii7 ! p]=mance crit]ia & m9imum    
?re%olds t ! au?oriz] uses 9 det]m9+    
:e!r to aw>d au?orization to eligible   
entities1 z specifi$ 9 subsection       
7b77#c77;,d74  7#b7 ,eligible entity    
,f$]al ,pell ,grant fund+ requirem5ts   
7,a7 ,9 g5]al ,an eligible entity t is  
au?oriz$ by an innovation au?oriz] 9    
accordance ) ?is section is eligible to 
receive ,f$]al ,pell ,grant funds 9     
accordance ) subp>agraphs 7,b71 7,c71 & 
7,d74  7,b7 ,eligible entity total cap  
on f$]al pell grant fund+ ,ea* aw>d ye>1
 an eligible entity describ$ 9          
subp>agraph 7,a7 w be eligible to       
receive 7?r\gh tuition & fee paym5ts f  
enroll$ /ud5ts7 a maximum total am\nt ( 
,f$]al ,pell ,grant fund+ t-- 7i7 %all  

be det]m9$ by ! innovation au?oriz]2    
7ii7 %all be det]m9$ 9 a mann] s z to   
ensure t ! innovation au?oriz] does n   
exce$ ! innovation au?oriz]'s ,f$]al    
,pell ,grant cap2  7iii7 %all be bas$ on
 ! eligible entity's hi/ory & track     
record ( meet+ or exce$+ ! relevant     
p]=mance metrics m9imum ?re%olds2 &     
7iv7 %all n exce$ #ae p]c5t ( total     
,f$]al ,pell ,grant fund+ = eligible    
entities au?oriz$ by ! innovation       
au?oriz] = ! previ\s aw>d ye>4  7,c7    
,f$]al ,pell ,grant allocations  7i7    
,full ,f$]al pell grant ,an eligible    
entity au?oriz$ by an innovation        
au?oriz] t provides validat$            
docum5tation f an indep5d5t evaluator t 
! eligible entity has met or exce$$ !   
m9imum ?re%olds = ea* ( ! au?oriz]'s    
p]=mance metrics = at lea/ #e           
consecutive ye>s %all be eligible to    
receive up to ! full am\nt ( ,f$]al     
,pell ,grant fund+ t ea* enroll$ /ud5t  
is eligible to receive1 subject to ! cap
 describ$ 9 subp>agraph 7,b74  7ii7     

#ej-p]c5t reimbursem5t ,f$]al pell grant
 ,an eligible entity au?oriz$ by an     
innovation au?oriz] t provides validat$ 
docum5tation f an indep5d5t evaluator t 
! eligible entity has met or exce$$ !   
m9imum ?re%olds = ea* ( ! au?oriz]'s    
p]=mance metrics = at lea/ #c           
consecutive ye>s b less ?an #e          
consecutive ye>s & has be5 det]m9$ by   
su* au?oriz] to h a /rong evid5ce basis 
= cont9u+ to annually meet su* m9imum   
?re%olds = ea* p]=mance metric %all be  
eligible = a pay = p]=mance contract ) !
 foll[+ t]ms3 7,i7 ,! eligible entity   
%all be eligible to receive up to #ej   
p]c5t ( ! am\nt ( ,f$]al ,pell ,grant   
fund+ t ea* enroll$ /ud5t is eligible to
 receive1 subject to ! cap describ$ 9   
subp>agraph 7,b74  7,,ii7 ,! eligible   
entity %all provide a bond or mat*+     
funds to pay = ! rema9+ #ej p]c5t ( !   
am\nt ( ,f$]al ,pell ,grant fund+ t ea* 
enroll$ /ud5t is o!rwise eligible to    
receive4  7,,iii7 ,! ,secret>y %all     
reimburse ! eligible entity = an am\nt  

equal to ! am\nt t ! eligible entity    
provid$ "u subclause 7,,ii7 = ea*       
enroll$ /ud5t1 except t su* am\nt may n 
exce$ ! rema9+ co/ ( tuition & fees =   
ea* /ud5t-- 7aa7 = :om ! eligible entity
 provid$ mat*+ funds z describ$ 9       
subclause 7,,ii72 &  7bb7 :o            
successfully completes ! educational    
program4  7iii7 #ge-p]c5t reimbursem5t  
,f$]al pell grant ,an eligible entity   
au?oriz$ by an innovation au?oriz] t    
provides validat$ docum5tation f an     
indep5d5t evaluator t ! eligible entity 
has met or exce$$ ! m9imum ?re%olds =   
ea* ( ! au?oriz]'s p]=mance metrics = at
 lea/ #a ye> b less ?an #c consecutive  
ye>s & has be5 det]m9$ by su* au?oriz]  
to h a /rong evid5ce basis = cont9u+ to 
annually meet su* m9imum ?re%olds = ea* 
p]=mance metric %all be eligible = a pay
 = p]=mance contract ) ! foll[+ t]ms3   
7,i7 ,! eligible entity %all be eligible
 to receive up to #be p]c5t ( ! am\nt ( 
,f$]al ,pell ,grant fund+ t ea* enroll$ 
/ud5t is eligible to receive1 subject to

 ! cap describ$ 9 subp>agraph 7,b74     
7,,ii7 ,! eligible entity %all provide--
 7aa7 a bond = #be p]c5t ( ! am\nt (    
,f$]al ,pell ,grant fund+ t ea* enroll$ 
/ud5t is o!rwise eligible to receive2 & 
7bb7 a bond or mat*+ funds = ! rema9+   
#ge p]c5t ( ! am\nt ( ,f$]al ,pell      
,grant fund+ t ea* enroll$ /ud5t is     
o!rwise eligible to receive4  7,,iii7   
,if ! eligible entity meets ! m9imum    
?re%olds = ea* ( ! au?oriz]'s p]=mance  
metrics = #b consecutive ye>s aft] !    
date ( ! pay = p]=mance contract1 !     
,secret>y %all reimburse ! eligible     
entity = an am\nt equal to ! am\nt t !  
eligible entity provid$ "u subclause    
7,,ii77bb7 = ea* enroll$ /ud5t1 except t
 su* am\nt may n exce$ ! rema9+ co/ (   
tuition & fees = ea* /ud5t-- 7aa7 = :om 
! eligible entity provid$ mat*+ funds z 
describ$ 9 subclause 7,,ii77bb72 &  7bb7
 :o successfully completes ! educational
 program4  7,,iv7 ,if ! eligible entity 
fails to meet ! m9imum ?re%olds = ea* ( 
! au?oriz]'s p]=mance crit]ia = #b      

consecutive ye>s aft] ! date ( !        
contract1 ! eligible entity %all        
reimburse ! ,f$]al ,gov]nm5t 9 an am\nt 
equal to ! am\nt describ$ 9 subclause   
7,i74  7iv7 #ajj-p]c5t reimbursem5t     
,f$]al pell grant ,an eligible entity t 
has no track record ( meet+1 exce$+1 or 
fail+ to meet ! m9imum ?re%olds = ea* ( 
! au?oriz]'s p]=mance metrics1 & t has  
be5 det]m9$ by an innovation au?oriz] to
 h a /rong & rigor\s evid5ce base       
demon/rat+ an ability to consi/5tly &   
annually meet or exce$ ! m9imum ?re%olds
 = ea* ( ! p]=mance metrics ( t         
innovation au?oriz] %all be eligible = a
 pay = p]=mance contract ) ! foll[+     
t]ms3 7,i7 ,! eligible entity %all      
provide funds equal to #ajj p]c5t ( !   
am\nt ( ,f$]al ,pell ,grant fund+ t ea* 
enroll$ /ud5t is o!rwise eligible to    
receive4  7,,ii7 ,if ! eligible entity  
meets ! m9imum ?re%olds = ea* ( !       
au?oriz]'s p]=mance metrics = #b        
consecutive ye>s aft] ! date ( ! pay =  
p]=mance contract1 ! ,secret>y %all     

reimburse ! eligible entity = an am\nt  
equal to ! am\nt t ! eligible entity    
provid$ "u subclause 7,i7 = ea* enroll$ 
/ud5t1 except t su* am\nt may n exce$ ! 
rema9+ co/ ( tuition & fees = ea*       
/ud5t-- 7aa7 = :om ! eligible entity    
provid$ funds z describ$ 9 subclause    
7,i72 &  7bb7 :o successfully completes 
! educational program4  7,d7 ,f$]al pell
 grant am\nt treat$ z paym5t ,not)/&+ ! 
actual am\nt ( ,f$]al ,pell ,grant fund+
 t an eligible entity receives 7:i*1 9  
accordance ) subp>agraphs 7,b7 & 7,c71  
may n be ! full am\nt ( ,f$]al ,pell    
,grant fund+ t ea* enroll$ /ud5t :o is  
eligible = a ,f$]al ,pell ,grant is     
eligible to receive71 an eligible       
entity-- 7i7 %all treat ea* /ud5t z hav+
 paid ! total am\nt ( ,f$]al ,pell      
,grant fund+ = :i* ! /ud5t is eligible2 
7ii7 %all n *>ge /ud5ts additional      
tuition or fees to comp5sate = any am\nt
 ( ,f$]al ,pell ,grant fund+ = :i* !    
eligible entity-- 7,i7 mu/ provide a    
bond or mat*+ funds or = :i* ! eligible 

entity o!rwise mu/ wait = reimbursem5t  
"u subp>agraph 7,c72 or  7,,ii7 may fail
 to receive due to a cap describ$ "u    
subp>agraph 7,b72 &  7iii7 %all n *>ge a
 high] am\nt ( tuition or fees to a     
/ud5t :o is eligible = a ,f$]al ,pell   
,grant4  7,e7 ,rule ( con/ruction ,no?+ 
9 subp>agraph 7,d7 %all be con/ru$ z    
prohibit+ an eligible entity f r$uc+ !  
am\nt ( tuition & fees ! eligible entity
 *>ges to a /ud5t :o is eligible = a    
,f$]al ,pell ,grant bas$ on /ud5t ne$4  
7,f7 ,/ud5ts exce$+ cap ,an eligible    
entity may elect to enroll /ud5ts ^:    
collective eligibility = ,f$]al ,pell   
,grants w\ld o!rwise result 9 ! eligible
 entity exce$+ ! cap "u subp>agraph 7,b7
 b su* eligible entity %all comply )    
subp>agraph 7,d74  7#c7 ,f$]al ,pell    
,grant eligibility = /ud5ts  7,a7 ,9    
,g5]al ,a /ud5t may receive a ,f$]al    
,pell ,grant & use fund+ f su* grant to 
att5d an eligible entity or a program ( 
an eligible entity t is au?oriz$ by an  
innovation au?oriz] "u ?is subp>t if !  

/ud5t meets ! o!r requirem5ts = receiv+ 
a ,f$]al ,pell ,grant1 z describ$ 9     
section #dja4  7,b7 ,eligibility p]iod  
,= ! purpose ( calculat+ a /ud5t's      
rema9+ p]iod ( eligibility = ,f$]al     
,pell ,grant fund+ "u section #dja1 !   
,secret>y %all consid] only ,f$]al ,pell
 ,grant fund+ actually paid to an       
eligible entity on behalf ( ! /ud5t1 9  
accordance ) subp>agraphs 7,b7 & 7,c7 ( 
p>agraph 7#b74  7g7 ,access to title    
,,iv fund+  7#a7 ,cont9uation ( title   
,,iv eligibility ,an in/itution ( high] 
education t 0 eligible to p>ticipate 91 
& receive fund+ "u1 ?is title prior to  
seek+ & ga9+ au?orization "u ?is section
 may petition ! ,secret>y to cont9ue to 
be eligible to receive loans made "u ?is
 title if ! in/itution is an eligible   
entity describ$ "u clause 7i7 or 7ii7 ( 
subsection 7f77#b77;,c74  7#b7          
,recomm5dations ,n lat] ?an #b ye>s aft]
 ! date ( enactm5t ( ?is subp>t1 !      
,secret>y1 9 consultation ) innovation  
au?oriz]s1 eligible entities1 &         

/akehold]s1 %all make recomm5dations to 
,congress reg>d+ a process = provid+ all
 eligible entities ) access to loans    
made "u ?is title4  7h7 ,reports  7#a7  
,reports f au?oriz$ eligible entities to
 innovation au?oriz]s ,ea* eligible     
entity t is au?oriz$ by an innovation   
au?oriz] %all prep>e & submit an annual 
report to ! innovation au?oriz] conta9+ 
su* in=mation z t innovation au?oriz]   
may require4  7#b7 ,reports f innovation
 au?oriz]s to ! ,secret>y ,ea*          
innovation au?oriz] %all prep>e & submit
 an annual report to ! ,secret>y conta9+
 su* in=mation z ! ,secret>y may        
require4  4  #c4 ,t]m9ation (           
appropriations ,no funds %all be        
au?oriz$ to c>ry out ?is ,act1 includ+ !
 am5dm5ts made by ?is ,act1 #e ye>s aft]
 ! date ( enactm5t ( ?is ,act4  #d4     
,t]m9ation ( au?orization ,subp>t #d (  
"p ,h ( title ,,iv ( ! ,high] ,education
 ,act ( #aife1 z add$ by section #b1    
%all expire on ! date t is #e ye>s aft] 
! date ( enactm5t ( ?is ,act4