States accepting grants would waive eligible students’ community college tuition and fees

Participating states and eligible Tribal colleges would use federal grants to charge eligible community college students $0 for tuition and fees. Students must attend at least half time in an eligible undergraduate program, meet the local tuition rule, and stay within six covered semesters. Dual-enrollment and early-college students are excluded. U.S. citizens must file the federal student-aid application. Recipients must apply and may not add their own student eligibility rules. States must maintain specified higher-education funding, align high school graduation with college entry, and improve transfer routes; eligible Tribal colleges are exempt from state-only requirements. Higher unemployment can provide requested relief from state matching and spending rules. The measure would set aside whatever sums are needed beginning in fiscal year 2027. For states, the federal formula share would fall from 100% in 2027–2028 to 80% in 2031–2032 and later, while the state share rises from 0% to 20%.

The Secretary would award Student Success Fund grants for approved plans to improve student outcomes. Only states and Tribal colleges receiving the tuition grants could apply. Plans serving underserved students, such as low-income students, students with disabilities, and student parents, would receive priority. Recipients must provide nonfederal matching money equal to 25% of the grant in years one through four, 50% in years five and six, 75% in years seven and eight, and 100% after that. The Secretary may change or waive the match for Tribal colleges. Recipients may use no more than 5% for administration and may not fund endowments, athletics, religious instruction, worship, or specified recruitment contracts. The measure would set aside $1 billion for fiscal year 2027 and each later fiscal year, with the money available until spent.

The Secretary would award grants to qualifying historically Black colleges, Tribal colleges, and other colleges recognized for serving specific racial or ethnic groups to reduce eligible students’ tuition and fees. A participating college must be a public or nonprofit four-year school with at least 35% low-income students. Students must have low incomes, attend at least half time, and stay within 60 credits and six semesters of aid. Colleges must use evidence-backed reforms and set goals for student results. Colleges seeking transfer-related grants must guarantee statewide transfers of community college credits and associate degrees. During the first year, tuition increases may not exceed the highest annual increase used during the previous five years. If funding is short, awards may be reduced or distributed another equitable way. Funding would start at $98.1 million in fiscal year 2027 and rise to about $2.522 billion for fiscal year 2036 and each later year.