HEOA Negreg Team IV, Round One: Discretionary Grants Issues

During the first day of negotiated rulemaking on the Higher Education Opportunity Act, negotiators discussed changes made to the TRIO program by the HEOA. Negotiators will continue the negreg session today and Friday and will discuss changes made to GEAR UP, the High School Equivalency Program (HEP), and the College Assistance Migrant Program (CAMP). The Department developed a list of issues it hopes to address during this negreg session.

The Department's list of issues and some issues raised by negotiators yesterday are listed below.

TRIO

Number of Applications: Branch Campuses and Different Populations

Summary of Issue: Entities applying for grants under most of the TRIO Programs have traditionally been permitted to apply for multiple grants under each program. However, except for the Student Support Services program, the regulations for these programs do not specifically address this issue. The HEOA establishes new requirements for the submission of more than one application by an eligible entity by adding definitions for a "different campus" of an institution of higher education and a "different population". The statute defines "different population" as a population "separate and distinct from other populations" or that "has distinct needs for specialized services." These changes apply to all of the TRIO programs.

Issues Raised by Negotiators

How to treat shared students
Examples of different populations

Definitions

Summary of issue: The HEOA created new definitions for some terms and uses other new terms that may need to be defined through regulations. New terms with a clear statutory definition will need to be reflected at appropriate places in the regulations. Some of the other terms that are new to TRIO may be defined in other parts of the HEOA or other program regulations. There are also terms that the Department needs to define through the regulations. The regulations need to be amended to add or change the terms and definitions.

HEOA terms that are new to the TRIO programs include:

"homeless children and youth" (as defined in section 725 of the McKinney-Vento Homeless Assistance Act) (All programs);
"students in foster care" (All programs);
"regular secondary school diploma" (Talent Search and Upward Bound);
"rigorous secondary school program of study" (see 34 CFR §691.16) (Talent Search and Upward Bound);
"connections to services" (Talent Search);
"financial literacy and economic literacy" (All programs);
"groups traditionally underrepresented in postsecondary education" (All programs);
"disconnected students" (All programs); and
"students who have a high risk of academic failure" (Upward Bound).

Terms with new or revised definitions included in the HEOA:

"different campus" (All programs);
"different population" (All programs);
"veteran eligibility" (All programs); and
"groups underrepresented in graduate education"(McNair).

Terms not currently defined in regulations:

"scholarly and research activities" (McNair);
"summer internships" (McNair);
"youths with potential for education at the postsecondary level" (Talent Search); and
"individual with disabilities" (defined in SSS regulations but not in TS, UB, or EOC regulations)

Issues Raised by Negotiators

Foster youth
- How will need be determined?
- Does the population include individuals who have aged out of the system?
- What assistance is provided to foster youth?

HEOA changes the current Talent Search (TS) required and permissible services

Summary of issue: The HEOA made fundamental changes to the goals and purpose of the Talent Search program. These statutory changes seem to require Talent Search projects to provide more intensive academic interventions as reflected by the changes to the lists of required and permissible Talent Search services and the new program outcome criteria added by the HEOA. The list of Talent Search services and the outcome criteria are now similar to those of the Upward Bound program. The Department needs to determine how these changes to the Talent Search program should be implemented through regulations and what distinctions are or should be made between the Upward Bound and Talent Search programs.

Issues Raised by Negotiators

Will required services increase program per student cost?
- Larger budget or serve fewer students?
Encourage use of institutional resources?
Do required services necessitate a change in staff qualifications?
Scope of required services
Timeframe for degree completion

Outcome Criteria

Summary of issue: The HEOA establishes specific outcome criteria to be used to determine a grantee's prior experience (PE) points and for the purpose of reporting annually to the Congress on program performance. The HEOA does not stipulate the distribution of the PE points among the new outcome criteria for each program. The HEOA does not establish specific outcome criteria for TRIO Training. The Training regulations have not been updated to reflect the current practice of awarding 15 PE points.

Issues Raised by Negotiators

Completion of a rigorous secondary school program of study
- Use ACG definition?
Allow for completion of a two-year program as students' ultimate goal (don't penalize programs for students who do not pursue a four-year degree)
Practicality of tracking students
Define "to the extent practical"
- Balancing flexibility with ED requirement to report outcomes to Congress
- Negotiators agreed to form sub-committee on issue

Foster Care and Homeless Youth

Summary of issue: A new provision added by the HEOA identifies new groups of students that projects can serve, including foster care youth and homeless children and youth. The HEOA clarifies that specific services for foster care and homeless youth are permissible and directs the Secretary, as appropriate, to require applicants for funds under the TRIO Programs to make available services to these youth.

Issues Raised by Negotiators

Aging out of population and impact on services provided (see discussion under Definitions)

Required and Permissible Services

Summary of issue: The HEOA amends the statutory provisions for the TRIO programs providing services to pre-college and college students (Upward Bound, Talent Search, Student Support Services, and McNair). The HEA now lists certain services that projects must provide to participants and optional activities that programs may offer to students. Prior to the new law, except for the Upward Bound statute that required projects funded for two or more years to provide instruction in core subjects, projects could choose from a number of permissible activities/services.

Issues Raised by Negotiators

Financial and economic literacy
- What is included?
- Should there be minimum standards?
- Who provides training (ideally a neutral party)?
Required services
- Does it mean that all students must receive the service, or all students for which service is appropriate?

Updates to TRIO Regulations

Summary of issue: The TRIO program regulations need to be modified to reflect changes made by the HEOA and established administrative practices, including:

updating the selection criteria related to "Objectives" (All programs);
adding to SSS selection criteria a criterion on the applicant's effort to provide sufficient financial aid to meet the student's full need and to maintain the load burden of each student at a manageable level;
adding (or revising) the existing McNair selection criteria to include the "Award Considerations" from the HEA;
updating the allowable and unallowable cost sections of the SSS regulations to address Grant Aid and temporary housing for homeless and foster care youth; and
considering revisions to the regulations on minimum number of participants to be served by TS, EOC, and UB, UBMS, and VUB projects.

Issues Raised by Negotiators

Define underrepresented groups
Committee members indicated a desire to form a sub-committee on TRIO selection criteria, but ED expressed a desire to limit negotiations to HEOA changes
Do regulations need to specify a minimum number of participants?

Review Process for Unsuccessful TRIO Applicants

Summary of issue: The HEOA has established a process for unsuccessful applicants to request a review of the scoring or processing of their applications. Applicants that have evidence that their scores were affected by a specific administrative, technical, or scoring error may request a review by the Secretary. If the Secretary determines that a technical or administrative error was made, the Secretary will arrange for the application to be reconsidered in the peer review process. If the Secretary determines that a scoring error was made, the Secretary may adjust the prior experience points or final score of the application as appropriate. If the Secretary determines that there was an error in the peer review process, the Secretary will refer the application to a second review panel of experienced readers who participated in the field reading but did not read the application in question. The new score from the secondary review would be used instead of the original score. Applications with revised scores in the fundable range will be funded to the extent feasible based on the availability of appropriations.

Issues Raised by Negotiators

What constitutes evidence of scoring violations?
Should regulations specify source of error for appeal purposes?
How long should an applicant have to appeal?
Time line for ED to respond to appeal
Who handles appeal reviews?
Should there be a score cut-off for appeal purposes?

GEAR UP

Priority

Summary of issue: The HEOA gives a priority in funding to entities that (1) have carried out successful GEAR UP programs prior to enactment of the HEOA, (2) have a prior, demonstrated commitment to early intervention, leading to college access through collaboration and replication of successful strategies, and 3) ensure that students served by GEAR UP programs prior to the enactment of the HEA continue to receive services through the completion of secondary school. Under previous regulations, the Secretary could choose to provide priority to applicants in Empowerment Zones or to partnerships that award scholarships.

Funding Rules

Summary of issue: The HEOA requires the Secretary to award at least 33 percent of the GEAR UP appropriation to States; at least 33 percent to partnerships; and to award the remainder "taking into consideration the number, quality, and promise of applications for the grants" and, to the extent practicable, the geographic distribution of grants and the distribution of grants between urban and rural applicants. The HEA has always required the distribution of at least 33 percent of funds to States and to partnerships. The language regarding how the remaining funds are distributed is new.

Duration of awards

Summary of issue: Previously, GEAR UP grants were awarded for a period of up to six years. The HEOA provides authority for grantees to apply for an optional seventh year of funding. The purpose of the new seventh year is to provide services at an institution of higher education to follow students through their first year of college attendance.

Revised Definition of Partnerships

Summary of issue: The HEOA changed the definition of an "eligible entity" to include a partnership consisting of 1) one or more local education agencies and 2) one or more degree granting institutions of higher education. Partnerships may include not less than two other community organizations or entities. A previous requirement that partnerships must include one or more elementary or secondary schools was eliminated.

Changes to Matching Requirements

Summary of issue: Generally, GEAR UP grantees are required to match one dollar of non-federal funds for every federal dollar awarded. The HEOA makes a number of changes to the GEAR UP matching requirement. Previously, grantees were expected to meet matching requirements each year. The HEOA provides that grantees can meet their matching requirements over the entire life of the grant if they make "substantial progress" in meeting the matching requirements each year. The HEOA also expands the types of contributions that can be considered part of the matching funds to include the costs of administering a scholarship program under the grant-funded project.

Waiver of Matching Requirements

Summary of issue: Under the HEA as previously authorized, the Secretary could, under certain circumstances, modify the percentage match requirement applicable to a partnership. The HEOA retains this provision, and also authorizes the Secretary to approve the following types of requests for reduction in match: (1) requests made at the time of an application, if the applicant demonstrates a significant economic hardship that precludes it from meeting the match requirement, (2) requests from partnership applicants to count contributions to scholarship funds established under section 404E on a two to one basis, or (3) requests made by a grantee demonstrating that the matching funds identified in an approved application are no longer available and the grantee has exhausted all reserves for replacing them.

Required and Allowable Activities

Summary of issue: The HEOA modifies the GEAR UP program by distinguishing between certain activities and services that projects must provide and optional activities that projects may offer. Prior to the new law, projects could choose from a number of allowable activities and services.

Scholarship Component/Funds Held in Reserve for Scholarships

Summary of issue: The HEOA requires State grantees to hold in reserve funds for scholarships for eligible students in an amount that is not less than the minimum scholarship amount multiplied by the number of students that the State estimates will enroll in an institution of higher education. The State must make these funds available to eligible students who meet certain benchmarks. These scholarships are portable and may be used outside the State in which the GEAR UP program is located. Grantees are also required by the HEOA to provide information on the eligibility requirements for scholarships to all participating students upon the students' entry into the programs assisted under this chapter.

Redistribution or Return of Unused Scholarship Funds/Reporting on Scholarship Monies after the Grant Period

Summary of issue: Previously, the HEA was silent as to the disposition of unused scholarship funds after the closure of a GEAR UP grant. The HEOA specifies that grantees may redistribute any unused funds not distributed to eligible students within six years of their completion of high school to other eligible students. The HEOA also requires State grantees to return to the Secretary any remaining scholarships funds to be redistributed by the Secretary to other grantees.

In order for the Secretary to implement this provision, grantees may need to report on their scholarship funds after the completion of their grant award periods. At present, grantees have no accountability or reporting responsibilities to the federal government after the grants close.

Continuity of Student Services

Summary of issue: The HEOA requires the Secretary to require eligible entities to continue to provide services to students who received services under a previous GEAR UP grant award but have not yet completed the 12th grade. Under the GEAR UP program, grantees may choose to add new cohorts (grade levels) of students each year of a grant and there is no minimum grade level at which services may begin. Accordingly, grants can end before students have completed high school. The HEOA requires eligible entities to provide services to those students through the 12th grade. Prior to the new law, there was no provision for grantees to serve students from a previous grant.

High School Equivalency Program (HEP) and College Assistance Migrant Program (CAMP)

HEP and CAMP Eligibility

Summary of issue: Formerly, the HEA authorized the recruitment into HEP and CAMP programs of individuals "who themselves, or whose parents" have spent a minimum of 75 days during the past 24 months in migrant and seasonal farmwork. The HEOA revised this provision to permit recruitment of those "who themselves or whose "immediate family" spent such time in migrant and seasonal farmwork. Current regulations reflect the law as previously enacted. The HEOA does not define an "immediate family" member.

HEP and CAMP Eligibility

Summary of issue: The statute provides for eligibility if an individual or his or her immediate family has "spent a minimum of 75 days during the past 24 months in migrant or seasonal farmwork". The HEOA made no change in the quoted phrase. Program regulations define the term, "seasonal farmworker" as one who "within the past 24 months, was employed for at least 75 days in farmwork, and whose primary employment was in farmwork on a temporary or seasonal basis (that is, not a constant year-round activity)." The regulation does not clarify whether the requisite "primary employment" must occur within the 75 days or over the two years.

Reservation and Allocation of Funds

Summary of issue: The HEOA provides a formula for determining the amount of appropriated funds to be made available for HEP and CAMP awards. The HEOA permits the Secretary to reserve 1/2 of one percent of the HEP and CAMP appropriation to conduct outreach, technical assistance, and professional development.

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