(a)

Section 6(o)(3) of the Food and Nutrition Act of 2008 is amended to read as follows:

(3) Exception

Paragraph (2) shall not apply to an individual if the individual is—

(A)

under 18 or over 65 years of age;

(B)

medically certified as physically or mentally unfit for employment;

(C)

a parent or other member of a household with responsibility for a dependent child under 7 years of age;

(D)

otherwise exempt under subsection (d)(2);

(E)

a pregnant woman;

(F)

currently homeless;

(G)

a veteran;

(H)

24 years of age or younger and was in foster care under the responsibility of a State on the date of attaining 18 years of age or such higher age as the State has elected under section 475(8)(B)(iii) of the Social Security Act (42 U.S.C. 675(8)(B)(iii)); or

(I)

responsible for a dependent child 7 years of age or older and is married to, and resides with, an individual who is in compliance with the requirements of paragraph (2).

(b) Sunset Provision

The exceptions in subparagraphs (F) through (H) shall cease to have effect on October 1, 2030.

(1)

by amending paragraph (4)(A) to read as follows:

(A) In general

On the request of a State agency and with the support of the chief executive officer of the State, the Secretary may waive the applicability of paragraph (2) for not more than 12 consecutive months to any group of individuals in the State if the Secretary makes a determination that the county, or county-equivalent (as recognized by the Census Bureau) in which the individuals reside has an unemployment rate of over 10 percent.; and

(2)

in paragraph (6)(F) by striking 8 percent and inserting 1 percent.

(a) Allowance to recipients of energy assistance

(b) Third-party energy assistance payments

Section 5(k)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(k)(4)) is amended—

(a) In general

Section 4(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)) is amended—

(b) Rule of construction

The Secretary of Agriculture may not pay towards the cost of allotments described in paragraph (1) of section 4(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(a)), as designated by subsection (a), an amount greater than the applicable Federal share described in paragraph (2) of such section 4(a), as added by subsection (a).

(1)

in paragraph (1)(A), in the matter preceding clause (i), by striking over the age of 15 and under the age of 60 and inserting over the age of 17 and under the age of 65; and

(2)

in paragraph (2)—

(1)

in subclause (I), by striking and at the end;

(2)

in subclause (II)—

(3)

by adding at the end the following:

(III)

for each fiscal year thereafter, $0.

(a) Reference price

Section 1111(19) of the Agricultural Act of 2014 (7 U.S.C. 9011(19)) is amended to read as follows:

(19) Reference price

(A) In general

Subject to subparagraphs (B) and (C), the term reference price, with respect to a covered commodity for a crop year, means the following:

(i)

For wheat, $6.35 per bushel.

(ii)

For corn, $4.10 per bushel.

(iii)

For grain sorghum, $4.40 per bushel.

(iv)

For barley, $5.45 per bushel.

(v)

For oats, $2.65 per bushel.

(vi)

For long grain rice, $16.90 per hundredweight.

(vii)

For medium grain rice, $16.90 per hundredweight.

(viii)

For soybeans, $10.00 per bushel.

(ix)

For other oilseeds, $23.75 per hundredweight.

(x)

For peanuts, $630.00 per ton.

(xi)

For dry peas, $13.10 per hundredweight.

(xii)

For lentils, $23.75 per hundredweight.

(xiii)

For small chickpeas, $22.65 per hundredweight.

(xiv)

For large chickpeas, $25.65 per hundredweight.

(xv)

For seed cotton, $0.42 per pound.

(B) Effectiveness

Effective beginning with the 2031 crop year, the reference prices defined in subparagraph (A) with respect to a covered commodity shall equal the reference price in the previous crop year multiplied by 1.005.

(C) Limitation

In no case shall a reference price for a covered commodity exceed 115 percent of the reference price for such covered commodity listed in subparagraph (A).

(b) Base acres

Section 1112 of the Agricultural Act of 2014 (7 U.S.C. 9012) is amended—

(c) Producer election

Section 1115 of the Agricultural Act of 2014 (7 U.S.C. 9015) is amended—

(d) Price loss coverage

Section 1116 of the Agricultural Act of 2014 (7 U.S.C. 9016) is amended—

(e) Agriculture risk coverage

Section 1117 of the Agricultural Act of 2014 (7 U.S.C. 9017) is amended—

(f) Equitable treatment of certain entities

(g) Payment limitations

Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended—

(h) Adjusted gross income limitation

Section 1001D(b) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)) is amended—

(i) Marketing loans

(j) Repayment of marketing loans

Section 1204 of the Agricultural Act of 2014 (7 U.S.C. 9034) is amended—

(k) Economic adjustment assistance for textile mills

Section 1207(c) of the Agricultural Act of 2014 (7 U.S.C. 9037(c)) is amended by striking paragraph (2) and inserting the following:

(2) Value of assistance

The value of the assistance provided under paragraph (1) shall be—

(A)

for the period beginning on August 1, 2013, and ending on July 31, 2025, 3 cents per pound; and

(B)

beginning on August 1, 2025, 5 cents per pound.

(l) Sugar program updates

(m) Dairy policy updates

(n) Suspension of permanent price support authority

Section 1602 of the Agricultural Act of 2014 (7 U.S.C. 9092) is amended by striking 2023 each place it appears and inserting 2031.

(o) Implementation

Section 1614(c) of the Agricultural Act of 2014 (7 U.S.C. 9097(c)) is amended by adding at the end the following:

(5) Fiscal year 2025 reconciliation

The Secretary shall make available to the Farm Service Agency to carry out section 10101 of the Act titled An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14, and the amendments made by that section, $50,000,000, to remain available until expended, of which—

(A)

not less than $5,000,000 shall be used to carry out paragraphs (3) and (4) of subsection (b);

(B)

$3,000,000 shall be used for activities described in paragraph (3)(A) of this subsection;

(C)

$3,000,000 shall be used for activities described in paragraph (3)(B) of this subsection; and

(D)

$10,000,000 shall be used to—

(i)

carry out mandatory surveys of dairy production cost and product yield information to be reported by manufacturers required to report under section 273 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b), for all products processed in the same facility or facilities; and

(ii)

publish the results of such surveys biennially.

(p) Livestock safety net updates

(q) Emergency assistance for honeybees

In determining honeybee colony losses eligible for assistance under section 1501(d) of the Agricultural Act of 2014 (7 U.S.C. 9081(d)), the Secretary shall utilize a normal mortality rate of 15 percent.

(r) Beginning farmer and rancher benefit

(s) Area-based crop insurance coverage and affordability

(t) Premium support

Section 508(e)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is amended—

(u) Administrative and operating expense adjustments

Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) is amended by adding at the end the following:

(10) Additional expenses

(A) In general

Beginning with the 2026 reinsurance year and for each reinsurance year thereafter, in addition to the terms and conditions of the Standard Reinsurance Agreement, to cover additional expenses for loss adjustment procedures, the Corporation shall pay an additional administrative and operating expense subsidy to approved insurance providers for eligible contracts.

(B) Payment amount

In the case of an eligible contract, the payment to an approved insurance provider required under subparagraph (A) shall be the amount equal to 6 percent of the net book premium.

(C) Definitions

In this paragraph:

(i) Eligible state

The term eligible State means a State—

(I)

identified in State Group 2 or State Group 3 (as defined in the Standard Reinsurance Agreement for reinsurance year 2026); and

(II)

in which, with respect to an insurance year, the loss ratio for eligible contracts is greater than 120 percent of the total net book premium written by all approved insurance providers.

(ii) Eligible contracts

The term eligible contract—

(I)

means a crop insurance contract entered into by an approved insurance provider in an eligible State; and

(II)

does not include a contract for—

(aa)

catastrophic risk protection under subsection (b);

(bb)

an area-based plan of insurance or similar plan of insurance, as determined by the Corporation; or

(cc)

a policy under which an approved insurance provider does not incur loss adjustment expenses, as determined by the Corporation.

(11) Specialty crops

(A) Minimum reimbursement

Beginning with the 2026 reinsurance year and for each reinsurance year thereafter, the rate of reimbursement to approved insurance providers and agents for administrative and operating expenses with respect to crop insurance contracts covering agricultural commodities described in section 101 of title I of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note) shall be equal to or greater than the percent that is the greater of the following:

(i)

17 percent of the premium used to define loss ratio.

(ii)

The percent of the premium used to define loss ratio that is otherwise applicable for the reinsurance year under the terms of the Standard Reinsurance Agreement in effect for the reinsurance year.

(B) Other contracts

In carrying out subparagraph (A), the Corporation shall not reduce, with respect to any reinsurance year, the amount or the rate of reimbursement to approved insurance providers and agents under the Standard Reinsurance Agreement described in clause (ii) of such subparagraph for administrative and operating expenses with respect to contracts covering agricultural commodities that are not subject to such subparagraph.

(C) Administration

The requirements of this paragraph and the adjustments made pursuant to this paragraph shall not be considered a renegotiation under paragraph (8)(A).

(12) A&O inflation adjustment

(A) In general

Subject to subparagraph (B), for the 2026 reinsurance year, and each reinsurance year thereafter, the Corporation shall increase the total administrative and operating expense reimbursements otherwise required under the Standard Reinsurance Agreement in effect for the reinsurance year in order to account for inflation, in a manner consistent with the increases provided with respect to the 2011 through 2015 reinsurance years under the enclosure included in Risk Management Agency Bulletin numbered MGR–10–007 and dated June 30, 2010.

(B) Special rule for 2026 reinsurance year

The increase under subparagraph (A) for the 2026 reinsurance year shall not exceed the percentage change for the preceding reinsurance year included in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.

(C) Administration

An increase under subparagraph (A)—

(i)

shall apply with respect to all contracts covering agricultural commodities that were subject to an increase during the period of the 2011 through 2015 reinsurance years under the enclosure referred to in that subparagraph; and

(ii)

shall not be considered to be a renegotiation of the Standard Reinsurance Agreement for purposes of paragraph (8)(A).

(v) Program compliance and integrity

Section 515(l)(2) of the Federal Crop Insurance Act (7 U.S.C. 1515(l)(2)) is amended by striking than and all that follows through the period at the end and inserting the following:

than—

(A)

$4,000,000 for each of fiscal years 2009 through 2025; and

(B)

$6,000,000 for fiscal year 2026 and each subsequent fiscal year.

(w) Reviews, compliance, and integrity

Section 516(b)(2)(C)(i) of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(2)(C)(i)) is amended by striking each fiscal year and inserting each of fiscal years 2014 through 2025 and $10,000,000 for fiscal year 2026 and each fiscal year thereafter.

(x) Poultry insurance pilot program

Section 523 of the Federal Crop Insurance Act (7 U.S.C. 1523) is amended by adding at the end the following:

(j) Poultry insurance pilot program

(1) In general

Notwithstanding subsection (a)(2), the Corporation shall establish a pilot program under which contract poultry growers, including growers of broilers and laying hens, may elect to receive index-based insurance from extreme weather-related risk resulting in increased utility costs (including costs of natural gas, propane, electricity, water, and other appropriate costs, as determined by the Corporation) associated with poultry production.

(2) Stakeholder engagement

The Corporation shall engage with poultry industry stakeholders in establishing the pilot program under paragraph (1).

(3) Location

The pilot program established under paragraph (1) shall be conducted in a sufficient number of counties to provide a comprehensive evaluation of the feasibility, effectiveness, and demand among producers in the top poultry producing States, including Alabama, Arkansas, and Mississippi, as determined by the Corporation.

(4) Approval of policy or plan

Notwithstanding section 508(l), the Board shall approve a policy or plan of insurance based on the pilot program under paragraph (1)—

(A)

in accordance with section 508(h); and

(B)

not later than 24 months after the date of enactment of this subsection.

(a) Grassroots source water protection program

Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 3839bb–2(b)) is amended—

(b) Voluntary public access and habitat incentive program

Section 1240R(f)(1) of the Food Security Act of 1985 (16 U.S.C. 3839bb–5(f)(1)) is amended—

(c) Feral swine eradication and control pilot program

Section 2408(g)(1) of the Agriculture Improvement Act of 2018 (7 U.S.C. 8351 note; Public Law 115–334) is amended—

(d) Funding

(a) In general

The Secretary shall conduct a program to encourage the accessibility, development, maintenance, and expansion of commercial export markets for United States agricultural commodities.

(b) Funding

Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $285,000,000 for fiscal year 2027 and each fiscal year thereafter.

(a) Urban, indoor, and other emerging agricultural production research, education, and extension initiative

Section 1672E(d)(1)(B) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925g(d)(1)(B)) is amended by striking fiscal year 2024, to remain available until expended and inserting each of fiscal years 2024 through 2031.

(b) Foundation for food and agriculture research

Section 7601(g)(1)(A) of the Agricultural Act of 2014 (7 U.S.C. 5939(g)(1)(A)) is amended adding at the end the following:

(iv) Further funding

Of the funds of the Commodity Credit Corporation, the Secretary shall transfer to the Foundation to carry out this section, to remain available until expended, not later than 30 days after the date of enactment of this clause, $37,000,000.

(c) Scholarships for students at 1890 Institutions

Section 1446 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222a) is amended—

(d) Assistive technology program for farmers with disabilities

Section 1680(c) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5933(c)) is amended—

(e) Specialty crop research initiative

Section 412(k)(1)(B) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7632(k)(1)(B)) is amended by striking section $80,000,000 for fiscal year 2014 and inserting the following:

section—

(i)

$80,000,000 for each of fiscal years 2014 through 2025; and

(ii)

$175,000,000 for fiscal year 2026

(f) Research Facilities Act

Section 6 of the Research Facilities Act (7 U.S.C. 390d) is amended—

(a) Extension of certain provisions of Secure Rural Schools and Community Self-Determination Act of 2000

(b) Resource advisory committee pilot program extension

Section 205(g) of the Secure Rural Schools and Community Self-Determination Act of 2000 (16 U.S.C. 7125(g)) is amended—

(c) Technical corrections

(d) Rescissions

(a) Plant pest and disease management and disaster prevention

Section 420(f) of the Plant Protection Act (7 U.S.C. 7721) is amended—

(b) Specialty crop block grants

Section 101(l)(1) of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 108–465) is amended—

(c) Organic production and market data initiative

Section 7407(d)(1) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 5925c(d)(1)) is amended—

(d) Modernization and improvement of international trade technology systems and data collection funding

Section 2123(c)(4) of the Organic Foods Production Act of 1990 (7 U.S.C. 6522(c)(4)) is amended, in the matter preceding subparagraph (A), by striking and $1,000,000 for fiscal year 2024 and inserting , $1,000,000 for fiscal years 2024 and 2025, and $5,000,000 for fiscal year 2026.

(e) National organic certification cost-share program

Section 10606(d)(1)(C) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 6523(d)(1)(C)) is amended by striking for each of fiscal years 2022 through 2024 and inserting for each of fiscal years 2022 through 2031.

(f) Multiple crop and pesticide use survey

Section 10109(c)(1) of the Agriculture Improvement Act of 2018 (Public Law 115–334; 132 Stat. 4906) is amended to read as follows:

(1) Mandatory funding

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section—

(A)

$500,000 for fiscal year 2019, to remain available until expended;

(B)

$100,000 for fiscal year 2024, to remain available until expended; and

(C)

$5,000,000 for fiscal year 2026, to remain available until expended.

(a) Animal Disease Prevention and Management

Section 10409A(d)(1) of the Animal Health Protection Act (7 U.S.C. 8308a(d)(1)) is amended to read as follows:

(1) Mandatory funding

(A) Fiscal years 2023 through 2025

Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $30,000,000 for each of fiscal years 2023 through 2025, of which not less than $18,000,000 shall be made available for each of those fiscal years to carry out subsection (b).

(B) Fiscal years 2026 through 2030

Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $233,000,000 for each of fiscal years 2026 through 2030, of which—

(i)

not less than $10,000,000 shall be made available for each such fiscal year to carry out subsection (a);

(ii)

not less than $70,000,000 shall be made available for each such fiscal year to carry out subsection (b); and

(iii)

not less than $153,000,000 shall be made available for each such fiscal year to carry out subsection (c).

(C) Subsequent fiscal years

Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $75,000,000 for fiscal year 2031 and each fiscal year thereafter, of which not less than $45,000,000 shall be made available for each of those fiscal years to carry out subsection (b).

(b) Sheep production and marketing grant program

Section 209(c) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1627a(c)) is amended—

(c) Miscellaneous trust funds

(1)

$230,480,000 for restoration and modernization costs under the Marine Corps Barracks 2030 initiative;

(2)

$119,000,000 for base operating support costs for the Marine Corps;

(3)

$1,000,000,000 for Army, Navy, Air Force, and Space Force sustainment, restoration, and modernizations of military unaccompanied housing;

(4)

$2,000,000,000 for the Defense Health Program;

(5)

$2,900,000,000 to supplement the basic allowance for housing payable to members of the Armed Forces, notwithstanding section 403 of title 37, United States Code;

(6)

$50,000,000 for bonuses, special pays, and incentive pays for members of the Armed Forces pursuant to titles 10 and 37, United States Code;

(7)

$10,000,000 for the Defense Activity for Non-Traditional Education Support’s Online Academic Skills Course program for members of the Armed Forces;

(8)

$100,000,000 for tuition assistance for members of the Armed Forces pursuant to title 10, United States Code;

(9)

$100,000,000 for child care fee assistance for members of the Armed Forces under part II of chapter 88 of title 10, United States Code;

(10)

$590,000,000 to increase the Temporary Lodging Expense Allowance under chapter 8 of title 37, United States Code, to 21 days;

(11)

$100,000,000 for Department of Defense Impact Aid payments to local educational agencies under section 2008 of title 10, United States Code;

(12)

$10,000,000 for military spouse professional licensure under section 1784 of title 10, United States Code;

(13)

$6,000,000 for Armed Forces Retirement Home facilities; and

(14)

$100,000,000 for the Defense Community Infrastructure Program.

(1) In general

During the period beginning on the date of the enactment of this section and ending on September 30, 2029, the Secretary concerned shall apply—

(2) Secretary concerned defined

In this subsection, the term Secretary concerned has the meaning given such term in section 101 of title 10, United States Code.

(1)

by striking the heading and inserting Temporary authority for acquisition or construction of privatized military unaccompanied housing;

(2)

by striking Secretary of the Navy each place it appears and inserting Secretary concerned;

(3)

by striking under the pilot projects each place it appears and inserting pursuant to this section;

(4)

in subsection (a)—

(5)

in subsection (c), by striking privatized housing and inserting privatized housing units;

(6)

by redesignating subsection (f) as subsection (e); and

(7)

in subsection (e) (as so redesignated)—

(1)

$183,000,000 for Missile Defense Agency special programs;

(2)

$250,000,000 for development and testing of directed energy capabilities by the Under Secretary for Research and Engineering;

(3)

$300,000,000 for classified military space superiority programs run by the Strategic Capabilities Office;

(4)

$500,000,000 for national security space launch infrastructure;

(5)

$2,000,000,000 for air moving target indicator military satellites;

(6)

$400,000,000 for expansion of Multi-Service Advanced Capability Hypersonic Test Bed program;

(7)

$5,600,000,000 for development of space-based and boost phase intercept capabilities;

(8)

$2,400,000,000 for the development of military non-kinetic missile defense effects; and

(9)

$7,200,000,000 for the development, procurement, and integration of military space-based sensors.

(1)

$2,200,000,000 for acceleration of hypersonic defense systems;

(2)

$800,000,000 for accelerated development and deployment of next-generation intercontinental ballistic missile defense systems;

(3)

$408,000,000 for Army space and strategic missile test range infrastructure restoration and modernization in the United States Indo-Pacific Command area of operations west of the international dateline;

(4)

$1,975,000,000 for improved ground-based missile defense radars; and

(5)

$530,000,000 for the design and construction of Missile Defense Agency missile instrumentation range safety ship.

(1)

$400,000,000 for the development, production, and integration of Navy and Air Force long-range anti-ship missiles;

(2)

$380,000,000 for production capacity expansion for Navy and Air Force long-range anti-ship missiles;

(3)

$490,000,000 for the development, production, and integration of Navy and Air Force long-range air-to-surface missiles;

(4)

$94,000,000 for the development, production, and integration of alternative Navy and Air Force long-range air-to-surface missiles;

(5)

$630,000,000 for the development, production, and integration of long-range Navy air defense and anti-ship missiles;

(6)

$688,000,000 for the development, production, and integration of long-range multi-service cruise missiles;

(7)

$250,000,000 for production capacity expansion and supplier base strengthening of long-range multi-service cruise missiles;

(8)

$70,000,000 for the development, production, and integration of short-range Navy and Marine Corps anti-ship missiles;

(9)

$100,000,000 for the development of an anti-ship seeker for short-range Army ballistic missiles;

(10)

$175,000,000 for production capacity expansion for next-generation Army medium-range ballistic missiles;

(11)

$50,000,000 for the mitigation of diminishing manufacturing sources for medium-range air-to-air missiles;

(12)

$250,000,000 for the procurement of medium-range air-to-air missiles;

(13)

$225,000,000 for the expansion of production capacity for medium-range air-to-air missiles;

(14)

$50,000,000 for the development of second sources for components of short-range air-to-air missiles;

(15)

$325,000,000 for production capacity improvements for air-launched anti-radiation missiles;

(16)

$50,000,000 for the accelerated development of Army next-generation medium-range anti-ship ballistic missiles;

(17)

$114,000,000 for the production of Army next-generation medium-range ballistic missiles;

(18)

$300,000,000 for the production of Army medium-range ballistic missiles;

(19)

$85,000,000 for the accelerated development of Army long-range ballistic missiles;

(20)

$400,000,000 for the production of heavyweight torpedoes;

(21)

$200,000,000 for the development, procurement, and integration of commercial heavyweight torpedoes;

(22)

$70,000,000 for the improvement of heavyweight torpedo maintenance activities;

(23)

$200,000,000 for the production of lightweight torpedoes;

(24)

$500,000,000 for the development, procurement, and integration of maritime mines;

(25)

$50,000,000 for the development, procurement, and integration of new underwater explosives;

(26)

$55,000,000 for the development, procurement, and integration of lightweight multi-mission torpedoes;

(27)

$80,000,000 for the production of sonobuoys;

(28)

$150,000,000 for the development, procurement, and integration of air-delivered long-range maritime mines;

(29)

$61,000,000 for the acceleration of Navy expeditionary loitering munitions deployment;

(30)

$50,000,000 for the acceleration of one-way attack unmanned aerial systems with advanced autonomy;

(31)

$1,000,000,000 for the expansion of the one-way attack unmanned aerial systems industrial base;

(32)

$3,500,000,000 for grants made pursuant to the Industrial Base Fund established under section 4817 of title 10, United States Code;

(33)

$1,000,000,000 for grants and purchase commitments made pursuant to the Industrial Base Fund established under section 4817 of title 10, United States Code;

(34)

$200,000,000 for investments in solid rocket motor industrial base through the Industrial Base Fund established under section 4817 of title 10, United States Code;

(35)

$400,000,000 for investments in the emerging solid rocket motor industrial base through the Industrial Base Fund established under section 4817 of title 10, United States Code;

(36)

$42,000,000 for investments in second sources for large-diameter solid rocket motors for hypersonic missiles;

(37)

$1,000,000,000 for the creation of next-generation automated munitions production factories;

(38)

$170,000,000 for the development of advanced radar depot for repair, testing, and production of radar and electronic warfare systems;

(39)

$25,000,000 for the expansion of the Department of Defense industrial base policy analysis workforce;

(40)

$30,300,000 for the repair of Army missiles;

(41)

$100,000,000 for the production of small and medium ammunition;

(42)

$2,500,000,000 for additional activities to improve the United States production of critical minerals through the National Defense Stockpile, authorized by subchapter III of chapter 5 of title 50, United States Code;

(43)

$10,000,000 for the expansion of the Department of Defense armaments cooperation workforce;

(44)

$500,000,000 for the expansion of the Defense Exportability Features program;

(45)

$350,000,000 for production of Navy long-range air and missile defense interceptors;

(46)

$93,000,000 for replacement of Navy long-range air and missile defense interceptors;

(47)

$100,000,000 for development of a second solid rocket motor source for Navy air defense and anti ship missiles;

(48)

$65,000,000 for expansion of production capacity of Missile Defense Agency long-range anti-ballistic missiles;

(49)

$225,000,000 for expansion of production capacity for Navy air defense and anti-ship missiles;

(50)

$103,300,000 for expansion of depot level maintenance facility for Navy long-range air and missile defense interceptors;

(51)

$18,000,000 for creation of domestic source for guidance section of Navy short-range air defense missiles;

(52)

$65,000,000 for integration of Army medium-range air and missile defense interceptor with Navy ships;

(53)

$176,100,000 for production of Army long-range movable missile defense radar;

(54)

$100,000,000 for accelerated fielding of Army short-range gun-based air and missile defense system;

(55)

$40,000,000 for development of low-cost alternatives to air and missile defense interceptors;

(56)

$50,000,000 for acceleration of Army next-generation shoulder-fired air defense system;

(57)

$91,000,000 for production of Army next-generation shoulder-fired air defense system;

(58)

$500,000,000 for development, production, and integration of counter-unmanned aerial systems programs;

(59)

$350,000,000 for development, production, and integration of non-kinetic counter-unmanned aerial systems programs;

(60)

$250,000,000 for development, production, and integration of land-based counter-unmanned aerial systems programs;

(61)

$200,000,000 for development, production, and integration of ship-based counter-unmanned aerial systems programs; and

(62)

$400,000,000 for acceleration of hypersonic strike programs.

(1)

such amounts are available to subsidize gross obligations for the principal amount of direct loans, and total loan principal, any part of which is to be guaranteed, not to exceed $100,000,000,000; and

(2)

such amounts are available to cover all costs and expenditures as provided under section 149(e)(5)(B) of title 10, United States Code.

(1)

$25,000,000 for the Office of Strategic Capital Global Technology Scout program;

(2)

$1,100,000,000 for the expansion of the small unmanned aerial system industrial base;

(3)

$400,000,000 for the development and deployment of the Joint Fires Network and associated joint battle management capabilities;

(4)

$400,000,000 for the expansion of advanced command-and-control tools to combatant commands and military departments;

(5)

$100,000,000 for the development of shared secure facilities for the defense industrial base;

(6)

$50,000,000 for the creation of additional Defense Innovation Unit OnRamp Hubs;

(7)

$250,000,000 for the acceleration of Strategic Capabilities Office programs;

(8)

$650,000,000 for the expansion of Mission Capabilities office joint prototyping and experimentation activities for military innovation;

(9)

$500,000,000 for the accelerated development and integration of advanced 5G/6G technologies for military use;

(10)

$25,000,000 for testing of simultaneous transmit and receive technology for military spectrum agility;

(11)

$50,000,000 for the development, procurement, and integration of high-altitude stratospheric balloons for military use;

(12)

$120,000,000 for the development, procurement, and integration of long-endurance unmanned aerial systems for surveillance;

(13)

$40,000,000 for the development, procurement, and integration of alternative positioning and navigation technology to enable military operations in contested electromagnetic environments;

(14)

$750,000,000 for the acceleration of innovative military logistics and energy capability development and deployment;

(15)

$120,000,000 for the acceleration of development of small, portable modular nuclear reactors for military use;

(16)

$1,000,000,000 for the expansion of programs to accelerate the procurement and fielding of innovative technologies;

(17)

$90,000,000 for the development of reusable hypersonic technology for military strikes;

(18)

$2,000,000,000 for the expansion of Defense Innovation Unit scaling of commercial technology for military use;

(19)

$500,000,000 to prevent delays in delivery of attritable autonomous military capabilities;

(20)

$1,000,000,000 for the development, procurement, and integration of low-cost cruise missiles;

(21)

$124,000,000 for improvements to Test Resource Management Center artificial intelligence capabilities;

(22)

$145,000,000 for the development of artificial intelligence to enable one-way attack unmanned aerial systems and naval systems;

(23)

$250,000,000 for the development of the Test Resource Management Center digital test environment;

(24)

$250,000,000 for the advancement of the artificial intelligence ecosystem;

(25)

$250,000,000 for the expansion of Cyber Command artificial intelligence lines of effort;

(26)

$250,000,000 for the acceleration of the Quantum Benchmarking Initiative;

(27)

$500,000,000 for the expansion and acceleration of qualification activities and technical data management to enhance competition in defense industrial base;

(28)

$400,000,000 for the expansion of the defense manufacturing technology program; and

(29)

$685,000,000 for military cryptographic modernization activities.

(1)

such amounts are available to subsidize gross obligations for the principal amount of direct loans, and total loan principal, any part of which is to be guaranteed, not to exceed $100,000,000,000; and

(2)

such amounts are available to cover all costs and expenditures as provided under section 149(e)(5)(B) of title 10, United States Code.

(1)

$1,500,000,000 for risk reduction activities for the Sentinel intercontinental ballistic missile program;

(2)

$4,500,000,000 for acceleration of the B–21 long-range bomber aircraft;

(3)

$500,000,000 for improvements to the Minuteman III intercontinental ballistic missile system;

(4)

$100,000,000 for capability enhancements to intercontinental ballistic missile reentry vehicles;

(5)

$148,000,000 for the expansion of D5 missile motor production;

(6)

$400,000,000 to accelerate the development of Trident D5LE2 submarine-launched ballistic missiles;

(7)

$2,000,000,000 to accelerate the development, procurement, and integration of the nuclear-armed sea-launched cruise missile;

(8)

$22,000,000 to enhance nuclear deterrence through classified programs;

(9)

$168,000,000 to accelerate the production of the Survivable Airborne Operations Center program;

(10)

$65,000,000 to accelerate the modernization of nuclear command, control, and communications; and

(11)

$210,300,000 for the increased production of MH–139 helicopters.

(1)

$200,000,000 to perform National Nuclear Security Administration Phase 1 studies pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401);

(2)

$540,000,000 to address deferred maintenance and repair needs of the National Nuclear Security Administration pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401);

(3)

$1,000,000,000 to accelerate the construction of National Nuclear Security Administration facilities pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401);

(4)

$400,000,000 to accelerate the development, procurement, and integration of the warhead for the nuclear-armed sea-launched cruise missile pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401);

(5)

$500,000,000 to accelerate primary capability modernization pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401);

(6)

$500,000,000 to accelerate secondary capability modernization pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401); and

(7)

$100,000,000 to accelerate domestic uranium enrichment centrifuge deployment for defense purposes pursuant to section 3211 of the National Nuclear Security Administration Act (50 U.S.C. 2401).

(1)

programs with mutual technological dependencies;

(2)

programs with related data management and data ownership considerations;

(3)

programs particularly vulnerable to supply chain disruptions and long lead time components; and

(4)

programs involving classified matters.

(a) In general

Section 484(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 1091(a)(5)) is amended to read as follows:

(5)

be—

(A)

a citizen or national of the United States;

(B)

an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.);

(C)

an alien who—

(i)

is a citizen or national of the Republic of Cuba;

(ii)

is the beneficiary of an approved petition under section 203(a) of the Immigration and Nationality Act (8 U.S.C. 1153(a));

(iii)

meets all eligibility requirements for an immigrant visa but for whom such a visa is not immediately available;

(iv)

is not otherwise inadmissible under section 212(a) of such Act (8 U.S.C. 1182(a)); and

(v)

is physically present in the United States pursuant to a grant of parole in furtherance of the commitment of the United States to the minimum level of annual legal migration of Cuban nationals to the United States specified in the U.S.-Cuba Joint Communiqué on Migration, done at New York September 9, 1994, and reaffirmed in the Cuba-United States: Joint Statement on Normalization of Migration, Building on the Agreement of September 9, 1994, done at New York May 2, 1995; or

(D)

an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(b)(2)(G)); and

(b) Effective date and application

The amendment made by subsection (a) shall take effect on July 1, 2025, and shall apply with respect to award year 2025–2026 and each subsequent award year, as determined under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).

(a) Amount of need

Section 471 of the Higher Education Act of 1965 (20 U.S.C. 1087kk) is amended by amending paragraph (1) to read as follows:

(1)

(A)

for award year 2025–2026, the cost of attendance of such student; or

(B)

for award year 2026–2027, and each subsequent award year, the median cost of college of the program of study of such student, minus

(b) Cost of attendance of a program of study

(c) Determination of median cost of college

Part F of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087kk) is amended by inserting after section 472 (as so amended), the following:

472A. Determination of median cost of college

(a) In general

For the purpose of this title, the term median cost of college, when used with respect to a program of study, offered by one or more institutions of higher education for an award year, means the median of the cost of attendance of the program of study (as determined under section 472) across all institutions of higher education offering such a program of study for the preceding award year.

(b) Program of study defined

In this section and section 472, and part D:

(1) In general

The term program of study—

(A)

means an eligible program at an institution of higher education that is classified by a combination of—

(i)

one or more CIP codes; and

(ii)

one credential level, determined by the credential awarded upon completion of the program; and

(B)

does not include a program of study abroad.

(2) CIP code

The term CIP code means the six-digit taxonomic identification code assigned by an institution of higher education to a specific program of study at the institution, determined by the institution of higher education in accordance with the Classification of Instructional Programs published by the National Center for Education Statistics.

(3) Credential level

(A) In general

The term ‘credential level’ means the level of the degree or other credential awarded by an institution of higher education to students who complete a program of study of the institution. Each degree or other credential awarded by an institution shall be categorized by the institution as either undergraduate credential level or graduate credential level.

(B) Undergraduate credential

When used with respect to a credential or credential level, the term ‘undergraduate credential’ includes credentials such as an undergraduate certificate, an associate degree, a bachelor’s degree, and a post-baccalaureate certificate (including the coursework specified in paragraphs (3)(B) and (4)(B) of section 484(b)).

(C) Graduate credential

When used with respect to a credential or credential level, the term ‘graduate credential’ includes credentials such as a master’s degree, a doctoral degree, a professional degree, and a postgraduate certificate.

(d) Exemption of certain assets

(a) Terminations of and restrictions on loan authority

(b) Interim rules for enrolled borrowers

Section 455(a) of the Higher Education Act of 1965 (20 U.S.C. 1087e(a)) is amended by adding at the end the following:

(4) Interim exception for certain students

(A) Application of prior limits

Subparagraphs (C), (D), and (E) of paragraph (3), and paragraphs (5) and (6), shall not apply, during the expected time to credential described in subparagraph (B), with respect to an individual who, as of June 30, 2026—

(i)

is enrolled in a program of study at an institution of higher education; and

(ii)

has received a loan (or on whose behalf a loan was made) under this part for such program of study.

(B) Expected time to credential

For purposes of this paragraph, the expected time to credential of an individual shall be equal to the lesser of—

(i)

three academic years; or

(ii)

the period determined by calculating the difference between—

(I)

the program length (as defined in section 420W) for the program of study in which the individual is enrolled; and

(II)

the period of such program of study that such individual has completed as of the date of the determination under this subparagraph.

(c) Loan limits for unsubsidized loans and certain Federal Direct PLUS Loans

(a) Transition to income-based repayment plans

(b) Repayment plans

Section 455(d) of the Higher Education Act of 1965 (20 U.S.C. 1087e(d)) is amended—

(c) Elimination of authority to provide income contingent repayment plans

(d) Repayment Assistance Plan

Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e) is amended by adding at the end the following new subsection:

(q) Repayment Assistance Plan

(1) In general

Notwithstanding any other provision of this Act, beginning on July 1, 2026, the Secretary shall carry out an income-based repayment plan (to be known as the Repayment Assistance Plan), that shall have the following terms and conditions:

(A)

The total monthly repayment amount owed by a borrower for all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan shall be equal to the applicable monthly payment of a borrower calculated under paragraph (3)(B), except that the borrower may not be precluded from repaying an amount that exceeds such amount for any month.

(B)

The Secretary shall apply the borrower’s applicable monthly payment under this paragraph first toward interest due on each such loan, next toward any fees due on each loan, and then toward the principal of each loan.

(C)

Any principal due and not paid under subparagraph (B) or paragraph (2)(B) shall be deferred.

(D)

A borrower who is not in a period of deferment or forbearance shall make an applicable monthly payment for each month until the earlier of—

(i)

the date on which the outstanding balance of principal and interest due on all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan is $0; or

(ii)

the date on which the borrower has made 360 qualifying monthly payments.

(E)

The Secretary shall repay or cancel any outstanding balance of principal and interest due on a loan made under this part to a borrower—

(i)

who, for any period of time, participated in the Repayment Assistance Plan under this subsection;

(ii)

whose most recent payment for such loan prior to the loan cancellation under this subparagraph was made under such Repayment Assistance Plan; and

(iii)

who has made 360 qualifying monthly payments on such loan.

(F)

For the purposes of this subsection, the term qualifying monthly payment means any of the following:

(i)

An on-time applicable monthly payment under this subsection.

(ii)

An on-time monthly payment under the standard repayment plan under subsection (d)(7)(A)(i) of not less than the monthly payment required under such plan.

(iii)

A monthly payment under any repayment plan of not less than the monthly payment that would be required under a standard repayment plan under section 455(d)(1)(A) with a repayment period of 10 years.

(iv)

A monthly payment under section 493C of not less than the monthly payment required under such section, including a monthly payment equal to the minimum payment amount permitted under such section.

(v)

A monthly payment made before the date of enactment of this subsection under an income-contingent repayment plan carried out under section 455(d)(1)(D) (or under an alternative repayment plan in lieu of repayment under such an income-contingent repayment plan, if placed in such an alternative repayment plan by the Secretary) of not less than the monthly payment required under such a plan, including a monthly payment equal to the minimum payment amount permitted under such a plan.

(vi)

A month when the borrower did not make a payment because the borrower was in deferment due to an economic hardship described in section 435(o).

(vii)

A month that ended before the date of enactment of this subsection when the borrower did not make a payment because the borrower was in a period deferment or forbearance described in section 685.209(k)(4)(iv) of title 34, Code of Federal Regulations (as in effect on the date of enactment of this subsection).

(G)

With respect to carrying out section 494(a)(2) for the Repayment Assistance Plan, an individual may elect to opt out of the disclosures required under section 494(a)(2)(A)(ii) in accordance with the procedures established under section 493C(c)(2)(B).

(2) Balance assistance for distressed borrowers

(A) Interest subsidy

With respect to a borrower of a loan made under this part, for each month for which such a borrower makes an on-time applicable monthly payment required under paragraph (1)(A) and such monthly payment is insufficient to pay the total amount of interest that accrues for the month on all loans of the borrower repaid pursuant to the Repayment Assistance Plan under this subsection, the amount of interest accrued and not paid for the month shall not be charged to the borrower.

(B) Matching principal payment

With respect to a borrower of a loan made under this part and not in a period of deferment or forbearance, for each month for which a borrower makes an on-time applicable monthly payment required under paragraph (1)(A) and such monthly payment reduces the total outstanding principal balance of all loans of the borrower repaid pursuant to the Repayment Assistance Plan under this subsection by less than $50, the Secretary shall reduce such total outstanding principal balance of the borrower by an amount that is equal to—

(i)

the amount that is the lesser of—

(I)

$50; or

(II)

the total amount paid by the borrower for such month pursuant to paragraph (1)(A), minus

(ii)

the total amount paid by the borrower for such month pursuant to paragraph (1)(A) that is applied to such total outstanding principal balance.

(3) Definitions

In this paragraph:

(A) Adjusted gross income

The term adjusted gross income, when used with respect to a borrower, means the adjusted gross income (as such term is defined in section 62 of the Internal Revenue Code of 1986) of the borrower (and the borrower’s spouse, as applicable) for the most recent taxable year, except that, in the case of a married borrower who files a separate Federal income tax return, the term does not include the adjusted gross income of the borrower’s spouse.

(B) Applicable monthly payment

(i) In general

Except as provided in clause (ii), (iii), or (vi), the term applicable monthly payment means, when used with respect to a borrower, the amount equal to—

(I)

the applicable base payment of the borrower, divided by 12; minus

(II)

$50 for each dependent child of the borrower.

(ii) Minimum amount

In the case of a borrower with an applicable monthly payment amount calculated under clause (i) that is less than $10, the applicable monthly payment of the borrower shall be $10.

(iii) Final payment

In the case of a borrower whose total outstanding balance of principal and interest on all of the loans of the borrower that are repaid pursuant to the Repayment Assistance Plan is less than the applicable monthly payment calculated pursuant to clause (i) or (ii), as applicable, then the applicable monthly payment of the borrower shall be the total outstanding balance of principal and interest on all such loans.

(iv) Base payment

The amount of the applicable base payment for a borrower with an adjusted gross income of—

(I)

not more than $10,000, is $120;

(II)

more than $10,000 and not more than $20,000, is 1 percent of such adjusted gross income;

(III)

more than $20,000 and not more than $30,000, is 2 percent of such adjusted gross income;

(IV)

more than $30,000 and not more than $40,000, is 3 percent of such adjusted gross income;

(V)

more than $40,000 and not more than $50,000, is 4 percent of such adjusted gross income;

(VI)

more than $50,000 and not more than $60,000, is 5 percent of such adjusted gross income;

(VII)

more than $60,000 and not more than $70,000, is 6 percent of such adjusted gross income;

(VIII)

more than $70,000 and not more than $80,000, is 7 percent of such adjusted gross income;

(IX)

more than $80,000 and not more than $90,000, is 8 percent of such adjusted gross income;

(X)

more than $90,000 and not more than $100,000, is 9 percent of such adjusted gross income; and

(XI)

more than $100,000, is 10 percent of such adjusted gross income.

(v) Dependent child of the borrower

For the purposes of this paragraph, the term dependent child of the borrower means an individual who—

(I)

is under 17 years of age; and

(II)

is the borrower’s dependent child or another person who lives with and receives more than one-half of their support from the borrower.

(vi) Special rule

In the case of a borrower who is required by the Secretary to provide information to the Secretary to determine the applicable monthly payment of the borrower under this subparagraph, and who does not comply with such requirement, the applicable monthly payment of the borrower shall be—

(I)

the sum of the monthly payment amounts the borrower would have paid for each of the borrower’s loans made under this part under a standard repayment plan with a fixed monthly repayment amount, paid over a period of 10 years, based on the outstanding principal due on such loan when such loan entered repayment; and

(II)

determined pursuant to this clause until the date on which the borrower provides such information to the Secretary.

(e) Federal Consolidation Loans

Section 455(g) of the Higher Education Act of 1965 (20 U.S.C. 1087e(g)) is amended by adding at the end the following new paragraph:

(3) Consolidation loans made on or after July 1, 2026

Notwithstanding subsections (b)(5), (c)(2), and (c)(3)(A) and (B) of section 428C, a Federal Direct Consolidation Loan offered to a borrower under this part on or after July 1, 2026, may only be repaid pursuant to a repayment plan described in subsection (d)(7)(A)(i) or (ii) of this section, as applicable, and the repayment schedule of such a Consolidation Loan shall be determined in accordance with such repayment plan.

(f) Income-based repayment

(a) Heading amendment

Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended by striking the subsection heading and inserting the following: Deferment; forbearance.

(b) Sunset of economic hardship and unemployment deferments

Section 455(f) of the Higher Education Act of 1965 (20 U.S.C.1087e(f)) is amended—

(c) Forbearance on loans made under this part on or after July 1, 2025

Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended by adding at the end the following:

(8) Forbearance on loans made under this part on or after July 1, 2025

A borrower who receives a loan made under this part on or after July 1, 2025—

(A)

may only be eligible for a forbearance on such loan pursuant to section 428(c)(3)(B) that does not exceed 9 months during any 24-month period; and

(B)

in the case of a borrower who is serving in a medical or dental internship or residency program (as such program is described in section 428(c)(3)(A)(i)(I)), may be eligible for a forbearance on such loan pursuant to 428(c)(3)(A)(i)(I), during which—

(i)

for the first 4 12-month intervals, interest shall not accrue; and

(ii)

for any subsequent 12-month interval, interest shall accrue.

(a) Updating loan rehabilitation limits

(b) Minimum monthly payment amount

Section 428F(a)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 1078–6(a)(1)(B)) is amended by adding at the end the following: With respect a loan made under part D on or after July 1, 2025, a monthly payment amount described in subparagraph (A) may not be less than $10..

(a) Repayment Assistance Plan

Section 455(m)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)(1)(A)) is amended—

(b) Public service job

Section 455(m)(3)(B) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)(3)(B)) is amended—

(a) Foreign income and Federal Pell Grant eligibility

(b) Definition of full time enrollment for Federal Pell Grant eligibility

Section 401(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)) is further amended—

(c) Federal Pell Grant ineligibility due to a high student aid index

Section 401(b)(1) of the Higher Education Act of 1965 (20 U.S.C. 1070a–1(b)(1)) is amended by adding at the end the following:

(F) Ineligibility of students with a high student aid index

Notwithstanding subparagraphs (A) through (E), a student shall not be eligible for a Federal Pell Grant under this subsection for an academic year in which the student has a student aid index that equals or exceeds twice the amount of the total maximum Federal Pell Grant for such academic year.

(d) No Federal Pell grant eligibility for students enrolled less than half time

Section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) is further amended—

(e) Effective date and application

The amendments made by this section shall take effect on July 1, 2026, and shall apply with respect to award year 2026–2027 and each subsequent award year.

(a) In general

Section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) is amended by adding at the end the following:—

(k) Workforce pell grant program

(1) In general

For the award year beginning on July 1, 2026, and each subsequent award year, the Secretary shall award grants (to be known as Workforce Pell Grants) to eligible students under paragraph (2) in accordance with this subsection.

(2) Eligible students

To be eligible to receive a Workforce Pell Grant under this subsection for any period of enrollment, a student shall meet the eligibility requirements for a Federal Pell Grant under this section, except that the student—

(A)

shall be enrolled, or accepted for enrollment, in an eligible program under section 481(b)(3) (hereinafter referred to as an eligible workforce program); and

(B)

may not—

(i)

be enrolled, or accepted for enrollment, in a program of study that leads to a graduate credential; or

(ii)

have attained such a credential.

(3) Terms and conditions of awards

The Secretary shall award Workforce Pell Grants under this subsection in the same manner and with the same terms and conditions as the Secretary awards Federal Pell Grants under this section, except that—

(A)

each use of the term eligible program (except in subsections (b)(9)(A) and (d)(2)) shall be substituted by eligible workforce program under section 481(b)(3); and

(B)

a student who is eligible for a grant equal to less than the amount of the minimum Federal Pell Grant because the eligible workforce program in which the student is enrolled or accepted for enrollment is less than an academic year (in hours of instruction or weeks of duration) may still be eligible for a Workforce Pell Grant in an amount that is prorated based on the length of the program.

(4) Prevention of double benefits

No eligible student described in paragraph (2) may concurrently receive a grant under both this subsection and—

(A)

subsection (b); or

(B)

subsection (c).

(5) Duration limit

Any period of study covered by a Workforce Pell Grant awarded under this subsection shall be included in determining a student’s duration limit under subsection (d)(5).

(b) Program eligibility for workforce pell grants

Section 481(b) of the Higher Education Act of 1965 (20 U.S.C. 1088(b)) is amended—

(c) Student eligibility

Section 484(a)(1) of the Higher Education Act of 1965 (20 U.S.C. 1091(a)(1)) is amended by inserting or, for purposes of section 401(k), at an entity (other than an institution of higher education) that meets the requirements of section 481(b)(3)(B)(i) after section 487.

(d) Effective date; applicability

The amendments made by this section shall take effect on July 1, 2026, and shall apply with respect to award year 2026–2027 and each succeeding award year.

(1)

in clause (iii)—

(2)

in clause (iv)—

(3)

by adding at the end the following:

(v)

$3,743,000,000 for fiscal year 2028; and

(vi)

$1,236,000,000 for each succeeding fiscal year.

(1)

in subsection (a)—

(2)

by adding at the end the following new subsection:

(d) Reimbursement requirements

(1) Annual reimbursements required

Beginning in award year 2028–2029, each institution of higher education participating in the direct student loan program under this part shall, for qualifying student loans, remit to the Secretary, at such time as the Secretary may specify, an annual reimbursement for each student cohort of the institution, based on the non-repayment balance of such cohort and calculated in accordance with paragraph (3).

(2) Student cohorts

(A) Cohorts established

For each institution of higher education participating in the direct student loan program under this part, the Secretary shall establish student cohorts, beginning with award year 2027–2028, as follows:

(i) Completing student cohort

For each program of study at such institution, a student cohort comprised of all students who received Federal financial assistance under this title and who completed such program during such award year.

(ii) Undergraduate non-completing student cohort

For such institution, a student cohort comprised of all students who received Federal financial assistance under this title, who were enrolled in the institution during the previous award year in a program of study leading to an undergraduate credential, and who at the time the cohort is established—

(I)

have not completed such program of study; and

(II)

are not enrolled at the institution in any program of study leading to an undergraduate credential.

(iii) Graduate non-completing student cohort

For each program of study leading to a graduate credential at such institution, a student cohort comprised of all students who received Federal financial assistance under this title, who were enrolled in such program during the previous award year, and who at the time the cohort is established—

(I)

have not completed such program of study; and

(II)

are not enrolled in such program.

(B) Qualifying student loan

For the purposes of this subsection, the term qualifying student loan means a loan made under this part on or after July 1, 2027, that—

(i)

was made to a student included in a student cohort of an institution or to a parent on behalf of such a student;

(ii)

except in the case of a loan described in clause (i) or (ii) of subparagraph (C), is not included in any other student cohort of any institution of higher education;

(iii)

is not in—

(I)

a medical or dental internship or residency forbearance described in section 428(c)(3)(A)(i)(I), section 428B(a)(2), section 428H(a), or section 685.205(a)(3) of title 34, Code of Federal Regulations;

(II)

a graduate fellowship deferment described in section 455(f)(2)(A)(ii);

(III)

rehabilitation training program deferment described under section 455(f)(2)(A)(ii);

(IV)

an in-school deferment described under section 455(f)(2)(A)(i);

(V)

a cancer deferment described under section 455(f)(3);

(VI)

a military service deferment described under section 455(f)(2)(C); or

(VII)

a post-active duty student deferment described under section 493D; and

(iv)

is not in default.

(C) Special circumstances

(i) Multiple credentials

In the case of a student who completes two or more programs of study during the same award year, each qualifying student loan of the student shall be included in the student cohort for each of such program of study for such award year.

(ii) Treatment of certain consolidation loans

A Federal Direct Consolidation loan made under this title shall not be considered a qualifying student loan for a student cohort for an award year if all of the loans included in such consolidation loan are attributable to another student cohort.

(iii) Consolidation after inclusion in a student cohort

If a qualifying student loan is consolidated into a consolidation loan under this title after such qualifying student loan has been included in a student cohort, the percentage of the consolidation loan that was attributable to such student cohort at the time of consolidation shall remain attributable to the student cohort for the life of the consolidation loan.

(3) Calculation of reimbursement

(A) Reimbursement payment formula

For each student cohort of an institution of higher education established under this subsection, the annual reimbursement for such cohort shall be equal to—

(i)

the reimbursement percentage for the cohort, determined in accordance with subparagraph (B); multiplied by

(ii)

the non-repayment balance for the cohort for the award year, determined in accordance with subparagraph (C).

(B) Reimbursement percentage

The reimbursement percentage of a student cohort of an institution shall be determined by the Secretary when the cohort is established, shall remain constant for the life of the student cohort, and shall be determined as follows:

(i) Completing student cohorts

The reimbursement percentage of a completing student cohort shall be equal to the percentage determined by—

(I)

subtracting from one the quotient of—

(aa)

the median value-added earnings of students who completed such program of study in the most recent award year for which such earnings data is available; divided by

(bb)

the median total price charged to students included in such cohort; and

(II)

multiplying the difference determined under subclause (I) by 100.

(ii) Special circumstances for completing student cohorts

(I) High-risk cohorts

Notwithstanding clause (i), if the median value-added earnings of a completing student cohort under clause (i)(I)(aa) is negative, the reimbursement percentage of the student cohort shall be 100 percent.

(II) Low-risk cohorts

Notwithstanding clause (i), if the median value-added earnings of a completing student cohort under clause (i)(I)(aa) exceeds the median total price of such cohort under clause (i)(I)(bb), the reimbursement percentage of the student cohort shall be 0 percent.

(iii) Non-completing student cohorts

The reimbursement percentage of a non-completing student cohort shall be determined based on the most recent data available in the award year in which the cohort is established, and—

(I)

for an undergraduate non-completing student cohort, shall be equal to the percentage of undergraduate students who received Federal financial assistance under this title at such institution who—

(aa)

did not complete an undergraduate program of study at the institution within 150 percent of the program length of such program; or

(bb)

only in the case of a two-year institution, did not, within 6 years after first enrolling at the two-year institution, complete a program of study at a four-year institution for which a bachelor’s degree (or substantially similar credential) is awarded; and

(II)

for a graduate non-completing student cohort, shall be equal to the percentage of students who received Federal financial assistance under this title at the institution for the applicable graduate program of study and who did not complete such program of study within 150 percent of the program length.

(C) Non-repayment loan balance

(i) In general

For each award year, the Secretary shall determine the non-repayment loan balance for such award year for each student cohort of an institution of higher education by calculating the sum of—

(I)

for loans in such cohort, the difference between the total amount of payments due from all borrowers on such loans during such year and the total amount of payments made by all such borrowers on such loans during such year; plus

(II)

the total amount of interest waived, paid, or otherwise not charged by the Secretary during such year under the income-based repayment plan described in section 455(q); plus

(III)

the total amount of principal and interest forgiven, cancelled, waived, discharged, repaid, or otherwise reduced by the Secretary under any act during such year that is not included in subclause (II) and was not discharged or forgiven under section 437(a), 428J, or section 455(m).

(ii) Special circumstances

For the purpose of calculating the non-repayment loan balance of student cohorts under this paragraph, the Secretary shall—

(I)

for each qualifying student loan in a student cohort that is included in another student cohort because the student who borrowed such loan completed two or more programs of study during the same award year, the sum of the amounts described in subclauses (I) through (III) of clause (i) for such qualifying student loan shall be divided equally among each of the student cohorts in which such loan is included; and

(II)

for each consolidation loan in a student cohort—

(aa)

determine the percentage of the outstanding principal balance of the consolidation loan attributable to such student cohort—

(AA)

at the time of that loan was included in such cohort, in the case of a loan consolidated before inclusion in such cohort; or

(BB)

at the time of consolidation, in the case of a loan consolidated after inclusion in such cohort; and

(bb)

include in the calculations under clause (i) for such student cohort only the percentage of the sum of the amounts described in subclauses (I) through (III) of clause (i) for the consolidation loan for such year that is equal to the percentage of the consolidation loan determined under item (aa).

(D) Total price

With respect to a student who received Federal financial assistance under this title and who completes a program of study, the term total price means the total amount, before Federal financial assistance under this title was applied, a student was required to pay to complete the program of study. A student’s total price shall be calculated by the Secretary as the difference between—

(i)

the total amount of tuition and fees that were charged to such student before the application of any Federal financial assistance provided under this title; minus

(ii)

the total amount of grants and scholarships described in section 480(i) awarded to such student from non-Federal sources for such program of study.

(4) Notification and remittance

Beginning with the first award year for which reimbursements are required under this subsection, and for each succeeding award year, the Secretary shall—

(A)

notify each institution of higher education of the amounts and due dates of each annual reimbursement calculated under paragraph (3) for each student cohort of the institution within 30 days of calculating such amounts; and

(B)

require the institution to remit such payments within 90 days of such notification.

(5) Penalty for late payments

(A) Three-month delinquency

If an institution fails to remit to the Secretary a reimbursement for a student cohort as required under this subsection within 90 days of receiving notification from the Secretary in accordance with paragraph (4), the institution shall pay to the Secretary, in addition to such reimbursement, interest on such reimbursement payment, at a rate that is the average rate applicable to the loans in such student cohort.

(B) Twelve-month delinquency

If an institution fails to remit to the Secretary a reimbursement for a student cohort as required under this subsection, plus interest owed in under subparagraph (A), within 12 months of receiving notification from the Secretary in accordance with paragraph (4), the institution shall be ineligible to make direct loans to any student enrolled in the program of study for which the institution has failed to make the reimbursement payments until such payment is made.

(C) Eighteen-month delinquency

If an institution fails to remit to the Secretary a reimbursement for a student cohort as required under this subsection, plus interest owed under subparagraph (A), within 18 months of receiving notification from the Secretary in accordance with paragraph (4), the institution shall be ineligible to make direct loans or award Federal Pell Grants under section 401 to any student enrolled in the institution until such payment is made.

(D) Two-year delinquency

If an institution fails to remit to the Secretary a reimbursement for a student cohort as required under this subsection, plus interest owed under subparagraph (A), within 2 years of receiving notification from the Secretary in accordance with paragraph (4), the institution shall be ineligible to participate in any program under this title for a period of not less than 10 years.

(6) Relief for voluntary cessation of federal direct loans for a program of study

The Secretary shall, upon the request of an institution that voluntarily ceases to make Federal Direct loans to students enrolled in a specific program of study, reduce the amount of the annual reimbursement owed by the institution for each student cohort associated with such program by 50 percent if the institution assures the Secretary that the institution will not make Federal Direct loans to any student enrolled in such program of study (or any substantially similar program of study, as determined by the Secretary) for a period of not less than 10 award years, beginning with the first award year that begins after the date on which the Secretary reduces such reimbursement.

(7) Reservation of funds for promise grants

Notwithstanding any other provision of this Act, the Secretary shall reserve the funds remitted to the Secretary as reimbursements in accordance with this subsection, and such funds shall be made available to the Secretary only for the purpose of awarding PROMISE grants in accordance with subpart 11 of part A of this title.