Section 1 Short title
This Act may be cited as the “Degrees Not Debt Act of 2022”.
Degrees Not Debt Act of 2022
A BILL
To increase the total maximum Federal Pell Grant, and for other purposes.
Sec. 2 Increase in the maximum amount of a Federal Pell Grant
Award year 2022–2023— Section 401(b)(7)(C) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(7)(C)) is amended—
in clause (i)(I), by striking “clause (iv)(II)” and inserting “clause (v)(II)”;
in clause (ii)(I), by striking “clause (iv)(II)” and inserting “clause (v)(II)”;
by amending clause (iii) to read as follows:
“(iii) Award years 2018–2019 through 2021–2022—For award years 2018–2019 through 2021–2022, the amount determined under this subparagraph for purposes of subparagraph (B)(iii) shall be equal to the amount determined under clause (ii) for award year 2017–2018.”
by redesignating clause (iv) as clause (v); and
by inserting after clause (iii) (as amended by this subsection) the following:
“(iv) Award year 2022–2023—For award year 2022–2023, the amount determined under this subparagraph for purposes of subparagraph (B)(iii) shall be equal to—
“(I) $13,800; reduced by
“(II) the maximum Federal Pell Grant for which a student was eligible for the preceding award year, as specified in the last enacted appropriation Act applicable to that year; and
“(III) rounded to the nearest $5.”
Award year 2023–2024 and subsequent award years—
Amendment to award amount— Section 401(b)(5)(A)(i) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(5)(A)(i)), as amended by section 703 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260), is amended to read as follows:
“(i) $13,800 reduced by the amount specified as the maximum Federal Pell Grant in the last enacted appropriation Act applicable to that award year, except that for each award year subsequent to award year 2023–2024, this clause shall be applied by substituting “the amount that is equal to $13,800, increased by a percentage equal to the annual adjustment percentage for the award year for which the amount under this subparagraph is being determined, then” for “$13,800”; and”
Definition— Section 401(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)), as amended by section 703 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260), is amended—
in subparagraph (E), by striking “and” after the semicolon;
in subparagraph (F), by striking the period and inserting “; and”; and
by adding at the end the following:
“(G) the term annual adjustment percentage as applied to an award year, is equal to the estimated percentage change in the Consumer Price Index (as determined by the Secretary, using the definition in section 478(f)) for the most recent calendar year ending prior to the beginning of that award year.”
Effective date— The amendments made by this subsection shall take effect as if included in section 703 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260) and in accordance with section 701(b) of such Act.
Sec. 3 Repeal of increased alternative minimum tax exemption amount for individuals
In general— Section 55(d) of the Internal Revenue Code of 1986 is amended by striking paragraph (4).
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2021.
Sec. 4 Repeal of increased estate and gift tax exemption
In general— Section 2010(c)(3)(C) of the Internal Revenue Code of 1986 is amended by striking “January 1, 2026” and inserting “the date of the enactment of the Degrees Not Debt Act of 2022”.
Effective date— The amendment made by this section shall apply to estates of decedents dying and gifts made after the date of the enactment of this Act.