This bill directs the Secretary of Education to establish a program providing grants to states to facilitate the transition to tuition-free community college for eligible students. The primary goal is to increase access to postsecondary education, meet the growing demand for skilled workers, and enhance economic mobility by supporting students and institutions.

To receive a grant, states must submit a comprehensive application outlining a State plan. This plan includes formalizing an interagency committee to evaluate workforce and education gaps, maximize resources, and develop pathways for economic mobility. States must also plan to align secondary and postsecondary education requirements, facilitate diploma completion at community colleges, and ensure transferability of credits.

The bill prioritizes assistance for individuals facing barriers to employment, those with incomes below 200 percent of the poverty level, or those without a recognized postsecondary credential. State plans must detail how they will maximize public resources to support students with non-tuition costs such as

transportation
housing
childcare
food assistance

and conduct outreach to underserved populations.

A core provision ensures that eligible students enrolled in participating community colleges are not charged tuition or fees. Furthermore, their eligibility for federal financial aid, such as Pell Grants, or other assistance will not be affected unless the total aid exceeds their annual cost of attendance, preventing displacement of existing aid.

States are required to award subgrants to eligible institutions to improve their capacity and provide wraparound services. These services include identifying and addressing student needs like housing and childcare, hiring additional staff and navigators, increasing access to technology, and expanding career pathways in in-demand industries.

Additionally, states must award subgrants directly to eligible students as emergency aid to address financial challenges that could hinder their enrollment. These challenges can include lack of access to employment, transportation, childcare, housing, food insecurity, or medical conditions, with subgrant amounts capped at $1,500 for students without dependents and $2,500 for those with dependents.

The grants are awarded for a period of five years, with a minimum of four years for implementation, and the federal cost share for the tuition-free component is 100 percent. Grant amounts are determined based on factors such as statewide unemployment and poverty rates, and whether a state already operates a tuition-free community college program.

Both states and institutions are mandated to submit annual reports detailing the use of funds, progress, and outcomes such as graduation and retention rates. The Secretary of Education will make this data publicly available through a dashboard to ensure transparency and accountability, with disaggregation by race, ethnicity, and income level where practicable.