A r c h i v e d  I n f o r m a t i o n

U.S. Department of Education

PRESIDENTIAL HONORS SCHOLARSHIP ACT OF 1996

Bill to Authorize Presidential Honors Scholarships
Section-By-Section Analysis
Letters to Speaker Gingrich and Vice President Gore


A Bill

To amend the Higher Education Act of 1965 to authorize Presidential Honors Scholarships to be awarded to all secondary school students in the top five percent of their graduating class, to promote and recognize high academic achievement in secondary school, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Presidential Honors Scholarship Act of 1996".

PRESIDENTIAL HONORS SCHOLARSHIP PROGRAM

SEC. 101. Part A of Title IV of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is amended by adding immediately after subpart 6 the following new subpart:

"SUBPART 7--PRESIDENTIAL HONORS SCHOLARSHIP PROGRAM

"PRESIDENTIAL HONORS SCHOLARSHIP PROGRAM

"SEC. 420A. (a) PURPOSE.--It is the purpose of this subpart to establish a Presidential Honors Scholarship program to encourage high academic achievement in public and private secondary schools and to recognize and reward the achievement of their outstanding graduates.

"(b) PROGRAM AUTHORITY.--The Secretary is authorized, in accordance with this subpart, to carry out a program of recognizing high academic achievement in public and private secondary schools by awarding scholarships to all students in the top five percent of their graduating class, and thereby encouraging students to excel in their secondary studies and pursue postsecondary education.

"(c) AUTHORIZATION OF APPROPRIATIONS.--There are authorized to be appropriated $130,000,000 for fiscal year 1998, and such sums as may be necessary for each of the four succeeding fiscal years, to carry out the purposes of this subpart. Funds shall remain available for obligation until the end of the fourth fiscal year immediately succeeding the fiscal year for which such funds were appropriated.

"(d) TERMS OF SCHOLARSHIPS.--(1) AMOUNT OF SCHOLARSHIP.--(A) The amount of a scholarship awarded under this subpart shall be $1,000.

"(B) Notwithstanding subparagraph (A), if funds available in a fiscal year are insufficient to fully fund all scholarships under this subpart, the amount paid to each student shall be reduced proportionately.

"(C) Notwithstanding any other provision in this title, a scholarship awarded under this part--

"(i) shall not be counted in determining the student's need for grant, loan, or work assistance under this title; and

"(ii) may, alone or in combination with other grant, loan, or work assistance received under this title, exceed the student's cost of attendance, as defined in section 472.

"(2) PERIOD OF SCHOLARSHIPS.--A student who satisfies the requirements of subsection (f) may receive a scholarship under this subpart for a period of not more than one academic year of postsecondary education or training on at least a half-time basis, as determined by the institution.

"(3) SCHOLARSHIP PROCEEDS.-- (A) USE AND AVAILABILITY.--Scholarship proceeds shall be used for the scholarship recipient's first year of postsecondary education or training, and shall remain available for such use for not more than three academic years following his or her graduation from secondary school.

"(B) DISBURSAL.--Scholarship proceeds shall be disbursed on behalf of students who receive scholarships under this subpart to the institutions of higher education at which the students are enrolled. No scholarship proceeds shall be disbursed on behalf of a student until the student is enrolled at an institution of higher education on at least a half-time basis, as determined by such institution.

"(4) USE AT ANY INSTITUTION PERMITTED.--A scholarship awarded under this subpart may be used to attend any institution of higher education, as defined in section 481.

"(e) SELECTION OF SCHOLARS.--(1) IN GENERAL.--Scholarships shall be awarded to all students who rank in the top five percent of the graduating class of each secondary school that participates in the program under this subpart. Ranking procedures shall be established by each such school, but may not include any non-academic or extracurricular factors.

"(2) ANNUAL ANNOUNCEMENT OF SCHOLARSHIPS.--Each participating school shall announce the availability of scholarships under this subpart, and its selection procedures, to all students in the school, and their parents, at the beginning of each academic year.

"(3) RECORDS.--Each participating school shall maintain records of its selection procedures, the names of the students selected, and such other related information as the Secretary may require.

"(f) STUDENT ELIGIBILITY.--In order to receive a scholarship under this subpart, a student must--

"(1) rank in the top five percent of the graduating class at the secondary school that he or she attends, as established by such school in accordance with subsection (e); and

"(2) meet the requirements of section 484.

"(g) RECOGNITION OF SCHOLARSHIP RECEIPT.--(1) DESIGNATION OF SCHOLARSHIP RECIPIENTS.--Students awarded scholarships under this subpart shall be known as 'Presidential Honors Scholars.'

"(2) CERTIFICATES; CEREMONIES.--The Secretary shall provide each student awarded a scholarship under this subpart a certificate from the President that indicates that the recipient is a Presidential Honors Scholar. The certificates shall be provided through the secondary schools that selected such students. Such schools may present these certificates in appropriate ceremonies.".

"(h) EVALUATION.--The Secretary shall, from time to time, conduct an evaluation of the program authorized by this subpart.

"(i) SECRETARIAL AUTHORITY.--In order to carry out the purposes of this subpart, the Secretary may, from time to time, establish policies, procedures, and requirements, set deadlines, and require information.".

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Section-by-Section Analysis

Section 101. Section 101 of the bill would add a new Subpart 7 to Part A of Title IV of the Higher Education Act of 1965 (hereinafter referred to as "the Act") to authorize a new Presidential Honors Scholarship (PHS) Program. The Secretary would be authorized to award scholarships of $1,000 to all students who demonstrate high levels of academic achievement (by being in the top five percent of their graduating class) in public and private secondary schools for their first year of postsecondary education. Appropriations of $130,000,000 would be authorized for the PHS program for fiscal year 1998, and such sums as may be necessary would be authorized for fiscal years 1998-2001. Funds would remain available for expenditure for four fiscal years after the fiscal year for which the funds were appropriated, in order to accommodate reasonably any scholarship recipients that may delay their enrollment in postsecondary education, for whatever reason. It is estimated that there would be approximately 130,000 recipients in the first year of the program's operation.

One of the best predictors of a student's success in postsecondary education is a solid academic foundation obtained at the secondary school level. The PHS program would encourage high academic achievement in secondary school and provide Federal recognition of that achievement; it would encourage students to continue their studies by providing resources for postsecondary education.

The Presidential Honors Scholarship of $1,000 would be used for the scholarship recipient's first year of postsecondary education or training and would remain available for such use for not more than three academic years following his or her graduation from secondary school, in the event that a student eligible to receive a scholarship does not immediately enter postsecondary education. The scholarship recipient must enroll in that education or training on at least half-time basis, as determined by the institution of higher education. The scholarship could be used at any institution of higher education (as defined in section 481 of the Act), and would be disbursed through the institution at which the scholarship recipient is enrolled. Because it is an honorific award intended to reward recipient's hard work and outstanding achievement, the Presidential Honors Scholarship would not be counted in determining the student's need for other title IV, HEA assistance, nor would the scholarship be reduced if it, alone or in combination with other title IV assistance, exceeded the student's cost of attendance, as defined in section 472 of the Act. However, if sufficient funds are not appropriated to fund all Presidential Honors Scholarships at the $1,000 level, the scholarship amount would be reduced proportionately.

Scholarship recipients would be selected by the public or private secondary school which they attend. Each such school that chooses to participate in the PHS program would establish its own ranking procedures to determine which of its students are in the top five percent of its graduating class, but those procedures may not include any non-academic or extracurricular factors. In addition to ranking in the top five percent of his or her graduating class, an otherwise eligible student must meet the applicable requirements in section 484 of the Act in order to receive a Presidential Honors Scholarship.

Each participating school would be required to announce the availability of Presidential Honors Scholarships, and its selection procedures, to all of its students and their parents at the beginning of each academic year. Each school would also be required to maintain records of its selection procedures, the names of the students selected, and other related information.

Scholarship recipients would be known as "Presidential Honors Scholars," and would receive, through their secondary school, a certificate from the President. Schools would be encouraged to present these certificates in appropriate ceremonies.

Finally, the Secretary would be required to conduct periodic program evaluations, and would be authorized to establish policies, procedures, and requirements, set deadlines, and require information necessary to carry out the PHS program.


Letters to Speaker Gingrich and Vice President Gore

September 26, 1996

Honorable Newt Gingrich
Speaker of the House of Representatives
Washington, D.C. 20515

Dear Mr. Speaker:

I am enclosing for the consideration of the Congress the Administration's legislative proposal entitled the "Presidential Honors Scholarship Act of 1996." Accompanying the legislative language is a section-by-section analysis explaining the bill's provisions. This important new program is designed to encourage high academic performance in public and private secondary schools by recognizing and rewarding the achievements of all students graduating in the top five percent of every high school in the Nation.

Enactment of the Presidential Honors Scholarship (PHS) program would make a strong statement that America cares about the quality of its educational system by emphasizing the need for high academic standards and outstanding scholarship. It would signal that the Nation encourages the best possible academic performance of its students. And it would embody the American Dream that if you work hard, you will be rewarded. All high school graduates who rank in the top five percent of their class would be rewarded with recognition by the President for their hard work together with tangible financial resources for pursuit of the postsecondary education of their choice.

Under the Presidential Honors Scholarship program, qualifying students would be provided with one-time $1,000 scholarships to help meet the costs of attendance of their first year of study at an institution of postsecondary education. PHS recipients could defer using their award for enrollment at a postsecondary institution for up to three years. Each high school participating in the PHS program would develop its own academically-based criteria for determining the top five percent of its graduating class, and would announce those criteria so that all of its students are encouraged to strive for excellence. Schools also would be encouraged to hold appropriate awards ceremonies each year to recognize the accomplishments of PHS recipients and to distribute PHS certificates of achievement from the President.

The delivery system for the Presidential Honors Scholarship program would be similar to the Department's general Title IV student financial aid delivery system. Postsecondary institutions would draw Federal funds for each eligible Scholar based on information on recipients provided by the Department and the high school.

The Presidential Honors Scholarship program would promote both financial access to postsecondary education and academic excellence in secondary school. For these reasons I urge you to act on this legislation at your earliest convenience.

The Office of Management and Budget advises that there is no objection to the submission of this legislation to the Congress and that its enactment would be in accord with the program of the President.

An identical letter is being sent to the President of the Senate. I look forward to working with you on this issue.

Yours sincerely,

Richard W. Riley


September 26, 1996

Honorable Albert Gore, Jr.
President of the Senate
Washington, D.C. 20510
Dear Mr. President:

I am enclosing for the consideration of the Congress the Administration's legislative proposal entitled the "Presidential Honors Scholarship Act of 1996." Accompanying the legislative language is a section-by-section analysis explaining the bill's provisions. This important new program is designed to encourage high academic performance in public and private secondary schools by recognizing and rewarding the achievements of all students graduating in the top five percent of every high school in the Nation.

Enactment of the Presidential Honors Scholarship (PHS) program would make a strong statement that America cares about the quality of its educational system by emphasizing the need for high academic standards and outstanding scholarship. It would signal that the Nation encourages the best possible academic performance of its students. And it would embody the American Dream that if you work hard, you will be rewarded. All high school graduates who rank in the top five percent of their class would be rewarded with recognition by the President for their hard work together with tangible financial resources for pursuit of the postsecondary education of their choice.

Under the Presidential Honors Scholarship program, qualifying students would be provided with one-time $1,000 scholarships to help meet the costs of attendance of their first year of study at an institution of postsecondary education. PHS recipients could defer using their award for enrollment at a postsecondary institution for up to three years. Each high school participating in the PHS program would develop its own academically-based criteria for determining the top five percent of its graduating class, and would announce those criteria so that all of its students are encouraged to strive for excellence. Schools also would be encouraged to hold appropriate awards ceremonies each year to recognize the accomplishments of PHS recipients and to distribute PHS certificates of achievement from the President.

The delivery system for the Presidential Honors Scholarship program would be similar to the Department's general Title IV student financial aid delivery system. Postsecondary institutions would draw Federal funds for each eligible Scholar based on information on recipients provided by the Department and the high school.

The Presidential Honors Scholarship program would promote both financial access to postsecondary education and academic excellence in secondary school. For these reasons I urge you to act on this legislation at your earliest convenience.

The Office of Management and Budget advises that there is no objection to the submission of this legislation to the Congress and that its enactment would be in accord with the program of the President.

An identical letter is being sent to the Speaker of the House. I look forward to working with you on this issue.

Yours sincerely,

Richard W. Riley

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