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139 STAT. 349 PUBLIC LAW 119–21—JULY 4, 2025 (1) in clause (iii), by striking ‘‘; or’’ and inserting a semi- colon; (2) in clause (iv), by striking ‘‘; and’’ and inserting ‘‘(as in effect on the day before the date of the repeal of subsection (e) of this section); or’’; and (3) by adding at the end the following new clause: ‘‘(v) on-time payments under the Repayment Assistance Plan under subsection (q); and’’. SEC. 82005. STUDENT LOAN SERVICING. Paragraph (1) of section 458(a) of the Higher Education Act of 1965 (20 U.S.C. 1087h(a)(1)) is amended to read as follows: ‘‘(1) ADDITIONAL MANDATORY FUNDS FOR SERVICING.—There shall be available to the Secretary (in addition to any other amounts appropriated under any appropriations Act for administrative costs under this part and part B and out of any money in the Treasury not otherwise appropriated) $1,000,000,000 to be obligated for administrative costs under this part and part B, including the costs of servicing the direct student loan programs under this part, which shall remain available until expended.’’. Subtitle D—Pell Grants SEC. 83001. ELIGIBILITY. (a) FOREIGN INCOME AND FEDERAL PELL GRANT ELIGIBILITY.— (1) ADJUSTED GROSS INCOME DEFINED.—Section 401(a)(2)(A) of the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)(A)) is amended to read as follows: ‘‘(A) the term ‘adjusted gross income’ means— ‘‘(i) in the case of a dependent student, for the second tax year preceding the academic year— ‘‘(I) the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the student’s parents; plus ‘‘(II) for Federal Pell Grant determinations made for academic years beginning on or after July 1, 2026, the foreign income (as described in section 480(b)(5)) of the student’s parents; and ‘‘(ii) in the case of an independent student, for the second tax year preceding the academic year— ‘‘(I) the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the student (and the student’s spouse, if applicable); plus ‘‘(II) for Federal Pell Grant determinations made for academic years beginning on or after July 1, 2026, the foreign income (as described in section 480(b)(5)) of the student (and the student’s spouse, if applicable);’’. (2) SUNSET.—Section 401(b)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(1)(D)) is amended— (A) by striking ‘‘A student’’ and inserting ‘‘For each academic year beginning before July 1, 2026, a student’’; and Definition.