A bill to establish partnership agreements between institutions of higher education and secondary schools.

Amends the Higher Education Act of 1965 to add a new title XII, University-High School Partnerships. (Redesignates the current title XII as title XIII.)

Authorizes appropriations for FY 1986 through 1990 for the new title XII, to encourage partnerships between institutions of higher education and secondary schools serving low-income students in order to support programs that: (1) improve the academic skills of secondary school students; (2) increase their opportunity to continue a program of education after high school; and (3) improve their prospects of employment after high school.

Requires, for purposes of eligibility for a title XII grant, an institution of higher education and a local education agency to enter into a written partnership agreement. Allows the partnership to include businesses, labor organizations, professional associations, community-based organizations, or other private or public agencies or associations. Requires all partners to sign the agreement. Requires the agreement to include a listing of all participants in the partnership, a description of their responsibilities, and a listing of the resources to be contributed by them.

Directs the Secretary of Education to reserve 65 percent of title XII funds for programs operating during the regular school year and 35 percent for summer programs.

Limits the amount of such a grant to between $250,000 to $1,000,000.

Allows the partnership to use the grant for programs that use college students to tutor high school students and that improve high school students' basic academic skills, their understanding of specified subjects, opportunity to continue a program of education after graduation, and their prospects for employment after graduation.

Directs the Secretary, in making such grants, to give preference to: (1) programs which will serve predominantly low-income communities; (2) partnerships which will run programs during the regular school year and the summer; and (3) programs which will serve educationally disadvantaged students, potential dropouts, pregnant adolescent and teen parents, or the gifted and talented.

Sets forth grant application requirements. Limits the Federal share of the cost of the project to no more than 70 percent in the first year, 60 percent in the second year, and 50 percent in the third year and any subsequent year.