PRINTER'S NO. 238
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.304
Session of
2025
INTRODUCED BY MASTRIANO, PENNYCUICK, ROTHMAN, ROBINSON, CULVER,
HUTCHINSON AND J. WARD, FEBRUARY 25, 2025
REFERRED TO EDUCATION, FEBRUARY 25, 2025
AN ACT
Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
act relating to the public school system, including certain
provisions applicable as well to private and parochial
schools; amending, revising, consolidating and changing the
laws relating thereto," providing for military education
scholarship account; and imposing penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 10, 1949 (P.L.30, No.14), known
as the Public School Code of 1949, is amended by adding an
article to read:
ARTICLE XX-N
MILITARY EDUCATION SCHOLARSHIP ACCOUNT
Section 2001-N. Scope of article.
This article relates to military education scholarship
accounts.
Section 2002-N. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20 "Applicant." A parent who applies for a military education
scholarship account under section 2003-N(b) on behalf of an
eligible student.
"Department." The Department of Education of the
Commonwealth.
"Eligible student." A school-age child who meets the
requirements under section 2003-N(b) and whose parent has
entered into an agreement under section 2003-N(d).
"Institution of higher education." As defined under section
118(c).
"Military education scholarship account." A spending account
established and administered by the State Treasury, and
controlled by a parent, for a school-age child with money that
may be spent on a qualified education expense as provided for
under section 2005-N.
"Nonpublic school." A school, other than a public school,
located in this Commonwealth where a Commonwealth resident may
legally fulfill the compulsory attendance requirements of this
act, that complies with section 1521 and meets the applicable
requirements of 42 U.S.C. Ch. 21 Subch. V (relating to federally
assisted programs).
"Parent." An individual who:
(1) is a resident of this Commonwealth; and
(2) either:
(i) has legal custody or guardianship of a student;
or
(ii) keeps in the individual's home a student and
supports the student gratis as if the student were a
lineal descendant of the individual.
"Participating entity."
20250SB0304PN0238 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 (1) Any of the following where a school-age child
receives instruction under section 2003-N(d):
(i) A nonpublic school for kindergarten through
grade 12, or a combination of grades.
(ii) An institution of higher education.
(iii) A distance learning program that is not
offered by a public school or the department.
(iv) A tutor who is a teacher licensed in any state,
has taught at an eligible postsecondary institution and
is a subject matter expert or a tutor or tutoring agency
otherwise approved by the department.
(2) The term does not include a parent of a school-age
child to the extent that the parent provides educational
services directly to the school-age child.
"Program." The Military Education Scholarship Account
Program established under section 2003-N(a).
"Public school." A school district, charter school, cyber
charter school, regional charter school, intermediate unit or
area career and technical school.
"Resident school district." The school district in which a
school-age child resides.
"School-age child." A child enrolled in kindergarten through
grade 12 and who resides in this Commonwealth.
"Student with a disability." A school-age child who has been
identified, in accordance with 22 Pa. Code Ch. 14 (relating to
special education services and programs), as a "child with a
disability," as defined in 34 CFR 300.8(a) (relating to child
with a disability).
Section 2003-N. Establishment, application and agreement.
(a) Establishment.--The Military Education Scholarship
20250SB0304PN0238 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 Account Program is established as a program of the department.
(b) Individuals who may apply.--A parent may apply for a
military education scholarship account for a school-age child
who:
(1) is a child of a parent who is on full-time active-
duty status in the armed forces of the United States,
including members of the National Guard and reserve on active
duty orders under 10 U.S.C. §§ 12301 (relating to reserve
components generally) and 12401 et seq. (relating to Army and
Air National Guard of the United States: status) or was
killed in the line of duty; or
(2) participated in the program in the prior year and is
renewing an agreement under subsection (i) by filing an
application with the department, in a manner and on a form
provided by the department.
(c) Application form.--The form may not exceed one page that
measures 8.5 inches by 11 inches and may be filled out and
submitted through the department's publicly accessible Internet
website.
(d) Review and approval.--The department shall review the
application to determine if the applicant meets the requirements
under subsection (b). If the requirements have been met, the
department shall approve the application and enter into an
agreement with the applicant. The agreement shall provide that:
(1) The school-age child withdraw from public school and
receive instruction in this Commonwealth from a participating
entity for the school year for which the agreement applies.
(2) The school-age child not accept a scholarship in the
educational improvement tax credit program under Article XX-B
or the opportunity scholarship tax credit program under
20250SB0304PN0238 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 Article XX-B.
(3) The parent will receive a grant on behalf of the
school-age child, in the form of money deposited under
section 2004-N in the military education scholarship account.
(4) The money in the military education scholarship
account may be expended only as authorized under this
article.
(e) Military education scholarship account.--
(1) If an agreement is entered into under subsection
(d), a military education scholarship account shall be
established. The military education scholarship account shall
be administered by the State Treasury under this article.
(2) Failure of a parent to enter into an agreement under
subsection (d) for a school year shall not preclude the
parent from entering into an agreement for a subsequent
school year if the school-age child is eligible under
subsection (b).
(f) Term of agreement.--An agreement entered into under
subsection (d) shall be valid for one school year.
(g) Termination.--
(1) Notwithstanding subsection (h), an agreement entered
into under subsection (d) may be terminated early.
(2) If an agreement is terminated early by either the
parent or the department, all available money in the military
education scholarship account shall revert to the State
Treasury and be used in the resident school district.
(h) Automatic termination.--
(1) An agreement entered into under subsection (d) shall
terminate automatically if the school-age child no longer
resides in this Commonwealth.
20250SB0304PN0238 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 (2) The parent shall notify the department if the child
no longer resides in this Commonwealth within 15 days of the
change of residence. After the child's parent has notified
the department, money remaining in the military education
scholarship account shall revert to the State Treasury and be
used in the resident school district.
(i) Renewal.--
(1) Subject to subsection (l), an agreement entered into
under subsection (d) may be renewed for each school year for
the school-age child.
(2) Failure of a parent to renew an agreement for a
school year shall not preclude a parent from renewing the
agreement for a subsequent school year if the school-age
child remains eligible under subsection (b).
(j) Number.--A parent may enter into separate agreements
under subsection (d) for each school-age child of the parent.
Not more than one military education scholarship account may be
established for a school-age child.
(k) Explanation.--Upon entering into an agreement under
subsection (d) or renewing an agreement under subsection (i),
the department shall provide the parent with a written
explanation of the authorized uses of the money in the military
education scholarship account and the responsibilities of the
parent, the department and the State Treasury under the
agreement and this article.
(l) Application and renewal period.--
(1) A parent may apply or seek renewal between January 1
and April 1 for the following school year.
(2) The department shall notify parents and school
districts of approved applications by April 30.
20250SB0304PN0238 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 Section 2004-N. Amount.
(a) Grant.--If a parent of an eligible student enters into
or renews an agreement under section 2003-N with the department
for a school year, the Secretary of Education shall deposit a
grant for that school year in the military education scholarship
account of the eligible student. The amount of the grant shall
be as follows:
(1) For an eligible student who does not have a
disability, the grant amount shall be equal to the State
revenue received by school districts minus the State revenue
received for transportation divided by the State total
average daily membership.
(2) For an eligible student with a disability, the grant
amount shall be based on the category of disability by which
the resident school district is required to categorize the
eligible student with a disability for the purpose of the
report required under section 1372(8) as follows:
(i) For an eligible student in Category 1, multiply
the grant amount in paragraph (1) by 1.51.
(ii) For an eligible student in Category 2, multiply
the grant amount in paragraph (1) by 3.77.
(iii) For an eligible student in Category 3A and 3B,
multiply the grant amount in paragraph (1) by 7.46.
(3) For an eligible student receiving a grant, the
amount of basic education funding and other subsidies paid by
the department to the resident school district shall be
reduced by the grant amount calculated for the student.
(4) If a school district's basic education funding and
other subsidies are reduced under this section, the resident
school district shall include the grant recipient in the
20250SB0304PN0238 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 resident school district's average daily membership for the
purpose of calculating school subsidies.
(b) Installments.--The State Treasury shall deposit the
money for each grant in quarterly installments under a schedule
determined by the State Treasury.
(c) Disposition.--The following shall apply to money
remaining in a military education scholarship account:
(1) For money remaining in a military education
scholarship account at the end of a school year, the money
may be carried forward to any other school year of the
eligible student if the agreement entered into under section
2003-N(d) is renewed for the other school year.
(2) Subject to paragraph (3), money remaining in a
military education scholarship account when an agreement
entered into under section 2003-N(d) is not renewed or is
terminated shall revert to the resident school district.
(3) Money remaining in a military education scholarship
account after the school-age child graduates from high school
may be used for qualified education expenses under section
2005-N for up to two years after the date of high school
graduation. After the two-year time period under this
paragraph has expired, money remaining in the military
education scholarship account shall revert to the General
Fund.
Section 2005-N. Qualified education expenses.
(a) Use.--Money deposited into a military education
scholarship account may be used to pay for any of the following
expenses incurred by or associated with the school-age child:
(1) Tuition and fees charged by a participating entity.
(2) Textbooks or uniforms required by a participating
20250SB0304PN0238 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 entity.
(3) Fees for tutoring or other teaching services
provided by a participating entity.
(4) Fees for a nationally norm-referenced test, advanced
placement or similar examination or standardized examination
required for admission to an institution of higher education,
and career and technical education examination fees.
(5) Fees for purchasing a curriculum or instructional
materials required to administer the curriculum.
(6) If the eligible student is a student with a
disability, fees for special instruction or special services
provided to the eligible student, including occupational,
physical, speech and behavioral therapies.
(7) Other valid educational expenses approved by the
department.
(b) Prohibitions.--A participating entity that receives a
payment for qualified education expenses authorized under
subsection (a) may not:
(1) Refund a portion of the payment directly to the
parent who made the payment.
(2) Rebate or otherwise directly share a portion of the
payment with the parent who made the payment.
(c) Refund.--A participating entity shall deposit a refund
for an item that is being returned or an item or service that
has not been provided directly to the military education
scholarship account of the school-age child from which payment
for the item or service was made.
(d) Payment system.--
(1) The State Treasury shall develop a system that
enables a parent to pay for services provided by
20250SB0304PN0238 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 participating entities under the program by electronic money
transfer, including electronic payment systems or other means
of electronic payment that the State Treasury determines to
be commercially viable and cost effective.
(2) The State Treasury may not adopt a system that
requires a parent to be reimbursed for out-of-pocket
expenses.
(e) Source of payment.--
(1) An individual may not deposit personal money into or
otherwise make gifts or contributions of private money to a
military education scholarship account.
(2) Nothing in this section shall be construed to
prohibit a parent or school-age child from paying for
qualified education expenses from a source other than the
military education scholarship account.
Section 2006-N. Audits and penalties.
(a) Audit.--The Attorney General shall conduct audits of a
military education scholarship account as the State Treasurer
determines necessary.
(b) Penalties.--If the State Treasury determines that money
in a military education scholarship account has been expended
for an expense other than a qualified education expense under
section 2005-N(a), the State Treasury may do any of the
following:
(1) Freeze or dissolve the military education
scholarship account, in accordance with regulations adopted
by the State Treasury for notice of the action and
opportunity to respond to the notice.
(2) Refer the matter to the Attorney General or district
attorney of the county in which the parent resides for
20250SB0304PN0238 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 investigation and criminal prosecution, if appropriate.
(3) Impose a civil penalty equal to 300% of the amount
in the military education scholarship account prior to the
fraudulent use.
(4) Disqualify the parent from future participation in
the program.
Section 2007-N. Accountability standards for a participating
entity.
(a) Compliance.--A participating entity shall:
(1) Comply with all health and safety laws or codes that
apply to the participating entity.
(2) Hold a valid occupancy permit if required by the
municipality in which the participating entity is located.
(3) Comply with the nondiscrimination policies set forth
in section 42 U.S.C. § 1981 (relating to equal rights under
the law) and with section 1521.
(4) Comply with sections 111 and 111.1.
(b) Financial accountability standards.--A participating
entity shall:
(1) Provide parents with a receipt for all qualifying
expenses incurred by the participating entity.
(2) File with the department prior to the start of the
school year financial viability documentation which
demonstrates the participating entity's ability to repay
$50,000 or more from the military education scholarship
accounts during the school year. The financial viability
documentation shall include:
(i) a surety bond payable to the Commonwealth in an
amount equal to the aggregate amount of money from the
military education scholarship accounts expected to be
20250SB0304PN0238 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 paid during the school year on behalf of eligible
students admitted at the participating entity; or
(ii) financial information that demonstrates that
the participating entity has the ability to pay an
aggregate amount equal to the amount of money from the
military educational scholarship accounts expected to be
paid during the school year on behalf of eligible
students admitted to the participating entity.
(c) Academic accountability standards.--
(1) A parent of an eligible student shall ensure that
the department is informed of the eligible student's
graduation from high school.
(2) The department shall:
(i) Ensure compliance with all student privacy laws,
including 20 U.S.C. § 1232g (relating to family
educational and privacy rights).
(ii) Administer an annual parental satisfaction
survey that shall ask parents of eligible students
participating in the program to express:
(A) The parents' satisfaction with the program.
(B) The number of years the eligible student has
participated in the program.
(C) The parents' opinions on other topics, items
or issues that the department determines would elicit
information about the effectiveness of the program.
(d) Participating entity autonomy.--
(1) A participating entity shall be autonomous and may
not be an agent of the department or the Commonwealth.
(2) The department or any other State agency may not
regulate the educational program of a participating entity
20250SB0304PN0238 - 12 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 that accepts money from a military education scholarship
account.
(3) The establishment of the program may not be
construed to expand the regulatory authority of the State,
the officers of the State or any school district to impose
any additional regulation of a participating entity beyond
those necessary to enforce the requirements of the program.
Section 2008-N. Bar of certain participating entities.
(a) Bar from participation.--The department may bar a
participating entity from participation in the program if the
department establishes that the participating entity has:
(1) routinely failed to comply with the accountability
standards established in section 2007-N; or
(2) failed to provide an eligible student with the
educational services funded by the eligible student's
military education scholarship account.
(b) Notice.--If the department bars a participating entity
from participation in the program, the department shall post the
decision on the department's publicly accessible Internet
website. A participating entity may appeal the department's
decision under this section.
Section 2009-N. Duties of resident school districts.
(a) School records.--A resident school district shall
provide a participating entity that has admitted an eligible
student participating in the program with a complete copy of the
student's school records immediately upon the student's
enrollment or when services in the participating entity begin,
subject to 20 U.S.C. § 1232g (relating to family educational and
privacy rights).
(b) Transportation.--A resident school district shall
20250SB0304PN0238 - 13 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 provide transportation for an eligible student to and from the
participating entity under the same conditions as the resident
school district provides transportation of other resident
students to nonpublic schools under section 1361. The resident
school district shall qualify for State transportation
reimbursement for each eligible student transported.
Section 2010-N. Legal proceedings.
(a) Liability.--No liability shall arise on the part of the
agency, the Commonwealth or a public school or school district
based on the award or use of a military education scholarship
account under this article.
(b) Challenges.--If any part of this article is challenged
in a State court as violating either the Constitution of the
United States or the Constitution of Pennsylvania, parents of
eligible students and students who previously had a military
education scholarship account shall be permitted to intervene as
of right in the lawsuit for the purposes of defending the
military education scholarship account program's
constitutionality. For the purposes of judicial administration,
a court may require that all parents file a joint brief but may
not require all parents to join a brief filed on behalf of a
named State defendant.
(c) Severability.--If any provision of this article or the
application thereof to any person or circumstance is held
invalid, the invalidity shall not affect other provisions or
applications of this article which can be given effect without
the invalid provision or application, and to this end the
provisions of this article are declared to be severable.
Section 2011-N. Listing of participating entities.
The department shall annually post on the department's
20250SB0304PN0238 - 14 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 publicly accessible Internet website a listing of all
participating entities.
Section 2012-N. Regulations.
The State Treasury and the department shall jointly develop
guidelines as necessary for the administration of this article
within 60 days of the effective date of this section.
Section 2. This act shall take effect in 60 days.
20250SB0304PN0238 - 15 -
1
2
3
4
5
6
7