I
118THCONGRESS
1
STSESSION H. R. 463
To have education funds follow the student.
IN THE HOUSE OF REPRESENTATIVES
JANUARY24, 2023
Mr. G
OODof Virginia (for himself, Mrs. MILLERof Illinois, and Mr. BUR-
GESS) introduced the following bill; which was referred to the Committee
on Ways and Means, and in addition to the Committee on Education and
the Workforce, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned
A BILL
To have education funds follow the student.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Children Have Oppor-4
tunities in Classrooms Everywhere Act’’. 5
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SEC. 2. FEDERAL FUNDING UNDER THE ELEMENTARY AND 1
SECONDARY EDUCATION ACT OF 1965 TO 2
FOLLOW THE STUDENT. 3
Title VIII of the Elementary and Secondary Edu-4
cation Act of 1965 (20 U.S.C. 7801 et seq.) is amended 5
by adding at the end the following: 6
‘‘PART H—FUNDS TO FOLLOW THE STUDENT 7
‘‘SEC. 8701. FUNDS TO FOLLOW THE STUDENT. 8
‘‘(a) D
EFINITIONS.—In this section: 9
‘‘(1) 529
EDUCATION SAVINGS PLAN AC -10
COUNT.—The term ‘529 education savings plan ac-11
count’ means a qualified tuition program (as defined 12
in section 529(b)(1) of the Internal Revenue Code of 13
1986). 14
‘‘(2) E
LIGIBLE CHILD.—The term ‘eligible 15
child’ means a child who is from a household, the 16
taxable income of which for the most recently com-17
pleted taxable year is not more than 130 percent of 18
an amount equal to the poverty level, as determined 19
by using criteria of poverty established by the Bu-20
reau of the Census. 21
‘‘(3) H
OME SCHOOL.—The term ‘home school’ 22
means a home school as defined by the laws of the 23
State in which the eligible child resides. 24
‘‘(b) F
UNDSTOFOLLOW THESTUDENT.— 25
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‘‘(1) IN GENERAL.—Notwithstanding any other 1
provision of law and to the extent permitted under 2
State law, a State educational agency shall allocate 3
grant funds provided under title I, subparts 2 and 4
3 of part B of title II, and titles III, IV, V, and VI, 5
for the purposes of ensuring that funding under 6
such titles follows children, to the public school the 7
children attend or for the expenses described in sec-8
tion 529(c)(7) of the Internal Revenue Code of 9
1986. 10
‘‘(2) P
LAN.— 11
‘‘(A) I
N GENERAL.—Each State that car-12
ries out allocations described in paragraph (1) 13
shall establish a plan that complies with the fol-14
lowing: 15
‘‘(i) The parent of each eligible child 16
in the State who desires access to the 17
funds described in paragraph (1) shall an-18
nually submit to the State educational 19
agency by not later than April 30, a paper 20
or electronic application form that includes 21
the following: 22
‘‘(I) The parent’s taxable income 23
based on the Federal tax return of the 24
parent for the prior tax year. 25
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‘‘(II) The eligible child’s date of 1
birth, place of residence, school dis-2
trict, and school in which the eligible 3
child will be enrolled for the subse-4
quent school year. 5
‘‘(III) If the eligible child will be 6
enrolled in a private school or home 7
school for the subsequent school year, 8
confirmation that the eligible child 9
has a 529 education savings plan ac-10
count, including the necessary details 11
of such account to enable the State to 12
deposit funds available under this sec-13
tion into such account. 14
‘‘(ii) Not later than May 14 of each 15
year, the State educational agency shall 16
submit to the Secretary the application 17
forms for all applicants under clause (i). 18
‘‘(iii) Not later than July 1 of each 19
year and based on the information sub-20
mitted under clause (i), the State edu-21
cational agency shall— 22
‘‘(I) if the eligible child will be 23
enrolled in a private school or home 24
school for the subsequent school year, 25
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deposit the amount equal to the con-1
centration distribution and basic dis-2
tribution applicable for the eligible 3
child under subparagraphs (B) and 4
(C) of subsection (c)(2), into the 529 5
education savings plan account of the 6
eligible child; and 7
‘‘(II) if the eligible child will be 8
enrolled in a public school for the sub-9
sequent school year, distribute the 10
amount equal to the concentration 11
distribution and basic distribution ap-12
plicable for the eligible child under 13
subparagraphs (B) and (C) of sub-14
section (c)(2), to such public school. 15
‘‘(B) D
ATA COLLECTION .—Information 16
collected under this section by the State shall 17
be used for the sole purposes of calculating the 18
allocation of funds and distribution of funds 19
under this section. 20
‘‘(C) D
ATA PRIVACY PROTECTION .—Infor-21
mation collected under this section shall be sub-22
ject to the privacy protections outlined in sec-23
tion 444 of the General Education Provisions 24
Act (20 U.S.C. 1232g; commonly referred to as 25
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the ‘Family Educational Rights and Privacy 1
Act of 1974’). 2
‘‘(c) C
ALCULATION OF AMOUNTSTOBEDISTRIB-3
UTED.— 4
‘‘(1) I
N GENERAL.—From the amounts pro-5
vided to carry out title I, subparts 2 and 3 of part 6
B of title II, and titles III, IV, V, and VI, and based 7
on the information submitted by State educational 8
agencies under subsection (b)(2)(A)(ii), the Sec-9
retary shall— 10
‘‘(A) determine the eligibility based on the 11
information provided under subsection 12
(b)(2)(A)(i) and verify that the child for whom 13
the information is submitted is an eligible child; 14
‘‘(B) determine the income bracket for 15
such eligible child; and 16
‘‘(C) make grants to State educational 17
agencies in the amount determined under para-18
graph (2) by not later than 30 days after the 19
date the Secretary receives the information 20
under subsection (b)(2)(A)(ii). 21
‘‘(2) A
MOUNT OF GRANTS.— 22
‘‘(A) I
N GENERAL.—The grant amount 23
provided to a State educational agency shall be 24
equal to the total distribution amount deter-25
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mined under subparagraphs (B) and (C) for all 1
eligible children in the State. 2
‘‘(B) C
ONCENTRATION DISTRIBUTION .— 3
An eligible child who is from a household, the 4
taxable income of which for the most recently 5
completed taxable year is not more than 100 6
percent of an amount equal to the poverty level, 7
as measured by the most recent Small Area In-8
come and Poverty Estimates of the Bureau of 9
the Census, shall receive a concentration dis-10
tribution according to the following: 11
‘‘(i) If the eligible child resides in an 12
area served by a school district in which 13
not less than 1 percent and not more than 14
9 percent of the elementary school and sec-15
ondary school students are from a house-16
hold, the taxable income of which for the 17
most recently completed taxable year is not 18
more than 100 percent of an amount equal 19
to the poverty level, as measured by the 20
most recent Small Area Income and Pov-21
erty Estimates of the Bureau of the Cen-22
sus, the eligible child shall receive $50. 23
‘‘(ii) If the eligible child resides in an 24
area served by a school district in which 25
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not less than 10 percent and not more 1
than 19 percent of the elementary school 2
and secondary school students are from a 3
household, the taxable income of which for 4
the most recently completed taxable year is 5
not more than 100 percent of an amount 6
equal to the poverty level, as measured by 7
the most recent Small Area Income and 8
Poverty Estimates of the Bureau of the 9
Census, the eligible child shall receive 10
$100. 11
‘‘(iii) If the eligible child resides in an 12
area served by a school district in which 13
not less than 20 percent and not more 14
than 29 percent of the elementary school 15
and secondary school students are from a 16
household, the taxable income of which for 17
the most recently completed taxable year is 18
not more than 100 percent of an amount 19
equal to the poverty level, as measured by 20
the most recent Small Area Income and 21
Poverty Estimates of the Bureau of the 22
Census, the eligible child shall receive 23
$150. 24
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‘‘(iv) If the eligible child resides in an 1
area served by a school district in which 2
not less than 30 percent and not more 3
than 39 percent of the elementary school 4
and secondary school students are from a 5
household, the taxable income of which for 6
the most recently completed taxable year is 7
not more than 100 percent of an amount 8
equal to the poverty level, as measured by 9
the most recent Small Area Income and 10
Poverty Estimates of the Bureau of the 11
Census, the eligible child shall receive 12
$200. 13
‘‘(v) If the eligible child resides in an 14
area served by a school district in which 15
not less than 40 percent and not more 16
than 49 percent of the elementary school 17
and secondary school students are from a 18
household, the taxable income of which for 19
the most recently completed taxable year is 20
not more than 100 percent of an amount 21
equal to the poverty level, as measured by 22
the most recent Small Area Income and 23
Poverty Estimates of the Bureau of the 24
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Census, the eligible child shall receive 1
$250. 2
‘‘(vi) If the eligible child resides in an 3
area served by a school district in which 50 4
percent or more of the elementary school 5
and secondary school students are from a 6
household, the taxable income of which for 7
the most recently completed taxable year is 8
not more than 100 percent of an amount 9
equal to the poverty level, as measured by 10
the most recent Small Area Income and 11
Poverty Estimates of the Bureau of the 12
Census, the eligible child shall receive 13
$300. 14
‘‘(C) B
ASIC DISTRIBUTION.—In addition to 15
a concentration distribution under subpara-16
graph (B), an eligible child shall receive a basic 17
distribution based on the income bracket appli-18
cable for such eligible child and according to a 19
formula established by the Secretary in which 20
benefits are flat for everyone at or below 100 21
percent of the Federal poverty level and de-22
crease at an even rate from 100 percent to 130 23
percent of the Federal poverty level. 24
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‘‘(d) NOTIFICATION OFAVAILABILITY OFFUNDS.— 1
Not later than 100 days after the date of enactment of 2
the Children Have Opportunities in Classrooms Every-3
where Act, and annually for each of the 5 years thereafter, 4
each State that carries out allocations described in sub-5
section (b)(1) shall inform each parent of a child eligible 6
for assistance under the supplemental nutrition assistance 7
program under the Food and Nutrition Act of 2008 (7 8
U.S.C. 2011 et seq.) or the program of block grants for 9
States for temporary assistance for needy families estab-10
lished under part A of title IV of the Social Security Act 11
(42 U.S.C. 601 et seq.) of the availability of assistance 12
under this section. 13
‘‘(e) A
PPLICATION OFPARTICIPATION OFCHILDREN 14
E
NROLLED INPRIVATESCHOOLS.—The provisions of sec-15
tion 1117 shall apply to this section. 16
‘‘(f) R
ULE OFCONSTRUCTION.— 17
‘‘(1) F
EDERALLY FUNDED SCHOOL FOOD PRO -18
GRAMS.—Nothing in this section shall be construed 19
to preclude a child eligible for assistance under the 20
free and reduced price school lunch program estab-21
lished under the Richard B. Russell National School 22
Lunch Act (42 U.S.C. 1751 et seq.) from receiving 23
assistance under such program. 24
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‘‘(2) PROHIBITION OF CONTROL OVER NON - 1
PUBLIC EDUCATION PROVIDERS .—Nothing in this 2
section shall permit, allow, encourage, or authorize 3
Federal or State control over non-public education 4
providers.’’. 5
SEC. 3. 529 ACCOUNT FUNDING FOR HOMESCHOOL AND AD-6
DITIONAL ELEMENTARY AND SECONDARY EX-7
PENSES. 8
(a) I
NGENERAL.—Section 529(c)(7) of the Internal 9
Revenue Code of 1986 is amended to read as follows: 10
‘‘(7) T
REATMENT OF ELEMENTARY AND SEC -11
ONDARY TUITION AND RESOURCES .—Any reference 12
in this section to the term ‘qualified higher edu-13
cation expense’ shall include a reference to the fol-14
lowing expenses in connection with enrollment or at-15
tendance at, or for students enrolled at or attending, 16
an elementary or secondary public, private, or reli-17
gious school: 18
‘‘(A) Tuition. 19
‘‘(B) Curriculum and curricular materials. 20
‘‘(C) Books or other instructional mate-21
rials. 22
‘‘(D) Online educational materials. 23
‘‘(E) Tuition for tutoring or educational 24
classes outside of the home, including at a tu-25
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toring facility, but only if the tutor or instruc-1
tor is not related to the student. 2
‘‘(F) Fees for a nationally standardized 3
norm-referenced achievement test, an advanced 4
placement examination, or any examinations re-5
lated to college or university admission. 6
‘‘(G) Fees for dual enrollment in an insti-7
tution of higher education. 8
‘‘(H) Educational therapies for students 9
with disabilities provided by a licensed or ac-10
credited practitioner or provider, including oc-11
cupational, behavioral, physical, and speech-lan-12
guage therapies. 13
Such term shall include expenses for the purposes 14
described in subparagraphs (A) through (H) in con-15
nection with a homeschool (whether treated as a 16
homeschool or a private school for purposes of appli-17
cable State law).’’. 18
(b) E
FFECTIVEDATE.—The amendment made by 19
this section shall apply to distributions made after the 20
date of the enactment of this Act. 21
SEC. 4. INCREASED ADDITIONAL TAX ON GRANTS NOT 22
USED FOR EDUCATIONAL PURPOSES. 23
(a) I
NGENERAL.—Section 529(c)(6) of the Internal 24
Revenue Code of 1986 is amended— 25
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(1) by striking ‘‘The tax’’ and inserting the fol-1
lowing: 2
‘‘(A) I
N GENERAL.—Except as provided in 3
subparagraph (B), the tax’’, and 4
(2) by adding at the end the following new sub-5
paragraph: 6
‘‘(B) I
NCREASED TAX ON AMOUNTS AT -7
TRIBUTABLE TO CERTAIN GRANTS .— 8
‘‘(i) I
N GENERAL.—In the case of any 9
distribution from a qualified contribution 10
program that includes amounts attrib-11
utable to a qualified grant— 12
‘‘(I) section 530(d)(4) shall be 13
applied separately to amounts attrib-14
utable to qualified grants and to other 15
amounts, and 16
‘‘(II) in applying such section to 17
amounts attributable to qualified 18
grants, such section shall be applied 19
by substituting ‘100 percent’ for ‘10 20
percent’. 21
‘‘(ii) A
TTRIBUTION RULES.—For pur-22
poses of this subparagraph— 23
‘‘(I) any earnings on contribu-24
tions from a qualified grant shall not 25
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be treated as attributed to a qualified 1
grant, and 2
‘‘(II) distributions from a quali-3
fied tuition program described in 4
clause (i) shall be treated as distrib-5
uted first from amounts other than 6
amounts attributable to a qualified 7
grant and then from amounts attrib-8
utable to a qualified grant. 9
‘‘(iii) Q
UALIFIED GRANT.—For pur-10
poses of this subparagraph, the term 11
‘qualified grant’ means any grant under 12
section 8701 of the Elementary and Sec-13
ondary Education Act of 1965.’’. 14
(b) E
FFECTIVEDATE.—The amendment made by 15
this section shall apply to distributions made after the 16
date of the enactment of this Act. 17
Æ
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