Us Congress 2023-2024 Regular Session

Us Congress Senate Bill SB105 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	II
2	2	118THCONGRESS
3	3	1
4	4	STSESSION S. 105
5	5	To have education funds follow the student.
6	6	IN THE SENATE OF THE UNITED STATES
7	7	JANUARY26, 2023
8	8	Mr. L
9	9	EE(for himself, Mr. TUBERVILLE, Mr. BUDD, Mr. SCOTTof Florida,
10	10	and Mr. W
11	11	ICKER) introduced the following bill; which was read twice and
12	12	referred to the Committee on Finance
13	13	A BILL
14	14	To have education funds follow the student.
15	15	Be it enacted by the Senate and House of Representa-1
16	16	tives of the United States of America in Congress assembled, 2
17	17	SECTION 1. SHORT TITLE. 3
18	18	This Act may be cited as the ‘‘Children Have Oppor-4
19	19	tunities in Classrooms Everywhere Act’’. 5
20	20	SEC. 2. FEDERAL FUNDING UNDER THE ELEMENTARY AND 6
21	21	SECONDARY EDUCATION ACT OF 1965 TO 7
22	22	FOLLOW THE STUDENT. 8
23	23	Title VIII of the Elementary and Secondary Edu-9
24	24	cation Act of 1965 (20 U.S.C. 7801 et seq.) is amended 10
25	25	by adding at the end the following: 11
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28	28	•S 105 IS
29	29	‘‘PART H—FUNDS TO FOLLOW THE STUDENT 1
30	30	‘‘SEC. 8701. FUNDS TO FOLLOW THE STUDENT. 2
31	31	‘‘(a) D
32	32	EFINITIONS.—In this section: 3
33	33	‘‘(1) 529
34	34	EDUCATION SAVINGS PLAN AC -4
35	35	COUNT.—The term ‘529 education savings plan ac-5
36	36	count’ means a qualified tuition program (as defined 6
37	37	in section 529(b)(1)(A) of the Internal Revenue 7
38	38	Code of 1986). 8
39	39	‘‘(2) E
40	40	LIGIBLE CHILD.—The term ‘eligible 9
41	41	child’ means a child who is from a household, the 10
42	42	taxable income of which for the most recently com-11
43	43	pleted taxable year is not more than 130 percent of 12
44	44	an amount equal to the poverty level, as determined 13
45	45	by using criteria of poverty established by the Bu-14
46	46	reau of the Census. 15
47	47	‘‘(3) H
48	48	OME SCHOOL.—The term ‘home school’ 16
49	49	means a home school as defined by the laws of the 17
50	50	State in which the eligible child resides. 18
51	51	‘‘(b) F
52	52	UNDSTOFOLLOW THESTUDENT.— 19
53	53	‘‘(1) I
54	54	N GENERAL.—Notwithstanding any other 20
55	55	provision of law and to the extent permitted under 21
56	56	State law, a State educational agency shall allocate 22
57	57	grant funds provided under title I, subparts 2 and 23
58	58	3 of part B of title II, and titles III, IV, V, and VI, 24
59	59	for the purposes of ensuring that funding under 25
60	60	such titles follows children, to the public school the 26
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63	63	•S 105 IS
64	64	children attend or for the expenses described in sec-1
65	65	tion 529(c)(7) of the Internal Revenue Code of 2
66	66	1986. 3
67	67	‘‘(2) P
68	68	LAN.— 4
69	69	‘‘(A) I
70	70	N GENERAL.—Each State that car-5
71	71	ries out allocations described in paragraph (1) 6
72	72	shall establish a plan that complies with the fol-7
73	73	lowing: 8
74	74	‘‘(i) The parent or guardian of each 9
75	75	eligible child in the State who desires ac-10
76	76	cess to the funds described in paragraph 11
77	77	(1) shall annually submit to the State edu-12
78	78	cational agency by not later than April 30, 13
79	79	a paper or electronic application form that 14
80	80	includes the following: 15
81	81	‘‘(I) The parent or guardian’s 16
82	82	taxable income based on the Federal 17
83	83	tax return of the parent or guardian 18
84	84	for the prior tax year. 19
85	85	‘‘(II) The eligible child’s date of 20
86	86	birth, place of residence, school dis-21
87	87	trict, and school in which the eligible 22
88	88	child will be enrolled for the subse-23
89	89	quent school year. 24
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93	93	‘‘(III) If the eligible child will be 1
94	94	enrolled in a private school or home 2
95	95	school for the subsequent school year, 3
96	96	confirmation that the eligible child 4
97	97	has a 529 education savings plan ac-5
98	98	count, including the necessary details 6
99	99	of such account to enable the State to 7
100	100	deposit funds available under this sec-8
101	101	tion into such account. 9
102	102	‘‘(ii) Not later than May 14 of each 10
103	103	year, the State educational agency shall 11
104	104	submit to the Secretary the application 12
105	105	forms for all applicants under clause (i). 13
106	106	‘‘(iii) Not later than July 1 of each 14
107	107	year and based on the information sub-15
108	108	mitted under clause (i), the State edu-16
109	109	cational agency shall— 17
110	110	‘‘(I) if the eligible child will be 18
111	111	enrolled in a private school or home 19
112	112	school for the subsequent school year, 20
113	113	deposit the amount equal to the con-21
114	114	centration distribution and basic dis-22
115	115	tribution applicable for the eligible 23
116	116	child under subparagraphs (B) and 24
117	117	(C) of subsection (c)(2), into the 529 25
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120	120	•S 105 IS
121	121	education savings plan account of the 1
122	122	eligible child; and 2
123	123	‘‘(II) if the eligible child will be 3
124	124	enrolled in a public school for the sub-4
125	125	sequent school year, distribute the 5
126	126	amount equal to the concentration 6
127	127	distribution and basic distribution ap-7
128	128	plicable for the eligible child under 8
129	129	subparagraphs (B) and (C) of sub-9
130	130	section (c)(2), to such public school. 10
131	131	‘‘(B) D
132	132	ATA COLLECTION .—Information 11
133	133	collected under this section by the State shall 12
134	134	be used for the sole purposes of calculating the 13
135	135	allocation of funds and distribution of funds 14
136	136	under this section. 15
137	137	‘‘(C) D
138	138	ATA PRIVACY PROTECTION .—Infor-16
139	139	mation collected under this section shall be sub-17
140	140	ject to the privacy protections outlined in sec-18
141	141	tion 444 of the General Education Provisions 19
142	142	Act (20 U.S.C. 1232g; commonly referred to as 20
143	143	the ‘Family Educational Rights and Privacy 21
144	144	Act of 1974’). 22
145	145	‘‘(c) C
146	146	ALCULATION OF AMOUNTSTOBEDISTRIB-23
147	147	UTED.— 24
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150	150	•S 105 IS
151	151	‘‘(1) IN GENERAL.—From the amounts pro-1
152	152	vided to carry out title I, subparts 2 and 3 of part 2
153	153	B of title II, and titles III, IV, V, and VI, and based 3
154	154	on the information submitted by State educational 4
155	155	agencies under subsection (b)(2)(A)(ii), the Sec-5
156	156	retary shall— 6
157	157	‘‘(A) determine the eligibility based on the 7
158	158	information provided under subsection 8
159	159	(b)(2)(A)(i) and verify that the child for whom 9
160	160	the information is submitted is an eligible child; 10
161	161	‘‘(B) determine the income bracket for 11
162	162	such eligible child; and 12
163	163	‘‘(C) make grants to State educational 13
164	164	agencies in the amount determined under para-14
165	165	graph (2) by not later than 30 days after the 15
166	166	date the Secretary receives the information 16
167	167	under subsection (b)(2)(A)(ii). 17
168	168	‘‘(2) A
169	169	MOUNT OF GRANTS.— 18
170	170	‘‘(A) I
171	171	N GENERAL.—The grant amount 19
172	172	provided to a State educational agency shall be 20
173	173	equal to the total distribution amount deter-21
174	174	mined under subparagraphs (B) and (C) for all 22
175	175	eligible children in the State. 23
176	176	‘‘(B) C
177	177	ONCENTRATION DISTRIBUTION .— 24
178	178	An eligible child who is from a household, the 25
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181	181	•S 105 IS
182	182	taxable income of which for the most recently 1
183	183	completed taxable year is not more than 100 2
184	184	percent of an amount equal to the poverty level, 3
185	185	as measured by the most recent Small Area In-4
186	186	come and Poverty Estimates of the Bureau of 5
187	187	the Census, shall receive a concentration dis-6
188	188	tribution according to the following: 7
189	189	‘‘(i) If the eligible child resides in an 8
190	190	area served by a school district in which 9
191	191	not less than 1 percent and not more than 10
192	192	9 percent of the elementary school and sec-11
193	193	ondary school students are from a house-12
194	194	hold, the taxable income of which for the 13
195	195	most recently completed taxable year is not 14
196	196	more than 100 percent of an amount equal 15
197	197	to the poverty level, as measured by the 16
198	198	most recent Small Area Income and Pov-17
199	199	erty Estimates of the Bureau of the Cen-18
200	200	sus, the eligible child shall receive $50. 19
201	201	‘‘(ii) If the eligible child resides in an 20
202	202	area served by a school district in which 21
203	203	not less than 10 percent and not more 22
204	204	than 19 percent of the elementary school 23
205	205	and secondary school students are from a 24
206	206	household, the taxable income of which for 25
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209	209	•S 105 IS
210	210	the most recently completed taxable year is 1
211	211	not more than 100 percent of an amount 2
212	212	equal to the poverty level, as measured by 3
213	213	the most recent Small Area Income and 4
214	214	Poverty Estimates of the Bureau of the 5
215	215	Census, the eligible child shall receive 6
216	216	$100. 7
217	217	‘‘(iii) If the eligible child resides in an 8
218	218	area served by a school district in which 9
219	219	not less than 20 percent and not more 10
220	220	than 29 percent of the elementary school 11
221	221	and secondary school students are from a 12
222	222	household, the taxable income of which for 13
223	223	the most recently completed taxable year is 14
224	224	not more than 100 percent of an amount 15
225	225	equal to the poverty level, as measured by 16
226	226	the most recent Small Area Income and 17
227	227	Poverty Estimates of the Bureau of the 18
228	228	Census, the eligible child shall receive 19
229	229	$150. 20
230	230	‘‘(iv) If the eligible child resides in an 21
231	231	area served by a school district in which 22
232	232	not less than 30 percent and not more 23
233	233	than 39 percent of the elementary school 24
234	234	and secondary school students are from a 25
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237	237	•S 105 IS
238	238	household, the taxable income of which for 1
239	239	the most recently completed taxable year is 2
240	240	not more than 100 percent of an amount 3
241	241	equal to the poverty level, as measured by 4
242	242	the most recent Small Area Income and 5
243	243	Poverty Estimates of the Bureau of the 6
244	244	Census, the eligible child shall receive 7
245	245	$200. 8
246	246	‘‘(v) If the eligible child resides in an 9
247	247	area served by a school district in which 10
248	248	not less than 40 percent and not more 11
249	249	than 49 percent of the elementary school 12
250	250	and secondary school students are from a 13
251	251	household, the taxable income of which for 14
252	252	the most recently completed taxable year is 15
253	253	not more than 100 percent of an amount 16
254	254	equal to the poverty level, as measured by 17
255	255	the most recent Small Area Income and 18
256	256	Poverty Estimates of the Bureau of the 19
257	257	Census, the eligible child shall receive 20
258	258	$250. 21
259	259	‘‘(vi) If the eligible child resides in an 22
260	260	area served by a school district in which 50 23
261	261	percent or more of the elementary school 24
262	262	and secondary school students are from a 25
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265	265	•S 105 IS
266	266	household, the taxable income of which for 1
267	267	the most recently completed taxable year is 2
268	268	not more than 100 percent of an amount 3
269	269	equal to the poverty level, as measured by 4
270	270	the most recent Small Area Income and 5
271	271	Poverty Estimates of the Bureau of the 6
272	272	Census, the eligible child shall receive 7
273	273	$300. 8
274	274	‘‘(C) B
275	275	ASIC DISTRIBUTION.—In addition to 9
276	276	a concentration distribution under subpara-10
277	277	graph (B), an eligible child shall receive a basic 11
278	278	distribution based on the income bracket appli-12
279	279	cable for such eligible child and according to a 13
280	280	formula established by the Secretary in which 14
281	281	benefits are flat for everyone at or below 100 15
282	282	percent of the Federal poverty level and de-16
283	283	crease at an even rate from 100 percent to 130 17
284	284	percent of the Federal poverty level. 18
285	285	‘‘(d) N
286	286	OTIFICATION OFAVAILABILITY OFFUNDS.— 19
287	287	Not later than 100 days after the date of enactment of 20
288	288	the Children Have Opportunities in Classrooms Every-21
289	289	where Act, and annually for each of the 5 years thereafter, 22
290	290	each State that carries out allocations described in sub-23
291	291	section (b)(1) shall inform each parent or guardian of a 24
292	292	child eligible for assistance under the supplemental nutri-25
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295	295	•S 105 IS
296	296	tion assistance program under the Food and Nutrition Act 1
297	297	of 2008 (7 U.S.C. 2011 et seq.) or the program of block 2
298	298	grants for States for temporary assistance for needy fami-3
299	299	lies established under part A of title IV of the Social Secu-4
300	300	rity Act (42 U.S.C. 601 et seq.) of the availability of as-5
301	301	sistance under this section. 6
302	302	‘‘(e) A
303	303	PPLICATION OFPARTICIPATION OFCHILDREN 7
304	304	E
305	305	NROLLED INPRIVATESCHOOLS.—The provisions of sec-8
306	306	tion 1117 shall apply to this section. 9
307	307	‘‘(f) R
308	308	ULE OFCONSTRUCTION.— 10
309	309	‘‘(1) F
310	310	EDERALLY FUNDED SCHOOL FOOD PRO -11
311	311	GRAMS.—Nothing in this section shall be construed 12
312	312	to preclude a child eligible for assistance under the 13
313	313	free and reduced price school lunch program estab-14
314	314	lished under the Richard B. Russell National School 15
315	315	Lunch Act (42 U.S.C. 1751 et seq.) from receiving 16
316	316	assistance under such program. 17
317	317	‘‘(2) P
318	318	ROHIBITION OF CONTROL OVER NON - 18
319	319	PUBLIC EDUCATION PROVIDERS .—Nothing in this 19
320	320	section shall permit, allow, encourage, or authorize 20
321	321	Federal or State control over non-public education 21
322	322	providers.’’. 22
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325	325	•S 105 IS
326	326	SEC. 3. 529 ACCOUNT FUNDING FOR HOMESCHOOL AND AD-1
327	327	DITIONAL ELEMENTARY AND SECONDARY EX-2
328	328	PENSES. 3
329	329	(a) I
330	330	NGENERAL.—Section 529(c)(7) of the Internal 4
331	331	Revenue Code of 1986 is amended to read as follows: 5
332	332	‘‘(7) T
333	333	REATMENT OF ELEMENTARY AND SEC -6
334	334	ONDARY TUITION AND RESOURCES .—Any reference 7
335	335	in this section to the term ‘qualified higher edu-8
336	336	cation expense’ shall include a reference to the fol-9
337	337	lowing expenses in connection with enrollment or at-10
338	338	tendance at, or for students enrolled at or attending, 11
339	339	an elementary or secondary public, private, or reli-12
340	340	gious school: 13
341	341	‘‘(A) Tuition. 14
342	342	‘‘(B) Curriculum and curricular materials. 15
343	343	‘‘(C) Books or other instructional mate-16
344	344	rials. 17
345	345	‘‘(D) Online educational materials. 18
346	346	‘‘(E) Tuition for tutoring or educational 19
347	347	classes outside of the home, including at a tu-20
348	348	toring facility, but only if the tutor or instruc-21
349	349	tor is not related to the student. 22
350	350	‘‘(F) Fees for a nationally standardized 23
351	351	norm-referenced achievement test, an advanced 24
352	352	placement examination, or any examinations re-25
353	353	lated to college or university admission. 26
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357	357	‘‘(G) Fees for dual enrollment in an insti-1
358	358	tution of higher education. 2
359	359	‘‘(H) Educational therapies for students 3
360	360	with disabilities provided by a licensed or ac-4
361	361	credited practitioner or provider, including oc-5
362	362	cupational, behavioral, physical, and speech-lan-6
363	363	guage therapies. 7
364	364	Such term shall include expenses for the purposes 8
365	365	described in subparagraphs (A) through (H) in con-9
366	366	nection with a homeschool (whether treated as a 10
367	367	homeschool or a private school for purposes of appli-11
368	368	cable State law).’’. 12
369	369	(b) E
370	370	FFECTIVEDATE.—The amendment made by 13
371	371	this section shall apply to distributions made after the 14
372	372	date of the enactment of this Act. 15
373	373	SEC. 4. INCREASED ADDITIONAL TAX ON GRANTS NOT 16
374	374	USED FOR EDUCATIONAL PURPOSES. 17
375	375	Section 529(c)(6) of the Internal Revenue Code of 18
376	376	1986 is amended— 19
377	377	(1) by striking ‘‘The tax’’ and inserting the fol-20
378	378	lowing: 21
379	379	‘‘(A) I
380	380	N GENERAL.—Except as provided in 22
381	381	subparagraph (B), the tax’’, and 23
382	382	(2) by adding at the end the following new sub-24
383	383	paragraph: 25
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387	387	‘‘(B) INCREASED TAX ON AMOUNTS AT -1
388	388	TRIBUTABLE TO CERTAIN GRANTS .— 2
389	389	‘‘(i) I
390	390	N GENERAL.—In the case of any 3
391	391	distribution from a qualified contribution 4
392	392	program that includes amounts attrib-5
393	393	utable to a qualified grant— 6
394	394	‘‘(I) section 530(d)(4) shall be 7
395	395	applied separately to amounts attrib-8
396	396	utable to qualified grants and to other 9
397	397	amounts, and 10
398	398	‘‘(II) in applying such section to 11
399	399	amounts attributable to qualified 12
400	400	grants, such section shall be applied 13
401	401	by substituting ‘100 percent’ for ‘10 14
402	402	percent’. 15
403	403	‘‘(ii) A
404	404	TTRIBUTION RULES.—For pur-16
405	405	poses of this subparagraph— 17
406	406	‘‘(I) any earnings on contribu-18
407	407	tions from a qualified grant shall not 19
408	408	be treated as attributed to a qualified 20
409	409	grant, and 21
410	410	‘‘(II) distributions from a quali-22
411	411	fied tuition program described in 23
412	412	clause (i) shall be treated as distrib-24
413	413	uted first from amounts other than 25
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416	416	•S 105 IS
417	417	amounts attributable to a qualified 1
418	418	grant and then from amounts attrib-2
419	419	utable to a qualified grant. 3
420	420	‘‘(iii) Q
421	421	UALIFIED GRANT.—For pur-4
422	422	poses of this subparagraph, the term 5
423	423	‘qualified grant’ means any grant under 6
424	424	section 8701 of the Elementary and Sec-7
425	425	ondary Education Act of 1965.’’. 8
426	426	Æ
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