II
118THCONGRESS
1
STSESSION S. 105
To have education funds follow the student.
IN THE SENATE OF THE UNITED STATES
JANUARY26, 2023
Mr. L
EE(for himself, Mr. TUBERVILLE, Mr. BUDD, Mr. SCOTTof Florida,
and Mr. W
ICKER) introduced the following bill; which was read twice and
referred to the Committee on Finance
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
SEC. 2. FEDERAL FUNDING UNDER THE ELEMENTARY AND 6
SECONDARY EDUCATION ACT OF 1965 TO 7
FOLLOW THE STUDENT. 8
Title VIII of the Elementary and Secondary Edu-9
cation Act of 1965 (20 U.S.C. 7801 et seq.) is amended 10
by adding at the end the following: 11
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‘‘PART H—FUNDS TO FOLLOW THE STUDENT 1
‘‘SEC. 8701. FUNDS TO FOLLOW THE STUDENT. 2
‘‘(a) D
EFINITIONS.—In this section: 3
‘‘(1) 529
EDUCATION SAVINGS PLAN AC -4
COUNT.—The term ‘529 education savings plan ac-5
count’ means a qualified tuition program (as defined 6
in section 529(b)(1)(A) of the Internal Revenue 7
Code of 1986). 8
‘‘(2) E
LIGIBLE CHILD.—The term ‘eligible 9
child’ means a child who is from a household, the 10
taxable income of which for the most recently com-11
pleted taxable year is not more than 130 percent of 12
an amount equal to the poverty level, as determined 13
by using criteria of poverty established by the Bu-14
reau of the Census. 15
‘‘(3) H
OME SCHOOL.—The term ‘home school’ 16
means a home school as defined by the laws of the 17
State in which the eligible child resides. 18
‘‘(b) F
UNDSTOFOLLOW THESTUDENT.— 19
‘‘(1) I
N GENERAL.—Notwithstanding any other 20
provision of law and to the extent permitted under 21
State law, a State educational agency shall allocate 22
grant funds provided under title I, subparts 2 and 23
3 of part B of title II, and titles III, IV, V, and VI, 24
for the purposes of ensuring that funding under 25
such titles follows children, to the public school the 26
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children attend or for the expenses described in sec-1
tion 529(c)(7) of the Internal Revenue Code of 2
1986. 3
‘‘(2) P
LAN.— 4
‘‘(A) I
N GENERAL.—Each State that car-5
ries out allocations described in paragraph (1) 6
shall establish a plan that complies with the fol-7
lowing: 8
‘‘(i) The parent or guardian of each 9
eligible child in the State who desires ac-10
cess to the funds described in paragraph 11
(1) shall annually submit to the State edu-12
cational agency by not later than April 30, 13
a paper or electronic application form that 14
includes the following: 15
‘‘(I) The parent or guardian’s 16
taxable income based on the Federal 17
tax return of the parent or guardian 18
for the prior tax year. 19
‘‘(II) The eligible child’s date of 20
birth, place of residence, school dis-21
trict, and school in which the eligible 22
child will be enrolled for the subse-23
quent school year. 24
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‘‘(III) If the eligible child will be 1
enrolled in a private school or home 2
school for the subsequent school year, 3
confirmation that the eligible child 4
has a 529 education savings plan ac-5
count, including the necessary details 6
of such account to enable the State to 7
deposit funds available under this sec-8
tion into such account. 9
‘‘(ii) Not later than May 14 of each 10
year, the State educational agency shall 11
submit to the Secretary the application 12
forms for all applicants under clause (i). 13
‘‘(iii) Not later than July 1 of each 14
year and based on the information sub-15
mitted under clause (i), the State edu-16
cational agency shall— 17
‘‘(I) if the eligible child will be 18
enrolled in a private school or home 19
school for the subsequent school year, 20
deposit the amount equal to the con-21
centration distribution and basic dis-22
tribution applicable for the eligible 23
child under subparagraphs (B) and 24
(C) of subsection (c)(2), into the 529 25
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education savings plan account of the 1
eligible child; and 2
‘‘(II) if the eligible child will be 3
enrolled in a public school for the sub-4
sequent school year, distribute the 5
amount equal to the concentration 6
distribution and basic distribution ap-7
plicable for the eligible child under 8
subparagraphs (B) and (C) of sub-9
section (c)(2), to such public school. 10
‘‘(B) D
ATA COLLECTION .—Information 11
collected under this section by the State shall 12
be used for the sole purposes of calculating the 13
allocation of funds and distribution of funds 14
under this section. 15
‘‘(C) D
ATA PRIVACY PROTECTION .—Infor-16
mation collected under this section shall be sub-17
ject to the privacy protections outlined in sec-18
tion 444 of the General Education Provisions 19
Act (20 U.S.C. 1232g; commonly referred to as 20
the ‘Family Educational Rights and Privacy 21
Act of 1974’). 22
‘‘(c) C
ALCULATION OF AMOUNTSTOBEDISTRIB-23
UTED.— 24
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‘‘(1) IN GENERAL.—From the amounts pro-1
vided to carry out title I, subparts 2 and 3 of part 2
B of title II, and titles III, IV, V, and VI, and based 3
on the information submitted by State educational 4
agencies under subsection (b)(2)(A)(ii), the Sec-5
retary shall— 6
‘‘(A) determine the eligibility based on the 7
information provided under subsection 8
(b)(2)(A)(i) and verify that the child for whom 9
the information is submitted is an eligible child; 10
‘‘(B) determine the income bracket for 11
such eligible child; and 12
‘‘(C) make grants to State educational 13
agencies in the amount determined under para-14
graph (2) by not later than 30 days after the 15
date the Secretary receives the information 16
under subsection (b)(2)(A)(ii). 17
‘‘(2) A
MOUNT OF GRANTS.— 18
‘‘(A) I
N GENERAL.—The grant amount 19
provided to a State educational agency shall be 20
equal to the total distribution amount deter-21
mined under subparagraphs (B) and (C) for all 22
eligible children in the State. 23
‘‘(B) C
ONCENTRATION DISTRIBUTION .— 24
An eligible child who is from a household, the 25
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taxable income of which for the most recently 1
completed taxable year is not more than 100 2
percent of an amount equal to the poverty level, 3
as measured by the most recent Small Area In-4
come and Poverty Estimates of the Bureau of 5
the Census, shall receive a concentration dis-6
tribution according to the following: 7
‘‘(i) If the eligible child resides in an 8
area served by a school district in which 9
not less than 1 percent and not more than 10
9 percent of the elementary school and sec-11
ondary school students are from a house-12
hold, the taxable income of which for the 13
most recently completed taxable year is not 14
more than 100 percent of an amount equal 15
to the poverty level, as measured by the 16
most recent Small Area Income and Pov-17
erty Estimates of the Bureau of the Cen-18
sus, the eligible child shall receive $50. 19
‘‘(ii) If the eligible child resides in an 20
area served by a school district in which 21
not less than 10 percent and not more 22
than 19 percent of the elementary school 23
and secondary school students are from a 24
household, the taxable income of which for 25
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the most recently completed taxable year is 1
not more than 100 percent of an amount 2
equal to the poverty level, as measured by 3
the most recent Small Area Income and 4
Poverty Estimates of the Bureau of the 5
Census, the eligible child shall receive 6
$100. 7
‘‘(iii) If the eligible child resides in an 8
area served by a school district in which 9
not less than 20 percent and not more 10
than 29 percent of the elementary school 11
and secondary school students are from a 12
household, the taxable income of which for 13
the most recently completed taxable year is 14
not more than 100 percent of an amount 15
equal to the poverty level, as measured by 16
the most recent Small Area Income and 17
Poverty Estimates of the Bureau of the 18
Census, the eligible child shall receive 19
$150. 20
‘‘(iv) If the eligible child resides in an 21
area served by a school district in which 22
not less than 30 percent and not more 23
than 39 percent of the elementary school 24
and secondary school students are from a 25
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household, the taxable income of which for 1
the most recently completed taxable year is 2
not more than 100 percent of an amount 3
equal to the poverty level, as measured by 4
the most recent Small Area Income and 5
Poverty Estimates of the Bureau of the 6
Census, the eligible child shall receive 7
$200. 8
‘‘(v) If the eligible child resides in an 9
area served by a school district in which 10
not less than 40 percent and not more 11
than 49 percent of the elementary school 12
and secondary school students are from a 13
household, the taxable income of which for 14
the most recently completed taxable year is 15
not more than 100 percent of an amount 16
equal to the poverty level, as measured by 17
the most recent Small Area Income and 18
Poverty Estimates of the Bureau of the 19
Census, the eligible child shall receive 20
$250. 21
‘‘(vi) If the eligible child resides in an 22
area served by a school district in which 50 23
percent or more of the elementary school 24
and secondary school students are from a 25
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household, the taxable income of which for 1
the most recently completed taxable year is 2
not more than 100 percent of an amount 3
equal to the poverty level, as measured by 4
the most recent Small Area Income and 5
Poverty Estimates of the Bureau of the 6
Census, the eligible child shall receive 7
$300. 8
‘‘(C) B
ASIC DISTRIBUTION.—In addition to 9
a concentration distribution under subpara-10
graph (B), an eligible child shall receive a basic 11
distribution based on the income bracket appli-12
cable for such eligible child and according to a 13
formula established by the Secretary in which 14
benefits are flat for everyone at or below 100 15
percent of the Federal poverty level and de-16
crease at an even rate from 100 percent to 130 17
percent of the Federal poverty level. 18
‘‘(d) N
OTIFICATION OFAVAILABILITY OFFUNDS.— 19
Not later than 100 days after the date of enactment of 20
the Children Have Opportunities in Classrooms Every-21
where Act, and annually for each of the 5 years thereafter, 22
each State that carries out allocations described in sub-23
section (b)(1) shall inform each parent or guardian of a 24
child eligible for assistance under the supplemental nutri-25
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tion assistance program under the Food and Nutrition Act 1
of 2008 (7 U.S.C. 2011 et seq.) or the program of block 2
grants for States for temporary assistance for needy fami-3
lies established under part A of title IV of the Social Secu-4
rity Act (42 U.S.C. 601 et seq.) of the availability of as-5
sistance under this section. 6
‘‘(e) A
PPLICATION OFPARTICIPATION OFCHILDREN 7
E
NROLLED INPRIVATESCHOOLS.—The provisions of sec-8
tion 1117 shall apply to this section. 9
‘‘(f) R
ULE OFCONSTRUCTION.— 10
‘‘(1) F
EDERALLY FUNDED SCHOOL FOOD PRO -11
GRAMS.—Nothing in this section shall be construed 12
to preclude a child eligible for assistance under the 13
free and reduced price school lunch program estab-14
lished under the Richard B. Russell National School 15
Lunch Act (42 U.S.C. 1751 et seq.) from receiving 16
assistance under such program. 17
‘‘(2) P
ROHIBITION OF CONTROL OVER NON - 18
PUBLIC EDUCATION PROVIDERS .—Nothing in this 19
section shall permit, allow, encourage, or authorize 20
Federal or State control over non-public education 21
providers.’’. 22
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SEC. 3. 529 ACCOUNT FUNDING FOR HOMESCHOOL AND AD-1
DITIONAL ELEMENTARY AND SECONDARY EX-2
PENSES. 3
(a) I
NGENERAL.—Section 529(c)(7) of the Internal 4
Revenue Code of 1986 is amended to read as follows: 5
‘‘(7) T
REATMENT OF ELEMENTARY AND SEC -6
ONDARY TUITION AND RESOURCES .—Any reference 7
in this section to the term ‘qualified higher edu-8
cation expense’ shall include a reference to the fol-9
lowing expenses in connection with enrollment or at-10
tendance at, or for students enrolled at or attending, 11
an elementary or secondary public, private, or reli-12
gious school: 13
‘‘(A) Tuition. 14
‘‘(B) Curriculum and curricular materials. 15
‘‘(C) Books or other instructional mate-16
rials. 17
‘‘(D) Online educational materials. 18
‘‘(E) Tuition for tutoring or educational 19
classes outside of the home, including at a tu-20
toring facility, but only if the tutor or instruc-21
tor is not related to the student. 22
‘‘(F) Fees for a nationally standardized 23
norm-referenced achievement test, an advanced 24
placement examination, or any examinations re-25
lated to college or university admission. 26
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‘‘(G) Fees for dual enrollment in an insti-1
tution of higher education. 2
‘‘(H) Educational therapies for students 3
with disabilities provided by a licensed or ac-4
credited practitioner or provider, including oc-5
cupational, behavioral, physical, and speech-lan-6
guage therapies. 7
Such term shall include expenses for the purposes 8
described in subparagraphs (A) through (H) in con-9
nection with a homeschool (whether treated as a 10
homeschool or a private school for purposes of appli-11
cable State law).’’. 12
(b) E
FFECTIVEDATE.—The amendment made by 13
this section shall apply to distributions made after the 14
date of the enactment of this Act. 15
SEC. 4. INCREASED ADDITIONAL TAX ON GRANTS NOT 16
USED FOR EDUCATIONAL PURPOSES. 17
Section 529(c)(6) of the Internal Revenue Code of 18
1986 is amended— 19
(1) by striking ‘‘The tax’’ and inserting the fol-20
lowing: 21
‘‘(A) I
N GENERAL.—Except as provided in 22
subparagraph (B), the tax’’, and 23
(2) by adding at the end the following new sub-24
paragraph: 25
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‘‘(B) INCREASED TAX ON AMOUNTS AT -1
TRIBUTABLE TO CERTAIN GRANTS .— 2
‘‘(i) I
N GENERAL.—In the case of any 3
distribution from a qualified contribution 4
program that includes amounts attrib-5
utable to a qualified grant— 6
‘‘(I) section 530(d)(4) shall be 7
applied separately to amounts attrib-8
utable to qualified grants and to other 9
amounts, and 10
‘‘(II) in applying such section to 11
amounts attributable to qualified 12
grants, such section shall be applied 13
by substituting ‘100 percent’ for ‘10 14
percent’. 15
‘‘(ii) A
TTRIBUTION RULES.—For pur-16
poses of this subparagraph— 17
‘‘(I) any earnings on contribu-18
tions from a qualified grant shall not 19
be treated as attributed to a qualified 20
grant, and 21
‘‘(II) distributions from a quali-22
fied tuition program described in 23
clause (i) shall be treated as distrib-24
uted first from amounts other than 25
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amounts attributable to a qualified 1
grant and then from amounts attrib-2
utable to a qualified grant. 3
‘‘(iii) Q
UALIFIED GRANT.—For pur-4
poses of this subparagraph, the term 5
‘qualified grant’ means any grant under 6
section 8701 of the Elementary and Sec-7
ondary Education Act of 1965.’’. 8
Æ
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