| 1 | 1 | | II |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION S. 1244 |
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| 5 | 5 | | To amend the Elementary and Secondary Education Act of 1965 to allow |
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| 6 | 6 | | parents of eligible military dependent children to establish Military Edu- |
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| 7 | 7 | | cation Savings Accounts, and for other purposes. |
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| 8 | 8 | | IN THE SENATE OF THE UNITED STATES |
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| 9 | 9 | | APRIL1 (legislative day, MARCH31), 2025 |
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| 10 | 10 | | Mr. C |
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| 11 | 11 | | RUZ(for himself and Mr. BANKS) introduced the following bill; which |
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| 12 | 12 | | was read twice and referred to the Committee on Finance |
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| 13 | 13 | | A BILL |
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| 14 | 14 | | To amend the Elementary and Secondary Education Act |
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| 15 | 15 | | of 1965 to allow parents of eligible military dependent |
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| 16 | 16 | | children to establish Military Education Savings Ac- |
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| 17 | 17 | | counts, and for other purposes. |
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| 18 | 18 | | Be it enacted by the Senate and House of Representa-1 |
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| 19 | 19 | | tives of the United States of America in Congress assembled, 2 |
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| 20 | 20 | | SECTION 1. SHORT TITLE. 3 |
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| 21 | 21 | | This Act may be cited as the ‘‘Education Savings Ac-4 |
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| 22 | 22 | | counts for Military Families Act of 2025’’. 5 |
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| 23 | 23 | | SEC. 2. MILITARY EDUCATION SAVINGS ACCOUNTS. 6 |
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| 24 | 24 | | (a) I |
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| 25 | 25 | | NGENERAL.—Title VII of the Elementary and 7 |
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| 26 | 26 | | Secondary Education Act of 1965 (20 U.S.C. 7701 et 8 |
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| 29 | 29 | | •S 1244 IS |
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| 30 | 30 | | seq.) is amended by inserting after section 7012 the fol-1 |
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| 31 | 31 | | lowing: 2 |
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| 32 | 32 | | ‘‘SEC. 7012A. MILITARY EDUCATION SAVINGS ACCOUNTS. 3 |
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| 33 | 33 | | ‘‘(a) I |
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| 34 | 34 | | NGENERAL.—The Secretary of Education, in 4 |
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| 35 | 35 | | consultation with the Secretary of Defense, shall carry out 5 |
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| 36 | 36 | | a program under which the Secretary of Education shall— 6 |
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| 37 | 37 | | ‘‘(1) at the request of a parent of an eligible 7 |
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| 38 | 38 | | military dependent child, establish an account on be-8 |
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| 39 | 39 | | half of such child (to be known as a ‘Military Edu-9 |
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| 40 | 40 | | cation Savings Account’) into which the Secretary 10 |
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| 41 | 41 | | shall deposit funds in an amount determined under 11 |
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| 42 | 42 | | subsection (d); and 12 |
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| 43 | 43 | | ‘‘(2) establish a procedure under which the par-13 |
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| 44 | 44 | | ent of the child may use funds in the account to pay 14 |
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| 45 | 45 | | for the educational expenses of the child in accord-15 |
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| 46 | 46 | | ance with this section. 16 |
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| 47 | 47 | | ‘‘(b) A |
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| 48 | 48 | | PPLICATION.— 17 |
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| 49 | 49 | | ‘‘(1) I |
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| 50 | 50 | | N GENERAL.—To be eligible to participate 18 |
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| 51 | 51 | | in the program under this section for a school year, 19 |
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| 52 | 52 | | a parent of an eligible military dependent child shall 20 |
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| 53 | 53 | | submit an application to the Secretary in accordance 21 |
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| 54 | 54 | | with this subsection. 22 |
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| 55 | 55 | | ‘‘(2) A |
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| 56 | 56 | | PPLICATION PROCESS.—In carrying out 23 |
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| 57 | 57 | | paragraph (1), the Secretary shall— 24 |
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| 60 | 60 | | •S 1244 IS |
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| 61 | 61 | | ‘‘(A) accept applications on a year-round 1 |
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| 62 | 62 | | basis and establish procedures for approving 2 |
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| 63 | 63 | | applications in an expeditious manner; and 3 |
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| 64 | 64 | | ‘‘(B) create a standardized form that par-4 |
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| 65 | 65 | | ents can use to apply for the program and en-5 |
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| 66 | 66 | | sure that such form is readily available in writ-6 |
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| 67 | 67 | | ten and electronic formats, including on a pub-7 |
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| 68 | 68 | | licly accessible website. 8 |
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| 69 | 69 | | ‘‘(3) A |
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| 70 | 70 | | PPROVAL.—Subject to the availability of 9 |
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| 71 | 71 | | funds to carry out this section, the Secretary shall 10 |
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| 72 | 72 | | approve the application of a parent to establish a 11 |
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| 73 | 73 | | Military Education Savings Account if— 12 |
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| 74 | 74 | | ‘‘(A) the application is submitted in ac-13 |
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| 75 | 75 | | cordance with the application process estab-14 |
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| 76 | 76 | | lished by the Secretary pursuant to this sub-15 |
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| 77 | 77 | | section; 16 |
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| 78 | 78 | | ‘‘(B) the application demonstrates that the 17 |
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| 79 | 79 | | child on whose behalf the Military Education 18 |
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| 80 | 80 | | Savings Account is to be established is an eligi-19 |
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| 81 | 81 | | ble military dependent child; and 20 |
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| 82 | 82 | | ‘‘(C) the parent who submits the applica-21 |
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| 83 | 83 | | tion enters into a written agreement with the 22 |
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| 84 | 84 | | Secretary under which the parent agrees— 23 |
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| 85 | 85 | | ‘‘(i) to provide the child with instruc-24 |
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| 86 | 86 | | tion in, at minimum, the fields of reading, 25 |
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| 89 | 89 | | •S 1244 IS |
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| 90 | 90 | | language, mathematics, science, and social 1 |
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| 91 | 91 | | studies; 2 |
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| 92 | 92 | | ‘‘(ii) to not enroll the child in a public 3 |
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| 93 | 93 | | elementary school or a public secondary 4 |
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| 94 | 94 | | school, on a full-time basis while partici-5 |
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| 95 | 95 | | pating in the program; 6 |
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| 96 | 96 | | ‘‘(iii) to use funds in the Military 7 |
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| 97 | 97 | | Education Savings Account only for the 8 |
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| 98 | 98 | | purposes authorized under this section; 9 |
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| 99 | 99 | | and 10 |
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| 100 | 100 | | ‘‘(iv) to comply with all other require-11 |
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| 101 | 101 | | ments of this section. 12 |
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| 102 | 102 | | ‘‘(4) R |
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| 103 | 103 | | ENEWALS.—The Secretary shall establish 13 |
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| 104 | 104 | | a process for the automatic renewal of a previously 14 |
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| 105 | 105 | | established Military Education Savings Account ex-15 |
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| 106 | 106 | | cept in cases in which— 16 |
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| 107 | 107 | | ‘‘(A) the parents of the child on whose be-17 |
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| 108 | 108 | | half the account was established choose not to 18 |
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| 109 | 109 | | renew the account; or 19 |
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| 110 | 110 | | ‘‘(B) the account was used to commit 20 |
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| 111 | 111 | | fraud or was otherwise not used in accordance 21 |
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| 112 | 112 | | with the requirements of this section. 22 |
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| 113 | 113 | | ‘‘(c) P |
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| 114 | 114 | | RIORITY IN THE EVENT OFINSUFFICIENT 23 |
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| 115 | 115 | | F |
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| 116 | 116 | | UNDS.— 24 |
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| 119 | 119 | | •S 1244 IS |
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| 120 | 120 | | ‘‘(1) IN GENERAL.—If the funds appropriated 1 |
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| 121 | 121 | | to carry out this section are insufficient to enable 2 |
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| 122 | 122 | | the Secretary to establish and fully fund a Military 3 |
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| 123 | 123 | | Education Savings Account for each eligible military 4 |
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| 124 | 124 | | dependent child whose parent has an application ap-5 |
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| 125 | 125 | | proved under subsection (b) for a school year, the 6 |
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| 126 | 126 | | Secretary shall— 7 |
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| 127 | 127 | | ‘‘(A) first renew and fully fund previously 8 |
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| 128 | 128 | | established Military Education Savings Ac-9 |
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| 129 | 129 | | counts; and 10 |
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| 130 | 130 | | ‘‘(B) if funds remain available after renew-11 |
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| 131 | 131 | | ing all accounts under subparagraph (A), con-12 |
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| 132 | 132 | | duct the lottery described in paragraph (3) to 13 |
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| 133 | 133 | | select the children on whose behalf accounts will 14 |
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| 134 | 134 | | be established using the remaining funds. 15 |
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| 135 | 135 | | ‘‘(2) T |
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| 136 | 136 | | RANSFER AUTHORITY .—Notwithstanding 16 |
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| 137 | 137 | | any other provision of law, the Secretary may trans-17 |
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| 138 | 138 | | fer amounts from any account of the Department of 18 |
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| 139 | 139 | | Education to renew and fully fund previously estab-19 |
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| 140 | 140 | | lished Military Education Savings Accounts under 20 |
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| 141 | 141 | | paragraph (1)(A). The authority to transfer 21 |
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| 142 | 142 | | amounts under the preceding sentence shall not be 22 |
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| 143 | 143 | | subject to any transfer or reprogramming require-23 |
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| 144 | 144 | | ments under any other provision of law. 24 |
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| 147 | 147 | | •S 1244 IS |
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| 148 | 148 | | ‘‘(3) LOTTERY.—The lottery described in this 1 |
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| 149 | 149 | | paragraph is a lottery in which— 2 |
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| 150 | 150 | | ‘‘(A) siblings of children on whose behalf 3 |
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| 151 | 151 | | Military Education Savings Accounts have pre-4 |
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| 152 | 152 | | viously been established have the highest prob-5 |
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| 153 | 153 | | ability of selection; 6 |
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| 154 | 154 | | ‘‘(B) children of enlisted members have the 7 |
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| 155 | 155 | | next-highest probability of selection after the 8 |
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| 156 | 156 | | children described in subparagraph (A); 9 |
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| 157 | 157 | | ‘‘(C) children of warrant officers have the 10 |
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| 158 | 158 | | next-highest probability of selection after the 11 |
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| 159 | 159 | | children described in subparagraph (B); and 12 |
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| 160 | 160 | | ‘‘(D) children of commissioned officers 13 |
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| 161 | 161 | | have the lowest probability of selection. 14 |
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| 162 | 162 | | ‘‘(d) A |
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| 163 | 163 | | MOUNT OFDEPOSITS.— 15 |
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| 164 | 164 | | ‘‘(1) F |
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| 165 | 165 | | IRST YEAR OF PROGRAM .—The amount 16 |
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| 166 | 166 | | of funds deposited into each Military Education Sav-17 |
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| 167 | 167 | | ings Account for the first school year for which such 18 |
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| 168 | 168 | | accounts are established under this section shall be 19 |
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| 169 | 169 | | $6,000 for each eligible military dependent child cov-20 |
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| 170 | 170 | | ered by the account. 21 |
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| 171 | 171 | | ‘‘(2) S |
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| 172 | 172 | | UBSEQUENT YEARS .—The amount of 22 |
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| 173 | 173 | | funds deposited into each Military Education Sav-23 |
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| 174 | 174 | | ings Account for any school year after the year de-24 |
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| 175 | 175 | | scribed in paragraph (1), shall be the amount deter-25 |
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| 178 | 178 | | •S 1244 IS |
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| 179 | 179 | | mined under this subsection for the previous school 1 |
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| 180 | 180 | | year increased by a percentage equal to the percent-2 |
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| 181 | 181 | | age increase in the Chained Consumer Price Index 3 |
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| 182 | 182 | | for All Urban Consumers (as published by the Bu-4 |
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| 183 | 183 | | reau of Labor Statistics of the Department of 5 |
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| 184 | 184 | | Labor) over the period of such previous school year. 6 |
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| 185 | 185 | | ‘‘(e) U |
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| 186 | 186 | | SE OFFUNDS.—Funds deposited into a Mili-7 |
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| 187 | 187 | | tary Education Savings Account for a school year may be 8 |
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| 188 | 188 | | used by the parent of an eligible military dependent child 9 |
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| 189 | 189 | | to make payments to a provider of a qualified educational 10 |
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| 190 | 190 | | service that is approved by the Secretary under subsection 11 |
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| 191 | 191 | | (f)(1), including for— 12 |
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| 192 | 192 | | ‘‘(1) costs of attendance at a private elementary 13 |
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| 193 | 193 | | school or private secondary school, educational co-op, 14 |
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| 194 | 194 | | micro-school, learning pod, or hybrid school, which 15 |
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| 195 | 195 | | may include a school of any kind that has a religious 16 |
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| 196 | 196 | | mission; 17 |
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| 197 | 197 | | ‘‘(2) private online learning programs; 18 |
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| 198 | 198 | | ‘‘(3) private tutoring or educational instruction 19 |
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| 199 | 199 | | outside the home; 20 |
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| 200 | 200 | | ‘‘(4) individual classes, extracurricular activities 21 |
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| 201 | 201 | | and programs, athletic programs, and educational 22 |
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| 202 | 202 | | trips provided by a school of any kind or as part of 23 |
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| 203 | 203 | | a parent-directed curriculum; 24 |
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| 206 | 206 | | •S 1244 IS |
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| 207 | 207 | | ‘‘(5) summer camps and academic camps that 1 |
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| 208 | 208 | | take place at times other than the summer; 2 |
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| 209 | 209 | | ‘‘(6) ancillary materials as prescribed by a stu-3 |
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| 210 | 210 | | dent’s educational therapist or a medical profes-4 |
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| 211 | 211 | | sional to complete academic work; 5 |
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| 212 | 212 | | ‘‘(7) textbooks, curriculum programs, or other 6 |
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| 213 | 213 | | instructional materials, including any supplemental 7 |
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| 214 | 214 | | materials required by a curriculum program, private 8 |
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| 215 | 215 | | school, private online learning program, or a public 9 |
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| 216 | 216 | | school, or any parent-directed curriculum associated 10 |
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| 217 | 217 | | with kindergarten through grade 12 education; 11 |
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| 218 | 218 | | ‘‘(8) computer hardware or other technological 12 |
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| 219 | 219 | | devices that are used to help meet a child’s edu-13 |
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| 220 | 220 | | cational needs, except that such hardware or devices 14 |
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| 221 | 221 | | may not be purchased by a parent more than once 15 |
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| 222 | 222 | | in an 18-month period; 16 |
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| 223 | 223 | | ‘‘(9) educational software and applications; 17 |
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| 224 | 224 | | ‘‘(10) uniforms purchased from or through a 18 |
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| 225 | 225 | | private school; 19 |
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| 226 | 226 | | ‘‘(11) fees for nationally standardized assess-20 |
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| 227 | 227 | | ment exams, advanced placement exams, any exams 21 |
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| 228 | 228 | | related to college or university admission, or tuition 22 |
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| 229 | 229 | | or fees for preparatory courses for such exams; 23 |
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| 232 | 232 | | •S 1244 IS |
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| 233 | 233 | | ‘‘(12) fees for summer education programs and 1 |
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| 234 | 234 | | specialized after-school education programs (but not 2 |
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| 235 | 235 | | including after-school childcare); 3 |
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| 236 | 236 | | ‘‘(13) educational services and therapies, in-4 |
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| 237 | 237 | | cluding occupational, behavioral, physical, speech- 5 |
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| 238 | 238 | | language, and audiology therapies; 6 |
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| 239 | 239 | | ‘‘(14) fees for transportation paid to a fee-for- 7 |
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| 240 | 240 | | service transportation provider for the child to travel 8 |
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| 241 | 241 | | to and from the facilities of a provider of qualified 9 |
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| 242 | 242 | | educational services; 10 |
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| 243 | 243 | | ‘‘(15) costs of attendance at an institution of 11 |
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| 244 | 244 | | higher education; 12 |
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| 245 | 245 | | ‘‘(16) costs associated with an apprenticeship or 13 |
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| 246 | 246 | | other vocational training program; 14 |
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| 247 | 247 | | ‘‘(17) fees for State-recognized industry certifi-15 |
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| 248 | 248 | | cation exams, and tuition or fees for preparatory 16 |
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| 249 | 249 | | courses for such exams; 17 |
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| 250 | 250 | | ‘‘(18) contributions to a college savings ac-18 |
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| 251 | 251 | | count, which may include contributions to a qualified 19 |
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| 252 | 252 | | tuition program (as defined in section 529(b)(1)(A) 20 |
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| 253 | 253 | | of the Internal Revenue Code of 1986) or other pre-21 |
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| 254 | 254 | | paid tuition plan offered by a State; or 22 |
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| 255 | 255 | | ‘‘(19) any other educational services approved 23 |
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| 256 | 256 | | by the Secretary. 24 |
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| 259 | 259 | | •S 1244 IS |
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| 260 | 260 | | ‘‘(f) REQUIREMENTS FOR PROVIDERS OFQUALIFIED 1 |
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| 261 | 261 | | E |
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| 262 | 262 | | DUCATIONALSERVICES.— 2 |
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| 263 | 263 | | ‘‘(1) R |
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| 264 | 264 | | EGISTRATION AND APPROVAL .—The Sec-3 |
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| 265 | 265 | | retary shall establish and maintain a registry of pro-4 |
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| 266 | 266 | | viders of qualified educational services that are ap-5 |
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| 267 | 267 | | proved to receive payments from a Military Edu-6 |
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| 268 | 268 | | cation Savings Account. The Secretary shall approve 7 |
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| 269 | 269 | | a provider of a qualified educational service under 8 |
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| 270 | 270 | | subsection (e) to receive such payments if the pro-9 |
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| 271 | 271 | | vider demonstrates to the Secretary that it is li-10 |
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| 272 | 272 | | censed in the State in which it operates to provide 11 |
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| 273 | 273 | | one or more of the services for which funds may be 12 |
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| 274 | 274 | | expended under subsection (e). 13 |
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| 275 | 275 | | ‘‘(2) S |
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| 276 | 276 | | URETY BOND.— 14 |
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| 277 | 277 | | ‘‘(A) I |
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| 278 | 278 | | N GENERAL.—The Secretary shall 15 |
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| 279 | 279 | | require each provider of a qualified educational 16 |
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| 280 | 280 | | service under subsection (e) that receives 17 |
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| 281 | 281 | | $100,000 or more in funds from Military Edu-18 |
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| 282 | 282 | | cation Savings Accounts in a school year to 19 |
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| 283 | 283 | | post a surety bond, in an amount determined by 20 |
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| 284 | 284 | | the Secretary, for such school year. 21 |
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| 285 | 285 | | ‘‘(B) R |
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| 286 | 286 | | ETENTION.—The Secretary shall 22 |
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| 287 | 287 | | prescribe the circumstances under which a sur-23 |
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| 288 | 288 | | ety bond under subparagraph (A) may be re-24 |
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| 289 | 289 | | tained by the Secretary. 25 |
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| 292 | 292 | | •S 1244 IS |
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| 293 | 293 | | ‘‘(g) TRANSFERSCHEDULE.— 1 |
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| 294 | 294 | | ‘‘(1) I |
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| 295 | 295 | | N GENERAL.—Subject to paragraph (2), 2 |
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| 296 | 296 | | the Secretary shall make quarterly transfers of the 3 |
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| 297 | 297 | | amount calculated pursuant to subsection (d) for de-4 |
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| 298 | 298 | | posit into the account of each eligible military de-5 |
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| 299 | 299 | | pendent child, except that the Secretary may make 6 |
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| 300 | 300 | | transfers according to another transfer schedule if 7 |
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| 301 | 301 | | the Secretary determines that a transfer schedule 8 |
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| 302 | 302 | | other than quarterly transfers is necessary for the 9 |
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| 303 | 303 | | operation of the education savings account. 10 |
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| 304 | 304 | | ‘‘(2) C |
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| 305 | 305 | | HOICE OF SCHEDULE .—The Secretary 11 |
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| 306 | 306 | | shall establish a process under which the parent of 12 |
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| 307 | 307 | | a child on whose behalf a Military Education Sav-13 |
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| 308 | 308 | | ings Account is established may choose a transfer 14 |
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| 309 | 309 | | schedule other than a transfer schedule determined 15 |
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| 310 | 310 | | under paragraph (1). 16 |
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| 311 | 311 | | ‘‘(3) E |
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| 312 | 312 | | XPENSE REPORTS .—Before receiving a 17 |
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| 313 | 313 | | transfer under paragraph (1) or (2), the parent of 18 |
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| 314 | 314 | | an eligible military dependent child on whose behalf 19 |
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| 315 | 315 | | a Military Education Savings Account is established 20 |
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| 316 | 316 | | shall submit to the Secretary an expense report dem-21 |
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| 317 | 317 | | onstrating how funds from the most recent transfer 22 |
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| 318 | 318 | | were expended. 23 |
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| 319 | 319 | | ‘‘(h) R |
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| 320 | 320 | | OLLOVER.—Amounts remaining in the Mili-24 |
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| 321 | 321 | | tary Education Savings Account of an eligible military de-25 |
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| 324 | 324 | | •S 1244 IS |
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| 325 | 325 | | pendent child at the end of a school year shall remain 1 |
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| 326 | 326 | | available for use in accordance with subsection (e) until 2 |
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| 327 | 327 | | the date on which such account terminates under sub-3 |
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| 328 | 328 | | section (i). 4 |
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| 329 | 329 | | ‘‘(i) T |
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| 330 | 330 | | ERMINATION ANDRETURN OFFUNDS.— 5 |
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| 331 | 331 | | ‘‘(1) T |
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| 332 | 332 | | ERMINATION.—The Military Education 6 |
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| 333 | 333 | | Savings Account of an eligible military dependent 7 |
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| 334 | 334 | | child shall terminate on— 8 |
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| 335 | 335 | | ‘‘(A) the date on which the child enrolls in 9 |
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| 336 | 336 | | a public elementary school or secondary school 10 |
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| 337 | 337 | | on a full-time basis; 11 |
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| 338 | 338 | | ‘‘(B) in the case of a child who is pursuing 12 |
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| 339 | 339 | | postsecondary education, the earlier of— 13 |
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| 340 | 340 | | ‘‘(i) the date on which the child com-14 |
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| 341 | 341 | | pletes postsecondary education; or 15 |
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| 342 | 342 | | ‘‘(ii) the date on which the child at-16 |
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| 343 | 343 | | tains the age of 22 years; 17 |
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| 344 | 344 | | ‘‘(C) in the case of a child who is an indi-18 |
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| 345 | 345 | | vidual with a disability, the date on which the 19 |
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| 346 | 346 | | child attains the age of 26 years; or 20 |
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| 347 | 347 | | ‘‘(D) in the case of an individual not de-21 |
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| 348 | 348 | | scribed in subparagraph (B) or (C), the earlier 22 |
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| 349 | 349 | | of— 23 |
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| 350 | 350 | | ‘‘(i) the date on which the child at-24 |
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| 351 | 351 | | tains the age of 22 years; or 25 |
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| 354 | 354 | | •S 1244 IS |
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| 355 | 355 | | ‘‘(ii) the expiration of any 2-year pe-1 |
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| 356 | 356 | | riod during which funds in the account are 2 |
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| 357 | 357 | | not used in accordance with this section. 3 |
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| 358 | 358 | | ‘‘(2) R |
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| 359 | 359 | | ETURN OF FUNDS .—Any funds remain-4 |
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| 360 | 360 | | ing in a Military Education Savings Account on the 5 |
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| 361 | 361 | | date such account terminates under paragraph (1) 6 |
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| 362 | 362 | | shall be returned to the Treasury of the United 7 |
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| 363 | 363 | | States and shall be used to carry out the program 8 |
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| 364 | 364 | | under this section. 9 |
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| 365 | 365 | | ‘‘(j) C |
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| 366 | 366 | | OMPULSORYATTENDANCEREQUIREMENTS.— 10 |
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| 367 | 367 | | A State that receives funds under this title shall consider 11 |
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| 368 | 368 | | a child with a Military Education Savings Account for a 12 |
|---|
| 369 | 369 | | school year as meeting the State’s compulsory school at-13 |
|---|
| 370 | 370 | | tendance requirements for such school year. 14 |
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| 371 | 371 | | ‘‘(k) S |
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| 372 | 372 | | PECIALRULE.—In the case of a child with a 15 |
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| 373 | 373 | | Military Education Savings Account who attends a public 16 |
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| 374 | 374 | | school on a less than full-time basis in a school year— 17 |
|---|
| 375 | 375 | | ‘‘(1) the child may not attend the public school 18 |
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| 376 | 376 | | free of charge; and 19 |
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| 377 | 377 | | ‘‘(2) funds in the account, in an amount deter-20 |
|---|
| 378 | 378 | | mined pursuant to an agreement between the parent 21 |
|---|
| 379 | 379 | | of the child and the local educational agency con-22 |
|---|
| 380 | 380 | | cerned, shall be used to pay for the child’s costs of 23 |
|---|
| 381 | 381 | | attendance at such school. 24 |
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| 382 | 382 | | ‘‘(l) T |
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| 383 | 383 | | AXTREATMENT OFACCOUNTS.— 25 |
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| 386 | 386 | | •S 1244 IS |
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| 387 | 387 | | ‘‘(1) IN GENERAL.—A Military Education Sav-1 |
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| 388 | 388 | | ings Account is exempt from taxation under subtitle 2 |
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| 389 | 389 | | A of the Internal Revenue Code of 1986. 3 |
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| 390 | 390 | | ‘‘(2) C |
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| 391 | 391 | | ONTRIBUTIONS AND DISTRIBUTIONS .— 4 |
|---|
| 392 | 392 | | For purposes of subtitle A of the Internal Revenue 5 |
|---|
| 393 | 393 | | Code of 1986— 6 |
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| 394 | 394 | | ‘‘(A) any contribution to a military edu-7 |
|---|
| 395 | 395 | | cation savings account by the Secretary under 8 |
|---|
| 396 | 396 | | this Act shall not be includible in the gross in-9 |
|---|
| 397 | 397 | | come of the individual for whose benefit such 10 |
|---|
| 398 | 398 | | account is maintained or the parent of such in-11 |
|---|
| 399 | 399 | | dividual; and 12 |
|---|
| 400 | 400 | | ‘‘(B) any distribution from a military edu-13 |
|---|
| 401 | 401 | | cation savings account which is permitted under 14 |
|---|
| 402 | 402 | | this Act shall not be includible in the gross in-15 |
|---|
| 403 | 403 | | come of the individual for whose benefit such 16 |
|---|
| 404 | 404 | | account is maintained or the parent of such in-17 |
|---|
| 405 | 405 | | dividual. 18 |
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| 406 | 406 | | ‘‘(m) F |
|---|
| 407 | 407 | | RAUDPREVENTION AND REPORTING.—The 19 |
|---|
| 408 | 408 | | Secretary shall establish a website and a telephone hotline 20 |
|---|
| 409 | 409 | | that enable individuals to anonymously report suspected 21 |
|---|
| 410 | 410 | | fraud in the program under this section. The Secretary 22 |
|---|
| 411 | 411 | | also shall conduct or contract for random, quarterly, or 23 |
|---|
| 412 | 412 | | annual audits of accounts as needed to ensure compliance 24 |
|---|
| 413 | 413 | | with this section. 25 |
|---|
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| 415 | 415 | | ssavage on LAPJG3WLY3PROD with BILLS 15 |
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| 416 | 416 | | •S 1244 IS |
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| 417 | 417 | | ‘‘(n) CONTRACTAUTHORITY.—The Secretary may 1 |
|---|
| 418 | 418 | | enter into one or more contracts for the purpose of car-2 |
|---|
| 419 | 419 | | rying out the responsibilities of the Secretary under this 3 |
|---|
| 420 | 420 | | section. 4 |
|---|
| 421 | 421 | | ‘‘(o) R |
|---|
| 422 | 422 | | EFUNDS.—The Secretary shall establish a 5 |
|---|
| 423 | 423 | | process under which payments from a Military Education 6 |
|---|
| 424 | 424 | | Savings Accounts to a provider of a qualified educational 7 |
|---|
| 425 | 425 | | service under subsection (e) shall be refunded to the ac-8 |
|---|
| 426 | 426 | | count in the event of fraud or nonperformance by the pro-9 |
|---|
| 427 | 427 | | vider. 10 |
|---|
| 428 | 428 | | ‘‘(p) R |
|---|
| 429 | 429 | | ULES OFCONSTRUCTION.— 11 |
|---|
| 430 | 430 | | ‘‘(1) N |
|---|
| 431 | 431 | | ONAGENCY.—A provider of a qualified 12 |
|---|
| 432 | 432 | | educational service under subsection (e) that receives 13 |
|---|
| 433 | 433 | | a payment from a Military Education Savings Ac-14 |
|---|
| 434 | 434 | | count pursuant to this section shall not be consid-15 |
|---|
| 435 | 435 | | ered an agent of the State or the Federal Govern-16 |
|---|
| 436 | 436 | | ment solely because the provider received such pay-17 |
|---|
| 437 | 437 | | ment. 18 |
|---|
| 438 | 438 | | ‘‘(2) P |
|---|
| 439 | 439 | | ROHIBITION OF FEDERAL OR STATE SU -19 |
|---|
| 440 | 440 | | PERVISION OR CONTROL OVER NONPUBLIC EDU -20 |
|---|
| 441 | 441 | | CATION PROVIDERS.— 21 |
|---|
| 442 | 442 | | ‘‘(A) I |
|---|
| 443 | 443 | | N GENERAL.—Nothing in this sec-22 |
|---|
| 444 | 444 | | tion shall be construed to permit, allow, encour-23 |
|---|
| 445 | 445 | | age, or authorize any Federal or State control 24 |
|---|
| 446 | 446 | | or supervision over any aspect of any provider 25 |
|---|
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| 448 | 448 | | ssavage on LAPJG3WLY3PROD with BILLS 16 |
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| 449 | 449 | | •S 1244 IS |
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| 450 | 450 | | of a qualified educational service, including a 1 |
|---|
| 451 | 451 | | private, religious, or home education provider 2 |
|---|
| 452 | 452 | | (without regard to whether a home education 3 |
|---|
| 453 | 453 | | provider is treated as a private school or home 4 |
|---|
| 454 | 454 | | school under State law). This section shall not 5 |
|---|
| 455 | 455 | | be construed to exclude private, religious, or 6 |
|---|
| 456 | 456 | | home education providers from participation in 7 |
|---|
| 457 | 457 | | programs or services under this Act. 8 |
|---|
| 458 | 458 | | ‘‘(B) N |
|---|
| 459 | 459 | | O RELIGION-BASED DISCRIMINA -9 |
|---|
| 460 | 460 | | TION.—The Secretary shall not exclude, dis-10 |
|---|
| 461 | 461 | | criminate against, or otherwise disadvantage 11 |
|---|
| 462 | 462 | | any provider of a qualified educational service 12 |
|---|
| 463 | 463 | | with respect to programs or services under this 13 |
|---|
| 464 | 464 | | section based in whole or in part on the pro-14 |
|---|
| 465 | 465 | | vider’s religious education character or affili-15 |
|---|
| 466 | 466 | | ation, including religiously based or mission- 16 |
|---|
| 467 | 467 | | based policies or practices. 17 |
|---|
| 468 | 468 | | ‘‘(3) I |
|---|
| 469 | 469 | | MPOSITION OF ADDITIONAL REQUIRE -18 |
|---|
| 470 | 470 | | MENTS.—No Federal requirements shall apply to a 19 |
|---|
| 471 | 471 | | provider of a qualified educational service under sub-20 |
|---|
| 472 | 472 | | section (e) other than the requirements specifically 21 |
|---|
| 473 | 473 | | set forth in this section. Nothing in this section shall 22 |
|---|
| 474 | 474 | | be construed to require a provider of a qualified edu-23 |
|---|
| 475 | 475 | | cational service under subsection (e) to alter its 24 |
|---|
| 476 | 476 | | creed, practices, admissions policy, or curriculum in 25 |
|---|
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| 478 | 478 | | ssavage on LAPJG3WLY3PROD with BILLS 17 |
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| 479 | 479 | | •S 1244 IS |
|---|
| 480 | 480 | | order to be eligible to receive payments from a Mili-1 |
|---|
| 481 | 481 | | tary Education Savings Account. 2 |
|---|
| 482 | 482 | | ‘‘(4) T |
|---|
| 483 | 483 | | REATMENT OF ASSISTANCE .—For pur-3 |
|---|
| 484 | 484 | | poses of any Federal law, assistance provided under 4 |
|---|
| 485 | 485 | | this section shall be considered assistance to the eli-5 |
|---|
| 486 | 486 | | gible military dependent child or to the parents of a 6 |
|---|
| 487 | 487 | | child on whose behalf a Military Education Savings 7 |
|---|
| 488 | 488 | | Account is established and shall not be considered 8 |
|---|
| 489 | 489 | | assistance to the provider of a qualified educational 9 |
|---|
| 490 | 490 | | service under subsection (e) that uses or receives 10 |
|---|
| 491 | 491 | | funds from a Military Education Savings Account. 11 |
|---|
| 492 | 492 | | ‘‘(q) L |
|---|
| 493 | 493 | | EGALPROCEEDINGS.— 12 |
|---|
| 494 | 494 | | ‘‘(1) B |
|---|
| 495 | 495 | | URDEN.—In any legal proceeding in 13 |
|---|
| 496 | 496 | | which a provider of a qualified educational service 14 |
|---|
| 497 | 497 | | under subsection (e) challenges a requirement im-15 |
|---|
| 498 | 498 | | posed by the Department of Education on the pro-16 |
|---|
| 499 | 499 | | vider, the Department shall have the burden of es-17 |
|---|
| 500 | 500 | | tablishing that the requirement is necessary and 18 |
|---|
| 501 | 501 | | does not impose any undue burden on the provider. 19 |
|---|
| 502 | 502 | | ‘‘(2) L |
|---|
| 503 | 503 | | IMITATION ON LIABILITY.— 20 |
|---|
| 504 | 504 | | ‘‘(A) I |
|---|
| 505 | 505 | | N GENERAL.—No liability shall arise 21 |
|---|
| 506 | 506 | | on the part of an entity described in subpara-22 |
|---|
| 507 | 507 | | graph (B) solely because such entity awards, 23 |
|---|
| 508 | 508 | | uses, or receives funds from a Military Edu-24 |
|---|
| 509 | 509 | | cation Savings Account. 25 |
|---|
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| 511 | 511 | | ssavage on LAPJG3WLY3PROD with BILLS 18 |
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| 512 | 512 | | •S 1244 IS |
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| 513 | 513 | | ‘‘(B) ENTITY DESCRIBED.—The entities 1 |
|---|
| 514 | 514 | | described in this subparagraph are the fol-2 |
|---|
| 515 | 515 | | lowing: 3 |
|---|
| 516 | 516 | | ‘‘(i) The Department of Education. 4 |
|---|
| 517 | 517 | | ‘‘(ii) An entity that enters into a con-5 |
|---|
| 518 | 518 | | tract with the Secretary pursuant to sub-6 |
|---|
| 519 | 519 | | section (n). 7 |
|---|
| 520 | 520 | | ‘‘(iii) An entity that provides a quali-8 |
|---|
| 521 | 521 | | fied educational service as described in 9 |
|---|
| 522 | 522 | | subsection (e). 10 |
|---|
| 523 | 523 | | ‘‘(3) I |
|---|
| 524 | 524 | | NTERVENTION.— 11 |
|---|
| 525 | 525 | | ‘‘(A) I |
|---|
| 526 | 526 | | N GENERAL.—Except as provided in 12 |
|---|
| 527 | 527 | | subparagraph (B), a parent of an eligible mili-13 |
|---|
| 528 | 528 | | tary dependent child or a parent of a child on 14 |
|---|
| 529 | 529 | | whose behalf a Military Education Savings Ac-15 |
|---|
| 530 | 530 | | count is established may intervene in any legal 16 |
|---|
| 531 | 531 | | proceeding in which the constitutionality of the 17 |
|---|
| 532 | 532 | | program under this section is challenged under 18 |
|---|
| 533 | 533 | | a State constitution or the United States Con-19 |
|---|
| 534 | 534 | | stitution. 20 |
|---|
| 535 | 535 | | ‘‘(B) E |
|---|
| 536 | 536 | | XCEPTION.—For purposes of judi-21 |
|---|
| 537 | 537 | | cial administration, a court may— 22 |
|---|
| 538 | 538 | | ‘‘(i) limit the number of parents al-23 |
|---|
| 539 | 539 | | lowed to intervene in a proceeding under 24 |
|---|
| 540 | 540 | | subparagraph (A); or 25 |
|---|
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| 542 | 542 | | ssavage on LAPJG3WLY3PROD with BILLS 19 |
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| 543 | 543 | | •S 1244 IS |
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| 544 | 544 | | ‘‘(ii) require all parents who have in-1 |
|---|
| 545 | 545 | | tervened in a proceeding under subpara-2 |
|---|
| 546 | 546 | | graph (A) to file a joint brief, except that 3 |
|---|
| 547 | 547 | | no parent shall be required to join any 4 |
|---|
| 548 | 548 | | brief filed on behalf of a State that is a de-5 |
|---|
| 549 | 549 | | fendant in the proceeding. 6 |
|---|
| 550 | 550 | | ‘‘(r) A |
|---|
| 551 | 551 | | DMINISTRATIVEEXPENSES.—The Secretary 7 |
|---|
| 552 | 552 | | may use not more than 5 percent of the funds made avail-8 |
|---|
| 553 | 553 | | able to carry out this section for the direct costs of admin-9 |
|---|
| 554 | 554 | | istering Military Education Savings Accounts. 10 |
|---|
| 555 | 555 | | ‘‘(s) D |
|---|
| 556 | 556 | | EFINITIONS.—In this section: 11 |
|---|
| 557 | 557 | | ‘‘(1) The terms ‘commissioned officer’, ‘enlisted 12 |
|---|
| 558 | 558 | | member’, and ‘warrant officer’ have the meanings 13 |
|---|
| 559 | 559 | | given those terms in section 101(b) of title 10, 14 |
|---|
| 560 | 560 | | United States Code. 15 |
|---|
| 561 | 561 | | ‘‘(2) The term ‘eligible military dependent child’ 16 |
|---|
| 562 | 562 | | means a child who— 17 |
|---|
| 563 | 563 | | ‘‘(A) has a parent on active duty in the 18 |
|---|
| 564 | 564 | | uniformed services (as that term is defined in 19 |
|---|
| 565 | 565 | | section 101 of title 37, United States Code, ex-20 |
|---|
| 566 | 566 | | cept that such term does not include an officer 21 |
|---|
| 567 | 567 | | in the National Guard who has been activated); 22 |
|---|
| 568 | 568 | | and 23 |
|---|
| 569 | 569 | | ‘‘(B) in the case of a child seeking to es-24 |
|---|
| 570 | 570 | | tablish a Military Education Savings account 25 |
|---|
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| 572 | 572 | | ssavage on LAPJG3WLY3PROD with BILLS 20 |
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| 573 | 573 | | •S 1244 IS |
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| 574 | 574 | | for the first time, was enrolled in a public ele-1 |
|---|
| 575 | 575 | | mentary school or a public secondary school for 2 |
|---|
| 576 | 576 | | not less than 100 consecutive days in the pre-3 |
|---|
| 577 | 577 | | ceding school year. 4 |
|---|
| 578 | 578 | | ‘‘(3) The term ‘institution of higher education’ 5 |
|---|
| 579 | 579 | | has the meaning given the term in section 102 of the 6 |
|---|
| 580 | 580 | | Higher Education Act of 1965 (20 U.S.C. 1002).’’. 7 |
|---|
| 581 | 581 | | (b) T |
|---|
| 582 | 582 | | ABLE OFCONTENTS.—The table of contents in 8 |
|---|
| 583 | 583 | | section 2 of the Elementary and Secondary Education Act 9 |
|---|
| 584 | 584 | | is amended by inserting after the item relating to section 10 |
|---|
| 585 | 585 | | 7012 the following: 11 |
|---|
| 586 | 586 | | ‘‘Sec. 7012A. Military education savings accounts.’’. |
|---|
| 587 | 587 | | SEC. 3. AUTHORIZATION OF APPROPRIATIONS. |
|---|
| 588 | 588 | | 12 |
|---|
| 589 | 589 | | Section 7014 of the Elementary and Secondary Edu-13 |
|---|
| 590 | 590 | | cation Act of 1965 (20 U.S.C. 7714) is amended by add-14 |
|---|
| 591 | 591 | | ing at the end the following: 15 |
|---|
| 592 | 592 | | ‘‘(f) M |
|---|
| 593 | 593 | | ILITARYEDUCATIONSAVINGSACCOUNTS.— 16 |
|---|
| 594 | 594 | | For the purpose of carrying out section 7012A— 17 |
|---|
| 595 | 595 | | ‘‘(1) there are authorized to be appropriated 18 |
|---|
| 596 | 596 | | $1,200,000,000 for fiscal year 2026; and 19 |
|---|
| 597 | 597 | | ‘‘(2) for each fiscal year beginning after fiscal 20 |
|---|
| 598 | 598 | | year 2026, the amount authorized to be appro-21 |
|---|
| 599 | 599 | | priated shall be the amount authorized to be appro-22 |
|---|
| 600 | 600 | | priated for the previous fiscal year increased by the 23 |
|---|
| 601 | 601 | | percentage increase in the Chained Consumer Price 24 |
|---|
| 602 | 602 | | Index for All Urban Consumers (as published by the 25 |
|---|
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| 604 | 604 | | ssavage on LAPJG3WLY3PROD with BILLS 21 |
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| 605 | 605 | | •S 1244 IS |
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| 606 | 606 | | Bureau of Labor Statistics of the Department of 1 |
|---|
| 607 | 607 | | Labor) over the period of such previous fiscal year.’’. 2 |
|---|
| 608 | 608 | | Æ |
|---|
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