II
119THCONGRESS
1
STSESSION S. 1244
To amend the Elementary and Secondary Education Act of 1965 to allow
parents of eligible military dependent children to establish Military Edu-
cation Savings Accounts, and for other purposes.
IN THE SENATE OF THE UNITED STATES
APRIL1 (legislative day, MARCH31), 2025
Mr. C
RUZ(for himself and Mr. BANKS) introduced the following bill; which
was read twice and referred to the Committee on Finance
A BILL
To amend the Elementary and Secondary Education Act
of 1965 to allow parents of eligible military dependent
children to establish Military Education Savings Ac-
counts, and for other purposes.
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 ‘‘Education Savings Ac-4
counts for Military Families Act of 2025’’. 5
SEC. 2. MILITARY EDUCATION SAVINGS ACCOUNTS. 6
(a) I
NGENERAL.—Title VII of the Elementary and 7
Secondary Education Act of 1965 (20 U.S.C. 7701 et 8
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seq.) is amended by inserting after section 7012 the fol-1
lowing: 2
‘‘SEC. 7012A. MILITARY EDUCATION SAVINGS ACCOUNTS. 3
‘‘(a) I
NGENERAL.—The Secretary of Education, in 4
consultation with the Secretary of Defense, shall carry out 5
a program under which the Secretary of Education shall— 6
‘‘(1) at the request of a parent of an eligible 7
military dependent child, establish an account on be-8
half of such child (to be known as a ‘Military Edu-9
cation Savings Account’) into which the Secretary 10
shall deposit funds in an amount determined under 11
subsection (d); and 12
‘‘(2) establish a procedure under which the par-13
ent of the child may use funds in the account to pay 14
for the educational expenses of the child in accord-15
ance with this section. 16
‘‘(b) A
PPLICATION.— 17
‘‘(1) I
N GENERAL.—To be eligible to participate 18
in the program under this section for a school year, 19
a parent of an eligible military dependent child shall 20
submit an application to the Secretary in accordance 21
with this subsection. 22
‘‘(2) A
PPLICATION PROCESS.—In carrying out 23
paragraph (1), the Secretary shall— 24
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‘‘(A) accept applications on a year-round 1
basis and establish procedures for approving 2
applications in an expeditious manner; and 3
‘‘(B) create a standardized form that par-4
ents can use to apply for the program and en-5
sure that such form is readily available in writ-6
ten and electronic formats, including on a pub-7
licly accessible website. 8
‘‘(3) A
PPROVAL.—Subject to the availability of 9
funds to carry out this section, the Secretary shall 10
approve the application of a parent to establish a 11
Military Education Savings Account if— 12
‘‘(A) the application is submitted in ac-13
cordance with the application process estab-14
lished by the Secretary pursuant to this sub-15
section; 16
‘‘(B) the application demonstrates that the 17
child on whose behalf the Military Education 18
Savings Account is to be established is an eligi-19
ble military dependent child; and 20
‘‘(C) the parent who submits the applica-21
tion enters into a written agreement with the 22
Secretary under which the parent agrees— 23
‘‘(i) to provide the child with instruc-24
tion in, at minimum, the fields of reading, 25
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language, mathematics, science, and social 1
studies; 2
‘‘(ii) to not enroll the child in a public 3
elementary school or a public secondary 4
school, on a full-time basis while partici-5
pating in the program; 6
‘‘(iii) to use funds in the Military 7
Education Savings Account only for the 8
purposes authorized under this section; 9
and 10
‘‘(iv) to comply with all other require-11
ments of this section. 12
‘‘(4) R
ENEWALS.—The Secretary shall establish 13
a process for the automatic renewal of a previously 14
established Military Education Savings Account ex-15
cept in cases in which— 16
‘‘(A) the parents of the child on whose be-17
half the account was established choose not to 18
renew the account; or 19
‘‘(B) the account was used to commit 20
fraud or was otherwise not used in accordance 21
with the requirements of this section. 22
‘‘(c) P
RIORITY IN THE EVENT OFINSUFFICIENT 23
F
UNDS.— 24
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‘‘(1) IN GENERAL.—If the funds appropriated 1
to carry out this section are insufficient to enable 2
the Secretary to establish and fully fund a Military 3
Education Savings Account for each eligible military 4
dependent child whose parent has an application ap-5
proved under subsection (b) for a school year, the 6
Secretary shall— 7
‘‘(A) first renew and fully fund previously 8
established Military Education Savings Ac-9
counts; and 10
‘‘(B) if funds remain available after renew-11
ing all accounts under subparagraph (A), con-12
duct the lottery described in paragraph (3) to 13
select the children on whose behalf accounts will 14
be established using the remaining funds. 15
‘‘(2) T
RANSFER AUTHORITY .—Notwithstanding 16
any other provision of law, the Secretary may trans-17
fer amounts from any account of the Department of 18
Education to renew and fully fund previously estab-19
lished Military Education Savings Accounts under 20
paragraph (1)(A). The authority to transfer 21
amounts under the preceding sentence shall not be 22
subject to any transfer or reprogramming require-23
ments under any other provision of law. 24
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‘‘(3) LOTTERY.—The lottery described in this 1
paragraph is a lottery in which— 2
‘‘(A) siblings of children on whose behalf 3
Military Education Savings Accounts have pre-4
viously been established have the highest prob-5
ability of selection; 6
‘‘(B) children of enlisted members have the 7
next-highest probability of selection after the 8
children described in subparagraph (A); 9
‘‘(C) children of warrant officers have the 10
next-highest probability of selection after the 11
children described in subparagraph (B); and 12
‘‘(D) children of commissioned officers 13
have the lowest probability of selection. 14
‘‘(d) A
MOUNT OFDEPOSITS.— 15
‘‘(1) F
IRST YEAR OF PROGRAM .—The amount 16
of funds deposited into each Military Education Sav-17
ings Account for the first school year for which such 18
accounts are established under this section shall be 19
$6,000 for each eligible military dependent child cov-20
ered by the account. 21
‘‘(2) S
UBSEQUENT YEARS .—The amount of 22
funds deposited into each Military Education Sav-23
ings Account for any school year after the year de-24
scribed in paragraph (1), shall be the amount deter-25
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mined under this subsection for the previous school 1
year increased by a percentage equal to the percent-2
age increase in the Chained Consumer Price Index 3
for All Urban Consumers (as published by the Bu-4
reau of Labor Statistics of the Department of 5
Labor) over the period of such previous school year. 6
‘‘(e) U
SE OFFUNDS.—Funds deposited into a Mili-7
tary Education Savings Account for a school year may be 8
used by the parent of an eligible military dependent child 9
to make payments to a provider of a qualified educational 10
service that is approved by the Secretary under subsection 11
(f)(1), including for— 12
‘‘(1) costs of attendance at a private elementary 13
school or private secondary school, educational co-op, 14
micro-school, learning pod, or hybrid school, which 15
may include a school of any kind that has a religious 16
mission; 17
‘‘(2) private online learning programs; 18
‘‘(3) private tutoring or educational instruction 19
outside the home; 20
‘‘(4) individual classes, extracurricular activities 21
and programs, athletic programs, and educational 22
trips provided by a school of any kind or as part of 23
a parent-directed curriculum; 24
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‘‘(5) summer camps and academic camps that 1
take place at times other than the summer; 2
‘‘(6) ancillary materials as prescribed by a stu-3
dent’s educational therapist or a medical profes-4
sional to complete academic work; 5
‘‘(7) textbooks, curriculum programs, or other 6
instructional materials, including any supplemental 7
materials required by a curriculum program, private 8
school, private online learning program, or a public 9
school, or any parent-directed curriculum associated 10
with kindergarten through grade 12 education; 11
‘‘(8) computer hardware or other technological 12
devices that are used to help meet a child’s edu-13
cational needs, except that such hardware or devices 14
may not be purchased by a parent more than once 15
in an 18-month period; 16
‘‘(9) educational software and applications; 17
‘‘(10) uniforms purchased from or through a 18
private school; 19
‘‘(11) fees for nationally standardized assess-20
ment exams, advanced placement exams, any exams 21
related to college or university admission, or tuition 22
or fees for preparatory courses for such exams; 23
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‘‘(12) fees for summer education programs and 1
specialized after-school education programs (but not 2
including after-school childcare); 3
‘‘(13) educational services and therapies, in-4
cluding occupational, behavioral, physical, speech- 5
language, and audiology therapies; 6
‘‘(14) fees for transportation paid to a fee-for- 7
service transportation provider for the child to travel 8
to and from the facilities of a provider of qualified 9
educational services; 10
‘‘(15) costs of attendance at an institution of 11
higher education; 12
‘‘(16) costs associated with an apprenticeship or 13
other vocational training program; 14
‘‘(17) fees for State-recognized industry certifi-15
cation exams, and tuition or fees for preparatory 16
courses for such exams; 17
‘‘(18) contributions to a college savings ac-18
count, which may include contributions to a qualified 19
tuition program (as defined in section 529(b)(1)(A) 20
of the Internal Revenue Code of 1986) or other pre-21
paid tuition plan offered by a State; or 22
‘‘(19) any other educational services approved 23
by the Secretary. 24
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‘‘(f) REQUIREMENTS FOR PROVIDERS OFQUALIFIED 1
E
DUCATIONALSERVICES.— 2
‘‘(1) R
EGISTRATION AND APPROVAL .—The Sec-3
retary shall establish and maintain a registry of pro-4
viders of qualified educational services that are ap-5
proved to receive payments from a Military Edu-6
cation Savings Account. The Secretary shall approve 7
a provider of a qualified educational service under 8
subsection (e) to receive such payments if the pro-9
vider demonstrates to the Secretary that it is li-10
censed in the State in which it operates to provide 11
one or more of the services for which funds may be 12
expended under subsection (e). 13
‘‘(2) S
URETY BOND.— 14
‘‘(A) I
N GENERAL.—The Secretary shall 15
require each provider of a qualified educational 16
service under subsection (e) that receives 17
$100,000 or more in funds from Military Edu-18
cation Savings Accounts in a school year to 19
post a surety bond, in an amount determined by 20
the Secretary, for such school year. 21
‘‘(B) R
ETENTION.—The Secretary shall 22
prescribe the circumstances under which a sur-23
ety bond under subparagraph (A) may be re-24
tained by the Secretary. 25
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‘‘(g) TRANSFERSCHEDULE.— 1
‘‘(1) I
N GENERAL.—Subject to paragraph (2), 2
the Secretary shall make quarterly transfers of the 3
amount calculated pursuant to subsection (d) for de-4
posit into the account of each eligible military de-5
pendent child, except that the Secretary may make 6
transfers according to another transfer schedule if 7
the Secretary determines that a transfer schedule 8
other than quarterly transfers is necessary for the 9
operation of the education savings account. 10
‘‘(2) C
HOICE OF SCHEDULE .—The Secretary 11
shall establish a process under which the parent of 12
a child on whose behalf a Military Education Sav-13
ings Account is established may choose a transfer 14
schedule other than a transfer schedule determined 15
under paragraph (1). 16
‘‘(3) E
XPENSE REPORTS .—Before receiving a 17
transfer under paragraph (1) or (2), the parent of 18
an eligible military dependent child on whose behalf 19
a Military Education Savings Account is established 20
shall submit to the Secretary an expense report dem-21
onstrating how funds from the most recent transfer 22
were expended. 23
‘‘(h) R
OLLOVER.—Amounts remaining in the Mili-24
tary Education Savings Account of an eligible military de-25
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pendent child at the end of a school year shall remain 1
available for use in accordance with subsection (e) until 2
the date on which such account terminates under sub-3
section (i). 4
‘‘(i) T
ERMINATION ANDRETURN OFFUNDS.— 5
‘‘(1) T
ERMINATION.—The Military Education 6
Savings Account of an eligible military dependent 7
child shall terminate on— 8
‘‘(A) the date on which the child enrolls in 9
a public elementary school or secondary school 10
on a full-time basis; 11
‘‘(B) in the case of a child who is pursuing 12
postsecondary education, the earlier of— 13
‘‘(i) the date on which the child com-14
pletes postsecondary education; or 15
‘‘(ii) the date on which the child at-16
tains the age of 22 years; 17
‘‘(C) in the case of a child who is an indi-18
vidual with a disability, the date on which the 19
child attains the age of 26 years; or 20
‘‘(D) in the case of an individual not de-21
scribed in subparagraph (B) or (C), the earlier 22
of— 23
‘‘(i) the date on which the child at-24
tains the age of 22 years; or 25
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‘‘(ii) the expiration of any 2-year pe-1
riod during which funds in the account are 2
not used in accordance with this section. 3
‘‘(2) R
ETURN OF FUNDS .—Any funds remain-4
ing in a Military Education Savings Account on the 5
date such account terminates under paragraph (1) 6
shall be returned to the Treasury of the United 7
States and shall be used to carry out the program 8
under this section. 9
‘‘(j) C
OMPULSORYATTENDANCEREQUIREMENTS.— 10
A State that receives funds under this title shall consider 11
a child with a Military Education Savings Account for a 12
school year as meeting the State’s compulsory school at-13
tendance requirements for such school year. 14
‘‘(k) S
PECIALRULE.—In the case of a child with a 15
Military Education Savings Account who attends a public 16
school on a less than full-time basis in a school year— 17
‘‘(1) the child may not attend the public school 18
free of charge; and 19
‘‘(2) funds in the account, in an amount deter-20
mined pursuant to an agreement between the parent 21
of the child and the local educational agency con-22
cerned, shall be used to pay for the child’s costs of 23
attendance at such school. 24
‘‘(l) T
AXTREATMENT OFACCOUNTS.— 25
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‘‘(1) IN GENERAL.—A Military Education Sav-1
ings Account is exempt from taxation under subtitle 2
A of the Internal Revenue Code of 1986. 3
‘‘(2) C
ONTRIBUTIONS AND DISTRIBUTIONS .— 4
For purposes of subtitle A of the Internal Revenue 5
Code of 1986— 6
‘‘(A) any contribution to a military edu-7
cation savings account by the Secretary under 8
this Act shall not be includible in the gross in-9
come of the individual for whose benefit such 10
account is maintained or the parent of such in-11
dividual; and 12
‘‘(B) any distribution from a military edu-13
cation savings account which is permitted under 14
this Act shall not be includible in the gross in-15
come of the individual for whose benefit such 16
account is maintained or the parent of such in-17
dividual. 18
‘‘(m) F
RAUDPREVENTION AND REPORTING.—The 19
Secretary shall establish a website and a telephone hotline 20
that enable individuals to anonymously report suspected 21
fraud in the program under this section. The Secretary 22
also shall conduct or contract for random, quarterly, or 23
annual audits of accounts as needed to ensure compliance 24
with this section. 25
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‘‘(n) CONTRACTAUTHORITY.—The Secretary may 1
enter into one or more contracts for the purpose of car-2
rying out the responsibilities of the Secretary under this 3
section. 4
‘‘(o) R
EFUNDS.—The Secretary shall establish a 5
process under which payments from a Military Education 6
Savings Accounts to a provider of a qualified educational 7
service under subsection (e) shall be refunded to the ac-8
count in the event of fraud or nonperformance by the pro-9
vider. 10
‘‘(p) R
ULES OFCONSTRUCTION.— 11
‘‘(1) N
ONAGENCY.—A provider of a qualified 12
educational service under subsection (e) that receives 13
a payment from a Military Education Savings Ac-14
count pursuant to this section shall not be consid-15
ered an agent of the State or the Federal Govern-16
ment solely because the provider received such pay-17
ment. 18
‘‘(2) P
ROHIBITION OF FEDERAL OR STATE SU -19
PERVISION OR CONTROL OVER NONPUBLIC EDU -20
CATION PROVIDERS.— 21
‘‘(A) I
N GENERAL.—Nothing in this sec-22
tion shall be construed to permit, allow, encour-23
age, or authorize any Federal or State control 24
or supervision over any aspect of any provider 25
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of a qualified educational service, including a 1
private, religious, or home education provider 2
(without regard to whether a home education 3
provider is treated as a private school or home 4
school under State law). This section shall not 5
be construed to exclude private, religious, or 6
home education providers from participation in 7
programs or services under this Act. 8
‘‘(B) N
O RELIGION-BASED DISCRIMINA -9
TION.—The Secretary shall not exclude, dis-10
criminate against, or otherwise disadvantage 11
any provider of a qualified educational service 12
with respect to programs or services under this 13
section based in whole or in part on the pro-14
vider’s religious education character or affili-15
ation, including religiously based or mission- 16
based policies or practices. 17
‘‘(3) I
MPOSITION OF ADDITIONAL REQUIRE -18
MENTS.—No Federal requirements shall apply to a 19
provider of a qualified educational service under sub-20
section (e) other than the requirements specifically 21
set forth in this section. Nothing in this section shall 22
be construed to require a provider of a qualified edu-23
cational service under subsection (e) to alter its 24
creed, practices, admissions policy, or curriculum in 25
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order to be eligible to receive payments from a Mili-1
tary Education Savings Account. 2
‘‘(4) T
REATMENT OF ASSISTANCE .—For pur-3
poses of any Federal law, assistance provided under 4
this section shall be considered assistance to the eli-5
gible military dependent child or to the parents of a 6
child on whose behalf a Military Education Savings 7
Account is established and shall not be considered 8
assistance to the provider of a qualified educational 9
service under subsection (e) that uses or receives 10
funds from a Military Education Savings Account. 11
‘‘(q) L
EGALPROCEEDINGS.— 12
‘‘(1) B
URDEN.—In any legal proceeding in 13
which a provider of a qualified educational service 14
under subsection (e) challenges a requirement im-15
posed by the Department of Education on the pro-16
vider, the Department shall have the burden of es-17
tablishing that the requirement is necessary and 18
does not impose any undue burden on the provider. 19
‘‘(2) L
IMITATION ON LIABILITY.— 20
‘‘(A) I
N GENERAL.—No liability shall arise 21
on the part of an entity described in subpara-22
graph (B) solely because such entity awards, 23
uses, or receives funds from a Military Edu-24
cation Savings Account. 25
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‘‘(B) ENTITY DESCRIBED.—The entities 1
described in this subparagraph are the fol-2
lowing: 3
‘‘(i) The Department of Education. 4
‘‘(ii) An entity that enters into a con-5
tract with the Secretary pursuant to sub-6
section (n). 7
‘‘(iii) An entity that provides a quali-8
fied educational service as described in 9
subsection (e). 10
‘‘(3) I
NTERVENTION.— 11
‘‘(A) I
N GENERAL.—Except as provided in 12
subparagraph (B), a parent of an eligible mili-13
tary dependent child or a parent of a child on 14
whose behalf a Military Education Savings Ac-15
count is established may intervene in any legal 16
proceeding in which the constitutionality of the 17
program under this section is challenged under 18
a State constitution or the United States Con-19
stitution. 20
‘‘(B) E
XCEPTION.—For purposes of judi-21
cial administration, a court may— 22
‘‘(i) limit the number of parents al-23
lowed to intervene in a proceeding under 24
subparagraph (A); or 25
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‘‘(ii) require all parents who have in-1
tervened in a proceeding under subpara-2
graph (A) to file a joint brief, except that 3
no parent shall be required to join any 4
brief filed on behalf of a State that is a de-5
fendant in the proceeding. 6
‘‘(r) A
DMINISTRATIVEEXPENSES.—The Secretary 7
may use not more than 5 percent of the funds made avail-8
able to carry out this section for the direct costs of admin-9
istering Military Education Savings Accounts. 10
‘‘(s) D
EFINITIONS.—In this section: 11
‘‘(1) The terms ‘commissioned officer’, ‘enlisted 12
member’, and ‘warrant officer’ have the meanings 13
given those terms in section 101(b) of title 10, 14
United States Code. 15
‘‘(2) The term ‘eligible military dependent child’ 16
means a child who— 17
‘‘(A) has a parent on active duty in the 18
uniformed services (as that term is defined in 19
section 101 of title 37, United States Code, ex-20
cept that such term does not include an officer 21
in the National Guard who has been activated); 22
and 23
‘‘(B) in the case of a child seeking to es-24
tablish a Military Education Savings account 25
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for the first time, was enrolled in a public ele-1
mentary school or a public secondary school for 2
not less than 100 consecutive days in the pre-3
ceding school year. 4
‘‘(3) The term ‘institution of higher education’ 5
has the meaning given the term in section 102 of the 6
Higher Education Act of 1965 (20 U.S.C. 1002).’’. 7
(b) T
ABLE OFCONTENTS.—The table of contents in 8
section 2 of the Elementary and Secondary Education Act 9
is amended by inserting after the item relating to section 10
7012 the following: 11
‘‘Sec. 7012A. Military education savings accounts.’’.
SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
12
Section 7014 of the Elementary and Secondary Edu-13
cation Act of 1965 (20 U.S.C. 7714) is amended by add-14
ing at the end the following: 15
‘‘(f) M
ILITARYEDUCATIONSAVINGSACCOUNTS.— 16
For the purpose of carrying out section 7012A— 17
‘‘(1) there are authorized to be appropriated 18
$1,200,000,000 for fiscal year 2026; and 19
‘‘(2) for each fiscal year beginning after fiscal 20
year 2026, the amount authorized to be appro-21
priated shall be the amount authorized to be appro-22
priated for the previous fiscal year increased by the 23
percentage increase in the Chained Consumer Price 24
Index for All Urban Consumers (as published by the 25
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Bureau of Labor Statistics of the Department of 1
Labor) over the period of such previous fiscal year.’’. 2
Æ
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