[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3902 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 3902

               To provide for education competitiveness.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 14, 2006

  Mr. Baucus introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
               To provide for education competitiveness.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Education Competitiveness Act of 
2006''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
                     TITLE I--EDUCATION TRUST FUND

Sec. 101. Education Trust Fund.
                   TITLE II--TEACHING COMPETITIVENESS

Sec. 201. Findings.
Sec. 202. Future Early Childhood Education Teacher Scholarships.
Sec. 203. Future Science, Technology, Engineering, and Mathematics 
                            Teacher Scholarships.
Sec. 204. Future Master Science, Technology, Engineering, and 
                            Mathematics Teacher Scholarships.
Sec. 205. Future Critical Language Teacher Scholarships.
Sec. 206. Assisting teachers in rural or underserved areas.
Sec. 207. Advanced Placement and International Baccalaureate Programs.
TITLE III--COMMITTING TO COMPETITIVENESS EARLY BY SUPPORTING UNIVERSAL 
                       VOLUNTARY PREKINDERGARTEN

Sec. 301. Findings.
Sec. 302. Universal voluntary prekindergarten by 2020.
Sec. 303. Prekindergarten through grade 16 (PK-16) collaboratives.
Sec. 304. Advancing early childhood education teacher qualifications.
   TITLE IV--ENCOURAGING ENRICHMENT ACTIVITIES BY SUPPORTING MIDDLE 
                     SCHOOLS AND SECONDARY SCHOOLS

Sec. 401. Findings.
Sec. 402. Advancing knowledge with internships and summer programs.
Sec. 403. Insight, Partnership, and Initiative Grants.
       TITLE V--COMMITTING TO EDUCATION FOR A COMPETITIVE ECONOMY

Sec. 501. Findings.
Sec. 502. Summer science and engineering institutes.
Sec. 503. Specialty science and mathematics secondary schools.
Sec. 504. Science, technology, engineering, and mathematics for 
                            tomorrow program established.
Sec. 505. Federal Pell Grants.
Sec. 506. Research grants for early career scientists.
         TITLE VI--RESTORING OUR COMMITMENT TO INDIAN EDUCATION

Sec. 601. Findings.
Sec. 602. Johnson-O'Malley grants.
Sec. 603. Appropriations for Indian higher education.
Sec. 604. Language immersion programs.
                     TITLE VII--LIFE LONG LEARNING

Sec. 701. Findings.
Sec. 702. Job skill training partnerships.
Sec. 703. Small business innovation partnerships.
Sec. 704. Job skill training authorization of appropriations.
Sec. 705. Distance learning.
                  TITLE VIII--EDUCATION TAX INCENTIVES

Sec. 800. Findings.
               Subtitle A--Benefits for Current Expenses

Sec. 801. Refundable higher education credit.
Sec. 802. Increased repayment period for higher education loans from 
                            qualified retirement plans.
Sec. 803. Increased employer provided educational assistance.
Sec. 804. Above-the-line deduction for certain expenses of elementary 
                            and secondary school teachers.
                Subtitle B--Benefits for Future Expenses

Sec. 811. Young Savers Accounts.
                 Subtitle C--Benefits for Past Expenses

Sec. 821. Increased deduction for student loan interest.
                    Subtitle D--Other Tax Incentives

Sec. 831. Extension of QZABs and expansion to financing certain 
                            postsecondary institutions.
Sec. 832. Additional standard deduction for real property taxes for 
                            nonitemizers.
Sec. 833. Extension and expansion of charitable contribution allowed 
                            for scientific property used for research 
                            and for computer technology and equipment 
                            used for educational purposes.
Sec. 834. Modification of charitable deduction for contributions of 
                            book inventory.

SEC. 3. DEFINITIONS.

    Unless otherwise specified in this Act, the terms used in this Act 
have the meanings given the terms in section 9101 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7801).

                     TITLE I--EDUCATION TRUST FUND

SEC. 101. EDUCATION TRUST FUND.

    (a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the ``Education Trust 
Fund'', consisting of such amounts as may be appropriated or credited 
to the Education Trust Fund.
    (b) Rules Regarding Transfers to and Management of Education Trust 
Fund.--For purposes of this section, rules similar to the rules of 
sections 9601 and 9602 of the Internal Revenue Code of 1986 shall 
apply.
    (c) Distribution of Amounts in Education Trust Fund.--Amounts in 
the Education Trust Fund shall be available, as provided by 
appropriation Acts, for making expenditures before October 1, 2011, to 
meet those obligations of the United States heretofore or hereafter 
incurred which are authorized under this Act.

                   TITLE II--TEACHING COMPETITIVENESS

SEC. 201. FINDINGS.

    Congress finds the following:
            (1) Teachers are responsible for educating the future 
        workforce.
            (2) There is a teacher shortage in many places across the 
        United States.
            (3) We must prepare teachers to educate tomorrow's leaders.

SEC. 202. FUTURE EARLY CHILDHOOD EDUCATION TEACHER SCHOLARSHIPS.

    (a) Purpose.--The purpose of this section is to increase the number 
and percentage of citizens of the United States who earn baccalaureate 
degrees in early childhood education by--
            (1) providing 25,000 new competitive merit-based 
        undergraduate scholarships to students who are citizens of the 
        United States, for the purpose of enabling each such student to 
        obtain a baccalaureate degree in early childhood education at 
        an institution of higher education; and
            (2) by assisting institutions of higher education in 
        expanding and improving the teacher education programs offered 
        by the institutions.
    (b) Scholarships.--
            (1) In general.--From the amounts authorized under 
        subsection (h), the Secretary shall award scholarships to 
        eligible students that shall be used by the eligible students 
        to pay for qualifying expenses at the institution of higher 
        education of the eligible students' choosing.
            (2) Future early childhood education teacher 
        scholarships.--A scholarship awarded under this subsection 
        shall be known as a ``Future Early Childhood Education Teacher 
        Scholarship''.
            (3) Award basis.--In awarding scholarships under this 
        section, the Secretary shall give preference to students who 
        agree to satisfy the teaching requirement under paragraph (5) 
        by teaching in a low- or middle-income school or a rural 
        school.
            (4) Amount; duration.--
                    (A) Amount.--A scholarship award under this 
                subsection shall be in an amount of not more than the 
                average cost of attendance, as such term is defined in 
                section 472 of the Higher Education Act of 1965 (20 
                U.S.C. 10877ll), for a student attending a teacher 
                preparation program at an institution of higher 
                education in the State, as determined by the Secretary, 
                in consultation with the State and the State 
                prekindergarten through grade 16 leadership 
                collaborative described in section 303, if applicable.
                    (B) Duration of scholarship.--A scholarship awarded 
                to an eligible student under this subsection shall be 
                for the number of years necessary for the eligible 
                student to earn a baccalaureate degree in early 
                childhood education on a full-time or part-time basis, 
                except that--
                            (i) in the case of a student pursuing a 
                        baccalaureate degree on a full-time basis, a 
                        scholarship under this subsection shall be 
                        awarded for a period of not more than 4 years; 
                        and
                            (ii) in the case of a student pursuing a 
                        baccalaureate degree on a part-time basis, a 
                        scholarship under this subsection shall be 
                        awarded for a period of not more than 6 years.
            (5) Teaching requirement.--Each eligible student awarded a 
        scholarship under this subsection shall enter into an agreement 
        with the Secretary under which the eligible student agrees--
                    (A) to teach early childhood education for a period 
                of 4 school years following receipt of the 
                baccalaureate degree for which the scholarship was 
                awarded; or
                    (B) to work in employment that improves education, 
                as determined by the Secretary pursuant to regulations, 
                for a period of 4 years following receipt of such 
                degree.
            (6) Scholarship repayment provisions.--A recipient of a 
        scholarship under this section who is determined by the 
        Secretary to violate the agreement entered into under paragraph 
        (5) shall be required to repay a pro rata amount of the 
        scholarship award received, plus interest, on a schedule and at 
        a rate of interest to be prescribed by the Secretary pursuant 
        to regulations promulgated under this subsection.
    (c) Grants.--
            (1) Program authorized.--From the amounts authorized under 
        subsection (e), the Secretary shall award grants to eligible 
        institutions of higher education to enable the eligible 
        institutions to expand and improve the teacher preparation 
        programs of the eligible institutions.
            (2) Application.--
                    (A) In general.--An eligible institution of higher 
                education desiring a grant under this subsection shall 
                submit an application to the Secretary at such time, in 
                such manner, and containing such information as the 
                Secretary may require.
                    (B) Contents.--The application described in 
                subparagraph (A) shall include a description of the 
                accountability measures that the eligible institution 
                of higher education will use to evaluate the 
                effectiveness of the teacher preparation program 
                assisted by a grant under this section.
            (3) Report.--Not later than 60 days after the last day of a 
        grant under this subsection, an eligible institution of higher 
        education receiving a grant under this subsection shall prepare 
        and submit to the Secretary a report describing the results of 
        the grant, using the accountability measures described in 
        paragraph (2)(B).
            (4) Definition of eligible institution of higher 
        education.--In this section, the term ``eligible institution of 
        higher education'' means an institution of higher education 
        that offers a teacher preparation program that satisfies the 
        requirements for teacher licensure or certification in a State.
    (d) Definitions.--In this section:
            (1) Eligible student.--The term ``eligible student'' means 
        a student who--
                    (A) is a citizen of the United States;
                    (B) is attending an institution of higher 
                education;
                    (C) is enrolled, or will be enrolled at the start 
                of the next academic year, in a course of study at an 
                institution of higher education that leads to a 
                baccalaureate degree in early childhood education;
                    (D) demonstrates aptitude, as determined by the 
                Secretary, in early childhood education; or
                    (E) for each year of a scholarship under this 
                section, demonstrates continued academic achievement 
                and progress, as determined by the Secretary, toward 
                completion of a baccalaureate degree in early childhood 
                education.
            (2) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            (3) Qualified expenses.--The term ``qualified expenses'' 
        means the tuition, books, fees, supplies, and equipment 
        required for a course of instruction leading to a baccalaureate 
        degree in early childhood education at an institution of higher 
        education of the eligible student's choosing.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
    (e) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section--
                    (A) $375,000,000 for fiscal year 2007;
                    (B) $750,000,000 for fiscal year 2008;
                    (C) $1,125,000,000 for fiscal year 2009; and
                    (D) $1,500,000,000 for each of the fiscal years 
                2010 and 2011.
            (2) Distribution.--From the amounts appropriated under 
        paragraph (1) for a fiscal year, the Secretary shall use--
                    (A) not less than 98 percent of such amounts to 
                award scholarships under subsection (b) for the fiscal 
                year; and
                    (B) not more than 2 percent of such amounts to 
                award grants under subsection (c) for the fiscal year.

SEC. 203. FUTURE SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS 
              TEACHER SCHOLARSHIPS.

    (a) Purpose.--The purpose of this section is to increase the number 
and percentage of citizens of the United States who earn baccalaureate 
degrees in science, technology, engineering, or mathematics by 
providing 25,000 new competitive merit-based undergraduate scholarships 
to students who are citizens of the United States, for the purpose of 
enabling each such student to obtain a baccalaureate degree in science, 
technology, engineering, or mathematics at an institution of higher 
education.
    (b) Scholarships.--
            (1) In general.--From the amounts authorized under 
        subsection (h), the Secretary shall award scholarships to 
        eligible students that shall be used by the eligible students 
        to pay for qualifying expenses at the institution of higher 
        education of the eligible students' choosing.
            (2) Future mathematics and science teacher scholarships.--A 
        scholarship awarded under this section shall be known as a 
        ``Future Science, Technology, Engineering, or Mathematics 
        Teacher Scholarship''.
    (c) Award Basis.--In awarding scholarships under this section, the 
Secretary shall give preference to students who agree to satisfy the 
teaching requirement under subsection (e) by teaching in a low- or 
middle-income school or a rural school.
    (d) Amount; Duration.--
            (1) Amount.--A scholarship award under this section shall 
        be in an amount of not more than the average cost of 
        attendance, as such term is defined in section 472 of the 
        Higher Education Act of 1965 (20 U.S.C. 10877ll), for a student 
        attending a baccalaureate degree program in science, 
        technology, engineering, or mathematics at an institution of 
        higher education in the State, as determined by the Secretary, 
        in consultation with the State.
            (2) Duration of scholarship.--A scholarship awarded to an 
        eligible student under this section shall be for the number of 
        years necessary for the eligible student to earn a 
        baccalaureate degree in science, technology, engineering, or 
        mathematics on a full-time or part-time basis, except that--
                    (A) in the case of a student pursuing a 
                baccalaureate degree on a full-time basis, a 
                scholarship under this section shall be awarded for a 
                period of not more than 4 years; and
                    (B) in the case of a student pursuing a 
                baccalaureate degree on a part-time basis, a 
                scholarship under this section shall be awarded for a 
                period of not more than 6 years.
    (e) Teaching Requirement.--Each eligible student awarded a 
scholarship under this section shall enter into an agreement with the 
Secretary under which the eligible student agrees--
            (1)(A) to teach science, technology, engineering, or 
        mathematics at an elementary school or secondary school for a 
        period of 4 school years following receipt of the baccalaureate 
        degree for which the scholarship was awarded; and
            (B) to meet any teacher training requirements determined 
        necessary by the State in order to carry out subparagraph (A); 
        or
            (2) to work in employment that improves education, as 
        determined by the Secretary pursuant to regulations, for a 
        period of 4 years following receipt of such degree.
    (f) Scholarship Repayment Provisions.--A recipient of a scholarship 
under this section who is determined by the Secretary to violate the 
agreement entered into under subsection (e) shall be required to repay 
a pro rata amount of the scholarship award received, plus interest, on 
a schedule and at a rate of interest to be prescribed by the Secretary 
pursuant to regulations promulgated under this section.
    (g) Definitions.--In this section:
            (1) Eligible student.--The term ``eligible student'' means 
        a student who--
                    (A) is a citizen of the United States;
                    (B) is attending an institution of higher 
                education;
                    (C) is enrolled, or will be enrolled at the start 
                of the next academic year, in a course of study at an 
                institution of higher education that leads to a 
                baccalaureate degree in science, technology, 
                engineering, or mathematics;
                    (D) demonstrates aptitude, as determined by the 
                Secretary, in science, technology, engineering, or 
                mathematics; or
                    (E) for each year of a scholarship under this 
                section, demonstrates continued academic achievement 
                and progress, as determined by the Secretary, toward 
                completion of a baccalaureate degree in science, 
                technology, engineering, or mathematics.
            (2) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            (3) Qualified expenses.--The term ``qualified expenses'' 
        means the tuition, books, fees, supplies, and equipment 
        required for a course of instruction leading to a baccalaureate 
        degree in science, technology, engineering, or mathematics at 
        an institution of higher education of the eligible student's 
        choosing.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $375,000,000 for fiscal year 2007;
            (2) $750,000,000 for fiscal year 2008;
            (3) $1,125,000,000 for fiscal year 2009; and
            (4) $1,500,000,000 for each of the fiscal years 2010 and 
        2011.

SEC. 204. FUTURE MASTER SCIENCE, TECHNOLOGY, ENGINEERING, AND 
              MATHEMATICS TEACHER SCHOLARSHIPS.

    (a) Purpose.--The purpose of this section is to increase the number 
and percentage of citizens of the United States who are teachers and 
earn a master's degree in science, technology, engineering, or 
mathematics by providing 25,000 new competitive merit-based graduate 
scholarships to students who are teachers and citizens of the United 
States, for the purpose of enabling each such student to obtain a 
master's degree in science, technology, engineering, or mathematics at 
an institution of higher education.
    (b) Scholarships.--
            (1) In general.--From the amounts authorized under 
        subsection (h), the Secretary shall award scholarships to 
        eligible students that shall be used by the eligible students 
        to pay for qualifying expenses at the institution of higher 
        education of the eligible students' choosing.
            (2) Future master mathematics and science teacher 
        scholarships.--A scholarship awarded under this section shall 
        be known as a ``Future Master Science, Technology, Engineering, 
        and Mathematics Teacher Scholarship''.
    (c) Award Basis.--In awarding scholarships under this section, the 
Secretary shall give preference to students who agree to satisfy the 
teaching requirement under subsection (e) by teaching in a low- or 
middle-income school or a rural school.
    (d) Amount; Duration.--
            (1) Amount.--A scholarship award under this section shall 
        be in an amount of not more than the average cost of 
        attendance, as such term is defined in section 472 of the 
        Higher Education Act of 1965 (20 U.S.C. 10877ll), for a student 
        attending a master's degree program in science, technology, 
        engineering, or mathematics at an institution of higher 
        education in the State, as determined by the Secretary, in 
        consultation with the State.
            (2) Duration of scholarship.--A scholarship awarded to an 
        eligible student under this section shall be for the number of 
        years necessary for the eligible student to earn a master's 
        degree in science, technology, engineering, or mathematics on a 
        full-time or part-time basis, except that--
                    (A) in the case of a student pursuing a master's 
                degree on a full-time basis, a scholarship under this 
                section shall be awarded for a period of not more than 
                2 years; and
                    (B) in the case of a student pursuing a master's 
                degree on a part-time basis, a scholarship under this 
                section shall be awarded for a period of not more than 
                4 years.
    (e) Teaching Requirement.--Each eligible student awarded a 
scholarship under this section shall enter into an agreement with the 
Secretary under which the eligible student agrees--
            (1) to teach elementary school or secondary school science, 
        technology, engineering, or mathematics for a period of 4 
        school years following receipt of the master's degree for which 
        the scholarship was awarded; or
            (2) to work in employment that improves education, as 
        determined by the Secretary pursuant to regulations, for a 
        period of 4 years following receipt of such degree.
    (f) Scholarship Repayment Provisions.--A recipient of a scholarship 
under this section who is determined by the Secretary to violate the 
agreement entered into under subparagraph (e) shall be required to 
repay a pro rata amount of the scholarship award received, plus 
interest, on a schedule and at a rate of interest to be prescribed by 
the Secretary pursuant to regulations promulgated under this section.
    (g) Definitions.--In this section:
            (1) Eligible student.--The term ``eligible student'' means 
        a student who--
                    (A) is a citizen of the United States;
                    (B) is attending an institution of higher 
                education;
                    (C) is or was an elementary school or secondary 
                school teacher;
                    (D) is enrolled, or will be enrolled at the start 
                of the next academic year, in a course of study at an 
                institution of higher education that leads to a 
                master's degree in science, technology, engineering, or 
                mathematics;
                    (E) demonstrates aptitude, as determined by the 
                Secretary, in science, technology, engineering, or 
                mathematics; or
                    (F) for each year of a scholarship under this 
                section, demonstrates continued academic achievement 
                and progress, as determined by the Secretary, toward 
                completion of a master's degree in science, technology, 
                engineering, or mathematics.
            (2) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            (3) Qualified expenses.--The term ``qualified expenses'' 
        means the tuition, books, fees, supplies, and equipment 
        required for a course of instruction leading to a master's 
        degree in science, technology, engineering, or mathematics at 
        an institution of higher education of the eligible student's 
        choosing.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $375,000,000 for fiscal year 2007;
            (2) $750,000,000 for fiscal year 2008;
            (3) $1,125,000,000 for fiscal year 2009; and
            (4) $1,500,000,000 for each of the fiscal years 2010 and 
        2011.

SEC. 205. FUTURE CRITICAL LANGUAGE TEACHER SCHOLARSHIPS.

    (a) Purpose.--The purpose of this section is to increase the number 
and percentage of citizens of the United States who earn baccalaureate 
degrees in critical languages by providing 25,000 new competitive 
merit-based undergraduate scholarships to students who are citizens of 
the United States, for the purpose of enabling each such student to 
obtain a baccalaureate degree in a critical language at an institution 
of higher education.
    (b) Scholarships.--
            (1) In general.--From the amounts authorized under 
        subsection (h), the Secretary shall award scholarships to 
        eligible students that shall be used by the eligible students 
        to pay for qualifying expenses at the institution of higher 
        education of the eligible students' choosing.
            (2) Future critical language teacher scholarship.--A 
        scholarship awarded under this section shall be known as a 
        ``Future Critical Language Teacher Scholarship''.
            (3) Language immersion.--The Secretary shall ensure that 
        language immersion is an integral part of the education for 
        which each scholarship under this section is awarded.
    (c) Award Basis.--In awarding scholarships under this section, the 
Secretary shall give preference to students who agree to satisfy the 
teaching requirement under subsection (e) by teaching in a low- or 
middle-income school or a rural school.
    (d) Amount; Duration.--
            (1) Amount.--A scholarship award under this section shall 
        be in an amount of not more than the average cost of 
        attendance, as such term is defined in section 472 of the 
        Higher Education Act of 1965 (20 U.S.C. 10877ll), for a student 
        attending a baccalaureate program in a critical foreign 
        language at an institution of higher education in the State, as 
        determined by the Secretary, in consultation with the State.
            (2) Duration of scholarship.--A scholarship awarded to an 
        eligible student under this section shall be for the number of 
        years necessary for the eligible student to earn a 
        baccalaureate degree in a critical language, except that--
                    (A) in the case of a student pursuing a 
                baccalaureate degree on a full-time basis, a 
                scholarship under this section shall be awarded for a 
                period of not more than 4 years; and
                    (B) in the case of a student pursuing a 
                baccalaureate degree on a part-time basis, a 
                scholarship under this section shall be awarded for a 
                period of not more than 6 years.
    (e) Teaching Requirement.--Each eligible student awarded a 
scholarship under this section shall enter into an agreement with the 
Secretary under which the eligible student agrees--
            (1)(A) to teach a critical language at an elementary school 
        or secondary school for a period of 4 school years following 
        receipt of the baccalaureate degree for which the scholarship 
        was awarded; and
            (B) to meet any teacher training requirements determined 
        necessary by the State in order to carry out subparagraph (A); 
        or
            (2) to work in employment that improves education, as 
        determined by the Secretary pursuant to regulations, for a 
        period of 4 years following receipt of such degree.
    (f) Scholarship Repayment Provisions.--A recipient of a scholarship 
under this section who is determined by the Secretary to violate the 
agreement entered into under subsection (e) shall be required to repay 
a pro rata amount of the scholarship award received, plus interest, on 
a schedule and at a rate of interest to be prescribed by the Secretary 
pursuant to regulations promulgated under this section.
    (g) Definitions.--In this section:
            (1) Critical language.--The term ``critical language'' 
        means Chinese, Mandarin, Arabic, Hindi, Urdu, Russian, Korean, 
        Farsi, or any other language that the Secretary of Education 
        determines is a critical language.
            (2) Eligible student.--The term ``eligible student'' means 
        a student who--
                    (A) is a citizen of the United States;
                    (B) is attending an institution of higher 
                education;
                    (C) is enrolled, or will be enrolled at the start 
                of the next academic year, in a course of study at an 
                institution of higher education that leads to a 
                baccalaureate degree in a critical language;
                    (D) demonstrates aptitude for foreign language, as 
                determined by the Secretary; or
                    (E) for each year of a scholarship under this 
                section, demonstrates continued academic achievement 
                and progress, as determined by the Secretary, toward 
                completion of a baccalaureate degree in a critical 
                language.
            (3) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            (4) Qualified expenses.--The term ``qualified expenses'' 
        means--
                    (A) the tuition, books, fees, supplies, and 
                equipment required for a course of instruction leading 
                to a baccalaureate degree in a critical language at an 
                institution of higher education of the eligible 
                student's choosing; and
                    (B) in the case of a student visiting a foreign 
                country as part of a study abroad or other academic 
                program--
                            (i) the cost of a visa or other document 
                        issued by a foreign country to permit the 
                        eligible student to visit the foreign country; 
                        and
                            (ii) the cost of medical services recommend 
                        by the Secretary of State or the Director of 
                        the Centers for Disease Control and Prevention 
                        for an individual traveling to the foreign 
                        country.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $375,000,000 for fiscal year 2007;
            (2) $750,000,000 for fiscal year 2008;
            (3) $1,125,000,000 for fiscal year 2009; and
            (4) $1,500,000,000 for each of the fiscal years 2010 and 
        2011.

SEC. 206. ASSISTING TEACHERS IN RURAL OR UNDERSERVED AREAS.

    (a) Grants to States.--A Secretary of Education is authorized to 
award grants to State educational agencies to enable the State 
educational agencies to carry out programs to encourage elementary 
school and secondary school teachers to teach in rural schools or 
underserved areas. Such programs may include--
            (1) providing cash incentives to encourage a teacher to 
        teach in a rural school or an underserved area; and
            (2) loan forgiveness programs.
    (b) Definition of Rural School.--In this section the term ``rural 
school'' means a school with a school locale code of 7 or 8, or 
otherwise designated as a rural school, as determined by the Secretary.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $750,000,000 for fiscal year 
2007 and each of the 4 succeeding fiscal years.

SEC. 207. ADVANCED PLACEMENT AND INTERNATIONAL BACCALAUREATE PROGRAMS.

    (a) Purpose.--The purposes of this section are--
            (1) to educate an additional 70,000 Advanced Placement (AP) 
        or International Baccalaureate (IB) and 80,000 pre-AP or pre-IB 
        teachers over the 5-year period beginning with 2007; and
            (2) to increase the number of students who take AP and IB 
        classes.
    (b) Grants Authorized.--
            (1) In general.--From the amounts authorized under 
        subsection (h), the Secretary shall award grants, on a 
        competitive basis, to eligible recipients to enable the 
        eligible recipients to carry out the activities authorized in 
        subsection (f).
            (2) Limitation.--An eligible recipient may not receive more 
        than 1 grant at a time under this section to undertake 
        authorized activities within the same State.
    (c) Definitions.--In this section:
            (1) Eligible recipient.--The term ``eligible recipient'' 
        means a nonprofit educational entity with expertise in Advanced 
        Placement or International Baccalaureate services.
            (2) Master teacher.--The term ``master teacher'' means a 
        teacher--
                    (A) with an advanced degree or an advanced 
                certification;
                    (B) who uses the most effective teaching methods in 
                the teacher's disciplines; and
                    (C) who has shown demonstrable results of higher 
                student achievement.
    (d) Application.--
            (1) In general.--Each eligible recipient desiring a grant 
        under this section shall submit an application to the Secretary 
        at such time, in such manner, and accompanied by such 
        information as the Secretary may require.
            (2) Contents.--Each application submitted pursuant to 
        paragraph (1) shall--
                    (A) describe the need for increased access to 
                Advanced Placement or International Baccalaureate 
                programs;
                    (B) provide for the involvement of business and 
                community organizations in the activities to be 
                assisted;
                    (C) describe the availability of matching funds 
                from non-Federal sources to assist in the activities 
                authorized; and
                    (D) demonstrate an intent to carry out activities 
                that target local educational agencies--
                            (i) for which not less than 40 percent of 
                        the children served by the local educational 
                        agency are children from low-income families; 
                        or
                            (ii) with a total of less than 600 students 
                        in average daily attendance at the schools that 
                        are served by the local educational agency and 
                        all of those schools are designated with a 
                        school locale code of 7 or 8, or otherwise 
                        designated as a rural school, as determined by 
                        the Secretary.
    (e) Priority Consideration.--The Secretary shall give priority to 
eligible recipients that submit an application under subsection (d) 
that demonstrates a pervasive need to expand or develop Advanced 
Placement or International Baccalaureate programs.
    (f) Authorized Activities.--An eligible recipient shall use the 
grant funds provided under this section for the following activities:
            (1) To identify and work with local educational agencies to 
        expand or develop Advanced Placement or International 
        Baccalaureate and pre-Advanced Placement or pre-International 
        Baccalaureate programs in schools served by the local 
        educational agencies.
            (2) To work with the local educational agencies to 
        establish Advanced Placement or International Baccalaureate 
        coordinators in each secondary school served by the local 
        educational agencies.
            (3) To ensure master teachers provide training to prepare 
        teachers to teach Advanced Placement or International 
        Baccalaureate courses, which may include--
                    (A) week-long summer institutes; and
                    (B) 2-day seminars in the teachers' disciplines 
                each year for 4 years.
            (4) To ensure master teachers provide training to prepare 
        teachers to teach pre-Advanced Placement or pre-International 
        Baccalaureate courses, which shall include at a minimum--
                    (A) a 4-day summer institute; and
                    (B) 4 days on campus each year for 4 years.
            (5) To provide stipends to teachers who satisfactorily 
        complete the Advanced Placement or International Baccalaureate 
        or pre-Advanced Placement or pre-International Baccalaureate 
        training.
            (6) To provide test preparation sessions for students 
        taking Advanced Placement or International Baccalaureate 
        classes.
            (7) To waive Advanced Placement or International 
        Baccalaureate examinations fees for students who qualify for a 
        free or reduced-price school lunch under the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1751 et seq.).
    (g) Evaluation and Accountability Plan.--
            (1) In general.--Each eligible recipient receiving a grant 
        under this section shall develop an evaluation and 
        accountability plan for activities assisted under this section 
        that includes rigorous objectives that measure the impact of 
        activities assisted under this section.
            (2) Contents.--The plan developed pursuant to paragraph (1) 
        shall include--
                    (A) the number of students served by the eligible 
                recipient who are taking pre-Advanced Placement or pre-
                International Baccalaureate courses;
                    (B) the number of students served by the eligible 
                recipient who are taking Advanced Placement or 
                International Baccalaureate courses;
                    (C) the number of students served by the eligible 
                recipient who take Advanced Placement or International 
                Baccalaureate examinations;
                    (D) the number of students served by the eligible 
                recipients who pass Advanced Placement or International 
                Baccalaureate examinations; and
                    (E) the number of teachers trained in Advanced 
                Placement or International Baccalaureate and pre-
                Advanced Placement or pre-International Baccalaureate 
                programs.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $241,000,000 for fiscal year 2007;
            (2) $341,000,000 for fiscal year 2008;
            (3) $453,000,000 for fiscal year 2009;
            (4) $596,000,000 for fiscal year 2010; and
            (5) $731,000,000 for fiscal year 2011.

TITLE III--COMMITTING TO COMPETITIVENESS EARLY BY SUPPORTING UNIVERSAL 
                       VOLUNTARY PREKINDERGARTEN

SEC. 301. FINDINGS.

    Congress finds the following:
            (1) Early education has been shown to increase high school 
        graduation rates, reduce grade repetition, and decrease the 
        need for remedial education.
            (2) Investment in quality early education has repeatedly 
        shown high returns for each dollar invested.
            (3) Children who complete early education are more likely 
        to become responsible adults, establish stable families, and 
        earn higher wages.

SEC. 302. UNIVERSAL VOLUNTARY PREKINDERGARTEN BY 2020.

    (a) Purpose.--It is the purpose of this section to double the 
number of students participating in universal voluntary prekindergarten 
programs during the 5-year period beginning with 2007, with the intent 
of providing universal voluntary prekindergarten to all children by 
2020.
    (b) Grants to States.--
            (1) In general.--The Secretary is authorized to award a 
        grant to a State educational agency to enable the State 
        educational agency to pay the Federal share of the cost of 
        establishing a universal voluntary prekindergarten program 
        within the State. The universal voluntary prekindergarten 
        program shall--
                    (A) incorporate benchmarks to evaluate the 
                effectiveness of the program;
                    (B) include prekindergarten teacher development;
                    (C) address prekindergarten teacher-to-student 
                ratios or class sizes;
                    (D) provide for a minimum of 6 hours of instruction 
                per day;
                    (E) encourage developmental education rather than 
                just child care;
                    (F) provide for progressive increases regarding the 
                qualifications of prekindergarten teachers; and
                    (G) be aligned with the standards, curricula, and 
                child expectations for kindergarten and elementary 
                school.
            (2) Matching funds.--The Federal share shall be 50 percent. 
        The non-Federal share shall be provided from non-Federal 
        sources.
    (c) State Plan.--Each State educational agency desiring a grant 
under this section shall submit to the Secretary a State plan for 
establishing a universal voluntary prekindergarten program in the State 
in accordance with this section. The plan shall--
            (1) demonstrate a need for the establishment, enhancement, 
        or expansion of a universal voluntary prekindergarten program;
            (2) describe how the State educational agency collaborates 
        with local early childhood councils and agencies;
            (3) provide an assurance that each individual hired to 
        teach in the universal voluntary prekindergarten program is 
        qualified to teach children at the prekindergarten level;
            (4) provide an assurance that the ratio of teachers or 
        child development specialists to children in the universal 
        voluntary prekindergarten program shall not exceed 1 to 10;
            (5) provide a description of how funds will be used to 
        coordinate with and enhance, but not duplicate or supplant, 
        early childhood programs serving eligible children that exist 
        in the State;
            (6) describe how the universal voluntary prekindergarten 
        program will meet the diverse needs of children, ages 3 through 
        5, in the State who are not enrolled in kindergarten, including 
        children with disabilities or whose native language is other 
        than English;
            (7) describe how the State educational agency will 
        collaborate with local schools to ensure a smooth transition 
        for participating students from early childhood education to 
        kindergarten and early elementary education;
            (8) describe the results the universal voluntary 
        prekindergarten program is intended to achieve, and what tools 
        will be used to measure the progress in attaining those 
        results; and
            (9) describe how the State educational agency will phase in 
        access to universal voluntary prekindergarten, beginning with 
        children at risk of academic failure.
    (d) Uses of Funds.--
            (1) In general.--A State educational agency that receives a 
        grant award under this part shall use funds received through 
        the grant to pay the Federal share of the costs of 
        establishing, enhancing, or expanding a universal voluntary 
        prekindergarten program for children, ages 3 through 5, who are 
        not enrolled in kindergarten, including--
                    (A) providing a program that focuses on--
                            (i) the developmental needs of 
                        participating children, including--
                                    (I) language development;
                                    (II) science;
                                    (III) creative arts;
                                    (IV) social and emotional needs;
                                    (V) children's approaches to 
                                learning; and
                                    (VI) physical and health 
                                development; and
                            (ii) using research-based approaches that 
                        build on competencies that lead to school 
                        success, particularly in language and literacy 
                        development in reading and mathematics;
                    (B) paying the costs of purchasing education 
                material, such as books, necessary to provide a high-
                quality program;
                    (C) pursuing accreditation by a national 
                accreditation body with demonstrated experience in 
                accreditation of prekindergarten programs, to be 
                obtained not later than 3 years after the date of 
                receipt of funds under this section;
                    (D) helping prekindergarten teachers pursue and 
                attain the credential and degree requirements 
                established by the State and providing a stipend for 
                attaining educational or professional development; and
                    (E) meeting the needs of working parents.
            (2) Permissible use of funds.--An agency or eligible 
        prekindergarten provider that receives a grant award under this 
        part may use funds received through the grant to pay for 
        transporting students to and from a universal voluntary 
        prekindergarten program.
    (e) Supplement Not Supplant.--Grant funds awarded under this 
section shall be used to supplement, not supplant, funds provided under 
the Head Start Act (42 U.S.C. 9831 et seq.).
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $1,400,000,000 for fiscal year 2007;
            (2) $2,800,000,000 for fiscal year 2008;
            (3) $4,200,000,000 for fiscal year 2009;
            (4) $5,600,000,000 for fiscal year 2010; and
            (5) $7,000,000,000 for fiscal year 2011.

SEC. 303. PREKINDERGARTEN THROUGH GRADE 16 (PK-16) COLLABORATIVES.

    (a) Program Authorized.--
            (1) In general.--From amounts appropriated under subsection 
        (e), the Secretary is authorized to award, on a competitive 
        basis, grants to eligible State educational agencies for the 
        purpose of enabling such agencies to establish State 
        prekindergarten through grade 16 leadership collaboratives 
        (referred to in this section as ``collaboratives'') that--
                    (A) convene stakeholders in prekindergarten through 
                grade 16 (referred to in this section as ``PK-16'') 
                education within the State and create a forum for 
                identifying and deliberating on educational issues that 
                transcend the exclusive domain of early childhood 
                education, kindergarten through grade 12 education, 
                higher education, and workforce development;
                    (B) recommend ways to align educational curricula, 
                assessments, programs, and experiences for students 
                from ages 3 to 21;
                    (C) develop a plan to expand children's access to 
                quality, voluntary prekindergarten, beginning with 
                children most at risk of academic failure, and 
                mandatory kindergarten programs; and
                    (D) design and implement integrated PK-16 data 
                systems that will allow the State to track the progress 
                of individual students from prekindergarten through 
                grade 12 and into higher education and the workforce.
            (2) Duration.--The Secretary shall award grants under this 
        section for a period of not more than 5 years.
    (b) Definitions.--In this section--
            (1) Eligible state educational agency.--The term ``eligible 
        State educational agency'' means a State educational agency 
        that provides assurances to the Secretary that the agency will 
        use grant funds under this section to form a collaborative that 
        includes as members not less than 1 representative from each of 
        the following:
                    (A) The Governor of the State, who shall play a 
                leading role in the collaborative.
                    (B) The chief executive officer of the State public 
                institution of higher education system or the executive 
                officer of the State higher education coordinating 
                board.
                    (C) The chief State educational agency school 
                officer, such as the State kindergarten through grade 
                12 superintendent.
                    (D) A representative of relevant external 
                stakeholder groups, including civil rights, business, 
                civic, teacher, parent, school administrator, and child 
                advocacy organizations.
                    (E) The State official responsible for economic 
                development, if such a position exists.
            (2) College preparatory curriculum.--The term ``college 
        preparatory curriculum'' means a rigorous core of course 
        requirements intended to prepare secondary students for high 
        level employment and higher education and shall include 4 years 
        of English, 3 years of mathematics (including algebra I, 
        algebra II, and geometry), and 3 years of laboratory science 
        (such as biology, physics, and chemistry).
    (c) Application.--
            (1) In general.--Each eligible State educational agency 
        desiring a grant under this section shall submit an application 
        to the Secretary at such time, in such manner, and accompanied 
        by such information as the Secretary may reasonably require.
            (2) Contents.--Each application submitted under paragraph 
        (1) shall--
                    (A) be informed by the opinions of the larger 
                education and business community, including parents, 
                students, school superintendents, teachers, 
                administrators, and business leaders, in the 
                development of the curriculum and skills students 
                should know and be able to perform; and
                    (B) include an assurance that the collaborative 
                will develop a plan to leverage additional State, 
                local, and other funds to support--
                            (i) expansion of access to voluntary, 
                        quality prekindergarten programs;
                            (ii) phased-in implementation of a 
                        mandatory full-day kindergarten policy; and
                            (iii) alignment of curricula, assessments, 
                        and programs for PK-16 children.
    (d) Use of Funds.--
            (1) Required activities.--An eligible State educational 
        agency receiving a grant under this section shall use grant 
        funds provided under subsection (e) to carry out all of the 
        following activities:
                    (A) Establish a collaborative and a time line for 
                accomplishing all activities that will be carried out 
                with grant funds this section.
                    (B) Analyze the State's level of PK-16 access, 
                quality, and program alignment.
                    (C) Develop a plan, where appropriate, for the 
                State to expand access to--
                            (i) voluntary, quality public and private 
                        prekindergarten programs for all children ages 
                        3 and 4; and
                            (ii) mandatory full-day kindergarten 
                        programs for all 5 year olds.
                    (D) Analyze the State's level of success in 
                preparing students for higher education and the 21st 
                century labor market by using the data produced by the 
                system described in subparagraph (E), and other 
                information as appropriate.
                    (E) Design and implement an integrated PK-16 data 
                system that will allow the State to ascertain the 
                progress of students from prekindergarten through grade 
                12 and into higher education and the workforce. The 
                data system shall--
                            (i) include--
                                    (I) prekindergarten student 
                                enrollment data;
                                    (II) student-level assessment 
                                scores;
                                    (III) the type of curriculum in 
                                which a student is enrolled;
                                    (IV) secondary school course 
                                enrollment data including data on the 
                                number of students enrolling in 
                                Advanced Placement (AP) and 
                                International Baccalaureate (IB) 
                                courses;
                                    (V) student persistence and 
                                graduation rates in secondary 
                                education; and
                                    (VI) the rates of student 
                                attendance at institutions of higher 
                                education; and the types of higher 
                                education programs pursued by students; 
                                and
                            (ii) allow the eligible State educational 
                        agency to analyze correlations between--
                                    (I) enrollment, including 
                                enrollment in a school or local 
                                educational agency identified for 
                                improvement under subsection (a) or 
                                subsection (c), respectively, of 
                                section 1116 of the Elementary and 
                                Secondary Education Act of 1965 (20 
                                U.S.C. 6316); and
                                    (II) course-taking patterns in 
                                prekindergarten through grade 12 and 
                                outcomes in subsequent grades and 
                                beyond, including--
                                            (aa) the need for remedial 
                                        work in subsequent grades;
                                            (bb) the need for remedial 
                                        work during the summer;
                                            (cc) academic suspension or 
                                        expulsion;
                                            (dd) high school 
                                        graduation;
                                            (ee) entry into higher 
                                        education;
                                            (ff) the need for 
                                        remediation coursework in 
                                        higher education;
                                            (gg) persistence in higher 
                                        education;
                                            (hh) graduation from higher 
                                        education; and
                                            (ii) entry into and 
                                        retention in the workplace.
                    (F) Supplement the salaries of prekindergarten 
                teachers.
                    (G) Create opportunities for ongoing, in-service 
                professional development for teachers within and across 
                grade levels.
                    (H) Support the provision of comprehensive health 
                and social services to children in prekindergarten who 
                are at risk of academic failure.
                    (I) Ensure that any available data does not allow 
                for individual student identification, and that all 
                data collection shall be in accordance with section 444 
                of the General Education Provisions Act (20 U.S.C. 
                1232g; commonly referred to as the Family Educational 
                Rights and Privacy Act of 1974).
                    (J) Examine the desirability of an agreement 
                between the eligible State educational agency and the 
                higher education system in the State on a common 
                assessment or assessments that--
                            (i) shall follow established guidelines to 
                        guarantee reliability and validity;
                            (ii) shall provide adequate accommodations 
                        for students who are limited English proficient 
                        and students with disabilities; and
                            (iii) may also serve as a placement 
                        examination, exit examination, or end of course 
                        examination that measures secondary students' 
                        preparedness to succeed in postsecondary, 
                        credit-bearing courses.
            (2) Permissible activities.--An eligible State educational 
        agency receiving a grant under this section may use grant funds 
        provided under subsection (e) to develop multiple forms of 
        assessment that provide information on whether children are 
        progressing toward academic and social expectations set out for 
        them in prekindergarten through grade 3.
            (3) Planning and implementation.--An eligible State 
        educational agency receiving a grant under this section may use 
        grant funds received for the first fiscal year to form the 
        collaborative and plan the activities described in paragraphs 
        (1) and (2). Grant funds received for subsequent fiscal years 
        shall be used for the implementation of the activities 
        described in paragraphs (1) and (2).
            (4) Reports.--An eligible State educational agency 
        receiving a grant under this section shall submit a biennial 
        report to the Secretary on--
                    (A) the extent of alignment and articulation across 
                the State's systems of public education for 
                prekindergarten through grade 16;
                    (B) the strengths and weaknesses of the State in 
                transitioning students from the prekindergarten through 
                grade 12 education system into higher education and the 
                labor market;
                    (C) the quality and rigor of the State's college 
                preparatory curriculum, including recommendations to 
                the State regarding the substance of the curriculum as 
                well as the accessibility of the curriculum to all 
                students in prekindergarten through grade 12; and
                    (D) the strengths and weaknesses of the State in 
                recruiting, retaining, and supporting qualified 
                teachers, including whether the State needs to recruit 
                additional teachers at the secondary level for specific 
                subjects, or particular schools or local educational 
                agencies, and recommendations for setting and achieving 
                goals in this pursuit.
            (5) Publication.--An eligible State educational agency 
        submitting a report in accordance with paragraph (1) shall 
        publish and widely disseminate the report to the public.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $400,000,000 for fiscal year 
2007, and such sums as may be necessary for each succeeding fiscal 
year.

SEC. 304. ADVANCING EARLY CHILDHOOD EDUCATION TEACHER QUALIFICATIONS.

    (a) In General.--Each State receiving federal education funds shall 
ensure that, not later 5 years after the date of enactment of this Act, 
each early childhood education teacher hired after such date in the 
State has a bachelor's degree in early childhood education.
    (b) State Plan.--Each State that receives Federal education funds 
shall submit to the Secretary of Education a plan for raising the 
qualifications of early childhood education teachers in the State who 
do not have a bachelor's degree.

   TITLE IV--ENCOURAGING ENRICHMENT ACTIVITIES BY SUPPORTING MIDDLE 
                     SCHOOLS AND SECONDARY SCHOOLS

SEC. 401. FINDINGS.

    Congress finds the following:
            (1) On school days, the hours between 3:00 pm and 6:00 pm 
        are the peak hours for juvenile crime and experimentation with 
        drugs, alcohol, cigarettes, and sexual activity.
            (2) Only 6,500,000 children in kindergarten through grade 
        12 (11 percent of the school-age population) spend time in 
        afterschool programs.
            (3) Teens who do not participate in afterschool programs 
        are nearly 3 times more likely to skip classes than teens who 
        do participate. Teens who do not participate in afterschool 
        programs are also 3 times more likely to use marijuana or other 
        drugs, and are more likely to drink alcohol, smoke cigarettes, 
        and engage in sexual activity.

SEC. 402. ADVANCING KNOWLEDGE WITH INTERNSHIPS AND SUMMER PROGRAMS.

    (a) Grants Authorized.--The Secretary of Education is authorized to 
award grants to State educational agencies to enable the State 
educational agencies to award grants to local educational agencies for 
internships and summer programs for middle and secondary school 
students.
    (b) Local Educational Agency Use of Funds.--Each local educational 
agency receiving a grant under this section shall use the grant funds 
to provide subgrants to public elementary schools, public secondary 
schools, or nonprofit organizations to enable the schools and 
organizations to carry out internships and summer programs for middle 
school and secondary school students.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $200,000,000 for fiscal year 
2007, $400,000,000 for fiscal year 2008, and $600,000,000 for each of 
the fiscal years 2009 through 2011.

SEC. 403. INSIGHT, PARTNERSHIP, AND INITIATIVE GRANTS.

    (a) Grants to States.--The Secretary is authorized to award grants 
to State educational agencies to enable the State educational agencies 
to carry out mentoring, afterschool, and enrichment programs, which may 
include college preparation programs, arts education, crime or drug 
abuse prevention programs (including methamphetamine abuse prevention), 
or vocational training.
    (b) Insight, Partnership, and Initiative Grants.--A grant awarded 
under this section shall be known as an ``Insight, Partnership, and 
Initiative Grant'' or an ``IPI Grant''.
    (c) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement, and not supplant, other Federal, 
State, or local funds that would otherwise be expended to carry out the 
activities described in this section.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $200,000,000 for fiscal year 
2007, $400,000,000 for fiscal year 2008, and $600,000,000 for each of 
the fiscal years 2009 through 2011.

       TITLE V--COMMITTING TO EDUCATION FOR A COMPETITIVE ECONOMY

SEC. 501. FINDINGS.

    Congress makes the following findings:
            (1) The youth of the United States must be qualified for 
        the jobs of the 21st century.
            (2) The Bureau of Labor Statistics predicts a significantly 
        rising number of American jobs requiring technically trained 
        workers.
            (3) United States secondary schools have consistently fared 
        poorly on international science and mathematics tests, compared 
        with their counterparts in other developed countries.

SEC. 502. SUMMER SCIENCE AND ENGINEERING INSTITUTES.

    (a) Grants Authorized.--The Secretary of Education is authorized to 
award grants to State educational agencies to enable the State 
educational agencies to award grants to elementary schools and 
secondary schools to enable the elementary schools and secondary 
schools to carry out a summer science and engineering institute for 
secondary school students.
    (b) Partnership Agreement.--In order for an elementary school or 
secondary school to be eligible to receive a grant under this section 
the school shall enter into a partnership agreement with a private 
sector research or educational entity for the purpose of carrying out 
the summer science and engineering institute assisted under this 
section.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $800,000,000 for fiscal year 
2007 and such sums as may be necessary for each of the 4 succeeding 
fiscal years.

SEC. 503. SPECIALTY SCIENCE AND MATHEMATICS SECONDARY SCHOOLS.

    (a) Grants Authorized.--The Secretary of Education is authorized to 
award grants to local educational agencies to enable the local 
educational agencies to pay the Federal share of the cost of 
establishing and operating specialty science and mathematics secondary 
schools.
    (b) Definition of Specialty Science and Mathematics Secondary 
School.--The term ``specialty science and mathematics secondary 
school'' means a secondary school that--
            (1) specializes in science and mathematics;
            (2) provides not less than 6 periods per day devoted to 
        academic coursework with a focus on science and mathematics 
        instruction; and
            (3) admits students on a competitive basis and on the basis 
        of merit.
    (c) Federal Share; Non-Federal Share.--The Federal share shall be 
50 percent. The non-Federal share shall be provided from non-Federal 
sources.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $500,000,000 for the period of 
fiscal years 2007 through 2011.

SEC. 504. SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS FOR 
              TOMORROW PROGRAM ESTABLISHED.

    (a) Definitions.--In this section:
            (1) Costs of attendance.--The term ``cost of attendance'' 
        has the meaning given the term in section 472 of the Higher 
        Education Act of 1965 (20 U.S.C. 1087ll).
            (2) Eligible student.--The term ``eligible student'' means 
        a student who--
                    (A) is a citizen of the United States;
                    (B) is enrolled full-time--
                            (i) in a program of study leading to a 
                        baccalaureate degree in science, technology, 
                        engineering, or mathematics at an institution 
                        of higher education; or
                            (ii) in the first or second year of a 
                        program of study leading to a baccalaureate 
                        degree at an institution of higher education 
                        and certifies the student's intent to pursue a 
                        baccalaureate degree in science, technology, 
                        engineering, or mathematics; and
                    (C) maintains an acceptable level of academic 
                standing at the institution of higher education.
            (3) Institution of higher education.--The term 
        ``institution of higher education'' shall have the meaning 
        given the term in section 101(a) of the Higher Education Act of 
        1965 (20 U.S.C. 1001(a)).
    (b) Payments Required.--For each academic year, the Secretary shall 
pay to each eligible student such sums as may be necessary to pay the 
costs of attendance for such student to enroll full-time in a program 
of study leading to a baccalaureate degree in science, technology, 
engineering, or mathematics at the institution of higher education of 
the eligible student's choice for the academic year.
    (c) Work Requirement.--In order to receive a payment subsection 
(b), each eligible student shall enter into an agreement with the 
Secretary under which the eligible student agrees to work in a field 
related to the student's program of study for a period of 4 school 
years following receipt of the baccalaureate degree for which the 
scholarship was awarded.
    (d) Repayment Provisions.--A recipient of a payment under this 
section who is determined by the Secretary to violate the agreement 
entered into under subparagraph (c) shall be required to repay a pro 
rata amount of the payment received, plus interest, on a schedule and 
at a rate of interest to be prescribed by the Secretary pursuant to 
regulations promulgated under this section.
    (e) Regulations.--The Secretary shall promulgate regulations under 
this section as necessary or appropriate to carry out this section, 
including regulations regarding the acceptable level of academic 
standing described in subsection (a)(2)(C).

SEC. 505. FEDERAL PELL GRANTS.

    Section 401(b)(2)(A) of the Higher Education Act of 1965 (20 U.S.C. 
1070a(b)(2)(A)) is amended to read as follows:
    ``(2)(A) The amount of the Federal Pell Grant for a student 
eligible under this part shall be $6,000 for each of the academic years 
2007-2008 through 2013-2014, less an amount equal to the amount 
determined to be the expected family contribution with respect to that 
student for that year.''.

SEC. 506. RESEARCH GRANTS FOR EARLY CAREER SCIENTISTS.

    (a) In General.--The Secretary of Education is authorized to award 
600 grants to individual scientists who are less than 40 years old in 
order to continue and expand the research conducted by the scientists 
and to support the scientists in the early stages of their careers.
    (b) Amount and Duration of Grants.--A grant awarded under this 
section shall be in the amount of $32,000 and shall be distributed to 
the recipient in installments over a 2-year period.
    (c) Preference.--In awarding grants under subsection (a), the 
Secretary shall give a preference to scientists who are representatives 
of populations underrepresented in the scientific fields.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section, $19,200,000 for the period of 
fiscal years 2007 through 2011.

         TITLE VI--RESTORING OUR COMMITMENT TO INDIAN EDUCATION

SEC. 601. FINDINGS.

    Congress makes the following findings:
            (1) Indian education in the United States is chronically 
        and systemically under-funded.
            (2) Globally competitive tribally controlled colleges and 
        universities are critical to the advancement of Native 
        Americans in the United States.
            (3) Native language and culture education is a critical 
        component of Indian school curricula.

SEC. 602. JOHNSON-O'MALLEY GRANTS.

    There are authorized to be appropriated, and there are 
appropriated, out of any money in the Treasury not otherwise 
appropriated, to carry out section 1 of the Act of April 16, 1934 (48 
Stat. 596, Chapter 147; 25 U.S.C. 452) (commonly known as the Johnson-
O'Malley Act) the following amounts:
            (1) $24,000,000 for fiscal year 2007.
            (2) $26,000,000 for fiscal year 2008.
            (3) $28,000,000 for fiscal year 2009.
            (4) $30,000,000 for fiscal year 2010.
            (5) $33,000,000 for fiscal year 2011.

SEC. 603. APPROPRIATIONS FOR INDIAN HIGHER EDUCATION.

    (a) Tribally Controlled College or University Assistance Act of 
1978.--The Tribally Controlled College or University Assistance Act of 
1978 (25 U.S.C. 1801 et seq.) is amended--
            (1) in section 108(a)(2) (25 U.S.C. 1808(a)(2)), by 
        striking ``$6,000'' and inserting ``$7,000''; and
            (2) in section 110(a) (25 U.S.C. 1810(a)), by striking 
        paragraph (2) and inserting the following:
    ``(2) There is authorized to be appropriated, and there is 
appropriated, out of any money in the Treasury not otherwise 
appropriated, to carry out section 107 the following amounts:
            ``(A) $65,000,000 for fiscal year 2007.
            ``(B) $71,000,000 for fiscal year 2008.
            ``(C) $78,000,000 for fiscal year 2009.
            ``(D) $85,000,000 for fiscal year 2010.
            ``(E) $93,000,000 for fiscal year 2011.''.
    (b) Navajo Community College Act.--The matter preceding 
subparagraph (A) of section 5(b)(1) of the Navajo Community College Act 
(25 U.S.C. 640c-1(b)(1) et seq.) is amended to read as follows:
            ``(2)(A) There are authorized to be appropriated, and there 
        are appropriated, out of any money in the Treasury not 
        otherwise appropriated, for grants to the Navajo Community 
        College $17,700,000 for fiscal year 2007, $19,500,000 for 
        fiscal year 2008, $21,500,000 for fiscal year 2009, $23,700,000 
        for fiscal year 2010, and $26,100,000 for fiscal year 2011, to 
        pay expenses incurred for--''.

SEC. 604. LANGUAGE IMMERSION PROGRAMS.

    Subsection (e) of section 816 of the Native American Programs Act 
of 1974 (42 U.S.C. 2992d) is amended to read as follows:
    ``(e)(1) There are authorized to be appropriated, and there are 
appropriated, out of any money in the Treasury not otherwise 
appropriated, to carry out section 803C--
            ``(A) $51,000,000 for fiscal year 2007, of which $6,000,000 
        shall be available for language immersion programs under such 
        section;
            ``(B) $56,000,000 for fiscal year 2008, of which $7,000,000 
        shall be available for language immersion programs under such 
        section;
            ``(C) $62,000,000 for fiscal year 2009, of which $8,000,000 
        shall be available for language immersion programs under such 
        section;
            ``(D) $68,000,000 for fiscal year 2010, of which $9,000,000 
        shall be available for language immersion programs under such 
        section; and
            ``(E) $79,000,000 for fiscal year 2011, of which 
        $11,000,000 shall be available for language immersion programs 
        under such section.
    ``(2) In this subsection the term `language immersion program' 
means a site-based educational program that provides a complete 
education through a Native American language with the specific goal of 
strengthening, revitalizing, or reestablishing a Native American 
language and culture of daily life.''.

                     TITLE VII--LIFE LONG LEARNING

SEC. 701. FINDINGS.

    Congress makes the following findings:
            (1) Education is important to every American at all stages 
        of life.
            (2) Today's economy requires workers to continue to improve 
        their skills, knowledge, and abilities.

SEC. 702. JOB SKILL TRAINING PARTNERSHIPS.

    Title III of the Higher Education Act of 1965 (20 U.S.C. 1051 et 
seq.) is amended--
            (1) by redesignating part F as part G; and
            (2) by inserting after part E the following:

                     ``PART VI--JOB SKILL TRAINING

     ``Subpart A--Job Skill Training in High-Growth Occupations or 
                               Industries

``SEC. 371. JOB SKILL TRAINING IN HIGH-GROWTH OCCUPATIONS OR 
              INDUSTRIES.

    ``(a) Grants Authorized.--The Secretary is authorized to award 
grants, on a competitive basis, to eligible partnerships to enable the 
eligible partnerships to provide relevant job skill training in high-
growth industries or occupations.
    ``(b) Definitions.--In this section:
            ``(1) Eligible partnership.--The term `eligible 
        partnership' means a partnership--
                    ``(A) between an institution of higher education 
                and a local board (as such term is defined in section 
                101 of the Workforce Investment Act of 1998); or
                    ``(B) if an institution of higher education is 
                located within a State that does not operate local 
                boards, between the institution of higher education and 
                a State board (as such term is defined in section 101 
                of the Workforce Investment Act of 1998).
            ``(2) Nontraditional student.--The term `nontraditional 
        student' means a student who--
                    ``(A) is independent, as defined in section 480(d);
                    ``(B) attends an institution of higher education--
                            ``(i) on less than a full-time basis;
                            ``(ii) via evening, weekend, modular, or 
                        compressed courses; or
                            ``(iii) via distance learning methods; or
                    ``(C) has delayed enrollment at an institution of 
                higher education.
            ``(3) Institution of higher education.--The term 
        `institution of higher education' means an institution of 
        higher education, as defined in section 101(b), that offers a 
        1- or 2-year program of study leading to a degree or 
        certificate.
    ``(c) Application.--
            ``(1) In general.--Each eligible partnership that desires a 
        grant under this section shall submit an application to the 
        Secretary at such time, in such manner, and accompanied by such 
        additional information as the Secretary may require.
            ``(2) Contents.--Each application submitted under paragraph 
        (1) shall include a description of--
                    ``(A) how the eligible partnership, through the 
                institution of higher education, will provide relevant 
                job skill training for students to enter high-growth 
                occupations or industries;
                    ``(B) local high-growth occupations or industries; 
                and
                    ``(C) the need for qualified workers to meet the 
                local demand of high-growth occupations or industries.
    ``(d) Award Basis.--In awarding grants under this section, the 
Secretary shall--
            ``(1) ensure an equitable distribution of grant funds under 
        this section among urban and rural areas of the United States; 
        and
            ``(2) take into consideration the capability of the 
        institution of higher education--
                    ``(A) to offer relevant, high quality instruction 
                and job skill training for students entering a high-
                growth occupation or industry;
                    ``(B) to involve the local business community and 
                to place graduates in the community in employment in 
                high-growth occupations or industries;
                    ``(C) to assist students in obtaining loans under 
                section 428L, if appropriate, or other forms of student 
                financial assistance;
                    ``(D) to serve nontraditional or low-income 
                students, or adult or displaced workers; and
                    ``(E) to serve students from rural or remote 
                communities.
    ``(e) Use of Funds.--Grant funds provided under this section may be 
used--
            ``(1) to expand or create academic programs or programs of 
        training that provide relevant job skill training for high-
        growth occupations or industries;
            ``(2) to purchase equipment which will facilitate the 
        development of academic programs or programs of training that 
        provide training for high-growth occupations or industries;
            ``(3) to support outreach efforts that enable students to 
        attend institutions of higher education with academic programs 
        or programs of training focused on high-growth occupations or 
        industries;
            ``(4) to expand or create programs for distance, evening, 
        weekend, modular, or compressed learning opportunities that 
        provide relevant job skill training in high-growth occupations 
        or industries;
            ``(5) to build partnerships with local businesses in high-
        growth occupations or industries; and
            ``(6) for other uses that the Secretary determines to be 
        consistent with the intent of this section.
    ``(f) Requirements.--
            ``(1) Fiscal agent.--For the purpose of this section, the 
        institution of higher education in an eligible partnership 
        shall serve as the fiscal agent and grant recipient for the 
        eligible partnership.
            ``(2) Duration.--The Secretary shall award grants under 
        this section for a 1-year period.
            ``(3) Availability of grant funds.--Grant funds awarded 
        under this section shall be available for not more than 18 
        months unless, at the Secretary's discretion, the Secretary 
        extends the availability of the grant funds.
            ``(4) Supplement, not supplant.--Funds made available under 
        this section shall be used to supplement and not supplant other 
        Federal, State, and local funds available to the eligible 
        partnership for carrying out the activities described in 
        subsection (e).''.

SEC. 703. SMALL BUSINESS INNOVATION PARTNERSHIPS.

    Part F of title III of the Higher Education Act (as amended by 
section 702) is further amended by adding at the end the following:

       ``Subpart B--Small Business Innovation Partnership Grants

``SEC. 375. SMALL BUSINESS INNOVATION PARTNERSHIP GRANTS.

    ``(a) Grants Authorized.--The Secretary is authorized to award 
grants to eligible partnerships to enable the eligible partnerships to 
provide training and relevant job skills to small business owners or 
operators for the purpose of facilitating small business development in 
the communities served by the eligible partnerships.
    ``(b) Definition of Eligible Partnership.--In this section the term 
`eligible partnership' means a partnership between or among an 
institution of higher education and 1 or more entities that the 
Secretary, in consultation with the Administrator of the Small Business 
Administration, identifies as facilitating small business development, 
which may include--
            ``(1) a community development financial institution;
            ``(2) a small business development center; or
            ``(3) a microenterprise lending institution.
    ``(c) Award Basis.--The Secretary shall award grants under this 
section on the basis of--
            ``(1) the ability of an eligible partnership to facilitate 
        small business development; and
            ``(2)(A) the ability of an eligible partnership to serve a 
        rural community;
            ``(B) the ability of an eligible partnership to serve a 
        low-income population; or
            ``(C) other criteria developed by the Secretary in 
        consultation with the Administrator of the Small Business 
        Administration.
    ``(d) Limitation.--Of the funds appropriated under section 378 for 
this part for a fiscal year, the Secretary is authorized to use not 
more than $15,000,000 of such funds to carry out this section.''.

SEC. 704. JOB SKILL TRAINING AUTHORIZATION OF APPROPRIATIONS.

    Part F of title III of the Higher Education Act (as amended by 
section 703) is further amended by adding at the end the following:

                 ``Subpart C--Administrative Provisions

``SEC. 378. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$100,000,000 for fiscal year 2007 and such sums as may be necessary for 
each of the 4 succeeding fiscal years.''.

SEC. 705. DISTANCE LEARNING.

    (a) Grants Authorized.--The Secretary is authorized to award grants 
to State educational agencies and local educational agencies to enable 
such educational agencies to--
            (1) establish, develop, expand, and supplement programs for 
        distance learning through the Internet; and
            (2) acquire the technology for such programs.
    (b) Application.--A State educational agency or local educational 
agency desiring a grant under this section shall submit an application 
to the Secretary at such time, in such manner, and containing such 
information as the Secretary may require.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $100,000,000 for each of the 
fiscal years 2007 through 2011.

                  TITLE VIII--EDUCATION TAX INCENTIVES

SEC. 800. FINDINGS.

    Congress finds the following:
            (1) The Department of Labor statistics show that 90 percent 
        of the fastest growing jobs require some post-secondary 
        education. According to the Bureau of Labor Statistics, jobs 
        requiring science, engineering, or technical training will 
        increase 24 percent between 2004 and 2014 to 6,300,000.
            (2) An Organization for Economic Co-operation and 
        Development study has shown that college graduates in the 
        United States earn nearly twice as much as workers with just a 
        secondary school diploma, one of the highest rates in the 
        world.
            (3) Reports have shown that for American families with the 
        lowest income, if a student from such a family were to attend a 
        public 4-year institution of higher education in the United 
        States, the student's net cost to attend would represent a high 
        percentage of the family's income annually.
            (4) Fifty percent of all undergraduates received some 
        Federal financial aid in the 2003-2004 academic year, up from 
        40 percent in the 2000-2001 academic year.
            (5) Tax incentives support higher education and help 
        families make education more affordable. The way families and 
        students receive these incentives is complex, making it 
        difficult to determine what the right choices are.
            (6) To support K-16 education, more options are needed for 
        families to use savings penalty-free for college expenses.

               Subtitle A--Benefits for Current Expenses

SEC. 801. REFUNDABLE HIGHER EDUCATION CREDIT.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 36 as section 37 and by inserting 
after section 35 the following new section:

``SEC. 36. HIGHER EDUCATION CREDIT.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this subtitle 
for the taxable year an amount equal to the qualified tuition and 
related expenses paid by the taxpayer during the taxable year.
    ``(b) Limitations.--
            ``(1) Per student limitation.--The amount of the credit 
        allowable under subsection (a) with respect to any student 
        shall not exceed so much of the qualified tuition and related 
        expenses paid by the taxpayer during the taxable year (for 
        education furnished to the student during any academic period 
        beginning in such taxable year) as does not exceed $2,000.
            ``(2) Limitation based on modified adjusted gross income.--
                    ``(A) In general.--The amount which would (but for 
                this paragraph) be taken into account under subsection 
                (a) for the taxable year shall be reduced (but not 
                below zero) by the amount determined under subparagraph 
                (B).
                    ``(B) Amount of reduction.--The amount determined 
                under this subparagraph is the amount which bears the 
                same ratio to the amount which would be so taken into 
                account as--
                            ``(i) the excess of--
                                    ``(I) the taxpayer's modified 
                                adjusted gross income for such taxable 
                                year, over
                                    ``(II) $40,000 ($80,000 in the case 
                                of a joint return), bears to
                            ``(ii) $10,000 ($20,000 in the case of a 
                        joint return).
                    ``(C) Modified adjusted gross income.--The term 
                `modified adjusted gross income' means the adjusted 
                gross income of the taxpayer for the taxable year 
                increased by any amount excluded from gross income 
                under section 911, 931, or 933.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified tuition and related expenses.--
                    ``(A) In general.--The term `qualified tuition and 
                related expenses' means--
                            ``(i) tuition, fees, books, supplies, and 
                        equipment required for the enrollment or 
                        attendance of--
                                    ``(I) the taxpayer,
                                    ``(II) the taxpayer's spouse, or
                                    ``(III) any dependent of the 
                                taxpayer with respect to whom the 
                                taxpayer is allowed a deduction under 
                                section 151,
                        at an eligible educational institution for 
                        courses of instruction of such individual at 
                        such institution, and
                            ``(ii) expenses for special needs services 
                        in the case of an individual with special needs 
                        which are incurred in connection with such 
                        enrollment or attendance.
                    ``(B) Exceptions.--Except as otherwise provided in 
                this section, such term does not include--
                            ``(i) expenses with respect to any course 
                        or other education involving sports, games, or 
                        hobbies, unless such course or other education 
                        is part of the individual's degree program, and
                            ``(ii) student activity fees, athletic 
                        fees, insurance expenses, or other expenses 
                        unrelated to an individual's academic course of 
                        instruction.
            ``(2) Eligible educational institution.--The term `eligible 
        educational institution' means an institution--
                    ``(A) which is described in section 481 of the 
                Higher Education Act of 1965 (20 U.S.C. 1088), as in 
                effect on the date of the enactment of the Taxpayer 
                Relief Act of 1997, and
                    ``(B) which is eligible to participate in a program 
                under title IV of such Act.
    ``(d) Special Rules.--
            ``(1) Identification requirement.--No credit shall be 
        allowed under subsection (a) to a taxpayer with respect to the 
        qualified tuition and related expenses of an individual unless 
        the taxpayer includes the name and taxpayer identification 
        number of such individual on the return of tax for the taxable 
        year.
            ``(2) Adjustment for certain scholarships, etc.--The amount 
        of qualified tuition and related expenses otherwise taken into 
        account under subsection (a) with respect to an individual for 
        an academic period shall be reduced (before the application of 
        subsection (b)) by the sum of any amounts paid for the benefit 
        of such individual which are allocable to such period as--
                    ``(A) a qualified scholarship which is excludable 
                from gross income under section 117,
                    ``(B) an educational assistance allowance under 
                chapter 30, 31, 32, 34, or 35 of title 38, United 
                States Code, or under chapter 1606 of title 10, United 
                States Code, and
                    ``(C) a payment (other than a gift, bequest, 
                devise, or inheritance within the meaning of section 
                102(a)) for such individual's educational expenses, or 
                attributable to such individual's enrollment at an 
                eligible educational institution, which is excludable 
                from gross income under any law of the United States.
            ``(3) Treatment of expenses paid by dependent.--If a 
        deduction under section 151 with respect to an individual is 
        allowed to another taxpayer for a taxable year beginning in the 
        calendar year in which such individual's taxable year begins--
                    ``(A) no credit shall be allowed under subsection 
                (a) to such individual for such individual's taxable 
                year, and
                    ``(B) qualified tuition and related expenses paid 
                by such individual during such individual's taxable 
                year shall be treated for purposes of this section as 
                paid by such other taxpayer.
            ``(4) Treatment of certain prepayments.--If qualified 
        tuition and related expenses are paid by the taxpayer during a 
        taxable year for an academic period which begins during the 
        first 3 months following such taxable year, such academic 
        period shall be treated for purposes of this section as 
        beginning during such taxable year.
            ``(5) Denial of double benefit.--No credit shall be allowed 
        under this section for any expense for which a deduction is 
        allowed under any other provision of this chapter.
            ``(6) No credit for married individuals filing separate 
        returns.--If the taxpayer is a married individual (within the 
        meaning of section 7703), this section shall apply only if the 
        taxpayer and the taxpayer's spouse file a joint return for the 
        taxable year.
            ``(7) Nonresident aliens.--If the taxpayer is a nonresident 
        alien individual for any portion of the taxable year, this 
        section shall apply only if such individual is treated as a 
        resident alien of the United States for purposes of this 
        chapter by reason of an election under subsection (g) or (h) of 
        section 6013.
    ``(e) Inflation Adjustments.--
            ``(1) Dollar limitation on amount of credit.--
                    ``(A) In general.--In the case of a taxable year 
                beginning after 2007, the $2,000 amount under 
                subsection (b)(1) shall be increased by an amount equal 
                to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2006' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--If any amount as adjusted under 
                subparagraph (A) is not a multiple of $100, such amount 
                shall be rounded to the next lowest multiple of $100.
            ``(2) Income limits.--
                    ``(A) In general.--In the case of a taxable year 
                beginning after 2001, the $40,000 and $80,000 amounts 
                in subsection (b)(2) shall each be increased by an 
                amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2000' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--If any amount as adjusted under 
                subparagraph (A) is not a multiple of $1,000, such 
                amount shall be rounded to the next lowest multiple of 
                $1,000.
    ``(f) Regulations.--The Secretary may prescribe such regulations as 
may be necessary or appropriate to carry out this section, including 
regulations providing for a recapture of the credit allowed under this 
section in cases where there is a refund in a subsequent taxable year 
of any amount which was taken into account in determining the amount of 
such credit.''.
    (b) Conforming Amendments.--
            (1) Repeal of hope and lifetime learning credits.--
                    (A) Subpart A of part IV of subchapter A of chapter 
                1 of the Internal Revenue Code of 1986 is amended by 
                striking section 25A.
                    (B) Subparagraph (B) of section 72(t)(7) of such 
                Code is amended by striking ``section 25A(g)(2)'' and 
                inserting ``section 36(e)(2)''.
                    (C) Subparagraph (A) of section 135(d)(2) of such 
                Code is amended by striking ``section 25A'' and 
                inserting ``section 36''.
                    (D) Section 221(d) of such Code is amended--
                            (i) by striking ``section 25A(g)(2)'' in 
                        paragraph (2)(B) and inserting ``section 
                        36(e)(2)'',
                            (ii) by striking ``section 25A(f)(2)'' in 
                        paragraph (2)(B) and inserting ``section 
                        36(d)(2)'', and
                            (iii) by striking ``section 25A(b)(3)'' in 
                        paragraph (3) and inserting ``section 
                        36(d)(1)(B)(iii)''.
                    (E) Section 222 of such Code is amended--
                            (i) by striking ``section 25A'' in 
                        subsection (c)(2)(A) and inserting ``section 
                        36'',
                            (ii) by striking ``section 25A(f)'' in 
                        subsection (d)(1) and inserting ``section 
                        36(d)(1)'', and
                            (iii) by striking ``section 25A(g)(2)'' in 
                        subsection (d)(1) and inserting ``section 
                        36(e)(2)''.
                    (F) Section 529 of such Code is amended--
                            (i) by striking ``section 25A(g)(2)'' in 
                        subclause (I) of subsection (c)(3)(B)(v) and 
                        inserting ``section 36(e)(2)'',
                            (ii) by striking ``section 25A'' in 
                        subclause (II) of subsection (c)(3)(B)(v) and 
                        inserting ``section 36'', and
                            (iii) by striking ``section 25A(b)(3)'' in 
                        clause (i) of subsection (e)(3)(B) and 
                        inserting ``section 36(d)(1)(B)(iii)''.
                    (G) Section 530 of such Code is amended--
                            (i) by striking ``section 25A(g)(2)'' in 
                        subclause (I) of subsection (d)(2)(C)(i) and 
                        inserting ``section 36(e)(2)'',
                            (ii) by striking ``section 25A'' in 
                        subclause (II) of subsection (d)(2)(C)(i) and 
                        inserting ``section 36'', and
                            (iii) by striking ``section 25A(g)(2)'' in 
                        clause (iii) of subsection (d)(4)(B) and 
                        inserting ``section 36(e)(2)''.
                    (H) Subsection (e) of section 6050S of such Code is 
                amended by striking ``section 25A'' and inserting 
                ``section 36''.
                    (I) Subparagraph (J) of section 6213(g)(2) of such 
                Code is amended by striking ``section 25A(g)(1)'' and 
                inserting ``section 36(e)(1)''.
                    (J) The table of sections for subpart A of part IV 
                of subchapter A of chapter 1 of such Code is amended by 
                striking the item relating to section 25A.
            (2) Refundability of credit.--Paragraph (2) of section 
        1324(b) of title 31, United States Code, is amended by 
        inserting before the period ``or enacted by the Education 
        Competitiveness Act of 2006''.
    (c) Clerical Amendment.--The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of such Code is amended by 
striking the item relating to section 36 and inserting the following:

``Sec. 36. Higher education credit.
``Sec. 37. Overpayments of tax.''.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to expenses paid 
        after December 31, 2006, for education furnished in academic 
        periods beginning after such date.
            (2) Exception.--The amendment made by subsection (b)(2) 
        shall take effect on the date of the enactment of this Act.

SEC. 802. INCREASED REPAYMENT PERIOD FOR HIGHER EDUCATION LOANS FROM 
              QUALIFIED RETIREMENT PLANS.

    (a) In General.--Section 72(p)(2)(B) of the Internal Revenue Code 
of 1986 (relating to requirement that loan be repayable within 5 years) 
is amended by adding at the end the following new clause:
                            ``(iii) Exception for education loans.--In 
                        the case of any loan used for qualified higher 
                        education expenses (as defined in subsection 
                        (t)(7)(A), clause (i) shall by applied by 
                        substituting `10 years' for `5 years'.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to loans made after the date of the enactment of this Act.

SEC. 803. INCREASED EMPLOYER PROVIDED EDUCATIONAL ASSISTANCE.

    (a) In General.--Paragraph (2) of section 127(a) of the Internal 
Revenue Code of 1986 (relating to exclusion from gross income) is 
amended to read as follows:
            ``(2) Maximum exclusion.--
                    ``(A) In general.--If, but for this paragraph, this 
                section would exclude from gross income more than 
                $7,000 of educational assistance furnished to an 
                individual during a calendar year, this section shall 
                apply only to the first $7,000 of such assistance so 
                furnished.
                    ``(B) Inflation adjustment.--
                            ``(i) In general.--In the case of a 
                        calendar year beginning after 2007, the $7,000 
                        amount in subparagraph (A) shall be increased 
                        by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year, 
                                determined by substituting `calendar 
                                year 2006' for `calendar year 1992' in 
                                subparagraph (B) thereof.
                            ``(ii) Rounding.--If any amount as adjusted 
                        under clause (i) is not a multiple of $100, 
                        such amount shall be rounded to the next lowest 
                        multiple of $100.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2006.

SEC. 804. ABOVE-THE-LINE DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY 
              AND SECONDARY SCHOOL TEACHERS.

    (a) In General.--Subparagraph (D) of section 62(a)(2) of the 
Internal Revenue Code of 1986 (relating to certain trade and business 
deductions of employees) is amended by striking ``In the case'' and all 
that follows through ``$250,'' and insert the following:
                            ``(i) In general.--The deductions allowed 
                        by section 162 which consist of expenses, not 
                        in excess of $500,''.
    (b) Inflation Adjustment.--Section 62(a)(2)(D) of such Code, as 
amended by subsection(a), is amended by adding at the end the following 
new clause:
                            ``(ii) Inflation adjustment.--In the case 
                        of a taxable year beginning after 2007, the 
                        $500 amount under clause (i) shall be increased 
                        by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year in which 
                                the taxable year begins, determined by 
                                substituting `calendar year 2006' for 
                                `calendar year 1992' in subparagraph 
                                (B) thereof.
                        If any amount as adjusted under this clause is 
                        not a multiple of $10, such amount shall be 
                        rounded to the next lowest multiple of $10.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.

                Subtitle B--Benefits for Future Expenses

SEC. 811. YOUNG SAVERS ACCOUNTS.

    (a) In General.--Section 408A of the Internal Revenue Code of 1986 
(relating to Roth IRAs) is amended by adding at the end the following 
new subsection:
    ``(g) Young Savers Accounts.--
            ``(1) In general.--Except as provided in this subsection, a 
        young savers account shall be treated in the same manner as a 
        Roth IRA.
            ``(2) Young savers account.--For purposes of this 
        subsection, the term `young savers account' means, with respect 
        to any taxable year, a Roth IRA which is established and 
        maintained on behalf of an individual who has not attained the 
        age of 22 before the close of the taxable year.
            ``(3) Contribution limits.--In the case of any 
        contributions for any taxable year to 1 or more young savers 
        accounts established and maintained on behalf of an individual, 
        each of the following contribution limits for the taxable year 
        shall be increased as follows:
                    ``(A) The contribution limit applicable to the 
                individual under subsection (c)(2) shall be increased 
                by the aggregate amount of qualified parental 
                contributions to such accounts for the taxable year.
                    ``(B) The contribution limits applicable to the 
                young savers accounts under subsection (a)(1) or 
                (b)(2)(B) of section 408, whichever is appropriate, 
                shall be increased by the dollar amount in effect under 
                section 219(b)(1)(A) for the taxable year.
            ``(4) Qualified parental contributions.--For purposes of 
        this subsection--
                    ``(A) In general.--The term `qualified parental 
                contribution' means, with respect to any taxable year, 
                a contribution by an individual to a young savers 
                account established and maintained on behalf of an 
                individual who--
                            ``(i) is the child of the individual making 
                        the contribution, and
                            ``(ii) with respect to whom a deduction for 
                        an additional exemption is allowable for the 
                        taxable year under section 151(c) to the 
                        individual making the contribution.
                    ``(B) Dollar limitations.--
                            ``(i) In general.--The aggregate amount of 
                        qualified parental contributions which may be 
                        made for any taxable year on behalf of an 
                        individual shall not exceed the dollar amount 
                        in effect under section 219(b)(1)(A) for the 
                        taxable year.
                            ``(ii) Limit on each parent.--The aggregate 
                        amount of qualified parental contributions 
                        which an individual may make for any taxable 
                        year on behalf of 1 or more of the individual's 
                        children shall not exceed the contribution 
                        limit applicable to the individual under 
                        subsection (c)(2) for the taxable year, reduced 
                        by any contributions made by or on behalf of 
                        the individual to any Roth IRA established and 
                        maintained on behalf of the individual.
            ``(5) Qualified distributions for higher education 
        expenses.--
                    ``(A) In general.--In the case of any young savers 
                account, for purposes of subsection (d), the term 
                `qualified distribution' includes any qualified higher 
                education distribution.
                    ``(B) Qualified higher education distribution.--For 
                purposes of subparagraph (A), the term `qualified 
                higher education distribution' means any distribution 
                to which subparagraph (E) of section 72(t)(2) 
                applies.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.

                 Subtitle C--Benefits for Past Expenses

SEC. 821. INCREASED DEDUCTION FOR STUDENT LOAN INTEREST.

    (a) Increase in Deduction Amount.--Paragraph (1) of section 221(b) 
of the Internal Revenue Code of 1986 (relating to maximum deduction) is 
amended to read as follows:
            ``(1) In general.--Except as provided in paragraph (2), the 
        deduction allowed by subsection (a) for the taxable year shall 
        not exceed $3,000.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2006.

                    Subtitle D--Other Tax Incentives

SEC. 831. EXTENSION OF QZABS AND EXPANSION TO FINANCING CERTAIN 
              POSTSECONDARY INSTITUTIONS.

    (a) Extension.--Section 1397E(e)(1) of the Internal Revenue Code of 
1986 (relating to national limitation) is amended by striking ``and 
2005'' and inserting ``2005, 2006, and 2007''.
    (b) Expansion.--Section 1397E(d)(4) of the Internal Revenue Code of 
1986 (defining qualified zone academy) is amended--
            (1) by striking ``The term'' in subparagraph (A) and 
        inserting ``Except as provided in subparagraph (C), the term'', 
        and
            (2) by adding at the end of the following new subparagraph:
                    ``(C) Tribally controlled college or university.--
                            ``(i) In general.--The term `qualified zone 
                        academy' means any tribally controlled college 
                        or university if--
                                    ``(I) such college or university is 
                                designed, in cooperation with business, 
                                to better prepare students for the 
                                rigors of the increasingly complex 
                                workforce, and
                                    ``(II) has an endowment of not more 
                                than $25,000,000.
                            ``(ii) Tribally controlled college or 
                        university.--The term `tribally controlled 
                        college or university' has the meaning given 
                        such term by section 2(a)(4) of the Tribally 
                        Controlled College or University Assistance Act 
                        of 1978 (25 U.S.C. 1801(a)(4)).
                            ``(iii) Role of indian tribe.--For purposes 
                        of this section, in applying paragraphs (1)(A), 
                        (1)(C)(iii), and (2), `Indian tribe' shall be 
                        substituted for `eligible local education 
                        agency' each place it appears.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to bonds issued after December 31, 2005.

SEC. 832. ADDITIONAL STANDARD DEDUCTION FOR REAL PROPERTY TAXES FOR 
              NONITEMIZERS.

    (a) In General.--Section 63(c)(1) (defining standard deduction) is 
amended by striking ``and'' at the end of subparagraph (A), by striking 
the period at the end of subparagraph (B) and inserting ``, and'', and 
by adding at the end the following new subparagraph:
                    ``(C) the real property tax deduction.''.
    (b) Definition.--Section 63(c) is amended by adding at the end the 
following new paragraph:
            ``(8) Real property tax deduction.--For purposes of 
        paragraph (1), the real property tax deduction is so much of 
        the amount of State and local real property taxes (within the 
        meaning of section 164) paid or accrued by the taxpayer during 
        the taxable year which do not exceed $500 ($1,000 in the case 
        of a joint return).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.

SEC. 833. EXTENSION AND EXPANSION OF CHARITABLE CONTRIBUTION ALLOWED 
              FOR SCIENTIFIC PROPERTY USED FOR RESEARCH AND FOR 
              COMPUTER TECHNOLOGY AND EQUIPMENT USED FOR EDUCATIONAL 
              PURPOSES.

    (a) Scientific Property Used for Research.--
            (1) In general.--Clause (ii) of section 170(e)(4)(B) 
        (defining qualified research contributions) is amended by 
        inserting ``or assembled'' after ``constructed''.
            (2) Conforming amendment.--Clause (iii) of section 
        170(e)(4)(B) is amended by inserting ``or assembling'' after 
        ``construction''.
    (b) Computer Technology and Equipment for Educational Purposes.--
            (1) In general.--Clause (ii) of section 170(e)(6)(B) is 
        amended by inserting ``or assembled'' after ``constructed'' and 
        ``or assembling'' after ``construction''.
            (2) Special rule extended.--Section 170(e)(6)(G) is amended 
        by striking ``2005'' and inserting ``2007''.
            (3) Conforming amendments.--Subparagraph (D) of section 
        170(e)(6) is amended by inserting ``or assembled'' after 
        ``constructed'' and ``or assembling'' after ``construction''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

SEC. 834. MODIFICATION OF CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF 
              BOOK INVENTORY.

    (a) In General.--Subparagraph (D) of section 170(e)(3) (relating to 
special rule for certain contributions of inventory and other property) 
is amended to read as follows:
                    ``(D) Special rule for contributions of book 
                inventory for educational purposes.--
                            ``(i) Contributions of book inventory.--In 
                        determining whether a qualified book 
                        contribution is a qualified contribution, 
                        subparagraph (A) shall be applied without 
                        regard to whether--
                                    ``(I) the donee is an organization 
                                described in the matter preceding 
                                clause (i) of subparagraph (A), and
                                    ``(II) the property is to be used 
                                by the donee solely for the care of the 
                                ill, the needy, or infants.
                            ``(ii) Amount of reduction.--
                        Notwithstanding subparagraph (B), the amount of 
                        the reduction determined under paragraph (1)(A) 
                        shall not exceed the amount by which the fair 
                        market value of the contributed property (as 
                        determined by the taxpayer using a bona fide 
                        published market price for such book) exceeds 
                        twice the basis of such property.
                            ``(iii) Qualified book contribution.--For 
                        purposes of this paragraph, the term `qualified 
                        book contribution' means a charitable 
                        contribution of books, but only if the 
                        requirements of clauses (iv) and (v) are met.
                            ``(iv) Identity of donee.--The requirement 
                        of this clause is met if the contribution is to 
                        an organization--
                                    ``(I) described in paragraph 
                                (6)(B)(i), or
                                    ``(II) described in section 
                                501(c)(3) and exempt from tax under 
                                section 501(a) (other than a private 
                                foundation, as defined in section 
                                509(a), which is not an operating 
                                foundation, as defined in section 
                                4942(j)(3)), which is organized 
                                primarily to make books available to 
                                the general public at no cost or to 
                                operate a literacy program.
                            ``(v) Certification by donee.--The 
                        requirement of this clause is met if, in 
                        addition to the certifications required by 
                        subparagraph (A) (as modified by this 
                        subparagraph), the donee certifies in writing 
                        that--
                                    ``(I) the books are suitable, in 
                                terms of currency, content, and 
                                quantity, for use in the donee's 
                                educational programs, and
                                    ``(II) the donee will use the books 
                                in its educational programs.
                            ``(vi) Bona fide published market price.--
                        For purposes of this subparagraph, the term 
                        `bona fide published market price' means, with 
                        respect to any book, a price--
                                    ``(I) determined using the same 
                                printing and edition,
                                    ``(II) determined in the usual 
                                market in which such a book has been 
                                customarily sold by the taxpayer, and
                                    ``(III) for which the taxpayer can 
                                demonstrate to the satisfaction of the 
                                Secretary that the taxpayer customarily 
                                sold such books in arm's length 
                                transactions within 7 years preceding 
                                the contribution of such a book.
                            ``(vii) Termination.--This subparagraph 
                        shall not apply to contributions made after 
                        December 31, 2007.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after December 31, 2005.
                                 <all>