[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 463 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 463
To have education funds follow the student.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 24, 2023
Mr. Good of Virginia (for himself, Mrs. Miller of Illinois, and Mr.
Burgess) introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on
Education and the Workforce, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To have education funds follow the student.
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 ``Children Have Opportunities in
Classrooms Everywhere Act''.
SEC. 2. FEDERAL FUNDING UNDER THE ELEMENTARY AND SECONDARY EDUCATION
ACT OF 1965 TO FOLLOW THE STUDENT.
Title VIII of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7801 et seq.) is amended by adding at the end the following:
``PART H--FUNDS TO FOLLOW THE STUDENT
``SEC. 8701. FUNDS TO FOLLOW THE STUDENT.
``(a) Definitions.--In this section:
``(1) 529 education savings plan account.--The term `529
education savings plan account' means a qualified tuition
program (as defined in section 529(b)(1) of the Internal
Revenue Code of 1986).
``(2) Eligible child.--The term `eligible child' means a
child who is from a household, the taxable income of which for
the most recently completed taxable year is not more than 130
percent of an amount equal to the poverty level, as determined
by using criteria of poverty established by the Bureau of the
Census.
``(3) Home school.--The term `home school' means a home
school as defined by the laws of the State in which the
eligible child resides.
``(b) Funds To Follow the Student.--
``(1) In general.--Notwithstanding any other provision of
law and to the extent permitted under State law, a State
educational agency shall allocate grant funds provided under
title I, subparts 2 and 3 of part B of title II, and titles
III, IV, V, and VI, for the purposes of ensuring that funding
under such titles follows children, to the public school the
children attend or for the expenses described in section
529(c)(7) of the Internal Revenue Code of 1986.
``(2) Plan.--
``(A) In general.--Each State that carries out
allocations described in paragraph (1) shall establish
a plan that complies with the following:
``(i) The parent of each eligible child in
the State who desires access to the funds
described in paragraph (1) shall annually
submit to the State educational agency by not
later than April 30, a paper or electronic
application form that includes the following:
``(I) The parent's taxable income
based on the Federal tax return of the
parent for the prior tax year.
``(II) The eligible child's date of
birth, place of residence, school
district, and school in which the
eligible child will be enrolled for the
subsequent school year.
``(III) If the eligible child will
be enrolled in a private school or home
school for the subsequent school year,
confirmation that the eligible child
has a 529 education savings plan
account, including the necessary
details of such account to enable the
State to deposit funds available under
this section into such account.
``(ii) Not later than May 14 of each year,
the State educational agency shall submit to
the Secretary the application forms for all
applicants under clause (i).
``(iii) Not later than July 1 of each year
and based on the information submitted under
clause (i), the State educational agency
shall--
``(I) if the eligible child will be
enrolled in a private school or home
school for the subsequent school year,
deposit the amount equal to the
concentration distribution and basic
distribution applicable for the
eligible child under subparagraphs (B)
and (C) of subsection (c)(2), into the
529 education savings plan account of
the eligible child; and
``(II) if the eligible child will
be enrolled in a public school for the
subsequent school year, distribute the
amount equal to the concentration
distribution and basic distribution
applicable for the eligible child under
subparagraphs (B) and (C) of subsection
(c)(2), to such public school.
``(B) Data collection.--Information collected under
this section by the State shall be used for the sole
purposes of calculating the allocation of funds and
distribution of funds under this section.
``(C) Data privacy protection.--Information
collected under this section shall be subject to the
privacy protections outlined in 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').
``(c) Calculation of Amounts To Be Distributed.--
``(1) In general.--From the amounts provided to carry out
title I, subparts 2 and 3 of part B of title II, and titles
III, IV, V, and VI, and based on the information submitted by
State educational agencies under subsection (b)(2)(A)(ii), the
Secretary shall--
``(A) determine the eligibility based on the
information provided under subsection (b)(2)(A)(i) and
verify that the child for whom the information is
submitted is an eligible child;
``(B) determine the income bracket for such
eligible child; and
``(C) make grants to State educational agencies in
the amount determined under paragraph (2) by not later
than 30 days after the date the Secretary receives the
information under subsection (b)(2)(A)(ii).
``(2) Amount of grants.--
``(A) In general.--The grant amount provided to a
State educational agency shall be equal to the total
distribution amount determined under subparagraphs (B)
and (C) for all eligible children in the State.
``(B) Concentration distribution.--An eligible
child who is from a household, the taxable income of
which for the most recently completed taxable year is
not more than 100 percent of an amount equal to the
poverty level, as measured by the most recent Small
Area Income and Poverty Estimates of the Bureau of the
Census, shall receive a concentration distribution
according to the following:
``(i) If the eligible child resides in an
area served by a school district in which not
less than 1 percent and not more than 9 percent
of the elementary school and secondary school
students are from a household, the taxable
income of which for the most recently completed
taxable year is not more than 100 percent of an
amount equal to the poverty level, as measured
by the most recent Small Area Income and
Poverty Estimates of the Bureau of the Census,
the eligible child shall receive $50.
``(ii) If the eligible child resides in an
area served by a school district in which not
less than 10 percent and not more than 19
percent of the elementary school and secondary
school students are from a household, the
taxable income of which for the most recently
completed taxable year is not more than 100
percent of an amount equal to the poverty
level, as measured by the most recent Small
Area Income and Poverty Estimates of the Bureau
of the Census, the eligible child shall receive
$100.
``(iii) If the eligible child resides in an
area served by a school district in which not
less than 20 percent and not more than 29
percent of the elementary school and secondary
school students are from a household, the
taxable income of which for the most recently
completed taxable year is not more than 100
percent of an amount equal to the poverty
level, as measured by the most recent Small
Area Income and Poverty Estimates of the Bureau
of the Census, the eligible child shall receive
$150.
``(iv) If the eligible child resides in an
area served by a school district in which not
less than 30 percent and not more than 39
percent of the elementary school and secondary
school students are from a household, the
taxable income of which for the most recently
completed taxable year is not more than 100
percent of an amount equal to the poverty
level, as measured by the most recent Small
Area Income and Poverty Estimates of the Bureau
of the Census, the eligible child shall receive
$200.
``(v) If the eligible child resides in an
area served by a school district in which not
less than 40 percent and not more than 49
percent of the elementary school and secondary
school students are from a household, the
taxable income of which for the most recently
completed taxable year is not more than 100
percent of an amount equal to the poverty
level, as measured by the most recent Small
Area Income and Poverty Estimates of the Bureau
of the Census, the eligible child shall receive
$250.
``(vi) If the eligible child resides in an
area served by a school district in which 50
percent or more of the elementary school and
secondary school students are from a household,
the taxable income of which for the most
recently completed taxable year is not more
than 100 percent of an amount equal to the
poverty level, as measured by the most recent
Small Area Income and Poverty Estimates of the
Bureau of the Census, the eligible child shall
receive $300.
``(C) Basic distribution.--In addition to a
concentration distribution under subparagraph (B), an
eligible child shall receive a basic distribution based
on the income bracket applicable for such eligible
child and according to a formula established by the
Secretary in which benefits are flat for everyone at or
below 100 percent of the Federal poverty level and
decrease at an even rate from 100 percent to 130
percent of the Federal poverty level.
``(d) Notification of Availability of Funds.--Not later than 100
days after the date of enactment of the Children Have Opportunities in
Classrooms Everywhere Act, and annually for each of the 5 years
thereafter, each State that carries out allocations described in
subsection (b)(1) shall inform each parent of a child eligible for
assistance under the supplemental nutrition assistance program under
the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) or the
program of block grants for States for temporary assistance for needy
families established under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) of the availability of assistance under
this section.
``(e) Application of Participation of Children Enrolled in Private
Schools.--The provisions of section 1117 shall apply to this section.
``(f) Rule of Construction.--
``(1) Federally funded school food programs.--Nothing in
this section shall be construed to preclude a child eligible
for assistance under the free and reduced price school lunch
program established under the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751 et seq.) from receiving
assistance under such program.
``(2) Prohibition of control over non-public education
providers.--Nothing in this section shall permit, allow,
encourage, or authorize Federal or State control over non-
public education providers.''.
SEC. 3. 529 ACCOUNT FUNDING FOR HOMESCHOOL AND ADDITIONAL ELEMENTARY
AND SECONDARY EXPENSES.
(a) In General.--Section 529(c)(7) of the Internal Revenue Code of
1986 is amended to read as follows:
``(7) Treatment of elementary and secondary tuition and
resources.--Any reference in this section to the term
`qualified higher education expense' shall include a reference
to the following expenses in connection with enrollment or
attendance at, or for students enrolled at or attending, an
elementary or secondary public, private, or religious school:
``(A) Tuition.
``(B) Curriculum and curricular materials.
``(C) Books or other instructional materials.
``(D) Online educational materials.
``(E) Tuition for tutoring or educational classes
outside of the home, including at a tutoring facility,
but only if the tutor or instructor is not related to
the student.
``(F) Fees for a nationally standardized norm-
referenced achievement test, an advanced placement
examination, or any examinations related to college or
university admission.
``(G) Fees for dual enrollment in an institution of
higher education.
``(H) Educational therapies for students with
disabilities provided by a licensed or accredited
practitioner or provider, including occupational,
behavioral, physical, and speech-language therapies.
Such term shall include expenses for the purposes described in
subparagraphs (A) through (H) in connection with a homeschool
(whether treated as a homeschool or a private school for
purposes of applicable State law).''.
(b) Effective Date.--The amendment made by this section shall apply
to distributions made after the date of the enactment of this Act.
SEC. 4. INCREASED ADDITIONAL TAX ON GRANTS NOT USED FOR EDUCATIONAL
PURPOSES.
(a) In General.--Section 529(c)(6) of the Internal Revenue Code of
1986 is amended--
(1) by striking ``The tax'' and inserting the following:
``(A) In general.--Except as provided in
subparagraph (B), the tax'', and
(2) by adding at the end the following new subparagraph:
``(B) Increased tax on amounts attributable to
certain grants.--
``(i) In general.--In the case of any
distribution from a qualified contribution
program that includes amounts attributable to a
qualified grant--
``(I) section 530(d)(4) shall be
applied separately to amounts
attributable to qualified grants and to
other amounts, and
``(II) in applying such section to
amounts attributable to qualified
grants, such section shall be applied
by substituting `100 percent' for `10
percent'.
``(ii) Attribution rules.--For purposes of
this subparagraph--
``(I) any earnings on contributions
from a qualified grant shall not be
treated as attributed to a qualified
grant, and
``(II) distributions from a
qualified tuition program described in
clause (i) shall be treated as
distributed first from amounts other
than amounts attributable to a
qualified grant and then from amounts
attributable to a qualified grant.
``(iii) Qualified grant.--For purposes of
this subparagraph, the term `qualified grant'
means any grant under section 8701 of the
Elementary and Secondary Education Act of
1965.''.
(b) Effective Date.--The amendment made by this section shall apply
to distributions made after the date of the enactment of this Act.
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