Education Savings Accounts for Military Families Act of 2018
This bill amends the Elementary and Secondary Education Act of 1965 to direct the Department of Education to establish a program to provide children with parents on active duty in the uniformed services with funds for specified educational purposes. Children of active duty service members who reside in a local education agency that receives payments under the Impact Aid Program or who reside within the boundaries of a federal military installation are eligible to receive funds.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5199 Introduced in House (IH)]
<DOC>
115th CONGRESS
2d Session
H. R. 5199
To amend the Elementary and Secondary Education Act of 1965 to allow
parents of eligible military dependent children to establish Military
Education Savings Accounts, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 7, 2018
Mr. Banks of Indiana (for himself, Mr. Scalise, Mr. McHenry, Mr.
Walker, Mr. Messer, Mr. Rokita, Mr. Ratcliffe, Mr. Loudermilk, Mr.
DesJarlais, Mr. Kelly of Mississippi, Mr. Meadows, Mr. Moolenaar, Mr.
Buck, Mr. Webster of Florida, Mrs. Wagner, Mr. Smith of Missouri, Mr.
Kelly of Pennsylvania, Mr. Lamborn, Mr. Perry, Mr. Harris, Mr. Latta,
Mr. Budd, Mr. Duncan of South Carolina, Mr. Farenthold, Mr. Pearce, Mr.
Gibbs, Mr. Pittenger, Mrs. Blackburn, Mr. Biggs, and Mr. Estes of
Kansas) introduced the following bill; which was referred to the
Committee on Education and the Workforce, and in addition to the
Committee on Ways and Means, 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 amend the Elementary and Secondary Education Act of 1965 to allow
parents of eligible military dependent children to establish Military
Education Savings Accounts, and for other purposes.
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 Savings Accounts for
Military Families Act of 2018''.
SEC. 2. MILITARY EDUCATION SAVINGS ACCOUNTS.
Title VII of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7701 et seq.) is amended by inserting after section 7012 the
following:
``SEC. 7012A. MILITARY EDUCATION SAVINGS ACCOUNTS.
``(a) In General.--The Secretary of Education, in consultation with
the Secretary of Defense, shall carry out a program under which the
Secretary of Education shall--
``(1) subject to the availability of funds pursuant to
section 7014(f), at the request of a parent of an eligible
military dependent child, establish an account on behalf of
such child (to be known as a `Military Education Savings
Account') into which the Secretary shall deposit funds in an
amount determined under subsection (d); and
``(2) establish a procedure under which the parent of the
child may use funds in the account to pay for the educational
expenses of the child in accordance with this section.
``(b) Application.--
``(1) In general.--To be eligible to participate in the
program under this section for a school year, a parent of an
eligible military dependent child shall submit an application
to the Secretary of Education in accordance with this
subsection.
``(2) Application process.--In carrying out paragraph (1),
the Secretary of Education shall--
``(A) accept applications on a year-round basis and
establish procedures for approving applications in an
expeditious manner; and
``(B) create a standardized form that parents can
use to apply for the program and ensure that such form
is readily available in written and electronic formats,
including on a publicly accessible website.
``(3) Approval.--Subject to the availability of funds to
carry out this section, the Secretary shall approve the
application of a parent to establish a Military Education
Savings Account if--
``(A) the application is submitted in accordance
with the application process established by the
Secretary pursuant to this subsection;
``(B) the application demonstrates that the child
on whose behalf the Military Education Savings Account
is to be established is an eligible military dependent
child; and
``(C) the parent who submits the application enters
into a written agreement with the Secretary pursuant to
subsection (c).
``(4) Renewals.--The Secretary of Education shall establish
an expedited application process for the renewal of a
previously established Military Education Savings Account.
``(c) Written Agreement.--As a condition of participating in the
program under this section, the parent of a child on whose behalf a
Military Education Savings Account is established shall enter into a
written agreement with the Secretary under which the parent agrees--
``(1) to provide the child with instruction in, at minimum,
the fields of reading, language, mathematics, science, and
social studies;
``(2) to not enroll the child in a public school on a full-
time basis while participating in the program;
``(3) to use funds in the Military Education Savings
Account only for the purposes authorized under this section;
and
``(4) to comply with all other requirements of this
section.
``(d) Amount of Deposits.--
``(1) First year of program.--The amount of funds deposited
into each Military Education Savings Account for the first
school year for which such accounts are established under this
section shall be--
``(A) $4,500 for an account established for an
eligible military dependent child described in
subsection (t)(1)(A); and
``(B) $2,500 for an account established for an
eligible military dependent child described in
subsection (t)(1)(B).
``(2) Subsequent years.--The amount of funds deposited into
each Military Education Savings Account for any school year
after the year described in paragraph (1), shall be the amount
determined under this subsection for the previous school year
increased by a percentage equal to the percentage increase in
the Chained Consumer Price Index for All Urban Consumers (as
published by the Bureau of Labor Statistics of the Department
of Labor) over the period of such previous school year.
``(3) Source of funds.--In accordance with section 7014(f),
funds deposited into a Military Education Savings Account under
this subsection shall be drawn from amounts otherwise
appropriated to carry out the impact aid program under section
7003 and no additional funds may be appropriated for the
purpose of carrying out this subsection.
``(e) Use of Funds.--Funds deposited into a Military Education
Savings Account for a school year may be used by the parent of an
eligible military dependent child to make payments to a qualified
educational service provider for--
``(1) costs of attendance at a private elementary school or
secondary school recognized by the State, which may include a
private school that is a religious institution;
``(2) private online learning programs;
``(3) private tutoring;
``(4) services provided by a public elementary school or
secondary school attended by the child on a less than full-time
basis, including individual classes and extracurricular
activities and programs;
``(5) textbooks, curriculum programs, or other
instructional materials, including any supplemental materials
required by a curriculum program, private school, private
online learning program, or a public school, or any parent
directed curriculum associated with K-12 education;
``(6) computer hardware or other technological devices that
are used to help meet a student's educational needs, except
that such hardware or devices may not be purchased by a parent
more than once in an 18-month period;
``(7) educational software and applications;
``(8) uniforms purchased from or through a private school
recognized by the State;
``(9) fees for nationally standardized assessment exams,
advanced placement exams, any exams related to college or
university admission, or tuition or fees for preparatory
courses for such exams;
``(10) fees for summer education programs and specialized
after-school education programs (but not including after-school
childcare);
``(11) educational services and therapies, including
occupational, behavioral, physical, speech-language, and
audiology therapies;
``(12) fees for transportation paid to a fee-for-service
transportation provider for the student to travel to and from
the facilities of a qualified educational service provider;
``(13) costs of attendance at an institution of higher
education;
``(14) costs associated with an apprenticeship or other
vocational training program;
``(15) fees for state-recognized industry certification
exams, and tuition or fees for preparatory courses for such
exams;
``(16) contributions to a college savings account, which
may include contributions to a qualified tuition program (as
defined in section 529(b)(1)(A) of the Internal Revenue Code of
1986) or other prepaid tuition plan offered by a State; or
``(17) any other educational expenses approved by the
Secretary.
``(f) Transfer Schedule.--The Secretary of Education shall make
quarterly transfers of the amount calculated pursuant to subsection (d)
for deposit into the account of each qualified student, except that the
Secretary may make transfers according to another transfer schedule if
the Secretary determines that a transfer schedule other than quarterly
transfers is necessary for the operation of the education savings
account. Parents shall be required to complete an expense report issued
by the Secretary electronically or in paper format prior to the next
quarter's deposit.
``(g) Rollover.--Amounts remaining in the Military Education
Savings Account of a student at the end of a school year shall remain
available for use in accordance with subsection (e) until the date on
which such account terminates under subsection (h).
``(h) Termination and Return of Funds.--
``(1) Termination.--The Military Education Savings Account
of a student shall terminate on--
``(A) the date on which the student enrolls in a
public elementary school or secondary school on a full-
time basis;
``(B) in the case of a student who is pursuing
postsecondary education, the earlier of--
``(i) the date on which the student
completes postsecondary education; or
``(ii) the date on which the student
attains the age of 22 years;
``(C) in the case of a student who is an individual
with a disability, the date on which the student
attains the age of 26 years; or
``(D) in the case of an individual not described in
subparagraphs (B) or (C), the earlier of--
``(i) the date on which the student attains
the age of 22 years; or
``(ii) the expiration of any 4-year period
during which funds in the account are not used
in accordance with this section.
``(2) Return of funds.--Any funds remaining in a Military
Education Savings account before such account terminates under
paragraph (1) shall be--
``(A) returned to the Secretary of Education; and
``(B) used for the program under this section.
``(i) Compulsory Attendance Requirements.--A State that receives
funds under this title shall consider a child with a Military Education
Savings Account for a school year as meeting the State's compulsory
school attendance requirements for such school year.
``(j) Special Rule.--In the case of a child with a Military
Education Savings Account who attends a public school on a less than
full-time basis in a school year--
``(1) the child may not attend the public school free of
charge; and
``(2) funds in the account, in an amount determined
pursuant to an agreement between the parent of the child and
the local educational agency concerned, shall be used to pay
for the child's costs of attendance at such school.
``(k) Tax Treatment of Accounts.--
``(1) In general.--A Military Education Savings Account is
exempt from taxation under subtitle A of the Internal Revenue
Code of 1986.
``(2) Contributions and distributions.--For purposes of
such subtitle--
``(A) any contribution to a military education
savings account by the Secretary under this Act shall
not be includible in the gross income of the individual
for whose benefit such account is maintained or the
parent of such individual; and
``(B) any distribution from a military education
savings account which is permitted under this Act shall
not be includible in the gross income of the individual
for whose benefit such account is maintained or the
parent of such individual.
``(l) Privacy.--Section 444 of the General Education Provisions Act
(commonly known as the `Family Educational Rights and Privacy Act of
1974') (20 U.S.C. 1232g) shall apply to a qualified educational service
provider in the same manner that such section applies to an educational
agency or institution (as that term is defined in such section).
``(m) Fraud Prevention and Reporting.--The Secretary of Education
shall establish a website and a telephone hotline that enable
individuals to anonymously report suspected fraud in the program under
this section. The Secretary also shall conduct or contract for random,
quarterly, or annual audits of accounts as needed to ensure compliance
with this section.
``(n) Contract Authority.--The Secretary of Education may enter
into one or more contracts for the purpose of carrying out the
responsibilities of the Secretary under this section.
``(o) Surety Bond.--
``(1) In general.--The Secretary shall require each
qualified educational service provider that receives not less
than $100,000 in funds from Military Education Savings Accounts
in a school year to post a surety bond, in an amount determined
by the Secretary, for such school year.
``(2) Retention.--The Secretary shall prescribe the
circumstances under which a surety bond under paragraph (1) may
be retained by the Secretary.
``(p) Refunds.--The Secretary shall establish a process under which
payments from a Military Education Savings Accounts to a qualified
educational service provider may be refunded to the account in the
event of fraud or nonperformance by the provider.
``(q) Rules of Construction.--
``(1) Nonagency.--A qualified educational service provider
that receives a payment from a Military Education Savings
Account pursuant to this section shall not be considered an
agent of the State or the Federal Government solely because the
provider received such payment.
``(2) Federal or state supervision.--Nothing in this
section shall be construed to allow any agency of a State or
the Federal Government to exercise control or supervision over
any qualified educational service provider.
``(3) Imposition of additional requirements.--Nothing in
this section shall be construed to require a qualified
educational service provider to alter its creed, practices,
admissions policy, or curriculum in order to be eligible to
receive payments from a Military Education Savings Account.
``(4) Treatment of assistance.--For purposes of any Federal
law, assistance provided under this section shall be considered
assistance to the military dependent student or to the parents
of a student on whose behalf a Military Education Savings
Account is established and shall not be considered assistance
to the qualified educational service provider that uses or
receives funds from a Military Education Savings Account.
``(r) Legal Proceedings.--
``(1) Burden.--In any legal proceeding in which a qualified
educational service provider challenges a requirement imposed
by the Department of Education on the provider, the Department
shall have the burden of establishing that the law is necessary
and does not impose any undue burden on the provider.
``(2) Limitation on liability.--
``(A) In general.--No liability shall arise on the
part of an entity described in subparagraph (B) solely
because such entity awards, uses, or receives funds
from a Military Education Savings Account.
``(B) Entity described.--The entities described in
this subparagraph are the following:
``(i) The Department of Education.
``(ii) An entity that enters into a
contract with the Secretary pursuant to
subsection (n).
``(3) Intervention.--
``(A) In general.--Except as provided in
subparagraph (B), a parent of an eligible military
dependent student or a parent of a student on whose
behalf a Military Education Savings Account is
established may intervene in any legal proceeding in
which the constitutionality of the program under this
section is challenged under a State constitution or the
Federal constitution.
``(B) Exception.--For purposes of judicial
administration, a court may--
``(i) limit the number of parents allowed
to intervene in a proceeding under subparagraph
(A); or
``(ii) require all parents who have
intervened in a proceeding under subparagraph
(A) to file a joint brief, except that no
parent shall be required to join any brief
filed on behalf of a State that is a defendant
in the proceeding.
``(s) Administrative Expenses.--The Secretary may use not more than
5 percent of the funds made available to carry out this section for the
direct costs of administering Military Education Savings Accounts.
``(t) Definitions.--In this section:
``(1) The term `eligible military dependent child' means a
child who--
``(A)(i) has a parent on active duty in the
uniformed services (as that term defined in section 101
of title 37, United States Code, except that such term
does not include an officer in the National Guard who
has been activated); and
``(ii) resides within the boundaries of a heavily
impacted local educational agency; or
``(B)(i) has a parent on active duty in the
uniformed services (as that term defined in section 101
of title 37, United States Code, except that such term
does not include an officer in the National Guard who
has been activated);
``(ii) resides within the boundaries of a Federal
military installation; and
``(iii) does not reside within the boundaries of a
heavily impacted local educational agency.
``(2) The term `heavily impacted local educational agency'
means a local educational agency eligible to receive a payment
under section 7003(b)(2).
``(3) The term `institution of higher education' has the
meaning given the term in section 102 of the Higher Education
Act of 1965 (20 U.S.C. 1002).
``(4) The term `qualified educational service provider'
means an entity or person that provides educational services
for which funds may be expended under subsection (e),
including--
``(A) a private school;
``(B) a private online learning program or course;
``(C) an institution of higher education, including
a state institution of higher education, a junior or
community college, or a postsecondary vocational
institution;
``(D) a public school;
``(E) a private tutor or entity that operates a
tutoring facility;
``(F) a provider of educational materials or
curriculum;
``(G) a provider of education-related therapies or
services; and
``(H) any other provider of educational services
approved by the Secretary.''.
SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
Section 7014 of the Elementary and Secondary Education Act of 1965
is amended by adding at the end the following:
``(f) Military Education Savings Accounts.--
``(1) Source of funds and prohibition on additional
appropriation.--Subject to paragraph (2), section 7012A shall
be carried out using funds otherwise appropriated to carry out
the impact aid program under section 7003 and no additional
funds may be appropriated to carry out such section 7012A.
``(2) Prohibition on use of certain funds.--In making funds
available to carry out section 7012A under paragraph (1), the
Secretary of Education shall ensure that such funds are drawn
only from amounts otherwise made available for the education of
military dependent children under section 7003 and not from
other sources.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, 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.
Referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, 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.
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