PRINTER'S NO. 238
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 304
Session of
2025
INTRODUCED BY MASTRIANO, PENNYCUICK, ROTHMAN, ROBINSON, CULVER,
HUTCHINSON AND J. WARD, FEBRUARY 25, 2025
REFERRED TO EDUCATION, FEBRUARY 25, 2025
AN ACT
1 Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2 act relating to the public school system, including certain
3 provisions applicable as well to private and parochial
4 schools; amending, revising, consolidating and changing the
5 laws relating thereto," providing for military education
6 scholarship account; and imposing penalties.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. The act of March 10, 1949 (P.L.30, No.14), known
10 as the Public School Code of 1949, is amended by adding an
11 article to read:
12 ARTICLE XX-N
13 MILITARY EDUCATION SCHOLARSHIP ACCOUNT
14 Section 2001-N. Scope of article.
15 This article relates to military education scholarship
16 accounts.
17 Section 2002-N. Definitions.
18 The following words and phrases when used in this article
19 shall have the meanings given to them in this section unless the
20 context clearly indicates otherwise:
 1 "Applicant." A parent who applies for a military education
2 scholarship account under section 2003-N(b) on behalf of an
3 eligible student.
4 "Department." The Department of Education of the
5 Commonwealth.
6 "Eligible student." A school-age child who meets the
7 requirements under section 2003-N(b) and whose parent has
8 entered into an agreement under section 2003-N(d).
9 "Institution of higher education." As defined under section
10 118(c).
11 "Military education scholarship account." A spending account
12 established and administered by the State Treasury, and
13 controlled by a parent, for a school-age child with money that
14 may be spent on a qualified education expense as provided for
15 under section 2005-N.
16 "Nonpublic school." A school, other than a public school,
17 located in this Commonwealth where a Commonwealth resident may
18 legally fulfill the compulsory attendance requirements of this
19 act, that complies with section 1521 and meets the applicable
20 requirements of 42 U.S.C. Ch. 21 Subch. V (relating to federally
21 assisted programs).
22 "Parent." An individual who:
23 (1) is a resident of this Commonwealth; and
24 (2) either:
25 (i) has legal custody or guardianship of a student;
26 or
27 (ii) keeps in the individual's home a student and
28 supports the student gratis as if the student were a
29 lineal descendant of the individual.
30 "Participating entity."
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 1 (1) Any of the following where a school-age child
2 receives instruction under section 2003-N(d):
3 (i) A nonpublic school for kindergarten through
4 grade 12, or a combination of grades.
5 (ii) An institution of higher education.
6 (iii) A distance learning program that is not
7 offered by a public school or the department.
8 (iv) A tutor who is a teacher licensed in any state,
9 has taught at an eligible postsecondary institution and
10 is a subject matter expert or a tutor or tutoring agency
11 otherwise approved by the department.
12 (2) The term does not include a parent of a school-age
13 child to the extent that the parent provides educational
14 services directly to the school-age child.
15 "Program." The Military Education Scholarship Account
16 Program established under section 2003-N(a).
17 "Public school." A school district, charter school, cyber
18 charter school, regional charter school, intermediate unit or
19 area career and technical school.
20 "Resident school district." The school district in which a
21 school-age child resides.
22 "School-age child." A child enrolled in kindergarten through
23 grade 12 and who resides in this Commonwealth.
24 "Student with a disability." A school-age child who has been
25 identified, in accordance with 22 Pa. Code Ch. 14 (relating to
26 special education services and programs), as a "child with a
27 disability," as defined in 34 CFR 300.8(a) (relating to child
28 with a disability).
29 Section 2003-N. Establishment, application and agreement.
30 (a) Establishment.--The Military Education Scholarship
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 1 Account Program is established as a program of the department.
2 (b) Individuals who may apply.--A parent may apply for a
3 military education scholarship account for a school-age child
4 who:
5 (1) is a child of a parent who is on full-time active-
6 duty status in the armed forces of the United States,
7 including members of the National Guard and reserve on active
8 duty orders under 10 U.S.C. §§ 12301 (relating to reserve
9 components generally) and 12401 et seq. (relating to Army and
10 Air National Guard of the United States: status) or was
11 killed in the line of duty; or
12 (2) participated in the program in the prior year and is
13 renewing an agreement under subsection (i) by filing an
14 application with the department, in a manner and on a form
15 provided by the department.
16 (c) Application form.--The form may not exceed one page that
17 measures 8.5 inches by 11 inches and may be filled out and
18 submitted through the department's publicly accessible Internet
19 website.
20 (d) Review and approval.--The department shall review the
21 application to determine if the applicant meets the requirements
22 under subsection (b). If the requirements have been met, the
23 department shall approve the application and enter into an
24 agreement with the applicant. The agreement shall provide that:
25 (1) The school-age child withdraw from public school and
26 receive instruction in this Commonwealth from a participating
27 entity for the school year for which the agreement applies.
28 (2) The school-age child not accept a scholarship in the
29 educational improvement tax credit program under Article XX-B
30 or the opportunity scholarship tax credit program under
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 1 Article XX-B.
2 (3) The parent will receive a grant on behalf of the
3 school-age child, in the form of money deposited under
4 section 2004-N in the military education scholarship account.
5 (4) The money in the military education scholarship
6 account may be expended only as authorized under this
7 article.
8 (e) Military education scholarship account.--
9 (1) If an agreement is entered into under subsection
10 (d), a military education scholarship account shall be
11 established. The military education scholarship account shall
12 be administered by the State Treasury under this article.
13 (2) Failure of a parent to enter into an agreement under
14 subsection (d) for a school year shall not preclude the
15 parent from entering into an agreement for a subsequent
16 school year if the school-age child is eligible under
17 subsection (b).
18 (f) Term of agreement.--An agreement entered into under
19 subsection (d) shall be valid for one school year.
20 (g) Termination.--
21 (1) Notwithstanding subsection (h), an agreement entered
22 into under subsection (d) may be terminated early.
23 (2) If an agreement is terminated early by either the
24 parent or the department, all available money in the military
25 education scholarship account shall revert to the State
26 Treasury and be used in the resident school district.
27 (h) Automatic termination.--
28 (1) An agreement entered into under subsection (d) shall
29 terminate automatically if the school-age child no longer
30 resides in this Commonwealth.
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 1 (2) The parent shall notify the department if the child
2 no longer resides in this Commonwealth within 15 days of the
3 change of residence. After the child's parent has notified
4 the department, money remaining in the military education
5 scholarship account shall revert to the State Treasury and be
6 used in the resident school district.
7 (i) Renewal.--
8 (1) Subject to subsection (l), an agreement entered into
9 under subsection (d) may be renewed for each school year for
10 the school-age child.
11 (2) Failure of a parent to renew an agreement for a
12 school year shall not preclude a parent from renewing the
13 agreement for a subsequent school year if the school-age
14 child remains eligible under subsection (b).
15 (j) Number.--A parent may enter into separate agreements
16 under subsection (d) for each school-age child of the parent.
17 Not more than one military education scholarship account may be
18 established for a school-age child.
19 (k) Explanation.--Upon entering into an agreement under
20 subsection (d) or renewing an agreement under subsection (i),
21 the department shall provide the parent with a written
22 explanation of the authorized uses of the money in the military
23 education scholarship account and the responsibilities of the
24 parent, the department and the State Treasury under the
25 agreement and this article.
26 (l) Application and renewal period.--
27 (1) A parent may apply or seek renewal between January 1
28 and April 1 for the following school year.
29 (2) The department shall notify parents and school
30 districts of approved applications by April 30.
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 1 Section 2004-N. Amount.
2 (a) Grant.--If a parent of an eligible student enters into
3 or renews an agreement under section 2003-N with the department
4 for a school year, the Secretary of Education shall deposit a
5 grant for that school year in the military education scholarship
6 account of the eligible student. The amount of the grant shall
7 be as follows:
8 (1) For an eligible student who does not have a
9 disability, the grant amount shall be equal to the State
10 revenue received by school districts minus the State revenue
11 received for transportation divided by the State total
12 average daily membership.
13 (2) For an eligible student with a disability, the grant
14 amount shall be based on the category of disability by which
15 the resident school district is required to categorize the
16 eligible student with a disability for the purpose of the
17 report required under section 1372(8) as follows:
18 (i) For an eligible student in Category 1, multiply
19 the grant amount in paragraph (1) by 1.51.
20 (ii) For an eligible student in Category 2, multiply
21 the grant amount in paragraph (1) by 3.77.
22 (iii) For an eligible student in Category 3A and 3B,
23 multiply the grant amount in paragraph (1) by 7.46.
24 (3) For an eligible student receiving a grant, the
25 amount of basic education funding and other subsidies paid by
26 the department to the resident school district shall be
27 reduced by the grant amount calculated for the student.
28 (4) If a school district's basic education funding and
29 other subsidies are reduced under this section, the resident
30 school district shall include the grant recipient in the
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 1 resident school district's average daily membership for the
2 purpose of calculating school subsidies.
3 (b) Installments.--The State Treasury shall deposit the
4 money for each grant in quarterly installments under a schedule
5 determined by the State Treasury.
6 (c) Disposition.--The following shall apply to money
7 remaining in a military education scholarship account:
8 (1) For money remaining in a military education
9 scholarship account at the end of a school year, the money
10 may be carried forward to any other school year of the
11 eligible student if the agreement entered into under section
12 2003-N(d) is renewed for the other school year.
13 (2) Subject to paragraph (3), money remaining in a
14 military education scholarship account when an agreement
15 entered into under section 2003-N(d) is not renewed or is
16 terminated shall revert to the resident school district.
17 (3) Money remaining in a military education scholarship
18 account after the school-age child graduates from high school
19 may be used for qualified education expenses under section
20 2005-N for up to two years after the date of high school
21 graduation. After the two-year time period under this
22 paragraph has expired, money remaining in the military
23 education scholarship account shall revert to the General
24 Fund.
25 Section 2005-N. Qualified education expenses.
26 (a) Use.--Money deposited into a military education
27 scholarship account may be used to pay for any of the following
28 expenses incurred by or associated with the school-age child:
29 (1) Tuition and fees charged by a participating entity.
30 (2) Textbooks or uniforms required by a participating
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 1 entity.
2 (3) Fees for tutoring or other teaching services
3 provided by a participating entity.
4 (4) Fees for a nationally norm-referenced test, advanced
5 placement or similar examination or standardized examination
6 required for admission to an institution of higher education,
7 and career and technical education examination fees.
8 (5) Fees for purchasing a curriculum or instructional
9 materials required to administer the curriculum.
10 (6) If the eligible student is a student with a
11 disability, fees for special instruction or special services
12 provided to the eligible student, including occupational,
13 physical, speech and behavioral therapies.
14 (7) Other valid educational expenses approved by the
15 department.
16 (b) Prohibitions.--A participating entity that receives a
17 payment for qualified education expenses authorized under
18 subsection (a) may not:
19 (1) Refund a portion of the payment directly to the
20 parent who made the payment.
21 (2) Rebate or otherwise directly share a portion of the
22 payment with the parent who made the payment.
23 (c) Refund.--A participating entity shall deposit a refund
24 for an item that is being returned or an item or service that
25 has not been provided directly to the military education
26 scholarship account of the school-age child from which payment
27 for the item or service was made.
28 (d) Payment system.--
29 (1) The State Treasury shall develop a system that
30 enables a parent to pay for services provided by
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 1 participating entities under the program by electronic money
2 transfer, including electronic payment systems or other means
3 of electronic payment that the State Treasury determines to
4 be commercially viable and cost effective.
5 (2) The State Treasury may not adopt a system that
6 requires a parent to be reimbursed for out-of-pocket
7 expenses.
8 (e) Source of payment.--
9 (1) An individual may not deposit personal money into or
10 otherwise make gifts or contributions of private money to a
11 military education scholarship account.
12 (2) Nothing in this section shall be construed to
13 prohibit a parent or school-age child from paying for
14 qualified education expenses from a source other than the
15 military education scholarship account.
16 Section 2006-N. Audits and penalties.
17 (a) Audit.--The Attorney General shall conduct audits of a
18 military education scholarship account as the State Treasurer
19 determines necessary.
20 (b) Penalties.--If the State Treasury determines that money
21 in a military education scholarship account has been expended
22 for an expense other than a qualified education expense under
23 section 2005-N(a), the State Treasury may do any of the
24 following:
25 (1) Freeze or dissolve the military education
26 scholarship account, in accordance with regulations adopted
27 by the State Treasury for notice of the action and
28 opportunity to respond to the notice.
29 (2) Refer the matter to the Attorney General or district
30 attorney of the county in which the parent resides for
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