[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9926 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 9926
To direct the Secretary of the Treasury to carry out a program under
which all Federal funds for elementary and secondary education are
provided directly to parents of eligible children or approved by
parents for distribution to schools, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 4, 2024
Ms. Mace 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 direct the Secretary of the Treasury to carry out a program under
which all Federal funds for elementary and secondary education are
provided directly to parents of eligible children or approved by
parents for distribution to schools, 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 ``School Freedom Act of 2024''.
SEC. 2. TERMINATION OF FEDERAL ELEMENTARY AND SECONDARY EDUCATION
PROGRAMS.
(a) Termination.--Each covered Federal education program shall
terminate on a date determined by the Secretary of Education that is
not later than June 30, 2025.
(b) Wind-Down of Programs.--The Secretary of Education shall take
such steps as may be necessary to provide for the orderly cessation of
activities under each covered Federal education program by not later
than the termination date specified in subsection (a).
(c) Reallocation of Existing Appropriations.--Beginning on the date
of the enactment of this Act, no Federal funds may be appropriated for
a covered Federal education program.
(d) Allocation of Unobligated Amounts.--Any amounts appropriated
for a covered Federal education program that are unobligated as of the
date such program terminates under subsection (a) shall be used to
carry out the School Freedom Account program under section 3.
SEC. 3. SCHOOL FREEDOM ACCOUNT PROGRAM.
(a) In General.--Notwithstanding any other provision of law, for
each school year beginning on or after July 1, 2025, the Secretary of
the Treasury shall carry out a program under which the Secretary
shall--
(1) establish an account on behalf of each eligible child
(to be known as a ``School Freedom Account'') into which the
Secretary shall deposit funds in an amount determined under
subsection (b); and
(2) establish a procedure under which the parent of the
child shall--
(A) in the case of a parent who elects not to have
their child attend a public elementary or secondary
school for a school year, use funds in the account to
pay for the educational expenses of the child in
accordance with subsection (c)(1); or
(B) in the case of a parent who elects to have
their child attend a public elementary or secondary
school for a school year, approve the disbursement of
such funds to the local educational agency serving the
school of the parent's choice and attended by the child
for use in accordance with subsection (c)(2).
(b) Deposit Amount.--
(1) In general.--The amount of funds deposited into each
School Freedom Account for a school year shall be equal to the
per-pupil Federal expenditure applicable to an eligible child
for the school year, as determined under paragraph (2).
(2) Per-pupil federal expenditure.--
(A) First year of program.--The per-pupil Federal
expenditure applicable to an eligible child for the
first school year that begins on or after July 1, 2025
shall be equal to--
(i) the sum of the total amount
appropriated to carry out this section for
fiscal year 2025 and any amounts made available
under section 2(d); divided by
(ii) the total number of eligible children
counted for such school year.
(B) Subsequent years.--The per-pupil Federal
expenditure applicable to an eligible child for any
school year after the year described in subparagraph
(A) shall be equal to--
(i) the total amount of Federal funds
appropriated to carry out this section for the
fiscal year that corresponds to such school
year; divided by
(ii) the total number of eligible children
counted for such school year.
(c) Uses of Funds.--
(1) Non-public school funds.--Funds deposited into a School
Freedom Account on behalf of child who does not attend a public
elementary or secondary school for a school year may be used to
pay for--
(A) curriculum and curricular materials;
(B) books or other instructional materials;
(C) technological educational materials;
(D) online educational materials;
(E) tutoring or educational classes outside the
home, including micro school or learning pod;
(F) private school tuition;
(G) public charter schools;
(H) extracurricular activities;
(I) testing fees;
(J) diagnostic tools; or
(K) educational therapies for students with
disabilities.
(2) Public school funds.--Funds disbursed from a School
Freedom Account to a local educational agency for a school year
may be used by the agency for any educational purpose
authorized under the laws of the State in which such agency is
located.
(d) Rollover, Conversion, and Termination.--
(1) Rollover.--Amounts remaining in the School Freedom
Account of an eligible child at the end of a school year shall
remain available for expenditure in accordance with subsection
(c) in subsequent school years until the earlier of--
(A) the date on which the child completes secondary
school; or
(B) the date on which the child is no longer
eligible to attend a public elementary or secondary
school.
(2) Conversion.--If amounts remain in a School Freedom
Account as of the date described in paragraph (1), such account
shall be redesignated as a ``Higher Education and Skills
Obtainment Fund''. No further deposits shall be made in the
fund by the Secretary of the Treasury, but any amounts
remaining in the fund may be used by the individual on whose
behalf the fund was established to pay for postsecondary
educational expenses, including--
(A) costs of attendance at an institution of higher
education;
(B) costs associated with career and technical
education; and
(C) such other postsecondary educational expenses
as may be approved by the Secretary for purposes of
this paragraph.
(3) Termination and return of funds.--
(A) Termination.--The Higher Education and Skills
Obtainment Fund of a student shall terminate on the
date on which the student attains the age of 30 years.
(B) Return of funds.--Any funds remaining in a
Higher Education and Skills Obtainment Fund on the date
such fund terminates under paragraph (1) shall be
returned to the Treasury of the United States.
(e) Limitation.--The Secretary of the Treasury may not require
that--
(1) individuals obtain preapproval prior to the expenditure
of amounts from a School Freedom Account or Higher Education
and Skills Obtainment Fund; or
(2) the expenditure of amounts from a School Freedom
Account or Higher Education and Skills Obtainment Fund be
through a specific marketplace or portal.
(f) Exclusion From Taxable Income.--Amounts in a School Freedom
Account or Higher Education and Skills Obtainment Fund under this
section shall not be included in the gross income of a parent or
student for purposes of the Internal Revenue Code of 1986.
SEC. 4. TRACKING OF FEDERAL EDUCATION FUNDS.
Before the end of each school year, the Secretary of the Treasury
shall determine--
(1) the aggregate amount of deposits made to School Freedom
Accounts under section 3 for such school year, stated
separately for each local educational agency (based on the
residence of the eligible child) and identifying the State in
which the local educational agency is located; and
(2) of the amount determined under paragraph (1) with
respect to each local educational agency--
(A) the amount of funds distributed directly to
parents in accordance with subparagraph (A) of section
3(a)(2); and
(B) the amount of funds approved by parents for
disbursement to the agency in accordance with
subparagraph (B) of such section.
SEC. 5. RULES OF CONSTRUCTION.
Nothing in this Act shall be construed to--
(1) affect any aspect of private, religious, or home
education providers;
(2) exclude private, religious, or home education providers
from receiving funds from a School Freedom Account; or
(3) require an educational service provider to alter any
creed, practice, admissions policy, or curriculum in order to
receive funds from a School Freedom Account.
SEC. 6. PROHIBITION ON NEW REGULATION.
The Secretary of the Treasury may not issue any rule, promulgate
any regulation, or take any other action which imposes any limitation
or requirement on the use of a School Freedom Account or Higher
Education and Skills Obtainment Fund by a parent or eligible child.
SEC. 7. GAO REPORTING ON SCHOOL FREEDOM ACCOUNT AND HIGHER EDUCATION
AND SKILLS OBTAINMENT FUND.
(a) In General.--Not later than one year after the date of
enactment of this Act, and annually thereafter, the Comptroller General
of the United States shall submit a report to the Congress that--
(1) reviews the wind-down and termination of covered
Federal education programs by the Secretary of Education;
(2) reviews the reallocation of existing appropriations and
the allocation of unobligated amounts appropriated for covered
Federal education programs to carry out section 3 of this Act;
(3) reviews the procedures established by the Secretary of
the Treasury to allow parents to use funds to pay for
educational expenses in accordance with section 3(c)(1);
(4) identifies the aggregate amount of deposits made to
School Freedom Accounts under section 3 for the school year,
stated separately for each local educational agency (based on
the residence of the eligible child) and identifying the State
in which the local educational agency is located;
(5) identifies additional uses of funds in a School Freedom
Account or Higher Education and Skills Obtainment Fund that
could benefit an eligible child;
(6) identifies the aggregate number of students who expend
funds from a School Freedom Account to--
(A) attend a private school;
(B) attend a public charter school;
(C) homeschool; and
(D) attend educational classes outside the home,
including a micro school or learning pod;
(7) identifies the aggregate amount expended from School
Freedom Accounts, other than for eligible uses in section
3(c)(1);
(8) identifies the aggregate amount in School Freedom
Accounts that rollover to the next school year;
(9) identifies the aggregate number of School Freedom
Accounts that convert to Higher Education and Skills Obtainment
Funds, and the aggregate amount in accounts that are converted;
(10) identifies the aggregate number of students that
expend amounts from a Higher Education and Skills Obtainment
Fund to pay costs associated with attendance of an institution
of higher education or with career and technical education;
(11) reviews the Secretary of the Treasury's efforts to
track Federal funds deposited into School Freedom Accounts;
(12) identifies the aggregate amount returned to the
Treasury in the fiscal year following the termination of Higher
Education and Skills Obtainment Funds; and
(13) includes any other matter the Comptroller General of
the United States determines important to assessing and
improving the implementation or administration of the School
Freedom Account or Higher Education and Skills Obtainment Fund.
SEC. 8. DEFINITIONS.
In this Act:
(1) The term ``career and technical education'' has the
meaning given that term in section 3 of the Carl D. Perkins
Career and Technical Education Act of 2006 (20 U.S.C. 2302).
(2) The terms ``child'', ``elementary school'', ``local
educational agency'', ``parent'', ``secondary school'', and
``State'' have the meanings given those terms in section 8101
of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801).
(3) The term ``cost of attendance'' has the meaning given
that term in section 472 of the Higher Education Act of 1965
(20 U.S.C. 1087ll).
(4) The term ``covered Federal education program'' means an
applicable program (as defined in section 400 of the General
Education Provisions Act (20 U.S.C. 1221)) the primary purpose
of which is to support elementary or secondary education,
except such term does not include the School Freedom Account
program authorized under this Act.
(5) The term ``eligible child'' means a child--
(A) who is eligible to enroll in a public
elementary or secondary school for a school year;
(B) who has been issued a social security number by
the Social Security Administration; and
(C) whose parent or guardian has been issued a
social security number by the Social Security
Administration.
(6) The term ``institution of higher education'' has the
meaning given that term in section 102 of the Higher Education
Act of 1965 (20 U.S.C. 1002).
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