To amend title VIII of the Intelligence Authorization Act for Fiscal Year 1992, as amended, to revise the funding mechanism for scholarships, fellowships, and grants to institutions under the National Security Education Program, and for other purposes.

Summary: National Security Education Program Enhancement Act of 2004 - Amends the Intelligence Authorization Act for Fiscal Year 1992 to require the Director of Central Intelligence (DCI) to transfer specified amounts to the Secretary of Education from Intelligence Community Management (ICM) appropriations to carry out national security education scholarship, fellowship, and grant programs.

Revises post-education service obligations for such programs to: (1) allow a delay in the commencement of service obligations; (2) require only a one-year obligation for scholarship recipients; and (3) allow service obligations to be served with a variety of Federal agencies.

Requires the DCI to transfer ICM funds to carry out grant programs for the National Flagship Language Initiative (an Initiative for achieving advanced proficiency in languages designated as critical to national security).

Amends the David L. Boren National Security Education Act of 1991 to require students receiving training under the Initiative to enter into service agreements with the intelligence community element providing such training or reimburse the United States.

Directs the Secretary of Defense to take steps to increase the number of qualified educational institutions receiving Initiative grants.

Authorizes the Secretary of Defense to award scholarships to U.S. citizens who are native speakers of languages designated as critical and not proficient at a professional level in English to enable them to pursue English studies. Requires recipients to enter into service agreements. Requires the DCI to transfer ICM funds to carry out such program.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Security Education Program 
Enhancement Act of 2004''.

SEC. 2. PROVISION FOR ANNUAL AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Title VIII of the Intelligence Authorization Act 
for Fiscal Year 1992 (Public Law 102-183; 105 Stat. 1271), as amended 
by section 311(c) of the Intelligence Authorization Act for Fiscal Year 
1994 (Public Law 103-178; 107 Stat. 2037), is amended by adding at the 
end of section 810 the following new subsection:
    ``(c) Funding From Intelligence Community Management Account for 
Fiscal Years Beginning With Fiscal Year 2005.--In addition to amounts 
that may be made available to the Secretary under the Fund for a fiscal 
year, the Director of Central Intelligence shall transfer to the 
Secretary from amounts appropriated for the Intelligence Community 
Management Account for each fiscal year, beginning with fiscal year 
2005, $8,000,000, to carry out the scholarship, fellowship, and grant 
programs under subparagraphs (A), (B), and (C), respectively, of 
section 802(a)(1).''.
    (b) Conforming Amendment.--Section 802(a)(2) of such Act (50 U.S.C. 
1902(a)(2)) is amended in the matter preceding subparagraph (A) by 
inserting ``or from an appropriation pursuant to the authorization 
under section 810(c)''.

SEC. 3. MODIFICATION OF OBLIGATED SERVICE REQUIREMENTS UNDER NATIONAL 
              SECURITY EDUCATION PROGRAM.

    (a) In General.--Subsection (b)(2) of section 802 of title VIII of 
the Intelligence Authorization Act for Fiscal Year 1992 (Public Law 
102-183; 105 Stat. 1273), as amended by section 925(a) of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 117 
Stat. 1578), is amended by striking subparagraphs (A) and (B), and 
inserting the following:
                    ``(A) in the case of a recipient of a scholarship, 
                as soon as practicable but in no case later than three 
                years after the completion by the recipient of the 
                study for which scholarship assistance was provided 
                under the program, the recipient shall work for a 
                period of one year--
                            ``(i) in a national security position that 
                        the Secretary certifies is appropriate to use 
                        the unique language and region expertise 
                        acquired by the recipient pursuant to such 
                        study in the Department of Defense, in any 
                        element of the intelligence community, in the 
                        Department of Homeland Security, or in the 
                        Department of State; or
                            ``(ii) in such a position in any other 
                        Federal department or agency not referred to in 
                        clause (i) if the recipient demonstrates to the 
                        Secretary that no position is available in a 
                        Federal department or agency specified in 
                        clause (i); or
                    ``(B) in the case of a recipient of a fellowship, 
                as soon as practicable but in no case later than two 
                years after the completion by the recipient of the 
                study for which fellowship assistance was provided 
                under the program, the recipient shall work for a 
                period equal to the duration of assistance provided 
                under the program, but in no case less than one year--
                            ``(i) in a position described in 
                        subparagraph (A)(i) that the Secretary 
                        certifies is appropriate to use the unique 
                        language and region expertise acquired by the 
                        recipient pursuant to such study; or
                            ``(ii) in such a position in any other 
                        Federal department or agency not referred to in 
                        clause (i) if the recipient demonstrates to the 
                        Secretary that no position is available in a 
                        Federal department or agency specified in 
                        clause (i); and''.
    (b) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out the amendment made by subsection (a). In 
prescribing such regulations, the Secretary shall establish standards 
that recipients of scholarship and fellowship assistance under the 
program under such section 802 are required to demonstrate to satisfy 
the requirement of a good faith effort to gain employment as required 
under subparagraphs (A) and (B) of subsection (b)(2) of such section.
    (c) Applicability.--(1) The amendment made by subsection (a) shall 
apply with respect to service agreements entered into under the David 
L. Boren National Security Education Act of 1991 on or after the date 
of the enactment of this Act.
    (2) The amendment made by subsection (a) shall not affect the 
force, validity, or terms of any service agreement entered into under 
the David L. Boren National Security Education Act of 1991 before the 
date of the enactment of this Act that is in force as of that date.

SEC. 4. IMPROVEMENTS TO THE NATIONAL FLAGSHIP LANGUAGE INITIATIVE.

    (a) Increase in Annual Funding.--Title VIII of the Intelligence 
Authorization Act for Fiscal Year 1992 (Public Law 102-183; 105 Stat. 
1271), as amended by section 311(c) of the Intelligence Authorization 
Act for Fiscal Year 1994 (Public Law 103-178; 107 Stat. 2037) and by 
section 333(b) of the Intelligence Authorization Act for Fiscal Year 
2003 (Public Law 107-306; 116 Stat. 2397), is amended by striking 
section 811 and inserting the following new section 811:

``SEC. 811. FUNDING FOR THE NATIONAL FLAGSHIP LANGUAGE INITIATIVE.

    ``(a) Authorization of Appropriations for Fiscal Years 2003 and 
2004.--In addition to amounts that may be made available to the 
Secretary under the Fund for a fiscal year, there is authorized to be 
appropriated to the Secretary for each fiscal year, beginning with 
fiscal year 2003, $10,000,000, to carry out the grant program for the 
National Flagship Language Initiative under section 802(a)(1)(D).
    ``(b) Funding From Intelligence Community Management Account for 
Fiscal Years Beginning With Fiscal Year 2005.--In addition to amounts 
that may be made available to the Secretary under the Fund for a fiscal 
year, the Director of Central Intelligence shall transfer to the 
Secretary from amounts appropriated for the Intelligence Community 
Management Account for each fiscal year, beginning with fiscal year 
2005, $12,000,000, to carry out the grant program for the National 
Flagship Language Initiative under section 802(a)(1)(D).
    ``(c) Availability of Appropriated Funds.--Amounts made available 
under this section shall remain available until expended.''.
    (b) Requirement for Employment Agreements.--(1) Section 802(i) of 
the David L. Boren National Security Education Act of 1991 (50 U.S.C. 
1902(i)) is amended by adding at the end the following new paragraph:
    ``(5)(A) In the case of an undergraduate or graduate student that 
participates in training in programs under paragraph (1), the student 
shall enter into an agreement described in subsection (b), other than 
such a student who has entered into such an agreement pursuant to 
subparagraph (A)(ii) or (B)(ii) of section 802(a)(1).
    ``(B) In the case of a student who is an employee of an agency or 
department of the Federal Government that participates in training in 
programs under paragraph (1), the employee shall agree in writing--
            ``(i) to continue in the service of the agency or 
        department of the Federal Government employing the student for 
        the period of such training;
            ``(ii) to continue in the service of such agency or 
        department employing the student following completion of such 
        training for a period of two years for each year, or part of 
        the year, of such training;
            ``(iii) to reimburse the United States for the total cost 
        of such training (excluding the student's pay and allowances) 
        provided to the student if, before the completion by the 
        student of the training, the employment of the student by the 
        agency or department is terminated due to misconduct by the 
        recipient or by the recipient voluntarily; and
            ``(iv) to reimburse the United States if, after completing 
        such training, the employment of the student by the agency or 
        department is terminated either by the agency or department due 
        to misconduct by the student or by the student voluntarily, 
        before the completion by the student of the period of service 
        required in clause (ii), in an amount that bears the same ratio 
        to the total cost of the training (excluding the student's pay 
        and allowances) provided to the student as the unserved portion 
        of such period of service bears to the total period of service 
        under clause (ii).
    ``(C) Subject to subparagraph (D), the obligation to reimburse the 
United States under an agreement under subparagraph (A) is for all 
purposes a debt owing the United States.
    ``(D)(i) A discharge in bankruptcy under title 11, United States 
Code, shall not release a person from an obligation to reimburse the 
United States under an agreement under subparagraph (A) if the final 
decree of the discharge in bankruptcy is issued within five years after 
the last day of the combined period of service obligation described in 
clauses (i) and (ii) of subparagraph (B).
    ``(ii) The head of an element of the intelligence community may 
release a recipient, in whole or in part, from the obligation to 
reimburse the United States under an agreement under subparagraph (A) 
when, in the discretion of the head of the element, the head of the 
element determines that equity or the interests of the United States so 
require.''.
    (2) The amendment made by paragraph (1) shall apply to training 
that begins on or after the date that is 90 days after the date of the 
enactment of this Act.
    (c) Increase in the Number of Participating Educational 
Institutions.--The Secretary of Defense shall take such steps as the 
Secretary determines will increase the number of qualified educational 
institutions that receive grants under the National Flagship Language 
Initiative to establish, operate, or improve activities designed to 
train students in programs in a range of disciplines to achieve 
advanced levels of proficiency in those foreign languages that the 
Secretary identifies as being the most critical in the interests of the 
national security of the United States.
    (d) Clarification of Authority to Support Studies Abroad.--
Educational institutions that receive grants under the National 
Flagship Language Initiative may support students who pursue total 
immersion foreign language studies overseas of foreign languages that 
are critical to the national security of the United States.

SEC. 5. ESTABLISHMENT OF SCHOLARSHIP PROGRAM FOR ENGLISH LANGUAGE 
              STUDIES FOR HERITAGE COMMUNITY CITIZENS OF THE UNITED 
              STATES WITHIN THE NATIONAL SECURITY EDUCATION PROGRAM.

    (a) Scholarship Program for English Language Studies for Heritage 
Community Citizens of the United States.--(1) Subsection (a)(1) of 
section 802 of the David L. Boren National Security Education Act of 
1991 (50 U.S.C. 1902) is amended--
            (A) by striking ``and'' at the end of subparagraph (C);
            (B) by striking the period at the end of subparagraph (D) 
        and inserting ``; and''; and
            (C) by adding at the end the following new subparagraph:
                    ``(E) awarding scholarships to students who--
                            ``(i) are United States citizens who--
                                    ``(I) are native speakers (commonly 
                                referred to as heritage community 
                                residents) of a foreign language that 
                                is identified as critical to the 
                                national security interests of the 
                                United States who should be actively 
                                recruited for employment by Federal 
                                security agencies with a need for 
                                linguists; and
                                    ``(II) are not proficient at a 
                                professional level in the English 
                                language with respect to reading, 
                                writing, and interpersonal skills 
                                required to carry out the national 
                                security interests of the United 
                                States, as determined by the Secretary,
                        to enable such students to pursue English 
                        language studies at an institution of higher 
                        education of the United States to attain 
                        proficiency in those skills; and
                            ``(ii) enter into an agreement to work in a 
                        national security position or work in the field 
                        of education in the area of study for which the 
                        scholarship was awarded in a similar manner (as 
                        determined by the Secretary) as agreements 
                        entered into pursuant to subsection 
                        (b)(2)(A).''.
    (2) The matter following subsection (a)(2) of such section is 
amended--
            (A) in the first sentence, by inserting ``or for the 
        scholarship program under paragraph (1)(E)'' after ``under 
        paragraph (1)(D) for the National Flagship Language Initiative 
        described in subsection (i)''; and
    (B) by adding at the end the following: ``For the authorization of 
appropriations for the scholarship program under paragraph (1)(E), see 
section 812.''.
    (3) Section 803(d)(4)(E) of such Act (50 U.S.C. 1903(d)(4)(E)) is 
amended by inserting before the period the following: ``and section 
802(a)(1)(E) (relating to scholarship programs for advanced English 
language studies by heritage community residents).''.
    (b) Funding.--The David L. Boren National Security Education Act of 
1991 (50 U.S.C. 1901 et seq.) is amended by adding at the end the 
following new section:

``SEC. 812. FUNDING FOR SCHOLARSHIP PROGRAM FOR CERTAIN HERITAGE 
              COMMUNITY RESIDENTS.

    ``(a) Funding From Intelligence Community Management Account.--In 
addition to amounts that may be made available to the Secretary under 
the Fund for a fiscal year, the Director of Central Intelligence shall 
transfer to the Secretary from amounts appropriated for the 
Intelligence Community Management Account for each fiscal year, 
beginning with fiscal year 2005, $4,000,000, to carry out the 
scholarship programs for English language studies by certain heritage 
community residents under section 802(a)(1)(E).
    ``(b) Availability of Funds.--Amounts made available under 
subsection (a) shall remain available until expended.''.