Early Learning Act of 2015

Summary: Early Learning Act of 2015  This bill requires the Department of Education (ED) to make annual awards from the Early Education Trust Fund, established in this bill, to state pre-kindergarten agencies according to a formula based on pre-kindergarten enrollment in the state. To be eligible for an award, a state must provide assurances that: (1) the award will be used only to support pre-kindergarten programs, (2) the state will not expend less for pre-kindergarten programs in the award period than it did in the previous year, and (3) each resident in the state who is four years old on October 1 of the award year has the opportunity to enroll in a free pre-kindergarten program. This bill amends the Internal Revenue Code to impose a surtax, equal to 1.5% of a taxpayer's adjusted gross income as exceeds $500,000, to support the fund. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Early Learning Act of 2015''.

SEC. 2. EXPENDITURES FOR PRE-KINDERGARTEN EDUCATION.

    (a) In General.--Not later than August 15 of each year, beginning 
with 2018, from amounts in the Early Education Trust Fund established 
by section 3, the Secretary of Education (in this section referred to 
as the ``Secretary'') shall award to the State pre-kindergarten agency 
for each State the amount estimated under subsection (b)(1)(A) for such 
State and year, subject to paragraphs (1)(A) and (2) of subsection (d).
    (b) Conditions for Awards.--Amounts may only be awarded under 
subsection (a) to a State pre-kindergarten agency for a State for a 
year if the head of such agency--
            (1) submits to the Secretary--
                    (A) not later than June 15 of such year, an 
                estimate of the amount described in paragraph (1) of 
                subsection (c) for such State and year; and
                    (B) not later than November 1 of such year, for 
                each enrolled 4-year-old in such State, the number of 
                hours for which such 4-year-old is enrolled at a pre-
                kindergarten program in such State for the school year 
                beginning in such year; and
            (2) provides such assurances as the Secretary may require 
        that--
                    (A) such amounts will be used only to support pre-
                kindergarten programs;
                    (B) the State will expend for pre-kindergarten 
                programs, during the 1-year period beginning on August 
                15 of such year not less than the amount expended by 
                the State for such programs during the 1-year period 
                beginning on August 15 of the previous year; and
                    (C) each resident of the State who is 4 years old 
                on October 1 of such year has the opportunity to enroll 
                in a free pre-kindergarten program.
    (c) Amount Described.--
            (1) In general.--The amount described in this paragraph is, 
        with respect to a State and a year, the sum of the products 
        determined under paragraph (2) for all enrolled 4-year-olds in 
        the State for the year.
            (2) Product determined.--The product determined under this 
        paragraph for an enrolled 4-year-old for a year is the product 
        of--
                    (A) $5 (adjusted annually by the Secretary of 
                Education for inflation, beginning with 2019, on the 
                basis of the consumer price index for all urban 
                consumers); and
                    (B) the number of hours reported under subsection 
                (b)(1)(B) for such enrolled 4-year-old for the school 
                year beginning in such year (not to exceed 1,600).
    (d) Adjustments to Payments.--
            (1) Reconciliation of payment.--For each State pre-
        kindergarten agency for a year:
                    (A) Overpayment.--If the amount awarded under 
                subsection (a) is greater than the amount described in 
                paragraph (1) of subsection (c), the amount to be 
                awarded under subsection (a) for the following year 
                shall be reduced by the difference between such 
                amounts.
                    (B) Underpayment.--If the amount awarded under 
                subsection (a) is less than the amount described in 
                paragraph (1) of subsection (c), not later than 
                December 31 of such year, from amounts in the Early 
                Education Trust Fund established by section 3, the 
                Secretary shall award to such State pre-kindergarten 
                agency the difference between such amounts, subject to 
                paragraph (2).
            (2) Insufficient funds.--If, as of a date, the amounts 
        available to be awarded on such date from the Early Education 
        Trust Fund are less than the amounts to be awarded on such date 
        under this section without regard to this paragraph, the 
        Secretary shall ratably reduce the amounts to be awarded.
    (e) Definitions.--In this section:
            (1) Enrolled 4-year-old.--The term ``enrolled 4-year-old'' 
        means, with respect to a year, an individual who, as of October 
        1 of such year--
                    (A) is 4 years old; and
                    (B) is enrolled at a pre-kindergarten program for 
                at least 900 hours for the school year beginning in 
                such year.
            (2) Pre-kindergarten program.--The term ``pre-kindergarten 
        program'' means a program that is--
                    (A) offered by a nonprofit or governmental entity;
                    (B) designed to provide pre-kindergarten education 
                for at least 900 hours during a school year; and
                    (C) accredited by the State pre-kindergarten agency 
                for the State in which such program operates or by 
                another accrediting entity approved by such State.
            (3) State pre-kindergarten agency.--The term ``State pre-
        kindergarten agency'' means, with respect to a State, the 
        agency responsible for oversight of pre-kindergarten education 
        in the State.

SEC. 3. EARLY EDUCATION TRUST FUND.

    (a) Creation of Trust Fund.--There is hereby established in the 
Treasury of the United States a trust fund to be known as the ``Early 
Education Trust Fund'', consisting of such amounts as may be 
appropriated or credited to such Trust Fund as provided in this 
section.
    (b) Transfer to Trust Fund of Amounts Equivalent to Certain 
Taxes.--There are hereby appropriated to the Early Education Trust Fund 
amounts equivalent to the taxes received in the Treasury under section 
59A of the Internal Revenue Code of 1986 (relating to surtax for Early 
Education Trust Fund).
    (c) Expenditures From Trust Fund.--Amounts in the Early Education 
Trust Fund shall be available, without further appropriation, to carry 
out section 2.
    (d) Administrative Provisions.--
            (1) Transfer of amounts.--The amounts appropriated by 
        subsection (b) shall be transferred at least monthly from the 
        general fund of the Treasury to the Early Education Trust Fund 
        on the basis of estimates made by the Secretary of the Treasury 
        of the amounts referred to in such subsection. Proper 
        adjustments shall be made in the amounts subsequently 
        transferred to the extent prior estimates were in excess of or 
        less than the amounts required to be transferred.
            (2) Management.--The Early Education Trust Fund shall be 
        managed under the rules specified in section 9602 of the 
        Internal Revenue Code of 1986.

SEC. 4. SURTAX FOR EARLY EDUCATION TRUST FUND.

    (a) In General.--Subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 is amended by inserting after part VI the following new 
part:

           ``PART VII--SURTAX FOR EARLY EDUCATION TRUST FUND

``Sec. 59A. Surtax for Early Education Trust Fund.

``SEC. 59A. SURTAX FOR EARLY EDUCATION TRUST FUND.

    ``(a) Imposition of Tax.--In the case of a taxpayer other than a 
corporation and an estate or trust, there is hereby imposed (in 
addition to any other tax imposed by this subtitle) a tax equal to 1.5 
percent of so much of the adjusted gross income of the taxpayer as 
exceeds $500,000.
    ``(b) Not Treated as Tax Imposed by This Chapter for Certain 
Purposes.--The tax imposed under this section shall not be treated as 
tax imposed by this chapter for purposes of determining the amount of 
any credit under this chapter or for purposes of section 55.''.
    (b) Clerical Amendment.--The table of parts for subchapter A of 
chapter 1 of such Code is amended by inserting after the item relating 
to part VI the following new item:

         ``Part VII. Surtax for Early Education Trust Fund.''.

    (c) Section 15 Not To Apply.--The amendment made by subsection (a) 
shall not be treated as a change in a rate of tax for purposes of 
section 15 of the Internal Revenue Code of 1986.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2016.