To direct the Secretary of Education to conduct a study of the relative value of General Equivalency Diplomas and a review of policies and procedures to determine how the Department of Education can better serve the Nation's educational needs, and for other purposes.

Summary: General Equivalency Diploma Reform and Improvement Act of 2001 - Directs the Secretary of Education to study, review, and report to Congress on the relative value of General Equivalency Diplomas (GEDs) and Department of Education policies and procedures to determine how the Department can reform in order to: (1) cooperate with other Federal agencies, States, and local educational agencies to improve educational opportunities and promote high quality education for all, including pregnant teenagers and young mothers; and (2) encourage school dropouts to return to school, those working to obtain GEDs to enter colleges, and the restructuring of the GED to make it more relevant to current high educational standards.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``General Equivalency Diploma Reform 
and Improvement Act of 2001''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Since the mid-1970s, the Federal Government and many 
        State and local agencies have encouraged Americans to seek a 
        General Equivalency Diploma (GED) rather than a traditional 
        high school degree.
            (2) As the economy now demands higher skilled workers, the 
        General Equivalency Diploma is no longer an adequate 
        alternative to a traditional high school degree.
            (3) Economists Stephen Cameron and James Heckman have 
        studied individuals with exam-certified high school equivalents 
        and have made each of the following conclusions:
                    (A) Individuals with exam-certified high school 
                equivalents are statistically indistinguishable in the 
                labor market from high school dropouts.
                    (B) Individuals with exam-certified equivalents and 
                high school dropouts have comparably poor wages, 
                earnings, hours of work, employment experiences, and 
                job tenure.
                    (C) Measured by their ability and in their labor 
                market status, individuals who have a General 
                Equivalency Diploma are closer to high school dropouts 
                than individuals with traditional high school degrees.
                    (D) Even after controlling for ability, men with 
                General Equivalency Diplomas have inferior labor market 
                status than individuals with traditional high school 
                degrees.
                    (E) Individuals with General Equivalency Diplomas 
                have lower employment rates and less work experience 
                than individuals with traditional high school degrees.
                    (F) Both anecdotal and empirical evidence suggests 
                that employers and the military discount the General 
                Equivalency Diploma.
                    (G) There is no cheap substitute for classroom 
                instruction and education programs that focus on 
                obtaining a General Equivalency Diploma as an end in 
                itself are misguided.
            (4) Although the rates of teenage pregnancy and early 
        childbearing in the United States have decreased somewhat 
        recently, approximately 3,941,553 adolescent girls between the 
        ages of 10 and 17 gave birth in 1999, and the number of births 
        for 2000 has yet to be determined.
            (5) While, as a Nation, we should continue to make efforts 
        to prevent unintended pregnancies, we must also provide 
        pregnant teenagers and young mothers with educational 
        opportunities to help them become productive citizens and good, 
        caring parents.
            (6) No Americans, including pregnant teenagers, young 
        mothers, and young fathers, should be provided with a second-
        rate, inferior education.

SEC. 3. STUDY AND REVIEW OF POLICIES.

    (a) In General.--The Secretary of Education shall--
            (1) conduct a study to review the value of a General 
        Equivalency Diploma (GED) relative to a traditional high school 
        degree; and
            (2) review the policies and procedures of the Department of 
        Education to determine means by which the Department can reform 
        such policies and procedures to allow the Department--
                    (A) to cooperate with other Federal agencies to 
                improve the educational opportunities offered to all 
                Americans, including pregnant teenagers and young 
                mothers;
                    (B) to work with States and local educational 
                agencies to promote high quality education for all 
                Americans, including pregnant teenagers and young 
                mothers;
                    (C) to encourage individuals, including pregnant 
                teenagers and young mothers, who already have dropped 
                out of school to return to school to receive additional 
                training;
                    (D) to encourage individuals currently working to 
                obtain a General Equivalency Diploma to enter community 
                or four-year colleges in order to improve their skills 
                and enhance the value of their education credentials; 
                and
                    (E) to encourage the restructuring the General 
                Equivalency Diploma to make it more relevant to current 
                high educational standards.
    (b) Report.--Not later than 2 years after the date of enactment of 
this Act, the Secretary shall transmit to Congress a report 
containing--
    (1) the results of the study conducted under this section;
    (2) the results of the review conducted under this section; and
    (3) any recommendations for reform.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this Act 
$2,000,000 for fiscal years 2002 and 2003.