SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Native American Education 
Opportunity Act''.

SEC. 2. PURPOSE.

    The purpose of this Act is to provide an additional education 
option in certain States for Native American students served by schools 
funded by the Bureau of Indian Affairs.

SEC. 3. NATIVE AMERICAN EDUCATION OPPORTUNITY PROGRAM.

    Part B of title XI of the Education Amendments of 1978 (25 U.S.C. 
2000 et seq.) is amended--
            (1) by redesignating section 1141 as section 1142; and
            (2) by inserting after section 1140 the following:

``SEC. 1141. BUREAU FUNDING OF STATE-BASED EDUCATION SAVINGS ACCOUNT 
              PROGRAMS.

    ``(a) Program Authorized.--
            ``(1) Bureau reimbursements.--From amounts made available 
        to carry out sections 1127 and 1130, the Secretary shall, for 
        the 2017-2018 school year and each subsequent school year, 
        reimburse a State with an education savings account program for 
        each grant that the State has made to an education savings 
        account for an ESA eligible student for such school year, in 
        accordance with subsection (b).
            ``(2) Applicability.--This section shall apply with respect 
        to ESA eligible students who have submitted their application 
        for an education savings account program to the State in which 
        the student lives or in which the reservation of the student is 
        located (as the case may be) on or after January 1, 2017.
    ``(b) Amount of Reimbursements.--
            ``(1) Amount.--The amount of the reimbursement made by the 
        Secretary under this subsection for an ESA eligible student 
        participating in an education savings account program for a 
        school year shall be the lesser of--
                    ``(A) the amount of the grant provided by the State 
                for the education savings account of the ESA eligible 
                student for the applicable school year; and
                    ``(B) 90 percent of the amount that the Secretary 
                would provide to a Bureau-funded school on behalf of 
                such student for the applicable school year under 
                sections 1127 and 1130.
            ``(2) Notification to states if additional reimbursement is 
        available.--In any case where the reimbursement available for 
        an ESA eligible student for a school year exceeds the amount of 
        the grant provided by the State under the education savings 
        account program, the Secretary shall notify the State of the 
        higher amount of reimbursement that the student could have 
        qualified for under paragraph (1)(B) for such school year.
            ``(3) Timing of reimbursements.--
                    ``(A) Notification.--A State that provides an 
                education savings account program grant to an ESA 
                eligible student and desires a reimbursement under this 
                subsection shall submit a request for reimbursement and 
                notify the Secretary that includes the amount of the 
                grant.
                    ``(B) Reimbursement.--Not later than 30 days after 
                the Secretary receives a request for reimbursement 
                under subparagraph (A) from a State, the Secretary will 
                reimburse a State for the grant.
            ``(4) Return of overpayments.--A State shall return to the 
        Secretary any overpayment made to the State under this section 
        by not later than 30 days after the final determination that 
        the State was overpaid pursuant to this section.
    ``(c) Affect on Allotments.--
            ``(1) In general.--For purposes of any calculation 
        regarding the total number of eligible Indian students under 
        section 1127, the Secretary shall include all ESA eligible 
        students who participate in an education savings account 
        program.
            ``(2) Availability of remainder.--In any case where the 
        reimbursement provided by the Secretary under subsection (b)(1) 
        is less than the amount that would be provided for the student 
        under subsection (b)(1)(B), the remaining amount shall remain 
        available to the Secretary to be used in accordance with this 
        part.
    ``(d) Information.--The Secretary shall work with Bureau-funded 
schools located in each State with an education savings account program 
to inform all parents of ESA eligible students about the education 
savings account program of the State and the students' opportunity to 
participate in the program.
    ``(e) Rule of Construction.--The reimbursement provided through an 
education savings account program on behalf of an ESA eligible student 
under this section shall be considered assistance to the student and 
shall not be considered assistance to a school that enrolls the 
eligible student or any other educational service provider from which 
the eligible student receives services. The amounts provided on behalf 
of an ESA eligible student under this section shall not be treated as 
income of the parents for purposes of Federal tax laws or for 
determining eligibility for any other Federal program.
    ``(f) Definitions.--In this section:
            ``(1) ESA eligible student.--
                    ``(A) In general.--The term `ESA eligible student' 
                means an individual who--
                            ``(i) is--
                                    ``(I) an elementary school or 
                                secondary school student who attended a 
                                Bureau-funded school in the semester 
                                preceding the date on which the student 
                                first applies for an education savings 
                                account program; or
                                    ``(II) a child who will be eligible 
                                to attend a Bureau-funded school for 
                                kindergarten or any other elementary 
                                school grade in the next semester that 
                                will start after the date on which the 
                                student first applies for an education 
                                savings account program;
                            ``(ii) lives on the reservation of a tribe;
                            ``(iii) will not be attending a Bureau-
                        funded school, or other public elementary 
                        school or secondary school, for the school year 
                        for which the student is participating in an 
                        education savings account program of a State; 
                        and
                            ``(iv) meets any eligibility requirements 
                        of the State education savings account program 
                        in which the student will participate.
                    ``(B) Period of eligibility.--A student who meets 
                the requirements of clause (i) of subparagraph (A) for 
                a school year shall be deemed to meet the requirements 
                of such clause until the date on which the student 
                graduates high school or reaches the age of 21 years, 
                whichever occurs first.
            ``(2) Education savings account program.--The term 
        `education savings account program' means an educational option 
        offered in a State to families of elementary and secondary 
        school students in which the State provides a grant to an 
        account controlled by a parent from which the parent may 
        purchase goods and services needed for the education of the 
        student.
            ``(3) Parent.--The term `parent' means a parent, guardian, 
        custodian, or other person--
                    ``(A) with the authority to act on behalf of an ESA 
                eligible student; and
                    ``(B) who is a resident of the State where the ESA 
                eligible student resides.''.
Native American Education Opportunity Act This bill amends the Education Amendments of 1978 to require the Bureau of Indian Affairs (BIA) to reimburse states for&nbsp;grants made to education savings accounts for eligible students who: (1)&nbsp;attended or will be eligible to attend a BIA-funded school, (2) live on the reservation of a tribe, (3) will not be attending a BIA-funded school or other public elementary or secondary school for the applicable school year, and (4) meet applicable eligibility requirements. From education savings accounts, parents may purchase goods and services related to students' educational needs.
Native American Education Opportunity Act