SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Dollars to the Classroom Act''.

SEC. 2. DIRECT AWARDS OF CERTAIN EDUCATION FUNDING TO STATES.

    (a) Direct Awards of Certain Education Funding.--
            (1) In general.--Notwithstanding any other provision of 
        law, for each fiscal year the Secretary shall award the total 
        amount of funds described in paragraph (2) directly to States 
        in accordance with this subsection.
            (2) Applicable funding.--The total amount of funds referred 
        to in paragraph (1) are all funds not used to carry out 
        paragraph (6)(B) for the fiscal year that are appropriated for 
        the Department of Education for the fiscal year to carry out 
        programs or activities under the following provisions of law:
                    (A) Title III of the Goals 2000: Educate America 
                Act (20 U.S.C. 5881 et seq.).
                    (B) Title IV of the Goals 2000: Educate America Act 
                (20 U.S.C. 5911 et seq.).
                    (C) Title VI of the Goals 2000: Educate America Act 
                (20 U.S.C. 5951).
                    (D) The Educational Research, Development, 
                Disseminations, and Improvement Act of 1994 (20 U.S.C. 
                6001 et seq.).
                    (E) Titles II, III, and IV of the School-to-Work 
                Opportunities Act of 1994 (20 U.S.C. 6121 et seq., 6171 
                et seq., and 6191 et seq.).
                    (F) Part B of title I of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 6361 et 
                seq.).
                    (G) Section 1502 of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6492).
                    (H) Part A of title II of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 6621 et 
                seq.).
                    (I) Part B of title II of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 6641 et 
                seq.).
                    (J) Title III of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6801 et seq.) (other 
                than section 3132 of such title).
                    (K) Section 3132 of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6842 et seq.).
                    (L) Subpart 1 of part A of title IV of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 7111 et seq.).
                    (M) Subpart 2 of part A of title IV of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 7131 et seq.).
                    (N) Part A of title V of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 7201 et 
                seq.).
                    (O) Part B of title V of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 7231 et 
                seq.).
                    (P) Title VI of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 7311 et seq.).
                    (Q) Part B of title IX of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 7901 et 
                seq.).
                    (R) Part C of title IX of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 7931 et 
                seq.).
                    (S) Part A of title X of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 8001 et 
                seq.).
                    (T) Part B of title X of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 8031 et 
                seq.).
                    (U) Part D of title X of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 8091 et 
                seq.).
                    (V) Part F of title X of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 8141 et 
                seq.).
                    (W) Part G of title X of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 8161 et 
                seq.).
                    (X) Part I of title X of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 8241 et 
                seq.).
                    (Y) Part J of title X of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 8271 et 
                seq.).
                    (Z) Part K of title X of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 8331 et 
                seq.).
                    (AA) Part L of title X of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 8351 et 
                seq.).
                    (BB) Part A of title XIII of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 8621 et 
                seq.).
                    (CC) Part C of title XIII of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 8671 et 
                seq.).
                    (DD) Part B of title VII of the Stewart B. McKinney 
                Homeless Assistance Act (42 U.S.C. 11421 et seq.).
            (3) Timelines.--
                    (A) Census determination.--
                            (i) In general.--Not later than 21 days 
                        after the beginning of an academic year, each 
                        State shall conduct a census to determine the 
                        number of kindergarten through grade 12 
                        students in the State for the academic year.
                            (ii) Submission.--Each State shall submit 
                        the number described in clause (i) to the 
                        Secretary not later than February 1 of the 
                        academic year.
                    (B) Publication.--The Secretary shall publish in 
                the Federal Register not later than March 15 of each 
                fiscal year the amount each State shall receive under 
                this subsection for the succeeding fiscal year.
                    (C) Disbursal.--The Secretary shall disburse the 
                amount awarded to a State under this subsection for a 
                fiscal year not later than July 1 of the fiscal year.
            (4) Determination of award.--From the total amount made 
        available under paragraph (1) and not used to carry out 
        paragraph (6)(B), the Secretary, using the information provided 
        under paragraph (3), shall award to each State an amount that 
        bears the same relation to the total amount as the number of 
        kindergarten through grade 12 students in the State for the 
        academic year preceding the fiscal year bears to the total 
        number of all such students in all States for the academic 
        year.
            (5) Penalty.--If the Secretary determines that a State has 
        knowingly submitted false information under paragraph (3) for 
        the purpose of gaining additional funds under paragraph (1), 
        then the State shall be fined an amount equal to twice the 
        difference between the amount the State received under this 
        subsection, and the correct amount the State would have 
        received if the State had submitted accurate information under 
        paragraph (3).
            (6) Hold harmless.--
                    (A) In general.--No State shall receive an award 
                under this subsection--
                            (i) for fiscal year 2000 in an amount that 
                        is less than the amount the State would have 
                        received to carry out programs or activities 
                        under the provisions of law described in 
                        subparagraphs (A), (F), (I), (J), (L), (P) and 
                        (DD) of paragraph (2) for fiscal year 2000;
                            (ii) for fiscal year 2001 in an amount that 
                        is less than 95 percent of the minimum amount 
                        the State is eligible to receive under clause 
                        (i) for fiscal year 2000;
                            (iii) for fiscal year 2002 in an amount 
                        that is less than 90 percent of the minimum 
                        amount the State is eligible to receive under 
                        clause (ii) for fiscal year 2001;
                            (iv) for fiscal year 2003 in an amount that 
                        is less than 85 percent of the minimum amount 
                        the State is eligible to receive under clause 
                        (iii) for fiscal year 2002; and
                            (v) for fiscal year 2004 in an amount that 
                        is less than 80 percent of the minimum amount 
                        the State is eligible to receive under clause 
                        (iv) for fiscal year 2003.
                    (B) Multiyear awards.--The Secretary shall use 
                funds appropriated to carry out the programs or 
                activities under the provisions of law described in 
                paragraph (2) (other than subparagraphs (A), (F), (I), 
                (J), (L), (P) and (DD) of paragraph (2)) to make 
payments to eligible recipients under such provisions pursuant to any 
multiyear award made under such provisions prior to the date of 
enactment of this Act.
    (b) Payments and Availability.--
            (1) Payments.--Funds awarded to a State under this 
        subsection shall be paid to the Governor of the State.
            (2) Availability.--The Governor of the State shall make the 
        funds provided under this subsection available to the 
        individual or entity in the State that is responsible for the 
        State administration of Federal education funds pursuant to 
        State law.
    (c) Use of State Awards.--
            (1) In general.--From the amount made available to a State 
        under subsection (a) for a fiscal year, the State--
                    (A) shall use not more than 5 percent of the amount 
                to support programs or activities, for kindergarten 
                through grade 12 students, that the State determines 
                appropriate, of which the State shall distribute 20 
                percent of the 5 percent to local educational agencies 
                in the State to pay the administrative expenses of the 
                local educational agencies that are associated with the 
                activities and services assisted under this section; 
                and
                    (B) shall distribute not less than 95 percent of 
                the amount to local educational agencies in the State 
                for the fiscal year to enable the local educational 
                agencies to pay the costs of activities or services, 
                for kindergarten through grade 12 students, that--
                            (i) the local educational agencies 
                        determine appropriate; and
                            (ii) are provided in the classroom.
            (2) Classroom activities and services.--For the purpose of 
        paragraph (1)(B), the costs of activities and services provided 
        in the classroom--
                    (A) exclude the administrative expenses associated 
                with the activities and services; and
                    (B) subject to paragraph (1)(B)(i), include 
                nonadministrative expenses associated with statewide or 
                districtwide initiatives directly affecting classroom 
                learning.
    (d) Regulations.--
            (1) In general.--No head of a Federal department or agency 
        other than the Secretary may promulgate regulations under this 
        section.
            (2) Classroom activities and services.--The Secretary of 
        Education shall not issue any regulation regarding the type of 
        classroom activities or services that may be assisted under 
        this section.
    (e) Report.--Each Governor of a State receiving assistance under 
this section shall prepare and submit, not later than 60 days after the 
date of enactment of this Act, to the Committee on Labor and Human 
Resources of the Senate and the Committee on Education and the 
Workforce of the House of Representatives, a report that describes the 
classroom activities and services provided in the State under this 
section.

SEC. 3. TITLE I FUNDING.

    Section 1603 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6513) is amended by adding at the end the following:
    ``(d) Dollars to the Classroom.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, from the funds made available to a local educational 
        agency under this part for a fiscal year, not less than 95 
        percent of the funds shall be used for the costs of activities 
        and services that--
                    ``(A) the local educational agency deems 
                appropriate; and
                    ``(B) are provided in the classroom.
            ``(2) Classroom activities and services.--For the purpose 
        of paragraph (1), the costs of activities and services provided 
        in the classroom--
                    ``(A) exclude the administrative expenses 
                associated with the activities and services; and
                    ``(B) subject to paragraph (1)(A), include 
                nonadministrative expenses associated with statewide or 
                districtwide initiatives directly affecting classroom 
                learning.
            ``(3) Plan.--Not later than 6 months after the date of 
        enactment of the Dollars to the Classroom Act, the Secretary 
        shall--
                    ``(A) develop and implement a plan for streamlining 
                regulations and eliminating bureaucracy so that 95 
                percent of the funds made available to local 
                educational agencies under this part are used for the 
                costs of activities and services provided in the 
                classroom; and
                    ``(B) prepare and submit to Congress recommended 
                legislation containing changes to Federal law that are 
                needed for 95 percent of the funds to be so used.''.

SEC. 4. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE AND HOME SCHOOLS.

    Each local educational agency that receives funds under section 2 
shall provide for the participation of children enrolled in private and 
home schools in the activities and services assisted under such section 
in the same manner as private school children participate in activities 
and services under the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6301 et seq.) pursuant to sections 14503, 14504, 14505, and 
14506 of such Act (20 U.S.C. 8893, 8894, 8895, and 8896).

SEC. 5. DEFINITIONS.

    In this Act--
            (1) the term ``local educational agency'' has the meaning 
        given the term in section 14101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 8801);
            (2) the term ``Secretary'' means the Secretary of 
        Education; and
            (3) the term ``State'' means each of the several States of 
        the United States, the District of Columbia, the Commonwealth 
        of Puerto Rico, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, and the United States Virgin Islands.
Dollars to the Classroom Act - Requires the Secretary of Education to award the total amount of certain applicable education funding directly to the States. 
(Sec. 2) Requires such direct awarding of all the funds (except those used for specified multiyear awards) that are appropriated for the Department of Education for the fiscal year for programs or activities under specified provisions of: (1) the Goals 2000: Educate America Act; (2) the Educational Research, Development, Disseminations, and Improvement Act of 1994; (3) the School-to-Work Opportunities Act of 1994; (4) the Elementary and Secondary Education Act of 1965 (ESEA); and (5) the Stewart B. McKinney Homeless Assistance Act. 
Sets deadlines for: (1) each State to conduct a census to determine, and report to the Secretary, the number of kindergarten through grade 12 students in the State for the academic year; and (2) the Secretary to publish and disburse the amount each State will receive under this Act for the succeeding fiscal year.  Sets forth: (1) a formula for determination of such award amounts, based on relative numbers of such students in each State; and (2) penalties for false information.  Provides for continuation of certain multiyear awards made prior to enactment of this Act. 
Requires award amounts under this Act to be paid to the State Governor, who shall make them available to the individual or entity in the State responsible for the State administration of Federal education funds.  Prescribes requirements for the use of such funds, earmarking not less than 95 percent for distribution to local educational agencies (LEAs) for the costs of activities or services provided in the classroom that LEAs determine appropriate, excluding associated administrative expenses, but including nonadministrative expenses associated with statewide or districtwide initiatives directly affecting classroom learning. 
Prohibits: (1) any head of a Federal department or agency other than the Secretary from promulgating regulations under this Act; and (2) the Secretary from issuing any regulation regarding the type of classroom activities or services that may be assisted under this Act. 
(Sec. 3) Amends ESEA title I (Helping Disadvantaged Children Meet High Standards) to require the use of at least 95 percent of title I funds for an LEA for a fiscal year according to the requirements of this Act. 
Directs the Secretary to: (1) develop and implement a plan for streamlining regulations and eliminating bureaucracy so that 95 percent of such ESEA title I funds for LEAs are used for the costs of activities and services provided in the classroom; and (2) recommend to Congress legislation containing changes to Federal law needed for the use of such funds. 
(Sec. 4) Requires each LEA that receives funds under this Act to provide for the participation of children enrolled in private and home schools.
Dollars to the Classroom Act