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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9926 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 9926

 To direct the Secretary of the Treasury to carry out a program under 
  which all Federal funds for elementary and secondary education are 
   provided directly to parents of eligible children or approved by 
      parents for distribution to schools, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 4, 2024

   Ms. Mace introduced the following bill; which was referred to the 
   Committee on Education and the Workforce, and in addition to the 
Committee on Ways and Means, for a period to be subsequently determined 
 by the Speaker, in each case for consideration of such provisions as 
        fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
 To direct the Secretary of the Treasury to carry out a program under 
  which all Federal funds for elementary and secondary education are 
   provided directly to parents of eligible children or approved by 
      parents for distribution to schools, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``School Freedom Act of 2024''.

SEC. 2. TERMINATION OF FEDERAL ELEMENTARY AND SECONDARY EDUCATION 
              PROGRAMS.

    (a) Termination.--Each covered Federal education program shall 
terminate on a date determined by the Secretary of Education that is 
not later than June 30, 2025.
    (b) Wind-Down of Programs.--The Secretary of Education shall take 
such steps as may be necessary to provide for the orderly cessation of 
activities under each covered Federal education program by not later 
than the termination date specified in subsection (a).
    (c) Reallocation of Existing Appropriations.--Beginning on the date 
of the enactment of this Act, no Federal funds may be appropriated for 
a covered Federal education program.
    (d) Allocation of Unobligated Amounts.--Any amounts appropriated 
for a covered Federal education program that are unobligated as of the 
date such program terminates under subsection (a) shall be used to 
carry out the School Freedom Account program under section 3.

SEC. 3. SCHOOL FREEDOM ACCOUNT PROGRAM.

    (a) In General.--Notwithstanding any other provision of law, for 
each school year beginning on or after July 1, 2025, the Secretary of 
the Treasury shall carry out a program under which the Secretary 
shall--
            (1) establish an account on behalf of each eligible child 
        (to be known as a ``School Freedom Account'') into which the 
        Secretary shall deposit funds in an amount determined under 
        subsection (b); and
            (2) establish a procedure under which the parent of the 
        child shall--
                    (A) in the case of a parent who elects not to have 
                their child attend a public elementary or secondary 
                school for a school year, use funds in the account to 
                pay for the educational expenses of the child in 
                accordance with subsection (c)(1); or
                    (B) in the case of a parent who elects to have 
                their child attend a public elementary or secondary 
                school for a school year, approve the disbursement of 
                such funds to the local educational agency serving the 
                school of the parent's choice and attended by the child 
                for use in accordance with subsection (c)(2).
    (b) Deposit Amount.--
            (1) In general.--The amount of funds deposited into each 
        School Freedom Account for a school year shall be equal to the 
        per-pupil Federal expenditure applicable to an eligible child 
        for the school year, as determined under paragraph (2).
            (2) Per-pupil federal expenditure.--
                    (A) First year of program.--The per-pupil Federal 
                expenditure applicable to an eligible child for the 
                first school year that begins on or after July 1, 2025 
                shall be equal to--
                            (i) the sum of the total amount 
                        appropriated to carry out this section for 
                        fiscal year 2025 and any amounts made available 
                        under section 2(d); divided by
                            (ii) the total number of eligible children 
                        counted for such school year.
                    (B) Subsequent years.--The per-pupil Federal 
                expenditure applicable to an eligible child for any 
                school year after the year described in subparagraph 
                (A) shall be equal to--
                            (i) the total amount of Federal funds 
                        appropriated to carry out this section for the 
                        fiscal year that corresponds to such school 
                        year; divided by
                            (ii) the total number of eligible children 
                        counted for such school year.
    (c) Uses of Funds.--
            (1) Non-public school funds.--Funds deposited into a School 
        Freedom Account on behalf of child who does not attend a public 
        elementary or secondary school for a school year may be used to 
        pay for--
                    (A) curriculum and curricular materials;
                    (B) books or other instructional materials;
                    (C) technological educational materials;
                    (D) online educational materials;
                    (E) tutoring or educational classes outside the 
                home, including micro school or learning pod;
                    (F) private school tuition;
                    (G) public charter schools;
                    (H) extracurricular activities;
                    (I) testing fees;
                    (J) diagnostic tools; or
                    (K) educational therapies for students with 
                disabilities.
            (2) Public school funds.--Funds disbursed from a School 
        Freedom Account to a local educational agency for a school year 
        may be used by the agency for any educational purpose 
        authorized under the laws of the State in which such agency is 
        located.
    (d) Rollover, Conversion, and Termination.--
            (1) Rollover.--Amounts remaining in the School Freedom 
        Account of an eligible child at the end of a school year shall 
        remain available for expenditure in accordance with subsection 
        (c) in subsequent school years until the earlier of--
                    (A) the date on which the child completes secondary 
                school; or
                    (B) the date on which the child is no longer 
                eligible to attend a public elementary or secondary 
                school.
            (2) Conversion.--If amounts remain in a School Freedom 
        Account as of the date described in paragraph (1), such account 
        shall be redesignated as a ``Higher Education and Skills 
        Obtainment Fund''. No further deposits shall be made in the 
        fund by the Secretary of the Treasury, but any amounts 
        remaining in the fund may be used by the individual on whose 
        behalf the fund was established to pay for postsecondary 
        educational expenses, including--
                    (A) costs of attendance at an institution of higher 
                education;
                    (B) costs associated with career and technical 
                education; and
                    (C) such other postsecondary educational expenses 
                as may be approved by the Secretary for purposes of 
                this paragraph.
            (3) Termination and return of funds.--
                    (A) Termination.--The Higher Education and Skills 
                Obtainment Fund of a student shall terminate on the 
                date on which the student attains the age of 30 years.
                    (B) Return of funds.--Any funds remaining in a 
                Higher Education and Skills Obtainment Fund on the date 
                such fund terminates under paragraph (1) shall be 
                returned to the Treasury of the United States.
    (e) Limitation.--The Secretary of the Treasury may not require 
that--
            (1) individuals obtain preapproval prior to the expenditure 
        of amounts from a School Freedom Account or Higher Education 
        and Skills Obtainment Fund; or
            (2) the expenditure of amounts from a School Freedom 
        Account or Higher Education and Skills Obtainment Fund be 
        through a specific marketplace or portal.
    (f) Exclusion From Taxable Income.--Amounts in a School Freedom 
Account or Higher Education and Skills Obtainment Fund under this 
section shall not be included in the gross income of a parent or 
student for purposes of the Internal Revenue Code of 1986.

SEC. 4. TRACKING OF FEDERAL EDUCATION FUNDS.

     Before the end of each school year, the Secretary of the Treasury 
shall determine--
            (1) the aggregate amount of deposits made to School Freedom 
        Accounts under section 3 for such school year, stated 
        separately for each local educational agency (based on the 
        residence of the eligible child) and identifying the State in 
        which the local educational agency is located; and
            (2) of the amount determined under paragraph (1) with 
        respect to each local educational agency--
                    (A) the amount of funds distributed directly to 
                parents in accordance with subparagraph (A) of section 
                3(a)(2); and
                    (B) the amount of funds approved by parents for 
                disbursement to the agency in accordance with 
                subparagraph (B) of such section.

SEC. 5. RULES OF CONSTRUCTION.

     Nothing in this Act shall be construed to--
            (1) affect any aspect of private, religious, or home 
        education providers;
            (2) exclude private, religious, or home education providers 
        from receiving funds from a School Freedom Account; or
            (3) require an educational service provider to alter any 
        creed, practice, admissions policy, or curriculum in order to 
        receive funds from a School Freedom Account.

SEC. 6. PROHIBITION ON NEW REGULATION.

    The Secretary of the Treasury may not issue any rule, promulgate 
any regulation, or take any other action which imposes any limitation 
or requirement on the use of a School Freedom Account or Higher 
Education and Skills Obtainment Fund by a parent or eligible child.

SEC. 7. GAO REPORTING ON SCHOOL FREEDOM ACCOUNT AND HIGHER EDUCATION 
              AND SKILLS OBTAINMENT FUND.

    (a) In General.--Not later than one year after the date of 
enactment of this Act, and annually thereafter, the Comptroller General 
of the United States shall submit a report to the Congress that--
            (1) reviews the wind-down and termination of covered 
        Federal education programs by the Secretary of Education;
            (2) reviews the reallocation of existing appropriations and 
        the allocation of unobligated amounts appropriated for covered 
        Federal education programs to carry out section 3 of this Act;
            (3) reviews the procedures established by the Secretary of 
        the Treasury to allow parents to use funds to pay for 
        educational expenses in accordance with section 3(c)(1);
            (4) identifies the aggregate amount of deposits made to 
        School Freedom Accounts under section 3 for the school year, 
        stated separately for each local educational agency (based on 
        the residence of the eligible child) and identifying the State 
        in which the local educational agency is located;
            (5) identifies additional uses of funds in a School Freedom 
        Account or Higher Education and Skills Obtainment Fund that 
        could benefit an eligible child;
            (6) identifies the aggregate number of students who expend 
        funds from a School Freedom Account to--
                    (A) attend a private school;
                    (B) attend a public charter school;
                    (C) homeschool; and
                    (D) attend educational classes outside the home, 
                including a micro school or learning pod;
            (7) identifies the aggregate amount expended from School 
        Freedom Accounts, other than for eligible uses in section 
        3(c)(1);
            (8) identifies the aggregate amount in School Freedom 
        Accounts that rollover to the next school year;
            (9) identifies the aggregate number of School Freedom 
        Accounts that convert to Higher Education and Skills Obtainment 
        Funds, and the aggregate amount in accounts that are converted;
            (10) identifies the aggregate number of students that 
        expend amounts from a Higher Education and Skills Obtainment 
        Fund to pay costs associated with attendance of an institution 
        of higher education or with career and technical education;
            (11) reviews the Secretary of the Treasury's efforts to 
        track Federal funds deposited into School Freedom Accounts;
            (12) identifies the aggregate amount returned to the 
        Treasury in the fiscal year following the termination of Higher 
        Education and Skills Obtainment Funds; and
            (13) includes any other matter the Comptroller General of 
        the United States determines important to assessing and 
        improving the implementation or administration of the School 
        Freedom Account or Higher Education and Skills Obtainment Fund.

SEC. 8. DEFINITIONS.

    In this Act:
            (1) The term ``career and technical education'' has the 
        meaning given that term in section 3 of the Carl D. Perkins 
        Career and Technical Education Act of 2006 (20 U.S.C. 2302).
            (2) The terms ``child'', ``elementary school'', ``local 
        educational agency'', ``parent'', ``secondary school'', and 
        ``State'' have the meanings given those terms in section 8101 
        of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7801).
            (3) The term ``cost of attendance'' has the meaning given 
        that term in section 472 of the Higher Education Act of 1965 
        (20 U.S.C. 1087ll).
            (4) The term ``covered Federal education program'' means an 
        applicable program (as defined in section 400 of the General 
        Education Provisions Act (20 U.S.C. 1221)) the primary purpose 
        of which is to support elementary or secondary education, 
        except such term does not include the School Freedom Account 
        program authorized under this Act.
            (5) The term ``eligible child'' means a child--
                    (A) who is eligible to enroll in a public 
                elementary or secondary school for a school year;
                    (B) who has been issued a social security number by 
                the Social Security Administration; and
                    (C) whose parent or guardian has been issued a 
                social security number by the Social Security 
                Administration.
            (6) The term ``institution of higher education'' has the 
        meaning given that term in section 102 of the Higher Education 
        Act of 1965 (20 U.S.C. 1002).
                                 <all>
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