II 

109TH CONGRESS 

1ST SESSION S. 15 

To improve education for all students, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 24, 2005 

Mr. BINGAMAN (for himself, Mr. REID, Mr. KENNEDY, Mr. CORZINE, Mr. 

DURBIN, Mr. REED, Mr. SCHUMER, Mr. DODD, Mr. HARKIN, Ms. MIKULSKI, Ms. STABENOW, Mr. LAUTENBERG, Mrs. FEINSTEIN, Mrs. 

CLINTON, Mr. INOUYE, Mr. ROCKEFELLER, Mr. SARBANES, and Mr. 

DAYTON) introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL

To improve education for all students, and for other 

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Quality Education for 

5 All Act’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows:

Sec. 1. Short title. 

Sec. 2. Table of contents. 
2

•S 15 IS

TITLE I—STRENGTHENING HEAD START AND CHILD CARE 

PROGRAMS 

Subtitle A—Increasing Access to Head Start Programs 

Sec. 101. Authorization of appropriations. 

Sec. 102. Strengthening Indian and migrant and seasonal Head Start programs. 

Sec. 103. Expanding Early Head Start programs. 

Sec. 104. Participation in Head Start programs. 

Subtitle B—Enhancing the School Readiness of Head Start Children 

Sec. 111. School readiness standards. 

Sec. 112. Staff. 

Subtitle C—Expanding Access to Quality, Affordable Child Care 

Sec. 121. Authorization of appropriations. 

Subtitle D—Strengthening the Quality of Child Care 

Sec. 131. State plan requirements relating to training. 

Sec. 132. Strengthening the quality of child care. 

TITLE II—PROVIDING SAFE, RELIABLE TRANSPORTATION FOR 

RURAL SCHOOL CHILDREN 

Sec. 201. Findings and purpose. 

Sec. 202. Definitions. 

Sec. 203. Grant program. 

Sec. 204. Authorization of appropriations. 

TITLE III—SENSE OF THE SENATE REGARDING FULLY FUNDING 

THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT BY 2011 

Sec. 301. Findings. 

Sec. 302. Sense of the Senate regarding authorization of appropriations. 

TITLE IV—IMPROVEMENT OF ELEMENTARY AND SECONDARY 

EDUCATION 

Subtitle A—Public School Choice, Supplemental Educational Services, and 

Teacher Quality 

Sec. 401. Public school choice capacity. 

Sec. 402. Supplemental educational services. 

Sec. 403. Qualifications for teachers and paraprofessionals. 

Subtitle B—Adequate Yearly Progress Determinations 

Sec. 421. Review of adequate yearly progress determinations for schools for the 

2002–2003 school year. 

Sec. 422. Review of adequate yearly progress determinations for local educational agencies for the 2002–2003 school year. 

Sec. 423. Definitions. 

Subtitle C—Technical Assistance 

Sec. 451. Technical assistance. 
3

•S 15 IS

TITLE V—IMPROVING ASSESSMENT AND ACCOUNTABILITY 

Sec. 501. Grants for increasing data capacity for purposes of assessment and 

accountability. 

Sec. 502. Grants for assessment of children with disabilities and children who 

are limited English proficient. 

Sec. 503. Reports on student enrollment and graduation rates. 

Sec. 504. Civil rights. 

TITLE VI—SENSE OF THE SENATE REGARDING FUNDING FOR 

ELEMENTARY AND SECONDARY EDUCATION 

Sec. 601. Sense of the Senate. 

TITLE VII—PROVIDING A ROADMAP FOR FIRST GENERATION 

COLLEGE FOR STUDENTS 

Sec. 701. Expansion of TRIO and GEARUP. 

TITLE VIII—COLLEGE TUITION RELIEF FOR STUDENTS AND 

THEIR FAMILIES THROUGH PELL GRANTS 

Sec. 801. Pell Grants tax tables hold harmless. 

Sec. 802. Sense of the Senate regarding increasing the maximum Pell Grant. 

Sec. 803. Establishment of a Pell demonstration program. 

TITLE IX—TUITION FREE COLLEGE FOR MATHEMATICS, 

SCIENCE, AND SPECIAL EDUCATION TEACHERS 

Sec. 901. Purpose. 

Sec. 902. Tuition free college for mathematics, science, and special education 

teachers. 

Sec. 903. Offset for tuition free college for mathematics, science, and special 

education teachers. 

TITLE X—MAKING COLLEGE AFFORDABLE FOR ALL STUDENTS 

Sec. 1001. Expansion of deduction for higher education expenses. 

Sec. 1002. Credit for interest on higher education loans. 

Sec. 1003. Hope and Lifetime Learning credits to be refundable.

1 TITLE I—STRENGTHENING HEAD 

2 START AND CHILD CARE PRO3 GRAMS 

4 Subtitle A—Increasing Access to 

5 Head Start Programs 

6 SEC. 101. AUTHORIZATION OF APPROPRIATIONS. 

7 Section 639(a) of the Head Start Act (42 U.S.C. 

8 9834(a)) is amended by striking ‘‘such sums’’ and all that 
4 

•S 15 IS

1 follows and inserting the following: ‘‘$8,570,000,000 for 

2 fiscal year 2006, $10,445,000,000 for fiscal year 2007, 

3 $12,384,000,000 for fiscal year 2008, $14,334,000,000 

4 for fiscal year 2009, and $16,332,000,000 for fiscal year 

5 2010.’’. 

6 SEC. 102. STRENGTHENING INDIAN AND MIGRANT AND 

7 SEASONAL HEAD START PROGRAMS. 

8 Section 640(a)(2) of the Head Start Act (42 U.S.C. 

9 9835(a)(2)) is amended by striking subparagraph (A) and 

10 inserting the following: 

11 ‘‘(A) Indian Head Start programs, services for 

12 children with disabilities, and migrant and seasonal 

13 Head Start programs, except that the Secretary 

14 shall reserve for each fiscal year for use by Indian 

15 Head Start and migrant and seasonal Head Start 

16 programs (referred to in this subparagraph as ‘cov17 ered programs’), on a nationwide basis, a sum that 

18 is the total of not less than 4 percent of the amount 

19 appropriated under section 639(a) for that fiscal 

20 year (for Indian Head Start programs), and not less 

21 than 5 percent of that appropriated amount (for mi22 grant and seasonal Head Start programs), except 

23 that— 

24 ‘‘(i) if reserving the specified percentages 

25 for covered programs and would reduce the 
5 

•S 15 IS

1 number of children served by Head Start pro2 grams, relative to the number of children served 

3 on the date of enactment of the Quality Edu4 cation for All Act, taking into consideration an 

5 appropriate adjustment for inflation, the Sec6 retary shall reserve percentages that approach, 

7 as closely as practicable, the specified percent8 ages and that do not cause such a reduction; 

9 and 

10 ‘‘(ii) notwithstanding any other provision 

11 of this subparagraph, the Secretary shall re12 serve for each fiscal year for use by Indian 

13 Head Start programs and by migrant and sea14 sonal Head Start programs, on a nationwide 

15 basis, not less than the amount that was obli16 gated for use by Indian Head Start programs 

17 and by migrant and seasonal Head Start pro18 grams, respectively, for the previous fiscal 

19 year;’’. 

20 SEC. 103. EXPANDING EARLY HEAD START PROGRAMS. 

21 Section 640(a)(6) of the Head Start Act (42 U.S.C. 

22 9835(a)(6)) is amended— 

23 (1) in subparagraph (A), by striking ‘‘7.5 per24 cent for fiscal year 1999’’ and all that follows and 

25 inserting ‘‘12 percent for fiscal year 2006, 14 per-
6 

•S 15 IS

1 cent for fiscal year 2007, 16 percent for fiscal year 

2 2008, 18 percent for fiscal year 2009, and 20 per3 cent for fiscal year 2010, of the amount appro4 priated pursuant to section 639(a).’’; 

5 (2) by striking subparagraph (B); and 

6 (3) by redesignating subparagraph (C) as sub7 paragraph (B). 

8 SEC. 104. PARTICIPATION IN HEAD START PROGRAMS. 

9 Section 645 of the Head Start Act (42 U.S.C. 9840) 

10 is amended— 

11 (1) in subsection (a)(1)(A), by inserting ‘‘130 

12 percent of’’ after ‘‘below’’; and 

13 (2) by adding at the end the following: 

14 ‘‘(e) After demonstrating a need through a commu15 nity needs assessment, a Head Start agency may apply 

16 to the Secretary to convert part-day sessions, particularly 

17 consecutive part-day sessions, into full-day sessions.’’. 

18 Subtitle B—Enhancing the School 

19 Readiness of Head Start Children 

20 SEC. 111. SCHOOL READINESS STANDARDS. 

21 Section 641A(a)(1)(B)(ii) of the Head Start Act (42 

22 U.S.C. 9836(a)(1)(B)(ii)) is amended by striking ‘‘at a 

23 minimum’’ and all that follows and inserting the following: 

24 ‘‘at a minimum, develop and demonstrate— 
7 

•S 15 IS

1 ‘‘(I) language skills, including an ex2 panded use of vocabulary; 

3 ‘‘(II) interest in and appreciation of 

4 books, reading, and writing (either alone or 

5 with others), phonological and phonemic 

6 awareness, and varied modes of expression 

7 and communication; 

8 ‘‘(III) premathematics knowledge and 

9 skills, including knowledge and skills relat10 ing to aspects of classification, seriation, 

11 numbers, spatial relations, and time; 

12 ‘‘(IV) cognitive abilities related to aca13 demic achievement; 

14 ‘‘(V) abilities related to social and 

15 emotional development; 

16 ‘‘(VI) gross and fine motor skills; and 

17 ‘‘(VII) in the case of children with 

18 limited English proficiency, abilities related 

19 to progress toward acquisition of the 

20 English language.’’. 

21 SEC. 112. STAFF. 

22 (a) STAFF QUALIFICATIONS AND DEVELOPMENT.— 

23 Section 648A of the Head Start Act (42 U.S.C. 9843a) 

24 is amended— 

25 (1) in subsection (a)(2)— 
8 

•S 15 IS

1 (A) in subparagraph (A)— 

2 (i) in the matter preceding clause (i), 

3 by striking ‘‘not later than September 30, 

4 2003’’ and all that follows through ‘‘pro5 grams have’’ and inserting ‘‘not later than 

6 the date determined under subparagraph 

7 (D) for a Head Start region, each Head 

8 Start agency in the region with a center9 based program shall ensure that all class10 rooms in the program have at least 1 

11 teacher who has’’; 

12 (ii) in clause (i), strike ‘‘an associate, 

13 baccalaureate,’’ and insert ‘‘a bacca14 laureate’’; and 

15 (iii) in clause (ii), strike ‘‘an asso16 ciate, baccalaureate,’’ and insert ‘‘a bacca17 laureate’’; and 

18 (B) by striking subparagraph (B) and in19 serting the following: 

20 ‘‘(B) TEMPORARY REQUIREMENT.—Until 

21 the date determined under subparagraph (D) 

22 for a Head Start region, the Secretary shall en23 sure that at least 50 percent of all Head Start 

24 teachers in the region in center-based programs 

25 have— 
9 

•S 15 IS

1 ‘‘(i) an associate, baccalaureate, or 

2 advanced degree in early childhood edu3 cation; or 

4 ‘‘(ii) an associate, baccalaureate, or 

5 advanced degree in a field related to early 

6 childhood education, with experience in 

7 teaching preschool children. 

8 ‘‘(C) REQUIREMENT FOR NEW HEAD

9 START TEACHERS.—Not later than 3 years 

10 after the date of enactment of the Quality Edu11 cation for All Act, the Secretary shall require 

12 that all teachers hired nationwide in center13 based programs of Head Start agencies fol14 lowing the date of the requirement— 

15 ‘‘(i) have an associate, baccalaureate, 

16 or advanced degree in early childhood edu17 cation; 

18 ‘‘(ii) have an associate, baccalaureate, 

19 or advanced degree in a field related to 

20 early childhood education, with experience 

21 in teaching preschool children; or 

22 ‘‘(iii) be enrolled, or enroll not later 

23 than 1 year after the date of hire, in a pro24 gram of study leading to an associate de25 gree in early childhood education. 
10 

•S 15 IS

1 ‘‘(D) APPROPRIATE DATE.—The Secretary 

2 shall determine an appropriate date for Head 

3 Start agencies in each Head Start region to 

4 reach the result described in subparagraph (A), 

5 but in no case shall such a date be later than 

6 8 years after the date of enactment of Quality 

7 Education for All Act. 

8 ‘‘(E) PROGRESS.— 

9 ‘‘(i) REQUIREMENT.—The Secretary 

10 shall require Head Start agencies with cen11 ter-based programs to demonstrate con12 tinuing and consistent progress each year 

13 to reach the results described in subpara14 graphs (A) and (C). 

15 ‘‘(ii) PLAN.—Each State shall estab16 lish a plan for the Head Start agencies 

17 with center-based programs in the State to 

18 reach the results described in subpara19 graphs (A) and (C). 

20 ‘‘(iii) PROGRESS.—Each Head Start 

21 agency shall prepare and submit to the 

22 Secretary and the Governor of the State a 

23 report indicating the number and percent24 age of its teachers in center-based pro25 grams with child development associate 
11 

•S 15 IS

1 credentials or associate, baccalaureate, or 

2 advanced degrees in early childhood edu3 cation or a field related to early childhood 

4 education. The Secretary shall compile all 

5 such reports and submit a summary of the 

6 compiled reports to the Committee on 

7 Health, Education, Labor, and Pensions of 

8 the Senate and the Committee on Edu9 cation and the Workforce of the House of 

10 Representatives.’’; 

11 (2) in subsection (a)(3), by striking ‘‘(2)(A)’’ 

12 and inserting ‘‘(2)(B)’’; and 

13 (3) by adding at the end the following: 

14 ‘‘(f) PRE-LITERACY AND LANGUAGE TRAINING.—To 

15 support local efforts to enhance early language and pre16 literacy development of children in Head Start programs, 

17 and to provide the children with high-quality oral language 

18 skills and environments that are rich in literature, in 

19 which to acquire early language and pre-literacy skills, 

20 each Head Start agency shall ensure that all of the agen21 cy’s Head Start teachers receive ongoing training in lan22 guage and emergent literacy. Such training shall also in23 clude information regarding appropriate curricula and as24 sessments to improve instruction and learning. Such train25 ing shall include training in methods to promote phono-
12 

•S 15 IS

1 logical and phonemic awareness and vocabulary develop2 ment in an age-appropriate and culturally and linguis3 tically appropriate manner. 

4 ‘‘(g) PROFESSIONAL DEVELOPMENT PLANS.—Each 

5 Head Start agency and center shall create, in consultation 

6 with employees of the agency or center (including family 

7 service workers), a professional development plan for em8 ployees who provide direct services to children, including 

9 a plan for teachers, to meet the requirements set forth 

10 in subsection (a).’’. 

11 (b) ATTRACTING AND RETAINING HIGH-QUALITY

12 HEAD START TEACHERS; TRIBAL COLLEGE OR UNIVER13 SITY-HEAD START PARTNERSHIP PROGRAM.— 

14 (1) PROGRAM.—The Head Start Act is amend15 ed by inserting after section 648A (42 U.S.C. 

16 9843a) the following: 

17 ‘‘SEC. 648B. ATTRACTING AND RETAINING HIGH-QUALITY 

18 HEAD START TEACHERS. 

19 ‘‘(a) IN GENERAL.—The Secretary shall make grants 

20 to eligible Head Start agencies to enable the agencies to 

21 reach the results described in subparagraphs (A) and (C) 

22 of section 648A(a)(2). The Secretary shall make the 

23 grants from allotments determined under subsection (b). 

24 ‘‘(b) ALLOTMENTS.—From the funds made available 

25 under section 639(c) for a fiscal year and not reserved 
13 

•S 15 IS

1 under subsection (d), the Secretary shall allot to each 

2 Head Start agency an amount that bears the same rela3 tionship to such funds as the amount received by the agen4 cy under section 640 for that fiscal year bears to the 

5 amount received by all Head Start agencies under section 

6 640 for that fiscal year. 

7 ‘‘(c) SALARY PLAN.—A Head Start agency that re8 ceives a grant under this section shall develop and carry 

9 out a plan to raise the average salaries of teachers in the 

10 agency’s Head Start programs. In developing the plan, the 

11 agency shall take into consideration the training, level of 

12 education, and experience of the teachers, and the average 

13 salaries of prekindergarten and kindergarten teachers em14 ployed by the local educational agency for the school dis15 trict in which the Head Start agency is located, with simi16 lar training, level of education, and experience. 

17 ‘‘(d) SALARIES IN HIGH-COST AREAS.—The Sec18 retary may reserve and use a portion of the funds available 

19 under section 639(c) to assist Head Start agencies located 

20 in high-cost areas to help reduce the discrepancy between 

21 such average salaries of such teachers and such average 

22 salaries of such prekindergarten and kindergarten teach23 ers. 
14

•S 15 IS

1 ‘‘SEC. 648C. TRIBAL COLLEGE OR UNIVERSITY-HEAD START 

2 PARTNERSHIP PROGRAM. 

3 ‘‘(a) TRIBAL COLLEGE OR UNIVERSITY-HEAD START

4 PARTNERSHIP PROGRAM.— 

5 ‘‘(1) GRANTS.—The Secretary is authorized to 

6 award grants, of not less than 5 years duration, to 

7 Tribal Colleges and Universities to— 

8 ‘‘(A) implement education programs that 

9 include tribal culture and language and increase 

10 the number of associate, baccalaureate, and 

11 graduate degrees in early childhood education 

12 and related fields that are earned by Indian 

13 Head Start agency staff members, parents of 

14 children served by such an agency, and mem15 bers of the tribal community involved; 

16 ‘‘(B) develop and implement the programs 

17 under subparagraph (A) in technology-mediated 

18 formats; and 

19 ‘‘(C) provide technology literacy programs 

20 for Indian Head Start agency staff members 

21 and children and families of children served by 

22 such an agency. 

23 ‘‘(2) STAFFING.—The Secretary shall ensure 

24 that the American Indian Programs Branch of the 

25 Head Start Bureau of the Department of Health 

26 and Human Services shall have staffing sufficient to 
15 

•S 15 IS

1 administer the programs under this section and to 

2 provide appropriate technical assistance to Tribal 

3 Colleges and Universities receiving grants under this 

4 section. 

5 ‘‘(b) APPLICATION.—Each Tribal College or Univer6 sity desiring a grant under this section shall submit an 

7 application to the Secretary, at such time, in such manner, 

8 and containing such information as the Secretary may re9 quire, including a certification that the Tribal College or 

10 University has established a partnership with 1 or more 

11 Indian Head Start agencies for the purpose of conducting 

12 the activities described in subsection (a). 

13 ‘‘(c) DEFINITIONS.—In this section: 

14 ‘‘(1) INSTITUTION OF HIGHER EDUCATION.— 

15 The term ‘institution of higher education’ has the 

16 meaning given such term in section 101(a) of the 

17 Higher Education Act of 1965 (20 U.S.C. 1001(a)). 

18 ‘‘(2) TRIBAL COLLEGE OR UNIVERSITY.—The 

19 term ‘Tribal College or University’ means an institu20 tion— 

21 ‘‘(A) defined by such term in section 

22 316(b) of the Higher Education Act of 1965 

23 (20 U.S.C. 1059c(b)); and 
16 

•S 15 IS

1 ‘‘(B) determined to be accredited or a can2 didate for accreditation by a nationally recog3 nized accrediting agency or association. 

4 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

5 are authorized to be appropriated to carry out this section, 

6 $10,000,000 for fiscal year 2006 and such sums as may 

7 be necessary for each of fiscal years 2007 through 2010.’’. 

8 (2) AUTHORIZATION OF APPROPRIATIONS.— 

9 Section 639 of the Head Start Act (42 U.S.C. 9834) 

10 is amended— 

11 (A) in subsection (a), by inserting ‘‘(other 

12 than section 648B)’’ after ‘‘this subchapter’’; 

13 and 

14 (B) by adding at the end the following: 

15 ‘‘(c) There are authorized to be appropriated to carry 

16 out section 648B $387,000,000 for fiscal year 2006, 

17 $496,000,000 for fiscal year 2007, $608,000,000 for fis18 cal year 2008, $723,000,000 for fiscal year 2009, and 

19 $841,000,000 for fiscal year 2010.’’. 

20 (3) CONFORMING AMENDMENTS.—Section 640 

21 of the Head Start Act (42 U.S.C. 9835) is amend22 ed— 

23 (A) in subsection (a)— 

24 (i) in paragraph (1), by striking ‘‘sec25 tion 639’’ and inserting ‘‘section 639(a)’’; 
17 

•S 15 IS

1 (ii) in paragraph (2)— 

2 (I) in the matter preceding sub3 paragraph (A), by inserting ‘‘pursuant 

4 to section 639(a)’’ after ‘‘appro5 priated’’; 

6 (II) in subparagraph (B), in the 

7 matter following clause (ii), by insert8 ing ‘‘pursuant to section 639(a)’’ after 

9 ‘‘appropriated’’; and 

10 (III) in subparagraph (C), by in11 serting ‘‘pursuant to section 639(a)’’ 

12 after ‘‘appropriated’’ each place it ap13 pears; and 

14 (iii) in paragraph (4), in the matter 

15 preceding subparagraph (A), by inserting 

16 ‘‘pursuant to section 639(a)’’ after ‘‘appro17 priated’’; and 

18 (B) in subsection (g)(1), by inserting ‘‘pur19 suant to section 639(a)’’ after ‘‘appropriated’’ 

20 each place it appears. 

21 Subtitle C—Expanding Access to 

22 Quality, Affordable Child Care 

23 SEC. 121. AUTHORIZATION OF APPROPRIATIONS. 

24 Section 658B of the Child Care and Development 

25 Block Grant Act of 1990 (42 U.S.C. 9858) is amended— 
18 

•S 15 IS

1 (1) by striking ‘‘is’’ and inserting ‘‘are’’; and 

2 (2) by striking ‘‘subchapter’’ and all that fol3 lows and inserting ‘‘subchapter $3,100,000,000 for 

4 fiscal year 2006, $4,100,000,000 for fiscal year 

5 2007, $5,100,000,000 for fiscal year 2008, 

6 $6,100,000,000 for fiscal year 2009, and 

7 $7,100,000,000 for fiscal year 2010.’’. 

8 Subtitle D—Strengthening the 

9 Quality of Child Care 

10 SEC. 131. STATE PLAN REQUIREMENTS RELATING TO 

11 TRAINING. 

12 Section 658E(c) of the Child Care and Development 

13 Block Grant Act of 1990 (42 U.S.C. 9858c(c)) is amended 

14 by adding at the end the following: 

15 ‘‘(6) TRAINING IN EARLY LEARNING AND

16 CHILDHOOD DEVELOPMENT.—The State plan shall 

17 describe any training requirements that are in effect 

18 within the State that are designed to enable child 

19 care providers to promote the social, emotional, 

20 physical, and cognitive development of children and 

21 that are applicable to child care providers that pro22 vide services for which assistance is made available 

23 under this subchapter in the State.’’. 
19 

•S 15 IS

1 SEC. 132. STRENGTHENING THE QUALITY OF CHILD CARE. 

2 Section 658G of the Child Care and Development 

3 Block Grant Act of 1990 (42 U.S.C. 9858e) is amended 

4 to read as follows: 

5 ‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF 

6 CHILD CARE. 

7 ‘‘(a) IN GENERAL.— 

8 ‘‘(1) RESERVATION.—Each State that receives 

9 funds appropriated under section 639(a) for a fiscal 

10 year shall reserve and use not less than 6 percent 

11 of the funds for activities provided directly, or 

12 through grants or contracts with resource and refer13 ral organizations or other appropriate entities, that 

14 are designed to improve the quality of child care 

15 services. 

16 ‘‘(2) ACTIVITIES.—The funds reserved under 

17 paragraph (1) may only be used to— 

18 ‘‘(A) develop and implement voluntary 

19 guidelines on pre-reading and language skills 

20 and activities, for child care programs in the 

21 State, that are aligned with State standards for 

22 kindergarten through grade 12 or the State’s 

23 general goals for school preparedness; 

24 ‘‘(B) support activities and provide tech25 nical assistance in child care settings to en26 hance early learning for young children, to pro-
20 

•S 15 IS

1 mote literacy, and to foster school prepared2 ness; 

3 ‘‘(C) offer training, professional develop4 ment, and educational opportunities for child 

5 care providers that relate to the use of develop6 mentally appropriate and age-appropriate cur7 ricula, and early childhood teaching strategies, 

8 that are scientifically based and aligned with 

9 the social, emotional, physical, and cognitive de10 velopment of children, including— 

11 ‘‘(i) developing and operating distance 

12 learning child care training infrastructures; 

13 ‘‘(ii) developing model technology14 based training courses; 

15 ‘‘(iii) offering training for caregivers 

16 in informal child care settings; and 

17 ‘‘(iv) offering training for child care 

18 providers who care for infants and toddlers 

19 and children with special needs; 

20 ‘‘(D) engage in programs designed to in21 crease the retention and improve the com22 petencies of child care providers, including wage 

23 incentive programs and initiatives that establish 

24 tiered payment rates for providers that meet or 
21 

•S 15 IS

1 exceed child care services guidelines, as defined 

2 by the State; 

3 ‘‘(E) evaluate and assess the quality and 

4 effectiveness of child care programs and serv5 ices offered in the State to young children on 

6 improving overall school preparedness; and 

7 ‘‘(F) carry out other activities determined 

8 by the State to improve the quality of child care 

9 services provided in the State and for which 

10 measurement of outcomes relating to improved 

11 child safety, child well-being, or school pre12 paredness is possible. 

13 ‘‘(b) CERTIFICATION.—For each fiscal year begin14 ning after September 30, 2005, the State shall annually 

15 submit to the Secretary a certification in which the State 

16 certifies and demonstrates that the State was in compli17 ance with subsection (a) during the preceding fiscal year 

18 and describes how the State used funds made available 

19 to carry out this subchapter to comply with subsection (a) 

20 during that preceding fiscal year.’’. 
22 

•S 15 IS

1 TITLE II—PROVIDING SAFE, RE2 LIABLE TRANSPORTATION 

3 FOR RURAL SCHOOL CHIL4 DREN 

5 SEC. 201. FINDINGS AND PURPOSE. 

6 (a) FINDINGS.—Congress finds that— 

7 (1) school transportation issues have concerned 

8 parents, local educational agencies, lawmakers, the 

9 National Highway Traffic Safety Administration, 

10 the National Transportation Safety Board, and the 

11 Environmental Protection Agency for years; 

12 (2) millions of children face potential future 

13 health problems because of exposure to noxious 

14 fumes emitted from older school buses; 

15 (3) the Environmental Protection Agency estab16 lished the Clean School Bus USA program to re17 place 129,000 of the oldest diesel buses that cannot 

18 be retrofitted in an effort to help children and the 

19 environment by improving air quality; 

20 (4) unfortunately, many rural local educational 

21 agencies are unable to participate in that program 

22 because of the specialized fuels needed to sustain a 

23 clean bus fleet; 

24 (5) many rural local educational agencies are 

25 operating outdated, unsafe school buses that are 
23 

•S 15 IS

1 failing inspections because of automotive flaws, re2 sulting in the depletion of the school bus fleets of 

3 the local educational agencies; and 

4 (6) many rural local educational agencies are 

5 unable to afford to buy newer, safer buses. 

6 (b) PURPOSE.—The purpose of this title is to estab7 lish within the Department of Education a Federal cost8 sharing program to assist rural local educational agencies 

9 with older, unsafe school bus fleets in purchasing newer, 

10 safer school buses. 

11 SEC. 202. DEFINITIONS. 

12 In this title: 

13 (1) RURAL LOCAL EDUCATIONAL AGENCY.— 

14 The term ‘‘rural local educational agency’’ means a 

15 local educational agency, as defined in section 9101 

16 of the Elementary and Secondary Education Act of 

17 1965 (20 U.S.C. 7801), with respect to which— 

18 (A) each county in which a school served 

19 by the local educational agency is located has a 

20 total population density of fewer than 10 per21 sons per square mile; 

22 (B) all schools served by the local edu23 cational agency are designated with a school lo24 cale code of 7 or 8, as determined by the Sec25 retary; or 
24 

•S 15 IS

1 (C) all schools served by the local edu2 cational agency have been designated, by official 

3 action taken by the legislature of the State in 

4 which the local educational agency is located, as 

5 rural schools for purposes relating to the provi6 sion of educational services to students in the 

7 State. 

8 (2) SECRETARY.—The term ‘‘Secretary’’ means 

9 the Secretary of Education. 

10 (3) SCHOOL BUS.—The term ‘‘school bus’’ 

11 means a vehicle the primary purpose of which is to 

12 transport students to and from school or school ac13 tivities. 

14 SEC. 203. GRANT PROGRAM. 

15 (a) IN GENERAL.—From amounts appropriated 

16 under subsection (e) for a fiscal year, the Secretary shall 

17 provide grants, on a competitive basis, to rural local edu18 cational agencies to pay the Federal share of the cost of 

19 purchasing new school buses. 

20 (b) APPLICATION.— 

21 (1) IN GENERAL.—Each rural local educational 

22 agency that seeks to receive a grant under this title 

23 shall submit to the Secretary for approval an appli24 cation at such time, in such manner, and accom25 panied by such information (in addition to informa-
25 

•S 15 IS

1 tion required under paragraph (2)) as the Secretary 

2 may require. 

3 (2) CONTENTS.—Each application submitted 

4 under paragraph (1) shall include— 

5 (A) documentation that, of the total num6 ber of school buses operated by the rural local 

7 educational agency, not less than 50 percent of 

8 the school buses are in need of repair or re9 placement; 

10 (B) documentation of the number of miles 

11 that each school bus operated by the rural local 

12 educational agency traveled in the most recent 

13 9-month academic year; 

14 (C) documentation that the rural local edu15 cational agency is operating with a reduced 

16 fleet of school buses; 

17 (D) a certification from the rural local 

18 educational agency that— 

19 (i) authorizes the application of the 

20 rural local educational agency for a grant 

21 under this title; and 

22 (ii) describes the dedication of the 

23 rural local educational agency to school 

24 bus replacement programs and school 

25 transportation needs (including the num-
26 

•S 15 IS

1 ber of new school buses needed by the 

2 rural local educational agency); and 

3 (E) an assurance that the rural local edu4 cational agency will pay the non-Federal share 

5 of the cost of the purchase of new school buses 

6 under this title from non-Federal sources. 

7 (c) PRIORITY.—In providing grants under this title, 

8 the Secretary shall give priority to rural local educational 

9 agencies that, as determined by the Secretary— 

10 (1) are transporting students in a bus manufac11 tured before 1977; 

12 (2) have a grossly depleted fleet of school buses; 

13 or 

14 (3) serve a school that is required, under sec15 tion 1116(b)(9) of the Elementary and Secondary 

16 Education Act of 1965 (20 U.S.C. 6316(b)(9)), to 

17 provide transportation to students to enable the stu18 dents to transfer to another public school served by 

19 the rural local educational agency. 

20 (d) USE OF FUNDS.—School buses purchased with 

21 grant funds awarded under subsection (a) shall be in com22 pliance with proposed air quality regulations and stand23 ards of the Environmental Protection Agency for 2006. 

24 (e) PAYMENTS; FEDERAL SHARE.— 
27 

•S 15 IS

1 (1) PAYMENTS.—The Secretary shall pay to 

2 each rural local educational agency having an appli3 cation approved under this section the Federal share 

4 described in paragraph (2) of the cost of purchasing 

5 such number of new school buses as is specified in 

6 the approved application. 

7 (2) FEDERAL SHARE.—The Federal share of 

8 the cost of purchasing a new school bus under this 

9 title shall be 75 percent. 

10 SEC. 204. AUTHORIZATION OF APPROPRIATIONS. 

11 There are authorized to be appropriated to carry out 

12 this title $50,000,000 for fiscal year 2006 and such sums 

13 as may be necessary for each of fiscal years 2007 through 

14 2010. 

15 TITLE III—SENSE OF THE SEN16 ATE REGARDING FULLY 

17 FUNDING THE INDIVIDUALS 

18 WITH DISABILITIES EDU19 CATION ACT BY 2011 

20 SEC. 301. FINDINGS. 

21 (a) FINDINGS.—The Senate finds the following: 

22 (1) Disability is a natural part of the human 

23 experience and in no way diminishes the right of in24 dividuals to participate in or contribute to society. 

25 Improving educational results for children with dis-
28 

•S 15 IS

1 abilities is an essential element of our national policy 

2 of ensuring equality of opportunity, full participa3 tion, independent living, and economic self-suffi4 ciency for individuals with disabilities. 

5 (2) Before the date of enactment of the Edu6 cation for All Handicapped Children Act of 1975 

7 (Public Law 94–142), the predecessor to the Indi8 viduals with Disabilities Education Act (20 U.S.C. 

9 1400 et seq.), the educational needs of millions of 

10 children with disabilities were not being fully met be11 cause— 

12 (A) the children did not receive appro13 priate educational services; 

14 (B) the children were excluded entirely 

15 from the public school system and from being 

16 educated with their peers; 

17 (C) undiagnosed disabilities prevented the 

18 children from having a successful educational 

19 experience; or 

20 (D) a lack of adequate resources within the 

21 public school system forced such families to find 

22 services outside the public school system. 

23 (3) The Individuals with Disabilities Education 

24 Act has been successful in ensuring children with 

25 disabilities and the families of such children access 
29 

•S 15 IS

1 to a free appropriate public education and in im2 proving educational results for children with disabil3 ities. 

4 (4) The implementation of the Individuals with 

5 Disabilities Education Act has been impeded by the 

6 Federal Government’s failure to honor the commit7 ment it made 30 years ago to provide States with 

8 40 percent of the excess costs of special education. 

9 (5) While States, local educational agencies, 

10 and educational service agencies are primarily re11 sponsible for providing an education for all children 

12 with disabilities, it is in the national interest that 

13 the Federal Government have a supporting role in 

14 assisting State and local efforts to educate children 

15 with disabilities in order to improve results for such 

16 children and to ensure equal protection of the law. 

17 (6) Congress passed authorizing language to 

18 fully fund the Individuals with Disabilities Edu19 cation Act and should appropriate such sums as au20 thorized. 

21 (7) A more equitable allocation of resources is 

22 essential for the Federal Government to meet its re23 sponsibility to provide an equal educational oppor24 tunity for all individuals. 
30 

•S 15 IS

1 SEC. 302. SENSE OF THE SENATE REGARDING AUTHORIZA2 TION OF APPROPRIATIONS. 

3 It is the sense of the Senate that for the purpose of 

4 carrying out the Federal Government’s commitment to 

5 children, parents, and the States, there should be author6 ized to be appropriated— 

7 (1) $14,648,647,143 or the maximum amount 

8 available for awarding grants under section 

9 611(a)(2) of the Individuals with Disabilities Edu10 cation Act, whichever is lower, for fiscal year 2006, 

11 and there should be appropriated $4,058,901,319 

12 for fiscal year 2006, which should become available 

13 for obligation on July 1, 2006, and should remain 

14 available through September 30, 2007, except that if 

15 the maximum amount available for awarding grants 

16 under section 611(a)(2) of such Act is less than 

17 $14,648,647,143, then the amount should be re18 duced by the difference between $14,648,647,143 

19 and the maximum amount available for awarding 

20 grants under section 611(a)(2) of such Act; 

21 (2) $16,938,917,714 or the maximum amount 

22 available for awarding grants under section 

23 611(a)(2) of the Individuals with Disabilities Edu24 cation Act, whichever is lower, for fiscal year 2007, 

25 and there should be appropriated $6,349,171,890 

26 for fiscal year 2007, which should become available 
31 

•S 15 IS

1 for obligation on July 1, 2007, and should remain 

2 available through September 30, 2008, except that if 

3 the maximum amount available for awarding grants 

4 under section 611(a)(2) of such Act is less than 

5 $16,938,917,714, then the amount should be re6 duced by the difference between $16,938,917,714 

7 and the maximum amount available for awarding 

8 grants under section 611(a)(2) of such Act; 

9 (3) $19,229,188,286 or the maximum amount 

10 available for awarding grants under section 

11 611(a)(2) of the Individuals with Disabilities Edu12 cation Act, whichever is lower, for fiscal year 2008, 

13 and there should be appropriated $8,639,442,462 

14 for fiscal year 2008, which should become available 

15 for obligation on July 1, 2008, and should remain 

16 available through September 30, 2009, except that if 

17 the maximum amount available for awarding grants 

18 under section 611(a)(2) of such Act is less than 

19 $19,229,188,286, then the amount should be re20 duced by the difference between $19,229,188,286 

21 and the maximum amount available for awarding 

22 grants under section 611(a)(2) of such Act; 

23 (4) $21,519,458,857 or the maximum amount 

24 available for awarding grants under section 

25 611(a)(2) of the Individuals with Disabilities Edu-
32 

•S 15 IS

1 cation Act, whichever is lower, for fiscal year 2009, 

2 and there should be appropriated $10,929,713,033 

3 for fiscal year 2009, which should become available 

4 for obligation on July 1, 2009, and should remain 

5 available through September 30, 2010, except that if 

6 the maximum amount available for awarding grants 

7 under section 611(a)(2) of such Act is less than 

8 $21,519,458,857, then the amount should be re9 duced by the difference between $21,519,458,857 

10 and the maximum amount available for awarding 

11 grants under section 611(a)(2) of such Act; 

12 (5) $23,809,729,429 or the maximum amount 

13 available for awarding grants under section 

14 611(a)(2) of the Individuals with Disabilities Edu15 cation Act, whichever is lower, for fiscal year 2010, 

16 and there should be appropriated $13,219,983,605 

17 for fiscal year 2010, which should become available 

18 for obligation on July 1, 2010, and should remain 

19 available through September 30, 2011, except that if 

20 the maximum amount available for awarding grants 

21 under section 611(a)(2) of such Act is less than 

22 $23,809,729,429, then the amount should be re23 duced by the difference between $23,809,729,429 

24 and the maximum amount available for awarding 

25 grants under section 611(a)(2) of such Act; 
33 

•S 15 IS

1 (6) $26,100,000,000 or the maximum amount 

2 available for awarding grants under section 

3 611(a)(2) of the Individuals with Disabilities Edu4 cation Act, whichever is lower, for fiscal year 2011, 

5 and there should be appropriated $15,510,254,176 

6 for fiscal year 2011, which should become available 

7 for obligation on July 1, 2011, and should remain 

8 available through September 30, 2012, except that if 

9 the maximum amount available for awarding grants 

10 under section 611(a)(2) of such Act is less than 

11 $26,100,000,000, then the amount should be re12 duced by the difference between $26,100,000,000 

13 and the maximum amount available for awarding 

14 grants under section 611(a)(2) of such Act; and 

15 (7) the maximum amount available for award16 ing grants under section 611(a)(2) of the Individuals 

17 with Disabilities Education Act for fiscal year 2012 

18 and each succeeding fiscal year, and there should be 

19 appropriated for each such year an amount equal to 

20 the maximum amount available for awarding grants 

21 under section 611(a)(2) of such Act for the fiscal 

22 year for which the determination is made minus 

23 $10,589,745,824, which should become available for 

24 obligation on July 1 of the fiscal year for which the 
34 

•S 15 IS

1 determination is made and should remain available 

2 through September 30 of the succeeding fiscal year. 

3 TITLE IV—IMPROVEMENT OF EL4 EMENTARY AND SECONDARY 

5 EDUCATION 

6 Subtitle A—Public School Choice, 

7 Supplemental Educational Serv8 ices, and Teacher Quality 

9 SEC. 401. PUBLIC SCHOOL CHOICE CAPACITY. 

10 (a) SCHOOL CAPACITY.—Section 1116(b)(1)(E) of 

11 the Elementary and Secondary Education Act of 1965 (20 

12 U.S.C. 6316(b)(1)(E)) is amended— 

13 (1) in clause (i), by striking ‘‘In the case’’ and 

14 inserting ‘‘Subject to clauses (ii) and (iii), in the 

15 case’’; 

16 (2) by redesignating clause (ii) as clause (iii); 

17 (3) by inserting after clause (i) the following: 

18 ‘‘(ii) SCHOOL CAPACITY.—The obliga19 tion of a local educational agency to pro20 vide the option to transfer to students 

21 under clause (i) is subject to all applicable 

22 State and local health and safety code re23 quirements regarding facility capacity.’’; 

24 and 
35 

•S 15 IS

1 (4) in clause (iii) (as redesignated by paragraph 

2 (2)), by inserting ‘‘and subject to clause (ii),’’ after 

3 ‘‘public school,’’. 

4 (b) GRANTS FOR SCHOOL CONSTRUCTION AND REN5 OVATION.— 

6 (1) IN GENERAL.—Subpart 1 of part A of title 

7 I of the Elementary and Secondary Education Act 

8 of 1965 (20 U.S.C. 6311 et seq.) is amended by 

9 adding at the end the following: 

10 ‘‘SEC. 1120C. GRANTS FOR SCHOOL CONSTRUCTION AND 

11 RENOVATION. 

12 ‘‘(a) PROGRAM AUTHORIZED.—From funds appro13 priated under subsection (g), the Secretary is authorized 

14 to award grants to local educational agencies experiencing 

15 overcrowding in the schools served by the local educational 

16 agencies, for the construction and renovation of safe, 

17 healthy, high-performance school buildings. 

18 ‘‘(b) APPLICATION.—Each local educational agency 

19 desiring a grant under this section shall submit an appli20 cation to the Secretary at such time, in such manner, and 

21 accompanied by such additional information as the Sec22 retary may require. 

23 ‘‘(c) PRIORITY.—In awarding grants under this sec24 tion, the Secretary shall give priority to local educational 

25 agencies— 
36 

•S 15 IS

1 ‘‘(1) who have documented difficulties in meet2 ing the public school choice requirements of para3 graph (1)(E), (5)(A), (7)(C)(i), or (8)(A)(i) of sec4 tion 1116(b), or section 1116(c)(10)(C)(vii); and 

5 ‘‘(2) with the highest number of schools at or 

6 above capacity. 

7 ‘‘(d) AWARD BASIS.—From funds remaining after 

8 awarding grants under subsection (c), the Secretary shall 

9 award grants to local educational agencies that are experi10 encing overcrowding in the schools served by the local edu11 cational agencies. 

12 ‘‘(e) PREVAILING WAGES.—Any laborer or mechanic 

13 employed by any contractor or subcontractor in the per14 formance of work on any construction funded by a grant 

15 awarded under this section will be paid wages at rates not 

16 less than those prevailing on similar construction in the 

17 locality as determined by the Secretary of Labor under 

18 subchapter IV of chapter 31 of title 40, United States 

19 Code (commonly referred to as the Davis-Bacon Act). 

20 ‘‘(f) DEFINITIONS.—In this section: 

21 ‘‘(1) AT OR ABOVE CAPACITY.—The term ‘at or 

22 above capacity’, in reference to a school, means a 

23 school in which 1 additional student would increase 

24 the average class size of the school above the aver-
37 

•S 15 IS

1 age class size of all schools in the State in which the 

2 school is located. 

3 ‘‘(2) HEALTHY, HIGH-PERFORMANCE SCHOOL

4 BUILDING.—The term ‘healthy, high-performance 

5 school building’ has the meaning given such term in 

6 section 5586. 

7 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be appropriated to carry out this section 

9 $250,000,000 for fiscal year 2006, and such sums as may 

10 be necessary for each of the 2 succeeding fiscal years.’’. 

11 (2) TABLE OF CONTENTS.—The table of con12 tents of the Elementary and Secondary Education 

13 Act of 1965 (20 U.S.C.6301 note) is amended by in14 serting after the item relating to section 1120B the 

15 following: 

‘‘Sec. 1120C. Grants for school construction and renovation.’’. 

16 SEC. 402. SUPPLEMENTAL EDUCATIONAL SERVICES. 

17 Section 1116(e) of the Elementary and Secondary 

18 Education Act of 1965 (20 U.S.C. 6316(e)) is amended— 

19 (1) in paragraph (4)— 

20 (A) in subparagraph (B), by striking the 

21 semicolon and inserting ‘‘, including criteria 

22 that— 

23 ‘‘(i) ensure that personnel delivering 

24 supplemental educational services to stu25 dents have adequate qualifications; and 
38 

•S 15 IS

1 ‘‘(ii) may, at the State’s discretion, 

2 ensure that personnel delivering supple3 mental educational services to students are 

4 teachers that are highly qualified, as such 

5 term is defined in section 9101;’’; 

6 (B) in subparagraph (D), by striking 

7 ‘‘and’’ after the semicolon; 

8 (C) in subparagraph (E), by striking the 

9 period and inserting ‘‘; and’’; and 

10 (D) by adding at the end the following: 

11 ‘‘(F) ensure that the list of approved pro12 viders of supplemental educational services de13 scribed in subparagraph (C) includes a choice 

14 of providers that have sufficient capacity to pro15 vide effective services for children who are lim16 ited English proficient and children with dis17 abilities.’’; 

18 (2) in paragraph (5)(C)— 

19 (A) by striking ‘‘applicable’’; and 

20 (B) by inserting before the period ‘‘, and 

21 acknowledge in writing that, as an approved 

22 provider in the relevant State educational agen23 cy program of providing supplemental edu24 cational services, the provider is deemed to be 

25 a recipient of Federal financial assistance’’; 
39 

•S 15 IS

1 (3) by redesignating paragraphs (6), (7), (8), 

2 (9), (10), (11), and (12) as paragraphs (7), (8), (9), 

3 (10), (11), (12), and (13), respectively; 

4 (4) by inserting after paragraph (5) the fol5 lowing: 

6 ‘‘(6) RULE OF CONSTRUCTION.—Nothing in 

7 this section shall be construed to prohibit a local 

8 educational agency from being considered by a State 

9 educational agency as a potential provider of supple10 mental educational services under this subsection, if 

11 such local educational agency meets the criteria 

12 adopted by the State educational agency in accord13 ance with paragraph (5).’’; 

14 (5) in paragraph (13) (as redesignated by para15 graph (3))— 

16 (A) in subparagraph (B)— 

17 (i) in clause (ii), by striking ‘‘and’’ 

18 after the semicolon; 

19 (ii) in clause (iii), by striking ‘‘and’’ 

20 after the semicolon; and 

21 (iii) by adding at the end the fol22 lowing: 

23 ‘‘(iv) may employ teachers who are 

24 highly qualified, as such term is defined in 

25 section 9101; and 
40 

•S 15 IS

1 ‘‘(v) pursuant to its inclusion on the 

2 relevant State educational agency’s list de3 scribed in paragraph (4)(C), is deemed to 

4 be a recipient of Federal financial assist5 ance; and’’; and 

6 (B) in subparagraph (C)— 

7 (i) in the matter preceding clause (i), 

8 by striking ‘‘are’’; 

9 (ii) in clause (i)— 

10 (I) by inserting ‘‘are’’ before ‘‘in 

11 addition’’; and 

12 (II) by striking ‘‘and’’ after the 

13 semicolon; 

14 (iii) in clause (ii), by striking the pe15 riod and inserting ‘‘; and’’; and 

16 (iv) by adding at the end the fol17 lowing: 

18 ‘‘(iii) if provided by providers that are 

19 included on the relevant State educational 

20 agency’s list described in paragraph 

21 (4)(C), shall be deemed to be programs or 

22 activities of the relevant State educational 

23 agency.’’; and 

24 (6) by adding at the end the following: 
41 

•S 15 IS

1 ‘‘(14) CIVIL RIGHTS.—In providing supple2 mental educational services under this subsection, no 

3 State educational agency or local educational agency 

4 may, directly or through contractual, licensing, or 

5 other arrangements with a provider of supplemental 

6 educational services, engage in any form of discrimi7 nation prohibited by— 

8 ‘‘(A) title VI of the Civil Rights Act of 

9 1964; 

10 ‘‘(B) title IX of the Education Amend11 ments of 1972; 

12 ‘‘(C) section 504 of the Rehabilitation Act 

13 of 1973; 

14 ‘‘(D) titles II and III of the Americans 

15 with Disabilities Act; 

16 ‘‘(E) the Age Discrimination Act of 1975; 

17 ‘‘(F) regulations promulgated under the 

18 authority of the laws listed in subparagraphs 

19 (A) through (E); or 

20 ‘‘(G) other Federal civil rights laws.’’. 

21 SEC. 403. QUALIFICATIONS FOR TEACHERS AND PARA22 PROFESSIONALS. 

23 (a) HIGH OBJECTIVE UNIFORM STATE STANDARD

24 OF EVALUATION.—Section 1119 of the Elementary and 
42 

•S 15 IS

1 Secondary Education Act of 1965 (20 U.S.C. 6319) is 

2 amended— 

3 (1) in subsection (a)(2)— 

4 (A) by redesignating subparagraphs (A) 

5 through (C) as clauses (i) through (iii), respec6 tively, and indenting as appropriate; 

7 (B) by striking ‘‘(2) STATE PLAN.—As 

8 part’’ and inserting the following: 

9 ‘‘(2) STATE PLAN.— 

10 ‘‘(A) IN GENERAL.—As part’’; and 

11 (C) by adding at the end the following: 

12 ‘‘(B) AVAILABILITY OF STATE STAND13 ARDS.—Each State educational agency shall 

14 make available to teachers in the State the high 

15 objective uniform State standard of evaluation, 

16 as described in section 9101(23)(C)(ii), for the 

17 purpose of meeting the teacher qualification re18 quirements established under this section.’’; 

19 (2) by redesignating subsections (e), (f), (g), 

20 (h), (i), (j), (k), and (l) as subsections (f), (g), (h), 

21 (i), (j), (k), (l), and (m), respectively; 

22 (3) by inserting after subsection (d) the fol23 lowing: 

24 ‘‘(e) STATE RESPONSIBILITIES.—Each State edu25 cational agency shall ensure that local educational agen-
43 

•S 15 IS

1 cies in the State make available all options described in 

2 subparagraphs (A) through (C) of subsection (c)(1) to 

3 each new or existing paraprofessional for the purpose of 

4 demonstrating the qualifications of the paraprofessional, 

5 consistent with the requirements of this section.’’; and 

6 (4) in subsection (l) (as redesignated by para7 graph (2)), by striking ‘‘subsection (l)’’ and insert8 ing ‘‘subsection (m)’’. 

9 (b) DEFINITION OF HIGHLY QUALIFIED TEACH10 ERS.—Section 9101(23)(B)(ii) is amended— 

11 (1) in subclause (I), by striking ‘‘or’’ after the 

12 semicolon; 

13 (2) in subclause (II), by striking ‘‘and’’ after 

14 the semicolon; and 

15 (3) by adding at the end the following: 

16 ‘‘(III) in the case of a middle 

17 school teacher, passing a State-ap18 proved middle school generalist exam 

19 when the teacher receives a license to 

20 teach middle school in the State; 

21 ‘‘(IV) obtaining a State middle 

22 school or secondary school social stud23 ies certificate that qualifies the teach24 er to teach history, geography, eco25 nomics, civics, and government in 
44 

•S 15 IS

1 middle schools or in secondary 

2 schools, respectively, in the State; or 

3 ‘‘(V) obtaining a State middle 

4 school or secondary school science cer5 tificate that qualifies the teacher to 

6 teach earth science, biology, chem7 istry, and physics in middle schools or 

8 secondary schools, respectively, in the 

9 State; and’’. 

10 (c) ENSURING HIGHLY QUALIFIED TEACHERS.— 

11 (1) REQUIREMENT.—The Secretary of Edu12 cation shall improve coordination among the teacher 

13 quality programs authorized under the Elementary 

14 and Secondary Education Act of 1965 (20 U.S.C. 

15 6301 et seq.), the Individuals with Disabilities Edu16 cation Act (20 U.S.C. 1400 et seq.), the Higher 

17 Education Act of 1965 (20 U.S.C. 1001 et seq.), 

18 and the Carl D. Perkins Vocational and Technical 

19 Education Act of 1998 (20 U.S.C. 2301 et seq.), to 

20 provide a unified effort in strengthening the Amer21 ican teaching workforce and ensuring highly quali22 fied teachers. 

23 (2) REPORT.—Not later than 6 months after 

24 the date of enactment of this Act, the Secretary of 

25 Education shall submit a report to the relevant com-
45 

•S 15 IS

1 mittees of Congress, that shall be made available on 

2 the website of the Department of Education, on ef3 forts to coordinate programs pursuant to paragraph 

4 (1). 

5 Subtitle B—Adequate Yearly 

6 Progress Determinations 

7 SEC. 421. REVIEW OF ADEQUATE YEARLY PROGRESS DE8 TERMINATIONS FOR SCHOOLS FOR THE 2002–

9 2003 SCHOOL YEAR. 

10 (a) IN GENERAL.—The Secretary shall require each 

11 local educational agency to provide each school served by 

12 the agency with an opportunity to request a review of a 

13 determination by the agency that the school did not make 

14 adequate yearly progress for the 2002–2003 school year. 

15 (b) FINAL DETERMINATION.—Not later than 30 days 

16 after receipt of a request by a school for a review under 

17 this section, a local educational agency shall issue and 

18 make publicly available a final determination on whether 

19 the school made adequate yearly progress for the 2002– 

20 2003 school year. 

21 (c) EVIDENCE.—In conducting a review under this 

22 section, a local educational agency shall— 

23 (1) allow the principal of the school involved to 

24 submit evidence on whether the school made ade-
46 

•S 15 IS

1 quate yearly progress for the 2002–2003 school 

2 year; and 

3 (2) consider that evidence before making a final 

4 determination under subsection (b). 

5 (d) STANDARD OF REVIEW.—In conducting a review 

6 under this section, a local educational agency shall revise, 

7 consistent with the applicable State plan under section 

8 1111 of the Elementary and Secondary Education Act of 

9 1965 (20 U.S.C. 6311), the local educational agency’s 

10 original determination that a school did not make ade11 quate yearly progress for the 2002–2003 school year if 

12 the agency finds that the school made such progress, tak13 ing into consideration— 

14 (1) the amendments made to part 200 of title 

15 34, Code of Federal Regulations (68 Fed. Reg. 

16 68698) (relating to accountability for the academic 

17 achievement of students with the most significant 

18 cognitive disabilities); or 

19 (2) any regulation or guidance that, subsequent 

20 to the date of such original determination, was 

21 issued by the Secretary relating to— 

22 (A) the assessment of limited English pro23 ficient children; 

24 (B) the inclusion of limited English pro25 ficient children as part of the subgroup de-
47 

•S 15 IS

1 scribed in section 1111(b)(2)(C)(v)(II)(dd) of 

2 the Elementary and Secondary Education Act 

3 of 1965 (20 U.S.C. 6311(b)(2)(C)(v)(II)(dd)) 

4 after such children have obtained English pro5 ficiency; or 

6 (C) any requirement under section 

7 1111(b)(2)(I)(ii) of the Elementary and Sec8 ondary Education Act of 1965 (20 U.S.C. 

9 6311(b)(2)(I)(ii)). 

10 (e) EFFECT OF REVISED DETERMINATION.— 

11 (1) IN GENERAL.—If pursuant to a review 

12 under this section a local educational agency deter13 mines that a school made adequate yearly progress 

14 for the 2002–2003 school year, upon such deter15 mination— 

16 (A) any action by the Secretary, the State 

17 educational agency, or the local educational 

18 agency that was taken because of a prior deter19 mination that the school did not make such 

20 progress shall be terminated; and 

21 (B) any obligations or actions required of 

22 the local educational agency or the school be23 cause of the prior determination shall cease to 

24 be required. 
48 

•S 15 IS

1 (2) EXCEPTIONS.—Notwithstanding paragraph 

2 (1), a determination under this section shall not af3 fect any obligation or action required of a local edu4 cational agency or school under the following: 

5 (A) Section 1116(b)(13) of the Elementary 

6 and Secondary Education Act of 1965 (20 

7 U.S.C. 6316(b)(13)) (requiring a local edu8 cational agency to continue to permit a child 

9 who transferred to another school under such 

10 section to remain in that school until comple11 tion of the highest grade in the school). 

12 (B) Section 1116(e)(9) of the Elementary 

13 and Secondary Education Act of 1965 (as re14 designated by section 402(3)) (20 U.S.C. 

15 6316(e)(9)) (requiring a local educational agen16 cy to continue to provide supplemental edu17 cational services under such section until the 

18 end of the school year). 

19 (3) SUBSEQUENT DETERMINATIONS.—In deter20 mining whether a school is subject to school im21 provement, corrective action, or restructuring as a 

22 result of not making adequate yearly progress, the 

23 Secretary, a State educational agency, or a local 

24 educational agency may not take into account a de25 termination that the school did not make adequate 
49 

•S 15 IS

1 yearly progress for the 2002–2003 school year if 

2 such determination was revised under this section 

3 and the school received a final determination of hav4 ing made adequate yearly progress for the 2002– 

5 2003 school year. 

6 (f) NOTIFICATION.—The Secretary— 

7 (1) shall require each State educational agency 

8 to notify each school served by the agency of the 

9 school’s ability to request a review under this sec10 tion; and 

11 (2) not later than 30 days after the date of the 

12 enactment of this section, shall notify the public by 

13 means of the Department of Education’s website of 

14 the review process established under this section. 

15 SEC. 422. REVIEW OF ADEQUATE YEARLY PROGRESS DE16 TERMINATIONS FOR LOCAL EDUCATIONAL 

17 AGENCIES FOR THE 2002–2003 SCHOOL YEAR. 

18 (a) IN GENERAL.—The Secretary shall require each 

19 State educational agency to provide each local educational 

20 agency in the State with an opportunity to request a re21 view of a determination by the State educational agency 

22 that the local educational agency did not make adequate 

23 yearly progress for the 2002–2003 school year. 

24 (b) APPLICATION OF CERTAIN PROVISIONS.—Except 

25 as inconsistent with, or inapplicable to, this section, the 
50 

•S 15 IS

1 provisions of section 421 shall apply to review by a State 

2 educational agency of a determination described in sub3 section (a) in the same manner and to the same extent 

4 as such provisions apply to review by a local educational 

5 agency of a determination described in section 421(a). 

6 SEC. 423. DEFINITIONS. 

7 In this subtitle: 

8 (1) The term ‘‘adequate yearly progress’’ has 

9 the meaning given to that term in section 

10 1111(b)(2)(C) of the Elementary and Secondary 

11 Education Act of 1965 (20 U.S.C. 6311(b)(2)(C)). 

12 (2) The term ‘‘local educational agency’’ means 

13 a local educational agency (as that term is defined 

14 in section 9101 of the Elementary and Secondary 

15 Education Act of 1965 (20 U.S.C. 7801)) receiving 

16 funds under part A of title I of such Act (20 U.S.C. 

17 6311 et seq.). 

18 (3) The term ‘‘Secretary’’ means the Secretary 

19 of Education. 

20 (4) The term ‘‘school’’ means an elementary 

21 school or a secondary school (as those terms are de22 fined in section 9101 of the Elementary and Sec23 ondary Education Act of 1965 (20 U.S.C. 7801)) 

24 served under part A of title I of such Act (20 U.S.C. 

25 6311 et seq.). 
51 

•S 15 IS

1 (5) The term ‘‘State educational agency’’ means 

2 a State educational agency (as that term is defined 

3 in section 9101 of the Elementary and Secondary 

4 Education Act of 1965 (20 U.S.C. 7801)) receiving 

5 funds under part A of title I of such Act (20 U.S.C. 

6 6311 et seq.). 

7 Subtitle C—Technical Assistance 

8 SEC. 451. TECHNICAL ASSISTANCE. 

9 (a) IN GENERAL.—Part F of title IX of the Elemen10 tary and Secondary Education Act of 1965 (20 U.S.C. 

11 7941) is amended— 

12 (1) in the part heading, by inserting ‘‘AND 

13 TECHNICAL ASSISTANCE’’ after ‘‘EVAL14 UATIONS’’; and 

15 (2) by adding at the end the following: 

16 ‘‘SEC. 9602. TECHNICAL ASSISTANCE. 

17 ‘‘The Secretary shall ensure that the technical assist18 ance provided by, and the research developed and dissemi19 nated through, the Institute of Education Sciences and 

20 other offices or agencies of the Department provide edu21 cators and parents with the needed information and sup22 port for identifying and using educational strategies, pro23 grams, and practices, including strategies, programs, and 

24 practices available through the clearinghouses supported 

25 under the Education Sciences Reform Act of 2002 (20 
52 

•S 15 IS

1 U.S.C. 9501 et seq.) and other federally supported clear2 inghouses, that have been successful in improving edu3 cational opportunities and achievement for all students.’’. 

4 (b) TABLE OF CONTENTS.—The table of contents of 

5 the Elementary and Secondary Education Act of 1965 (20 

6 U.S.C. 6301 note) is amended by inserting after the item 

7 relating to section 9601 the following: 

‘‘Sec. 9602. Technical assistance.’’. 

8 TITLE V—IMPROVING ASSESS9 MENT AND ACCOUNTABILITY 

10 SEC. 501. GRANTS FOR INCREASING DATA CAPACITY FOR 

11 PURPOSES OF ASSESSMENT AND ACCOUNT12 ABILITY. 

13 (a) PROGRAM AUTHORIZED.—From funds appro14 priated for a fiscal year, the Secretary may award grants, 

15 on a competitive basis, to State educational agencies— 

16 (1) to enable the State educational agencies to 

17 develop or increase the capacity of data systems for 

18 assessment and accountability purposes, including 

19 the collection of graduation rates; and 

20 (2) to award subgrants to increase the capacity 

21 of local educational agencies to upgrade, create, or 

22 manage longitudinal data systems for the purpose of 

23 measuring student academic progress and achieve24 ment. 
53 

•S 15 IS

1 (b) STATE APPLICATION.—Each State educational 

2 agency desiring a grant under this section shall submit 

3 an application to the Secretary at such time, in such man4 ner, and containing such information as the Secretary may 

5 require. 

6 (c) STATE USE OF FUNDS.—Each State educational 

7 agency that receives a grant under this section shall use— 

8 (1) not more than 20 percent of the grant 

9 funds for the purpose of— 

10 (A) increasing the capacity of, or creating, 

11 State databases to collect, disaggregate, and re12 port information related to student achieve13 ment, enrollment, and graduation rates for as14 sessment and accountability purposes; and 

15 (B) reporting, on an annual basis, for the 

16 elementary schools and secondary schools with17 in the State, on— 

18 (i) the enrollment data from the be19 ginning of the academic year; 

20 (ii) the enrollment data from the end 

21 of the academic year; and 

22 (iii) the twelfth grade graduation 

23 rates; and 

24 (2) not less than 80 percent of the grant funds 

25 to award subgrants to local educational agencies 
54 

•S 15 IS

1 within the State to enable the local educational 

2 agencies to carry out the authorized activities de3 scribed in subsection (e). 

4 (d) LOCAL APPLICATION.—Each local educational 

5 agency desiring a subgrant under this section shall submit 

6 an application to the State educational agency at such 

7 time, in such manner, and containing such information as 

8 the State educational agency may require. Each such ap9 plication shall include, at a minimum, a demonstration of 

10 the local educational agency’s ability to put a longitudinal 

11 data system in place. 

12 (e) LOCAL AUTHORIZED ACTIVITIES.—Each local 

13 educational agency that receives a subgrant under this 

14 section shall use the subgrant funds to increase the capac15 ity of the local educational agency to upgrade or manage 

16 longitudinal data systems consistent with the uses in sub17 section (c)(1), by— 

18 (1) purchasing database software or hardware; 

19 (2) hiring additional staff for the purpose of 

20 managing such data; 

21 (3) providing professional development or addi22 tional training for such staff; and 

23 (4) providing professional development or train24 ing for principals and teachers on how to effectively 

25 use such data to implement instructional strategies 
55 

•S 15 IS

1 to improve student achievement and graduation 

2 rates. 

3 (f) DEFINITIONS.—In this section: 

4 (1) GRADUATION RATE.—The term ‘‘graduation 

5 rate’’ means the percentage that— 

6 (A) the total number of students who— 

7 (i) graduate from a secondary school 

8 with a regular diploma (which shall not in9 clude the recognized equivalent of a sec10 ondary school diploma or an alternative de11 gree) in an academic year; and 

12 (ii) graduated on time by progressing 

13 1 grade per academic year; represents of 

14 (B) the total number of students who en15 tered the secondary school in the entry level 

16 academic year applicable to the graduating stu17 dents. 

18 (2) SECRETARY.—The term ‘‘Secretary’’ means 

19 the Secretary of Education. 

20 (3) STATE EDUCATIONAL AGENCY AND LOCAL

21 EDUCATIONAL AGENCY.—The terms ‘‘State edu22 cational agency’’ and ‘‘local educational agency’’ 

23 have the meanings given such terms in section 9101 

24 of the Elementary and Secondary Education Act of 

25 1965 (20 U.S.C. 7801). 
56 

•S 15 IS

1 (g) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to carry out this section 

3 $100,000,000 for fiscal year 2006, and such sums as may 

4 be necessary for each of the 2 succeeding fiscal years. 

5 SEC. 502. GRANTS FOR ASSESSMENT OF CHILDREN WITH 

6 DISABILITIES AND CHILDREN WHO ARE LIM7 ITED ENGLISH PROFICIENT. 

8 (a) GRANTS FOR ASSESSMENT OF CHILDREN WITH

9 DISABILITIES AND CHILDREN WHO ARE LIMITED

10 ENGLISH PROFICIENT.—Part E of title I of the Elemen11 tary and Secondary Education Act of 1965 (20 U.S.C. 

12 6491 et seq.) is amended by adding at the end the fol13 lowing: 

14 ‘‘SEC. 1505. GRANTS FOR ASSESSMENT OF CHILDREN WITH 

15 DISABILITIES AND CHILDREN WHO ARE LIM16 ITED ENGLISH PROFICIENT. 

17 ‘‘(a) GRANTS AUTHORIZED.—From amounts author18 ized to be appropriated under subsection (e) for a fiscal 

19 year, the Secretary shall award grants, on a competitive 

20 basis, to State educational agencies, or to consortia of 

21 State educational agencies, to enable the State educational 

22 agencies or consortia to collaborate with institutions of 

23 higher education, research institutions, or other organiza24 tions— 
57 

•S 15 IS

1 ‘‘(1) to design and improve State academic as2 sessments for students who are limited English pro3 ficient and students with disabilities; and 

4 ‘‘(2) to ensure the most accurate, valid, and re5 liable means to assess academic content standards 

6 and student academic achievement standards for 

7 students who are limited English proficient and stu8 dents with disabilities. 

9 ‘‘(b) AUTHORIZED ACTIVITIES.—A State educational 

10 agency or consortium that receives a grant under this sec11 tion shall use the grant funds to carry out 1 or more of 

12 the following activities: 

13 ‘‘(1) Developing alternate assessments for stu14 dents with disabilities, consistent with section 1111 

15 and the amendments made on December 9, 2003, to 

16 part 200 of title 34, Code of Federal Regulations 

17 (68 Fed. Reg. 68698) (relating to accountability for 

18 the academic achievement of students with the most 

19 significant cognitive disabilities), including— 

20 ‘‘(A) the alignment of such assessments, as 

21 appropriate and consistent with such amend22 ments, with— 

23 ‘‘(i) State student academic achieve24 ment standards and State academic con25 tent standards for all students; or 
58 

•S 15 IS

1 ‘‘(ii) alternate State student academic 

2 achievement standards that reflect the in3 tended instructional construct for students 

4 with disabilities; 

5 ‘‘(B) activities to ensure that such assess6 ments do not reflect the disabilities, or associ7 ated characteristics, of the students that are ex8 traneous to the intent of the measurement; 

9 ‘‘(C) the development of an implementation 

10 plan for pilot tests for such assessments, in 

11 order to determine the level of appropriateness 

12 and feasibility of full-scale administration; and 

13 ‘‘(D) activities that provide for the reten14 tion of all feasible standardized features in the 

15 alternate assessments. 

16 ‘‘(2) Developing alternate assessments that 

17 meet the requirements of section 1111 for students 

18 who are limited English proficient, including— 

19 ‘‘(A) the alignment of such assessments 

20 with State student academic achievement stand21 ards and State academic content standards for 

22 all students; 

23 ‘‘(B) the development of parallel native 

24 language assessments or linguistically modified 

25 assessments for limited English proficient stu-
59 

•S 15 IS

1 dents that meet the requirements of section 

2 1111(b)(3)(C)(ix)(III); 

3 ‘‘(C) the development of an implementation 

4 plan for pilot tests for such assessments, in 

5 order to determine the level of appropriateness 

6 and feasibility of full-scale administration; and 

7 ‘‘(D) activities that provide for the reten8 tion of all feasible standardized features in the 

9 alternate assessments. 

10 ‘‘(3) Developing, modifying, or revising State 

11 policies and criteria for appropriate accommodations 

12 to ensure the full participation of students who are 

13 limited English proficient and students with disabil14 ities in State academic assessments, including— 

15 ‘‘(A) developing a plan to ensure that as16 sessments provided with accommodations are 

17 fully included and integrated into the account18 ability system, for the purpose of making the 

19 determinations of adequate yearly progress re20 quired under section 1116; 

21 ‘‘(B) ensuring the validity, reliability, and 

22 appropriateness of such accommodations, such 

23 as— 

24 ‘‘(i) a modification to the presentation 

25 or format of the assessment; 
60 

•S 15 IS

1 ‘‘(ii) the use of assistive devices; 

2 ‘‘(iii) an extension of the time allowed 

3 for testing; 

4 ‘‘(iv) an alteration of the test setting 

5 or procedures; 

6 ‘‘(v) the administration of portions of 

7 the test in a method appropriate for the 

8 level of language proficiency of the test 

9 taker; 

10 ‘‘(vi) the use of a glossary or dic11 tionary; and 

12 ‘‘(vii) the use of a linguistically modi13 fied assessment; 

14 ‘‘(C) ensuring that State policies and cri15 teria for appropriate accommodations take into 

16 account the form or program of instruction pro17 vided to students, including the level of dif18 ficulty, reliability, cultural difference, and con19 tent equivalence of such form or program; 

20 ‘‘(D) ensuring that such policies are con21 sistent with the standards prepared by the 

22 Joint Committee on Standards for Educational 

23 and Psychological Testing of the American 

24 Educational Research Association, the Amer25 ican Psychological Association, and the Na-
61 

•S 15 IS

1 tional Council on Measurement in Education; 

2 and 

3 ‘‘(E) developing a plan for providing train4 ing on the use of accommodations to school in5 structional staff, families, students, and other 

6 appropriate parties. 

7 ‘‘(4) Developing universally designed assess8 ments that can be accessible to all students, includ9 ing— 

10 ‘‘(A) examining test item or test perform11 ance for students with disabilities and students 

12 who are limited English proficient, to determine 

13 the extent to which the test item or test is uni14 versally designed; 

15 ‘‘(B) using think aloud and cognitive lab16 oratory procedures, as well as item statistics, to 

17 identify test items that may pose particular 

18 problems for students with disabilities or stu19 dents who are limited English proficient; 

20 ‘‘(C) developing and implementing a plan 

21 to ensure that developers and reviewers of test 

22 items are trained in the principles of universal 

23 design; and 

24 ‘‘(D) developing computer-based applica25 tions of universal design principles. 
62 

•S 15 IS

1 ‘‘(c) APPLICATION.—Each State educational agency, 

2 or consortium of State educational agencies, desiring to 

3 apply for a grant under this section shall submit an appli4 cation to the Secretary at such time, in such manner, and 

5 containing such information as the Secretary may require, 

6 including— 

7 ‘‘(1) information regarding the institutions of 

8 higher education, research institutions, or other or9 ganizations that are collaborating with the State 

10 educational agency or consortium, in accordance 

11 with subsection (a); 

12 ‘‘(2) in the case of a consortium of State edu13 cational agencies, the designation of 1 State edu14 cational agency as the fiscal agent for the receipt of 

15 grant funds; 

16 ‘‘(3) a description of the process and criteria by 

17 which the State educational agency will identify stu18 dents that are unable to participate in general State 

19 content assessments and are eligible to take alter20 nate assessments, consistent with the amendments 

21 made to part 200 of title 34, Code of Federal Regu22 lations (68 Fed. Reg. 68698); 

23 ‘‘(4) in the case of a State educational agency 

24 or consortium carrying out the activity described in 

25 subsection (b)(1)(A), a description of how the State 
63 

•S 15 IS

1 educational agency plans to fulfill the requirement of 

2 subsection (b)(1)(A); 

3 ‘‘(5) in the case of a State educational agency 

4 or consortium carrying out the activities described in 

5 paragraphs (1), (2), and (4) of subsection (b), infor6 mation regarding the proposed techniques for the 

7 development of alternate assessments, including a 

8 description of the technical adequacy of, technical 

9 aspects of, and scoring for such assessments; 

10 ‘‘(6) a plan for providing training for school in11 structional staff, families, students, and other appro12 priate parties on the use of alternate assessments; 

13 and 

14 ‘‘(7) information on how the scores of students 

15 participating in alternate assessments will be re16 ported to the public and to parents. 

17 ‘‘(d) EVALUATION AND REPORTING REQUIRE18 MENTS.—Each State educational agency receiving a grant 

19 under this section shall submit an annual report to the 

20 Secretary describing the activities carried out under the 

21 grant and the result of such activities, including— 

22 ‘‘(1) details on the effectiveness of the activities 

23 supported under this section in helping students 

24 with disabilities, or students who are limited English 
64 

•S 15 IS

1 proficient, better participate in State assessment 

2 programs; and 

3 ‘‘(2) information on the change in achievement, 

4 if any, of students with disabilities and students who 

5 are limited English proficient, as a result of a more 

6 accurate assessment of such students. 

7 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be appropriated to carry out this section 

9 $50,000,000 for fiscal year 2006, and such sums as may 

10 be necessary for each of the 2 succeeding fiscal years.’’. 

11 (b) TABLE OF CONTENTS.—The table of contents of 

12 the Elementary and Secondary Education Act of 1965 (20 

13 U.S.C. 6301 note) is amended by inserting after the item 

14 relating to section 1504 the following: 

‘‘Sec. 1505. Grants for assessment of children with disabilities and children 

who are limited English proficient.’’. 

15 SEC. 503. REPORTS ON STUDENT ENROLLMENT AND GRAD16 UATION RATES. 

17 (a) STUDENT ENROLLMENT AND GRADUATION

18 RATES.—Part E of title I of the Elementary and Sec19 ondary Education Act of 1965 (as amended by section 

20 502) (20 U.S.C. 6491 et seq.) is amended by adding at 

21 the end the following: 
65 

•S 15 IS

1 ‘‘SEC. 1506. REPORTS ON STUDENT ENROLLMENT AND 

2 GRADUATION RATES. 

3 ‘‘(a) IN GENERAL.—The Secretary shall collect from 

4 each State educational agency, local educational agency, 

5 and school, on an annual basis, the following data: 

6 ‘‘(1) The number of students enrolled in each 

7 of grades 7 through 12 at the beginning of the most 

8 recent school year. 

9 ‘‘(2) The number of students enrolled in each 

10 of grades 7 through 12 at the end of the most recent 

11 school year. 

12 ‘‘(3) The graduation rate for the most recent 

13 school year. 

14 ‘‘(4) The data described in paragraphs (1) 

15 through (3), disaggregated by the groups of students 

16 described in section 1111(b)(2)(C)(v)(II). 

17 ‘‘(b) ANNUAL REPORT.—The Secretary shall report 

18 the information collected under subsection (a) on an an19 nual basis.’’. 

20 (b) TABLE OF CONTENTS.—The table of contents of 

21 the Elementary and Secondary Education Act of 1965 (as 

22 amended by section 502(b)) (20 U.S.C. 6301 note) is 

23 amended by inserting after the item relating to section 

24 1505 the following: 

‘‘Sec. 1506. Reports on student enrollment and graduation rates.’’. 
66 

•S 15 IS

1 SEC. 504. CIVIL RIGHTS. 

2 Section 9534 of the Elementary and Secondary Edu3 cation Act of 1965 (20 U.S.C. 7914) is amended— 

4 (1) by redesignating subsections (a) and (b) as 

5 subsections (b) and (c), respectively; and 

6 (2) by inserting before subsection (b) (as redes7 ignated by paragraph (1)) the following: 

8 ‘‘(a) PROHIBITION OF DISCRIMINATION.—Discrimi9 nation on the basis of race, color, religion, sex (except as 

10 otherwise permitted under title IX of the Education 

11 Amendments of 1972), national origin, or disability in any 

12 program funded under this Act is prohibited.’’. 

13 TITLE VI—SENSE OF THE SEN14 ATE REGARDING FUNDING 

15 FOR ELEMENTARY AND SEC16 ONDARY EDUCATION 

17 SEC. 601. SENSE OF THE SENATE. 

18 (a) FINDINGS.—The Senate finds the following: 

19 (1) Congress enacted, with bipartisan support, 

20 and the President signed into law the No Child Left 

21 Behind Act of 2001 (Public Law 107–210; 115 Stat. 

22 1425), that reauthorized the Elementary and Sec23 ondary Education Act of 1965 (20 U.S.C. 6301 et 

24 seq.). The new law required States to set high stand25 ards for learning and required schools to implement 

26 reforms to help improve student achievement. In re-
67 

•S 15 IS

1 turn, Congress and the President pledged to make 

2 sure schools would have resources to carry out the 

3 reforms as called for in the new law. 

4 (2) $22,750,000,000 is needed to fund part A 

5 of title I of the Elementary and Secondary Edu6 cation Act of 1965 (20 U.S.C. 6311 et seq.) in fiscal 

7 year 2006, as promised pursuant to the No Child 

8 Left Behind Act of 2001 (Public Law 107–210; 115 

9 Stat. 1425). 

10 (3) $25,000,000,000 is needed to fund part A 

11 of title I of the Elementary and Secondary Edu12 cation Act of 1965 (20 U.S.C. 6311 et seq.) in fiscal 

13 year 2007, as promised pursuant to the No Child 

14 Left Behind Act of 2001 (Public Law 107–210; 115 

15 Stat. 1425). 

16 (b) SENSE OF THE SENATE.—It is the sense of the 

17 Senate that— 

18 (1) it is in the best interest of the Nation that 

19 all students have access to a high-quality elementary 

20 and secondary education; and 

21 (2) part A of title I of the Elementary and Sec22 ondary Education Act of 1965 (20 U.S.C. 6311 et 

23 seq.) should be funded as promised pursuant to the 

24 No Child Left Behind Act of 2001 (Public Law 

25 107–210; 115 Stat. 1425). 
68 

•S 15 IS

1 TITLE VII—PROVIDING A ROAD2 MAP FOR FIRST GENERATION 

3 COLLEGE FOR STUDENTS 

4 SEC. 701. EXPANSION OF TRIO AND GEARUP. 

5 The Higher Education Act of 1965 (20 U.S.C. 1001 

6 et seq.) is amended— 

7 (1) in section 402A(f), by striking 

8 ‘‘$700,000,000 for fiscal year 1999’’ and inserting 

9 ‘‘$1,000,000,000 for fiscal year 2006’’; and 

10 (2) by striking section 404H and inserting the 

11 following: 

12 ‘‘SEC. 404H. AUTHORIZATION OF APPROPRIATIONS. 

13 ‘‘There are authorized to be appropriated to carry out 

14 this chapter $400,000,000 for fiscal year 2006 and such 

15 sums as may be necessary for each of the 4 succeeding 

16 fiscal years.’’. 

17 TITLE VIII—COLLEGE TUITION 

18 RELIEF FOR STUDENTS AND 

19 THEIR FAMILIES THROUGH 

20 PELL GRANTS 

21 SEC. 801. PELL GRANTS TAX TABLES HOLD HARMLESS. 

22 Notwithstanding any other provision of law, the an23 nual updates to the allowance for State and other taxes 

24 in the tables used in the Federal Need Analysis Method25 ology to determine a student’s expected family contribu-
69 

•S 15 IS

1 tion for the award year 2005–2006 under part F of title 

2 IV of the Higher Education Act of 1965 (20 U.S.C. 

3 1087kk et seq.), published in the Federal Register on 

4 Thursday, December 23, 2004 (69 Fed. Reg. 76926), 

5 shall not apply to a student to the extent the updates will 

6 reduce the amount of Federal student assistance for which 

7 the student is eligible. 

8 SEC. 802. SENSE OF THE SENATE REGARDING INCREASING 

9 THE MAXIMUM PELL GRANT. 

10 (a) FINDINGS.—The Senate makes the following 

11 findings: 

12 (1) Increasing the percentage of individuals who 

13 obtain a postsecondary education has become in14 creasingly important, not just to the individual bene15 ficiary, but to the Nation as a whole. The growth 

16 and continued expansion of the Nation’s economy is 

17 heavily dependent on an educated and highly skilled 

18 workforce. 

19 (2) The opportunity to gain a postsecondary 

20 education also is important to the Nation as a 

21 means to help advance the American ideals of 

22 progress and equality. 

23 (3) The Federal Government plays an invalu24 able role in making student financial aid available to 

25 ensure that qualified students are able to attend col-
70 

•S 15 IS

1 lege, regardless of their financial means. Since the 

2 inception of the Pell Grant program in 1973, nearly 

3 80,000,000 grants have helped low- and middle-in4 come students go to college, enrich their lives, and 

5 become productive members of society. 

6 (4) Nationwide, almost 63 percent of secondary 

7 school graduates continue on to higher education im8 mediately after completing secondary school. This 

9 degree of college participation would not exist with10 out the Federal investment in student aid, especially 

11 the Pell Grant program. More than 4,000,000 low12 and middle-income students receive Pell Grants; 95 

13 percent of whom have a family income of not more 

14 than $40,000. 

15 (5) In the next 10 years, the number of under16 graduate students enrolled in the Nation’s colleges 

17 and universities will increase by 15 percent to more 

18 than 15,000,000 students. Many of these students 

19 will be the first in their families to attend college. 

20 The continued investment in the Pell Grant program 

21 is essential if college is to remain an achievable part 

22 of the American dream. 

23 (6) Increasing the maximum Pell Grant to 

24 $5,100 would allow more than 430,000 additional 

25 students to benefit from the program. 
71 

•S 15 IS

1 (7) Increasing the maximum Pell Grant to 

2 $5,100 would result in 200,000 new Pell Grant re3 cipients. 

4 (8) Pell Grant recipients are more likely to 

5 graduate with student loan debt and to amass more 

6 debt than other student borrowers. Increasing the 

7 maximum Pell Grant to $5,100 will help remedy this 

8 disparity. 

9 (b) SENSE OF THE SENATE.—It is the sense of the 

10 Senate that— 

11 (1) the maximum Pell Grant should be in12 creased to $5,100 during award year 2006–2007; 

13 and 

14 (2) the maximum Pell Grant amount set by 

15 Congress should be the amount eligible students re16 ceive. 

17 SEC. 803. ESTABLISHMENT OF A PELL DEMONSTRATION 

18 PROGRAM. 

19 (a) FINDINGS.—Congress finds that: 

20 (1) A student remains eligible to receive a Fed21 eral Pell Grant as long as the student is income-eli22 gible and has not received a bachelor’s degree. 

23 (2) By encouraging persistence and degree ac24 quisition in a timely manner, the Federal Govern25 ment, in effect, saves money— 
72 

•S 15 IS

1 (A) by reducing the courses that do not 

2 lead to a degree; and 

3 (B) by helping students get the financial 

4 benefits of a college degree as soon as possible. 

5 (b) PELL DEMONSTRATION PROGRAM.— 

6 (1) AUTHORIZATION.—The Secretary of Edu7 cation shall establish a demonstration program to fa8 cilitate the ability of low-income students to com9 plete the students’ degree within 150 percent of the 

10 time expected to complete such degree. 

11 (2) GRANTS.—The Secretary of Education shall 

12 award competitive grants to institutions of higher 

13 education to enable students who are eligible to re14 ceive Federal Pell Grants under subpart 1 of part A 

15 of title IV of the Higher Education Act of 1965 (20 

16 U.S.C. 1070a et seq.) to enroll in courses in the 

17 summer at such institutions to expedite the stu18 dents’ graduation from the institutions. 

19 (3) AUTHORIZATION OF APPROPRIATIONS.— 

20 There is authorized to be appropriated to carry out 

21 this subsection $500,000,000 for the period of fiscal 

22 years 2006 through 2008. 
73 

•S 15 IS

1 TITLE IX—TUITION FREE COL2 LEGE FOR MATHEMATICS, 

3 SCIENCE, AND SPECIAL EDU4 CATION TEACHERS 

5 SEC. 901. PURPOSE. 

6 It is the purpose of this title to make public college 

7 tuition free for future mathematics, science, and special 

8 education teachers and to provide additional assistance to 

9 students eligible to receive a Federal Pell Grant under 

10 subpart 1 of part A of title IV of the Higher Education 

11 Act of 1965 (20 U.S.C. 1070a et seq.). 

12 SEC. 902. TUITION FREE COLLEGE FOR MATHEMATICS, 

13 SCIENCE, AND SPECIAL EDUCATION TEACH14 ERS. 

15 (a) ADDITIONAL AMOUNTS FOR TEACHERS IN MATH16 EMATICS, SCIENCE, AND SPECIAL EDUCATION.— 

17 (1) FFEL LOANS.—Section 428J(c)(3) of the 

18 Higher Education Act of 1965 (20 U.S.C. 1078– 

19 10(c)(3)) is amended by striking ‘‘$17,500’’ and in20 serting ‘‘$23,000’’. 

21 (2) DIRECT LOANS.—Section 460(c)(3) of the 

22 Higher Education Act of 1965 (20 U.S.C. 

23 1087j(c)(3)) is amended by striking ‘‘$17,500’’ and 

24 inserting ‘‘$23,000’’. 
74 

•S 15 IS

1 (b) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply only with respect to eligible individ3 uals who are new borrowers on or after October 1, 1998. 

4 SEC. 903. OFFSET FOR TUITION FREE COLLEGE FOR MATH5 EMATICS, SCIENCE, AND SPECIAL EDU6 CATION TEACHERS. 

7 (a) SPECIAL ALLOWANCES.— 

8 (1) IN GENERAL.—Section 438(b)(2)(B) of the 

9 Higher Education Act of 1965 (20 U.S.C. 1087– 

10 1(b)(2)(B)) is amended— 

11 (A) in clause (iv), by striking ‘‘or refunded 

12 after September 30, 2004, and before January 

13 1, 2006,’’ and inserting ‘‘or refunded on or 

14 after the date of enactment of the Taxpayer15 Teacher Protection Act of 2004,’’; and 

16 (B) by striking clause (v) and inserting the 

17 following: 

18 ‘‘(v) Notwithstanding clauses (i) and 

19 (ii), the quarterly rate of the special allow20 ance shall be the rate determined under 

21 subparagraph (A), (E), (F), (G), (H), or 

22 (I) of this paragraph, or paragraph (4), as 

23 the case may be, for loans— 

24 ‘‘(I) originated, transferred, or 

25 purchased on or after the date of en-
75 

•S 15 IS

1 actment of the Taxpayer-Teacher Pro2 tection Act of 2004; 

3 ‘‘(II) financed by an obligation 

4 that has matured, been retired, or 

5 defeased on or after the date of enact6 ment of the Taxpayer-Teacher Protec7 tion Act of 2004; 

8 ‘‘(III) which the special allowance 

9 was determined under such subpara10 graphs or paragraph, as the case may 

11 be, on or after the date of enactment 

12 of the Taxpayer-Teacher Protection 

13 Act of 2004; 

14 ‘‘(IV) for which the maturity 

15 date of the obligation from which 

16 funds were obtained for such loans 

17 was extended on or after the date of 

18 enactment of the Taxpayer-Teacher 

19 Protection Act of 2004; or 

20 ‘‘(V) sold or transferred to any 

21 other holder on or after the date of 

22 enactment of the Taxpayer-Teacher 

23 Protection Act of 2004.’’. 

24 (2) RULE OF CONSTRUCTION.—Nothing in the 

25 amendment made by paragraph (1) shall be con-
76 

•S 15 IS

1 strued to abrogate a contractual agreement between 

2 the Federal Government and a student loan pro3 vider. 

4 (b) AVAILABLE FUNDS FROM REDUCED EXPENDI5 TURES.— 

6 (1) IN GENERAL.—Any funds available to the 

7 Secretary of Education as a result of reduced ex8 penditures under section 438 of the Higher Edu9 cation Act of 1965 (20 U.S.C. 1087–1) secured by 

10 the enactment of subsection (a) shall first be used 

11 by the Secretary for loan cancellation and loan for12 giveness for teachers under sections 428J and 460 

13 of the Higher Education Act of 1965 (20 U.S.C. 

14 1078–10, 1087j), as amended by section 902 of this 

15 Act. 

16 (2) REMAINING FUNDS.— 

17 (A) IN GENERAL.—Any such funds re18 maining after carrying out paragraph (1) shall 

19 be used by the Secretary of Education to make 

20 payments to each nonprofit lender in an 

21 amount that bears the same relation to the re22 maining funds as the amount the nonprofit 

23 lender receives for fiscal year 2005 under sec24 tion 438(b)(2)(B) of the Higher Education Act 

25 of 1965 (20 U.S.C. 1087–1(b)(2)(B)) bears to 
77 

•S 15 IS

1 the total amount received by nonprofit lenders 

2 for fiscal year 2005 under such section. 

3 (B) DEFINITION OF NONPROFIT LEND4 ER.—In this paragraph the term ‘‘nonprofit 

5 lender’’ means an eligible lender (as defined in 

6 section 435(d) of the Higher Education Act of 

7 1965 (20 U.S.C.1085(d)) that— 

8 (i) is an organization described in sec9 tion 501(c)(3) of the Internal Revenue 

10 Code of 1986; 

11 (ii) is a nonprofit entity as defined by 

12 applicable State law; and 

13 (iii) meets the following requirements: 

14 (I) The nonprofit lender does not 

15 confer a salary or benefits to any em16 ployee of the nonprofit lender in an 

17 amount that is in excess of the salary 

18 and benefits provided to the Secretary 

19 of Education by the Department of 

20 Education. 

21 (II) The nonprofit lender does 

22 not maintain an ongoing relationship 

23 whereby the nonprofit lender passes 

24 on revenue directly or indirectly 

25 through lease, securitization, resale, 
78 

•S 15 IS

1 or any other financial instrument to a 

2 for-profit entity or to shareholders. 

3 (III) The nonprofit lender does 

4 not offer benefits to a borrower in a 

5 manner directly or indirectly predi6 cated on such borrower’s participa7 tion— 

8 (aa) in a program under 

9 part B or D of title IV of the 

10 Higher Education Act of 1965 

11 (20 U.S.C. 1071 et seq., 1087a 

12 et seq.); or 

13 (bb) with any particular 

14 lender. 

15 (IV) The nonprofit lender cer16 tifies that the nonprofit lender uses 

17 the payment received pursuant to sub18 paragraph (A) to confer grant or 

19 scholarship benefits to students who 

20 are eligible to receive Federal Pell 

21 Grants under subpart 1 of part A of 

22 title IV of the Higher Education Act 

23 of 1965 (20 U.S.C. 1070a et seq.). 

24 (V) The nonprofit lender is sub25 ject to public oversight through either 
79 

•S 15 IS

1 a State charter, or through not less 

2 than 50 percent of the nonprofit lend3 er’s board of directors consisting of 

4 State appointed representatives. 

5 (VI) The nonprofit lender does 

6 not engage in the marketing of the 

7 relative value of programs under part 

8 B of title IV of the Higher Education 

9 Act of 1965 as compared to programs 

10 under part D of title IV of the Higher 

11 Education Act of 1965, nor does the 

12 nonprofit lender engage in the mar13 keting of loans or programs offered by 

14 for-profit lenders. This subclause shall 

15 not be construed to prohibit the non16 profit lender from conferring basic in17 formation on lenders under part B of 

18 title IV of the Higher Education Act 

19 of 1965 and the related benefits of20 fered by such nonprofit lenders. 
80

•S 15 IS

1 TITLE X—MAKING COLLEGE AF2 FORDABLE FOR ALL STU3 DENTS 

4 SEC. 1001. EXPANSION OF DEDUCTION FOR HIGHER EDU5 CATION EXPENSES. 

6 (a) AMOUNT OF DEDUCTION.—Subsection (b) of sec7 tion 222 of the Internal Revenue Code of 1986 (relating 

8 to deduction for qualified tuition and related expenses) is 

9 amended to read as follows: 

10 ‘‘(b) LIMITATIONS.— 

11 ‘‘(1) DOLLAR LIMITATIONS.— 

12 ‘‘(A) IN GENERAL.—Except as provided in 

13 paragraph (2), the amount allowed as a deduc14 tion under subsection (a) with respect to the 

15 taxpayer for any taxable year shall not exceed 

16 the applicable dollar limit. 

17 ‘‘(B) APPLICABLE DOLLAR LIMIT.—The 

18 applicable dollar limit for any taxable year shall 

19 be determined as follows:

Applicable 

‘‘Taxable year: dollar amount: 

2005 and 2006 ................................................................................... $6,000

2007 and 2008 ................................................................................... $8,000

2009 and 2010 ...................................................................................$10,000

2011 and thereafter ...........................................................................$12,000.

20 ‘‘(2) LIMITATION BASED ON MODIFIED AD21 JUSTED GROSS INCOME.— 
81 

•S 15 IS

1 ‘‘(A) IN GENERAL.—The amount which 

2 would (but for this paragraph) be taken into ac3 count under subsection (a) shall be reduced 

4 (but not below zero) by the amount determined 

5 under subparagraph (B). 

6 ‘‘(B) AMOUNT OF REDUCTION.—The 

7 amount determined under this subparagraph 

8 equals the amount which bears the same ratio 

9 to the amount which would be so taken into ac10 count as— 

11 ‘‘(i) the excess of— 

12 ‘‘(I) the taxpayer’s modified ad13 justed gross income for such taxable 

14 year, over 

15 ‘‘(II) $65,000 ($130,000 in the 

16 case of a joint return), bears to 

17 ‘‘(ii) $15,000 ($30,000 in the case of 

18 a joint return). 

19 ‘‘(C) MODIFIED ADJUSTED GROSS IN20 COME.—For purposes of this paragraph, the 

21 term ‘modified adjusted gross income’ means 

22 the adjusted gross income of the taxpayer for 

23 the taxable year determined— 

24 ‘‘(i) without regard to this section and 

25 sections 199, 911, 931, and 933, and 
82 

•S 15 IS

1 ‘‘(ii) after the application of sections 

2 86, 135, 137, 219, 221, and 469. 

3 For purposes of the sections referred to in 

4 clause (ii), adjusted gross income shall be deter5 mined without regard to the deduction allowed 

6 under this section. 

7 ‘‘(D) INFLATION ADJUSTMENTS.— 

8 ‘‘(i) IN GENERAL.—In the case of any 

9 taxable year beginning in a calendar year 

10 after 2005, both of the dollar amounts in 

11 subparagraph (B)(i)(II) shall be increased 

12 by an amount equal to— 

13 ‘‘(I) such dollar amount, multi14 plied by 

15 ‘‘(II) the cost-of-living adjust16 ment determined under section 1(f)(3) 

17 for the calendar year in which the tax18 able year begins, by substituting ‘cal19 endar year 2004’ for ‘calendar year 

20 1992’ in subparagraph (B) thereof. 

21 ‘‘(ii) ROUNDING.—If any amount as 

22 adjusted under clause (i) is not a multiple 

23 of $50, such amount shall be rounded to 

24 the nearest multiple of $50.’’. 
83 

•S 15 IS

1 (b) QUALIFIED TUITION AND RELATED EXPENSES

2 OF ELIGIBLE STUDENTS.— 

3 (1) IN GENERAL.—Section 222(a) of the Inter4 nal Revenue Code of 1986 (relating to allowance of 

5 deduction) is amended by inserting ‘‘of eligible stu6 dents’’ after ‘‘expenses’’. 

7 (2) DEFINITION OF ELIGIBLE STUDENT.—Sec8 tion 222(d) of such Code (relating to definitions and 

9 special rules) is amended by redesignating para10 graphs (2) through (6) as paragraphs (3) through 

11 (7), respectively, and by inserting after paragraph 

12 (1) the following new paragraph: 

13 ‘‘(2) ELIGIBLE STUDENT.—The term ‘eligible 

14 student’ has the meaning given such term by section 

15 36(b)(3).’’. 

16 (c) DEDUCTION MADE PERMANENT.—Title IX of the 

17 Economic Growth and Tax Relief Reconciliation Act of 

18 2001 (relating to sunset of provisions of such Act) shall 

19 not apply to the amendments made by section 431 of such 

20 Act. 

21 (d) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to payments made in taxable years 

23 beginning after December 31, 2004. 
84 

•S 15 IS

1 SEC. 1002. CREDIT FOR INTEREST ON HIGHER EDUCATION 

2 LOANS. 

3 (a) IN GENERAL.—Subpart A of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 (relating to nonrefundable personal credits) is 

6 amended by inserting after section 25B the following new 

7 section: 

8 ‘‘SEC. 25C. INTEREST ON HIGHER EDUCATION LOANS. 

9 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in10 dividual, there shall be allowed as a credit against the tax 

11 imposed by this chapter for the taxable year an amount 

12 equal to the interest paid by the taxpayer during the tax13 able year on any qualified education loan. 

14 ‘‘(b) MAXIMUM CREDIT.— 

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graph (2), the credit allowed by subsection (a) for 

17 the taxable year shall not exceed $1,500. 

18 ‘‘(2) LIMITATION BASED ON MODIFIED AD19 JUSTED GROSS INCOME.— 

20 ‘‘(A) IN GENERAL.—If the modified ad21 justed gross income of the taxpayer for the tax22 able year exceeds $50,000 ($100,000 in the 

23 case of a joint return), the amount which would 

24 (but for this paragraph) be allowable as a credit 

25 under this section shall be reduced (but not 

26 below zero) by the amount which bears the 
85 

•S 15 IS

1 same ratio to the amount which would be so al2 lowable as such excess bears to $20,000 

3 ($40,000 in the case of a joint return). 

4 ‘‘(B) MODIFIED ADJUSTED GROSS IN5 COME.—The term ‘modified adjusted gross in6 come’ means adjusted gross income determined 

7 without regard to sections 199, 222, 911, 931, 

8 and 933. 

9 ‘‘(C) INFLATION ADJUSTMENT.—In the 

10 case of any taxable year beginning after 2005, 

11 the $50,000 and $100,000 amounts referred to 

12 in subparagraph (A) shall be increased by an 

13 amount equal to— 

14 ‘‘(i) such dollar amount, multiplied by 

15 ‘‘(ii) the cost-of-living adjustment de16 termined under section 1(f)(3) for the cal17 endar year in which the taxable year be18 gins, by substituting ‘2004’ for ‘1992’. 

19 ‘‘(D) ROUNDING.—If any amount as ad20 justed under subparagraph (C) is not a multiple 

21 of $50, such amount shall be rounded to the 

22 nearest multiple of $50. 

23 ‘‘(c) DEPENDENTS NOT ELIGIBLE FOR CREDIT.—No 

24 credit shall be allowed by this section to an individual for 

25 the taxable year if a deduction under section 151 with re-
86 

•S 15 IS

1 spect to such individual is allowed to another taxpayer for 

2 the taxable year beginning in the calendar year in which 

3 such individual’s taxable year begins. 

4 ‘‘(d) LIMIT ON PERIOD CREDIT ALLOWED.—A credit 

5 shall be allowed under this section only with respect to 

6 interest paid on any qualified education loan during the 

7 first 60 months (whether or not consecutive) in which in8 terest payments are required. For purposes of this para9 graph, any loan and all refinancings of such loan shall be 

10 treated as 1 loan. 

11 ‘‘(e) DEFINITIONS.—For purposes of this section— 

12 ‘‘(1) QUALIFIED EDUCATION LOAN.—The term 

13 ‘qualified education loan’ has the meaning given 

14 such term by section 221(d)(1). 

15 ‘‘(2) DEPENDENT.—The term ‘dependent’ has 

16 the meaning given such term by section 152. 

17 ‘‘(f) SPECIAL RULES.— 

18 ‘‘(1) DENIAL OF DOUBLE BENEFIT.—No credit 

19 shall be allowed under this section for any amount 

20 taken into account for any deduction under any 

21 other provision of this chapter. 

22 ‘‘(2) MARRIED COUPLES MUST FILE JOINT RE23 TURN.—If the taxpayer is married at the close of 

24 the taxable year, the credit shall be allowed under 

25 subsection (a) only if the taxpayer and the tax-
87 

•S 15 IS

1 payer’s spouse file a joint return for the taxable 

2 year. 

3 ‘‘(3) MARITAL STATUS.—Marital status shall be 

4 determined in accordance with section 7703.’’. 

5 (b) CONFORMING AMENDMENT.—The table of sec6 tions for subpart A of part IV of subchapter A of chapter 

7 1 of the Internal Revenue Code of 1986 is amended by 

8 inserting after the item relating to section 25B the fol9 lowing new item: 

‘‘Sec. 25C. Interest on higher education loans.’’. 

10 (c) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to any qualified education loan (as 

12 defined in section 25C(e)(1) of the Internal Revenue Code 

13 of 1986, as added by this section) incurred on, before, or 

14 after the date of the enactment of this Act, but only with 

15 respect to any loan interest payment due after December 

16 31, 2004. 

17 SEC. 1003. HOPE AND LIFETIME LEARNING CREDITS TO BE 

18 REFUNDABLE. 

19 (a) CREDIT TO BE REFUNDABLE.—Section 25A of 

20 the Internal Revenue Code of 1986 (relating to Hope and 

21 Lifetime Learning credits) is hereby moved to subpart C 

22 of part IV of subchapter A of chapter 1 of such Code (re23 lating to refundable credits) and inserted after section 35. 

24 (b) TECHNICAL AMENDMENTS.— 
88 

•S 15 IS

1 (1) Section 36 of such Code is redesignated as 

2 section 37. 

3 (2) Section 25A of such Code (as moved by 

4 subsection (a)) is redesignated as section 36. 

5 (3) Paragraph (1) of section 36(a) of such Code 

6 (as redesignated by paragraph (2)) is amended by 

7 striking ‘‘this chapter’’ and inserting ‘‘this subtitle’’. 

8 (4) Subparagraph (B) of section 72(t)(7) of 

9 such Code is amended by striking ‘‘section 

10 25A(g)(2)’’ and inserting ‘‘section 36(g)(2)’’. 

11 (5) Subparagraph (A) of section 135(d)(2) of 

12 such Code is amended by striking ‘‘section 25A’’ and 

13 inserting ‘‘section 36’’. 

14 (6) Section 221(d) of such Code is amended— 

15 (A) by striking ‘‘section 25A(g)(2)’’ in 

16 paragraph (2)(B) and inserting ‘‘section 

17 36(g)(2)’’, 

18 (B) by striking ‘‘section 25A(f)(2)’’ in the 

19 matter following paragraph (2)(B) and insert20 ing ‘‘section 36(f)(2)’’, and 

21 (C) by striking ‘‘section 25A(b)(3)’’ in 

22 paragraph (3) and inserting ‘‘section 36(b)(3)’’. 

23 (7) Section 222 of such Code is amended— 
89 

•S 15 IS

1 (A) by striking ‘‘section 25A’’ in subpara2 graph (A) of subsection (c)(2) and inserting 

3 ‘‘section 36’’, 

4 (B) by striking ‘‘section 25A(f)’’ in sub5 section (d)(1) and inserting ‘‘section 36(f)’’, 

6 and 

7 (C) by striking ‘‘section 25A(g)(2)’’ in sub8 section (d)(1) and inserting ‘‘section 36(g)(2)’’. 

9 (8) Section 529 of such Code is amended— 

10 (A) by striking ‘‘section 25A(g)(2)’’ in sub11 clause (I) of subsection (c)(3)(B)(v) and insert12 ing ‘‘section 36(g)(2)’’, 

13 (B) by striking ‘‘section 25A’’ in subclause 

14 (II) of subsection (c)(3)(B)(v) and inserting 

15 ‘‘section 36’’, and 

16 (C) by striking ‘‘section 25A(b)(3)’’ in 

17 clause (i) of subsection (e)(3)(B) and inserting 

18 ‘‘section 36(b)(3)’’. 

19 (9) Section 530 of such Code is amended— 

20 (A) by striking ‘‘section 25A(g)(2)’’ in sub21 clause (I) of subsection (d)(2)(C)(i) and insert22 ing ‘‘section 36(g)(2)’’, 

23 (B) by striking ‘‘section 25A’’ in subclause 

24 (II) of subsection (d)(2)(C)(i) and inserting 

25 ‘‘section 36’’, and 
90 

•S 15 IS

1 (C) by striking ‘‘section 25A(g)(2)’’ in 

2 clause (iii) of subsection (d)(4)(B) and inserting 

3 ‘‘section 36(g)(2)’’. 

4 (10) Subsection (e) of section 6050S of such 

5 Code is amended by striking ‘‘section 25A’’ and in6 serting ‘‘section 36’’. 

7 (11) Subparagraph (J) of section 6213(g)(2) of 

8 such Code is amended by striking ‘‘section 

9 25A(g)(1)’’ and inserting ‘‘section 36(g)(1)’’. 

10 (12) Paragraph (2) of section 1324(b) of title 

11 31, United States Code, is amended by inserting be12 fore the period ‘‘or from section 36 of such Code’’. 

13 (13) The table of sections for subpart C of part 

14 IV of subchapter A of chapter 1 of the Internal Rev15 enue Code of 1986 is amended by striking the item 

16 relating to section 36 and inserting the following: 

‘‘Sec. 36. Hope and Lifetime Learning credits. 

‘‘Sec. 37. Overpayments of tax.’’. 

17 (14) The table of sections for subpart A of such 

18 part IV is amended by striking the item relating to 

19 section 25A. 

20 (c) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to taxable years beginning after 

22 December 31, 2004. 

Æ