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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 15 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Quality Education for All Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
       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.
            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.

       TITLE I--STRENGTHENING HEAD START AND CHILD CARE PROGRAMS

          Subtitle A--Increasing Access to Head Start Programs

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

    Section 639(a) of the Head Start Act (42 U.S.C. 9834(a)) is amended 
by striking ``such sums'' and all that follows and inserting the 
following: ``$8,570,000,000 for fiscal year 2006, $10,445,000,000 for 
fiscal year 2007, $12,384,000,000 for fiscal year 2008, $14,334,000,000 
for fiscal year 2009, and $16,332,000,000 for fiscal year 2010.''.

SEC. 102. STRENGTHENING INDIAN AND MIGRANT AND SEASONAL HEAD START 
              PROGRAMS.

    Section 640(a)(2) of the Head Start Act (42 U.S.C. 9835(a)(2)) is 
amended by striking subparagraph (A) and inserting the following:
            ``(A) Indian Head Start programs, services for children 
        with disabilities, and migrant and seasonal Head Start 
        programs, except that the Secretary shall reserve for each 
        fiscal year for use by Indian Head Start and migrant and 
        seasonal Head Start programs (referred to in this subparagraph 
        as `covered programs'), on a nationwide basis, a sum that is 
        the total of not less than 4 percent of the amount appropriated 
        under section 639(a) for that fiscal year (for Indian Head 
        Start programs), and not less than 5 percent of that 
        appropriated amount (for migrant and seasonal Head Start 
        programs), except that--
                    ``(i) if reserving the specified percentages for 
                covered programs and would reduce the number of 
                children served by Head Start programs, relative to the 
                number of children served on the date of enactment of 
                the Quality Education for All Act, taking into 
                consideration an appropriate adjustment for inflation, 
                the Secretary shall reserve percentages that approach, 
                as closely as practicable, the specified percentages 
                and that do not cause such a reduction; and
                    ``(ii) notwithstanding any other provision of this 
                subparagraph, the Secretary shall reserve for each 
                fiscal year for use by Indian Head Start programs and 
                by migrant and seasonal Head Start programs, on a 
                nationwide basis, not less than the amount that was 
                obligated for use by Indian Head Start programs and by 
                migrant and seasonal Head Start programs, respectively, 
                for the previous fiscal year;''.

SEC. 103. EXPANDING EARLY HEAD START PROGRAMS.

    Section 640(a)(6) of the Head Start Act (42 U.S.C. 9835(a)(6)) is 
amended--
            (1) in subparagraph (A), by striking ``7.5 percent for 
        fiscal year 1999'' and all that follows and inserting ``12 
        percent for fiscal year 2006, 14 percent for fiscal year 2007, 
        16 percent for fiscal year 2008, 18 percent for fiscal year 
        2009, and 20 percent for fiscal year 2010, of the amount 
        appropriated pursuant to section 639(a).'';
            (2) by striking subparagraph (B); and
            (3) by redesignating subparagraph (C) as subparagraph (B).

SEC. 104. PARTICIPATION IN HEAD START PROGRAMS.

     Section 645 of the Head Start Act (42 U.S.C. 9840) is amended--
            (1) in subsection (a)(1)(A), by inserting ``130 percent 
        of'' after ``below''; and
            (2) by adding at the end the following:
    ``(e) After demonstrating a need through a community needs 
assessment, a Head Start agency may apply to the Secretary to convert 
part-day sessions, particularly consecutive part-day sessions, into 
full-day sessions.''.

   Subtitle B--Enhancing the School Readiness of Head Start Children

SEC. 111. SCHOOL READINESS STANDARDS.

    Section 641A(a)(1)(B)(ii) of the Head Start Act (42 U.S.C. 
9836(a)(1)(B)(ii)) is amended by striking ``at a minimum'' and all that 
follows and inserting the following: ``at a minimum, develop and 
demonstrate--
                            ``(I) language skills, including an 
                        expanded use of vocabulary;
                            ``(II) interest in and appreciation of 
                        books, reading, and writing (either alone or 
                        with others), phonological and phonemic 
                        awareness, and varied modes of expression and 
                        communication;
                            ``(III) premathematics knowledge and 
                        skills, including knowledge and skills relating 
                        to aspects of classification, seriation, 
                        numbers, spatial relations, and time;
                            ``(IV) cognitive abilities related to 
                        academic achievement;
                            ``(V) abilities related to social and 
                        emotional development;
                            ``(VI) gross and fine motor skills; and
                            ``(VII) in the case of children with 
                        limited English proficiency, abilities related 
                        to progress toward acquisition of the English 
                        language.''.

SEC. 112. STAFF.

    (a) Staff Qualifications and Development.--Section 648A of the Head 
Start Act (42 U.S.C. 9843a) is amended--
            (1) in subsection (a)(2)--
                    (A) in subparagraph (A)--
                            (i) in the matter preceding clause (i), by 
                        striking ``not later than September 30, 2003'' 
                        and all that follows through ``programs have'' 
                        and inserting ``not later than the date 
                        determined under subparagraph (D) for a Head 
                        Start region, each Head Start agency in the 
                        region with a center-based program shall ensure 
                        that all classrooms in the program have at 
                        least 1 teacher who has'';
                            (ii) in clause (i), strike ``an associate, 
                        baccalaureate,'' and insert ``a 
                        baccalaureate''; and
                            (iii) in clause (ii), strike ``an 
                        associate, baccalaureate,'' and insert ``a 
                        baccalaureate''; and
                    (B) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) Temporary requirement.--Until the date 
                determined under subparagraph (D) for a Head Start 
                region, the Secretary shall ensure that at least 50 
                percent of all Head Start teachers in the region in 
                center-based programs have--
                            ``(i) an associate, baccalaureate, or 
                        advanced degree in early childhood education; 
                        or
                            ``(ii) an associate, baccalaureate, or 
                        advanced degree in a field related to early 
                        childhood education, with experience in 
                        teaching preschool children.
                    ``(C) Requirement for new head start teachers.--Not 
                later than 3 years after the date of enactment of the 
                Quality Education for All Act, the Secretary shall 
                require that all teachers hired nationwide in center-
                based programs of Head Start agencies following the 
                date of the requirement--
                            ``(i) have an associate, baccalaureate, or 
                        advanced degree in early childhood education;
                            ``(ii) have an associate, baccalaureate, or 
                        advanced degree in a field related to early 
                        childhood education, with experience in 
                        teaching preschool children; or
                            ``(iii) be enrolled, or enroll not later 
                        than 1 year after the date of hire, in a 
                        program of study leading to an associate degree 
                        in early childhood education.
                    ``(D) Appropriate date.--The Secretary shall 
                determine an appropriate date for Head Start agencies 
                in each Head Start region to reach the result described 
                in subparagraph (A), but in no case shall such a date 
                be later than 8 years after the date of enactment of 
                Quality Education for All Act.
                    ``(E) Progress.--
                            ``(i) Requirement.--The Secretary shall 
                        require Head Start agencies with center-based 
                        programs to demonstrate continuing and 
                        consistent progress each year to reach the 
                        results described in subparagraphs (A) and (C).
                            ``(ii) Plan.--Each State shall establish a 
                        plan for the Head Start agencies with center-
                        based programs in the State to reach the 
                        results described in subparagraphs (A) and (C).
                            ``(iii) Progress.--Each Head Start agency 
                        shall prepare and submit to the Secretary and 
                        the Governor of the State a report indicating 
                        the number and percentage of its teachers in 
                        center-based programs with child development 
                        associate credentials or associate, 
                        baccalaureate, or advanced degrees in early 
                        childhood education or a field related to early 
                        childhood education. The Secretary shall 
                        compile all such reports and submit a summary 
                        of the compiled reports to the Committee on 
                        Health, Education, Labor, and Pensions of the 
                        Senate and the Committee on Education and the 
                        Workforce of the House of Representatives.'';
            (2) in subsection (a)(3), by striking ``(2)(A)'' and 
        inserting ``(2)(B)''; and
            (3) by adding at the end the following:
    ``(f) Pre-Literacy and Language Training.--To support local efforts 
to enhance early language and pre-literacy development of children in 
Head Start programs, and to provide the children with high-quality oral 
language skills and environments that are rich in literature, in which 
to acquire early language and pre-literacy skills, each Head Start 
agency shall ensure that all of the agency's Head Start teachers 
receive ongoing training in language and emergent literacy. Such 
training shall also include information regarding appropriate curricula 
and assessments to improve instruction and learning. Such training 
shall include training in methods to promote phonological and phonemic 
awareness and vocabulary development in an age-appropriate and 
culturally and linguistically appropriate manner.
    ``(g) Professional Development Plans.--Each Head Start agency and 
center shall create, in consultation with employees of the agency or 
center (including family service workers), a professional development 
plan for employees who provide direct services to children, including a 
plan for teachers, to meet the requirements set forth in subsection 
(a).''.
    (b) Attracting and Retaining High-quality Head Start Teachers; 
Tribal College or University-Head Start Partnership Program.--
            (1) Program.--The Head Start Act is amended by inserting 
        after section 648A (42 U.S.C. 9843a) the following:

``SEC. 648B. ATTRACTING AND RETAINING HIGH-QUALITY HEAD START TEACHERS.

    ``(a) In General.--The Secretary shall make grants to eligible Head 
Start agencies to enable the agencies to reach the results described in 
subparagraphs (A) and (C) of section 648A(a)(2). The Secretary shall 
make the grants from allotments determined under subsection (b).
    ``(b) Allotments.--From the funds made available under section 
639(c) for a fiscal year and not reserved under subsection (d), the 
Secretary shall allot to each Head Start agency an amount that bears 
the same relationship to such funds as the amount received by the 
agency under section 640 for that fiscal year bears to the amount 
received by all Head Start agencies under section 640 for that fiscal 
year.
    ``(c) Salary Plan.--A Head Start agency that receives a grant under 
this section shall develop and carry out a plan to raise the average 
salaries of teachers in the agency's Head Start programs. In developing 
the plan, the agency shall take into consideration the training, level 
of education, and experience of the teachers, and the average salaries 
of prekindergarten and kindergarten teachers employed by the local 
educational agency for the school district in which the Head Start 
agency is located, with similar training, level of education, and 
experience.
    ``(d) Salaries in High-Cost Areas.--The Secretary may reserve and 
use a portion of the funds available under section 639(c) to assist 
Head Start agencies located in high-cost areas to help reduce the 
discrepancy between such average salaries of such teachers and such 
average salaries of such prekindergarten and kindergarten teachers.

``SEC. 648C. TRIBAL COLLEGE OR UNIVERSITY-HEAD START PARTNERSHIP 
              PROGRAM.

    ``(a) Tribal College or University-Head Start Partnership 
Program.--
            ``(1) Grants.--The Secretary is authorized to award grants, 
        of not less than 5 years duration, to Tribal Colleges and 
        Universities to--
                    ``(A) implement education programs that include 
                tribal culture and language and increase the number of 
                associate, baccalaureate, and graduate degrees in early 
                childhood education and related fields that are earned 
                by Indian Head Start agency staff members, parents of 
                children served by such an agency, and members of the 
                tribal community involved;
                    ``(B) develop and implement the programs under 
                subparagraph (A) in technology-mediated formats; and
                    ``(C) provide technology literacy programs for 
                Indian Head Start agency staff members and children and 
                families of children served by such an agency.
            ``(2) Staffing.--The Secretary shall ensure that the 
        American Indian Programs Branch of the Head Start Bureau of the 
        Department of Health and Human Services shall have staffing 
        sufficient to administer the programs under this section and to 
        provide appropriate technical assistance to Tribal Colleges and 
        Universities receiving grants under this section.
    ``(b) Application.--Each Tribal College or University desiring a 
grant under this section shall submit an application to the Secretary, 
at such time, in such manner, and containing such information as the 
Secretary may require, including a certification that the Tribal 
College or University has established a partnership with 1 or more 
Indian Head Start agencies for the purpose of conducting the activities 
described in subsection (a).
    ``(c) Definitions.--In this section:
            ``(1) Institution of higher education.--The term 
        `institution of higher education' has the meaning given such 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            ``(2) Tribal college or university.--The term `Tribal 
        College or University' means an institution--
                    ``(A) defined by such term in section 316(b) of the 
                Higher Education Act of 1965 (20 U.S.C. 1059c(b)); and
                    ``(B) determined to be accredited or a candidate 
                for accreditation by a nationally recognized 
                accrediting agency or association.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section, $10,000,000 for fiscal year 
2006 and such sums as may be necessary for each of fiscal years 2007 
through 2010.''.
            (2) Authorization of appropriations.--Section 639 of the 
        Head Start Act (42 U.S.C. 9834) is amended--
                    (A) in subsection (a), by inserting ``(other than 
                section 648B)'' after ``this subchapter''; and
                    (B) by adding at the end the following:
    ``(c) There are authorized to be appropriated to carry out section 
648B $387,000,000 for fiscal year 2006, $496,000,000 for fiscal year 
2007, $608,000,000 for fiscal year 2008, $723,000,000 for fiscal year 
2009, and $841,000,000 for fiscal year 2010.''.
            (3) Conforming amendments.--Section 640 of the Head Start 
        Act (42 U.S.C. 9835) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking ``section 
                        639'' and inserting ``section 639(a)'';
                            (ii) in paragraph (2)--
                                    (I) in the matter preceding 
                                subparagraph (A), by inserting 
                                ``pursuant to section 639(a)'' after 
                                ``appropriated'';
                                    (II) in subparagraph (B), in the 
                                matter following clause (ii), by 
                                inserting ``pursuant to section 
                                639(a)'' after ``appropriated''; and
                                    (III) in subparagraph (C), by 
                                inserting ``pursuant to section 
                                639(a)'' after ``appropriated'' each 
                                place it appears; and
                            (iii) in paragraph (4), in the matter 
                        preceding subparagraph (A), by inserting 
                        ``pursuant to section 639(a)'' after 
                        ``appropriated''; and
                    (B) in subsection (g)(1), by inserting ``pursuant 
                to section 639(a)'' after ``appropriated'' each place 
                it appears.

     Subtitle C--Expanding Access to Quality, Affordable Child Care

SEC. 121. AUTHORIZATION OF APPROPRIATIONS.

    Section 658B of the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858) is amended--
            (1) by striking ``is'' and inserting ``are''; and
            (2) by striking ``subchapter'' and all that follows and 
        inserting ``subchapter $3,100,000,000 for fiscal year 2006, 
        $4,100,000,000 for fiscal year 2007, $5,100,000,000 for fiscal 
        year 2008, $6,100,000,000 for fiscal year 2009, and 
        $7,100,000,000 for fiscal year 2010.''.

          Subtitle D--Strengthening the Quality of Child Care

SEC. 131. STATE PLAN REQUIREMENTS RELATING TO TRAINING.

    Section 658E(c) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858c(c)) is amended by adding at the end the 
following:
            ``(6) Training in early learning and childhood 
        development.--The State plan shall describe any training 
        requirements that are in effect within the State that are 
        designed to enable child care providers to promote the social, 
        emotional, physical, and cognitive development of children and 
        that are applicable to child care providers that provide 
        services for which assistance is made available under this 
        subchapter in the State.''.

SEC. 132. STRENGTHENING THE QUALITY OF CHILD CARE.

    Section 658G of the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858e) is amended to read as follows:

``SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

    ``(a) In General.--
            ``(1) Reservation.--Each State that receives funds 
        appropriated under section 639(a) for a fiscal year shall 
        reserve and use not less than 6 percent of the funds for 
        activities provided directly, or through grants or contracts 
        with resource and referral organizations or other appropriate 
        entities, that are designed to improve the quality of child 
        care services.
            ``(2) Activities.--The funds reserved under paragraph (1) 
        may only be used to--
                    ``(A) develop and implement voluntary guidelines on 
                pre-reading and language skills and activities, for 
                child care programs in the State, that are aligned with 
                State standards for kindergarten through grade 12 or 
                the State's general goals for school preparedness;
                    ``(B) support activities and provide technical 
                assistance in child care settings to enhance early 
                learning for young children, to promote literacy, and 
                to foster school preparedness;
                    ``(C) offer training, professional development, and 
                educational opportunities for child care providers that 
                relate to the use of developmentally appropriate and 
                age-appropriate curricula, and early childhood teaching 
                strategies, that are scientifically based and aligned 
                with the social, emotional, physical, and cognitive 
                development of children, including--
                            ``(i) developing and operating distance 
                        learning child care training infrastructures;
                            ``(ii) developing model technology-based 
                        training courses;
                            ``(iii) offering training for caregivers in 
                        informal child care settings; and
                            ``(iv) offering training for child care 
                        providers who care for infants and toddlers and 
                        children with special needs;
                    ``(D) engage in programs designed to increase the 
                retention and improve the competencies of child care 
                providers, including wage incentive programs and 
                initiatives that establish tiered payment rates for 
                providers that meet or exceed child care services 
                guidelines, as defined by the State;
                    ``(E) evaluate and assess the quality and 
                effectiveness of child care programs and services 
                offered in the State to young children on improving 
                overall school preparedness; and
                    ``(F) carry out other activities determined by the 
                State to improve the quality of child care services 
                provided in the State and for which measurement of 
                outcomes relating to improved child safety, child well-
                being, or school preparedness is possible.
    ``(b) Certification.--For each fiscal year beginning after 
September 30, 2005, the State shall annually submit to the Secretary a 
certification in which the State certifies and demonstrates that the 
State was in compliance with subsection (a) during the preceding fiscal 
year and describes how the State used funds made available to carry out 
this subchapter to comply with subsection (a) during that preceding 
fiscal year.''.

  TITLE II--PROVIDING SAFE, RELIABLE TRANSPORTATION FOR RURAL SCHOOL 
                                CHILDREN

SEC. 201. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) school transportation issues have concerned parents, 
        local educational agencies, lawmakers, the National Highway 
        Traffic Safety Administration, the National Transportation 
        Safety Board, and the Environmental Protection Agency for 
        years;
            (2) millions of children face potential future health 
        problems because of exposure to noxious fumes emitted from 
        older school buses;
            (3) the Environmental Protection Agency established the 
        Clean School Bus USA program to replace 129,000 of the oldest 
        diesel buses that cannot be retrofitted in an effort to help 
        children and the environment by improving air quality;
            (4) unfortunately, many rural local educational agencies 
        are unable to participate in that program because of the 
        specialized fuels needed to sustain a clean bus fleet;
            (5) many rural local educational agencies are operating 
        outdated, unsafe school buses that are failing inspections 
        because of automotive flaws, resulting in the depletion of the 
        school bus fleets of the local educational agencies; and
            (6) many rural local educational agencies are unable to 
        afford to buy newer, safer buses.
    (b) Purpose.--The purpose of this title is to establish within the 
Department of Education a Federal cost-sharing program to assist rural 
local educational agencies with older, unsafe school bus fleets in 
purchasing newer, safer school buses.

SEC. 202. DEFINITIONS.

    In this title:
            (1) Rural local educational agency.--The term ``rural local 
        educational agency'' means a local educational agency, as 
        defined in section 9101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 7801), with respect to which--
                    (A) each county in which a school served by the 
                local educational agency is located has a total 
                population density of fewer than 10 persons per square 
                mile;
                    (B) all schools served by the local educational 
                agency are designated with a school locale code of 7 or 
                8, as determined by the Secretary; or
                    (C) all schools served by the local educational 
                agency have been designated, by official action taken 
                by the legislature of the State in which the local 
                educational agency is located, as rural schools for 
                purposes relating to the provision of educational 
                services to students in the State.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (3) School bus.--The term ``school bus'' means a vehicle 
        the primary purpose of which is to transport students to and 
        from school or school activities.

SEC. 203. GRANT PROGRAM.

    (a) In General.--From amounts appropriated under subsection (e) for 
a fiscal year, the Secretary shall provide grants, on a competitive 
basis, to rural local educational agencies to pay the Federal share of 
the cost of purchasing new school buses.
    (b) Application.--
            (1) In general.--Each rural local educational agency that 
        seeks to receive a grant under this title shall submit to the 
        Secretary for approval an application at such time, in such 
        manner, and accompanied by such information (in addition to 
        information required under paragraph (2)) as the Secretary may 
        require.
            (2) Contents.--Each application submitted under paragraph 
        (1) shall include--
                    (A) documentation that, of the total number of 
                school buses operated by the rural local educational 
                agency, not less than 50 percent of the school buses 
                are in need of repair or replacement;
                    (B) documentation of the number of miles that each 
                school bus operated by the rural local educational 
                agency traveled in the most recent 9-month academic 
                year;
                    (C) documentation that the rural local educational 
                agency is operating with a reduced fleet of school 
                buses;
                    (D) a certification from the rural local 
                educational agency that--
                            (i) authorizes the application of the rural 
                        local educational agency for a grant under this 
                        title; and
                            (ii) describes the dedication of the rural 
                        local educational agency to school bus 
                        replacement programs and school transportation 
                        needs (including the number of new school buses 
                        needed by the rural local educational agency); 
                        and
                    (E) an assurance that the rural local educational 
                agency will pay the non-Federal share of the cost of 
                the purchase of new school buses under this title from 
                non-Federal sources.
    (c) Priority.--In providing grants under this title, the Secretary 
shall give priority to rural local educational agencies that, as 
determined by the Secretary--
            (1) are transporting students in a bus manufactured before 
        1977;
            (2) have a grossly depleted fleet of school buses; or
            (3) serve a school that is required, under section 
        1116(b)(9) of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 6316(b)(9)), to provide transportation to 
        students to enable the students to transfer to another public 
        school served by the rural local educational agency.
    (d) Use of Funds.--School buses purchased with grant funds awarded 
under subsection (a) shall be in compliance with proposed air quality 
regulations and standards of the Environmental Protection Agency for 
2006.
    (e) Payments; Federal Share.--
            (1) Payments.--The Secretary shall pay to each rural local 
        educational agency having an application approved under this 
        section the Federal share described in paragraph (2) of the 
        cost of purchasing such number of new school buses as is 
        specified in the approved application.
            (2) Federal share.--The Federal share of the cost of 
        purchasing a new school bus under this title shall be 75 
        percent.

SEC. 204. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this title 
$50,000,000 for fiscal year 2006 and such sums as may be necessary for 
each of fiscal years 2007 through 2010.

TITLE III--SENSE OF THE SENATE REGARDING FULLY FUNDING THE INDIVIDUALS 
                WITH DISABILITIES EDUCATION ACT BY 2011

SEC. 301. FINDINGS.

    (a) Findings.--The Senate finds the following:
            (1) Disability is a natural part of the human experience 
        and in no way diminishes the right of individuals to 
        participate in or contribute to society. Improving educational 
        results for children with disabilities is an essential element 
        of our national policy of ensuring equality of opportunity, 
        full participation, independent living, and economic self-
        sufficiency for individuals with disabilities.
            (2) Before the date of enactment of the Education for All 
        Handicapped Children Act of 1975 (Public Law 94-142), the 
        predecessor to the Individuals with Disabilities Education Act 
        (20 U.S.C. 1400 et seq.), the educational needs of millions of 
        children with disabilities were not being fully met because--
                    (A) the children did not receive appropriate 
                educational services;
                    (B) the children were excluded entirely from the 
                public school system and from being educated with their 
                peers;
                    (C) undiagnosed disabilities prevented the children 
                from having a successful educational experience; or
                    (D) a lack of adequate resources within the public 
                school system forced such families to find services 
                outside the public school system.
            (3) The Individuals with Disabilities Education Act has 
        been successful in ensuring children with disabilities and the 
        families of such children access to a free appropriate public 
        education and in improving educational results for children 
        with disabilities.
            (4) The implementation of the Individuals with Disabilities 
        Education Act has been impeded by the Federal Government's 
        failure to honor the commitment it made 30 years ago to provide 
        States with 40 percent of the excess costs of special 
        education.
            (5) While States, local educational agencies, and 
        educational service agencies are primarily responsible for 
        providing an education for all children with disabilities, it 
        is in the national interest that the Federal Government have a 
        supporting role in assisting State and local efforts to educate 
        children with disabilities in order to improve results for such 
        children and to ensure equal protection of the law.
            (6) Congress passed authorizing language to fully fund the 
        Individuals with Disabilities Education Act and should 
        appropriate such sums as authorized.
            (7) A more equitable allocation of resources is essential 
        for the Federal Government to meet its responsibility to 
        provide an equal educational opportunity for all individuals.

SEC. 302. SENSE OF THE SENATE REGARDING AUTHORIZATION OF 
              APPROPRIATIONS.

     It is the sense of the Senate that for the purpose of carrying out 
the Federal Government's commitment to children, parents, and the 
States, there should be authorized to be appropriated--
            (1) $14,648,647,143 or the maximum amount available for 
        awarding grants under section 611(a)(2) of the Individuals with 
        Disabilities Education Act, whichever is lower, for fiscal year 
        2006, and there should be appropriated $4,058,901,319 for 
        fiscal year 2006, which should become available for obligation 
        on July 1, 2006, and should remain available through September 
        30, 2007, except that if the maximum amount available for 
        awarding grants under section 611(a)(2) of such Act is less 
        than $14,648,647,143, then the amount should be reduced by the 
        difference between $14,648,647,143 and the maximum amount 
        available for awarding grants under section 611(a)(2) of such 
        Act;
            (2) $16,938,917,714 or the maximum amount available for 
        awarding grants under section 611(a)(2) of the Individuals with 
        Disabilities Education Act, whichever is lower, for fiscal year 
        2007, and there should be appropriated $6,349,171,890 for 
        fiscal year 2007, which should become available for obligation 
        on July 1, 2007, and should remain available through September 
        30, 2008, except that if the maximum amount available for 
        awarding grants under section 611(a)(2) of such Act is less 
        than $16,938,917,714, then the amount should be reduced by the 
        difference between $16,938,917,714 and the maximum amount 
        available for awarding grants under section 611(a)(2) of such 
        Act;
            (3) $19,229,188,286 or the maximum amount available for 
        awarding grants under section 611(a)(2) of the Individuals with 
        Disabilities Education Act, whichever is lower, for fiscal year 
        2008, and there should be appropriated $8,639,442,462 for 
        fiscal year 2008, which should become available for obligation 
        on July 1, 2008, and should remain available through September 
        30, 2009, except that if the maximum amount available for 
        awarding grants under section 611(a)(2) of such Act is less 
        than $19,229,188,286, then the amount should be reduced by the 
        difference between $19,229,188,286 and the maximum amount 
        available for awarding grants under section 611(a)(2) of such 
        Act;
            (4) $21,519,458,857 or the maximum amount available for 
        awarding grants under section 611(a)(2) of the Individuals with 
        Disabilities Education Act, whichever is lower, for fiscal year 
        2009, and there should be appropriated $10,929,713,033 for 
        fiscal year 2009, which should become available for obligation 
        on July 1, 2009, and should remain available through September 
        30, 2010, except that if the maximum amount available for 
        awarding grants under section 611(a)(2) of such Act is less 
        than $21,519,458,857, then the amount should be reduced by the 
        difference between $21,519,458,857 and the maximum amount 
        available for awarding grants under section 611(a)(2) of such 
        Act;
            (5) $23,809,729,429 or the maximum amount available for 
        awarding grants under section 611(a)(2) of the Individuals with 
        Disabilities Education Act, whichever is lower, for fiscal year 
        2010, and there should be appropriated $13,219,983,605 for 
        fiscal year 2010, which should become available for obligation 
        on July 1, 2010, and should remain available through September 
        30, 2011, except that if the maximum amount available for 
        awarding grants under section 611(a)(2) of such Act is less 
        than $23,809,729,429, then the amount should be reduced by the 
        difference between $23,809,729,429 and the maximum amount 
        available for awarding grants under section 611(a)(2) of such 
        Act;
            (6) $26,100,000,000 or the maximum amount available for 
        awarding grants under section 611(a)(2) of the Individuals with 
        Disabilities Education Act, whichever is lower, for fiscal year 
        2011, and there should be appropriated $15,510,254,176 for 
        fiscal year 2011, which should become available for obligation 
        on July 1, 2011, and should remain available through September 
        30, 2012, except that if the maximum amount available for 
        awarding grants under section 611(a)(2) of such Act is less 
        than $26,100,000,000, then the amount should be reduced by the 
        difference between $26,100,000,000 and the maximum amount 
        available for awarding grants under section 611(a)(2) of such 
        Act; and
            (7) the maximum amount available for awarding grants under 
        section 611(a)(2) of the Individuals with Disabilities 
        Education Act for fiscal year 2012 and each succeeding fiscal 
        year, and there should be appropriated for each such year an 
        amount equal to the maximum amount available for awarding 
        grants under section 611(a)(2) of such Act for the fiscal year 
        for which the determination is made minus $10,589,745,824, 
        which should become available for obligation on July 1 of the 
        fiscal year for which the determination is made and should 
        remain available through September 30 of the succeeding fiscal 
        year.

      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.

    (a) School Capacity.--Section 1116(b)(1)(E) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6316(b)(1)(E)) is amended--
            (1) in clause (i), by striking ``In the case'' and 
        inserting ``Subject to clauses (ii) and (iii), in the case'';
            (2) by redesignating clause (ii) as clause (iii);
            (3) by inserting after clause (i) the following:
                            ``(ii) School capacity.--The obligation of 
                        a local educational agency to provide the 
                        option to transfer to students under clause (i) 
                        is subject to all applicable State and local 
                        health and safety code requirements regarding 
                        facility capacity.''; and
            (4) in clause (iii) (as redesignated by paragraph (2)), by 
        inserting ``and subject to clause (ii),'' after ``public 
        school,''.
    (b) Grants for School Construction and Renovation.--
            (1) In general.--Subpart 1 of part A of title I of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 
        et seq.) is amended by adding at the end the following:

``SEC. 1120C. GRANTS FOR SCHOOL CONSTRUCTION AND RENOVATION.

    ``(a) Program Authorized.--From funds appropriated under subsection 
(g), the Secretary is authorized to award grants to local educational 
agencies experiencing overcrowding in the schools served by the local 
educational agencies, for the construction and renovation of safe, 
healthy, high-performance school buildings.
    ``(b) Application.--Each local educational agency desiring a grant 
under this section shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such additional information as 
the Secretary may require.
    ``(c) Priority.--In awarding grants under this section, the 
Secretary shall give priority to local educational agencies--
            ``(1) who have documented difficulties in meeting the 
        public school choice requirements of paragraph (1)(E), (5)(A), 
        (7)(C)(i), or (8)(A)(i) of section 1116(b), or section 
        1116(c)(10)(C)(vii); and
            ``(2) with the highest number of schools at or above 
        capacity.
    ``(d) Award Basis.--From funds remaining after awarding grants 
under subsection (c), the Secretary shall award grants to local 
educational agencies that are experiencing overcrowding in the schools 
served by the local educational agencies.
    ``(e) Prevailing Wages.--Any laborer or mechanic employed by any 
contractor or subcontractor in the performance of work on any 
construction funded by a grant awarded under this section will be paid 
wages at rates not less than those prevailing on similar construction 
in the locality as determined by the Secretary of Labor under 
subchapter IV of chapter 31 of title 40, United States Code (commonly 
referred to as the Davis-Bacon Act).
    ``(f) Definitions.--In this section:
            ``(1) At or above capacity.--The term `at or above 
        capacity', in reference to a school, means a school in which 1 
        additional student would increase the average class size of the 
        school above the average class size of all schools in the State 
        in which the school is located.
            ``(2) Healthy, high-performance school building.--The term 
        `healthy, high-performance school building' has the meaning 
        given such term in section 5586.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $250,000,000 for fiscal year 
2006, and such sums as may be necessary for each of the 2 succeeding 
fiscal years.''.
            (2) Table of contents.--The table of contents of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C.6301 
        note) is amended by inserting after the item relating to 
        section 1120B the following:

        ``Sec. 1120C. Grants for school construction and renovation.''.

SEC. 402. SUPPLEMENTAL EDUCATIONAL SERVICES.

    Section 1116(e) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6316(e)) is amended--
            (1) in paragraph (4)--
                    (A) in subparagraph (B), by striking the semicolon 
                and inserting ``, including criteria that--
                            ``(i) ensure that personnel delivering 
                        supplemental educational services to students 
                        have adequate qualifications; and
                            ``(ii) may, at the State's discretion, 
                        ensure that personnel delivering supplemental 
                        educational services to students are teachers 
                        that are highly qualified, as such term is 
                        defined in section 9101;'';
                    (B) in subparagraph (D), by striking ``and'' after 
                the semicolon;
                    (C) in subparagraph (E), by striking the period and 
                inserting ``; and''; and
                    (D) by adding at the end the following:
                    ``(F) ensure that the list of approved providers of 
                supplemental educational services described in 
                subparagraph (C) includes a choice of providers that 
                have sufficient capacity to provide effective services 
                for children who are limited English proficient and 
                children with disabilities.'';
            (2) in paragraph (5)(C)--
                    (A) by striking ``applicable''; and
                    (B) by inserting before the period ``, and 
                acknowledge in writing that, as an approved provider in 
                the relevant State educational agency program of 
                providing supplemental educational services, the 
                provider is deemed to be a recipient of Federal 
                financial assistance'';
            (3) by redesignating paragraphs (6), (7), (8), (9), (10), 
        (11), and (12) as paragraphs (7), (8), (9), (10), (11), (12), 
        and (13), respectively;
            (4) by inserting after paragraph (5) the following:
            ``(6) Rule of construction.--Nothing in this section shall 
        be construed to prohibit a local educational agency from being 
        considered by a State educational agency as a potential 
        provider of supplemental educational services under this 
        subsection, if such local educational agency meets the criteria 
        adopted by the State educational agency in accordance with 
        paragraph (5).'';
            (5) in paragraph (13) (as redesignated by paragraph (3))--
                    (A) in subparagraph (B)--
                            (i) in clause (ii), by striking ``and'' 
                        after the semicolon;
                            (ii) in clause (iii), by striking ``and'' 
                        after the semicolon; and
                            (iii) by adding at the end the following:
                            ``(iv) may employ teachers who are highly 
                        qualified, as such term is defined in section 
                        9101; and
                            ``(v) pursuant to its inclusion on the 
                        relevant State educational agency's list 
                        described in paragraph (4)(C), is deemed to be 
                        a recipient of Federal financial assistance; 
                        and''; and
                    (B) in subparagraph (C)--
                            (i) in the matter preceding clause (i), by 
                        striking ``are'';
                            (ii) in clause (i)--
                                    (I) by inserting ``are'' before 
                                ``in addition''; and
                                    (II) by striking ``and'' after the 
                                semicolon;
                            (iii) in clause (ii), by striking the 
                        period and inserting ``; and''; and
                            (iv) by adding at the end the following:
                            ``(iii) if provided by providers that are 
                        included on the relevant State educational 
                        agency's list described in paragraph (4)(C), 
                        shall be deemed to be programs or activities of 
                        the relevant State educational agency.''; and
            (6) by adding at the end the following:
            ``(14) Civil rights.--In providing supplemental educational 
        services under this subsection, no State educational agency or 
        local educational agency may, directly or through contractual, 
        licensing, or other arrangements with a provider of 
        supplemental educational services, engage in any form of 
        discrimination prohibited by--
                    ``(A) title VI of the Civil Rights Act of 1964;
                    ``(B) title IX of the Education Amendments of 1972;
                    ``(C) section 504 of the Rehabilitation Act of 
                1973;
                    ``(D) titles II and III of the Americans with 
                Disabilities Act;
                    ``(E) the Age Discrimination Act of 1975;
                    ``(F) regulations promulgated under the authority 
                of the laws listed in subparagraphs (A) through (E); or
                    ``(G) other Federal civil rights laws.''.

SEC. 403. QUALIFICATIONS FOR TEACHERS AND PARAPROFESSIONALS.

    (a) High Objective Uniform State Standard of Evaluation.--Section 
1119 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
6319) is amended--
            (1) in subsection (a)(2)--
                    (A) by redesignating subparagraphs (A) through (C) 
                as clauses (i) through (iii), respectively, and 
                indenting as appropriate;
                    (B) by striking ``(2) State plan.--As part'' and 
                inserting the following:
            ``(2) State plan.--
                    ``(A) In general.--As part''; and
                    (C) by adding at the end the following:
                    ``(B) Availability of state standards.--Each State 
                educational agency shall make available to teachers in 
                the State the high objective uniform State standard of 
                evaluation, as described in section 9101(23)(C)(ii), 
                for the purpose of meeting the teacher qualification 
                requirements established under this section.'';
            (2) by redesignating subsections (e), (f), (g), (h), (i), 
        (j), (k), and (l) as subsections (f), (g), (h), (i), (j), (k), 
        (l), and (m), respectively;
            (3) by inserting after subsection (d) the following:
    ``(e) State Responsibilities.--Each State educational agency shall 
ensure that local educational agencies in the State make available all 
options described in subparagraphs (A) through (C) of subsection (c)(1) 
to each new or existing paraprofessional for the purpose of 
demonstrating the qualifications of the paraprofessional, consistent 
with the requirements of this section.''; and
            (4) in subsection (l) (as redesignated by paragraph (2)), 
        by striking ``subsection (l)'' and inserting ``subsection 
        (m)''.
    (b) Definition of Highly Qualified Teachers.--Section 
9101(23)(B)(ii) is amended--
            (1) in subclause (I), by striking ``or'' after the 
        semicolon;
            (2) in subclause (II), by striking ``and'' after the 
        semicolon; and
            (3) by adding at the end the following:
                                    ``(III) in the case of a middle 
                                school teacher, passing a State-
                                approved middle school generalist exam 
                                when the teacher receives a license to 
                                teach middle school in the State;
                                    ``(IV) obtaining a State middle 
                                school or secondary school social 
                                studies certificate that qualifies the 
                                teacher to teach history, geography, 
                                economics, civics, and government in 
                                middle schools or in secondary schools, 
                                respectively, in the State; or
                                    ``(V) obtaining a State middle 
                                school or secondary school science 
                                certificate that qualifies the teacher 
                                to teach earth science, biology, 
                                chemistry, and physics in middle 
                                schools or secondary schools, 
                                respectively, in the State; and''.
    (c) Ensuring Highly Qualified Teachers.--
            (1) Requirement.--The Secretary of Education shall improve 
        coordination among the teacher quality programs authorized 
        under the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 6301 et seq.), the Individuals with Disabilities 
        Education Act (20 U.S.C. 1400 et seq.), the Higher Education 
        Act of 1965 (20 U.S.C. 1001 et seq.), and the Carl D. Perkins 
        Vocational and Technical Education Act of 1998 (20 U.S.C. 2301 
        et seq.), to provide a unified effort in strengthening the 
        American teaching workforce and ensuring highly qualified 
        teachers.
            (2) Report.--Not later than 6 months after the date of 
        enactment of this Act, the Secretary of Education shall submit 
        a report to the relevant committees of Congress, that shall be 
        made available on the website of the Department of Education, 
        on efforts to coordinate programs pursuant to paragraph (1).

          Subtitle B--Adequate Yearly Progress Determinations

SEC. 421. REVIEW OF ADEQUATE YEARLY PROGRESS DETERMINATIONS FOR SCHOOLS 
              FOR THE 2002-2003 SCHOOL YEAR.

    (a) In General.--The Secretary shall require each local educational 
agency to provide each school served by the agency with an opportunity 
to request a review of a determination by the agency that the school 
did not make adequate yearly progress for the 2002-2003 school year.
    (b) Final Determination.--Not later than 30 days after receipt of a 
request by a school for a review under this section, a local 
educational agency shall issue and make publicly available a final 
determination on whether the school made adequate yearly progress for 
the 2002-2003 school year.
    (c) Evidence.--In conducting a review under this section, a local 
educational agency shall--
            (1) allow the principal of the school involved to submit 
        evidence on whether the school made adequate yearly progress 
        for the 2002-2003 school year; and
            (2) consider that evidence before making a final 
        determination under subsection (b).
    (d) Standard of Review.--In conducting a review under this section, 
a local educational agency shall revise, consistent with the applicable 
State plan under section 1111 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6311), the local educational agency's original 
determination that a school did not make adequate yearly progress for 
the 2002-2003 school year if the agency finds that the school made such 
progress, taking into consideration--
            (1) the amendments made to part 200 of title 34, Code of 
        Federal Regulations (68 Fed. Reg. 68698) (relating to 
        accountability for the academic achievement of students with 
        the most significant cognitive disabilities); or
            (2) any regulation or guidance that, subsequent to the date 
        of such original determination, was issued by the Secretary 
        relating to--
                    (A) the assessment of limited English proficient 
                children;
                    (B) the inclusion of limited English proficient 
                children as part of the subgroup described in section 
                1111(b)(2)(C)(v)(II)(dd) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 
                6311(b)(2)(C)(v)(II)(dd)) after such children have 
                obtained English proficiency; or
                    (C) any requirement under section 1111(b)(2)(I)(ii) 
                of the Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 6311(b)(2)(I)(ii)).
    (e) Effect of Revised Determination.--
            (1) In general.--If pursuant to a review under this section 
        a local educational agency determines that a school made 
        adequate yearly progress for the 2002-2003 school year, upon 
        such determination--
                    (A) any action by the Secretary, the State 
                educational agency, or the local educational agency 
                that was taken because of a prior determination that 
                the school did not make such progress shall be 
                terminated; and
                    (B) any obligations or actions required of the 
                local educational agency or the school because of the 
                prior determination shall cease to be required.
            (2) Exceptions.--Notwithstanding paragraph (1), a 
        determination under this section shall not affect any 
        obligation or action required of a local educational agency or 
        school under the following:
                    (A) Section 1116(b)(13) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 6316(b)(13)) 
                (requiring a local educational agency to continue to 
                permit a child who transferred to another school under 
                such section to remain in that school until completion 
                of the highest grade in the school).
                    (B) Section 1116(e)(9) of the Elementary and 
                Secondary Education Act of 1965 (as redesignated by 
                section 402(3)) (20 U.S.C. 6316(e)(9)) (requiring a 
                local educational agency to continue to provide 
                supplemental educational services under such section 
                until the end of the school year).
            (3) Subsequent determinations.--In determining whether a 
        school is subject to school improvement, corrective action, or 
        restructuring as a result of not making adequate yearly 
        progress, the Secretary, a State educational agency, or a local 
        educational agency may not take into account a determination 
        that the school did not make adequate yearly progress for the 
        2002-2003 school year if such determination was revised under 
        this section and the school received a final determination of 
        having made adequate yearly progress for the 2002-2003 school 
        year.
    (f) Notification.--The Secretary--
            (1) shall require each State educational agency to notify 
        each school served by the agency of the school's ability to 
        request a review under this section; and
            (2) not later than 30 days after the date of the enactment 
        of this section, shall notify the public by means of the 
        Department of Education's website of the review process 
        established under this section.

SEC. 422. REVIEW OF ADEQUATE YEARLY PROGRESS DETERMINATIONS FOR LOCAL 
              EDUCATIONAL AGENCIES FOR THE 2002-2003 SCHOOL YEAR.

    (a) In General.--The Secretary shall require each State educational 
agency to provide each local educational agency in the State with an 
opportunity to request a review of a determination by the State 
educational agency that the local educational agency did not make 
adequate yearly progress for the 2002-2003 school year.
    (b) Application of Certain Provisions.--Except as inconsistent 
with, or inapplicable to, this section, the provisions of section 421 
shall apply to review by a State educational agency of a determination 
described in subsection (a) in the same manner and to the same extent 
as such provisions apply to review by a local educational agency of a 
determination described in section 421(a).

SEC. 423. DEFINITIONS.

    In this subtitle:
            (1) The term ``adequate yearly progress'' has the meaning 
        given to that term in section 1111(b)(2)(C) of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 6311(b)(2)(C)).
            (2) The term ``local educational agency'' means a local 
        educational agency (as that term is defined in section 9101 of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801)) receiving funds under part A of title I of such Act (20 
        U.S.C. 6311 et seq.).
            (3) The term ``Secretary'' means the Secretary of 
        Education.
            (4) The term ``school'' means an elementary school or a 
        secondary school (as those terms are defined in section 9101 of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801)) served under part A of title I of such Act (20 U.S.C. 
        6311 et seq.).
            (5) The term ``State educational agency'' means a State 
        educational agency (as that term is defined in section 9101 of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801)) receiving funds under part A of title I of such Act (20 
        U.S.C. 6311 et seq.).

                    Subtitle C--Technical Assistance

SEC. 451. TECHNICAL ASSISTANCE.

    (a) In General.--Part F of title IX of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7941) is amended--
            (1) in the part heading, by inserting ``AND TECHNICAL 
        ASSISTANCE'' after ``EVALUATIONS''; and
            (2) by adding at the end the following:

``SEC. 9602. TECHNICAL ASSISTANCE.

    ``The Secretary shall ensure that the technical assistance provided 
by, and the research developed and disseminated through, the Institute 
of Education Sciences and other offices or agencies of the Department 
provide educators and parents with the needed information and support 
for identifying and using educational strategies, programs, and 
practices, including strategies, programs, and practices available 
through the clearinghouses supported under the Education Sciences 
Reform Act of 2002 (20 U.S.C. 9501 et seq.) and other federally 
supported clearinghouses, that have been successful in improving 
educational opportunities and achievement for all students.''.
    (b) Table of Contents.--The table of contents of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6301 note) is amended by 
inserting after the item relating to section 9601 the following:

        ``Sec. 9602. Technical assistance.''.

            TITLE V--IMPROVING ASSESSMENT AND ACCOUNTABILITY

SEC. 501. GRANTS FOR INCREASING DATA CAPACITY FOR PURPOSES OF 
              ASSESSMENT AND ACCOUNTABILITY.

    (a) Program Authorized.--From funds appropriated for a fiscal year, 
the Secretary may award grants, on a competitive basis, to State 
educational agencies--
            (1) to enable the State educational agencies to develop or 
        increase the capacity of data systems for assessment and 
        accountability purposes, including the collection of graduation 
        rates; and
            (2) to award subgrants to increase the capacity of local 
        educational agencies to upgrade, create, or manage longitudinal 
        data systems for the purpose of measuring student academic 
        progress and achievement.
    (b) State Application.--Each State educational agency desiring a 
grant under this section shall submit an application to the Secretary 
at such time, in such manner, and containing such information as the 
Secretary may require.
    (c) State Use of Funds.--Each State educational agency that 
receives a grant under this section shall use--
            (1) not more than 20 percent of the grant funds for the 
        purpose of--
                    (A) increasing the capacity of, or creating, State 
                databases to collect, disaggregate, and report 
                information related to student achievement, enrollment, 
                and graduation rates for assessment and accountability 
                purposes; and
                    (B) reporting, on an annual basis, for the 
                elementary schools and secondary schools within the 
                State, on--
                            (i) the enrollment data from the beginning 
                        of the academic year;
                            (ii) the enrollment data from the end of 
                        the academic year; and
                            (iii) the twelfth grade graduation rates; 
                        and
            (2) not less than 80 percent of the grant funds to award 
        subgrants to local educational agencies within the State to 
        enable the local educational agencies to carry out the 
        authorized activities described in subsection (e).
    (d) Local Application.--Each local educational agency desiring a 
subgrant under this section shall submit an application to the State 
educational agency at such time, in such manner, and containing such 
information as the State educational agency may require. Each such 
application shall include, at a minimum, a demonstration of the local 
educational agency's ability to put a longitudinal data system in 
place.
    (e) Local Authorized Activities.--Each local educational agency 
that receives a subgrant under this section shall use the subgrant 
funds to increase the capacity of the local educational agency to 
upgrade or manage longitudinal data systems consistent with the uses in 
subsection (c)(1), by--
            (1) purchasing database software or hardware;
            (2) hiring additional staff for the purpose of managing 
        such data;
            (3) providing professional development or additional 
        training for such staff; and
            (4) providing professional development or training for 
        principals and teachers on how to effectively use such data to 
        implement instructional strategies to improve student 
        achievement and graduation rates.
    (f) Definitions.--In this section:
            (1) Graduation rate.--The term ``graduation rate'' means 
        the percentage that--
                    (A) the total number of students who--
                            (i) graduate from a secondary school with a 
                        regular diploma (which shall not include the 
                        recognized equivalent of a secondary school 
                        diploma or an alternative degree) in an 
                        academic year; and
                            (ii) graduated on time by progressing 1 
                        grade per academic year; represents of
                    (B) the total number of students who entered the 
                secondary school in the entry level academic year 
                applicable to the graduating students.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (3) State educational agency and local educational 
        agency.--The terms ``State educational agency'' and ``local 
        educational agency'' have the meanings given such terms in 
        section 9101 of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 7801).
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $100,000,000 for fiscal year 
2006, and such sums as may be necessary for each of the 2 succeeding 
fiscal years.

SEC. 502. GRANTS FOR ASSESSMENT OF CHILDREN WITH DISABILITIES AND 
              CHILDREN WHO ARE LIMITED ENGLISH PROFICIENT.

    (a) Grants for Assessment of Children With Disabilities and 
Children Who Are Limited English Proficient.--Part E of title I of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6491 et seq.) 
is amended by adding at the end the following:

``SEC. 1505. GRANTS FOR ASSESSMENT OF CHILDREN WITH DISABILITIES AND 
              CHILDREN WHO ARE LIMITED ENGLISH PROFICIENT.

    ``(a) Grants Authorized.--From amounts authorized to be 
appropriated under subsection (e) for a fiscal year, the Secretary 
shall award grants, on a competitive basis, to State educational 
agencies, or to consortia of State educational agencies, to enable the 
State educational agencies or consortia to collaborate with 
institutions of higher education, research institutions, or other 
organizations--
            ``(1) to design and improve State academic assessments for 
        students who are limited English proficient and students with 
        disabilities; and
            ``(2) to ensure the most accurate, valid, and reliable 
        means to assess academic content standards and student academic 
        achievement standards for students who are limited English 
        proficient and students with disabilities.
    ``(b) Authorized Activities.--A State educational agency or 
consortium that receives a grant under this section shall use the grant 
funds to carry out 1 or more of the following activities:
            ``(1) Developing alternate assessments for students with 
        disabilities, consistent with section 1111 and the amendments 
        made on December 9, 2003, to part 200 of title 34, Code of 
        Federal Regulations (68 Fed. Reg. 68698) (relating to 
        accountability for the academic achievement of students with 
        the most significant cognitive disabilities), including--
                    ``(A) the alignment of such assessments, as 
                appropriate and consistent with such amendments, with--
                            ``(i) State student academic achievement 
                        standards and State academic content standards 
                        for all students; or
                            ``(ii) alternate State student academic 
                        achievement standards that reflect the intended 
                        instructional construct for students with 
                        disabilities;
                    ``(B) activities to ensure that such assessments do 
                not reflect the disabilities, or associated 
                characteristics, of the students that are extraneous to 
                the intent of the measurement;
                    ``(C) the development of an implementation plan for 
                pilot tests for such assessments, in order to determine 
                the level of appropriateness and feasibility of full-
                scale administration; and
                    ``(D) activities that provide for the retention of 
                all feasible standardized features in the alternate 
                assessments.
            ``(2) Developing alternate assessments that meet the 
        requirements of section 1111 for students who are limited 
        English proficient, including--
                    ``(A) the alignment of such assessments with State 
                student academic achievement standards and State 
                academic content standards for all students;
                    ``(B) the development of parallel native language 
                assessments or linguistically modified assessments for 
                limited English proficient students that meet the 
                requirements of section 1111(b)(3)(C)(ix)(III);
                    ``(C) the development of an implementation plan for 
                pilot tests for such assessments, in order to determine 
                the level of appropriateness and feasibility of full-
                scale administration; and
                    ``(D) activities that provide for the retention of 
                all feasible standardized features in the alternate 
                assessments.
            ``(3) Developing, modifying, or revising State policies and 
        criteria for appropriate accommodations to ensure the full 
        participation of students who are limited English proficient 
        and students with disabilities in State academic assessments, 
        including--
                    ``(A) developing a plan to ensure that assessments 
                provided with accommodations are fully included and 
                integrated into the accountability system, for the 
                purpose of making the determinations of adequate yearly 
                progress required under section 1116;
                    ``(B) ensuring the validity, reliability, and 
                appropriateness of such accommodations, such as--
                            ``(i) a modification to the presentation or 
                        format of the assessment;
                            ``(ii) the use of assistive devices;
                            ``(iii) an extension of the time allowed 
                        for testing;
                            ``(iv) an alteration of the test setting or 
                        procedures;
                            ``(v) the administration of portions of the 
                        test in a method appropriate for the level of 
                        language proficiency of the test taker;
                            ``(vi) the use of a glossary or dictionary; 
                        and
                            ``(vii) the use of a linguistically 
                        modified assessment;
                    ``(C) ensuring that State policies and criteria for 
                appropriate accommodations take into account the form 
                or program of instruction provided to students, 
                including the level of difficulty, reliability, 
                cultural difference, and content equivalence of such 
                form or program;
                    ``(D) ensuring that such policies are consistent 
                with the standards prepared by the Joint Committee on 
                Standards for Educational and Psychological Testing of 
                the American Educational Research Association, the 
                American Psychological Association, and the National 
                Council on Measurement in Education; and
                    ``(E) developing a plan for providing training on 
                the use of accommodations to school instructional 
                staff, families, students, and other appropriate 
                parties.
            ``(4) Developing universally designed assessments that can 
        be accessible to all students, including--
                    ``(A) examining test item or test performance for 
                students with disabilities and students who are limited 
                English proficient, to determine the extent to which 
                the test item or test is universally designed;
                    ``(B) using think aloud and cognitive laboratory 
                procedures, as well as item statistics, to identify 
                test items that may pose particular problems for 
                students with disabilities or students who are limited 
                English proficient;
                    ``(C) developing and implementing a plan to ensure 
                that developers and reviewers of test items are trained 
                in the principles of universal design; and
                    ``(D) developing computer-based applications of 
                universal design principles.
    ``(c) Application.--Each State educational agency, or consortium of 
State educational agencies, desiring to apply for a grant under this 
section shall submit an application to the Secretary at such time, in 
such manner, and containing such information as the Secretary may 
require, including--
            ``(1) information regarding the institutions of higher 
        education, research institutions, or other organizations that 
        are collaborating with the State educational agency or 
        consortium, in accordance with subsection (a);
            ``(2) in the case of a consortium of State educational 
        agencies, the designation of 1 State educational agency as the 
        fiscal agent for the receipt of grant funds;
            ``(3) a description of the process and criteria by which 
        the State educational agency will identify students that are 
        unable to participate in general State content assessments and 
        are eligible to take alternate assessments, consistent with the 
        amendments made to part 200 of title 34, Code of Federal 
        Regulations (68 Fed. Reg. 68698);
            ``(4) in the case of a State educational agency or 
        consortium carrying out the activity described in subsection 
        (b)(1)(A), a description of how the State educational agency 
        plans to fulfill the requirement of subsection (b)(1)(A);
            ``(5) in the case of a State educational agency or 
        consortium carrying out the activities described in paragraphs 
        (1), (2), and (4) of subsection (b), information regarding the 
        proposed techniques for the development of alternate 
        assessments, including a description of the technical adequacy 
        of, technical aspects of, and scoring for such assessments;
            ``(6) a plan for providing training for school 
        instructional staff, families, students, and other appropriate 
        parties on the use of alternate assessments; and
            ``(7) information on how the scores of students 
        participating in alternate assessments will be reported to the 
        public and to parents.
    ``(d) Evaluation and Reporting Requirements.--Each State 
educational agency receiving a grant under this section shall submit an 
annual report to the Secretary describing the activities carried out 
under the grant and the result of such activities, including--
            ``(1) details on the effectiveness of the activities 
        supported under this section in helping students with 
        disabilities, or students who are limited English proficient, 
        better participate in State assessment programs; and
            ``(2) information on the change in achievement, if any, of 
        students with disabilities and students who are limited English 
        proficient, as a result of a more accurate assessment of such 
        students.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $50,000,000 for fiscal year 
2006, and such sums as may be necessary for each of the 2 succeeding 
fiscal years.''.
    (b) Table of Contents.--The table of contents of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6301 note) is amended by 
inserting after the item relating to section 1504 the following:

        ``Sec. 1505. Grants for assessment of children with 
                            disabilities and children who are limited 
                            English proficient.''.

SEC. 503. REPORTS ON STUDENT ENROLLMENT AND GRADUATION RATES.

    (a) Student Enrollment and Graduation Rates.--Part E of title I of 
the Elementary and Secondary Education Act of 1965 (as amended by 
section 502) (20 U.S.C. 6491 et seq.) is amended by adding at the end 
the following:

``SEC. 1506. REPORTS ON STUDENT ENROLLMENT AND GRADUATION RATES.

    ``(a) In General.--The Secretary shall collect from each State 
educational agency, local educational agency, and school, on an annual 
basis, the following data:
            ``(1) The number of students enrolled in each of grades 7 
        through 12 at the beginning of the most recent school year.
            ``(2) The number of students enrolled in each of grades 7 
        through 12 at the end of the most recent school year.
            ``(3) The graduation rate for the most recent school year.
            ``(4) The data described in paragraphs (1) through (3), 
        disaggregated by the groups of students described in section 
        1111(b)(2)(C)(v)(II).
    ``(b) Annual Report.--The Secretary shall report the information 
collected under subsection (a) on an annual basis.''.
    (b) Table of Contents.--The table of contents of the Elementary and 
Secondary Education Act of 1965 (as amended by section 502(b)) (20 
U.S.C. 6301 note) is amended by inserting after the item relating to 
section 1505 the following:

        ``Sec. 1506. Reports on student enrollment and graduation 
                            rates.''.

SEC. 504. CIVIL RIGHTS.

    Section 9534 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7914) is amended--
            (1) by redesignating subsections (a) and (b) as subsections 
        (b) and (c), respectively; and
            (2) by inserting before subsection (b) (as redesignated by 
        paragraph (1)) the following:
    ``(a) Prohibition of Discrimination.--Discrimination on the basis 
of race, color, religion, sex (except as otherwise permitted under 
title IX of the Education Amendments of 1972), national origin, or 
disability in any program funded under this Act is prohibited.''.

  TITLE VI--SENSE OF THE SENATE REGARDING FUNDING FOR ELEMENTARY AND 
                          SECONDARY EDUCATION

SEC. 601. SENSE OF THE SENATE.

    (a) Findings.--The Senate finds the following:
            (1) Congress enacted, with bipartisan support, and the 
        President signed into law the No Child Left Behind Act of 2001 
        (Public Law 107-210; 115 Stat. 1425), that reauthorized the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 
        et seq.). The new law required States to set high standards for 
        learning and required schools to implement reforms to help 
        improve student achievement. In return, Congress and the 
        President pledged to make sure schools would have resources to 
        carry out the reforms as called for in the new law.
            (2) $22,750,000,000 is needed to fund part A of title I of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6311 et seq.) in fiscal year 2006, as promised pursuant to the 
        No Child Left Behind Act of 2001 (Public Law 107-210; 115 Stat. 
        1425).
            (3) $25,000,000,000 is needed to fund part A of title I of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6311 et seq.) in fiscal year 2007, as promised pursuant to the 
        No Child Left Behind Act of 2001 (Public Law 107-210; 115 Stat. 
        1425).
    (b) Sense of the Senate.--It is the sense of the Senate that--
            (1) it is in the best interest of the Nation that all 
        students have access to a high-quality elementary and secondary 
        education; and
            (2) part A of title I of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6311 et seq.) should be funded 
        as promised pursuant to the No Child Left Behind Act of 2001 
        (Public Law 107-210; 115 Stat. 1425).

    TITLE VII--PROVIDING A ROADMAP FOR FIRST GENERATION COLLEGE FOR 
                                STUDENTS

SEC. 701. EXPANSION OF TRIO AND GEARUP.

    The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is 
amended--
            (1) in section 402A(f), by striking ``$700,000,000 for 
        fiscal year 1999'' and inserting ``$1,000,000,000 for fiscal 
        year 2006''; and
            (2) by striking section 404H and inserting the following:

``SEC. 404H. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this chapter 
$400,000,000 for fiscal year 2006 and such sums as may be necessary for 
each of the 4 succeeding fiscal years.''.

  TITLE VIII--COLLEGE TUITION RELIEF FOR STUDENTS AND THEIR FAMILIES 
                          THROUGH PELL GRANTS

SEC. 801. PELL GRANTS TAX TABLES HOLD HARMLESS.

     Notwithstanding any other provision of law, the annual updates to 
the allowance for State and other taxes in the tables used in the 
Federal Need Analysis Methodology to determine a student's expected 
family contribution for the award year 2005-2006 under part F of title 
IV of the Higher Education Act of 1965 (20 U.S.C. 1087kk et seq.), 
published in the Federal Register on Thursday, December 23, 2004 (69 
Fed. Reg. 76926), shall not apply to a student to the extent the 
updates will reduce the amount of Federal student assistance for which 
the student is eligible.

SEC. 802. SENSE OF THE SENATE REGARDING INCREASING THE MAXIMUM PELL 
              GRANT.

    (a) Findings.--The Senate makes the following findings:
            (1) Increasing the percentage of individuals who obtain a 
        postsecondary education has become increasingly important, not 
        just to the individual beneficiary, but to the Nation as a 
        whole. The growth and continued expansion of the Nation's 
        economy is heavily dependent on an educated and highly skilled 
        workforce.
            (2) The opportunity to gain a postsecondary education also 
        is important to the Nation as a means to help advance the 
        American ideals of progress and equality.
            (3) The Federal Government plays an invaluable role in 
        making student financial aid available to ensure that qualified 
        students are able to attend college, regardless of their 
        financial means. Since the inception of the Pell Grant program 
        in 1973, nearly 80,000,000 grants have helped low- and middle-
        income students go to college, enrich their lives, and become 
        productive members of society.
            (4) Nationwide, almost 63 percent of secondary school 
        graduates continue on to higher education immediately after 
        completing secondary school. This degree of college 
        participation would not exist without the Federal investment in 
        student aid, especially the Pell Grant program. More than 
        4,000,000 low- and middle-income students receive Pell Grants; 
        95 percent of whom have a family income of not more than 
        $40,000.
            (5) In the next 10 years, the number of undergraduate 
        students enrolled in the Nation's colleges and universities 
        will increase by 15 percent to more than 15,000,000 students. 
        Many of these students will be the first in their families to 
        attend college. The continued investment in the Pell Grant 
        program is essential if college is to remain an achievable part 
        of the American dream.
            (6) Increasing the maximum Pell Grant to $5,100 would allow 
        more than 430,000 additional students to benefit from the 
        program.
            (7) Increasing the maximum Pell Grant to $5,100 would 
        result in 200,000 new Pell Grant recipients.
            (8) Pell Grant recipients are more likely to graduate with 
        student loan debt and to amass more debt than other student 
        borrowers. Increasing the maximum Pell Grant to $5,100 will 
        help remedy this disparity.
    (b) Sense of the Senate.--It is the sense of the Senate that--
            (1) the maximum Pell Grant should be increased to $5,100 
        during award year 2006-2007; and
            (2) the maximum Pell Grant amount set by Congress should be 
        the amount eligible students receive.

SEC. 803. ESTABLISHMENT OF A PELL DEMONSTRATION PROGRAM.

    (a) Findings.--Congress finds that:
            (1) A student remains eligible to receive a Federal Pell 
        Grant as long as the student is income-eligible and has not 
        received a bachelor's degree.
            (2) By encouraging persistence and degree acquisition in a 
        timely manner, the Federal Government, in effect, saves money--
                    (A) by reducing the courses that do not lead to a 
                degree; and
                    (B) by helping students get the financial benefits 
                of a college degree as soon as possible.
    (b) Pell Demonstration Program.--
            (1) Authorization.--The Secretary of Education shall 
        establish a demonstration program to facilitate the ability of 
        low-income students to complete the students' degree within 150 
        percent of the time expected to complete such degree.
            (2) Grants.--The Secretary of Education shall award 
        competitive grants to institutions of higher education to 
        enable students who are eligible to receive Federal Pell Grants 
        under subpart 1 of part A of title IV of the Higher Education 
        Act of 1965 (20 U.S.C. 1070a et seq.) to enroll in courses in 
        the summer at such institutions to expedite the students' 
        graduation from the institutions.
            (3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $500,000,000 
        for the period of fiscal years 2006 through 2008.

 TITLE IX--TUITION FREE COLLEGE FOR MATHEMATICS, SCIENCE, AND SPECIAL 
                           EDUCATION TEACHERS

SEC. 901. PURPOSE.

    It is the purpose of this title to make public college tuition free 
for future mathematics, science, and special education teachers and to 
provide additional assistance to students eligible to receive a Federal 
Pell Grant under subpart 1 of part A of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070a et seq.).

SEC. 902. TUITION FREE COLLEGE FOR MATHEMATICS, SCIENCE, AND SPECIAL 
              EDUCATION TEACHERS.

    (a) Additional Amounts for Teachers in Mathematics, Science, and 
Special Education.--
            (1) FFEL loans.--Section 428J(c)(3) of the Higher Education 
        Act of 1965 (20 U.S.C. 1078-10(c)(3)) is amended by striking 
        ``$17,500'' and inserting ``$23,000''.
            (2) Direct loans.--Section 460(c)(3) of the Higher 
        Education Act of 1965 (20 U.S.C. 1087j(c)(3)) is amended by 
        striking ``$17,500'' and inserting ``$23,000''.
    (b) Effective Date.--The amendments made by this section shall 
apply only with respect to eligible individuals who are new borrowers 
on or after October 1, 1998.

SEC. 903. OFFSET FOR TUITION FREE COLLEGE FOR MATHEMATICS, SCIENCE, AND 
              SPECIAL EDUCATION TEACHERS.

    (a) Special Allowances.--
            (1) In general.--Section 438(b)(2)(B) of the Higher 
        Education Act of 1965 (20 U.S.C. 1087-1(b)(2)(B)) is amended--
                    (A) in clause (iv), by striking ``or refunded after 
                September 30, 2004, and before January 1, 2006,'' and 
                inserting ``or refunded on or after the date of 
                enactment of the Taxpayer-Teacher Protection Act of 
                2004,''; and
                    (B) by striking clause (v) and inserting the 
                following:
                            ``(v) Notwithstanding clauses (i) and (ii), 
                        the quarterly rate of the special allowance 
                        shall be the rate determined under subparagraph 
                        (A), (E), (F), (G), (H), or (I) of this 
                        paragraph, or paragraph (4), as the case may 
                        be, for loans--
                                    ``(I) originated, transferred, or 
                                purchased on or after the date of 
                                enactment of the Taxpayer-Teacher 
                                Protection Act of 2004;
                                    ``(II) financed by an obligation 
                                that has matured, been retired, or 
                                defeased on or after the date of 
                                enactment of the Taxpayer-Teacher 
                                Protection Act of 2004;
                                    ``(III) which the special allowance 
                                was determined under such subparagraphs 
                                or paragraph, as the case may be, on or 
                                after the date of enactment of the 
                                Taxpayer-Teacher Protection Act of 
                                2004;
                                    ``(IV) for which the maturity date 
                                of the obligation from which funds were 
                                obtained for such loans was extended on 
                                or after the date of enactment of the 
                                Taxpayer-Teacher Protection Act of 
                                2004; or
                                    ``(V) sold or transferred to any 
                                other holder on or after the date of 
                                enactment of the Taxpayer-Teacher 
                                Protection Act of 2004.''.
            (2) Rule of construction.--Nothing in the amendment made by 
        paragraph (1) shall be construed to abrogate a contractual 
        agreement between the Federal Government and a student loan 
        provider.
    (b) Available Funds From Reduced Expenditures.--
            (1) In general.--Any funds available to the Secretary of 
        Education as a result of reduced expenditures under section 438 
        of the Higher Education Act of 1965 (20 U.S.C. 1087-1) secured 
        by the enactment of subsection (a) shall first be used by the 
        Secretary for loan cancellation and loan forgiveness for 
        teachers under sections 428J and 460 of the Higher Education 
        Act of 1965 (20 U.S.C. 1078-10, 1087j), as amended by section 
        902 of this Act.
            (2) Remaining funds.--
                    (A) In general.--Any such funds remaining after 
                carrying out paragraph (1) shall be used by the 
                Secretary of Education to make payments to each 
                nonprofit lender in an amount that bears the same 
                relation to the remaining funds as the amount the 
                nonprofit lender receives for fiscal year 2005 under 
                section 438(b)(2)(B) of the Higher Education Act of 
                1965 (20 U.S.C. 1087-1(b)(2)(B)) bears to the total 
                amount received by nonprofit lenders for fiscal year 
                2005 under such section.
                    (B) Definition of nonprofit lender.--In this 
                paragraph the term ``nonprofit lender'' means an 
                eligible lender (as defined in section 435(d) of the 
                Higher Education Act of 1965 (20 U.S.C.1085(d)) that--
                            (i) is an organization described in section 
                        501(c)(3) of the Internal Revenue Code of 1986;
                            (ii) is a nonprofit entity as defined by 
                        applicable State law; and
                            (iii) meets the following requirements:
                                    (I) The nonprofit lender does not 
                                confer a salary or benefits to any 
                                employee of the nonprofit lender in an 
                                amount that is in excess of the salary 
                                and benefits provided to the Secretary 
                                of Education by the Department of 
                                Education.
                                    (II) The nonprofit lender does not 
                                maintain an ongoing relationship 
                                whereby the nonprofit lender passes on 
                                revenue directly or indirectly through 
                                lease, securitization, resale, or any 
                                other financial instrument to a for-
                                profit entity or to shareholders.
                                    (III) The nonprofit lender does not 
                                offer benefits to a borrower in a 
                                manner directly or indirectly 
                                predicated on such borrower's 
                                participation--
                                            (aa) in a program under 
                                        part B or D of title IV of the 
                                        Higher Education Act of 1965 
                                        (20 U.S.C. 1071 et seq., 1087a 
                                        et seq.); or
                                            (bb) with any particular 
                                        lender.
                                    (IV) The nonprofit lender certifies 
                                that the nonprofit lender uses the 
                                payment received pursuant to 
                                subparagraph (A) to confer grant or 
                                scholarship benefits to students who 
                                are eligible to receive Federal Pell 
                                Grants under subpart 1 of part A of 
                                title IV of the Higher Education Act of 
                                1965 (20 U.S.C. 1070a et seq.).
                                    (V) The nonprofit lender is subject 
                                to public oversight through either a 
                                State charter, or through not less than 
                                50 percent of the nonprofit lender's 
                                board of directors consisting of State 
                                appointed representatives.
                                    (VI) The nonprofit lender does not 
                                engage in the marketing of the relative 
                                value of programs under part B of title 
                                IV of the Higher Education Act of 1965 
                                as compared to programs under part D of 
                                title IV of the Higher Education Act of 
                                1965, nor does the nonprofit lender 
                                engage in the marketing of loans or 
                                programs offered by for-profit lenders. 
                                This subclause shall not be construed 
                                to prohibit the nonprofit lender from 
                                conferring basic information on lenders 
                                under part B of title IV of the Higher 
                                Education Act of 1965 and the related 
                                benefits offered by such nonprofit 
                                lenders.

          TITLE X--MAKING COLLEGE AFFORDABLE FOR ALL STUDENTS

SEC. 1001. EXPANSION OF DEDUCTION FOR HIGHER EDUCATION EXPENSES.

    (a) Amount of Deduction.--Subsection (b) of section 222 of the 
Internal Revenue Code of 1986 (relating to deduction for qualified 
tuition and related expenses) is amended to read as follows:
    ``(b) Limitations.--
            ``(1) Dollar limitations.--
                    ``(A) In general.--Except as provided in paragraph 
                (2), the amount allowed as a deduction under subsection 
                (a) with respect to the taxpayer for any taxable year 
                shall not exceed the applicable dollar limit.
                    ``(B) Applicable dollar limit.--The applicable 
                dollar limit for any taxable year shall 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.
            ``(2) Limitation based on modified adjusted gross income.--
                    ``(A) In general.--The amount which would (but for 
                this paragraph) be taken into account under subsection 
                (a) shall be reduced (but not below zero) by the amount 
                determined under subparagraph (B).
                    ``(B) Amount of reduction.--The amount determined 
                under this subparagraph equals the amount which bears 
                the same ratio to the amount which would be so taken 
                into account as--
                            ``(i) the excess of--
                                    ``(I) the taxpayer's modified 
                                adjusted gross income for such taxable 
                                year, over
                                    ``(II) $65,000 ($130,000 in the 
                                case of a joint return), bears to
                            ``(ii) $15,000 ($30,000 in the case of a 
                        joint return).
                    ``(C) Modified adjusted gross income.--For purposes 
                of this paragraph, the term `modified adjusted gross 
                income' means the adjusted gross income of the taxpayer 
                for the taxable year determined--
                            ``(i) without regard to this section and 
                        sections 199, 911, 931, and 933, and
                            ``(ii) after the application of sections 
                        86, 135, 137, 219, 221, and 469.
                For purposes of the sections referred to in clause 
                (ii), adjusted gross income shall be determined without 
                regard to the deduction allowed under this section.
                    ``(D) Inflation adjustments.--
                            ``(i) In general.--In the case of any 
                        taxable year beginning in a calendar year after 
                        2005, both of the dollar amounts in 
                        subparagraph (B)(i)(II) shall be increased by 
                        an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year in which 
                                the taxable year begins, by 
                                substituting `calendar year 2004' for 
                                `calendar year 1992' in subparagraph 
                                (B) thereof.
                            ``(ii) Rounding.--If any amount as adjusted 
                        under clause (i) is not a multiple of $50, such 
                        amount shall be rounded to the nearest multiple 
                        of $50.''.
    (b) Qualified Tuition and Related Expenses of Eligible Students.--
            (1) In general.--Section 222(a) of the Internal Revenue 
        Code of 1986 (relating to allowance of deduction) is amended by 
        inserting ``of eligible students'' after ``expenses''.
            (2) Definition of eligible student.--Section 222(d) of such 
        Code (relating to definitions and special rules) is amended by 
        redesignating paragraphs (2) through (6) as paragraphs (3) 
        through (7), respectively, and by inserting after paragraph (1) 
        the following new paragraph:
            ``(2) Eligible student.--The term `eligible student' has 
        the meaning given such term by section 36(b)(3).''.
    (c) Deduction Made Permanent.--Title IX of the Economic Growth and 
Tax Relief Reconciliation Act of 2001 (relating to sunset of provisions 
of such Act) shall not apply to the amendments made by section 431 of 
such Act.
    (d) Effective Date.--The amendments made by this section shall 
apply to payments made in taxable years beginning after December 31, 
2004.

SEC. 1002. CREDIT FOR INTEREST ON HIGHER EDUCATION LOANS.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25B the 
following new section:

``SEC. 25C. INTEREST ON HIGHER EDUCATION LOANS.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the interest paid by the 
taxpayer during the taxable year on any qualified education loan.
    ``(b) Maximum Credit.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        credit allowed by subsection (a) for the taxable year shall not 
        exceed $1,500.
            ``(2) Limitation based on modified adjusted gross income.--
                    ``(A) In general.--If the modified adjusted gross 
                income of the taxpayer for the taxable year exceeds 
                $50,000 ($100,000 in the case of a joint return), the 
                amount which would (but for this paragraph) be 
                allowable as a credit under this section shall be 
                reduced (but not below zero) by the amount which bears 
                the same ratio to the amount which would be so 
                allowable as such excess bears to $20,000 ($40,000 in 
                the case of a joint return).
                    ``(B) Modified adjusted gross income.--The term 
                `modified adjusted gross income' means adjusted gross 
                income determined without regard to sections 199, 222, 
                911, 931, and 933.
                    ``(C) Inflation adjustment.--In the case of any 
                taxable year beginning after 2005, the $50,000 and 
                $100,000 amounts referred to in subparagraph (A) shall 
                be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        by substituting `2004' for `1992'.
                    ``(D) Rounding.--If any amount as adjusted under 
                subparagraph (C) is not a multiple of $50, such amount 
                shall be rounded to the nearest multiple of $50.
    ``(c) Dependents Not Eligible for Credit.--No credit shall be 
allowed by this section to an individual for the taxable year if a 
deduction under section 151 with respect to such individual is allowed 
to another taxpayer for the taxable year beginning in the calendar year 
in which such individual's taxable year begins.
    ``(d) Limit on Period Credit Allowed.--A credit shall be allowed 
under this section only with respect to interest paid on any qualified 
education loan during the first 60 months (whether or not consecutive) 
in which interest payments are required. For purposes of this 
paragraph, any loan and all refinancings of such loan shall be treated 
as 1 loan.
    ``(e) Definitions.--For purposes of this section--
            ``(1) Qualified education loan.--The term `qualified 
        education loan' has the meaning given such term by section 
        221(d)(1).
            ``(2) Dependent.--The term `dependent' has the meaning 
        given such term by section 152.
    ``(f) Special Rules.--
            ``(1) Denial of double benefit.--No credit shall be allowed 
        under this section for any amount taken into account for any 
        deduction under any other provision of this chapter.
            ``(2) Married couples must file joint return.--If the 
        taxpayer is married at the close of the taxable year, the 
        credit shall be allowed under subsection (a) only if the 
        taxpayer and the taxpayer's spouse file a joint return for the 
        taxable year.
            ``(3) Marital status.--Marital status shall be determined 
        in accordance with section 7703.''.
    (b) Conforming Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 25B the 
following new item:

        ``Sec. 25C. Interest on higher education loans.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any qualified education loan (as defined in section 25C(e)(1) 
of the Internal Revenue Code of 1986, as added by this section) 
incurred on, before, or after the date of the enactment of this Act, 
but only with respect to any loan interest payment due after December 
31, 2004.

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

    (a) Credit To Be Refundable.--Section 25A of the Internal Revenue 
Code of 1986 (relating to Hope and Lifetime Learning credits) is hereby 
moved to subpart C of part IV of subchapter A of chapter 1 of such Code 
(relating to refundable credits) and inserted after section 35.
    (b) Technical Amendments.--
            (1) Section 36 of such Code is redesignated as section 37.
            (2) Section 25A of such Code (as moved by subsection (a)) 
        is redesignated as section 36.
            (3) Paragraph (1) of section 36(a) of such Code (as 
        redesignated by paragraph (2)) is amended by striking ``this 
        chapter'' and inserting ``this subtitle''.
            (4) Subparagraph (B) of section 72(t)(7) of such Code is 
        amended by striking ``section 25A(g)(2)'' and inserting 
        ``section 36(g)(2)''.
            (5) Subparagraph (A) of section 135(d)(2) of such Code is 
        amended by striking ``section 25A'' and inserting ``section 
        36''.
            (6) Section 221(d) of such Code is amended--
                    (A) by striking ``section 25A(g)(2)'' in paragraph 
                (2)(B) and inserting ``section 36(g)(2)'',
                    (B) by striking ``section 25A(f)(2)'' in the matter 
                following paragraph (2)(B) and inserting ``section 
                36(f)(2)'', and
                    (C) by striking ``section 25A(b)(3)'' in paragraph 
                (3) and inserting ``section 36(b)(3)''.
            (7) Section 222 of such Code is amended--
                    (A) by striking ``section 25A'' in subparagraph (A) 
                of subsection (c)(2) and inserting ``section 36'',
                    (B) by striking ``section 25A(f)'' in subsection 
                (d)(1) and inserting ``section 36(f)'', and
                    (C) by striking ``section 25A(g)(2)'' in subsection 
                (d)(1) and inserting ``section 36(g)(2)''.
            (8) Section 529 of such Code is amended--
                    (A) by striking ``section 25A(g)(2)'' in subclause 
                (I) of subsection (c)(3)(B)(v) and inserting ``section 
                36(g)(2)'',
                    (B) by striking ``section 25A'' in subclause (II) 
                of subsection (c)(3)(B)(v) and inserting ``section 
                36'', and
                    (C) by striking ``section 25A(b)(3)'' in clause (i) 
                of subsection (e)(3)(B) and inserting ``section 
                36(b)(3)''.
            (9) Section 530 of such Code is amended--
                    (A) by striking ``section 25A(g)(2)'' in subclause 
                (I) of subsection (d)(2)(C)(i) and inserting ``section 
                36(g)(2)'',
                    (B) by striking ``section 25A'' in subclause (II) 
                of subsection (d)(2)(C)(i) and inserting ``section 
                36'', and
                    (C) by striking ``section 25A(g)(2)'' in clause 
                (iii) of subsection (d)(4)(B) and inserting ``section 
                36(g)(2)''.
            (10) Subsection (e) of section 6050S of such Code is 
        amended by striking ``section 25A'' and inserting ``section 
        36''.
            (11) Subparagraph (J) of section 6213(g)(2) of such Code is 
        amended by striking ``section 25A(g)(1)'' and inserting 
        ``section 36(g)(1)''.
            (12) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting before the period ``or 
        from section 36 of such Code''.
            (13) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by striking the item relating to section 36 and 
        inserting the following:

``Sec. 36. Hope and Lifetime Learning credits.
``Sec. 37. Overpayments of tax.''.
            (14) The table of sections for subpart A of such part IV is 
        amended by striking the item relating to section 25A.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.
                                 <all>
```