I 

109TH CONGRESS 

1ST SESSION H. R. 1681 

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

IN THE HOUSE OF REPRESENTATIVES 

APRIL 19, 2005 

Mr. BUTTERFIELD (for himself, Mr. PAYNE, Ms. LEE, Mrs. JONES of Ohio, 

Mr. OWENS, Mr. RUSH, Mr. THOMPSON of Mississippi, Mr. HOLDEN, Ms. 

NORTON, Mr. BERMAN, Mr. CLAY, Mr. LEWIS of Georgia, Mr. FORD, Mr. 

WEXLER, Mr. CONYERS, Mr. CARDOZA, Mr. PETERSON of Minnesota, 

Mrs. TAUSCHER, Mr. PALLONE, Mr. CLEAVER, and Mr. CLYBURN) introduced the following bill; which was referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and 

Means, for a period to be subsequently determined by the Speaker, in 

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To improve education for all students, and for other 

purposes. 

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

3 SECTION 1. SHORT TITLE. 

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

5 All Act’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 
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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. 
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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. 
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1 TITLE I—STRENGTHENING HEAD 

2 START AND CHILD CARE PRO3 GRAMS 

4 Subtitle A—Increasing Access to 

5 Head Start Programs 

6 SEC. 101. AUTHORIZATION OF APPROPRIATIONS. 

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

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

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

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

11 $12,384,000,000 for fiscal year 2008, $14,334,000,000 

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

13 2010.’’. 

14 SEC. 102. STRENGTHENING INDIAN AND MIGRANT AND 

15 SEASONAL HEAD START PROGRAMS. 

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

17 9835(a)(2)) is amended by striking subparagraph (A) and 

18 inserting the following: 

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

20 children with disabilities, and migrant and seasonal 

21 Head Start programs, except that the Secretary 

22 shall reserve for each fiscal year for use by Indian 

23 Head Start and migrant and seasonal Head Start 

24 programs (referred to in this subparagraph as ‘cov25 ered programs’), on a nationwide basis, a sum that 
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1 is the total of not less than 4 percent of the amount 

2 appropriated under section 639(a) for that fiscal 

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

4 than 5 percent of that appropriated amount (for mi5 grant and seasonal Head Start programs), except 

6 that— 

7 ‘‘(i) if reserving the specified percentages 

8 for covered programs and would reduce the 

9 number of children served by Head Start pro10 grams, relative to the number of children served 

11 on the date of enactment of the Quality Edu12 cation for All Act, taking into consideration an 

13 appropriate adjustment for inflation, the Sec14 retary shall reserve percentages that approach, 

15 as closely as practicable, the specified percent16 ages and that do not cause such a reduction; 

17 and 

18 ‘‘(ii) notwithstanding any other provision 

19 of this subparagraph, the Secretary shall re20 serve for each fiscal year for use by Indian 

21 Head Start programs and by migrant and sea22 sonal Head Start programs, on a nationwide 

23 basis, not less than the amount that was obli24 gated for use by Indian Head Start programs 

25 and by migrant and seasonal Head Start pro-
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1 grams, respectively, for the previous fiscal 

2 year;’’. 

3 SEC. 103. EXPANDING EARLY HEAD START PROGRAMS. 

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

5 9835(a)(6)) is amended— 

6 (1) in subparagraph (A), by striking ‘‘7.5 per7 cent for fiscal year 1999’’ and all that follows and 

8 inserting ‘‘12 percent for fiscal year 2006, 14 per9 cent for fiscal year 2007, 16 percent for fiscal year 

10 2008, 18 percent for fiscal year 2009, and 20 per11 cent for fiscal year 2010, of the amount appro12 priated pursuant to section 639(a).’’; 

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

14 (3) by redesignating subparagraph (C) as sub15 paragraph (B). 

16 SEC. 104. PARTICIPATION IN HEAD START PROGRAMS. 

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

18 is amended— 

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

20 percent of’’ after ‘‘below’’; and 

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

22 ‘‘(e) After demonstrating a need through a commu23 nity needs assessment, a Head Start agency may apply 

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

25 consecutive part-day sessions, into full-day sessions.’’. 
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1 Subtitle B—Enhancing the School 

2 Readiness of Head Start Children 

3 SEC. 111. SCHOOL READINESS STANDARDS. 

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

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

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

7 ‘‘at a minimum, develop and demonstrate— 

8 ‘‘(I) language skills, including an ex9 panded use of vocabulary; 

10 ‘‘(II) interest in and appreciation of 

11 books, reading, and writing (either alone or 

12 with others), phonological and phonemic 

13 awareness, and varied modes of expression 

14 and communication; 

15 ‘‘(III) premathematics knowledge and 

16 skills, including knowledge and skills relat17 ing to aspects of classification, seriation, 

18 numbers, spatial relations, and time; 

19 ‘‘(IV) cognitive abilities related to aca20 demic achievement; 

21 ‘‘(V) abilities related to social and 

22 emotional development; 

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

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

25 limited English proficiency, abilities related 
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1 to progress toward acquisition of the 

2 English language.’’. 

3 SEC. 112. STAFF. 

4 (a) STAFF QUALIFICATIONS AND DEVELOPMENT.— 

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

6 is amended— 

7 (1) in subsection (a)(2)— 

8 (A) in subparagraph (A)— 

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

10 by striking ‘‘not later than September 30, 

11 2003’’ and all that follows through ‘‘pro12 grams have’’ and inserting ‘‘not later than 

13 the date determined under subparagraph 

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

15 Start agency in the region with a center16 based program shall ensure that all class17 rooms in the program have at least 1 

18 teacher who has’’; 

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

20 baccalaureate,’’ and insert ‘‘a bacca21 laureate’’; and 

22 (iii) in clause (ii), strike ‘‘an asso23 ciate, baccalaureate,’’ and insert ‘‘a bacca24 laureate’’; and 
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1 (B) by striking subparagraph (B) and in2 serting the following: 

3 ‘‘(B) TEMPORARY REQUIREMENT.—Until 

4 the date determined under subparagraph (D) 

5 for a Head Start region, the Secretary shall en6 sure that at least 50 percent of all Head Start 

7 teachers in the region in center-based programs 

8 have— 

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

10 advanced degree in early childhood edu11 cation; or 

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

13 advanced degree in a field related to early 

14 childhood education, with experience in 

15 teaching preschool children. 

16 ‘‘(C) REQUIREMENT FOR NEW HEAD

17 START TEACHERS.—Not later than 3 years 

18 after the date of enactment of the Quality Edu19 cation for All Act, the Secretary shall require 

20 that all teachers hired nationwide in center21 based programs of Head Start agencies fol22 lowing the date of the requirement— 

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

24 or advanced degree in early childhood edu25 cation; 
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1 ‘‘(ii) have an associate, baccalaureate, 

2 or advanced degree in a field related to 

3 early childhood education, with experience 

4 in teaching preschool children; or 

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

6 than 1 year after the date of hire, in a pro7 gram of study leading to an associate de8 gree in early childhood education. 

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

10 shall determine an appropriate date for Head 

11 Start agencies in each Head Start region to 

12 reach the result described in subparagraph (A), 

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

14 8 years after the date of enactment of Quality 

15 Education for All Act. 

16 ‘‘(E) PROGRESS.— 

17 ‘‘(i) REQUIREMENT.—The Secretary 

18 shall require Head Start agencies with cen19 ter-based programs to demonstrate con20 tinuing and consistent progress each year 

21 to reach the results described in subpara22 graphs (A) and (C). 

23 ‘‘(ii) PLAN.—Each State shall estab24 lish a plan for the Head Start agencies 

25 with center-based programs in the State to 
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1 reach the results described in subpara2 graphs (A) and (C). 

3 ‘‘(iii) PROGRESS.—Each Head Start 

4 agency shall prepare and submit to the 

5 Secretary and the Governor of the State a 

6 report indicating the number and percent7 age of its teachers in center-based pro8 grams with child development associate 

9 credentials or associate, baccalaureate, or 

10 advanced degrees in early childhood edu11 cation or a field related to early childhood 

12 education. The Secretary shall compile all 

13 such reports and submit a summary of the 

14 compiled reports to the Committee on 

15 Health, Education, Labor, and Pensions of 

16 the Senate and the Committee on Edu17 cation and the Workforce of the House of 

18 Representatives.’’; 

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

20 and inserting ‘‘(2)(B)’’; and 

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

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

23 support local efforts to enhance early language and pre24 literacy development of children in Head Start programs, 

25 and to provide the children with high-quality oral language 
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1 skills and environments that are rich in literature, in 

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

3 each Head Start agency shall ensure that all of the agen4 cy’s Head Start teachers receive ongoing training in lan5 guage and emergent literacy. Such training shall also in6 clude information regarding appropriate curricula and as7 sessments to improve instruction and learning. Such train8 ing shall include training in methods to promote phono9 logical and phonemic awareness and vocabulary develop10 ment in an age-appropriate and culturally and linguis11 tically appropriate manner. 

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

13 Head Start agency and center shall create, in consultation 

14 with employees of the agency or center (including family 

15 service workers), a professional development plan for em16 ployees who provide direct services to children, including 

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

18 in subsection (a).’’. 

19 (b) ATTRACTING AND RETAINING HIGH-QUALITY

20 HEAD START TEACHERS; TRIBAL COLLEGE OR UNIVER21 SITY-HEAD START PARTNERSHIP PROGRAM.— 

22 (1) PROGRAM.—The Head Start Act is amend23 ed by inserting after section 648A (42 U.S.C. 

24 9843a) the following: 
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1 ‘‘SEC. 648B. ATTRACTING AND RETAINING HIGH-QUALITY 

2 HEAD START TEACHERS. 

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

4 to eligible Head Start agencies to enable the agencies to 

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

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

7 grants from allotments determined under subsection (b). 

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

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

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

11 Head Start agency an amount that bears the same rela12 tionship to such funds as the amount received by the agen13 cy under section 640 for that fiscal year bears to the 

14 amount received by all Head Start agencies under section 

15 640 for that fiscal year. 

16 ‘‘(c) SALARY PLAN.—A Head Start agency that re17 ceives a grant under this section shall develop and carry 

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

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

20 agency shall take into consideration the training, level of 

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

22 salaries of prekindergarten and kindergarten teachers em23 ployed by the local educational agency for the school dis24 trict in which the Head Start agency is located, with simi25 lar training, level of education, and experience. 
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1 ‘‘(d) SALARIES IN HIGH-COST AREAS.—The Sec2 retary may reserve and use a portion of the funds available 

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

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

5 such average salaries of such teachers and such average 

6 salaries of such prekindergarten and kindergarten teach7 ers. 

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

9 PARTNERSHIP PROGRAM. 

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

11 PARTNERSHIP PROGRAM.— 

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

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

14 Tribal Colleges and Universities to— 

15 ‘‘(A) implement education programs that 

16 include tribal culture and language and increase 

17 the number of associate, baccalaureate, and 

18 graduate degrees in early childhood education 

19 and related fields that are earned by Indian 

20 Head Start agency staff members, parents of 

21 children served by such an agency, and mem22 bers of the tribal community involved; 

23 ‘‘(B) develop and implement the programs 

24 under subparagraph (A) in technology-mediated 

25 formats; and 
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1 ‘‘(C) provide technology literacy programs 

2 for Indian Head Start agency staff members 

3 and children and families of children served by 

4 such an agency. 

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

6 that the American Indian Programs Branch of the 

7 Head Start Bureau of the Department of Health 

8 and Human Services shall have staffing sufficient to 

9 administer the programs under this section and to 

10 provide appropriate technical assistance to Tribal 

11 Colleges and Universities receiving grants under this 

12 section. 

13 ‘‘(b) APPLICATION.—Each Tribal College or Univer14 sity desiring a grant under this section shall submit an 

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

16 and containing such information as the Secretary may re17 quire, including a certification that the Tribal College or 

18 University has established a partnership with 1 or more 

19 Indian Head Start agencies for the purpose of conducting 

20 the activities described in subsection (a). 

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

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

23 The term ‘institution of higher education’ has the 

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

25 Higher Education Act of 1965 (20 U.S.C. 1001(a)). 
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1 ‘‘(2) TRIBAL COLLEGE OR UNIVERSITY.—The 

2 term ‘Tribal College or University’ means an institu3 tion— 

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

5 316(b) of the Higher Education Act of 1965 

6 (20 U.S.C. 1059c(b)); and 

7 ‘‘(B) determined to be accredited or a can8 didate for accreditation by a nationally recog9 nized accrediting agency or association. 

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

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

12 $10,000,000 for fiscal year 2006 and such sums as may 

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

14 (2) AUTHORIZATION OF APPROPRIATIONS.— 

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

16 is amended— 

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

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

19 and 

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

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

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

23 $496,000,000 for fiscal year 2007, $608,000,000 for fis24 cal year 2008, $723,000,000 for fiscal year 2009, and 

25 $841,000,000 for fiscal year 2010.’’. 
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1 (3) CONFORMING AMENDMENTS.—Section 640 

2 of the Head Start Act (42 U.S.C. 9835) is amend3 ed— 

4 (A) in subsection (a)— 

5 (i) in paragraph (1), by striking ‘‘sec6 tion 639’’ and inserting ‘‘section 639(a)’’; 

7 (ii) in paragraph (2)— 

8 (I) in the matter preceding sub9 paragraph (A), by inserting ‘‘pursuant 

10 to section 639(a)’’ after ‘‘appro11 priated’’; 

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

13 matter following clause (ii), by insert14 ing ‘‘pursuant to section 639(a)’’ after 

15 ‘‘appropriated’’; and 

16 (III) in subparagraph (C), by in17 serting ‘‘pursuant to section 639(a)’’ 

18 after ‘‘appropriated’’ each place it ap19 pears; and 

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

21 preceding subparagraph (A), by inserting 

22 ‘‘pursuant to section 639(a)’’ after ‘‘appro23 priated’’; and 
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1 (B) in subsection (g)(1), by inserting ‘‘pur2 suant to section 639(a)’’ after ‘‘appropriated’’ 

3 each place it appears. 

4 Subtitle C—Expanding Access to 

5 Quality, Affordable Child Care 

6 SEC. 121. AUTHORIZATION OF APPROPRIATIONS. 

7 Section 658B of the Child Care and Development 

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

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

10 (2) by striking ‘‘subchapter’’ and all that fol11 lows and inserting ‘‘subchapter $3,100,000,000 for 

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

13 2007, $5,100,000,000 for fiscal year 2008, 

14 $6,100,000,000 for fiscal year 2009, and 

15 $7,100,000,000 for fiscal year 2010.’’. 

16 Subtitle D—Strengthening the 

17 Quality of Child Care 

18 SEC. 131. STATE PLAN REQUIREMENTS RELATING TO 

19 TRAINING. 

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

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

22 by adding at the end the following: 

23 ‘‘(6) TRAINING IN EARLY LEARNING AND

24 CHILDHOOD DEVELOPMENT.—The State plan shall 

25 describe any training requirements that are in effect 
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1 within the State that are designed to enable child 

2 care providers to promote the social, emotional, 

3 physical, and cognitive development of children and 

4 that are applicable to child care providers that pro5 vide services for which assistance is made available 

6 under this subchapter in the State.’’. 

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

8 Section 658G of the Child Care and Development 

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

10 to read as follows: 

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

12 CHILD CARE. 

13 ‘‘(a) IN GENERAL.— 

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

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

16 year shall reserve and use not less than 6 percent 

17 of the funds for activities provided directly, or 

18 through grants or contracts with resource and refer19 ral organizations or other appropriate entities, that 

20 are designed to improve the quality of child care 

21 services. 

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

23 paragraph (1) may only be used to— 

24 ‘‘(A) develop and implement voluntary 

25 guidelines on pre-reading and language skills 
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1 and activities, for child care programs in the 

2 State, that are aligned with State standards for 

3 kindergarten through grade 12 or the State’s 

4 general goals for school preparedness; 

5 ‘‘(B) support activities and provide tech6 nical assistance in child care settings to en7 hance early learning for young children, to pro8 mote literacy, and to foster school prepared9 ness; 

10 ‘‘(C) offer training, professional develop11 ment, and educational opportunities for child 

12 care providers that relate to the use of develop13 mentally appropriate and age-appropriate cur14 ricula, and early childhood teaching strategies, 

15 that are scientifically based and aligned with 

16 the social, emotional, physical, and cognitive de17 velopment of children, including— 

18 ‘‘(i) developing and operating distance 

19 learning child care training infrastructures; 

20 ‘‘(ii) developing model technology21 based training courses; 

22 ‘‘(iii) offering training for caregivers 

23 in informal child care settings; and 
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1 ‘‘(iv) offering training for child care 

2 providers who care for infants and toddlers 

3 and children with special needs; 

4 ‘‘(D) engage in programs designed to in5 crease the retention and improve the com6 petencies of child care providers, including wage 

7 incentive programs and initiatives that establish 

8 tiered payment rates for providers that meet or 

9 exceed child care services guidelines, as defined 

10 by the State; 

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

12 effectiveness of child care programs and serv13 ices offered in the State to young children on 

14 improving overall school preparedness; and 

15 ‘‘(F) carry out other activities determined 

16 by the State to improve the quality of child care 

17 services provided in the State and for which 

18 measurement of outcomes relating to improved 

19 child safety, child well-being, or school pre20 paredness is possible. 

21 ‘‘(b) CERTIFICATION.—For each fiscal year begin22 ning after September 30, 2005, the State shall annually 

23 submit to the Secretary a certification in which the State 

24 certifies and demonstrates that the State was in compli25 ance with subsection (a) during the preceding fiscal year 
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1 and describes how the State used funds made available 

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

3 during that preceding fiscal year.’’. 

4 TITLE II—PROVIDING SAFE, RE5 LIABLE TRANSPORTATION 

6 FOR RURAL SCHOOL CHIL7 DREN 

8 SEC. 201. FINDINGS AND PURPOSE. 

9 (a) FINDINGS.—Congress finds that— 

10 (1) school transportation issues have concerned 

11 parents, local educational agencies, lawmakers, the 

12 National Highway Traffic Safety Administration, 

13 the National Transportation Safety Board, and the 

14 Environmental Protection Agency for years; 

15 (2) millions of children face potential future 

16 health problems because of exposure to noxious 

17 fumes emitted from older school buses; 

18 (3) the Environmental Protection Agency estab19 lished the Clean School Bus USA program to re20 place 129,000 of the oldest diesel buses that cannot 

21 be retrofitted in an effort to help children and the 

22 environment by improving air quality; 

23 (4) unfortunately, many rural local educational 

24 agencies are unable to participate in that program 
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1 because of the specialized fuels needed to sustain a 

2 clean bus fleet; 

3 (5) many rural local educational agencies are 

4 operating outdated, unsafe school buses that are 

5 failing inspections because of automotive flaws, re6 sulting in the depletion of the school bus fleets of 

7 the local educational agencies; and 

8 (6) many rural local educational agencies are 

9 unable to afford to buy newer, safer buses. 

10 (b) PURPOSE.—The purpose of this title is to estab11 lish within the Department of Education a Federal cost12 sharing program to assist rural local educational agencies 

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

14 safer school buses. 

15 SEC. 202. DEFINITIONS. 

16 In this title: 

17 (1) RURAL LOCAL EDUCATIONAL AGENCY.— 

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

19 local educational agency, as defined in section 9101 

20 of the Elementary and Secondary Education Act of 

21 1965 (20 U.S.C. 7801), with respect to which— 

22 (A) each county in which a school served 

23 by the local educational agency is located has a 

24 total population density of fewer than 10 per25 sons per square mile; 
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1 (B) all schools served by the local edu2 cational agency are designated with a school lo3 cale code of 7 or 8, as determined by the Sec4 retary; or 

5 (C) all schools served by the local edu6 cational agency have been designated, by official 

7 action taken by the legislature of the State in 

8 which the local educational agency is located, as 

9 rural schools for purposes relating to the provi10 sion of educational services to students in the 

11 State. 

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

13 the Secretary of Education. 

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

15 means a vehicle the primary purpose of which is to 

16 transport students to and from school or school ac17 tivities. 

18 SEC. 203. GRANT PROGRAM. 

19 (a) IN GENERAL.—From amounts appropriated 

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

21 provide grants, on a competitive basis, to rural local edu22 cational agencies to pay the Federal share of the cost of 

23 purchasing new school buses. 

24 (b) APPLICATION.— 
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1 (1) IN GENERAL.—Each rural local educational 

2 agency that seeks to receive a grant under this title 

3 shall submit to the Secretary for approval an appli4 cation at such time, in such manner, and accom5 panied by such information (in addition to informa6 tion required under paragraph (2)) as the Secretary 

7 may require. 

8 (2) CONTENTS.—Each application submitted 

9 under paragraph (1) shall include— 

10 (A) documentation that, of the total num11 ber of school buses operated by the rural local 

12 educational agency, not less than 50 percent of 

13 the school buses are in need of repair or re14 placement; 

15 (B) documentation of the number of miles 

16 that each school bus operated by the rural local 

17 educational agency traveled in the most recent 

18 9-month academic year; 

19 (C) documentation that the rural local edu20 cational agency is operating with a reduced 

21 fleet of school buses; 

22 (D) a certification from the rural local 

23 educational agency that— 
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1 (i) authorizes the application of the 

2 rural local educational agency for a grant 

3 under this title; and 

4 (ii) describes the dedication of the 

5 rural local educational agency to school 

6 bus replacement programs and school 

7 transportation needs (including the num8 ber of new school buses needed by the 

9 rural local educational agency); and 

10 (E) an assurance that the rural local edu11 cational agency will pay the non-Federal share 

12 of the cost of the purchase of new school buses 

13 under this title from non-Federal sources. 

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

15 the Secretary shall give priority to rural local educational 

16 agencies that, as determined by the Secretary— 

17 (1) are transporting students in a bus manufac18 tured before 1977; 

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

20 or 

21 (3) serve a school that is required, under sec22 tion 1116(b)(9) of the Elementary and Secondary 

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

24 provide transportation to students to enable the stu-
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1 dents to transfer to another public school served by 

2 the rural local educational agency. 

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

4 grant funds awarded under subsection (a) shall be in com5 pliance with proposed air quality regulations and stand6 ards of the Environmental Protection Agency for 2006. 

7 (e) PAYMENTS; FEDERAL SHARE.— 

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

9 each rural local educational agency having an appli10 cation approved under this section the Federal share 

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

12 such number of new school buses as is specified in 

13 the approved application. 

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

15 the cost of purchasing a new school bus under this 

16 title shall be 75 percent. 

17 SEC. 204. AUTHORIZATION OF APPROPRIATIONS. 

18 There are authorized to be appropriated to carry out 

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

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

21 2010. 
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1 TITLE III—SENSE OF THE SEN2 ATE REGARDING FULLY 

3 FUNDING THE INDIVIDUALS 

4 WITH DISABILITIES EDU5 CATION ACT BY 2011 

6 SEC. 301. FINDINGS. 

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

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

9 experience and in no way diminishes the right of in10 dividuals to participate in or contribute to society. 

11 Improving educational results for children with dis12 abilities is an essential element of our national policy 

13 of ensuring equality of opportunity, full participa14 tion, independent living, and economic self-suffi15 ciency for individuals with disabilities. 

16 (2) Before the date of enactment of the Edu17 cation for All Handicapped Children Act of 1975 

18 (Public Law 94–142), the predecessor to the Indi19 viduals with Disabilities Education Act (20 U.S.C. 

20 1400 et seq.), the educational needs of millions of 

21 children with disabilities were not being fully met be22 cause— 

23 (A) the children did not receive appro24 priate educational services; 
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1 (B) the children were excluded entirely 

2 from the public school system and from being 

3 educated with their peers; 

4 (C) undiagnosed disabilities prevented the 

5 children from having a successful educational 

6 experience; or 

7 (D) a lack of adequate resources within the 

8 public school system forced such families to find 

9 services outside the public school system. 

10 (3) The Individuals with Disabilities Education 

11 Act has been successful in ensuring children with 

12 disabilities and the families of such children access 

13 to a free appropriate public education and in im14 proving educational results for children with disabil15 ities. 

16 (4) The implementation of the Individuals with 

17 Disabilities Education Act has been impeded by the 

18 Federal Government’s failure to honor the commit19 ment it made 30 years ago to provide States with 

20 40 percent of the excess costs of special education. 

21 (5) While States, local educational agencies, 

22 and educational service agencies are primarily re23 sponsible for providing an education for all children 

24 with disabilities, it is in the national interest that 

25 the Federal Government have a supporting role in 
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1 assisting State and local efforts to educate children 

2 with disabilities in order to improve results for such 

3 children and to ensure equal protection of the law. 

4 (6) Congress passed authorizing language to 

5 fully fund the Individuals with Disabilities Edu6 cation Act and should appropriate such sums as au7 thorized. 

8 (7) A more equitable allocation of resources is 

9 essential for the Federal Government to meet its re10 sponsibility to provide an equal educational oppor11 tunity for all individuals. 

12 SEC. 302. SENSE OF THE SENATE REGARDING AUTHORIZA13 TION OF APPROPRIATIONS. 

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

15 carrying out the Federal Government’s commitment to 

16 children, parents, and the States, there should be author17 ized to be appropriated— 

18 (1) $14,648,647,143 or the maximum amount 

19 available for awarding grants under section 

20 611(a)(2) of the Individuals with Disabilities Edu21 cation Act, whichever is lower, for fiscal year 2006, 

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

23 for fiscal year 2006, which should become available 

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

25 available through September 30, 2007, except that if 
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1 the maximum amount available for awarding grants 

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

3 $14,648,647,143, then the amount should be re4 duced by the difference between $14,648,647,143 

5 and the maximum amount available for awarding 

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

7 (2) $16,938,917,714 or the maximum amount 

8 available for awarding grants under section 

9 611(a)(2) of the Individuals with Disabilities Edu10 cation Act, whichever is lower, for fiscal year 2007, 

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

12 for fiscal year 2007, which should become available 

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

14 available through September 30, 2008, except that if 

15 the maximum amount available for awarding grants 

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

17 $16,938,917,714, then the amount should be re18 duced by the difference between $16,938,917,714 

19 and the maximum amount available for awarding 

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

21 (3) $19,229,188,286 or the maximum amount 

22 available for awarding grants under section 

23 611(a)(2) of the Individuals with Disabilities Edu24 cation Act, whichever is lower, for fiscal year 2008, 

25 and there should be appropriated $8,639,442,462 
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1 for fiscal year 2008, which should become available 

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

3 available through September 30, 2009, except that if 

4 the maximum amount available for awarding grants 

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

6 $19,229,188,286, then the amount should be re7 duced by the difference between $19,229,188,286 

8 and the maximum amount available for awarding 

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

10 (4) $21,519,458,857 or the maximum amount 

11 available for awarding grants under section 

12 611(a)(2) of the Individuals with Disabilities Edu13 cation Act, whichever is lower, for fiscal year 2009, 

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

15 for fiscal year 2009, which should become available 

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

17 available through September 30, 2010, except that if 

18 the maximum amount available for awarding grants 

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

20 $21,519,458,857, then the amount should be re21 duced by the difference between $21,519,458,857 

22 and the maximum amount available for awarding 

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

24 (5) $23,809,729,429 or the maximum amount 

25 available for awarding grants under section 
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1 611(a)(2) of the Individuals with Disabilities Edu2 cation Act, whichever is lower, for fiscal year 2010, 

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

4 for fiscal year 2010, which should become available 

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

6 available through September 30, 2011, except that if 

7 the maximum amount available for awarding grants 

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

9 $23,809,729,429, then the amount should be re10 duced by the difference between $23,809,729,429 

11 and the maximum amount available for awarding 

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

13 (6) $26,100,000,000 or the maximum amount 

14 available for awarding grants under section 

15 611(a)(2) of the Individuals with Disabilities Edu16 cation Act, whichever is lower, for fiscal year 2011, 

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

18 for fiscal year 2011, which should become available 

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

20 available through September 30, 2012, except that if 

21 the maximum amount available for awarding grants 

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

23 $26,100,000,000, then the amount should be re24 duced by the difference between $26,100,000,000 
34 

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1 and the maximum amount available for awarding 

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

3 (7) the maximum amount available for award4 ing grants under section 611(a)(2) of the Individuals 

5 with Disabilities Education Act for fiscal year 2012 

6 and each succeeding fiscal year, and there should be 

7 appropriated for each such year an amount equal to 

8 the maximum amount available for awarding grants 

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

10 year for which the determination is made minus 

11 $10,589,745,824, which should become available for 

12 obligation on July 1 of the fiscal year for which the 

13 determination is made and should remain available 

14 through September 30 of the succeeding fiscal year. 

15 TITLE IV—IMPROVEMENT OF EL16 EMENTARY AND SECONDARY 

17 EDUCATION 

18 Subtitle A—Public School Choice, 

19 Supplemental Educational Serv20 ices, and Teacher Quality 

21 SEC. 401. PUBLIC SCHOOL CHOICE CAPACITY. 

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

23 the Elementary and Secondary Education Act of 1965 (20 

24 U.S.C. 6316(b)(1)(E)) is amended— 
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1 (1) in clause (i), by striking ‘‘In the case’’ and 

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

3 case’’; 

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

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

6 ‘‘(ii) SCHOOL CAPACITY.—The obliga7 tion of a local educational agency to pro8 vide the option to transfer to students 

9 under clause (i) is subject to all applicable 

10 State and local health and safety code re11 quirements regarding facility capacity.’’; 

12 and 

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

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

15 ‘‘public school,’’. 

16 (b) GRANTS FOR SCHOOL CONSTRUCTION AND REN17 OVATION.— 

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

19 I of the Elementary and Secondary Education Act 

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

21 adding at the end the following: 

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

23 RENOVATION. 

24 ‘‘(a) PROGRAM AUTHORIZED.—From funds appro25 priated under subsection (g), the Secretary is authorized 
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1 to award grants to local educational agencies experiencing 

2 overcrowding in the schools served by the local educational 

3 agencies, for the construction and renovation of safe, 

4 healthy, high-performance school buildings. 

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

6 desiring a grant under this section shall submit an appli7 cation to the Secretary at such time, in such manner, and 

8 accompanied by such additional information as the Sec9 retary may require. 

10 ‘‘(c) PRIORITY.—In awarding grants under this sec11 tion, the Secretary shall give priority to local educational 

12 agencies— 

13 ‘‘(1) who have documented difficulties in meet14 ing the public school choice requirements of para15 graph (1)(E), (5)(A), (7)(C)(i), or (8)(A)(i) of sec16 tion 1116(b), or section 1116(c)(10)(C)(vii); and 

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

18 above capacity. 

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

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

21 award grants to local educational agencies that are experi22 encing overcrowding in the schools served by the local edu23 cational agencies. 

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

25 employed by any contractor or subcontractor in the per-
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1 formance of work on any construction funded by a grant 

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

3 less than those prevailing on similar construction in the 

4 locality as determined by the Secretary of Labor under 

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

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

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

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

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

10 school in which 1 additional student would increase 

11 the average class size of the school above the aver12 age class size of all schools in the State in which the 

13 school is located. 

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

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

16 school building’ has the meaning given such term in 

17 section 5586. 

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

19 are authorized to be appropriated to carry out this section 

20 $250,000,000 for fiscal year 2006, and such sums as may 

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

22 (2) TABLE OF CONTENTS.—The table of con23 tents of the Elementary and Secondary Education 

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

2 following: 

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

3 SEC. 402. SUPPLEMENTAL EDUCATIONAL SERVICES. 

4 Section 1116(e) of the Elementary and Secondary 

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

6 (1) in paragraph (4)— 

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

8 semicolon and inserting ‘‘, including criteria 

9 that— 

10 ‘‘(i) ensure that personnel delivering 

11 supplemental educational services to stu12 dents have adequate qualifications; and 

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

14 ensure that personnel delivering supple15 mental educational services to students are 

16 teachers that are highly qualified, as such 

17 term is defined in section 9101;’’; 

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

19 ‘‘and’’ after the semicolon; 

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

21 period and inserting ‘‘; and’’; and 

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

23 ‘‘(F) ensure that the list of approved pro24 viders of supplemental educational services de25 scribed in subparagraph (C) includes a choice 
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1 of providers that have sufficient capacity to pro2 vide effective services for children who are lim3 ited English proficient and children with dis4 abilities.’’; 

5 (2) in paragraph (5)(C)— 

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

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

8 acknowledge in writing that, as an approved 

9 provider in the relevant State educational agen10 cy program of providing supplemental edu11 cational services, the provider is deemed to be 

12 a recipient of Federal financial assistance’’; 

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

14 (9), (10), (11), and (12) as paragraphs (7), (8), (9), 

15 (10), (11), (12), and (13), respectively; 

16 (4) by inserting after paragraph (5) the fol17 lowing: 

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

19 this section shall be construed to prohibit a local 

20 educational agency from being considered by a State 

21 educational agency as a potential provider of supple22 mental educational services under this subsection, if 

23 such local educational agency meets the criteria 

24 adopted by the State educational agency in accord25 ance with paragraph (5).’’; 
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1 (5) in paragraph (13) (as redesignated by para2 graph (3))— 

3 (A) in subparagraph (B)— 

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

5 after the semicolon; 

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

7 after the semicolon; and 

8 (iii) by adding at the end the fol9 lowing: 

10 ‘‘(iv) may employ teachers who are 

11 highly qualified, as such term is defined in 

12 section 9101; and 

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

14 relevant State educational agency’s list de15 scribed in paragraph (4)(C), is deemed to 

16 be a recipient of Federal financial assist17 ance; and’’; and 

18 (B) in subparagraph (C)— 

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

20 by striking ‘‘are’’; 

21 (ii) in clause (i)— 

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

23 addition’’; and 

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

25 semicolon; 
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1 (iii) in clause (ii), by striking the pe2 riod and inserting ‘‘; and’’; and 

3 (iv) by adding at the end the fol4 lowing: 

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

6 included on the relevant State educational 

7 agency’s list described in paragraph 

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

9 activities of the relevant State educational 

10 agency.’’; and 

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

12 ‘‘(14) CIVIL RIGHTS.—In providing supple13 mental educational services under this subsection, no 

14 State educational agency or local educational agency 

15 may, directly or through contractual, licensing, or 

16 other arrangements with a provider of supplemental 

17 educational services, engage in any form of discrimi18 nation prohibited by— 

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

20 1964; 

21 ‘‘(B) title IX of the Education Amend22 ments of 1972; 

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

24 of 1973; 
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1 ‘‘(D) titles II and III of the Americans 

2 with Disabilities Act; 

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

4 ‘‘(F) regulations promulgated under the 

5 authority of the laws listed in subparagraphs 

6 (A) through (E); or 

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

8 SEC. 403. QUALIFICATIONS FOR TEACHERS AND PARA9 PROFESSIONALS. 

10 (a) HIGH OBJECTIVE UNIFORM STATE STANDARD

11 OF EVALUATION.—Section 1119 of the Elementary and 

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

13 amended— 

14 (1) in subsection (a)(2)— 

15 (A) by redesignating subparagraphs (A) 

16 through (C) as clauses (i) through (iii), respec17 tively, and indenting as appropriate; 

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

19 part’’ and inserting the following: 

20 ‘‘(2) STATE PLAN.— 

21 ‘‘(A) IN GENERAL.—As part’’; and 

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

23 ‘‘(B) AVAILABILITY OF STATE STAND24 ARDS.—Each State educational agency shall 

25 make available to teachers in the State the high 
43 

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1 objective uniform State standard of evaluation, 

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

3 purpose of meeting the teacher qualification re4 quirements established under this section.’’; 

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

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

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

8 (3) by inserting after subsection (d) the fol9 lowing: 

10 ‘‘(e) STATE RESPONSIBILITIES.—Each State edu11 cational agency shall ensure that local educational agen12 cies in the State make available all options described in 

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

14 each new or existing paraprofessional for the purpose of 

15 demonstrating the qualifications of the paraprofessional, 

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

17 (4) in subsection (l) (as redesignated by para18 graph (2)), by striking ‘‘subsection (l)’’ and insert19 ing ‘‘subsection (m)’’. 

20 (b) DEFINITION OF HIGHLY QUALIFIED TEACH21 ERS.—Section 9101(23)(B)(ii) is amended— 

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

23 semicolon; 

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

25 the semicolon; and 
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1 (3) by adding at the end the following: 

2 ‘‘(III) in the case of a middle 

3 school teacher, passing a State-ap4 proved middle school generalist exam 

5 when the teacher receives a license to 

6 teach middle school in the State; 

7 ‘‘(IV) obtaining a State middle 

8 school or secondary school social stud9 ies certificate that qualifies the teach10 er to teach history, geography, eco11 nomics, civics, and government in 

12 middle schools or in secondary 

13 schools, respectively, in the State; or 

14 ‘‘(V) obtaining a State middle 

15 school or secondary school science cer16 tificate that qualifies the teacher to 

17 teach earth science, biology, chem18 istry, and physics in middle schools or 

19 secondary schools, respectively, in the 

20 State; and’’. 

21 (c) ENSURING HIGHLY QUALIFIED TEACHERS.— 

22 (1) REQUIREMENT.—The Secretary of Edu23 cation shall improve coordination among the teacher 

24 quality programs authorized under the Elementary 

25 and Secondary Education Act of 1965 (20 U.S.C. 
45 

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1 6301 et seq.), the Individuals with Disabilities Edu2 cation Act (20 U.S.C. 1400 et seq.), the Higher 

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

4 and the Carl D. Perkins Vocational and Technical 

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

6 provide a unified effort in strengthening the Amer7 ican teaching workforce and ensuring highly quali8 fied teachers. 

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

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

11 Education shall submit a report to the relevant com12 mittees of Congress, that shall be made available on 

13 the website of the Department of Education, on ef14 forts to coordinate programs pursuant to paragraph 

15 (1). 

16 Subtitle B—Adequate Yearly 

17 Progress Determinations 

18 SEC. 421. REVIEW OF ADEQUATE YEARLY PROGRESS DE19 TERMINATIONS FOR SCHOOLS FOR THE 2002–

20 2003 SCHOOL YEAR. 

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

22 local educational agency to provide each school served by 

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

24 determination by the agency that the school did not make 

25 adequate yearly progress for the 2002–2003 school year. 
46 

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

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

3 this section, a local educational agency shall issue and 

4 make publicly available a final determination on whether 

5 the school made adequate yearly progress for the 2002– 

6 2003 school year. 

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

8 section, a local educational agency shall— 

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

10 submit evidence on whether the school made ade11 quate yearly progress for the 2002–2003 school 

12 year; and 

13 (2) consider that evidence before making a final 

14 determination under subsection (b). 

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

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

17 consistent with the applicable State plan under section 

18 1111 of the Elementary and Secondary Education Act of 

19 1965 (20 U.S.C. 6311), the local educational agency’s 

20 original determination that a school did not make ade21 quate yearly progress for the 2002–2003 school year if 

22 the agency finds that the school made such progress, tak23 ing into consideration— 

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

25 34, Code of Federal Regulations (68 Fed. Reg. 
47 

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1 68698) (relating to accountability for the academic 

2 achievement of students with the most significant 

3 cognitive disabilities); or 

4 (2) any regulation or guidance that, subsequent 

5 to the date of such original determination, was 

6 issued by the Secretary relating to— 

7 (A) the assessment of limited English pro8 ficient children; 

9 (B) the inclusion of limited English pro10 ficient children as part of the subgroup de11 scribed in section 1111(b)(2)(C)(v)(II)(dd) of 

12 the Elementary and Secondary Education Act 

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

14 after such children have obtained English pro15 ficiency; or 

16 (C) any requirement under section 

17 1111(b)(2)(I)(ii) of the Elementary and Sec18 ondary Education Act of 1965 (20 U.S.C. 

19 6311(b)(2)(I)(ii)). 

20 (e) EFFECT OF REVISED DETERMINATION.— 

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

22 under this section a local educational agency deter23 mines that a school made adequate yearly progress 

24 for the 2002–2003 school year, upon such deter25 mination— 
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1 (A) any action by the Secretary, the State 

2 educational agency, or the local educational 

3 agency that was taken because of a prior deter4 mination that the school did not make such 

5 progress shall be terminated; and 

6 (B) any obligations or actions required of 

7 the local educational agency or the school be8 cause of the prior determination shall cease to 

9 be required. 

10 (2) EXCEPTIONS.—Notwithstanding paragraph 

11 (1), a determination under this section shall not af12 fect any obligation or action required of a local edu13 cational agency or school under the following: 

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

15 and Secondary Education Act of 1965 (20 

16 U.S.C. 6316(b)(13)) (requiring a local edu17 cational agency to continue to permit a child 

18 who transferred to another school under such 

19 section to remain in that school until comple20 tion of the highest grade in the school). 

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

22 and Secondary Education Act of 1965 (as re23 designated by section 402(3)) (20 U.S.C. 

24 6316(e)(9)) (requiring a local educational agen25 cy to continue to provide supplemental edu-
49 

•HR 1681 IH 

1 cational services under such section until the 

2 end of the school year). 

3 (3) SUBSEQUENT DETERMINATIONS.—In deter4 mining whether a school is subject to school im5 provement, corrective action, or restructuring as a 

6 result of not making adequate yearly progress, the 

7 Secretary, a State educational agency, or a local 

8 educational agency may not take into account a de9 termination that the school did not make adequate 

10 yearly progress for the 2002–2003 school year if 

11 such determination was revised under this section 

12 and the school received a final determination of hav13 ing made adequate yearly progress for the 2002– 

14 2003 school year. 

15 (f) NOTIFICATION.—The Secretary— 

16 (1) shall require each State educational agency 

17 to notify each school served by the agency of the 

18 school’s ability to request a review under this sec19 tion; and 

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

21 enactment of this section, shall notify the public by 

22 means of the Department of Education’s website of 

23 the review process established under this section. 
50 

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1 SEC. 422. REVIEW OF ADEQUATE YEARLY PROGRESS DE2 TERMINATIONS FOR LOCAL EDUCATIONAL 

3 AGENCIES FOR THE 2002–2003 SCHOOL YEAR. 

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

5 State educational agency to provide each local educational 

6 agency in the State with an opportunity to request a re7 view of a determination by the State educational agency 

8 that the local educational agency did not make adequate 

9 yearly progress for the 2002–2003 school year. 

10 (b) APPLICATION OF CERTAIN PROVISIONS.—Except 

11 as inconsistent with, or inapplicable to, this section, the 

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

13 educational agency of a determination described in sub14 section (a) in the same manner and to the same extent 

15 as such provisions apply to review by a local educational 

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

17 SEC. 423. DEFINITIONS. 

18 In this subtitle: 

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

20 the meaning given to that term in section 

21 1111(b)(2)(C) of the Elementary and Secondary 

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

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

24 a local educational agency (as that term is defined 

25 in section 9101 of the Elementary and Secondary 

26 Education Act of 1965 (20 U.S.C. 7801)) receiving 
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1 funds under part A of title I of such Act (20 U.S.C. 

2 6311 et seq.). 

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

4 of Education. 

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

6 school or a secondary school (as those terms are de7 fined in section 9101 of the Elementary and Sec8 ondary Education Act of 1965 (20 U.S.C. 7801)) 

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

10 6311 et seq.). 

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

12 a State educational agency (as that term is defined 

13 in section 9101 of the Elementary and Secondary 

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

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

16 6311 et seq.). 

17 Subtitle C—Technical Assistance 

18 SEC. 451. TECHNICAL ASSISTANCE. 

19 (a) IN GENERAL.—Part F of title IX of the Elemen20 tary and Secondary Education Act of 1965 (20 U.S.C. 

21 7941) is amended— 

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

23 TECHNICAL ASSISTANCE’’ after ‘‘EVAL24 UATIONS’’; and 

25 (2) by adding at the end the following: 
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1 ‘‘SEC. 9602. TECHNICAL ASSISTANCE. 

2 ‘‘The Secretary shall ensure that the technical assist3 ance provided by, and the research developed and dissemi4 nated through, the Institute of Education Sciences and 

5 other offices or agencies of the Department provide edu6 cators and parents with the needed information and sup7 port for identifying and using educational strategies, pro8 grams, and practices, including strategies, programs, and 

9 practices available through the clearinghouses supported 

10 under the Education Sciences Reform Act of 2002 (20 

11 U.S.C. 9501 et seq.) and other federally supported clear12 inghouses, that have been successful in improving edu13 cational opportunities and achievement for all students.’’. 

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

15 the Elementary and Secondary Education Act of 1965 (20 

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

17 relating to section 9601 the following: 

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

18 TITLE V—IMPROVING ASSESS19 MENT AND ACCOUNTABILITY 

20 SEC. 501. GRANTS FOR INCREASING DATA CAPACITY FOR 

21 PURPOSES OF ASSESSMENT AND ACCOUNT22 ABILITY. 

23 (a) PROGRAM AUTHORIZED.—From funds appro24 priated for a fiscal year, the Secretary may award grants, 

25 on a competitive basis, to State educational agencies— 
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1 (1) to enable the State educational agencies to 

2 develop or increase the capacity of data systems for 

3 assessment and accountability purposes, including 

4 the collection of graduation rates; and 

5 (2) to award subgrants to increase the capacity 

6 of local educational agencies to upgrade, create, or 

7 manage longitudinal data systems for the purpose of 

8 measuring student academic progress and achieve9 ment. 

10 (b) STATE APPLICATION.—Each State educational 

11 agency desiring a grant under this section shall submit 

12 an application to the Secretary at such time, in such man13 ner, and containing such information as the Secretary may 

14 require. 

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

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

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

18 funds for the purpose of— 

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

20 State databases to collect, disaggregate, and re21 port information related to student achieve22 ment, enrollment, and graduation rates for as23 sessment and accountability purposes; and 
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1 (B) reporting, on an annual basis, for the 

2 elementary schools and secondary schools with3 in the State, on— 

4 (i) the enrollment data from the be5 ginning of the academic year; 

6 (ii) the enrollment data from the end 

7 of the academic year; and 

8 (iii) the twelfth grade graduation 

9 rates; and 

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

11 to award subgrants to local educational agencies 

12 within the State to enable the local educational 

13 agencies to carry out the authorized activities de14 scribed in subsection (e). 

15 (d) LOCAL APPLICATION.—Each local educational 

16 agency desiring a subgrant under this section shall submit 

17 an application to the State educational agency at such 

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

19 the State educational agency may require. Each such ap20 plication shall include, at a minimum, a demonstration of 

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

22 data system in place. 

23 (e) LOCAL AUTHORIZED ACTIVITIES.—Each local 

24 educational agency that receives a subgrant under this 

25 section shall use the subgrant funds to increase the capac-
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1 ity of the local educational agency to upgrade or manage 

2 longitudinal data systems consistent with the uses in sub3 section (c)(1), by— 

4 (1) purchasing database software or hardware; 

5 (2) hiring additional staff for the purpose of 

6 managing such data; 

7 (3) providing professional development or addi8 tional training for such staff; and 

9 (4) providing professional development or train10 ing for principals and teachers on how to effectively 

11 use such data to implement instructional strategies 

12 to improve student achievement and graduation 

13 rates. 

14 (f) DEFINITIONS.—In this section: 

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

16 rate’’ means the percentage that— 

17 (A) the total number of students who— 

18 (i) graduate from a secondary school 

19 with a regular diploma (which shall not in20 clude the recognized equivalent of a sec21 ondary school diploma or an alternative de22 gree) in an academic year; and 

23 (ii) graduated on time by progressing 

24 1 grade per academic year; represents of 
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1 (B) the total number of students who en2 tered the secondary school in the entry level 

3 academic year applicable to the graduating stu4 dents. 

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

6 the Secretary of Education. 

7 (3) STATE EDUCATIONAL AGENCY AND LOCAL

8 EDUCATIONAL AGENCY.—The terms ‘‘State edu9 cational agency’’ and ‘‘local educational agency’’ 

10 have the meanings given such terms in section 9101 

11 of the Elementary and Secondary Education Act of 

12 1965 (20 U.S.C. 7801). 

13 (g) AUTHORIZATION OF APPROPRIATIONS.—There 

14 are authorized to be appropriated to carry out this section 

15 $100,000,000 for fiscal year 2006, and such sums as may 

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

17 SEC. 502. GRANTS FOR ASSESSMENT OF CHILDREN WITH 

18 DISABILITIES AND CHILDREN WHO ARE LIM19 ITED ENGLISH PROFICIENT. 

20 (a) GRANTS FOR ASSESSMENT OF CHILDREN WITH

21 DISABILITIES AND CHILDREN WHO ARE LIMITED

22 ENGLISH PROFICIENT.—Part E of title I of the Elemen23 tary and Secondary Education Act of 1965 (20 U.S.C. 

24 6491 et seq.) is amended by adding at the end the fol25 lowing: 
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1 ‘‘SEC. 1505. GRANTS FOR ASSESSMENT OF CHILDREN WITH 

2 DISABILITIES AND CHILDREN WHO ARE LIM3 ITED ENGLISH PROFICIENT. 

4 ‘‘(a) GRANTS AUTHORIZED.—From amounts author5 ized to be appropriated under subsection (e) for a fiscal 

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

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

8 State educational agencies, to enable the State educational 

9 agencies or consortia to collaborate with institutions of 

10 higher education, research institutions, or other organiza11 tions— 

12 ‘‘(1) to design and improve State academic as13 sessments for students who are limited English pro14 ficient and students with disabilities; and 

15 ‘‘(2) to ensure the most accurate, valid, and re16 liable means to assess academic content standards 

17 and student academic achievement standards for 

18 students who are limited English proficient and stu19 dents with disabilities. 

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

21 agency or consortium that receives a grant under this sec22 tion shall use the grant funds to carry out 1 or more of 

23 the following activities: 

24 ‘‘(1) Developing alternate assessments for stu25 dents with disabilities, consistent with section 1111 

26 and the amendments made on December 9, 2003, to 
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1 part 200 of title 34, Code of Federal Regulations 

2 (68 Fed. Reg. 68698) (relating to accountability for 

3 the academic achievement of students with the most 

4 significant cognitive disabilities), including— 

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

6 appropriate and consistent with such amend7 ments, with— 

8 ‘‘(i) State student academic achieve9 ment standards and State academic con10 tent standards for all students; or 

11 ‘‘(ii) alternate State student academic 

12 achievement standards that reflect the in13 tended instructional construct for students 

14 with disabilities; 

15 ‘‘(B) activities to ensure that such assess16 ments do not reflect the disabilities, or associ17 ated characteristics, of the students that are ex18 traneous to the intent of the measurement; 

19 ‘‘(C) the development of an implementation 

20 plan for pilot tests for such assessments, in 

21 order to determine the level of appropriateness 

22 and feasibility of full-scale administration; and 

23 ‘‘(D) activities that provide for the reten24 tion of all feasible standardized features in the 

25 alternate assessments. 
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1 ‘‘(2) Developing alternate assessments that 

2 meet the requirements of section 1111 for students 

3 who are limited English proficient, including— 

4 ‘‘(A) the alignment of such assessments 

5 with State student academic achievement stand6 ards and State academic content standards for 

7 all students; 

8 ‘‘(B) the development of parallel native 

9 language assessments or linguistically modified 

10 assessments for limited English proficient stu11 dents that meet the requirements of section 

12 1111(b)(3)(C)(ix)(III); 

13 ‘‘(C) the development of an implementation 

14 plan for pilot tests for such assessments, in 

15 order to determine the level of appropriateness 

16 and feasibility of full-scale administration; and 

17 ‘‘(D) activities that provide for the reten18 tion of all feasible standardized features in the 

19 alternate assessments. 

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

21 policies and criteria for appropriate accommodations 

22 to ensure the full participation of students who are 

23 limited English proficient and students with disabil24 ities in State academic assessments, including— 
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1 ‘‘(A) developing a plan to ensure that as2 sessments provided with accommodations are 

3 fully included and integrated into the account4 ability system, for the purpose of making the 

5 determinations of adequate yearly progress re6 quired under section 1116; 

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

8 appropriateness of such accommodations, such 

9 as— 

10 ‘‘(i) a modification to the presentation 

11 or format of the assessment; 

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

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

14 for testing; 

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

16 or procedures; 

17 ‘‘(v) the administration of portions of 

18 the test in a method appropriate for the 

19 level of language proficiency of the test 

20 taker; 

21 ‘‘(vi) the use of a glossary or dic22 tionary; and 

23 ‘‘(vii) the use of a linguistically modi24 fied assessment; 
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1 ‘‘(C) ensuring that State policies and cri2 teria for appropriate accommodations take into 

3 account the form or program of instruction pro4 vided to students, including the level of dif5 ficulty, reliability, cultural difference, and con6 tent equivalence of such form or program; 

7 ‘‘(D) ensuring that such policies are con8 sistent with the standards prepared by the 

9 Joint Committee on Standards for Educational 

10 and Psychological Testing of the American 

11 Educational Research Association, the Amer12 ican Psychological Association, and the Na13 tional Council on Measurement in Education; 

14 and 

15 ‘‘(E) developing a plan for providing train16 ing on the use of accommodations to school in17 structional staff, families, students, and other 

18 appropriate parties. 

19 ‘‘(4) Developing universally designed assess20 ments that can be accessible to all students, includ21 ing— 

22 ‘‘(A) examining test item or test perform23 ance for students with disabilities and students 

24 who are limited English proficient, to determine 
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1 the extent to which the test item or test is uni2 versally designed; 

3 ‘‘(B) using think aloud and cognitive lab4 oratory procedures, as well as item statistics, to 

5 identify test items that may pose particular 

6 problems for students with disabilities or stu7 dents who are limited English proficient; 

8 ‘‘(C) developing and implementing a plan 

9 to ensure that developers and reviewers of test 

10 items are trained in the principles of universal 

11 design; and 

12 ‘‘(D) developing computer-based applica13 tions of universal design principles. 

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

15 or consortium of State educational agencies, desiring to 

16 apply for a grant under this section shall submit an appli17 cation to the Secretary at such time, in such manner, and 

18 containing such information as the Secretary may require, 

19 including— 

20 ‘‘(1) information regarding the institutions of 

21 higher education, research institutions, or other or22 ganizations that are collaborating with the State 

23 educational agency or consortium, in accordance 

24 with subsection (a); 
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1 ‘‘(2) in the case of a consortium of State edu2 cational agencies, the designation of 1 State edu3 cational agency as the fiscal agent for the receipt of 

4 grant funds; 

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

6 which the State educational agency will identify stu7 dents that are unable to participate in general State 

8 content assessments and are eligible to take alter9 nate assessments, consistent with the amendments 

10 made to part 200 of title 34, Code of Federal Regu11 lations (68 Fed. Reg. 68698); 

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

13 or consortium carrying out the activity described in 

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

15 educational agency plans to fulfill the requirement of 

16 subsection (b)(1)(A); 

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

18 or consortium carrying out the activities described in 

19 paragraphs (1), (2), and (4) of subsection (b), infor20 mation regarding the proposed techniques for the 

21 development of alternate assessments, including a 

22 description of the technical adequacy of, technical 

23 aspects of, and scoring for such assessments; 

24 ‘‘(6) a plan for providing training for school in25 structional staff, families, students, and other appro-
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1 priate parties on the use of alternate assessments; 

2 and 

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

4 participating in alternate assessments will be re5 ported to the public and to parents. 

6 ‘‘(d) EVALUATION AND REPORTING REQUIRE7 MENTS.—Each State educational agency receiving a grant 

8 under this section shall submit an annual report to the 

9 Secretary describing the activities carried out under the 

10 grant and the result of such activities, including— 

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

12 supported under this section in helping students 

13 with disabilities, or students who are limited English 

14 proficient, better participate in State assessment 

15 programs; and 

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

17 if any, of students with disabilities and students who 

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

19 accurate assessment of such students. 

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

21 are authorized to be appropriated to carry out this section 

22 $50,000,000 for fiscal year 2006, and such sums as may 

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

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

25 the Elementary and Secondary Education Act of 1965 (20 
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1 U.S.C. 6301 note) is amended by inserting after the item 

2 relating to section 1504 the following: 

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

who are limited English proficient.’’. 

3 SEC. 503. REPORTS ON STUDENT ENROLLMENT AND GRAD4 UATION RATES. 

5 (a) STUDENT ENROLLMENT AND GRADUATION

6 RATES.—Part E of title I of the Elementary and Sec7 ondary Education Act of 1965 (as amended by section 

8 502) (20 U.S.C. 6491 et seq.) is amended by adding at 

9 the end the following: 

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

11 GRADUATION RATES. 

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

13 each State educational agency, local educational agency, 

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

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

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

17 recent school year. 

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

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

20 school year. 

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

22 school year. 
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1 ‘‘(4) The data described in paragraphs (1) 

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

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

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

5 the information collected under subsection (a) on an an6 nual basis.’’. 

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

8 the Elementary and Secondary Education Act of 1965 (as 

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

10 amended by inserting after the item relating to section 

11 1505 the following: 

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

12 SEC. 504. CIVIL RIGHTS. 

13 Section 9534 of the Elementary and Secondary Edu14 cation Act of 1965 (20 U.S.C. 7914) is amended— 

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

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

17 (2) by inserting before subsection (b) (as redes18 ignated by paragraph (1)) the following: 

19 ‘‘(a) PROHIBITION OF DISCRIMINATION.—Discrimi20 nation on the basis of race, color, religion, sex (except as 

21 otherwise permitted under title IX of the Education 

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

23 program funded under this Act is prohibited.’’. 
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1 TITLE VI—SENSE OF THE SEN2 ATE REGARDING FUNDING 

3 FOR ELEMENTARY AND SEC4 ONDARY EDUCATION 

5 SEC. 601. SENSE OF THE SENATE. 

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

7 (1) Congress enacted, with bipartisan support, 

8 and the President signed into law the No Child Left 

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

10 1425), that reauthorized the Elementary and Sec11 ondary Education Act of 1965 (20 U.S.C. 6301 et 

12 seq.). The new law required States to set high stand13 ards for learning and required schools to implement 

14 reforms to help improve student achievement. In re15 turn, Congress and the President pledged to make 

16 sure schools would have resources to carry out the 

17 reforms as called for in the new law. 

18 (2) $22,750,000,000 is needed to fund part A 

19 of title I of the Elementary and Secondary Edu20 cation Act of 1965 (20 U.S.C. 6311 et seq.) in fiscal 

21 year 2006, as promised pursuant to the No Child 

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

23 Stat. 1425). 

24 (3) $25,000,000,000 is needed to fund part A 

25 of title I of the Elementary and Secondary Edu-
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1 cation Act of 1965 (20 U.S.C. 6311 et seq.) in fiscal 

2 year 2007, as promised pursuant to the No Child 

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

4 Stat. 1425). 

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

6 Senate that— 

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

8 all students have access to a high-quality elementary 

9 and secondary education; and 

10 (2) part A of title I of the Elementary and Sec11 ondary Education Act of 1965 (20 U.S.C. 6311 et 

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

13 No Child Left Behind Act of 2001 (Public Law 

14 107–210; 115 Stat. 1425). 

15 TITLE VII—PROVIDING A ROAD16 MAP FOR FIRST GENERATION 

17 COLLEGE FOR STUDENTS 

18 SEC. 701. EXPANSION OF TRIO AND GEARUP. 

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

20 et seq.) is amended— 

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

22 ‘‘$700,000,000 for fiscal year 1999’’ and inserting 

23 ‘‘$1,000,000,000 for fiscal year 2006’’; and 

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

25 following: 
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1 ‘‘SEC. 404H. AUTHORIZATION OF APPROPRIATIONS. 

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

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

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

5 fiscal years.’’. 

6 TITLE VIII—COLLEGE TUITION 

7 RELIEF FOR STUDENTS AND 

8 THEIR FAMILIES THROUGH 

9 PELL GRANTS 

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

11 Notwithstanding any other provision of law, the an12 nual updates to the allowance for State and other taxes 

13 in the tables used in the Federal Need Analysis Method14 ology to determine a student’s expected family contribu15 tion for the award year 2005–2006 under part F of title 

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

17 1087kk et seq.), published in the Federal Register on 

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

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

20 reduce the amount of Federal student assistance for which 

21 the student is eligible. 

22 SEC. 802. SENSE OF THE SENATE REGARDING INCREASING 

23 THE MAXIMUM PELL GRANT. 

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

25 findings: 
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1 (1) Increasing the percentage of individuals who 

2 obtain a postsecondary education has become in3 creasingly important, not just to the individual bene4 ficiary, but to the Nation as a whole. The growth 

5 and continued expansion of the Nation’s economy is 

6 heavily dependent on an educated and highly skilled 

7 workforce. 

8 (2) The opportunity to gain a postsecondary 

9 education also is important to the Nation as a 

10 means to help advance the American ideals of 

11 progress and equality. 

12 (3) The Federal Government plays an invalu13 able role in making student financial aid available to 

14 ensure that qualified students are able to attend col15 lege, regardless of their financial means. Since the 

16 inception of the Pell Grant program in 1973, nearly 

17 80,000,000 grants have helped low- and middle-in18 come students go to college, enrich their lives, and 

19 become productive members of society. 

20 (4) Nationwide, almost 63 percent of secondary 

21 school graduates continue on to higher education im22 mediately after completing secondary school. This 

23 degree of college participation would not exist with24 out the Federal investment in student aid, especially 

25 the Pell Grant program. More than 4,000,000 low- 
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1 and middle-income students receive Pell Grants; 95 

2 percent of whom have a family income of not more 

3 than $40,000. 

4 (5) In the next 10 years, the number of under5 graduate students enrolled in the Nation’s colleges 

6 and universities will increase by 15 percent to more 

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

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

9 The continued investment in the Pell Grant program 

10 is essential if college is to remain an achievable part 

11 of the American dream. 

12 (6) Increasing the maximum Pell Grant to 

13 $5,100 would allow more than 430,000 additional 

14 students to benefit from the program. 

15 (7) Increasing the maximum Pell Grant to 

16 $5,100 would result in 200,000 new Pell Grant re17 cipients. 

18 (8) Pell Grant recipients are more likely to 

19 graduate with student loan debt and to amass more 

20 debt than other student borrowers. Increasing the 

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

22 disparity. 

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

24 Senate that— 
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1 (1) the maximum Pell Grant should be in2 creased to $5,100 during award year 2006–2007; 

3 and 

4 (2) the maximum Pell Grant amount set by 

5 Congress should be the amount eligible students re6 ceive. 

7 SEC. 803. ESTABLISHMENT OF A PELL DEMONSTRATION 

8 PROGRAM. 

9 (a) FINDINGS.—Congress finds that: 

10 (1) A student remains eligible to receive a Fed11 eral Pell Grant as long as the student is income-eli12 gible and has not received a bachelor’s degree. 

13 (2) By encouraging persistence and degree ac14 quisition in a timely manner, the Federal Govern15 ment, in effect, saves money— 

16 (A) by reducing the courses that do not 

17 lead to a degree; and 

18 (B) by helping students get the financial 

19 benefits of a college degree as soon as possible. 

20 (b) PELL DEMONSTRATION PROGRAM.— 

21 (1) AUTHORIZATION.—The Secretary of Edu22 cation shall establish a demonstration program to fa23 cilitate the ability of low-income students to com24 plete the students’ degree within 150 percent of the 

25 time expected to complete such degree. 
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1 (2) GRANTS.—The Secretary of Education shall 

2 award competitive grants to institutions of higher 

3 education to enable students who are eligible to re4 ceive Federal Pell Grants under subpart 1 of part A 

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

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

7 summer at such institutions to expedite the stu8 dents’ graduation from the institutions. 

9 (3) AUTHORIZATION OF APPROPRIATIONS.— 

10 There is authorized to be appropriated to carry out 

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

12 years 2006 through 2008. 

13 TITLE IX—TUITION FREE COL14 LEGE FOR MATHEMATICS, 

15 SCIENCE, AND SPECIAL EDU16 CATION TEACHERS 

17 SEC. 901. PURPOSE. 

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

19 tuition free for future mathematics, science, and special 

20 education teachers and to provide additional assistance to 

21 students eligible to receive a Federal Pell Grant under 

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

23 Act of 1965 (20 U.S.C. 1070a et seq.). 
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1 SEC. 902. TUITION FREE COLLEGE FOR MATHEMATICS, 

2 SCIENCE, AND SPECIAL EDUCATION TEACH3 ERS. 

4 (a) ADDITIONAL AMOUNTS FOR TEACHERS IN MATH5 EMATICS, SCIENCE, AND SPECIAL EDUCATION.— 

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

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

8 10(c)(3)) is amended by striking ‘‘$17,500’’ and in9 serting ‘‘$23,000’’. 

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

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

12 1087j(c)(3)) is amended by striking ‘‘$17,500’’ and 

13 inserting ‘‘$23,000’’. 

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

15 this section shall apply only with respect to eligible individ16 uals who are new borrowers on or after October 1, 1998. 

17 SEC. 903. OFFSET FOR TUITION FREE COLLEGE FOR MATH18 EMATICS, SCIENCE, AND SPECIAL EDU19 CATION TEACHERS. 

20 (a) SPECIAL ALLOWANCES.— 

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

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

23 1(b)(2)(B)) is amended— 

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

25 after September 30, 2004, and before January 

26 1, 2006,’’ and inserting ‘‘or refunded on or 
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1 after the date of enactment of the Taxpayer2 Teacher Protection Act of 2004,’’; and 

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

4 following: 

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

6 (ii), the quarterly rate of the special allow7 ance shall be the rate determined under 

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

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

10 the case may be, for loans— 

11 ‘‘(I) originated, transferred, or 

12 purchased on or after the date of en13 actment of the Taxpayer-Teacher Pro14 tection Act of 2004; 

15 ‘‘(II) financed by an obligation 

16 that has matured, been retired, or 

17 defeased on or after the date of enact18 ment of the Taxpayer-Teacher Protec19 tion Act of 2004; 

20 ‘‘(III) which the special allowance 

21 was determined under such subpara22 graphs or paragraph, as the case may 

23 be, on or after the date of enactment 

24 of the Taxpayer-Teacher Protection 

25 Act of 2004; 
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1 ‘‘(IV) for which the maturity 

2 date of the obligation from which 

3 funds were obtained for such loans 

4 was extended on or after the date of 

5 enactment of the Taxpayer-Teacher 

6 Protection Act of 2004; or 

7 ‘‘(V) sold or transferred to any 

8 other holder on or after the date of 

9 enactment of the Taxpayer-Teacher 

10 Protection Act of 2004.’’. 

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

12 amendment made by paragraph (1) shall be con13 strued to abrogate a contractual agreement between 

14 the Federal Government and a student loan pro15 vider. 

16 (b) AVAILABLE FUNDS FROM REDUCED EXPENDI17 TURES.— 

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

19 Secretary of Education as a result of reduced ex20 penditures under section 438 of the Higher Edu21 cation Act of 1965 (20 U.S.C. 1087–1) secured by 

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

23 by the Secretary for loan cancellation and loan for24 giveness for teachers under sections 428J and 460 

25 of the Higher Education Act of 1965 (20 U.S.C. 
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1 1078–10, 1087j), as amended by section 902 of this 

2 Act. 

3 (2) REMAINING FUNDS.— 

4 (A) IN GENERAL.—Any such funds re5 maining after carrying out paragraph (1) shall 

6 be used by the Secretary of Education to make 

7 payments to each nonprofit lender in an 

8 amount that bears the same relation to the re9 maining funds as the amount the nonprofit 

10 lender receives for fiscal year 2005 under sec11 tion 438(b)(2)(B) of the Higher Education Act 

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

13 the total amount received by nonprofit lenders 

14 for fiscal year 2005 under such section. 

15 (B) DEFINITION OF NONPROFIT LEND16 ER.—In this paragraph the term ‘‘nonprofit 

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

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

19 1965 (20 U.S.C.1085(d)) that— 

20 (i) is an organization described in sec21 tion 501(c)(3) of the Internal Revenue 

22 Code of 1986; 

23 (ii) is a nonprofit entity as defined by 

24 applicable State law; and 

25 (iii) meets the following requirements: 
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1 (I) The nonprofit lender does not 

2 confer a salary or benefits to any em3 ployee of the nonprofit lender in an 

4 amount that is in excess of the salary 

5 and benefits provided to the Secretary 

6 of Education by the Department of 

7 Education. 

8 (II) The nonprofit lender does 

9 not maintain an ongoing relationship 

10 whereby the nonprofit lender passes 

11 on revenue directly or indirectly 

12 through lease, securitization, resale, 

13 or any other financial instrument to a 

14 for-profit entity or to shareholders. 

15 (III) The nonprofit lender does 

16 not offer benefits to a borrower in a 

17 manner directly or indirectly predi18 cated on such borrower’s participa19 tion— 

20 (aa) in a program under 

21 part B or D of title IV of the 

22 Higher Education Act of 1965 

23 (20 U.S.C. 1071 et seq., 1087a 

24 et seq.); or 
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1 (bb) with any particular 

2 lender. 

3 (IV) The nonprofit lender cer4 tifies that the nonprofit lender uses 

5 the payment received pursuant to sub6 paragraph (A) to confer grant or 

7 scholarship benefits to students who 

8 are eligible to receive Federal Pell 

9 Grants under subpart 1 of part A of 

10 title IV of the Higher Education Act 

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

12 (V) The nonprofit lender is sub13 ject to public oversight through either 

14 a State charter, or through not less 

15 than 50 percent of the nonprofit lend16 er’s board of directors consisting of 

17 State appointed representatives. 

18 (VI) The nonprofit lender does 

19 not engage in the marketing of the 

20 relative value of programs under part 

21 B of title IV of the Higher Education 

22 Act of 1965 as compared to programs 

23 under part D of title IV of the Higher 

24 Education Act of 1965, nor does the 

25 nonprofit lender engage in the mar-
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1 keting of loans or programs offered by 

2 for-profit lenders. This subclause shall 

3 not be construed to prohibit the non4 profit lender from conferring basic in5 formation on lenders under part B of 

6 title IV of the Higher Education Act 

7 of 1965 and the related benefits of8 fered by such nonprofit lenders. 

9 TITLE X—MAKING COLLEGE AF10 FORDABLE FOR ALL STU11 DENTS 

12 SEC. 1001. EXPANSION OF DEDUCTION FOR HIGHER EDU13 CATION EXPENSES. 

14 (a) AMOUNT OF DEDUCTION.—Subsection (b) of sec15 tion 222 of the Internal Revenue Code of 1986 (relating 

16 to deduction for qualified tuition and related expenses) is 

17 amended to read as follows: 

18 ‘‘(b) LIMITATIONS.— 

19 ‘‘(1) DOLLAR LIMITATIONS.— 

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

21 paragraph (2), the amount allowed as a deduc22 tion under subsection (a) with respect to the 

23 taxpayer for any taxable year shall not exceed 

24 the applicable dollar limit. 
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1 ‘‘(B) APPLICABLE DOLLAR LIMIT.—The 

2 applicable dollar limit for any taxable year shall 

3 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. 

4 ‘‘(2) LIMITATION BASED ON MODIFIED AD5 JUSTED GROSS INCOME.— 

6 ‘‘(A) IN GENERAL.—The amount which 

7 would (but for this paragraph) be taken into ac8 count under subsection (a) shall be reduced 

9 (but not below zero) by the amount determined 

10 under subparagraph (B). 

11 ‘‘(B) AMOUNT OF REDUCTION.—The 

12 amount determined under this subparagraph 

13 equals the amount which bears the same ratio 

14 to the amount which would be so taken into ac15 count as— 

16 ‘‘(i) the excess of— 

17 ‘‘(I) the taxpayer’s modified ad18 justed gross income for such taxable 

19 year, over 

20 ‘‘(II) $65,000 ($130,000 in the 

21 case of a joint return), bears to 
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1 ‘‘(ii) $15,000 ($30,000 in the case of 

2 a joint return). 

3 ‘‘(C) MODIFIED ADJUSTED GROSS IN4 COME.—For purposes of this paragraph, the 

5 term ‘modified adjusted gross income’ means 

6 the adjusted gross income of the taxpayer for 

7 the taxable year determined— 

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

9 sections 199, 911, 931, and 933, and 

10 ‘‘(ii) after the application of sections 

11 86, 135, 137, 219, 221, and 469. 

12 For purposes of the sections referred to in 

13 clause (ii), adjusted gross income shall be deter14 mined without regard to the deduction allowed 

15 under this section. 

16 ‘‘(D) INFLATION ADJUSTMENTS.— 

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

18 taxable year beginning in a calendar year 

19 after 2005, both of the dollar amounts in 

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

21 by an amount equal to— 

22 ‘‘(I) such dollar amount, multi23 plied by 

24 ‘‘(II) the cost-of-living adjust25 ment determined under section 1(f)(3) 
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1 for the calendar year in which the tax2 able year begins, by substituting ‘cal3 endar year 2004’ for ‘calendar year 

4 1992’ in subparagraph (B) thereof. 

5 ‘‘(ii) ROUNDING.—If any amount as 

6 adjusted under clause (i) is not a multiple 

7 of $50, such amount shall be rounded to 

8 the nearest multiple of $50.’’. 

9 (b) QUALIFIED TUITION AND RELATED EXPENSES

10 OF ELIGIBLE STUDENTS.— 

11 (1) IN GENERAL.—Section 222(a) of the Inter12 nal Revenue Code of 1986 (relating to allowance of 

13 deduction) is amended by inserting ‘‘of eligible stu14 dents’’ after ‘‘expenses’’. 

15 (2) DEFINITION OF ELIGIBLE STUDENT.—Sec16 tion 222(d) of such Code (relating to definitions and 

17 special rules) is amended by redesignating para18 graphs (2) through (6) as paragraphs (3) through 

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

20 (1) the following new paragraph: 

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

22 student’ has the meaning given such term by section 

23 36(b)(3).’’. 

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

25 Economic Growth and Tax Relief Reconciliation Act of 
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1 2001 (relating to sunset of provisions of such Act) shall 

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

3 Act. 

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

5 this section shall apply to payments made in taxable years 

6 beginning after December 31, 2004. 

7 SEC. 1002. CREDIT FOR INTEREST ON HIGHER EDUCATION 

8 LOANS. 

9 (a) IN GENERAL.—Subpart A of part IV of sub10 chapter A of chapter 1 of the Internal Revenue Code of 

11 1986 (relating to nonrefundable personal credits) is 

12 amended by inserting after section 25B the following new 

13 section: 

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

15 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in16 dividual, there shall be allowed as a credit against the tax 

17 imposed by this chapter for the taxable year an amount 

18 equal to the interest paid by the taxpayer during the tax19 able year on any qualified education loan. 

20 ‘‘(b) MAXIMUM CREDIT.— 

21 ‘‘(1) IN GENERAL.—Except as provided in para22 graph (2), the credit allowed by subsection (a) for 

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

24 ‘‘(2) LIMITATION BASED ON MODIFIED AD25 JUSTED GROSS INCOME.— 
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1 ‘‘(A) IN GENERAL.—If the modified ad2 justed gross income of the taxpayer for the tax3 able year exceeds $50,000 ($100,000 in the 

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

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

6 under this section shall be reduced (but not 

7 below zero) by the amount which bears the 

8 same ratio to the amount which would be so al9 lowable as such excess bears to $20,000 

10 ($40,000 in the case of a joint return). 

11 ‘‘(B) MODIFIED ADJUSTED GROSS IN12 COME.—The term ‘modified adjusted gross in13 come’ means adjusted gross income determined 

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

15 and 933. 

16 ‘‘(C) INFLATION ADJUSTMENT.—In the 

17 case of any taxable year beginning after 2005, 

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

19 in subparagraph (A) shall be increased by an 

20 amount equal to— 

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

22 ‘‘(ii) the cost-of-living adjustment de23 termined under section 1(f)(3) for the cal24 endar year in which the taxable year be25 gins, by substituting ‘2004’ for ‘1992’. 
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1 ‘‘(D) ROUNDING.—If any amount as ad2 justed under subparagraph (C) is not a multiple 

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

4 nearest multiple of $50. 

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

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

7 the taxable year if a deduction under section 151 with re8 spect to such individual is allowed to another taxpayer for 

9 the taxable year beginning in the calendar year in which 

10 such individual’s taxable year begins. 

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

12 shall be allowed under this section only with respect to 

13 interest paid on any qualified education loan during the 

14 first 60 months (whether or not consecutive) in which in15 terest payments are required. For purposes of this para16 graph, any loan and all refinancings of such loan shall be 

17 treated as 1 loan. 

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

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

20 ‘qualified education loan’ has the meaning given 

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

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

23 the meaning given such term by section 152. 

24 ‘‘(f) SPECIAL RULES.— 
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1 ‘‘(1) DENIAL OF DOUBLE BENEFIT.—No credit 

2 shall be allowed under this section for any amount 

3 taken into account for any deduction under any 

4 other provision of this chapter. 

5 ‘‘(2) MARRIED COUPLES MUST FILE JOINT RE6 TURN.—If the taxpayer is married at the close of 

7 the taxable year, the credit shall be allowed under 

8 subsection (a) only if the taxpayer and the tax9 payer’s spouse file a joint return for the taxable 

10 year. 

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

12 determined in accordance with section 7703.’’. 

13 (b) CONFORMING AMENDMENT.—The table of sec14 tions for subpart A of part IV of subchapter A of chapter 

15 1 of the Internal Revenue Code of 1986 is amended by 

16 inserting after the item relating to section 25B the fol17 lowing new item: 

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

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

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

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

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

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

23 respect to any loan interest payment due after December 

24 31, 2004. 
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1 SEC. 1003. HOPE AND LIFETIME LEARNING CREDITS TO BE 

2 REFUNDABLE. 

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

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

5 Lifetime Learning credits) is hereby moved to subpart C 

6 of part IV of subchapter A of chapter 1 of such Code (re7 lating to refundable credits) and inserted after section 35. 

8 (b) TECHNICAL AMENDMENTS.— 

9 (1) Section 36 of such Code is redesignated as 

10 section 37. 

11 (2) Section 25A of such Code (as moved by 

12 subsection (a)) is redesignated as section 36. 

13 (3) Paragraph (1) of section 36(a) of such Code 

14 (as redesignated by paragraph (2)) is amended by 

15 striking ‘‘this chapter’’ and inserting ‘‘this subtitle’’. 

16 (4) Subparagraph (B) of section 72(t)(7) of 

17 such Code is amended by striking ‘‘section 

18 25A(g)(2)’’ and inserting ‘‘section 36(g)(2)’’. 

19 (5) Subparagraph (A) of section 135(d)(2) of 

20 such Code is amended by striking ‘‘section 25A’’ and 

21 inserting ‘‘section 36’’. 

22 (6) Section 221(d) of such Code is amended— 

23 (A) by striking ‘‘section 25A(g)(2)’’ in 

24 paragraph (2)(B) and inserting ‘‘section 

25 36(g)(2)’’, 
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1 (B) by striking ‘‘section 25A(f)(2)’’ in the 

2 matter following paragraph (2)(B) and insert3 ing ‘‘section 36(f)(2)’’, and 

4 (C) by striking ‘‘section 25A(b)(3)’’ in 

5 paragraph (3) and inserting ‘‘section 36(b)(3)’’. 

6 (7) Section 222 of such Code is amended— 

7 (A) by striking ‘‘section 25A’’ in subpara8 graph (A) of subsection (c)(2) and inserting 

9 ‘‘section 36’’, 

10 (B) by striking ‘‘section 25A(f)’’ in sub11 section (d)(1) and inserting ‘‘section 36(f)’’, 

12 and 

13 (C) by striking ‘‘section 25A(g)(2)’’ in sub14 section (d)(1) and inserting ‘‘section 36(g)(2)’’. 

15 (8) Section 529 of such Code is amended— 

16 (A) by striking ‘‘section 25A(g)(2)’’ in sub17 clause (I) of subsection (c)(3)(B)(v) and insert18 ing ‘‘section 36(g)(2)’’, 

19 (B) by striking ‘‘section 25A’’ in subclause 

20 (II) of subsection (c)(3)(B)(v) and inserting 

21 ‘‘section 36’’, and 

22 (C) by striking ‘‘section 25A(b)(3)’’ in 

23 clause (i) of subsection (e)(3)(B) and inserting 

24 ‘‘section 36(b)(3)’’. 

25 (9) Section 530 of such Code is amended— 
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1 (A) by striking ‘‘section 25A(g)(2)’’ in sub2 clause (I) of subsection (d)(2)(C)(i) and insert3 ing ‘‘section 36(g)(2)’’, 

4 (B) by striking ‘‘section 25A’’ in subclause 

5 (II) of subsection (d)(2)(C)(i) and inserting 

6 ‘‘section 36’’, and 

7 (C) by striking ‘‘section 25A(g)(2)’’ in 

8 clause (iii) of subsection (d)(4)(B) and inserting 

9 ‘‘section 36(g)(2)’’. 

10 (10) Subsection (e) of section 6050S of such 

11 Code is amended by striking ‘‘section 25A’’ and in12 serting ‘‘section 36’’. 

13 (11) Subparagraph (J) of section 6213(g)(2) of 

14 such Code is amended by striking ‘‘section 

15 25A(g)(1)’’ and inserting ‘‘section 36(g)(1)’’. 

16 (12) Paragraph (2) of section 1324(b) of title 

17 31, United States Code, is amended by inserting be18 fore the period ‘‘or from section 36 of such Code’’. 

19 (13) The table of sections for subpart C of part 

20 IV of subchapter A of chapter 1 of the Internal Rev21 enue Code of 1986 is amended by striking the item 

22 relating to section 36 and inserting the following: 

‘‘Sec. 36. Hope and Lifetime Learning credits. 

‘‘Sec. 37. Overpayments of tax.’’. 
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1 (14) The table of sections for subpart A of such 

2 part IV is amended by striking the item relating to 

3 section 25A. 

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

5 this section shall apply to taxable years beginning after 

6 December 31, 2004. 

Æ