I 

116TH CONGRESS 

1ST SESSION H. R. 1605 

To amend the Elementary and Secondary Education Act of 1965 to allow 

parents of eligible military dependent children to establish Military Education Savings Accounts, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 7, 2019 

Mr. BANKS (for himself, Mr. YOHO, Mr. DUNCAN, Mr. WEBSTER of Florida, 

Mrs. LESKO, Mr. MEADOWS, Mr. GIBBS, Mr. WALKER, Mr. BURGESS, 

Mr. BUDD, Mr. MOONEY of West Virginia, Mr. MOOLENAAR, Mr. 

LOUDERMILK, Mr. AUSTIN SCOTT of Georgia, Mr. GOSAR, Mr. KELLY

of Mississippi, Mrs. BROOKS of Indiana, Mr. LATTA, Mr. POSEY, Mr. 

MITCHELL, Mr. LAMALFA, Mr. HAGEDORN, Mr. LONG, and Mr. GREEN

of Tennessee) introduced the following bill; which was referred to the 

Committee on Education and Labor, and in addition to the Committees 

on Ways and Means, and Appropriations, 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 amend the Elementary and Secondary Education Act 

of 1965 to allow parents of eligible military dependent 

children to establish Military Education Savings Accounts, 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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Education Savings Ac3 counts for Military Families Act of 2019’’. 

4 SEC. 2. MILITARY EDUCATION SAVINGS ACCOUNTS. 

5 Title VII of the Elementary and Secondary Edu6 cation Act of 1965 (20 U.S.C. 7701 et seq.) is amended 

7 by inserting after section 7012 the following: 

8 ‘‘SEC. 7012A. MILITARY EDUCATION SAVINGS ACCOUNTS. 

9 ‘‘(a) IN GENERAL.—The Secretary of Education, in 

10 consultation with the Secretary of Defense, shall carry out 

11 a program under which the Secretary of Education shall— 

12 ‘‘(1) at the request of a parent of an eligible 

13 military dependent child, establish an account on be14 half of such child (to be known as a ‘Military Edu15 cation Savings Account’) into which the Secretary 

16 shall deposit funds in an amount determined under 

17 subsection (d); and 

18 ‘‘(2) establish a procedure under which the par19 ent of the child may use funds in the account to pay 

20 for the educational expenses of the child in accord21 ance with this section. 

22 ‘‘(b) APPLICATION.— 

23 ‘‘(1) IN GENERAL.—To be eligible to participate 

24 in the program under this section for a school year, 

25 a parent of an eligible military dependent child shall 


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1 submit an application to the Secretary in accordance 

2 with this subsection. 

3 ‘‘(2) APPLICATION PROCESS.—In carrying out 

4 paragraph (1), the Secretary shall— 

5 ‘‘(A) accept applications on a year-round 

6 basis and establish procedures for approving 

7 applications in an expeditious manner; and 

8 ‘‘(B) create a standardized form that par9 ents can use to apply for the program and en10 sure that such form is readily available in writ11 ten and electronic formats, including on a pub12 licly accessible website. 

13 ‘‘(3) APPROVAL.—Subject to the availability of 

14 funds to carry out this section, the Secretary shall 

15 approve the application of a parent to establish a 

16 Military Education Savings Account if— 

17 ‘‘(A) the application is submitted in ac18 cordance with the application process estab19 lished by the Secretary pursuant to this sub20 section; 

21 ‘‘(B) the application demonstrates that the 

22 child on whose behalf the Military Education 

23 Savings Account is to be established is an eligi24 ble military dependent child; and 


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1 ‘‘(C) the parent who submits the applica2 tion enters into a written agreement with the 

3 Secretary under which the parent agrees— 

4 ‘‘(i) to provide the child with instruc5 tion in, at minimum, the fields of reading, 

6 language, mathematics, science, and social 

7 studies; 

8 ‘‘(ii) to not enroll the child in a public 

9 elementary school or a public secondary 

10 school, on a full-time basis while partici11 pating in the program; 

12 ‘‘(iii) to use funds in the Military 

13 Education Savings Account only for the 

14 purposes authorized under this section; 

15 and 

16 ‘‘(iv) to comply with all other require17 ments of this section. 

18 ‘‘(4) RENEWALS.—The Secretary shall establish 

19 a process for the automatic renewal of a previously 

20 established Military Education Savings Account ex21 cept in cases in which— 

22 ‘‘(A) the parents of the child on whose be23 half the account was established choose not to 

24 renew the account; or 


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1 ‘‘(B) the account was used to commit 

2 fraud or was otherwise not used in accordance 

3 with the requirements of this section. 

4 ‘‘(c) PRIORITY IN THE EVENT OF INSUFFICIENT

5 FUNDS.— 

6 ‘‘(1) IN GENERAL.—If the funds appropriated 

7 to carry out this section are insufficient to enable 

8 the Secretary to establish and fully fund a Military 

9 Education Savings Account for each eligible child 

10 whose parent has an application approved under 

11 subsection (b) for a school year, the Secretary 

12 shall— 

13 ‘‘(A) first renew and fully fund previously 

14 established Military Education Savings Ac15 counts; and 

16 ‘‘(B) if funds remain available after renew17 ing all accounts under subparagraph (A), con18 duct the lottery described in paragraph (3) to 

19 select the children on whose behalf accounts will 

20 be established using the remaining funds. 

21 ‘‘(2) TRANSFER AUTHORITY.—Notwithstanding 

22 any other provision of law, the Secretary may trans23 fer amounts from any account of the Department of 

24 Education to renew and fully fund previously estab25 lished Military Education Savings Accounts under 


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1 paragraph (1)(A). The authority to transfer 

2 amounts under the preceding sentence shall not be 

3 subject to any transfer or reprogramming require4 ments under any other provision of law. 

5 ‘‘(3) LOTTERY.—The lottery described in this 

6 paragraph is a lottery in which— 

7 ‘‘(A) siblings of children on whose behalf 

8 Military Education Savings Accounts have pre9 viously been established have the highest prob10 ability of selection; 

11 ‘‘(B) children of enlisted members have the 

12 next-highest probability of selection after the 

13 children described in subparagraph (A); 

14 ‘‘(C) children of warrant officers have the 

15 next-highest probability of selection after the 

16 children described in subparagraph (B); and 

17 ‘‘(D) children of commissioned officers 

18 have the lowest probability of selection. 

19 ‘‘(d) AMOUNT OF DEPOSITS.— 

20 ‘‘(1) FIRST YEAR OF PROGRAM.—The amount 

21 of funds deposited into each Military Education Sav22 ings Account for the first school year for which such 

23 accounts are established under this section shall be 

24 $6,000 for each eligible military dependant child 

25 covered by the account. 


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1 ‘‘(2) SUBSEQUENT YEARS.—The amount of 

2 funds deposited into each Military Education Sav3 ings Account for any school year after the year de4 scribed in paragraph (1), shall be the amount deter5 mined under this subsection for the previous school 

6 year increased by a percentage equal to the percent7 age increase in the Chained Consumer Price Index 

8 for All Urban Consumers (as published by the Bu9 reau of Labor Statistics of the Department of 

10 Labor) over the period of such previous school year. 

11 ‘‘(e) USE OF FUNDS.—Funds deposited into a Mili12 tary Education Savings Account for a school year may be 

13 used by the parent of an eligible military dependent child 

14 to make payments to a qualified educational service pro15 vider that is approved by the Secretary under subsection 

16 (f)(1) for— 

17 ‘‘(1) costs of attendance at a private elementary 

18 school or secondary school recognized by the State, 

19 which may include a private school that has a reli20 gious mission; 

21 ‘‘(2) private online learning programs; 

22 ‘‘(3) private tutoring; 

23 ‘‘(4) services provided by a public elementary 

24 school or secondary school attended by the child on 


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1 a less than full-time basis, including individual class2 es and extracurricular activities and programs; 

3 ‘‘(5) textbooks, curriculum programs, or other 

4 instructional materials, including any supplemental 

5 materials required by a curriculum program, private 

6 school, private online learning program, or a public 

7 school, or any parent directed curriculum associated 

8 with K–12 education; 

9 ‘‘(6) computer hardware or other technological 

10 devices that are used to help meet a student’s edu11 cational needs, except that such hardware or devices 

12 may not be purchased by a parent more than once 

13 in an 18-month period; 

14 ‘‘(7) educational software and applications; 

15 ‘‘(8) uniforms purchased from or through a pri16 vate school recognized by the State; 

17 ‘‘(9) fees for nationally standardized assessment 

18 exams, advanced placement exams, any exams re19 lated to college or university admission, or tuition or 

20 fees for preparatory courses for such exams; 

21 ‘‘(10) fees for summer education programs and 

22 specialized after-school education programs (but not 

23 including after-school childcare); 


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1 ‘‘(11) educational services and therapies, in2 cluding occupational, behavioral, physical, speech3 language, and audiology therapies; 

4 ‘‘(12) fees for transportation paid to a fee-for5 service transportation provider for the student to 

6 travel to and from the facilities of a qualified edu7 cational service provider; 

8 ‘‘(13) costs of attendance at an institution of 

9 higher education; 

10 ‘‘(14) costs associated with an apprenticeship or 

11 other vocational training program; 

12 ‘‘(15) fees for state-recognized industry certifi13 cation exams, and tuition or fees for preparatory 

14 courses for such exams; 

15 ‘‘(16) contributions to a college savings ac16 count, which may include contributions to a qualified 

17 tuition program (as defined in section 529(b)(1)(A) 

18 of the Internal Revenue Code of 1986) or other pre19 paid tuition plan offered by a State; or 

20 ‘‘(17) any other educational expenses approved 

21 by the Secretary. 

22 ‘‘(f) REQUIREMENTS FOR QUALIFIED EDUCATIONAL

23 SERVICE PROVIDERS.— 

24 ‘‘(1) REGISTRATION AND APPROVAL.—The Sec25 retary shall establish and maintain a registry of 


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1 qualified educational service providers that are ap2 proved to receive payments from a Military Edu3 cation Savings Account. The Secretary shall approve 

4 a qualified educational service provider to receive 

5 such payments if the provider demonstrates to the 

6 Secretary that it is licensed in the State in which it 

7 operates to provide one or more of the services for 

8 which funds may be expended under subsection (e). 

9 ‘‘(2) PARTICIPATION IN ONLINE MARKET10 PLACE.—As a condition of receiving funds from a 

11 Military Education Savings Account, a qualified edu12 cational service provider shall make its services 

13 available for purchase through the online market14 place described in subsection (g). 

15 ‘‘(3) SURETY BOND.— 

16 ‘‘(A) IN GENERAL.—The Secretary shall 

17 require each qualified educational service pro18 vider that receives $100,000 or more in funds 

19 from Military Education Savings Accounts in a 

20 school year to post a surety bond, in an amount 

21 determined by the Secretary, for such school 

22 year. 

23 ‘‘(B) RETENTION.—The Secretary shall 

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1 ety bond under subparagraph (A) may be re2 tained by the Secretary. 

3 ‘‘(g) ONLINE MARKETPLACE.— 

4 ‘‘(1) IN GENERAL.—The Secretary shall seek to 

5 enter into a contract with a private-sector entity 

6 under which the entity shall— 

7 ‘‘(A) establish and operate an online mar8 ketplace that enables the holder of a Military 

9 Education Savings Account to make direct pur10 chases from qualified educational service pro11 viders using funds from such account; 

12 ‘‘(B) ensure that each qualified educational 

13 service provider on the registry maintained by 

14 the Secretary under subsection (f)(1) has made 

15 its services available for purchase through the 

16 online marketplace; 

17 ‘‘(C) ensure that all purchases made 

18 through the online marketplace are for services 

19 that are allowable uses of funds under sub20 section (e); and 

21 ‘‘(D) develop and make available a stand22 ardized expense report form, in electronic and 

23 hard copy formats, to be used by parents for re24 porting expenses in accordance with subsection 

25 (h)(3). 


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1 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

2 this subsection shall be construed to require the 

3 holder of a Military Education Savings Account to 

4 make purchases using the online marketplace de5 scribed in paragraph (1). 

6 ‘‘(h) TRANSFER SCHEDULE.— 

7 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

8 the Secretary shall make quarterly transfers of the 

9 amount calculated pursuant to subsection (d) for de10 posit into the account of each qualified student, ex11 cept that the Secretary may make transfers accord12 ing to another transfer schedule if the Secretary de13 termines that a transfer schedule other than quar14 terly transfers is necessary for the operation of the 

15 education savings account. 

16 ‘‘(2) CHOICE OF SCHEDULE.—The Secretary 

17 shall establish a process under which the parent of 

18 a child on whose behalf a Military Education Sav19 ings Account is established may choose a transfer 

20 schedule other than a transfer schedule determined 

21 under paragraph (1). 

22 ‘‘(3) EXPENSE REPORTS.— 

23 ‘‘(A) SUBMISSION REQUIRED.—Before re24 ceiving a transfer under paragraph (1) or (2), 

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1 tary Education Savings Account is established 

2 shall submit to the Secretary an expense report 

3 demonstrating how funds from the most recent 

4 transfer were expended. 

5 ‘‘(B) FORMAT.—Each such expense report 

6 shall be submitted using the standardized ex7 pense report form developed under subsection 

8 (g)(1)(D). 

9 ‘‘(i) ROLLOVER.—Amounts remaining in the Military 

10 Education Savings Account of a student at the end of a 

11 school year shall remain available for use in accordance 

12 with subsection (e) until the date on which such account 

13 terminates under subsection (j). 

14 ‘‘(j) TERMINATION AND RETURN OF FUNDS.— 

15 ‘‘(1) TERMINATION.—The Military Education 

16 Savings Account of a student shall terminate on— 

17 ‘‘(A) the date on which the student enrolls 

18 in a public elementary school or secondary 

19 school on a full-time basis; 

20 ‘‘(B) in the case of a student who is pur21 suing postsecondary education, the earlier of— 

22 ‘‘(i) the date on which the student 

23 completes postsecondary education; or 

24 ‘‘(ii) the date on which the student at25 tains the age of 22 years; 


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1 ‘‘(C) in the case of a student who is an in2 dividual with a disability, the date on which the 

3 student attains the age of 26 years; or 

4 ‘‘(D) in the case of an individual not de5 scribed in subparagraphs (B) or (C), the earlier 

6 of— 

7 ‘‘(i) the date on which the student at8 tains the age of 22 years; or 

9 ‘‘(ii) the expiration of any 2-year pe10 riod during which funds in the account are 

11 not used in accordance with this section. 

12 ‘‘(2) RETURN OF FUNDS.—Any funds remain13 ing in a Military Education Savings Account on the 

14 date such account terminates under paragraph (1) 

15 shall be returned to the Treasury of the United 

16 States and shall be used to carry out the program 

17 under this section. 

18 ‘‘(k) COMPULSORY ATTENDANCE REQUIREMENTS.— 

19 A State that receives funds under this title shall consider 

20 a child with a Military Education Savings Account for a 

21 school year as meeting the State’s compulsory school at22 tendance requirements for such school year. 

23 ‘‘(l) SPECIAL RULE.—In the case of a child with a 

24 Military Education Savings Account who attends a public 

25 school on a less than full-time basis in a school year— 


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1 ‘‘(1) the child may not attend the public school 

2 free of charge; and 

3 ‘‘(2) funds in the account, in an amount deter4 mined pursuant to an agreement between the parent 

5 of the child and the local educational agency con6 cerned, shall be used to pay for the child’s costs of 

7 attendance at such school. 

8 ‘‘(m) TAX TREATMENT OF ACCOUNTS.— 

9 ‘‘(1) IN GENERAL.—A Military Education Sav10 ings Account is exempt from taxation under subtitle 

11 A of the Internal Revenue Code of 1986. 

12 ‘‘(2) CONTRIBUTIONS AND DISTRIBUTIONS.— 

13 For purposes of such subtitle— 

14 ‘‘(A) any contribution to a military edu15 cation savings account by the Secretary under 

16 this Act shall not be includible in the gross in17 come of the individual for whose benefit such 

18 account is maintained or the parent of such in19 dividual; and 

20 ‘‘(B) any distribution from a military edu21 cation savings account which is permitted under 

22 this Act shall not be includible in the gross in23 come of the individual for whose benefit such 

24 account is maintained or the parent of such in25 dividual. 


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1 ‘‘(n) FRAUD PREVENTION AND REPORTING.—The 

2 Secretary shall establish a website and a telephone hotline 

3 that enable individuals to anonymously report suspected 

4 fraud in the program under this section. The Secretary 

5 also shall conduct or contract for random, quarterly, or 

6 annual audits of accounts as needed to ensure compliance 

7 with this section. 

8 ‘‘(o) CONTRACT AUTHORITY.—The Secretary may 

9 enter into one or more contracts for the purpose of car10 rying out the responsibilities of the Secretary under this 

11 section. 

12 ‘‘(p) REFUNDS.—The Secretary shall establish a 

13 process under which payments from a Military Education 

14 Savings Accounts to a qualified educational service pro15 vider shall be refunded to the account in the event of fraud 

16 or nonperformance by the provider. 

17 ‘‘(q) RULES OF CONSTRUCTION.— 

18 ‘‘(1) NONAGENCY.—A qualified educational 

19 service provider that receives a payment from a Mili20 tary Education Savings Account pursuant to this 

21 section shall not be considered an agent of the State 

22 or the Federal Government solely because the pro23 vider received such payment. 

24 ‘‘(2) FEDERAL OR STATE SUPERVISION.—Noth25 ing in this section shall be construed to allow any 


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1 agency of a State or the Federal Government to ex2 ercise control or supervision over any qualified edu3 cational service provider. 

4 ‘‘(3) IMPOSITION OF ADDITIONAL REQUIRE5 MENTS.—No Federal requirements shall apply to a 

6 qualified educational service provider other than the 

7 requirements specifically set forth in this section. 

8 Nothing in this section shall be construed to require 

9 a qualified educational service provider to alter its 

10 creed, practices, admissions policy, or curriculum in 

11 order to be eligible to receive payments from a Mili12 tary Education Savings Account. 

13 ‘‘(4) TREATMENT OF ASSISTANCE.—For pur14 poses of any Federal law, assistance provided under 

15 this section shall be considered assistance to the 

16 military dependent student or to the parents of a 

17 student on whose behalf a Military Education Sav18 ings Account is established and shall not be consid19 ered assistance to the qualified educational service 

20 provider that uses or receives funds from a Military 

21 Education Savings Account. 

22 ‘‘(r) LEGAL PROCEEDINGS.— 

23 ‘‘(1) BURDEN.—In any legal proceeding in 

24 which a qualified educational service provider chal25 lenges a requirement imposed by the Department of 


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1 Education on the provider, the Department shall 

2 have the burden of establishing that the requirement 

3 is necessary and does not impose any undue burden 

4 on the provider. 

5 ‘‘(2) LIMITATION ON LIABILITY.— 

6 ‘‘(A) IN GENERAL.—No liability shall arise 

7 on the part of an entity described in subpara8 graph (B) solely because such entity awards, 

9 uses, or receives funds from a Military Edu10 cation Savings Account. 

11 ‘‘(B) ENTITY DESCRIBED.—The entities 

12 described in this subparagraph are the fol13 lowing: 

14 ‘‘(i) The Department of Education. 

15 ‘‘(ii) An entity that enters into a con16 tract with the Secretary pursuant to sub17 section (g) or subsection (o). 

18 ‘‘(iii) A qualified educational service 

19 provider. 

20 ‘‘(3) INTERVENTION.— 

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

22 subparagraph (B), a parent of an eligible mili23 tary dependent student or a parent of a student 

24 on whose behalf a Military Education Savings 

25 Account is established may intervene in any 


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1 legal proceeding in which the constitutionality 

2 of the program under this section is challenged 

3 under a State constitution or the Federal con4 stitution. 

5 ‘‘(B) EXCEPTION.—For purposes of judi6 cial administration, a court may— 

7 ‘‘(i) limit the number of parents al8 lowed to intervene in a proceeding under 

9 subparagraph (A); or 

10 ‘‘(ii) require all parents who have in11 tervened in a proceeding under subpara12 graph (A) to file a joint brief, except that 

13 no parent shall be required to join any 

14 brief filed on behalf of a State that is a de15 fendant in the proceeding. 

16 ‘‘(s) ADMINISTRATIVE EXPENSES.—The Secretary 

17 may use not more than 5 percent of the funds made avail18 able to carry out this section for the direct costs of admin19 istering Military Education Savings Accounts. 

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

21 ‘‘(1) The terms ‘commissioned officer’, ‘enlisted 

22 member’, and ‘warrant officer’ have the meanings 

23 given those terms in section 101(b) of title 10, 

24 United States Code. 


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1 ‘‘(2) The term ‘eligible military dependent child’ 

2 means a child who— 

3 ‘‘(A) has a parent on active duty in the 

4 uniformed services (as that term is defined in 

5 section 101 of title 37, United States Code, ex6 cept that such term does not include an officer 

7 in the National Guard who has been activated); 

8 and 

9 ‘‘(B) in the case of a child seeking to es10 tablish a Military Education Savings account 

11 for the first time, was enrolled in a public ele12 mentary school or a public secondary school for 

13 not less than 100 consecutive days in the pre14 ceding school year. 

15 ‘‘(3) The term ‘institution of higher education’ 

16 has the meaning given the term in section 102 of the 

17 Higher Education Act of 1965 (20 U.S.C. 1002). 

18 ‘‘(4) The term ‘qualified educational service 

19 provider’ means an entity or person that is licensed 

20 by a State to provide one or more of the educational 

21 services for which funds may be expended under 

22 subsection (e), including— 

23 ‘‘(A) a private school; 

24 ‘‘(B) a non-public online learning program 

25 or course provider; 


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1 ‘‘(C) a State institution of higher edu2 cation, which may include a community college 

3 or a technical college; 

4 ‘‘(D) a public school; 

5 ‘‘(E) a private tutor or entity that operates 

6 a tutoring facility; 

7 ‘‘(F) a provider of educational materials or 

8 curriculum; 

9 ‘‘(G) a provider of education-related thera10 pies or services; or 

11 ‘‘(H) any other provider of educational 

12 services licensed by a State to provide such 

13 services.’’. 

14 SEC. 3. AUTHORIZATION OF APPROPRIATIONS. 

15 Section 7014 of the Elementary and Secondary Edu16 cation Act of 1965 is amended by adding at the end the 

17 following: 

18 ‘‘(f) MILITARY EDUCATION SAVINGS ACCOUNTS.— 

19 For the purpose of carrying out section 7012A— 

20 ‘‘(1) there are authorized to be appropriated 

21 $1,200,000,000 for fiscal year 2020; and 

22 ‘‘(2) for each fiscal year beginning after fiscal 

23 year 2020, the amount authorized to be appro24 priated shall be the amount authorized to be appro25 priated for the previous fiscal year increased by the 


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1 percentage increase in the Chained Consumer Price 

2 Index for All Urban Consumers (as published by the 

3 Bureau of Labor Statistics of the Department of 

4 Labor) over the period of such previous fiscal year.’’. 

Æ 


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