II 

109TH CONGRESS 

2D SESSION S. 3902 

To provide for education competitiveness. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 14, 2006 

Mr. BAUCUS introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To provide for education competitiveness. 

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 ‘‘Education Competi5 tiveness Act of 2006’’. 

6 SEC. 2. TABLE OF CONTENTS. 

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

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Definitions. 

TITLE I—EDUCATION TRUST FUND 

Sec. 101. Education Trust Fund. 

TITLE II—TEACHING COMPETITIVENESS 

Sec. 201. Findings. 

Sec. 202. Future Early Childhood Education Teacher Scholarships. 


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Sec. 203. Future Science, Technology, Engineering, and Mathematics Teacher 

Scholarships. 

Sec. 204. Future Master Science, Technology, Engineering, and Mathematics 

Teacher Scholarships. 

Sec. 205. Future Critical Language Teacher Scholarships. 

Sec. 206. Assisting teachers in rural or underserved areas. 

Sec. 207. Advanced Placement and International Baccalaureate Programs. 

TITLE III—COMMITTING TO COMPETITIVENESS EARLY BY 

SUPPORTING UNIVERSAL VOLUNTARY PREKINDERGARTEN 

Sec. 301. Findings. 

Sec. 302. Universal voluntary prekindergarten by 2020. 

Sec. 303. Prekindergarten through grade 16 (PK–16) collaboratives. 

Sec. 304. Advancing early childhood education teacher qualifications. 

TITLE IV—ENCOURAGING ENRICHMENT ACTIVITIES BY 

SUPPORTING MIDDLE SCHOOLS AND SECONDARY SCHOOLS 

Sec. 401. Findings. 

Sec. 402. Advancing knowledge with internships and summer programs. 

Sec. 403. Insight, Partnership, and Initiative Grants. 

TITLE V—COMMITTING TO EDUCATION FOR A COMPETITIVE 

ECONOMY 

Sec. 501. Findings. 

Sec. 502. Summer science and engineering institutes. 

Sec. 503. Specialty science and mathematics secondary schools. 

Sec. 504. Science, technology, engineering, and mathematics for tomorrow program established. 

Sec. 505. Federal Pell Grants. 

Sec. 506. Research grants for early career scientists. 

TITLE VI—RESTORING OUR COMMITMENT TO INDIAN 

EDUCATION 

Sec. 601. Findings. 

Sec. 602. Johnson-O’Malley grants. 

Sec. 603. Appropriations for Indian higher education. 

Sec. 604. Language immersion programs. 

TITLE VII—LIFE LONG LEARNING 

Sec. 701. Findings. 

Sec. 702. Job skill training partnerships. 

Sec. 703. Small business innovation partnerships. 

Sec. 704. Job skill training authorization of appropriations. 

Sec. 705. Distance learning. 

TITLE VIII—EDUCATION TAX INCENTIVES 

Sec. 800. Findings. 

Subtitle A—Benefits for Current Expenses 

Sec. 801. Refundable higher education credit. 


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Sec. 802. Increased repayment period for higher education loans from qualified 

retirement plans. 

Sec. 803. Increased employer provided educational assistance. 

Sec. 804. Above-the-line deduction for certain expenses of elementary and secondary school teachers. 

Subtitle B—Benefits for Future Expenses 

Sec. 811. Young Savers Accounts. 

Subtitle C—Benefits for Past Expenses 

Sec. 821. Increased deduction for student loan interest. 

Subtitle D—Other Tax Incentives 

Sec. 831. Extension of QZABs and expansion to financing certain postsecondary institutions. 

Sec. 832. Additional standard deduction for real property taxes for nonitemizers. 

Sec. 833. Extension and expansion of charitable contribution allowed for scientific property used for research and for computer technology 

and equipment used for educational purposes. 

Sec. 834. Modification of charitable deduction for contributions of book inventory. 

1 SEC. 3. DEFINITIONS. 

2 Unless otherwise specified in this Act, the terms used 

3 in this Act have the meanings given the terms in section 

4 9101 of the Elementary and Secondary Education Act of 

5 1965 (20 U.S.C. 7801). 

6 TITLE I—EDUCATION TRUST 

7 FUND 

8 SEC. 101. EDUCATION TRUST FUND. 

9 (a) CREATION OF TRUST FUND.—There is estab10 lished in the Treasury of the United States a trust fund 

11 to be known as the ‘‘Education Trust Fund’’, consisting 

12 of such amounts as may be appropriated or credited to 

13 the Education Trust Fund. 


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1 (b) RULES REGARDING TRANSFERS TO AND MAN2 AGEMENT OF EDUCATION TRUST FUND.—For purposes 

3 of this section, rules similar to the rules of sections 9601 

4 and 9602 of the Internal Revenue Code of 1986 shall 

5 apply. 

6 (c) DISTRIBUTION OF AMOUNTS IN EDUCATION

7 TRUST FUND.—Amounts in the Education Trust Fund 

8 shall be available, as provided by appropriation Acts, for 

9 making expenditures before October 1, 2011, to meet 

10 those obligations of the United States heretofore or here11 after incurred which are authorized under this Act. 

12 TITLE II—TEACHING 

13 COMPETITIVENESS 

14 SEC. 201. FINDINGS. 

15 Congress finds the following: 

16 (1) Teachers are responsible for educating the 

17 future workforce. 

18 (2) There is a teacher shortage in many places 

19 across the United States. 

20 (3) We must prepare teachers to educate to21 morrow’s leaders. 

22 SEC. 202. FUTURE EARLY CHILDHOOD EDUCATION TEACH23 ER SCHOLARSHIPS. 

24 (a) PURPOSE.—The purpose of this section is to in25 crease the number and percentage of citizens of the United 


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1 States who earn baccalaureate degrees in early childhood 

2 education by— 

3 (1) providing 25,000 new competitive merit4 based undergraduate scholarships to students who 

5 are citizens of the United States, for the purpose of 

6 enabling each such student to obtain a baccalaureate 

7 degree in early childhood education at an institution 

8 of higher education; and 

9 (2) by assisting institutions of higher education 

10 in expanding and improving the teacher education 

11 programs offered by the institutions. 

12 (b) SCHOLARSHIPS.— 

13 (1) IN GENERAL.—From the amounts author14 ized under subsection (h), the Secretary shall award 

15 scholarships to eligible students that shall be used 

16 by the eligible students to pay for qualifying ex17 penses at the institution of higher education of the 

18 eligible students’ choosing. 

19 (2) FUTURE EARLY CHILDHOOD EDUCATION

20 TEACHER SCHOLARSHIPS.—A scholarship awarded 

21 under this subsection shall be known as a ‘‘Future 

22 Early Childhood Education Teacher Scholarship’’. 

23 (3) AWARD BASIS.—In awarding scholarships 

24 under this section, the Secretary shall give pref25 erence to students who agree to satisfy the teaching 


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1 requirement under paragraph (5) by teaching in a 

2 low- or middle-income school or a rural school. 

3 (4) AMOUNT; DURATION.— 

4 (A) AMOUNT.—A scholarship award under 

5 this subsection shall be in an amount of not 

6 more than the average cost of attendance, as 

7 such term is defined in section 472 of the High8 er Education Act of 1965 (20 U.S.C. 10877ll), 

9 for a student attending a teacher preparation 

10 program at an institution of higher education in 

11 the State, as determined by the Secretary, in 

12 consultation with the State and the State pre13 kindergarten through grade 16 leadership col14 laborative described in section 303, if applica15 ble. 

16 (B) DURATION OF SCHOLARSHIP.—A 

17 scholarship awarded to an eligible student 

18 under this subsection shall be for the number of 

19 years necessary for the eligible student to earn 

20 a baccalaureate degree in early childhood edu21 cation on a full-time or part-time basis, except 

22 that— 

23 (i) in the case of a student pursuing 

24 a baccalaureate degree on a full-time basis, 

25 a scholarship under this subsection shall be 


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1 awarded for a period of not more than 4 

2 years; and 

3 (ii) in the case of a student pursuing 

4 a baccalaureate degree on a part-time 

5 basis, a scholarship under this subsection 

6 shall be awarded for a period of not more 

7 than 6 years. 

8 (5) TEACHING REQUIREMENT.—Each eligible 

9 student awarded a scholarship under this subsection 

10 shall enter into an agreement with the Secretary 

11 under which the eligible student agrees— 

12 (A) to teach early childhood education for 

13 a period of 4 school years following receipt of 

14 the baccalaureate degree for which the scholar15 ship was awarded; or 

16 (B) to work in employment that improves 

17 education, as determined by the Secretary pur18 suant to regulations, for a period of 4 years fol19 lowing receipt of such degree. 

20 (6) SCHOLARSHIP REPAYMENT PROVISIONS.—A 

21 recipient of a scholarship under this section who is 

22 determined by the Secretary to violate the agreement 

23 entered into under paragraph (5) shall be required 

24 to repay a pro rata amount of the scholarship award 

25 received, plus interest, on a schedule and at a rate 


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1 of interest to be prescribed by the Secretary pursu2 ant to regulations promulgated under this sub3 section. 

4 (c) GRANTS.— 

5 (1) PROGRAM AUTHORIZED.—From the 

6 amounts authorized under subsection (e), the Sec7 retary shall award grants to eligible institutions of 

8 higher education to enable the eligible institutions to 

9 expand and improve the teacher preparation pro10 grams of the eligible institutions. 

11 (2) APPLICATION.— 

12 (A) IN GENERAL.—An eligible institution 

13 of higher education desiring a grant under this 

14 subsection shall submit an application to the 

15 Secretary at such time, in such manner, and 

16 containing such information as the Secretary 

17 may require. 

18 (B) CONTENTS.—The application de19 scribed in subparagraph (A) shall include a de20 scription of the accountability measures that 

21 the eligible institution of higher education will 

22 use to evaluate the effectiveness of the teacher 

23 preparation program assisted by a grant under 

24 this section. 


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1 (3) REPORT.—Not later than 60 days after the 

2 last day of a grant under this subsection, an eligible 

3 institution of higher education receiving a grant 

4 under this subsection shall prepare and submit to 

5 the Secretary a report describing the results of the 

6 grant, using the accountability measures described 

7 in paragraph (2)(B). 

8 (4) DEFINITION OF ELIGIBLE INSTITUTION OF

9 HIGHER EDUCATION.—In this section, the term ‘‘eli10 gible institution of higher education’’ means an insti11 tution of higher education that offers a teacher prep12 aration program that satisfies the requirements for 

13 teacher licensure or certification in a State. 

14 (d) DEFINITIONS.—In this section: 

15 (1) ELIGIBLE STUDENT.—The term ‘‘eligible 

16 student’’ means a student who— 

17 (A) is a citizen of the United States; 

18 (B) is attending an institution of higher 

19 education; 

20 (C) is enrolled, or will be enrolled at the 

21 start of the next academic year, in a course of 

22 study at an institution of higher education that 

23 leads to a baccalaureate degree in early child24 hood education; 


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1 (D) demonstrates aptitude, as determined 

2 by the Secretary, in early childhood education; 

3 or 

4 (E) for each year of a scholarship under 

5 this section, demonstrates continued academic 

6 achievement and progress, as determined by the 

7 Secretary, toward completion of a baccalaureate 

8 degree in early childhood education. 

9 (2) INSTITUTION OF HIGHER EDUCATION.—The 

10 term ‘‘institution of higher education’’ has the 

11 meaning given the term in section 101(a) of the 

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

13 (3) QUALIFIED EXPENSES.—The term ‘‘quali14 fied expenses’’ means the tuition, books, fees, sup15 plies, and equipment required for a course of in16 struction leading to a baccalaureate degree in early 

17 childhood education at an institution of higher edu18 cation of the eligible student’s choosing. 

19 (4) SECRETARY.—The term ‘‘Secretary’’ means 

20 the Secretary of Education. 

21 (e) AUTHORIZATION OF APPROPRIATIONS.— 

22 (1) IN GENERAL.—There are authorized to be 

23 appropriated to carry out this section— 

24 (A) $375,000,000 for fiscal year 2007; 

25 (B) $750,000,000 for fiscal year 2008; 


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1 (C) $1,125,000,000 for fiscal year 2009; 

2 and 

3 (D) $1,500,000,000 for each of the fiscal 

4 years 2010 and 2011. 

5 (2) DISTRIBUTION.—From the amounts appro6 priated under paragraph (1) for a fiscal year, the 

7 Secretary shall use— 

8 (A) not less than 98 percent of such 

9 amounts to award scholarships under sub10 section (b) for the fiscal year; and 

11 (B) not more than 2 percent of such 

12 amounts to award grants under subsection (c) 

13 for the fiscal year. 

14 SEC. 203. FUTURE SCIENCE, TECHNOLOGY, ENGINEERING, 

15 AND MATHEMATICS TEACHER SCHOLAR16 SHIPS. 

17 (a) PURPOSE.—The purpose of this section is to in18 crease the number and percentage of citizens of the United 

19 States who earn baccalaureate degrees in science, tech20 nology, engineering, or mathematics by providing 25,000 

21 new competitive merit-based undergraduate scholarships 

22 to students who are citizens of the United States, for the 

23 purpose of enabling each such student to obtain a bacca24 laureate degree in science, technology, engineering, or 

25 mathematics at an institution of higher education. 


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1 (b) SCHOLARSHIPS.— 

2 (1) IN GENERAL.—From the amounts author3 ized under subsection (h), the Secretary shall award 

4 scholarships to eligible students that shall be used 

5 by the eligible students to pay for qualifying ex6 penses at the institution of higher education of the 

7 eligible students’ choosing. 

8 (2) FUTURE MATHEMATICS AND SCIENCE

9 TEACHER SCHOLARSHIPS.—A scholarship awarded 

10 under this section shall be known as a ‘‘Future 

11 Science, Technology, Engineering, or Mathematics 

12 Teacher Scholarship’’. 

13 (c) AWARD BASIS.—In awarding scholarships under 

14 this section, the Secretary shall give preference to students 

15 who agree to satisfy the teaching requirement under sub16 section (e) by teaching in a low- or middle-income school 

17 or a rural school. 

18 (d) AMOUNT; DURATION.— 

19 (1) AMOUNT.—A scholarship award under this 

20 section shall be in an amount of not more than the 

21 average cost of attendance, as such term is defined 

22 in section 472 of the Higher Education Act of 1965 

23 (20 U.S.C. 10877ll), for a student attending a bac24 calaureate degree program in science, technology, 

25 engineering, or mathematics at an institution of 


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1 higher education in the State, as determined by the 

2 Secretary, in consultation with the State. 

3 (2) DURATION OF SCHOLARSHIP.—A scholar4 ship awarded to an eligible student under this sec5 tion shall be for the number of years necessary for 

6 the eligible student to earn a baccalaureate degree in 

7 science, technology, engineering, or mathematics on 

8 a full-time or part-time basis, except that— 

9 (A) in the case of a student pursuing a 

10 baccalaureate degree on a full-time basis, a 

11 scholarship under this section shall be awarded 

12 for a period of not more than 4 years; and 

13 (B) in the case of a student pursuing a 

14 baccalaureate degree on a part-time basis, a 

15 scholarship under this section shall be awarded 

16 for a period of not more than 6 years. 

17 (e) TEACHING REQUIREMENT.—Each eligible stu18 dent awarded a scholarship under this section shall enter 

19 into an agreement with the Secretary under which the eli20 gible student agrees— 

21 (1)(A) to teach science, technology, engineering, 

22 or mathematics at an elementary school or sec23 ondary school for a period of 4 school years fol24 lowing receipt of the baccalaureate degree for which 

25 the scholarship was awarded; and 


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1 (B) to meet any teacher training requirements 

2 determined necessary by the State in order to carry 

3 out subparagraph (A); or 

4 (2) to work in employment that improves edu5 cation, as determined by the Secretary pursuant to 

6 regulations, for a period of 4 years following receipt 

7 of such degree. 

8 (f) SCHOLARSHIP REPAYMENT PROVISIONS.—A re9 cipient of a scholarship under this section who is deter10 mined by the Secretary to violate the agreement entered 

11 into under subsection (e) shall be required to repay a pro 

12 rata amount of the scholarship award received, plus inter13 est, on a schedule and at a rate of interest to be prescribed 

14 by the Secretary pursuant to regulations promulgated 

15 under this section. 

16 (g) DEFINITIONS.—In this section: 

17 (1) ELIGIBLE STUDENT.—The term ‘‘eligible 

18 student’’ means a student who— 

19 (A) is a citizen of the United States; 

20 (B) is attending an institution of higher 

21 education; 

22 (C) is enrolled, or will be enrolled at the 

23 start of the next academic year, in a course of 

24 study at an institution of higher education that 


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1 leads to a baccalaureate degree in science, tech2 nology, engineering, or mathematics; 

3 (D) demonstrates aptitude, as determined 

4 by the Secretary, in science, technology, engi5 neering, or mathematics; or 

6 (E) for each year of a scholarship under 

7 this section, demonstrates continued academic 

8 achievement and progress, as determined by the 

9 Secretary, toward completion of a baccalaureate 

10 degree in science, technology, engineering, or 

11 mathematics. 

12 (2) INSTITUTION OF HIGHER EDUCATION.—The 

13 term ‘‘institution of higher education’’ has the 

14 meaning given the term in section 101(a) of the 

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

16 (3) QUALIFIED EXPENSES.—The term ‘‘quali17 fied expenses’’ means the tuition, books, fees, sup18 plies, and equipment required for a course of in19 struction leading to a baccalaureate degree in 

20 science, technology, engineering, or mathematics at 

21 an institution of higher education of the eligible stu22 dent’s choosing. 

23 (4) SECRETARY.—The term ‘‘Secretary’’ means 

24 the Secretary of Education. 


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1 (h) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to carry out this sec3 tion— 

4 (1) $375,000,000 for fiscal year 2007; 

5 (2) $750,000,000 for fiscal year 2008; 

6 (3) $1,125,000,000 for fiscal year 2009; and 

7 (4) $1,500,000,000 for each of the fiscal years 

8 2010 and 2011. 

9 SEC. 204. FUTURE MASTER SCIENCE, TECHNOLOGY, ENGI10 NEERING, AND MATHEMATICS TEACHER 

11 SCHOLARSHIPS. 

12 (a) PURPOSE.—The purpose of this section is to in13 crease the number and percentage of citizens of the United 

14 States who are teachers and earn a master’s degree in 

15 science, technology, engineering, or mathematics by pro16 viding 25,000 new competitive merit-based graduate schol17 arships to students who are teachers and citizens of the 

18 United States, for the purpose of enabling each such stu19 dent to obtain a master’s degree in science, technology, 

20 engineering, or mathematics at an institution of higher 

21 education. 

22 (b) SCHOLARSHIPS.— 

23 (1) IN GENERAL.—From the amounts author24 ized under subsection (h), the Secretary shall award 

25 scholarships to eligible students that shall be used 


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1 by the eligible students to pay for qualifying ex2 penses at the institution of higher education of the 

3 eligible students’ choosing. 

4 (2) FUTURE MASTER MATHEMATICS AND

5 SCIENCE TEACHER SCHOLARSHIPS.—A scholarship 

6 awarded under this section shall be known as a ‘‘Fu7 ture Master Science, Technology, Engineering, and 

8 Mathematics Teacher Scholarship’’. 

9 (c) AWARD BASIS.—In awarding scholarships under 

10 this section, the Secretary shall give preference to students 

11 who agree to satisfy the teaching requirement under sub12 section (e) by teaching in a low- or middle-income school 

13 or a rural school. 

14 (d) AMOUNT; DURATION.— 

15 (1) AMOUNT.—A scholarship award under this 

16 section shall be in an amount of not more than the 

17 average cost of attendance, as such term is defined 

18 in section 472 of the Higher Education Act of 1965 

19 (20 U.S.C. 10877ll), for a student attending a mas20 ter’s degree program in science, technology, engi21 neering, or mathematics at an institution of higher 

22 education in the State, as determined by the Sec23 retary, in consultation with the State. 

24 (2) DURATION OF SCHOLARSHIP.—A scholar25 ship awarded to an eligible student under this secVerDate Aug 31 2005 00:39 Sep 16, 2006 Jkt 049200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S3902.IS S3902

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1 tion shall be for the number of years necessary for 

2 the eligible student to earn a master’s degree in 

3 science, technology, engineering, or mathematics on 

4 a full-time or part-time basis, except that— 

5 (A) in the case of a student pursuing a 

6 master’s degree on a full-time basis, a scholar7 ship under this section shall be awarded for a 

8 period of not more than 2 years; and 

9 (B) in the case of a student pursuing a 

10 master’s degree on a part-time basis, a scholar11 ship under this section shall be awarded for a 

12 period of not more than 4 years. 

13 (e) TEACHING REQUIREMENT.—Each eligible stu14 dent awarded a scholarship under this section shall enter 

15 into an agreement with the Secretary under which the eli16 gible student agrees— 

17 (1) to teach elementary school or secondary 

18 school science, technology, engineering, or mathe19 matics for a period of 4 school years following re20 ceipt of the master’s degree for which the scholar21 ship was awarded; or 

22 (2) to work in employment that improves edu23 cation, as determined by the Secretary pursuant to 

24 regulations, for a period of 4 years following receipt 

25 of such degree. 


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1 (f) SCHOLARSHIP REPAYMENT PROVISIONS.—A re2 cipient of a scholarship under this section who is deter3 mined by the Secretary to violate the agreement entered 

4 into under subparagraph (e) shall be required to repay a 

5 pro rata amount of the scholarship award received, plus 

6 interest, on a schedule and at a rate of interest to be pre7 scribed by the Secretary pursuant to regulations promul8 gated under this section. 

9 (g) DEFINITIONS.—In this section: 

10 (1) ELIGIBLE STUDENT.—The term ‘‘eligible 

11 student’’ means a student who— 

12 (A) is a citizen of the United States; 

13 (B) is attending an institution of higher 

14 education; 

15 (C) is or was an elementary school or sec16 ondary school teacher; 

17 (D) is enrolled, or will be enrolled at the 

18 start of the next academic year, in a course of 

19 study at an institution of higher education that 

20 leads to a master’s degree in science, tech21 nology, engineering, or mathematics; 

22 (E) demonstrates aptitude, as determined 

23 by the Secretary, in science, technology, engi24 neering, or mathematics; or 


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1 (F) for each year of a scholarship under 

2 this section, demonstrates continued academic 

3 achievement and progress, as determined by the 

4 Secretary, toward completion of a master’s de5 gree in science, technology, engineering, or 

6 mathematics. 

7 (2) INSTITUTION OF HIGHER EDUCATION.—The 

8 term ‘‘institution of higher education’’ has the 

9 meaning given the term in section 101(a) of the 

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

11 (3) QUALIFIED EXPENSES.—The term ‘‘quali12 fied expenses’’ means the tuition, books, fees, sup13 plies, and equipment required for a course of in14 struction leading to a master’s degree in science, 

15 technology, engineering, or mathematics at an insti16 tution of higher education of the eligible student’s 

17 choosing. 

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

19 the Secretary of Education. 

20 (h) AUTHORIZATION OF APPROPRIATIONS.—There 

21 are authorized to be appropriated to carry out this sec22 tion— 

23 (1) $375,000,000 for fiscal year 2007; 

24 (2) $750,000,000 for fiscal year 2008; 

25 (3) $1,125,000,000 for fiscal year 2009; and 


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1 (4) $1,500,000,000 for each of the fiscal years 

2 2010 and 2011. 

3 SEC. 205. FUTURE CRITICAL LANGUAGE TEACHER SCHOL4 ARSHIPS. 

5 (a) PURPOSE.—The purpose of this section is to in6 crease the number and percentage of citizens of the United 

7 States who earn baccalaureate degrees in critical lan8 guages by providing 25,000 new competitive merit-based 

9 undergraduate scholarships to students who are citizens 

10 of the United States, for the purpose of enabling each such 

11 student to obtain a baccalaureate degree in a critical lan12 guage at an institution of higher education. 

13 (b) SCHOLARSHIPS.— 

14 (1) IN GENERAL.—From the amounts author15 ized under subsection (h), the Secretary shall award 

16 scholarships to eligible students that shall be used 

17 by the eligible students to pay for qualifying ex18 penses at the institution of higher education of the 

19 eligible students’ choosing. 

20 (2) FUTURE CRITICAL LANGUAGE TEACHER

21 SCHOLARSHIP.—A scholarship awarded under this 

22 section shall be known as a ‘‘Future Critical Lan23 guage Teacher Scholarship’’. 

24 (3) LANGUAGE IMMERSION.—The Secretary 

25 shall ensure that language immersion is an integral 


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1 part of the education for which each scholarship 

2 under this section is awarded. 

3 (c) AWARD BASIS.—In awarding scholarships under 

4 this section, the Secretary shall give preference to students 

5 who agree to satisfy the teaching requirement under sub6 section (e) by teaching in a low- or middle-income school 

7 or a rural school. 

8 (d) AMOUNT; DURATION.— 

9 (1) AMOUNT.—A scholarship award under this 

10 section shall be in an amount of not more than the 

11 average cost of attendance, as such term is defined 

12 in section 472 of the Higher Education Act of 1965 

13 (20 U.S.C. 10877ll), for a student attending a bac14 calaureate program in a critical foreign language at 

15 an institution of higher education in the State, as 

16 determined by the Secretary, in consultation with 

17 the State. 

18 (2) DURATION OF SCHOLARSHIP.—A scholar19 ship awarded to an eligible student under this sec20 tion shall be for the number of years necessary for 

21 the eligible student to earn a baccalaureate degree in 

22 a critical language, except that— 

23 (A) in the case of a student pursuing a 

24 baccalaureate degree on a full-time basis, a 


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1 scholarship under this section shall be awarded 

2 for a period of not more than 4 years; and 

3 (B) in the case of a student pursuing a 

4 baccalaureate degree on a part-time basis, a 

5 scholarship under this section shall be awarded 

6 for a period of not more than 6 years. 

7 (e) TEACHING REQUIREMENT.—Each eligible stu8 dent awarded a scholarship under this section shall enter 

9 into an agreement with the Secretary under which the eli10 gible student agrees— 

11 (1)(A) to teach a critical language at an ele12 mentary school or secondary school for a period of 

13 4 school years following receipt of the baccalaureate 

14 degree for which the scholarship was awarded; and 

15 (B) to meet any teacher training requirements 

16 determined necessary by the State in order to carry 

17 out subparagraph (A); or 

18 (2) to work in employment that improves edu19 cation, as determined by the Secretary pursuant to 

20 regulations, for a period of 4 years following receipt 

21 of such degree. 

22 (f) SCHOLARSHIP REPAYMENT PROVISIONS.—A re23 cipient of a scholarship under this section who is deter24 mined by the Secretary to violate the agreement entered 

25 into under subsection (e) shall be required to repay a pro 


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1 rata amount of the scholarship award received, plus inter2 est, on a schedule and at a rate of interest to be prescribed 

3 by the Secretary pursuant to regulations promulgated 

4 under this section. 

5 (g) DEFINITIONS.—In this section: 

6 (1) CRITICAL LANGUAGE.—The term ‘‘critical 

7 language’’ means Chinese, Mandarin, Arabic, Hindi, 

8 Urdu, Russian, Korean, Farsi, or any other lan9 guage that the Secretary of Education determines is 

10 a critical language. 

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

12 student’’ means a student who— 

13 (A) is a citizen of the United States; 

14 (B) is attending an institution of higher 

15 education; 

16 (C) is enrolled, or will be enrolled at the 

17 start of the next academic year, in a course of 

18 study at an institution of higher education that 

19 leads to a baccalaureate degree in a critical lan20 guage; 

21 (D) demonstrates aptitude for foreign lan22 guage, as determined by the Secretary; or 

23 (E) for each year of a scholarship under 

24 this section, demonstrates continued academic 

25 achievement and progress, as determined by the 


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1 Secretary, toward completion of a baccalaureate 

2 degree in a critical language. 

3 (3) INSTITUTION OF HIGHER EDUCATION.—The 

4 term ‘‘institution of higher education’’ has the 

5 meaning given the term in section 101(a) of the 

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

7 (4) QUALIFIED EXPENSES.—The term ‘‘quali8 fied expenses’’ means— 

9 (A) the tuition, books, fees, supplies, and 

10 equipment required for a course of instruction 

11 leading to a baccalaureate degree in a critical 

12 language at an institution of higher education 

13 of the eligible student’s choosing; and 

14 (B) in the case of a student visiting a for15 eign country as part of a study abroad or other 

16 academic program— 

17 (i) the cost of a visa or other docu18 ment issued by a foreign country to permit 

19 the eligible student to visit the foreign 

20 country; and 

21 (ii) the cost of medical services rec22 ommend by the Secretary of State or the 

23 Director of the Centers for Disease Control 

24 and Prevention for an individual traveling 

25 to the foreign country. 


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

2 the Secretary of Education. 

3 (h) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to carry out this sec5 tion— 

6 (1) $375,000,000 for fiscal year 2007; 

7 (2) $750,000,000 for fiscal year 2008; 

8 (3) $1,125,000,000 for fiscal year 2009; and 

9 (4) $1,500,000,000 for each of the fiscal years 

10 2010 and 2011. 

11 SEC. 206. ASSISTING TEACHERS IN RURAL OR UNDER12 SERVED AREAS. 

13 (a) GRANTS TO STATES.—A Secretary of Education 

14 is authorized to award grants to State educational agen15 cies to enable the State educational agencies to carry out 

16 programs to encourage elementary school and secondary 

17 school teachers to teach in rural schools or underserved 

18 areas. Such programs may include— 

19 (1) providing cash incentives to encourage a 

20 teacher to teach in a rural school or an underserved 

21 area; and 

22 (2) loan forgiveness programs. 

23 (b) DEFINITION OF RURAL SCHOOL.—In this section 

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1 cale code of 7 or 8, or otherwise designated as a rural 

2 school, as determined by the Secretary. 

3 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to carry out this section 

5 $750,000,000 for fiscal year 2007 and each of the 4 suc6 ceeding fiscal years. 

7 SEC. 207. ADVANCED PLACEMENT AND INTERNATIONAL 

8 BACCALAUREATE PROGRAMS. 

9 (a) PURPOSE.—The purposes of this section are— 

10 (1) to educate an additional 70,000 Advanced 

11 Placement (AP) or International Baccalaureate (IB) 

12 and 80,000 pre-AP or pre-IB teachers over the 5- 

13 year period beginning with 2007; and 

14 (2) to increase the number of students who take 

15 AP and IB classes. 

16 (b) GRANTS AUTHORIZED.— 

17 (1) IN GENERAL.—From the amounts author18 ized under subsection (h), the Secretary shall award 

19 grants, on a competitive basis, to eligible recipients 

20 to enable the eligible recipients to carry out the ac21 tivities authorized in subsection (f). 

22 (2) LIMITATION.—An eligible recipient may not 

23 receive more than 1 grant at a time under this sec24 tion to undertake authorized activities within the 

25 same State. 


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1 (c) DEFINITIONS.—In this section: 

2 (1) ELIGIBLE RECIPIENT.—The term ‘‘eligible 

3 recipient’’ means a nonprofit educational entity with 

4 expertise in Advanced Placement or International 

5 Baccalaureate services. 

6 (2) MASTER TEACHER.—The term ‘‘master 

7 teacher’’ means a teacher— 

8 (A) with an advanced degree or an ad9 vanced certification; 

10 (B) who uses the most effective teaching 

11 methods in the teacher’s disciplines; and 

12 (C) who has shown demonstrable results of 

13 higher student achievement. 

14 (d) APPLICATION.— 

15 (1) IN GENERAL.—Each eligible recipient desir16 ing a grant under this section shall submit an appli17 cation to the Secretary at such time, in such man18 ner, and accompanied by such information as the 

19 Secretary may require. 

20 (2) CONTENTS.—Each application submitted 

21 pursuant to paragraph (1) shall— 

22 (A) describe the need for increased access 

23 to Advanced Placement or International Bacca24 laureate programs; 


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1 (B) provide for the involvement of business 

2 and community organizations in the activities to 

3 be assisted; 

4 (C) describe the availability of matching 

5 funds from non-Federal sources to assist in the 

6 activities authorized; and 

7 (D) demonstrate an intent to carry out ac8 tivities that target local educational agencies— 

9 (i) for which not less than 40 percent 

10 of the children served by the local edu11 cational agency are children from low-in12 come families; or 

13 (ii) with a total of less than 600 stu14 dents in average daily attendance at the 

15 schools that are served by the local edu16 cational agency and all of those schools are 

17 designated with a school locale code of 7 or 

18 8, or otherwise designated as a rural 

19 school, as determined by the Secretary. 

20 (e) PRIORITY CONSIDERATION.—The Secretary shall 

21 give priority to eligible recipients that submit an applica22 tion under subsection (d) that demonstrates a pervasive 

23 need to expand or develop Advanced Placement or Inter24 national Baccalaureate programs. 


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1 (f) AUTHORIZED ACTIVITIES.—An eligible recipient 

2 shall use the grant funds provided under this section for 

3 the following activities: 

4 (1) To identify and work with local educational 

5 agencies to expand or develop Advanced Placement 

6 or International Baccalaureate and pre-Advanced 

7 Placement or pre-International Baccalaureate pro8 grams in schools served by the local educational 

9 agencies. 

10 (2) To work with the local educational agencies 

11 to establish Advanced Placement or International 

12 Baccalaureate coordinators in each secondary school 

13 served by the local educational agencies. 

14 (3) To ensure master teachers provide training 

15 to prepare teachers to teach Advanced Placement or 

16 International Baccalaureate courses, which may in17 clude— 

18 (A) week-long summer institutes; and 

19 (B) 2-day seminars in the teachers’ dis20 ciplines each year for 4 years. 

21 (4) To ensure master teachers provide training 

22 to prepare teachers to teach pre-Advanced Place23 ment or pre-International Baccalaureate courses, 

24 which shall include at a minimum— 

25 (A) a 4-day summer institute; and 


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1 (B) 4 days on campus each year for 4 

2 years. 

3 (5) To provide stipends to teachers who satis4 factorily complete the Advanced Placement or Inter5 national Baccalaureate or pre-Advanced Placement 

6 or pre-International Baccalaureate training. 

7 (6) To provide test preparation sessions for stu8 dents taking Advanced Placement or International 

9 Baccalaureate classes. 

10 (7) To waive Advanced Placement or Inter11 national Baccalaureate examinations fees for stu12 dents who qualify for a free or reduced-price school 

13 lunch under the Richard B. Russell National School 

14 Lunch Act (42 U.S.C. 1751 et seq.). 

15 (g) EVALUATION AND ACCOUNTABILITY PLAN.— 

16 (1) IN GENERAL.—Each eligible recipient re17 ceiving a grant under this section shall develop an 

18 evaluation and accountability plan for activities as19 sisted under this section that includes rigorous ob20 jectives that measure the impact of activities as21 sisted under this section. 

22 (2) CONTENTS.—The plan developed pursuant 

23 to paragraph (1) shall include— 

24 (A) the number of students served by the 

25 eligible recipient who are taking pre-Advanced 


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1 Placement or pre-International Baccalaureate 

2 courses; 

3 (B) the number of students served by the 

4 eligible recipient who are taking Advanced 

5 Placement or International Baccalaureate 

6 courses; 

7 (C) the number of students served by the 

8 eligible recipient who take Advanced Placement 

9 or International Baccalaureate examinations; 

10 (D) the number of students served by the 

11 eligible recipients who pass Advanced Place12 ment or International Baccalaureate examina13 tions; and 

14 (E) the number of teachers trained in Ad15 vanced Placement or International Bacca16 laureate and pre-Advanced Placement or pre17 International Baccalaureate programs. 

18 (h) AUTHORIZATION OF APPROPRIATIONS.—There 

19 are authorized to be appropriated to carry out this sec20 tion— 

21 (1) $241,000,000 for fiscal year 2007; 

22 (2) $341,000,000 for fiscal year 2008; 

23 (3) $453,000,000 for fiscal year 2009; 

24 (4) $596,000,000 for fiscal year 2010; and 

25 (5) $731,000,000 for fiscal year 2011. 


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1 TITLE III—COMMITTING TO 

2 COMPETITIVENESS EARLY BY 

3 SUPPORTING UNIVERSAL 

4 VOLUNTARY PREKINDER5 GARTEN 

6 SEC. 301. FINDINGS. 

7 Congress finds the following: 

8 (1) Early education has been shown to increase 

9 high school graduation rates, reduce grade repeti10 tion, and decrease the need for remedial education. 

11 (2) Investment in quality early education has 

12 repeatedly shown high returns for each dollar in13 vested. 

14 (3) Children who complete early education are 

15 more likely to become responsible adults, establish 

16 stable families, and earn higher wages. 

17 SEC. 302. UNIVERSAL VOLUNTARY PREKINDERGARTEN BY 

18 2020. 

19 (a) PURPOSE.—It is the purpose of this section to 

20 double the number of students participating in universal 

21 voluntary prekindergarten programs during the 5-year pe22 riod beginning with 2007, with the intent of providing uni23 versal voluntary prekindergarten to all children by 2020. 

24 (b) GRANTS TO STATES.— 


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1 (1) IN GENERAL.—The Secretary is authorized 

2 to award a grant to a State educational agency to 

3 enable the State educational agency to pay the Fed4 eral share of the cost of establishing a universal vol5 untary prekindergarten program within the State. 

6 The universal voluntary prekindergarten program 

7 shall— 

8 (A) incorporate benchmarks to evaluate 

9 the effectiveness of the program; 

10 (B) include prekindergarten teacher devel11 opment; 

12 (C) address prekindergarten teacher-to13 student ratios or class sizes; 

14 (D) provide for a minimum of 6 hours of 

15 instruction per day; 

16 (E) encourage developmental education 

17 rather than just child care; 

18 (F) provide for progressive increases re19 garding the qualifications of prekindergarten 

20 teachers; and 

21 (G) be aligned with the standards, cur22 ricula, and child expectations for kindergarten 

23 and elementary school. 


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1 (2) MATCHING FUNDS.—The Federal share 

2 shall be 50 percent. The non-Federal share shall be 

3 provided from non-Federal sources. 

4 (c) STATE PLAN.—Each State educational agency de5 siring a grant under this section shall submit to the Sec6 retary a State plan for establishing a universal voluntary 

7 prekindergarten program in the State in accordance with 

8 this section. The plan shall— 

9 (1) demonstrate a need for the establishment, 

10 enhancement, or expansion of a universal voluntary 

11 prekindergarten program; 

12 (2) describe how the State educational agency 

13 collaborates with local early childhood councils and 

14 agencies; 

15 (3) provide an assurance that each individual 

16 hired to teach in the universal voluntary prekinder17 garten program is qualified to teach children at the 

18 prekindergarten level; 

19 (4) provide an assurance that the ratio of 

20 teachers or child development specialists to children 

21 in the universal voluntary prekindergarten program 

22 shall not exceed 1 to 10; 

23 (5) provide a description of how funds will be 

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1 cate or supplant, early childhood programs serving 

2 eligible children that exist in the State; 

3 (6) describe how the universal voluntary pre4 kindergarten program will meet the diverse needs of 

5 children, ages 3 through 5, in the State who are not 

6 enrolled in kindergarten, including children with dis7 abilities or whose native language is other than 

8 English; 

9 (7) describe how the State educational agency 

10 will collaborate with local schools to ensure a smooth 

11 transition for participating students from early 

12 childhood education to kindergarten and early ele13 mentary education; 

14 (8) describe the results the universal voluntary 

15 prekindergarten program is intended to achieve, and 

16 what tools will be used to measure the progress in 

17 attaining those results; and 

18 (9) describe how the State educational agency 

19 will phase in access to universal voluntary prekinder20 garten, beginning with children at risk of academic 

21 failure. 

22 (d) USES OF FUNDS.— 

23 (1) IN GENERAL.—A State educational agency 

24 that receives a grant award under this part shall use 

25 funds received through the grant to pay the Federal 


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1 share of the costs of establishing, enhancing, or ex2 panding a universal voluntary prekindergarten pro3 gram for children, ages 3 through 5, who are not en4 rolled in kindergarten, including— 

5 (A) providing a program that focuses on— 

6 (i) the developmental needs of partici7 pating children, including— 

8 (I) language development; 

9 (II) science; 

10 (III) creative arts; 

11 (IV) social and emotional needs; 

12 (V) children’s approaches to 

13 learning; and 

14 (VI) physical and health develop15 ment; and 

16 (ii) using research-based approaches 

17 that build on competencies that lead to 

18 school success, particularly in language 

19 and literacy development in reading and 

20 mathematics; 

21 (B) paying the costs of purchasing edu22 cation material, such as books, necessary to 

23 provide a high-quality program; 

24 (C) pursuing accreditation by a national 

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1 ence in accreditation of prekindergarten pro2 grams, to be obtained not later than 3 years 

3 after the date of receipt of funds under this sec4 tion; 

5 (D) helping prekindergarten teachers pur6 sue and attain the credential and degree re7 quirements established by the State and pro8 viding a stipend for attaining educational or 

9 professional development; and 

10 (E) meeting the needs of working parents. 

11 (2) PERMISSIBLE USE OF FUNDS.—An agency 

12 or eligible prekindergarten provider that receives a 

13 grant award under this part may use funds received 

14 through the grant to pay for transporting students 

15 to and from a universal voluntary prekindergarten 

16 program. 

17 (e) SUPPLEMENT NOT SUPPLANT.—Grant funds 

18 awarded under this section shall be used to supplement, 

19 not supplant, funds provided under the Head Start Act 

20 (42 U.S.C. 9831 et seq.). 

21 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be appropriated to carry out this sec23 tion— 

24 (1) $1,400,000,000 for fiscal year 2007; 

25 (2) $2,800,000,000 for fiscal year 2008; 


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1 (3) $4,200,000,000 for fiscal year 2009; 

2 (4) $5,600,000,000 for fiscal year 2010; and 

3 (5) $7,000,000,000 for fiscal year 2011. 

4 SEC. 303. PREKINDERGARTEN THROUGH GRADE 16 (PK–16) 

5 COLLABORATIVES. 

6 (a) PROGRAM AUTHORIZED.— 

7 (1) IN GENERAL.—From amounts appropriated 

8 under subsection (e), the Secretary is authorized to 

9 award, on a competitive basis, grants to eligible 

10 State educational agencies for the purpose of ena11 bling such agencies to establish State prekinder12 garten through grade 16 leadership collaboratives 

13 (referred to in this section as ‘‘collaboratives’’) 

14 that— 

15 (A) convene stakeholders in prekinder16 garten through grade 16 (referred to in this 

17 section as ‘‘PK–16’’) education within the State 

18 and create a forum for identifying and delib19 erating on educational issues that transcend the 

20 exclusive domain of early childhood education, 

21 kindergarten through grade 12 education, high22 er education, and workforce development; 

23 (B) recommend ways to align educational 

24 curricula, assessments, programs, and experi25 ences for students from ages 3 to 21; 


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1 (C) develop a plan to expand children’s ac2 cess to quality, voluntary prekindergarten, be3 ginning with children most at risk of academic 

4 failure, and mandatory kindergarten programs; 

5 and 

6 (D) design and implement integrated PK– 

7 16 data systems that will allow the State to 

8 track the progress of individual students from 

9 prekindergarten through grade 12 and into 

10 higher education and the workforce. 

11 (2) DURATION.—The Secretary shall award 

12 grants under this section for a period of not more 

13 than 5 years. 

14 (b) DEFINITIONS.—In this section— 

15 (1) ELIGIBLE STATE EDUCATIONAL AGENCY.— 

16 The term ‘‘eligible State educational agency’’ means 

17 a State educational agency that provides assurances 

18 to the Secretary that the agency will use grant funds 

19 under this section to form a collaborative that in20 cludes as members not less than 1 representative 

21 from each of the following: 

22 (A) The Governor of the State, who shall 

23 play a leading role in the collaborative. 

24 (B) The chief executive officer of the State 

25 public institution of higher education system or 


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1 the executive officer of the State higher edu2 cation coordinating board. 

3 (C) The chief State educational agency 

4 school officer, such as the State kindergarten 

5 through grade 12 superintendent. 

6 (D) A representative of relevant external 

7 stakeholder groups, including civil rights, busi8 ness, civic, teacher, parent, school adminis9 trator, and child advocacy organizations. 

10 (E) The State official responsible for eco11 nomic development, if such a position exists. 

12 (2) COLLEGE PREPARATORY CURRICULUM.— 

13 The term ‘‘college preparatory curriculum’’ means a 

14 rigorous core of course requirements intended to 

15 prepare secondary students for high level employ16 ment and higher education and shall include 4 years 

17 of English, 3 years of mathematics (including alge18 bra I, algebra II, and geometry), and 3 years of lab19 oratory science (such as biology, physics, and chem20 istry). 

21 (c) APPLICATION.— 

22 (1) IN GENERAL.—Each eligible State edu23 cational agency desiring a grant under this section 

24 shall submit an application to the Secretary at such 


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1 time, in such manner, and accompanied by such in2 formation as the Secretary may reasonably require. 

3 (2) CONTENTS.—Each application submitted 

4 under paragraph (1) shall— 

5 (A) be informed by the opinions of the 

6 larger education and business community, in7 cluding parents, students, school superintend8 ents, teachers, administrators, and business 

9 leaders, in the development of the curriculum 

10 and skills students should know and be able to 

11 perform; and 

12 (B) include an assurance that the collabo13 rative will develop a plan to leverage additional 

14 State, local, and other funds to support— 

15 (i) expansion of access to voluntary, 

16 quality prekindergarten programs; 

17 (ii) phased-in implementation of a 

18 mandatory full-day kindergarten policy; 

19 and 

20 (iii) alignment of curricula, assess21 ments, and programs for PK–16 children. 

22 (d) USE OF FUNDS.— 

23 (1) REQUIRED ACTIVITIES.—An eligible State 

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1 tion shall use grant funds provided under subsection 

2 (e) to carry out all of the following activities: 

3 (A) Establish a collaborative and a time 

4 line for accomplishing all activities that will be 

5 carried out with grant funds this section. 

6 (B) Analyze the State’s level of PK–16 ac7 cess, quality, and program alignment. 

8 (C) Develop a plan, where appropriate, for 

9 the State to expand access to— 

10 (i) voluntary, quality public and pri11 vate prekindergarten programs for all chil12 dren ages 3 and 4; and 

13 (ii) mandatory full-day kindergarten 

14 programs for all 5 year olds. 

15 (D) Analyze the State’s level of success in 

16 preparing students for higher education and the 

17 21st century labor market by using the data 

18 produced by the system described in subpara19 graph (E), and other information as appro20 priate. 

21 (E) Design and implement an integrated 

22 PK–16 data system that will allow the State to 

23 ascertain the progress of students from pre24 kindergarten through grade 12 and into higher 


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1 education and the workforce. The data system 

2 shall— 

3 (i) include— 

4 (I) prekindergarten student en5 rollment data; 

6 (II) student-level assessment 

7 scores; 

8 (III) the type of curriculum in 

9 which a student is enrolled; 

10 (IV) secondary school course en11 rollment data including data on the 

12 number of students enrolling in Ad13 vanced Placement (AP) and Inter14 national Baccalaureate (IB) courses; 

15 (V) student persistence and grad16 uation rates in secondary education; 

17 and 

18 (VI) the rates of student attend19 ance at institutions of higher edu20 cation; and the types of higher edu21 cation programs pursued by students; 

22 and 

23 (ii) allow the eligible State educational 

24 agency to analyze correlations between— 


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1 (I) enrollment, including enroll2 ment in a school or local educational 

3 agency identified for improvement 

4 under subsection (a) or subsection (c), 

5 respectively, of section 1116 of the El6 ementary and Secondary Education 

7 Act of 1965 (20 U.S.C. 6316); and 

8 (II) course-taking patterns in 

9 prekindergarten through grade 12 and 

10 outcomes in subsequent grades and 

11 beyond, including— 

12 (aa) the need for remedial 

13 work in subsequent grades; 

14 (bb) the need for remedial 

15 work during the summer; 

16 (cc) academic suspension or 

17 expulsion; 

18 (dd) high school graduation; 

19 (ee) entry into higher edu20 cation; 

21 (ff) the need for remediation 

22 coursework in higher education; 

23 (gg) persistence in higher 

24 education; 


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1 (hh) graduation from higher 

2 education; and 

3 (ii) entry into and retention 

4 in the workplace. 

5 (F) Supplement the salaries of prekinder6 garten teachers. 

7 (G) Create opportunities for ongoing, in8 service professional development for teachers 

9 within and across grade levels. 

10 (H) Support the provision of comprehen11 sive health and social services to children in 

12 prekindergarten who are at risk of academic 

13 failure. 

14 (I) Ensure that any available data does not 

15 allow for individual student identification, and 

16 that all data collection shall be in accordance 

17 with section 444 of the General Education Pro18 visions Act (20 U.S.C. 1232g; commonly re19 ferred to as the Family Educational Rights and 

20 Privacy Act of 1974). 

21 (J) Examine the desirability of an agree22 ment between the eligible State educational 

23 agency and the higher education system in the 

24 State on a common assessment or assessments 

25 that— 


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1 (i) shall follow established guidelines 

2 to guarantee reliability and validity; 

3 (ii) shall provide adequate accom4 modations for students who are limited 

5 English proficient and students with dis6 abilities; and 

7 (iii) may also serve as a placement ex8 amination, exit examination, or end of 

9 course examination that measures sec10 ondary students’ preparedness to succeed 

11 in postsecondary, credit-bearing courses. 

12 (2) PERMISSIBLE ACTIVITIES.—An eligible 

13 State educational agency receiving a grant under 

14 this section may use grant funds provided under 

15 subsection (e) to develop multiple forms of assess16 ment that provide information on whether children 

17 are progressing toward academic and social expecta18 tions set out for them in prekindergarten through 

19 grade 3. 

20 (3) PLANNING AND IMPLEMENTATION.—An eli21 gible State educational agency receiving a grant 

22 under this section may use grant funds received for 

23 the first fiscal year to form the collaborative and 

24 plan the activities described in paragraphs (1) and 

25 (2). Grant funds received for subsequent fiscal years 


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1 shall be used for the implementation of the activities 

2 described in paragraphs (1) and (2). 

3 (4) REPORTS.—An eligible State educational 

4 agency receiving a grant under this section shall 

5 submit a biennial report to the Secretary on— 

6 (A) the extent of alignment and articula7 tion across the State’s systems of public edu8 cation for prekindergarten through grade 16; 

9 (B) the strengths and weaknesses of the 

10 State in transitioning students from the pre11 kindergarten through grade 12 education sys12 tem into higher education and the labor market; 

13 (C) the quality and rigor of the State’s col14 lege preparatory curriculum, including rec15 ommendations to the State regarding the sub16 stance of the curriculum as well as the accessi17 bility of the curriculum to all students in pre18 kindergarten through grade 12; and 

19 (D) the strengths and weaknesses of the 

20 State in recruiting, retaining, and supporting 

21 qualified teachers, including whether the State 

22 needs to recruit additional teachers at the sec23 ondary level for specific subjects, or particular 

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1 ommendations for setting and achieving goals 

2 in this pursuit. 

3 (5) PUBLICATION.—An eligible State edu4 cational agency submitting a report in accordance 

5 with paragraph (1) shall publish and widely dissemi6 nate the report to the public. 

7 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be appropriated to carry out this section 

9 $400,000,000 for fiscal year 2007, and such sums as may 

10 be necessary for each succeeding fiscal year. 

11 SEC. 304. ADVANCING EARLY CHILDHOOD EDUCATION 

12 TEACHER QUALIFICATIONS. 

13 (a) IN GENERAL.—Each State receiving federal edu14 cation funds shall ensure that, not later 5 years after the 

15 date of enactment of this Act, each early childhood edu16 cation teacher hired after such date in the State has a 

17 bachelor’s degree in early childhood education. 

18 (b) STATE PLAN.—Each State that receives Federal 

19 education funds shall submit to the Secretary of Edu20 cation a plan for raising the qualifications of early child21 hood education teachers in the State who do not have a 

22 bachelor’s degree. 


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1 TITLE IV—ENCOURAGING EN2 RICHMENT ACTIVITIES BY 

3 SUPPORTING MIDDLE 

4 SCHOOLS AND SECONDARY 

5 SCHOOLS 

6 SEC. 401. FINDINGS. 

7 Congress finds the following: 

8 (1) On school days, the hours between 3:00 pm 

9 and 6:00 pm are the peak hours for juvenile crime 

10 and experimentation with drugs, alcohol, cigarettes, 

11 and sexual activity. 

12 (2) Only 6,500,000 children in kindergarten 

13 through grade 12 (11 percent of the school-age pop14 ulation) spend time in afterschool programs. 

15 (3) Teens who do not participate in afterschool 

16 programs are nearly 3 times more likely to skip 

17 classes than teens who do participate. Teens who do 

18 not participate in afterschool programs are also 3 

19 times more likely to use marijuana or other drugs, 

20 and are more likely to drink alcohol, smoke ciga21 rettes, and engage in sexual activity. 

22 SEC. 402. ADVANCING KNOWLEDGE WITH INTERNSHIPS 

23 AND SUMMER PROGRAMS. 

24 (a) GRANTS AUTHORIZED.—The Secretary of Edu25 cation is authorized to award grants to State educational 


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1 agencies to enable the State educational agencies to award 

2 grants to local educational agencies for internships and 

3 summer programs for middle and secondary school stu4 dents. 

5 (b) LOCAL EDUCATIONAL AGENCY USE OF

6 FUNDS.—Each local educational agency receiving a grant 

7 under this section shall use the grant funds to provide sub8 grants to public elementary schools, public secondary 

9 schools, or nonprofit organizations to enable the schools 

10 and organizations to carry out internships and summer 

11 programs for middle school and secondary school students. 

12 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated to carry out this section 

14 $200,000,000 for fiscal year 2007, $400,000,000 for fis15 cal year 2008, and $600,000,000 for each of the fiscal 

16 years 2009 through 2011. 

17 SEC. 403. INSIGHT, PARTNERSHIP, AND INITIATIVE 

18 GRANTS. 

19 (a) GRANTS TO STATES.—The Secretary is author20 ized to award grants to State educational agencies to en21 able the State educational agencies to carry out men22 toring, afterschool, and enrichment programs, which may 

23 include college preparation programs, arts education, 

24 crime or drug abuse prevention programs (including meth25 amphetamine abuse prevention), or vocational training. 


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1 (b) INSIGHT, PARTNERSHIP, AND INITIATIVE

2 GRANTS.—A grant awarded under this section shall be 

3 known as an ‘‘Insight, Partnership, and Initiative Grant’’ 

4 or an ‘‘IPI Grant’’. 

5 (c) SUPPLEMENT NOT SUPPLANT.—Funds made 

6 available under this section shall be used to supplement, 

7 and not supplant, other Federal, State, or local funds that 

8 would otherwise be expended to carry out the activities 

9 described in this section. 

10 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

11 are authorized to be appropriated to carry out this section 

12 $200,000,000 for fiscal year 2007, $400,000,000 for fis13 cal year 2008, and $600,000,000 for each of the fiscal 

14 years 2009 through 2011. 

15 TITLE V—COMMITTING TO EDU16 CATION FOR A COMPETITIVE 

17 ECONOMY 

18 SEC. 501. FINDINGS. 

19 Congress makes the following findings: 

20 (1) The youth of the United States must be 

21 qualified for the jobs of the 21st century. 

22 (2) The Bureau of Labor Statistics predicts a 

23 significantly rising number of American jobs requir24 ing technically trained workers. 


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1 (3) United States secondary schools have con2 sistently fared poorly on international science and 

3 mathematics tests, compared with their counterparts 

4 in other developed countries. 

5 SEC. 502. SUMMER SCIENCE AND ENGINEERING INSTI6 TUTES. 

7 (a) GRANTS AUTHORIZED.—The Secretary of Edu8 cation is authorized to award grants to State educational 

9 agencies to enable the State educational agencies to award 

10 grants to elementary schools and secondary schools to en11 able the elementary schools and secondary schools to carry 

12 out a summer science and engineering institute for sec13 ondary school students. 

14 (b) PARTNERSHIP AGREEMENT.—In order for an ele15 mentary school or secondary school to be eligible to receive 

16 a grant under this section the school shall enter into a 

17 partnership agreement with a private sector research or 

18 educational entity for the purpose of carrying out the sum19 mer science and engineering institute assisted under this 

20 section. 

21 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be appropriated to carry out this section 

23 $800,000,000 for fiscal year 2007 and such sums as may 

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


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1 SEC. 503. SPECIALTY SCIENCE AND MATHEMATICS SEC2 ONDARY SCHOOLS. 

3 (a) GRANTS AUTHORIZED.—The Secretary of Edu4 cation is authorized to award grants to local educational 

5 agencies to enable the local educational agencies to pay 

6 the Federal share of the cost of establishing and operating 

7 specialty science and mathematics secondary schools. 

8 (b) DEFINITION OF SPECIALTY SCIENCE AND MATH9 EMATICS SECONDARY SCHOOL.—The term ‘‘specialty 

10 science and mathematics secondary school’’ means a sec11 ondary school that— 

12 (1) specializes in science and mathematics; 

13 (2) provides not less than 6 periods per day de14 voted to academic coursework with a focus on 

15 science and mathematics instruction; and 

16 (3) admits students on a competitive basis and 

17 on the basis of merit. 

18 (c) FEDERAL SHARE; NON-FEDERAL SHARE.—The 

19 Federal share shall be 50 percent. The non-Federal share 

20 shall be provided from non-Federal sources. 

21 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

22 authorized to be appropriated to carry out this section 

23 $500,000,000 for the period of fiscal years 2007 through 

24 2011. 


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1 SEC. 504. SCIENCE, TECHNOLOGY, ENGINEERING, AND 

2 MATHEMATICS FOR TOMORROW PROGRAM 

3 ESTABLISHED. 

4 (a) DEFINITIONS.—In this section: 

5 (1) COSTS OF ATTENDANCE.—The term ‘‘cost 

6 of attendance’’ has the meaning given the term in 

7 section 472 of the Higher Education Act of 1965 

8 (20 U.S.C. 1087ll). 

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

10 student’’ means a student who— 

11 (A) is a citizen of the United States; 

12 (B) is enrolled full-time— 

13 (i) in a program of study leading to a 

14 baccalaureate degree in science, tech15 nology, engineering, or mathematics at an 

16 institution of higher education; or 

17 (ii) in the first or second year of a 

18 program of study leading to a bacca19 laureate degree at an institution of higher 

20 education and certifies the student’s intent 

21 to pursue a baccalaureate degree in 

22 science, technology, engineering, or mathe23 matics; and 

24 (C) maintains an acceptable level of aca25 demic standing at the institution of higher edu26 cation. 


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1 (3) INSTITUTION OF HIGHER EDUCATION.—The 

2 term ‘‘institution of higher education’’ shall have the 

3 meaning given the term in section 101(a) of the 

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

5 (b) PAYMENTS REQUIRED.—For each academic year, 

6 the Secretary shall pay to each eligible student such sums 

7 as may be necessary to pay the costs of attendance for 

8 such student to enroll full-time in a program of study lead9 ing to a baccalaureate degree in science, technology, engi10 neering, or mathematics at the institution of higher edu11 cation of the eligible student’s choice for the academic 

12 year. 

13 (c) WORK REQUIREMENT.—In order to receive a pay14 ment subsection (b), each eligible student shall enter into 

15 an agreement with the Secretary under which the eligible 

16 student agrees to work in a field related to the student’s 

17 program of study for a period of 4 school years following 

18 receipt of the baccalaureate degree for which the scholar19 ship was awarded. 

20 (d) REPAYMENT PROVISIONS.—A recipient of a pay21 ment under this section who is determined by the Sec22 retary to violate the agreement entered into under sub23 paragraph (c) shall be required to repay a pro rata amount 

24 of the payment received, plus interest, on a schedule and 


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1 at a rate of interest to be prescribed by the Secretary pur2 suant to regulations promulgated under this section. 

3 (e) REGULATIONS.—The Secretary shall promulgate 

4 regulations under this section as necessary or appropriate 

5 to carry out this section, including regulations regarding 

6 the acceptable level of academic standing described in sub7 section (a)(2)(C). 

8 SEC. 505. FEDERAL PELL GRANTS. 

9 Section 401(b)(2)(A) of the Higher Education Act of 

10 1965 (20 U.S.C. 1070a(b)(2)(A)) is amended to read as 

11 follows: 

12 ‘‘(2)(A) The amount of the Federal Pell Grant for 

13 a student eligible under this part shall be $6,000 for each 

14 of the academic years 2007–2008 through 2013–2014, 

15 less an amount equal to the amount determined to be the 

16 expected family contribution with respect to that student 

17 for that year.’’. 

18 SEC. 506. RESEARCH GRANTS FOR EARLY CAREER SCI19 ENTISTS. 

20 (a) IN GENERAL.—The Secretary of Education is au21 thorized to award 600 grants to individual scientists who 

22 are less than 40 years old in order to continue and expand 

23 the research conducted by the scientists and to support 

24 the scientists in the early stages of their careers. 


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1 (b) AMOUNT AND DURATION OF GRANTS.—A grant 

2 awarded under this section shall be in the amount of 

3 $32,000 and shall be distributed to the recipient in install4 ments over a 2-year period. 

5 (c) PREFERENCE.—In awarding grants under sub6 section (a), the Secretary shall give a preference to sci7 entists who are representatives of populations underrep8 resented in the scientific fields. 

9 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

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

11 $19,200,000 for the period of fiscal years 2007 through 

12 2011. 

13 TITLE VI—RESTORING OUR 

14 COMMITMENT TO INDIAN 

15 EDUCATION 

16 SEC. 601. FINDINGS. 

17 Congress makes the following findings: 

18 (1) Indian education in the United States is 

19 chronically and systemically under-funded. 

20 (2) Globally competitive tribally controlled col21 leges and universities are critical to the advancement 

22 of Native Americans in the United States. 

23 (3) Native language and culture education is a 

24 critical component of Indian school curricula. 


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1 SEC. 602. JOHNSON-O’MALLEY GRANTS. 

2 There are authorized to be appropriated, and there 

3 are appropriated, out of any money in the Treasury not 

4 otherwise appropriated, to carry out section 1 of the Act 

5 of April 16, 1934 (48 Stat. 596, Chapter 147; 25 U.S.C. 

6 452) (commonly known as the Johnson-O’Malley Act) the 

7 following amounts: 

8 (1) $24,000,000 for fiscal year 2007. 

9 (2) $26,000,000 for fiscal year 2008. 

10 (3) $28,000,000 for fiscal year 2009. 

11 (4) $30,000,000 for fiscal year 2010. 

12 (5) $33,000,000 for fiscal year 2011. 

13 SEC. 603. APPROPRIATIONS FOR INDIAN HIGHER EDU14 CATION. 

15 (a) TRIBALLY CONTROLLED COLLEGE OR UNIVER16 SITY ASSISTANCE ACT OF 1978.—The Tribally Controlled 

17 College or University Assistance Act of 1978 (25 U.S.C. 

18 1801 et seq.) is amended— 

19 (1) in section 108(a)(2) (25 U.S.C. 

20 1808(a)(2)), by striking ‘‘$6,000’’ and inserting 

21 ‘‘$7,000’’; and 

22 (2) in section 110(a) (25 U.S.C. 1810(a)), by 

23 striking paragraph (2) and inserting the following: 

24 ‘‘(2) There is authorized to be appropriated, and 

25 there is appropriated, out of any money in the Treasury 


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1 not otherwise appropriated, to carry out section 107 the 

2 following amounts: 

3 ‘‘(A) $65,000,000 for fiscal year 2007. 

4 ‘‘(B) $71,000,000 for fiscal year 2008. 

5 ‘‘(C) $78,000,000 for fiscal year 2009. 

6 ‘‘(D) $85,000,000 for fiscal year 2010. 

7 ‘‘(E) $93,000,000 for fiscal year 2011.’’. 

8 (b) NAVAJO COMMUNITY COLLEGE ACT.—The mat9 ter preceding subparagraph (A) of section 5(b)(1) of the 

10 Navajo Community College Act (25 U.S.C. 640c–1(b)(1) 

11 et seq.) is amended to read as follows: 

12 ‘‘(2)(A) There are authorized to be appro13 priated, and there are appropriated, out of any 

14 money in the Treasury not otherwise appropriated, 

15 for grants to the Navajo Community College 

16 $17,700,000 for fiscal year 2007, $19,500,000 for 

17 fiscal year 2008, $21,500,000 for fiscal year 2009, 

18 $23,700,000 for fiscal year 2010, and $26,100,000 

19 for fiscal year 2011, to pay expenses incurred for— 

20 ’’. 

21 SEC. 604. LANGUAGE IMMERSION PROGRAMS. 

22 Subsection (e) of section 816 of the Native American 

23 Programs Act of 1974 (42 U.S.C. 2992d) is amended to 

24 read as follows: 


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1 ‘‘(e)(1) There are authorized to be appropriated, and 

2 there are appropriated, out of any money in the Treasury 

3 not otherwise appropriated, to carry out section 803C— 

4 ‘‘(A) $51,000,000 for fiscal year 2007, of which 

5 $6,000,000 shall be available for language immer6 sion programs under such section; 

7 ‘‘(B) $56,000,000 for fiscal year 2008, of which 

8 $7,000,000 shall be available for language immer9 sion programs under such section; 

10 ‘‘(C) $62,000,000 for fiscal year 2009, of which 

11 $8,000,000 shall be available for language immer12 sion programs under such section; 

13 ‘‘(D) $68,000,000 for fiscal year 2010, of which 

14 $9,000,000 shall be available for language immer15 sion programs under such section; and 

16 ‘‘(E) $79,000,000 for fiscal year 2011, of which 

17 $11,000,000 shall be available for language immer18 sion programs under such section. 

19 ‘‘(2) In this subsection the term ‘language immersion 

20 program’ means a site-based educational program that 

21 provides a complete education through a Native American 

22 language with the specific goal of strengthening, revital23 izing, or reestablishing a Native American language and 

24 culture of daily life.’’. 


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1 TITLE VII—LIFE LONG 

2 LEARNING 

3 SEC. 701. FINDINGS. 

4 Congress makes the following findings: 

5 (1) Education is important to every American 

6 at all stages of life. 

7 (2) Today’s economy requires workers to con8 tinue to improve their skills, knowledge, and abili9 ties. 

10 SEC. 702. JOB SKILL TRAINING PARTNERSHIPS. 

11 Title III of the Higher Education Act of 1965 (20 

12 U.S.C. 1051 et seq.) is amended— 

13 (1) by redesignating part F as part G; and 

14 (2) by inserting after part E the following: 

15 ‘‘PART VI—JOB SKILL TRAINING 

16 ‘‘Subpart A—Job Skill Training in High-Growth 

17 Occupations or Industries 

18 ‘‘SEC. 371. JOB SKILL TRAINING IN HIGH-GROWTH OCCUPA19 TIONS OR INDUSTRIES. 

20 ‘‘(a) GRANTS AUTHORIZED.—The Secretary is au21 thorized to award grants, on a competitive basis, to eligible 

22 partnerships to enable the eligible partnerships to provide 

23 relevant job skill training in high-growth industries or oc24 cupations. 

25 ‘‘(b) DEFINITIONS.—In this section: 


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1 ‘‘(1) ELIGIBLE PARTNERSHIP.—The term ‘eligi2 ble partnership’ means a partnership— 

3 ‘‘(A) between an institution of higher edu4 cation and a local board (as such term is de5 fined in section 101 of the Workforce Invest6 ment Act of 1998); or 

7 ‘‘(B) if an institution of higher education 

8 is located within a State that does not operate 

9 local boards, between the institution of higher 

10 education and a State board (as such term is 

11 defined in section 101 of the Workforce Invest12 ment Act of 1998). 

13 ‘‘(2) NONTRADITIONAL STUDENT.—The term 

14 ‘nontraditional student’ means a student who— 

15 ‘‘(A) is independent, as defined in section 

16 480(d); 

17 ‘‘(B) attends an institution of higher edu18 cation— 

19 ‘‘(i) on less than a full-time basis; 

20 ‘‘(ii) via evening, weekend, modular, 

21 or compressed courses; or 

22 ‘‘(iii) via distance learning methods; 

23 or 

24 ‘‘(C) has delayed enrollment at an institu25 tion of higher education. 


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

2 The term ‘institution of higher education’ means an 

3 institution of higher education, as defined in section 

4 101(b), that offers a 1- or 2-year program of study 

5 leading to a degree or certificate. 

6 ‘‘(c) APPLICATION.— 

7 ‘‘(1) IN GENERAL.—Each eligible partnership 

8 that desires a grant under this section shall submit 

9 an application to the Secretary at such time, in such 

10 manner, and accompanied by such additional infor11 mation as the Secretary may require. 

12 ‘‘(2) CONTENTS.—Each application submitted 

13 under paragraph (1) shall include a description of— 

14 ‘‘(A) how the eligible partnership, through 

15 the institution of higher education, will provide 

16 relevant job skill training for students to enter 

17 high-growth occupations or industries; 

18 ‘‘(B) local high-growth occupations or in19 dustries; and 

20 ‘‘(C) the need for qualified workers to meet 

21 the local demand of high-growth occupations or 

22 industries. 

23 ‘‘(d) AWARD BASIS.—In awarding grants under this 

24 section, the Secretary shall— 


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1 ‘‘(1) ensure an equitable distribution of grant 

2 funds under this section among urban and rural 

3 areas of the United States; and 

4 ‘‘(2) take into consideration the capability of 

5 the institution of higher education— 

6 ‘‘(A) to offer relevant, high quality instruc7 tion and job skill training for students entering 

8 a high-growth occupation or industry; 

9 ‘‘(B) to involve the local business commu10 nity and to place graduates in the community 

11 in employment in high-growth occupations or 

12 industries; 

13 ‘‘(C) to assist students in obtaining loans 

14 under section 428L, if appropriate, or other 

15 forms of student financial assistance; 

16 ‘‘(D) to serve nontraditional or low-income 

17 students, or adult or displaced workers; and 

18 ‘‘(E) to serve students from rural or re19 mote communities. 

20 ‘‘(e) USE OF FUNDS.—Grant funds provided under 

21 this section may be used— 

22 ‘‘(1) to expand or create academic programs or 

23 programs of training that provide relevant job skill 

24 training for high-growth occupations or industries; 


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1 ‘‘(2) to purchase equipment which will facilitate 

2 the development of academic programs or programs 

3 of training that provide training for high-growth oc4 cupations or industries; 

5 ‘‘(3) to support outreach efforts that enable 

6 students to attend institutions of higher education 

7 with academic programs or programs of training fo8 cused on high-growth occupations or industries; 

9 ‘‘(4) to expand or create programs for distance, 

10 evening, weekend, modular, or compressed learning 

11 opportunities that provide relevant job skill training 

12 in high-growth occupations or industries; 

13 ‘‘(5) to build partnerships with local businesses 

14 in high-growth occupations or industries; and 

15 ‘‘(6) for other uses that the Secretary deter16 mines to be consistent with the intent of this section. 

17 ‘‘(f) REQUIREMENTS.— 

18 ‘‘(1) FISCAL AGENT.—For the purpose of this 

19 section, the institution of higher education in an eli20 gible partnership shall serve as the fiscal agent and 

21 grant recipient for the eligible partnership. 

22 ‘‘(2) DURATION.—The Secretary shall award 

23 grants under this section for a 1-year period. 

24 ‘‘(3) AVAILABILITY OF GRANT FUNDS.—Grant 

25 funds awarded under this section shall be available 


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1 for not more than 18 months unless, at the Sec2 retary’s discretion, the Secretary extends the avail3 ability of the grant funds. 

4 ‘‘(4) SUPPLEMENT, NOT SUPPLANT.—Funds 

5 made available under this section shall be used to 

6 supplement and not supplant other Federal, State, 

7 and local funds available to the eligible partnership 

8 for carrying out the activities described in subsection 

9 (e).’’. 

10 SEC. 703. SMALL BUSINESS INNOVATION PARTNERSHIPS. 

11 Part F of title III of the Higher Education Act (as 

12 amended by section 702) is further amended by adding 

13 at the end the following: 

14 ‘‘Subpart B—Small Business Innovation Partnership 

15 Grants 

16 ‘‘SEC. 375. SMALL BUSINESS INNOVATION PARTNERSHIP 

17 GRANTS. 

18 ‘‘(a) GRANTS AUTHORIZED.—The Secretary is au19 thorized to award grants to eligible partnerships to enable 

20 the eligible partnerships to provide training and relevant 

21 job skills to small business owners or operators for the 

22 purpose of facilitating small business development in the 

23 communities served by the eligible partnerships. 

24 ‘‘(b) DEFINITION OF ELIGIBLE PARTNERSHIP.—In 

25 this section the term ‘eligible partnership’ means a partVerDate Aug 31 2005 00:39 Sep 16, 2006 Jkt 049200 PO 00000 Frm 00067 Fmt 6652 Sfmt 6201 E:\BILLS\S3902.IS S3902

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1 nership between or among an institution of higher edu2 cation and 1 or more entities that the Secretary, in con3 sultation with the Administrator of the Small Business 

4 Administration, identifies as facilitating small business de5 velopment, which may include— 

6 ‘‘(1) a community development financial institu7 tion; 

8 ‘‘(2) a small business development center; or 

9 ‘‘(3) a microenterprise lending institution. 

10 ‘‘(c) AWARD BASIS.—The Secretary shall award 

11 grants under this section on the basis of— 

12 ‘‘(1) the ability of an eligible partnership to fa13 cilitate small business development; and 

14 ‘‘(2)(A) the ability of an eligible partnership to 

15 serve a rural community; 

16 ‘‘(B) the ability of an eligible partnership to 

17 serve a low-income population; or 

18 ‘‘(C) other criteria developed by the Secretary 

19 in consultation with the Administrator of the Small 

20 Business Administration. 

21 ‘‘(d) LIMITATION.—Of the funds appropriated under 

22 section 378 for this part for a fiscal year, the Secretary 

23 is authorized to use not more than $15,000,000 of such 

24 funds to carry out this section.’’. 


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1 SEC. 704. JOB SKILL TRAINING AUTHORIZATION OF APPRO2 PRIATIONS. 

3 Part F of title III of the Higher Education Act (as 

4 amended by section 703) is further amended by adding 

5 at the end the following: 

6 ‘‘Subpart C—Administrative Provisions 

7 ‘‘SEC. 378. AUTHORIZATION OF APPROPRIATIONS. 

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

9 this part $100,000,000 for fiscal year 2007 and such sums 

10 as may be necessary for each of the 4 succeeding fiscal 

11 years.’’. 

12 SEC. 705. DISTANCE LEARNING. 

13 (a) GRANTS AUTHORIZED.—The Secretary is author14 ized to award grants to State educational agencies and 

15 local educational agencies to enable such educational agen16 cies to— 

17 (1) establish, develop, expand, and supplement 

18 programs for distance learning through the Internet; 

19 and 

20 (2) acquire the technology for such programs. 

21 (b) APPLICATION.—A State educational agency or 

22 local educational agency desiring a grant under this sec23 tion shall submit an application to the Secretary at such 

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

25 the Secretary may require. 


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1 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated to carry out this section 

3 $100,000,000 for each of the fiscal years 2007 through 

4 2011. 

5 TITLE VIII—EDUCATION TAX 

6 INCENTIVES 

7 SEC. 800. FINDINGS. 

8 Congress finds the following: 

9 (1) The Department of Labor statistics show 

10 that 90 percent of the fastest growing jobs require 

11 some post-secondary education. According to the Bu12 reau of Labor Statistics, jobs requiring science, engi13 neering, or technical training will increase 24 per14 cent between 2004 and 2014 to 6,300,000. 

15 (2) An Organization for Economic Co-operation 

16 and Development study has shown that college grad17 uates in the United States earn nearly twice as 

18 much as workers with just a secondary school di19 ploma, one of the highest rates in the world. 

20 (3) Reports have shown that for American fam21 ilies with the lowest income, if a student from such 

22 a family were to attend a public 4-year institution 

23 of higher education in the United States, the stu24 dent’s net cost to attend would represent a high per25 centage of the family’s income annually. 


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1 (4) Fifty percent of all undergraduates received 

2 some Federal financial aid in the 2003–2004 aca3 demic year, up from 40 percent in the 2000–2001 

4 academic year. 

5 (5) Tax incentives support higher education and 

6 help families make education more affordable. The 

7 way families and students receive these incentives is 

8 complex, making it difficult to determine what the 

9 right choices are. 

10 (6) To support K–16 education, more options 

11 are needed for families to use savings penalty-free 

12 for college expenses. 

13 Subtitle A—Benefits for Current 

14 Expenses 

15 SEC. 801. REFUNDABLE HIGHER EDUCATION CREDIT. 

16 (a) IN GENERAL.—Subpart C of part IV of sub17 chapter A of chapter 1 of the Internal Revenue Code of 

18 1986 (relating to refundable credits) is amended by redes19 ignating section 36 as section 37 and by inserting after 

20 section 35 the following new section: 

21 ‘‘SEC. 36. HIGHER EDUCATION CREDIT. 

22 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in23 dividual, there shall be allowed as a credit against the tax 

24 imposed by this subtitle for the taxable year an amount 


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1 equal to the qualified tuition and related expenses paid 

2 by the taxpayer during the taxable year. 

3 ‘‘(b) LIMITATIONS.— 

4 ‘‘(1) PER STUDENT LIMITATION.—The amount 

5 of the credit allowable under subsection (a) with re6 spect to any student shall not exceed so much of the 

7 qualified tuition and related expenses paid by the 

8 taxpayer during the taxable year (for education fur9 nished to the student during any academic period 

10 beginning in such taxable year) as does not exceed 

11 $2,000. 

12 ‘‘(2) LIMITATION BASED ON MODIFIED AD13 JUSTED GROSS INCOME.— 

14 ‘‘(A) IN GENERAL.—The amount which 

15 would (but for this paragraph) be taken into ac16 count under subsection (a) for the taxable year 

17 shall be reduced (but not below zero) by the 

18 amount determined under subparagraph (B). 

19 ‘‘(B) AMOUNT OF REDUCTION.—The 

20 amount determined under this subparagraph is 

21 the amount which bears the same ratio to the 

22 amount which would be so taken into account 

23 as— 

24 ‘‘(i) the excess of— 


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1 ‘‘(I) the taxpayer’s modified ad2 justed gross income for such taxable 

3 year, over 

4 ‘‘(II) $40,000 ($80,000 in the 

5 case of a joint return), bears to 

6 ‘‘(ii) $10,000 ($20,000 in the case of 

7 a joint return). 

8 ‘‘(C) MODIFIED ADJUSTED GROSS IN9 COME.—The term ‘modified adjusted gross in10 come’ means the adjusted gross income of the 

11 taxpayer for the taxable year increased by any 

12 amount excluded from gross income under sec13 tion 911, 931, or 933. 

14 ‘‘(c) DEFINITIONS.—For purposes of this section— 

15 ‘‘(1) QUALIFIED TUITION AND RELATED EX16 PENSES.— 

17 ‘‘(A) IN GENERAL.—The term ‘qualified 

18 tuition and related expenses’ means— 

19 ‘‘(i) tuition, fees, books, supplies, and 

20 equipment required for the enrollment or 

21 attendance of— 

22 ‘‘(I) the taxpayer, 

23 ‘‘(II) the taxpayer’s spouse, or 

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1 payer is allowed a deduction under 

2 section 151, 

3 at an eligible educational institution for 

4 courses of instruction of such individual at 

5 such institution, and 

6 ‘‘(ii) expenses for special needs serv7 ices in the case of an individual with spe8 cial needs which are incurred in connection 

9 with such enrollment or attendance. 

10 ‘‘(B) EXCEPTIONS.—Except as otherwise 

11 provided in this section, such term does not in12 clude— 

13 ‘‘(i) expenses with respect to any 

14 course or other education involving sports, 

15 games, or hobbies, unless such course or 

16 other education is part of the individual’s 

17 degree program, and 

18 ‘‘(ii) student activity fees, athletic 

19 fees, insurance expenses, or other expenses 

20 unrelated to an individual’s academic 

21 course of instruction. 

22 ‘‘(2) ELIGIBLE EDUCATIONAL INSTITUTION.— 

23 The term ‘eligible educational institution’ means an 

24 institution— 


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1 ‘‘(A) which is described in section 481 of 

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

3 1088), as in effect on the date of the enactment 

4 of the Taxpayer Relief Act of 1997, and 

5 ‘‘(B) which is eligible to participate in a 

6 program under title IV of such Act. 

7 ‘‘(d) SPECIAL RULES.— 

8 ‘‘(1) IDENTIFICATION REQUIREMENT.—No 

9 credit shall be allowed under subsection (a) to a tax10 payer with respect to the qualified tuition and re11 lated expenses of an individual unless the taxpayer 

12 includes the name and taxpayer identification num13 ber of such individual on the return of tax for the 

14 taxable year. 

15 ‘‘(2) ADJUSTMENT FOR CERTAIN SCHOLAR16 SHIPS, ETC.—The amount of qualified tuition and 

17 related expenses otherwise taken into account under 

18 subsection (a) with respect to an individual for an 

19 academic period shall be reduced (before the applica20 tion of subsection (b)) by the sum of any amounts 

21 paid for the benefit of such individual which are allo22 cable to such period as— 

23 ‘‘(A) a qualified scholarship which is ex24 cludable from gross income under section 117, 


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1 ‘‘(B) an educational assistance allowance 

2 under chapter 30, 31, 32, 34, or 35 of title 38, 

3 United States Code, or under chapter 1606 of 

4 title 10, United States Code, and 

5 ‘‘(C) a payment (other than a gift, be6 quest, devise, or inheritance within the meaning 

7 of section 102(a)) for such individual’s edu8 cational expenses, or attributable to such indi9 vidual’s enrollment at an eligible educational in10 stitution, which is excludable from gross income 

11 under any law of the United States. 

12 ‘‘(3) TREATMENT OF EXPENSES PAID BY DE13 PENDENT.—If a deduction under section 151 with 

14 respect to an individual is allowed to another tax15 payer for a taxable year beginning in the calendar 

16 year in which such individual’s taxable year begins— 

17 ‘‘(A) no credit shall be allowed under sub18 section (a) to such individual for such individ19 ual’s taxable year, and 

20 ‘‘(B) qualified tuition and related expenses 

21 paid by such individual during such individual’s 

22 taxable year shall be treated for purposes of 

23 this section as paid by such other taxpayer. 

24 ‘‘(4) TREATMENT OF CERTAIN PREPAY25 MENTS.—If qualified tuition and related expenses 


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1 are paid by the taxpayer during a taxable year for 

2 an academic period which begins during the first 3 

3 months following such taxable year, such academic 

4 period shall be treated for purposes of this section 

5 as beginning during such taxable year. 

6 ‘‘(5) DENIAL OF DOUBLE BENEFIT.—No credit 

7 shall be allowed under this section for any expense 

8 for which a deduction is allowed under any other 

9 provision of this chapter. 

10 ‘‘(6) NO CREDIT FOR MARRIED INDIVIDUALS

11 FILING SEPARATE RETURNS.—If the taxpayer is a 

12 married individual (within the meaning of section 

13 7703), this section shall apply only if the taxpayer 

14 and the taxpayer’s spouse file a joint return for the 

15 taxable year. 

16 ‘‘(7) NONRESIDENT ALIENS.—If the taxpayer is 

17 a nonresident alien individual for any portion of the 

18 taxable year, this section shall apply only if such in19 dividual is treated as a resident alien of the United 

20 States for purposes of this chapter by reason of an 

21 election under subsection (g) or (h) of section 6013. 

22 ‘‘(e) INFLATION ADJUSTMENTS.— 

23 ‘‘(1) DOLLAR LIMITATION ON AMOUNT OF

24 CREDIT.— 


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1 ‘‘(A) IN GENERAL.—In the case of a tax2 able year beginning after 2007, the $2,000 

3 amount under subsection (b)(1) shall be in4 creased by an amount equal to— 

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

6 ‘‘(ii) the cost-of-living adjustment de7 termined under section 1(f)(3) for the cal8 endar year in which the taxable year be9 gins, determined by substituting ‘calendar 

10 year 2006’ for ‘calendar year 1992’ in sub11 paragraph (B) thereof. 

12 ‘‘(B) ROUNDING.—If any amount as ad13 justed under subparagraph (A) is not a multiple 

14 of $100, such amount shall be rounded to the 

15 next lowest multiple of $100. 

16 ‘‘(2) INCOME LIMITS.— 

17 ‘‘(A) IN GENERAL.—In the case of a tax18 able year beginning after 2001, the $40,000 

19 and $80,000 amounts in subsection (b)(2) shall 

20 each be increased by an 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, determined by substituting ‘calendar 


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1 year 2000’ for ‘calendar year 1992’ in sub2 paragraph (B) thereof. 

3 ‘‘(B) ROUNDING.—If any amount as ad4 justed under subparagraph (A) is not a multiple 

5 of $1,000, such amount shall be rounded to the 

6 next lowest multiple of $1,000. 

7 ‘‘(f) REGULATIONS.—The Secretary may prescribe 

8 such regulations as may be necessary or appropriate to 

9 carry out this section, including regulations providing for 

10 a recapture of the credit allowed under this section in 

11 cases where there is a refund in a subsequent taxable year 

12 of any amount which was taken into account in deter13 mining the amount of such credit.’’. 

14 (b) CONFORMING AMENDMENTS.— 

15 (1) REPEAL OF HOPE AND LIFETIME LEARNING

16 CREDITS.— 

17 (A) Subpart A of part IV of subchapter A 

18 of chapter 1 of the Internal Revenue Code of 

19 1986 is amended by striking section 25A. 

20 (B) Subparagraph (B) of section 72(t)(7) 

21 of such Code is amended by striking ‘‘section 

22 25A(g)(2)’’ and inserting ‘‘section 36(e)(2)’’. 

23 (C) Subparagraph (A) of section 135(d)(2) 

24 of such Code is amended by striking ‘‘section 

25 25A’’ and inserting ‘‘section 36’’. 


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1 (D) Section 221(d) of such Code is amend2 ed— 

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

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

5 36(e)(2)’’, 

6 (ii) by striking ‘‘section 25A(f)(2)’’ in 

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

8 36(d)(2)’’, and 

9 (iii) by striking ‘‘section 25A(b)(3)’’ 

10 in paragraph (3) and inserting ‘‘section 

11 36(d)(1)(B)(iii)’’. 

12 (E) Section 222 of such Code is amend13 ed— 

14 (i) by striking ‘‘section 25A’’ in sub15 section (c)(2)(A) and inserting ‘‘section 

16 36’’, 

17 (ii) by striking ‘‘section 25A(f)’’ in 

18 subsection (d)(1) and inserting ‘‘section 

19 36(d)(1)’’, and 

20 (iii) by striking ‘‘section 25A(g)(2)’’ 

21 in subsection (d)(1) and inserting ‘‘section 

22 36(e)(2)’’. 

23 (F) Section 529 of such Code is amend24 ed— 


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

2 subclause (I) of subsection (c)(3)(B)(v) 

3 and inserting ‘‘section 36(e)(2)’’, 

4 (ii) by striking ‘‘section 25A’’ in sub5 clause (II) of subsection (c)(3)(B)(v) and 

6 inserting ‘‘section 36’’, and 

7 (iii) by striking ‘‘section 25A(b)(3)’’ 

8 in clause (i) of subsection (e)(3)(B) and in9 serting ‘‘section 36(d)(1)(B)(iii)’’. 

10 (G) Section 530 of such Code is amend11 ed— 

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

13 subclause (I) of subsection (d)(2)(C)(i) and 

14 inserting ‘‘section 36(e)(2)’’, 

15 (ii) by striking ‘‘section 25A’’ in sub16 clause (II) of subsection (d)(2)(C)(i) and 

17 inserting ‘‘section 36’’, and 

18 (iii) by striking ‘‘section 25A(g)(2)’’ 

19 in clause (iii) of subsection (d)(4)(B) and 

20 inserting ‘‘section 36(e)(2)’’. 

21 (H) Subsection (e) of section 6050S of 

22 such Code is amended by striking ‘‘section 

23 25A’’ and inserting ‘‘section 36’’. 


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1 (I) Subparagraph (J) of section 6213(g)(2) 

2 of such Code is amended by striking ‘‘section 

3 25A(g)(1)’’ and inserting ‘‘section 36(e)(1)’’. 

4 (J) The table of sections for subpart A of 

5 part IV of subchapter A of chapter 1 of such 

6 Code is amended by striking the item relating 

7 to section 25A. 

8 (2) REFUNDABILITY OF CREDIT.—Paragraph 

9 (2) of section 1324(b) of title 31, United States 

10 Code, is amended by inserting before the period ‘‘or 

11 enacted by the Education Competitiveness Act of 

12 2006’’. 

13 (c) CLERICAL AMENDMENT.—The table of sections 

14 for subpart C of part IV of subchapter A of chapter 1 

15 of such Code is amended by striking the item relating to 

16 section 36 and inserting the following: 

‘‘Sec. 36. Higher education credit. 

‘‘Sec. 37. Overpayments of tax.’’. 

17 (d) EFFECTIVE DATE.— 

18 (1) IN GENERAL.—Except as provided in para19 graph (2), the amendments made by this section 

20 shall apply to expenses paid after December 31, 

21 2006, for education furnished in academic periods 

22 beginning after such date. 


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1 (2) EXCEPTION.—The amendment made by 

2 subsection (b)(2) shall take effect on the date of the 

3 enactment of this Act. 

4 SEC. 802. INCREASED REPAYMENT PERIOD FOR HIGHER 

5 EDUCATION LOANS FROM QUALIFIED RE6 TIREMENT PLANS. 

7 (a) IN GENERAL.—Section 72(p)(2)(B) of the Inter8 nal Revenue Code of 1986 (relating to requirement that 

9 loan be repayable within 5 years) is amended by adding 

10 at the end the following new clause: 

11 ‘‘(iii) EXCEPTION FOR EDUCATION

12 LOANS.—In the case of any loan used for 

13 qualified higher education expenses (as de14 fined in subsection (t)(7)(A), clause (i) 

15 shall by applied by substituting ‘10 years’ 

16 for ‘5 years’.’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 this section shall apply to loans made after the date of 

19 the enactment of this Act. 

20 SEC. 803. INCREASED EMPLOYER PROVIDED EDUCATIONAL 

21 ASSISTANCE. 

22 (a) IN GENERAL.—Paragraph (2) of section 127(a) 

23 of the Internal Revenue Code of 1986 (relating to exclu24 sion from gross income) is amended to read as follows: 

25 ‘‘(2) MAXIMUM EXCLUSION.— 


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1 ‘‘(A) IN GENERAL.—If, but for this para2 graph, this section would exclude from gross in3 come more than $7,000 of educational assist4 ance furnished to an individual during a cal5 endar year, this section shall apply only to the 

6 first $7,000 of such assistance so furnished. 

7 ‘‘(B) INFLATION ADJUSTMENT.— 

8 ‘‘(i) IN GENERAL.—In the case of a 

9 calendar year beginning after 2007, the 

10 $7,000 amount in subparagraph (A) shall 

11 be increased by an amount equal to— 

12 ‘‘(I) such dollar amount, multi13 plied by 

14 ‘‘(II) the cost-of-living adjust15 ment determined under section 1(f)(3) 

16 for the calendar year, determined by 

17 substituting ‘calendar year 2006’ for 

18 ‘calendar year 1992’ in subparagraph 

19 (B) thereof. 

20 ‘‘(ii) ROUNDING.—If any amount as 

21 adjusted under clause (i) is not a multiple 

22 of $100, such amount shall be rounded to 

23 the next lowest multiple of $100.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2006. 

4 SEC. 804. ABOVE-THE-LINE DEDUCTION FOR CERTAIN EX5 PENSES OF ELEMENTARY AND SECONDARY 

6 SCHOOL TEACHERS. 

7 (a) IN GENERAL.—Subparagraph (D) of section 

8 62(a)(2) of the Internal Revenue Code of 1986 (relating 

9 to certain trade and business deductions of employees) is 

10 amended by striking ‘‘In the case’’ and all that follows 

11 through ‘‘$250,’’ and insert the following: 

12 ‘‘(i) IN GENERAL.—The deductions al13 lowed by section 162 which consist of ex14 penses, not in excess of $500,’’. 

15 (b) INFLATION ADJUSTMENT.—Section 62(a)(2)(D) 

16 of such Code, as amended by subsection(a), is amended 

17 by adding at the end the following new clause: 

18 ‘‘(ii) INFLATION ADJUSTMENT.—In 

19 the case of a taxable year beginning after 

20 2007, the $500 amount under clause (i) 

21 shall be increased 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, determined by sub3 stituting ‘calendar year 2006’ for ‘cal4 endar year 1992’ in subparagraph (B) 

5 thereof. 

6 If any amount as adjusted under this 

7 clause is not a multiple of $10, such 

8 amount shall be rounded to the next lowest 

9 multiple of $10.’’. 

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

11 this section shall apply to taxable years beginning after 

12 December 31, 2006. 

13 Subtitle B—Benefits for Future 

14 Expenses 

15 SEC. 811. YOUNG SAVERS ACCOUNTS. 

16 (a) IN GENERAL.—Section 408A of the Internal Rev17 enue Code of 1986 (relating to Roth IRAs) is amended 

18 by adding at the end the following new subsection: 

19 ‘‘(g) YOUNG SAVERS ACCOUNTS.— 

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

21 subsection, a young savers account shall be treated 

22 in the same manner as a Roth IRA. 

23 ‘‘(2) YOUNG SAVERS ACCOUNT.—For purposes 

24 of this subsection, the term ‘young savers account’ 

25 means, with respect to any taxable year, a Roth IRA 


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1 which is established and maintained on behalf of an 

2 individual who has not attained the age of 22 before 

3 the close of the taxable year. 

4 ‘‘(3) CONTRIBUTION LIMITS.—In the case of 

5 any contributions for any taxable year to 1 or more 

6 young savers accounts established and maintained 

7 on behalf of an individual, each of the following con8 tribution limits for the taxable year shall be in9 creased as follows: 

10 ‘‘(A) The contribution limit applicable to 

11 the individual under subsection (c)(2) shall be 

12 increased by the aggregate amount of qualified 

13 parental contributions to such accounts for the 

14 taxable year. 

15 ‘‘(B) The contribution limits applicable to 

16 the young savers accounts under subsection 

17 (a)(1) or (b)(2)(B) of section 408, whichever is 

18 appropriate, shall be increased by the dollar 

19 amount in effect under section 219(b)(1)(A) for 

20 the taxable year. 

21 ‘‘(4) QUALIFIED PARENTAL CONTRIBUTIONS.— 

22 For purposes of this subsection— 

23 ‘‘(A) IN GENERAL.—The term ‘qualified 

24 parental contribution’ means, with respect to 

25 any taxable year, a contribution by an indiVerDate Aug 31 2005 00:39 Sep 16, 2006 Jkt 049200 PO 00000 Frm 00087 Fmt 6652 Sfmt 6201 E:\BILLS\S3902.IS S3902

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1 vidual to a young savers account established 

2 and maintained on behalf of an individual 

3 who— 

4 ‘‘(i) is the child of the individual mak5 ing the contribution, and 

6 ‘‘(ii) with respect to whom a deduc7 tion for an additional exemption is allow8 able for the taxable year under section 

9 151(c) to the individual making the con10 tribution. 

11 ‘‘(B) DOLLAR LIMITATIONS.— 

12 ‘‘(i) IN GENERAL.—The aggregate 

13 amount of qualified parental contributions 

14 which may be made for any taxable year 

15 on behalf of an individual shall not exceed 

16 the dollar amount in effect under section 

17 219(b)(1)(A) for the taxable year. 

18 ‘‘(ii) LIMIT ON EACH PARENT.—The 

19 aggregate amount of qualified parental 

20 contributions which an individual may 

21 make for any taxable year on behalf of 1 

22 or more of the individual’s children shall 

23 not exceed the contribution limit applicable 

24 to the individual under subsection (c)(2) 

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1 tributions made by or on behalf of the indi2 vidual to any Roth IRA established and 

3 maintained on behalf of the individual. 

4 ‘‘(5) QUALIFIED DISTRIBUTIONS FOR HIGHER

5 EDUCATION EXPENSES.— 

6 ‘‘(A) IN GENERAL.—In the case of any 

7 young savers account, for purposes of sub8 section (d), the term ‘qualified distribution’ in9 cludes any qualified higher education distribu10 tion. 

11 ‘‘(B) QUALIFIED HIGHER EDUCATION DIS12 TRIBUTION.—For purposes of subparagraph 

13 (A), the term ‘qualified higher education dis14 tribution’ means any distribution to which sub15 paragraph (E) of section 72(t)(2) applies.’’. 

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

17 this section shall apply to taxable years beginning after 

18 December 31, 2006. 

19 Subtitle C—Benefits for Past 

20 Expenses 

21 SEC. 821. INCREASED DEDUCTION FOR STUDENT LOAN IN22 TEREST. 

23 (a) INCREASE IN DEDUCTION AMOUNT.—Paragraph 

24 (1) of section 221(b) of the Internal Revenue Code of 


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1 1986 (relating to maximum deduction) is amended to read 

2 as follows: 

3 ‘‘(1) IN GENERAL.—Except as provided in para4 graph (2), the deduction allowed by subsection (a) 

5 for the taxable year shall not exceed $3,000.’’. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply to taxable years beginning after 

8 December 31, 2006. 

9 Subtitle D—Other Tax Incentives 

10 SEC. 831. EXTENSION OF QZABS AND EXPANSION TO FI11 NANCING CERTAIN POSTSECONDARY INSTI12 TUTIONS. 

13 (a) EXTENSION.—Section 1397E(e)(1) of the Inter14 nal Revenue Code of 1986 (relating to national limitation) 

15 is amended by striking ‘‘and 2005’’ and inserting ‘‘2005, 

16 2006, and 2007’’. 

17 (b) EXPANSION.—Section 1397E(d)(4) of the Inter18 nal Revenue Code of 1986 (defining qualified zone acad19 emy) is amended— 

20 (1) by striking ‘‘The term’’ in subparagraph 

21 (A) and inserting ‘‘Except as provided in subpara22 graph (C), the term’’, and 

23 (2) by adding at the end of the following new 

24 subparagraph: 


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1 ‘‘(C) TRIBALLY CONTROLLED COLLEGE OR

2 UNIVERSITY.— 

3 ‘‘(i) IN GENERAL.—The term ‘quali4 fied zone academy’ means any tribally con5 trolled college or university if— 

6 ‘‘(I) such college or university is 

7 designed, in cooperation with busi8 ness, to better prepare students for 

9 the rigors of the increasingly complex 

10 workforce, and 

11 ‘‘(II) has an endowment of not 

12 more than $25,000,000. 

13 ‘‘(ii) TRIBALLY CONTROLLED COL14 LEGE OR UNIVERSITY.—The term ‘tribally 

15 controlled college or university’ has the 

16 meaning given such term by section 

17 2(a)(4) of the Tribally Controlled College 

18 or University Assistance Act of 1978 (25 

19 U.S.C. 1801(a)(4)). 

20 ‘‘(iii) ROLE OF INDIAN TRIBE.—For 

21 purposes of this section, in applying para22 graphs (1)(A), (1)(C)(iii), and (2), ‘Indian 

23 tribe’ shall be substituted for ‘eligible local 

24 education agency’ each place it appears.’’. 


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

2 this section shall apply to bonds issued after December 

3 31, 2005. 

4 SEC. 832. ADDITIONAL STANDARD DEDUCTION FOR REAL 

5 PROPERTY TAXES FOR NONITEMIZERS. 

6 (a) IN GENERAL.—Section 63(c)(1) (defining stand7 ard deduction) is amended by striking ‘‘and’’ at the end 

8 of subparagraph (A), by striking the period at the end 

9 of subparagraph (B) and inserting ‘‘, and’’, and by adding 

10 at the end the following new subparagraph: 

11 ‘‘(C) the real property tax deduction.’’. 

12 (b) DEFINITION.—Section 63(c) is amended by add13 ing at the end the following new paragraph: 

14 ‘‘(8) REAL PROPERTY TAX DEDUCTION.—For 

15 purposes of paragraph (1), the real property tax de16 duction is so much of the amount of State and local 

17 real property taxes (within the meaning of section 

18 164) paid or accrued by the taxpayer during the tax19 able year which do not exceed $500 ($1,000 in the 

20 case of a joint return).’’. 

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

22 this section shall apply to taxable years beginning after 

23 December 31, 2006. 


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1 SEC. 833. EXTENSION AND EXPANSION OF CHARITABLE 

2 CONTRIBUTION ALLOWED FOR SCIENTIFIC 

3 PROPERTY USED FOR RESEARCH AND FOR 

4 COMPUTER TECHNOLOGY AND EQUIPMENT 

5 USED FOR EDUCATIONAL PURPOSES. 

6 (a) SCIENTIFIC PROPERTY USED FOR RESEARCH.— 

7 (1) IN GENERAL.—Clause (ii) of section 

8 170(e)(4)(B) (defining qualified research contribu9 tions) is amended by inserting ‘‘or assembled’’ after 

10 ‘‘constructed’’. 

11 (2) CONFORMING AMENDMENT.—Clause (iii) of 

12 section 170(e)(4)(B) is amended by inserting ‘‘or as13 sembling’’ after ‘‘construction’’. 

14 (b) COMPUTER TECHNOLOGY AND EQUIPMENT FOR

15 EDUCATIONAL PURPOSES.— 

16 (1) IN GENERAL.—Clause (ii) of section 

17 170(e)(6)(B) is amended by inserting ‘‘or assem18 bled’’ after ‘‘constructed’’ and ‘‘or assembling’’ after 

19 ‘‘construction’’. 

20 (2) SPECIAL RULE EXTENDED.—Section 

21 170(e)(6)(G) is amended by striking ‘‘2005’’ and in22 serting ‘‘2007’’. 

23 (3) CONFORMING AMENDMENTS.—Subpara24 graph (D) of section 170(e)(6) is amended by insert25 ing ‘‘or assembled’’ after ‘‘constructed’’ and ‘‘or as26 sembling’’ after ‘‘construction’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2005. 

4 SEC. 834. MODIFICATION OF CHARITABLE DEDUCTION FOR 

5 CONTRIBUTIONS OF BOOK INVENTORY. 

6 (a) IN GENERAL.—Subparagraph (D) of section 

7 170(e)(3) (relating to special rule for certain contributions 

8 of inventory and other property) is amended to read as 

9 follows: 

10 ‘‘(D) SPECIAL RULE FOR CONTRIBUTIONS

11 OF BOOK INVENTORY FOR EDUCATIONAL PUR12 POSES.— 

13 ‘‘(i) CONTRIBUTIONS OF BOOK INVEN14 TORY.—In determining whether a qualified 

15 book contribution is a qualified contribu16 tion, subparagraph (A) shall be applied 

17 without regard to whether— 

18 ‘‘(I) the donee is an organization 

19 described in the matter preceding 

20 clause (i) of subparagraph (A), and 

21 ‘‘(II) the property is to be used 

22 by the donee solely for the care of the 

23 ill, the needy, or infants. 

24 ‘‘(ii) AMOUNT OF REDUCTION.—Not25 withstanding subparagraph (B), the 


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1 amount of the reduction determined under 

2 paragraph (1)(A) shall not exceed the 

3 amount by which the fair market value of 

4 the contributed property (as determined by 

5 the taxpayer using a bona fide published 

6 market price for such book) exceeds twice 

7 the basis of such property. 

8 ‘‘(iii) QUALIFIED BOOK CONTRIBU9 TION.—For purposes of this paragraph, 

10 the term ‘qualified book contribution’ 

11 means a charitable contribution of books, 

12 but only if the requirements of clauses (iv) 

13 and (v) are met. 

14 ‘‘(iv) IDENTITY OF DONEE.—The re15 quirement of this clause is met if the con16 tribution is to an organization— 

17 ‘‘(I) described in paragraph 

18 (6)(B)(i), or 

19 ‘‘(II) described in section 

20 501(c)(3) and exempt from tax under 

21 section 501(a) (other than a private 

22 foundation, as defined in section 

23 509(a), which is not an operating 

24 foundation, as defined in section 

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1 marily to make books available to the 

2 general public at no cost or to operate 

3 a literacy program. 

4 ‘‘(v) CERTIFICATION BY DONEE.—The 

5 requirement of this clause is met if, in ad6 dition to the certifications required by sub7 paragraph (A) (as modified by this sub8 paragraph), the donee certifies in writing 

9 that— 

10 ‘‘(I) the books are suitable, in 

11 terms of currency, content, and quan12 tity, for use in the donee’s educational 

13 programs, and 

14 ‘‘(II) the donee will use the books 

15 in its educational programs. 

16 ‘‘(vi) BONA FIDE PUBLISHED MARKET

17 PRICE.—For purposes of this subpara18 graph, the term ‘bona fide published mar19 ket price’ means, with respect to any book, 

20 a price— 

21 ‘‘(I) determined using the same 

22 printing and edition, 

23 ‘‘(II) determined in the usual 

24 market in which such a book has been 

25 customarily sold by the taxpayer, and 


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•S 3902 IS

1 ‘‘(III) for which the taxpayer can 

2 demonstrate to the satisfaction of the 

3 Secretary that the taxpayer custom4 arily sold such books in arm’s length 

5 transactions within 7 years preceding 

6 the contribution of such a book. 

7 ‘‘(vii) TERMINATION.—This subpara8 graph shall not apply to contributions 

9 made after December 31, 2007.’’. 

10 (b) EFFECTIVE DATE.—The amendment made by 

11 this section shall apply to contributions made after De12 cember 31, 2005. 

Æ 


ccoleman on PROD1PC71 with BILLS