II 

Calendar No. 82 

109TH CONGRESS 

1ST SESSION S. 848 

To improve education, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 19, 2005 

Mr. BINGAMAN introduced the following bill; which was read the first time 

APRIL 20, 2005 

Read the second time and placed on the calendar 

A BILL

To improve education, and for other purposes.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Educational Reform Act of 2005’’. 

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

7 this Act is as follows:

Sec. 1 Short title; table of contents. 

TITLE I—STRENGTHENING HEAD START AND CHILD CARE 

PROGRAMS 
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Subtitle A—Increasing Access to Head Start Programs 

Sec. 101 Authorization of appropriations. 

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

Sec. 103 Expanding Early Head Start programs. 

Sec. 104 Participation in Head Start programs. 

Subtitle B—Enhancing the School Readiness of Head Start Children 

Sec. 111 School readiness standards. 

Sec. 112 Staff. 

Subtitle C—Expanding Access to Quality, Affordable Child Care 

Sec. 121 Authorization of appropriations. 

Subtitle D—Strengthening the Quality of Child Care 

Sec. 131 State plan requirements relating to training. 

Sec. 132 Strengthening the quality of child care. 

TITLE II—IMPROVEMENT OF ELEMENTARY AND SECONDARY 

EDUCATION 

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

Teacher Quality 

Sec. 201 Public school choice capacity. 

Sec. 202 Supplemental educational services. 

Sec. 203 Qualifications for teachers and paraprofessionals. 

Subtitle B—Adequate Yearly Progress Determinations 

Sec. 221 Review of adequate yearly progress determinations for schools for the 

2002–2003 school year. 

Sec. 222 Review of adequate yearly progress determinations for local educational agencies for the 2002–2003 school year. 

Sec. 223 Definitions. 

Subtitle C—Technical Assistance 

Sec. 251 Technical assistance. 

TITLE III—PROVIDING A ROADMAP FOR FIRST GENERATION 

COLLEGE FOR STUDENTS 

Sec. 301 Expansion of TRIO and GEARUP. 

TITLE IV—COLLEGE TUITION RELIEF FOR STUDENTS AND 

THEIR FAMILIES THROUGH PELL GRANTS 

Sec. 401 Pell Grants tax tables hold harmless. 

Sec. 402 Sense of the Senate regarding increasing the maximum Pell Grant. 

Sec. 403 Establishment of a Pell demonstration program. 

TITLE V—TUITION FREE COLLEGE FOR MATHEMATICS, SCIENCE, 

AND SPECIAL EDUCATION TEACHERS 

Sec. 501 Purpose. 
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Sec. 502 Tuition free college for mathematics, science, and special education 

teachers. 

Sec. 503 Offset for tuition free college for mathematics, science, and special 

education teachers. 

TITLE VI—HOPE AND LIFETIME LEARNING CREDITS TO BE 

REFUNDABLE 

Sec. 601 Hope and Lifetime Learning credits to be refundable. 

1 TITLE I—STRENGTHENING HEAD 

2 START AND CHILD CARE PRO3 GRAMS 

4 Subtitle A—Increasing Access to 

5 Head Start Programs 

6 SEC. 101. AUTHORIZATION OF APPROPRIATIONS. 

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

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

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

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

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

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

13 2010.’’. 

14 SEC. 102. STRENGTHENING INDIAN AND MIGRANT AND 

15 SEASONAL HEAD START PROGRAMS. 

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

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

18 inserting the following: 

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

20 children with disabilities, and migrant and seasonal 

21 Head Start programs, except that the Secretary 
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1 shall reserve for each fiscal year for use by Indian 

2 Head Start and migrant and seasonal Head Start 

3 programs (referred to in this subparagraph as ‘cov4 ered programs’), on a nationwide basis, a sum that 

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

6 appropriated under section 639(a) for that fiscal 

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

8 than 5 percent of that appropriated amount (for mi9 grant and seasonal Head Start programs), except 

10 that— 

11 ‘‘(i) if reserving the specified percentages 

12 for covered programs and would reduce the 

13 number of children served by Head Start pro14 grams, relative to the number of children served 

15 on the date of enactment of the Educational 

16 Reform Act of 2005, taking into consideration 

17 an appropriate adjustment for inflation, the 

18 Secretary shall reserve percentages that ap19 proach, as closely as practicable, the specified 

20 percentages and that do not cause such a re21 duction; and 

22 ‘‘(ii) notwithstanding any other provision 

23 of this subparagraph, the Secretary shall re24 serve for each fiscal year for use by Indian 

25 Head Start programs and by migrant and sea-
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1 sonal Head Start programs, on a nationwide 

2 basis, not less than the amount that was obli3 gated for use by Indian Head Start programs 

4 and by migrant and seasonal Head Start pro5 grams, respectively, for the previous fiscal 

6 year;’’. 

7 SEC. 103. EXPANDING EARLY HEAD START PROGRAMS. 

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

9 9835(a)(6)) is amended— 

10 (1) in subparagraph (A), by striking ‘‘7.5 per11 cent for fiscal year 1999’’ and all that follows and 

12 inserting ‘‘12 percent for fiscal year 2006, 14 per13 cent for fiscal year 2007, 16 percent for fiscal year 

14 2008, 18 percent for fiscal year 2009, and 20 per15 cent for fiscal year 2010, of the amount appro16 priated pursuant to section 639(a).’’; 

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

18 (3) by redesignating subparagraph (C) as sub19 paragraph (B). 

20 SEC. 104. PARTICIPATION IN HEAD START PROGRAMS. 

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

22 is amended— 

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

24 percent of’’ after ‘‘below’’; and 

25 (2) by adding at the end the following: 
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1 ‘‘(e) After demonstrating a need through a commu2 nity needs assessment, a Head Start agency may apply 

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

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

5 Subtitle B—Enhancing the School 

6 Readiness of Head Start Children 

7 SEC. 111. SCHOOL READINESS STANDARDS. 

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

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

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

11 ‘‘at a minimum, develop and demonstrate— 

12 ‘‘(I) language skills, including an ex13 panded use of vocabulary; 

14 ‘‘(II) interest in and appreciation of 

15 books, reading, and writing (either alone or 

16 with others), phonological and phonemic 

17 awareness, and varied modes of expression 

18 and communication; 

19 ‘‘(III) premathematics knowledge and 

20 skills, including knowledge and skills relat21 ing to aspects of classification, seriation, 

22 numbers, spatial relations, and time; 

23 ‘‘(IV) cognitive abilities related to aca24 demic achievement; 
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1 ‘‘(V) abilities related to social and 

2 emotional development; 

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

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

5 limited English proficiency, abilities related 

6 to progress toward acquisition of the 

7 English language.’’. 

8 SEC. 112. STAFF. 

9 (a) STAFF QUALIFICATIONS AND DEVELOPMENT.— 

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

11 is amended— 

12 (1) in subsection (a)(2)— 

13 (A) in subparagraph (A)— 

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

15 by striking ‘‘not later than September 30, 

16 2003’’ and all that follows through ‘‘pro17 grams have’’ and inserting ‘‘not later than 

18 the date determined under subparagraph 

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

20 Start agency in the region with a center21 based program shall ensure that all class22 rooms in the program have at least 1 

23 teacher who has’’; 
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1 (ii) in clause (i), strike ‘‘an associate, 

2 baccalaureate,’’ and insert ‘‘a bacca3 laureate’’; and 

4 (iii) in clause (ii), strike ‘‘an asso5 ciate, baccalaureate,’’ and insert ‘‘a bacca6 laureate’’; and 

7 (B) by striking subparagraph (B) and in8 serting the following: 

9 ‘‘(B) TEMPORARY REQUIREMENT.—Until 

10 the date determined under subparagraph (D) 

11 for a Head Start region, the Secretary shall en12 sure that at least 50 percent of all Head Start 

13 teachers in the region in center-based programs 

14 have— 

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

16 advanced degree in early childhood edu17 cation; or 

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

19 advanced degree in a field related to early 

20 childhood education, with experience in 

21 teaching preschool children. 

22 ‘‘(C) REQUIREMENT FOR NEW HEAD

23 START TEACHERS.—Not later than 3 years 

24 after the date of enactment of the Educational 

25 Reform Act of 2005, the Secretary shall require 
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1 that all teachers hired nationwide in center2 based programs of Head Start agencies fol3 lowing the date of the requirement— 

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

5 or advanced degree in early childhood edu6 cation; 

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

8 or advanced degree in a field related to 

9 early childhood education, with experience 

10 in teaching preschool children; or 

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

12 than 1 year after the date of hire, in a pro13 gram of study leading to an associate de14 gree in early childhood education. 

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

16 shall determine an appropriate date for Head 

17 Start agencies in each Head Start region to 

18 reach the result described in subparagraph (A), 

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

20 8 years after the date of enactment of the Edu21 cational Reform Act of 2005. 

22 ‘‘(E) PROGRESS.— 

23 ‘‘(i) REQUIREMENT.—The Secretary 

24 shall require Head Start agencies with cen25 ter-based programs to demonstrate con-
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1 tinuing and consistent progress each year 

2 to reach the results described in subpara3 graphs (A) and (C). 

4 ‘‘(ii) PLAN.—Each State shall estab5 lish a plan for the Head Start agencies 

6 with center-based programs in the State to 

7 reach the results described in subpara8 graphs (A) and (C). 

9 ‘‘(iii) PROGRESS.—Each Head Start 

10 agency shall prepare and submit to the 

11 Secretary and the Governor of the State a 

12 report indicating the number and percent13 age of its teachers in center-based pro14 grams with child development associate 

15 credentials or associate, baccalaureate, or 

16 advanced degrees in early childhood edu17 cation or a field related to early childhood 

18 education. The Secretary shall compile all 

19 such reports and submit a summary of the 

20 compiled reports to the Committee on 

21 Education and the Workforce of the House 

22 of Representatives and the Committee on 

23 Health, Education, Labor, and Pensions of 

24 the Senate.’’; 
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1 (2) in subsection (a)(3), by striking ‘‘(2)(A)’’ 

2 and inserting ‘‘(2)(B)’’; and 

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

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

5 support local efforts to enhance early language and pre6 literacy development of children in Head Start programs, 

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

8 skills and environments that are rich in literature, in 

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

10 each Head Start agency shall ensure that all of the agen11 cy’s Head Start teachers receive ongoing training in lan12 guage and emergent literacy. Such training shall also in13 clude information regarding appropriate curricula and as14 sessments to improve instruction and learning. Such train15 ing shall include training in methods to promote phono16 logical and phonemic awareness and vocabulary develop17 ment in an age-appropriate and culturally and linguis18 tically appropriate manner. 

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

20 Head Start agency and center shall create, in consultation 

21 with employees of the agency or center (including family 

22 service workers), a professional development plan for em23 ployees who provide direct services to children, including 

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

25 in subsection (a).’’. 
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1 (b) ATTRACTING AND RETAINING HIGH-QUALITY

2 HEAD START TEACHERS; TRIBAL COLLEGE OR UNIVER3 SITY-HEAD START PARTNERSHIP PROGRAM.— 

4 (1) PROGRAM.—The Head Start Act is amend5 ed by inserting after section 648A (42 U.S.C. 

6 9843a) the following: 

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

8 HEAD START TEACHERS. 

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

10 to eligible Head Start agencies to enable the agencies to 

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

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

13 grants from allotments determined under subsection (b). 

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

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

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

17 Head Start agency an amount that bears the same rela18 tionship to such funds as the amount received by the agen19 cy under section 640 for that fiscal year bears to the 

20 amount received by all Head Start agencies under section 

21 640 for that fiscal year. 

22 ‘‘(c) SALARY PLAN.—A Head Start agency that re23 ceives a grant under this section shall develop and carry 

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

25 agency’s Head Start programs. In developing the plan, the 
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1 agency shall take into consideration the training, level of 

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

3 salaries of prekindergarten and kindergarten teachers em4 ployed by the local educational agency for the school dis5 trict in which the Head Start agency is located, with simi6 lar training, level of education, and experience. 

7 ‘‘(d) SALARIES IN HIGH-COST AREAS.—The Sec8 retary may reserve and use a portion of the funds available 

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

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

11 such average salaries of such teachers and such average 

12 salaries of such prekindergarten and kindergarten teach13 ers. 

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

15 PARTNERSHIP PROGRAM. 

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

17 PARTNERSHIP PROGRAM.— 

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

19 award grants, for periods of not less than 5 years, 

20 to Tribal Colleges and Universities to— 

21 ‘‘(A) implement education programs that 

22 include tribal culture and language and increase 

23 the number of associate, baccalaureate, and 

24 graduate degrees in early childhood education 

25 and related fields that are earned by Indian 
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1 Head Start agency staff members, parents of 

2 children served by such an agency, and mem3 bers of the tribal community involved; 

4 ‘‘(B) develop and implement the programs 

5 under subparagraph (A) in technology-mediated 

6 formats; and 

7 ‘‘(C) provide technology literacy programs 

8 for Indian Head Start agency staff members 

9 and children and families of children served by 

10 such an agency. 

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

12 that the American Indian Programs Branch of the 

13 Head Start Bureau of the Department of Health 

14 and Human Services shall have staffing sufficient to 

15 administer the programs under this section and to 

16 provide appropriate technical assistance to Tribal 

17 Colleges and Universities receiving grants under this 

18 section. 

19 ‘‘(b) APPLICATION.—Each Tribal College or Univer20 sity desiring a grant under this section shall submit an 

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

22 and containing such information as the Secretary may re23 quire, including a certification that the Tribal College or 

24 University has established a partnership with 1 or more 
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1 Indian Head Start agencies for the purpose of conducting 

2 the activities described in subsection (a). 

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

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

5 The term ‘institution of higher education’ has the 

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

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

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

9 term ‘Tribal College or University’ means an institu10 tion that is— 

11 ‘‘(A) a Tribal College or University, as de12 fined in section 316(b) of the Higher Education 

13 Act of 1965 (20 U.S.C. 1059c(b)); and 

14 ‘‘(B) determined to be accredited or a can15 didate for accreditation by a nationally recog16 nized accrediting agency or association.’’. 

17 (2) AUTHORIZATION OF APPROPRIATIONS.— 

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

19 is amended— 

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

21 than section 648B or 648C)’’ after ‘‘this sub22 chapter’’; and 

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

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

25 out section 648B $387,000,000 for fiscal year 2006, 
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1 $496,000,000 for fiscal year 2007, $608,000,000 for fis2 cal year 2008, $723,000,000 for fiscal year 2009, and 

3 $841,000,000 for fiscal year 2010. 

4 ‘‘(d) There are authorized to be appropriated to carry 

5 out section 648C, $10,000,000 for fiscal year 2006 and 

6 such sums as may be necessary for each of fiscal years 

7 2007 through 2010.’’. 

8 (3) CONFORMING AMENDMENTS.—Section 640 

9 of the Head Start Act (42 U.S.C. 9835) is amend10 ed— 

11 (A) in subsection (a)— 

12 (i) in paragraph (1), by striking ‘‘sec13 tion 639’’ and inserting ‘‘section 639(a)’’; 

14 (ii) in paragraph (2)— 

15 (I) in the matter preceding sub16 paragraph (A), by inserting ‘‘pursuant 

17 to section 639(a)’’ after ‘‘appro18 priated’’; 

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

20 matter following clause (ii), by insert21 ing ‘‘pursuant to section 639(a)’’ after 

22 ‘‘appropriated’’; and 

23 (III) in subparagraph (C), by in24 serting ‘‘pursuant to section 639(a)’’ 
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1 after ‘‘appropriated’’ each place it ap2 pears; and 

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

4 preceding subparagraph (A), by inserting 

5 ‘‘pursuant to section 639(a)’’ after ‘‘appro6 priated’’; and 

7 (B) in subsection (g)(1), by inserting ‘‘pur8 suant to section 639(a)’’ after ‘‘appropriated’’ 

9 each place it appears. 

10 Subtitle C—Expanding Access to 

11 Quality, Affordable Child Care 

12 SEC. 121. AUTHORIZATION OF APPROPRIATIONS. 

13 Section 658B of the Child Care and Development 

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

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

16 (2) by striking ‘‘subchapter’’ and all that fol17 lows and inserting ‘‘subchapter $3,100,000,000 for 

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

19 2007, $5,100,000,000 for fiscal year 2008, 

20 $6,100,000,000 for fiscal year 2009, and 

21 $7,100,000,000 for fiscal year 2010.’’. 
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1 Subtitle D—Strengthening the 

2 Quality of Child Care 

3 SEC. 131. STATE PLAN REQUIREMENTS RELATING TO 

4 TRAINING. 

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

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

7 by adding at the end the following: 

8 ‘‘(6) TRAINING IN EARLY LEARNING AND

9 CHILDHOOD DEVELOPMENT.—The State plan shall 

10 describe any training requirements that are in effect 

11 within the State that are designed to enable child 

12 care providers to promote the social, emotional, 

13 physical, and cognitive development of children and 

14 that are applicable to child care providers that pro15 vide services for which assistance is made available 

16 under this subchapter in the State.’’. 

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

18 Section 658G of the Child Care and Development 

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

20 to read as follows: 

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

22 CHILD CARE. 

23 ‘‘(a) IN GENERAL.— 

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

25 funds appropriated under section 639(a) for a fiscal 
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1 year shall reserve and use not less than 6 percent 

2 of the funds for activities provided directly, or 

3 through grants or contracts with resource and refer4 ral organizations or other appropriate entities, that 

5 are designed to improve the quality of child care 

6 services. 

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

8 paragraph (1) may only be used to— 

9 ‘‘(A) develop and implement voluntary 

10 guidelines on pre-reading and language skills 

11 and activities, for child care programs in the 

12 State, that are aligned with State standards for 

13 kindergarten through grade 12 or the State’s 

14 general goals for school preparedness; 

15 ‘‘(B) support activities and provide tech16 nical assistance in child care settings to en17 hance early learning for young children, to pro18 mote literacy, and to foster school prepared19 ness; 

20 ‘‘(C) offer training, professional develop21 ment, and educational opportunities for child 

22 care providers that relate to the use of develop23 mentally appropriate and age-appropriate cur24 ricula, and early childhood teaching strategies, 

25 that are scientifically based and aligned with 
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1 the social, emotional, physical, and cognitive de2 velopment of children, including— 

3 ‘‘(i) developing and operating distance 

4 learning child care training infrastructures; 

5 ‘‘(ii) developing model technology6 based training courses; 

7 ‘‘(iii) offering training for caregivers 

8 in informal child care settings; and 

9 ‘‘(iv) offering training for child care 

10 providers who care for infants and toddlers 

11 and children with special needs; 

12 ‘‘(D) engage in programs designed to in13 crease the retention and improve the com14 petencies of child care providers, including wage 

15 incentive programs and initiatives that establish 

16 tiered payment rates for providers that meet or 

17 exceed child care services guidelines, as defined 

18 by the State; 

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

20 effectiveness of child care programs and serv21 ices offered in the State to young children on 

22 improving overall school preparedness; and 

23 ‘‘(F) carry out other activities determined 

24 by the State to improve the quality of child care 

25 services provided in the State and for which 
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1 measurement of outcomes relating to improved 

2 child safety, child well-being, or school pre3 paredness is possible. 

4 ‘‘(b) CERTIFICATION.—For each fiscal year begin5 ning after September 30, 2005, the State shall annually 

6 submit to the Secretary a certification in which the State 

7 certifies and demonstrates that the State was in compli8 ance with subsection (a) during the preceding fiscal year 

9 and describes how the State used funds made available 

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

11 during that preceding fiscal year.’’. 

12 TITLE II—IMPROVEMENT OF EL13 EMENTARY AND SECONDARY 

14 EDUCATION 

15 Subtitle A—Public School Choice, 

16 Supplemental Educational Serv17 ices, and Teacher Quality 

18 SEC. 201. PUBLIC SCHOOL CHOICE CAPACITY. 

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

20 the Elementary and Secondary Education Act of 1965 (20 

21 U.S.C. 6316(b)(1)(E)) is amended— 

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

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

24 case’’; 

25 (2) by redesignating clause (ii) as clause (iii); 
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1 (3) by inserting after clause (i) the following: 

2 ‘‘(ii) SCHOOL CAPACITY.—The obliga3 tion of a local educational agency to pro4 vide the option to transfer to students 

5 under clause (i) is subject to all applicable 

6 State and local health and safety code re7 quirements regarding facility capacity.’’; 

8 and 

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

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

11 ‘‘public school,’’. 

12 (b) GRANTS FOR SCHOOL CONSTRUCTION AND REN13 OVATION.— 

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

15 I of the Elementary and Secondary Education Act 

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

17 adding at the end the following: 

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

19 RENOVATION. 

20 ‘‘(a) PROGRAM AUTHORIZED.—From funds appro21 priated under subsection (g), the Secretary is authorized 

22 to award grants to local educational agencies experiencing 

23 overcrowding in the schools served by the local educational 

24 agencies, for the construction and renovation of safe, 

25 healthy, high-performance school buildings. 
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1 ‘‘(b) APPLICATION.—Each local educational agency 

2 desiring a grant under this section shall submit an appli3 cation to the Secretary at such time, in such manner, and 

4 accompanied by such additional information as the Sec5 retary may require. 

6 ‘‘(c) PRIORITY.—In awarding grants under this sec7 tion, the Secretary shall give priority to local educational 

8 agencies— 

9 ‘‘(1) who have documented difficulties in meet10 ing the public school choice requirements of para11 graph (1)(E), (5)(A), (7)(C)(i), or (8)(A)(i) of sec12 tion 1116(b), or section 1116(c)(10)(C)(vii); and 

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

14 above capacity. 

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

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

17 award grants to local educational agencies that are experi18 encing overcrowding in the schools served by the local edu19 cational agencies. 

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

21 employed by any contractor or subcontractor in the per22 formance of work on any construction funded by a grant 

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

24 less than those prevailing on similar construction in the 

25 locality as determined by the Secretary of Labor under 
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1 subchapter IV of chapter 31 of title 40, United States 

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

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

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

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

6 school in which 1 additional student would increase 

7 the average class size of the school above the aver8 age class size of all schools in the State in which the 

9 school is located. 

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

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

12 school building’ has the meaning given such term in 

13 section 5586. 

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

15 are authorized to be appropriated to carry out this section 

16 $250,000,000 for fiscal year 2006, and such sums as may 

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

18 (2) TABLE OF CONTENTS.—The table of con19 tents of the Elementary and Secondary Education 

20 Act of 1965 (20 U.S.C.6301 note) is amended by in21 serting after the item relating to section 1120B the 

22 following: 

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

23 SEC. 202. SUPPLEMENTAL EDUCATIONAL SERVICES. 

24 Section 1116(e) of the Elementary and Secondary 

25 Education Act of 1965 (20 U.S.C. 6316(e)) is amended— 
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1 (1) in paragraph (4)— 

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

3 semicolon and inserting ‘‘, including criteria 

4 that— 

5 ‘‘(i) ensure that personnel delivering 

6 supplemental educational services to stu7 dents have adequate qualifications; and 

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

9 ensure that personnel delivering supple10 mental educational services to students are 

11 teachers that are highly qualified, as such 

12 term is defined in section 9101;’’; 

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

14 ‘‘and’’ after the semicolon; 

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

16 period and inserting ‘‘; and’’; and 

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

18 ‘‘(F) ensure that the list of approved pro19 viders of supplemental educational services de20 scribed in subparagraph (C) includes a choice 

21 of providers that have sufficient capacity to pro22 vide effective services for children who are lim23 ited English proficient and children with dis24 abilities.’’; 

25 (2) in paragraph (5)(C)— 
26 

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

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

3 acknowledge in writing that, as an approved 

4 provider in the relevant State educational agen5 cy program of providing supplemental edu6 cational services, the provider is deemed to be 

7 a recipient of Federal financial assistance’’; 

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

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

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

11 (4) by inserting after paragraph (5) the fol12 lowing: 

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

14 this section shall be construed to prohibit a local 

15 educational agency from being considered by a State 

16 educational agency as a potential provider of supple17 mental educational services under this subsection, if 

18 such local educational agency meets the criteria 

19 adopted by the State educational agency in accord20 ance with paragraph (5).’’; 

21 (5) in paragraph (13) (as redesignated by para22 graph (3))— 

23 (A) in subparagraph (B)— 

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

25 after the semicolon; 
27 

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

2 after the semicolon; and 

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

5 ‘‘(iv) may employ teachers who are 

6 highly qualified, as such term is defined in 

7 section 9101; and 

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

9 relevant State educational agency’s list de10 scribed in paragraph (4)(C), is deemed to 

11 be a recipient of Federal financial assist12 ance; and’’; and 

13 (B) in subparagraph (C)— 

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

15 by striking ‘‘are’’; 

16 (ii) in clause (i)— 

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

18 addition’’; and 

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

20 semicolon; 

21 (iii) in clause (ii), by striking the pe22 riod and inserting ‘‘; and’’; and 

23 (iv) by adding at the end the fol24 lowing: 
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1 ‘‘(iii) if provided by providers that are 

2 included on the relevant State educational 

3 agency’s list described in paragraph 

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

5 activities of the relevant State educational 

6 agency.’’; and 

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

8 ‘‘(14) CIVIL RIGHTS.—In providing supple9 mental educational services under this subsection, no 

10 State educational agency or local educational agency 

11 may, directly or through contractual, licensing, or 

12 other arrangements with a provider of supplemental 

13 educational services, engage in any form of discrimi14 nation prohibited by— 

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

16 1964; 

17 ‘‘(B) title IX of the Education Amend18 ments of 1972; 

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

20 of 1973; 

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

22 with Disabilities Act; 

23 ‘‘(E) the Age Discrimination Act of 1975; 
29 

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1 ‘‘(F) regulations promulgated under the 

2 authority of the laws listed in subparagraphs 

3 (A) through (E); or 

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

5 SEC. 203. QUALIFICATIONS FOR TEACHERS AND PARA6 PROFESSIONALS. 

7 (a) HIGH OBJECTIVE UNIFORM STATE STANDARD

8 OF EVALUATION.—Section 1119 of the Elementary and 

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

10 amended— 

11 (1) in subsection (a)(2)— 

12 (A) by redesignating subparagraphs (A) 

13 through (C) as clauses (i) through (iii), respec14 tively, and indenting as appropriate; 

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

16 part’’ and inserting the following: 

17 ‘‘(2) STATE PLAN.— 

18 ‘‘(A) IN GENERAL.—As part’’; and 

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

20 ‘‘(B) AVAILABILITY OF STATE STAND21 ARDS.—Each State educational agency shall 

22 make available to teachers in the State the high 

23 objective uniform State standard of evaluation, 

24 as described in section 9101(23)(C)(ii), for the 
30 

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1 purpose of meeting the teacher qualification re2 quirements established under this section.’’; 

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

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

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

6 (3) by inserting after subsection (d) the fol7 lowing: 

8 ‘‘(e) STATE RESPONSIBILITIES.—Each State edu9 cational agency shall ensure that local educational agen10 cies in the State make available all options described in 

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

12 each new or existing paraprofessional for the purpose of 

13 demonstrating the qualifications of the paraprofessional, 

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

15 (4) in subsection (l) (as redesignated by para16 graph (2)), by striking ‘‘subsection (l)’’ and insert17 ing ‘‘subsection (m)’’. 

18 (b) DEFINITION OF HIGHLY QUALIFIED TEACH19 ERS.—Section 9101(23)(B)(ii) is amended— 

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

21 semicolon; 

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

23 the semicolon; and 

24 (3) by adding at the end the following: 
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1 ‘‘(III) in the case of a middle 

2 school teacher, passing a State-ap3 proved middle school generalist exam 

4 when the teacher receives a license to 

5 teach middle school in the State; 

6 ‘‘(IV) obtaining a State middle 

7 school or secondary school social stud8 ies certificate that qualifies the teach9 er to teach history, geography, eco10 nomics, civics, and government in 

11 middle schools or in secondary 

12 schools, respectively, in the State; or 

13 ‘‘(V) obtaining a State middle 

14 school or secondary school science cer15 tificate that qualifies the teacher to 

16 teach earth science, biology, chem17 istry, and physics in middle schools or 

18 secondary schools, respectively, in the 

19 State; and’’. 

20 (c) ENSURING HIGHLY QUALIFIED TEACHERS.— 

21 (1) REQUIREMENT.—The Secretary of Edu22 cation shall improve coordination among the teacher 

23 quality programs authorized under the Elementary 

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

25 6301 et seq.), the Individuals with Disabilities Edu-
32 

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1 cation Act (20 U.S.C. 1400 et seq.), the Higher 

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

3 and the Carl D. Perkins Vocational and Technical 

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

5 provide a unified effort in strengthening the Amer6 ican teaching workforce and ensuring highly quali7 fied teachers. 

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

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

10 Education shall submit a report to the relevant com11 mittees of Congress, that shall be made available on 

12 the website of the Department of Education, on ef13 forts to coordinate programs pursuant to paragraph 

14 (1). 

15 Subtitle B—Adequate Yearly 

16 Progress Determinations 

17 SEC. 221. REVIEW OF ADEQUATE YEARLY PROGRESS DE18 TERMINATIONS FOR SCHOOLS FOR THE 2002–

19 2003 SCHOOL YEAR. 

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

21 local educational agency to provide each school served by 

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

23 determination by the agency that the school did not make 

24 adequate yearly progress for the 2002–2003 school year. 
33 

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

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

3 this section, a local educational agency shall issue and 

4 make publicly available a final determination on whether 

5 the school made adequate yearly progress for the 2002– 

6 2003 school year. 

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

8 section, a local educational agency shall— 

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

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

12 year; and 

13 (2) consider that evidence before making a final 

14 determination under subsection (b). 

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

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

17 consistent with the applicable State plan under section 

18 1111 of the Elementary and Secondary Education Act of 

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

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

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

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

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

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1 68698) (relating to accountability for the academic 

2 achievement of students with the most significant 

3 cognitive disabilities); or 

4 (2) any regulation or guidance that, subsequent 

5 to the date of such original determination, was 

6 issued by the Secretary relating to— 

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

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

12 the Elementary and Secondary Education Act 

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

14 after such children have obtained English pro15 ficiency; or 

16 (C) any requirement under section 

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

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

20 (e) EFFECT OF REVISED DETERMINATION.— 

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

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

24 for the 2002–2003 school year, upon such deter25 mination— 
35 

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

2 educational agency, or the local educational 

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

5 progress shall be terminated; and 

6 (B) any obligations or actions required of 

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

9 be required. 

10 (2) EXCEPTIONS.—Notwithstanding paragraph 

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

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

15 and Secondary Education Act of 1965 (20 

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

18 who transferred to another school under such 

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

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

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

24 6316(e)(9)) (requiring a local educational agen25 cy to continue to provide supplemental edu-
36 

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1 cational services under such section until the 

2 end of the school year). 

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

6 result of not making adequate yearly progress, the 

7 Secretary, a State educational agency, or a local 

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

10 yearly progress for the 2002–2003 school year if 

11 such determination was revised under this section 

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

14 2003 school year. 

15 (f) NOTIFICATION.—The Secretary— 

16 (1) shall require each State educational agency 

17 to notify each school served by the agency of the 

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

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

21 enactment of this section, shall notify the public by 

22 means of the Department of Education’s website of 

23 the review process established under this section. 
37 

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1 SEC. 222. REVIEW OF ADEQUATE YEARLY PROGRESS DE2 TERMINATIONS FOR LOCAL EDUCATIONAL 

3 AGENCIES FOR THE 2002–2003 SCHOOL YEAR. 

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

5 State educational agency to provide each local educational 

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

8 that the local educational agency did not make adequate 

9 yearly progress for the 2002–2003 school year. 

10 (b) APPLICATION OF CERTAIN PROVISIONS.—Except 

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

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

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

15 as such provisions apply to review by a local educational 

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

17 SEC. 223. DEFINITIONS. 

18 In this subtitle: 

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

20 the meaning given to that term in section 

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

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

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

24 a local educational agency (as that term is defined 

25 in section 9101 of the Elementary and Secondary 

26 Education Act of 1965 (20 U.S.C. 7801)) receiving 
38 

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

2 6311 et seq.). 

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

4 of Education. 

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

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

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

10 6311 et seq.). 

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

12 a State educational agency (as that term is defined 

13 in section 9101 of the Elementary and Secondary 

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

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

16 6311 et seq.). 

17 Subtitle C—Technical Assistance 

18 SEC. 251. TECHNICAL ASSISTANCE. 

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

21 7941) is amended— 

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

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

25 (2) by adding at the end the following: 
39 

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1 ‘‘SEC. 9602. TECHNICAL ASSISTANCE. 

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

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

9 practices available through the clearinghouses supported 

10 under the Education Sciences Reform Act of 2002 (20 

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

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

15 the Elementary and Secondary Education Act of 1965 (20 

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

17 relating to section 9601 the following: 

‘‘Sec. 9602 Technical assistance.’’. 

18 TITLE III—PROVIDING A ROAD19 MAP FOR FIRST GENERATION 

20 COLLEGE FOR STUDENTS 

21 SEC. 301. EXPANSION OF TRIO AND GEARUP. 

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

23 et seq.) is amended— 
40 

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

2 ‘‘$700,000,000 for fiscal year 1999’’ and inserting 

3 ‘‘$1,000,000,000 for fiscal year 2006’’; and 

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

5 following: 

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

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

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

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

10 fiscal years.’’. 

11 TITLE IV—COLLEGE TUITION 

12 RELIEF FOR STUDENTS AND 

13 THEIR FAMILIES THROUGH 

14 PELL GRANTS 

15 SEC. 401. PELL GRANTS TAX TABLES HOLD HARMLESS. 

16 Notwithstanding any other provision of law, the an17 nual updates to the allowance for State and other taxes 

18 in the tables used in the Federal Need Analysis Method19 ology to determine a student’s expected family contribu20 tion for the award year 2005–2006 under part F of title 

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

22 1087kk et seq.), published in the Federal Register on 

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

24 shall not apply to a student to the extent the updates will 
41 

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1 reduce the amount of Federal student assistance for which 

2 the student is eligible. 

3 SEC. 402. SENSE OF THE SENATE REGARDING INCREASING 

4 THE MAXIMUM PELL GRANT. 

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

6 findings: 

7 (1) Increasing the percentage of individuals who 

8 obtain a postsecondary education has become in9 creasingly important, not just to the individual bene10 ficiary, but to the Nation as a whole. The growth 

11 and continued expansion of the Nation’s economy is 

12 heavily dependent on an educated and highly skilled 

13 workforce. 

14 (2) The opportunity to gain a postsecondary 

15 education also is important to the Nation as a 

16 means to help advance the American ideals of 

17 progress and equality. 

18 (3) The Federal Government plays an invalu19 able role in making student financial aid available to 

20 ensure that qualified students are able to attend col21 lege, regardless of their financial means. Since the 

22 inception of the Pell Grant program in 1973, nearly 

23 80,000,000 grants have helped low- and middle-in24 come students go to college, enrich their lives, and 

25 become productive members of society. 
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1 (4) Nationwide, almost 63 percent of secondary 

2 school graduates continue on to higher education im3 mediately after completing secondary school. This 

4 degree of college participation would not exist with5 out the Federal investment in student aid, especially 

6 the Pell Grant program. More than 4,000,000 low7 and middle-income students receive Pell Grants; 95 

8 percent of whom have a family income of not more 

9 than $40,000. 

10 (5) In the next 10 years, the number of under11 graduate students enrolled in the Nation’s colleges 

12 and universities will increase by 15 percent to more 

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

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

15 The continued investment in the Pell Grant program 

16 is essential if college is to remain an achievable part 

17 of the American dream. 

18 (6) Increasing the maximum Pell Grant to 

19 $5,100 would allow more than 430,000 additional 

20 students to benefit from the program. 

21 (7) Increasing the maximum Pell Grant to 

22 $5,100 would result in 200,000 new Pell Grant re23 cipients. 

24 (8) Pell Grant recipients are more likely to 

25 graduate with student loan debt and to amass more 
43 

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1 debt than other student borrowers. Increasing the 

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

3 disparity. 

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

5 Senate that— 

6 (1) the maximum Pell Grant should be in7 creased to $5,100 during award year 2006–2007; 

8 and 

9 (2) the maximum Pell Grant amount set by 

10 Congress should be the amount eligible students re11 ceive. 

12 SEC. 403. ESTABLISHMENT OF A PELL DEMONSTRATION 

13 PROGRAM. 

14 (a) FINDINGS.—Congress finds that: 

15 (1) A student remains eligible to receive a Fed16 eral Pell Grant as long as the student is income-eli17 gible and has not received a bachelor’s degree. 

18 (2) By encouraging persistence and degree ac19 quisition in a timely manner, the Federal Govern20 ment, in effect, saves money— 

21 (A) by reducing the courses that do not 

22 lead to a degree; and 

23 (B) by helping students get the financial 

24 benefits of a college degree as soon as possible. 

25 (b) PELL DEMONSTRATION PROGRAM.— 
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1 (1) AUTHORIZATION.—The Secretary of Edu2 cation shall establish a demonstration program to fa3 cilitate the ability of low-income students to com4 plete the students’ degree within 150 percent of the 

5 time expected to complete such degree. 

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

7 award competitive grants to institutions of higher 

8 education to enable students who are eligible to re9 ceive Federal Pell Grants under subpart 1 of part A 

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

11 U.S.C. 1070a) to enroll in courses in the summer at 

12 such institutions to expedite the students’ gradua13 tion from the institutions. 

14 (3) AUTHORIZATION OF APPROPRIATIONS.— 

15 There is authorized to be appropriated to carry out 

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

17 years 2006 through 2008. 

18 TITLE V—TUITION FREE COL19 LEGE FOR MATHEMATICS, 

20 SCIENCE, AND SPECIAL EDU21 CATION TEACHERS 

22 SEC. 501. PURPOSE. 

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

24 tuition free for future mathematics, science, and special 

25 education teachers and to provide additional assistance to 
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1 students eligible to receive a Federal Pell Grant under 

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

3 Act of 1965 (20 U.S.C. 1070a). 

4 SEC. 502. TUITION FREE COLLEGE FOR MATHEMATICS, 

5 SCIENCE, AND SPECIAL EDUCATION TEACH6 ERS. 

7 (a) ADDITIONAL AMOUNTS FOR TEACHERS IN MATH8 EMATICS, SCIENCE, AND SPECIAL EDUCATION.— 

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

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

11 10(c)(3)) is amended by striking ‘‘$17,500’’ and in12 serting ‘‘$23,000’’. 

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

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

15 1087j(c)(3)) is amended by striking ‘‘$17,500’’ and 

16 inserting ‘‘$23,000’’. 

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

18 this section shall apply only with respect to eligible individ19 uals who are new borrowers on or after October 1, 1998. 

20 SEC. 503. OFFSET FOR TUITION FREE COLLEGE FOR MATH21 EMATICS, SCIENCE, AND SPECIAL EDU22 CATION TEACHERS. 

23 (a) SPECIAL ALLOWANCES.— 
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1 (1) IN GENERAL.—Section 438(b)(2)(B) of the 

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

3 1(b)(2)(B)) is amended— 

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

5 after September 30, 2004, and before January 

6 1, 2006,’’ and inserting ‘‘or refunded on or 

7 after the date of enactment of the Taxpayer8 Teacher Protection Act of 2004,’’; and 

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

10 following: 

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

12 (ii), the quarterly rate of the special allow13 ance shall be the rate determined under 

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

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

16 the case may be, for loans— 

17 ‘‘(I) originated, transferred, or 

18 purchased on or after the date of en19 actment of the Taxpayer-Teacher Pro20 tection Act of 2004; 

21 ‘‘(II) financed by an obligation 

22 that has matured, been retired, or 

23 defeased on or after the date of enact24 ment of the Taxpayer-Teacher Protec25 tion Act of 2004; 
47 

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1 ‘‘(III) which the special allowance 

2 was determined under such subpara3 graphs or paragraph, as the case may 

4 be, on or after the date of enactment 

5 of the Taxpayer-Teacher Protection 

6 Act of 2004; 

7 ‘‘(IV) for which the maturity 

8 date of the obligation from which 

9 funds were obtained for such loans 

10 was extended on or after the date of 

11 enactment of the Taxpayer-Teacher 

12 Protection Act of 2004; or 

13 ‘‘(V) sold or transferred to any 

14 other holder on or after the date of 

15 enactment of the Taxpayer-Teacher 

16 Protection Act of 2004.’’. 

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

18 amendment made by paragraph (1) shall be con19 strued to abrogate a contractual agreement between 

20 the Federal Government and a student loan pro21 vider. 

22 (b) AVAILABLE FUNDS FROM REDUCED EXPENDI23 TURES.— 

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

25 Secretary of Education as a result of reduced ex-
48 

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1 penditures under section 438 of the Higher Edu2 cation Act of 1965 (20 U.S.C. 1087–1) secured by 

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

4 by the Secretary for loan cancellation and loan for5 giveness for teachers under sections 428J and 460 

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

7 1078–10, 1087j), as amended by section 502 of this 

8 Act. 

9 (2) REMAINING FUNDS.— 

10 (A) IN GENERAL.—Any such funds re11 maining after carrying out paragraph (1) shall 

12 be used by the Secretary of Education to make 

13 payments to each nonprofit lender in an 

14 amount that bears the same relation to the re15 maining funds as the amount the nonprofit 

16 lender receives for fiscal year 2005 under sec17 tion 438(b)(2)(B) of the Higher Education Act 

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

19 the total amount received by nonprofit lenders 

20 for fiscal year 2005 under such section. 

21 (B) DEFINITION OF NONPROFIT LEND22 ER.—In this paragraph the term ‘‘nonprofit 

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

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

25 1965 (20 U.S.C.1085(d)) that— 
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1 (i) is an organization described in sec2 tion 501(c)(3) of the Internal Revenue 

3 Code of 1986; 

4 (ii) is a nonprofit entity as defined by 

5 applicable State law; and 

6 (iii) meets the following requirements: 

7 (I) The nonprofit lender does not 

8 confer a salary or benefits to any em9 ployee of the nonprofit lender in an 

10 amount that is in excess of the salary 

11 and benefits provided to the Secretary 

12 of Education by the Department of 

13 Education. 

14 (II) The nonprofit lender does 

15 not maintain an ongoing relationship 

16 whereby the nonprofit lender passes 

17 on revenue directly or indirectly 

18 through lease, securitization, resale, 

19 or any other financial instrument to a 

20 for-profit entity or to shareholders. 

21 (III) The nonprofit lender does 

22 not offer benefits to a borrower in a 

23 manner directly or indirectly predi24 cated on such borrower’s participa25 tion— 
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1 (aa) in a program under 

2 part B or D of title IV of the 

3 Higher Education Act of 1965 

4 (20 U.S.C. 1071 et seq., 1087a 

5 et seq.); or 

6 (bb) with any particular 

7 lender. 

8 (IV) The nonprofit lender cer9 tifies that the nonprofit lender uses 

10 the payment received pursuant to sub11 paragraph (A) to confer grant or 

12 scholarship benefits to students who 

13 are eligible to receive Federal Pell 

14 Grants under subpart 1 of part A of 

15 title IV of the Higher Education Act 

16 of 1965 (20 U.S.C. 1070a). 

17 (V) The nonprofit lender is sub18 ject to public oversight through either 

19 a State charter, or through not less 

20 than 50 percent of the nonprofit lend21 er’s board of directors consisting of 

22 State appointed representatives. 

23 (VI) The nonprofit lender does 

24 not engage in the marketing of the 

25 relative value of programs under part 
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1 B of title IV of the Higher Education 

2 Act of 1965 as compared to programs 

3 under part D of title IV of the Higher 

4 Education Act of 1965, nor does the 

5 nonprofit lender engage in the mar6 keting of loans or programs offered by 

7 for-profit lenders. This subclause shall 

8 not be construed to prohibit the non9 profit lender from conferring basic in10 formation on lenders under part B of 

11 title IV of the Higher Education Act 

12 of 1965 and the related benefits of13 fered by such nonprofit lenders. 

14 TITLE VI—HOPE AND LIFETIME 

15 LEARNING CREDITS TO BE 

16 REFUNDABLE 

17 SEC. 601. HOPE AND LIFETIME LEARNING CREDITS TO BE 

18 REFUNDABLE. 

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

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

21 Lifetime Learning credits) is hereby moved to subpart C 

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

24 (b) TECHNICAL AMENDMENTS.— 
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1 (1) Section 36 of such Code is redesignated as 

2 section 37. 

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

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

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

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

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

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

9 such Code is amended by striking ‘‘section 

10 25A(g)(2)’’ and inserting ‘‘section 36(g)(2)’’. 

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

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

13 inserting ‘‘section 36’’. 

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

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

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

17 36(g)(2)’’, 

18 (B) by striking ‘‘section 25A(f)(2)’’ in the 

19 matter following paragraph (2)(B) and insert20 ing ‘‘section 36(f)(2)’’, and 

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

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

23 (7) Section 222 of such Code is amended— 
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1 (A) by striking ‘‘section 25A’’ in subpara2 graph (A) of subsection (c)(2) and inserting 

3 ‘‘section 36’’, 

4 (B) by striking ‘‘section 25A(f)’’ in sub5 section (d)(1) and inserting ‘‘section 36(f)’’, 

6 and 

7 (C) by striking ‘‘section 25A(g)(2)’’ in sub8 section (d)(1) and inserting ‘‘section 36(g)(2)’’. 

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

10 (A) by striking ‘‘section 25A(g)(2)’’ in sub11 clause (I) of subsection (c)(3)(B)(v) and insert12 ing ‘‘section 36(g)(2)’’, 

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

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

15 ‘‘section 36’’, and 

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

17 clause (i) of subsection (e)(3)(B) and inserting 

18 ‘‘section 36(b)(3)’’. 

19 (9) Section 530 of such Code is amended— 

20 (A) by striking ‘‘section 25A(g)(2)’’ in sub21 clause (I) of subsection (d)(2)(C)(i) and insert22 ing ‘‘section 36(g)(2)’’, 

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

24 (II) of subsection (d)(2)(C)(i) and inserting 

25 ‘‘section 36’’, and 
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1 (C) by striking ‘‘section 25A(g)(2)’’ in 

2 clause (iii) of subsection (d)(4)(B) and inserting 

3 ‘‘section 36(g)(2)’’. 

4 (10) Subsection (e) of section 6050S of such 

5 Code is amended by striking ‘‘section 25A’’ and in6 serting ‘‘section 36’’. 

7 (11) Subparagraph (J) of section 6213(g)(2) of 

8 such Code is amended by striking ‘‘section 

9 25A(g)(1)’’ and inserting ‘‘section 36(g)(1)’’. 

10 (12) Paragraph (2) of section 1324(b) of title 

11 31, United States Code, is amended by inserting be12 fore the period ‘‘or from section 36 of such Code’’. 

13 (13) The table of sections for subpart C of part 

14 IV of subchapter A of chapter 1 of the Internal Rev15 enue Code of 1986 is amended by striking the item 

16 relating to section 36 and inserting the following: 

‘‘Sec. 36 Hope and Lifetime Learning credits. 

‘‘Sec. 37 Overpayments of tax.’’. 

17 (14) The table of sections for subpart A of such 

18 part IV is amended by striking the item relating to 

19 section 25A. 

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

21 this section shall apply to taxable years beginning after 

22 December 31, 2004. 

Calendar No. 82 

109TH CONGRESS 

1ST SESSION S. 848 

A BILL 

To improve education, and for other purposes. 

APRIL 20, 2005 

Read the second time and placed on the calendar