I 

117TH CONGRESS 

1ST SESSION H. R. 3704 

To have education funds follow the student. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 4, 2021 

Mr. GOOD of Virginia (for himself, Mrs. RODGERS of Washington, Mr. WEBER

of Texas, Mrs. MILLER of Illinois, Mr. DESJARLAIS, Mr. CAWTHORN, Mr. 

OWENS, Ms. HERRELL, Mr. BUDD, and Mr. MOORE of Alabama) introduced the following bill; which was referred to the Committee on Ways 

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

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

for consideration of such provisions as fall within the jurisdiction of the 

committee concerned 

A BILL 

To have education funds follow the student. 

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 ‘‘Children Have Oppor5 tunities in Classrooms Everywhere Act’’. 


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1 SEC. 2. FEDERAL FUNDING UNDER THE ELEMENTARY AND 

2 SECONDARY EDUCATION ACT OF 1965 TO 

3 FOLLOW THE STUDENT. 

4 Title VIII of the Elementary and Secondary Edu5 cation Act of 1965 (20 U.S.C. 7801 et seq.) is amended 

6 by adding at the end the following: 

7 ‘‘PART H—FUNDS TO FOLLOW THE STUDENT 

8 ‘‘SEC. 8701. FUNDS TO FOLLOW THE STUDENT. 

9 ‘‘(a) DEFINITIONS.—In this section: 

10 ‘‘(1) 529 EDUCATION SAVINGS PLAN AC11 COUNT.—The term ‘529 education savings plan ac12 count’ means a qualified tuition program (as defined 

13 in section 529(b)(1)(A) of the Internal Revenue 

14 Code of 1986). 

15 ‘‘(2) ELIGIBLE CHILD.—The term ‘eligible 

16 child’ means a child who is from a household, the 

17 taxable income of which for the most recently com18 pleted taxable year is not more than 130 percent of 

19 an amount equal to the poverty level, as determined 

20 by using criteria of poverty established by the Bu21 reau of the Census. 

22 ‘‘(3) HOME SCHOOL.—The term ‘home school’ 

23 means a home school as defined by the laws of the 

24 State in which the eligible child resides. 

25 ‘‘(b) FUNDS TO FOLLOW THE STUDENT.— 


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1 ‘‘(1) IN GENERAL.—Notwithstanding any other 

2 provision of law and to the extent permitted under 

3 State law, a State educational agency shall allocate 

4 grant funds provided under title I, subparts 2 and 

5 3 of part B of title II, and titles III, IV, V, and VI, 

6 for the purposes of ensuring that funding under 

7 such titles follows children, to the public school the 

8 children attend or for the expenses described in sec9 tion 529(c)(7) of the Internal Revenue Code of 

10 1986. 

11 ‘‘(2) PLAN.— 

12 ‘‘(A) IN GENERAL.—Each State that car13 ries out allocations described in paragraph (1) 

14 shall establish a plan that complies with the fol15 lowing: 

16 ‘‘(i) The parent or guardian of each 

17 eligible child in the State who desires ac18 cess to the funds described in paragraph 

19 (1) shall annually submit to the State edu20 cational agency by not later than April 30, 

21 a paper or electronic application form that 

22 includes the following: 

23 ‘‘(I) The parent or guardian’s 

24 taxable income based on the Federal 


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1 tax return of the parent or guardian 

2 for the prior tax year. 

3 ‘‘(II) The eligible child’s date of 

4 birth, place of residence, school dis5 trict, and school in which the eligible 

6 child will be enrolled for the subse7 quent school year. 

8 ‘‘(III) If the eligible child will be 

9 enrolled in a private school or home 

10 school for the subsequent school year, 

11 confirmation that the eligible child 

12 has a 529 education savings plan ac13 count, including the necessary details 

14 of such account to enable the State to 

15 deposit funds available under this sec16 tion into such account. 

17 ‘‘(ii) Not later than May 14 of each 

18 year, the State educational agency shall 

19 submit to the Secretary the application 

20 forms for all applicants under clause (i). 

21 ‘‘(iii) Not later than July 1 of each 

22 year and based on the information sub23 mitted under clause (i), the State edu24 cational agency shall— 


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1 ‘‘(I) if the eligible child will be 

2 enrolled in a private school or home 

3 school for the subsequent school year, 

4 deposit the amount equal to the con5 centration distribution and basic dis6 tribution applicable for the eligible 

7 child under subparagraphs (B) and 

8 (C) of subsection (c)(2), into the 529 

9 education savings plan account of the 

10 eligible child; and 

11 ‘‘(II) if the eligible child will be 

12 enrolled in a public school for the sub13 sequent school year, distribute the 

14 amount equal to the concentration 

15 distribution and basic distribution ap16 plicable for the eligible child under 

17 subparagraphs (B) and (C) of sub18 section (c)(2), to such public school. 

19 ‘‘(B) DATA COLLECTION.—Information 

20 collected under this section by the State shall 

21 be used for the sole purposes of calculating the 

22 allocation of funds and distribution of funds 

23 under this section. 

24 ‘‘(C) DATA PRIVACY PROTECTION.—Infor25 mation collected under this section shall be subVerDate Sep 11 2014 02:11 Jul 13, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3704.IH H3704

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1 ject to the privacy protections outlined in sec2 tion 444 of the General Education Provisions 

3 Act (20 U.S.C. 1232g; commonly referred to as 

4 the ‘Family Educational Rights and Privacy 

5 Act of 1974’). 

6 ‘‘(c) CALCULATION OF AMOUNTS TO BE DISTRIB7 UTED.— 

8 ‘‘(1) IN GENERAL.—From the amounts pro9 vided to carry out title I, subparts 2 and 3 of part 

10 B of title II, and titles III, IV, V, and VI, and based 

11 on the information submitted by State educational 

12 agencies under subsection (b)(2)(A)(ii), the Sec13 retary shall— 

14 ‘‘(A) determine the eligibility based on the 

15 information provided under subsection 

16 (b)(2)(A)(i) and verify that the child for whom 

17 the information is submitted is an eligible child; 

18 ‘‘(B) determine the income bracket for 

19 such eligible child; and 

20 ‘‘(C) make grants to State educational 

21 agencies in the amount determined under para22 graph (2) by not later than 30 days after the 

23 date the Secretary receives the information 

24 under subsection (b)(2)(A)(ii). 

25 ‘‘(2) AMOUNT OF GRANTS.— 


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1 ‘‘(A) IN GENERAL.—The grant amount 

2 provided to a State educational agency shall be 

3 equal to the total distribution amount deter4 mined under subparagraphs (B) and (C) for all 

5 eligible children in the State. 

6 ‘‘(B) CONCENTRATION DISTRIBUTION.— 

7 An eligible child who is from a household, the 

8 taxable income of which for the most recently 

9 completed taxable year is not more than 100 

10 percent of an amount equal to the poverty level, 

11 as measured by the most recent Small Area In12 come and Poverty Estimates of the Bureau of 

13 the Census, shall receive a concentration dis14 tribution according to the following: 

15 ‘‘(i) If the eligible child resides in an 

16 area served by a school district in which 

17 not less than 1 percent and not more than 

18 9 percent of the elementary school and sec19 ondary school students are from a house20 hold, the taxable income of which for the 

21 most recently completed taxable year is not 

22 more than 100 percent of an amount equal 

23 to the poverty level, as measured by the 

24 most recent Small Area Income and PovVerDate Sep 11 2014 02:11 Jul 13, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3704.IH H3704

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1 erty Estimates of the Bureau of the Cen2 sus, the eligible child shall receive $50. 

3 ‘‘(ii) If the eligible child resides in an 

4 area served by a school district in which 

5 not less than 10 percent and not more 

6 than 19 percent of the elementary school 

7 and secondary school students are from a 

8 household, the taxable income of which for 

9 the most recently completed taxable year is 

10 not more than 100 percent of an amount 

11 equal to the poverty level, as measured by 

12 the most recent Small Area Income and 

13 Poverty Estimates of the Bureau of the 

14 Census, the eligible child shall receive 

15 $100. 

16 ‘‘(iii) If the eligible child resides in an 

17 area served by a school district in which 

18 not less than 20 percent and not more 

19 than 29 percent of the elementary school 

20 and secondary school students are from a 

21 household, the taxable income of which for 

22 the most recently completed taxable year is 

23 not more than 100 percent of an amount 

24 equal to the poverty level, as measured by 

25 the most recent Small Area Income and 


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1 Poverty Estimates of the Bureau of the 

2 Census, the eligible child shall receive 

3 $150. 

4 ‘‘(iv) If the eligible child resides in an 

5 area served by a school district in which 

6 not less than 30 percent and not more 

7 than 39 percent of the elementary school 

8 and secondary school students are from a 

9 household, the taxable income of which for 

10 the most recently completed taxable year is 

11 not more than 100 percent of an amount 

12 equal to the poverty level, as measured by 

13 the most recent Small Area Income and 

14 Poverty Estimates of the Bureau of the 

15 Census, the eligible child shall receive 

16 $200. 

17 ‘‘(v) If the eligible child resides in an 

18 area served by a school district in which 

19 not less than 40 percent and not more 

20 than 49 percent of the elementary school 

21 and secondary school students are from a 

22 household, the taxable income of which for 

23 the most recently completed taxable year is 

24 not more than 100 percent of an amount 

25 equal to the poverty level, as measured by 


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1 the most recent Small Area Income and 

2 Poverty Estimates of the Bureau of the 

3 Census, the eligible child shall receive 

4 $250. 

5 ‘‘(vi) If the eligible child resides in an 

6 area served by a school district in which 50 

7 percent or more of the elementary school 

8 and secondary school students are from a 

9 household, the taxable income of which for 

10 the most recently completed taxable year is 

11 not more than 100 percent of an amount 

12 equal to the poverty level, as measured by 

13 the most recent Small Area Income and 

14 Poverty Estimates of the Bureau of the 

15 Census, the eligible child shall receive 

16 $300. 

17 ‘‘(C) BASIC DISTRIBUTION.—In addition to 

18 a concentration distribution under subpara19 graph (B), an eligible child shall receive a basic 

20 distribution based on the income bracket appli21 cable for such eligible child and according to a 

22 formula established by the Secretary in which 

23 benefits are flat for everyone at or below 100 

24 percent of the Federal poverty level and deVerDate Sep 11 2014 02:11 Jul 13, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3704.IH H3704

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1 crease at an even rate from 100 percent to 130 

2 percent of the Federal poverty level. 

3 ‘‘(d) NOTIFICATION OF AVAILABILITY OF FUNDS.— 

4 Not later than 100 days after the date of enactment of 

5 the Children Have Opportunities in Classrooms Every6 where Act, and annually for each of the 5 years thereafter, 

7 each State that carries out allocations described in sub8 section (b)(1) shall inform each parent or guardian of a 

9 child eligible for assistance under the supplemental nutri10 tion assistance program under the Food and Nutrition Act 

11 of 2008 (7 U.S.C. 2011 et seq.) or the program of block 

12 grants for States for temporary assistance for needy fami13 lies established under part A of title IV of the Social Secu14 rity Act (42 U.S.C. 601 et seq.) of the availability of as15 sistance under this section. 

16 ‘‘(e) APPLICATION OF PARTICIPATION OF CHILDREN

17 ENROLLED IN PRIVATE SCHOOLS.—The provisions of sec18 tion 1117 shall apply to this section. 

19 ‘‘(f) RULE OF CONSTRUCTION.— 

20 ‘‘(1) FEDERALLY FUNDED SCHOOL FOOD PRO21 GRAMS.—Nothing in this section shall be construed 

22 to preclude a child eligible for assistance under the 

23 free and reduced price school lunch program estab24 lished under the Richard B. Russell National School 


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1 Lunch Act (42 U.S.C. 1751 et seq.) from receiving 

2 assistance under such program. 

3 ‘‘(2) PROHIBITION OF CONTROL OVER NON4 PUBLIC EDUCATION PROVIDERS.—Nothing in this 

5 section shall permit, allow, encourage, or authorize 

6 Federal or State control over non-public education 

7 providers.’’. 

8 SEC. 3. 529 ACCOUNT FUNDING FOR HOMESCHOOL AND AD9 DITIONAL ELEMENTARY AND SECONDARY EX10 PENSES. 

11 (a) IN GENERAL.—Section 529(c)(7) of the Internal 

12 Revenue Code of 1986 is amended to read as follows: 

13 ‘‘(7) TREATMENT OF ELEMENTARY AND SEC14 ONDARY TUITION AND RESOURCES.—Any reference 

15 in this section to the term ‘qualified higher edu16 cation expense’ shall include a reference to the fol17 lowing expenses in connection with enrollment or at18 tendance at, or for students enrolled at or attending, 

19 an elementary or secondary public, private, or reli20 gious school: 

21 ‘‘(A) Tuition. 

22 ‘‘(B) Curriculum and curricular materials. 

23 ‘‘(C) Books or other instructional mate24 rials. 

25 ‘‘(D) Online educational materials. 


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1 ‘‘(E) Tuition for tutoring or educational 

2 classes outside of the home, including at a tu3 toring facility, but only if the tutor or instruc4 tor is not related to the student. 

5 ‘‘(F) Fees for a nationally standardized 

6 norm-referenced achievement test, an advanced 

7 placement examination, or any examinations re8 lated to college or university admission. 

9 ‘‘(G) Fees for dual enrollment in an insti10 tution of higher education. 

11 ‘‘(H) Educational therapies for students 

12 with disabilities provided by a licensed or ac13 credited practitioner or provider, including oc14 cupational, behavioral, physical, and speech-lan15 guage therapies. 

16 Such term shall include expenses for the purposes 

17 described in subparagraphs (A) through (H) in con18 nection with a homeschool (whether treated as a 

19 homeschool or a private school for purposes of appli20 cable State law).’’. 

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

22 this section shall apply to distributions made after the 

23 date of the enactment of this Act. 


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1 SEC. 4. INCREASED ADDITIONAL TAX ON GRANTS NOT 

2 USED FOR EDUCATIONAL PURPOSES. 

3 Section 529(c)(6) of the Internal Revenue Code of 

4 1986 is amended— 

5 (1) by striking ‘‘The tax’’ and inserting the fol6 lowing: 

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

8 subparagraph (B), the tax’’, and 

9 (2) by adding at the end the following new sub10 paragraph: 

11 ‘‘(B) INCREASED TAX ON AMOUNTS AT12 TRIBUTABLE TO CERTAIN GRANTS.— 

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

14 distribution from a qualified contribution 

15 program that includes amounts attrib16 utable to a qualified grant— 

17 ‘‘(I) section 530(d)(4) shall be 

18 applied separately to amounts attrib19 utable to qualified grants and to other 

20 amounts, and 

21 ‘‘(II) in applying such section to 

22 amounts attributable to qualified 

23 grants, such section shall be applied 

24 by substituting ‘100 percent’ for ‘10 

25 percent’. 


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1 ‘‘(ii) ATTRIBUTION RULES.—For pur2 poses of this subparagraph— 

3 ‘‘(I) any earnings on contribu4 tions from a qualified grant shall not 

5 be treated as attributed to a qualified 

6 grant, and 

7 ‘‘(II) distributions from a quali8 fied tuition program described in 

9 clause (i) shall be treated as distrib10 uted first from amounts other than 

11 amounts attributable to a qualified 

12 grant and then from amounts attrib13 utable to a qualified grant. 

14 ‘‘(iii) QUALIFIED GRANT.—For pur15 poses of this subparagraph, the term 

16 ‘qualified grant’ means any grant under 

17 section 8701 of the Elementary and Sec18 ondary Education Act of 1965.’’. 

Æ 


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