142 
‘‘(B) design and implement an integrated 
system of high-quality early learning programs 
and services; 
‘‘(C) in collaboration with Indian tribes in 
the State, ensure that the actions described in 
(A) and (B) are taken to ensure that high-qual-
ity early learning programs and services are 
provided to Indian children in the State, which 
may be accomplished through subgrants to such 
tribes; and 
‘‘(D) ensure that any use of assessments 
conforms with the recommendations of the Na-
tional Research Council’s reports on early child-
hood.’’. 
SEC. 202. QUALIFIED SCHOLARSHIPS FOR EDUCATION AND 
CULTURAL BENEFITS. 
(a) IN GENERAL.—Section 117 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(e) INDIAN EDUCATION
AND CULTURAL BENE-
FITS.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, gross income does not in-
clude the value of— 
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‘‘(A) any qualified Indian education ben-
efit, or 
‘‘(B) any qualified Indian cultural benefit. 
‘‘(2) QUALIFIED
INDIAN
EDUCATION
BEN-
EFIT.—For purposes of this subsection, the term 
‘qualified Indian education benefit’ means— 
‘‘(A) any educational grant or benefit pro-
vided, directly or indirectly, to a member of an 
Indian tribe, including a spouse or dependent of 
such a member, by the Federal Government 
through a grant to or a contract or compact 
with an Indian tribe or tribal organization or 
through a third-party program funded by the 
Federal Government, and 
‘‘(B) any educational grant or benefit pro-
vided or purchased by an Indian tribe or tribal 
organization to or for a member of an Indian 
tribe, including a spouse or dependent of such 
a member. 
‘‘(3) QUALIFIED INDIAN CULTURAL BENEFIT.— 
For purposes of this subsection, the term ‘qualified 
Indian cultural benefit’ means— 
‘‘(A) any grant or benefit provided, directly 
or indirectly, to a member of an Indian tribe, 
including a spouse or dependent of such a mem-
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ber, by the Federal Government through a 
grant to or a contract or compact with an In-
dian tribe or tribal organization or through a 
third-party program funded by the Federal 
Government, for the study of the language, cul-
ture, and ways of life of the tribe, and 
‘‘(B) any grant or benefit provided or pur-
chased by an Indian tribe or tribal organization 
to or for a member of an Indian tribe, including 
a spouse or dependent of such a member, for 
the study of the language, culture, and ways of 
life of the tribe. 
‘‘(4) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) INDIAN
TRIBE.—The term ‘Indian 
tribe’ has the meaning given such term by sec-
tion 45A(c)(6). 
‘‘(B) TRIBAL
ORGANIZATION.—The term 
‘tribal organization’ has the meaning given such 
term by section 4(l) of the Indian Self-Deter-
mination and Education Assistance Act. 
‘‘(C) DEPENDENT.—The term ‘dependent’ 
has the meaning given such term by section 
152, determined without regard to subsections 
(b)(1), (b)(2), and (d)(1)(B) thereof. 
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