I 
117TH CONGRESS 
1ST SESSION 
H. R. 499 
To amend the Elementary and Secondary Education Act of 1965 to allow 
parents of eligible military dependent children to establish Military Edu-
cation Savings Accounts, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 28, 2021 
Mr. BANKS (for himself, Mr. BAIRD, Mr. BUCSHON, Mr. BISHOP of North 
Carolina, Mr. BURGESS, Mr. CHABOT, Mr. DESJARLAIS, Mr. HAGEDORN, 
Mr. LAMBORN, Mr. LATTA, Mr. MCHENRY, Mrs. MILLER of West Vir-
ginia, Mr. NORMAN, Mr. POSEY, Mr. RICE of South Carolina, Mr. TAY-
LOR, and Mr. WITTMAN) introduced the following bill; which was referred 
to the Committee on Education and Labor, and in addition to the Com-
mittees on Ways and Means, and Appropriations, for a period to be sub-
sequently determined by the Speaker, in each case for consideration of 
such provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Elementary and Secondary Education Act 
of 1965 to allow parents of eligible military dependent 
children to establish Military Education Savings Ac-
counts, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Education Savings Ac-
counts for Military Families Act of 2021’’. 
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SEC. 2. MILITARY EDUCATION SAVINGS ACCOUNTS. 
Title VII of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7701 et seq.) is amended 
by inserting after section 7012 the following: 
‘‘SEC. 7012A. MILITARY EDUCATION SAVINGS ACCOUNTS. 
‘‘(a) IN GENERAL.—The Secretary of Education, in 
consultation with the Secretary of Defense, shall carry out 
a program under which the Secretary of Education shall— 
‘‘(1) at the request of a parent of an eligible 
military dependent child, establish an account on be-
half of such child (to be known as a ‘Military Edu-
cation Savings Account’) into which the Secretary 
shall deposit funds in an amount determined under 
subsection (d); and 
‘‘(2) establish a procedure under which the par-
ent of the child may use funds in the account to pay 
for the educational expenses of the child in accord-
ance with this section. 
‘‘(b) APPLICATION.— 
‘‘(1) IN GENERAL.—To be eligible to participate 
in the program under this section for a school year, 
a parent of an eligible military dependent child shall 
submit an application to the Secretary in accordance 
with this subsection. 
‘‘(2) APPLICATION PROCESS.—In carrying out 
paragraph (1), the Secretary shall— 
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‘‘(A) accept applications on a year-round 
basis and establish procedures for approving 
applications in an expeditious manner; and 
‘‘(B) create a standardized form that par-
ents can use to apply for the program and en-
sure that such form is readily available in writ-
ten and electronic formats, including on a pub-
licly accessible website. 
‘‘(3) APPROVAL.—Subject to the availability of 
funds to carry out this section, the Secretary shall 
approve the application of a parent to establish a 
Military Education Savings Account if— 
‘‘(A) the application is submitted in ac-
cordance with the application process estab-
lished by the Secretary pursuant to this sub-
section; 
‘‘(B) the application demonstrates that the 
child on whose behalf the Military Education 
Savings Account is to be established is an eligi-
ble military dependent child; and 
‘‘(C) the parent who submits the applica-
tion enters into a written agreement with the 
Secretary under which the parent agrees— 
‘‘(i) to provide the child with instruc-
tion in, at minimum, the fields of reading, 
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language, mathematics, science, and social 
studies; 
‘‘(ii) to not enroll the child in a public 
elementary school or a public secondary 
school, on a full-time basis while partici-
pating in the program; 
‘‘(iii) to use funds in the Military 
Education Savings Account only for the 
purposes authorized under this section; 
and 
‘‘(iv) to comply with all other require-
ments of this section. 
‘‘(4) RENEWALS.—The Secretary shall establish 
a process for the automatic renewal of a previously 
established Military Education Savings Account ex-
cept in cases in which— 
‘‘(A) the parents of the child on whose be-
half the account was established choose not to 
renew the account; or 
‘‘(B) the account was used to commit 
fraud or was otherwise not used in accordance 
with the requirements of this section. 
‘‘(c) PRIORITY
IN
THE EVENT
OF INSUFFICIENT 
FUNDS.— 
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‘‘(1) IN GENERAL.—If the funds appropriated 
to carry out this section are insufficient to enable 
the Secretary to establish and fully fund a Military 
Education Savings Account for each eligible child 
whose parent has an application approved under 
subsection (b) for a school year, the Secretary 
shall— 
‘‘(A) first renew and fully fund previously 
established Military Education Savings Ac-
counts; and 
‘‘(B) if funds remain available after renew-
ing all accounts under subparagraph (A), con-
duct the lottery described in paragraph (3) to 
select the children on whose behalf accounts will 
be established using the remaining funds. 
‘‘(2) TRANSFER AUTHORITY.—Notwithstanding 
any other provision of law, the Secretary may trans-
fer amounts from any account of the Department of 
Education to renew and fully fund previously estab-
lished Military Education Savings Accounts under 
paragraph 
(1)(A). 
The 
authority 
to 
transfer 
amounts under the preceding sentence shall not be 
subject to any transfer or reprogramming require-
ments under any other provision of law. 
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‘‘(3) LOTTERY.—The lottery described in this 
paragraph is a lottery in which— 
‘‘(A) siblings of children on whose behalf 
Military Education Savings Accounts have pre-
viously been established have the highest prob-
ability of selection; 
‘‘(B) children of enlisted members have the 
next-highest probability of selection after the 
children described in subparagraph (A); 
‘‘(C) children of warrant officers have the 
next-highest probability of selection after the 
children described in subparagraph (B); and 
‘‘(D) children of commissioned officers 
have the lowest probability of selection. 
‘‘(d) AMOUNT OF DEPOSITS.— 
‘‘(1) FIRST YEAR OF PROGRAM.—The amount 
of funds deposited into each Military Education Sav-
ings Account for the first school year for which such 
accounts are established under this section shall be 
$6,000 for each eligible military dependant child 
covered by the account. 
‘‘(2) SUBSEQUENT
YEARS.—The amount of 
funds deposited into each Military Education Sav-
ings Account for any school year after the year de-
scribed in paragraph (1), shall be the amount deter-
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mined under this subsection for the previous school 
year increased by a percentage equal to the percent-
age increase in the Chained Consumer Price Index 
for All Urban Consumers (as published by the Bu-
reau of Labor Statistics of the Department of 
Labor) over the period of such previous school year. 
‘‘(e) USE OF FUNDS.—Funds deposited into a Mili-
tary Education Savings Account for a school year may be 
used by the parent of an eligible military dependent child 
to make payments to a qualified educational service pro-
vider that is approved by the Secretary under subsection 
(f)(1) for— 
‘‘(1) costs of attendance at a private elementary 
school or secondary school recognized by the State, 
which may include a private school that has a reli-
gious mission; 
‘‘(2) private online learning programs; 
‘‘(3) private tutoring; 
‘‘(4) services provided by a public elementary 
school or secondary school attended by the child on 
a less than full-time basis, including individual class-
es and extracurricular activities and programs; 
‘‘(5) textbooks, curriculum programs, or other 
instructional materials, including any supplemental 
materials required by a curriculum program, private 
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school, private online learning program, or a public 
school, or any parent directed curriculum associated 
with K–12 education; 
‘‘(6) computer hardware or other technological 
devices that are used to help meet a student’s edu-
cational needs, except that such hardware or devices 
may not be purchased by a parent more than once 
in an 18-month period; 
‘‘(7) educational software and applications; 
‘‘(8) uniforms purchased from or through a pri-
vate school recognized by the State; 
‘‘(9) fees for nationally standardized assessment 
exams, advanced placement exams, any exams re-
lated to college or university admission, or tuition or 
fees for preparatory courses for such exams; 
‘‘(10) fees for summer education programs and 
specialized after-school education programs (but not 
including after-school childcare); 
‘‘(11) educational services and therapies, in-
cluding occupational, behavioral, physical, speech- 
language, and audiology therapies; 
‘‘(12) fees for transportation paid to a fee-for- 
service transportation provider for the student to 
travel to and from the facilities of a qualified edu-
cational service provider; 
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‘‘(13) costs of attendance at an institution of 
higher education; 
‘‘(14) costs associated with an apprenticeship or 
other vocational training program; 
‘‘(15) fees for state-recognized industry certifi-
cation exams, and tuition or fees for preparatory 
courses for such exams; 
‘‘(16) contributions to a college savings ac-
count, which may include contributions to a qualified 
tuition program (as defined in section 529(b)(1)(A) 
of the Internal Revenue Code of 1986) or other pre-
paid tuition plan offered by a State; or 
‘‘(17) any other educational expenses approved 
by the Secretary. 
‘‘(f) REQUIREMENTS FOR QUALIFIED EDUCATIONAL 
SERVICE PROVIDERS.— 
‘‘(1) REGISTRATION AND APPROVAL.—The Sec-
retary shall establish and maintain a registry of 
qualified educational service providers that are ap-
proved to receive payments from a Military Edu-
cation Savings Account. The Secretary shall approve 
a qualified educational service provider to receive 
such payments if the provider demonstrates to the 
Secretary that it is licensed in the State in which it 
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operates to provide one or more of the services for 
which funds may be expended under subsection (e). 
‘‘(2) PARTICIPATION
IN
ONLINE
MARKET-
PLACE.—As a condition of receiving funds from a 
Military Education Savings Account, a qualified edu-
cational service provider shall make its services 
available for purchase through the online market-
place described in subsection (g). 
‘‘(3) SURETY BOND.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
require each qualified educational service pro-
vider that receives $100,000 or more in funds 
from Military Education Savings Accounts in a 
school year to post a surety bond, in an amount 
determined by the Secretary, for such school 
year. 
‘‘(B) RETENTION.—The Secretary shall 
prescribe the circumstances under which a sur-
ety bond under subparagraph (A) may be re-
tained by the Secretary. 
‘‘(g) ONLINE MARKETPLACE.— 
‘‘(1) IN GENERAL.—The Secretary shall seek to 
enter into a contract with a private-sector entity 
under which the entity shall— 
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‘‘(A) establish and operate an online mar-
ketplace that enables the holder of a Military 
Education Savings Account to make direct pur-
chases from qualified educational service pro-
viders using funds from such account; 
‘‘(B) ensure that each qualified educational 
service provider on the registry maintained by 
the Secretary under subsection (f)(1) has made 
its services available for purchase through the 
online marketplace; 
‘‘(C) ensure that all purchases made 
through the online marketplace are for services 
that are allowable uses of funds under sub-
section (e); and 
‘‘(D) develop and make available a stand-
ardized expense report form, in electronic and 
hard copy formats, to be used by parents for re-
porting expenses in accordance with subsection 
(h)(3). 
‘‘(2) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to require the 
holder of a Military Education Savings Account to 
make purchases using the online marketplace de-
scribed in paragraph (1). 
‘‘(h) TRANSFER SCHEDULE.— 
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pense report form developed under subsection 
(g)(1)(D). 
‘‘(i) ROLLOVER.—Amounts remaining in the Military 
Education Savings Account of a student at the end of a 
school year shall remain available for use in accordance 
with subsection (e) until the date on which such account 
terminates under subsection (j). 
‘‘(j) TERMINATION AND RETURN OF FUNDS.— 
‘‘(1) TERMINATION.—The Military Education 
Savings Account of a student shall terminate on— 
‘‘(A) the date on which the student enrolls 
in a public elementary school or secondary 
school on a full-time basis; 
‘‘(B) in the case of a student who is pur-
suing postsecondary education, the earlier of— 
‘‘(i) the date on which the student 
completes postsecondary education; or 
‘‘(ii) the date on which the student at-
tains the age of 22 years; 
‘‘(C) in the case of a student who is an in-
dividual with a disability, the date on which the 
student attains the age of 26 years; or 
‘‘(D) in the case of an individual not de-
scribed in subparagraphs (B) or (C), the earlier 
of— 
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