genuine independent choice as to the 
appropriate school for their child, ex-
cept that in no case shall the amount 
of Federal funds provided under this 
subclause to a parent of a child with 
a disability for a year exceed the total 
amount of tuition, fees, and transpor-
tation costs for the child for the year; 
‘‘(II) the authorization of a par-
ent to exercise this option fulfills the 
State’s obligation under paragraph (1) 
with respect to the child during the 
period in which the child is enrolled in 
the selected school; and 
‘‘(III) a selected school accepting 
such funds shall not be required to 
carry out any of the requirements of 
this title with respect to such child.’’. 
(b) RESEARCH AND INNOVATION TO IMPROVE SERV-
ICES
AND RESULTS
FOR CHILDREN WITH DISABIL-
ITIES.—Section 663(c) of the Individuals with Disabilities 
Education Act (20 U.S.C. 1463(c)) is amended— 
(1) in paragraph (9), by striking ‘‘and’’ after 
the semicolon; 
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(2) in paragraph (10), by striking the period 
and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(11) supporting the post-award planning and 
design, and the initial implementation (which may 
include costs for informing the community, acquiring 
necessary equipment and supplies, and other initial 
operational costs), during a period of not more than 
3 years, of State programs that allow the parent of 
a child with a disability to make a genuine inde-
pendent choice of the appropriate public or private 
school for their child, if the program— 
‘‘(A) requires that the child be a child who 
has received an initial evaluation described in 
section 614(a) and has been identified as a 
child with a disability, in accordance with part 
B; 
‘‘(B)(i) permits the parent to receive from 
the State funds to be used to pay some or all 
of the costs of attendance at the selected school 
(which may include tuition, fees, and transpor-
tation costs); or 
‘‘(ii) permits persons to receive a State tax 
credit for donations to an entity that provides 
funds to parents of eligible students described 
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in subparagraph (A), to be used by the parents 
to pay some or all of the costs of attendance at 
the selected school (which may include tuition, 
fees, and transportation costs); 
‘‘(C) prohibits any school that agrees to 
participate in the program from discriminating 
against eligible students on the basis of race, 
color, national origin, or sex, except that— 
‘‘(i) the prohibition of sex discrimina-
tion shall not apply to a participating 
school that is operated by, supervised by, 
controlled by, or connected to a religious 
organization to the extent that the applica-
tion of such prohibition is inconsistent with 
the religious tenets or beliefs of the school; 
and 
‘‘(ii) notwithstanding this subpara-
graph or any other provision of law, a par-
ent may choose, and a school may offer, a 
single-sex school, class, or activity; 
‘‘(D) notwithstanding any other provision 
of law, allows any school participating in the 
program that is operated by, supervised by, 
controlled by, or connected to, a religious orga-
nization to exercise its right in matters of em-
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ployment consistent with title VII of the Civil 
Rights Act of 1964 (42 U.S.C. 2000e et seq.), 
including the exemptions in that title; 
‘‘(E) allows a school to participate in the 
program without, consistent with the First 
Amendment of the Constitution of the United 
States— 
‘‘(i) necessitating any change in the 
participating school’s teaching mission; 
‘‘(ii) requiring any private partici-
pating school to remove religious art, 
icons, scriptures, or other symbols; or 
‘‘(iii) precluding any private partici-
pating school from retaining religious 
terms in its name, selecting its board 
members on a religious basis, or including 
religious references in its mission state-
ments and other chartering or governing 
documents; and 
‘‘(F) requires a participating school se-
lected for a child with a disability to be aca-
demically accountable to the parent for meeting 
the educational needs of the student.’’. 
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TITLE III—MILITARY 
SCHOLARSHIPS 
SEC. 301. PURPOSE. 
The purpose of this title is to ensure high-quality 
education for children of military personnel who live on 
military installations and thus have less freedom to exer-
cise school choice for their children, in order to improve 
the ability of the Armed Forces to retain such military 
personnel. 
SEC. 302. MILITARY SCHOLARSHIP PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) ESEA DEFINITIONS.—The terms ‘‘child’’, 
‘‘elementary school’’, ‘‘secondary school’’, and ‘‘local 
educational agency’’ have the meanings given the 
terms in section 9101 of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 7801). 
(2) ELIGIBLE MILITARY STUDENT.—The term 
‘‘eligible military student’’ means a child who— 
(A) is a military dependent student; 
(B) lives on a military installation selected 
to participate in the program under subsection 
(b)(2); and 
(C) chooses to attend a participating 
school, rather than a school otherwise assigned 
to the child. 
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(3) MILITARY
DEPENDENT
STUDENT.—The 
term ‘‘military dependent student’’ has the meaning 
given the term in section 572(e) of the National De-
fense Authorization Act for Fiscal Year 2006 (20 
U.S.C. 7703b(e)). 
(4) PARTICIPATING SCHOOL.—The term ‘‘par-
ticipating school’’ means a public or private elemen-
tary school or secondary school that— 
(A) accepts scholarship funds provided 
under this section on behalf of an eligible mili-
tary student for the costs of tuition, fees, or 
transportation of the eligible military student; 
and 
(B) is accredited, licensed, or otherwise op-
erating in accordance with State law. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Defense. 
(b) PROGRAM AUTHORIZED.— 
(1) IN GENERAL.—From amounts made avail-
able under subsection (g) and beginning for the first 
full school year following the date of enactment of 
this Act, the Secretary shall carry out a 5-year pilot 
program to award scholarships to enable eligible 
military students to attend the public or private ele-
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mentary schools or secondary schools selected by the 
eligible military students’ parents. 
(2) SCOPE OF PROGRAM.— 
(A) IN GENERAL.—The Secretary shall se-
lect not less than 5 military installations to par-
ticipate in the pilot program described in para-
graph (1). In making such selection, the Sec-
retary shall choose military installations where 
eligible military students would most benefit 
from expanded educational options. 
(B) INELIGIBILITY.—A military installa-
tion that provides, on its premises, education 
for all elementary school and secondary school 
grade levels through one or more Department 
of Defense dependents’ schools shall not be eli-
gible for participation in the program. 
(3) AMOUNT OF SCHOLARSHIPS.— 
(A) IN GENERAL.—The annual amount of 
each scholarship awarded to an eligible military 
student under this section shall not exceed the 
lesser of— 
(i) the cost of tuition, fees, and trans-
portation associated with attending the 
participating school selected by the parents 
of the student; or 
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(ii)(I) in the case of an eligible mili-
tary student attending elementary school— 
(aa) $8,000 for the first full 
school year following the date of en-
actment of this Act; or 
(bb) 
the 
amount 
determined 
under subparagraph (B) for each 
school year following such first full 
school year; or 
(II) in the case of an eligible military 
student attending secondary school— 
(aa) $12,000 for the first full 
school year following the date of en-
actment of this Act; or 
(bb) 
the 
amount 
determined 
under subparagraph (B) for each 
school year following such first full 
school year. 
(B) ADJUSTMENT
FOR
INFLATION.—For 
each school year after the first full school year 
following the date of enactment of this Act, the 
amounts specified in subclauses (I) and (II) of 
subparagraph (A)(ii) shall be adjusted to reflect 
changes for the 12-month period ending the 
preceding June in the Consumer Price Index 
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for All Urban Consumers published by the Bu-
reau of Labor Statistics of the Department of 
Labor. 
(4) PAYMENTS
TO
PARENTS.—The Secretary 
shall make scholarship payments under this section 
to the parent of the eligible military student in a 
manner that ensures such payments will be used for 
the payment of tuition, fees, and transportation ex-
penses (if any) in accordance with this section. 
(c) SELECTION OF SCHOLARSHIPS RECIPIENTS.— 
(1) RANDOM SELECTION.—If more eligible mili-
tary students apply for scholarships under the pro-
gram under this section than the Secretary can ac-
commodate, the Secretary shall select the scholar-
ship recipients through a random selection process 
from students who submitted applications by the ap-
plication deadline specified by the Secretary. 
(2) CONTINUED ELIGIBILITY.— 
(A) IN GENERAL.—An individual who is 
selected to receive a scholarship under the pro-
gram under this section shall continue to re-
ceive a scholarship for each year of the program 
until the individual— 
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(i) graduates from secondary school or 
elects to no longer participate in the pro-
gram; 
(ii) exceeds the maximum age for 
which the State in which the student lives 
provides a free public education; or 
(iii) is no longer an eligible military 
student. 
(B) CONTINUED PARTICIPATION FOR MILI-
TARY TRANSFERS.— 
(i) TRANSFER TO PRIVATE NON-MILI-
TARY
HOUSING.—Notwithstanding 
sub-
paragraph (A)(iii), an individual receiving 
a scholarship under this section for a 
school year who meets the requirements of 
subparagraphs (A) and (C) of subsection 
(a)(2) and whose family, during such 
school year, moves into private non-mili-
tary housing that is not considered to be 
part of the military installation, shall con-
tinue to receive the scholarship for use at 
the participating school for the remaining 
portion of the school year. 
(ii) TRANSFER TO A DIFFERENT MILI-
TARY
INSTALLATION.—Notwithstanding 
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subparagraph (A)(iii), an individual receiv-
ing a scholarship under this section for a 
school year whose family is transferred to 
a different military installation shall no 
longer be eligible to receive such scholar-
ship beginning on the date of the transfer. 
Such individual may apply to participate in 
any program offered under this section for 
the new military installation for a subse-
quent school year, if such individual quali-
fies as an eligible military student for such 
school year. 
(d) NONDISCRIMINATION AND OTHER PROVISIONS.— 
(1) 
NON-DISCRIMINATION.—A 
participating 
school shall not discriminate against program par-
ticipants or applicants on the basis of race, color, 
national origin, or sex. 
(2) APPLICABILITY AND SINGLE-SEX SCHOOLS, 
CLASSES, OR ACTIVITIES.— 
(A) IN
GENERAL.—Notwithstanding any 
other provision of law, the prohibition of sex 
discrimination in paragraph (1) shall not apply 
to a participating school that is operated by, su-
pervised by, controlled by, or connected to a re-
ligious organization to the extent that the appli-
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cation of paragraph (1) is inconsistent with the 
religious tenets or beliefs of the school. 
(B) SINGLE-SEX
SCHOOLS, CLASSES, OR 
ACTIVITIES.—Notwithstanding paragraph (1) or 
any other provision of law, a parent may 
choose, and a participating school may offer, a 
single-sex school, class, or activity. 
(3) CHILDREN
WITH
DISABILITIES.—Nothing 
in this section may be construed to alter or modify 
the Individuals with Disabilities Education Act (20 
U.S.C. 1400 et seq.). 
(4) RULES OF CONDUCT AND OTHER SCHOOL 
POLICIES.—A participating school, including the 
schools described in subsection (e), may require eli-
gible students to abide by any rules of conduct and 
other requirements applicable to all other students 
at the school. 
(e) RELIGIOUSLY AFFILIATED SCHOOLS.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of law, a participating school that is oper-
ated by, supervised by, controlled by, or connected 
to, a religious organization may exercise its right in 
matters of employment consistent with title VII of 
the Civil Rights Act of 1964 (42 U.S.C. 2000e et 
seq.), including the exemptions in that title. 
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(2) MAINTENANCE
OF
PURPOSE.—Notwith-
standing any other provision of law, funds made 
available under this title to eligible military students 
that are received by a participating school, as a re-
sult of their parents’ choice, shall not, consistent 
with the first amendment of the United States Con-
stitution— 
(A) necessitate any change in the partici-
pating school’s teaching mission; 
(B) require any private participating 
school to remove religious art, icons, scriptures, 
or other symbols; or 
(C) preclude any private participating 
school from retaining religious terms in its 
name, selecting its board members on a reli-
gious basis, or including religious references in 
its mission statements and other chartering or 
governing documents. 
(f) REPORTS.— 
(1) ANNUAL REPORTS.—Not later than July 30 
of the year following the year of the date of enact-
ment of this Act, and each subsequent year through 
the year in which the final report is submitted under 
paragraph (2), the Secretary shall prepare and sub-
mit to Congress an interim report on the scholar-
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ships awarded under the pilot program under this 
section that includes the content described in para-
graph (3) for the applicable school year of the re-
port. 
(2) FINAL REPORT.—Not later than 90 days 
after the end of the pilot program under this section, 
the Secretary shall prepare and submit to Congress 
a report on the scholarships awarded under the pro-
gram that includes the content described in para-
graph (3) for each school year of the program. 
(3) CONTENT.—Each annual report under 
paragraph (1) and the final report under paragraph 
(2) shall contain— 
(A) the number of applicants for scholar-
ships under this section; 
(B) the number, and the average dollar 
amount, of scholarships awarded; 
(C) the number of participating schools; 
(D) the number of elementary school stu-
dents receiving scholarships under this section 
and the number of secondary school students 
receiving such scholarships; and 
(E) the results of a survey, conducted by 
the Secretary, regarding parental satisfaction 
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with the scholarship program under this sec-
tion. 
(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$10,000,000 for each of fiscal years 2014 through 2018. 
(h) OFFSET IN DEPARTMENT OF EDUCATION SALA-
RIES.—Notwithstanding any other provision of law, for 
fiscal year 2014 and each of the 4 succeeding fiscal years, 
the Secretary of Education shall return to the Treasury 
$10,000,000 of the amounts made available to the Sec-
retary for salaries and expenses of the Department of 
Education for such year. 
Æ 
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