to the Office of the State Superintendent of 
Education of the District of Columbia for any 
year for which the parent enters into an agree-
ment under section 4(a)(2)(B). 
(4) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘‘institution of higher education’’ has the 
meaning given the term in section 102 of the Higher 
Education Act of 1965 (20 U.S.C. 1002). 
(5) PARENT.—The term ‘‘parent’’ means the 
guardian, custodian, or other person with the au-
thority to act on behalf of a child. 
(6) 
PARTICIPATING
PROVIDER.—The 
term 
‘‘participating provider’’ means an entity that— 
(A) is— 
(i) a nonpublic school located in the 
District of Columbia that provides edu-
cation 
to 
prekindergarten, 
elementary 
school, or secondary school students; 
(ii) a public school, including a char-
ter school, located in the District of Co-
lumbia, except only with respect to pro-
viding individual courses or extracurricular 
activities described in section 4(c)(1)(E) or 
transportation 
described 
in 
section 
4(c)(1)(H) to such services; 
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(iii) a tutor or tutoring facility; 
(iv) a nonpublic provider of distance 
learning; 
(v) a therapy center or other provider 
of special education or disability services; 
(vi) an institution of higher education 
located in the District of Columbia; or 
(vii) an entity that provides edu-
cational services or products; 
(B) notifies the administering entity of the 
entity’s intent to become a participating pro-
vider; and 
(C) agrees, as a condition of receiving 
funds from an education savings account estab-
lished under section 4, to comply with the re-
quirements of this Act. 
SEC. 3. CONTRACT AUTHORIZED. 
(a) IN GENERAL.—Beginning with the 2017–2018 
school year, the Chief Financial Officer shall carry out this 
Act for each school year by awarding a contract to 1 entity 
described in subsection (b) to enable the administering en-
tity to carry out the program under section 4 for all eligi-
ble children in the District of Columbia. 
(b) ELIGIBILITY.—In order to be eligible for a con-
tract under this section, an entity shall be— 
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(1) exempt from Federal income tax pursuant 
to 501(c)(3) of the Internal Revenue Code of 1986; 
(2) based within the District of Columbia; and 
(3) able to demonstrate an ability to meet all 
requirements of this Act. 
(c) APPLICATION.—An eligible entity desiring a con-
tract under this section shall submit an application to the 
Chief Financial Officer at such time, in such manner, and 
containing such information as the Chief Financial Officer 
may require. 
(d) 
ADMINISTRATIVE
EXPENSES.—From 
the 
amounts made available under the contract described in 
subsection (a), the administering entity may reserve an 
amount that is not greater than the sum of 5 percent of 
the funds allocated under section 4(a)(4) for each eligible 
child with an education savings account, to be used by the 
administering entity for the administrative expenses asso-
ciated with the program under this Act. 
SEC. 4. UNIVERSAL EDUCATIONAL CHOICE FOR DISTRICT 
OF COLUMBIA STUDENTS. 
(a) BASIC ELEMENTS
OF PARENTAL CHOICE
IN 
EDUCATION.— 
(1) EDUCATIONAL
CHOICE.—Except as pro-
vided in paragraph (6), the parent of any eligible 
child may enter into an agreement under paragraph 
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(2)(B) with the administering entity for any year 
during which the eligible child will be in a grade for 
which the District of Columbia provides free public 
education. 
(2) PROVISION
OF
EDUCATION
SAVINGS
AC-
COUNTS.— 
(A) IN
GENERAL.—Beginning for the 
2017–2018 school year, the administering enti-
ty shall provide, to each eligible child whose 
parent enters into or renews an agreement de-
scribed in subparagraph (B) with the admin-
istering entity for the school year, an education 
savings account described in paragraph (3), 
into which scholarship amounts for the year 
shall be deposited in accordance with paragraph 
(4). 
(B) AGREEMENT.—The agreement re-
quired under this subparagraph shall be in a 
manner and on a form determined by the ad-
ministering entity and shall provide that— 
(i) the eligible child will receive an 
education savings account described in 
paragraph (3) and the administering entity 
will deposit a scholarship into the account 
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for each year that the agreement is in ef-
fect, in accordance with paragraph (4); 
(ii) the eligible child may be educated 
pursuant to any of the methods described 
in subparagraphs (A) through (G) of sub-
section (c)(1); 
(iii) the parent shall direct the use of 
the funds provided in the education savings 
account for educational expenses described 
in subsection (c), and the administering 
entity shall distribute such funds in ac-
cordance with paragraph (3)(B); and 
(iv) the parent agrees to the terms 
and conditions of the education savings ac-
count, including any participation nec-
essary for the accountability activities re-
quired under subsection (d)(3). 
(3) EDUCATION SAVINGS ACCOUNT.—An edu-
cation savings account described in this paragraph 
means a parent-controlled account, established exclu-
sively for the purpose of paying for the educational 
expenses described in subsection (c) for an eligible 
child who is the designated beneficiary of the ac-
count, that meets the following requirements: 
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(A) No funds shall be deposited into the 
account unless the funds are— 
(i) a disbursement of an annual schol-
arship from the administering entity as 
provided under paragraph (2)(A); or 
(ii) a deposit of opportunity scholar-
ship funds, in accordance with section 
3007(a)(2) of the Scholarships for Oppor-
tunity and Results Act (D.C. Code, sec. 
38–1853.07(a)(2)). 
(B) The funds in the account shall be dis-
tributed by the administering entity on behalf 
of the eligible child to 1 or more participating 
providers, upon direction by the parent, at the 
appropriate time. 
(C) Except as provided in subparagraph 
(D), any amount in the account that is attrib-
utable to a deposit provided under paragraph 
(2)(A) or a deposit of any opportunity scholar-
ship funds awarded under section 3007 of the 
Scholarships for Opportunity and Results Act 
(D.C. Code, sec. 38–1853.07) may be paid or 
distributed out of the account only for the pur-
pose of paying education expenses described in 
subsection (c) for the eligible child. 
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(D) Any balance remaining in the account 
shall be returned to the Chief Financial Officer 
on the last day of the period covered by an 
agreement described in paragraph (2)(B) if— 
(i) such agreement is broken or ended 
by the parent during the agreement period; 
(ii) the parent of the eligible child 
does not renew the agreement for the eligi-
ble child for the immediately succeeding 
academic year; 
(iii) during the most recent year of 
the agreement, the parents do not use any 
funds in the account for eligible expenses 
described in subsection (c); or 
(iv) the child no longer qualifies as an 
eligible child. 
(4) AMOUNT OF SCHOLARSHIP AND TRANSFER 
OF FUNDS.— 
(A) TRANSFER OF FUNDS.—By not later 
than August 1 of each school year— 
(i) the administering entity shall no-
tify the Chief Financial Officer of the total 
amount calculated under subparagraph (B) 
to be provided under this Act for scholar-
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ships to eligible children for such school 
year; and 
(ii) the Chief Financial Officer shall 
transfer such amount, from any funds or 
revenues available to the District of Co-
lumbia, to the administering entity to en-
able the administering entity to pay for the 
scholarships and the administration ex-
penses for the full fiscal year, in accord-
ance with subparagraphs (B) and (D) and 
section 3(d). 
(B) AMOUNT.—The total amount provided 
under this section for a full-year scholarship on 
behalf of an eligible child shall equal— 
(i) in the case of an eligible child from 
a family with an income of not more than 
185 percent of the poverty level described 
in subparagraph (C) or an eligible child 
who is a child with a disability, as defined 
in section 602 of the Individuals with Dis-
abilities Education Act (20 U.S.C. 1401), 
90 percent of the funds that would other-
wise be allocated by the District of Colum-
bia Public Schools for such child, as deter-
mined by the uniform per student funding 
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formula defined in the District of Colum-
bia School Reform Act of 1995 (D.C. 
Code, sec. 38–804.01); 
(ii) in the case of an eligible child 
from a family with an income of more than 
185 percent, and not more than 300 per-
cent, of such poverty level, 85 percent of 
the funds that would otherwise be allocated 
by the District of Columbia Public Schools 
for such child as determined by such uni-
form per student funding formula; and 
(iii) in the case of an eligible child 
from a family with an income that equals 
or exceeds 300 percent of such poverty 
level, 80 percent of the funds that would 
otherwise be allocated by the District of 
Columbia Public Schools for such child as 
determined by such uniform per student 
funding formula. 
(C) CALCULATION OF POVERTY LEVEL.— 
In determining the poverty level for purposes of 
this paragraph, the administering entity shall 
use the criteria of poverty used by the Bureau 
of the Census in compiling the most recent de-
cennial census, as the criteria have been up-
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dated by increases in the Consumer Price Index 
for All Urban Consumers, published by the Bu-
reau of Labor Statistics. 
(D) 
QUARTERLY
DISBURSEMENT.—The 
administering entity shall distribute the amount 
of a scholarship provided under this section to 
an eligible child whose parent has entered into 
an agreement under paragraph (2)(B) into the 
eligible 
child’s 
education 
savings 
account 
through 4 equal quarterly deposits. 
(5) OWNERSHIP OF THE EDUCATION SAVINGS 
ACCOUNT.—An education savings account estab-
lished for an eligible child under this Act, and any 
funds deposited within the education savings ac-
count, shall belong to the eligible child. Funds avail-
able in the education savings account shall be used 
as directed by a parent of the eligible child, on be-
half of the child, for education expenses described in 
subsection (c). 
(6) INTERACTION WITH OPPORTUNITY SCHOL-
ARSHIPS.—Notwithstanding paragraph (2)(A) or 
any other provision of this Act, a child who receives 
an opportunity scholarship under section 3007 of the 
Scholarships for Opportunity and Results Act (D.C. 
Code, sec. 38–1853.07) for a school year shall not 
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be eligible for a scholarship under this Act for the 
same school year. Upon the request of any parent of 
an eligible child who receives an opportunity scholar-
ship and the completion of an agreement described 
in paragraph (2)(B), the Secretary shall establish an 
education savings account described in paragraph 
(3) for the child, in order for the parent to deposit 
any amount of an opportunity scholarship under sec-
tion 3007 of the Scholarships for Opportunity and 
Results Act (D.C. Code, sec. 38–1853.07) into the 
education savings account. 
(b) CONTINUED AVAILABILITY OF FUNDS.—Any bal-
ance in an educational savings account established for an 
eligible child under this section that is not used during 
an academic year shall remain available in the education 
savings account of the eligible child for future education 
expenses described in subsection (c), as long as an agree-
ment described in subsection (a)(2)(B) remains in effect 
for the eligible child. 
(c) ELIGIBLE EDUCATION EXPENSES.— 
(1) IN GENERAL.—Funds available in an edu-
cation savings account established under this section 
for an eligible child shall only be used on behalf of 
such child for 1 or more of the following educational 
purposes: 
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(A) The costs of tuition and fees at a non-
public school, or distance education, provided 
through a participating provider. 
(B) Tutoring services offered by a partici-
pating provider. 
(C) The costs of curricula or online 
courses, including any supplemental materials, 
textbooks, or supplies necessary to administer 
the curriculum or to complete the course, of-
fered by a participating provider or purchased 
for self-study. 
(D) Fees for any special education or re-
lated services provided through a participating 
provider. 
(E) The costs of tuition and fees required 
to 
complete 
individual 
courses 
or 
extra-
curricular activities at a public school, including 
a charter school, within the District of Colum-
bia. 
(F) The costs of tuition and fees required 
to complete any dual credit courses, which are 
courses that qualify for both secondary and 
postsecondary education credit, from a partici-
pating provider in the District of Columbia. 
(G) Fees for any— 
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