(v) a nonprofit organization; 
(vi) an entity with demonstrated expe-
rience in educational savings or in assist-
ing low-income students to prepare for, 
and attend, an institution of higher edu-
cation; or 
(vii) a consortium of 2 or more of the 
entities described in clauses (i) through 
(vi). 
(F) 
ESEA 
DEFINITIONS.—The 
terms 
‘‘local educational agency’’, ‘‘parent’’, and 
‘‘State educational agency’’ have the meanings 
given the terms in section 9101 of the Elemen-
tary and Secondary Education Act of 1965 (20 
U.S.C. 7801) and the term ‘‘charter school’’ 
has the meaning given the term in section 5210 
of such Act. 
(G) 
INSTITUTION
OF
HIGHER
EDU-
CATION.—The term ‘‘institution of higher edu-
cation’’ has the meaning given the term in sec-
tion 101(a) of the Higher Education Act of 
1965 (20 U.S.C. 1001(a)). 
(H) LOW-INCOME
STUDENT.—The term 
‘‘low-income student’’ means a student who is 
eligible to receive a free or reduced price lunch 
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under the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1751 et seq.). 
(2) GRANT PROGRAM.— 
(A) PROGRAM
AUTHORIZED.—The Sec-
retary of Education is authorized to award 
grants, on a competitive basis, to eligible enti-
ties to enable such eligible entities to establish 
and administer American Dream Accounts for a 
group of low-income students. 
(B) RESERVATION.—From the amount 
made available each fiscal year to carry out this 
section under section 286(w)(6) of the Immi-
gration and Nationality Act, as added by sub-
section (c), the Secretary of Education shall re-
serve not more than 5 percent of such amount 
to carry out the evaluation activities described 
in paragraph (5)(A). 
(C) DURATION.—A grant awarded under 
this subsection shall be for a period of not more 
than 3 years. The Secretary of Education may 
extend such grant for an additional 2-year pe-
riod if the Secretary of Education determines 
that the eligible entity has demonstrated signifi-
cant progress, based on the factors described in 
paragraph (3)(B)(xi). 
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(3) APPLICATIONS; PRIORITY.— 
(A) IN GENERAL.—Each eligible entity de-
siring a grant under this subsection shall sub-
mit an application to the Secretary of Edu-
cation at such time, in such manner, and con-
taining such information as the Secretary of 
Education may require. 
(B) 
CONTENTS.—The 
application 
de-
scribed in subparagraph (A) shall include— 
(i) a description of the characteristics 
of a group of not less than 30 low-income 
public school students who— 
(I) are, at the time of the appli-
cation, attending a grade not higher 
than grade 9; and 
(II) will, under the grant, receive 
an American Dream Account; 
(ii) a description of how the eligible 
entity will engage, and provide support 
(such as tutoring and mentoring for stu-
dents, and training for teachers and other 
stakeholders) either online or in person, 
to— 
(I) the students in the group de-
scribed in clause (I); 
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(II) the family members and 
teachers of such students; and 
(III) other stakeholders such as 
school 
administrators 
and 
school 
counselors; 
(iii) an identification of partners who 
will assist the eligible entity in establishing 
and sustaining American Dream Accounts; 
(iv) a description of what experience 
the eligible entity or the eligible entity’s 
partners have in managing college savings 
accounts, preparing low-income students 
for postsecondary education, managing on-
line systems, and teaching financial lit-
eracy; 
(v) a description of how the eligible 
entity will help increase the value of the 
college savings account portion of each 
American Dream Account, such as by pro-
viding matching funds or incentives for 
academic achievement; 
(vi) a description of how the eligible 
entity will notify each participating student 
in the group described in subparagraph 
(A), on a semiannual basis, of the current 
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balance and status of the student’s college 
savings account portion of the student’s 
American Dream Account; 
(vii) a plan that describes how the eli-
gible entity will monitor participating stu-
dents in the group described in clause (i) 
to ensure that each student’s American 
Dream Account will be maintained if a stu-
dent in such group changes schools before 
graduating from secondary school; 
(viii) a plan that describes how the 
American Dream Accounts will be man-
aged for not less than 1 year after a ma-
jority of the students in the group de-
scribed in clause (i) graduate from sec-
ondary school; 
(ix) a description of how the eligible 
entity will encourage students in the group 
described in clause (i) who fail to graduate 
from secondary school to continue their 
education; 
(x) a description of how the eligible 
entity will evaluate the grant program, in-
cluding by collecting, as applicable, data 
about the students in the group described 
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in clause (i) during the grant period, and, 
if sufficient grant funds are available, after 
the grant period, including— 
(I) attendance rates; 
(II) progress reports; 
(III) grades and course selec-
tions; 
(IV) the student graduation rate 
(as 
defined 
in 
section 
1111 
(b)(2)(C)(vi) of the Elementary and 
Secondary Education Act of 1965 (20 
U.S.C. 6311(b)(2)(C)(vi))); 
(V) rates of student completion 
of the Free Application for Federal 
Student Aid described in section 483 
of the Higher Education Act of 1965 
(20 U.S.C. 1090); 
(VI) rates of enrollment in an in-
stitution of higher education; and 
(VII) rates of completion at an 
institution of higher education; 
(xi) a description of what will happen 
to the funds in the college savings account 
portion of the American Dream Accounts 
that are dedicated to participating stu-
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