sure that parents can afford the cost (including tui-
tion, fees, and necessary transportation expenses) of 
the schools the parents choose to have their children 
attend under this Act. 
(d) APPLICATION REQUIREMENTS.— 
(1) IN GENERAL.—To be considered for a grant 
under this Act, an eligible entity shall submit an ap-
plication to the Secretary at such time, in such man-
ner, and containing such information as the Sec-
retary may reasonably require. 
(2) CONTENTS.—The application shall, at a 
minimum, include a description of— 
(A) the eligible entity’s plan for— 
(i) recruiting private schools, local 
educational agencies, charter schools, and 
private providers, to participate in the 
project in order to meet eligible student de-
mand for private and public school admis-
sion and supplemental educational services; 
and 
(ii) ensuring that participating schools 
that enroll eligible students receiving schol-
arships under this Act, and private pro-
viders participating in the project, will 
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meet the applicable requirements of the 
project; 
(B) each school identified for restructuring 
that will be served under the project, includ-
ing— 
(i) the name of each such school; and 
(ii) such demographic and socio-
economic information as the Secretary may 
require; 
(C) how the eligible entity will work with 
the identified schools and the local educational 
agency to identify the parents of eligible stu-
dents (including through contracts or coopera-
tive agreements with the public school or local 
educational agency) consistent with the require-
ments of the Family Educational Rights and 
Privacy Act of 1974 (20 U.S.C. 1232g); 
(D) how the eligible entity will structure 
the project in a manner that permits eligible 
students to participate in the second and suc-
ceeding school years of the project if the schools 
the eligible students attend with scholarship as-
sistance under this Act are subsequently identi-
fied for restructuring under section 1116(b)(8) 
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of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6316(b)(8)); 
(E) how the eligible entity will use funds 
received under this Act; 
(F) how the eligible entity will ensure that 
if more eligible students seek admission to the 
project than the project can accommodate, the 
eligible students will be selected through a ran-
dom selection process; 
(G) how the eligible entity will notify par-
ents of eligible students of the expanded choice 
opportunities provided under the project and 
how the eligible entity will provide parents with 
sufficient information to enable the parents to 
make an informed decision; 
(H) how the eligible entity will ensure that 
the schools receiving eligible students under the 
grant are financially responsible and will use 
the grant funds received under this Act effec-
tively; 
(I) how the eligible entity will prioritize be-
tween providing scholarships and providing sus-
tained, intensive supplemental educational serv-
ices, including the timing and duration of offer-
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ing the opportunity for parents to determine 
which provision the parents prefer; and 
(J) how the eligible entity will address the 
renewal of support for participating eligible stu-
dents, including continued eligibility. 
(e) USES OF FUNDS.— 
(1) IN GENERAL.—Each eligible entity that re-
ceives a grant under this Act may— 
(A) reserve not more than 5 percent of the 
grant funds for administrative expenses, includ-
ing costs associated with recruiting and select-
ing eligible students, private schools, and pri-
vate providers, to participate in the project; 
(B) only for the first year for which grant 
funds are received under this Act, reserve not 
more than 5 percent of the grant funds (in ad-
dition to the funds reserved under subpara-
graph (A)), for initial implementation expenses, 
including costs associated with outreach, pro-
viding information to parents and school offi-
cials, and other administrative expenses; 
(C) use the grant funds to provide scholar-
ships to eligible students to pay for the cost, in-
cluding tuition, fees, and necessary transpor-
tation expenses, to attend the private school of 
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their parents’ choice or a public elementary 
school or secondary school of their parents’ 
choice outside of the eligible students’ home 
school district (consistent with State law), ex-
cept that the scholarship shall not exceed 
$4,000 per student per school year; and 
(D) use the grant funds to pay the costs, 
including reasonable transportation costs, of 
supplemental educational services (including 
summer school or after-school programs) pro-
vided by a private provider to eligible students, 
except that the costs shall not exceed $3,000 
per student, per school year. 
(2) FUNDING ORDER.—Each eligible entity that 
receives a grant under this Act shall— 
(A) first fund scholarships for eligible stu-
dents to attend the private school of their par-
ents’ choice or a public elementary school or 
secondary school of their parents’ choice outside 
of the eligible students’ home school district 
(consistent with State law); and 
(B) use any remaining grant funds to pro-
vide eligible students with access to supple-
mental educational services. 
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(3) PAYMENT.—Each eligible entity that re-
ceives a grant under this Act shall make scholarship 
payments under this Act to the parent of the eligible 
student participating in the project, in a manner 
that ensures that the payments will be used only for 
the payment of tuition, fees, and necessary transpor-
tation expenses, in accordance with this Act. 
(f) PROHIBITION.—A student who receives supple-
mental educational services under this Act shall not be eli-
gible to receive other such services under section 1116(e) 
of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6316(e)). 
(g) PROJECT PERFORMANCE.—Each eligible entity 
receiving a grant under this Act shall prepare and submit 
to the Secretary a final report on the results of the project 
assisted under this Act that contains such information as 
the Secretary may require. At a minimum, the report shall 
include information on the academic achievement of stu-
dents receiving scholarships and supplemental educational 
services under the project. 
(h) PERFORMANCE INFORMATION.—Each eligible en-
tity that receives a grant under this Act shall collect and 
report such performance information as the Secretary may 
require for the national evaluation conducted under sub-
section (i). 
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