I 
114TH CONGRESS 
2D SESSION 
H. R. 5517 
To require States to distribute funds for elementary and secondary education 
in the form of vouchers for eligible students, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 16, 2016 
Mrs. LUMMIS (for herself, Mr. MULVANEY, and Mr. SALMON) introduced the 
following bill; which was referred to the Committee on Education and the 
Workforce 
A BILL 
To require States to distribute funds for elementary and 
secondary education in the form of vouchers for eligible 
students, 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 ‘‘Local Education Free-
dom Act of 2016’’. 
SEC. 2. EDUCATION VOUCHER PROGRAM. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, as a condition of receiving Federal funds for 
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elementary and secondary education, each State shall 
carry out the program described under this Act. 
(b) BASIC ELEMENTS.— 
(1) PARENTAL CHOICE IN EDUCATION.— 
(A) IN
GENERAL.—Beginning with the 
2017–2018 academic year, a parent of an eligi-
ble child may— 
(i) enter into an agreement with a 
State educational agency for any academic 
year during which the eligible child will be 
in a grade for which the State provides 
free public education if— 
(I) the public school in which the 
eligible child is enrolled, or will be en-
rolled, receives Federal funds on the 
condition of implementing a Federal 
mandate; and 
(II) the parent disagrees with 
such mandate; and 
(ii) renew such agreement for each 
succeeding academic year during which the 
eligible child will be in a grade for which 
the State provides free public education. 
(B) AGREEMENT.—An agreement under 
this paragraph shall be entered into, or re-
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newed, in a manner and on a form determined 
by each State educational agency. 
(2) EDUCATION SAVINGS ACCOUNTS.— 
(A) IN GENERAL.—Each State educational 
agency shall— 
(i) provide an education savings ac-
count to each eligible child whose parent 
enters into an agreement under paragraph 
(1)(A)(i) with the State educational agency 
for an academic year; and 
(ii) maintain such account for each 
succeeding academic year for which the 
parent renews the agreement under para-
graph (1)(A)(ii). 
(B) REQUIREMENTS.—An education sav-
ings account provided under this paragraph 
shall meet the following requirements: 
(i) The education savings account, 
and any funds deposited into such account, 
shall belong to the eligible child for whom 
the account was provided, and such child 
shall be the designated beneficiary of the 
account. 
(ii) The only funds that may be de-
posited into the education savings account 
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are the funds that a State educational 
agency disburses in accordance with sub-
paragraph (C). 
(iii) The funds in the education sav-
ings account may be used only for the pur-
pose of paying for the education expenses 
described in subsection (c) of the eligible 
child. 
(iv) The parent of the eligible child 
shall have the authority to direct the use 
of the funds in the education savings ac-
count to one or more qualifying providers 
that do not implement the Federal man-
date with which the parent disagrees. 
(v) Upon direction by the parent of 
the eligible child, a State educational agen-
cy shall distribute the funds in the edu-
cation savings account to the designated 
qualifying providers. 
(C) AMOUNT OF FUNDS.— 
(i) IN
GENERAL.—Subject to clause 
(ii), beginning on August 1 of each aca-
demic year, each State educational agency 
shall disburse an amount equal to the aver-
age per-pupil expenditure of the State to 
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each education savings account provided 
under this paragraph. 
(ii) QUARTERLY
DISBURSEMENT.— 
Each State educational agency shall dis-
burse the amount of funds provided under 
this subparagraph in 4 equal quarterly de-
posits. 
(iii) CONTINUED
AVAILABILITY
OF 
FUNDS.—Except as provided in clause (iv), 
any amounts remaining in an education 
savings account on the last day of the pe-
riod covered by an agreement under para-
graph (1)(A) shall remain available for use 
during a succeeding academic year. 
(iv) RECAPTURE
OF
FUNDS.—Each 
State educational agency shall recapture 
any amounts remaining in an education 
savings account on the last day of the pe-
riod covered by an agreement under para-
graph (1)(A) if— 
(I) the parent of the eligible child 
ends or violates the terms of the 
agreement during the covered period; 
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(II) the parent does not renew 
the agreement for the immediately 
succeeding academic year; or 
(III) the child for whom the edu-
cation savings account was provided 
no longer qualifies as an eligible child. 
(c) ELIGIBLE EDUCATION EXPENSES.—The funds in 
an education savings account provided under subsection 
(b)(2) may be used only for the following education ex-
penses: 
(1) Tuition and fees for a qualifying provider, 
including any costs and fees for tutoring services, 
specialized instructional support services, extra-
curricular activities, dual credit courses, and indi-
vidual courses. 
(2) Required textbooks, supplemental materials, 
and supplies. 
(3) Textbooks, supplemental materials, and 
supplies for self-study. 
(4) Fees for any— 
(A) national norm-referenced achievement 
examination; 
(B) advanced placement or similar exam-
ination; or 
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(C) standardized examination required for 
admission to an institution of higher education. 
(5) Transportation for travel to and from a 
qualifying provider, except that not more than 
$2,000 from the education savings account may be 
used for this purpose each academic year. 
(6) A contribution to a qualified tuition pro-
gram (as defined in section 529(b) of the Internal 
Revenue Code of 1986) with respect to which the eli-
gible child is a designated beneficiary. 
(7) A contribution to a Coverdell education sav-
ings account (as defined in section 530(b) of the In-
ternal Revenue Code of 1986) with respect to which 
the eligible child is a designated beneficiary, except 
that not more than $2,000 from the education sav-
ings account may be used for this purpose each aca-
demic year. 
(8) Any other education expense approved by 
the State educational agency. 
(d) RESPONSIBILITIES
OF
STATE
EDUCATIONAL 
AGENCY.— 
(1) 
ANNUAL
LIST
OF
QUALIFYING
PRO-
VIDERS.— 
(A) CREATION.—Beginning on September 
1, 2016, each State educational agency shall— 
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(i) approve entities as qualifying pro-
viders for the 2017–2018 academic year; 
and 
(ii) prepare a list of such qualifying 
providers. 
(B) MAINTENANCE.—For each academic 
year succeeding the 2017–2018 academic year, 
each State educational agency shall renew the 
list of qualifying providers. 
(C) AVAILABILITY ON WEBSITE OF STATE 
EDUCATIONAL
AGENCY.—Each 
State 
edu-
cational agency shall make the annual list of 
qualifying providers publicly available on the 
website of the State educational agency. 
(2) ACCOUNTABILITY.—Each State educational 
agency shall take such steps as are necessary to en-
sure the proper implementation of this Act, includ-
ing— 
(A) conducting periodic audits of education 
savings accounts provided under subsection 
(b)(2); 
(B) ensuring that the funds in such ac-
counts are used in accordance with this Act; 
(C) freezing or revoking an education sav-
ings account if fraud is detected; and 
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(D) if appropriate, referring any parent or 
qualifying provider found to be using an edu-
cation savings account for unlawful purposes 
for criminal prosecution. 
(3) TRANSFER OF ACADEMIC RECORDS.—Upon 
request by a State educational agency, and if appli-
cable, the public school in which an eligible child was 
enrolled during the previous academic year shall pro-
vide the complete academic records of such child to 
any qualifying provider that is a school and that has 
admitted the child. 
(e) REQUIREMENTS AND RIGHTS OF QUALIFYING 
PROVIDERS.— 
(1) ADMISSIONS.—A qualifying provider may— 
(A) enforce the admissions requirements of 
any school or program offered by the qualifying 
provider; and 
(B) subject to paragraph (4), accept the el-
igible children who are best qualified to attend 
such school or program. 
(2) TRANSFER OF ACADEMIC RECORDS.—Each 
qualifying provider that is a school shall agree, as a 
condition of participating in the program under this 
Act, to provide the complete academic records of an 
eligible child attending the school pursuant to an 
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(B) includes charter schools. 
Æ 
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