140 
building for tribal schools or schools served by the Bureau 
of Indian Education to ensure such tribal schools or 
schools served by the Bureau of Indian Education are pro-
vided the assistance to compete for such grants, contracts, 
or other assistance.’’. 
TITLE II—AMENDMENTS TO 
OTHER LAWS 
SEC. 201. AMENDMENTS TO THE AMERICAN RECOVERY 
AND REINVESTMENT ACT OF 2009 TO PRO-
VIDE FUNDING FOR INDIAN PROGRAMS. 
Title XIV of Division A of the American Recovery 
and Reinvestment Act of 2009 (Public Law 111–5; 123 
Stat. 279) is amended— 
(1) by striking subsection (a) of section 14001 
and inserting the following: 
‘‘(a) OUTLYING AREAS; BUREAU OF INDIAN EDU-
CATION.— 
‘‘(1) OUTLYING AREAS.—From the amount ap-
propriated to carry out this title, the Secretary of 
Education shall first allocate up to one-half of one 
percent to the outlying areas on the basis of their 
respective needs, as determined by the Secretary, in 
consultation with the Secretary of the Interior, for 
activities consistent with this title under such terms 
and conditions as the Secretary may determine. 
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141 
‘‘(2) BUREAU OF INDIAN EDUCATION.—From 
the amounts appropriated to carry out section 
14006 and section 14007, the Secretary of Edu-
cation shall allocate not less than 1 percent, but not 
more than 5 percent, to the schools funded by the 
Bureau of Indian Education on the basis of their re-
spective needs, as determined by the Secretary of 
Education, in consultation with the Secretary of the 
Interior, for activities consistent with such sections 
under such terms and conditions as the Secretary 
may determine.’’; and 
(2) in section 14005(d), by striking paragraph 
(6) (as added by section 1832(b) of the Department 
of Defense and Full-Year Continuing Appropriations 
Act, 2011 (Public Law 112–10, 125 Stat. 164)) and 
inserting the following: 
‘‘(6) IMPROVING EARLY CHILDHOOD CARE AND 
EDUCATION.—The State will take actions to— 
‘‘(A) increase the number and percentage 
of low-income and disadvantaged children in 
each age group of infants, toddlers, and pre-
schoolers who are enrolled in high-quality early 
learning programs; 
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‘‘(B) design and implement an integrated 
system of high-quality early learning programs 
and services; 
‘‘(C) in collaboration with Indian tribes in 
the State, ensure that the actions described in 
(A) and (B) are taken to ensure that high-qual-
ity early learning programs and services are 
provided to Indian children in the State, which 
may be accomplished through subgrants to such 
tribes; and 
‘‘(D) ensure that any use of assessments 
conforms with the recommendations of the Na-
tional Research Council’s reports on early child-
hood.’’. 
SEC. 202. QUALIFIED SCHOLARSHIPS FOR EDUCATION AND 
CULTURAL BENEFITS. 
(a) IN GENERAL.—Section 117 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(e) INDIAN EDUCATION
AND CULTURAL BENE-
FITS.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, gross income does not in-
clude the value of— 
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