I 
115TH CONGRESS 
2D SESSION 
H. R. 5199 
To amend the Elementary and Secondary Education Act of 1965 to allow 
parents of eligible military dependent children to establish Military Edu-
cation Savings Accounts, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 7, 2018 
Mr. BANKS of Indiana (for himself, Mr. SCALISE, Mr. MCHENRY, Mr. WALK-
ER, Mr. MESSER, Mr. ROKITA, Mr. RATCLIFFE, Mr. LOUDERMILK, Mr. 
DESJARLAIS, 
Mr. 
KELLY
of 
Mississippi, 
Mr. 
MEADOWS, 
Mr. 
MOOLENAAR, Mr. BUCK, Mr. WEBSTER of Florida, Mrs. WAGNER, Mr. 
SMITH of Missouri, Mr. KELLY of Pennsylvania, Mr. LAMBORN, Mr. 
PERRY, Mr. HARRIS, Mr. LATTA, Mr. BUDD, Mr. DUNCAN of South 
Carolina, Mr. FARENTHOLD, Mr. PEARCE, Mr. GIBBS, Mr. PITTENGER, 
Mrs. BLACKBURN, Mr. BIGGS, and Mr. ESTES of Kansas) introduced the 
following bill; which was referred to the Committee on Education and the 
Workforce, and in addition to the Committee on Ways and Means, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To amend the Elementary and Secondary Education Act 
of 1965 to allow parents of eligible military dependent 
children to establish Military Education Savings Ac-
counts, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Education Savings Ac-
counts for Military Families Act of 2018’’. 
SEC. 2. MILITARY EDUCATION SAVINGS ACCOUNTS. 
Title VII of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7701 et seq.) is amended 
by inserting after section 7012 the following: 
‘‘SEC. 7012A. MILITARY EDUCATION SAVINGS ACCOUNTS. 
‘‘(a) IN GENERAL.—The Secretary of Education, in 
consultation with the Secretary of Defense, shall carry out 
a program under which the Secretary of Education shall— 
‘‘(1) subject to the availability of funds pursu-
ant to section 7014(f), at the request of a parent of 
an eligible military dependent child, establish an ac-
count on behalf of such child (to be known as a 
‘Military Education Savings Account’) into which 
the Secretary shall deposit funds in an amount de-
termined under subsection (d); and 
‘‘(2) establish a procedure under which the par-
ent of the child may use funds in the account to pay 
for the educational expenses of the child in accord-
ance with this section. 
‘‘(b) APPLICATION.— 
‘‘(1) IN GENERAL.—To be eligible to participate 
in the program under this section for a school year, 
a parent of an eligible military dependent child shall 
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submit an application to the Secretary of Education 
in accordance with this subsection. 
‘‘(2) APPLICATION PROCESS.—In carrying out 
paragraph (1), the Secretary of Education shall— 
‘‘(A) accept applications on a year-round 
basis and establish procedures for approving 
applications in an expeditious manner; and 
‘‘(B) create a standardized form that par-
ents can use to apply for the program and en-
sure that such form is readily available in writ-
ten and electronic formats, including on a pub-
licly accessible website. 
‘‘(3) APPROVAL.—Subject to the availability of 
funds to carry out this section, the Secretary shall 
approve the application of a parent to establish a 
Military Education Savings Account if— 
‘‘(A) the application is submitted in ac-
cordance with the application process estab-
lished by the Secretary pursuant to this sub-
section; 
‘‘(B) the application demonstrates that the 
child on whose behalf the Military Education 
Savings Account is to be established is an eligi-
ble military dependent child; and 
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‘‘(C) the parent who submits the applica-
tion enters into a written agreement with the 
Secretary pursuant to subsection (c). 
‘‘(4) RENEWALS.—The Secretary of Education 
shall establish an expedited application process for 
the renewal of a previously established Military Edu-
cation Savings Account. 
‘‘(c) WRITTEN AGREEMENT.—As a condition of par-
ticipating in the program under this section, the parent 
of a child on whose behalf a Military Education Savings 
Account is established shall enter into a written agreement 
with the Secretary under which the parent agrees— 
‘‘(1) to provide the child with instruction in, at 
minimum, the fields of reading, language, mathe-
matics, science, and social studies; 
‘‘(2) to not enroll the child in a public school 
on a full-time basis while participating in the pro-
gram; 
‘‘(3) to use funds in the Military Education 
Savings Account only for the purposes authorized 
under this section; and 
‘‘(4) to comply with all other requirements of 
this section. 
‘‘(d) AMOUNT OF DEPOSITS.— 
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‘‘(1) FIRST YEAR OF PROGRAM.—The amount 
of funds deposited into each Military Education Sav-
ings Account for the first school year for which such 
accounts are established under this section shall 
be— 
‘‘(A) $4,500 for an account established for 
an eligible military dependent child described in 
subsection (t)(1)(A); and 
‘‘(B) $2,500 for an account established for 
an eligible military dependent child described in 
subsection (t)(1)(B). 
‘‘(2) SUBSEQUENT
YEARS.—The amount of 
funds deposited into each Military Education Sav-
ings Account for any school year after the year de-
scribed in paragraph (1), shall be the amount deter-
mined under this subsection for the previous school 
year increased by a percentage equal to the percent-
age increase in the Chained Consumer Price Index 
for All Urban Consumers (as published by the Bu-
reau of Labor Statistics of the Department of 
Labor) over the period of such previous school year. 
‘‘(3) SOURCE OF FUNDS.—In accordance with 
section 7014(f), funds deposited into a Military Edu-
cation Savings Account under this subsection shall 
be drawn from amounts otherwise appropriated to 
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carry out the impact aid program under section 
7003 and no additional funds may be appropriated 
for the purpose of carrying out this subsection. 
‘‘(e) USE OF FUNDS.—Funds deposited into a Mili-
tary Education Savings Account for a school year may be 
used by the parent of an eligible military dependent child 
to make payments to a qualified educational service pro-
vider for— 
‘‘(1) costs of attendance at a private elementary 
school or secondary school recognized by the State, 
which may include a private school that is a religious 
institution; 
‘‘(2) private online learning programs; 
‘‘(3) private tutoring; 
‘‘(4) services provided by a public elementary 
school or secondary school attended by the child on 
a less than full-time basis, including individual class-
es and extracurricular activities and programs; 
‘‘(5) textbooks, curriculum programs, or other 
instructional materials, including any supplemental 
materials required by a curriculum program, private 
school, private online learning program, or a public 
school, or any parent directed curriculum associated 
with K–12 education; 
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‘‘(6) computer hardware or other technological 
devices that are used to help meet a student’s edu-
cational needs, except that such hardware or devices 
may not be purchased by a parent more than once 
in an 18-month period; 
‘‘(7) educational software and applications; 
‘‘(8) uniforms purchased from or through a pri-
vate school recognized by the State; 
‘‘(9) fees for nationally standardized assessment 
exams, advanced placement exams, any exams re-
lated to college or university admission, or tuition or 
fees for preparatory courses for such exams; 
‘‘(10) fees for summer education programs and 
specialized after-school education programs (but not 
including after-school childcare); 
‘‘(11) educational services and therapies, in-
cluding occupational, behavioral, physical, speech- 
language, and audiology therapies; 
‘‘(12) fees for transportation paid to a fee-for- 
service transportation provider for the student to 
travel to and from the facilities of a qualified edu-
cational service provider; 
‘‘(13) costs of attendance at an institution of 
higher education; 
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‘‘(14) costs associated with an apprenticeship or 
other vocational training program; 
‘‘(15) fees for state-recognized industry certifi-
cation exams, and tuition or fees for preparatory 
courses for such exams; 
‘‘(16) contributions to a college savings ac-
count, which may include contributions to a qualified 
tuition program (as defined in section 529(b)(1)(A) 
of the Internal Revenue Code of 1986) or other pre-
paid tuition plan offered by a State; or 
‘‘(17) any other educational expenses approved 
by the Secretary. 
‘‘(f) TRANSFER SCHEDULE.—The Secretary of Edu-
cation shall make quarterly transfers of the amount cal-
culated pursuant to subsection (d) for deposit into the ac-
count of each qualified student, except that the Secretary 
may make transfers according to another transfer sched-
ule if the Secretary determines that a transfer schedule 
other than quarterly transfers is necessary for the oper-
ation of the education savings account. Parents shall be 
required to complete an expense report issued by the Sec-
retary electronically or in paper format prior to the next 
quarter’s deposit. 
‘‘(g) ROLLOVER.—Amounts remaining in the Military 
Education Savings Account of a student at the end of a 
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school year shall remain available for use in accordance 
with subsection (e) until the date on which such account 
terminates under subsection (h). 
‘‘(h) TERMINATION AND RETURN OF FUNDS.— 
‘‘(1) TERMINATION.—The Military Education 
Savings Account of a student shall terminate on— 
‘‘(A) the date on which the student enrolls 
in a public elementary school or secondary 
school on a full-time basis; 
‘‘(B) in the case of a student who is pur-
suing postsecondary education, the earlier of— 
‘‘(i) the date on which the student 
completes postsecondary education; or 
‘‘(ii) the date on which the student at-
tains the age of 22 years; 
‘‘(C) in the case of a student who is an in-
dividual with a disability, the date on which the 
student attains the age of 26 years; or 
‘‘(D) in the case of an individual not de-
scribed in subparagraphs (B) or (C), the earlier 
of— 
‘‘(i) the date on which the student at-
tains the age of 22 years; or 
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‘‘(ii) the expiration of any 4-year pe-
riod during which funds in the account are 
not used in accordance with this section. 
‘‘(2) RETURN OF FUNDS.—Any funds remain-
ing in a Military Education Savings account before 
such account terminates under paragraph (1) shall 
be— 
‘‘(A) returned to the Secretary of Edu-
cation; and 
‘‘(B) used for the program under this sec-
tion. 
‘‘(i) COMPULSORY ATTENDANCE REQUIREMENTS.— 
A State that receives funds under this title shall consider 
a child with a Military Education Savings Account for a 
school year as meeting the State’s compulsory school at-
tendance requirements for such school year. 
‘‘(j) SPECIAL RULE.—In the case of a child with a 
Military Education Savings Account who attends a public 
school on a less than full-time basis in a school year— 
‘‘(1) the child may not attend the public school 
free of charge; and 
‘‘(2) funds in the account, in an amount deter-
mined pursuant to an agreement between the parent 
of the child and the local educational agency con-
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cerned, shall be used to pay for the child’s costs of 
attendance at such school. 
‘‘(k) TAX TREATMENT OF ACCOUNTS.— 
‘‘(1) IN GENERAL.—A Military Education Sav-
ings Account is exempt from taxation under subtitle 
A of the Internal Revenue Code of 1986. 
‘‘(2) CONTRIBUTIONS
AND
DISTRIBUTIONS.— 
For purposes of such subtitle— 
‘‘(A) any contribution to a military edu-
cation savings account by the Secretary under 
this Act shall not be includible in the gross in-
come of the individual for whose benefit such 
account is maintained or the parent of such in-
dividual; and 
‘‘(B) any distribution from a military edu-
cation savings account which is permitted under 
this Act shall not be includible in the gross in-
come of the individual for whose benefit such 
account is maintained or the parent of such in-
dividual. 
‘‘(l) PRIVACY.—Section 444 of the General Education 
Provisions Act (commonly known as the ‘Family Edu-
cational Rights and Privacy Act of 1974’) (20 U.S.C. 
1232g) shall apply to a qualified educational service pro-
vider in the same manner that such section applies to an 
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educational agency or institution (as that term is defined 
in such section). 
‘‘(m) FRAUD PREVENTION AND REPORTING.—The 
Secretary of Education shall establish a website and a tele-
phone hotline that enable individuals to anonymously re-
port suspected fraud in the program under this section. 
The Secretary also shall conduct or contract for random, 
quarterly, or annual audits of accounts as needed to en-
sure compliance with this section. 
‘‘(n) CONTRACT
AUTHORITY.—The Secretary of 
Education may enter into one or more contracts for the 
purpose of carrying out the responsibilities of the Sec-
retary under this section. 
‘‘(o) SURETY BOND.— 
‘‘(1) IN GENERAL.—The Secretary shall require 
each qualified educational service provider that re-
ceives not less than $100,000 in funds from Military 
Education Savings Accounts in a school year to post 
a surety bond, in an amount determined by the Sec-
retary, for such school year. 
‘‘(2) RETENTION.—The Secretary shall pre-
scribe the circumstances under which a surety bond 
under paragraph (1) may be retained by the Sec-
retary. 
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‘‘(p) REFUNDS.—The Secretary shall establish a 
process under which payments from a Military Education 
Savings Accounts to a qualified educational service pro-
vider may be refunded to the account in the event of fraud 
or nonperformance by the provider. 
‘‘(q) RULES OF CONSTRUCTION.— 
‘‘(1) NONAGENCY.—A qualified educational 
service provider that receives a payment from a Mili-
tary Education Savings Account pursuant to this 
section shall not be considered an agent of the State 
or the Federal Government solely because the pro-
vider received such payment. 
‘‘(2) FEDERAL OR STATE SUPERVISION.—Noth-
ing in this section shall be construed to allow any 
agency of a State or the Federal Government to ex-
ercise control or supervision over any qualified edu-
cational service provider. 
‘‘(3) IMPOSITION
OF
ADDITIONAL
REQUIRE-
MENTS.—Nothing in this section shall be construed 
to require a qualified educational service provider to 
alter its creed, practices, admissions policy, or cur-
riculum in order to be eligible to receive payments 
from a Military Education Savings Account. 
‘‘(4) TREATMENT
OF
ASSISTANCE.—For pur-
poses of any Federal law, assistance provided under 
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this section shall be considered assistance to the 
military dependent student or to the parents of a 
student on whose behalf a Military Education Sav-
ings Account is established and shall not be consid-
ered assistance to the qualified educational service 
provider that uses or receives funds from a Military 
Education Savings Account. 
‘‘(r) LEGAL PROCEEDINGS.— 
‘‘(1) BURDEN.—In any legal proceeding in 
which a qualified educational service provider chal-
lenges a requirement imposed by the Department of 
Education on the provider, the Department shall 
have the burden of establishing that the law is nec-
essary and does not impose any undue burden on 
the provider. 
‘‘(2) LIMITATION ON LIABILITY.— 
‘‘(A) IN GENERAL.—No liability shall arise 
on the part of an entity described in subpara-
graph (B) solely because such entity awards, 
uses, or receives funds from a Military Edu-
cation Savings Account. 
‘‘(B) ENTITY
DESCRIBED.—The entities 
described in this subparagraph are the fol-
lowing: 
‘‘(i) The Department of Education. 
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‘‘(ii) An entity that enters into a con-
tract with the Secretary pursuant to sub-
section (n). 
‘‘(3) INTERVENTION.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a parent of an eligible mili-
tary dependent student or a parent of a student 
on whose behalf a Military Education Savings 
Account is established may intervene in any 
legal proceeding in which the constitutionality 
of the program under this section is challenged 
under a State constitution or the Federal con-
stitution. 
‘‘(B) EXCEPTION.—For purposes of judi-
cial administration, a court may— 
‘‘(i) limit the number of parents al-
lowed to intervene in a proceeding under 
subparagraph (A); or 
‘‘(ii) require all parents who have in-
tervened in a proceeding under subpara-
graph (A) to file a joint brief, except that 
no parent shall be required to join any 
brief filed on behalf of a State that is a de-
fendant in the proceeding. 
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‘‘(s) ADMINISTRATIVE EXPENSES.—The Secretary 
may use not more than 5 percent of the funds made avail-
able to carry out this section for the direct costs of admin-
istering Military Education Savings Accounts. 
‘‘(t) DEFINITIONS.—In this section: 
‘‘(1) The term ‘eligible military dependent child’ 
means a child who— 
‘‘(A)(i) has a parent on active duty in the 
uniformed services (as that term defined in sec-
tion 101 of title 37, United States Code, except 
that such term does not include an officer in 
the National Guard who has been activated); 
and 
‘‘(ii) resides within the boundaries of a 
heavily impacted local educational agency; or 
‘‘(B)(i) has a parent on active duty in the 
uniformed services (as that term defined in sec-
tion 101 of title 37, United States Code, except 
that such term does not include an officer in 
the National Guard who has been activated); 
‘‘(ii) resides within the boundaries of a 
Federal military installation; and 
‘‘(iii) does not reside within the boundaries 
of a heavily impacted local educational agency. 
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‘‘(2) The term ‘heavily impacted local edu-
cational agency’ means a local educational agency el-
igible to receive a payment under section 7003(b)(2). 
‘‘(3) 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). 
‘‘(4) The term ‘qualified educational service 
provider’ means an entity or person that provides 
educational services for which funds may be ex-
pended under subsection (e), including— 
‘‘(A) a private school; 
‘‘(B) a private online learning program or 
course; 
‘‘(C) an institution of higher education, in-
cluding a state institution of higher education, 
a junior or community college, or a postsec-
ondary vocational institution; 
‘‘(D) a public school; 
‘‘(E) a private tutor or entity that operates 
a tutoring facility; 
‘‘(F) a provider of educational materials or 
curriculum; 
‘‘(G) a provider of education-related thera-
pies or services; and 
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‘‘(H) any other provider of educational 
services approved by the Secretary.’’. 
SEC. 3. AUTHORIZATION OF APPROPRIATIONS. 
Section 7014 of the Elementary and Secondary Edu-
cation Act of 1965 is amended by adding at the end the 
following: 
‘‘(f) MILITARY EDUCATION SAVINGS ACCOUNTS.— 
‘‘(1) SOURCE OF FUNDS AND PROHIBITION ON 
ADDITIONAL APPROPRIATION.—Subject to paragraph 
(2), section 7012A shall be carried out using funds 
otherwise appropriated to carry out the impact aid 
program under section 7003 and no additional funds 
may be appropriated to carry out such section 
7012A. 
‘‘(2) PROHIBITION
ON
USE
OF
CERTAIN 
FUNDS.—In making funds available to carry out sec-
tion 7012A under paragraph (1), the Secretary of 
Education shall ensure that such funds are drawn 
only from amounts otherwise made available for the 
education of military dependent children under sec-
tion 7003 and not from other sources.’’. 
Æ 
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