secondary school chosen by the student’s 
parents; and’’; 
(2) by redesignating subparagraph (C) as sub-
paragraph (F); and 
(3) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) SPECIAL RULE FOR PRIVATE SCHOOL 
CHOICE.—If a local education agency imple-
ments subparagraph (A)(iii), it shall— 
‘‘(i) apply fair and equitable proce-
dures for awarding scholarships under that 
subparagraph when the number of appli-
cants exceeds available funding, which 
must include giving priority to students 
whose schools are in the second or a later 
year 
of 
restructuring 
under 
section 
1116(b)(8); 
‘‘(ii) make scholarship payments to 
the parents of the students, in a manner 
that ensures that those payments are used 
only for the payment of tuition, fees, and 
necessary transportation expenses, in ac-
cordance with this section; 
‘‘(iii) ensure that the amount a stu-
dent receives under such a scholarship for 
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an academic year, together with any funds 
the student receives under section 1116(e) 
for that academic year— 
‘‘(I) does not exceed $4,000; and 
‘‘(II) does not exceed the costs, 
including 
necessary 
transportation 
and other expenses, to attend the pri-
vate elementary or secondary school; 
‘‘(iv) if a student uses such a scholar-
ship, continue to provide such a scholar-
ship to that student for each academic 
year thereafter until the student completes 
the grade that is the final grade taught at 
the school that the student attended before 
using the scholarship; 
‘‘(v) assess that student in reading or 
language arts, mathematics, and science 
(at the grade levels specified in section 
1111(b)(3)(C)) by using the State assess-
ments 
administered 
under 
section 
1111(b)(3), and include the student’s 
scores on those assessments in its annual 
report cards under section 1111(h)(2) and 
in determining whether the school and 
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local educational agency made adequate 
yearly progress under section 1111; 
‘‘(vi) separately display, for the local 
educational agency as a whole, the assess-
ment results for students using the schol-
arships in its annual report cards under 
section 1111(h)(2), except where doing so 
would reveal personally identifiable infor-
mation about an individual student. 
‘‘(D) 
SPECIAL
RULE
FOR
PRIVATE 
SCHOOLS.—A private elementary or secondary 
school that enrolls a student who is using a 
scholarship under subparagraph (A)(iii) shall— 
‘‘(i) assess that student in reading or 
language arts, mathematics, and science 
(at the grade levels specified in section 
1111(b)(3)(C)) by using either the State 
assessments administered under section 
1111(b)(3) or nationally normed assess-
ments; and 
‘‘(ii) provide the results of those as-
sessments to the local educational agency 
that made the scholarship available. 
‘‘(E) NONDISCRIMINATION.— 
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‘‘(i) IN
GENERAL.—A local edu-
cational agency or private elementary or 
secondary school participating in any pro-
gram under subparagraph (A)(iii) shall not 
discriminate against participants or appli-
cants on the basis of race, color, national 
origin, religion, or sex. 
‘‘(ii) RELIGIOUS TENETS OR BELIEFS 
WITH RESPECT TO SEX.—The prohibition 
of sex discrimination in clause (i) does not 
apply to a participating school that is oper-
ated by, supervised by, controlled by, or 
connected to a religious organization to the 
extent that the application of that prohibi-
tion is inconsistent with the religious te-
nets or beliefs of the school. 
‘‘(iii) SINGLE-SEX EDUCATION.—Not-
withstanding the prohibition of sex dis-
crimination in clause (i), a participating 
school may offer, and a participating par-
ent may choose, a single-sex school, class, 
or activity. 
‘‘(iv) NEUTRALITY.—Section 909 of 
the Education Amendments of 1972 (20 
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U.S.C. 1688) shall apply to a program 
under subparagraph (A)(iii). 
‘‘(v) CHILDREN WITH DISABILITIES.— 
Subparagraphs (C), (D), and (E) do not 
affect any requirement of the Individuals 
with Disabilities Education Act (20 U.S.C. 
1400 et seq.). 
‘‘(vi) MATTERS
OF
EMPLOYMENT.— 
Notwithstanding clause (i), a private ele-
mentary or secondary school participating 
in 
any 
program 
under 
subparagraph 
(A)(iii) that is operated by, supervised by, 
controlled by, or connected to a religious 
organization may exercise its right in mat-
ters of employment consistent with title 
VII of the Civil Rights Act of 1964 (42 
U.S.C. 2000e–1 et seq.), including the ex-
emptions in that title. 
‘‘(vii) 
FIRST
AMENDMENT.—Con-
sistent with the First Amendment to the 
Constitution of the United States, a par-
ticipating school shall not, by reason of re-
ceiving funds under a program under sub-
paragraph (A)(iii), be required to— 
‘‘(I) change its teaching mission; 
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‘‘(II) remove religious art, icons, 
scriptures, or other symbols; 
‘‘(III) remove religious terms or 
references from its name, mission 
statement, or other chartering or gov-
erning documents; or 
‘‘(IV) refrain from using religion 
as a basis in selecting its board mem-
bers.’’. 
SEC. 4. OPPORTUNITY SCHOLARSHIPS FOR PARENTS AND 
STUDENTS. 
Part B of title I of the Elementary and Secondary 
Education Act of 1965 is amended by adding at the end 
the following: 
‘‘Subpart 5—Opportunity Scholarships for Parents 
and Students 
‘‘SEC. 1261. DEFINITIONS. 
‘‘In this subpart: 
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means— 
‘‘(A) a local educational agency; 
‘‘(B) a State educational agency; or 
‘‘(C) a nonprofit organization or a consor-
tium of nonprofit organizations. 
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‘‘(2) ELIGIBLE STUDENT.—The term ‘eligible 
student’ means a student from a low-income family 
who— 
‘‘(A) with respect to a school identified for 
restructuring under section 1116(b)(8)— 
‘‘(i) is eligible to enroll in the begin-
ning grade of the school; 
‘‘(ii) except as provided in subpara-
graph (C), attended the school for the en-
tire school year preceding the identifica-
tion; 
‘‘(iii) in the case of a student who 
transfers to the school to attend any grade 
beyond the beginning grade of the school, 
attends the school for the remainder of the 
school year in which the transfer occurs; or 
‘‘(iv) received a scholarship under this 
subpart in a preceding school year due to 
such identification; or 
‘‘(B) is a sibling of a student described in 
any 1 of clauses (i) through (iv) of subpara-
graph (A). 
‘‘(3) LOW-INCOME FAMILY.—The term ‘low-in-
come family’ means a family whose income does not 
exceed 185 percent of the poverty line, except that 
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in the case of a student participating in a project 
under this subpart for a second or any succeeding 
school year the term includes a family whose income 
does not exceed 220 percent of the poverty line. 
‘‘(4) POVERTY LINE.—The term ‘poverty line’ 
means the income official poverty line (as defined by 
the Office of Management and Budget, and revised 
annually in accordance with section 673(2) of the 
Community Services Block Grant Act (42 U.S.C. 
9902(2)) applicable to a family of the size involved. 
‘‘(5) PRIVATE
PROVIDER.—The term ‘private 
provider’ means a nonprofit or for-profit private pro-
vider of supplemental educational services described 
in section 1116(e)(1) that is on the updated list of 
approved providers maintained by the State edu-
cational agency under section 1116(e)(4)(C). 
‘‘(6) 
SUPPLEMENTAL
EDUCATIONAL
SERV-
ICES.—The term ‘supplemental educational services’ 
has the meaning given the term in section 
1116(e)(12)(C). 
‘‘SEC. 1262. PROGRAM AUTHORIZED. 
‘‘(a) AUTHORITY.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2) 
and from amounts appropriated under section 1264 
for a fiscal year, the Secretary shall award grants, 
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on a competitive basis, to eligible entities to support 
projects that provide— 
‘‘(A) scholarships to enable eligible stu-
dents to attend— 
‘‘(i) the private elementary school or 
secondary school of their parent’s choice; 
or 
‘‘(ii) a public elementary school or 
secondary school of their parents’ choice 
outside of the eligible student’s home 
school district, consistent with State law; 
or 
‘‘(B) eligible students with intensive, sus-
tained supplemental educational services on an 
annual basis. 
‘‘(2) SCHOLARSHIP DURATION RULE.—Each eli-
gible entity that receives a grant under this subpart 
shall award a scholarship under this subpart only to 
an eligible student for— 
‘‘(A)(i) in the case of an eligible student 
described in section 1261(2)(A), the first school 
year for which the eligible student is eligible to 
receive the scholarship with respect to a school 
identified 
for 
restructuring 
under 
section 
1116(b)(8); and 
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‘‘(ii) in the case of an eligible student de-
scribed in section 1261(2)(B), the first school 
year taught at the school so identified; and 
‘‘(B) each subsequent school year through 
the school year applicable to the final grade 
taught at the school so identified. 
‘‘(b) DURATION OF GRANTS.—The Secretary may 
award grants under this subpart for a period of not more 
than 5 years. 
‘‘(c) PRIORITIES.—In awarding grants under this 
subpart, the Secretary shall give priority to eligible entities 
that— 
‘‘(1) make scholarships available to students to 
attend a private elementary or secondary school cho-
sen by the student’s parents as authorized under 
section 1116(b)(8)(A)(iii); 
‘‘(2) propose to serve eligible students in a local 
educational agency with a large number or percent-
age of schools identified for restructuring under sec-
tion 1116(b)(8); 
‘‘(3) possess the knowledge and capacity to in-
form parents of eligible students, in urban, subur-
ban, and rural areas, about public and private ele-
mentary school and secondary school options; and 
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‘‘(4) will augment the scholarships provided to 
eligible students under this subpart in order to help 
ensure that parents can afford the cost (including 
tuition, fees, and necessary transportation expenses) 
of the schools the parents choose to have their chil-
dren attend under this subpart. 
‘‘(d) APPLICATION REQUIREMENTS.— 
‘‘(1) IN
GENERAL.—To be considered for a 
grant under this subpart, an eligible entity shall sub-
mit an application to the Secretary at such time, in 
such manner, and containing such information as 
the Secretary 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 receiv-
ing scholarships under this subpart, and 
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private providers participating in the 
project, will meet the applicable require-
ments of the project; 
‘‘(B) each school identified for restruc-
turing that will be served under the project, in-
cluding— 
‘‘(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 subpart are subsequently 
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identified 
for 
restructuring 
under 
section 
1116(b)(8); 
‘‘(E) how the eligible entity will use funds 
received under this subpart; 
‘‘(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 
random 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 
subpart effectively; 
‘‘(I) how the eligible entity will prioritize 
between providing scholarships and providing 
sustained, intensive supplemental educational 
services, including the timing and duration of 
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offering the opportunity for parents to deter-
mine 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 subpart may— 
‘‘(A) reserve not more than 5 percent of 
the grant funds for administrative expenses, in-
cluding costs associated with recruiting and se-
lecting eligible students, private schools, and 
private providers, to participate in the project; 
‘‘(B) only for the first year for which grant 
funds are received under this subpart, reserve 
not more than 5 percent of the grant funds (in 
addition 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 schol-
arships to eligible students to pay for the cost, 
including 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 subpart shall— 
‘‘(A) first fund scholarships for eligible 
students to attend the private school of 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); and 
‘‘(B) use any remaining grant funds to 
provide 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 subpart shall make scholar-
ship payments under this subpart 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 
transportation expenses, in accordance with this sub-
part. 
‘‘(f) PROHIBITION.—A student who receives supple-
mental educational services under this subpart shall not 
be eligible to receive other such services under section 
1116(e). 
‘‘(g) PROJECT PERFORMANCE.—Each eligible entity 
receiving a grant under this subpart shall prepare and 
submit to the Secretary a final report on the results of 
the project assisted under this subpart that contains such 
information as the Secretary may require. At a minimum, 
the report shall include information on the academic 
achievement of students receiving scholarships and supple-
mental educational services under the project. 
‘‘(h) PERFORMANCE INFORMATION.—Each eligible 
entity that receives a grant under this subpart shall collect 
and report such performance information as the Secretary 
may require for the national evaluation conducted under 
subsection (i). 
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