To provide grants to States for tuition assistance for undergraduate studies for members of the Selected Reserve at public institutions of higher learning.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Guard and Reservists 
Education Benefits Act''.

SEC. 2. BLOCK GRANTS TO STATES FOR TUITION ASSISTANCE FOR MEMBERS OF 
              THE SELECTED RESERVE.

    (a) Establishment of Program.--
            (1) In general.--The Secretary of Education shall carry out 
        a program of block grants to States under this section to 
        provide for the payment of tuition and fees for undergraduate 
        studies at public institutions of higher learning otherwise 
        payable by a member of the Selected Reserve attending those 
        institutions for those studies.
            (2) Limitation.--Tuition assistance under this section 
        shall not be made available to a member of the Selected Reserve 
        who participates in the program of educational assistance under 
        chapter 1606 of title 10, United States Code, or under chapter 
        30 of title 38, United States Code.
    (b) State Certifications.--Not later than October 1 of each of 
fiscal year for which a State desires to receive an allotment under 
this section, the chief executive officer of the State shall submit to 
the Secretary a certification that the State will--
            (1) use such funds to defray the costs of tuition and fees 
        for undergraduate studies of members of the Selected Reserve 
        attending public institutions of higher learning in the States;
            (2) return any unused funds to the Secretary in accordance 
        with the reconciliation process under subsection (d); and
            (3) comply with the reporting requirements under subsection 
        (e).
    (c) Payments to States.--For each of fiscal years 2005 through 
2010, the Secretary shall pay to each State that submits a 
certification under subsection (b), from any funds appropriated under 
subsection (g), for the fiscal year an amount equal to the amount of 
the allotment determined for the fiscal year under subsection (f).
    (d) Reconciliation Process.--
            (1) 3-year availability of amounts allotted.--Each State 
        that receives an allotment under this section shall return to 
        the Secretary any unused portion of the amount allotted to a 
        State under this section for a fiscal year not later than the 
        last day of the second succeeding fiscal year together with any 
        earnings on such unused portion.
            (2) Procedure for redistribution of unused allotments.--The 
        Secretary shall establish an appropriate procedure for 
        redistributing to States that have expended the entire amount 
        allotted under this section any amount that is--
                    (A) returned to the Secretary by States under 
                paragraph (1); or
                    (B) not allotted to a State under this section 
                because the State did not submit a certification under 
                subsection (b) by October 1 of a fiscal year.
    (e) Reporting Requirements.--
            (1) Monitoring and evaluation.--Each State receiving an 
        allotment under this section for a fiscal year shall monitor 
        and evaluate the tuition assistance program carried out under 
        this section using funds made available under this section in 
        such manner as the Secretary, in consultation with the States, 
        determines appropriate.
            (2) Annual reports.--Not less frequently than annually, 
        each State receiving an allotment under this section for a 
        fiscal year shall submit to the Secretary reports on the 
        tuition assistance programs carried out under this section at 
        such time, in such manner, and containing such information as 
        the Secretary may require.
    (f) Amount of Allotments.--
            (1) In general.--Except as provided in paragraph (2), of 
        the amount appropriated for the purpose of making allotments 
        under this section for a fiscal year, the Secretary shall allot 
        to each State that submits a certification under subsection (b) 
        for the fiscal year an amount equal to the amount that bears 
        the same ratio to the number of members of the Selected Reserve 
        residing in the State (as determined by the Secretary based on 
        the most recent March supplement to the Current Population 
        Survey of the Bureau of the Census before the beginning of the 
        calendar year in which such fiscal year begins) as bears to the 
        number of members of the Selected Reserve residing in all 
        States.
            (2) Minimum allotments.--No allotment for a fiscal year 
        under this section shall be less than--
                    (A) in the case of a State other than the 
                Commonwealth of Puerto Rico, the United States Virgin 
                Islands, Guam, American Samoa, and the Commonwealth of 
                the Northern Mariana Islands, 1 percent of the amount 
                appropriated for the fiscal year under subsection (g); 
                and
                    (B) in the case of the Commonwealth of Puerto Rico, 
                the United States Virgin Islands, Guam, American Samoa, 
                and the Commonwealth of the Northern Mariana Islands, 
                0.5 percent of such amount.
            (3) Pro rata reductions.--The Secretary shall make such pro 
        rata reductions to the allotments determined under paragraph 
        (1) as are necessary to comply with the requirements of 
        paragraph (2).
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated $100,000,000 for each of fiscal years 2005 through 2010 
for purposes of making allotments to States under this section.
    (h) Definitions.--In this section:
            (1) Selected reserve.--The term ``Selected Reserve'' means 
        the Selected Reserve of the Ready Reserve of any of the reserve 
        components (including the Army National Guard of the United 
        States and the Air National Guard of the United States) of the 
        Armed Forces, as required to be maintained under section 
        10143(a) of title 10, United States Code.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (3) Institution of higher learning.--The term ``institution 
        of higher education'' has the meaning given that term under 
        section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 
        1001(a)).
            (4) State.--The term State'' means each of the 50 States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
            (5) Tuition and fees for undergraduate studies.--The term 
        ``tuition and fees for undergraduate studies'' means the actual 
        cost of tuition and fees for undergraduate studies charged by a 
        public institution of higher learning to similarly 
        circumstanced individuals who are not members of the Selected 
        Reserve for enrollment in courses of education at the 
        institution, and includes the average cost of books and 
        supplies payable by such individuals for those studies.

Summary: National Guard and Reservists Education Benefits Act - Requires the Secretary of Education to carry out a program of block grants to States (defined to include U.S. territories and the District of Columbia) to pay tuition and fees for undergraduate studies at public institutions for members of the Selected Reserve.

Excludes from the block grant program those members of the Selected Reserve who participate in other specified educational assistance programs.

Requires the chief executive officer of each State wishing to receive block grant funds to submit an annual certification that the State will: (1) use such funds to defray the cost of undergraduate tuition and fees for members of the Selected Reserve; (2) return any unused funds to the Secretary according to the reconciliation process set forth in this Act; and (3) comply with the reporting requirements of this Act.

Sets forth an allotment scheme for block grant funds that requires allotments to reflect the ratio of Selected Reserve members in the receiving State to Selected Reserve members in all States. Establishes minimum allotments.