To amend the Elementary and Secondary Education Act of 1965 to establish a discretionary grant program for school construction for local educational agencies affected by base closures and realignments, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Military Children's School 
Investment Act''.

SEC. 2. SCHOOL CONSTRUCTION GRANTS.

    (a) In General.--Section 8007 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7707) is amended by adding at the end 
the following:
    ``(c) School Construction Grants.--
            ``(1) Authority and conditions for grants.--From the amount 
        appropriated for each fiscal year under section 8014(f), the 
        Secretary is authorized to make grants to eligible local 
        educational agencies to carry out eligible projects for the 
        construction of public kindergarten, elementary, and secondary 
        school facilities.
            ``(2) Eligibility.--To be eligible to receive a grant under 
        paragraph (1), the local educational agency shall--
                    ``(A) have been eligible to receive a payment under 
                section 8003 for the fiscal year prior to the year for 
                which the application is made; and
                    ``(B) have had an overall increase in enrollment--
                            ``(i) during the period between the end of 
                        the school year preceding the fiscal year for 
                        which the application is made and the beginning 
                        of the school year immediately preceding that 
                        school year;
                            ``(ii) of not less than 250, or not less 
                        than 10 percent (whichever is lower), of 
                        students who are children described in--
                                    ``(I) subparagraph (A), (B), or (D) 
                                of section 8003(a)(1); or
                                    ``(II) subparagraph (F) or (G) of 
                                section 8003(a)(1), but only to the 
                                extent such children are civilian 
                                dependents of employees of the 
                                Department of Defense; and
                            ``(iii) that is the direct result of one or 
                        more of the following:
                                    ``(I) Base realignment and closure 
                                or global rebasing, as determined by 
                                the Secretary of Defense.
                                    ``(II) Force structure changes or 
                                force reductions.
                                    ``(III) An action initiated by the 
                                Secretary of Defense.
            ``(3) Criteria for grants.--In considering an application 
        for a grant the Secretary shall consider--
                    ``(A) the extent to which the local educational 
                agency involved needs the grant because it lacks the 
                fiscal capacity to undertake the project for which the 
                grant would be used without the grant; and
                    ``(B) the demonstrated need for the construction, 
                reconstruction, or renovation based on the condition of 
                the facility in the project.
            ``(4) Eligible projects.--To be an eligible project for a 
        grant under paragraph (1), the project must consist of--
                    ``(A) the construction of new elementary or 
                secondary schools to meet the needs imposed by 
                enrollment growth;
                    ``(B) the construction of additional academic 
                learning space at existing schools;
                    ``(C) the repair or upgrading of classrooms or 
                structures related to academic learning, including but 
                not limited to roofs, walls, plumbing, ventilation 
                equipment, and inadequate heating or lighting 
                equipment; or
                    ``(D) the leasing of buildings or portions of 
                buildings from a private entity for the purpose of 
                providing school space, with the Secretary's approval.
            ``(5) Amount and conditions of grants.--In making grants 
        under this subsection, the Secretary shall ensure that the 
        amount of a grant does not exceed the total construction, 
        modernization, or repair costs involved, as determined by the 
        Secretary.
            ``(6) Impermissible uses of funds.--No funds received under 
        this subsection may be used for--
                    ``(A) payment of maintenance costs; or
                    ``(B) stadiums or other facilities primarily used 
                for athletic contests or exhibitions or other events 
                for which admission is charged to the general public.
            ``(7) Supplement, not supplant.--A local educational agency 
        receiving a grant under this subsection shall use such Federal 
        funds only to supplement and not supplant the amount of funds 
        that would, in the absence of such Federal funds, be available 
        for construction, modernization, and repair of public 
        kindergarten, elementary, and secondary school facilities.
            ``(8) Reporting.--
                    ``(A) Reports by secretary.--Not later than 
                December 31 of each fiscal year, the Secretary, and the 
                Secretary of Defense, shall each submit to the 
                Committee on Education and Labor and the Committee on 
                Armed Services of the House of Representatives and the 
                Committee on Health, Education, Labor, and Pensions and 
                the Committee on Armed Services of the Senate a report 
                on grants made under this subsection, including the 
                types of construction, modernization, and repair 
                funded, and the number of students impacted.
                    ``(B) Reports by local educational agencies.--Not 
                later than September 30 of each fiscal year, each local 
                educational agency receiving a grant under this 
                subsection shall submit to the Secretary, and to the 
                Secretary of Defense, a report on the agency's use of 
                such grant funds.''.
    (b) Authorization of Appropriations.--Section 8014 of that Act (20 
U.S.C. 7714) is amended--
            (1) in subsection (e), by inserting after ``8007'' the 
        following: ``other than section 8007(c)''; and
            (2) by inserting after subsection (f) the following:
    ``(g) School Construction Grants.--For the purposes of carrying out 
section 8007(c), there are authorized to be appropriated $500,000,000 
for fiscal year 2009 and such sums as may be necessary for each of the 
seven succeeding fiscal years.''.

Summary: Military Childrens School Investment Act - Amends the Impact Aid program (which compensates local educational agencies [LEAs] for the financial burden of federal activities affecting their areas) of the Elementary and Secondary Education Act of 1965 to authorize the Secretary of Education to award grants to LEAs that: (1) were eligible for Impact Aid in the prior fiscal year due to federally-connected children; and (2) are experiencing an enrollment increase of at least 250 or 10% consisting of certain federally-connected children whose arrival is due to military base closures and realignments or global rebasing, force structure changes or reductions, or actions initiated by the Secretary of Defense.

Requires such grants to be used: (1) to construct new schools or expand existing schools to accommodate the influx of students; (2) repair or upgrade academic facilities; or (3) lease, with the Secretary's approval, buildings or portions of buildings from a private entity for additional school space.