States’ Education Reclamation Act of 2021
Bill: H.R.2106 | Sponsor: Rep. Rouzer, David (R-NC)
Policy area: Education

Summary:
States' Education Reclamation Act of 2021
This bill abolishes the Department of Education (ED) and repeals any program for which it has administrative responsibility.
The Department of the Treasury shall provide grants to states, for FY2021-FY2029, for elementary, secondary, and postsecondary education purposes permitted by state law. The level of funding is set at the amount provided to states for federal elementary and secondary education programs and the amount provided for federal postsecondary education programs, respectively, for FY2021, minus the funding provided for education programs that the bill transfers to other federal agencies.
States must contract for an annual audit of their expenditures or transfers of grant funds.
Program administrative responsibility and delegation of authority are transferred as follows:

To provide for the elimination of the Department of Education, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``States' Education Reclamation Act of 
2021''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Principles of federalism embodied in the Constitution 
        of the United States entrust authority over issues of 
        educational policy to the States and the people and a Federal 
        Department of Education is inconsistent with such principles.
            (2) Tradition and experience dictate that the governance 
        and management of schools in the United States are best 
        performed by parents, teachers, and communities.
            (3) The education of the Nation's students is suffering 
        under a managerial government.
            (4) The Department of Education has weakened the ability of 
        parents to make essential decisions about their children's 
        education and has undermined the capacity of communities to 
        govern their schools.
            (5) In the 41 years of its existence, the Department of 
        Education has grown from a budget of $14 billion to almost 
        $73.5 billion in annual discretionary appropriations 
        administering around 100 programs. Meanwhile, education 
        performance for 17-year-olds has stagnated since 1971.
            (6) The Department of Education has fostered over-
        regulation, standardization, bureaucratization, and litigation 
        in United States education.
            (7) The Department of Education expends large amounts of 
        money on its own maintenance and overhead. While the average 
        national salary for public school teachers is $61,730 the 
        average salary for a Department of Education employee is 
        $112,724.
            (8) In certain States, the average State salary for a 
        public school teacher is less than the national average. In 
        North Carolina, the average salary for a public school teacher 
        is $53,975.
            (9) Recent tests reflect poor results in mathematics, 
        science, and reading for American students compared with 
        students from other nations.
            (10) Only through initiatives led by parents and local 
        communities with the power to act can the United States elevate 
        educational performance toward an acceptable level.
            (11) The current system of top-down education uniformity is 
        detrimental to local businesses and communities, the economic 
        needs of the States, and the Nation's ability to compete 
        globally for jobs.
            (12) The Department of Education has been hostile to many 
        promising reforms, including reforms that would empower 
        parents, teachers, and local communities. The United States, 
        once a laboratory of innovation through the experiments of the 
        States, is moving toward education standardization that does 
        not consider the individual educational needs of our diverse 
        population of students.

SEC. 3. ABOLITION OF DEPARTMENT OF EDUCATION.

    The Department of Education is abolished, and, with the exception 
of the programs transferred under section 7, any program for which the 
Secretary of Education or the Department of Education has 
administrative responsibility as provided by law or by delegation of 
authority pursuant to law is repealed, including each program under the 
following:
            (1) The Department of Education Organization Act (20 U.S.C. 
        3401 et seq.).
            (2) The General Education Provisions Act (20 U.S.C. 1221 et 
        seq.).

SEC. 4. GRANTS TO STATES FOR ELEMENTARY AND SECONDARY AND FOR 
              POSTSECONDARY EDUCATION PROGRAMS.

    (a) In General.--Subject to the requirements of this Act, each 
State is entitled to receive from the Secretary of the Treasury, by not 
later than July 1 of the preceding fiscal year--
            (1) a grant for fiscal year 2021 and each succeeding fiscal 
        year through fiscal year 2029, that is equal to the amount of 
        funds appropriated for the State for Federal elementary school 
        and secondary school programs for fiscal year 2021 (except for 
        the funds appropriated for fiscal year 2021 for such programs 
        for such State that are being transferred under section 7); and
            (2) a grant for fiscal year 2021 and each succeeding fiscal 
        year through fiscal year 2029, that is equal to the amount of 
        funds appropriated for the State for Federal postsecondary 
        education programs for fiscal year 2021 (except for the funds 
        appropriated for fiscal year 2021 for such programs for such 
        State that are being transferred under section 7).
    (b) Appropriation.--Out of any money in the Treasury of the United 
States not otherwise appropriated, there are appropriated for fiscal 
years 2021 through 2029, such sums as are necessary for grants under 
subsection (a).
    (c) Requirements Relating to Intergovernmental Financing.--The 
Secretary of the Treasury shall make the transfer of funds under grants 
under subsection (a) directly to each State in accordance with the 
requirements of section 6503 of title 31, United States Code.
    (d) Expenditure of Funds.--Amounts received by a State under this 
section for any fiscal year shall be expended by the State in such 
fiscal year or in the succeeding fiscal year.
    (e) Use of Funds.--Funds made available to a State--
            (1) under subsection (a)(1), shall be used by the State for 
        any elementary or secondary education purpose permitted by 
        State law, including increases in teacher salaries; and
            (2) under subsection (a)(2), shall be used by the State for 
        any postsecondary education purpose permitted by State law.
    (f) Supplement, Not Supplant.--A grant received under subsection 
(a) shall only be used to supplement the amount of funds that would, in 
the absence of such grant, be made available from non-Federal sources 
for elementary school and secondary school programs or postsecondary 
education programs, and not to supplant those funds.

SEC. 5. ADMINISTRATIVE AND FISCAL ACCOUNTABILITY.

    (a) Audits.--
            (1) Contract with approved auditing entity.--Not later than 
        October 1, 2021, and annually thereafter, a State shall 
        contract with an approved auditing entity (as defined under 
        paragraph (3)(B)) for purposes of conducting an audit under 
        paragraph (2) (with respect to the fiscal year ending September 
        30 of such year).
            (2) Audit requirement.--Under a contract under paragraph 
        (1), an approved auditing entity shall conduct an audit of the 
        expenditures or transfers made by a State from amounts received 
        under a grant under section 4, with respect to the fiscal year 
        which such audit covers, to determine the extent to which such 
        expenditures and transfers were expended in accordance with 
        section 4.
            (3) Entity conducting audit.--
                    (A) In general.--With respect to a State, the audit 
                under paragraph (2) shall be conducted by an approved 
                auditing entity in accordance with generally accepted 
                auditing principles.
                    (B) Approved auditing entity.--For purposes of this 
                section, the term ``approved auditing entity'' means, 
                with respect to a State, an entity that is--
                            (i) approved by the Secretary of the 
                        Treasury;
                            (ii) approved by the chief executive 
                        officer of the State; and
                            (iii) independent of any Federal, State, or 
                        local agency.
            (4) Submission of audit.--Not later than April 30, 2022, 
        and annually thereafter, a State shall submit the results of 
        the audit under paragraph (2) (with respect to the fiscal year 
        ending on September 30 of such year) to the State legislature 
        and to the Secretary of the Treasury.
    (b) Reimbursement and Penalty.--If, through an audit conducted 
under subsection (a), an approved auditing entity finds that a State 
violated the requirements of subsection (d) or (e) of section 4, the 
State shall pay to the Treasury of the United States 100 percent of the 
amount of State funds that were used in violation of section 4 as a 
penalty. Insofar as a State fails to pay any such penalty, the 
Secretary of the Treasury shall offset the amount not so paid against 
the amount of any grant otherwise payable to the State under this Act.
    (c) Annual Reporting Requirements.--
            (1) In general.--Not later than January 31, 2022, and 
        annually thereafter, each State shall submit to the Secretary 
        of the Treasury and the State legislature a report on the 
        activities carried out by the State during the most recently 
        completed fiscal year with funds received by the State under a 
        grant under section 4 for such fiscal year.
            (2) Content.--A report under paragraph (1) shall, with 
        respect to a fiscal year--
                    (A) contain the results of the audit conducted by 
                an approved auditing entity for a State for such fiscal 
                year, in accordance with the requirements of subsection 
                (a) of this section;
                    (B) specify the amount of the grant made to the 
                State under section 4; and
                    (C) be in such form and contain such other 
                information as the State determines is necessary to 
                provide--
                            (i) an accurate description of the 
                        activities conducted by the State for the 
                        purpose described under section 4; and
                            (ii) a complete record of the purposes for 
                        which amounts were expended in accordance with 
                        this section.
            (3) Public availability.--A State shall make copies of the 
        reports required under this section available on a public 
        website and shall make copies available in other formats upon 
        request.
    (d) Failure To Comply With Requirements.--The Secretary of the 
Treasury shall not make any payment to a State under a grant authorized 
by section 4--
            (1) if an audit for a State is not submitted as required 
        under subsection (a) during the period between the date such 
        audit is due and the date on which such audit is submitted;
            (2) if a State fails to submit a report as required under 
        subsection (c) during the period between the date such report 
        is due and the date on which such report is submitted; or
            (3) if a State violates a requirement of section 4 during 
        the period beginning on the date the Secretary becomes aware of 
        such violation and the date on which such violation is 
        corrected by the State.
    (e) Administrative Supervision and Oversight.--
            (1) Limited role for secretary of the treasury.--The 
        authority of the Secretary of the Treasury under this Act is 
        limited to--
                    (A) promulgating regulations, issuing rules, or 
                publishing guidance documents to the extent necessary 
                for purposes of implementing subsection (a)(3)(B), 
                subsection (b), and subsection (d);
                    (B) making payments to the States under grants 
                under section 4;
                    (C) approving entities under subsection (a)(3)(B) 
                for purposes of the audits required under subsection 
                (a);
                    (D) withholding payment to a State of a grant under 
                subsection (d) or offsetting a payment of such a grant 
                to a State under subsection (b); and
                    (E) exercising the authority relating to 
                nondiscrimination that is specified in section 6(b).
            (2) Limited role for attorney general.--The authority of 
        the Attorney General to supervise the amounts received by a 
        State under section 4 is limited to the authority under section 
        6(b).
    (f) Reservation of State Powers.--Nothing in this section shall be 
construed to limit the power of a State, including the power of a State 
to pursue civil and criminal penalties under State law against any 
individual or entity that misuses, or engages in fraud or abuse related 
to, the funds provided to a State under section 4.

SEC. 6. NONDISCRIMINATION PROVISIONS.

    (a) No Discrimination Against Individuals.--No individual shall be 
excluded from participation in, denied the benefits of, or subjected to 
discrimination under, any program or activity funded in whole or in 
part with amounts paid to a State under section 4 on the basis of such 
individual's--
            (1) disability under section 504 of the Rehabilitation Act 
        of 1973 (29 U.S.C. 794);
            (2) sex under title IX of the Education Amendments of 1972 
        (20 U.S.C. 1681 et seq.); or
            (3) race, color, or national origin under title VI of the 
        Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.).
    (b) Compliance.--
            (1) In general.--If the Attorney General determines that a 
        State or an entity that has received funds from amounts paid to 
        a State under a grant under section 4 has failed to comply with 
        a provision of law referred to in subsection (a), the Secretary 
        of the Treasury shall notify the chief executive officer of the 
        State of such failure to comply and shall request that such 
        chief executive officer secure such compliance.
            (2) Enforcement.--If, not later than 60 days after 
        receiving notification under paragraph (1), the chief executive 
        officer of a State fails or refuses to secure compliance with 
        the provision of law referred to in such notification, the 
        Attorney General may--
                    (A) institute an appropriate civil action; or
                    (B) exercise the powers and functions provided 
                under section 505 of the Rehabilitation Act of 1973 (29 
                U.S.C. 794a), title IX of the Education Amendments of 
                1972 (20 U.S.C. 1681 et seq.), or title VI of the Civil 
                Rights Act of 1964 (42 U.S.C. 2000d et seq.) (as 
                applicable).

SEC. 7. TRANSFER OF CERTAIN DEPARTMENT OF EDUCATION PROGRAMS.

    (a) Transfer of Certain Programs.--Not later than 24 months after 
the date of the enactment of this Act--
            (1) each job training program under the jurisdiction of the 
        Department of Education, including the Carl D. Perkins Career 
        and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.), 
        shall be transferred to the Department of Labor;
            (2) each special education grant program under the 
        Individuals with Disabilities Education Act (20 U.S.C. 1460 et 
        seq.) shall be transferred to the Department of Health and 
        Human Services;
            (3) each Indian education program under the jurisdiction of 
        the Department of Education shall be transferred to the 
        Department of the Interior;
            (4) each Impact Aid program under title VIII of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 7701 
        et seq.) shall be transferred to the Department of Defense;
            (5) the Federal Pell Grant program under title IV of the 
        Higher Education Act of 1965 (20 U.S.C. 1070a) shall be 
        transferred to the Department of the Treasury;
            (6) each Federal student loan program under the 
        jurisdiction of the Department of Education shall be 
        transferred to the Department of the Treasury;
            (7) each program under the jurisdiction of the Institute of 
        Education Sciences shall be transferred to the Department of 
        Health and Human Services; and
            (8) each program under the jurisdiction of the D.C. 
        Opportunity Scholarship Program shall be transferred to the 
        Department of Health and Human Services.
    (b) Limitation on Transfer of Certain Programs.--The transfer of 
programs pursuant to subsection (a) is limited to only the transfer of 
administrative responsibility as provided by law or the delegation of 
authority pursuant to law and does not extend to the transfer of 
personnel employed by the Department of Education to carry out such 
programs.

SEC. 8. GAO REPORT.

    Not later than 90 days after the date of the enactment of this Act, 
the Comptroller General of the United States shall submit to the 
Committee on Education and Labor of the House of Representatives and 
the Committee on Health, Education, Labor, and Pensions of the Senate 
report, which shall include--
            (1) a review and evaluation as to the feasibility of 
        enhancing the ability of States and local communities to fund 
        education by reducing the Federal tax burden and commensurately 
        eliminating Federal Government involvement in providing grants 
        for education programs; and
            (2) an evaluation of the feasibility of the successor 
        Federal agencies for maintaining the programs to be transferred 
        under section 7.

SEC. 9. PLAN FOR CLOSURE OF THE DEPARTMENT OF EDUCATION.

    Not later than 365 days after the date of the enactment of this 
Act, the President shall submit to the Congress a plan to implement 
closure of the Department of Education in accordance with this Act.

SEC. 10. DEFINITIONS.

    In this Act:
            (1) Elementary school; secondary school.--The terms 
        ``elementary school'' and ``secondary school'' have the 
        meanings given the terms in section 9101 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 9101).
            (2) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 102 of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 1002).
            (3) State.--The term ``State'' has the meaning given the 
        term in section 103 of the Higher Education Act of 1965 (20 
        U.S.C. 1003).
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