HR9926-118

1. Short title This Act may be cited as the School Freedom Act of 2024.

2. Termination of Federal elementary and secondary education programs Each covered Federal education program shall terminate on a date determined by the Secretary of Education that is not later than June 30, 2025. The Secretary of Education shall take such steps as may be necessary to provide for the orderly cessation of activities under each covered Federal education program by not later than the termination date specified in subsection (a). Beginning on the date of the enactment of this Act, no Federal funds may be appropriated for a covered Federal education program. Any amounts appropriated for a covered Federal education program that are unobligated as of the date such program terminates under subsection (a) shall be used to carry out the School Freedom Account program under section 3.

3. School Freedom Account program Notwithstanding any other provision of law, for each school year beginning on or after July 1, 2025, the Secretary of the Treasury shall carry out a program under which the Secretary shall— establish an account on behalf of each eligible child (to be known as a School Freedom Account) into which the Secretary shall deposit funds in an amount determined under subsection (b); and establish a procedure under which the parent of the child shall— in the case of a parent who elects not to have their child attend a public elementary or secondary school for a school year, use funds in the account to pay for the educational expenses of the child in accordance with subsection (c)(1); or in the case of a parent who elects to have their child attend a public elementary or secondary school for a school year, approve the disbursement of such funds to the local educational agency serving the school of the parent’s choice and attended by the child for use in accordance with subsection (c)(2). The amount of funds deposited into each School Freedom Account for a school year shall be equal to the per-pupil Federal expenditure applicable to an eligible child for the school year, as determined under paragraph (2). The per-pupil Federal expenditure applicable to an eligible child for the first school year that begins on or after July 1, 2025 shall be equal to— the sum of the total amount appropriated to carry out this section for fiscal year 2025 and any amounts made available under section 2(d); divided by the total number of eligible children counted for such school year. The per-pupil Federal expenditure applicable to an eligible child for any school year after the year described in subparagraph (A) shall be equal to— the total amount of Federal funds appropriated to carry out this section for the fiscal year that corresponds to such school year; divided by the total number of eligible children counted for such school year. Funds deposited into a School Freedom Account on behalf of child who does not attend a public elementary or secondary school for a school year may be used to pay for— curriculum and curricular materials; books or other instructional materials; technological educational materials; online educational materials; tutoring or educational classes outside the home, including micro school or learning pod; private school tuition; public charter schools; extracurricular activities; testing fees; diagnostic tools; or educational therapies for students with disabilities. Funds disbursed from a School Freedom Account to a local educational agency for a school year may be used by the agency for any educational purpose authorized under the laws of the State in which such agency is located. Amounts remaining in the School Freedom Account of an eligible child at the end of a school year shall remain available for expenditure in accordance with subsection (c) in subsequent school years until the earlier of— the date on which the child completes secondary school; or the date on which the child is no longer eligible to attend a public elementary or secondary school. If amounts remain in a School Freedom Account as of the date described in paragraph (1), such account shall be redesignated as a Higher Education and Skills Obtainment Fund. No further deposits shall be made in the fund by the Secretary of the Treasury, but any amounts remaining in the fund may be used by the individual on whose behalf the fund was established to pay for postsecondary educational expenses, including— costs of attendance at an institution of higher education; costs associated with career and technical education; and such other postsecondary educational expenses as may be approved by the Secretary for purposes of this paragraph. The Higher Education and Skills Obtainment Fund of a student shall terminate on the date on which the student attains the age of 30 years. Any funds remaining in a Higher Education and Skills Obtainment Fund on the date such fund terminates under paragraph (1) shall be returned to the Treasury of the United States. The Secretary of the Treasury may not require that— individuals obtain preapproval prior to the expenditure of amounts from a School Freedom Account or Higher Education and Skills Obtainment Fund; or the expenditure of amounts from a School Freedom Account or Higher Education and Skills Obtainment Fund be through a specific marketplace or portal. Amounts in a School Freedom Account or Higher Education and Skills Obtainment Fund under this section shall not be included in the gross income of a parent or student for purposes of the Internal Revenue Code of 1986.

4. Tracking of Federal education funds Before the end of each school year, the Secretary of the Treasury shall determine— the aggregate amount of deposits made to School Freedom Accounts under section 3 for such school year, stated separately for each local educational agency (based on the residence of the eligible child) and identifying the State in which the local educational agency is located; and of the amount determined under paragraph (1) with respect to each local educational agency— the amount of funds distributed directly to parents in accordance with subparagraph (A) of section 3(a)(2); and the amount of funds approved by parents for disbursement to the agency in accordance with subparagraph (B) of such section.

5. Rules of construction Nothing in this Act shall be construed to— affect any aspect of private, religious, or home education providers; exclude private, religious, or home education providers from receiving funds from a School Freedom Account; or require an educational service provider to alter any creed, practice, admissions policy, or curriculum in order to receive funds from a School Freedom Account.

6. Prohibition on new regulation The Secretary of the Treasury may not issue any rule, promulgate any regulation, or take any other action which imposes any limitation or requirement on the use of a School Freedom Account or Higher Education and Skills Obtainment Fund by a parent or eligible child.

7. GAO reporting on School Freedom Account and Higher Education and Skills Obtainment Fund Not later than one year after the date of enactment of this Act, and annually thereafter, the Comptroller General of the United States shall submit a report to the Congress that— reviews the wind-down and termination of covered Federal education programs by the Secretary of Education; reviews the reallocation of existing appropriations and the allocation of unobligated amounts appropriated for covered Federal education programs to carry out section 3 of this Act; reviews the procedures established by the Secretary of the Treasury to allow parents to use funds to pay for educational expenses in accordance with section 3(c)(1); identifies the aggregate amount of deposits made to School Freedom Accounts under section 3 for the school year, stated separately for each local educational agency (based on the residence of the eligible child) and identifying the State in which the local educational agency is located; identifies additional uses of funds in a School Freedom Account or Higher Education and Skills Obtainment Fund that could benefit an eligible child; identifies the aggregate number of students who expend funds from a School Freedom Account to— attend a private school; attend a public charter school; homeschool; and attend educational classes outside the home, including a micro school or learning pod; identifies the aggregate amount expended from School Freedom Accounts, other than for eligible uses in section 3(c)(1); identifies the aggregate amount in School Freedom Accounts that rollover to the next school year; identifies the aggregate number of School Freedom Accounts that convert to Higher Education and Skills Obtainment Funds, and the aggregate amount in accounts that are converted; identifies the aggregate number of students that expend amounts from a Higher Education and Skills Obtainment Fund to pay costs associated with attendance of an institution of higher education or with career and technical education; reviews the Secretary of the Treasury’s efforts to track Federal funds deposited into School Freedom Accounts; identifies the aggregate amount returned to the Treasury in the fiscal year following the termination of Higher Education and Skills Obtainment Funds; and includes any other matter the Comptroller General of the United States determines important to assessing and improving the implementation or administration of the School Freedom Account or Higher Education and Skills Obtainment Fund.

8. Definitions In this Act: The term career and technical education has the meaning given that term in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302). The terms child, elementary school, local educational agency, parent, secondary school, and State have the meanings given those terms in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801). The term cost of attendance has the meaning given that term in section 472 of the Higher Education Act of 1965 (20 U.S.C. 1087ll). The term covered Federal education program means an applicable program (as defined in section 400 of the General Education Provisions Act (20 U.S.C. 1221)) the primary purpose of which is to support elementary or secondary education, except such term does not include the School Freedom Account program authorized under this Act. The term eligible child means a child— who is eligible to enroll in a public elementary or secondary school for a school year; who has been issued a social security number by the Social Security Administration; and whose parent or guardian has been issued a social security number by the Social Security Administration. The term institution of higher education has the meaning given that term in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002).