[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4726 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
2d Session
S. 4726
To alleviate pandemic learning loss.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 2, 2022
Mr. Cruz introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To alleviate pandemic learning loss.
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 ``Catch Up Our Kids Act of 2022''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The COVID-19 pandemic and the resulting school
disruptions will have a profound and lasting impact on students
across the United States.
(2) While most countries of the world closed schools at the
beginning of the pandemic as a precaution, the United States
was an outlier by keeping schools closed to in-person
instruction for unnecessarily extended periods of time and
favoring remote instruction.
(3) There is no scientific evidence that showed elementary
or secondary schools to be vectors for community spread, nor
that school-aged children were uniquely vulnerable to the
COVID-19 virus. To date, schools have not been proven to be
major spreaders of COVID-19.
(4) According to a study done by the Harvard University
Center for Education Policy Research, 30 percent of students in
elementary and secondary schools during the 2020-2021 school
year attended schools that conducted classes remotely for more
than 16 weeks.
(5) The Harvard University study showed that high-poverty
districts and districts that serve predominately Black and
Hispanic students were more likely to have remote instruction.
The study also showed that remote instruction was a primary
driver of widening academic achievement gaps.
(6) The achievement gaps and learning loss have proven
remote instruction to be a failure.
(7) In mathematics, studies show that students who attended
mostly in-person instruction during the 2020-2021 school year
lost approximately 20 percent worth of a typical school year's
mathematics learning. Comparatively, students who spent most of
the school year in remote instruction lost 50 percent of math
instruction.
(8) According to a McKinsey study, on average, students in
elementary and secondary schools are 3 months behind in reading
as a result of the pandemic school disruptions.
(9) Pandemic school closures, and the consequent learning
loss, have reversed the progress made to narrow the academic
achievement gaps for historically disadvantaged groups. Low-
income, Black, and Hispanic students fell further behind
compared to White, Asian, and high-income students.
(10) Learning loss was shown to be less significant in
States and school districts that reopened in-person instruction
sooner. States with the lowest rates of remote instruction in
both high- and low-poverty districts, such as Texas and
Florida, saw smaller rates of learning loss and gaps in
achievement compared to States with the highest rates of remote
instruction.
(11) If pandemic learning loss is permanent, studies show
that students who attend high-poverty schools may see a decline
of 5 percent in average earnings over their lifetimes. Overall,
elementary and secondary school learning loss could result in a
$2,000,000,000,000 decline in lifetime earnings.
(12) All levels of government, elected officials, and those
working in education must make it a priority to pursue parent-
driven and directed policies to help students catch up from
pandemic-related learning loss and close achievement gaps.
SEC. 3. USE OF UNOBLIGATED ESSER FUNDS FOR LEARNING LOSS SCHOLARSHIPS.
(a) Definitions.--In this section:
(1) Eligible student.--The term ``eligible student'' means
an elementary school or secondary school student--
(A) whose parent or legal guardian applied for a
learning loss scholarship under this section; and
(B) who is a citizen or national of the United
States or an alien (as defined in section 101(a) of the
Immigration and Nationality Act (8 U.S.C. 1101(a)) who
is lawfully present in the United States.
(2) Scholarship-granting organization.--The term
``scholarship-granting organization'' means an organization
that--
(A) is described in section 501(c)(3) of the
Internal Revenue Code of 1986 and exempt from taxation
under section 501(a) of such Code; and
(B) provides learning loss scholarships to eligible
students who--
(i) reside in the State in which the
organization is recognized; or
(ii) in the case in which the organization
received a subgrant from the Bureau of Indian
Education, are members of a federally
recognized Indian Tribe.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Education.
(4) State.--The term ``State'' means each of the 50 States,
the District of Columbia, the Commonwealth of Puerto Rico,
American Samoa, Guam, the Commonwealth of the Northern Mariana
Islands, the United States Virgin Islands, and the Department
of the Interior (acting through the Bureau of Indian
Education).
(b) Transfer of Unobligated Funds.--The unobligated balance of
funds made available to carry out section 18003 of division B of the
CARES Act (Public Law 116-136), section 313 of the Coronavirus Response
and Relief Supplemental Appropriations Act, 2021 (division M of Public
Law 116-260), and section 2001 of the American Rescue Plan Act of 2021
(20 U.S.C. 3401 note) are hereby transferred and shall be used by the
Secretary to carry out this section.
(c) Learning Loss Scholarships.--
(1) Authorization.--The Secretary shall use amounts
transferred under subsection (b) to award grants to States that
submit applications under paragraph (2).
(2) Applications.--A State that desires to receive a grant
under this section shall submit an application to the Secretary
at such time, in such manner, and accompanied by such
information as the Secretary may require.
(3) Allocations to states.--The amount of each grant under
paragraph (1) shall be allocated by the Secretary to each State
in the same proportion as each State received under part A of
title I of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6311 et seq.) in the most recent fiscal year.
(4) Subgrants to scholarship-granting organizations.--
(A) In general.--A State that receives a grant
under this section shall award subgrants to
scholarship-granting organizations to enable the
scholarship-granting organization to award learning
loss scholarships to the parents or legal guardians of
eligible students.
(B) Use of funds.--A parent or legal guardian of an
eligible student who receives a learning loss
scholarship may use the scholarship on behalf of the
eligible student for any of the following:
(i) Tuition for enrollment at an elementary
school or secondary school, including at a
private elementary school or secondary school.
(ii) Tutoring services.
(iii) Educational classes or curriculum
inside or outside of the home.
(iv) Books, instructional materials, or
online educational materials.
(v) Educational therapies, including
educational therapies and services for students
with disabilities.
(vi) Other educational and instructional
materials as the student's parent or legal
guardian determines is beneficial in-relation
to at-home learning, including online or
virtual schooling or home instruction.
SEC. 4. LEARNING LOSS TAX CREDIT.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 25D the following new section:
``SEC. 25E. LEARNING LOSS TAX CREDIT.
``(a) Allowance of Credit.--In the case of a taxpayer who is an
eligible individual, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year with respect to each
qualifying child of the taxpayer an amount equal to $1,200.
``(b) Limitation.--Subsection (a) shall not apply in the case of a
taxpayer with adjusted gross income for the taxable year in excess of--
``(1) $400,000 in the case of a joint return, and
``(2) $200,000 in any other case.
``(c) Eligible Individual.--For purposes of this section, the term
`eligible individual' means a citizen or national of the United States.
``(d) Qualifying Child.--For purposes of this section--
``(1) In general.--The term `qualifying child' means a
qualifying child of the taxpayer (as defined in section 152(c))
for whom the taxpayer is allowed a deduction under section 151
for the taxable year and who is eligible to attend elementary
or secondary school within the State in which the taxpayer
resides for all or a portion of the taxable year.
``(2) Exception.--The term `qualifying child' shall not
include any individual who is not a citizen or national of the
United States.
``(e) Identification Requirements.--
``(1) Qualifying child identification requirement.--No
credit shall be allowed under this section to a taxpayer with
respect to any qualifying child unless the taxpayer includes
the name and taxpayer identification number of such qualifying
child on the return of tax for the taxable year and such
taxpayer identification number was issued on or before the due
date for filing such return.
``(2) Taxpayer identification requirement.--No credit shall
be allowed under this section if the taxpayer identification
number of the taxpayer was issued after the due date for filing
the return for the taxable year.
``(f) Taxable Year Must Be Full Taxable Year.--Except in the case
of a taxable year closed by reason of the death of the taxpayer, no
credit shall be allowable under this section in the case of a taxable
year covering a period of less than 12 months.
``(g) Termination.--This section shall not apply to any taxable
year beginning after December 31, 2024.''.
(b) Clerical Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section 25D the
following new item:
``Sec. 25E. Learning loss tax credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 5. EXCLUSION FOR EMPLOYEE CHILD EDUCATIONAL ASSISTANCE.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section 127
the following new section:
``SEC. 128. CHILDREN'S EDUCATIONAL ASSISTANCE PROGRAMS.
``(a) Exclusion From Gross Income.--
``(1) In general.--Gross income of an employee does not
include amounts paid or expenses incurred by the employer for
educational assistance to the employee's qualifying child if
the assistance is furnished pursuant to a program which is
described in subsection (b).
``(2) $2,000 maximum exclusion.--If, but for this
paragraph, this section would exclude from gross income more
than $2,000 of educational assistance furnished to an
individual with respect to any one child of the individual
during a calendar year, this section shall apply only to the
first $2,000 of such assistance so furnished with respect to
such child.
``(b) Children's Educational Assistance Program.--
``(1) In general.--For purposes of this section, a
children's educational assistance program is a separate written
plan of an employer for the exclusive benefit of the employees
of the employer to provide such employees' children with
educational assistance. The program must meet the requirements
of paragraphs (2) through (6) of this subsection.
``(2) Eligibility.--The program shall benefit employees who
qualify under a classification set up by the employer and found
by the Secretary not to be discriminatory in favor of employees
who are highly compensated employees (within the meaning of
section 414(q)) or their dependents. For purposes of this
paragraph, there shall be excluded from consideration employees
not included in the program who are included in a unit of
employees covered by an agreement which the Secretary of Labor
finds to be a collective bargaining agreement between employee
representatives and one or more employers, if there is evidence
that children's educational assistance benefits were the
subject of good faith bargaining between such employee
representatives and such employer or employers.
``(3) Other benefits as an alternative.--A program must not
provide eligible employees with a choice between children's
educational assistance and other remuneration includible in
gross income. For purposes of this section, the business
practices of the employer (as well as the written program) will
be taken into account.
``(4) No funding required.--A program referred to in
paragraph (1) is not required to be funded.
``(5) Notification of employees.--Reasonable notification
of the availability and terms of the program must be provided
to eligible employees.
``(c) Definitions; Special Rules.--For purposes of this section--
``(1) Educational assistance.--The term `educational
assistance', with respect to a qualifying child of an employee,
means the payment, by an employer, of expenses incurred by or
on behalf of an employee for such child for--
``(A) curriculum and curricular materials,
``(B) academic books or other instructional
materials,
``(C) online educational materials,
``(D) tuition for tutoring or educational classes
outside of the home, including at a tutoring facility,
but only if the tutor or instructor is not related to
the student and--
``(i) is licensed as a teacher in any
State,
``(ii) has taught at an eligible
educational institution (as defined in section
529(e)(5)), or
``(iii) is a subject matter expert in the
relevant subject, or
``(E) fees for a nationally standardized norm-
referenced achievement test, an advanced placement
examination, or any examinations related to college or
university admission.
The term `educational assistance' does not include any payment
for, or the provision of any benefits with respect to, any
course or other education involving sports, games, or hobbies.
``(2) Employee.--The term `employee' includes, for any
year, an individual who is an employee within the meaning of
section 401(c)(1) (relating to self-employed individuals).
``(3) Employer.--An individual who owns the entire interest
in an unincorporated trade or business shall be treated as the
individual's own employer. A partnership shall be treated as
the employer of each partner who is an employee within the
meaning of paragraph (2).
``(4) Qualifying child.--For purposes of this section--
``(A) In general.--The term `qualifying child'
means a qualifying child of the taxpayer (as defined in
section 152(c)) for whom the taxpayer is allowed a
deduction under section 151 for the taxable year and
who is eligible to attend elementary or secondary
school within the State in which the taxpayer resides
for all or a portion of the taxable year.
``(B) Exception for certain noncitizens.--The term
`qualifying child' shall not include any individual who
would not be a dependent if subparagraph (A) of section
152(b)(3) were applied without regard to all that
follows `resident of the United States'.
``(5) Attribution rules.--
``(A) Ownership of stock.--Ownership of stock in a
corporation shall be determined in accordance with the
rules provided under subsections (d) and (e) of section
1563 (without regard to section 1563(e)(3)(C)).
``(B) Interest in unincorporated trade or
business.--The interest of an employee in a trade or
business which is not incorporated shall be determined
in accordance with regulations prescribed by the
Secretary, which shall be based on principles similar
to the principles which apply in the case of
subparagraph (A).
``(6) Denial of double benefit.--No deduction or credit
shall be allowed to the employee under any other section of
this chapter for any amount excluded from income by reason of
this section.
``(d) Termination.--This section shall not apply to any taxable
year beginning after December 31, 2024.''.
(b) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is
amended by inserting after the item relating to section 127 the
following new item:
``Sec. 128. Children's educational assistance programs.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 6. TEMPORARY INCREASE IN CONTRIBUTION LIMIT FOR COVERDELL
EDUCATION SAVINGS ACCOUNTS.
(a) In General.--Section 530 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(g) Increased Contribution Limit To Combat Pandemic-Induced
Learning Loss.--In the case of any taxable year beginning in 2022,
2023, or 2024, subsection (b)(1)(A)(iii) shall be applied by
substituting `$4,000' for `$2,000'.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years ending after December 31, 2021.
SEC. 7. SPECIAL RULES FOR QUALIFIED TUITION PROGRAMS.
(a) In General.--Section 529 of the Internal Revenue Code of 1986
is amended by redesignating subsection (f) as subsection (g) and by
inserting after subsection (e) the following new subsection:
``(f) Special Temporary Rules To Combat Pandemic-Induced Learning
Loss.--
``(1) In general.--In the case of any taxable year
beginning in 2022, 2023, or 2024--
``(A) subsection (c)(7) shall be applied--
``(i) by substituting `qualified expenses'
for `tuition', and
``(ii) by treating qualified expenses in
connection with a homeschool (whether treated
as a homeschool or a private school for
purposes of applicable State law) in the same
manner as expenses in connection with
enrollment or attendance at an elementary or
secondary public, private, or religious school,
and
``(B) the last sentence of subsection (e)(3) shall
not apply.
``(2) Qualified expenses.--For purposes of apply paragraph
(1)(A), the term `qualified expenses' means the following:
``(A) Tuition.
``(B) Curriculum and curricular materials.
``(C) Books or other instructional materials.
``(D) Online educational materials.
``(E) Tuition for tutoring or educational classes
outside of the home, including at a tutoring facility,
but only if the tutor or instructor is not related to
the student and--
``(i) is licensed as a teacher in any
State,
``(ii) has taught at an eligible
educational institution, or
``(iii) is a subject matter expert in the
relevant subject.
``(F) Fees for a nationally standardized norm-
referenced achievement test, an advanced placement
examination, or any examinations related to college or
university admission.
``(G) Fees for dual enrollment in an institution of
higher education.
``(H) Educational therapies for students with
disabilities provided by a licensed or accredited
practitioner or provider, including occupational,
behavioral, physical, and speech-language therapies.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 8. SPECIAL TEMPORARY GIFT TAX RULES FOR COVERDELL EDUCATION
SAVINGS ACCOUNTS AND QUALIFIED TUITION PROGRAMS.
(a) Coverdell Education Savings Accounts.--Section 530 of the
Internal Revenue Code of 1986, as amended by section 7, is amended by
adding at the end the following new subsection:
``(h) Special Temporary Rules To Combat Pandemic-Induced Learning
Loss.--Notwithstanding subsection (d)(3), in the case of any taxable
year beginning in 2022, 2023, or 2024, any contribution to a Coverdell
education savings account during such taxable year on behalf of any
designated beneficiary shall not be treated as a gift for purposes of
chapters 12 and 13.''.
(b) Qualified Tuition Programs.--Section 529 of the Internal
Revenue Code of 1986, as amended by section 8, is amended by
redesignating subsection (g) as subsection (h) and by inserting after
subsection (f) the following new subsection:
``(g) Special Temporary Rules To Combat Pandemic-Induced Learning
Loss.--Notwithstanding paragraphs (2) and (5)(B) of subsection (c), in
the case of any taxable year beginning in 2022, 2023, or 2024, any
contribution to a qualified tuition program during such taxable year on
behalf of any designated beneficiary shall not be treated as a gift for
purposes of chapters 12 and 13.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after December 31, 2021.
SEC. 9. PROHIBITION OF CONTROL OVER NONPUBLIC EDUCATION PROVIDERS;
PARENTAL RIGHTS; STATE AND LOCAL AUTHORITY.
(a) No Federal Control.--Nothing in this Act, or an amendment made
by this Act, shall be construed to permit, allow, encourage, or
authorize any Federal control over any aspect of any private,
religious, or home education provider, whether or not a home education
provider is treated as a private school or home school under State law.
This Act, and any amendment made by this Act, shall not be construed to
exclude private, religious, or home education providers from
participation in programs or services under this Act, or an amendment
made by this Act.
(b) No Control by Entities Submitting Lists.--Nothing in this Act,
or an amendment made by this Act, shall be construed to permit, allow,
encourage, or authorize an entity submitting a list of eligible
scholarship-granting organizations on behalf of a State to mandate,
direct, or control any aspect of a private or home education provider,
regardless of whether or not a home education provider is treated as a
private school under State law.
(c) No Exclusion or Discrimination.--No participating State or
entity acting on behalf of a State shall exclude, discriminate against,
or otherwise disadvantage any education provider with respect to
programs or services under this Act, or an amendment made by this Act,
based in whole or in part on the provider's religious education
character or affiliation, including religiously or mission-based
policies or practices.
(d) Parental Rights To Use Scholarships.--No participating State or
entity acting on behalf of a State shall disfavor or discourage the use
of learning loss scholarships for the uses described in section
3(c)(4)(B), including those services provided by private or nonprofit
entities, such as faith-based providers.
(e) State and Local Authority.--Nothing in this Act, or an
amendment made by this Act, shall be construed to modify a State or
local government's authority and responsibility to fund education.
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