Directs the Secretary of the Treasury to implement a program providing federal funds for elementary and secondary education directly to parents or approved by parents for distribution to schools.
Terminates all covered federal education programs by a date determined by the Secretary of Education, no later than June 30, 2025.
Prohibits the appropriation of federal funds for covered education programs after the enactment of the legislation.
Establishes the School Freedom Account program for eligible children starting from the school year after July 1, 2025.
Each eligible child will have a School Freedom Account funded with an amount equal to the per-pupil federal expenditure.
Parents can use funds from the School Freedom Account for various educational expenses, including private school tuition, tutoring, and educational materials, or approve disbursement to local educational agencies for public school expenses.
Unobligated funds from terminated programs will be reallocated to the School Freedom Account program.
Funds in the School Freedom Account can roll over to subsequent school years until the child completes secondary school or is no longer eligible.
Remaining funds in the account can be converted to a Higher Education and Skills Obtainment Fund for postsecondary educational expenses.
Funds in these accounts are excluded from taxable income for parents or students.
The Secretary of the Treasury is prohibited from imposing limitations on the use of School Freedom Accounts or Higher Education and Skills Obtainment Funds.
Requires annual reporting by the Comptroller General on the implementation and use of the School Freedom Account program and its impact on federal education funding.
Defines key terms related to the legislation, including “eligible child,” “covered federal education program,” and “institution of higher education.”
