,,ii #aagth ,,congress #b;d ,session ,s4 #dgbf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,august #b1 #bjbb,mr4 ,cruz introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to alleviate pandemic learning loss4 #a4 ,short title ,this ,act may be cited as the ,catch ,up ,our ,kids ,act of #bjbb4 #b4 ,findings ,congress finds the following3 7#a7 ,the ,,covid-#ai pandemic and the resulting school disruptions will have a profound and lasting impact on students across the ,united ,states4 7#b7 ,while most countries of the world closed schools at the beginning of the pandemic as a precaution1 the ,united ,states was an outlier by keeping schools closed to in-person instruction for unnecessarily extended periods of time and favoring remote instruction4 7#c7 ,there is no scientific evidence that showed elementary or secondary schools to be vectors for community spread1 nor that school-aged children were uniquely vulnerable to the ,,covid-#ai virus4 ,to date1 schools have not been proven to be major spreaders of ,,covid-#ai4 7#d7 ,according to a study done by the ,harvard ,university ,center for ,education ,policy ,research1 #cj percent of students in elementary and secondary schools during the #bjbj-bjba school year attended schools that conducted classes remotely for more than #af weeks4 7#e7 ,the ,harvard ,university study showed that high-poverty districts and districts that serve predominately ,black and ,hispanic students were more likely to have remote instruction4 ,the study also showed that remote instruction was a primary driver of widening academic achievement gaps4 7#f7 ,the achievement gaps and learning loss have proven remote instruction to be a failure4 7#g7 ,in mathematics1 studies show that students who attended mostly in-person instruction during the #bjbj-bjba school year lost approximately #bj percent worth of a typical school year's mathematics learning4 ,comparatively1 students who spent most of the school year in remote instruction lost #ej percent of math instruction4 7#h7 ,according to a ,mc,kinsey study1 on average1 students in elementary and secondary schools are #c months behind in reading as a result of the pandemic school disruptions4 7#i7 ,pandemic school closures1 and the consequent learning loss1 have reversed the progress made to narrow the academic achievement gaps for historically disadvantaged groups4 ,low-income1 ,black1 and ,hispanic students fell further behind compared to ,white1 ,asian1 and high-income students4 7#aj7 ,learning loss was shown to be less significant in ,states and school districts that reopened in-person instruction sooner4 ,states with the lowest rates of remote instruction in both high- and low-poverty districts1 such as ,texas and ,florida1 saw smaller rates of learning loss and gaps in achievement compared to ,states with the highest rates of remote instruction4 7#aa7 ,if pandemic learning loss is permanent1 studies show that students who attend high-poverty schools may see a decline of #e percent in average earnings over their lifetimes4 ,overall1 elementary and secondary school learning loss could result in a #b1jjj1jjj1jjj1jjj decline in lifetime earnings4 7#ab7 ,all levels of government1 elected officials1 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 gaps4 #c4 ,use of unobligated ,,esser funds for learning loss scholarships 7a7 ,definitions ,in this section3 7#a7 ,eligible student ,the term eligible student means an elementary school or secondary school student-- 7,a7 whose parent or legal guardian applied for a learning loss scholarship under this section2 and 7,b7 who is a citizen or national of the ,united ,states or an alien 7as defined in section #aja7;a7 of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaja7;a77 who is lawfully present in the ,united ,states4 7#b7 ,scholarship-granting organization ,the term scholarship-granting organization means an organization that-- 7,a7 is described in section #eja7;c77#c7 of the ,internal ,revenue ,code of #aihf and exempt from taxation under section #eja7;a7 of such ,code2 and 7,b7 provides learning loss scholarships to eligible students who-- 7i7 reside in the ,state in which the organization is recognized2 or 7ii7 in the case in which the organization received a subgrant from the ,bureau of ,indian ,education1 are members of a federally recognized ,indian ,tribe4 7#c7 ,secretary ,the term ,secretary means the ,secretary of ,education4 7#d7 ,state ,the term ,state means each of the #ej ,states1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 ,american ,samoa1 ,guam1 the ,commonwealth of the ,northern ,mariana ,islands1 the ,united ,states ,virgin ,islands1 and the ,department of the ,interior 7acting through the ,bureau of ,indian ,education74 7b7 ,transfer of unobligated funds ,the unobligated balance of funds made available to carry out section #ahjjc of division ,b of the ,,cares ,act 7,public ,law #aaf-acf71 section #cac of the ,coronavirus ,response and ,relief ,supplemental ,appropriations ,act1 #bjba 7division ,m of ,public ,law #aaf-bfj71 and section #bjja of the ,american ,rescue ,plan ,act of #bjba 7#bj ,u4,s4,c4 #cdja note7 are hereby transferred and shall be used by the ,secretary to carry out this section4 7c7 ,learning loss scholarships 7#a7 ,authorization ,the ,secretary shall use amounts transferred under subsection 7b7 to award grants to ,states that submit applications under paragraph 7#b74 7#b7 ,applications ,a ,state that desires to receive a grant under this section shall submit an application to the ,secretary at such time1 in such manner1 and accompanied by such information as the ,secretary may require4 7#c7 ,allocations to ,states ,the amount of each grant under paragraph 7#a7 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 #aife 7#bj ,u4,s4,c4 #fcaa et seq47 in the most recent fiscal year4 7#d7 ,subgrants to scholarship-granting organizations 7,a7 ,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 students4 7,b7 ,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 following3 7i7 ,tuition for enrollment at an elementary school or secondary school1 including at a private elementary school or secondary school4 7ii7 ,tutoring services4 7iii7 ,educational classes or curriculum inside or outside of the home4 7iv7 ,books1 instructional materials1 or online educational materials4 7v7 ,educational therapies1 including educational therapies and services for students with disabilities4 7vi7 ,other educational and instructional materials as the student's parent or legal guardian determines is beneficial in-relation to at-home learning1 including online or virtual schooling or home instruction4 #d4 ,learning loss tax credit 7a7 ,in general ,subpart ,a of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #be;,d the following new section3 #be;,e4 ,learning loss tax credit 7a7 ,allowance of credit ,in the case of a taxpayer who is an eligible individual1 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 #a1bjj4 7b7 ,limitation ,subsection 7a7 shall not apply in the case of a taxpayer with adjusted gross income for the taxable year in excess of-- 7#a7 #djj1jjj in the case of a joint return1 and 7#b7 #bjj1jjj in any other case4 7c7 ,eligible individual ,for purposes of this section1 the term eligible individual means a citizen or national of the ,united ,states4 7d7 ,qualifying child ,for purposes of this section-- 7#a7 ,in general ,the term qualifying child means a qualifying child of the taxpayer 7as defined in section #aeb7;c77 for whom the taxpayer is allowed a deduction under section #aea 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 year4 7#b7 ,exception ,the term qualifying child shall not include any individual who is not a citizen or national of the ,united ,states4 7e7 ,identification requirements 7#a7 ,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 return4 7#b7 ,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 year4 7f7 ,taxable year must be full taxable year ,except in the case of a taxable year closed by reason of the death of the taxpayer1 no credit shall be allowable under this section in the case of a taxable year covering a period of less than #ab months4 7g7 ,termination ,this section shall not apply to any taxable year beginning after ,december #ca1 #bjbd4 4 7b7 ,clerical amendment ,the table of sections for subpart ,a of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #be;,d the following new item3 ,sec4 #be;,e4 ,learning loss tax credit4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjba4 #e4 ,exclusion for employee child educational assistance 7a7 ,in general ,part ,,iii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #abg the following new section3 #abh4 ,children's educational assistance programs 7a7 ,exclusion from gross income 7#a7 ,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 7b74 7#b7 #b1jjj maximum exclusion ,if1 but for this paragraph1 this section would exclude from gross income more than #b1jjj of educational assistance furnished to an individual with respect to any one child of the individual during a calendar year1 this section shall apply only to the first #b1jjj of such assistance so furnished with respect to such child4 7b7 ,children's educational assistance program 7#a7 ,in general ,for purposes of this section1 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 assistance4 ,the program must meet the requirements of paragraphs 7#b7 through 7#f7 of this subsection4 7#b7 ,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 7within the meaning of section #dad7q77 or their dependents4 ,for purposes of this paragraph1 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 employers1 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 employers4 7#c7 ,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 income4 ,for purposes of this section1 the business practices of the employer 7as well as the written program7 will be taken into account4 7#d7 ,no funding required ,a program referred to in paragraph 7#a7 is not required to be funded4 7#e7 ,notification of employees ,reasonable notification of the availability and terms of the program must be provided to eligible employees4 7c7 ,definitions2 special rules ,for purposes of this section-- 7#a7 ,educational assistance ,the term educational assistance1 with respect to a qualifying child of an employee1 means the payment1 by an employer1 of expenses incurred by or on behalf of an employee for such child for-- 7,a7 curriculum and curricular materials1 7,b7 academic books or other instructional materials1 7,c7 online educational materials1 7,d7 tuition for tutoring or educational classes outside of the home1 including at a tutoring facility1 but only if the tutor or instructor is not related to the student and-- 7i7 is licensed as a teacher in any ,state1 7ii7 has taught at an eligible educational institution 7as defined in section #ebi7;e77#e771 or 7iii7 is a subject matter expert in the relevant subject1 or 7,e7 fees for a nationally standardized norm-referenced achievement test1 an advanced placement examination1 or any examinations related to college or university admission4 ,the term educational assistance does not include any payment for1 or the provision of any benefits with respect to1 any course or other education involving sports1 games1 or hobbies4 7#b7 ,employee ,the term employee includes1 for any year1 an individual who is an employee within the meaning of section #dja7;c77#a7 7relating to self-employed individuals74 7#c7 ,employer ,an individual who owns the entire interest in an unincorporated trade or business shall be treated as the individual's own employer4 ,a partnership shall be treated as the employer of each partner who is an employee within the meaning of paragraph 7#b74 7#d7 ,qualifying child ,for purposes of this section-- 7,a7 ,in general ,the term qualifying child means a qualifying child of the taxpayer 7as defined in section #aeb7;c77 for whom the taxpayer is allowed a deduction under section #aea 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 year4 7,b7 ,exception for certain noncitizens ,the term qualifying child shall not include any individual who would not be a dependent if subparagraph 7,a7 of section #aeb7;b77#c7 were applied without regard to all that follows resident of the ,united ,states4 7#e7 ,attribution rules 7,a7 ,ownership of stock ,ownership of stock in a corporation shall be determined in accordance with the rules provided under subsections 7d7 and 7e7 of section #aefc 7without regard to section #aefc7;e77#c77;,c774 7,b7 ,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 ,secretary1 which shall be based on principles similar to the principles which apply in the case of subparagraph 7,a74 7#f7 ,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 section4 7d7 ,termination ,this section shall not apply to any taxable year beginning after ,december #ca1 #bjbd4 4 7b7 ,clerical amendment ,the table of sections for part ,,iii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #abg the following new item3 ,sec4 #abh4 ,children's educational assistance programs4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjba4 #f4 ,temporary increase in contribution limit for ,coverdell education savings accounts 7a7 ,in general ,section #ecj of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7g7 ,increased contribution limit ,to combat pandemic-,induced learning loss ,in the case of any taxable year beginning in #bjbb1 #bjbc1 or #bjbd1 subsection 7b77#a77;,a77iii7 shall be applied by substituting #d1jjj for #b1jjj4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years ending after ,december #ca1 #bjba4 #g4 ,special rules for qualified tuition programs 7a7 ,in general ,section #ebi of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7f7 as subsection 7g7 and by inserting after subsection 7e7 the following new subsection3 7f7 ,special temporary rules ,to combat pandemic-,induced learning loss 7#a7 ,in general ,in the case of any taxable year beginning in #bjbb1 #bjbc1 or #bjbd-- 7,a7 subsection 7c77#g7 shall be applied-- 7i7 by substituting qualified expenses for tuition1 and 7ii7 by treating qualified expenses in connection with a homeschool 7whether treated as a homeschool or a private school for purposes of applicable ,state law7 in the same manner as expenses in connection with enrollment or attendance at an elementary or secondary public1 private1 or religious school1 and 7,b7 the last sentence of subsection 7e77#c7 shall not apply4 7#b7 ,qualified expenses ,for purposes of apply paragraph 7#a77;,a71 the term qualified expenses means the following3 7,a7 ,tuition4 7,b7 ,curriculum and curricular materials4 7,c7 ,books or other instructional materials4 7,d7 ,online educational materials4 7,e7 ,tuition for tutoring or educational classes outside of the home1 including at a tutoring facility1 but only if the tutor or instructor is not related to the student and-- 7i7 is licensed as a teacher in any ,state1 7ii7 has taught at an eligible educational institution1 or 7iii7 is a subject matter expert in the relevant subject4 7,f7 ,fees for a nationally standardized norm-referenced achievement test1 an advanced placement examination1 or any examinations related to college or university admission4 7,g7 ,fees for dual enrollment in an institution of higher education4 7,h7 ,educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider1 including occupational1 behavioral1 physical1 and speech-language therapies4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjba4 #h4 ,special temporary gift tax rules for ,coverdell education savings accounts and qualified tuition programs 7a7 ,coverdell education savings accounts ,section #ecj of the ,internal ,revenue ,code of #aihf1 as amended by section #g1 is amended by adding at the end the following new subsection3 7h7 ,special temporary rules ,to combat pandemic-,induced learning loss ,notwithstanding subsection 7d77#c71 in the case of any taxable year beginning in #bjbb1 #bjbc1 or #bjbd1 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 #ab and #ac4 4 7b7 ,qualified tuition programs ,section #ebi of the ,internal ,revenue ,code of #aihf1 as amended by section #h1 is amended by redesignating subsection 7g7 as subsection 7h7 and by inserting after subsection 7f7 the following new subsection3 7g7 ,special temporary rules ,to combat pandemic-,induced learning loss ,notwithstanding paragraphs 7#b7 and 7#e77;,b7 of subsection 7c71 in the case of any taxable year beginning in #bjbb1 #bjbc1 or #bjbd1 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 #ab and #ac4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years ending after ,december #ca1 #bjba4 #i4 ,prohibition of control over nonpublic education providers2 parental rights2 state and local authority 7a7 ,no federal control ,nothing in this ,act1 or an amendment made by this ,act1 shall be construed to permit1 allow1 encourage1 or authorize any ,federal control over any aspect of any private1 religious1 or home education provider1 whether or not a home education provider is treated as a private school or home school under ,state law4 ,this ,act1 and any amendment made by this ,act1 shall not be construed to exclude private1 religious1 or home education providers from participation in programs or services under this ,act1 or an amendment made by this ,act4 7b7 ,no control by entities submitting lists ,nothing in this ,act1 or an amendment made by this ,act1 shall be construed to permit1 allow1 encourage1 or authorize an entity submitting a list of eligible scholarship-granting organizations on behalf of a ,state to mandate1 direct1 or control any aspect of a private or home education provider1 regardless of whether or not a home education provider is treated as a private school under ,state law4 7c7 ,no exclusion or discrimination ,no participating ,state or entity acting on behalf of a ,state shall exclude1 discriminate against1 or otherwise disadvantage any education provider with respect to programs or services under this ,act1 or an amendment made by this ,act1 based in whole or in part on the provider's religious education character or affiliation1 including religiously or mission-based policies or practices4 7d7 ,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 #c7;c77#d77;,b71 including those services provided by private or nonprofit entities1 such as faith-based providers4 7e7 ,state and local authority ,nothing in this ,act1 or an amendment made by this ,act1 shall be construed to modify a ,state or local government's authority and responsibility to fund education4