119-hr3519

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3519 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 3519

 To amend the Internal Revenue Code of 1986 to allow a credit against 
 tax for charitable donations to nonprofit organizations providing 
 education scholarships to qualified elementary and secondary students.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 May 20, 2025

Mr. Owens (for himself and Mr. Donalds) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addition 
 to the Committee on Education and Workforce, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
 of such provisions as fall within the jurisdiction of the committee 
 concerned

_______________________________________________________________________

 A BILL

 To amend the Internal Revenue Code of 1986 to allow a credit against 
 tax for charitable donations to nonprofit organizations providing 
 education scholarships to qualified elementary and secondary students.

 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 ``Universal School Choice Act''.

SEC. 2. TAX CREDIT FOR CONTRIBUTIONS TO SCHOLARSHIP GRANTING 
 ORGANIZATIONS.

    (a) Credit for Individuals.--

    (1) 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 25E the following new section:

``

SEC. 25F. QUALIFIED ELEMENTARY AND SECONDARY EDUCATION SCHOLARSHIPS.

 ``

    (a) Allowance of Credit.--In the case of an individual who is a 
citizen or resident of the United States (as defined in 

section 7701

    (a)

    (9) ), there shall be allowed as a credit against the tax imposed 
by this chapter for the taxable year an amount equal to the aggregate 
amount of qualified contributions made by the taxpayer during the 
taxable year.
 ``

    (b) Limitations.--
 ``

    (1) In general.--The credit allowed under subsection

    (a) to any taxpayer for any taxable year shall not exceed an amount 
 equal to the greater of--
 ``
        (A) 10 percent of the adjusted gross income of 
 the taxpayer for the taxable year, or
 ``
        (B) $5,000.
 ``

    (2) Application of volume cap.--No credit shall be 
 allowed under subsection

    (a) to the taxpayer with respect to 
 the amount of any qualified contribution made during a taxable 
 year which would result in the aggregate amount of credits 
 claimed under this section for such taxable year exceeding--
 ``
        (A) with respect to qualified contributions for 
 which the taxpayer is required to designate a 
 distribution State pursuant to paragraph

    (4) of 

section 3

    (a) of the Universal School Choice Act, the volume cap 
 allocated to such State pursuant to paragraph

    (2) of 
 such section, or
 ``
        (B) with respect to qualified contributions which 
 are not described in subparagraph
        (A) , the volume cap 
 made available to taxpayers pursuant to paragraph

    (3)
        (B) of such section.
 ``

    (3) Reduction based on state credit.--The amount allowed 
 as a credit under subsection

    (a) for a taxable year shall be 
 reduced by the amount allowed as a credit on any State tax 
 return of the taxpayer for qualified contributions made by the 
 taxpayer during the taxable year.
 ``
            (c) === Definitions. ===
-For purposes of this section--
 ``

    (1) Eligible student.--The term `eligible student' means 
 an individual who is eligible to enroll in a public elementary 
 or secondary school.
 ``

    (2) Qualified contribution.--The term `qualified 
 contribution' means a charitable contribution (as defined by 
 

section 170
            (c) ) to a scholarship granting organization in the 
 form of cash or marketable securities.
 ``

    (3) Qualified elementary or secondary education 
 expense.--
 ``
        (A) In general.--The term `qualified elementary 
 or secondary education expense' means the following 
 expenses in connection with enrollment or attendance 
 at, or for students enrolled at or attending, a public 
 or private elementary or secondary school (including a 
 religious elementary or secondary school):
 ``
            (i) Tuition and required fees.
 ``
            (ii) Curricula and curricular materials.
 ``
            (iii) Books or other instructional 
 materials.
 ``
            (iv) Online educational materials, as 
 well as software, courses, and computer 
 hardware or other technological devices 
 required to access such materials and which is 
 primarily used for educational purposes.
 ``
            (v) Tuition for tutoring or educational 
 classes outside of the home or online, 
 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--
 ``

    (aa) a public or private 
 elementary or secondary school, 
 or
 ``

    (bb) an institution of 
 higher education (as defined in 
 

section 101

    (a) of the Higher 
 Education Act of 1965 (20 
 U.S.C. 1001

    (a) )), or
 ``
            (III) is a subject matter expert 
 in the relevant subject.
 ``
            (vi) Fees for a nationally standardized 
 norm-referenced achievement test, an advanced 
 placement examination, or any examinations 
 related to admission to an institution of 
 higher education.
 ``
            (vii) Fees for dual enrollment in an 
 institution of higher education.
 ``
            (viii) Educational therapies for students 
 with disabilities provided by a licensed or 
 accredited practitioner or provider, including 
 occupational, behavioral, physical, and speech-
 language therapies.
 ``
            (ix) Transportation costs incurred for 
 students to participate in any activity for 
 which expenses are authorized under this 
 paragraph.
 ``
        (B) Home schooling.--The term `qualified 
 elementary or secondary education expense' shall 
 include expenses for the purposes described in clauses
            (i) through
            (ix) of subparagraph
        (A) in connection with 
 a home school (whether treated as a home school or a 
 private school for purposes of applicable State law).
 ``
            (C) Prohibition on payments to family members.--
 The term `qualified elementary or secondary education 
 expense' shall not include any expenses related to 
 services provided to the student which are provided by 
 an individual who bears a relationship to the student 
 described in 

section 152
            (d) (2) .
 ``

    (4) Scholarship granting organization.--
 ``
        (A) In general.--The term `scholarship granting 
 organization' means any organization--
 ``
            (i) which--
 ``
            (I) is described in 

section 501
            (c) (3) and exempt from tax under 
 

section 501

    (a) , and
 ``
            (II) is not a private foundation,
 ``
            (ii) substantially all of the activities 
 of which are providing scholarships for 
 qualified elementary or secondary education 
 expenses of eligible students,
 ``
            (iii) which prevents the co-mingling of 
 qualified contributions with other amounts by 
 maintaining 1 or more separate accounts 
 exclusively for qualified contributions, and
 ``
            (iv) which meets the requirements of 
 subsection
            (d) .
 ``
        (B) Scholarships for non-eligible students.--For 
 purposes of determining whether an organization 
 satisfies the requirement described in subparagraph
        (A)
            (ii) , such organization may include activities of 
 which are providing scholarships for education expenses 
 of children who are not described in paragraph

    (1) .
 ``

    (5) 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).
 ``
            (d) Requirements for Scholarship Granting Organizations.--
 ``

    (1) In general.--An organization meets the requirements 
 of this subsection if--
 ``
        (A) such organization provides scholarships to 2 
 or more students, provided that not all such students 
 attend the same school,
 ``
        (B) with respect to any amount contributed to 
 such organization for which a credit is allowed under 
 this section, such organization does not provide 
 scholarships for any expenses other than qualified 
 elementary or secondary education expenses,
 ``
            (C) with respect to any amount contributed to 
 such organization for which a credit is allowed under 
 this section, such organization provides a scholarship 
 to eligible students with a priority for--
 ``
            (i) students awarded a scholarship the 
 previous school year,
 ``
            (ii) after application of clause
            (i) , any 
 such students who have a sibling who was 
 awarded a scholarship from such organization, 
 and
 ``
            (iii) after application of clauses
            (i) and
            (ii) , any such students from households 
 with annual incomes below 500 percent of the 
 poverty line in the State,
 ``
            (D) such organization does not earmark or set 
 aside contributions for scholarships on behalf of any 
 particular student at the direction of any individual 
 or corporation that has made a qualified contribution 
 to such organization,
 ``
        (E) such organization--
 ``
            (i) obtains from an independent certified 
 public accountant annual financial and 
 compliance audits, and
 ``
            (ii) certifies to the Secretary (at such 
 time, and in such form and manner, as the 
 Secretary may prescribe) that the audit 
 described in clause
            (i) has been completed, and
 ``
        (F) no officer or board member of such 
 organization has been convicted of a felony.
 ``

    (2) Income verification.--
 ``
        (A) In general.--For purposes of paragraph

    (1)
            (C) 
            (iii) , in the case where providing such priority 
 may be applicable with respect to a student, the 
 organization shall take appropriate steps to verify the 
 annual household income to the student.
 ``
        (B) Safe harbor.--For purposes of subparagraph
        (A) , review of all of the following (as applicable) 
 shall be treated as satisfying the requirement to take 
 appropriate steps to verify annual household income:
 ``
            (i) Federal and State income tax returns 
 or tax return transcripts with applicable 
 schedules for the taxable year prior to 
 application.
 ``
            (ii) Income reporting statements for tax 
 purposes or wage and income transcripts from 
 the Internal Revenue Service.
 ``
            (iii) Notarized income verification 
 letter from employers.
 ``
            (iv) Unemployment or workers compensation 
 statements.
 ``
            (v) Budget letters regarding public 
 assistance payments and Supplemental Nutrition 
 Assistance Program

    (SNAP) payments including a 
 list of household members.
 ``

    (3) Independent certified public accountant.--For 
 purposes of paragraph

    (1)
        (E) , the term `independent certified 
 public accountant' means, with respect to an organization, a 
 certified public accountant who is not a person described in 
 

section 465

    (b)

    (3)
        (A) with respect to such organization or any 
 employee of such organization.
 ``

    (4) Prohibition on self-dealing.--
 ``
        (A) In general.--A scholarship granting 
 organization may not award a scholarship to any 
 disqualified person.
 ``
        (B) Disqualified person.--For purposes of this 
 paragraph, a disqualified person shall be determined 
 pursuant to rules similar to the rules of 

section 4946.
 ``

    (e) Denial of Double Benefit.--Any qualified contribution for 
which a credit is allowed under this section shall not be taken into 
account as a charitable contribution for purposes of 

section 170.
 ``

    (f) Carryforward of Unused Credit.--
 ``

    (1) In general.--If the credit allowable under subsection

    (a) for any taxable year exceeds the limitation imposed by 
 

section 26

    (a) for such taxable year reduced by the sum of the 
 credits allowable under this subpart (other than this section, 
 

section 23, and 

section 25D), such excess shall be carried to 
 the succeeding taxable year and added to the credit allowable 
 under subsection

    (a) for such taxable year.
 ``

    (2) Limitation.--No credit may be carried forward under 
 this subsection to any taxable year following the fifth taxable 
 year after the taxable year in which the credit arose. For 
 purposes of the preceding sentence, credits shall be treated as 
 used on a first-in first-out basis.
 ``

    (g) Alternative Minimum Tax.--For purposes of calculating the 
alternative minimum tax under 

section 55, a taxpayer may use any credit 
received for a qualified contribution under this section.''.

    (2) Conforming amendments.--
        (A) Section 25

    (e)

    (1)
            (C) of such Code is amended by 
 striking ``and 25D'' and inserting ``25D, and 25F''.
        (B) The table of sections for subpart A of part IV 
 of subchapter A of chapter 1 of such Code is amended by 
 inserting after the item relating to 

section 25E the 
 following new item:

``

Sec. 25F. Qualified elementary and secondary education 
 scholarships.''.

    (b) Credit for Corporations.--

    (1) In general.--Subpart D of part IV of subchapter A of 
 chapter 1 of the Internal Revenue Code of 1986 is amended by 
 adding after 

section 45AA the following:

``

SEC. 45BB. CONTRIBUTIONS TO SCHOLARSHIP GRANTING ORGANIZATIONS.

 ``

    (a) General Rule.--For purposes of 

section 38, in the case of a 
corporation, the education scholarship credit determined under this 
section for the taxable year is the aggregate amount of qualified 
contributions for the taxable year.
 ``

    (b) Amount of Credit.--The credit allowed under subsection

    (a) for any taxable year shall not exceed 5 percent of the taxable income 
(as defined in 

section 170

    (b)

    (2)
            (D) ) of the corporation for such 
taxable year.
 ``
            (c) Qualified Contributions.--For purposes of this section, the 
term `qualified contribution' has the meaning given such term under 

section 25F.
 ``
            (d) Denial of Double Benefit.--No deduction shall be allowed 
under any provision of this chapter for any expense for which a credit 
is allowed under this section.
 ``

    (e) Application of Volume Cap.--A qualified contribution shall be 
taken into account under this section only if such contribution is not 
in excess of the volume cap established under 

section 3 of the 
Universal School Choice Act.''.

    (2) Conforming amendments.--

Section 38

    (b) of such Code is 
 amended by striking ``plus'' at the end of paragraph

    (40) , by 
 striking the period and inserting ``, plus'' at the end of 
 paragraph

    (41) , and by adding at the end the following new 
 paragraph:
 ``

    (42) the education scholarship credit determined under 
 

section 45BB

    (a) .''.

    (3) Clerical amendment.--The table of sections for subpart 
 D of part IV of subchapter A of chapter 1 of such Code is 
 amended by adding at the end the following new item:

``

Sec. 45BB. Contributions to scholarship granting organizations.''.
            (c) Failure of Scholarship Granting Organizations To Make 
Distributions.--

    (1) In general.--Chapter 42 of such Code is amended by 
 adding at the end the following new subchapter:

 ``Subchapter I--Scholarship Granting Organizations

``

Sec. 4969. Failure to distribute receipts.

``

SEC. 4969. FAILURE TO DISTRIBUTE RECEIPTS.

 ``

    (a) In General.--In the case of any scholarship granting 
organization (as defined in 

section 25F) which has been determined by 
the Secretary to have failed to satisfy the requirement under 
subsection

    (b) for any taxable year, any contribution made to such 
organization during the first taxable year beginning after the date of 
such determination shall not be treated as a qualified contribution (as 
defined in 

section 25F
            (c) (2) ) for purposes of sections 25F and 45BB.
 ``

    (b) Requirement.--
 ``

    (1) In general.--The requirement described in this 
 subsection is that the amount of receipts of the scholarship 
 granting organization for the taxable year which are 
 distributed before the distribution deadline with respect to 
 such receipts shall not be less than the required distribution 
 amount with respect to such taxable year.
 ``

    (2) Distribution deadline.--The distribution deadline 
 with respect to receipts for a taxable year is the first day of 
 the third taxable year following the taxable year in which such 
 receipts are received by the scholarship granting organization.
 ``
            (c) === Definitions. ===
-For purposes of this section--
 ``

    (1) Required distribution amount.--
 ``
        (A) In general.--The required distribution amount 
 with respect to a taxable year is the amount equal to 
 100 percent of the total receipts of the scholarship 
 granting organization for such taxable year, as reduced 
 by the sum of such receipts that are retained for 
 reasonable administrative expenses for the taxable 
 year.
 ``
        (B) Safe harbor for reasonable administrative 
 expenses.--For purposes of subparagraph
        (A) , if the 
 percentage of total receipts of a scholarship granting 
 organization for a taxable year which are used for 
 administrative purposes is equal to or less than 10 
 percent, such expenses shall be deemed to be reasonable 
 for purposes of such subparagraph.
 ``

    (2) Distributions.--The term `distribution' includes 
 amounts which are formally committed but not distributed. A 
 formal commitment described in the preceding sentence may 
 include contributions set aside for eligible students for more 
 than 1 year.''.

    (2) Clerical amendment.--The table of subchapters for 
 chapter 42 of such Code is amended by adding at the end the 
 following new item:

 ``subchapter i. scholarship granting organizations''.
            (d) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 2025.

SEC. 3. VOLUME CAP.

    (a) In General.--

    (1) National cap.--For purposes of sections 25F

    (b)

    (2) and 
 45BB

    (e) of the Internal Revenue Code of 1986 (as added by this 
 Act), the volume cap applicable under this section shall be 
 $10,000,000,000 for calendar year 2026 and each subsequent year 
 thereafter.

    (2) Allocation of cap.--
        (A) In general.--For each calendar year, the 
 Secretary shall, from the amount allotted under 
 paragraph

    (1) --
            (i) subject to subparagraph
            (C) , first 
 reserve, for each State, an amount equal to the 
 sum of the qualifying contributions designated 
 under paragraph

    (4) with respect to such State 
 in the preceding year; and
            (ii) next, allocate the remaining amount 
 among the States by allocating to each State 
 the sum of--
            (I) an amount that bears the same 
 relationship to 20 percent of such 
 remaining amount as the number of 
 individuals aged 5 through 17 in the 
 State, as determined by the Secretary 
 (in coordination with the Secretary of 
 Education) on the basis of the most 
 recent satisfactory data, bears to the 
 number of those individuals in all such 
 States, as so determined; and
            (II) an amount that bears the same 
 relationship to 80 percent of such 
 remaining amount as the number of 
 individuals aged 5 through 17 from 
 families with incomes below the poverty 
 line in the State, as determined by the 
 Secretary (in coordination with the 
 Secretary of Education), on the basis 
 of the most recent satisfactory data, 
 bears to the number of those 
 individuals in all such States, as so 
 determined.
        (B) Minimum allocation.--Notwithstanding 
 subparagraph
        (A) , no State receiving an allotment under 
 this section may receive less than one-half of one 
 percent of the amount allotted for a calendar year.
            (C) Initial year.--For purposes of the first 
 calendar year with respect to which this section 
 applies, the amount allocated to each State under this 
 paragraph shall be determined without respect to 
 subparagraph
        (A)
            (i) .

    (3) Allocation and adjustments.--
        (A) Initial allocation to states.--No later than 
 November 1 of the year preceding a year for which there 
 is a volume cap on credits under paragraph

    (1) (hereafter in this section, the ``applicable year''), 
 or as early as practicable with respect to the first 
 year, the Secretary shall announce the State 
 allocations under paragraph

    (2) for the applicable 
 year.
        (B) Reallocation of unclaimed credits.--On or after 
 July 31 of any applicable year, the Secretary shall--
            (i) make available any amounts of the 
 volume cap which were allocated to States under 
 paragraph

    (2) and which have not been claimed; 
 and
            (ii) allocate such amounts on a first-come, 
 first-serve basis, as determined based on the 
 time (during such calendar year) at which the 
 taxpayer made the qualified contribution with 
 respect to which the allocation is made.

    (4) Designation by taxpayer.--
        (A) In general.--For purposes of determining the 
 amount of the volume cap allocated to a State under 
 paragraph

    (2) for any calendar year which has been 
 claimed by taxpayers, the Secretary shall--
            (i) as part of the system described in 
 subsection
            (c) , require each taxpayer making a 
 qualified contribution to designate the 
 distribution State with respect to such 
 contribution; and
            (ii) for each State which an allocation has 
 been made under paragraph

    (2) , ensure that the 
 total amount of qualified contributions 
 designated with respect to such State pursuant 
 to clause
            (i) during such calendar year does 
 not exceed the amount of the volume cap 
 allocated to a State for such calendar year.
        (B) Binding on scholarship granting organization.--
 The designation by the taxpayer of the distribution 
 State pursuant to subparagraph
        (A)
            (i) shall be binding 
 on the scholarship granting organization for purposes 
 of any distribution of the qualified contribution made 
 by such taxpayer.
            (C) Distribution state.--For purposes of this 
 section, the term ``distribution State'' means the 
 State for which the scholarship granting organization 
 shall, pursuant to the requirements under 

section 4969 
 of the Internal Revenue Code of 1986, be required to 
 make distributions with respect to eligible students 
 residing in such State.
            (D) Exception for administrative expenses.--The 
 requirements applicable to a scholarship granting 
 organization under subparagraphs
        (B) and
            (C) shall not 
 apply to such portion of the qualified contributions 
 received by such organization that are used for 
 administrative purposes (as described in 

section 4969
            (c) (1)
        (B) of the Internal Revenue Code of 1986).

    (b) Annual Increases.--

    (1) In general.--In the case of the calendar year after a 
 high use calendar year, the dollar amount otherwise in effect 
 under subsection

    (a) for such calendar year shall be equal to 
 105 percent of the dollar amount in effect for such high use 
 calendar year.

    (2) High use calendar year.--For purposes of this 
 subsection, the term ``high use calendar year'' means any 
 calendar year for which 90 percent or more of the volume cap in 
 effect for such calendar year under subsection

    (a) is allocated 
 to taxpayers.

    (3) Prevention of decreases in annual volume cap.--The 
 volume cap in effect under subsection

    (a) for any calendar year 
 shall not be less than the volume cap in effect under such 
 subsection for the preceding calendar year.

    (4) Publication of annual volume cap.--The Secretary shall 
 make publicly available the dollar amount of the volume cap in 
 effect under subsection

    (a) for each calendar year.
            (c) Real-Time Information.--For purposes of this section, the 
Secretary shall develop a system to track the amount of qualified 
contributions made during the calendar year for which a credit may be 
claimed under 

section 25F or 45BB of the Internal Revenue Code of 1986, 
with such information to be updated in real time.
            (d) === Definition. ===
-For purposes of this section, the term 
``Secretary'' means the Secretary of the Treasury (or the Secretary's 
delegate)

SEC. 4. EXEMPTION FROM GROSS INCOME FOR SCHOLARSHIPS FOR QUALIFIED 
 ELEMENTARY OR SECONDARY EDUCATION EXPENSES OF ELIGIBLE 
 STUDENTS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting before 

section 140 the following new section:

``

SEC. 139J. SCHOLARSHIPS FOR QUALIFIED ELEMENTARY OR SECONDARY 
 EDUCATION EXPENSES OF ELIGIBLE STUDENTS.

 ``

    (a) In General.--In the case of an individual, gross income shall 
not include any amounts provided to any dependent of such individual 
pursuant to a scholarship for qualified elementary or secondary 
education expenses of an eligible student which is provided by a 
scholarship granting organization.
 ``

    (b) 

=== Definitions. ===
-In this section, the terms `qualified 
elementary or secondary education expense', `eligible student', and 
`scholarship granting organization' have the same meaning given such 
terms under 

section 25F
            (c) .''.

    (b) Conforming 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 before the item relating to 

section 140 the 
following new item:

``

Sec. 139J. Scholarships for qualified elementary or secondary 
 education expenses of eligible students.''.
            (c) Effective Date.--The amendments made by this section shall 
apply to amounts received after December 31, 2025, in taxable years 
ending after such date.

SEC. 5. ORGANIZATIONAL AND PARENTAL AUTONOMY.

    (a) Prohibition of Control Over Scholarship Organizations.--

    (1) In general.--
        (A) Treatment.--A scholarship granting organization 
 shall not, by virtue of participation under any 
 provision of this Act or any amendment made by this 
 Act, be regarded as acting on behalf of any 
 governmental entity.
        (B) No governmental control.--Nothing in this Act, 
 or any amendment made by this Act, shall be construed 
 to permit, allow, encourage, or authorize any Federal, 
 State, or local government entity, or officer or 
 employee thereof, to mandate, direct, or control any 
 aspect of any scholarship granting organization.
            (C) Maximum freedom.--To the extent permissible by 
 law, this Act, and any amendment made by this Act, 
 shall be construed to allow scholarship granting 
 organizations maximum freedom to provide for the needs 
 of the participants without governmental control.

    (2) Prohibition of control over non-public schools.--
        (A) No governmental control.--Nothing in this Act, 
 or any amendment made by this Act, shall be construed 
 to permit, allow, encourage, or authorize any Federal, 
 State, or local government entity, or officer or 
 employee thereof, to mandate, direct, or control any 
 aspect of any private or religious elementary or 
 secondary education institution.
        (B) No exclusion of private or religious schools.--
 No Federal, State, or local government entity, or 
 officer or employee thereof, shall impose or permit the 
 imposition of any conditions or requirements that would 
 exclude or operate to exclude educational expenses at 
 private or religious elementary and secondary education 
 institutions from being considered qualified elementary 
 or secondary education expenses.
            (C) No exclusion of qualified expenses due to 
 institution's religious character or affiliation.--No 
 Federal, State, or local government entity, or officer 
 or employee thereof, shall exclude, discriminate 
 against, or otherwise disadvantage any elementary or 
 secondary education institution with respect to 
 qualified elementary or secondary education expenses at 
 that institution based in whole or in part on the 
 institution's religious character or affiliation, 
 including religiously based or mission-based policies 
 or practices.

    (3) Parental rights to use scholarships.--No Federal, 
 State, or local government entity, or officer or employee 
 thereof, shall disfavor or discourage the use of scholarships 
 granted by participating scholarship granting organizations for 
 qualified elementary or secondary education expenses at private 
 or nonprofit elementary and secondary education institutions, 
 including faith-based schools.

    (4) Parental right to intervene.--In any action filed in 
 any State or Federal court which challenges the 
 constitutionality (under the constitution of such State or the 
 Constitution of the United States) of any provision of this Act 
 (or any amendment made by this Act), any parent of an eligible 
 student who has received a scholarship from a scholarship 
 granting organization shall have the right to intervene in 
 support of the constitutionality of such provision or 
 amendment. To avoid duplication of efforts and reduce the 
 burdens placed on the parties to the action, the court in any 
 such action may require interveners taking similar positions to 
 file joint papers or to be represented by a single attorney at 
 oral argument, provided that the court does not require such 
 interveners to join any brief filed on behalf of any State 
 which is a defendant in such action.

    (b) 

=== Definitions. ===
-For purposes of this section, the terms 
``eligible student'', ``scholarship granting organization'', and 
``qualified elementary or secondary education expense'' shall have the 
same meanings given such terms under 

section 25F
            (c) of the Internal 
Revenue Code of 1986 (as added by 

section 2

    (a) of this Act).
 <all>