To provide elementary and secondary education assistance to students and schools impacted by Hurricane Katrina and to lower origination fees.

SA 2352. Mr. ENZI (for himself, Mr. Kennedy, Mr. Alexander, Mr. Dodd,
Ms. Landrieu, Mr. Cochran, Mr. Lott, and Mrs. Hutchison) proposed an
amendment to the bill S. 1932, to provide for reconciliation pursuant
to section 202(a) of the concurrent resolution on the budget for fiscal
year 2006 (H. Con. Res. 95); as follows;

At the end of title VII, insert the following:

Subtitle D--Hurricane Relief

SEC. 7951. FINDINGS.

Congress finds the following:
(1) Hurricane Katrina has had a devastating and
unprecedented impact on students who attended schools in the
disaster areas.
(2) Due to the devastating effects of Hurricane Katrina, a
significant number of students have enrolled in schools
outside of the area in which they resided on August 22, 2005,
including a significant number of students who enrolled in
non-public schools because their parents chose to enroll them
in such schools.
(3) 372,000 students were displaced by Hurricane Katrina.
Approximately 700 schools have been damaged or destroyed.
Nine States each have more than 1,000 of such displaced
students enrolled in their schools. In Texas alone, over
45,000 displaced students have enrolled in schools.
(4) In response to these extraordinary conditions, this
subtitle creates a one-time only emergency grant for the
2005-2006 school year tailored to the needs and particular
circumstances of students displaced by Hurricane Katrina.

SEC. 7952. IMMEDIATE AID TO RESTART SCHOOL OPERATIONS.

(a) Purpose.--It is the purpose of this section--

[[Page S12134]]

(1) to provide immediate and direct assistance to local
educational agencies in Louisiana, Mississippi, and Alabama
that serve an area in which a major disaster has been
declared in accordance with section 401 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5170), related to Hurricane Katrina;
(2) to assist school district administrators and personnel
of such agencies who are working to restart operations in
elementary schools and secondary schools served by such
agencies; and
(3) to facilitate the re-opening of elementary schools and
secondary schools served by such agencies and the re-
enrollment of students in such schools as soon as possible.
(b) Payments and Grants Authorized.--From amounts
appropriated to carry out this subtitle, the Secretary of
Education is authorized to make payments, not later than
November 30, 2005, to State educational agencies (as defined
in section 9101 of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7801 et seq.)) in Louisiana, Mississippi,
and Alabama to enable such agencies to award grants to local
educational agencies serving an area in which a major
disaster has been declared in accordance with section 401 of
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170), related to Hurricane
Katrina.
(c) Eligibility and Consideration.--In determining whether
to award a grant under this section, or the amount of the
grant, the State educational agency shall consider the
following:
(1) The number of school-aged children served by the local
educational agency in the academic year preceding the
academic year for which the grant is awarded.
(2) The severity of the impact of Hurricane Katrina on the
local educational agency and the extent of the needs in each
local educational agency in Louisiana, Mississippi, and
Alabama that is in an area in which a major disaster has been
declared in accordance with section 401 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5170), related to Hurricane Katrina.
(d) Applications.--Each local educational agency desiring a
grant under this section shall submit an application to the
State educational agency at such time, in such manner, and
accompanied by such information as the State educational
agency may reasonably require to ensure expedited and timely
payment to the local educational agency.
(e) Uses of Funds.--
(1) In general.--A local educational agency receiving a
grant under this section shall use the grant funds for--
(A) recovery of student and personnel data, and other
electronic information;
(B) replacement of school district information systems,
including hardware and software;
(C) financial operations;
(D) reasonable transportation costs;
(E) rental of mobile educational units and leasing of
neutral sites or spaces;
(F) initial replacement of instructional materials and
equipment, including textbooks;
(G) redeveloping instructional plans, including curriculum
development;
(H) initiating and maintaining education and support
services; and
(I) such other activities related to the purpose of this
section that are approved by the Secretary.
(2) Use with other available funds.--A local educational
agency receiving a grant under this section may use the grant
funds in coordination with other Federal, State, or local
funds available for the activities described in paragraph
(1).
(3) Prohibitions.--Grant funds received under this section
shall not be used for any of the following:
(A) Construction or major renovation of schools.
(B) Payments to school administrators or teachers who are
not actively engaged in restarting or re-opening schools.
(f) Supplement Not Supplant.--
(1) In general.--Except as provided in paragraph (2), funds
made available under this section shall be used to
supplement, not supplant, any funds made available through
the Federal Emergency Management Agency or through a State.
(2) Exception.--Paragraph (1) shall not prohibit the
provision of Federal assistance under this section to an
eligible educational agency that is or may be entitled to
receive, from another source, benefits for the same purposes
as under this section if--
(A) such agency has not received such other benefits by the
time of application for Federal assistance under this
section; and
(B) such agency agrees to repay all duplicative Federal
assistance received to carry out the purposes of this
section.

SEC. 7953. HOLD HARMLESS FOR LOCAL EDUCATIONAL AGENCIES
SERVING MAJOR DISASTER AREAS.

In the case of a local educational agency that serves an
area in which the President has declared that a major
disaster exists in accordance with section 401 of the Robert
T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5170), related to Hurricane Katrina, the amount made
available for such local educational agency under each of
sections 1124, 1124A, 1125, and 1125A of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6333, 6334, 6335,
and 6337) for fiscal year 2006 shall be not less than the
amount made available for such local educational agency under
each of such sections for fiscal year 2005.

SEC. 7954. TEACHER AND PARAPROFESSIONAL RECIPROCITY; DELAY.

(a) Teacher and Paraprofessional Reciprocity.--
(1) Teachers.--
(A) Affected teacher.--In this subsection, the term
``affected teacher'' means a teacher who is displaced due to
Hurricane Katrina and relocates to a State that is different
from the State in which such teacher resided on August 22,
2005.
(B) In general.--A local educational agency may consider an
affected teacher hired by such agency who is not highly
qualified in the State in which such agency is located to be
highly qualified, for purposes of section 1119 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6319) and section 612(a)(14) of the Individuals with
Disabilities Education Act (20 U.S.C. 1412(a)(14)), for a
period not to exceed 1 year, if such teacher was highly
qualified, consistent with section 9101(23) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7801(23)) and
section 602(10) of the Individuals with Disabilities
Education Act (20 U.S.C. 1401(10)), on or before August 22,
2005, in the State in which such teacher resided on August
22, 2005.
(2) Paraprofessional.--
(A) Affected paraprofessional.--In this subsection, the
term ``affected paraprofessional'' means a paraprofessional
who is displaced due to Hurricane Katrina and relocates to a
State that is different from the State in which such
paraprofessional resided on August 22, 2005.
(B) In general.--A local educational agency may consider an
affected paraprofessional hired by such agency who does not
satisfy the requirements of section 1119(c) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6319(c)) in
the State in which such agency is located to satisfy such
requirements, for purposes of such section, for a period not
to exceed 1 year, if such paraprofessional satisfied such
requirements on or before August 22, 2005, in the State in
which such paraprofessional resided on August 22, 2005.
(b) Delay.--The Secretary of Education may delay, for a
period not to exceed 1 year, applicability of the
requirements of paragraphs (2) and (3) of section 1119(a) of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
6319(a)(2) and (3)) and section 612(a)(14)(C) of the
Individuals with Disabilities Education Act (20 U.S.C.
1412(a)(14)(C)) with respect to the States of Alabama,
Louisiana, and Mississippi (and local educational agencies
within the jurisdiction of such States), if any such State or
local educational agency demonstrates that a failure to
comply with such requirements is due to exceptional or
uncontrollable circumstances, such as a natural disaster or a
precipitous and unforeseen decline in the financial resources
of local educational agencies within the State.

SEC. 7955. ASSISTANCE FOR HOMELESS YOUTH.

(a) In General.--The Secretary of Education shall provide
assistance to local educational agencies serving homeless
children and youths displaced by Hurricane Katrina,
consistent with section 723 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11433), including identification,
enrollment assistance, assessment and school placement
assistance, transportation, coordination of school services,
supplies, referrals for health, mental health, and other
needs.
(b) Exception and Distribution of Funds.--
(1) Exception.--For purposes of providing assistance under
subsection (a), subsections (c) and (e)(1) of section 722 and
subsections (b) and (c) of section 723 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11432(c) and (e)(1),
11433(b) and (c)) shall not apply.
(2) Disbursement.--The Secretary of Education shall
disburse funding provided under subsection (a) to State
educational agencies based on demonstrated need, as
determined by the Secretary, and such State educational
agencies shall distribute funds, that are appropriated under
section 7958 and available to carry out this section, to
local educational agencies based on demonstrated need, for
the purposes of carrying out section 723 of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11433).

SEC. 7956. TEMPORARY EMERGENCY IMPACT AID FOR DISPLACED
STUDENTS.

(a) Temporary Emergency Impact Aid Authorized.--
(1) Aid to state educational agencies.--From amounts
appropriated under this subtitle, the Secretary of Education
shall provide emergency impact aid to State educational
agencies to enable the State educational agencies to make
emergency impact aid payments to eligible local educational
agencies and eligible BIA-funded schools to enable--
(A) such eligible local educational agencies and schools to
provide for the instruction of displaced students served by
such agencies and schools; and
(B) such eligible local educational agencies to make
immediate impact aid payments to accounts established on
behalf of displaced students (referred to in this section as
``accounts'') who are attending eligible non-public schools
located in the areas served by the eligible local educational
agencies.

[[Page S12135]]

(2) Aid to local educational agencies and bia-funded
schools.--A State educational agency shall make emergency
impact aid payments to eligible local educational agencies
and eligible BIA-funded schools in accordance with subsection
(d).
(3) State educational agencies in certain states.--In the
case of the States of Louisiana and Mississippi, the State
educational agency shall carry out the activities of eligible
local educational agencies that are unable to carry out this
section, including eligible local educational agencies in
such States for which the State exercises the authorities
normally exercised by such local educational agencies.
(b) Definitions.--In this section:
(1) Displaced student.--The term ``displaced student''
means a student who enrolled in a school (other than the
school that the student was enrolled in, or was eligible to
be enrolled in, on August 22, 2005) because such student
resides or resided on August 22, 2005, in an area for which a
major disaster has been declared in accordance with section
401 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170), related to Hurricane
Katrina.
(2) Eligible local educational agencies.--The term
``eligible local educational agency'' means a local
educational agency that serves--
(A) an elementary school or secondary school (including a
charter school) in which there is enrolled a displaced
student; or
(B) an area in which there is located an eligible non-
public school.
(3) Eligible non-public school.--The term ``eligible non-
public school'' means a non-public school that--
(A) is accredited or licensed or otherwise operates in
accordance with State law;
(B) was in existence on August 22, 2005; and
(C) serves a displaced student on behalf of whom an
application for an account has been made pursuant to
subsection (c)(2)(A)(ii).
(4) Eligible bia-funded school.--In this section, the term
``eligible BIA-funded school'' means a school funded by the
Bureau of Indian Affairs in which there is enrolled a
displaced student.
(c) Application.--
(1) State educational agency.--A State educational agency
that desires to receive emergency impact aid under this
section shall submit an application to the Secretary of
Education at such time, in such manner, and accompanied by
such information as the Secretary of Education may reasonably
require, including--
(A) information on the total displaced student child count
of the State provided by eligible local educational agencies
in the State and eligible BIA-funded schools in the State
under paragraph (2);
(B) a description of the process for the parent or guardian
of a displaced student enrolled in a non-public school to
indicate to the eligible local educational agency serving the
area in which such school is located that the student is
enrolled in such school;
(C) a description of the procedure to be used by an
eligible local educational agency in such State to provide
payments to accounts;
(D) a description of the process to be used by an eligible
local educational agency in such State to obtain--
(i) attestations of attendance of eligible displaced
students from eligible non-public schools, in order for the
local educational agency to provide payments to accounts on
behalf of eligible displaced students; and
(ii) attestations from eligible non-public schools that
accounts are used only for the purposes described in
subsection (e)(2)(A); and
(E) the criteria, including family income, used to
determine the eligibility for and the amount of assistance
under this section provided on behalf of a displaced student
attending an eligible non-public school.
(2) Local educational agencies and bia-funded schools.--An
eligible local educational agency or eligible BIA-funded
school that desires an emergency impact aid payment under
this section shall submit an application to the State
educational agency at such time, in such manner, and
accompanied by such information as the State educational
agency may reasonably require, including documentation
submitted quarterly for the 2005-2006 school year that
indicates the following:
(A) In the case of an eligible local educational agency--
(i) the number of displaced students enrolled in the
elementary schools and secondary schools (including charter
schools and including the number of displaced students who
are served under part B of the Individuals with Disabilities
Education Act) served by such agency for such quarter; and
(ii) the number of displaced students for whom the eligible
local educational agency expects to provide payments to
accounts under subsection (e)(2) (including the number of
displaced students who are served under part B of the
Individuals with Disabilities Education Act) for such quarter
who meet the following criteria:

(I) The displaced student enrolled in an eligible non-
public school prior to the date of enactment of this Act.
(II) The parent or guardian of the displaced student chose
to enroll the student in the eligible non-public school in
which the student is enrolled.
(III) The parent or guardian of the displaced student
submitted an application requesting that the agency make a
payment to an account on behalf of the student.
(IV) The displaced student's tuition and fees (and
transportation expenses, if any) for the 2005-2006 school
year is waived or reimbursed (by the eligible non-public
school) in an amount that is not less than the amount of
emergency impact aid payment provided on behalf of such
student under this section.

(B) In the case of an eligible BIA-funded school, the
number of displaced students, including the number of
displaced students who are served under part B of the
Individuals with Disabilities Education Act (20 U.S.C. 1411
et seq.), enrolled in such school for such quarter.
(3) Determination of number of displaced students.--In
determining the number of displaced students for a quarter
under paragraph (2), an eligible local educational agency or
eligible BIA-funded school shall include in such number the
number of displaced students served during such quarter prior
to the date of enactment of this Act.
(d) Amount of Emergency Impact Aid.--
(1) Aid to state educational agencies.--
(A) In general.--The amount of emergency impact aid
received by a State educational agency for the 2005-2006
school year shall equal the sum of--
(i) the product of the number of displaced students (who
are not served under part B of the Individuals with
Disabilities Education Act (20 U.S.C. 1411 et seq.)), as
determined by the eligible local educational agencies and
eligible BIA-funded schools in the State under subsection
(c)(2), times $6,000; and
(ii) the product of the number of displaced students who
are served under part B of the Individuals with Disabilities
Education Act, as determined by the eligible local
educational agencies and eligible BIA-funded schools in the
State under subsection (c)(2), times $7,500.
(B) Insufficient funds.--If the amount available under this
section to provide emergency impact aid under this subsection
is insufficient to pay the full amount that a State
educational agency is eligible to receive under this section,
the Secretary of Education shall ratably reduce the amount of
such emergency impact aid.
(2) Aid to eligible local educational agencies and eligible
bia-funded schools.--
(A) Quarterly installments.--
(i) In general.--A State educational agency shall provide
emergency impact aid payments under this section on a
quarterly basis for the 2005-2006 school year by such dates
as determined by the Secretary of Education. Such quarterly
installment payments shall be based on the number of
displaced students reported under subsection (c)(2) and in
the amount determined under clause (ii).
(ii) Payment amount.--Each quarterly installment payment
under clause (i) shall equal 25 percent of the sum of--

(I) the number of displaced students (who are not served
under part B of the Individuals with Disabilities Education
Act (20 U.S.C. 1411 et seq.)) reported by the eligible local
educational agency or eligible BIA-funded school for such
quarter (as determined under subsection (c)(2)) times $6,000;
and
(II) the number of displaced students who are served under
part B of the Individuals with Disabilities Education Act (20
U.S.C. 1411 et seq.) reported by the eligible local
educational agency or eligible BIA-funded school for such
quarter (as determined under subsection (c)(2)) times $7,500.

(iii) Timeline.--The Secretary of Education shall establish
a timeline for quarterly reporting on the number of displaced
students in order to make the appropriate disbursements in a
timely manner.
(iv) Insufficient funds.--If, for any quarter, the amount
available under this section to make payments under this
subsection is insufficient to pay the full amount that an
eligible local educational agency or eligible BIA-funded
school is eligible to receive under this section, the State
educational agency shall ratably reduce the amount of such
payments.
(B) Maximum payment to account.--In providing quarterly
payments to an account for the 2005-2006 school year on
behalf of a displaced student for each quarter that such
student is enrolled in a non-public school in the area served
by the agency under subsection (e)(2), an eligible local
educational agency may provide not more than 4 quarterly
payments to such account, and the aggregate amount of such
payments shall not exceed the lesser of--
(i)(I) in the case of a displaced student who is not served
under part B of the Individuals with Disabilities Education
Act (20 U.S.C. 1411 et seq.), $6,000; or
(II) in the case of a displaced student who is served under
part B of the Individuals with Disabilities Education Act,
$7,500; or
(ii) the cost of tuition and fees (and transportation
expenses, if any) at the non-public school for the 2005-2006
school year.
(e) Use of Funds.--
(1) Displaced students in public schools.--An eligible
local educational agency or eligible BIA-funded school
receiving emergency impact aid payments under this section
shall use the payments to provide instructional opportunities
for displaced students who enroll in elementary schools and
secondary schools (including charter schools) served by such
agency or in such a school, and for other expenses incurred
as a result of the agency or school serving displaced
students, which uses may include--

[[Page S12136]]

(A) paying the compensation of personnel, including teacher
aides, in schools enrolling displaced students;
(B) identifying and acquiring curricular material,
including the costs of providing additional classroom
supplies, and mobile educational units and leasing sites or
spaces;
(C) basic instructional services for such students,
including tutoring, mentoring, or academic counseling;
(D) reasonable transportation costs;
(E) health services (including counseling and mental health
services); and
(F) education and support services.
(2) Displaced students in non-public schools.--
(A) In general.--An eligible local educational agency that
receives emergency impact aid payments under this section and
that serves an area in which there is located an eligible
non-public school shall, at the request of the parent or
guardian of a displaced student who meets the criteria
described in subsection (c)(2)(A)(ii) and who enrolled in a
non-public school in an area served by the agency, use such
emergency impact aid payment to provide payment on a
quarterly basis (but not to exceed the total amount specified
in subsection (d)(2)(B) for the 2005-2006 school year) to an
account on behalf of such displaced student, which payment
shall be used to assist in paying for any of the following:
(i) Paying the compensation of personnel, including teacher
aides, in the non-public school, which funds shall not be
used for religious instruction, proselytization, or worship.
(ii) Identifying and acquiring curricular material,
including the costs of providing additional classroom
supplies (which shall be secular, neutral, and shall not have
a religious component), and mobile educational units and
leasing sites or spaces, which shall not be used for
religious instruction, proselytization, or worship.
(iii) Basic instructional services, including tutoring,
mentoring, or academic counseling, which services shall be
secular and neutral and shall not be used for religious
instruction, proselytization, or worship.
(iv) Reasonable transportation costs.
(v) Health services (including counseling and mental health
services), which services shall be secular and neutral and
shall not be used for religious instruction, proselytization,
or worship.
(vi) Education and support services, which services shall
be secular and neutral and shall not be used for religious
instruction, proselytization, or worship.
(B) Verification of enrollment.--Before providing a
quarterly payment to an account under subparagraph (A), the
eligible local educational agency shall verify with the
parent or guardian of a displaced student that such displaced
student is enrolled in the non-public school.
(3) Provision of special education and related services.--
(A) In general.--In the case of a displaced student who is
served under part B of the Individuals with Disabilities
Education Act (20 U.S.C. 1411 et seq.), any payment made on
behalf of such student to an eligible local educational
agency or any payment available in an account for such
student, shall be used to pay the cost of providing the
student with special education and related services
consistent with the Individuals with Disabilities Education
Act (20 U.S.C. 1400 et seq.).
(B) Special rule.--
(i) Retention.--Notwithstanding any other provision of this
section, if an eligible local educational agency provides
services to a displaced student attending an eligible non-
public school under section 612(a)(10) of the Individuals
with Disabilities Education Act (20 U.S.C. 1412(a)(10)), the
eligible local educational agency may retain a portion of the
assistance received under this section for such student to
pay the cost of providing such services.
(ii) Determination of portion.--

(I) Guidelines.--Each State shall issue guidelines that
specify the portion of the assistance that an eligible local
educational agency in the State may retain under this
subparagraph. Each State shall apply such guidelines in a
consistent manner throughout the State.
(II) Determination of portion.--The portion specified in
the guidelines shall be based on customary costs of providing
services under such section 612(a)(10) for the local
educational agency.

(C) Definitions.--In this paragraph:
(i) Special education; related services.--The terms
``special education'' and ``related services'' have the
meaning given such terms in section 602 of the Individuals
with Disabilities Education Act (20 U.S.C. 1401).
(ii) Individualized education program.--The term
``individualized education program'' has the meaning given
the term in section 614(d)(2) of the Individuals with
Disabilities Education Act (20 U.S.C. 1414(d)(2)).
(f) Return of Aid.--
(1) Eligible local educational agency or eligible bia-
funded school.--An eligible local educational agency or
eligible BIA-funded school that receives an emergency impact
aid payment under this section shall return to the State
educational agency any payment provided to the eligible local
educational agency or school under this section that the
eligible local educational agency or school has not obligated
by the end of the 2005-2006 school year in accordance with
this section.
(2) State educational agency.--A State educational agency
that receives emergency impact aid under this section, shall
return to the Secretary of Education--
(A) any aid provided to the agency under this section that
the agency has not obligated by the end of the 2005-2006
school year in accordance with this section; and
(B) any payment funds returned to the State educational
agency under paragraph (1).
(g) Limitation on Use of Aid and Payments.--Aid and
payments provided under this section shall only be used for
expenses incurred during the 2005-2006 school year.
(h) Administrative Expenses.--A State educational agency
that receives emergency impact aid under this section may use
not more than 1 percent of such aid for administrative
expenses. An eligible local educational agency or eligible
BIA-funded school that receives emergency impact aid payments
under this section may use not more than 2 percent of such
payments for administrative expenses.
(i) Special Funding Rule.--In calculating funding under
section 8003 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7703) for an eligible local educational
agency that receives an emergency impact aid payment under
this section, the Secretary of Education shall not count
displaced students served by such agency for whom an
emergency impact aid payment is received under this section,
nor shall such students be counted for the purpose of
calculating the total number of children in average daily
attendance at the schools served by such agency as provided
in section 8003(b)(3)(B)(i) of such Act (20 U.S.C.
7703(b)(3)(B)(i)).
(j) Notice of Option of Public School or Non-Public School
Enrollment.--Each State receiving emergency impact aid under
this section shall provide, to the parent or guardian of each
displaced student for whom a payment is made under this
section to an account who resides in such State, notification
that such parent or guardian has the option of enrolling such
student in a public school or a non-public school.
(k) By-Pass.--If a State educational agency or eligible
local educational agency is unable to carry out this section,
the Secretary of Education may make such arrangements with
the State as the Secretary determines appropriate to carry
out this section on behalf of displaced students attending an
eligible non-public school in the area served by such agency.
For a State in which State law prohibits the State from using
Federal funds to directly provide services on behalf of
students attending non-public schools and provides that
another entity shall provide such services, the Secretary of
Education shall make such arrangements with that entity.
(l) Nondiscrimination.--
(1) In general.--A school that enrolls a displaced student
under this section shall not discriminate against students on
the basis of race, color, national origin, religion,
disability, or sex.
(2) Applicability and single sex schools, classes, or
activities.--
(A) In general.--To the extent consistent with title IX of
the Education Amendments of 1972 (20 U.S.C. 1681 et seq.),
the prohibition of sex discrimination in paragraph (1) shall
not apply to a non-public school that is controlled by a
religious organization if the application of paragraph (1)
would not be consistent with the religious tenets of such
organization.
(B) Single sex schools, classes, or activities.--
Notwithstanding paragraph (1) and to the extent consistent
with title IX of the Education Amendments of 1972, a parent
or guardian may choose and a non-public school may offer a
single sex school, class, or activity.
(C) Enrollment.--The prohibition of religious
discrimination in paragraph (1) shall not apply with regard
to enrollment for a non-public school that is controlled by a
religious organization, except in the case of the enrollment
of displaced students assisted under this section.
(3) General provision.--Nothing in this section may be
construed to alter or modify the provisions of the
Individuals with Disabilities Education Act (20 U.S.C. 1400
et seq.), title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.), title IX of the Education Amendments of 1972
(20 U.S.C. 1681 et seq.), and the Rehabilitation Act of 1973
(29 U.S.C. 701 et seq.).
(4) Opt-in.--A displaced student assisted under this
section who is enrolled in a non-public school shall not
participate in religious worship or religious classes at such
school unless such student's parent or guardian chooses to
opt-in such student for such religious worship or religious
classes.
(5) Rule of construction.--The amount of any payment (or
other form of support provided on behalf of a displaced
student) under this section shall not be treated as income of
a parent or guardian of the student for purposes of Federal
tax laws or for determining eligibility for any other Federal
program.
(m) Treatment of State Aid.--A State shall not take into
consideration emergency impact aid payments received under
this section by a local educational agency in the State in
determining the eligibility of such local educational agency
for State aid, or the amount of State aid, with respect to
free public education of children.

SEC. 7957. ORIGINATION FEES FOR STUDENT LOANS.

(a) Special Allowances.--Notwithstanding section 438(c)(2)
of the Higher Education Act of 1965 (as amended by this Act)
(20 U.S.C. 1087-1(c)(2)), subparagraph (A) of

[[Page S12137]]

section 438(c)(2) of such Act shall be applied by
substituting ``2.0 percent'' for ``3.0 percent'' with respect
to loans for which the first disbursement of principal is
made on or after July 1, 2007.
(b) Origination Fees for Federal Direct Loans..--
Notwithstanding subsection (c) of section 455 of the Higher
Education Act of 1965 (as amended by this Act) (20 U.S.C.
1087e(c)), the first sentence of such subsection shall be
applied by substituting ``1.0 percent'' for ``not less than 1
percent and not more than 3 percent'' with respect to loans
for which the first disbursement of principal is made on or
after July 1, 2007.
(c) Repeal of Origination Fees.--
(1) Amendments.--Sections 438(c) and 455(c) of the Higher
Education Act of 1965 (20 U.S.C. 1087-1(c), 1087e(c)) are
repealed.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect on July 1, 2011.
(d) Nonapplicability of Sunset Provision.--Section 7959
shall not apply to this section or to the amendments made by
this section.

SEC. 7958. AUTHORIZATION AND APPROPRIATION OF FUNDS.

There are authorized to be appropriated, and there are
appropriated, out of any money in the Treasury not otherwise
appropriated, $1,660,000,000 to carry out this subtitle, of
which--
(1) $450,000,000 shall be available to carry out section
7952;
(2) $10,000,000 shall be available to carry out section
7955; and
(3) $1,200,000,000 shall be available to carry out section
7956.

SEC. 7959. SUNSET PROVISION.

Except as otherwise provided in this subtitle, the
provisions of this subtitle shall be effective for the period
beginning on the date of enactment of this Act and ending on
August 1, 2006.
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