To provide assistance for elementary and secondary schools and students, and institutions of higher education, affected by Hurricane Katrina.

SA 2404. Mr. ENSIGN (for himself, Mr. Santorum, and Mr. Kyl) proposed
an amendment to amendment SA 2352 proposed by Mr. Enzi (for himself,
Mr. Kennedy, Mr. Alexander, Mr. Dodd, Ms. Landrieu, Mr. Cochran, Mr.
Lott, and Mrs. Hutchison) 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:

Strike all after the first word of the amendment and insert
the following:

D--Hurricane Katrina Education Relief

SEC. 7951. SHORT TITLE.

This subtitle may be cited as the ``Hurricane Katrina
Education Relief Act''.

SEC. 7952. 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
nonpublic 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. 7953. WAIVERS AND OTHER ACTIONS.

(a) In General.--If the Secretary of Education determines
that it is necessary, in order to provide assistance as
efficiently and expeditiously as possible to students, local
educational agencies, institutions of higher education,
States, or other individuals or entities affected directly or
indirectly by Hurricane Katrina, the Secretary may waive or
modify, on a case-by-case basis, any requirement of Federal
law or regulation that the Secretary administers or enforces
(other than a law or regulation of Government-wide
applicability or regarding civil rights or safety). The
waivers or modifications that the Secretary of Education may
issue include extending program reporting deadlines or
allowing States, local educational agencies, and institutions
of higher education to use funds more broadly to help
displaced students.
(b) Effective Period.--No waiver or modification issued
pursuant to subsection (a) shall be in effect after September
30, 2006.
(c) Report on Waivers.--
(1) Initial report.--Not later than 1 month after the date
of enactment of this Act, the Secretary of Education shall
prepare and submit a report on the States and local
educational agencies requesting a waiver of any provision
under the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6301 et seq.) and the Individuals with Disabilities
Education Act (20 U.S.C. 1400 et seq.) due to the impact of
Hurricane Katrina to the Committee on Education and the
Workforce and the Committee on Appropriations of the House of
Representatives and the Committee on Health, Education,
Labor, and Pensions and the Committee on Appropriations of
the Senate.
(2) Follow-up report.--Not later than 3 months after
September 30, 2006, the Secretary of Education shall prepare
and submit a report describing the waivers that were granted
under this subtitle, and the impact of such waivers, to the
Committee on Education and the Workforce and the Committee on
Appropriations of the House of Representatives and the
Committee on Health, Education, Labor, and Pensions and the
Committee on Appropriations of the Senate.

SEC. 7954. IMMEDIATE AID TO RESTART SCHOOL OPERATIONS.

(a) Purpose.--It is the purpose of this section--
(1) to provide immediate and direct assistance to
institutions of higher education and 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 administrators and personnel of such
institutions and agencies who are working to restart
operations;
(3) to facilitate the reopening of, and the re-enrollment
of students in, institutions of higher education and
elementary schools and secondary schools served by local
educational agencies; and
(4) to assist institutions of higher education, elementary
schools, and secondary schools in restoring operations
disrupted by Hurricane Katrina.
(b) Grants Authorized.--From amounts appropriated to carry
out this section, the Secretary of Education is authorized to
make competitive grants--
(1) to institutions of higher education (as defined in
section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001)), 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; and
(2) 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 those agencies to award subgrants, pursuant
to subsection (d), 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) Amount of Grants.--In determining the amount of a grant
under this section, the Secretary of Education shall take
into consideration--
(1) the number of schools and institutions of higher
education in the State affected by Hurricane Katrina;
(2) the number of students in the State affected by
Hurricane Katrina;
(3) the severity of the damage inflicted upon the affected
schools and affected institutions; and
(4) the estimated length of time to restore operations at
the affected schools and affected institutions.
(d) Subgrants.--
(1) Applications.--Each local educational agency desiring a
subgrant 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.
(2) Eligibility and consideration.--In determining whether
to award a subgrant under this section, or the amount of the
subgrant, the State educational agency shall consider the
following:
(A) 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.
(B) 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 the State 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.
(e) Uses of Funds.--
(1) In general.--An institution of higher education
receiving a grant, or a local educational agency receiving a
subgrant, under this section shall use the subgrant funds
for--
(A) recovery of student and personnel data, and other
electronic information;
(B) replacement of information systems, including hardware
and software;
(C) financial operations;
(D) reasonable transportation costs for students;
(E) rental of mobile educational units and leasing of
neutral sites or spaces;
(F) initial replacement of instructional materials and
equipment, including textbooks;

[[Page S12361]]

(G) redeveloping instructional plans, including curriculum
development;
(H) initiating and maintaining education and support
services; or
(I) such other activities related to the purpose of this
section that are approved by the Secretary of Education.
(2) Use with other available funds.--An institution of
higher education receiving a grant, or a local educational
agency receiving a subgrant, under this section may use such
funds in coordination with other Federal, State, or local
funds available for the activities described in paragraph
(1).
(3) Prohibitions.--Grant funds or subgrant funds received
under this section shall not be used for either of the
following:
(A) Construction or major renovation of schools or
institutions of higher education.
(B) Payments to administrators, faculty, or teachers who
are not actively engaged in--
(i) restarting or re-opening schools or institutions of
higher education; or
(ii) restoring operations of schools or institutions of
higher education.
(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 or institution of higher
education that is or may be entitled to receive, from another
source, benefits for the same purposes as under this section
if such agency or institution--
(A) has not received such other benefits by the time of
application for Federal assistance under this section; and
(B) agrees to repay all duplicative Federal assistance
received to carry out the purposes of this section.
(g) Authorization of Appropriations.--There is authorized
to be appropriated, and there is appropriated, out of any
money in the Treasury not otherwise appropriated,
$450,000,000 to carry out this section.

SEC. 7955. HOLD HARMLESS FOR AGENCIES SERVING MAJOR DISASTER
AREAS.

(a) Local Educational Agencies and Title I of ESEA Funds.--
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.
(b) State Educational Agencies and IDEA Funds.--In the case
of a State 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 State educational agency under the
Individuals with Disabilities Education Act (20 U.S.C. 1400
et seq.) for fiscal year 2006 shall be not less than the
amount made available for such State educational agency under
such Act for fiscal year 2005.

SEC. 7956. 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 that agency who is not highly
qualified in the State in which the 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)), through
the last day of the 2005-2006 school 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) Paraprofessionals.--
(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, through the last
day of the 2005-2006 school 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. 7957. 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), (d)(2), 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),
(d)(2), and (e)(1), 11433(b) and (c)) shall not apply.
(2) Disbursement.--The Secretary of Education shall
disburse funds under subsection (a) to State educational
agencies based on demonstrated need, as determined by the
Secretary, and those State educational agencies shall
distribute funds available under subsection (c) 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).
(3) Authorization of appropriations.--There is authorized
to be appropriated, and there is appropriated, out of any
money in the Treasury not otherwise appropriated, to carry
out this section $10,000,000.

SEC. 7958. GENERAL PROVISION.

Nothing in sections 7951 through 7957 of this subtitle
shall be construed to permit discrimination on the basis of
race, color, religion, sex (except as otherwise permitted
under title IX of the Education Amendments of 1972 (20 U.S.C.
1681 et seq.)), national origin, or disability in any program
funded under sections 7951 through 7957 of this subtitle.

SEC. 7959. TEMPORARY EMERGENCY IMPACT AID FOR DISPLACED
STUDENTS.

(a) Temporary Emergency Impact Aid Authorized.--
(1) Aid to state educational agencies.--From amounts
appropriated under subsection (o), the Secretary of Education
shall provide emergency impact aid to State educational
agencies to enable the State educational agencies--
(A) to make emergency impact aid payments to eligible local
educational agencies and eligible BIA-funded schools to
enable those eligible local educational agencies and schools
to provide for the instruction of displaced students served
by the agencies and schools; and
(B) to make immediate impact aid payments to individual
accounts established on behalf of displaced students who are
attending eligible nonpublic schools located within the
State.
(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
those States for which the State exercises the authorities
normally exercised by the local educational agencies.
(b) Definitions.--In this section:
(1) Child with a disability.--The term ``child with a
disability'' has the meaning given the term in section 602 of
the Individuals with Disabilities Education Act (20 U.S.C.
1401).
(2) Displaced student.--The term ``displaced student''
means a student who enrolls in a school (other than the
school that the student was enrolled in, or was eligible to
be enrolled in, on August 22, 2005), and who 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.
(3) Eligible local educational agencies.--The term
``eligible local educational agency'' means a local
educational agency

[[Page S12362]]

that serves an elementary school or secondary school
(including a charter school) in which there is enrolled a
displaced student.
(4) Eligible nonpublic school.--The term ``eligible
nonpublic school'' means a nonpublic school that--
(A) operates in accordance with State law or is accredited
or licensed;
(B) was in existence on August 22, 2005; and
(C) serves a displaced student.
(5) 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, which shall include--
(A) information on the 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) information on the child count of the State of
displaced students enrolled in eligible nonpublic schools;
(C) a description of how parents and guardians will be
notified of their options for enrolling their children in
public or nonpublic schools in the State;
(D) a description of the process by which parents and
guardians may apply for payment through individual accounts,
including the information such parents and guardians will be
required to provide such State educational agency;
(E) a description of the procedure to be used by such State
educational agency to provide payments to parents and
guardians through individual accounts;
(F) a description of the process to be used by such State
educational agency to obtain attestations of attendance of
displaced students from eligible nonpublic schools, in order
for such agency to provide payments to parents and guardians
through individual accounts; and
(G) a description of how such State educational agency will
prioritize funding for displaced students attending eligible
nonpublic schools, if necessary, including any criteria such
as household income.
(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 for each quarter of the 2005-2006 school year that
indicates the following:
(A) In the case of an eligible local educational agency,
the number of displaced students enrolled in the elementary
schools and secondary schools (including charter schools),
including the number of displaced students who are identified
as children with disabilities and are served under part B of
the Individuals with Disabilities Education Act (20 U.S.C.
1411 et seq.), served by such agency.
(B) In the case of an eligible BIA-funded school, the
number of displaced students, including the number of
displaced students who are identified as children with
disabilities and are served under part B of the Individuals
with Disabilities Education Act (20 U.S.C. 1411 et seq.),
enrolled in such school.
(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 number of displaced students (who are not
identified as children with disabilities and 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), and the number of such
displaced students enrolled in eligible nonpublic schools in
the State whose parents or guardians request payments
pursuant to this section, times $6,000; and
(ii) the number of displaced students who are identified as
children with disabilities and 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), and the
number of such displaced students enrolled in eligible
nonpublic schools in the State whose parents or guardians
request payments pursuant to this section, 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; payments to individual accounts.--
(A) In general.--A State educational agency that receives
emergency impact aid under this subtitle shall provide
payments under this section to eligible local educational
agencies and eligible BIA-funded schools (as provided under
subparagraph (B)), and to the individual accounts on behalf
of displaced students enrolled in eligible nonpublic schools
(as provided under subparagraph (C)) whose parents or
guardians have requested such funds in accordance with
subsection (e)(2), for the 2005-2006 school year by such
dates as determined by the Secretary of Education. The
Secretary of Education shall establish a timeline for
reporting on the number of displaced students for each
quarter in order to make the appropriate disbursements in a
timely manner.
(B) Payments to eligible local educational agencies and
eligible bia-funded schools.--
(i) In general.--Payments to eligible local educational
agencies and eligible BIA-funded schools shall be based on
the number of displaced students reported for each quarter
under subsection (c)(2) and in the amount determined under
clause (ii).
(ii) Payment amount.--Each payment under clause (i) shall
equal 25 percent of the sum of--

(I) the number of displaced students (who are not
identified as children with disabilities and 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 each
quarter (as determined under subsection (c)(2)) times $6,000;
and
(II) the number of displaced students who are identified as
children with disabilities and 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 each quarter (as determined
under subsection (c)(2)) times $7,500.

(iii) Insufficient funds.--If 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 for any quarter under this section, the State
educational agency shall ratably reduce the amount of the
payments.
(C) Payments to individual accounts.--
(i) In general.--A State educational agency shall make
payments to an individual account on behalf of a displaced
student for each quarter for which the displaced student is
enrolled in an eligible nonpublic school in the amount
determined under clause (ii).
(ii) Payment amount.--Each payment under clause (i) shall
equal 25 percent of the lesser of--

(I) $6,000; or
(II) the total amount of tuition, fees, and transportation
costs, if any, of the displaced student for the 2005-2006
school year.

(iii) Maximum amount.--In providing payments to an
individual account for the 2005-2006 school year on behalf of
a displaced student, a State educational agency may provide
not more than 4 quarterly payments to such account.
(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-
(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, academic counseling,
supplemental educational services, or after-school programs;
(D) reasonable transportation costs for students;
(E) health services (including counseling); and
(F) alternative education services.
(2) Displaced students in nonpublic schools.--
(A) In general.--A State educational agency that receives
emergency impact aid under this section shall, at the request
of the parent or guardian of a displaced student who enrolls
in an eligible nonpublic school in the State, use such
emergency impact aid to provide payment on a quarterly basis,
in accordance with subsection (d)(2)(C), to an individual
account on behalf of such displaced student. Payment shall be
by individual check made payable to the displaced student's
parent or guardian and mailed by the State educational agency
to the eligible nonpublic school of the parent or guardian's
direction and the parent or guardian shall restrictively
endorse the check to such eligible nonpublic school.

[[Page S12363]]

(B) Use of funds.--An eligible nonpublic school that
receives a check pursuant to subparagraph (A) may use the
funds for--
(i) paying the compensation of personnel, including teacher
aides;
(ii) identifying and acquiring curricular material,
including the costs of providing additional classroom
supplies, and mobile educational units and leasing sites or
spaces;
(iii) basic instructional services for the displaced
students, including tutoring, mentoring, academic counseling,
or after-school programs;
(iv) reasonable transportation costs for the displaced
students;
(v) health services (including counseling);
(vi) education and support services; and
(vii) alternative education services.
(3) Provision of special education and related services.--
(A) In general.--In the case of a displaced student who is
identified as a child with a disability and 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.--Notwithstanding any other provision of
this section, a State educational agency may provide payment
to an eligible local educational agency that provides
services to a displaced student attending an eligible
nonpublic school under section 612(a)(10) of the Individuals
with Disabilities Education Act (20 U.S.C. 1412(a)(10)) in an
amount that is not more than $1,500 per displaced student
served.
(C) Special education; related services.--In this
paragraph, 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).
(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 be used only 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.
(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) Termination of Authority.--The authority provided by
this section shall terminate on August 1, 2006.
(k) By-Pass.--If a State educational agency is unable or
unwilling 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 nonpublic
school in the State. For a State in which State law prohibits
the State from using Federal funds to directly provide
services on behalf of students attending nonpublic 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 State educational agency may provide
payment under this section to the parent or guardian of a
displaced student who enrolls in an eligible nonpublic school
in the State only if the eligible nonpublic school selected
by the student provides assurances that it does not
discriminate against participating displaced students on the
basis of race, color, national origin, religion, or sex.
(2) Applicability and single-sex schools, classes, or
activities.--
(A) In general.--Notwithstanding any other provision of
law, the prohibition of sex discrimination in paragraph (1)
shall not apply to a nonpublic school that is operated by,
controlled by, or connected to a religious organization to
the extent that the application of paragraph (1) is
inconsistent with the religious tenets or beliefs of the
school.
(B) Single-sex schools, classes, or activities.--
Notwithstanding paragraph (1) or any other provision of law,
a parent or guardian may choose, and a nonpublic school may
offer, a single-sex school, class, or activity.
(3) General provision.--Nothing in this section may be
construed to alter or modify the Individuals with
Disabilities Education Act (20 U.S.C. 1400 et seq.).
(4) Rule of construction.--Payments made to an individual
account (or any other form of support provided to students
under this section) under this section shall be considered
assistance to the student and shall not be considered
assistance to the school that enrolls the student. 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.
(5) Religiously affiliated schools.--
(A) In general.--Notwithstanding any other provision of
law, an eligible nonpublic school participating in any
program under this subtitle that is operated by, supervised
by, controlled by, or connected to, a religious organization
may exercise its rights in matters of employment consistent
with title VII of the Civil Rights Act of 1964 (42 U.S.C.
2000e et seq.), including the exemptions provided under such
title.
(B) Maintenance of purpose.--Notwithstanding any other
provision of law, funds made available under this section to
displaced students that are received by an eligible nonpublic
school, as a result of the student's parent or guardian's
choice, shall not, consistent with the first amendment of the
United States Constitution, necessitate any change in the
eligible nonpublic school's teaching mission, require any
eligible nonpublic school to remove religious art, icons,
scriptures, or other symbols, or preclude any eligible
nonpublic school from retaining religious terms in its name,
selecting its board members on a religious basis, or
including religious references in its mission statements and
other chartering or governing documents.
(C) Rule of construction.--For purposes of this section,
the provisions of section 909 of the Education Amendments of
1972 (20 U.S.C. 1688) shall apply to this section as if
section 909 of the Education Amendments of 1972 (20 U.S.C.
1688) were part of this section.
(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.
(n) Return of Unexpended Funds.--The Secretary of Education
shall return to the Treasury any funds appropriated under
this section that are unexpended or unobligated by September
30, 2006.
(o) Authorization of Appropriations.--There is authorized
to be appropriated, and there is appropriated, out of any
money in the Treasury not otherwise appropriated,
$1,200,000,000 to carry out this section.

SEC. 7960. LIMITATION ON USE OF FUNDS.

Aid, payments, assistance, or other funding provided under
this subtitle shall be used only for expenses incurred during
the 2005-2006 school year.

SEC. 7961. 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 30, 2006.
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