Purpose: The purpose of the act is to provide low-income parents residing in DC, particularly parents of students who attend elementary or secondary schools identified for improvement, corrective action, or restructuring under Title I, with expanded opportunities for enrolling their children in higher-performing private elementary or secondary schools in DC.

Size of Scholarships: up to $7,500 per year, to cover tuition, fees, and transportation expenses of enrolling in a DC private school of the student's choice. Students with the greatest need may receive larger scholarships than others. Schools may charge scholarship students no more than the amount of tuition or fees that the school customarily charges to students who do not participate in the program.

Amount of federal funding: The act authorizes $15 million for FY 2004 and "such sums as may be necessary" for each of the 4 succeeding fiscal years.

Eligible students: The act defines "eligible student" as a student who is a resident of DC and who comes from a household whose income does not exceed 185 percent of the poverty line applicable to a family of the size involved. The act gives priority to eligible students who attend an elementary or secondary school identified for improvement, corrective action, or restructuring under Title I. If more eligible students seek admission to a school than can be accommodated, students would be selected by lottery.

Civil Rights: The act forbids discrimination in the administration of the program, on the basis of race, color, national origin, or sex. The prohibition of sex discrimination does not apply to a school that is controlled by a religious organization if it is inconsistent with the religious tenets of the school. The Act also permits single-sex schools, classes, and activities, and does not alter or modify the provisions of IDEA.

Entity (or entities) administering the program: The Department would make one or more competitive grants to an entity of the DC Government, a nonprofit organization, or a consortium of nonprofit organizations to operate the program. In conducting the competition, the Secretary would give priority to entities that will most effectively serve students attending Title I schools in improvement, target resources on low-income families, provide families with a wide range of choices, and serve students of varying age and grade levels. Grants are authorized for up to 5 years. Up to 3 percent of grants may be used for administrative expenses.

Grantee reports: Grantees must submit annual reports and a final report on academic achievement, graduation and college admission rates, and parental satisfaction. The Secretary must submit to Congress an annual report on the findings of reports from grantees.

Evaluations: The Secretary must conduct an evaluation on academic achievement; expanding choice options; the reasons parents choose; retention and dropout rates; graduation and college admission rates; effects on public schools; safety; and other issues. The Secretary must submit to Congress annual interim reports and a final report. Up to 3 percent of the grant may be spent for evaluation.

School reports to parents: Participating schools must report to parents at least once a year on the student's academic achievement and the safety of the school.