Requires each grantee State to provide scholarships (at $2,000 per year, but with continuing awards) to the parents of eligible children through a lottery system administered for all eligible schools by the State educational agency. Requires that a child eligible for such a scholarship be: (1) enrolled in an eligible public elementary or secondary school; and (2) a member a family with income not more than 200 percent of the poverty line.
Allows the use of such funds for: (1) payment of tuition and fees at the school selected by the scholarship child's parents, plus reasonable transportation costs; (2) up to $500 of supplementary academic services, if the parents choose a provider (with an appropriate refund policy) which the State determines capable of rendering such services; and (3) educational programs that help the child achieve high levels of academic excellence, if the child chooses to attend a public school.
Requires: (1) a grantee State to allow lawfully operating public and private elementary and secondary schools serving the area involved, including religious schools, to participate in the program; (2) participating schools or providers of supplementary academic services to comply with specified antidiscrimination requirements; and (3) national evaluation of the program by the Comptroller General.
Directs specified congressional committees to identify, and report to certain congressional leaders on, wasteful Federal spending (including loopholes to revenue raising tax provisions) as a means of providing funding for this Act.