Stable Transition in Education for Armed Services' Dependent Youth Act

Stable Transitions in Education for Armed Services' Dependent Youth Act - Directs the Secretary of Defense to establish a five-year demonstration program for competitive matching grants to eligible State educational agencies (SEAs) for subgrants to eligible local educational agencies (LEAs) to establish and maintain high quality military charter schools as independent public elementary or secondary schools in areas of greatest need. Requires the commander of each military installation served by such a school to establish a nonprofit corporation or an oversight group to provide the applicable LEA with oversight and guidance regarding the day-to-day operations of the school.

Amends the Elementary and Secondary Education Act of 1965 to direct the Secretary of Education to award at least four grants in each fiscal year to establish or improve innovative credit enhancement initiatives that assist military charter schools in acquiring, constructing, and renovating facilities. Requires such grants to be made to eligible entities, which may be a public entity such as a military installation, a private nonprofit entity, or a consortium of those two types of entities.

Includes among requirements for military charter schools: (1) an admissions policy providing for at least 60 percent and at most 80 percent military dependent students, except where such percentages are impossible to maintain because of the demographics of the area around the military installation; (2) an intensive high-quality program including practices relating to the academic-passport concept to ease transitions for mobile students; and (3) a curriculum aligned with State student performance standards which may incorporate a curriculum from the Department of Defense Education Activity.