Public Service Educational Assistance Act

This Act may be cited as the “Public Service Educational Assistance Act”.

(a) In General.— The Secretary shall establish a Public Service Educational Assistance Program to provide educational assistance to eligible dependents of public service employees.

(b) Educational assistance.— Educational assistance provided to an eligible dependent under this Act—

(1) shall be in an amount that covers the cost of tuition, fees, and course materials and related items described in section 472(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087ll(a)(2)) for a program of study at an applicable postsecondary educational institution located in a State where a dependent is eligible to receive in-State tuition; and

(2) may be provided for not longer than 4 academic years.

(c) Method of distribution.—

(1) In General.— The Secretary shall pay to each applicable postsecondary educational institution that has an agreement with the Secretary under paragraph (2) such sums as may be necessary to pay each eligible dependent described in subsection (a) for each period of time during which that eligible dependent is in attendance at an applicable postsecondary educational institution, an amount of educational assistance described in subsection (b) for which that eligible dependent is eligible.

(2) Agreements.— The Secretary shall enter into agreements with applicable postsecondary educational institutions that desire to participate in the distribution method described in paragraph (1) for funds under this section.

(3) Distribution of Grants to Dependents.— Payments under this section shall be made in accordance with regulations promulgated by the Secretary for such purpose, in such manner as will best accomplish the purpose of this section. Any disbursement allowed to be made by crediting the dependent’s account shall be limited to tuition and fees, and the cost of course materials and related items described in section 472(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087ll(a)(2)).

(a) Concurrent benefits.— A dependent may receive educational assistance under this Act concurrently with other forms of Federal student aid, including grants and loans under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), and other postsecondary education benefits under Federal, State, and local law.

(b) No effect on retirement or other benefits.— Educational assistance provided under this Act shall not be considered wages or compensation for purposes of determining eligibility for, or the amount of, any retirement or other employment-related benefit, or for other means-tested public benefits, except as otherwise provided by law.

(c) Tax treatment.— Educational assistance provided under this Act shall be exempt from taxation under the Internal Revenue Code of 1986.

The Secretary shall promulgate such regulations as are necessary to carry out this Act.

In this Act:

(1) Applicable postsecondary educational institution.— The term “applicable postsecondary educational institution” means—

(A) a public institution of higher education; or

(B) a public education or training program that leads to a recognized postsecondary credential.

(2) Dependent.— The term “dependent” has the meaning given such term in section 152 of the Internal Revenue Code of 1986 (determined by substituting “26” for “19” in subsection (c)(3)(A)(i) thereof and without regard to subsection (c)(3)(A)(ii) thereof).

(3) Educator or teacher.— The term “educator or teacher” means an individual who is not an elected official and who is employed at a public elementary school, a public secondary school, a public school system, a State educational agency, or a local educational agency.

(4) Elementary school; local educational agency; secondary school; State educational agency.— The terms elementary school, local educational agency, secondary school, and State educational agency have the meanings given such terms in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).

(5) Eligible dependent.— The term eligible dependent means a dependent of a public service employee who—

(A) on or after the effective date of this Act, has not less than 20 years of service as a public service employee, in the aggregate; and

(B) was a public service employee on the date of enactment of this Act, or began service as a public service employee after the date of enactment of this Act.

(6) First responder.— The term “first responder” includes a law enforcement officer or firefighter, including—

(A) an employee of a government prosecutorial agency or a public defender;

(B) a public safety telecommunicator, including a 911 operator or a fire dispatcher;

(C) an emergency medical services member;

(D) an employee of the Federal Emergency Management Agency;

(E) an employee of a State, local, or tribal emergency management agency; or

(F) a Department of Energy nuclear courier or emergency response team member.

(7) Institution of higher education.— The term “institution of higher education” has the meaning given such term in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002).

(8) Means-tested public benefit.— The term means-tested public benefit means a public benefit (including cash, medical, housing, and food assistance and social services) from the Federal Government or from a State or political subdivision of a State in which the eligibility of an individual, household, or family eligibility unit for benefits, the amount of such benefits, or both are determined on the basis of income, resources, or financial need of the individual, household, or family eligibility unit.

(9) Public service employee.— The term “public service employee” means an employee who works full-time—

(A) as a first responder;

(B) as an educator or teacher; or

(C) as a social worker.

(10) Recognized postsecondary credential.— The term “recognized postsecondary credential” has the meaning given such term in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102).

(11) Secretary.— The term “Secretary” means the Secretary of Education.

This Act shall take effect on the date that is 1 year after the date of enactment of this Act