Emanuel Introduces “Pell Grants for Kids” Bill
Legislation Provides $300 million for Program

WASHINGTON, D.C.—Today, U.S. Representative Rahm Emanuel (IL) introduced a bill which would authorize $300 million in new funding for children in Title I schools that are being restructured under No Child Left Behind due to low performance or high schools with significant drop-out rates.  Under the Pell Grants for Kids Act, children attending one of these schools could transfer to a nearby charter school. Emanuel announced his plans to introduce this bill last month. 

“When it comes to education, parents and students deserve to have a choice.  Charter schools offer students and parents high quality, innovative public school education,” said Emanuel.

Under the President’s budget proposal, $300 million would go towards a school choice program that would provide funds for students in low-performing schools to switch to either out-of-district public schools or nearby private schools.  Under the Emanuel school choice proposal, that funding would remain in the public school setting and go towards public charter schools. Specifically, the bill, which enhances the choice option that is current law, would:

Establish Grants: Emanuel’s bill would establish a competitive grant program at the Department of Education where state education agencies, local education agencies and authorized public chartering agencies can apply for funding to increase the supply of high quality public charter schools.  
Increase Enrolment: The bill would support increased enrollment at eligible public charter schools by children currently enrolled in Title-1 schools that are being restructured or whose graduation rate is less than 60%, who choose to transfer to the eligible public charter school.  
Expand Schools: The Pell Grants for Kids Act would support the expansion of schools and campuses, hire additional teachers and support necessary operation activities associated with additional students.
Create New Schools: Emanuel’s bill would facilitate the creation of new schools and campuses targeted to serving eligible students. 
Create New Enrollment System: Emanuel’s bill would create a new enrollment system for eligible students to attend the new or expanding charter schools.

“Instead of taking money out of the public schools, we need to expand school choice options within public schools,” said Emanuel. 

Charter schools are public schools that are open to all students, regardless of income, gender, race, or religion. They are independently designed and operated and committed to improving the academic achievement of every student. Today, approximately 1.2 million children in 40 states and Washington, D.C. attend one of 4,200 charter schools.

Because they are schools of choice, charter schools are highly responsive to the needs of students and communities.  Charter schools have become an extremely appealing alternative for families from all backgrounds. In fact, throughout their 17 year history, charter schools have stood at the center of our nation's growing effort to reform and improve public education and provide greater educational options to all families, especially low-income and minority families who have been underserved by the traditional system

“Representative Emanuel’s Pell Grants for Kids will create a new education pathway for children trapped in struggling public schools. By focusing on replicating and establishing new high quality public charter schools, this legislation affords students with limited educational options an opportunity to succeed in robust new public schools of choice,” said Nelson Smith, President of the National Alliance for Public Charter Schools.

Charter schools have been very successful in the City of Chicago.  There are 27 charter schools in the Chicago area operating 47 campuses, with another 12 on the way next fall. In Chicago, charter school graduation rates totaled 89 percent in 2006. Charter schools are in high demand in the City of Chicago, with thousands of students are on the waiting list.

The Pell Grants for Kids Act is paid for by enacting the Fair Share Act of 2008 – a bill to end the practice of U.S. government contractors setting up shell companies in foreign jurisdictions to avoid payroll taxes.  The Fair Share Act amends the Internal Revenue Code and the Social Security Act to treat foreign subsidiaries of U.S. companies performing services under contract with the United States government as American employers for the purpose of Social Security and Medicare payroll taxes.  The legislation will apply to foreign subsidiaries of a U.S. parent.  The degree of common ownership applied by the legislation is 50 percent, meaning that the U.S. parent would have to at least own 50 percent of the subsidiary.