Public Service Educational Assistance Act

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

(a) Establishment. The Secretary shall establish a Public Service Educational Assistance Program to provide educational assistance to each dependent of each public service employee who, on or after the effective date of this Act, has at least 20 years of service as a public service employee, in the aggregate, and who 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.

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

(1) shall be in an amount that covers the cost of tuition, fees, and books 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.

(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, 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.

This Act shall take effect on the date that is 1 year after the date of enactment of 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; 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) 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.

(6) Full-time. The term full-time means an employee who is employed at least 40 hours in a workweek.

(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) 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.

(9) 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).

(10) Secretary. The term Secretary means the Secretary of Education.

(11) Social worker. The term social worker means an employee of a government entity that provides mental health services or child welfare services.