National Foundation for Excellence Act

National Foundation for Excellence Act - Establishes the National Foundation for Excellence, as an independent establishment of the executive branch.

Sets forth the membership of the Board of Directors of the Foundation.

Authorizes the Foundation to award scholarships for undergraduate and graduate study for outstanding students committed to careers in teaching in public education. Sets forth rules for courses of study and for duration of scholarship assistance.

Provides for eligibility, selection, and number of recipients of such scholarships (Foundation scholars).

Provides for scholarship stipends and limitations on total assistance to any recipient.

Sets forth scholarship conditions, including reporting requirements and student agreements to teach in a public elementary or secondary school for a certain period of years based on the total amount of scholarship awarded.

Sets forth scholarship repayment requirements for those who do not fulfill such teaching commitments or who otherwise do not comply with the provisions of this Act.

Sets forth exceptions to such repayment provisions, including deferrals during certain periods and forgiveness in the event of permanent total disability.

Authorizes the Foundation to make grants to States to pay the Federal share (50 percent) of scholarship programs conducted by the States in accordance with this Act. Sets forth application requirements.

Establishes in the Treasury the National Foundation for Excellence Trust Fund, consisting of appropriations under this Act and amounts raised from non-Federal sources by the Foundation. Directs the Secretary of the Treasury to invest in full any amounts appropriated to the Fund, but only in interest-bearing obligations of the United States or obligations guaranteed as to both principal and interest by the United States.

Directs the Board to make an annual report of its operations to the Congress by April 1 of each year. Sets forth required contents of such report.

Authorizes appropriations to the Fund. Authorizes appropriations to the Foundation for each of FY 1988 through 1993 for operating and administrative expenses with remaining monies left in the Fund. Authorizes appropriations for the period of FY 1989 through 1993, but makes matching funds available in each such fiscal year only in an amount equal to that raised from non-Federal sources by the Foundation in each such fiscal year.