A bill to provide assistance to rebuild communities, schools, and hospitals damaged by Hurricane Katrina or Hurricane Rita, and for other purposes.

Directs the Secretary of Education to make grants for the 2005-2006 school year to eligible entities that serve students displaced by Hurricane Katrina or Hurricane Rita (a Gulf hurricane) who enroll in elementary or secondary, including charter, schools served by or in such entities. Makes eligible for such grants: (1) the Louisiana or Mississippi state educational agency; and (2) other states' local educational agencies, or schools funded by the Bureau of Indian Affairs, if they enroll displaced students.

Directs the Secretary to make one-time, emergency grants to state educational agencies to reimburse parents or guardians of displaced students who are attending private schools in such states for the 2005-2006 school year.

Authorizes the Secretary to make payments to state educational agencies or state agencies for higher education that serve a major disaster area related to a Gulf hurricane for: (1) restarting schools there; (2) assisting institutions of higher education there; and (3) assisting eligible private schools there.

Provides that, of the amounts made available to the Department of Homeland Security for disaster relief under Public Law 109-62, not less than $3.3 billion shall be available to the appropriate federal agency heads to carry out the programs and activities authorized by this Act.