National Education Investment Act

National Education Investment Act - Title I: Grants for Construction and Acquisition of Facilities and Equipment for Schools Serving Children of Low-Income Families - Elementary and Secondary School Construction Act - States that it is the policy of the United States to provide financial assistance to local educational agencies serving areas with concentrations of children from low-income families to construct, reconstruct, renovate, and improve elementary and secondary school facilities so as to more effectively meet the special educational needs of educationally deprived children.

Authorizes the Commissioner of Education to make payments to State educational agencies for a grant to local educational agencies for the period beginning July 1, 1973, and ending June 30, 1977. Specifies a formula by which the Commissioner shall determine the maximum grant which a local educational agency shall be eligible to receive under this title. Sets forth requirements which such an agency must meet to be eligible for a grant under this title.

Provides that a local educational agency may receive a grant under this title upon the approval of its application by the State educational agency.

Requires each State which desires to participate in the program under this title to submit an application to the Commissioner which satisfies the requirements set forth in this title. Provides that the Commissioner shall not finally disapprove an application except after reasonable notice and opportunity for a hearing.

Denies the payment of funds under this title to any State which considers payments under this title in determining the eligibility of any local educational agency in that State for State aid. Provides that the combined State and local educational agency expenditures for the provision of free public education for any fiscal year in which funds are received under this title shall be at least equal to such combined effort for fiscal year 1972.

Title II: Loan Guarantees and Interest Subsidies for Construction and Acquisition of Facilities for Elementary and Secondary Schools - Authorizes the Commissioner, in order to assist State and local educational agencies to carry out the acquisition and construction of facilities for elementary and secondary schools, to: (1) guarantee to non-Federal lenders making loans to such agencies the payment of principal and interest on such loans which are approved under this title; and (2) pay to the holder of such loans amounts sufficient to reduce the net effective interest rate otherwise payable on such loans by up to 3 percent.

Provides that no loan guarantee or interest subsidy shall be made under this title unless the Commissioner finds: (1) that the applicant was unable to secure the amount of such loan at equally favorable rates and conditions, and (2) that the construction will be undertaken in an economical manner.

Establishes an Elementary and Secondary School Facility Construction and Acquisition Loan Guarantee and Interest Subsidy Fund in the Treasury. States that such funds shall be available to the Commissioner to enable him to discharge his responsibilities under this title. Authorizes the Commissioner to issue notes or other obligations to the Secretary of the Treasury to enable him to discharge his responsibilities if there are insufficient moneys in the fund.

Authorizes to be appropriated to the fund not more than $2,500,000 for each of the fiscal years 1974 and 1975.

Title III: National Educational Trust Fund - Creates the National Educational Trust Fund in the Treasury of the United States. Authorizes to be appropriated to the fund not more than $10,000,000,000 for fiscal year 1974, and not more than $10,000,000,000 for fiscal year 1975. States that it shall be the duty of the Secretary of the Treasury to invest such portion of the fund as is not, in his judgment, required to meet current withdrawals.

Authorizes the Secretary to make and to contract to make payments from the fund to applicants in order to enable such applicants to substantially reduce or eliminate the taxation of real property for the purpose of financing elementary and secondary education. Specifies the amount of payments under this title to any applicant for any fiscal year.

States that, in order to be eligible to receive payments under this title, an applicant shall provide satisfactory assurances to the Secretary that: (1) it will eliminate the taxation of real property for the purpose of financing elementary and secondary education on the first $30,000 of all resident owned domiciles in which the head of the household or immediate survivor is receiving social security, railroad retirement, veteran's pension and/or disability benefits or equivalent retirement benefits as the major source of income; and (2) it will reduce the taxation of real property of all resident owned domiciles to not more than 5 percent of the national adjusted average tax rate on real property for the purpose of financing elementary and secondary education.

Requires the Secretary to report to the Congress not later than March 1 of each year on the status and operation of the fund during the preceding fiscal year.

Title IV: Department of Education - Establishes the Department of Education which shall be headed by a Secretary of Education, who shall be appointed by the President, by and with the advice and consent of the Senate. States that the function and purpose of the Department shall be to promote the cause and advancement of education throughout the Nation.

Transfers to the Department, the United States Office of Education and other additional educational functions of the Secretary of Health, Education, and Welfare. Specifies other functions of the Government which shall be transferred to the Department. Authorizes the President to transfer to the Department, any other agency or instrumentality of the Government which he determines has functions relating to education and should be transferred to promote efficiency in Government and to carry out the purpose of this Act.

Establishes a Federal Interagency Committee on Education which shall study and recommend such actions as may be necessary to assure effective coordination of Federal programs affecting education. Sets forth the membership of the Committee.

Establishes a National Advisory Commission on Education composed of fifteen members appointed by the President, by and with the advice and consent of the Senate. Provides that the Commission shall: (1) review the administration of, general regulations for, and operation of Federal education programs; (2) advise the Secretary and other Federal officials with respect to the educational needs and goals of the Nation and assess the progress of appropriate agencies, institutions, and organizations of the Nation in order to meet those needs and achieve those goals; (3) conduct objective evaluations of specific education programs and projects in order to ascertain the effectiveness of such programs and projects in achieving the purpose for which they are intended; (4) make recommendations (including recommendations for changes in legislation) for improvement of the administration and operation of Federal education programs; (5) consult with Federal, State, and local and other educating agencies, institutions, and organizations with respect to assessing education in the United States and the improvement of the quality of education; (6) conduct national conferences on the assessment, improvement, and renewal of education in which national and regional education associations and organizations, State and local education officers and administrators, and other education related organizations, institutions, and persons may exchange and disseminate information on the improvement of education; (7) conduct, and report on, comparative studies and evaluations of education systems in foreign countries; and (8) advise and assist in the coordination of all the advisory bodies to Federal education programs.

Requires the Secretary to make an annual report to the President for submission to the Congress on the activities of the Department during the preceding calendar year. Authorizes to be appropriated such sums as may be necessary to enable the Department to carry out the provisions of this title and to perform other duties which may be imposed upon it by law.