Public and Private Education Assistance Act

Public and Private Education Assistance Act - Title I: Payments to States for Public Elementary and Secondary Education - Directs the Secretary of Health, Education, and Welfare to make payments from the Public Education Trust Fund, established by this Act, to each State for use as public education equalization expenditures.

Defines public education equalization expenditures as payments made by a State under a program for the purpose of equalizing educational opportunities of public school students in the State.

Requires such expenditures to be made under a qualified program.

Entitles each State to receive from the Trust Fund amounts equal to expenditures made by such State for the equalization of public education, except: (1) if the total payments required to be made from the Trust Fund exceed the appropriated amount, the amount of payments to be received by each State shall be reduced proportionately; and (2) a State's payment may not exceed ten percent of the total non-Federal funds spent by the State on public elementary and secondary education.

Appropriates $2,250,000,000 for the fiscal year beginning October 1, 1977, and $2,250,000,000 for each year thereafter for deposit in the Trust Fund.

Requires each State to comply with standards prescribed by the Secretary, including: (1) a separate trust fund must be established and all funds received under this Title must be deposited in such trust; (2) funds received under this Title can only be used for high priority equalization expenditures; (3) any funds expended improperly under the high priority requirement and not promptly repaid must be repaid 110 percent; and (4) proper fiscal, accounting, and audit procedures must be utilized, the Secretary or Comptroller General must be provided access to any material necessary for receiving a State's compliance with this requirement, and the State must file such reports as the Secretary may reasonably require.

Permits the Secretary to withhold funds under this Title if he determines that a State is in substantial noncompliance with this Title. Sets forth the procedures that must be followed before any funds can be withheld.

Provides that no person in the United States shall on the ground of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this Title. Authorizes the Secretary to (1) refer any discrimination violations to the Attorney General; (2) exercise the powers and functions provided by the Civil Rights Act relating to federally assisted programs; or (3) take any other actions provided by law.

Grants to the United States Courts of Appeals the power to review the decision of the Secretary to withhold payments under this Title.

Title II: Credit Against the Individual Income Tax for Tuition Paid for the Elementary or Secondary Education of Dependents - Allows as a credit under the Internal Revenue Code of 1954 the amount paid by an individual to any private nonprofit elementary or secondary school during the taxable year for a dependent's education according to the following limitations: (1) 100 percent of such tuition; or (2) $200, whichever is the lesser.

Provides that the provisions of this Act shall apply to taxable years beginning after December 31, 1976.