## *Subpart 1 --- Reading First*

### SEC. 1201. PURPOSES.

> The purposes of this subpart are as follows:
>
> \(1\) To provide assistance to State educational agencies and local
> educational agencies in establishing reading programs for students in
> kindergarten through grade 3 that are based on scientifically based
> reading research, to ensure that every student can read at grade level
> or above not later than the end of grade 3.
>
> \(2\) To provide assistance to State educational agencies and local
> educational agencies in preparing teachers, including special
> education teachers, through professional development and other
> support, so the teachers can identify specific reading barriers facing
> their students and so the teachers have the tools to effectively help
> their students learn to read.
>
> \(3\) To provide assistance to State educational agencies and local
> educational agencies in selecting or administering screening,
> diagnostic, and classroom-based instructional reading assessments.
>
> \(4\) To provide assistance to State educational agencies and local
> educational agencies in selecting or developing effective
> instructional materials (including classroom-based materials to assist
> teachers in implementing the essential components of reading
> instruction), programs, learning systems, and strategies to implement
> methods that have been proven to prevent or remediate reading failure
> within a State.
>
> \(5\) To strengthen coordination among schools, early literacy
> programs, and family literacy programs to improve reading achievement
> for all children.

### SEC. 1202. FORMULA GRANTS TO STATE EDUCATIONAL AGENCIES.

> \(a\) IN GENERAL-
>
> \(1\) AUTHORIZATION TO MAKE GRANTS- In the case of each State
> educational agency that in accordance with section 1203 submits to the
> Secretary an application for a 6-year period, the Secretary, from
> amounts appropriated under section 1002(b)(1) and subject to the
> application\'s approval, shall make a grant to the State educational
> agency for the uses specified in subsections (c) and (d). For each
> fiscal year, the funds provided under the grant shall equal the
> allotment determined for the State educational agency under subsection
> (b).
>
> \(2\) DURATION OF GRANTS- Subject to subsection (e)(3), a grant under
> this section shall be awarded for a period of not more than 6 years.
>
> \(b\) DETERMINATION OF AMOUNT OF ALLOTMENTS-
>
> \(1\) RESERVATIONS FROM APPROPRIATIONS- From the total amount made
> available to carry out this subpart for a fiscal year, the Secretary
> ---
>
> \(A\) shall reserve one-half of 1 percent for allotments for the
> United States Virgin Islands, Guam, American Samoa, and the
> Commonwealth of the Northern Mariana Islands, to be distributed among
> these outlying areas on the basis of their relative need, as
> determined by the Secretary in accordance with the purposes of this
> subpart;
>
> \(B\) shall reserve one-half of 1 percent for the Secretary of the
> Interior for programs under this subpart in schools operated or funded
> by the Bureau of Indian Affairs;
>
> \(C\) may reserve not more than 2 1/2 percent or \$25,000,000,
> whichever is less, to carry out section 1205 (relating to external
> evaluation) and section 1206 (relating to national activities);
>
> \(D\) shall reserve \$5,000,000 to carry out sections 1207 and 1224
> (relating to information dissemination); and
>
> \(E\) for any fiscal year, beginning with fiscal year 2004, for which
> the amount appropriated to carry out this subpart exceeds the amount
> appropriated for fiscal year 2003, shall reserve, to carry out section
> 1204, the lesser of ---
>
> \(i\) \$90,000,000; or
>
> \(ii\) 10 percent of such excess amount.
>
> \(2\) STATE ALLOTMENTS- In accordance with paragraph (3), the
> Secretary shall allot among each of the States the total amount made
> available to carry out this subpart for any fiscal year and not
> reserved under paragraph (1).
>
> \(3\) DETERMINATION OF STATE ALLOTMENT AMOUNTS-
>
> \(A\) IN GENERAL- Subject to subparagraph (B), the Secretary shall
> allot the amount made available under paragraph (2) for a fiscal year
> among the States in proportion to the number of children, aged 5 to
> 17, who reside within the State and are from families with incomes
> below the poverty line for the most recent fiscal year for which
> satisfactory data are available, compared to the number of such
> individuals who reside in all such States for that fiscal year.
>
> \(B\) EXCEPTIONS-
>
> \(i\) MINIMUM GRANT AMOUNT- Subject to clause (ii), no State receiving
> an allotment under subparagraph (A) may receive less than one-fourth
> of 1 percent of the total amount allotted under such subparagraph.
>
> \(ii\) PUERTO RICO- The percentage of the amount allotted under
> subparagraph (A) that is allotted to the Commonwealth of Puerto Rico
> for a fiscal year may not exceed the percentage that was received by
> the Commonwealth of Puerto Rico of the funds allocated to all States
> under subpart 2 of part A for the preceding fiscal year.
>
> \(4\) DISTRIBUTION OF SUBGRANTS- The Secretary may make a grant to a
> State educational agency only if the State educational agency agrees
> to expend at least 80 percent of the amount of the funds provided
> under the grant for the purpose of making, in accordance with
> subsection (c), competitive subgrants to eligible local educational
> agencies.
>
> \(5\) REALLOTMENT- If a State educational agency described in
> paragraph (2) does not apply for an allotment under this section for
> any fiscal year, or if the State educational agency\'s application is
> not approved, the Secretary shall reallot such amount to the remaining
> State educational agencies in accordance with paragraph (3).
>
> \(6\) DEFINITION OF STATE- For purposes of this subsection, the term
> State\' means each of the 50 States, the District of Columbia, and the
> Commonwealth of Puerto Rico.
>
> \(c\) SUBGRANTS TO LOCAL EDUCATIONAL AGENCIES-
>
> \(1\) AUTHORIZATION TO MAKE SUBGRANTS- In accordance with paragraph
> (2), a State educational agency that receives a grant under this
> section shall make competitive subgrants to eligible local educational
> agencies.
>
> \(2\) ALLOCATION-
>
> \(A\) MINIMUM SUBGRANT AMOUNT- In making subgrants under paragraph
> (1), a State educational agency shall allocate to each eligible local
> educational agency that receives such a subgrant, at a minimum, an
> amount that bears the same relation to the funds made available under
> subsection (b)(4) as the amount the eligible local educational agency
> received under part A for the preceding fiscal year bears to the
> amount all the local educational agencies in the State received under
> part A for the preceding fiscal year.
>
> \(B\) PRIORITY- In making subgrants under paragraph (1), a State
> educational agency shall give priority to eligible local educational
> agencies in which at least ---
>
> \(i\) 15 percent of the children served by the eligible local
> educational agency are from families with incomes below the poverty
> line; or
>
> \(ii\) 6,500 children served by the eligible local educational agency
> are from families with incomes below the poverty line.
>
> \(3\) NOTICE- A State educational agency receiving a grant under this
> section shall provide notice to all eligible local educational
> agencies in the State of the availability of competitive subgrants
> under this subsection and of the requirements for applying for the
> subgrants.
>
> \(4\) LOCAL APPLICATION- To be eligible to receive a subgrant under
> this subsection, an eligible local educational agency shall submit an
> application to the State educational agency at such time, in such
> manner, and containing such information as the State educational
> agency may reasonably require.
>
> \(5\) STATE REQUIREMENT- In distributing subgrant funds to eligible
> local educational agencies under this subsection, a State educational
> agency shall ---
>
> \(A\) provide funds in sufficient size and scope to enable the
> eligible local educational agencies to improve reading instruction;
> and
>
> \(B\) provide the funds in amounts related to the number or percentage
> of students in kindergarten through grade 3 who are reading below
> grade level.
>
> \(6\) LIMITATION TO CERTAIN SCHOOLS- In distributing subgrant funds
> under this subsection, an eligible local educational agency shall
> provide funds only to schools that both ---
>
> \(A\) are among the schools served by that eligible local educational
> agency with the highest percentages or numbers of students in
> kindergarten through grade 3 reading below grade level, based on the
> most currently available data; and
>
> (B)(i) are identified for school improvement under section 1116(b); or
>
> \(ii\) have the highest percentages or numbers of children counted
> under section 1124(c).
>
> \(7\) LOCAL USES OF FUNDS-
>
> \(A\) REQUIRED USES- Subject to paragraph (8), an eligible local
> educational agency that receives a subgrant under this subsection
> shall use the funds provided under the subgrant to carry out the
> following activities:
>
> \(i\) Selecting and administering screening, diagnostic, and
> classroom-based instructional reading assessments.
>
> \(ii\) Selecting and implementing a learning system or program of
> reading instruction based on scientifically based reading research
> that ---
>
> \(I\) includes the essential components of reading instruction; and
>
> \(II\) provides such instruction to the children in kindergarten
> through grade 3 in the schools served by the eligible local
> educational agency, including children who ---

(aa) may have reading difficulties;

(bb) are at risk of being referred to special education based on these
difficulties;

\(cc\) have been evaluated under section 614 of the Individuals with
Disabilities Education Act but, in accordance with section 614(b)(5) of
that Act, have not been identified as being a child with a disability
(as defined in section 602 of that Act);

(dd) are being served under such Act primarily due to being identified
as being a child with a specific learning disability (as defined in
section 602 of that Act) related to reading;

(ee) are deficient in the essential components of reading skills, as
listed in subparagraphs (A) through (E) of section 1208(3); or

(ff) are identified as having limited English proficiency.

> \(iii\) Procuring and implementing instructional materials, including
> education technology such as software and other digital curricula,
> that are based on scientifically based reading research.
>
> \(iv\) Providing professional development for teachers of kindergarten
> through grade 3, and special education teachers of kindergarten
> through grade 12, that ---
>
> \(I\) will prepare these teachers in all of the essential components
> of reading instruction;
>
> \(II\) shall include ---

(aa) information on instructional materials, programs, strategies, and
approaches based on scientifically based reading research, including
early intervention, classroom reading materials, and remedial programs
and approaches; and

(bb) instruction in the use of screening, diagnostic, and
classroom-based instructional reading assessments and other procedures
that effectively identify students who may be at risk for reading
failure or who are having difficulty reading;

> \(III\) shall be provided by eligible professional development
> providers; and
>
> \(IV\) will assist teachers in becoming highly qualified in reading
> instruction in accordance with the requirements of section 1119.
>
> \(v\) Collecting and summarizing data ---
>
> \(I\) to document the effectiveness of activities carried out under
> this subpart in individual schools and in the local educational agency
> as a whole; and
>
> \(II\) to stimulate and accelerate improvement by identifying the
> schools that produce significant gains in reading achievement.
>
> \(vi\) Reporting data for all students and categories of students
> described in section 1111(b)(2)(C)(v)(II).
>
> \(vii\) Promoting reading and library programs that provide access to
> engaging reading material, including coordination with programs funded
> through grants received under subpart 4, where applicable.
>
> \(B\) ADDITIONAL USES- Subject to paragraph (8), an eligible local
> educational agency that receives a subgrant under this subsection may
> use the funds provided under the subgrant to carry out the following
> activities:
>
> \(i\) Humanities-based family literacy programs (which may be referred
> to as Prime Time Family Reading Time\') that bond families around the
> acts of reading and using public libraries.
>
> \(ii\) Providing training in the essential components of reading
> instruction to a parent or other individual who volunteers to be a
> student\'s reading tutor, to enable such parent or individual to
> support instructional practices that are based on scientifically based
> reading research and are being used by the student\'s teacher.
>
> \(iii\) Assisting parents, through the use of materials and reading
> programs, strategies, and approaches (including family literacy
> services) that are based on scientifically based reading research, to
> encourage reading and support their child\'s reading development.
>
> \(8\) LOCAL PLANNING AND ADMINISTRATION- An eligible local educational
> agency that receives a subgrant under this subsection may use not more
> than 3.5 percent of the funds provided under the subgrant for planning
> and administration.
>
> \(d\) STATE USES OF FUNDS-
>
> \(1\) IN GENERAL- A State educational agency that receives a grant
> under this section may expend not more than a total of 20 percent of
> the grant funds to carry out the activities described in paragraphs
> (3), (4), and (5).
>
> \(2\) PRIORITY- A State educational agency shall give priority to
> carrying out the activities described in paragraphs (3), (4), and (5)
> for schools described in subsection (c)(6).
>
> \(3\) PROFESSIONAL INSERVICE AND PRESERVICE DEVELOPMENT AND REVIEW- A
> State educational agency may expend not more than 65 percent of the
> amount of the funds made available under paragraph (1) ---
>
> \(A\) to develop and implement a program of professional development
> for teachers, including special education teachers, of kindergarten
> through grade 3 that ---
>
> \(i\) will prepare these teachers in all the essential components of
> reading instruction;
>
> \(ii\) shall include ---
>
> \(I\) information on instructional materials, programs, strategies,
> and approaches based on scientifically based reading research,
> including early intervention and reading remediation materials,
> programs, and approaches; and
>
> \(II\) instruction in the use of screening, diagnostic, and
> classroom-based instructional reading assessments and other
> scientifically based procedures that effectively identify students who
> may be at risk for reading failure or who are having difficulty
> reading; and
>
> \(iii\) shall be provided by eligible professional development
> providers;
>
> \(B\) to strengthen and enhance preservice courses for students
> preparing, at all public institutions of higher education in the
> State, to teach kindergarten through grade 3 by ---
>
> \(i\) reviewing such courses to determine whether the courses\'
> content is consistent with the findings of the most current
> scientifically based reading research, including findings on the
> essential components of reading instruction;
>
> \(ii\) following up such reviews with recommendations to ensure that
> such institutions offer courses that meet the highest standards; and
>
> \(iii\) preparing a report on the results of such reviews, submitting
> the report to the reading and literacy partnership for the State
> established under section 1203(d), and making the report available for
> public review by means of the Internet; and
>
> \(C\) to make recommendations on how the State licensure and
> certification standards in the area of reading might be improved.
>
> \(4\) TECHNICAL ASSISTANCE FOR LOCAL EDUCATIONAL AGENCIES AND SCHOOLS-
> A State educational agency may expend not more than 25 percent of the
> amount of the funds made available under paragraph (1) for one or more
> of the following:
>
> \(A\) Assisting local educational agencies in accomplishing the tasks
> required to design and implement a program under this subpart,
> including ---
>
> \(i\) selecting and implementing a program or programs of reading
> instruction based on scientifically based reading research;
>
> \(ii\) selecting screening, diagnostic, and classroom-based
> instructional reading assessments; and
>
> \(iii\) identifying eligible professional development providers to
> help prepare reading teachers to teach students using the programs and
> assessments described in clauses (i) and (ii).
>
> \(B\) Providing expanded opportunities to students in kindergarten
> through grade 3 who are served by eligible local educational agencies
> for receiving reading assistance from alternative providers that
> includes ---
>
> \(i\) screening, diagnostic, and classroom-based instructional reading
> assessments; and
>
> \(ii\) as need is indicated by the assessments under clause (i),
> instruction based on scientifically based reading research that
> includes the essential components of reading instruction.
>
> \(5\) PLANNING, ADMINISTRATION, AND REPORTING-
>
> \(A\) EXPENDITURE OF FUNDS- A State educational agency may expend not
> more than 10 percent of the amount of funds made available under
> paragraph (1) for the activities described in this paragraph.
>
> \(B\) PLANNING AND ADMINISTRATION- A State educational agency that
> receives a grant under this section may expend funds made available
> under subparagraph (A) for planning and administration relating to the
> State uses of funds authorized under this subpart, including the
> following:
>
> \(i\) Administering the distribution of competitive subgrants to
> eligible local educational agencies under subsection (c) and section
> 1204(d).
>
> \(ii\) Assessing and evaluating, on a regular basis, eligible local
> educational agency activities assisted under this subpart, with
> respect to whether they have been effective in increasing the number
> of children in grades 1, 2, and 3 served under this subpart who can
> read at or above grade level.
>
> \(C\) ANNUAL REPORTING-
>
> \(i\) IN GENERAL- A State educational agency that receives a grant
> under this section shall expend funds made available under
> subparagraph (A) to provide the Secretary annually with a report on
> the implementation of this subpart.
>
> \(ii\) INFORMATION INCLUDED- Each report under this subparagraph shall
> include information on the following:
>
> \(I\) Evidence that the State educational agency is fulfilling its
> obligations under this subpart.
>
> \(II\) Specific identification of those schools and local educational
> agencies that report the largest gains in reading achievement.
>
> \(III\) The progress the State educational agency and local
> educational agencies within the State are making in reducing the
> number of students served under this subpart in grades 1, 2, and 3 who
> are reading below grade level, as demonstrated by such information as
> teacher reports and school evaluations of mastery of the essential
> components of reading instruction.
>
> \(IV\) Evidence on whether the State educational agency and local
> educational agencies within the State have significantly increased the
> number of students reading at grade level or above, significantly
> increased the percentages of students described in section
> 1111(b)(2)(C)(v)(II) who are reading at grade level or above, and
> successfully implemented this subpart.
>
> \(iii\) PRIVACY PROTECTION- Data in the report shall be reported in a
> manner that protects the privacy of individuals.
>
> \(iv\) CONTRACT- To the extent practicable, a State educational agency
> shall enter into a contract with an entity that conducts
> scientifically based reading research, under which contract the entity
> will assist the State educational agency in producing the reports
> required to be submitted under this subparagraph.
>
> \(e\) REVIEW-
>
> \(1\) PROGRESS REPORT-
>
> \(A\) SUBMISSION- Not later than 60 days after the termination of the
> third year of the grant period, each State educational agency
> receiving a grant under this section shall submit a progress report to
> the Secretary.
>
> \(B\) INFORMATION INCLUDED- The progress report shall include
> information on the progress the State educational agency and local
> educational agencies within the State are making in reducing the
> number of students served under this subpart in grades 1, 2, and 3 who
> are reading below grade level (as demonstrated by such information as
> teacher reports and school evaluations of mastery of the essential
> components of reading instruction). The report shall also include
> evidence from the State educational agency and local educational
> agencies within the State that the State educational agency and the
> local educational agencies have significantly increased the number of
> students reading at grade level or above, significantly increased the
> percentages of students described in section 1111(b)(2)(C)(v)(II) who
> are reading at grade level or above, and successfully implemented this
> subpart.
>
> \(2\) PEER REVIEW- The progress report described in paragraph (1)
> shall be reviewed by the peer review panel convened under section
> 1203(c)(2).
>
> \(3\) CONSEQUENCES OF INSUFFICIENT PROGRESS- After submission of the
> progress report described in paragraph (1), if the Secretary
> determines that the State educational agency is not making significant
> progress in meeting the purposes of this subpart, the Secretary may
> withhold from the State educational agency, in whole or in part,
> further payments under this section in accordance with section 455 of
> the General Education Provisions Act or take such other action
> authorized by law as the Secretary determines necessary, including
> providing technical assistance upon request of the State educational
> agency.
>
> \(f\) FUNDS NOT USED FOR STATE LEVEL ACTIVITIES- Any portion of funds
> described in subsection (d)(1) that a State educational agency does
> not expend in accordance with subsection (d)(1) shall be expended for
> the purpose of making subgrants in accordance with subsection (c).

#### SEC. 1203. STATE FORMULA GRANT APPLICATIONS.

> \(a\) APPLICATIONS-
>
> \(1\) IN GENERAL- A State educational agency that desires to receive a
> grant under section 1202 shall submit an application to the Secretary
> at such time and in such form as the Secretary may require. The
> application shall contain the information described in subsection (b).
>
> \(2\) SPECIAL APPLICATION PROVISIONS- For those State educational
> agencies that have received a grant under part C of title II (as such
> part was in effect on the day before the date of enactment of the No
> Child Left Behind Act of 2001), the Secretary shall establish a
> modified set of requirements for an application under this section
> that takes into account the information already submitted and approved
> under that program and minimizes the duplication of effort on the part
> of such State educational agencies.
>
> \(b\) CONTENTS- An application under this section shall contain the
> following:
>
> \(1\) An assurance that the Governor of the State, in consultation
> with the State educational agency, has established a reading and
> literacy partnership described in subsection (d), and a description of
> how such partnership ---
>
> \(A\) coordinated the development of the application; and
>
> \(B\) will assist in the oversight and evaluation of the State
> educational agency\'s activities under this subpart.
>
> \(2\) A description, if applicable, of the State\'s strategy to
> expand, continue, or modify activities authorized under part C of
> title II (as such part was in effect on the day before the date of
> enactment of the No Child Left Behind Act of 2001).
>
> \(3\) An assurance that the State educational agency, and any local
> educational agencies receiving a subgrant from that State educational
> agency under section 1202, will, if requested, participate in the
> external evaluation under section 1205.
>
> \(4\) A State educational agency plan containing a description of the
> following:
>
> \(A\) How the State educational agency will assist local educational
> agencies in identifying screening, diagnostic, and classroom-based
> instructional reading assessments.
>
> \(B\) How the State educational agency will assist local educational
> agencies in identifying instructional materials, programs, strategies,
> and approaches, based on scientifically based reading research,
> including early intervention and reading remediation materials,
> programs, and approaches.
>
> \(C\) How the State educational agency will ensure that professional
> development activities related to reading instruction and provided
> under section 1202 are ---
>
> \(i\) coordinated with other Federal, State, and local level funds,
> and used effectively to improve instructional practices for reading;
> and
>
> \(ii\) based on scientifically based reading research.
>
> \(D\) How the activities assisted under section 1202 will address the
> needs of teachers and other instructional staff in implementing the
> essential components of reading instruction.
>
> \(E\) How subgrants made by the State educational agency under section
> 1202 will meet the requirements of section 1202, including how the
> State educational agency will ensure that eligible local educational
> agencies receiving subgrants under section 1202 will use practices
> based on scientifically based reading research.
>
> \(F\) How the State educational agency will, to the extent
> practicable, make grants to eligible local educational agencies in
> both rural and urban areas.
>
> \(G\) How the State educational agency will build on, and promote
> coordination among literacy programs in the State (including federally
> funded programs such as programs under the Adult Education and Family
> Literacy Act, the Individuals with Disabilities Education Act, and
> subpart 2), to increase the effectiveness of the programs in improving
> reading for adults and children and to avoid duplication of the
> efforts of the program.
>
> \(H\) How the State educational agency will assess and evaluate, on a
> regular basis, eligible local educational agency activities assisted
> under section 1202, with respect to whether the activities have been
> effective in achieving the purposes of section 1202.
>
> \(I\) Any other information that the Secretary may reasonably require.
>
> \(c\) APPROVAL OF APPLICATIONS-
>
> \(1\) IN GENERAL- The Secretary shall approve an application of a
> State educational agency under this section only if such application
> meets the requirements of this section.
>
> \(2\) PEER REVIEW-
>
> \(A\) IN GENERAL- The Secretary, in consultation with the National
> Institute for Literacy, shall convene a panel to evaluate applications
> under this section. At a minimum, the panel shall include ---
>
> \(i\) three individuals selected by the Secretary;
>
> \(ii\) three individuals selected by the National Institute for
> Literacy;
>
> \(iii\) three individuals selected by the National Research Council of
> the National Academy of Sciences; and
>
> \(iv\) three individuals selected by the National Institute of Child
> Health and Human Development.
>
> \(B\) EXPERTS- The panel shall include ---
>
> \(i\) experts who are competent, by virtue of their training,
> expertise, or experience, to evaluate applications under this section;
>
> \(ii\) experts who provide professional development to individuals who
> teach reading to children and adults based on scientifically based
> reading research;
>
> \(iii\) experts who provide professional development to other
> instructional staff based on scientifically based reading research;
> and
>
> \(iv\) an individual who has expertise in screening, diagnostic, and
> classroom-based instructional reading assessments.
>
> \(C\) RECOMMENDATIONS- The panel shall recommend grant applications
> from State educational agencies under this section to the Secretary
> for funding or for disapproval.
>
> \(d\) READING AND LITERACY PARTNERSHIPS-
>
> \(1\) IN GENERAL- For a State educational agency to receive a grant
> under section 1202, the Governor of the State, in consultation with
> the State educational agency, shall establish a reading and literacy
> partnership.
>
> \(2\) REQUIRED PARTICIPANTS- The reading and literacy partnership
> shall include the following participants:
>
> \(A\) The Governor of the State.
>
> \(B\) The chief State school officer.
>
> \(C\) The chairman and the ranking member of each committee of the
> State legislature that is responsible for education policy.
>
> \(D\) A representative, selected jointly by the Governor and the chief
> State school officer, of at least one eligible local educational
> agency.
>
> \(E\) A representative, selected jointly by the Governor and the chief
> State school officer, of a community-based organization working with
> children to improve their reading skills, particularly a
> community-based organization using tutors and scientifically based
> reading research.
>
> \(F\) State directors of appropriate Federal or State programs with a
> strong reading component, selected jointly by the Governor and the
> chief State school officer.
>
> \(G\) A parent of a public or private school student or a parent who
> educates the parent\'s child in the parent\'s home, selected jointly
> by the Governor and the chief State school officer.
>
> \(H\) A teacher, who may be a special education teacher, who
> successfully teaches reading, and another instructional staff member,
> selected jointly by the Governor and the chief State school officer.
>
> \(I\) A family literacy service provider selected jointly by the
> Governor and the chief State school officer.
>
> \(3\) OPTIONAL PARTICIPANTS- The reading and literacy partnership may
> include additional participants, who shall be selected jointly by the
> Governor and the chief State school officer, and who may include a
> representative of ---
>
> \(A\) an institution of higher education operating a program of
> teacher preparation in the State that is based on scientifically based
> reading research;
>
> \(B\) a local educational agency;
>
> \(C\) a private nonprofit or for-profit eligible professional
> development provider providing instruction based on scientifically
> based reading research;
>
> \(D\) an adult education provider;
>
> \(E\) a volunteer organization that is involved in reading programs;
> or
>
> \(F\) a school library or a public library that offers reading or
> literacy programs for children or families.
>
> \(4\) PREEXISTING PARTNERSHIP- If, before the date of enactment of the
> No Child Left Behind Act of 2001, a State educational agency
> established a consortium, partnership, or any other similar body that
> was considered a reading and literacy partnership for purposes of part
> C of title II of this Act (as such part was in effect on the day
> before the date of enactment of No Child Left Behind Act of 2001),
> that consortium, partnership, or body may be considered a reading and
> literacy partnership for purposes of this subsection consistent with
> the provisions of this subpart.

### SEC. 1204. TARGETED ASSISTANCE GRANTS.

> \(a\) ELIGIBILITY CRITERIA FOR AWARDING TARGETED ASSISTANCE GRANTS TO
> STATES- Beginning with fiscal year 2004, from funds appropriated under
> section 1202(b)(1)(E), the Secretary shall make grants, on a
> competitive basis, to those State educational agencies that ---
>
> \(1\) for each of 2 consecutive years, demonstrate that an increasing
> percentage of third graders in each of the groups described in section
> 1111(b)(2)(C)(v)(II) in the schools served by the local educational
> agencies receiving funds under section 1202 are reaching the
> proficient level in reading; and
>
> \(2\) for each of the same such consecutive 2 years, demonstrate that
> schools receiving funds under section 1202 are improving the reading
> skills of students in grades 1, 2, and 3 based on screening,
> diagnostic, and classroom-based instructional reading assessments.
>
> \(b\) CONTINUATION OF PERFORMANCE AWARDS- For any State educational
> agency that receives a competitive grant under this section, the
> Secretary shall make an award for each of the succeeding years that
> the State educational agency demonstrates it is continuing to meet the
> criteria described in subsection (a).
>
> \(c\) DISTRIBUTION OF TARGETED ASSISTANCE GRANTS-
>
> \(1\) IN GENERAL- The Secretary shall make a grant to each State
> educational agency with an application approved under this section in
> an amount that bears the same relation to the amount made available to
> carry out this section for a fiscal year as the number of children
> counted under section 1124(c) for the State bears to the number of
> such children so counted for all States with applications approved for
> that year.
>
> \(2\) PEER REVIEW- The peer review panel convened under section
> 1203(c)(2) shall review the applications submitted under this
> subsection. The panel shall recommend such applications to the
> Secretary for funding or for disapproval.
>
> \(3\) APPLICATION CONTENTS- A State educational agency that desires to
> receive a grant under this section shall submit an application to the
> Secretary at such time, in such manner, and accompanied by such
> information as the Secretary may require. Each such application shall
> include the following:
>
> \(A\) Evidence that the State educational agency has carried out its
> obligations under section 1203.
>
> \(B\) Evidence that the State educational agency has met the criteria
> described in subsection (a).
>
> \(C\) The amount of funds requested by the State educational agency
> and a description of the criteria the State educational agency intends
> to use in distributing subgrants to eligible local educational
> agencies under this section to continue or expand activities under
> subsection (d)(5).
>
> \(D\) Evidence that the State educational agency has increased
> significantly the percentage of students reading at grade level or
> above.
>
> \(E\) Any additional evidence that demonstrates success in the
> implementation of this section.
>
> \(d\) SUBGRANTS TO ELIGIBLE LOCAL EDUCATIONAL AGENCIES-
>
> \(1\) IN GENERAL- The Secretary may make a grant to a State
> educational agency under this section only if the State educational
> agency agrees to expend 100 percent of the amount of the funds
> provided under the grant for the purpose of making competitive
> subgrants in accordance with this subsection to eligible local
> educational agencies.
>
> \(2\) NOTICE- A State educational agency receiving a grant under this
> section shall provide notice to all local educational agencies in the
> State of the availability of competitive subgrants under this
> subsection and of the requirements for applying for the subgrants.
>
> \(3\) APPLICATION- To be eligible to receive a subgrant under this
> subsection, an eligible local educational agency shall submit an
> application to the State educational agency at such time, in such
> manner, and containing such information as the State educational
> agency may reasonably require.
>
> \(4\) DISTRIBUTION-
>
> \(A\) IN GENERAL- A State educational agency shall distribute
> subgrants under this section through a competitive process based on
> relative need of eligible local educational agencies and the evidence
> described in this paragraph.
>
> \(B\) EVIDENCE USED IN ALL YEARS- For all fiscal years, a State
> educational agency shall distribute subgrants under this section based
> on evidence that an eligible local educational agency ---
>
> \(i\) satisfies the requirements of section 1202(c)(4);
>
> \(ii\) will carry out its obligations under this subpart;
>
> \(iii\) will work with other local educational agencies in the State
> that have not received a subgrant under this subsection to assist such
> nonreceiving agencies in increasing the reading achievement of
> students; and
>
> \(iv\) is meeting the criteria described in subsection (a).
>
> \(5\) LOCAL USES OF FUNDS- An eligible local educational agency that
> receives a subgrant under this subsection ---
>
> \(A\) shall use the funds provided under the subgrant to carry out the
> activities described in section 1202(c)(7)(A); and
>
> \(B\) may use such funds to carry out the activities described in
> section 1202(c)(7)(B).

### SEC. 1205. EXTERNAL EVALUATION.

> \(a\) IN GENERAL- From funds reserved under section 1202(b)(1)(C), the
> Secretary shall contract with an independent organization outside of
> the Department for a 5-year, rigorous, scientifically valid,
> quantitative evaluation of this subpart.
>
> \(b\) PROCESS- The evaluation under subsection (a) shall be conducted
> by an organization that is capable of designing and carrying out an
> independent evaluation that identifies the effects of specific
> activities carried out by State educational agencies and local
> educational agencies under this subpart on improving reading
> instruction. Such evaluation shall take into account factors
> influencing student performance that are not controlled by teachers or
> education administrators.
>
> \(c\) ANALYSIS- The evaluation under subsection (a) shall include the
> following:
>
> \(1\) An analysis of the relationship between each of the essential
> components of reading instruction and overall reading proficiency.
>
> \(2\) An analysis of whether assessment tools used by State
> educational agencies and local educational agencies measure the
> essential components of reading.
>
> \(3\) An analysis of how State reading standards correlate with the
> essential components of reading instruction.
>
> \(4\) An analysis of whether the receipt of a targeted assistance
> grant under section 1204 results in an increase in the number of
> children who read proficiently.
>
> \(5\) A measurement of the extent to which specific instructional
> materials improve reading proficiency.
>
> \(6\) A measurement of the extent to which specific screening,
> diagnostic, and classroom-based instructional reading assessments
> assist teachers in identifying specific reading deficiencies.
>
> \(7\) A measurement of the extent to which professional development
> programs implemented by State educational agencies using funds
> received under this subpart improve reading instruction.
>
> \(8\) A measurement of how well students preparing to enter the
> teaching profession are prepared to teach the essential components of
> reading instruction.
>
> \(9\) An analysis of changes in students\' interest in reading and
> time spent reading outside of school.
>
> \(10\) Any other analysis or measurement pertinent to this subpart
> that is determined to be appropriate by the Secretary.
>
> \(d\) PROGRAM IMPROVEMENT- The findings of the evaluation conducted
> under this section shall be provided to State educational agencies and
> local educational agencies on a periodic basis for use in program
> improvement.

### SEC. 1206. NATIONAL ACTIVITIES.

> From funds reserved under section 1202(b)(1)(C), the Secretary ---
>
> \(1\) may provide technical assistance in achieving the purposes of
> this subpart to State educational agencies, local educational
> agencies, and schools requesting such assistance;
>
> \(2\) shall, at a minimum, evaluate the impact of services provided to
> children under this subpart with respect to their referral to, and
> eligibility for, special education services under the Individuals with
> Disabilities Education Act (based on their difficulties learning to
> read); and
>
> \(3\) shall carry out the external evaluation as described in section
> 1205.

### SEC. 1207. INFORMATION DISSEMINATION.

> \(a\) IN GENERAL- From funds reserved under section 1202(b)(1)(D), the
> National Institute for Literacy, in collaboration with the Secretary
> of Education, the Secretary of Health and Human Services, and the
> Director of the National Institute for Child Health and Human
> Development shall ---
>
> \(1\) disseminate information on scientifically based reading research
> pertaining to children, youth, and adults;
>
> \(2\) identify and disseminate information about schools, local
> educational agencies, and State educational agencies that have
> effectively developed and implemented classroom reading programs that
> meet the requirements of this subpart, including those State
> educational agencies, local educational agencies, and schools that
> have been identified as effective through the evaluation and peer
> review provisions of this subpart; and
>
> \(3\) support the continued identification and dissemination of
> information on reading programs that contain the essential components
> of reading instruction as supported by scientifically based reading
> research, that can lead to improved reading outcomes for children,
> youth, and adults.
>
> \(b\) DISSEMINATION AND COORDINATION- At a minimum, the National
> Institute for Literacy shall disseminate the information described in
> subsection (a) to ---
>
> \(1\) recipients of Federal financial assistance under this title,
> title III, the Head Start Act, the Individuals with Disabilities
> Education Act, and the Adult Education and Family Literacy Act; and
>
> \(2\) each Bureau funded school (as defined in section 1141 of the
> Education Amendments of 1978).
>
> \(c\) USE OF EXISTING NETWORKS- In carrying out this section, the
> National Institute for Literacy shall, to the extent practicable, use
> existing information and dissemination networks developed and
> maintained through other public and private entities including through
> the Department and the National Center for Family Literacy.
>
> \(d\) NATIONAL INSTITUTE FOR LITERACY- For purposes of funds reserved
> under section 1202(b)(1)(D) to carry out this section, the National
> Institute for Literacy shall administer such funds in accordance with
> section 242(b) of Public Law 105-220 (relating to the establishment
> and administration of the National Institute for Literacy).

### SEC. 1208. DEFINITIONS.

> In this subpart:
>
> \(1\) ELIGIBLE LOCAL EDUCATIONAL AGENCY- The term eligible local
> educational agency\' means a local educational agency that ---
>
> \(A\) is among the local educational agencies in the State with the
> highest numbers or percentages of students in kindergarten through
> grade 3 reading below grade level, based on the most currently
> available data; and
>
> \(B\) has ---
>
> \(i\) jurisdiction over a geographic area that includes an area
> designated as an empowerment zone, or an enterprise community, under
> part I of subchapter U of chapter 1 of the Internal Revenue Code of
> 1986;
>
> \(ii\) jurisdiction over a significant number or percentage of schools
> that are identified for school improvement under section 1116(b); or
>
> \(iii\) the highest numbers or percentages of children who are counted
> under section 1124(c), in comparison to other local educational
> agencies in the State.
>
> \(2\) ELIGIBLE PROFESSIONAL DEVELOPMENT PROVIDER- The term eligible
> professional development provider\' means a provider of professional
> development in reading instruction to teachers, including special
> education teachers, that is based on scientifically based reading
> research.
>
> \(3\) ESSENTIAL COMPONENTS OF READING INSTRUCTION- The term essential
> components of reading instruction\' means explicit and systematic
> instruction in ---
>
> \(A\) phonemic awareness;
>
> \(B\) phonics;
>
> \(C\) vocabulary development;
>
> \(D\) reading fluency, including oral reading skills; and
>
> \(E\) reading comprehension strategies.
>
> \(4\) INSTRUCTIONAL STAFF- The term instructional staff\' ---
>
> \(A\) means individuals who have responsibility for teaching children
> to read; and
>
> \(B\) includes principals, teachers, supervisors of instruction,
> librarians, library school media specialists, teachers of academic
> subjects other than reading, and other individuals who have
> responsibility for assisting children to learn to read.
>
> \(5\) READING- The term reading\' means a complex system of deriving
> meaning from print that requires all of the following:
>
> \(A\) The skills and knowledge to understand how phonemes, or speech
> sounds, are connected to print.
>
> \(B\) The ability to decode unfamiliar words.
>
> \(C\) The ability to read fluently.
>
> \(D\) Sufficient background information and vocabulary to foster
> reading comprehension.
>
> \(E\) The development of appropriate active strategies to construct
> meaning from print.
>
> \(F\) The development and maintenance of a motivation to read.
>
> \(6\) SCIENTIFICALLY BASED READING RESEARCH- The term scientifically
> based reading research\' means research that ---
>
> \(A\) applies rigorous, systematic, and objective procedures to obtain
> valid knowledge relevant to reading development, reading instruction,
> and reading difficulties; and
>
> \(B\) includes research that ---
>
> \(i\) employs systematic, empirical methods that draw on observation
> or experiment;
>
> \(ii\) involves rigorous data analyses that are adequate to test the
> stated hypotheses and justify the general conclusions drawn;
>
> \(iii\) relies on measurements or observational methods that provide
> valid data across evaluators and observers and across multiple
> measurements and observations; and
>
> \(iv\) has been accepted by a peer-reviewed journal or approved by a
> panel of independent experts through a comparably rigorous, objective,
> and scientific review.
>
> \(7\) SCREENING, DIAGNOSTIC, AND CLASSROOM-BASED INSTRUCTIONAL READING
> ASSESSMENTS-
>
> \(A\) IN GENERAL- The term screening, diagnostic, and classroom-based
> instructional reading assessments\' means ---
>
> \(i\) screening reading assessments;
>
> \(ii\) diagnostic reading assessments; and
>
> \(iii\) classroom-based instructional reading assessments.
>
> \(B\) SCREENING READING ASSESSMENT- The term screening reading
> assessment\' means an assessment that is ---
>
> \(i\) valid, reliable, and based on scientifically based reading
> research; and
>
> \(ii\) a brief procedure designed as a first step in identifying
> children who may be at high risk for delayed development or academic
> failure and in need of further diagnosis of their need for special
> services or additional reading instruction.
>
> \(C\) DIAGNOSTIC READING ASSESSMENT- The term diagnostic reading
> assessment\' means an assessment that is ---
>
> \(i\) valid, reliable, and based on scientifically based reading
> research; and
>
> \(ii\) used for the purpose of ---
>
> \(I\) identifying a child\'s specific areas of strengths and
> weaknesses so that the child has learned to read by the end of grade
> 3;
>
> \(II\) determining any difficulties that a child may have in learning
> to read and the potential cause of such difficulties; and
>
> \(III\) helping to determine possible reading intervention strategies
> and related special needs.
>
> \(D\) CLASSROOM-BASED INSTRUCTIONAL READING ASSESSMENT- The term
> classroom-based instructional reading assessment\' means an assessment
> that ---
>
> \(i\) evaluates children\'s learning based on systematic observations
> by teachers of children performing academic tasks that are part of
> their daily classroom experience; and
>
> \(ii\) is used to improve instruction in reading, including classroom
> instruction.