To authorize the Project GRAD program, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Graduation Really Achieves Dreams 
Act'' or the ``GRAD Act''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) The national high school graduation rate is only 70 
        percent, and in urban districts that percentage drops further 
        to only 50 percent.
            (2) The national graduation rate for the class of 2001 was 
        only 51 percent for African Americans and 52 percent for Latino 
        students.
            (3) Each school day, approximately 3,000 secondary school 
        students drop out of school.
            (4) Six million secondary students who make up the lowest 
        25 percent in terms of achievement scores are 3.5 times more 
        likely to drop out than students in the next highest quarter of 
        academic achievement, and are 20 times more likely to drop out 
        than high achieving students.
            (5) Approximately 25 percent of secondary school students 
        are reading at ``below basic'' levels. The problem is even more 
        severe for poor students of color. The average minority or low-
        income ninth grader performs at only the fifth or sixth grade 
        level in reading.
            (6) Low graduation rates are evidence that, in the earlier 
        grades, schools are not meeting the fundamental achievement 
        needs of low-income students.
            (7) Even those students who do graduate from secondary 
        schools and go on to college are struggling because they lack 
        the basic skills to succeed. Approximately 40 percent of all 4-
        year college students take a remedial course and 63 percent of 
        all community college students are assigned to at least one 
        remedial course.
            (8) A small percentage of low-income students who manage to 
        enter college are able to complete a degree. Of students from 
        families in the bottom 20 percent in terms of income who enter 
        college, only 27 percent go on to complete a two- or four-year 
        college degree within eight years.
            (9) Graduation rates impact early drop-out rates in the 
        military. The attrition rates of both non-high school graduates 
        and GED recipients are 8 percentage points higher than the 
        rates of graduates. As a result, the Armed Services no longer 
        accepts high school drop-outs and put less value on alternative 
        certificates.
            (10) Students who fail to graduate from high school are 
        more likely to engage in criminal activity than students who 
        graduate. A one percent increase in high school graduation 
        rates would save approximately $1.4 billion in costs associated 
        with incarceration, or about $2,100 for each male high school 
        graduate.
            (11) In today's workplace, nearly 8 in 10 adults with 
        bachelors degrees are employed, but for those who completed 
        high school only, the figure falls to about 6 in 10. And for 
        students who dropped out, the figure drops further to 4 in 10.
            (12) Employment projections indicate that jobs requiring 
        only a high school degree will grow by just 9 percent by the 
        year 2008, while those requiring a bachelor's degree will grow 
        by 25 percent and those requiring an associate's degree will 
        grow by 31 percent.
            (13) Personalization of the school environment has been 
        proven to increase success rates for low-performing secondary 
        school students. Nearly 50 percent of middle school youth and 
        40 percent of high school youth report feelings of 
        disengagement from school. Rates are even higher for teens and 
        minorities in urban schools. These feelings result in failure 
        to work hard, to seek assistance, or to take appropriate 
        courses.
            (14) Effective research-based education programs that 
        improve high school graduation rates are comprehensive in 
        nature and include interventions that begin in kindergarten and 
        span all the grades through 12th.

SEC. 3. PROJECT GRAD.

    (a) Purpose.--The purpose of the program authorized under this Act 
is--
            (1) to provide support and assistance to programs 
        implementing integrated education reform services to improve 
        high school graduation and college going rates for 
        disadvantaged students; and
            (2) to promote the establishment of new programs to 
        implement such integrated education reform services.
    (b) Grant Authorized.--The Secretary is authorized to award a grant 
to Project GRAD USA, a nonprofit educational organization that has as 
its primary purpose the improvement of high school graduation and 
college going rates for disadvantaged students (hereinafter in this 
section referred to as the ``grantee''), to provide support and 
technical assistance to existing programs implementing the set of 
integrated education reform services described in subsection (d)(2) and 
to promote the expansion of such programs.
    (c) Requirements of Grant Agreement.--The Secretary shall enter 
into an agreement with the grantee that requires that--
            (1) the grantee will enter into subcontracts with nonprofit 
        educational organizations (hereinafter in this section referred 
        to as ``subgrantees'') under which the subgrantees will agree 
        to establish, operate, and provide the non-Federal share of the 
        cost of implementing Project GRAD programs;
            (2) the grantee will provide such technical assistance to 
        the subgrantees as may be necessary to carry out the provisions 
        of this section;
            (3) funds made available under the grant can be used to pay 
        the Federal share of the cost of establishing and operating 
        programs as provided in paragraph (1) and costs associated with 
        the provision of technical assistance as provided in paragraph 
        (2); and
            (4) the grantee will select only subgrantees that serve a 
        substantial number or percentage of low-income students.
    (d) Supported Programs.--
            (1) Designation; feeder patterns.--The programs supported 
        with funds available under this section shall be known as 
        ``Project GRAD programs''. Such programs shall, with the 
        agreement of the grantee, identify one or more groups of public 
        schools at which services will be provided through establishing 
        a ``feeder pattern'' through which elementary and secondary 
        schools channel students having participated in Project GRAD 
        services into an identified high school.
            (2) Integrated education reform services.--The services 
        provided through project GRAD programs shall include--
                    (A) research-based programs in reading, 
                mathematics, and classroom management;
                    (B) campus-based social services programs including 
                a systematic approach to increase family and community 
                involvement in the schools served;
                    (C) a college access program, which includes the 
                provision of a college scholarship for students that 
                meet established criteria, proven approaches to 
                increasing student and family college awareness, and 
                assistance for those students in applying to college 
                for financial aid; and
                    (D) such other services identified by the grantee 
                as necessary to increase high school graduation and 
                college going rates.
    (e) Use of Funds.--Not less than 75 percent of the funds received 
by the grantee under this section shall be used to fund awards to 
subgrantees to carry out the requirements of subsection (d)(1). The 
balance of such funds shall be used by grantee to carry out the 
requirements of subsection (d)(2), as well as other such activities to 
promote greater public awareness of integrated education reform 
services to improve high school graduation and college going rates for 
disadvantaged students as described in subsection (d)(2).
    (f) Federal Share.--
            (1) In general.--For purposes of subsection (c), the term 
        ``Federal share'' means, with respect to the costs of Project 
        GRAD programs authorized in subsection (c), subgrants provided 
        by the grantee averaging $200 per pupil, adjusted to take into 
        consideration the resources available to the school at which 
        the subgrantee will implement the program, and the need for 
        Project GRAD USA services to improve student outcomes.
            (2) Exception.--Nothing in this subsection shall preclude 
        the awarding of subgrants reflecting a per student cost of more 
        than $200 if the grantee determines that additional resources 
        were not available consistent with the requirements placed on 
        the grantee in subsection (c)(4).
            (3) More may be required.--If funds or resources are 
        available to a subgrantee, the grantee may elect to award the 
        subgrantee less than the Federal share of the cost associated 
        with the program.
    (g) Evaluation.--
            (1) Evaluation by the secretary.--The Secretary shall 
        select an independent entity to evaluate every 3 years the 
        performance of students who participate in a program under this 
        section. The evaluation shall be contracted using the strongest 
        possible research design for determining the effectiveness of 
        programs funded under this section. The evaluation shall 
        include a comparison of reading and mathematics achievement 
        and, where applicable, high school graduation, college going, 
        and college completion rates of students who participate in the 
        programs funded under this section with those indicators for 
        students of similar backgrounds who do not participate in such 
        programs.
            (2) Evaluation by grantee and subgrantees.--The grantee 
        shall require each subgrantee to prepare an in-depth report of 
        the results of the programs supported with funds, and the use 
        of funds, made available under this section. Such review shall 
        include data on the reading and math achievement of students 
        involved in the programs and statistics on high school 
        graduation, college going, and college completion rates, and 
        such financial reporting as deemed relevant to review the 
        effectiveness and efficiency of the program. The report shall 
        be in a form and include such content as shall be determined by 
        the grantee in consultation with the Secretary or the entity 
        selected by the Secretary to evaluate the Project GRAD program.
            (3) Availability of evaluations.--Copies of any evaluation 
        or report prepared pursuant to this section shall be available 
        to the Secretary and the Chairman and ranking member of the 
        Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Health, Education, Labor 
        and Pensions of the Senate.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to make grants under this section $27,000,000 for fiscal 
year 2005 and such sums as may be necessary for each of the 5 
succeeding fiscal years.
    (i) Low-Income Student.--For purposes of this section, the term 
``low-income student'' means a student who is determined by a local 
educational agency to be from a low-income family using the measures 
described in section 1113(c) of the Elementary and Secondary Education 
Act of 1965.

Summary: Graduation Really Achieves Dreams Act - GRAD Act - Authorizes a grant to Project GRAD USA, a nonprofit educational organization for improving high school graduation and college-going rates for disadvantaged students, to provide technical assistance and support through subgrants to existing and new programs that implement a set of integrated education reform services. Requires the grantee to select only subgrantees that serve a substantial number or percentage of low-income students. Requires the programs to identify one or more groups of public schools at which services will be provided through a feeder pattern through which elementary and secondary schools channel students having participated in program services into an identified high school. Requires program services to include: (1) research-based programs in reading, mathematics, and classroom management. (2) campus-based social services programs, including increasing family and community involvement in schools. (3) a college access program, including providing college scholarships for students who meet established criteria, increasing student and family college awareness, and assisting students to apply for college financial aid, and (4) other services the grantee identifies as necessary.