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‘‘(7) Coordination with existing support serv-
ices, such as transportation, child care, and other 
assistance designed to increase rates of enrollment 
in, and successful completion of, adult education, 
basic skills, and family literacy education programs, 
for adults enrolled in such activities. 
‘‘(8) The development and implementation of a 
system to assist in the transition from adult basic 
education to postsecondary education. 
‘‘(9) Activities to promote workplace literacy 
programs. 
‘‘(10) Activities to promote and complement 
local outreach initiatives described in section 243(7). 
‘‘(11) Other activities of statewide significance, 
including assisting eligible providers in achieving 
progress in improving the skill levels of adults who 
participate in programs under this title. 
‘‘(12) Integration of literacy, instructional, and 
occupational skill training and promotion of linkages 
with employees. 
‘‘(b) COORDINATION.—In carrying out this section, 
eligible agencies shall coordinate where possible, and avoid 
duplicating efforts, in order to maximize the impact of the 
activities described in subsection (a).
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‘‘(c) STATE-IMPOSED REQUIREMENTS.—Whenever a 
State or outlying area implements any rule or policy relat-
ing to the administration or operation of a program au-
thorized under this title that has the effect of imposing 
a requirement that is not imposed under Federal law (in-
cluding any rule or policy based on a State or outlying 
area interpretation of a Federal statute, regulation, or 
guideline), the State or outlying area shall identify, to eli-
gible providers, the rule or policy as being imposed by the 
State or outlying area. 
‘‘SEC. 224. STATE PLAN. 
‘‘(a) 6-YEAR PLANS.— 
‘‘(1) IN GENERAL.—Each eligible agency desir-
ing a grant under this title for any fiscal year shall 
submit to, or have on file with, the Secretary a 6- 
year State plan. 
‘‘(2) COMPREHENSIVE
PLAN
OR
APPLICA-
TION.—The eligible agency may submit the State 
plan as part of a comprehensive plan or application 
for Federal education assistance. 
‘‘(b) PLAN CONTENTS.—The eligible agency shall in-
clude in the State plan or any revisions to the State plan— 
‘‘(1) an objective assessment of the needs of in-
dividuals in the State or outlying area for adult edu-
cation, basic skills, and family literacy education
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programs, including individuals most in need or 
hardest to serve; 
‘‘(2) a description of the adult education, basic 
skills, and family literacy education programs that 
will be carried out with funds received under this 
title; 
‘‘(3) a description of how the eligible agency 
will evaluate and measure annually the effectiveness 
and improvement of the adult education, basic skills, 
and family literacy education programs based on the 
performance measures described in section 212 in-
cluding— 
‘‘(A) how the eligible agency will evaluate 
and measure annually such effectiveness on a 
grant-by-grant basis; and 
‘‘(B) how the eligible agency— 
‘‘(i) will hold eligible providers ac-
countable regarding the progress of such 
providers 
in 
improving 
the 
academic 
achievement of participants in adult edu-
cation programs under this title and re-
garding the core indicators of performance 
described in section 212(b)(2)(A); and 
‘‘(ii) will use technical assistance, 
sanctions, and rewards (including alloca-
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tion of grant funds based on performance 
and termination of grant funds based on 
nonperformance); 
‘‘(4) a description of the performance measures 
described in section 212 and how such performance 
measures have significantly improved adult edu-
cation, basic skills, and family literacy education 
programs in the State or outlying area; 
‘‘(5) an assurance that the eligible agency will, 
in addition to meeting all of the other requirements 
of this title, award not less than one grant under 
this title to an eligible provider that— 
‘‘(A) offers flexible schedules and necessary 
support services (such as child care and trans-
portation) to enable individuals, including indi-
viduals with disabilities, or individuals with 
other special needs, to participate in adult edu-
cation, basic skills, and family literacy edu-
cation programs; and 
‘‘(B) attempts to coordinate with support 
services that are not provided under this title 
prior to using funds for adult education, basic 
skills, and family literacy education programs 
provided under this title for support services;
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‘‘(6) an assurance that the funds received under 
this title will not be expended for any purpose other 
than for activities under this title; 
‘‘(7) a description of how the eligible agency 
will fund local activities in accordance with the 
measurable goals described in section 231(d); 
‘‘(8) an assurance that the eligible agency will 
expend the funds under this title only in a manner 
consistent with fiscal requirements in section 241; 
‘‘(9) a description of the process that will be 
used for public participation and comment with re-
spect to the State plan, which process— 
‘‘(A) shall include consultation with the 
State workforce investment board, the State 
board responsible for administering community 
or technical colleges, the Governor, the State 
educational agency, the State board or agency 
responsible for administering block grants for 
temporary assistance to needy families under 
title IV of the Social Security Act, the State 
council on disabilities, the State vocational re-
habilitation agency, other State agencies that 
promote the improvement of adult education, 
basic skills, and family literacy education pro-
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grams, and direct providers of such programs; 
and 
‘‘(B) may include consultation with the 
State agency on higher education, institutions 
responsible for professional development of 
adult education, basic skills, and family literacy 
education programs instructors, representatives 
of business and industry, refugee assistance 
programs, and faith-based organizations; 
‘‘(10) a description of the eligible agency’s 
strategies for serving populations that include, at a 
minimum— 
‘‘(A) low-income individuals; 
‘‘(B) individuals with disabilities; 
‘‘(C) the unemployed; 
‘‘(D) the underemployed; and 
‘‘(E) individuals with multiple barriers to 
educational enhancement, including individuals 
with limited English proficiency; 
‘‘(11) a description of how the adult education, 
basic skills, and family literacy education programs 
that will be carried out with any funds received 
under this title will be integrated with other adult 
education, career development, and employment and
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training activities in the State or outlying area 
served by the eligible agency; 
‘‘(12) a description of the steps the eligible 
agency will take to ensure direct and equitable ac-
cess, as required in section 231(c)(1), including— 
‘‘(A) how the State will build the capacity 
of community-based and faith-based organiza-
tions to provide adult education, basic skills, 
and family literacy education programs; and 
‘‘(B) how the State will increase the par-
ticipation of business and industry in adult edu-
cation, basic skills, and family literacy edu-
cation programs; 
‘‘(13) an assessment of the adequacy of the sys-
tem of the State or outlying area to ensure teacher 
quality and a description of how the State or out-
lying area will use funds received under this subtitle 
to improve teacher quality, including professional de-
velopment on the use of scientifically based research 
to improve instruction; and 
‘‘(14) a description of how the eligible agency 
will consult with any State agency responsible for 
postsecondary education to develop adult education 
that prepares students to enter postsecondary edu-
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cation without the need for remediation upon com-
pletion of secondary school equivalency programs. 
‘‘(c) PLAN REVISIONS.—When changes in conditions 
or other factors require substantial revisions to an ap-
proved State plan, the eligible agency shall submit the re-
visions of the State plan to the Secretary. 
‘‘(d) CONSULTATION.—The eligible agency shall— 
‘‘(1) submit the State plan, and any revisions to 
the State plan, to the Governor, the chief State 
school officer, or the State officer responsible for ad-
ministering community or technical colleges, or out-
lying area for review and comment; and 
‘‘(2) ensure that any comments regarding the 
State plan by the Governor, the chief State school 
officer, or the State officer responsible for admin-
istering community or technical colleges, and any re-
vision to the State plan, are submitted to the Sec-
retary. 
‘‘(e) PLAN APPROVAL.—A State plan submitted to 
the Secretary shall be approved by the Secretary only if 
the plan is consistent with the specific provisions of this 
title.
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‘‘SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND 
OTHER INSTITUTIONALIZED INDIVIDUALS. 
‘‘(a) PROGRAM AUTHORIZED.—From funds made 
available under section 222(a)(1) for a fiscal year, each 
eligible agency shall carry out corrections education and 
education for other institutionalized individuals. 
‘‘(b) USES OF FUNDS.—The funds described in sub-
section (a) shall be used for the cost of educational pro-
grams for criminal offenders in correctional institutions 
and for other institutionalized individuals, including aca-
demic programs for— 
‘‘(1) basic skills education; 
‘‘(2) special education programs as determined 
by the eligible agency; 
‘‘(3) reading, writing, speaking, and math pro-
grams; and 
‘‘(4) secondary school credit or diploma pro-
grams or their recognized equivalent. 
‘‘(c) PRIORITY.—Each eligible agency that is using 
assistance provided under this section to carry out a pro-
gram for criminal offenders within a correctional institu-
tion shall give priority to serving individuals who are likely 
to leave the correctional institution within 5 years of par-
ticipation in the program. 
‘‘(d) DEFINITIONS.—For purposes of this section:
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‘‘(1) CORRECTIONAL INSTITUTION.—The term 
‘correctional institution’ means any— 
‘‘(A) prison; 
‘‘(B) jail; 
‘‘(C) reformatory; 
‘‘(D) work farm; 
‘‘(E) detention center; or 
‘‘(F) halfway house, community-based re-
habilitation center, or any other similar institu-
tion designed for the confinement or rehabilita-
tion of criminal offenders. 
‘‘(2) CRIMINAL OFFENDER.—The term ‘crimi-
nal offender’ means any individual who is charged 
with, or convicted of, any criminal offense. 
‘‘CHAPTER 3—LOCAL PROVISIONS 
‘‘SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PRO-
VIDERS. 
‘‘(a) GRANTS AND CONTRACTS.—From grant funds 
made available under section 211(b), each eligible agency 
shall award multiyear grants or contracts, on a competi-
tive basis, to eligible providers within the State or outlying 
area that meet the conditions and requirements of this 
title to enable the eligible providers to develop, implement, 
and improve adult education, basic skills, and family lit-
eracy education programs within the State.
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‘‘(b) LOCAL ACTIVITIES.—The eligible agency shall 
require eligible providers receiving a grant or contract 
under subsection (a) to establish or operate one or more 
programs of instruction that provide services or instruc-
tion in one or more of the following categories: 
‘‘(1) Adult education, basic skills, and family 
literacy education programs (including proficiency in 
reading, writing, speaking, and math). 
‘‘(2) Workplace literacy programs. 
‘‘(3) English language acquisition programs. 
‘‘(4) Family literacy education programs. 
‘‘(c) DIRECT AND EQUITABLE ACCESS; SAME PROC-
ESS.—Each eligible agency receiving funds under this title 
shall ensure that— 
‘‘(1) all eligible providers have direct and equi-
table access to apply for grants or contracts under 
this section; and 
‘‘(2) the same grant or contract announcement 
process and application process is used for all eligi-
ble providers in the State or outlying area. 
‘‘(d) MEASURABLE GOALS.—The eligible agency shall 
require eligible providers receiving a grant or contract 
under subsection (a) to demonstrate— 
‘‘(1) the eligible provider’s measurable goals for 
participant outcomes to be achieved annually on the
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core indicators of performance and employment per-
formance indicators described in section 212(b)(2); 
‘‘(2) the past effectiveness of the eligible pro-
vider in improving the basic academic skills of adults 
and, for eligible providers receiving grants in the 
prior year, the success of the eligible provider receiv-
ing funding under this title in exceeding its perform-
ance goals in the prior year; 
‘‘(3) the commitment of the eligible provider to 
serve individuals in the community who are the most 
in need of basic academic skills instruction services, 
including individuals who are low-income or have 
minimal reading, writing, speaking, and math skills, 
or limited English proficiency; 
‘‘(4) the program— 
‘‘(A) is of sufficient intensity and duration 
for participants to achieve substantial learning 
gains; and 
‘‘(B) uses instructional practices that in-
clude the essential components of reading in-
struction; 
‘‘(5) educational practices are based on scientif-
ically based research;
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‘‘(6) the activities of the eligible provider effec-
tively employ advances in technology, as appropriate, 
including the use of computers; 
‘‘(7) the activities provide instruction in real-life 
contexts, when appropriate, to ensure that an indi-
vidual has the skills needed to compete in the work-
place and exercise the rights and responsibilities of 
citizenship; 
‘‘(8) the activities are staffed by well-trained in-
structors, counselors, and administrators; 
‘‘(9) the activities are coordinated with other 
available resources in the community, such as 
through strong links with elementary schools and 
secondary schools, postsecondary educational institu-
tions, one-stop centers, job training programs, com-
munity-based and faith-based organizations, and so-
cial service agencies; 
‘‘(10) the activities offer flexible schedules and 
support services (such as child care and transpor-
tation) that are necessary to enable individuals, in-
cluding individuals with disabilities or other special 
needs, to attend and complete programs; 
‘‘(11) the activities include a high-quality infor-
mation management system that has the capacity to 
report measurable participant outcomes and to mon-
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itor program performance against the performance 
measures established by the eligible agency; 
‘‘(12) the local communities have a dem-
onstrated need for additional English language ac-
quisition programs; 
‘‘(13) the capacity of the eligible provider to 
produce valid information on performance results, 
including enrollments and measurable participant 
outcomes; 
‘‘(14) adult education, basic skills, and family 
literacy education programs offer rigorous reading, 
writing, speaking, and math content that are based 
on scientifically based research; and 
‘‘(15) applications of technology, and services to 
be provided by the eligible providers, are of sufficient 
intensity and duration to increase the amount and 
quality of learning and lead to measurable learning 
gains within specified time periods. 
‘‘(e) SPECIAL RULE.—Eligible providers may use 
grant funds under this title to serve children participating 
in family literacy programs assisted under this part, pro-
vided that other sources of funds available to provide simi-
lar services for such children are used first.
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‘‘SEC. 232. LOCAL APPLICATION. 
‘‘Each eligible provider desiring a grant or contract 
under this title shall submit an application to the eligible 
agency containing such information and assurances as the 
eligible agency may require, including— 
‘‘(1) a description of how funds awarded under 
this title will be spent consistent with the require-
ments of this title; 
‘‘(2) a description of any cooperative arrange-
ments the eligible provider has with other agencies, 
institutions, or organizations for the delivery of 
adult education, basic skills, and family literacy edu-
cation programs; and 
‘‘(3) each of the demonstrations required by 
section 231(d). 
‘‘SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS. 
‘‘(a) IN GENERAL.—Subject to subsection (b), of the 
amount that is made available under this title to an eligi-
ble provider— 
‘‘(1) at least 95 percent shall be expended for 
carrying out adult education, basic skills, and family 
literacy education programs; and 
‘‘(2) the remaining amount shall be used for 
planning, administration, personnel and professional 
development, development of measurable goals in
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reading, writing, speaking, and math, and inter-
agency coordination. 
‘‘(b) SPECIAL RULE.—In cases where the cost limits 
described in subsection (a) are too restrictive to allow for 
adequate planning, administration, personnel develop-
ment, and interagency coordination, the eligible provider 
may negotiate with the eligible agency in order to deter-
mine an adequate level of funds to be used for noninstruc-
tional purposes. 
‘‘CHAPTER 4—GENERAL PROVISIONS 
‘‘SEC. 241. ADMINISTRATIVE PROVISIONS. 
‘‘(a) SUPPLEMENT
NOT SUPPLANT.—Funds made 
available for adult education, basic skills, and family lit-
eracy education programs under this title shall supplement 
and not supplant other State or local public funds ex-
pended for adult education, basic skills, and family literacy 
education programs. 
‘‘(b) MAINTENANCE OF EFFORT.— 
‘‘(1) IN GENERAL.— 
‘‘(A) DETERMINATION.—An eligible agency 
may receive funds under this title for any fiscal 
year if the Secretary finds that the fiscal effort 
per student or the aggregate expenditures of 
such eligible agency for activities under this 
title, in the second preceding fiscal year, were
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not less than 90 percent of the fiscal effort per 
student or the aggregate expenditures of such 
eligible agency for adult education, basic skills, 
and family literacy education programs, in the 
third preceding fiscal year. 
‘‘(B) PROPORTIONATE REDUCTION.—Sub-
ject to paragraphs (2), (3), and (4), for any fis-
cal year with respect to which the Secretary de-
termines under subparagraph (A) that the fiscal 
effort or the aggregate expenditures of an eligi-
ble agency for the preceding program year were 
less than such effort or expenditures for the 
second preceding program year, the Secretary— 
‘‘(i) shall determine the percentage 
decreases in such effort or in such expendi-
tures; and 
‘‘(ii) shall decrease the payment made 
under this title for such program year to 
the agency for adult education, basic skills, 
and family literacy education programs by 
the lesser of such percentages. 
‘‘(2) COMPUTATION.—In computing the fiscal 
effort and aggregate expenditures under paragraph 
(1), the Secretary shall exclude capital expenditures 
and special one-time project costs.
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‘‘(3) DECREASE IN FEDERAL SUPPORT.—If the 
amount made available for adult education, basic 
skills, and family literacy education programs under 
this title for a fiscal year is less than the amount 
made available for adult education, basic skills, and 
family literacy education programs under this title 
for the preceding fiscal year, then the fiscal effort 
per student and the aggregate expenditures of an el-
igible agency required in order to avoid a reduction 
under paragraph (1)(B) shall be decreased by the 
same percentage as the percentage decrease in the 
amount so made available. 
‘‘(4) WAIVER.—The Secretary may waive the 
requirements of this subsection for not more than 1 
fiscal year, if the Secretary determines that a waiver 
would be equitable due to exceptional or uncontrol-
lable circumstances, such as a natural disaster or an 
unforeseen and precipitous decline in the financial 
resources of the State or outlying area of the eligible 
agency. If the Secretary grants a waiver under the 
preceding sentence for a fiscal year, the level of ef-
fort required under paragraph (1) shall not be re-
duced in the subsequent fiscal year because of the 
waiver.
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‘‘SEC. 242. NATIONAL INSTITUTE FOR LITERACY. 
‘‘(a) IN GENERAL.— 
‘‘(1) PURPOSE.—The purpose of the National 
Institute for Literacy is to promote the improvement 
of literacy, including skills in reading, writing, and 
English language acquisition for children, youth, and 
adults, through practices derived from the findings 
of scientifically based research. 
‘‘(2) ESTABLISHMENT.—There is established a 
National Institute for Literacy (in this section re-
ferred to as the ‘Institute’). The Institute shall be 
administered under the terms of an interagency 
agreement entered into, reviewed annually, and 
modified as needed by the Secretary of Education 
with the Secretary of Health and Human Services 
and the Secretary of Labor (in this section referred 
to as the ‘Interagency Group’). 
‘‘(3) OFFICES.—The Institute shall have offices 
separate from the offices of the Department of Edu-
cation, the Department of Health and Human Serv-
ices, and the Department of Labor. 
‘‘(4) ADMINISTRATIVE SUPPORT.—The Depart-
ment of Education shall provide administrative sup-
port for the Institute.
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‘‘(5) DAILY OPERATIONS.—The Director of the 
Institute shall administer the daily operations of the 
Institute. 
‘‘(b) DUTIES.— 
‘‘(1) IN GENERAL.—To carry out its purpose, 
the Institute may— 
‘‘(A) identify and disseminate rigorous sci-
entific research on the effectiveness of instruc-
tional practices and organizational strategies re-
lating to programs on the acquisition of skills 
in reading, writing, and English language ac-
quisition for children, youth, and adults; 
‘‘(B) create and widely disseminate mate-
rials about the acquisition and application of 
skills in reading, writing, and English language 
acquisition for children, youth, and adults based 
on scientifically based research; 
‘‘(C) ensure a broad understanding of sci-
entifically based research on reading, writing, 
and English language acquisition for children, 
youth, and adults among Federal agencies with 
responsibilities for administering programs that 
provide related services, including State and 
local educational agencies;
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‘‘(D) facilitate coordination and informa-
tion sharing among national organizations and 
associations interested in programs that provide 
services to improve skills in reading, writing, 
and English language acquisition for children, 
youth, and adults; 
‘‘(E) coordinate with the appropriate of-
fices in the Department of Education, the De-
partment of Health and Human Services, the 
Department of Labor, and other Federal agen-
cies to apply the findings of scientifically based 
research related to programs on reading, writ-
ing, and English language acquisition for chil-
dren, youth, and adults; 
‘‘(F) establish a national electronic data-
base and Internet site describing and fostering 
communication on scientifically based programs 
in reading, writing, and English language ac-
quisition for children, youth, and adults, includ-
ing professional development programs; and 
‘‘(G) provide opportunities for technical as-
sistance, meetings, and conferences that will 
foster increased coordination among Federal, 
State, and local agencies and entities and im-
provement of reading, writing, and English lan-
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guage acquisition skills for children, youth, and 
adults. 
‘‘(2) COORDINATION.—In identifying scientif-
ically based research on reading, writing, and 
English language acquisition for children, youth, and 
adults, the Institute shall use standards for research 
quality that are consistent with those established by 
the Institute of Education Sciences. 
‘‘(3) GRANTS, CONTRACTS, AND COOPERATIVE 
AGREEMENTS.— 
‘‘(A) IN
GENERAL.—The Institute may 
award grants to, or enter into contracts or co-
operative agreements with, individuals, public 
or private institutions, agencies, organizations, 
or consortia of such individuals, institutions, 
agencies, or organizations, to carry out the ac-
tivities of the Institute. 
‘‘(B) REGULATIONS.—The Director may 
adopt the general administrative regulations of 
the Department of Education, as applicable, for 
use by the Institute. 
‘‘(C) RELATION
TO
OTHER
LAWS.—The 
duties and powers of the Institute under this 
title are in addition to the duties and powers of 
the Institute under subparts 1, 2, and 3 of part
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B of the Elementary and Secondary Education 
Act of 1965 (commonly referred to as Reading 
First, Early Reading First, and the William F. 
Goodling Even Start Family Literacy Program, 
respectively). 
‘‘(c) VISITING SCHOLARS.—The Institute may estab-
lish a visiting scholars program, with such stipends and 
allowances as the Director considers necessary, for out-
standing researchers, scholars, and individuals who— 
‘‘(1) have careers in adult education, workforce 
development, or scientifically based reading, writing, 
or English language acquisition; and 
‘‘(2) can assist the Institute in translating re-
search into practice and providing analysis that ad-
vances instruction in the fields of reading, writing, 
and English language acquisition for children, youth, 
and adults. 
‘‘(d) INTERNS AND VOLUNTEERS.—The Institute, in 
consultation with the National Institute for Literacy Advi-
sory Board, may award paid and unpaid internships to 
individuals seeking to assist the Institute in carrying out 
its purpose. Notwithstanding section 1342 of title 31, 
United States Code, the Institute may accept and use vol-
untary and uncompensated services as the Institute deter-
mines necessary.
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‘‘(e) NATIONAL INSTITUTE FOR LITERACY ADVISORY 
BOARD.— 
‘‘(1) ESTABLISHMENT.— 
‘‘(A) IN GENERAL.—There shall be a Na-
tional Institute for Literacy Advisory Board (in 
this section referred to as the ‘Board’), which 
shall consist of 10 individuals appointed by the 
President with the advice and consent of the 
Senate. 
‘‘(B) QUALIFICATIONS.—The Board shall 
be composed of individuals who— 
‘‘(i) are not otherwise officers or em-
ployees of the Federal Government; and 
‘‘(ii) are knowledgeable about current 
effective scientifically based research find-
ings on instruction in reading, writing, and 
English language acquisition for children, 
youth, and adults. 
‘‘(C) COMPOSITION.—The Board may in-
clude— 
‘‘(i) representatives of business, indus-
try, labor, literacy organizations, adult 
education providers, community colleges, 
students with disabilities, and State agen-
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cies, including State directors of adult edu-
cation; and 
‘‘(ii) individuals who, and representa-
tives of entities that, have been successful 
in improving skills in reading, writing, and 
English language acquisition for children, 
youth, and adults. 
‘‘(2) DUTIES.—The Board shall— 
‘‘(A) make recommendations concerning 
the appointment of the Director of the Insti-
tute; 
‘‘(B) provide independent advice on the op-
eration of the Institute; 
‘‘(C) receive reports from the Interagency 
Group and the Director; and 
‘‘(D) review the biennial report to the Con-
gress under subsection (k). 
‘‘(3) FEDERAL
ADVISORY
COMMITTEE
ACT.— 
Except as otherwise provided, the Board shall be 
subject to the provisions of the Federal Advisory 
Committee Act. 
‘‘(4) APPOINTMENTS.— 
‘‘(A) IN GENERAL.—Each member of the 
Board shall be appointed for a term of 3 years, 
except that the initial terms for members may