(D) in subparagraph (C) (as so redesig-
nated), by striking ‘‘under the title’’ and insert-
ing ‘‘under this title’’; and 
(E) in subparagraph (D) (as so redesig-
nated), by inserting ‘‘vocational and technical 
education’’ after ‘‘has developed State’’; and 
(2) in paragraph (3)—
(A) by amending the paragraph heading to 
read as follows: 
‘‘(3) STATE
LEVELS
OF
PERFORMANCE.—’’; 
and 
(B) in subparagraph (A)—
(i) in clause (i)—
(I) 
by 
striking 
‘‘paragraph 
(2)(A)’’ and inserting ‘‘subparagraphs 
(A) and (B) of paragraph (2)’’; and 
(II) in subclause (II), by striking 
‘‘to continually’’ and all that follows 
through ‘‘performance’’, and inserting 
‘‘to make continuous and substantial 
improvement in the academic and vo-
cational and technical achievement’’; 
(ii) by amending clause (v) to read as 
follows:
‘‘(v) AGREEMENT
ON
STATE
AD-
JUSTED
LEVELS
OF
PERFORMANCE
FOR 
SUBSEQUENT YEARS.—
‘‘(I) 
3rd 
and 
4th 
program 
years.—Prior to the third program 
year covered by the State plan, the 
Secretary and each eligible agency 
shall reach agreement on the State 
adjusted levels of performance for 
each of the core indicators of perform-
ance for the third and fourth pro-
grams years covered by the State 
plan, taking into account the factors 
described in clause (vi). 
‘‘(II) 
5th 
and 
6th 
program 
years.—Prior to the fifth program 
year covered by the State plan, the 
Secretary and each eligible agency 
shall reach agreement on the State 
adjusted levels of performance for 
each of the core indicators of perform-
ance for the fifth and sixth programs 
years covered by the State plan, tak-
ing into account the factors described 
in clause (vi).
‘‘(III) 
AGREEMENTS
INCOR-
PORATED
INTO
STATE
PLAN.—The 
State adjusted levels of performance 
agreed to under this clause shall be 
considered the State adjusted levels of 
performance for the State for such 
years and shall be incorporated into 
the State plan.’’; 
(iii) in clause (vi)(II), by inserting 
‘‘and substantial’’ after ‘‘continuous’’; and 
(iv) in clause (vii), by striking ‘‘under 
clause (iii) or (iv)’’ and inserting ‘‘under 
clause (iii) or (v)’’. 
(c) LOCAL
LEVELS
OF
PERFORMANCE.—Section 
113(b) is further amended by adding at the end the fol-
lowing: 
‘‘(4) LOCAL LEVELS OF PERFORMANCE.—
‘‘(A) LOCAL ADJUSTED LEVELS OF PER-
FORMANCE
FOR
CORE
INDICATORS
OF
PER-
FORMANCE.—
‘‘(i) IN GENERAL.—Each eligible re-
cipient shall establish in the local plan sub-
mitted under section 134, levels of per-
formance for each of the core indicators of 
performance described in paragraph (2)(A)
and (B), as appropriate for the eligible re-
cipient, for vocational and technical edu-
cation activities authorized under this title. 
The levels of performance established 
under this subparagraph shall, at a min-
imum—
‘‘(I) be expressed in a percentage 
or numerical form, so as to be objec-
tive, quantifiable, and measurable; 
and 
‘‘(II) require the eligible recipient 
to make continuous and substantial 
improvement in the academic and vo-
cational and technical achievement of 
vocational and technical education 
students. 
‘‘(ii) IDENTIFICATION IN THE LOCAL 
PLAN.—Each eligible recipient shall iden-
tify, in the local plan submitted under sec-
tion 134, levels of performance for each of 
the core indicators of performance for the 
first 2 program years covered by the local 
plan. 
‘‘(iii) AGREEMENT
ON
LOCAL
AD-
JUSTED
LEVELS
OF
PERFORMANCE
FOR
FIRST 2 YEARS.—The eligible agency and 
each eligible recipient shall reach agree-
ment on the levels of performance for each 
of the core indicators of performance, for 
the first 2 program years covered by the 
local plan, taking into account the levels 
identified in the local plan under clause (ii) 
and the factors described in clause (v). The 
levels of performance agreed to under this 
clause shall be considered to be the local 
adjusted level of performance for the eligi-
ble recipient for such years and shall be in-
corporated into the local plan prior to the 
approval of such plan. 
‘‘(iv) AGREEMENT
ON
LOCAL
AD-
JUSTED
LEVELS
OF
PERFORMANCE
FOR 
SUBSEQUENT YEARS.—
‘‘(I) 
3rd 
and 
4th 
program 
years.—Prior to the third program 
year covered by the local plan, the eli-
gible agency and each eligible recipi-
ent shall reach agreement on the local 
adjusted levels of performance for 
each of the core indicators of perform-
ance for the third and fourth program
years covered by the local plan, taking 
into account the factors described in 
clause (v). 
‘‘(II) 
5th 
and 
6th 
program 
years.—Prior to the fifth program 
year covered by the local plan, the eli-
gible agency and each eligible recipi-
ent shall reach agreement on the local 
adjusted levels of performance for 
each of the core indicators of perform-
ance for the fifth and sixth program 
years covered by the local plan, taking 
into account the factors described in 
clause (v). 
‘‘(III) 
AGREEMENTS
INCOR-
PORATED
INTO
LOCAL
PLAN.—The 
local adjusted levels of performance 
agreed to under this clause shall be 
considered to be the local adjusted 
levels of performance for the eligible 
recipient for such years and shall be 
incorporated into the local plan. 
‘‘(v) FACTORS.—The agreement de-
scribed in clause (iii) or (iv) shall take into 
account—
‘‘(I) how the levels of perform-
ance involved compare with the local 
adjusted levels of performance estab-
lished for other eligible recipients tak-
ing into account factors including the 
characteristics of participants when 
the participants entered the program 
and the services or instruction to be 
provided; and 
‘‘(II) the extent to which such 
levels of performance promote contin-
uous and substantial improvement on 
the indicators of performance by such 
eligible recipient. 
‘‘(vi) REVISIONS.—If unanticipated 
circumstances arise with respect to an eli-
gible recipient resulting in a significant 
change in the factors described in clause 
(v)(II), the eligible recipient may request 
that the local adjusted levels of perform-
ance agreed to under clause (iii) or (iv) be 
revised. The eligible agency shall issue ob-
jective criteria and methods for making 
such revisions.
‘‘(B) LEVELS OF PERFORMANCE FOR AD-
DITIONAL INDICATORS.—Each eligible recipient 
may identify in the local plan, local levels of 
performance for any additional indicators of 
performance. Such levels shall be considered to 
be the local levels of performance for purposes 
of this title. 
‘‘(C) LOCAL REPORT.—
‘‘(i) CONTENT OF REPORT.—Each eli-
gible recipient that receives an allotment 
under section 111 shall annually prepare 
and submit to the eligible agency a report 
regarding—
‘‘(I) the progress of such recipi-
ent in achieving the local adjusted lev-
els of performance on the core indica-
tors of performance; and 
‘‘(II) in the case of an eligible re-
cipient that receives funds described 
in section 112(a) for activities de-
scribed in section 135(b)(3), the 
progress in achieving the local ad-
justed levels of performance on the 
core indicators of performance with
respect to tech prep program partici-
pants. 
‘‘(ii) DATA.—Each eligible recipient 
shall—
‘‘(I) disaggregate data for each 
of the indicators of performance under 
section 113(b)(2) for the categories of 
students enumerated under section 
1111(b)(2)(C)(v)(II) of the Elemen-
tary and Secondary Education Act of 
1965 that are served under this Act; 
and 
‘‘(II) identify and quantify any 
disparities or gaps in performance be-
tween any such category of students 
and the performance of all students 
served by the eligible recipient under 
the Act. 
‘‘(iii) RULES
FOR
REPORTING
OF 
DATA.—The disaggregation of data under 
clause (ii) shall be required except in a 
case in which the number of students in a 
category is insufficient to yield statistically 
reliable information or in which the results
would reveal personally identifiable infor-
mation about an individual student. 
‘‘(iv) AVAILABILITY.—The report de-
scribed in clause (i) shall be made available 
to the public through a variety of formats, 
including electronically through the Inter-
net.’’. 
(d) STATE REPORT.—Section 113(c) (20 U.S.C. 
2323(c)) is amended—
(1) by redesignating paragraphs (2) and (3) as 
paragraphs (4) and (5), respectively, and inserting 
after paragraph (1) the following: 
‘‘(2) DISAGGREGATION OF DATA.—Each eligible 
agency under this subsection shall—
‘‘(A) disaggregate data for each of the in-
dicators of performance under section 113(b)(2) 
for the categories of students enumerated under 
section 1111(b)(2)(C)(v)(II) of the Elementary 
and Secondary Education Act of 1965 that are 
served under this Act; and 
‘‘(B) identify and quantify any disparities 
or gaps in performance between any such cat-
egory of students and the performance of all 
students served by the eligible agency under the 
Act.
‘‘(3) RULES FOR REPORTING OF DATA.—The 
disaggregation of data under paragraph (2) shall be 
required except in a case in which the number of 
students in a category is insufficient to yield statis-
tically reliable information or in which the results 
would reveal personally identifiable information 
about an individual student.’’; and 
(2) in paragraph (4) (as so redesignated)—
(A) by striking ‘‘special populations’’ and 
inserting ‘‘each of the populations described in 
section 3(25) and the populations described in 
section 1111(h)(1)(C)(i) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 
6311(h)(1)(C)(i))’’; and 
(B) by striking ‘‘have made’’ and inserting 
‘‘has made’’. 
SEC. 9. NATIONAL ACTIVITIES. 
(a) PROGRAM PERFORMANCE INFORMATION.—Sec-
tion 114(a)(3) (20 U.S.C. 2324(a)(3)) is amended by in-
serting ‘‘in the aggregate’’ after ‘‘international compari-
sons’’. 
(b) EVALUATION AND ASSESSMENT.—Section 114(c) 
(20 U.S.C. 2324(c)) is amended—
(1) by amending paragraph (2) to read as fol-
lows:
‘‘(2) INDEPENDENT
ADVISORY
PANEL.—The 
Secretary shall appoint an independent advisory 
panel, consisting of academic and vocational and 
technical education educators, administrators, ex-
perts in evaluation, research, and assessment, rep-
resentatives of labor organizations, businesses, par-
ents, guidance and counseling professionals, and 
other individuals with relevant expertise, to advise 
the Secretary on the implementation of the assess-
ment described in paragraph (3), including the 
issues to be addressed and the methodology of the 
studies involved to ensure the assessment adheres to 
the highest standards of quality. The advisory panel 
shall transmit to the Secretary and to Congress an 
independent analysis of the findings and rec-
ommendations resulting from such assessment. The 
Federal Advisory Committee Act (5 U.S.C. App.) 
shall not apply to the panel established under this 
subsection.’’; 
(2) in paragraph (3)—
(A) in subparagraph (A), by inserting ‘‘the 
implementation of the’’ after ‘‘and assessment 
of’’; 
(B) in subparagraph (B)—
(i) by inserting ‘‘but shall not be lim-
ited to’’ after ‘‘paragraph (1) shall in-
clude’’; 
(ii) by striking clauses (i), (ii), (iv), 
and (vii) and redesignating clauses (iii), 
(v), (vi), and (viii) as clauses (i) through 
(iv), respectively; 
(iii) in clause (i) (as so redesignated), 
by striking ‘‘, and academic, curricula in 
vocational and technical education pro-
grams,’’ and inserting ‘‘education (such as 
meeting State established teacher certifi-
cation or licensing requirements)’’; and 
(iv) in clause (ii) (as so redesig-
nated)—
(I) by striking ‘‘and employment 
outcomes’’ 
and 
all 
that 
follows 
through ‘‘including analyses of’’ and 
inserting ‘‘and vocational and tech-
nical education achievement and em-
ployment outcomes of vocational and 
technical education students, includ-
ing analyses of’’; 
(II) in subclause (I), by striking 
‘‘and tech-prep students’’ and insert-
ing ‘‘and students participating in the 
activities 
described 
in 
section 
135(b)(3)’’ ; 
(III) in subclause (II), by strik-
ing ‘‘academic, and vocational and 
technical, education’’ and inserting 
‘‘rigorous and challenging academic 
and vocational and technical edu-
cation, including a review of the effect 
of integrated rigorous and challenging 
academic and vocational and technical 
education on the achievement of stu-
dents’’; and 
(IV) in subclause (III), by insert-
ing ‘‘, particularly those in which 
math and science skills are critical,’’ 
after ‘‘high-skill careers’’; and 
(C) in subparagraph (C)—
(i) in clause (i)—
(I) by striking ‘‘the Committee 
on Education and the Workforce of 
the House of Representatives and the 
Committee on Labor and Human Re-
sources of the Senate’’ and inserting 
‘‘Congress’’; and
(II) by striking ‘‘2002’’ and in-
serting ‘‘2009’’ both places it appears; 
and 
(ii) in clause (ii), by striking ‘‘the 
Committee on Education and the Work-
force of the House of Representatives, the 
Committee on Labor and Human Re-
sources of the Senate,’’ and inserting 
‘‘Congress’’; 
(3) in paragraph (5)(A)—
(A) by striking ‘‘to carry out research’’ 
each place it appears, and inserting ‘‘to carry 
out scientifically based research’’; 
(B) in clause (i), by inserting ‘‘scientif-
ically based’’ after ‘‘programs, including’’; 
(C) in clause (ii), by inserting ‘‘that are in-
tegrated with rigorous and challenging aca-
demic education’’ after ‘‘implementation of vo-
cational and technical education programs’’; 
and 
(D) in clause (iii)(I), by inserting ‘‘and the 
integration of those systems with the academic 
education system’’ after ‘‘technical education 
systems’’; 
(4) in paragraph (6)—
(A) by striking: 
‘‘(6) DEMONSTRATIONS AND DISSEMINATION.—
‘‘(A) DEMONSTRATION
PROGRAM.—The’’, 
and inserting: 
‘‘(6) DEMONSTRATIONS AND DISSEMINATION.—
The’’; and 
(B) by striking subparagraph (B); and 
(5) in paragraph (8), by striking ‘‘this section’’ 
and all that follows and inserting ‘‘subsections (a), 
(b), and (c) of this section, such sums as may be 
necessary for each of fiscal years 2006 through 
2011.’’
(c) INCENTIVE GRANTS FOR ELIGIBLE AGENCIES.—
Section 114 is further amended by adding at the end the 
following new subsection: 
‘‘(d) INCENTIVE GRANTS
FOR ELIGIBLE AGEN-
CIES.—
‘‘(1) IN GENERAL.—From funds reserved under 
section 111(a)(1)(C), the Secretary may award 
grants to eligible agencies for exemplary perform-
ance in carrying out programs under this Act. Such 
awards shall be based on an eligible agency exceed-
ing State adjusted levels of performance established 
under section 113(b) and showing sustained or sig-
nificant improvement.
‘‘(2) SPECIAL
CONSIDERATION.—In awarding 
these grants, the Secretary may consider—
‘‘(A) an eligible agency’s success in effec-
tively developing connections between secondary 
education and postsecondary education and 
training; 
‘‘(B) an eligible agency’s integration of rig-
orous and challenging academic and technical 
coursework; and 
‘‘(C) an eligible agency’s progress in hav-
ing special populations participating in voca-
tional and technical education meet State ad-
justed levels of performance. 
‘‘(3) USE OF FUNDS.—The funds awarded to 
an eligible agency under this subsection may be used 
to carry out any activities authorized under section 
124, including demonstrations of innovative pro-
grams.’’. 
SEC. 10. OUTLYING AREAS, NATIVE AMERICAN PROGRAMS, 
AND TRIBALLY CONTROLLED INSTITUTIONS. 
(a) ASSISTANCE FOR THE OUTLYING AREAS.—Sec-
tion 115 (20 U.S.C. 2325) is amended to read as follows: 
‘‘SEC. 115. ASSISTANCE FOR THE OUTLYING AREAS. 
‘‘(a) OUTLYING AREAS.—From funds reserved pur-
suant to section 111(a)(1)(A), the Secretary shall—
‘‘(1) make a grant in the amount of $660,000 
to Guam; 
‘‘(2) make a grant in the amount of $350,000 
to each of American Samoa and the Commonwealth 
of the Northern Mariana Islands; and 
‘‘(3) make a grant in the amount of $160,000 
to the Republic of Palau. 
‘‘(b) REMAINDER.—Subject to the provisions of sub-
section (a), the Secretary shall make a grant of the re-
mainder 
of 
funds 
reserved 
pursuant 
to 
section 
111(a)(1)(A), in equal proportion, to each of Guam, 
American Samoa, and the Commonwealth of the Northern 
Mariana Islands, for the purpose of providing direct voca-
tional and technical educational services, including—
‘‘(1) teacher and counselor training and retrain-
ing; 
‘‘(2) curriculum development; and 
‘‘(3) the improvement of vocational and tech-
nical education and training programs in secondary 
schools and institutions of higher education, or im-
proving cooperative education programs involving 
both secondary schools and institutions of higher 
education. 
‘‘(c) RESTRICTION.—The Republic of Palau shall 
cease to be eligible to receive funding under this section
upon entering into an agreement for extension of United 
States educational assistance under the Compact of Free 
Association after the date of enactment of the Vocational 
and Technical Education for the Future Act.’’. 
(b) NATIVE AMERICAN PROGRAM.—Section 116 (20 
U.S.C. 2326) is amended—
(1) in subsection (a), by inserting a period at 
the end of paragraph (5); and 
(2) in subsection (b)—
(A) in paragraph (1), by striking ‘‘sub-
section (d)’’ and inserting ‘‘subsection (c)’’; and 
(B) in paragraph (2), by striking ‘‘(other 
than in subsection (i))’’. 
(c) TRIBALLY CONTROLLED INSTITUTIONS.—Section 
117 (20 U.S.C. 2327) is amended—
(1) by amending subsection (b) to read as fol-
lows: 
‘‘(b) USES OF GRANTS.—Amounts made available 
under this section shall be used for vocational and tech-
nical education programs for Indian students and for in-
stitutional support costs of the grant, including the ex-
penses described in subsection (e).’’; 
(2) in subsection (c), by inserting after para-
graph (2) the following:
‘‘(3) INDIRECT
COSTS.—Notwithstanding any 
other provision of law or regulation, the Secretary 
shall not require the use of a restricted indirect cost 
rate for grants issued under this section.’’; 
(3) by striking subsection (g) and redesignating 
subsections (h) and (i) as subsections (g) and (h), 
respectively; and 
(4) in subsection (h) (as so redesignated)—
(A) by striking ‘‘$4,000,000 for fiscal year 
1999 and’’; and 
(B) by striking ‘‘the 4 succeeding fiscal 
years’’ and inserting ‘‘fiscal years 2006 through 
2011’’. 
(d) OCCUPATIONAL
AND EMPLOYMENT INFORMA-
TION.—Section 118 (20 U.S.C. 2328) is amended—
(1) by amending subsection (b) to read as fol-
lows: 
‘‘(b) STATE LEVEL ACTIVITIES.—
‘‘(1) DESIGNATED
ENTITY.—In order for a 
State to receive a grant under this section, the eligi-
ble agency and the Governor of the State shall joint-
ly designate an entity in the State responsible for 
conducting the activities in this subsection. 
‘‘(2) APPLICATION.—The jointly designated 
agency shall submit an application to the Secretary
at the same time the State submits its state plan 
under section 122. The application shall be in such 
a manner and be accompanied by such information 
as the Secretary may reasonably require. At a min-
imum, the application shall describe how the jointly 
designated agency will assist the eligible agency in 
meeting its adjusted levels of performance under sec-
tion 113(b). 
‘‘(3) ACTIVITIES.—The jointly designated agen-
cy shall conduct activities—
‘‘(A) to provide support for career guid-
ance and academic counseling programs de-
signed to promote improved career and edu-
cation decision making by students (and par-
ents, as appropriate) regarding education and 
training options and preparations for high skill, 
high wage occupations; 
‘‘(B) to make available to students, par-
ents, teachers, administrators, and counselors, 
and improve accessibility to, information and 
planning resources that relate academic and vo-
cational and technical educational preparation 
to career goals and expectations; 
‘‘(C) to equip teachers, administrators, and 
counselors with the knowledge, skills, and occu-