Sec. 103. Alternative approaches to measuring adequate yearly progress. 
Sec. 104. Graduation rates. 
Sec. 105. Participation of students in assessments. 
Sec. 106. Students with disabilities requiring alternate assessments. 
Sec. 107. Assessments. 
Sec. 108. Regulations. 
Sec. 109. Research and standards. 
TITLE II—STATE FLEXIBILITY 
Sec. 201. State flexibility. 
TITLE III—IMPLEMENTATION OF SANCTIONS 
Sec. 301. School improvement and public school choice. 
Sec. 302. School district improvement. 
Sec. 303. Supplemental services. 
Sec. 304. Full implementation. 
TITLE IV—NONPUBLIC SCHOOLS 
Sec. 401. Participation of children enrolled in private schools. 
TITLE V—EFFECTIVE DATE AND REGULATIONS 
Sec. 501. Effective date. 
Sec. 502. Regulations. 
TITLE I—MEASURING ADEQUATE 
YEARLY PROGRESS 
SEC. 101. MEASURING ADEQUATE YEARLY PROGRESS OF 
GROUPS. 
(a) ‘‘N’’ SIZE MAY VARY BY SIZE OF SCHOOL OR 
LEA.—The following provisions of the Elementary and 
Secondary Education Act of 1965 are each amended by 
inserting after ‘‘reliable information’’ the following: ‘‘(the 
number required to be insufficient being greater, at the 
option of the State, for a local educational agency than 
for a school, and varying, at the option of the State, from 
agency to agency and school to school in proportion to 
total enrollment)’’: 
(1) In section 1111 (20 U.S.C. 6311)— 
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(A) subsection (b)(2)(C)(v), in the matter 
after subclause (II)(dd); 
(B) subsection (b)(2)(I)(ii); 
(C) subsection (b)(3)(C)(xiii); and 
(D) subsection (h)(C)(i). 
(2) Section 1431(b) (20 U.S.C. 6471(b)). 
(b) PERMITTING FEWER STUDENTS IN GROUP TO 
DEMONSTRATE PROGRESS TO MEET AYP SAFE HAR-
BOR.—Section 1111 (20 U.S.C. 6311) is further amended 
in subsection (b)(2)(I)(i) by striking ‘‘10 percent’’ and in-
serting ‘‘5 percent’’. 
(c) COUNTING STUDENTS WHO ARE IN MORE THAN 
ONE GROUP.—Section 1111 (20 U.S.C. 6311) is further 
amended in subsection (b)(2) by adding at the end the 
following: 
‘‘(L) COUNTING STUDENTS WHO 
ARE IN MORE THAN ONE GROUP.— 
For the purpose of determining ade-
quate yearly progress, the State may 
establish a uniform procedure for 
counting students under which a stu-
dent who belongs to more than one of 
the groups described in subparagraph 
(C)(v) is counted toward each such 
group to which the student belongs as 
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a fraction of 1 student, the numerator 
of the fraction being 1 and the de-
nominator being the number of such 
groups to which the student belongs.’’. 
SEC. 102. INTERMEDIATE GOALS NEED NOT INCREASE IN 
EQUAL INCREMENTS FOR ALL GROUPS. 
Section 1111 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6311) is further amended 
in subsection (b)(2)(H)(i)— 
(1) by striking ‘‘in equal increments’’; and 
(2) by inserting before the semicolon at the end 
the following: ‘‘in— 
‘‘(aa) increments defined by 
the State as appropriate for the 
group, for each of the groups of 
students described in subpara-
graph (C)(v); and 
‘‘(bb) equal increments, for 
all other students.’’. 
SEC. 103. ALTERNATIVE APPROACHES TO MEASURING ADE-
QUATE YEARLY PROGRESS. 
(a) EXPANSION OF AYP TO INCLUDE GAIN SCORES 
AND PARTIAL CREDIT FOR MEETING BASIC TARGETS.— 
Section 1111 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6311) is further amended in sub-
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section (b)(2)(C)(vii) by inserting after ‘‘such as’’ the fol-
lowing: ‘‘achievement under a ‘gain score’ approach (such 
as a value-added system), progress toward meeting basic 
proficiency targets,’’. 
(b) ALTERNATIVES TO AYP.—Such section is further 
amended in subsection (b)(2) by adding at the end the 
following: 
‘‘(M) ALTERNATE METHODS OF DEFINING 
ADEQUATE YEARLY PROGRESS.—In lieu of de-
fining adequate yearly progress under subpara-
graph (C), the State may define adequate year-
ly progress in any manner that— 
‘‘(i) uses the measures of performance 
and progress described in subparagraph 
(A); 
‘‘(ii) complies with the time line re-
quired by subparagraph (F); and 
‘‘(iii) includes intermediate goals, as 
required by subparagraph (H). 
‘‘(N) ADDITIONAL METHODS OF DEFINING 
ADEQUATE YEARLY PROGRESS.— 
‘‘(i) IN GENERAL.—For the purpose 
of meeting the requirements of this sec-
tion, the State educational agency may 
identify a school or local educational agen-
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cy as having made adequate yearly 
progress pursuant to subparagraph (I) in 
any year in which one or more groups de-
scribed in clause (v) of subparagraph (C) 
in that school or local educational agency 
do not meet or exceed the proficient level 
established under subparagraph (G) in a 
subject to which the accountability provi-
sions of this subsection applies or do not 
meet the requirement for any other indi-
cator established under subparagraph (D) 
if— 
‘‘(I) the same group or groups 
did not fail to meet the requirements 
for adequate yearly progress for that 
same subject or the other indicator in 
the previous year as determined with-
out using the provisions of this sub-
paragraph; and 
‘‘(II) the number of students who 
did not meet or exceed the proficient 
level in such group or groups is not 
greater in the aggregate than a per-
centage determined by the State edu-
cational agency but not in excess of 
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10 percent of the students enrolled in 
the school or local educational agency, 
as the case may be, in grades that 
were assessed in that subject or indi-
cator for adequate yearly progress. 
‘‘(ii) GREATER
PERCENTAGE.—The 
Secretary may, on an individual State 
basis, approve a greater percentage than 
the amount set forth in clause (i)(II) for 
determining whether a school or local edu-
cational agency has met the requirements 
for adequate yearly progress if— 
‘‘(I) the percentage over that 
amount is consistent with the account-
ability system of the State and is pro-
posed as an amendment to the State 
plan required by this section; and 
‘‘(II) the State educational agen-
cy applies a lower status designation 
of adequate yearly progress to any 
school or local educational agency that 
utilizes the percentage approved under 
this clause for determining that ade-
quate yearly progress was met. 
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‘‘(O) MULTIPLE
ASSESSMENTS
FOR
DE-
TERMINING ADEQUATE YEARLY PROGRESS.— 
‘‘(i) Subject to approval by the Sec-
retary, State plans submitted pursuant to 
subsection (a) may use a combination of 
assessments aligned with the academic 
standards of the State and other indicators 
to determine whether adequate yearly 
progress is made. The State plan may pro-
vide for the following: 
‘‘(I) The assignment of specific 
weights or points to the assessments 
or other indicators that are used in 
order to calculate a composite score to 
determine whether adequate yearly 
progress is made. 
‘‘(II) The use of portfolios, 
projects, and performance-based as-
sessments consistent with criteria es-
tablished by the State. 
‘‘(III) The use of teacher obser-
vations that meet State criteria to as-
sess— 
‘‘(aa) the performance of 
students for whom such method 
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of assessment would be appro-
priate, including students identi-
fied in subclauses (II)(cc) and 
(dd) of subparagraph (C)(v); and 
‘‘(bb) the performance of 
students on skills or uses of in-
formation that are not ade-
quately provided for in the State 
assessment instrument. 
‘‘(IV) The use of high school 
graduation rates, the number or por-
tion of advanced placement and inter-
national baccalaureate courses taken 
by students in specific subjects, post-
secondary education admissions, and 
other factors that are appropriate for 
the grade level of the students in-
volved in addition to the academic as-
sessment of those students.’’. 
SEC. 104. GRADUATION RATES. 
Section 1111(b)(2) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6311(b)(2)) is amended 
by adding at the end the following: 
‘‘(L) 
GRADUATION
AND
DROP-OUT 
RATES.—In determining the graduation and 
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drop-out rates required by this Act, the State 
plan may provide alternatives, in lieu of count-
ing students in the year of the on-time, 4-year 
high school graduation cohort of such students, 
in order to address the following circumstances: 
‘‘(i) Students who do not graduate on 
time and who are enrolled in school for the 
summer or semester (and where applicable 
are continuously enrolled in a subsequent 
semester) after their fourth year of high 
school, except that such students shall be 
counted in the calculation of the gradua-
tion and dropout rates for the school year 
in which such graduation (or noncomple-
tion) occurs. 
‘‘(ii) Students who leave school prior 
to earning a high school diploma and who 
are enrolled for the semester after their 
fourth year of high school in an accredited 
postsecondary institution in a program 
leading to a two-year or a four-year degree 
or in a job training program that is ap-
proved by the State and prepares students 
for employment and to advance beyond the 
entry level, except that— 
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‘‘(I) such students shall be count-
ed in the school year in which such 
graduation (or noncompletion) occurs; 
and 
‘‘(II) such determination may be 
made on the basis of whether such 
students leave school or a job training 
program having successfully com-
pleted the courses or job training pro-
gram that the State would deem as 
having satisfied the requirements for 
a high school diploma.’’. 
SEC. 105. PARTICIPATION OF STUDENTS IN ASSESSMENTS. 
(a) PERCENTAGE OF STUDENTS REQUIRED TO TAKE 
ASSESSMENTS.—Section 1111 of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 6311) is further 
amended in subsection (b)(2)(I)(ii)— 
(1) by striking ‘‘95 percent’’ the first place 
such term appears and inserting ‘‘a percentage 
(from 90 to 95 percent, based on criteria established 
in the State plan)’’; and 
(2) by striking ‘‘95 percent’’ the second place 
such term appears and inserting ‘‘percentage’’. 
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(b) DETERMINING PARTICIPATION RATES.—Section 
1111 of such Act (20 U.S.C. 6311) is further amended 
in subsection (b)(2) by adding at the end the following: 
‘‘(N) STUDENTS EXEMPT FROM PARTICI-
PATING IN ASSESSMENTS.—For the purpose of 
determining compliance with the percentage re-
quired by subparagraph (I)(ii), the State may 
provide for a student to be excluded from the 
determination with respect to an assessment if 
any of the following apply: 
‘‘(i) EXCUSED
ABSENCE.—The stu-
dent did not take that assessment by rea-
son of— 
‘‘(I) a medical condition; 
‘‘(II) a parental decision to ex-
empt the student, if such a decision is 
available under, and exercised pursu-
ant to, State law; or 
‘‘(III) a circumstance out of the 
control of the student, school, or local 
educational agency, such as a natural 
disaster. 
‘‘(ii) CHRONIC
NONATTENDANCE.— 
Each of the following is true: 
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‘‘(I) The student did not take the 
assessment and has demonstrated an 
unusual and chronic pattern of non- 
attendance, as defined by the State. 
‘‘(II) The local educational agen-
cy in which the student is enrolled is 
implementing a plan to increase par-
ticipation in the assessments by stu-
dents demonstrating such a pattern of 
nonattendance. 
‘‘(O) STUDENTS ASSIGNED ‘BELOW BASIC’ 
SCORE BY DEFAULT.—For the purpose of de-
termining adequate yearly progress, and for the 
purpose of determining compliance with the 
percentage required by subparagraph (I)(ii), a 
student who does not take an assessment and 
who is not excluded under subparagraph (N) 
may, if the State plan so provides, be treated 
as having taken the assessment and having 
achieved a score below the level described in 
paragraph (1)(D)(ii)(III) (below basic).’’. 
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SEC. 106. STUDENTS WITH DISABILITIES REQUIRING AL-
TERNATE ASSESSMENTS. 
Section 1111 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6311) is further amended 
in subsection (b)(2) by adding at the end the following: 
‘‘(P) STUDENTS
WITH
DISABILITIES
RE-
QUIRING
ALTERNATE
ASSESSMENTS.—Con-
sistent with paragraph (3), a State may imple-
ment the amendments made to part 200 of title 
34, Code of Federal Regulations, on December 
9, 2003 (68 Fed. Reg. 68698) (related to 
achievement of students with significant cog-
nitive disabilities) as if such amendments— 
‘‘(i) permitted 3 percent of such stu-
dents to be counted for the purposes of de-
termining adequate yearly progress, except 
that— 
‘‘(I) any assessment given to any 
such student for the purposes of de-
termining 
such 
adequate 
yearly 
progress must be required by the indi-
vidualized education plan of such stu-
dent; 
‘‘(II) the individualized education 
plan must reflect the need for any 
such alternate assessment based on 
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the evaluation of such student and the 
services provided such student under 
section 614 of the Individuals with 
Disabilities Education Act (42 U.S.C. 
1400 et seq.); and 
‘‘(III) the individualized edu-
cation plan must include written con-
sent from the parent of such student 
prior to such alternate assessment 
being administered; 
‘‘(ii) used the term ‘students requiring 
alternate assessments’ in lieu of the term 
‘students with the most significant cog-
nitive disabilities’; and 
‘‘(iii) permitted the eligibility of such 
students to be determined by the State 
educational agency, except that such eligi-
bility shall, at a minimum, include— 
‘‘(I) students who are receiving 
services pursuant to a plan required 
under section 504 of the Rehabilita-
tion Act of 1973 and part 104 of title 
34, Code of Federal Regulations; 
‘‘(II) students who are assessed 
at a grade level below the grade level 
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in which they are enrolled (out of level 
assessments); and 
‘‘(III) students considered stu-
dents with the most significant cog-
nitive disabilities, as defined by the 
State educational agency, prior to the 
enactment of the No Child Left Be-
hind Improvements Act of 2007.’’. 
SEC. 107. ASSESSMENTS. 
Section 1111(b)(3)(C) of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 6311(b)(3)(C)) 
is amended— 
(1) in clause (ix) by striking subclause (III) and 
inserting the following: 
‘‘(III) the inclusion of limited- 
English-proficient students, who— 
‘‘(aa) may, consistent with 
paragraph (2)(P), be assessed, as 
determined by the local edu-
cational agency, through the use 
of an assessment which requires 
achievement of specific gains for 
up to three school years from the 
first year any such student is as-
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sessed for the purposes of this 
subsection; 
‘‘(bb) may, at the option of 
the State educational agency, be 
assessed in the first year any 
such student attended school in 
the United States (not including 
Puerto Rico); 
‘‘(cc) shall not be included 
in any calculation of adequate 
yearly progress when such stu-
dents are in the first year of at-
tending school in the United 
States 
(not 
including 
Puerto 
Rico); and 
‘‘(dd) shall be assessed in a 
valid and reliable manner and 
provided reasonable accommoda-
tions on assessments adminis-
tered to such students under this 
paragraph, including, to the ex-
tent practicable, assessments in 
the language and form most like-
ly to yield accurate data on what 
such students know and can do 
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in academic content areas, until 
such 
students 
have 
achieved 
English language proficiency as 
determined 
under 
paragraph 
(7);’’; 
(2) in clause (xiv) by striking ‘‘and’’ at the end; 
(3) by redesignating clause (xv) as clause (xvii); 
and 
(4) by inserting after clause (xiv) the following: 
‘‘(xv) at the option of the local edu-
cational agency, be administered multiple 
times to any such student during the 
school year, or (at the option of the State) 
a subsequent date prior to the beginning of 
the next school year, provided that the 
local educational agency shall determine 
which score of any such administration be 
used for determining adequate yearly 
progress; 
‘‘(xvi) at the option of the school dis-
trict, measure the achievement of a stu-
dent as if such student were in the grade 
level proceeding the grade level of such 
student, provided that— 
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‘‘(I) if such student meets the 
proficient level of achievement for 
such proceeding grade level, such 
score shall be used to determine ade-
quate yearly progress for such pro-
ceeding grade level; and 
‘‘(II) if such student does not 
meet the proficient level of achieve-
ment for such proceeding grade level, 
such score is not used for the pur-
poses of determining adequate yearly 
progress; and’’. 
SEC. 108. REGULATIONS. 
Section 1111 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6311) is further amended 
by adding at the end the following: 
‘‘(o) REGULATIONS.— 
‘‘(1) CODIFICATION OF REGULATIONS AFFECT-
ING
LIMITED
ENGLISH
PROFICIENT
CHILDREN.— 
This part shall be implemented consistent with 
amendments proposed to part 200 of title 34, Code 
of Federal Regulations, on June 24, 2004 (69 Fed. 
Reg. 35462) (relating to the assessment of limited 
English proficient children and the inclusion of lim-
ited-English-proficient children in subgroups) as if 
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such amendments permitted students who were pre-
viously identified as limited-English-proficient to be 
included in the group described in subsection 
(b)(2)(C)(v)(II)(dd) for three additional years, as 
determined by a local educational agency (based on 
the individual needs of a child) for the purposes of 
determining adequate yearly progress. 
‘‘(2) ISSUANCE
OF
REGULATIONS
AFFECTING 
CHILDREN WITH DISABILITIES.—The Secretary shall 
issue regulations not later than 180 days after the 
date of the enactment of the No Child Left Behind 
Improvements Act of 2006 regarding the participa-
tion of children with disabilities under this part. 
Such regulations shall permit a State to include, for 
up to three years, students who were children with 
disabilities as part of the group described under sec-
tion 1111(b)(2)(C)(v)(II)(cc) but who are no longer 
identified as children with disabilities. Students with 
disabilities may be provided an alternate assessment, 
including an out of level assessment, if deemed ap-
propriate by the individual education plan team for 
that student and included within the written indi-
vidual education plan for that student.’’. 
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SEC. 109. RESEARCH AND STANDARDS. 
(a) IN GENERAL.—From funds appropriated under 
subsection (b), the Secretary is authorized to conduct re-
search and to make grants to States and groups of States 
for the purpose of developing and implementing standards 
and assessments in academic subjects for which States are 
held accountable for making adequate yearly progress 
under the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6301 et seq.), subject to the following 
conditions: 
(1) HIGH
QUALITY
STANDARDS.—The stand-
ards that are developed pursuant to this subsection 
will— 
(A) be designed with the expectation that 
students will graduate from high school pre-
pared to enter postsecondary education or the 
workplace; and 
(B) be clear, concise, and consistent with 
the rigor of standards in nations that research 
validates as being high caliber. 
(2) PROHIBITION.—The Federal Government 
and any entity under its control is prohibited from— 
(A) establishing academic standards or re-
quiring any State to adopt specific standards or 
assessments as a condition for receiving funds 
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under any program administered by the De-
partment; and 
(B) establishing any assessment or requir-
ing any State to adopt a specific assessment for 
determining adequate yearly progress. 
(3) INCENTIVE.—A State that adopts standards 
in an academic system pursuant to paragraph (1) 
may— 
(A) revise the measurable objectives re-
quired by section 1111(b)(2)(G) of the Elemen-
tary and Secondary Education Act of 1965 (8 
U.S.C. 6311(b)(2)(G)); 
(B) extend the time line set forth in sec-
tion 1111(b)(2)(F) of such Act to a subsequent 
year but not beyond the 2017–18 school year; 
(C) exclude assessment results from the 
determination of whether a school or local edu-
cational agency is in need of improvement 
under section 1116(b)(1)(A) of such Act for the 
school year in which such standards are imple-
mented by local educational agencies; and 
(D) defer the implementation of the re-
quirements of paragraph (5), (7), and (8) of 
section 11116(b) of such Act for the school year 
following the first school year in which such 
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standards are implemented by local educational 
agencies. 
(4) STATE PLANS.—The State plan under sec-
tion 1111 of such Act of any State that adopts 
standards pursuant to paragraph (1) shall indicate 
how the State will— 
(A) assist local educational agencies to— 
(i) provide for the professional devel-
opment of teachers and administrators to 
effectively teach to such standards; 
(ii) align curriculum with such stand-
ards; 
(iii) acquire and align, as the case 
may be, course materials, technology data 
systems and other resources necessary to 
effectively teach to such standards; 
(iv) ensure that the State will give a 
high priority in providing assistance under 
this subsection to schools and local edu-
cational agencies wherein 35 percent or 
more of the students in the group identi-
fied 
under 
subclause 
(I) 
of 
section 
1111(b)(2)(C)(v) of such Act did not make 
adequate yearly progress targets in the 
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year prior to the implementation of such 
standards; and 
(v) ensure that representatives of 
teachers, 
administrators, 
school 
board 
members, parents, and other stakeholders 
are provided timely involvement in the de-
velopment, adoption, implementation, and 
evaluation of standards and assessments 
funded by this section; and 
(B) use State funds and the funds pro-
vided under such Act to support the activities 
described in subparagraph (A) as a top priority. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$600,000,000. 
TITLE II—STATE FLEXIBILITY 
SEC. 201. STATE FLEXIBILITY. 
Section 1111 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6311) is amended— 
(1) by redesignating subsections (f) through 
(m) as subsections (g) through (n); and 
(2) by inserting after subsection (e) the fol-
lowing: 
‘‘(f) STATE FLEXIBILITY.— 
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‘‘(1) PLANS.—In approving plans under sub-
section (e), the Secretary shall accord a State max-
imum flexibility to make such plans and any revi-
sions compatible with the accountability system of 
such State. 
‘‘(2) WAIVERS.—Through the authority pro-
vided under part D of title IX, the Secretary may 
grant a waiver of any statutory or regulatory re-
quirement of this part requested by a State edu-
cational agency or local educational agency. 
‘‘(3) NOTIFICATION.—Not later than 30 days 
after the approval of any revisions to the plan of a 
State, or the granting of any waivers described 
under paragraph (2), the Secretary shall notify each 
State educational agency of such revision or waiver 
and, through the Website of the Department of Edu-
cation and the Federal Register, the public. The no-
tification described in the preceding sentence shall 
be in writing and include a clear and complete expla-
nation of such revision or wavier. 
‘‘(4) APPLICABILITY OF PLAN REVISIONS AND 
WAIVERS
TO
OTHER
AGENCIES.—A revision to a 
plan approved under this part or a waiver issued 
under this subsection or under part D of title IX 
may be applied in any other State or local edu-
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cational agency, provided the State or agency meets 
any requirements issued by the Secretary applicable 
to such revision or waiver as implemented by such 
State or agency.’’. 
TITLE III—IMPLEMENTATION OF 
SANCTIONS 
SEC. 301. SCHOOL IMPROVEMENT AND PUBLIC SCHOOL 
CHOICE. 
Section 1116(b) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6316(b)) is amended— 
(1) in paragraph (1)(A) by inserting after ‘‘2 
consecutive years’’ the following: ‘‘(in the same sub-
ject for the same group of students, as described in 
section 1111(b)(2)(C)(v))’’; 
(2) in paragraph (1)(E)(i)— 
(A) by striking ‘‘In the case’’ and inserting 
‘‘Consistent with subparagraph (G), in the 
case’’; 
(B) by striking ‘‘all students enrolled in 
the school’’ and inserting ‘‘students who failed 
to meet the proficient level of achievement on 
the 
assessments 
described 
under 
section 
1111(b)(3) and are in the group whose aca-
demic performance caused the identification 
under this paragraph’’; and 
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(C) by striking ‘‘another public school’’ 
and inserting ‘‘one other public school identi-
fied, and’’; 
(3) in paragraph (1)(E) by adding at the end 
the following: 
‘‘(iii) SPECIAL CONDITIONS.—A local 
educational agency shall not be required to 
implement the transfer of a student to a 
school under this subparagraph if doing so 
would— 
‘‘(I) violate a State or local law 
or policy relating to health, safety, or 
class size; 
‘‘(II) result in overcrowding, the 
installation of mobile classrooms, con-
struction of classrooms, or other sig-
nificant capital improvements in that 
school; or 
‘‘(III) be impractical due to dis-
tance, geographical barriers or haz-
ards, time of travel, or unusually high 
cost of travel.’’; 
(4) in paragraph (1) by adding at the end the 
following: 
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‘‘(G) OPTIONS.—A local educational agen-
cy may offer supplemental services as described 
in subsection (e) in place of the option to trans-
fer to one or more public schools described in 
subparagraph (E) for the purposes of meeting 
the 
requirements 
of 
paragraphs 
(5)(A), 
(7)(C)(i), or (8)(A)(i).’’; 
(5) in paragraph (5) by inserting after ‘‘ade-
quate yearly progress’’ the following: ‘‘(in the same 
subject for the same group of students)’’; 
(6) in paragraph (7)(C) by inserting after ‘‘ade-
quate yearly progress’’ the following: ‘‘(in the same 
subject for the same group of students)’’; 
(7) in paragraph (7)(C)(i)— 
(A) by striking ‘‘all’’; and 
(B) by striking ‘‘another’’ and inserting 
‘‘an other’’; 
(8) in paragraph (7) by amending subpara-
graph (D) to read as follows: 
‘‘(D) DELAY.—Notwithstanding any other 
provision of this paragraph, the local edu-
cational agency may delay, for a period not to 
exceed 1 year, implementation of the require-
ments under paragraph (5), corrective action 
under this paragraph, or restructuring under 
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paragraph (8) if the school makes adequate 
yearly progress for 1 year or if its failure to 
make adequate yearly progress is due to— 
‘‘(i) exceptional or uncontrollable cir-
cumstances, such as a natural disaster; 
‘‘(ii) a precipitous and unforeseen de-
cline in the financial resources of the local 
educational agency or school; or 
‘‘(iii) a sudden or significant increase 
in the number of percentage of students 
represented by a group described in section 
1111(b)(2)(C)(v). 
No such period shall be taken into account in 
determining the number of consecutive years of 
failure to make adequate yearly progress.’’; 
(9) in paragraph (8)(A) by inserting after ‘‘ade-
quate yearly progress’’ the following: ‘‘in the same 
subject for the same group of students and the total 
number of students who did not meet or exceed the 
proficient level of academic achievement (who are 
members 
of 
a 
group 
described 
in 
section 
1111(b)(2)(C)(v)) that did not make adequate yearly 
progress exceed 35 percent of all students enrolled 
in such school who took the assessment in such sub-
ject’’; 
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(10) in paragraph (8)(A)(i)— 
(A) by striking ‘‘all’’; and 
(B) by striking ‘‘another’’ and inserting 
‘‘an other’’; 
(11) in paragraph (10) by adding at the end 
the following: 
‘‘(E) 
DETERMINATION
THAT
LESSER 
AMOUNT IS NEEDED.— 
‘‘(i) IN
GENERAL.—If a local edu-
cational agency determines under subpara-
graph (A) that a lesser amount is needed 
to comply with paragraph (9) and to sat-
isfy all requests for supplemental edu-
cational services under subsection (e), the 
agency shall be required by this paragraph 
to spend only that lesser amount. The re-
maining amount (equal to the difference 
between that lesser amount and the 
amount otherwise required to be spent by 
subparagraph (A)) shall be merged back 
with the agency’s allocation under subpart 
2 and shall be available accordingly. 
‘‘(ii) TIMING.—A determination de-
scribed in clause (i) may not be made— 
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‘‘(I) until a reasonable time after 
notice to parents is made under para-
graph (6) and a reasonable time after 
the deadline for making requests for 
such transportation or services has 
passed; and 
‘‘(II) after December 15, or after 
the date specified in the State plan, if 
the State plan specifies an earlier 
date. 
‘‘(iii) ASSURANCES.—The remaining 
amount may not be merged back with the 
agency’s allocation, as described in clause 
(i), until after the agency notifies the State 
of the determination made under clause (i) 
and provides assurances to the State that 
the determination was made in compliance 
with this paragraph.’’; and 
(12) in paragraph (13) by striking ‘‘is no longer 
identified’’ and all that follows through the period at 
the end and inserting the following: ‘‘has made ade-
quate yearly progress for the group in which the 
child is a member in the same subject for which a 
failure to meet adequate yearly progress triggered 
the transfer.’’. 
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SEC. 302. SCHOOL DISTRICT IMPROVEMENT. 
Section 1116(c)(10) of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 6316(c)(10)) 
is amended— 
(1) in subparagraph (B) by amending clause 
(ii) to read as follows: 
‘‘(ii) shall take corrective action with 
respect to a local educational agency— 
‘‘(I) that fails to make adequate 
yearly progress, as defined by the 
State, in the same subject, in either 
(at the option of the State) each 
grade span (as determined by the 
State) or averaged across all grades, 
for a group described in section 
1111(b)(2)(C)(v) by the end of the 
second full school year after the iden-
tification of such agency under para-
graph (3); and 
‘‘(II) whose total number of stu-
dents (who are members of a group 
described in section 1111(b)(2)(C)(v)) 
that did not meet or exceed the pro-
ficient level of academic achievement 
exceed 35 percent of all students en-
rolled in a school in such agency who 
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took the assessment in such subject 
and averaged across all grades; and’’; 
and 
(2) by amending subparagraph (F) to read as 
follows: 
‘‘(F) DELAY.—Notwithstanding subpara-
graph (B)(ii), a State educational agency may 
delay, for a period not to exceed 1 year, imple-
mentation of corrective action under this para-
graph if the local educational agency makes 
adequate yearly progress for 1 year or its fail-
ure to make adequate yearly progress is due 
to— 
‘‘(i) exceptional or uncontrollable cir-
cumstances, such as a natural disaster; 
‘‘(ii) a precipitous and unforeseen de-
cline in the financial resources of the local 
educational agency; or 
‘‘(iii) a sudden or significant increase 
in the number or percentage of students 
represented by any group described in sec-
tion 1111(b)(2)(C)(v).’’. 
SEC. 303. SUPPLEMENTAL SERVICES. 
Section 1116(e) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6316(e)) is amended— 
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(1) in paragraph (4)— 
(A) in subparagraph (B), by inserting after 
‘‘objective criteria’’ the following: ‘‘(developed 
through continuous consultation with local edu-
cational agencies in the State)’’; 
(B) in subparagraph (D) by striking ‘‘and’’ 
at the end; 
(C) in subparagraph (E) by striking the 
period at the end and inserting ‘‘; and’’; and 
(D) by adding at the end the following: 
‘‘(F) Develop procedures by which a local 
educational agency may— 
‘‘(i) present complaints and docu-
mentation of such complaints to the State 
educational agency regarding the qualifica-
tions, operation, and evaluation of ap-
proved providers and potential providers 
seeking such approval; and 
‘‘(ii) demonstrate to the State edu-
cational agency that any provider should 
not be authorized to provide supplemental 
services, as described in this subsection to 
any school or schools under the jurisdiction 
of that local education agency.’’; 
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(2) by redesignating paragraph (12) as para-
graph (13); and 
(3) by inserting after paragraph (11) the fol-
lowing: 
‘‘(12) LOCAL EDUCATIONAL AGENCIES AS PRO-
VIDERS.—Nothing in this section prohibits a local 
educational agency that has failed to make adequate 
yearly progress or is in improvement, corrective ac-
tion, or restructuring status pursuant to subsection 
(c) from providing supplemental services, solely due 
to such failure. In developing and applying objective 
criteria under paragraph (4)(B) and withdrawing 
approval for providers under paragraph (4)(D), a 
State educational agency may not consider whether 
a local educational agency made adequate yearly 
progress or its status under subsection (c).’’. 
SEC. 304. FULL IMPLEMENTATION. 
Section 1116 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6316) is amended by add-
ing at the end the following: 
‘‘(i) 
CONDITIONAL
IMPLEMENTATION.—Notwith-
standing any other provision of this section, a State edu-
cational agency, local educational agency, or school, as ap-
plicable, may defer the requirements of subsections (b)(7) 
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and (8) and subsections (c)(7) and (10) in any fiscal year 
for which both of the following apply: 
‘‘(1) The amount appropriated under section 
1002(a) for that fiscal year fails to exceed, by at 
least $2,500,000,000, the amount appropriated 
under that section for the preceding fiscal year. 
‘‘(2) The amount appropriated under section 
611(i) of the Individuals with Disabilities Education 
Act (42 U.S.C. 1400 et seq.) for that fiscal year 
fails to exceed, by at least $2,000,000,000, the 
amount appropriated under that section for the pre-
ceding fiscal year.’’. 
TITLE IV—NONPUBLIC SCHOOLS 
SEC. 401. PARTICIPATION OF CHILDREN ENROLLED IN PRI-
VATE SCHOOLS. 
Section 1120 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6320) is amended— 
(1) in subsection (b)(1)(D) by inserting after 
‘‘academically assessed’’ the following: ‘‘(consistent 
with subsection (f))’’; and 
(2) by adding at the end the following: 
‘‘(f) ACCOUNTABILITY FOR CHILDREN ENROLLED IN 
PRIVATE SCHOOLS.— 
‘‘(1) IN
GENERAL.—Notwithstanding section 
9506(a), as specifically provided for in this sub-
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section, children enrolled in private elementary 
schools and secondary schools that receive edu-
cational services or other benefits under this part 
shall participate in the assessments described under 
section 1111(b)(3). 
‘‘(2) REPORTING.— 
‘‘(A) The State educational agency shall 
report the results of the assessments taken by 
students in private elementary and secondary 
schools by grade and subject to— 
‘‘(i) the private elementary or sec-
ondary school that such students attend; 
and 
‘‘(ii) the local educational agency in 
which the private school is geographically 
located in a manner and extent that is con-
sistent with the provisions of section 
1111(i) and the function of the local edu-
cational agency under section 1120(b). 
‘‘(B) A private elementary or secondary 
school shall report the assessment results re-
ceived from the State educational agency under 
subparagraph (A) to the parents of students en-
rolled in such school who receive services under 
this part in writing and in the native language 
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