(2) the Chief Executive Officer shall award the
State’s share of the funds described in section
201(b) to the State Commission on National and
Community Service.
SEC. 205. LOCAL READING PROGRAMS.
(a) SUBGRANTS TO LOCAL APPLICANTS.—Except as
provided in sections 206 and 207, each State shall use
funds awarded to it under this title to make subgrants
to local applicants to develop, carry out, or expand local
reading programs.
(b) ELIGIBLE APPLICANTS.—An eligible local appli-
cant is a consortium consisting of—
(1) a local educational agency (or one or more
schools of such an agency); and
(2) at least one other public or private agency
or organization (such as a library, museum, or other
cultural institution, community-based organization,
business or other employer, senior citizens group,
youth group, parent association, civic group, literacy
organization, or institution of higher education) or
an Indian tribe.
(c) LOCAL APPLICATIONS.—
(1) STATE
CONTACT
PERSON.—Each eligible
local applicant in a State wishing to receive funds
under this title shall submit an application to a sin-
gle contact jointly identified by the State educational
agency and the State Commission on National and
Community Service, to be known as the ‘‘America
Reads Challenge’’ contact.
(2) CONTENTS.—Each application shall—
(A) describe how the applicant will use the
funds to develop and carry out, or to expand,
a local reading program that meets each of the
elements identified in section 102(b);
(B) identify a local educational agency or
other member of the consortium with a record
of sound fiscal management to act as the appli-
cant’s fiscal agent; and
(C) include such other information as the
State educational agency and the State Com-
mission on National and Community Service
may require.
(d) AUTHORIZED ACTIVITIES.—
(1) FUNDS PROVIDED BY SECRETARY.—Funds
made available under this title by the Secretary shall
be used by local applicants for expenses reasonably
necessary to develop, carry out, or expand effective
local reading programs, such as the costs of reading
specialists, materials, training of tutors, and family
literacy activities.
(2) FUNDS
PROVIDED
BY
CHIEF
EXECUTIVE
OFFICER.—Funds made available under this title by
the Chief Executive Officer shall be used by local ap-
plicants for activities that are described in this title
and authorized by the national service laws.
SEC. 206. LOCAL PARENTS AS FIRST TEACHERS PROGRAMS.
(a) MANDATORY FUNDING.—Notwithstanding any
other provision of this title, each State shall use at least
20 percent of the funds it receives under section 204(1)
to develop, carry out, or expand effective local programs,
such as family literacy programs, that provide appropriate
support, training, and educational materials to involve and
assist parents (and other adult primary caregivers) to help
their children become successful readers by the end of the
third grade.
(b) ELIGIBLE ENTITIES.—Funds available under this
section—
(1) may be included as part of an award to an
eligible local applicant under section 205; or
(2) may be separately awarded to consortia de-
scribed in that section (except that such a consor-
tium need not include a local educational agency or
a school of a local educational agency).
(c) CRITERIA AND REQUIREMENTS.—Funds available
under this section shall be provided only to applicants de-
scribed in subsection (b) that—
(1) have a demonstrated record of successfully
working with parents in improving the reading skills
of their young children or plan to use a program
model that has been demonstrated to be effective;
and
(2) demonstrate that the proposed program—
(A) has the support of the community; and
(B) will be coordinated with other pro-
grams that provide support for parents, such as
adult education programs.
SEC. 207. STATE ADMINISTRATION.
Notwithstanding any other provision of this title,
each State educational agency and State Commission on
National and Community Service may use not more than
one percent of the amount it receives under this title for
any fiscal year for the administration of this title.
TITLE 
III—LOCAL 
AND 
RE-
GIONAL GRANTS TO SUPPORT
EFFECTIVE MODELS AND EX-
EMPLARY PARTNERSHIPS
SEC. 301. FUNDS AVAILABLE.
(a) DEPARTMENT
OF
EDUCATION.—From the
amounts appropriated by section 103(a)(1) for each fiscal
year, the Secretary shall make available $50,000,000 to
carry out this title.
(b) CORPORATION.—For each fiscal year, the Chief
Executive Officer shall make available to carry out this
title 25 percent of the amount made available under sec-
tion 103(b) for that fiscal year. The amount made avail-
able under this subsection includes the amounts necessary
for national service educational awards for national service
participants, to be deposited in the National Service
Trust, as provided in subtitle D of title I of the National
and Community Service Act of 1990 (42 U.S.C. 12601
et seq.).
SEC. 302. GRANTS AUTHORIZED.
(a) ELIGIBLE PROGRAMS
AND ACTIVITIES.—The
Secretary and the Chief Executive Officer, acting jointly,
shall make competitive grants to eligible applicants to de-
velop, carry out, or expand—