II
Calendar No. 53
107TH CONGRESS
1ST SESSION
H. R. 1
IN THE SENATE OF THE UNITED STATES
MAY 25, 2001
Received; read twice and placed on the calendar
AN ACT
To close the achievement gap with accountability, flexibility,
and choice, so that no child is left behind.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘No Child Left Behind
Act of 2001’’.
SEC. 2. REFERENCES.
Except as otherwise specifically provided in this Act,
whenever in this Act an amendment or repeal is expressed
as the amendment or repeal of a section or other provision,
the reference shall be considered to be made to a section
or other provision of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6301 et seq.).
SEC. 3. TRANSITION.
Except as otherwise specifically provided in this Act,
or any amendment made by this Act, any person or agency
that was awarded a grant under the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 6301 et seq.)
prior to the date of the enactment of this Act shall con-
tinue to receive funds in accordance with the terms of such
award, except that such funds may not be provided after
the date that is one year after the effective date of this
Act.
SEC. 4. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. References.
Sec. 3. Transition.
Sec. 4. Table of contents.
Sec. 5. Effective date.
TITLE I—IMPROVING THE ACADEMIC PERFORMANCE OF THE
DISADVANTAGED
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PART A—BASIC PROGRAM
Sec. 101. Disadvantaged children meet high academic standards.
Sec. 102. Authorization of appropriations.
Sec. 103. Reservation for school improvement.
Sec. 104. Basic programs.
Sec. 105. School choice.
Sec. 106. Academic assessment and local educational agency and school im-
provement.
Sec. 107. State assistance for school support and improvement.
Sec. 108. Academic achievement awards program.
PART B—STUDENT READING SKILLS IMPROVEMENT GRANTS
Sec. 111. Reading first; early reading first.
Sec. 112. Amendments to Even Start.
Sec. 113. Inexpensive book distribution program.
PART C—EDUCATION OF MIGRATORY CHILDREN
Sec. 121. State allocations.
Sec. 122. State applications; services.
Sec. 123. Authorized activities.
Sec. 124. Coordination of migrant education activities.
PART D—NEGLECTED OR DELINQUENT YOUTH
Sec. 131. Neglected or delinquent youth.
Sec. 132. Findings.
Sec. 133. Allocation of funds.
Sec. 134. State plan and State agency applications.
Sec. 135. Use of funds.
Sec. 136. Transition services.
Sec. 137. Purpose.
Sec. 138. Programs operated by local educational agencies.
Sec. 139. Local educational agency applications.
Sec. 140. Uses of funds.
Sec. 141. Program requirements.
Sec. 142. Program evaluations.
PART E—FEDERAL EVALUATIONS AND DEMONSTRATIONS
Sec. 151. Evaluations.
Sec. 152. Demonstrations of innovative practices.
Sec. 153. Ellender-close up fellowship program; dropout reporting.
PART F—COMPREHENSIVE SCHOOL REFORM
Sec. 161. School reform.
PART G—RURAL EDUCATION FLEXIBILITY AND ASSISTANCE
Sec. 171. Rural education.
PART H—GENERAL PROVISIONS OF TITLE I
Sec. 181. General provisions.
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TITLE II—PREPARING, TRAINING, AND RECRUITING QUALITY
TEACHERS
Sec. 201. Teacher quality training and recruiting fund.
Sec. 202. National writing project.
Sec. 203. Civic education; teacher liability protection.
TITLE III—EDUCATION OF LIMITED ENGLISH PROFICIENT AND
IMMIGRANT CHILDREN; INDIAN AND ALASKA NATIVE EDU-
CATION
PART A—EDUCATION OF LIMITED ENGLISH PROFICIENT AND IMMIGRANT
CHILDREN
Sec. 301. Programs authorized.
Sec. 302. Conforming amendment to Department of Education Organization
Act.
PART B—INDIAN AND ALASKA NATIVE EDUCATION
Sec. 311. Elementary and Secondary Education Act of 1965.
Sec. 312. Alaska Native education.
Sec. 313. Amendments to the education amendments of 1978.
Sec. 314. Tribally Controlled Schools Act of 1988.
Sec. 315. Accountability for Bureau funded schools.
TITLE IV—PROMOTING INFORMED PARENTAL CHOICE AND
INNOVATIVE PROGRAMS
PART A—INNOVATIVE PROGRAMS
Sec. 401. Promoting informed parental choice and innovative programs.
Sec. 402. Continuation of awards.
PART B—PUBLIC CHARTER SCHOOLS
Sec. 411. Public charter schools.
Sec. 412. Continuation of awards.
PART C—MAGNET SCHOOLS ASSISTANCE; WOMEN’S EDUCATIONAL EQUITY
Sec. 421. Magnet schools assistance.
Sec. 422. Women’s educational equity.
Sec. 423. Continuation of awards.
TITLE V—21ST CENTURY SCHOOLS
Sec. 501. Safe schools.
TITLE VI—IMPACT AID PROGRAM
Sec. 601. Payments under section 8002 with respect to fiscal years in which
insufficient funds are appropriated.
Sec. 602. Calculation of payment under section 8003 for small local educational
agencies.
Sec. 603. Eligibility under section 8003 for certain heavily impacted local edu-
cational agencies.
Sec. 604. Construction.
Sec. 605. State consideration of payments in providing State aid.
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Sec. 606. Authorization of appropriations.
Sec. 607. Repeal of existing title VI; transfer and redesignation of program.
Sec. 608. Sense of Congress relating to full funding of the impact aid program.
TITLE VII—ACCOUNTABILITY
Sec. 701. Flexibility and accountability.
TITLE VIII—GENERAL PROVISIONS
Sec. 801. General provisions.
Sec. 802. Comprehensive regional assistance centers.
Sec. 803. National diffusion network.
Sec. 804. Eisenhower regional mathematics and science education consortia.
Sec. 805. Technology-based technical assistance.
Sec. 806. Regional technical support and professional development.
TITLE IX—MISCELLANEOUS PROVISIONS
PART A—AMENDMENTS TO OTHER ACTS
SUBPART 1—NATIONAL EDUCATION STATISTICS ACT
Sec. 901. Amendment to NESA.
SUBPART 2—HOMELESS EDUCATION
Sec. 911. Short title.
Sec. 912. Findings.
Sec. 913. Purpose.
Sec. 914. Education for homeless children and youth.
Sec. 915. Technical amendment.
SUBPART 3—GENERAL EDUCATION PROVISIONS
Sec. 916. Information access and consent.
PART B—EQUAL ACCESS TO PUBLIC SCHOOL FACILITIES
Sec. 921. Short title.
Sec. 922. Equal access.
Sec. 923. Effective date.
PART C—REPEALS
Sec. 931. Repeals.
SEC. 5. EFFECTIVE DATE.
Except as otherwise specifically provided in this Act,
this Act, and the amendments made by this Act, shall take
effect on October 1, 2001, or on the date of the enactment
of this Act, whichever occurs later.
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TITLE I—IMPROVING THE ACA-
DEMIC 
PERFORMANCE 
OF
THE DISADVANTAGED
PART A—BASIC PROGRAM
SEC. 101. DISADVANTAGED CHILDREN MEET HIGH ACA-
DEMIC STANDARDS.
Section 1001 is amended to read as follows:
‘‘SEC. 1001. FINDINGS; STATEMENT OF PURPOSE; AND REC-
OGNITION OF NEED.
‘‘(a) FINDINGS.—Congress finds the following:
‘‘(1) The Constitution of the United States re-
serves to the States and to the people the responsi-
bility for the general supervision of public education
in kindergarten through the twelfth grade.
‘‘(2) States, local educational agencies and
schools should be given maximum flexibility in ex-
change for greater academic accountability, and be
given greater freedom to build upon existing innova-
tive approaches for education reform.
‘‘(3) The best education decisions are made by
those who know the students and who are respon-
sible for implementing the decisions.
‘‘(4) Educators and parents should retain the
right and responsibility to educate their pupils and
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children free of excessive regulation by the Federal
Government.
‘‘(5) The Supreme Court has regarded the right
of parents to direct the upbringing of their children
as a fundamental right implicit in the concept of or-
dered liberty within the 14th Amendment to the
Constitution, as specified in Meyer v. Nebraska, 262
U.S. 390 (1923), and Pierce v. Society of Sisters,
268 U.S. 510 (1925).
‘‘(6) Schools that enroll high concentrations of
children living in poverty face the greatest chal-
lenges, but effective educational strategies based on
scientifically based research can succeed in edu-
cating children to high academic standards.
‘‘(7) High-poverty schools are much more likely
to be identified as failing to meet State academic
standards for satisfactory progress. As a result,
these schools are generally the most in need of addi-
tional resources and technical assistance to build the
capacity of these schools to address the many needs
of their students.
‘‘(8) The educational progress of children par-
ticipating in programs under this title is closely as-
sociated with their being taught by a highly qualified
staff, particularly in schools with the highest con-
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centrations of poverty, where paraprofessionals,
uncertified teachers, and teachers teaching out of
field frequently provide instructional services.
‘‘(9) Congress and the public would benefit
from additional data evaluating the efficacy of the
Elementary and Secondary Education Act of 1965.
‘‘(10) Schools operating programs assisted
under this part must be held accountable for the
educational achievement of their students, when
those students fail to demonstrate progress in
achieving high academic standards, local educational
agencies and States must take significant actions to
improve the educational opportunities available to
them.
‘‘(b) PURPOSE AND INTENT.—The purpose and in-
tent of this title are to ensure that all children have a
fair and equal opportunity to obtain a high-quality edu-
cation.
‘‘(c) RECOGNITION OF NEED.—The Congress recog-
nizes the following:
‘‘(1) Educational needs are particularly great
for low-achieving children in our Nation’s highest-
poverty schools, children with limited English pro-
ficiency, children of migrant workers, children with
disabilities, Indian children, children who are ne-
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glected or delinquent, and young children who are in
need of reading assistance and family literacy assist-
ance.
‘‘(2) Despite more than 3 decades of Federal
assistance, a sizable achievement gap remains be-
tween minority and nonminority students, and be-
tween disadvantaged students and their more advan-
taged peers.
‘‘(3) Too many students attend local schools
that fail to provide them with a quality education,
and are given no alternatives to enable them to re-
ceive a quality education.
‘‘(4) States, local educational agencies, and
schools need to be held accountable for improving
the academic achievement of all students, and for
identifying and turning around low-performing
schools.
‘‘(5) States and local educational agencies need
to ensure that high quality academic assessments,
accountability systems, teacher preparation and
training, curriculum, and instructional materials are
aligned with challenging State academic standards
so that students, teachers, parents, and administra-
tors can measure progress against common expecta-
tions for student academic achievement.
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‘‘(6) Federal education assistance is intended
not only to increase pupil achievement overall, but
also more specifically and importantly, to help en-
sure that all students, especially the disadvantaged,
meet challenging academic achievement standards. It
can only be determined if schools, local educational
agencies, and States are reaching this goal if stu-
dent achievement results are reported specifically by
disadvantaged and minority status.’’.
SEC. 102. AUTHORIZATION OF APPROPRIATIONS.
Section 1002 is amended to read as follows:
‘‘SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) LOCAL EDUCATIONAL AGENCY GRANTS.—For
the purpose of carrying out part A, other than section
1120(e), there are authorized to be appropriated
$11,500,000,000 for fiscal year 2002, $13,000,000,000
for fiscal year 2003, $14,500,000,000 for fiscal year 2004,
$16,000,000,000 
for 
fiscal 
year 
2005, 
and
$17,200,000,000 for fiscal year 2006.
‘‘(b) STUDENT
READING
SKILLS
IMPROVEMENT
GRANTS.—
‘‘(1) READING FIRST.—For the purpose of car-
rying out subpart 1 of part B, there are authorized
to be appropriated $900,000,000 for fiscal year
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2002 and such sums as may be necessary for each
of the 4 succeeding fiscal years.
‘‘(2) EARLY READING FIRST.—For the purpose
of carrying out subpart 2 of part B, there are au-
thorized to be appropriated $75,000,000 for fiscal
year 2002 and such sums as may be necessary for
each of the 4 succeeding fiscal years.
‘‘(3) EVEN START.—For the purpose of car-
rying out subpart 3 of part B, there are authorized
to be appropriated $275,000,000 for fiscal year
2002 and such sums as may be necessary for each
of the 4 succeeding fiscal years.
‘‘(4) INEXPENSIVE
BOOK
DISTRIBUTION
PRO-
GRAM.—For the purpose of carrying out subpart 4
of part B, there are authorized to be appropriated
such sums as may be necessary for fiscal year 2002
and each of the 4 succeeding fiscal years.
‘‘(c) EDUCATION OF MIGRATORY CHILDREN.—For
the purpose of carrying out part C, there are authorized
to be appropriated $420,000,000 for fiscal year 2002 and
such sums as may be necessary for each of the 4 suc-
ceeding fiscal years.
‘‘(d) PREVENTION AND INTERVENTION PROGRAMS
FOR YOUTH WHO ARE NEGLECTED, DELINQUENT, OR AT
RISK OF DROPPING OUT.—For the purpose of carrying
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out part D, there are authorized to be appropriated
$50,000,000 for fiscal year 2002 and such sums as may
be necessary for each of the 4 succeeding fiscal years.
‘‘(e) COMPREHENSIVE SCHOOL REFORM.—For the
purpose of carrying out part F, there are authorized to
be appropriated $260,000,000 for fiscal year 2002 and
such sums as may be necessary for each of the 4 suc-
ceeding fiscal years.
‘‘(f) RURAL EDUCATION.—For the purpose of car-
rying out part G, there are authorized to be appropriated
$300,000,000 for fiscal year 2002 and such sums as may
be necessary for each of 4 succeeding fiscal years to be
distributed equally between subparts 1 and 2.
‘‘(g) CAPITAL EXPENSES.—For the purpose of car-
rying out section 1120(e), there are authorized to be ap-
propriated $6,000,000 for fiscal year 2002, and such sums
as may be necessary for fiscal year 2003.
‘‘(h) FEDERAL ACTIVITIES.—
‘‘(1) SECTIONS 1501 AND 1502.—(A) For the
purpose of carrying out section 1501, there are au-
thorized to be appropriated $9,000,000 for fiscal
year 2002 and such sums as may be necessary for
each of the 4 succeeding fiscal years.
‘‘(B) For the purpose of carrying out section
1502, there are authorized to be appropriated such
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sums as may be necessary for fiscal year 2002 and
for each of the 4 succeeding fiscal years.
‘‘(2) SECTION 1503.—For the purpose of car-
rying out section 1503, there are authorized to be
appropriated such sums as may be necessary for fis-
cal year 2002 and for each of the 4 succeeding fiscal
years.
‘‘(i) STATE ADMINISTRATION.—
‘‘(1) STATE
RESERVATION.—Each State may
reserve, from the sum of the amounts it receives
under parts A, C, and D of this title, an amount
equal to the greater of 1 percent of the amount it
received under such parts for fiscal year 2001, or
$400,000 ($50,000 for each outlying area), includ-
ing any funds it receives under paragraph (2), to
carry out administrative duties assigned under parts
A, C, and D.
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.—
There 
are 
authorized 
to 
be 
appropriated
$10,000,000 for fiscal year 2002 and such sums as
may be necessary for each of the 4 succeeding fiscal
years for additional State administration grants.
Any such additional grants shall be allocated among
the States in proportion to the sum of the amounts
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received by each State for that fiscal year under
parts A, C, and D of this title.
‘‘(3) SPECIAL RULE.—The amount received by
each State under paragraphs (1) and (2) may not
exceed the amount of State funds expended by the
State educational agency to administer elementary
and secondary education programs in such State.
‘‘(j) ASSISTANCE
FOR LOCAL SCHOOL IMPROVE-
MENT.—
‘‘(1) PROGRAM
AUTHORIZED.—The Secretary
shall award grants to States to provide subgrants to
local educational agencies for the purpose of pro-
viding assistance for school improvement consistent
with section 1116. Such grants shall be allocated
among States, the Bureau of Indian Affairs, and the
outlying areas, in proportion to the grants received
by the State, the Bureau of Indian Affairs, and the
outlying areas for the fiscal year under parts A, C,
and D of this title. The Secretary shall expeditiously
allocate a portion of such funds to States for the
purpose of assisting local educational agencies and
schools that were in school improvement status on
the date preceding the date of the enactment of the
No Child Left Behind Act of 2001.
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‘‘(2) REALLOCATIONS.—If a State does not
apply for funds under this subsection, the Secretary
shall reallocate such funds to other States in the
same proportion funds are allocated under para-
graph (1).
‘‘(3) STATE APPLICATIONS.—Each State edu-
cational agency that desires to receive funds under
this subsection shall submit an application to the
Secretary at such time, and containing such infor-
mation as the Secretary shall reasonably require, ex-
cept that such requirement shall be waived if a State
educational agency has submitted such information
as part of its State plan under this part. Each State
plan shall describe how such funds will be allocated
to ensure that the State educational agency and
local educational agencies comply with school im-
provement, corrective action, and restructuring re-
quirements of section 1116.
‘‘(4) LOCAL EDUCATIONAL AGENCY GRANTS.—
A grant to a local educational agency under this
subsection shall be—
‘‘(A) of sufficient size and scope to support
the activities required under sections 1116 and
1117, but not less than $50,000 and not more
than $500,000 to each participating school;
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‘‘(B) integrated with funds awarded by the
State under this Act; and
‘‘(C) renewable for two additional 1-year
periods if schools are making yearly progress
consistent with State and local educational
agency plans developed under section 1116.
‘‘(5) PRIORITY.—The State, in awarding such
grants, shall give priority to local educational agen-
cies with the lowest achieving schools, that dem-
onstrate the greatest need for such funds, and that
demonstrate the strongest commitment to making
sure such funds are used to provide adequate re-
sources to enable the lowest achieving schools to
meet the yearly progress goals under State and local
school improvement, corrective action, and restruc-
turing plans under section 1116.
‘‘(6) ADMINISTRATIVE
COSTS.—A State edu-
cational agency that receives a grant award under
this subsection may reserve not more than 5 percent
of such award for administration, evaluation, and
technical assistance expenses.
‘‘(7) LOCAL AWARDS.—Each local educational
agency that applies for assistance under this sub-
section shall describe how it will provide the lowest
achieving schools the resources necessary to meet
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yearly progress goals under State and local school
improvement, corrective action, and restructuring
plans under section 1116.
‘‘(8) AUTHORIZATION
OF
APPROPRIATIONS.—
For the purpose of carrying out this subsection,
there 
are 
authorized 
to 
be 
appropriated
$500,000,000 for fiscal year 2002 and such sums as
may be necessary for each of the 4 succeeding fiscal
years.’’.
SEC. 103. RESERVATION FOR SCHOOL IMPROVEMENT.
Section 1003 is amended to read as follows:
‘‘SEC. 1003. RESERVATION FOR SCHOOL IMPROVEMENT.
‘‘(a) STATE RESERVATIONS.—Each State shall re-
serve 1 percent of the amount it receives under subpart
2 of part A for fiscal years 2002 and 2003, and 3 percent
of the amount received under such subpart for fiscal years
2004 through 2006, to carry out subsection (b) and to
carry out the State’s responsibilities under sections 1116
and 1117, including carrying out the State educational
agency’s statewide system of technical assistance and sup-
port for local educational agencies.
‘‘(b) USES.—Of the amount reserved under sub-
section (a) for any fiscal year, the State educational agen-
cy shall allocate at least 95 percent of that amount directly
to local educational agencies for schools identified for
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school improvement, corrective action, and restructuring
under section 1116(b) that have the greatest need for that
assistance in amounts sufficient to have a significant im-
pact in improving those schools.
‘‘(c) PRIORITY.—The State educational agency, in al-
locating funds to local educational agencies under this sec-
tion, shall give priority to local educational agencies
that—
‘‘(1) have the lowest achieving schools;
‘‘(2) demonstrate the greatest need for such
funds; and
‘‘(3) demonstrate the strongest commitment to
ensuring that such funds are used to enable the low-
est achieving schools to meet the yearly progress
goals under section 1116(b)(3)(A)(v).
‘‘(d) UNUSED FUNDS.—If, after consultation with
local educational agencies in the State, the State edu-
cational agency determines that the amount of funds re-
served to carry out subsection (b) is greater than the
amount needed to provide the assistance described in that
subsection, it may allocate the excess amount to local edu-
cational agencies in accordance with either or both—
‘‘(1) the relative allocations it made to those
agencies for that fiscal year under subpart 2 of part
A; or
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‘‘(2) section 1126(c).
‘‘(e) SPECIAL RULE.—Notwithstanding any other
provision of this section, the amount of funds reserved by
the State under subsection (a) in any given fiscal year
shall not decrease the amount of funds each local edu-
cational agency receives under subpart 2 below the amount
received by such agency under such subpart in the pre-
ceding fiscal year.’’.
SEC. 104. BASIC PROGRAMS.
The heading for part A of title I and sections 1111
through 1115 are amended to read as follows:
‘‘PART A—IMPROVING BASIC PROGRAMS
OPERATED BY LOCAL EDUCATIONAL AGENCIES
‘‘Subpart 1—Basic Program Requirements
‘‘SEC. 1111. STATE PLANS.
‘‘(a) PLANS REQUIRED.—
‘‘(1) IN GENERAL.—Any State desiring to re-
ceive a grant under this part shall submit to the
Secretary, by March 1, 2002, a plan, developed in
consultation with local educational agencies, teach-
ers, principals, pupil services personnel, administra-
tors (including administrators of programs described
in other parts of this title), other staff, and parents,
that satisfies the requirements of this section and
that is coordinated with other programs under this
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Act, the Individuals with Disabilities Education Act
(20 U.S.C. 1400 et seq.), the Carl D. Perkins Voca-
tional and Technical Education Act of 1998 (20
U.S.C. 2301 et seq.), the Head Start Act (42 U.S.C.
9831 et seq.), and the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11431 et seq.).
‘‘(2) CONSOLIDATED PLAN.—A State plan sub-
mitted under paragraph (1) may be submitted as
part of a consolidated plan under section 8302.
‘‘(b) ACADEMIC STANDARDS, ACADEMIC ASSESS-
MENTS, AND ACCOUNTABILITY.—
‘‘(1) CHALLENGING ACADEMIC STANDARDS.—
‘‘(A) Each State plan shall demonstrate
that the State has adopted challenging aca-
demic content standards and challenging stu-
dent academic achievement standards that will
be used by the State, its local educational agen-
cies, and its schools to carry out this part, ex-
cept that a State shall not be required to sub-
mit such standards to the Secretary.
‘‘(B) The academic standards required by
subparagraph (A) shall be the same academic
standards that the State applies to all schools
and children in the State.
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‘‘(C) The State shall have such academic
standards for all public elementary and sec-
ondary school children, including children
served under this part, in subjects determined
by the State, but including at least mathe-
matics, reading or language arts, and science
(beginning in the 2005–2006 school year),
which shall include the same knowledge, skills,
and levels of achievement expected of all chil-
dren.
‘‘(D) Academic standards under this para-
graph shall include—
‘‘(i) challenging academic content
standards in academic subjects that—
‘‘(I) specify what children are ex-
pected to know and be able to do;
‘‘(II) contain coherent and rig-
orous content; and
‘‘(III) encourage the teaching of
advanced skills; and
‘‘(ii) challenging student academic
achievement standards that—
‘‘(I) are aligned with the State’s
academic content standards;
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‘‘(II) describe 2 levels of high
performance (proficient and advanced)
that determine how well children are
mastering the material in the State
academic content standards; and
‘‘(III) describe a third level of
performance (basic) to provide com-
plete information about the progress
of the lower performing children to-
ward achieving to the proficient and
advanced levels of performance.
‘‘(E) For the subjects in which students
will be served under this part, but for which a
State is not required by subparagraphs (A),
(B), and (C) to develop, and has not otherwise
developed such academic standards, the State
plan shall describe a strategy for ensuring that
students are taught the same knowledge and
skills in such subjects and held to the same ex-
pectations as are all children.
‘‘(F) Nothing in this part shall prohibit a
State from revising any standard adopted under
this part before or after the date of enactment
of the No Child Left Behind Act of 2001.
‘‘(2) ACCOUNTABILITY.—
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‘‘(A) IN GENERAL.—Each State plan shall
demonstrate that the State has developed and is
implementing a statewide State accountability
system that has been or will be effective in en-
suring that all local educational agencies, public
elementary 
schools, 
and 
public 
secondary
schools make adequate yearly progress as de-
fined under subparagraph (B). Each State ac-
countability system shall—
‘‘(i) be based on the academic stand-
ards and academic assessments adopted
under paragraphs (1) and (4) and take
into account the performance of all public
school students;
‘‘(ii) be the same as the accountability
system the State uses for all public schools
or all local educational agencies in the
State, except that public schools and local
educational 
agencies 
not 
participating
under this part are not subject to the re-
quirements of section 1116; and
‘‘(iii) include rewards and sanctions
the State will use to hold local educational
agencies and public schools accountable for
student achievement and for ensuring that
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they make adequate yearly progress in ac-
cordance with the State’s definition under
subparagraph (B).
‘‘(B) ADEQUATE
YEARLY
PROGRESS.—
Each State plan shall demonstrate, based on
academic assessments described under para-
graph (4), what constitutes adequate yearly
progress of the State, and of public schools and
local educational agencies in the State, toward
enabling all public school students to meet the
State’s student academic achievement stand-
ards, while working toward the goal of nar-
rowing the achievement gaps in the State, local
educational agency, and school.
‘‘(C) 
DEFINITION.—‘Adequate 
yearly
progress’ shall be defined by the State in a
manner that—
‘‘(i) applies the same high academic
standards of academic performance to all
public school students in the State;
‘‘(ii) measures the progress of public
schools and local educational agencies
based primarily on the academic assess-
ments described in paragraph (4);
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‘‘(iii) measures the student dropout
rate, as defined for the Common Core of
Data maintained by the National Center
for Education Statistics established under
section 403 of the National Education Sta-
tistics Act of 1994 (20 U.S.C. 9002);
‘‘(iv) includes separate annual numer-
ical objectives for continuing and signifi-
cant improvement in each of the following
(except that disaggregation of data under
subclauses (II) and (III) shall not be re-
quired in a case in which the number of
students in a category is insufficient to
yield statistically reliable information or
the results would reveal individually identi-
fiable information about an individual stu-
dent):
‘‘(I) The achievement of all public
school students.
‘‘(II) The achievement of—
‘‘(aa) economically disadvan-
taged students;
‘‘(bb) students from major
racial and ethnic groups;
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‘‘(cc) students with disabil-
ities; and
‘‘(dd) students with limited
English proficiency;
‘‘(III) solely for the purpose of deter-
mining adequate yearly progress of the
State, the acquisition of English language
proficiency 
by 
children 
with 
limited
English proficiency;
‘‘(v) at the State’s discretion, may
also include other academic measures such
as promotion, completion of college pre-
paratory courses, and high school comple-
tion (and for individual local educational
agencies and schools, the acquisition of
English language proficiency by children
with limited English proficiency), except
that inclusion of such other measures may
not change which schools or local edu-
cational agencies would otherwise be sub-
ject to improvement or corrective action
under section 1116 if the discretionary in-
dicators were not included; and
‘‘(vi) includes a timeline that—
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‘‘(I) uses as a baseline year the
year following the date of enactment
of the No Child Left Behind Act of
2001;
‘‘(II) establishes a target year by
which all members of each group of
students described in subclauses (I)
and (II) of clause (iii) shall meet or
exceed the State’s proficient level of
academic performance on the State
academic assessment used for the pur-
poses of this section and section 1116,
except that the target year shall not
be more than 12 years from the base-
line year; and
‘‘(III) for each year until and in-
cluding the target year, establishes
annual goals for the academic per-
formance of each group of students
described in subclauses (I) and (II) of
clause (iii) on the State academic as-
sessment that—
‘‘(aa) indicates a minimum
percentage of students who must
meet the proficient level on the
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academic assessment, such that
the minimum percentage is the
same for each group of students
described in subclauses (I) and
(II) of clause (iii); or
‘‘(bb) indicates an annual
minimum amount by which the
percentage of students who meet
the proficient level among each
group of students described in
subclauses (I) and (II) of clause
(iii) shall increase, such that the
minimum increase for each group
is equal to or greater than 100
percent minus the percentage of
the group meeting the proficient
level in the baseline year divided
by the number of years from the
baseline year to the target year
established under clause (I).
‘‘(D) 
ANNUAL
IMPROVEMENT
FOR
SCHOOLS.—For a school to make adequate
yearly progress under subparagraph (A), not
less than 95 percent of each group of students
described in subparagraph (C)(iii)(II) who are
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enrolled in the school are required to take the
academic assessments, consistent with section
612(a)(17)(A) of the Individuals with Disabil-
ities Education Act (20 U.S.C. 1412(a)(17)(A))
and paragraph (4)(G)(ii), on which adequate
yearly progress is based.
‘‘(E) PUBLIC
NOTICE
AND
COMMENT.—
Each State shall ensure that in developing its
plan, it diligently seeks public comment from a
range of institutions and individuals in the
State with an interest in improved student
achievement and that the State makes and will
continue to make a substantial effort to ensure
that information under this part is widely
known and understood by the public, parents,
teachers, and school administrators throughout
the State. Such efforts shall include, at a min-
imum, publication of such information and ex-
planatory text, broadly to the public through
such means as the Internet, the media, and
public agencies.
‘‘(3) STATE
AUTHORITY.—If a State edu-
cational agency provides evidence, which is satisfac-
tory to the Secretary, that neither the State edu-
cational agency nor any other State government offi-
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cial, agency, or entity has sufficient authority, under
State law, to adopt curriculum content and student
academic achievement standards, and academic as-
sessments aligned with such academic standards,
which will be applicable to all students enrolled in
the State’s public schools, then the State educational
agency may meet the requirements of this subsection
by—
‘‘(A) adopting academic standards and
academic assessments that meet the require-
ments of this subsection, on a statewide basis,
limiting their applicability to students served
under this part; or
‘‘(B) adopting and implementing policies
that ensure that each local educational agency
in the State which receives grants under this
part will adopt curriculum content and student
academic achievement standards, and academic
assessments aligned with such standards, which
meet all of the criteria in this subsection and
any regulations regarding such standards and
assessments which the Secretary may publish,
and which are applicable to all students served
by each such local educational agency.
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‘‘(4) ACADEMIC
ASSESSMENTS.—Each State
plan shall demonstrate that the State has imple-
mented a set of high-quality, yearly student aca-
demic assessments that include, at a minimum, aca-
demic assessments in mathematics, and reading or
language arts, that will be used as the primary
means of determining the yearly performance of the
State and of each local educational agency and
school in enabling all children to meet the State’s
challenging student academic achievement stand-
ards. Such assessments shall—
‘‘(A) be the same academic assessments
used to measure the performance of all chil-
dren;
‘‘(B) be aligned with the State’s chal-
lenging content and student academic achieve-
ment standards and provide coherent informa-
tion about student attainment of such stand-
ards;
‘‘(C) be used for purposes for which such
assessments are valid and reliable, and be con-
sistent with relevant, recognized professional
and technical standards for such assessments;
‘‘(D) for the purposes of this part, be
scored to ensure the performance of each stu-
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dent is evaluated solely against the State’s chal-
lenging academic content standards and not rel-
ative to the score of other students;
‘‘(E) except as otherwise provided for
grades 3 through 8 under subparagraph (G),
measure the proficiency of students in, at a
minimum, mathematics and reading or lan-
guage arts, and be administered not less than
once during—
‘‘(i) grades 3 through 5;
‘‘(ii) grades 6 through 9; and
‘‘(iii) grades 10 through 12;
‘‘(F) involve multiple up-to-date measures
of student achievement, including measures that
assess critical thinking skills and under-
standing;
‘‘(G) beginning not later than school year
2004-2005, measure the performance of stu-
dents against the challenging State content and
student academic achievement standards in
each of grades 3 through 8 in, at a minimum,
mathematics, and reading or language arts, ex-
cept that the Secretary may provide the State
1 additional year if the State demonstrates that
exceptional or uncontrollable circumstances,
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such as a natural disaster or a precipitous and
unforeseen decline in the financial resources of
the State, prevented full implementation of the
academic assessments by that deadline and that
it will complete implementation within the addi-
tional 1-year period;
‘‘(H) provide for—
‘‘(i) the participation in such assess-
ments of all students;
‘‘(ii) the reasonable adaptations and
accommodations for students with disabil-
ities defined under 602(3) of the Individ-
uals with Disabilities Education Act (20
U.S.C. 1401(3)) necessary to measure the
achievement of such students relative to
State content and State student academic
achievement standards;
‘‘(iii) the inclusion of limited English
proficient students who shall be assessed,
to the extent practicable, in the language
and form most likely to yield accurate and
reliable information on what such students
know and can do in content areas;
‘‘(iv) notwithstanding clause (iii), the
academic assessment (using tests written
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attainment of student academic achievement
standards; and
‘‘(K) enable results to be disaggregated
within each State, local educational agency, and
school by gender, by each major racial and eth-
nic group, by English proficiency status, by mi-
grant status, by students with disabilities as
compared to nondisabled students, and by eco-
nomically disadvantaged students as compared
to students who are not economically disadvan-
taged.
‘‘(L) be tests of objective knowledge, based
on measurable, verifiable, and widely accepted
professional testing and assessment standards,
and shall not assess the personal opinions, atti-
tudes, or beliefs of the student being assessed.
‘‘(5) SPECIAL
RULE.—Academic assessment
measures in addition to those in paragraph (4) that
do not meet the requirements of such paragraph
may be included as additional measures, but may
not be used in lieu of the academic assessments re-
quired in paragraph (4). Results on any additional
measures under this paragraph shall not change
which schools or local educational agencies would
otherwise be subject to improvement or corrective
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action under section 1116 if the additional measures
were not included.
‘‘(6) LANGUAGE
ASSESSMENTS.—Each State
plan shall identify the languages other than English
that are present in the participating student popu-
lation and indicate the languages for which yearly
student academic assessments are not available and
are needed. The State shall make every effort to de-
velop such assessments and may request assistance
from the Secretary if linguistically accessible aca-
demic assessment measures are needed. Upon re-
quest, the Secretary shall assist with the identifica-
tion of appropriate academic assessment measures in
the needed languages, but shall not mandate a spe-
cific academic assessment or mode of instruction.
‘‘(7) ACADEMIC
ASSESSMENTS
OF
ENGLISH
LANGUAGE
PROFICIENCY.—Each State plan shall
demonstrate that local educational agencies in the
State will, beginning no later than school year
2002–2003, annually assess the English proficiency
of all students with limited English proficiency in
their schools.
‘‘(8) REQUIREMENT.—Each State plan shall
describe—
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‘‘(A) how the State educational agency will
assist each local educational agency and school
affected by the State plan to develop the capac-
ity to comply with each of the requirements of
sections 1112(c)(1)(D), 1114(c), and 1115(c)
that is applicable to such agency or school;
‘‘(B) how the State educational agency will
assist each local educational agency and school
affected by the State plan to provide additional
educational assistance to individual students as-
sessed as needing help to achieve the State’s
challenging academic standards.
‘‘(C) such other factors as the State con-
siders appropriate to provide students an oppor-
tunity to achieve the knowledge and skills de-
scribed in the challenging academic content
standards adopted by the State.
‘‘(9) USE OF ACADEMIC ASSESSMENT RESULTS
TO IMPROVE STUDENT ACHIEVEMENT.—Each State
plan shall describe how the State will ensure that
the results of the State assessments described in
paragraph (4)—
‘‘(A) will be provided promptly, but not
later than the end of the school year (consistent
with 1116, to local educational agencies,
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schools, and teachers in a manner that is clear
and easy to understand; and
‘‘(B) be used by those local educational
agencies, schools, and teachers to improve the
educational achievement of individual students.
‘‘(10) TECHNICAL
ASSISTANCE
ON
ACADEMIC
ASSESSMENT REQUIREMENTS.—The Secretary shall
provide technical assistance to interested States re-
garding how to meet the requirements of paragraph
(4).
‘‘(c) OTHER PROVISIONS TO SUPPORT TEACHING
AND LEARNING.—Each State plan shall contain assur-
ances that—
‘‘(1) the State shall produce, beginning with the
2003–2004 school year, the annual State report
cards described in subsection (h)(1);
‘‘(2) the State will participate, beginning in
school year 2002–2003, in annual academic assess-
ments of 4th and 8th grade reading and mathe-
matics under—
‘‘(A) the State National Assessment of
Educational Progress carried out under section
411(b)(2) of the National Education Statistics
Act of 1994 (20 U.S.C. 9010(b)(2)); or
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‘‘(B) another academic assessment selected
by the State which meets the criteria of section
7101(b)(1)(B)(ii) of this Act;
‘‘(3) the State educational agency shall work
with other agencies, including educational service
agencies or other local consortia, and institutions to
provide technical assistance to local educational
agencies and schools to carry out the State edu-
cational agency’s responsibilities under this part, in-
cluding technical assistance in providing professional
development under section 1119A and technical as-
sistance under section 1117; and
‘‘(4)(A) where educational service agencies
exist, the State educational agency shall consider
providing professional development and technical as-
sistance through such agencies; and
‘‘(B) where educational service agencies do not
exist, the State educational agency shall consider
providing professional development and technical as-
sistance through other cooperative agreements such
as through a consortium of local educational agen-
cies;
‘‘(5) the State educational agency shall notify
local educational agencies and the public of the con-
tent and student academic achievement standards
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and academic assessments developed under this sec-
tion, and of the authority to operate schoolwide pro-
grams, and will fulfill the State educational agency’s
responsibilities regarding local educational agency
improvement and school improvement under section
1116, including such corrective actions as are nec-
essary;
‘‘(6) the State educational agency shall provide
the least restrictive and burdensome regulations for
local educational agencies and individual schools par-
ticipating in a program assisted under this part;
‘‘(7) the State educational agency shall inform
the Secretary and the public of how Federal laws, if
at all, hinder the ability of States to hold local edu-
cational agencies and schools accountable for stu-
dent academic performance;
‘‘(8) the State educational agency will encour-
age schools to consolidate funds from other Federal,
State, and local sources for schoolwide reform in
schoolwide programs under section 1114;
‘‘(9) the State educational agency shall modify
or eliminate State fiscal and accounting barriers so
that schools can easily consolidate funds from other
Federal, State, and local sources for schoolwide pro-
grams under section 1114;
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‘‘(10) the State educational agency has involved
the committee of practitioners established under sec-
tion 1603(b) in developing the plan and monitoring
its implementation;
‘‘(11) the State educational agency shall inform
local educational agencies of the local educational
agency’s authority to transfer funds under title VII,
to obtain waivers under title VIII and, if the State
is an Ed-Flex Partnership State, to obtain waivers
under the Education Flexibility Partnership Act of
1999 (20 U.S.C. 5891a et seq.); and
‘‘(12) the State educational agency shall en-
courage local educational agencies and individual
schools participating in a program assisted under
this part to offer family literacy services (using
funds under this part), if the agency or school deter-
mines that a substantial number of students served
under this part by the agency or school have parents
who do not have a high school diploma or its recog-
nized equivalent or who have low levels of literacy.
‘‘(d) PEER REVIEW AND SECRETARIAL APPROVAL.—
The Secretary shall—
‘‘(1) establish a peer review process to assist in
the review of State plans;
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‘‘(2) approve a State plan within 120 days of
its submission unless the Secretary determines that
the plan does not meet the requirements of this sec-
tion;
‘‘(3) if the Secretary determines that the State
plan does not meet the requirements of subsection
(a), (b), or (c), immediately notify the State of such
determination and the reasons for such determina-
tion;
‘‘(4) not decline to approve a State’s plan
before—
‘‘(A) offering the State an opportunity to
revise its plan;
‘‘(B) providing technical assistance in
order to assist the State to meet the require-
ments under subsections (a), (b), and (c); and
‘‘(C) providing a hearing; and
‘‘(5) have the authority to disapprove a State
plan for not meeting the requirements of this part,
but shall not have the authority to require a State,
as a condition of approval of the State plan, to in-
clude in, or delete from, such plan one or more spe-
cific elements of the State’s academic content stand-
ards or to use specific academic assessment instru-
ments or items.
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‘‘(e) DURATION OF THE PLAN.—
‘‘(1) IN GENERAL.—Each State plan shall—
‘‘(A) be submitted for the first year for
which this part is in effect after the date of the
enactment of the No Child Left Behind Act of
2001;
‘‘(B) remain in effect for the duration of
the State’s participation under this part; and
‘‘(C) be periodically reviewed and revised
by the State, as necessary, to reflect changes in
the State’s strategies and programs under this
part.
‘‘(2) ADDITIONAL INFORMATION.—If the State
makes significant changes in its plan, such as the
adoption of new or revised State academic content
standards and State student achievement standards,
new academic assessments, or a new definition of
adequate yearly progress, the State shall submit
such information to the Secretary.
‘‘(f) LIMITATION ON CONDITIONS.—Officers and em-
ployees of the Federal Government are prohibited from
mandating, directing, or controlling a State, local edu-
cational agency, or school’s specific instructional content
or student academic achievement standards and academic
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assessments, curriculum, or program of instruction, as a
condition of eligibility to receive funds under this part.
‘‘(g) PENALTIES.—
‘‘(1) FAILURE TO MEET DEADLINES ENACTED
IN 1994.—
‘‘(A) IN
GENERAL.—If a State fails to
meet the deadlines established by the Improving
America’s Schools Act of 1994 (or under any
waiver granted by the Secretary or under any
compliance agreement with the Secretary) for
demonstrating that it has in place challenging
academic 
content 
standards 
and 
student
achievement standards, and a system for meas-
uring and monitoring adequate yearly progress,
the Secretary shall withhold 25 percent of the
funds that would otherwise be available for
State administration and activities in each year
until the Secretary determines that the State
meets those requirements;
‘‘(B) NO EXTENSION.—The Secretary shall
not grant any additional waivers of, or enter
into any additional compliance agreements to
extend, the deadlines described in subparagraph
(A) for any State.
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‘‘(2) FAILURE
TO
MEET
REQUIREMENTS
EN-
ACTED IN 2001.—If a State fails to meet any of the
requirements of this section, other than the require-
ments described in paragraph (1), the Secretary may
withhold funds for State administration until the
Secretary determines that the State has fulfilled
those requirements.
‘‘(h) REPORTS.—
‘‘(1) ANNUAL STATE REPORT CARD.—
‘‘(A) IN GENERAL.—Not later than the be-
ginning of the 2003–2004 school year, a State
that receives assistance under this Act shall
prepare and disseminate an annual State report
card.
‘‘(B) IMPLEMENTATION.—The State report
card shall be—
‘‘(i) concise; and
‘‘(ii) presented in a format and man-
ner that parents can understand, and
which, to the extent practicable, shall be in
a language the parents can understand.
‘‘(C) PUBLIC DISSEMINATION.—The State
shall widely disseminate the information de-
scribed in subparagraph (D) to all schools and
local educational agencies in the State and
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make the information broadly available through
public means, such as posting on the Internet,
distribution to the media, and distribution
through public agencies.
‘‘(D) 
REQUIRED
INFORMATION.—The
State shall include in its annual State report
card—
‘‘(i) information, in the aggregate, on
student achievement at each proficiency
level on the State academic assessments
described 
in 
subsection 
(b)(4)
(disaggregated by race, ethnicity, gender,
disability status, migrant status, English
proficiency, and status as economically dis-
advantaged, 
except 
that 
such
disaggregation shall not be required in a
case in which the number of students in a
category is insufficient to yield statistically
reliable information or the results would
reveal individually identifiable information
about an individual student);
‘‘(ii) information that provides a com-
parison between the actual achievement
levels of each group of students described
in subclauses (I) and (II) of subsection
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(b)(2)(C) to the State’s annual numerical
objectives for each such group of students
on each of the assessments required under
this part;
‘‘(iii) the percentage of students not
tested (disaggregated by the same cat-
egories and subject to the same exception
described in clause (i));
‘‘(iv) the percentage of students who
graduate from high school within 4 years
of starting high school;
‘‘(v) the percentage of students who
take and complete advanced placement
courses as compared to the population of
the students eligible to take such courses,
and the rate of passing of advanced place-
ment tests;
‘‘(vi) the professional qualifications of
teachers in the aggregate, including the
percentage of teachers teaching with emer-
gency or provisional qualifications, and the
percentage of class sections not taught by
fully qualified teachers;
‘‘(vii) such other information (such as
dropout and school attendance rates; and
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average class size by grade level) as the
State believes will best provide parents,
students, and other members of the public
with information on the progress of each of
the State’s public schools; and
‘‘(viii) a clear and concise description
of the State’s accountability system, in-
cluding: a description of the criteria by
which the State evaluates school perform-
ance, and the criteria that the State has
established, consistent with (b)(2)(B), to
determine the status of schools regarding
school improvement, corrective action, and
reconstitution.
‘‘(2) CONTENT OF LOCAL EDUCATIONAL AGEN-
CY REPORT CARDS.—
‘‘(A) 
MINIMUM
REQUIREMENTS.—The
State shall ensure that each local educational
agency collects appropriate data and includes in
its annual report for each of its schools, at a
minimum—
‘‘(i) the information described in para-
graph (1)(D) for each local educational
agency and school; and
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‘‘(ii)(I) in the case of a local edu-
cational agency—
‘‘(aa) the number and percentage
of schools identified for school im-
provement and how long they have
been so identified, including schools
identified under section 1116(c) of
this Act; and
‘‘(bb) information that shows
how students in its schools perform on
the statewide academic assessment
compared to students in the State as
a whole; and
‘‘(II) in the case of a school—
‘‘(aa) whether it has been identi-
fied for school improvement; and
‘‘(bb) information that shows
how its students performed on the
statewide academic assessment com-
pared to students in the local edu-
cational agency and the State as a
whole.
‘‘(B) OTHER INFORMATION.—A local edu-
cational agency may include in its annual re-
ports any other appropriate information wheth-
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er or not such information is included in the
annual State report.
‘‘(C) PUBLIC DISSEMINATION.—The local
educational agency shall, not later than the be-
ginning of the 2003–2004 school year, publicly
disseminate the information described in this
paragraph to all schools in the district and to
all parents of students attending those schools
(to the extent practicable, in a language they
can understand), and make the information
broadly available through public means, such as
posting on the Internet, distribution to the
media, and distribution through public agencies.
‘‘(3) PRE-EXISTING REPORT CARDS.—A State
or local educational agency that was providing public
report cards on the performance of students,
schools, local educational agencies, or the State prior
to the enactment of the No Child Left Behind Act
of 2001 may use those reports for the purpose of
this subsection, so long as any such report is modi-
fied, as may be needed, to contain the information
required by this subsection.
‘‘(4) ANNUAL
STATE
REPORT
TO
THE
SEC-
RETARY.—Each State receiving assistance under
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this Act shall report annually to the Secretary, and
make widely available within the State—
‘‘(A) beginning with school year 2001–
2002, information on the State’s progress in
developing and implementing the academic as-
sessment system described in subsection (b)(4);
‘‘(B) beginning not later than school year
2004–2005, information on the achievement of
students on the academic assessments required
by that subsection, including the disaggregated
results for the categories of students identified
in subsection (b)(2)(C)(iii)(II);
‘‘(C) beginning not later than school year
2002–2003, information on the acquisition of
English proficiency by children with limited
English proficiency; and
‘‘(D) in any year before the State begins to
provide the information described in subpara-
graph (B), information on the results of stu-
dent 
academic 
assessments 
(including
disaggregated results) required under this sec-
tion.
‘‘(5) PARENTS RIGHT-TO-KNOW.—
‘‘(A) QUALIFICATIONS.—At the beginning
of each school year, a local educational agency
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that receives funds under this part shall notify
the parents of each student attending any
school receiving funds under this part that they
may request, and shall provide the parents
upon request (and in a timely manner), infor-
mation regarding the professional qualifications
of the student’s classroom teachers, including,
at a minimum, the following:
‘‘(i) Whether the teacher has met
State qualification and licensing criteria
for the grade levels and subject areas in
which the teacher provides instruction.
‘‘(ii) Whether the teacher is teaching
under emergency or other provisional sta-
tus through which State qualification or li-
censing criteria have been waived.
‘‘(iii) The baccalaureate degree major
of the teacher and any other graduate cer-
tification or degree held by the teacher,
and the field of discipline of the certifi-
cation or degree.
‘‘(iv) Whether the child is provided
services by paraprofessionals and if so,
their qualifications.
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‘‘(B) ADDITIONAL INFORMATION.—In ad-
dition to the information which parents may re-
quest under subparagraph (A), a school which
receives funds under this part shall provide to
each individual parent—
‘‘(i) information on the level of per-
formance of the individual student for
whom they are the parent in each of the
State academic assessments as required
under this part; and
‘‘(ii) timely notice that the student for
whom they are the parent has been as-
signed, or has been taught for 4 or more
consecutive weeks by, a teacher who is not
fully qualified.
‘‘(C) FORMAT.—The notice and informa-
tion provided to parents under this paragraph
shall be in an understandable and uniform for-
mat and, to the extent practicable, provided in
a language that the parents can understand.
‘‘(6) PLAN CONTENT.—A State shall include in
its plan under subsection (b) an assurance that it
has in effect a policy that meets the requirements of
this section.
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‘‘(i) PRIVACY.—Information collected under this sec-
tion shall be collected and disseminated in a manner that
protects the privacy of individuals.
‘‘(j) SPECIAL RULE
WITH RESPECT
TO BUREAU
FUNDED SCHOOLS.—In determining the assessments to
be used by each Bureau funded school receiving funds
under this part, the following shall apply:
‘‘(1) Each Bureau funded school which obtains
accreditation by the State in which it is operating
shall utilize the assessments the State has developed
and implemented to meet the requirements of this
section, or such other appropriate assessment as ap-
proved by the Secretary of the Interior.
‘‘(2) Each Bureau funded school which obtains
accreditation by a regional accreditation organiza-
tion shall adopt an appropriate assessment, in con-
sultation and with the approval of the Secretary of
Interior and consistent with assessments adopted by
other schools in the same State or region, that meets
the requirements of this section.
‘‘(3) Each Bureau funded school which obtains
accreditation by a tribal accrediting agency or tribal
division of education shall use an assessment devel-
oped by such agency or division, except that the Sec-
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retary of Interior shall ensure that such assessment
meets the requirements of this section.
‘‘SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS.
‘‘(a) PLANS REQUIRED.—
‘‘(1) SUBGRANTS.—A local educational agency
may receive a subgrant under this part for any fiscal
year only if such agency has on file with the State
educational agency a plan, approved by the State
educational agency, that is coordinated with other
programs under this Act, the Individuals with Dis-
abilities Education Act (20 U.S.C. 1400 et seq.), the
Carl D. Perkins Vocational and Technical Education
Act of 1998 (20 U.S.C. 2301 et seq.), the Head
Start Act (42 U.S.C. 9831 et seq.), the McKinney-
Vento Homeless Assistance Act, and other Acts, as
appropriate.
‘‘(2) CONSOLIDATED APPLICATION.—The plan
may be submitted as part of a consolidated applica-
tion under section 8305.
‘‘(b) PLAN PROVISIONS.—In order to help low achiev-
ing children achieve high academic standards, each local
educational agency plan shall include—
‘‘(1) a description of additional high-quality
student academic assessments, if any, other than the
academic assessments described in the State plan
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under section 1111, that the local educational agen-
cy and schools served under this part will use to—
‘‘(A) determine the success of children
served under this part in meeting the State’s
student academic achievement standards and
provide information to teachers, parents, and
students on the progress being made toward
meeting the State student academic achieve-
ment 
standards 
described 
in 
section
1111(b)(1)(D)(ii);
‘‘(B) assist in diagnosis, teaching, and
learning in the classroom in ways that best en-
able low-achieving children served under this
title to meet State academic standards and do
well in the local curriculum; and
‘‘(C) determine what revisions are needed
to projects under this title so that such children
meet the State’s student academic achievement
standards;
‘‘(2) at the local educational agency’s discre-
tion, a description of any other indicators that will
be used in addition to the academic assessments de-
scribed in paragraph (1) for the uses described in
such paragraph, except that results on any discre-
tionary indicators shall not change which schools
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would otherwise be subject to improvement of correc-
tive action under section 1118 if the additional
measures are not included;
‘‘(3) a description of how the local educational
agency will provide additional educational assistance
to individual students assessed as needing help to
achieve the State’s challenging academic standards;
‘‘(4) a description of the strategy the local edu-
cational agency will use to provide professional de-
velopment for teachers, and, if appropriate, pupil
services personnel, administrators, parents and other
staff, including local educational agency level staff in
accordance with section 1119A;
‘‘(5) a description of how the local educational
agency will coordinate and integrate services pro-
vided under this part with other educational services
at the local educational agency or individual school
level, such as—
‘‘(A) Even Start, Head Start, Reading
First, Early Reading First, and other preschool
programs, including plans for the transition of
participants in such programs to local elemen-
tary school programs; and
‘‘(B) services for children with limited
English proficiency or with disabilities, migra-
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tory children served under part C, neglected or
delinquent youth, Indian children served under
part B of title III, homeless children, and immi-
grant children in order to increase program ef-
fectiveness, eliminate duplication, and reduce
fragmentation of the instructional program;
‘‘(6) an assurance that the local educational
agency will participate, if selected, in the State Na-
tional Assessment of Educational Progress in 4th
and 8th grade reading and mathematics carried out
under section 411(b)(2) of the Education Statistics
Act of 1994 (20 U.S.C. 9010(b)(2)), or in another
academic assessment pursuant to the State decision
under section 7101(b)(1)(B)(ii);
‘‘(7) a description of the poverty criteria that
will be used to select school attendance areas under
section 1113;
‘‘(8) a description of how teachers, in consulta-
tion with parents, administrators, and pupil services
personnel, in targeted assistance schools under sec-
tion 1115, will identify the eligible children most in
need of services under this part;
‘‘(9) a general description of the nature of the
programs to be conducted by such agency’s schools
under sections 1114 and 1115 and, where appro-
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priate, educational services outside such schools for
children living in local institutions for neglected or
delinquent children, for neglected and delinquent
children in community day school programs, and for
homeless children;
‘‘(10) a description of how the local educational
agency will ensure that migratory children and for-
merly migratory children who are eligible to receive
services under this part are selected to receive such
services on the same basis as other children who are
selected to receive services under this part;
‘‘(11) if appropriate, a description of how the
local educational agency will use funds under this
part to support preschool programs for children,
particularly children participating in Early Reading
First, or in a Head Start or Even Start program,
which services may be provided directly by the local
educational agency or through a subcontract with
the local Head Start agency designated by the Sec-
retary of Health and Human Services under section
641 of the Head Start Act (42 U.S.C. 9836), agen-
cies operating Even Start programs, Early Reading
First, or another comparable public early childhood
development program;
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‘‘(12) a description of the actions the local edu-
cational agency will take to assist its low-performing
schools, including schools identified under section
1116 as in need of improvement;
‘‘(13) a description of the actions the local edu-
cational agency will take to implement public school
choice, consistent with the requirements of section
1116;
‘‘(14) a description how the local educational
agency will meet the requirements of section
1119(b)(1); and
‘‘(15) a description of the services the local edu-
cational agency will provide homeless children, in-
cluding services provided with funds reserved under
section 1113(f)(3)(A).
‘‘(c) ASSURANCES.—
‘‘(1) IN
GENERAL.—Each local educational
agency plan shall provide assurances that the local
educational agency will—
‘‘(A) inform eligible schools and parents of
schoolwide program authority and the ability of
such schools to consolidate funds from Federal,
State, and local sources;
‘‘(B) provide technical assistance and sup-
port to schoolwide programs;
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‘‘(C) work in consultation with schools as
the schools develop the schools’ plans pursuant
to section 1114 and assist schools as the
schools implement such plans or undertake ac-
tivities pursuant to section 1115 so that each
school can make adequate yearly progress to-
ward meeting the State student academic
achievement standards;
‘‘(D) fulfill such agency’s school improve-
ment responsibilities under section 1116, in-
cluding taking corrective actions under para-
graphs (7) and (8) of section 1116(b);
‘‘(E) provide services to eligible children
attending private elementary and secondary
schools in accordance with section 1120, and
timely and meaningful consultation with private
school officials regarding such services;
‘‘(F) take into account the experience of
model programs for the educationally disadvan-
taged, and the findings of relevant scientifically
based research indicating that services may be
most effective if focused on students in the ear-
liest grades at schools that receive funds under
this part;
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‘‘(G) in the case of a local educational
agency that chooses to use funds under this
part to provide early childhood development
services to low-income children below the age of
compulsory school attendance, ensure that such
services comply with the academic achievement
standards established under section 641A(a) of
the Head Start Act (42 U.S.C. 9836a(a));
‘‘(H) comply with the requirements of sec-
tion 1119 regarding the qualifications of teach-
ers and paraprofessionals;
‘‘(I) inform eligible schools of the local
educational agency’s authority to obtain waivers
on the school’s behalf under title VIII of this
Act, and if the State is an Ed-Flex Partnership
State, to obtain waivers under the Education
Flexibility Partnership Act of 1999; and
‘‘(J) coordinate and collaborate, to the ex-
tent feasible and necessary as determined by
the local educational agency, with other agen-
cies providing services to children, youth, and
families.
‘‘(2) SPECIAL RULE.—In carrying out subpara-
graph (G) of paragraph (1), the Secretary—
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‘‘(A) shall consult with the Secretary of
Health and Human Services on the implemen-
tation of such subparagraph and shall establish
procedures (taking into consideration existing
State and local laws, and local teacher con-
tracts) to assist local educational agencies to
comply with such subparagraph; and
‘‘(B) shall disseminate to local educational
agencies the Head Start academic achievement
standards as in effect under section 641A(a) of
the Head Start Act (42 U.S.C. 9836a(a)), and
such agencies affected by such subparagraph
shall plan for the implementation of such sub-
paragraph (taking into consideration existing
State and local laws, and local teacher con-
tracts), including pursuing the availability of
other Federal, State, and local funding sources
to assist in compliance with such subparagraph.
‘‘(3) INAPPLICABILITY.—The provisions of this
subsection shall not apply to preschool programs
using the Even Start model or to Even Start pro-
grams which are expanded through the use of funds
under this part.
‘‘(d) PLAN DEVELOPMENT AND DURATION.—
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‘‘(1) CONSULTATION.—Each local educational
agency plan shall be developed in consultation with
teachers, principals, administrators (including ad-
ministrators of programs described in other parts of
this title), and other appropriate school personnel,
and with parents of children in schools served under
this part.
‘‘(2) DURATION.—Each such plan shall be sub-
mitted for the first year for which this part is in ef-
fect following the date of the enactment of the No
Child Left Behind Act of 2001 and shall remain in
effect for the duration of the agency’s participation
under this part.
‘‘(3) REVIEW.—Each local educational agency
shall periodically review, and as necessary, revise its
plan.
‘‘(e) STATE APPROVAL.—
‘‘(1) IN
GENERAL.—Each local educational
agency plan shall be filed according to a schedule es-
tablished by the State educational agency.
‘‘(2) APPROVAL.—The State educational agency
shall approve a local educational agency’s plan only
if the State educational agency determines that the
local educational agency’s plan—
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‘‘(A) enables schools served under this part
to substantially help children served under this
part meet the academic standards expected of
all children described in section 1111(b)(1); and
‘‘(B) meets the requirements of this sec-
tion.
‘‘(f) PROGRAM RESPONSIBILITY.—The local edu-
cational agency plan shall reflect the shared responsibility
of schools, teachers, and the local educational agency in
making decisions regarding activities under sections 1114
and 1115.
‘‘(g) PARENTAL NOTIFICATION AND CONSENT FOR
ENGLISH LANGUAGE INSTRUCTION.—
‘‘(1) NOTIFICATION.—If a local educational
agency uses funds under this part to provide English
language instruction to limited English proficient
children, the agency shall inform a parent or the
parents of a child participating in an English lan-
guage instruction program for limited English pro-
ficient children assisted under this part of—
‘‘(A) the reasons for the identification of
the child as being in need of English language
instruction;
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‘‘(B) the child’s level of English pro-
ficiency, how such level was assessed, and the
status of the child’s academic achievement;
‘‘(C) how the English language instruction
program will specifically help the child acquire
English and meet age-appropriate academic
standards for grade promotion and graduation;
‘‘(D) what the specific exit requirements
are for the program;
‘‘(E) the expected rate of transition from
the program into a classroom that is not tai-
lored for limited English proficient children;
and
‘‘(F) the expected rate of graduation from
high school for students in the program if funds
under this part are used for children in sec-
ondary schools.
‘‘(2) CONSENT.—
‘‘(A) AGENCY REQUIREMENTS.—
‘‘(i) INFORMED
CONSENT.—For a
child who has been identified as limited
English proficient prior to the beginning of
a school year, each local educational agen-
cy that receives funds under this part shall
make a reasonable and substantial effort
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to obtain informed parental consent prior
to the placement of a child in an English
language instruction program for limited
English proficient children funded under
this part if the program does not include
classes which exclusively or almost exclu-
sively use the English language in instruc-
tion.
‘‘(ii) WRITTEN
CONSENT
NOT
OB-
TAINED.—If written consent is not ob-
tained, the local educational agency shall
maintain a written record that includes the
date and the manner in which such in-
formed consent was sought, including the
specific efforts made to obtain such con-
sent.
‘‘(iii) PROOF OF EFFORT.—Notice, in
an understandable form, of specific efforts
made to obtain written consent and a copy
of the written record required in clause (ii)
shall be mailed or delivered in writing to a
parent, parents, or guardian of a child
prior to placing the child in a program de-
scribed in clause (i) and shall include a
final request for parental consent for such
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services. After such notice has been mailed
or delivered in writing, the local edu-
cational agency shall provide appropriate
educational services.
‘‘(iv) 
SPECIAL
RULE
APPLICABLE
DURING
SCHOOL
YEAR.—For those chil-
dren who have not been identified as lim-
ited English proficient prior to the begin-
ning of the school year, the local edu-
cational agency shall make a reasonable
and substantial effort to obtain parental
consent under this clause. For such chil-
dren, the agency shall document, in writ-
ing, its specific efforts made to obtain such
consent prior to placing the child in a pro-
gram described in clause (i). After such
documentation has been made, the local
educational agency shall provide appro-
priate educational services to such child.
The proof of documentation shall be
mailed or delivered in writing to a parent
or parents of the child in a timely manner
and shall include information on how to
have their child immediately removed from
the program upon their request. Nothing
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in this clause shall be construed as exempt-
ing a local educational agency from com-
plying with the notification requirements of
subsection (g)(1) and the consent require-
ments of this paragraph.
‘‘(3) PARENTAL RIGHTS.—A parent or the par-
ents of a child participating in an English language
instruction program for limited English proficient
children assisted under this part shall—
‘‘(A) select among methods of instruction,
if more than one method is offered in the pro-
gram; and
‘‘(B) have the right to have their child im-
mediately removed from the program upon their
request.
‘‘(4) RECEIPT OF INFORMATION.—A parent or
the parents of a limited English proficient child who
is identified for participation in an English language
instruction program for limited English proficient
children assisted under this part shall receive, in a
manner and form understandable to the parent or
parents, the information required by this subsection.
At a minimum, the parent or parents shall receive—
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‘‘(A) timely information about English lan-
guage instruction programs for limited English
proficient children assisted under this part;
‘‘(B) if a parent or parents of a partici-
pating child so desires, notice of opportunities
for regular meetings for the purpose of formu-
lating and responding to recommendations from
the parent or parents; and
‘‘(C) procedural information for removing
a child from a program for limited English pro-
ficient children.
‘‘(5) BASIS FOR ADMISSION OR EXCLUSION.—
Students shall not be admitted to, or excluded from,
any federally-assisted education program on the
basis of a surname or language-minority status.
‘‘SEC. 1113. ELIGIBLE SCHOOL ATTENDANCE AREAS.
‘‘(a) DETERMINATION.—
‘‘(1) IN GENERAL.—A local educational agency
shall use funds received under this part only in eligi-
ble school attendance areas.
‘‘(2) ELIGIBLE SCHOOL ATTENDANCE AREAS.—
For the purposes of this part—
‘‘(A) the term ‘school attendance area’
means, in relation to a particular school, the
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geographical area in which the children who are
normally served by that school reside; and
‘‘(B) the term ‘eligible school attendance
area’ means a school attendance area in which
the percentage of children from low-income
families is at least as high as the percentage of
children from low-income families in the local
educational agency as a whole.
‘‘(3) LOCAL
EDUCATIONAL
AGENCY
DISCRE-
TION.—
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (2), a local educational agency may—
‘‘(i) designate as eligible any school
attendance area or school in which at least
35 percent of the children are from low-in-
come families;
‘‘(ii) use funds received under this
part in a school that is not in an eligible
school attendance area, if the percentage
of children from low-income families en-
rolled in the school is equal to or greater
than the percentage of such children in a
participating school attendance area of
such agency;
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‘‘(iii) designate and serve a school at-
tendance area or school that is not eligible
under subsection (b), but that was eligible
and that was served in the preceding fiscal
year, but only for 1 additional fiscal year;
and
‘‘(iv) elect not to serve an eligible
school attendance area or eligible school
that has a higher percentage of children
from low-income families if—
‘‘(I) the school meets the com-
parability requirements of section
1120A(c);
‘‘(II) the school is receiving sup-
plemental funds from other State or
local sources that are spent according
to the requirements of section 1114 or
1115; and
‘‘(III) the funds expended from
such other sources equal or exceed the
amount that would be provided under
this part.
‘‘(B) 
SPECIAL
RULE.—Notwithstanding
subparagraph (A)(iv), the number of children
attending private elementary and secondary
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schools who are to receive services, and the as-
sistance such children are to receive under this
part, shall be determined without regard to
whether the public school attendance area in
which such children reside is assisted under
subparagraph (A).
‘‘(b) RANKING ORDER.—If funds allocated in accord-
ance with subsection (f) are insufficient to serve all eligible
school attendance areas, a local educational agency—
‘‘(1) shall annually rank from highest to lowest
according to the percentage of children from low-in-
come families in each agency’s eligible school attend-
ance areas in the following order—
‘‘(A) eligible school attendance areas in
which the concentration of children from low-in-
come families exceeds 75 percent; and
‘‘(B) all remaining eligible school attend-
ance areas in which the concentration of chil-
dren from low-income families is 75 percent or
lower either by grade span or for the entire
local educational agency;
‘‘(2) shall, within each category listed in para-
graph (1), serve schools in rank order from highest
to lowest according to the ranking assigned under
paragraph (1);
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‘‘(3) notwithstanding paragraph (2), may give
priority, within each such category and in rank order
from highest to lowest subject to paragraph (4), to
eligible school attendance areas that serve children
in elementary schools; and
‘‘(4) not serve a school described in paragraph
(1)(B) before serving a school described in para-
graph (1)(A).
‘‘(c) LOW-INCOME MEASURES.—In determining the
number of children ages 5 through 17 who are from low-
income families, the local educational agency shall apply
the measures described in paragraphs (1) and (2) of this
subsection:
‘‘(1) ALLOCATION TO PUBLIC SCHOOL ATTEND-
ANCE
AREAS.—The local educational agency shall
use the same measure of poverty, which measure
shall be the number of children ages 5 through 17
in poverty counted in the most recent census data
approved by the Secretary, the number of children
eligible for free and reduced priced lunches under
the Richard B. Russell National School Lunch Act
(42 U.S.C. 1751 et seq.), the number of children in
families receiving assistance under the State pro-
gram funded under part A of title IV of the Social
Security Act, or the number of children eligible to
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receive medical assistance under the Medicaid pro-
gram, or a composite of such indicators, with respect
to all school attendance areas in the local edu-
cational agency—
‘‘(A) to identify eligible school attendance
areas;
‘‘(B) to determine the ranking of each
area; and
‘‘(C) to determine allocations under sub-
section (f).
‘‘(2) ALLOCATION FOR EQUITABLE SERVICE TO
PRIVATE SCHOOL STUDENTS.—
‘‘(A) CALCULATION.—A local educational
agency shall have the final authority, consistent
with section 1120 to calculate the number of
private school children, ages 5 through 17, who
are low-income by—
‘‘(i) using the same measure of low-in-
come used to count public school children;
‘‘(ii) using the results of a survey
that, to the extent possible, protects the
identity of families of private school stu-
dents and allowing such survey results to
be extrapolated if complete actual data are
not available; or
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‘‘(iii) applying the low-income percent-
age of each participating public school at-
tendance area, determined pursuant to this
section, to the number of private school
children who reside in that attendance
area.
‘‘(B) COMPLAINT PROCESS.—Any dispute
regarding low-income data on private school
students shall be subject to the complaint proc-
ess authorized in section 8505.
‘‘(d) EXCEPTION.—This section (other than sub-
sections (a)(3) and (f)) shall not apply to a local edu-
cational agency with a total enrollment of less than 1,500
children.
‘‘(e) WAIVER
FOR DESEGREGATION PLANS.—The
Secretary may approve a local educational agency’s writ-
ten request for a waiver of the requirements of subsections
(a) and (f), and permit such agency to treat as eligible,
and serve, any school that children attend under a deseg-
regation plan ordered by a State or court or approved by
the Secretary, or such a plan that the agency continues
to implement after it has expired, if—
‘‘(1) the number of economically disadvantaged
children enrolled in the school is not less than 25
percent of the school’s total enrollment; and
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‘‘(2) the Secretary determines on the basis of a
written request from such agency and in accordance
with such criteria as the Secretary establishes, that
approval of that request would further the purposes
of this part.
‘‘(f) ALLOCATIONS.—
‘‘(1) IN GENERAL.—A local educational agency
shall allocate funds received under this part to eligi-
ble school attendance areas or eligible schools, iden-
tified under subsection (b) in rank order on the
basis of the total number of children from low-in-
come families in each area or school.
‘‘(2) SPECIAL RULE.—(A) Except as provided
in subparagraph (B), the per-pupil amount of funds
allocated to each school attendance area or school
under paragraph (1) shall be at least 125 percent of
the per-pupil amount of funds a local educational
agency received for that year under the poverty cri-
teria described by the local educational agency in the
plan submitted under section 1112, except that this
paragraph shall not apply to a local educational
agency that only serves schools in which the percent-
age of such children is 35 percent or greater.
‘‘(B) A local educational agency may reduce the
amount of funds allocated under subparagraph (A)
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for a school attendance area or school by the amount
of any supplemental State and local funds expended
in that school attendance area or school for pro-
grams that meet the requirements of section 1114 or
1115.
‘‘(3) RESERVATION.—A local educational agen-
cy shall reserve such funds as are necessary under
this part to provide services comparable to those
provided to children in schools funded under this
part to serve—
‘‘(A) homeless children who do not attend
participating schools, including providing educa-
tionally related support services to children in
shelters and other locations where children may
live;
‘‘(B) children in local institutions for ne-
glected children; and
‘‘(C) if appropriate, children in local insti-
tutions for delinquent children and neglected or
delinquent children in community day school
programs.
‘‘(4) SCHOOL
IMPROVEMENT
RESERVATION.—
In addition to the funding a local educational agency
receives under section 1003(b), a local educational
agency may reserve such funds as are necessary
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under this part to meet such agency’s school im-
provement responsibilities under section 1116, in-
cluding taking corrective actions under paragraphs
(7) and (8) of section 1116(b).
‘‘(5) FINANCIAL
INCENTIVES
AND
REWARDS
RESERVATION.—A local educational agency may re-
serve such funds as are necessary under this part to
provide financial incentives and rewards to teachers
who serve in schools eligible under subsection
(b)(1)(A) and identified for improvement under sec-
tion 1116(b)(1) for the purpose of attracting and re-
taining qualified and effective teachers.
‘‘SEC. 1114. SCHOOLWIDE PROGRAMS.
‘‘(a) PURPOSE.—The purpose of a schoolwide pro-
gram under this section is—
‘‘(1) to enable a local educational agency to
consolidate funds under this part with other Federal,
State, and local funds, to upgrade the entire edu-
cational program in a high poverty school; and
‘‘(2) to help ensure that all children in such a
school meet challenging State academic standards
for student achievement, particularly those children
who are most at-risk of not meeting those standards.
‘‘(b) USE
OF
FUNDS
FOR
SCHOOLWIDE
PRO-
GRAMS.—
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‘‘(1) IN GENERAL.—A local educational agency
may consolidate funds under this part, together with
other Federal, State, and local funds, in order to up-
grade the entire educational program of a school
that serves an eligible school attendance area in
which not less than 40 percent of the children are
from low-income families, or not less than 40 per-
cent of the children enrolled in the school are from
such families.
‘‘(2) IDENTIFICATION OF STUDENTS NOT RE-
QUIRED.—
‘‘(A) IN
GENERAL.—No school partici-
pating in a schoolwide program shall be re-
quired to identify particular children under this
part as eligible to participate in a schoolwide
program or to provide supplemental services to
such children.
‘‘(B) SUPPLEMENT FUNDS.—A school par-
ticipating in a schoolwide program shall use
funds available to carry out this section only to
supplement the amount of funds that would, in
the absence of funds under this part, be made
available from non-Federal sources for the
school, including funds needed to provide serv-
ices that are required by law for children with
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disabilities and children with limited English
proficiency.
‘‘(3) EXEMPTION FROM STATUTORY AND REGU-
LATORY REQUIREMENTS.—
‘‘(A) EXEMPTION.—Except as provided in
subsection (c), the Secretary may, through pub-
lication of a notice in the Federal Register, ex-
empt schoolwide programs under this section
from statutory or regulatory provisions of any
other noncompetitive formula grant program
administered by the Secretary (other than for-
mula or discretionary grant programs under the
Individuals with Disabilities Education Act, ex-
cept as provided in section 613(a)(2)(D) of
such Act), or any discretionary grant program
administered by the Secretary, to support
schoolwide programs if the intent and purposes
of such other programs are met.
‘‘(B) 
REQUIREMENTS.—A 
school 
that
chooses to use funds from such other programs
shall not be relieved of the requirements relat-
ing to health, safety, civil rights, student and
parental participation and involvement, services
to private school children, maintenance of ef-
fort, uses of Federal funds to supplement, not
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supplant non-Federal funds, or the distribution
of funds to State or local educational agencies
that apply to the receipt of funds from such
programs.
‘‘(C) RECORDS.—A school that consoli-
dates funds from different Federal programs
under this section shall not be required to
maintain separate fiscal accounting records, by
program, that identify the specific activities
supported by those particular funds as long as
it maintains records that demonstrate that the
schoolwide program, considered as a whole ad-
dresses the intent and purposes of each of the
Federal programs that were consolidated to
support the schoolwide program.
‘‘(4) 
PROFESSIONAL
DEVELOPMENT.—Each
school receiving funds under this part for any fiscal
year shall devote sufficient resources to effectively
carry out the activities described in subsection
(c)(1)(D) in accordance with section 1119A for such
fiscal year, except that a school may enter into a
consortium with another school to carry out such ac-
tivities.
‘‘(c) COMPONENTS OF A SCHOOLWIDE PROGRAM.—
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‘‘(1) IN GENERAL.—A schoolwide program shall
include the following components:
‘‘(A) A comprehensive needs assessment of
the entire school (including taking into account
the needs of migratory children as defined in
section 1309(2)) that is based on information
which includes the performance of children in
relation to the State academic content stand-
ards and the State student academic achieve-
ment standards described in section 1111(b)(1).
‘‘(B) Schoolwide reform strategies that—
‘‘(i) provide opportunities for all chil-
dren to meet the State’s proficient and ad-
vanced levels of student achievement de-
scribed in section 1111(b)(1)(D);
‘‘(ii) use effective methods and in-
structional strategies that are based upon
scientifically based research that—
‘‘(I) strengthen the core aca-
demic program in the school;
‘‘(II) increase the amount and
quality of learning time, such as pro-
viding an extended school year and
before- and after-school and summer
programs and opportunities, and help
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provide an enriched and accelerated
curriculum; and
‘‘(III) include strategies for meet-
ing the educational needs of histori-
cally underserved populations;
‘‘(iii)(I) address the needs of all chil-
dren in the school, but particularly the
needs of low-achieving children and those
at risk of not meeting the State student
academic achievement standards who are
members of the target population of any
program that is included in the schoolwide
program; and
‘‘(II) address how the school will de-
termine if such needs have been met; and
‘‘(iv) are consistent with, and are de-
signed to implement, the State and local
improvement plans, if any.
‘‘(C) Instruction by fully qualified (as de-
fined in section 8101) teachers.
‘‘(D) In accordance with section 1119A
and subsection (b)(4), high quality and ongoing
professional development for teachers and para-
professionals, and, where appropriate, pupil
services personnel, parents, principals, and
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other staff to enable all children in the school
to meet the State’s student academic achieve-
ment standards.
‘‘(E) Strategies to attract high quality
teachers to high need schools, such as differen-
tial pay systems or performance based pay.
‘‘(F) Strategies to increase parental in-
volvement in accordance with section 1118,
such as family literary services.
‘‘(G) Plans for assisting preschool children
in the transition from early childhood programs,
such as Head Start, Even Start, Early Reading
First, or a State-run preschool program, to
local elementary school programs.
‘‘(H) Measures to include teachers in the
decisions regarding the use of academic assess-
ments described in section 1111(b)(4) in order
to provide information on, and to improve, the
performance of individual students and the
overall instructional program.
‘‘(I) Activities to ensure that students who
experience difficulty mastering the proficient or
advanced levels of academic achievement stand-
ards required by section 1111(b) shall be pro-
vided with effective, timely additional assistance
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which shall include measures to ensure that stu-
dents’ difficulties are identified on a timely
basis and to provide sufficient information on
which to base effective assistance.
‘‘(2) PLAN.—Any eligible school that desires to
operate a schoolwide program shall first develop (or
amend a plan for such a program that was in exist-
ence on the day before the effective date of the No
Child Left Behind Act of 2001), a comprehensive
plan for reforming the total instructional program in
the school that—
‘‘(A) incorporates the components de-
scribed in paragraph (1);
‘‘(B) describes how the school will use re-
sources under this part and from other sources
to implement those components; and
‘‘(C) includes a list of State and local edu-
cational agency programs and other Federal
programs under subsection (b)(3) that will be
consolidated in the schoolwide program.
‘‘(3) PLAN
DEVELOPMENT.—The comprehen-
sive plan shall be—
‘‘(A) developed during a 1-year period,
unless—
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‘‘(i) the local educational agency de-
termines that less time is needed to de-
velop and implement the schoolwide pro-
gram; or
‘‘(ii) the school operated a schoolwide
program on the day preceding the effective
date of the No Child Left Behind Act of
2001, in which case such school may con-
tinue to operate such program, but shall
develop amendments to its existing plan
during the first year of assistance after
that date to reflect the provisions of this
section;
‘‘(B) developed with the involvement of
parents and other members of the community
to be served and individuals who will carry out
such plan, including teachers, principals, and
administrators (including administrators of pro-
grams described in other parts of this title),
and, if appropriate, pupil services personnel,
technical assistance providers, school staff, and,
if the plan relates to a secondary school, stu-
dents from such school;
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‘‘(C) in effect for the duration of the
school’s participation under this part and re-
viewed and revised, as necessary, by the school;
‘‘(D) available to the local educational
agency, parents, and the public, and the infor-
mation contained in such plan shall be provided
in a format, and to the extent practicable, in a
language that they can understand; and
‘‘(E) if appropriate, developed in coordina-
tion with programs under Reading First, Early
Reading First, Even Start, Carl D. Perkins Vo-
cational and Technical Education Act of 1998,
and the Head Start Act.
‘‘(d) 
ACCOUNTABILITY.—A 
schoolwide 
program
under this section shall be subject to the school improve-
ment provisions of section 1116.
‘‘(e) PREKINDERGARTEN PROGRAM.—A school that
is eligible for a schoolwide program under this section may
use funds made available under this title to establish or
enhance prekindergarten programs for 3-, 4-, and 5-year-
old children, such as Even Start programs or Early Read-
ing First programs.
‘‘SEC. 1115. TARGETED ASSISTANCE SCHOOLS.
‘‘(a) IN GENERAL.—In all schools selected to receive
funds under section 1113(f) that are ineligible for a
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schoolwide program under section 1114, or that choose
not to operate such a schoolwide program, a local edu-
cational agency may use funds received under this part
only for programs that provide services to eligible children
under subsection (b) identified as having the greatest need
for special assistance.
‘‘(b) ELIGIBLE CHILDREN.—
‘‘(1) ELIGIBLE POPULATION.—(A) The eligible
population for services under this section is—
‘‘(i) children not older than age 21 who are
entitled to a free public education through
grade 12; and
‘‘(ii) children who are not yet at a grade
level at which the local educational agency pro-
vides a free public education.
‘‘(B) From the population described in subpara-
graph (A), eligible children are children identified by
the school as failing, or most at risk of failing, to
meet the State’s challenging student academic
achievement standards on the basis of academic as-
sessments under this part, and, as appropriate, on
the basis of multiple, educationally related, objective
criteria established by the local educational agency
and supplemented by the school, except that children
from preschool through grade 2 may be selected
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solely on the basis of such criteria as teacher judg-
ment, interviews with parents, and other appropriate
measures.
‘‘(2) CHILDREN
INCLUDED.—(A)(i) Children
with disabilities, migrant children, and children with
limited English proficiency are eligible for services
under this part on the same basis as other children.
‘‘(ii) Funds received under this part may not be
used to provide services that are otherwise required
by law to be made available to such children but
may be used to coordinate or supplement such serv-
ices.
‘‘(B) A child who, at any time in the 2 years
preceding the year for which the determination is
made, participated in a Head Start, Even Start, or
Early Reading First program, or in preschool serv-
ices under this title, is eligible for services under this
part.
‘‘(C)(i) A child who, at any time in the 2 years
preceding the year for which the determination is
made, received services under part C is eligible for
services under this part.
‘‘(ii) A child in a local institution for neglected
or delinquent children or attending a community day
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program for such children is eligible for services
under this part.
‘‘(D) A child who is homeless and attending any
school in the local educational agency is eligible for
services under this part.
‘‘(c) COMPONENTS
OF
A TARGETED ASSISTANCE
SCHOOL PROGRAM.—
‘‘(1) IN GENERAL.—To assist targeted assist-
ance schools and local educational agencies to meet
their responsibility to provide for all their students
served under this title the opportunity to meet the
State’s challenging student academic achievement
standards in subjects as determined by the State,
each targeted assistance program under this section
shall—
‘‘(A) use such program’s resources under
this part to help participating children meet
such State’s challenging student academic
achievement standards expected for all children;
‘‘(B) ensure that planning for students
served under this part is incorporated into ex-
isting school planning;
‘‘(C) use effective methods and instruc-
tional strategies that are based upon scientif-
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ically based research that strengthens the core
academic program of the school and that—
‘‘(i) give primary consideration to pro-
viding extended learning time such as an
extended school year, before- and after-
school, and summer programs and oppor-
tunities;
‘‘(ii) help provide an accelerated, high-
quality curriculum, including applied learn-
ing; and
‘‘(iii) 
minimize 
removing 
children
from the regular classroom during regular
school hours for instruction provided under
this part;
‘‘(D) coordinate with and support the reg-
ular education program, which may include
services to assist preschool children in the tran-
sition from early childhood programs such as
Head Start, Even Start, Early Reading First or
State-run preschool programs to elementary
school programs;
‘‘(E) provide instruction by fully qualified
teachers as defined in section 8101;
‘‘(F) in accordance with subsection (e)(3)
and section 1119A, provide opportunities for
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professional development with resources pro-
vided under this part, and, to the extent prac-
ticable, from other sources, for teachers, prin-
cipals, and administrators and other school
staff, including, if appropriate, pupil services
personnel, who work with participating children
in programs under this section or in the regular
education program; and
‘‘(G) provide strategies to increase paren-
tal involvement in accordance with section
1118, such as family literacy services.
‘‘(2) REQUIREMENTS.—Each school conducting
a program under this section shall assist partici-
pating children selected in accordance with sub-
section (b) to meet the State’s proficient and ad-
vanced levels of achievement by—
‘‘(A) the coordination of resources provided
under this part with other resources; and
‘‘(B) reviewing, on an ongoing basis, the
progress of participating children and revising
the targeted assistance program, if necessary,
to provide additional assistance to enable such
children to meet the State’s challenging student
academic achievement standards, such as an ex-
tended school year, before- and after-school,
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and summer programs and opportunities, train-
ing for teachers regarding how to identify stu-
dents that require additional assistance, and
training for teachers regarding how to imple-
ment student academic achievement standards
in the classroom.
‘‘(d) INTEGRATION
OF PROFESSIONAL DEVELOP-
MENT.—To promote the integration of staff supported
with funds under this part, public school personnel who
are paid with funds received under this part may partici-
pate in general professional development and school plan-
ning activities.
‘‘(e) SPECIAL RULES.—
‘‘(1) SIMULTANEOUS SERVICE.—Nothing in this
section shall be construed to prohibit a school from
serving students served under this section simulta-
neously with students with similar educational
needs, in the same educational settings where appro-
priate.
‘‘(2) COMPREHENSIVE SERVICES.—If medical,
nutrition, and other social services are not otherwise
available to eligible children in a targeted assistance
school and such school, if appropriate, has engaged
in a comprehensive needs assessment and established
a collaborative partnership with local service pro-
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viders, and if funds are not reasonably available
from other public or private sources to provide such
services, then a portion of the funds provided under
this part may be used as a last resort to provide
such services, including—
‘‘(A) the provision of basic medical equip-
ment, such as eyeglasses and hearing aids; and
‘‘(B) professional development necessary to
assist teachers, pupil services personnel, other
staff, and parents in identifying and meeting
the comprehensive needs of eligible children.
‘‘(3) 
PROFESSIONAL
DEVELOPMENT.—Each
school receiving funds under this part for any fiscal
year shall devote sufficient resources to carry out ef-
fectively the professional development activities de-
scribed in subparagraph (F) of subsection (c)(1) in
accordance with section 1119A for such fiscal year,
except that a school may enter into a consortium
with another school to carry out such activities.’’.
SEC. 105. SCHOOL CHOICE.
Section 1115A is amended to read as follows:
‘‘SEC. 1115A. SCHOOL CHOICE.
‘‘(a) CHOICE PROGRAMS.—A local educational agen-
cy may use funds under this part, in combination with
State, local, and private funds, to develop and implement
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public school choice programs, for children eligible for as-
sistance under this part, which permit parents to select
the public school that their child will attend.
‘‘(b) CHOICE PLAN.—A local educational agency that
chooses to implement a public school choice program shall
first develop a plan that includes a description of how the
local educational agency will use resources under this part
and from other resources to implement the plan, and as-
surances that—
‘‘(1) all eligible students across grade levels
served under this part will have equal access to the
program;
‘‘(2) the plan will be developed with the involve-
ment of parents and others in the community to be
served and individuals who will carry out the plan,
including administrators, teachers, principals, and
other staff;
‘‘(3) parents of eligible students in the local
educational agency will be given prompt notice of the
existence of the public school choice program and its
availability to them, and a clear explanation of how
the program will operate;
‘‘(4) the program will include charter schools
and any other public school and shall not include a
school that is or has been identified as a school in
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school improvement or is or has been in corrective
action for the past 2 consecutive years; and
‘‘(5) such local educational agency will comply
with the other requirements of this part.
‘‘(c) TRANSPORTATION.—Transportation services or
the costs of transportation may be provided by the local
educational agency, except that such agency may not use
more than a total of 15 percent of its allocation under
this part for such purposes.’’.
SEC. 
106. 
ACADEMIC 
ASSESSMENT 
AND 
LOCAL 
EDU-
CATIONAL AGENCY AND SCHOOL IMPROVE-
MENT.
The section heading and subsections (a) through (d)
of section 1116 are amended to read as follows:
‘‘SEC. 1116. ACADEMIC ASSESSMENT AND LOCAL EDU-
CATIONAL AGENCY AND SCHOOL IMPROVE-
MENT.
‘‘(a) LOCAL REVIEW.—Each local educational agency
receiving funds under this part shall—
‘‘(1) use the State academic assessments de-
scribed in the State plan to review annually the
progress of each school served under this part to de-
termine whether the school is making adequate year-
ly progress as defined in section 1111(b)(2)(B);
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‘‘(2) publicize and disseminate to teachers and
other staff, parents, students, and the community,
the results of the annual review under paragraph
(2);
‘‘(3) review the effectiveness of the actions and
activities the schools are carrying out under this
part with respect to parental involvement assisted
under this Act.
‘‘(b) SCHOOL IMPROVEMENT.—
‘‘(1) IN GENERAL.—
‘‘(A) 
IDENTIFICATION.—A 
local 
edu-
cational agency shall identify for school im-
provement any elementary or secondary school
served under this part that—
‘‘(i) fails, for any year, to make ade-
quate yearly progress as defined in the
State’s plan under section 1111(b)(2); or
‘‘(ii) was in school improvement status
under this section immediately before the
effective date of the No Child Left Behind
Act of 2001.
‘‘(B) DEADLINE.—The identification de-
scribed in subparagraph (A) shall take place
not later than the first day of the school year
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following such failure to make adequate yearly
progress.
‘‘(C) APPLICATION.—This paragraph does
not apply to a school if almost every student in
the school is meeting the State’s advanced level
of performance.
‘‘(D) REVIEW.—To determine if an ele-
mentary school or a secondary school that is
conducting a targeted assistance program under
section 1115 should be identified for school im-
provement under this subsection, a local edu-
cational agency may choose to review the
progress of only the students in the school who
are served, or are eligible for services, under
this part.
‘‘(E) PUBLIC
SCHOOL
CHOICE.—In the
case of a school identified for school improve-
ment under subparagraph (A), the local edu-
cational agency shall, not later than the first
day of the school year following identification,
provide all students enrolled in the school with
the option to transfer to another public school
within the local educational agency, including a
public charter school, that has not been identi-
fied for school improvement under subpara-
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graph (A), unless such an option is prohibited
by State law.
‘‘(F) TRANSFER.—Students who use the
option to transfer under subparagraph (E) shall
be enrolled in classes and other activities in the
public school to which they transfer in the same
manner as all other children at the public
school.
‘‘(2) OPPORTUNITY TO REVIEW AND PRESENT
EVIDENCE; TIME LIMIT.—
‘‘(A) IDENTIFICATION.—Before identifying
an elementary school or a secondary school for
school improvement under paragraph (1), for
corrective action under paragraph (7), or for re-
structuring under paragraph (8), the local edu-
cational agency shall provide the school with an
opportunity to review the school-level data, in-
cluding academic assessment data, on which the
proposed identification is based.
‘‘(B) EVIDENCE.—If the principal of a
school proposed for identification under para-
graph (1), (7), or (8) believes, or a majority of
the parents of the students enrolled in such
school believe, that the proposed identification
is in error for statistical or other substantive
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reasons, the principal may provide supporting
evidence to the local educational agency, which
shall consider that evidence before making a
final determination.
‘‘(C) FINAL
DETERMINATION.—Not later
than 30 days after a local educational agency
provides the school with the opportunity to re-
view such school level data, the local edu-
cational agency shall make public a final deter-
mination on the status of the school.
‘‘(3) SCHOOL PLAN.—
‘‘(A) REVISED PLAN.—After the resolution
of a review under paragraph (2), each school
identified under paragraph (1) for school im-
provement shall, not later than 3 months after
being so identified, develop or revise a school
plan, in consultation with parents, school staff,
the local educational agency serving the school,
the local school board, and other outside ex-
perts, for approval by such local educational
agency. The school plan shall cover a 2-year pe-
riod and—
‘‘(i) incorporate scientifically based re-
search strategies that strengthen the core
academic subjects in the school and ad-
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dress the specific academic issues that
caused the school to be identified for
school improvement;
‘‘(ii) adopt policies and practices con-
cerning the school’s core academic subjects
that have the greatest likelihood of ensur-
ing that all groups of students specified in
section 1111(b)(2)(C)(iii)(I) and (II) and
enrolled in the school will meet the State’s
proficient level of achievement on the State
academic assessment described in section
1111(b)(4) not later than 10 years after
the date of enactment of the No Child Left
Behind Act of 2001;
‘‘(iii) provide an assurance that the
school shall reserve not less than 10 per-
cent of the funds made available to the
school under this part for each fiscal year
that the school is in school improvement
status, for the purpose of providing to the
school’s teachers and principal high-quality
professional development that—
‘‘(I) directly addresses the aca-
demic 
performance 
problem 
that
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caused the school to be identified for
school improvement;
‘‘(II) meets the requirements for
professional 
development 
activities
under section 1119A; and
‘‘(III) is provided in a manner
that affords greater opportunity for
participating in such professional de-
velopment;
‘‘(iv) specify how the funds described
in clause (iii) will be used to remove the
school from school improvement status;
‘‘(v) establish specific annual, measur-
able goals for continuous and significant
progress by each group of students speci-
fied in section 1111(b)(2)(C)(iii)(I) and
(II) and enrolled in the school that will en-
sure that all such groups of students shall
meet the State’s proficient level of achieve-
ment on the State academic assessment
described in section 1111(b)(4) not later
than 10 years after the date of enactment
of the No Child Left Behind Act of 2001;
‘‘(vi) identify how the school will pro-
vide written notification about the identi-
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ing, observing, and assisting the teachers
who are mentored.
‘‘(B) CONDITIONAL APPROVAL.—The local
educational agency may condition approval of a
school plan on—
‘‘(i) inclusion of one or more of the
corrective actions specified in paragraph
(6)(D)(ii); or
‘‘(ii) feedback on the school improve-
ment plan from parents and community
leaders.
‘‘(C) PLAN IMPLEMENTATION.—Except as
provided in subparagraph (D), a school shall
implement the school plan (including a revised
plan) expeditiously, but not later than the be-
ginning of the school year following the school
year in which the failure to make adequate
yearly progress took place.
‘‘(D) Notwithstanding subparagraph (C),
in a case in which a plan is not approved prior
to the beginning of a school year, such plan
shall be implemented immediately upon ap-
proval.
‘‘(E) LOCAL
EDUCATIONAL
AGENCY
AP-
PROVAL.—The local educational agency shall—
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‘‘(i) establish a peer-review process to
assist with review of a school plan pre-
pared by a school served by the local edu-
cational agency; and
‘‘(ii) promptly review the school plan,
work with the school as necessary, and ap-
prove the school plan if it meets the re-
quirements of this paragraph.
‘‘(4) TECHNICAL ASSISTANCE.—
‘‘(A) IN GENERAL.—For each school iden-
tified for school improvement under paragraph
(1), the local educational agency serving the
school shall provide technical assistance as the
school develops and implements the school plan
throughout the duration of such plan.
‘‘(B) SPECIFIC
ASSISTANCE.—Such tech-
nical assistance—
‘‘(i) shall include assistance in ana-
lyzing data from the academic assessments
required under section 1111(b)(4), and
other samples of student work, to identify
and address instructional problems and so-
lutions;
‘‘(ii) shall include assistance in identi-
fying and implementing professional devel-
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opment, instructional strategies, and meth-
ods of instruction that are based upon sci-
entifically based research and that have
proven effective in addressing the specific
instructional issues that caused the school
to be identified for school improvement;
‘‘(iii) shall include assistance in ana-
lyzing and revising the school’s budget so
that the school resources are more effec-
tively allocated for the activities most likely
to increase student achievement and to re-
move the school from school improvement
status; and
‘‘(iv) may be provided—
‘‘(I) by the local educational
agency, through mechanisms author-
ized under section 1117; or
‘‘(II) by the State educational
agency, an institution of higher edu-
cation (in full compliance with all the
reporting provisions of title II of the
Higher Education Act of 1965), a pri-
vate not-for-profit organization or for-
profit organization, an educational
service agency, or another entity with
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experience in helping schools improve
performance.
‘‘(C) 
SCIENTIFICALLY
BASED
RE-
SEARCH.—Technical assistance provided under
this section by a local educational agency or an
entity approved by that agency shall be based
on scientifically based research.
‘‘(5) NOTIFICATION TO PARENTS.—A local edu-
cational agency shall promptly provide parents (in a
format and, to the extent practicable, in a language
they can understand) of each student in an elemen-
tary school or a secondary school identified for
school improvement—
‘‘(A) an explanation of what the school im-
provement identification means, and how the
school identified for school improvement com-
pares in terms of academic achievement to
other elementary schools or secondary schools
served by the local educational agency and the
State educational agency involved;
‘‘(B) the reasons for the identification;
‘‘(C) an explanation of what the school
identified for school improvement is doing to
address the problem of low achievement;
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‘‘(D) an explanation of what the local edu-
cational agency or State educational agency is
doing to help the school address the achieve-
ment problem;
‘‘(E) an explanation of how parents de-
scribed in this paragraph can become involved
in addressing the academic issues that caused
the school to be identified for school improve-
ment; and
‘‘(F) an explanation regarding the option
of their child to transfer to another public
school, including a public charter school.
‘‘(6) Additional notification.—Not less than
once each year, each State educational agency shall
provide the Secretary with the name of each school
identified for school improvement under this sub-
section.
‘‘(7) CORRECTIVE ACTION.—
‘‘(A) IN GENERAL.—In this subsection, the
term ‘corrective action’ means action, consistent
with State law, that—
‘‘(i) substantially and directly re-
sponds to—
‘‘(I) the consistent academic fail-
ure of a school that caused the local
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educational agency to take such ac-
tion; and
‘‘(II) any underlying staffing,
curriculum, or other problems in the
school; and
‘‘(ii) is designed to increase substan-
tially the likelihood that students enrolled
in the school identified for corrective action
will perform at the State’s proficient and
advanced levels of achievement on the
State academic assessment described in
section 1111(b)(4).
‘‘(B) SYSTEM.—In order to help students
served under this part meet challenging State
academic standards, each local educational
agency shall implement a system of corrective
action in accordance with subparagraphs (C)
through (F) and paragraphs (8) through (10).
‘‘(C) ROLE OF LOCAL EDUCATIONAL AGEN-
CY.—The local educational agency—
‘‘(i) after providing public school
choice under paragraph (1)(E) and tech-
nical assistance under paragraph (4), shall
identify for corrective action and take cor-
rective action with respect to any school
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served by the local educational agency
under this part that—
‘‘(I) fails to make adequate year-
ly progress, as defined by the State
under section 1111(b)(2), at the end
of the first full school year following
identification under paragraph (1); or
‘‘(II) was in school-improvement
status for 2 years or in corrective-ac-
tion status under this subsection im-
mediately before the effective date of
the No Child Left Behind Act of
2001; and
‘‘(ii) shall continue to provide tech-
nical assistance consistent with paragraph
(4) while instituting any corrective action
under clause (i); and
‘‘(D) REQUIREMENTS.—In the case of a
school described in subparagraph (C)(i), the
local educational agency shall both—
‘‘(i) continue to provide all students
enrolled in the school with the option to
transfer to another public school within the
local educational agency, including a public
charter school, that has not been identified
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for school improvement under paragraph
(1), unless such an option is prohibited by
State law; and
‘‘(ii) take at least one of the following
corrective actions:
‘‘(I) Replace the school staff
which are relevant to the failure to
make adequate yearly progress.
‘‘(II) Institute and fully imple-
ment a new curriculum, including pro-
viding appropriate professional devel-
opment for all relevant staff, that is
based on scientifically based research
and offers substantial promise of im-
proving educational performance for
low-performing 
students 
and 
the
school 
meeting 
adequate 
yearly
progress.
‘‘(III) 
Significantly 
decrease
management authority at the school
level.
‘‘(IV) Appoint an outside expert
to advise the school on its progress to-
ward 
meeting 
adequate 
yearly
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progress, based on its school plan
under this subsection.
‘‘(V) Extend the school year or
school day.
‘‘(VI) Restructure the internal
organizational structure of the school.
‘‘(E) DELAY.—A local educational agency
may delay, for a period not to exceed 1 year,
implementation of corrective action only if the
school’s failure to make adequate yearly
progress was justified due to exceptional or un-
controllable circumstances, such as a natural
disaster or a precipitous and unforeseen decline
in the financial resources of the local edu-
cational agency or school.
‘‘(F) 
PUBLICATION
AND
DISSEMINA-
TION.—The local educational agency shall pub-
lish and disseminate information regarding any
corrective action the local educational agency
takes under this paragraph at a school—
‘‘(i) to the public and to the parents
of each student enrolled in the school sub-
ject to corrective action;
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‘‘(ii) in a format and, to the extent
practicable, in a language that the parents
can understand; and
‘‘(iii) through such means as the
Internet, the media, and public agencies.
‘‘(8) RESTRUCTURING.—
‘‘(A) FAILURE TO MAKE ADEQUATE YEAR-
LY PROGRESS.—If—
‘‘(i) a school is subject to corrective
action under paragraph (7) for one full
school year, and at the end of such year
continues to fail to make adequate yearly
progress and students in the school who
are from economically disadvantaged fami-
lies are not making statistically significant
progress in the subjects included in the
State’s 
definition 
of 
adequate 
yearly
progress; or
‘‘(ii) for 2 additional years a school
subject to corrective action under para-
graph (7) fails to make adequate yearly
progress, the local educational agency
shall—
‘‘(I) provide all students enrolled
in the school with the option to trans-
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fer to another public school within the
local educational agency, including a
public charter school, that has not
been identified for school improvement
under paragraph (1), unless prohib-
ited by State law;
‘‘(II) make supplemental instruc-
tional services available, consistent
with subsection (d)(1); and
‘‘(III) prepare a plan and make
necessary arrangements to carry out
subparagraph (B).
‘‘(B) ALTERNATIVE
GOVERNANCE.—Not
later than the beginning of the school year fol-
lowing the year in which the local educational
agency implements subparagraph (A), the local
educational agency shall implement one of the
following alternative governance arrangements
for the school consistent with State law:
‘‘(i) Reopening the school as a public
charter school.
‘‘(ii) Replacing the principal and all or
most of the school staff that are relevant
to the failure to make adequate yearly
progress.
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‘‘(iii) Entering into a contract with an
entity, such as a private management com-
pany, to operate the public school.
‘‘(iv) Turning the operation of the
school over to the State, if permitted under
State law and agreed to by the State.
‘‘(C) AVAILABLE
RESULTS.—The State
educational agency shall ensure that, for any
school year in which a school is subject to
school improvement under this subsection, the
results of State academic assessments for that
school are available to the local educational
agency by the end of the school year in which
the academic assessments are administered.
‘‘(D) PROMPT
NOTICE.—The local edu-
cational agency shall provide prompt notice to
teachers and parents whenever subparagraph
(A) or (B) applies, shall provide them adequate
opportunity to comment before taking any ac-
tion under those subparagraphs and, to the ex-
tent practicable, to participate in developing
any plan under subparagraph (A)(ii)(III), and
shall provide parents an explanation of the op-
tions under subparagraph (A)(i) and (ii).
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‘‘(9) TRANSPORTATION.—In any case described
in paragraph (1)(E) for schools described in para-
graphs (1)(A)(i), (7)(D)(i), and (8)(A)(ii)(I) the
local educational agency—
‘‘(A) shall provide, or shall pay for the pro-
vision of, transportation for the student to the
public school the child attends; and
‘‘(B) may use not more than a total of 15
percent of its allocation under this part for that
purpose.
‘‘(10) COOPERATIVE AGREEMENT.—In any case
described 
in 
paragraph 
(1)(E), 
(7)(D)(i), 
or
(8)(A)(ii)(I), if all public schools in the local edu-
cational agency to which a child may transfer to, are
identified for school improvement, the agency shall,
to the extent practicable, establish a cooperative
agreement with other local educational agencies in
the area for a transfer.
‘‘(11) DURATION.—If any school identified for
corrective action or restructuring—
‘‘(A) makes adequate yearly progress for 2
consecutive years, the local educational agency
need no longer subject it to corrective action or
restructuring nor identify it as in need of im-
provement; or
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‘‘(B) fails to make adequate yearly
progress, but children from low-income families
in the school make statistically significant edu-
cational progress for 1 year, the local edu-
cational agency shall place or continue as ap-
propriate the school in corrective action under
paragraph (7).
‘‘(12) STATE
RESPONSIBILITIES.—The State
shall—
‘‘(A) make technical assistance under sec-
tion 1117 available to all schools identified for
school improvement and restructuring under
this subsection;
‘‘(B) if it determines that a local edu-
cational agency has failed to carry out its re-
sponsibilities under this subsection, take such
corrective actions as the State finds appropriate
and in compliance with State law; and
‘‘(C) ensure that academic assessment re-
sults under this part are provided to schools
within the same school year in which the assess-
ment was given.
‘‘(c) STATE REVIEW
AND LOCAL EDUCATIONAL
AGENCY IMPROVEMENT.—
‘‘(1) IN GENERAL.—A State shall—
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‘‘(A) annually review the progress of each
local educational agency receiving funds under
this part to determine whether schools receiving
assistance under this part are making adequate
yearly progress as defined in section 1111(b)(2)
toward meeting the State’s student academic
achievement standards; and
‘‘(B) publicize and disseminate to local
educational agencies, teachers and other staff,
parents, students, and the community the re-
sults of the State review consistent with section
1111, 
including 
statistically 
sound
disaggregated results, as required by section
1111(b)(2).
‘‘(2) IDENTIFICATION OF LOCAL EDUCATIONAL
AGENCY FOR IMPROVEMENT.—A State shall identify
for improvement any local educational agency that—
‘‘(A) for 2 consecutive years failed to make
adequate yearly progress as defined in the
State’s plan under section 1111(b)(2); or
‘‘(B) was in improvement status under this
section as this section was in effect on the day
preceding the date of the enactment of the No
Child Left Behind Act of 2001.
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‘‘(3) TRANSITION.—The 2-year period described
in paragraph (2)(A) shall include any continuous pe-
riod of time immediately preceding the date of the
enactment of the No Child Left Behind Act of 2001,
during which a local educational agency did not
make adequate yearly progress as defined in the
State’s plan, as such plan was in effect on the day
preceding the date of such enactment.
‘‘(4) TARGETED
ASSISTANCE
SCHOOLS.—For
purposes of targeted assistance schools in a local
educational agency, a State educational agency may
choose to review the progress of only the students in
such schools who are served or are eligible for serv-
ices under this part.
‘‘(5) OPPORTUNITY TO REVIEW AND PRESENT
EVIDENCE.—
‘‘(A) REVIEW.—Before identifying a local
educational agency for improvement under
paragraph (2), a State educational agency shall
provide the local educational agency with an op-
portunity to review the local educational agency
data, including academic assessment data, on
which that proposed identification is based.
‘‘(B) SUPPORTING EVIDENCE.—If the local
educational agency believes that the proposed
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identification is in error for statistical or other
substantive reasons, it may provide supporting
evidence to the State educational agency, which
such agency shall consider before making a
final determination not later than 30 days after
the State educational agency provides the local
educational agency with the opportunity to re-
view such data under subparagraph (A).
‘‘(6) NOTIFICATION TO PARENTS.—The State
educational agency shall promptly notify parents in
a format, and to the extent practicable in a language
they can understand, of each student enrolled in a
school in a local educational agency identified for
improvement, of the results of the review under
paragraph (1) and, if the agency is identified as in
need of improvement, the reasons for that identifica-
tion and how parents can participate in upgrading
the quality of the local educational agency.
‘‘(7) LOCAL
EDUCATIONAL
AGENCY
REVI-
SIONS.—
‘‘(A) PLAN.—Each local educational agen-
cy identified under paragraph (2) shall, not
later than 3 months after being so identified,
develop or revise a local educational agency
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plan, in consultation with parents, school staff,
and others. Such plan shall—
‘‘(i) incorporate scientifically based re-
search strategies that strengthen the core
academic program in the local educational
agency;
‘‘(ii) identify specific goals and objec-
tives the local educational agency will un-
dertake to make adequate yearly progress
and which—
‘‘(I) have the greatest likelihood
of improving the performance of par-
ticipating children in meeting the
State’s student academic achievement
standards;
‘‘(II) address the professional de-
velopment needs of staff; and
‘‘(III) include specific measurable
achievement goals and targets for
each of the groups of students identi-
fied in the disaggregated data pursu-
ant to section 1111(b)(2)(C)(iii)(I)
and (II);
‘‘(iii) incorporate, as appropriate, ex-
tended learning time for students such as
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before school, after school, during the sum-
mer, and extension of the school year.
‘‘(iv) identify how the local edu-
cational agency will provide written notifi-
cation to parents in a format, and to the
extent practicable in a language, that they
can understand, pursuant to paragraph
(6); and
‘‘(v) specify the responsibilities of the
State educational agency and the local edu-
cational agency under the plan.
‘‘(B) IMPLEMENTATION.—The local edu-
cational agency shall implement its plan or re-
vised plan expeditiously, but not later than the
beginning of the school year after which the
school has been identified for improvement.
‘‘(8) STATE RESPONSIBILITY.—
‘‘(A) IN GENERAL.—For each local edu-
cational agency identified under paragraph (2),
the State shall provide technical or other assist-
ance, if requested, as authorized under section
1117, to better enable the local educational
agency—
‘‘(i) to develop and implement its re-
vised plan as approved by the State edu-
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cational agency consistent with the require-
ments of this section; and
‘‘(ii) to work with schools needing im-
provement.
‘‘(B) TECHNICAL ASSISTANCE.—Technical
assistance provided under this section by the
State educational agency or an entity author-
ized by such agency shall be based upon sci-
entifically based research.
‘‘(9) CORRECTIVE
ACTION.—In order to help
students served under this part meet challenging
State academic standards, each State shall imple-
ment a system of corrective action in accordance
with the following:
‘‘(A) IN GENERAL.—After providing tech-
nical assistance under paragraph (8) and sub-
ject to subparagraph (D), the State—
‘‘(i) may take corrective action at any
time with respect to a local educational
agency that has been identified under
paragraph (2);
‘‘(ii) shall take corrective action with
respect to any local educational agency
that 
fails 
to 
make 
adequate 
yearly
progress, as defined by the State, after the
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end of the second year following its identi-
fication under paragraph (2); and
‘‘(iii) shall continue to provide tech-
nical assistance while instituting any cor-
rective action under clause (i) or (ii).
‘‘(B) DEFINITION.—As used in this para-
graph, the term ‘corrective action’ means ac-
tion, consistent with State law, that—
‘‘(i) substantially and directly re-
sponds to the consistent academic failure
that caused the State to take such action
and to any underlying staffing, curricular,
or other problems in the school; and
‘‘(ii) is designed to meet the goal of
having all students served under this part
perform at the proficient and advanced
performance levels.
‘‘(C) CERTAIN LOCAL EDUCATIONAL AGEN-
CIES.—In the case of a local educational agency
described in this paragraph, the State edu-
cational agency shall take not less than one of
the following corrective actions:
‘‘(i) Withhold funds from the local
educational agency.
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‘‘(ii) Replace the school district per-
sonnel who are relevant to the failure to
make adequate year progress.
‘‘(iii) Remove particular schools from
the jurisdiction of the local educational
agency and establish alternative arrange-
ments for public governance and super-
vision of such schools.
‘‘(iv) Appoint, through the State edu-
cational agency, a receiver or trustee to ad-
minister the affairs of the local educational
agency in place of the superintendent and
school board.
‘‘(v) Abolish or restructure the local
educational agency.
‘‘(vi) Authorize students to transfer
from a school operated by a local edu-
cational agency to a higher performing
public school operated by another local
educational agency, or to a public charter
school and provide such students transpor-
tation (or the costs of transportation to
such schools), in conjunction with not less
than one additional action described under
this paragraph.
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‘‘(D) HEARING.—Prior to implementing
any corrective action, the State educational
agency shall provide due process and a hearing
to the affected local educational agency, if State
law provides for such process and hearing.
‘‘(E) 
PUBLICATION.—The 
State 
edu-
cational agency shall publish, and disseminate
to parents and the public any corrective action
it takes under this paragraph through such
means as the Internet, the media, and public
agencies.
‘‘(F) DELAY.—A local educational agency
may delay, for a period not to exceed 1 year,
implementation of corrective action if the fail-
ure to make adequate yearly progress was justi-
fied due to exceptional or uncontrollable cir-
cumstances such as a natural disaster or a pre-
cipitous and unforeseen decline in the financial
resources of the local educational agency or
school.
‘‘(10) SPECIAL
RULE.—A local educational
agency, that, for at least 2 of the 3 years following
identification under paragraph (2), makes adequate
yearly progress shall no longer be identified for im-
provement.
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‘‘(d) PARENTAL OPTIONS.—
‘‘(1) In any case described in subsection
(b)(7)(A)(ii)(II), the local educational agency shall
permit the parents of each eligible child to obtain
supplemental educational services for such child
from a provider, as approved by the State edu-
cational agency in accordance with reasonable cri-
teria that it shall adopt. Such criteria shall require
a provider to demonstrate a record of effectiveness,
or the potential of effectiveness, in providing supple-
mental instructional services to children, consistent
with the instructional program of the local edu-
cational agency and the academic standards de-
scribed under section 1111.
‘‘(2) SELECTION.—In obtaining services under
this paragraph, a parent shall select a provider that
meets the criteria described under paragraph (1).
The local educational agency shall provide assist-
ance, upon request, to parents in the selection of a
provider to provide supplemental instructional serv-
ices.
‘‘(3) CONTRACT.—In the case of the selection of
a provider under paragraph (2) by a parent, the
local educational agency shall enter into a contract
with such provider. Such contract shall—
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‘‘(A) require the local educational agency
to develop, with parents (and the provider they
have chosen), a statement of specific perform-
ance goals for the student, how the student’s
progress will be measured, and a timetable for
improving achievement;
‘‘(B) provide for the termination of such
contract with a provider that is unable to meet
such goals and timetables; and
‘‘(C) contain provisions with respect to the
making of payments to the provider by the local
educational agency.
‘‘(4) ADDITIONAL LOCAL EDUCATIONAL AGEN-
CY
RESPONSIBILITIES.—Each 
local 
educational
agency subject to this paragraph shall provide an-
nual notice to parents (if feasible, in the parents’
language) of the availability of services under this
paragraph and the eligible providers of those serv-
ices.
‘‘(5) STATE
EDUCATIONAL
AGENCY
RESPON-
SIBILITIES.—Each State educational agency shall—
‘‘(A) consult with local educational agen-
cies and promote maximum participation by
providers to ensure, to the extent practicable,
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that parents have as many choices of those pro-
viders as possible;
‘‘(B) develop criteria consistent with para-
graph (6) and apply such criteria to potential
providers to determine which, based on the
quality and effectiveness of their services, are
eligible to participate;
‘‘(C) maintain an updated list of approved
providers across the State, from which parents
may select;
‘‘(D) develop and implement standards and
techniques for monitoring the quality and effec-
tiveness of the services offered by providers,
and withdraw approval from those that fail to
meet those standards for two consecutive years;
‘‘(E) provide annual notice to potential
providers of supplemental services of the oppor-
tunity to provide services under this paragraph
and of the applicable procedures for obtaining
approval from the State educational agency to
be a provider of those services.
‘‘(6) CRITERIA FOR PROVIDERS.—In order for a
provider to be included on the State list under para-
graph (5)(c), a provider shall agree to the following:
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‘‘(A) Provide parents of children receiving
supplemental instructional services under this
paragraph and the appropriate local educational
agency with information on the progress of
their children in increasing achievement, in a
format and, to the extent practicable, a lan-
guage such parents can understand.
‘‘(B) Ensure that instruction and content
used by the provider is consistent with the in-
struction and content used by the local edu-
cational agency and State.
‘‘(C) Require a provider to meet all appli-
cable Federal, State, and local health, safety
and civil rights laws.
‘‘(D) Ensure that all instruction and con-
tent under this paragraph shall be secular, neu-
tral, and nonideological.
‘‘(7) COSTS.—
‘‘(A) The costs of administration of this
paragraph and the costs of providing such sup-
plemental instructional services shall be limited
to the total of 40 percent of the per child allo-
cation under subpart 2 of each school identified
under subsection (b)(7)(A)(ii)(II);
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‘‘(B) ADDITIONAL
FUNDS.—If the allocation
under subparagraph (A) is insufficient to pro-
vide services for all eligible students that have
selected a provider, a local educational agency
may use funds under subpart 1 of part A of
title IV to pay for additional costs;
‘‘(C) TRANSPORTATION
COSTS.—A local
educational agency may use up to 15 percent of
its allocation under subpart 2 for transportation
costs.
‘‘(8) 
FUNDS
PROVIDED
BY
STATE
EDU-
CATIONAL AGENCY.—Each State educational agency
may use funds that it reserves under this part, and
subpart 1 of part A of title IV to provide local edu-
cational agencies that do not have sufficient funds to
provide services under this paragraph for all eligible
students requesting such services.
‘‘(9) DURATION.—The local educational agency
shall continue to provide supplemental instructional
services to enrolled children receiving such services
under this paragraph until the child completes the
grade corresponding to the highest grade offered at
the public school which was identified for restruc-
turing under subsection (b)(7), or until such school,
so long as the child attends such school, is not iden-
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tified under subsection (b)(1), (b)(6), or (b)(7),
whichever comes earlier.
‘‘(10) DEFINITIONS.—As used in this sub-
section, the term—
‘‘(A) ‘eligible child’ means a child from a
low-income family, as determined by the local
educational agency for purposes of allocating
funds to schools under section 1113(c)(1);
‘‘(B) ‘supplemental instructional services’
means tutoring and other supplemental aca-
demic enrichment services that are in addition
to instruction provided during the school day
and are specifically designed to increase the
academic achievement of eligible children on the
academic assessments required under section
1111; and
‘‘(C) ‘provider’ means a non-profit or a
for-profit entity which has a demonstrated
record of effectiveness or the potential of
effectiveness—
‘‘(i) in providing supplemental instruc-
tional services that are consistent with the
instructional program of the local edu-
cational agency and the academic stand-
ards described under section 1111; and
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‘‘(ii) in sound fiscal management;
‘‘(D) ‘per child allocation’ means an
amount that is equal to at least—
‘‘(i) the amount of the school’s alloca-
tion under subpart 2; divided by
‘‘(ii) the number of children from low-
income families enrolled in the school.
‘‘(11) PROHIBITION.—Nothing contained in this
subsection shall permit the making of any payment
for religious worship or instruction.
‘‘(e) TREATMENT OF BUREAU FUNDED SCHOOLS.—
For the purposes of applying the requirements of sub-
section (b) to schools funded by the Bureau of Indian Af-
fairs, the Secretary of Interior shall implement such sub-
section in a manner that treats the appropriate tribe or
tribal organization as a local educational agency for the
purpose of implementing school improvement, corrective
action and restructuring actions. If such tribe or tribal
organization does not take the appropriate action required
under subsection (b), the Secretary shall take such appro-
priate action as required under subsection (b) after final
notice to such tribe or tribal organization.’’.
SEC. 107. STATE ASSISTANCE FOR SCHOOL SUPPORT AND
IMPROVEMENT.
Section 1117 is amended to read as follows:
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‘‘SEC. 1117. STATE ASSISTANCE FOR SCHOOL SUPPORT AND
IMPROVEMENT.
‘‘(a) SYSTEM FOR SUPPORT.—Each State shall es-
tablish a statewide system of intensive and sustained sup-
port and improvement for local educational agencies and
schools receiving funds under this part, in order to in-
crease the opportunity for all students in those agencies
and schools to meet the State’s academic content stand-
ards and student academic achievement standards.
‘‘(b) PRIORITIES.—In carrying out this section, a
State shall—
‘‘(1) first, provide support and assistance to
local educational agencies subject to corrective action
under section 1116 and assist schools, in accordance
with section 1116(b)(11), for which a local edu-
cational agency has failed to carry out its respon-
sibilities under paragraphs (7) and (8) of section
1116(b);
‘‘(2) second, provide support and assistance to
other local educational agencies identified as in need
of improvement under section 1116(b); and
‘‘(3) third, provide support and assistance to
other local educational agencies and schools partici-
pating under this part that need that support and
assistance in order to achieve the purpose of this
part.
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‘‘(c) APPROACHES.—In order to achieve the purpose
described in subsection (a), each such system shall provide
technical assistance and support through such approaches
as—
‘‘(1) school support teams, composed of individ-
uals who are knowledgeable about scientifically
based research and practice on teaching and learn-
ing, particularly about strategies for improving edu-
cational results for low-achieving children; and
‘‘(2) the designation and use of ‘‘Distinguished
Educators’’, chosen from schools served under this
part that have been especially successful in improv-
ing academic achievement.
‘‘(d) FUNDS.—Each State—
‘‘(1) shall use funds reserved under section
1003(a); and
‘‘(2) may use State administrative funds au-
thorized under section 1002(i) for such purpose to
establish a Statewide system of support.
‘‘(e) ALTERNATIVES.—The State may devise addi-
tional approaches to providing the assistance described in
paragraphs (1) and (2) of subsection (c), such as pro-
viding assistance through institutions of higher education
and educational service agencies or other local consortia,
and private providers of scientifically based technical as-
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sistance and the State may seek approval from the Sec-
retary to use funds made available under section 1002(j)
for such approaches as part of the State plan.’’.
SEC. 108. ACADEMIC ACHIEVEMENT AWARDS PROGRAM.
Sections 1118 through 1127 are amended to read as
follows:
‘‘SEC. 1117A. ACADEMIC ACHIEVEMENT AWARDS PROGRAM.
‘‘(a) ESTABLISHMENT OF ACADEMIC ACHIEVEMENT
AWARDS PROGRAM.—
‘‘(1) IN
GENERAL.—Each State receiving a
grant under this part may establish a program for
making academic achievement awards to recognize
and financially reward schools served under this part
that have—
‘‘(A) significantly closed the achievement
gap between the groups of students defined in
section 1111(b)(2); or
‘‘(B) 
exceeded 
their 
adequate 
yearly
progress 
goals, 
consistent 
with 
section
1111(b)(2), for 2 or more consecutive years.
‘‘(2) AWARDS TO TEACHERS.—A State program
under paragraph (1) may also recognize and provide
financial awards to teachers teaching in a school de-
scribed in such paragraph whose students consist-
ently make significant gains in academic achieve-
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ment in the areas in which the teacher provides in-
struction.
‘‘(b) FUNDING.—
‘‘(1) RESERVATION OF FUNDS BY STATE.—For
the purpose of carrying out this section, each State
receiving a grant under this part may reserve, from
the amount (if any) by which the funds received by
the State under this part for a fiscal year exceed the
amount received by the State under this part for the
preceding fiscal year, not more than 30 percent of
such excess amount.
‘‘(2) USE WITHIN 3 YEARS.—Notwithstanding
any other provision of law, the amount reserved
under paragraph (1) by a State for each fiscal year
shall remain available to the State until expended
for a period not exceeding 3 years.
‘‘(3) SPECIAL ALLOCATION RULE FOR SCHOOLS
IN HIGH-POVERTY AREAS.—
‘‘(A) IN GENERAL.—Each State receiving
a grant under this part shall distribute at least
75 percent of the amount reserved under para-
graph (1) for each fiscal year to schools de-
scribed in subparagraph (B), or to teachers
teaching in such schools.
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‘‘(B) SCHOOL DESCRIBED.—A school de-
scribed in subparagraph (A) is a school whose
student population is in the highest quartile of
schools statewide in terms of the percentage of
children from low income families.
‘‘SEC. 1118. PARENTAL INVOLVEMENT.
‘‘(a) LOCAL EDUCATIONAL AGENCY POLICY.—
‘‘(1) IN GENERAL.—A local educational agency
may receive funds under this part only if such agen-
cy implements programs, activities, and procedures
for the involvement of parents in programs assisted
under this part consistent with the provisions of this
section. Such activities shall be planned and imple-
mented with meaningful consultation with parents of
participating children.
‘‘(2) WRITTEN POLICY.—Each local educational
agency that receives funds under this part shall de-
velop jointly with, agree upon with, and distribute
to, parents of participating children a written parent
involvement policy that is incorporated into the local
educational agency’s plan developed under section
1112, establishes the expectations for parent involve-
ment, and describes how the local educational agen-
cy will—
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‘‘(A) involve parents in the joint develop-
ment of the plan under section 1112, and the
process of school review and improvement under
section 1116;
‘‘(B) provide the coordination, technical as-
sistance, and other support necessary to assist
participating schools in planning and imple-
menting effective parent involvement;
‘‘(C) build the schools’ and parents’ capac-
ity for strong parent involvement as described
in subsection (e);
‘‘(D) coordinate and integrate parental in-
volvement strategies under this part with paren-
tal involvement strategies under other pro-
grams, such as Head Start, Early Reading
First, Reading First, Even Start, the Parents
as Teachers Program, the Home Instruction
Program for Preschool Youngsters, and State-
run preschool programs;
‘‘(E) conduct, with the involvement of par-
ents, an annual evaluation of the content and
effectiveness of the parental involvement policy
in improving the academic quality of the schools
served under this part; and
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‘‘(F) involve parents in the activities of the
schools served under this part.
‘‘(3) RESERVATION.—
‘‘(A) IN GENERAL.—Each local educational
agency shall reserve not less than 1 percent of
such agency’s allocation under this part to
carry out this section, including family literacy
and parenting skills, except that this paragraph
shall not apply if 1 percent of such agency’s al-
location under this part (other than funds allo-
cated under section 1002(g) for the fiscal year
for which the determination is made is $5,000
or less.
‘‘(B) PARENTAL INPUT.—Parents of chil-
dren receiving services under this part shall be
involved in the decisions regarding how funds
reserved under subparagraph (A) are allotted
for parental involvement activities.
‘‘(C) DISTRIBUTION OF FUNDS.—Not less
than 95 percent of the funds reserved under
subparagraph (A) shall be distributed to schools
served under this part.
‘‘(b) SCHOOL PARENTAL INVOLVEMENT POLICY.—
‘‘(1) IN GENERAL.—Each school served under
this part shall jointly develop with, and distribute to,
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parents of participating children a written parental
involvement policy, agreed upon by such parents,
that shall describe the means for carrying out the
requirements of subsections (c) through (f). Parents
shall be notified of the policy in a format, and to the
extent practicable in a language they can under-
stand. Such policy shall be updated periodically to
meet the changing needs of parents and the school.
‘‘(2) SPECIAL RULE.—If the school has a pa-
rental involvement policy that applies to all parents,
such school may amend that policy, if necessary, to
meet the requirements of this subsection.
‘‘(3) AMENDMENT.—If the local educational
agency has a school district-level parental involve-
ment policy that applies to all parents, such agency
may amend that policy, if necessary, to meet the re-
quirements of this subsection.
‘‘(4) PARENTAL COMMENTS.—If the plan under
section 1112 is not satisfactory to the parents of
participating children, the local educational agency
shall submit any parent comments with such plan
when such local educational agency submits the plan
to the State.
‘‘(c) POLICY INVOLVEMENT.—Each school served
under this part shall—
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‘‘(1) convene an annual meeting, at a conven-
ient time, to which all parents of participating chil-
dren shall be invited and encouraged to attend, to
inform parents of their school’s participation under
this part and to explain this part, its requirements,
and their right to be involved;
‘‘(2) offer a flexible number of meetings, such
as meetings in the morning or evening, and may
provide, with funds provided under this part, trans-
portation, child care, or home visits, as such services
relate to parental involvement;
‘‘(3) involve parents, in an organized, ongoing,
and timely way, in the planning, review, and im-
provement of programs under this part, including
the school parental involvement policy and the joint
development of the schoolwide program plan under
section 1114(c)(2) and (c)(3), except that if a school
has in place a process for involving parents in the
joint planning and design of its programs, the school
may use that process, if such process includes an
adequate representation of parents of participating
children;
‘‘(4) provide parents of participating children—
‘‘(A) timely information about programs
under this part;
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‘‘(B) a description and explanation of the
curriculum in use at the school, the forms of
academic assessment used to measure student
progress, and the proficiency levels students are
expected to meet; and
‘‘(5) if the schoolwide program plan under sec-
tion 1114(c)(2) and (c)(3) is not satisfactory to the
parents of participating children, submit any parent
comments on the plan when the school makes the
plan available to the local educational agency.
‘‘(d) SHARED RESPONSIBILITIES
FOR HIGH STU-
DENT PERFORMANCE.—As a component of the school-
level parental involvement policy developed under sub-
section (b), each school served under this part shall agree
with parents of children served under this part regarding
how parents, the entire school staff, and students will
share the responsibility for improved student achievement
and the means by which the school and parents will build
and develop a partnership to help children achieve the
State’s high academic standards.
‘‘(e) BUILDING CAPACITY FOR INVOLVEMENT.—To
ensure effective involvement of parents and to support a
partnership among the school, parents, and the commu-
nity to improve student achievement, each school and local
educational agency—
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‘‘(1) shall provide assistance to participating
parents in such areas as understanding the State’s
academic content standards and State student aca-
demic achievement standards, State and local aca-
demic assessments, the requirements of this part,
and how to monitor a child’s progress and work with
educators to improve the performance of their chil-
dren;
‘‘(2) shall provide materials and training to
help parents to work with their children to improve
their children’s achievement;
‘‘(3) shall educate teachers, pupil services per-
sonnel, principals and other staff, with the assist-
ance of parents, in the value and utility of contribu-
tions of parents, and in how to reach out to, commu-
nicate with, and work with parents as equal part-
ners, implement and coordinate parent programs,
and build ties between parents and the school;
‘‘(4) shall coordinate and integrate parent in-
volvement programs and activities with Head Start,
Reading First, Early Reading First, Even Start, the
Home Instruction Programs for Preschool Young-
sters, the Parents as Teachers Program, and public
preschool programs and other programs, to the ex-
tent feasible and appropriate;
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‘‘(5) shall ensure, to the extent possible, that
information related to school and parent programs,
meetings, and other activities is sent to the parents
of participating children in the language used by
such parents;
‘‘(6) may involve parents in the development of
training for teachers, principals, and other educators
to improve the effectiveness of such training in im-
proving instruction and services to the children of
such parents in a format, and to the extent prac-
ticable, in a language the parent can understand;
‘‘(7) may provide necessary literacy training
from funds received under this part if the local edu-
cational agency has exhausted all other reasonably
available sources of funding for such activities;
‘‘(8) may pay reasonable and necessary ex-
penses associated with local parental involvement ac-
tivities, including transportation and child care
costs, to enable parents to participate in school-re-
lated meetings and training sessions;
‘‘(9) may train parents to enhance the involve-
ment of other parents;
‘‘(10) may arrange for teachers or other edu-
cators, who work directly with participating children,
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to conduct in-home conferences with parents who are
unable to attend such conferences at school;
‘‘(11) may adopt and implement model ap-
proaches to improving parental involvement;
‘‘(12) may establish a districtwide parent advi-
sory council to provide advice on all matters related
to parental involvement in programs supported
under this part; and
‘‘(13) may develop appropriate roles for com-
munity-based organizations and businesses in parent
involvement activities.
‘‘(f) ACCESSIBILITY.—In carrying out the parental
involvement requirements of this part, local educational
agencies and schools, to the extent practicable, shall pro-
vide full opportunities for the participation of parents with
limited English proficiency or with disabilities and parents
of migratory children, including providing information and
school reports required under section 1111 in a format,
and to the extent practicable, in a language such parents
understand.
‘‘SEC. 1119. QUALIFICATIONS FOR TEACHERS AND PARA-
PROFESSIONALS.
‘‘(a) TEACHERS.—
‘‘(1) IN
GENERAL.—Each local educational
agency receiving assistance under this part shall en-
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sure that all teachers hired on or after the effective
date of the No Child Left Behind Act of 2001 and
teaching in a program supported with funds under
this part are fully qualified.
‘‘(2) PLAN.—Each State receiving assistance
under this part shall develop and submit to the Sec-
retary a plan to ensure that all teachers teaching
within the State are fully qualified not later than
December 31, 2005. Such plan shall include an as-
surance that the State will require each local edu-
cational agency and school receiving funds under
this part publicly to report their annual progress on
the agency’s and the school’s performance in in-
creasing the percentage of classes in core academic
areas taught by fully qualified teachers.
‘‘(b) NEW PARAPROFESSIONALS.—
‘‘(1) IN
GENERAL.—Each local educational
agency receiving assistance under this part shall en-
sure that all paraprofessionals hired 1 year or more
after the effective date of the No Child Left Behind
Act of 2001 and working in a program supported
with funds under this part shall—
‘‘(A) have completed at least 2 years of
study at an institution of higher education;
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‘‘(B) have obtained an associate’s (or high-
er) degree; or
‘‘(C) have met a rigorous standard of qual-
ity that demonstrates, through a formal aca-
demic assessment—
‘‘(i) knowledge of, and the ability to
assist in instructing reading, writing, and
math; or
‘‘(ii) knowledge of, and the ability to
assist in instructing reading readiness,
writing readiness, and math readiness, as
appropriate.
‘‘(2) CLARIFICATION.—For purposes of para-
graph (1)(C), the receipt of a high school diploma
(or its recognized equivalent) shall be necessary but
not by itself sufficient to satisfy the requirements of
such paragraph.
‘‘(c) EXISTING PARAPROFESSIONALS.—Each local
educational agency receiving assistance under this part
shall ensure that all paraprofessionals hired before the
date that is 1 year after the effective date of the No Child
Left Behind Act of 2001 and working in a program sup-
ported with funds under this part shall, not later than 3
years after such effective date, satisfy the requirements
of subsection (b).
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‘‘(d) EXCEPTIONS FOR TRANSLATION AND PAREN-
TAL INVOLVEMENT ACTIVITIES.—Subsections (b) and (c)
shall not apply to a paraprofessional—
‘‘(1) who is proficient in English and a lan-
guage other than English and who provides services
primarily to enhance the participation of children in
programs under this part by acting as a translator;
or
‘‘(2) whose duties consist solely of conducting
parental involvement activities consistent with sec-
tion 1118.
‘‘(e) GENERAL
REQUIREMENT
FOR
ALL
PARA-
PROFESSIONALS.—Each local educational agency receiving
assistance under this part shall ensure that all paraprofes-
sionals working in a program supported with funds under
this part, regardless of the paraprofessional’s hiring date,
possess a high school diploma or its recognized equivalent.
‘‘(f) DUTIES OF PARAPROFESSIONALS.—
‘‘(1) IN
GENERAL.—Each local educational
agency receiving assistance under this part shall en-
sure that a paraprofessional working in a program
supported with funds under this part is not assigned
a duty inconsistent with this subsection.
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‘‘(2) RESPONSIBILITIES
PARAPROFESSIONALS
MAY BE ASSIGNED.—A paraprofessional described in
paragraph (1) may only be assigned—
‘‘(A) to provide one-on-one tutoring for eli-
gible students, if the tutoring is scheduled at a
time when a student would not otherwise re-
ceive instruction from a teacher;
‘‘(B) to assist with classroom management,
such as organizing instructional and other ma-
terials;
‘‘(C) to provide assistance in a computer
laboratory;
‘‘(D) to conduct parental involvement ac-
tivities;
‘‘(E) to provide support in a library or
media center;
‘‘(F) to act as a translator; or
‘‘(G) to provide instructional services to
students.
‘‘(3) ADDITIONAL LIMITATIONS.—A paraprofes-
sional described in paragraph (1)—
‘‘(A) may not provide any instructional
service to a student unless the paraprofessional
is working under the direct supervision of a
fully qualified teacher; and
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‘‘(B) may not provide instructional services
to students in the area of reading, writing, or
math unless the paraprofessional has dem-
onstrated, through a State or local academic as-
sessment, the ability to effectively carry out
reading, writing, or math instruction.
‘‘(g) USE OF FUNDS.—
‘‘(1) PROFESSIONAL
DEVELOPMENT.—A local
educational agency receiving funds under this part
may use such funds to support ongoing training and
professional development to assist teachers and
paraprofessionals in satisfying the requirements of
this section.
‘‘(2) LIMITATION ON USE OF FUNDS FOR PARA-
PROFESSIONALS.—
‘‘(A) IN
GENERAL.—Beginning on and
after the effective date of the No Child Left Be-
hind Act of 2001, a local educational agency
may not use funds received under this part to
fund any paraprofessional hired after such date
unless the hiring is to fill a vacancy created by
the departure of another paraprofessional fund-
ed under this part and such new paraprofes-
sional satisfies the requirements of subsection
(b), except as provided in subsection (d).
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‘‘(B) 
EXCEPTION.—Subparagraph 
(A)
shall not apply for a fiscal year to a local edu-
cational agency that can demonstrate to the
State that all teachers under the jurisdiction of
the agency are fully qualified.
‘‘(h) VERIFICATION OF COMPLIANCE.—
‘‘(1) IN
GENERAL.—In verifying compliance
with this section, each local educational agency at a
minimum shall require that the principal of each
school operating a program under section 1114 or
1115 annually attest in writing as to whether such
school is in compliance with the requirements of this
section.
‘‘(2) AVAILABILITY OF INFORMATION.—Copies
of attestations under paragraph (1)—
‘‘(A) shall be maintained at each school op-
erating a program under section 1114 or 1115
and at the main office of the local educational
agency; and
‘‘(B) shall be available to any member of
the general public upon request.
‘‘SEC. 1119A. PROFESSIONAL DEVELOPMENT.
‘‘(a) PURPOSE.—The purpose of this section is to as-
sist each local educational agency receiving assistance
under this part in increasing the academic achievement
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of children served under this part through improved teach-
er quality.
‘‘(b) PROFESSIONAL DEVELOPMENT ACTIVITIES.—
Professional development activities under this section
shall—
‘‘(1) give teachers, principals, and administra-
tors the knowledge and skills to provide students
with the opportunity to meet challenging State or
local academic content standards and student aca-
demic achievement standards;
‘‘(2) support the recruiting, hiring, and training
of fully qualified teachers, including teachers fully
qualified through State and local alternative routes;
‘‘(3) advance teacher understanding of effective
instructional strategies based on scientifically based
research for improving student achievement, at a
minimum, in reading or language arts and mathe-
matics;
‘‘(4) be directly related to the curriculum and
content areas in which the teacher provides instruc-
tion, except this requirement does not apply to ac-
tivities that instruct in methods of improving stu-
dent behavior;
‘‘(5) be designed to enhance the ability of a
teacher to understand and use the State’s academic
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standards for the subject area in which the teacher
provides instruction;
‘‘(6) be tied to scientifically based research
demonstrating the effectiveness of such professional
development activities or programs in increasing stu-
dent achievement or substantially increasing the
knowledge and teaching skills of teachers;
‘‘(7) be of sufficient intensity and duration (not
to include 1-day or short-term workshops and con-
ferences) to have a positive and lasting impact on
the teacher’s performance in the classroom;
‘‘(8) be developed with extensive participation
of teachers, principals, parents, and administrators
of schools to be served under this part;
‘‘(9) be designed to give teachers of limited
English proficient children, other teachers, and in-
structional staff the knowledge and skills to provide
instruction and appropriate language and academic
support services to such children, including the ap-
propriate use of curriculum and academic assess-
ments;
‘‘(10) to the extent appropriate, provide train-
ing for teachers in the use of technology so that
technology and its applications are effectively used
in the classroom to improve teaching and learning in
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the curriculum and academic content areas in which
the teachers provide instruction; and
‘‘(11) as a whole, be regularly evaluated for
their impact on increased teacher effectiveness and
improved student achievement, with the findings of
such evaluations used to improve the quality of pro-
fessional development.
‘‘(c) ADDITIONAL
PROFESSIONAL
DEVELOPMENT
ACTIVITIES.—Such professional development activities
may include—
‘‘(1) instruction in the use of data and aca-
demic assessments to inform and instruct classroom
practice;
‘‘(2) instruction in ways that teachers, prin-
cipals, pupil services personnel, and school adminis-
trators may work more effectively with parents;
‘‘(3) the forming of partnerships with institu-
tions of higher education to establish school-based
teacher training programs that provide prospective
teachers and novice teachers with an opportunity to
work under the guidance of experienced teachers and
college faculty;
‘‘(4) the creation of career ladder programs for
paraprofessionals (assisting teachers under this
part) to obtain the education necessary for such
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paraprofessionals to become licensed and certified
teachers; and
‘‘(5) instruction in ways to teach special needs
children.
‘‘(d) PROGRAM PARTICIPATION.—Each local edu-
cational agency receiving assistance under this part may
design professional development programs so that—
‘‘(1) all school staff in schools participating in
a schoolwide program under section 1114 can par-
ticipate in professional development activities; and
‘‘(2) all school staff in targeted assistance
schools may participate in professional development
activities if such participation will result in better
addressing the needs of students served under this
part.
‘‘(e) PARENTAL PARTICIPATION.—Parents may par-
ticipate in professional development activities under this
part if the school determines that parental participation
is appropriate.
‘‘(f) CONSORTIA.—In carrying out such professional
development programs, local educational agencies may
provide services through consortia arrangements with
other local educational agencies, educational service agen-
cies or other local consortia, institutions of higher edu-
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cation, or other public or private institutions or organiza-
tions.
‘‘(g) CONSOLIDATION OF FUNDS.—Funds provided
under this part that are used for professional development
purposes may be consolidated with funds provided under
title II of this Act and other sources.
‘‘(h) SPECIAL RULE.—No State educational agency
shall require a school or a local educational agency to ex-
pend a specific amount of funds for professional develop-
ment activities under this part, except that this paragraph
shall not apply with respect to requirements under section
1116(b)(3)(A)(iii).
‘‘SEC. 1120. PARTICIPATION OF CHILDREN ENROLLED IN
PRIVATE SCHOOLS.
‘‘(a) GENERAL REQUIREMENT.—
‘‘(1) IN
GENERAL.—To the extent consistent
with the number of eligible children identified under
section 1115(b) in a local educational agency who
are enrolled in private elementary and secondary
schools, a local educational agency shall, after timely
and meaningful consultation with appropriate pri-
vate school officials, provide such children, on an eq-
uitable basis, special educational services or other
benefits under this part (such as dual enrollment,
educational radio and television, computer equip-
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ment and materials, other technology, and mobile
educational services and equipment) that address
their needs, and shall ensure that teachers and fami-
lies of these students participate, on an equitable
basis, in services and activities developed pursuant
to sections 1118 and 1119A.
‘‘(2) SECULAR, NEUTRAL, NONIDEOLOGICAL.—
Such educational services or other benefits, including
materials and equipment, shall be secular, neutral,
and nonideological.
‘‘(3) EQUITY.—Educational services and other
benefits for such private school children shall be eq-
uitable in comparison to services and other benefits
for public school children participating under this
part, and shall be provided in a timely manner.
‘‘(4) EXPENDITURES.—Expenditures for edu-
cational services and other benefits to eligible private
school children shall be equal to the proportion of
funds allocated to participating school attendance
areas based on the number of children from low-in-
come families who attend private schools, which the
local educational agency may determine each year or
every 2 years.
‘‘(5) PROVISION OF SERVICES.—The local edu-
cational agency shall provide services under this sec-
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tion directly or through contracts with public and
private agencies, organizations, and institutions.
‘‘(b) CONSULTATION.—
‘‘(1) IN
GENERAL.—To ensure timely and
meaningful consultation, a local educational agency
shall consult with appropriate private school officials
during the design and development of such agency’s
programs under this part, on issues such as—
‘‘(A) how the children’s needs will be iden-
tified;
‘‘(B) what services will be offered;
‘‘(C) how, where, and by whom the services
will be provided;
‘‘(D) how the services will be academically
assessed and how the results of that assessment
will be used to improve those services;
‘‘(E) the size and scope of the equitable
services to be provided to the eligible private
school children, and the amount of funds gen-
erated by low-income private school children in
each participating attendance area;
‘‘(F) the method or sources of data that
are used under subsection (a)(4) and section
1113(c)(2) to determine the number of children
from low-income families in participating school
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attendance areas who attend private schools;
and
‘‘(G) how and when the agency will make
decisions about the delivery of services to such
children, including a thorough consideration
and analysis of the views of the private school
officials on the provision of contract services
through potential third party providers.
If the local educational agency disagrees with the
views of the private school officials on the provision
of services, through a contract, the local educational
agency shall provide in writing to such private school
officials, an analysis of the reasons why the local
educational agency has chosen not to use a con-
tractor.
‘‘(2) TIMING.—Such consultation shall include
meetings of agency and private school officials and
shall occur before the local educational agency
makes any decision that affects the opportunities of
eligible private school children to participate in pro-
grams under this part. Such meetings shall continue
throughout implementation and assessment of serv-
ices provided under this section.
‘‘(3) DISCUSSION.—Such consultation shall in-
clude a discussion of service delivery mechanisms a
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local educational agency can use to provide equitable
services to eligible private school children.
‘‘(4) DOCUMENTATION.—Each local educational
agency shall maintain in its records and provide to
the State educational agency a written affirmation
signed by officials of each participating private
school that the consultation required by this section
has occurred.
‘‘(5) COMPLIANCE.—Private school officials
shall have the right to appeal to the State as to
whether the consultation provided for in this section
was meaningful and timely, and that due consider-
ation was given to the views of private school offi-
cials. If the private school wishes to appeal, the basis
of the claim of noncompliance with this section by
a local educational agency shall be provided to the
State, and the local educational agency shall forward
the documentation provided in subsection (b)(4) to
the State.
‘‘(c) PUBLIC CONTROL OF FUNDS.—
‘‘(1) IN GENERAL.—The control of funds pro-
vided under this part, and title to materials, equip-
ment, and property purchased with such funds, shall
be in a public agency, and a public agency shall ad-
minister such funds and property.
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‘‘(2) PROVISION OF SERVICES.—(A) The provi-
sion of services under this section shall be
provided—
‘‘(i) by employees of a public agency; or
‘‘(ii) through contract by such public agen-
cy with an individual, association, agency, or or-
ganization.
‘‘(B) In the provision of such services, such em-
ployee, person, association, agency, or organization
shall be independent of such private school and of
any religious organization, and such employment or
contract shall be under the control and supervision
of such public agency.
‘‘(d) STANDARDS FOR A BYPASS.—If a local edu-
cational agency is prohibited by law from providing for
the participation on an equitable basis of eligible children
enrolled in private elementary and secondary schools or
if the Secretary determines that a local educational agency
has substantially failed or is unwilling to provide for such
participation, as required by this section, the Secretary
shall—
‘‘(1) waive the requirements of this section for
such local educational agency;
‘‘(2) arrange for the provision of services to
such children through arrangements that shall be
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subject to the requirements of this section and sec-
tions 8505 and 8506; and
‘‘(3) in making the determination, consider one
or more factors, including the quality, size, scope,
and location of the program and the opportunity of
eligible children to participate.
‘‘(e) CAPITAL EXPENSES.—
‘‘(1) IN GENERAL.—(A) From the amount ap-
propriated for this subsection under section 1002(g)
for any fiscal year, each State is eligible to receive
an amount that bears the same ratio to the amount
so appropriated as the number of private school chil-
dren who received services under this part in the
State in the most recent year for which data satis-
factory to the Secretary are available bears to the
number of such children in all States in that same
year.
‘‘(B) 
The 
Secretary 
shall 
reallocate 
any
amounts allocated under subparagraph (A) that are
not used by a State for the purpose of this sub-
section to other States on the basis of their respec-
tive needs, as determined by the Secretary.
‘‘(2) CAPITAL
EXPENSES.—(A) A local edu-
cational agency may apply to the State educational
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agency for payments for capital expenses consistent
with this subsection.
‘‘(B) State educational agencies shall distribute
such funds under this subsection to local educational
agencies based on the degree of need set forth in
their respective applications for assistance under this
subsection.
‘‘(3) USES OF FUNDS.—Any funds appropriated
to carry out this subsection shall be used only for
capital expenses incurred to provide equitable serv-
ices for private school children under this section.
‘‘SEC. 1120A. FISCAL REQUIREMENTS.
‘‘(a) MAINTENANCE
OF
EFFORT.—A local edu-
cational agency may receive funds under this part for any
fiscal year only if the State educational agency finds that
the local educational agency has maintained its fiscal ef-
fort in accordance with section 8501 of this Act.
‘‘(b) FEDERAL FUNDS TO SUPPLEMENT, NOT SUP-
PLANT, NON-FEDERAL FUNDS.—
‘‘(1) IN
GENERAL.—A State or local edu-
cational agency shall use funds received under this
part only to supplement the amount of funds that
would, in the absence of such Federal funds, be
made available from non-Federal sources for the
education of pupils participating in programs as-
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sisted under this part, and not to supplant such
funds.
‘‘(2) SPECIAL
RULE.—No local educational
agency shall be required to provide services under
this part through a particular instructional method
or in a particular instructional setting in order to
demonstrate such agency’s compliance with para-
graph (1).
‘‘(c) COMPARABILITY OF SERVICES.—
‘‘(1) IN GENERAL.—(A) Except as provided in
paragraphs (4) and (5), a local educational agency
may receive funds under this part only if State and
local funds will be used in schools served under this
part to provide services that, taken as a whole, are
at least comparable to services in schools that are
not receiving funds under this part.
‘‘(B) If the local educational agency is serving
all of such agency’s schools under this part, such
agency may receive funds under this part only if
such agency will use State and local funds to provide
services that, taken as a whole, are substantially
comparable in each school.
‘‘(C) A local educational agency may meet the
requirements of subparagraphs (A) and (B) on a
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grade-span by grade-span basis or a school-by-school
basis.
‘‘(2) WRITTEN ASSURANCE.—(A) A local edu-
cational agency shall be considered to have met the
requirements of paragraph (1) if such agency has
filed with the State educational agency a written as-
surance that such agency has established and
implemented—
‘‘(i) a local educational agency-wide salary
schedule;
‘‘(ii) a policy to ensure equivalence among
schools in teachers, administrators, and other
staff; and
‘‘(iii) a policy to ensure equivalence among
schools in the provision of curriculum materials
and instructional supplies.
‘‘(B) For the purpose of subparagraph (A), in
the determination of expenditures per pupil from
State and local funds, or instructional salaries per
pupil from State and local funds, staff salary dif-
ferentials for years of employment shall not be in-
cluded in such determinations.
‘‘(C) A local educational agency need not in-
clude unpredictable changes in student enrollment or
personnel assignments that occur after the beginning
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of a school year in determining comparability of
services under this subsection.
‘‘(3) PROCEDURES AND RECORDS.—Each local
educational agency assisted under this part shall—
‘‘(A) develop procedures for compliance
with this subsection; and
‘‘(B) maintain records that are updated bi-
ennially documenting such agency’s compliance
with this subsection.
‘‘(4) INAPPLICABILITY.—This subsection shall
not apply to a local educational agency that does not
have more than one building for each grade span.
‘‘(5) COMPLIANCE.—For the purpose of deter-
mining compliance with paragraph (1), a local edu-
cational agency may exclude State and local funds
expended for—
‘‘(A) English language instruction for chil-
dren of limited English proficiency; and
‘‘(B) excess costs of providing services to
children with disabilities as determined by the
local educational agency.
‘‘(d) EXCLUSION OF FUNDS.—For the purpose of
complying with subsections (b) and (c), a State or local
educational agency may exclude supplemental State or
local funds expended in any school attendance area or
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school for programs that meet the intent and purposes of
this part.
‘‘SEC. 1120B. COORDINATION REQUIREMENTS.
‘‘(a) IN GENERAL.—Each local educational agency
receiving assistance under this part shall carry out the ac-
tivities described in subsection (b) with Head Start Agen-
cies, and if feasible, other early childhood development
programs such as Early Reading First.
‘‘(b) ACTIVITIES.—The activities referred to in sub-
section (a) are activities that increase coordination be-
tween the local educational agency and a Head Start agen-
cy, and, if feasible, other early childhood development pro-
grams, such as Early Reading First serving children who
will attend the schools of such agency, including—
‘‘(1) developing and implementing a systematic
procedure for receiving records regarding such chil-
dren transferred with parental consent from a Head
Start program or, where applicable, other early
childhood development programs such as Early
Reading First;
‘‘(2) establishing channels of communication be-
tween school staff and their counterparts in such
Head Start agencies (including teachers, social
workers, and health staff) or other early childhood
development programs such as Early Reading First,
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as appropriate, to facilitate coordination of pro-
grams;
‘‘(3) conducting meetings involving parents,
kindergarten or elementary school teachers, and
Head Start teachers or, if appropriate, teachers
from other early childhood development programs
such as Early Reading First, to discuss the develop-
mental and other needs of individual children;
‘‘(4) organizing and participating in joint tran-
sition related training of school staff, Head Start
staff, Early Reading First staff and, where appro-
priate, other early childhood staff; and
‘‘(5) linking the educational services provided in
such local educational agency with the services pro-
vided in local Head Start agencies and Early Read-
ing First programs.
‘‘(c) COORDINATION OF REGULATIONS.—The Sec-
retary shall work with the Secretary of Health and Human
Services to coordinate regulations promulgated under this
part with regulations promulgated under the Head Start
Act.
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‘‘Subpart 2—Allocations
‘‘SEC. 1121. GRANTS FOR THE OUTLYING AREAS AND THE
SECRETARY OF THE INTERIOR.
‘‘(a) RESERVATION OF FUNDS.—From the amount
appropriated for payments to States for any fiscal year
under section 1002(a), the Secretary shall reserve a total
of 1 percent to provide assistance to—
‘‘(1) the outlying areas in the amount deter-
mined in accordance with subsection (b); and
‘‘(2) the Secretary of the Interior in the amount
necessary to make payments pursuant to subsection
(d).
‘‘(b) ASSISTANCE TO OUTLYING AREAS.—
‘‘(1) FUNDS
RESERVED.—From the amount
made available for any fiscal year under subsection
(a), the Secretary shall award grants to the outlying
areas.
‘‘(2) COMPETITIVE GRANTS.—For each of fiscal
years 2002 and 2003, the Secretary shall carry out
the competition described in paragraph (3), except
that the amount reserved to carry out such competi-
tion shall not exceed the amount reserved under this
section for the freely associated states for fiscal year
1999.
‘‘(3) LIMITATION FOR COMPETITIVE GRANTS.—
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‘‘(A) COMPETITIVE
GRANTS.—The Sec-
retary shall use funds described in paragraph
(2) to award grants, on a competitive basis, to
the outlying areas and freely associated States
to carry out the purposes of this part.
‘‘(B) AWARD BASIS.—The Secretary shall
award grants under subparagraph (A) on a
competitive basis, pursuant to the recommenda-
tions of the Pacific Region Educational Labora-
tory in Honolulu, Hawaii.
‘‘(C) ADMINISTRATIVE
COSTS.—The Sec-
retary may provide not more than 5 percent of
the amount reserved for grants under this para-
graph to pay the administrative costs of the Pa-
cific Region Educational Laboratory under sub-
paragraph (B).
‘‘(4) SPECIAL RULE.—The provisions of Public
Law 95–134, permitting the consolidation of grants
by the outlying areas, shall not apply to funds pro-
vided to the freely associated States under this sec-
tion.
‘‘(c) DEFINITIONS.—For the purposes of subsections
(a) and (b)—
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‘‘(1) the term ‘freely associated States’ means
the Republic of the Marshall Islands, the Federated
States of Micronesia, and the Republic of Palau; and
‘‘(2) the term ‘outlying area’ means the United
States Virgin Islands, Guam, American Samoa, and
the Commonwealth of the Northern Mariana Is-
lands.
‘‘(d) ALLOTMENT TO THE SECRETARY OF THE INTE-
RIOR.—
‘‘(1) IN
GENERAL.—The amount allotted for
payments to the Secretary of the Interior under sub-
section (a)(2) for any fiscal year shall be, as deter-
mined pursuant to criteria established by the Sec-
retary, the amount necessary to meet the special
educational needs of—
‘‘(A) Indian children on reservations served
by elementary and secondary schools for Indian
children operated or supported by the Depart-
ment of the Interior; and
‘‘(B) out-of-State Indian children in ele-
mentary and secondary schools in local edu-
cational agencies under special contracts with
the Department of the Interior.
‘‘(2) PAYMENTS.—From the amount allotted
for payments to the Secretary of the Interior under
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subsection (a)(2), the Secretary of the Interior shall
make payments to local educational agencies, upon
such terms as the Secretary determines will best
carry out the purposes of this part, with respect to
out-of-State Indian children described in paragraph
(1). The amount of such payment may not exceed,
for each such child, the greater of—
‘‘(A) 40 percent of the average per-pupil
expenditure in the State in which the agency is
located; or
‘‘(B) 48 percent of such expenditure in the
United States.
‘‘SEC. 1122. AMOUNTS FOR BASIC GRANTS, CONCENTRA-
TION GRANTS, AND TARGETED GRANTS.
‘‘(a) ALLOCATION FORMULA.—Of the amount appro-
priated to carry out this part for each of fiscal years 2002
through 2006 (referred to in this subsection as the current
fiscal year)—
‘‘(1) an amount equal to the amount appro-
priated to carry out section 1124 for fiscal year
2001 shall be allocated in accordance with section
1124;
‘‘(2) an amount equal to the amount appro-
priated to carry out section 1124A for fiscal year
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2001 shall be allocated in accordance with section
1124A; and
‘‘(3) an amount equal to 100 percent of the
amount, if any, by which the amount appropriated
under section 1002(a) for the current fiscal year ex-
ceeds the amount appropriated under such section
for fiscal year 2001 shall be allocated in accordance
with section 1125.
‘‘(b) ADJUSTMENTS WHERE NECESSITATED BY AP-
PROPRIATIONS.—
‘‘(1) IN GENERAL.—If the sums available under
this part for any fiscal year are insufficient to pay
the full amounts that all local educational agencies
in States are eligible to receive under sections 1124,
1124A, and 1125 for such year, the Secretary shall
ratably reduce the allocations to such local edu-
cational agencies, subject to subsections (c) and (d)
of this section.
‘‘(2) ADDITIONAL FUNDS.—If additional funds
become available for making payments under sec-
tions 1124, 1124A, and 1125 for such fiscal year,
allocations that were reduced under paragraph (1)
shall be increased on the same basis as they were re-
duced.
‘‘(c) HOLD-HARMLESS AMOUNTS.—
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‘‘(1) AMOUNTS FOR SECTIONS 1124 AND 1125.—
For each fiscal year, the amount made available to
each local educational agency under each of sections
1124 and 1125 shall be—
‘‘(A) not less than 95 percent of the
amount made available in the preceding fiscal
year if the number of children counted for
grants under section 1124 is not less than 30
percent of the total number of children aged 5
to 17 years, inclusive, in the local educational
agency;
‘‘(B) not less than 90 percent of the
amount made available in the preceding fiscal
year if the percentage described in subpara-
graph (A) is between 15 percent and 30 per-
cent; and
‘‘(C) not less than 85 percent of the
amount made available in the preceding fiscal
year if the percentage described in subpara-
graph (A) is below 15 percent.
‘‘(2) 
AMOUNT
FOR
SECTION
1124A.—The
amount made available to each local educational
agency under section 1124A shall be not less than
85 percent of the amount made available in the pre-
ceding fiscal year.
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‘‘(3) PAYMENTS.—If sufficient funds are appro-
priated, the amounts described in paragraph (2)
shall be paid to all local educational agencies that
received grants under section 1124A for the pre-
ceding fiscal year, regardless of whether the local
educational agency meets the minimum eligibility
criteria for that fiscal year provided in section
1124A(a)(1)(A) except that a local educational agen-
cy that does not meet such minimum eligibility cri-
teria for 4 consecutive years shall no longer be eligi-
ble to receive a hold harmless amount referred to in
paragraph (2).
‘‘(4) POPULATION DATA.—In any fiscal year for
which the Secretary calculates grants on the basis of
population data for counties, the Secretary shall
apply the hold harmless percentages in paragraphs
(1) and (2) to counties, and if the Secretary’s alloca-
tion for a county is not sufficient to meet the hold-
harmless requirements of this subsection for every
local educational agency within that county, the
State educational agency shall reallocate funds pro-
portionately from all other local educational agencies
in the State that are receiving funds in excess of the
hold harmless amounts specified in this subsection.
‘‘(d) RATABLE REDUCTIONS.—
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‘‘(1) IN GENERAL.—If the sums made available
under this part for any fiscal year are insufficient to
pay the full amounts that all States are eligible to
receive under subsection (c) for such year, the Sec-
retary shall ratably reduce such amounts for such
year.
‘‘(2) ADDITIONAL FUNDS.—If additional funds
become available for making payments under sub-
section (c) for such fiscal year, amounts that were
reduced under paragraph (1) shall be increased on
the same basis as such amounts were reduced.
‘‘(e) DEFINITION.—For the purpose of this section
and sections 1124, 1124A, and 1125, the term ‘State’
means each of the 50 States, the District of Columbia,
and the Commonwealth of Puerto Rico.
‘‘SEC. 1124. BASIC GRANTS TO LOCAL EDUCATIONAL AGEN-
CIES.
‘‘(a) AMOUNT OF GRANTS.—
‘‘(1) GRANTS FOR LOCAL EDUCATIONAL AGEN-
CIES
AND
PUERTO
RICO.—Except as provided in
paragraph (4) and in section 1126, the grant that
a local educational agency is eligible to receive under
this section for a fiscal year is the amount deter-
mined by multiplying—
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‘‘(A) the number of children counted under
subsection (c); and
‘‘(B) 40 percent of the average per-pupil
expenditure in the State, except that the
amount determined under this subparagraph
shall not be less than 32 percent or more than
48 percent, of the average per-pupil expenditure
in the United States.
‘‘(2) CALCULATION OF GRANTS.—
‘‘(A) 
ALLOCATIONS
TO
LOCAL
EDU-
CATIONAL AGENCIES.—The Secretary shall cal-
culate grants under this section on the basis of
the number of children counted under sub-
section (c) for local educational agencies, unless
the Secretary and the Secretary of Commerce
determine that some or all of those data are un-
reliable or that their use would be otherwise in-
appropriate, in which case—
‘‘(i) the two Secretaries shall publicly
disclose the reasons for their determination
in detail; and
‘‘(ii) paragraph (3) shall apply.
‘‘(B) ALLOCATIONS TO LARGE AND SMALL
LOCAL EDUCATIONAL AGENCIES.—(i) For any
fiscal year in which this paragraph applies, the
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Secretary shall calculate grants under this sec-
tion for each local educational agency.
‘‘(ii) The amount of a grant under this
section for each large local educational agency
shall be the amount determined under clause
(i).
‘‘(iii) For small local educational agencies,
the State educational agency may either—
‘‘(I) distribute grants under this sec-
tion in amounts determined by the Sec-
retary under clause (i); or
‘‘(II) use an alternative method ap-
proved by the Secretary to distribute the
portion of the State’s total grants under
this section that is based on those small
agencies.
‘‘(iv) An alternative method under clause
(iii)(II) shall be based on population data that
the State educational agency determines best
reflect the current distribution of children in
poor families among the State’s small local edu-
cational agencies that meet the eligibility cri-
teria of subsection (b).
‘‘(v) If a small local educational agency is
dissatisfied with the determination of its grant
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by the State educational agency under clause
(iii)(II), it may appeal that determination to the
Secretary, who shall respond not later than 45
days after receipt of such appeal.
‘‘(vi) As used in this subparagraph—
‘‘(I) the term ‘large local educational
agency’ means a local educational agency
serving an area with a total population of
20,000 or more; and
‘‘(II) the term ‘small local educational
agency’ means a local educational agency
serving an area with a total population of
less than 20,000.
‘‘(3) ALLOCATIONS TO COUNTIES.—
‘‘(A) CALCULATION.—For any fiscal year
to which this paragraph applies, the Secretary
shall calculate grants under this section on the
basis of the number of children counted under
section 1124(c) for counties, and State edu-
cational 
agencies 
shall 
suballocate 
county
amounts to local educational agencies, in ac-
cordance with regulations issued by the Sec-
retary.
‘‘(B) DIRECT ALLOCATIONS.—In any State
in which a large number of local educational
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agencies overlap county boundaries, or for
which the State believes it has data that would
better target funds than allocating them by
county, the State educational agency may apply
to the Secretary for authority to make the allo-
cations under this part for a particular fiscal
year directly to local educational agencies with-
out regard to counties.
‘‘(C) ASSURANCES.—If the Secretary ap-
proves the State educational agency’s applica-
tion under subparagraph (B), the State edu-
cational agency shall provide the Secretary an
assurance that such allocations shall be made—
‘‘(i) using precisely the same factors
for determining a grant as are used under
this part; or
‘‘(ii) using data that the State edu-
cational agency submits to the Secretary
for approval that more accurately target
poverty.
‘‘(D) APPEAL.—The State educational
agency shall provide the Secretary an assurance
that it shall establish a procedure through
which a local educational agency that is dissat-
isfied with its determinations under subpara-
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graph (B) may appeal directly to the Secretary
for a final determination.
‘‘(4) PUERTO RICO.—
‘‘(A) IN GENERAL.—For each fiscal year,
the grant which the Commonwealth of Puerto
Rico shall be eligible to receive under this sec-
tion shall be the amount determined by multi-
plying the number of children counted under
subsection (c) for the Commonwealth of Puerto
Rico by the product of—
‘‘(i) the percentage which the average
per-pupil expenditure in the Common-
wealth of Puerto Rico is of the lowest aver-
age per-pupil expenditure of any of the 50
States; and
‘‘(ii) 32 percent of the average per-
pupil expenditure in the United States.
‘‘(B) MINIMUM
PERCENTAGE.—The per-
centage in subparagraph (A)(i) shall not be less
than—
‘‘(i) for fiscal year 2002, 77.5 percent;
‘‘(ii) for fiscal year 2003, 80.0 per-
cent;
‘‘(iii) for fiscal year 2004, 82.5 per-
cent; and
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‘‘(iv) for fiscal year 2005 and suc-
ceeding fiscal years, 85.0 percent.
‘‘(C) LIMITATION.—If the application of
subparagraph (B) would result in any of the 50
States or the District of Columbia receiving less
under this part than it received under this part
for the preceding fiscal year, the percentage in
subparagraph (A) shall be the greater of the
percentage in subparagraph (A)(i) or the per-
centage used for the preceding fiscal year.
‘‘(5) DEFINITION.—For purposes of this sub-
section, the term ‘State’ does not include Guam,
American Samoa, the Virgin Islands, and the North-
ern Mariana Islands.
‘‘(b) MINIMUM NUMBER OF CHILDREN TO QUAL-
IFY.—A local educational agency is eligible for a basic
grant under this section for any fiscal year only if the
number of children counted under subsection (c) for that
agency is both—
‘‘(1) 10 or more; and
‘‘(2) more than 2 percent of the total school-age
population in the agency’s jurisdiction.
‘‘(c) CHILDREN TO BE COUNTED.—
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‘‘(1) CATEGORIES OF CHILDREN.—The number
of children to be counted for purposes of this section
is the aggregate of—
‘‘(A) the number of children aged 5 to 17,
inclusive, in the school district of the local edu-
cational agency from families below the poverty
level as determined under paragraph (2);
‘‘(B) the number of children (determined
under paragraph (4) for either the preceding
year as described in that paragraph, or for the
second preceding year, as the Secretary finds
appropriate) aged 5 to 17, inclusive, in the
school district of such agency in institutions for
neglected and delinquent children (other than
such institutions operated by the United
States), but not counted pursuant to subpart 1
of part D for the purposes of a grant to a State
agency, or being supported in foster homes with
public funds; and
‘‘(C) the number of children aged 5 to 17,
inclusive, in the school district of such agency
from families above the poverty level as deter-
mined under paragraph (4).
‘‘(2) DETERMINATION
OF
NUMBER
OF
CHIL-
DREN.—For the purposes of this section, the Sec-
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retary shall determine the number of children aged
5 to 17, inclusive, from families below the poverty
level on the basis of the most recent satisfactory
data, described in paragraph (3), available from the
Department of Commerce. The District of Columbia
and the Commonwealth of Puerto Rico shall be
treated as individual local educational agencies. If a
local educational agency contains two or more coun-
ties in their entirety, then each county will be treat-
ed as if such county were a separate local edu-
cational agency for purposes of calculating grants
under this part. The total of grants for such coun-
ties shall be allocated to such a local educational
agency, which local educational agency shall dis-
tribute to schools in each county within such agency
a share of the local educational agency’s total grant
that is no less than the county’s share of the popu-
lation counts used to calculate the local educational
agency’s grant.
‘‘(3) POPULATION
UPDATES.—In fiscal year
2001 and every 2 years thereafter, the Secretary
shall use updated data on the number of children,
aged 5 to 17, inclusive, from families below the pov-
erty level for local educational agencies or counties,
published by the Department of Commerce, unless
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the Secretary and the Secretary of Commerce deter-
mine that use of the updated population data would
be inappropriate or unreliable. If the Secretary and
the Secretary of Commerce determine that some or
all of the data referred to in this paragraph are in-
appropriate or unreliable, they shall publicly disclose
their reasons. In determining the families which are
below the poverty level, the Secretary shall utilize
the criteria of poverty used by the Bureau of the
Census in compiling the most recent decennial cen-
sus, in such form as those criteria have been up-
dated by increases in the Consumer Price Index for
all urban consumers, published by the Bureau of
Labor Statistics.
‘‘(4) OTHER CHILDREN TO BE COUNTED.—For
the purposes of this section, the Secretary shall de-
termine the number of children aged 5 to 17, inclu-
sive, from families above the poverty level on the
basis of the number of such children from families
receiving an annual income, in excess of the current
criteria of poverty, from payments under a State
program funded under part A of title IV of the So-
cial Security Act; and in making such determina-
tions the Secretary shall utilize the criteria of pov-
erty used by the Bureau of the Census in compiling
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the most recent decennial census for a family of 4
in such form as those criteria have been updated by
increases in the Consumer Price Index for all urban
consumers, published by the Bureau of Labor Statis-
tics. The Secretary shall determine the number of
such children and the number of children aged 5
through 17 living in institutions for neglected or de-
linquent children, or being supported in foster homes
with public funds, on the basis of the caseload data
for the month of October of the preceding fiscal year
(using, in the case of children described in the pre-
ceding sentence, the criteria of poverty and the form
of such criteria required by such sentence which
were determined for the calendar year preceding
such month of October) or, to the extent that such
data are not available to the Secretary before Janu-
ary of the calendar year in which the Secretary’s de-
termination is made, then on the basis of the most
recent reliable data available to the Secretary at the
time of such determination. The Secretary of Health
and Human Services shall collect and transmit the
information required by this subparagraph to the
Secretary not later than January 1 of each year.
For the purpose of this section, the Secretary shall
consider all children who are in correctional institu-
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tions to be living in institutions for delinquent chil-
dren.
‘‘(5) ESTIMATE.—When requested by the Sec-
retary, the Secretary of Commerce shall make a spe-
cial updated estimate of the number of children of
such ages who are from families below the poverty
level (as determined under subparagraph (A) of this
paragraph) in each school district, and the Secretary
is authorized to pay (either in advance or by way of
reimbursement) the Secretary of Commerce the cost
of making this special estimate. The Secretary of
Commerce shall give consideration to any request of
the chief executive of a State for the collection of ad-
ditional census information.
‘‘(d) STATE
MINIMUM.—Notwithstanding section
1122, the aggregate amount allotted for all local edu-
cational agencies within a State may not be less than the
lesser of—
‘‘(1) 0.25 percent of total grants under this sec-
tion; or
‘‘(2) the average of—
‘‘(A) one-quarter of 1 percent of the total
amount available for such fiscal year under this
section; and
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‘‘(B) the number of children in such State
counted under subsection (c) in the fiscal year
multiplied by 150 percent of the national aver-
age per-pupil payment made with funds avail-
able under this section for that year.
‘‘SEC. 1124A. CONCENTRATION GRANTS TO LOCAL EDU-
CATIONAL AGENCIES.
‘‘(a) ELIGIBILITY FOR AND AMOUNT OF GRANTS.—
‘‘(1) IN
GENERAL.—(A) Except as otherwise
provided in this paragraph, each local educational
agency, in a State other than Guam, American
Samoa, the Virgin Islands, and the Commonwealth
of the Northern Mariana Islands, which is eligible
for a grant under section 1124 for any fiscal year
is eligible for an additional grant under this section
for that fiscal year if the number of children counted
under section 1124(c) in the agency exceeds either—
‘‘(i) 6,500; or
‘‘(ii) 15 percent of the total number of
children aged 5 through 17 in the agency.
‘‘(B) Notwithstanding section 1122, no State
described in subparagraph (A) shall receive less than
the lesser of—
‘‘(i) 0.25 percent of total grants; or
‘‘(ii) the average of—