(2) TWO-YEAR REMEDIATION FOR COMPARABLE 
EDUCATIONAL
SERVICES.—If the State is deter-
mined not to meet the requirements of section 
112(b) (relating to comparable educational services), 
the plan shall describe the actions the State will take 
to meet the requirements of such section by not later 
than 2 school years after submission of the plan. 
(b) DISAPPROVAL OF PLAN.—The Secretary may dis-
approve a plan (or amendment) submitted under sub-
section (a) that the Secretary determines does not meet 
the requirements of such subsection. 
SEC. 123. CONSEQUENCES OF NONREMEDIATION. 
(a) FAILURE TO MEET ANNUAL INTERIM ACCESS 
GOALS.—Notwithstanding any other provision of law and 
in addition to any other consequence under this section, 
the Secretary shall withhold 2.75 percent of any funds 
otherwise available to a State (or a State educational 
agency) for administration of Federal elementary and sec-
ondary education programs for each annual interim goal 
established under section 122(a)(1)(B) for a fiscal year, 
or a prior fiscal year, that the Secretary determines the 
State fails to meet. 
(b) CONTINUING
FAILURE
TO
PROVIDE
COM-
PARABLE
EDUCATIONAL
SERVICES.—Notwithstanding 
any other provision of law and in addition to any other 
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consequence under this section, the Secretary shall with-
hold from a State determined by the Secretary to continue 
to fail to meet the requirements of section 112(b) (relating 
to comparable educational services) at the end of the sec-
ond school year after a plan is required to be submitted 
under section 122, up to 331⁄3 percent of funds otherwise 
available to the State for administration of Federal ele-
mentary and secondary education programs. 
(c) NONCOMPLIANCE WITH COURT ORDERS.—Not-
withstanding any other provision of law and in addition 
to any other consequence under this section, the Secretary 
shall withhold from a State determined by the Secretary 
to fail to meet the requirements of section 112(c) (relating 
to compliance with court orders) up to 331⁄3 percent of 
funds otherwise available to the State for the administra-
tion of Federal elementary and secondary education pro-
grams. 
(d) DISPOSITION OF WITHHELD FUNDS.—For each 
State from which funds are withheld under this section, 
the Secretary shall make a determination whether the 
State, by not later than 1 year after a determination under 
subsection (a), (b), or (c), has corrected the condition lead-
ing to a withholding of funds and shall distribute withheld 
funds as follows: 
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(1) If the State corrects a condition leading to 
a withholding of funds, the Secretary shall make the 
applicable withheld funds available to the State (or 
State educational agency). 
(2) If the State fails to correct a condition lead-
ing to a withholding of funds, the Secretary shall al-
locate the applicable withheld funds to public schools 
or school districts affected by the State’s failure to 
make adequate remediation, for the purpose of ena-
bling the school or school district to correct such 
condition. 
(e) TEMPORARY WAIVER.—The Secretary may grant 
a request by a State for a waiver of the withholding provi-
sions of subsections (a) through (c) for a total period of 
not more than 1 year if— 
(1) the Secretary is satisfied that exceptional 
circumstances (such as a precipitous decrease in 
State revenues) prevent a State from complying with 
the requirements of section 112; and 
(2) the State’s request describes the manner in 
which the State will comply with the requirements of 
section 112 by the end of the waiver period. 
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Subtitle C—Public Reporting and 
Remedy 
SEC. 131. ANNUAL REPORT BY SECRETARY ON ADEQUACY 
AND EQUITY IN STATE PUBLIC SCHOOL SYS-
TEMS. 
(a) ANNUAL REPORT TO CONGRESS.—Not later than 
October 1 of the first full school year after the date of 
enactment of this Act, the Secretary shall transmit to the 
Congress a report that provides a detailed analysis of the 
public school system of each State. 
(b) CONTENTS
OF REPORT.—The analysis under 
subsection (a) shall include the following information with 
respect to each State’s public school system: 
(1) BASIC PUBLIC SCHOOL SYSTEM INFORMA-
TION.— 
(A) The number of students, elementary 
schools, secondary schools, and school districts 
in the public school system. 
(B) For each such school and school dis-
trict, the number and percentage of— 
(i) children counted under section 
1124(c) of the Elementary and Secondary 
Education 
Act 
of 
1965 
(20 
U.S.C. 
6333(c)); and 
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