‘‘(11) provide an assurance that the eligible en-
tity will— 
‘‘(A) cooperate with cross-cutting evalua-
tions; 
‘‘(B) make evaluation data available to 
third parties for validation and further study 
consistent with protections established by appli-
cable Federal, State, and local privacy require-
ments and other on provisions on the protection 
of personally identifiable information; and 
‘‘(C) participate in communities of prac-
tice; and 
‘‘(12) if the eligible entity is a nonprofit organi-
zation that intends to make subgrants, consistent 
with section 4405(b), provide an assurance that the 
eligible entity will apply paragraphs (1) through 
(10), as appropriate, in the eligible entity’s selection 
of subgrantees and in the oversight of such sub-
grants. 
‘‘(c) CRITERIA FOR EVALUATING APPLICATIONS.— 
The Secretary shall award grants under section 4403 on 
a competitive basis, based on the quality of the applica-
tions under this section submitted and, consistent with the 
standards established under section 4403(f), each eligible 
entity’s likelihood of achieving success in improving stu-
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dent outcomes or outcomes on other performance meas-
ures. 
‘‘SEC. 4405. USES OF FUNDS. 
‘‘(a) USES OF FUNDS.—Each eligible entity that re-
ceives a grant under section 4403— 
‘‘(1) shall use the grant funds to address, at a 
minimum, one of the following areas of school inno-
vations: 
‘‘(A) Improving the effectiveness and dis-
tribution of teachers or principals. 
‘‘(B) Strengthening the use of data to im-
prove teaching and learning. 
‘‘(C) Providing high-quality instruction 
based on rigorous standards that build toward 
college and career readiness and measuring stu-
dents’ mastery using high-quality assessments 
aligned to those standards. 
‘‘(D) Turning around the lowest-per-
forming schools. 
‘‘(E) Supporting the effective use of tech-
nology to improve teaching or principals and 
learning, including training teachers or prin-
cipals in the innovative use of technology. 
‘‘(F) Any other area of school innovation, 
as determined by the Secretary; 
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‘‘(2) shall use those funds to develop or expand 
strategies to improve the performance of high-need 
students on the performance measures described in 
section 4406; and 
‘‘(3) may use the grant funds for an inde-
pendent 
evaluation, 
as 
required 
by 
section 
4404(b)(9), of the innovative practices carried out 
with the grant. 
‘‘(b) AUTHORITY TO SUBGRANT.—In the case of an 
eligible entity receiving a grant under section 4403 that 
is nonprofit organization such eligible entity may use the 
grant funds to make subgrants to other entities to provide 
support to one or more high-need schools or high-need 
local educational agencies. Any entity receiving a subgrant 
under this subsection shall comply with the requirements 
of this part for eligible entities, as appropriate. 
‘‘SEC. 4406. PERFORMANCE MEASURES. 
‘‘(a) IN GENERAL.—The Secretary shall establish 
performance measures for the projects carried out under 
this part. These measures, at a minimum, shall track an 
eligible entity’s progress in— 
‘‘(1) improving outcomes for each subgroup de-
scribed in section 1111(b)(2)(C)(v) that is served by 
the grantee on measures, including, as applicable, 
by— 
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‘‘(A) increasing student achievement and 
decreasing achievement gaps; 
‘‘(B) increasing secondary school gradua-
tion rates; 
‘‘(C) increasing college enrollment rates 
and rates of college persistence; 
‘‘(D) improving teacher and principal ef-
fectiveness or the retention of highly effective 
teachers or principals; 
‘‘(E) improving school readiness; or 
‘‘(F) any other indicator as the Secretary 
or grantee may determine; and 
‘‘(2) implementing the eligible entity’s project 
in rural schools, as applicable. 
‘‘(b) 
DATA
COLLECTION
PERIOD.—From 
the 
amounts appropriated under section 4408, the Secretary 
may— 
‘‘(1) approve, for an eligible entity receiving a 
grant under section 4403, a data collection period of 
not more than 72 months beginning after the end of 
the eligible entity’s grant period; and 
‘‘(2) provide the eligible entity with funding 
during such period for the sole purpose of collecting, 
analyzing, and reporting performance information 
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under this subsection on the project carried out dur-
ing the grant period. 
‘‘SEC. 4407. ANNUAL REPORT. 
‘‘An eligible entity that receives a grant under section 
4403 shall submit to the Secretary, at such time and in 
such manner as the Secretary may require, an annual re-
port that includes information on— 
‘‘(1) the eligible entity’s progress on the per-
formance measures established under section 4406; 
and 
‘‘(2) the data supporting such progress. 
‘‘SEC. 4408. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to carry out 
this part $500,000,000 for fiscal year 2014 and such sums 
as may be necessary for each of the 5 succeeding fiscal 
years. 
‘‘SEC. 4409. DEFINITIONS. 
‘‘In this part: 
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means— 
‘‘(A) a local educational agency; 
‘‘(B) an educational service agencies; or 
‘‘(C) a nonprofit organization in partner-
ship with a local educational agency or consor-
tium of schools. 
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‘‘(2) HIGH-NEED LOCAL EDUCATIONAL AGEN-
CY.—The term ‘high-need local educational agency’ 
means a local educational agency— 
‘‘(A) that serves not fewer than 10,000 
children from families with incomes below the 
poverty line; 
‘‘(B) for which not less than 20 percent of 
the children served by the agency are from fam-
ilies with incomes below the poverty line; or 
‘‘(C) that is in the highest quartile of local 
educational agencies in the State, based on stu-
dent poverty. 
‘‘(3) HIGH-NEED
SCHOOL.—The term ‘high- 
need school’’ means— 
‘‘(A) an elementary school or middle school 
in which not less than 50 percent of the en-
rolled students are children eligible for free or 
reduced price lunch under the Richard B. Rus-
sell National School Lunch Act (42 U.S.C. 
1751 et seq.); 
‘‘(B) a high school in which not less than 
40 percent of the enrolled students are children 
eligible for free or reduced price lunch under 
the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1751 et seq.), which may be cal-
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