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aged 5 to 17 years, inclusive, in the local educational agen-
cy. For each fiscal year for which the Secretary uses county
population data to calculate grants, funds made available
as a result of applying this subsection shall be reallocated
by the State educational agency to other eligible local edu-
cational agencies in the State in proportion to the distribu-
tion of other funds under this section.
‘‘(b) GRANTS FOR LOCAL EDUCATIONAL AGENCIES,
THE DISTRICT OF COLUMBIA, AND PUERTO RICO.—
‘‘(1) IN
GENERAL.—The amount of the grant
that a local educational agency in a State or that the
District of Columbia is eligible to receive under this
section for any fiscal year shall be the product of—
‘‘(A) the weighted child count determined
under subsection (c); and
‘‘(B) 
the 
amount 
in 
paragraph
1124(a)(1)(B).
‘‘(2) PUERTO RICO.—For each fiscal year, the
amount of the grant for which the Commonwealth of
Puerto Rico is eligible under this section shall be
equal to the number of children counted under sub-
section (c) for Puerto Rico, multiplied by the amount
determined in subparagraph 1124(a)(4).
‘‘(c) WEIGHTED CHILD COUNT.—
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‘‘(1) WEIGHTS
FOR
ALLOCATIONS
TO
COUN-
TIES.—
‘‘(A) IN GENERAL.—For each fiscal year for
which the Secretary uses county population data
to calculate grants, the weighted child count used
to determine a county’s allocation under this sec-
tion is the larger of the 2 amounts determined
under clause (i) or (ii), as follows:
‘‘(i) BY PERCENTAGE OF CHILDREN.—
This amount is determined by adding—
‘‘(I) the number of children deter-
mined under section 1124(c) for that
county constituting up to 15 percent,
inclusive, of the county’s total popu-
lation aged 5 to 17, inclusive, multi-
plied by 1.0;
‘‘(II) the number of such children
constituting more than 15 percent, but
not more than 19 percent, of such pop-
ulation, multiplied by 1.75;
‘‘(III) the number of such children
constituting more than 19 percent, but
not more than 24.20 percent, of such
population, multiplied by 2.5;
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‘‘(IV) the number of such children
constituting more than 24.20 percent,
but not more than 29.20 percent, of
such population, multiplied by 3.25;
and
‘‘(V) the number of such children
constituting more than 29.20 percent of
such population, multiplied by 4.0.
‘‘(ii) BY NUMBER OF CHILDREN.—This
amount is determined by adding—
‘‘(I) the number of children deter-
mined under section 1124(c) consti-
tuting up to 2,311, inclusive, of the
county’s total population aged 5 to 17,
inclusive, multiplied by 1.0;
‘‘(II) the number of such children
between 2,312 and 7,913, inclusive, in
such population, multiplied by 1.5;
‘‘(III) the number of such children
between 7,914 and 23,917, inclusive, in
such population, multiplied by 2.0;
‘‘(IV) the number of such children
between 23,918 and 93,810, inclusive,
in such population, multiplied by 2.5;
and
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‘‘(V) the number of such children
in excess of 93,811 in such population,
multiplied by 3.0.
‘‘(B) PUERTO RICO.—Notwithstanding sub-
paragraph (A), the weighted child count for
Puerto Rico under this paragraph shall not be
greater than the total number of children counted
under subsection 1124(c) multiplied by 1.72.
‘‘(2) WEIGHTS FOR ALLOCATIONS TO LOCAL EDU-
CATIONAL AGENCIES.—
‘‘(A) IN GENERAL.—For each fiscal year for
which the Secretary uses local educational agen-
cy data, the weighted child count used to deter-
mine a local educational agency’s grant under
this section is the larger of the 2 amounts deter-
mined under clauses (i) and (ii), as follows:
‘‘(i) BY PERCENTAGE OF CHILDREN.—
This amount is determined by adding—
‘‘(I) the number of children deter-
mined under section 1124(c) for that
local educational agency constituting
up to 15.233 percent, inclusive, of the
agency’s total population aged 5 to 17,
inclusive, multiplied by 1.0;
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‘‘(II) the number of such children
constituting more than 15.233 percent,
but not more than 22.706 percent, of
such population, multiplied by 1.75;
‘‘(III) the number of such children
constituting more than 22.706 percent,
but not more than 32.213 percent, of
such population, multiplied by 2.5;
‘‘(IV) the number of such children
constituting more than 32.213 percent,
but not more than 41.452 percent, of
such population, multiplied by 3.25;
and
‘‘(V) the number of such children
constituting more than 41.452 percent
of such population, multiplied by 4.0.
‘‘(ii) BY NUMBER OF CHILDREN.—This
amount is determined by adding—
‘‘(I) the number of children deter-
mined under section 1124(c) consti-
tuting up to 710, inclusive, of the
agency’s total population aged 5 to 17,
inclusive, multiplied by 1.0;
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‘‘(II) the number of such children
between 711 and 2,384, inclusive, in
such population, multiplied by 1.5;
‘‘(III) the number of such children
between 2,385 and 9,645, inclusive, in
such population, multiplied by 2.0;
‘‘(IV) the number of such children
between 9,646 and 54,600, inclusive, in
such population, multiplied by 2.5;
and
‘‘(V) the number of such children
in excess of 54,601 in such population,
multiplied by 3.0.
‘‘(B) PUERTO RICO.—Notwithstanding sub-
paragraph (A), the weighted child count for
Puerto Rico under this paragraph shall not be
greater than the total number of children counted
under section 1124(c) multiplied by 1.72.
‘‘(d) CALCULATION
OF GRANT AMOUNTS.—Grants
under this section shall be calculated in accordance with
section 1124(a)(2) and (3).
‘‘(e) STATE MINIMUM.—Notwithstanding any other
provision of this section or section 1122, from the total
amount available for any fiscal year to carry out this sec-
tion, each State shall be allotted at least the lesser of—
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‘‘(1) 0.25 percent of total appropriations; or
‘‘(2) the average of—
‘‘(A) one-quarter of 1 percent of the total
amount available to carry out this section; and
‘‘(B) 150 percent of the national average
grant under this section per child described in
section 1124(c), without application of a
weighting factor, multiplied by the State’s total
number of children described in section 1124(c),
without application of a weighting factor.
‘‘SEC. 1126. SPECIAL ALLOCATION PROCEDURES.
‘‘(a) ALLOCATIONS FOR NEGLECTED CHILDREN.—
‘‘(1) IN GENERAL.—If a State educational agen-
cy determines that a local educational agency in the
State is unable or unwilling to provide for the special
educational needs of children who are living in insti-
tutions for neglected children as described in subpara-
graph (B) of section 1124(c)(1), the State educational
agency shall, if such agency assumes responsibility for
the special educational needs of such children, receive
the portion of such local educational agency’s alloca-
tion under sections 1124, 1124A, and 1125 that is at-
tributable to such children.
‘‘(2) SPECIAL RULE.—If the State educational
agency does not assume such responsibility, any other
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State or local public agency that does assume such re-
sponsibility shall receive that portion of the local edu-
cational agency’s allocation.
‘‘(b) ALLOCATIONS
AMONG
LOCAL
EDUCATIONAL
AGENCIES.—The State educational agency may allocate the
amounts of grants under sections 1124, 1124A, and 1125
among the affected local educational agencies—
‘‘(1) if 2 or more local educational agencies
serve, in whole or in part, the same geographical
area;
‘‘(2) if a local educational agency provides free
public education for children who reside in the school
district of another local educational agency; or
‘‘(3) to reflect the merger, creation, or change of
boundaries of 1 or more local educational agencies.
‘‘(c) REALLOCATION.—If a State educational agency
determines that the amount of a grant a local educational
agency would receive under sections 1124, 1124A, and 1125
is more than such local agency will use, the State edu-
cational agency shall make the excess amount available to
other local educational agencies in the State that need addi-
tional funds in accordance with criteria established by the
State educational agency.
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‘‘SEC. 1127. CARRYOVER AND WAIVER.
‘‘(a) LIMITATION ON CARRYOVER.—Notwithstanding
section 421 of the General Education Provisions Act or any
other provision of law, not more than 15 percent of the
funds allocated to a local educational agency for any fiscal
year under this subpart (but not including funds received
through any reallocation under this subpart) may remain
available for obligation by such agency for 1 additional fis-
cal year.
‘‘(b) WAIVER.—A State educational agency may, once
every 3 years, waive the percentage limitation in subsection
(a) if—
‘‘(1) the agency determines that the request of a
local educational agency is reasonable and necessary;
or
‘‘(2) supplemental appropriations for this sub-
part become available.
‘‘(c) EXCLUSION.—The percentage limitation under
subsection (a) shall not apply to any local educational
agency that receives less than $50,000 under this subpart
for any fiscal year.
‘‘SEC. 1128. SECULAR, NEUTRAL, AND NONIDEOLOGICAL.
‘‘Any school that receives funds under this part shall
ensure that educational services or other benefits provided
under this part, including materials and equipment, shall
be secular, neutral, and nonideological.’’.
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PART B—STUDENT READING SKILLS
IMPROVEMENT GRANTS
SEC. 111. READING FIRST; EARLY READING FIRST.
Part B of title I (20 U.S.C. 6361 et seq.) is amended—
(1) by striking the part heading and inserting
the following:
‘‘PART B—STUDENT READING SKILLS
IMPROVEMENT GRANTS’’;
(2) by redesignating sections 1201 through 1212
as sections 1231 through 1242, respectively; and
(3) by inserting after the part heading the fol-
lowing:
‘‘Subpart 1—Reading First
‘‘SEC. 1201. FINDINGS.
‘‘The Congress finds as follows:
‘‘(1) The 2000 National Assessment of Edu-
cational Progress found that 68 percent of fourth
grade students in the United States are reading below
the proficient level.
‘‘(2) According to the 2000 National Assessment
of Educational Progress report on reading, 63 percent
of African Americans, 58 percent of Hispanic Ameri-
cans, 60 percent of children living in poverty, and 47
percent of children in urban schools scored ‘below
basic’ in reading.
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‘‘(3) More than 1⁄2 of the students placed in spe-
cial education classes are identified as learning dis-
abled and, for as many as 80 percent of the students
so identified, reading is the primary difficulty.
‘‘(4) It is estimated that, at a minimum,
10,000,000 children have difficulty learning to read.
10 to 15 percent of those children eventually drop out
of high school, and only 2 percent complete a 4-year
program at an institution of higher education.
‘‘(5) It is estimated that the number of children
who are typically identified as poor readers can be
significantly reduced through the implementation of
early identification and prevention programs that are
based on scientifically based reading research.
‘‘(6) The report issued by the National Reading
Panel in 2000 found that the course of reading in-
struction that obtains maximum benefits for students
includes explicit and systematic instruction in pho-
nemic awareness, phonics, vocabulary development,
reading fluency, and reading comprehension strate-
gies.
‘‘SEC. 1202. PURPOSES.
‘‘The purposes of this subpart are as follows:
‘‘(1) To provide assistance to States and local
educational agencies in establishing reading programs
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•HR 1 RH1&2
for students in grades kindergarten through 3 that are
based on scientifically based reading research, in
order to ensure that every student can read at grade
level or above not later than the end of the third
grade.
‘‘(2) To provide assistance to States and local
educational agencies in preparing teachers, including
special education teachers, through professional devel-
opment and other support, so the teachers can iden-
tify specific reading barriers facing their students
and so the teachers have the tools to effectively help
their students learn to read.
‘‘(3) To provide assistance to States and local
educational agencies in selecting and administering
rigorous diagnostic reading and screening assessment
tools that are valid and reliable, document the effec-
tiveness of this subpart in improving the reading
skills of students, and improve classroom instruction.
‘‘(4) To provide assistance to States and local
educational agencies in selecting or developing effec-
tive classroom instructional materials, programs, and
strategies to implement scientific research-based meth-
ods that have been proven to prevent or remediate
reading failure.
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‘‘(5) To strengthen coordination among schools
and early literacy programs in order to improve
reading achievement for all children.
‘‘SEC. 1203. FORMULA GRANTS TO STATES.
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORIZATION TO MAKE GRANTS.—In the
case of each State that in accordance with section
1204 submits to the Secretary an application for a 5-
year period, the Secretary, subject to the application’s
approval, shall make a grant to the State for the uses
specified in subsections (c) and (d). For each fiscal
year, the funds provided under the grant shall equal
the allotment determined for the State under sub-
section (b).
‘‘(2) DURATION OF GRANTS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), a grant under this section shall be
awarded for a period of not more than 5 years.
‘‘(B) INTERIM REVIEW.—
‘‘(i) PROGRESS REPORT.—
‘‘(I) SUBMISSION.—Not later than
60 days after the termination of the
third year of the grant period, each
State receiving a grant under this sec-
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•HR 1 RH1&2
tion shall submit a progress report to
the Secretary.
‘‘(II) INFORMATION INCLUDED.—
The progress report shall include infor-
mation on the progress the State, and
local educational agencies within the
State, are making in reducing the
number of students served under this
subpart in the first and second grades
who are reading below grade level, as
demonstrated by such information as
teacher reports and school evaluations
of mastery of the essential components
of reading instruction. The report shall
also include evidence from the State
and its local educational agencies that
they have significantly increased the
number of students reading at grade
level or above, significantly increased
the percentages of students in ethnic,
racial, and low-income populations
who are reading at grade level or
above, and successfully implemented
this subpart.
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‘‘(ii) PEER REVIEW.—The progress re-
port described in clause (i) shall be reviewed
by the peer review panel convened under
section 1204(c)(2).
‘‘(iii) CONSEQUENCES
OF
INSUFFI-
CIENT PROGRESS.—After the submission of
the progress report described in clause (i), if
the Secretary determines that the State is
not making significant progress in meeting
the purposes of this subpart, the Secretary
may withhold from the State, in whole or in
part, further payments under this section in
accordance with section 455 of the General
Education 
Provisions 
Act 
(20 
U.S.C.
1234d) or take such other action authorized
by law as the Secretary deems necessary,
including providing technical assistance
upon request of the State.
‘‘(b) DETERMINATION OF AMOUNT OF ALLOTMENTS.—
‘‘(1) RESERVATIONS
FROM
APPROPRIATIONS.—
From the total amount made available under section
1002(b)(1) to carry out this subpart for a fiscal year,
the Secretary—
‘‘(A) shall reserve 1⁄2 of 1 percent for allot-
ments for the Virgin Islands, Guam, American
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•HR 1 RH1&2
Samoa, and the Commonwealth of the Northern
Mariana Islands, to be distributed among these
outlying areas on the basis of their relative need,
as determined by the Secretary in accordance
with the purposes of this subpart;
‘‘(B) shall reserve 1⁄2 of 1 percent for the
Secretary of the Interior for programs under this
subpart in schools operated or funded by the Bu-
reau of Indian Affairs;
‘‘(C) shall reserve not more than 3 percent
or $30,000,000, whichever is less, to carry out
section 1206;
‘‘(D) may reserve not more than 1 percent
to carry out section 1207; and
‘‘(E) shall reserve $5,000,000 to carry out
section 1208.
‘‘(2) STATE
ALLOTMENTS.—From the total
amount made available under section 1002(b)(1) to
carry out this subpart for a fiscal year and not re-
served under paragraph (1), the Secretary shall allot
80 percent under this section among each of the 50
States, the District of Columbia, and the Common-
wealth of Puerto Rico.
‘‘(3) DETERMINATION
OF
STATE
ALLOTMENT
AMOUNTS.—
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•HR 1 RH1&2
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall allot the amount
made available under paragraph (2) for a fiscal
year among the States described in such para-
graph in proportion to the number of children,
aged 5 to 17, who reside within the State from
families with incomes below the poverty line (as
defined by the Office of Management and Budget
and revised annually in accordance with section
673(2) of the Community Services Block Grant
Act (42 U.S.C. 9902(2)) applicable to a family
of the size involved for the most recent fiscal year
for which satisfactory data are available, com-
pared to the number of such individuals who re-
side in all such States for that fiscal year.
‘‘(B) EXCEPTIONS.—
‘‘(i) IN
GENERAL.—Subject to clause
(ii), no State receiving an allotment under
subparagraph (A) may receive less than 1⁄4
of 1 percent of the total amount allotted
under such subparagraph.
‘‘(ii) PUERTO RICO.—The percentage of
the amount allotted under subparagraph
(A) that is allotted to the Commonwealth of
Puerto Rico for a fiscal year may not ex-
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•HR 1 RH1&2
ceed the percentage that was received by the
Commonwealth of Puerto Rico of the funds
allocated to all States under subpart 2 of
part A for the preceding fiscal year.
‘‘(4) REALLOTMENT.—If a State described in
paragraph (2) does not apply for an allotment under
this section for any fiscal year, or if the State’s appli-
cation is not approved, the Secretary shall reallot
such amount to the remaining States in accordance
with paragraph (3).
‘‘(c) SUBGRANTS
TO LOCAL EDUCATIONAL AGEN-
CIES.—
‘‘(1) DISTRIBUTION OF SUBGRANTS.—The Sec-
retary may make a grant to a State under this sec-
tion only if the State agrees to expend at least 80 per-
cent of the amount of the funds provided under the
grant for the purpose of making, in accordance with
this subsection, competitive subgrants to local edu-
cational agencies.
‘‘(2) NOTICE.—A State receiving a grant under
this section shall provide notice to all local edu-
cational agencies in the State of the availability of
competitive subgrants under this subsection and of the
requirements for applying for the subgrants.
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‘‘(3) LOCAL APPLICATIONS.—To be eligible to re-
ceive a subgrant under this subsection, a local edu-
cational agency shall submit an application to the
State at such time, in such manner, and containing
such information as the State may reasonably re-
quire.
‘‘(4) LIMITATION
TO
CERTAIN
LOCAL
AGEN-
CIES.—A State receiving a grant under this section
may award subgrants under this subsection only to
local educational agencies—
‘‘(A) that have the highest percentages of
students in grades kindergarten through 3 read-
ing below grade level; and
‘‘(B) that—
‘‘(i) have jurisdiction over—
‘‘(I) a geographic area that in-
cludes an area designated as an em-
powerment zone, or an enterprise com-
munity, under part I of subchapter U
of chapter 1 of the Internal Revenue
Code of 1986; or
‘‘(II) a significant number of
schools that are identified for school
improvement under section 1116(b); or
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‘‘(ii) are located in areas having the
greatest numbers or percentages of children
aged 5 through 17 from low-income fami-
lies.
‘‘(5) STATE
REQUIREMENT.—In distributing
subgrant funds to local educational agencies under
this subsection, a State shall provide funds in suffi-
cient size and scope to enable local educational agen-
cies to improve reading instruction, as determined by
rigorous diagnostic reading and screening assessment
tools.
‘‘(6) LIMITATION TO CERTAIN SCHOOLS.—In dis-
tributing subgrant funds under this subsection, a
local educational agency may provide funds only to
schools—
‘‘(A) that have the highest percentages of
students in grades kindergarten through 3 read-
ing below grade level; and
‘‘(B) that—
‘‘(i) are identified for school improve-
ment under section 1116(b); or
‘‘(ii) have the greatest numbers or per-
centages of children aged 5 through 17 from
low-income families.
‘‘(7) LOCAL USES OF FUNDS.—
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‘‘(A) REQUIRED
USES.—Subject to para-
graph (8), a local educational agency that re-
ceives a subgrant under this subsection shall use
the funds provided under the subgrant to carry
out the following activities:
‘‘(i) Selecting and administering rig-
orous diagnostic reading and screening as-
sessment tools.
‘‘(ii) Selecting and implementing a
program or programs of classroom reading
instruction based on scientifically based
reading research that—
‘‘(I) includes the essential compo-
nents of reading instruction; and
‘‘(II) provides such instruction to
all children, including children who—
‘‘(aa) may have reading dif-
ficulties;
‘‘(bb) are at risk of being re-
ferred to special education based
on these difficulties;
‘‘(cc) have been evaluated
under section 614 of the Individ-
uals with Disabilities Education
Act but, in accordance with sec-
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•HR 1 RH1&2
tion 614(b)(5) of such Act, have
not been identified as being a
child with a disability (as defined
in section 602 of such Act);
‘‘(dd) are being served under
such Act primarily due to being
identified as being a child with a
specific learning disability (as de-
fined in section 602 of such Act)
related to reading;
‘‘(ee) are deficient in their
phonemic 
awareness, 
phonics
skills, 
vocabulary 
development,
oral reading fluency, or com-
prehension strategies; or
‘‘(ff) are identified as having
limited English proficiency.
‘‘(iii) Procuring classroom instruc-
tional materials based on scientifically
based reading research.
‘‘(iv) Providing professional develop-
ment for teachers of grades kindergarten
through 3, and special education teachers of
grades kindergarten through 12, that—
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•HR 1 RH1&2
‘‘(I) will prepare these teachers in
all of the essential components of read-
ing instruction;
‘‘(II) shall include—
‘‘(aa) information, instruc-
tional materials, programs, strate-
gies, and approaches based on sci-
entifically based reading research,
including early intervention and
classroom reading materials and
remedial 
programs 
and 
ap-
proaches; and
‘‘(bb) instruction in the use
of rigorous diagnostic reading and
screening assessment tools and
other procedures that effectively
identify students who may be at
risk for reading failure or who are
having difficulty reading;
‘‘(III) shall be provided by eligible
professional 
development 
providers;
and
‘‘(IV) will assist teachers in be-
coming fully qualified in accordance
with the requirements of section 1119.
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‘‘(B) OPTIONAL
USES.—Subject to para-
graph (8), a local educational agency that re-
ceives a subgrant under this subsection may use
the funds provided under the subgrant to carry
out the following activities:
‘‘(i) Providing training to parents and
other individuals who volunteer to be read-
ing tutors in the essential components of
reading instruction.
‘‘(ii) Providing family literacy serv-
ices, especially to parents enrolled in par-
ticipating schools, through the use of library
materials and reading programs, strategies,
and approaches that are based on scientif-
ically based reading research, to encourage
reading and support their children’s read-
ing development.
‘‘(8) LOCAL PLANNING AND ADMINISTRATION.—A
local educational agency that receives a subgrant
under this subsection may use not more than 2 per-
cent of the funds provided under the subgrant for
planning and administration.
‘‘(d) OTHER STATE USES OF FUNDS.—
‘‘(1) PROFESSIONAL DEVELOPMENT.—
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•HR 1 RH1&2
‘‘(A) IN GENERAL.—A State that receives a
grant under this section may expend not more
than 15 percent of the amount of the funds pro-
vided under the grant—
‘‘(i) to develop and implement a pro-
gram of in-service professional development
for teachers of kindergarten through third
grade, and special education teachers of
grades kindergarten through 12, that—
‘‘(I) will prepare these teachers in
all of the essential components of read-
ing instruction;
‘‘(II) shall include—
‘‘(aa) information on inter-
ventions, instructional materials,
programs, and approaches based
on scientifically based reading re-
search, including early interven-
tion and reading remediation ma-
terials, programs, and approaches;
and
‘‘(bb) instruction in the use
of rigorous diagnostic reading and
screening assessment tools and
other procedures to improve in-
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•HR 1 RH1&2
struction and effectively identify
students who may be at risk for
reading failure or who are having
difficulty reading; and
‘‘(III) shall be provided by eligible
professional development providers;
‘‘(ii) to strengthen and enhance profes-
sional development courses for students pre-
paring, at all public institutions of higher
education in the State, to teach kinder-
garten through third grades by—
‘‘(I) reviewing such courses to de-
termine whether their content is con-
sistent with the findings of the most
current scientifically based reading re-
search, including findings on the essen-
tial components of reading instruction;
‘‘(II) following up such reviews
with recommendations to ensure that
such institutions offer courses that
meet the highest standards; and
‘‘(III) preparing a report on the
results of such reviews, submitting it to
the reading and literacy partnership
for the State established under section
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•HR 1 RH1&2
1204(d), and making it available for
public review via the Internet; and
‘‘(iii) to make recommendations on
how the State’s licensure and certification
standards in the area of reading might be
improved.
‘‘(B) FUNDS NOT USED FOR PROFESSIONAL
DEVELOPMENT.—Any portion of the funds de-
scribed in subparagraph (A) that a State does
not expend in accordance with such subpara-
graph shall be expended for the purpose of mak-
ing subgrants in accordance with subsection (c).
‘‘(2) OTHER STATE-LEVEL ACTIVITIES.—A State
that receives a grant under this section may expend
not more than 3 percent of the amount of the funds
provided under the grant for one or more of the fol-
lowing authorized State activities:
‘‘(A) Assisting local educational agencies in
accomplishing the tasks required to design and
implement a classroom reading program under
this subpart, including—
‘‘(i) selecting and implementing a pro-
gram or programs of classroom reading in-
struction based on scientifically based read-
ing research;
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•HR 1 RH1&2
‘‘(ii) selecting rigorous diagnostic read-
ing and screening assessment tools; and
‘‘(iii) identifying eligible professional
development providers to help prepare read-
ing teachers to teach students using the pro-
grams and assessments described in clauses
(i) and (ii);
‘‘(B) Providing to students in kindergarten
through third grades, through appropriate pro-
viders, reading instruction that includes—
‘‘(i) rigorous diagnostic reading and
screening assessment tools; and
‘‘(ii) as need is indicated by such as-
sessments, instruction based on scientifically
based reading research that includes the es-
sential components of reading instruction.
‘‘(3) PLANNING, ADMINISTRATION, AND REPORT-
ING.—
‘‘(A) IN GENERAL.—A State that receives a
grant under this section shall expend not more
than 2 percent of the amount of the funds pro-
vided under the grant for the activities described
in this paragraph.
‘‘(B) PLANNING AND ADMINISTRATION.—A
State that receives a grant under this section
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may expend funds described in subparagraph
(A) for—
‘‘(i) planning and administration re-
lating to the State uses of funds authorized
under this subpart, including administering
the distribution of competitive subgrants to
local educational agencies under this section
and section 1205; and
‘‘(ii) assessing and evaluating, on a
regular basis, local educational agency ac-
tivities assisted under this subpart, with re-
spect to whether they have been effective in
increasing the number of children in first
and second grades served under this subpart
who can read at or above grade level.
‘‘(C) ANNUAL REPORTING.—
‘‘(i) IN
GENERAL.—A State that re-
ceives a grant under this section shall ex-
pend funds provided under the grant to pro-
vide the Secretary annually with a report
on the implementation of this subpart. The
report shall include evidence that the State
is fulfilling its obligations under this sub-
part. The report shall include a specific
identification of those schools and local edu-
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cational agencies that report the largest
gains in reading achievement.
‘‘(ii) PRIVACY PROTECTION.—Data in
the report shall be set forth in a manner
that protects the privacy of individuals.
‘‘(iii) CONTRACT.—To the extent prac-
ticable, a State shall enter into a contract
with an entity that conducts scientifically
based reading research, under which con-
tract the entity will produce the reports re-
quired to be submitted under this subpara-
graph.
‘‘SEC. 1204. STATE FORMULA GRANT APPLICATIONS.
‘‘(a) IN GENERAL.—A State that desires to receive a
grant under section 1203 shall submit an application to
the Secretary at such time and in such form as the Sec-
retary may require. The application shall contain the infor-
mation described in subsection (b).
‘‘(b) CONTENTS.—An application under this section
shall contain the following:
‘‘(1) An assurance that the Governor of the
State, in consultation with the State educational
agency, has established a reading and literacy part-
nership described in subsection (d), and a description
of how such partnership—
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‘‘(A) coordinated the development of the ap-
plication; and
‘‘(B) will assist in the oversight and evalua-
tion of the State’s activities under this subpart.
‘‘(2) An assurance that the State will submit to
the Secretary, at such time and in such manner as
the Secretary may reasonably require, a State plan
containing a description of a process—
‘‘(A) to evaluate programs carried out by
local educational agencies under this subpart;
‘‘(B) to assist local educational agencies in
identifying rigorous diagnostic reading and
screening assessment tools; and
‘‘(C) to assist local educational agencies in
identifying interventions, and instructional ma-
terials, programs and approaches, based on sci-
entifically based reading research, including
early intervention and classroom reading mate-
rials and remedial programs and approaches.
‘‘(3) An assurance that the State, and local edu-
cational agencies in the State, will participate in all
national evaluations under this subpart.
‘‘(c) APPROVAL OF APPLICATIONS.—
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the peer review panel convened under para-
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graph (2), shall approve an application of a State
under this section if such application meets the re-
quirements of this section.
‘‘(2) PEER REVIEW.—
‘‘(A) IN GENERAL.—The Secretary, in con-
sultation with the National Institute for Lit-
eracy, shall convene a panel to evaluate applica-
tions under this section. At a minimum, the
panel shall include—
‘‘(i) 3 individuals selected by the Sec-
retary;
‘‘(ii) 3 individuals selected by the Na-
tional Institute for Literacy;
‘‘(iii) 3 individuals selected by the Na-
tional Research Council of the National
Academy of Sciences; and
‘‘(iv) 3 individuals selected by the Na-
tional Institute of Child Health and
Human Development.
‘‘(B) EXPERTS.—The panel shall include
experts who are competent, by virtue of their
training, expertise, or experience, to evaluate ap-
plications under this section, and experts who
provide professional development to teachers of
reading to children and adults, and experts who
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provide professional development to other in-
structional staff, based on scientifically based
reading research.
‘‘(C) RECOMMENDATIONS.—The panel shall
recommend grant applications from States under
this section to the Secretary for funding or for
disapproval.
‘‘(d) READING AND LITERACY PARTNERSHIPS.—
‘‘(1) IN GENERAL.—In order for a State to re-
ceive a grant under section 1203, the Governor of the
State, in consultation with the State educational
agency, shall establish a reading and literacy part-
nership.
‘‘(2) REQUIRED
PARTICIPANTS.—The reading
and literacy partnership shall include the following
participants:
‘‘(A) The Governor of the State.
‘‘(B) The chief State school officer.
‘‘(C) The chairman and the ranking mem-
ber of each committee of the State legislature
that is responsible for education policy.
‘‘(D) A representative, selected jointly by the
Governor and the chief State school officer, of at
least one local educational agency that is eligible
to receive a subgrant under section 1203.
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‘‘(E) A representative, selected jointly by the
Governor and the chief State school officer, of a
community-based organization working with
children to improve their reading skills, particu-
larly a community-based organization using tu-
tors and scientifically based reading research.
‘‘(F) State directors of appropriate Federal
or State programs with a strong reading compo-
nent.
‘‘(G) A parent of a public or private school
student or a parent who educates their child or
children in their home, selected jointly by the
Governor and the chief State school officer.
‘‘(H) A teacher, who may be a special edu-
cation teacher, who successfully teaches reading
and an instructional staff member, selected joint-
ly by the Governor and the chief State school of-
ficer.
‘‘(I) A family literacy service provider se-
lected jointly by the Governor and the chief state
school officer.
‘‘(3) OPTIONAL PARTICIPANTS.—The reading and
literacy partnership may include additional partici-
pants, who shall be selected jointly by the Governor
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and the chief State school officer, and who may in-
clude a representative of—
‘‘(A) an institution of higher education op-
erating a program of teacher preparation based
on scientifically based reading research in the
State;
‘‘(B) a local educational agency;
‘‘(C) a private nonprofit or for-profit eligi-
ble professional development provider providing
instruction based on scientifically based reading
research;
‘‘(D) an adult education provider;
‘‘(E) a volunteer organization that is in-
volved in reading programs; or
‘‘(F) a school library or a public library
that offers reading or literacy programs for chil-
dren or families.
‘‘SEC. 1205. DISCRETIONARY GRANTS TO STATES.
‘‘(a) IN GENERAL.—In the case of a State that, in ac-
cordance with sections 1203 and 1204, has received ap-
proval of an application for a 5-year formula grant, the
Secretary may make additional 2-year discretionary grants
to the State for the use specified in (d). For each fiscal year,
the funds provided under the discretionary grant shall equal
the allotment determined for the State under subsection (b).
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•HR 1 RH1&2
‘‘(b) DETERMINATION OF AMOUNT OF ALLOTMENTS.—
From the total amount made available under section
1002(b)(1) to carry out this subpart for a fiscal year and
not reserved under paragraph (1), the Secretary, upon the
recommendation of the peer review panel convened under
section 1204(c)(2), shall allot 20 percent under this section
among the States described in subsection (a)—
‘‘(1) for fiscal years 2002 and 2003, based upon
a determination of such States’ relative likelihood of
effectively implementing a program under this sub-
part; and
‘‘(2) for fiscal year 2004 and subsequent fiscal
years, based upon such States’ applications under
subsection (c).
‘‘(c) STATE DISCRETIONARY GRANT APPLICATIONS.—
‘‘(1) IN GENERAL.—A State that desires to re-
ceive a grant under this section for a grant period
that includes any fiscal year after fiscal year 2003
shall submit the information described in paragraph
(3) to the Secretary at such time and in such form
as the Secretary may require.
‘‘(2) PEER REVIEW.—The peer review panel con-
vened under section 1204(c)(2) shall review the infor-
mation submitted under this subsection. The panel
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shall recommend such applications to the Secretary
for funding or for disapproval.
‘‘(3) INFORMATION.—The information described
in this paragraph is the following:
‘‘(A) An assurance that the State will
award competitive subgrants to local educational
agencies consistent with subsection (d)(4).
‘‘(B) An assurance that the State will en-
sure that local educational agencies that receive
a subgrant under subsection (d) use the funds
provided under the subgrant in accordance with
subsection (d)(5).
‘‘(C) Evidence that the State has increased
significantly the percentage of students reading
at grade level or above.
‘‘(D) Evidence that the State has been suc-
cessful in increasing the percentage of students
in ethnic, racial, and low-income populations
who are reading at grade level or above.
‘‘(E) Any additional evidence that dem-
onstrates success in the implementation of this
subpart.
‘‘(d) SUBGRANTS
TO LOCAL EDUCATIONAL AGEN-
CIES.—
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‘‘(1) IN GENERAL.—The Secretary may make a
grant to a State under this section only if the State
agrees to expend 100 percent of the amount of the
funds provided under the grant for the purpose of
making competitive subgrants in accordance with this
subsection to local educational agencies.
‘‘(2) NOTICE.—A State receiving a grant under
this section shall provide notice to all local edu-
cational agencies in the State of the availability of
competitive subgrants under this subsection and of the
requirements for applying for the subgrants.
‘‘(3) APPLICATION.—To be eligible to receive a
subgrant under this subsection, a local educational
agency shall submit an application to the State at
such time, in such manner, and containing such in-
formation as the State may reasonably require.
‘‘(4) DISTRIBUTION.—
‘‘(A) IN GENERAL.—A State shall distribute
subgrants under this section through a competi-
tive process based on relative need and the evi-
dence described in this paragraph.
‘‘(B) EVIDENCE USED IN ALL YEARS.—For
all fiscal years, a State shall distribute subgrants
under this section based on evidence that a local
educational agency—
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•HR 1 RH1&2
‘‘(i) satisfies the requirements of sec-
tion 1203(c)(4);
‘‘(ii) will carry out its obligations
under this subpart, particularly paragraph
(5); and
‘‘(iii) will work with other local edu-
cational agencies in the State that have not
received a subgrant under this subsection to
assist such non-receiving agencies in in-
creasing the reading achievement of stu-
dents.
‘‘(C) EVIDENCE
USED
IN
FISCAL
YEARS
AFTER 2003.—For fiscal year 2004 and subse-
quent fiscal years, a State shall distribute sub-
grants under this section based on the evidence
described in subparagraph (B) and, in addition,
evidence that a local educational agency—
‘‘(i) has significantly increased the
percentage of all students reading at grade
level or above;
‘‘(ii) has significantly increased the
percentage of students in ethnic, racial, and
low-income populations who are reading at
grade level or above; and
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•HR 1 RH1&2
‘‘(iii) has demonstrated success in the
implementation of this subpart.
‘‘(5) LOCAL
USES
OF
FUNDS.—A local edu-
cational agency that receives a subgrant under this
subsection—
‘‘(A) shall use the funds provided under the
subgrant to carry out the activities described in
section 1203(c)(7)(A); and
‘‘(B) may use such funds to carry out the
activities described in section 1203(c)(7)(B).
‘‘(e) DEFINITION.—For purposes of this section, the
term ‘State’ means each of the 50 States, the District of
Columbia, and the Commonwealth of Puerto Rico.
‘‘SEC. 1206. EXTERNAL EVALUATION.
‘‘(a) IN GENERAL.—From funds reserved under section
1203(b)(1)(C), the Secretary shall contract with an inde-
pendent outside organization for a 5-year, rigorous, sci-
entifically valid, quantitative evaluation of this subpart.
‘‘(b) PROCESS.—Such evaluation shall be conducted by
an organization outside of the Department that is capable
of designing and carrying out an independent evaluation
that identifies the effects of specific activities carried out
by States and local educational agencies under this subpart
on improving reading instruction. Such evaluation shall
use only data relating to students served under this subpart
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•HR 1 RH1&2
and shall take into account factors influencing student per-
formance that are not controlled by teachers or education
administrators.
‘‘(c) ANALYSIS.—Such evaluation shall include the fol-
lowing:
‘‘(1) An analysis of the relationship between each
of the essential components of reading instruction and
overall reading proficiency.
‘‘(2) An analysis of whether assessment tools
used by States and local educational agencies measure
the essential components of reading instruction.
‘‘(3) An analysis of how State reading standards
correlate with the essential components of reading in-
struction.
‘‘(4) An analysis of whether the receipt of a dis-
cretionary grant under section 1205 results in an in-
crease in the number of children who read pro-
ficiently.
‘‘(5) A measurement of the extent to which spe-
cific instructional materials improve reading pro-
ficiency.
‘‘(6) A measurement of the extent to which spe-
cific rigorous diagnostic reading and screening assess-
ment tools assist teachers in identifying specific read-
ing deficiencies.
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‘‘(7) A measurement of the extent to which pro-
fessional development programs implemented by
States using funds received under this subpart im-
prove reading instruction.
‘‘(8) A measurement of how well students pre-
paring to enter the teaching profession are prepared
to teach the essential components of reading instruc-
tion.
‘‘(9) An analysis of changes in students’ interest
in reading and time spent reading outside of school.
‘‘(10) Any other analysis or measurement perti-
nent to this subpart that is determined to be appro-
priate by the Secretary.
‘‘(d) PROGRAM IMPROVEMENT.—The findings of the
evaluation conducted under this section shall be provided
to States and local educational agencies on a periodic basis
for use in program improvement.
‘‘SEC. 1207. NATIONAL ACTIVITIES.
‘‘From funds reserved under section 1203(b)(1)(D), the
Secretary may provide technical assistance in achieving the
purposes of this subpart to States, local educational agen-
cies, and schools requesting such assistance.
‘‘SEC. 1208. INFORMATION DISSEMINATION.
‘‘(a) IN GENERAL.—From funds reserved under section
1203(b)(1)(E), the National Institute for Literacy, in col-
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•HR 1 RH1&2
laboration with the Secretary of Education, the Secretary
of Health and Human Services, and the Director of the Na-
tional 
Institute 
for 
Child 
Health 
and 
Human
Development—
‘‘(1) shall disseminate information on scientif-
ically based reading research pertaining to children,
youth, and adults;
‘‘(2) shall identify and disseminate information
about schools, local educational agencies, and States
that effectively developed and implemented classroom
reading programs that meet the requirements of this
subpart, including those effective States, local edu-
cational agencies, and schools identified through the
evaluation and peer review provisions of this subpart;
and
‘‘(3) shall support the continued identification
and dissemination of information on reading pro-
grams that contain the essential components of read-
ing instruction as supported by scientifically based
reading research, that can lead to improved reading
outcomes for children, youth, and adults.
‘‘(b) DISSEMINATION.—
‘‘(1) IN GENERAL.—At a minimum, the National
Institute for Literacy shall disseminate such informa-
tion to—
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‘‘(A) recipients of Federal financial assist-
ance under part A of this title, part A of title
III, the Head Start Act, the Individuals with
Disabilities Education Act, and the Adult Edu-
cation and Family Literacy Act; and
‘‘(B) each Bureau funded school (as defined
in section 1141(3) of the Education Amendments
of 1978).
‘‘(2) USE OF EXISTING NETWORKS.—In carrying
out this section, the National Institute for Literacy
shall, to the extent practicable, utilize existing infor-
mation and dissemination networks developed and
maintained through other public and private entities.
‘‘SEC. 1209. DEFINITIONS.
‘‘For purposes of this subpart:
‘‘(1) ELIGIBLE
PROFESSIONAL
DEVELOPMENT
PROVIDER.—The term ‘eligible professional develop-
ment provider’ means a provider of professional devel-
opment in reading instruction to teachers, including
special education teachers, that is based on scientif-
ically based reading research.
‘‘(2) ESSENTIAL COMPONENTS OF READING IN-
STRUCTION.—The term ‘essential components of read-
ing instruction’ means explicit and systematic in-
struction in—
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•HR 1 RH1&2
‘‘(A) phonemic awareness;
‘‘(B) phonics;
‘‘(C) vocabulary development;
‘‘(D) oral reading fluency; and
‘‘(E) reading comprehension strategies.
‘‘(3) INSTRUCTIONAL STAFF.—The term ‘instruc-
tional staff’—
‘‘(A) means individuals who have responsi-
bility for teaching children to read; and
‘‘(B) includes principals, teachers, super-
visors of instruction, librarians, library school
media specialists, teachers of academic subjects
other than reading, and other individuals who
have responsibility for assisting children to learn
to read.
‘‘(4) READING.—The term ‘reading’ means a
complex system of deriving meaning from print that
requires all of the following:
‘‘(A) The skills and knowledge to under-
stand how phonemes, or speech sounds, are con-
nected to print.
‘‘(B) The ability to decode unfamiliar
words.
‘‘(C) The ability to read fluently.
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•HR 1 RH1&2
‘‘(D) Sufficient background information
and vocabulary to foster reading comprehension.
‘‘(E) The development of appropriate active
strategies to construct meaning from print.
‘‘(F) The development and maintenance of a
motivation to read.
‘‘(5) 
RIGOROUS
DIAGNOSTIC
READING
AND
SCREENING ASSESSMENT TOOLS.—The term ‘rigorous
diagnostic reading and screening assessment tools’
means assessments that—
‘‘(A) are valid, reliable, and based on sci-
entifically based reading research;
‘‘(B) measure progress in developing pho-
nemic awareness and phonics skills, vocabulary,
reading fluency, and reading comprehension;
‘‘(C) identify students who may be at risk
for reading failure or who are having difficulty
reading; and
‘‘(D) are used to improve instruction.
‘‘(6) 
SCIENTIFICALLY
BASED
READING
RE-
SEARCH.—The term ‘scientifically based reading
research’—
‘‘(A) means the application of rigorous, sys-
tematic, and objective procedures to obtain valid
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•HR 1 RH1&2
knowledge relevant to reading development, read-
ing instruction, and reading difficulties; and
‘‘(B) shall include research that—
‘‘(i) employs systematic, empirical
methods that draw on observation or experi-
ment;
‘‘(ii) involves rigorous data analyses
that are adequate to test the stated
hypotheses and justify the general conclu-
sions drawn;
‘‘(iii) relies on measurements or obser-
vational methods that provide valid data
across evaluators and observers and across
multiple measurements and observations;
and
‘‘(iv) has been accepted by a peer-re-
viewed journal or approved by a panel of
independent experts through a comparably
rigorous, objective, and scientific review.
‘‘Subpart 2—Early Reading First
‘‘SEC. 1221. PURPOSES.
‘‘The purposes of this subpart are as follows:
‘‘(1) To improve prereading skills in children
aged 3 through 5, particularly children from low-in-
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•HR 1 RH1&2
come families, in high-quality oral language and lit-
erature-rich environments.
‘‘(2) To provide professional development for
early childhood teachers that prepares them with sci-
entific research-based knowledge of early reading de-
velopment to assist in developing the children’s—
‘‘(A) automatic recognition of the letters of
the alphabet;
‘‘(B) understanding that spoken words are
made up of small segments of speech sounds and
that certain letters regularly represent such
speech sounds;
‘‘(C) spoken vocabulary and oral com-
prehension abilities; and
‘‘(D) understanding of semiotic concepts.
‘‘(3) To use scientific research-based screening
tools or other appropriate measures to determine
whether preschool children are developing the skills
identified in this section.
‘‘(4) To identify and provide scientific research-
based prereading language and literacy activities and
instructional materials that can be used to assist in
the development of prereading skills in children.
‘‘(5) To integrate such scientific research-based
instructional materials and literacy activities with
235
•HR 1 RH1&2
existing programs of preschools, child care agencies,
and Head Start centers, and with family literacy
services.
‘‘SEC. 1222. LOCAL EARLY READING FIRST GRANTS.
‘‘(a) PROGRAM AUTHORIZED.—From amounts appro-
priated under section 1002(b)(2), the Secretary shall make
awards, on a competitive basis and for periods of not more
than 5 years, to eligible applicants to enable such appli-
cants to carry out activities that are consistent with the
purposes of this subpart.
‘‘(b) DEFINITION OF ELIGIBLE APPLICANT.—In this
subpart, the term ‘eligible applicant’ means—
‘‘(1) a local educational agency;
‘‘(2) one or more public or private organizations,
acting on behalf of one or more programs that serve
children aged 3 through 5 (such as a program at a
child care agency or Head Start center or a family
literacy program), which organizations shall be lo-
cated in a community served by a local educational
agency; or
‘‘(3) one or more local educational agencies in
collaboration with one or more organizations de-
scribed in paragraph (2).
‘‘(c) APPLICATIONS.—An eligible applicant that de-
sires to receive a grant under this subpart shall submit an
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•HR 1 RH1&2
application to the Secretary, which shall include a descrip-
tion of—
‘‘(1) the programs to be served by the proposed
project, including general demographic and socio-
economic information on the communities in which
the proposed project will be administered;
‘‘(2) how the proposed project will enhance the
school readiness of children aged 3 through 5 in high-
quality oral language and literature-rich environ-
ments;
‘‘(3) how the proposed project will provide early
childhood teachers with scientific research-based
knowledge of early reading development and assist
such teachers in developing the children’s prereading
skills;
‘‘(4) how the proposed project will provide serv-
ices and utilize instructional materials that are based
on scientifically based reading research on early lan-
guage acquisition, prereading activities, and the de-
velopment of spoken vocabulary skills;
‘‘(5) how the proposed project will integrate such
instructional materials and literacy activities with
existing preschool programs and family literacy serv-
ices;
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•HR 1 RH1&2
‘‘(6) how the proposed project will help staff in
the programs to meet the diverse needs of children in
the community, including children with limited
English proficiency and children with learning dis-
abilities;
‘‘(7) how the proposed project will help children,
particularly children experiencing difficulty with spo-
ken language, prereading, and early reading skills, to
make the transition from preschool to formal class-
room instruction in school;
‘‘(8) how the activities conducted under this sub-
part will be coordinated with the eligible applicant’s
activities under subpart 1, if the applicant has re-
ceived a subgrant under such subpart, at the kinder-
garten through third grade levels;
‘‘(9) how the proposed project will evaluate the
success of the activities supported under this subpart
in enhancing the early language and reading develop-
ment of children served by the project; and
‘‘(10) such other information as the Secretary
may require.
‘‘(d) APPROVAL OF LOCAL APPLICATIONS.—The Sec-
retary shall select applicants for funding under this subpart
based on the quality of the applications and the rec-
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•HR 1 RH1&2
ommendations of the peer review panel convened under sec-
tion 1204(c)(2).
‘‘(e) LOCAL USES OF FUNDS.—
‘‘(1) REQUIRED ACTIVITIES.—An eligible appli-
cant that receives a grant under this subpart shall use
the funds provided under the grant to carry out the
following activities:
‘‘(A) Providing children aged 3 through 5
with high-quality oral language and literature-
rich 
environments 
in 
which 
to 
acquire
prereading skills.
‘‘(B) Providing professional development for
early childhood teachers that prepares them with
scientific research-based knowledge of early read-
ing development to assist in developing the
children’s—
‘‘(i) automatic recognition of the letters
of the alphabet;
‘‘(ii) understanding that spoken words
are made up of small segments of speech
sounds and that certain letters regularly
represent such speech sounds;
‘‘(iii) spoken vocabulary and oral com-
prehension abilities; and
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•HR 1 RH1&2
‘‘(iv) understanding of semiotic con-
cepts.
‘‘(C) Identifying and providing scientific
research-based prereading language and literacy
activities and instructional materials for use in
developing the children’s—
‘‘(i) automatic recognition of the letters
of the alphabet;
‘‘(ii) understanding that spoken words
are made up of small segments of speech
sounds and that certain letters regularly
represent such speech sounds;
‘‘(iii) spoken vocabulary and oral com-
prehension abilities; and
‘‘(iv) understanding of semiotic con-
cepts.
‘‘(2) OPTIONAL ACTIVITIES.—An eligible appli-
cant that receives a grant under this subpart may use
the funds provided under the grant to carry out the
following activities:
‘‘(A) Using scientific research-based screen-
ing tools or other appropriate measures to deter-
mine whether preschool children are developing
the skills identified in this subsection.
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•HR 1 RH1&2
‘‘(B) Integrating such instructional mate-
rials and literacy activities with programs of ex-
isting child care agencies, preschools, and Head
Start centers, and with family literacy services.
‘‘(f) AWARD AMOUNTS.—The Secretary may establish
a maximum award amount, or ranges of award amounts,
for grants under this subpart.
‘‘SEC. 1223. FEDERAL ADMINISTRATION.
‘‘The Secretary shall consult with the Secretary of
Health and Human Services in order to coordinate the ac-
tivities undertaken under this subpart with programs under
the Head Start Act (42 U.S.C. 9831 et seq.).
‘‘SEC. 1224. REPORTING REQUIREMENTS.
‘‘Each eligible applicant receiving a grant under this
subpart shall report annually to the Secretary regarding
the eligible applicant’s progress in addressing the purposes
of this subpart.
‘‘SEC. 1225. EVALUATION.
‘‘From the total amount made available under section
1002(b)(2) for the period beginning October 1, 2002, and
ending September 30, 2006, the Secretary shall reserve not
more than $1,000,000 to conduct an independent evaluation
of the effectiveness of this subpart.
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‘‘SEC. 1226. ADDITIONAL RESEARCH.
‘‘From the amount made available under section
1002(b)(2) for each of the fiscal years 2002 through 2006,
the Secretary shall reserve not more than $3,000,000 to con-
duct, in consultation with the National Institute for Child
Health and Human Development, the National Institute for
Literacy, and the Department of Health and Human Serv-
ices, additional research on language and literacy develop-
ment for children aged 3 through 5.’’.
SEC. 112. AMENDMENTS TO EVEN START.
Part B of title I (20 U.S.C. 6361 et seq.), as amended
by section 111, is further amended—
(1) by inserting before section 1231 (as so redes-
ignated by section 111) the following:
‘‘Subpart 3—William F. Goodling Even Start Family
Literacy Programs’’;
(2) in each of sections 1231 through 1242 (as so
redesignated by section 111)—
(A) by striking ‘‘this part’’ each place such
term appears and inserting ‘‘this subpart’’; and
(B) by striking ‘‘1002(b)’’ each place such
term appears and inserting ‘‘1002(b)(3)’’;
(3) in section 1231(4), by striking ‘‘2252)’’ and
inserting ‘‘1209)’’;
(4) in section 1232—
(A) in subsection (b)—
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(i) in paragraph (1)(A), by striking
‘‘1209;’’ and inserting ‘‘1239;’’; and
(ii) in paragraph (2), by striking
‘‘1211(b)’’ each place such term appears
and inserting ‘‘1241(b)’’; and
(B) in subsection (c)—
(i) by amending paragraph (2)(C) to
read as follows:
‘‘(C) COORDINATION WITH SUBPART 1.—The
consortium shall coordinate its activities with
the activities of the reading and literacy partner-
ship for the State established under section
1204(d), if the State receives a grant under sec-
tion 1203.’’; and
(ii) in paragraph (3), by striking
‘‘2252).’’ and inserting ‘‘1209).’’;
(5) in section 1233—
(A) by striking ‘‘1202(d)(1)’’ each place
such term appears and inserting ‘‘1232(d)(1)’’;
and
(B) by striking ‘‘1210.’’ and inserting
‘‘1240.’’;
(6) in section 1234—
(A) in subsection (b)—
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(i) in paragraph (1)(A), by moving the
margins of clauses (v) and (vi) 2 ems to the
right; and
(ii) in paragraph (3), by striking
‘‘1202(a)(1)(C)’’ 
and 
inserting
‘‘1232(a)(1)(C)’’; and
(B) in subsection (c)—
(i) in paragraph (1)—
(I) by striking ‘‘1203(a),’’ and in-
serting ‘‘1233(a),’’; and
(II) by striking ‘‘1203(b)’’ and in-
serting ‘‘1233(b)’’; and
(ii) in paragraph (2), by striking
‘‘1210.’’ and inserting ‘‘1240.’’;
(7) in section 1235—
(A) in paragraph (10), by striking ‘‘2252)’’
and inserting ‘‘1209)’’;
(B) in paragraph (12), by striking ‘‘2252),’’
and inserting ‘‘1209),’’; and
(C) in paragraph (15), by striking ‘‘pro-
gram.’’ and inserting ‘‘program to be used for
program improvement.’’;
(8) in section 1237—
(A) in subsection (c)(1)—
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(i) in subparagraph (B), by striking
‘‘1205;’’ and inserting ‘‘1235;’’; and
(ii) in subparagraph (F), by striking
‘‘14306;’’ and inserting ‘‘8306;’’; and
(B) in subsection (d), by striking ‘‘14302.’’
and inserting ‘‘8302.’’;
(9) in section 1238—
(A) in subsection (a)(1)—
(i) in subparagraph (A)(ii), by strik-
ing ‘‘1205;’’ and inserting ‘‘1235;’’; and
(ii) in subparagraph (F), by striking
‘‘1204(b);’’ and inserting ‘‘1234(b);’’; and
(B) in subsection (b)—
(i) in paragraph (3)—
(I) by striking ‘‘1207(c)(1)(A)’’
and inserting ‘‘1237(c)(1)(A)’’; and
(II) by striking ‘‘1210.’’ and in-
serting ‘‘1240.’’;
(ii) in paragraph (4), by striking
‘‘1210,’’ and inserting ‘‘1240,’’; and
(iii) in paragraph (5)(B), by striking
‘‘1204(b).’’ and inserting ‘‘1234(b).’’;
(10) in section 1239—
(A) by striking ‘‘1202(b)(1),’’ and inserting
‘‘1232(b)(1),’’; and
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(B) by striking ‘‘1205(10)’’ and inserting
‘‘1235(10)’’; and
(11) in section 1241—
(A) in subsection (b)(1)—
(i) by striking ‘‘1202(b)(2),’’ and in-
serting ‘‘1232(b)(2),’’; and
(ii) by striking ‘‘2252);’’ and inserting
‘‘1209);’’; and
(B) in subsection (c), by striking ‘‘2258,’’
and inserting ‘‘1208,’’.
SEC. 113. INEXPENSIVE BOOK DISTRIBUTION PROGRAM.
(a) TRANSFER AND REDESIGNATION.—Part E of title
X (20 U.S.C. 8131) is transferred and redesignated as sub-
part 4 of part B of title I. Section 10501 is redesignated
as section 1251.
(b) PURPOSE.—Section 1251 (as so redesignated) is
amended—
(1) by striking subsection (e);
(2) by redesignating subsection (d) as subsection
(g);
(3) by redesignating subsections (a) through (c)
as subsections (b) through (d), respectively; and
(4) by inserting before subsection (b) (as so re-
designated) the following:
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‘‘(a) PURPOSE.—The purpose of this program is to es-
tablish and implement a model partnership between a gov-
ernmental entity and a private entity, to help prepare
young children for reading, and motivate older children to
read, through the distribution of inexpensive books. Local
reading motivation programs assisted under this section
shall use such assistance to provide books, training for vol-
unteers, motivational activities, and other essential literacy
resources, and shall assign the highest priority to serving
the youngest and neediest children in the United States.’’.
(c) AUTHORIZATION.—Section 1251(b) (as so redesig-
nated) is amended by striking ‘‘books to students, that moti-
vate children to read.’’ and inserting ‘‘books to young and
school-aged children that motivate them to read.’’.
(d) REQUIREMENTS OF CONTRACT.—Section 1251(c)
(as so redesignated) is amended—
(1) in the matter preceding paragraph (1), by
striking ‘‘subsection (a)’’ and inserting ‘‘subsection
(b)’’; and
(2) in paragraph (4), by inserting ‘‘training
and’’ before ‘‘technical’’.
(e) SPECIAL RULES FOR CERTAIN SUBCONTRACTORS;
MULTI-YEAR CONTRACTS.—Section 1251 (as so redesig-
nated) is amended by inserting after subsection (d) the fol-
lowing:
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‘‘(e) SPECIAL RULES
FOR CERTAIN SUBCONTRAC-
TORS.—
‘‘(1) FUNDS FROM OTHER FEDERAL SOURCES.—
Subcontractors operating programs under this section
in low-income communities with a substantial num-
ber or percentage of children with special needs, as
described in subsection (c)(3), may use funds from
other Federal sources to pay the non-Federal share of
the cost of the program, if those funds do not comprise
more than 50 percent of the non-Federal share of the
funds used for the cost of acquiring and distributing
books.
‘‘(2) 
WAIVER
AUTHORITY.—Notwithstanding
subsection (c), the contractor may waive, in whole or
in part, the requirement in subsection (c)(1) for a
subcontractor, if the subcontractor demonstrates that
it would otherwise not be able to participate in the
program, and enters into an agreement with the con-
tractor with respect to the amount of the non-Federal
share to which the waiver will apply. In a case in
which such a waiver is granted, the requirement in
subsection (c)(2) shall not apply.
‘‘(f) MULTI-YEAR CONTRACTS.—The contractor may
enter into a multi-year subcontract under this section, if—
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‘‘(1) the contractor believes that such subcontract
will provide the subcontractor with additional lever-
age in seeking local commitments; and
‘‘(2) the subcontract does not undermine the fi-
nances of the national program.’’.
(f) CONTINUATION OF AWARDS.—Notwithstanding any
other provision of this Act, any person or agency that was
awarded a contract under part E of title X (20 U.S.C.
8131) prior to the date of the enactment of this Act shall
continue to receive funds in accordance with the terms of
such contract until the date on which the contract period
terminates under such terms.
PART C—EDUCATION OF MIGRATORY CHILDREN
SEC. 121. STATE ALLOCATIONS.
Section 1303 (20 U.S.C. 6393) is amended—
(1) by amending subsection (a) to read as fol-
lows:
‘‘(a) STATE ALLOCATIONS.—
‘‘(1) FISCAL YEAR 2002.—For fiscal year 2002,
each State (other than the Commonwealth of Puerto
Rico) is entitled to receive under this part an amount
equal to—
‘‘(A) the sum of the estimated number of
migratory children aged three through 21 who
reside in the State full time and the full-time
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equivalent of the estimated number of migratory
children aged three through 21 who reside in the
State part time, as determined in accordance
with subsection (d); multiplied by
‘‘(B) 40 percent of the average per-pupil ex-
penditure in the State, except that the amount
determined under this paragraph shall not be
less than 32 percent, nor more than 48 percent,
of the average expenditure per pupil in the
United States.
‘‘(2) SUBSEQUENT YEARS.—
‘‘(A) BASE AMOUNT.—
‘‘(i) IN GENERAL.—Except as provided
in subsection (b) and clause (ii), each State
(other than the Commonwealth of Puerto
Rico) is entitled to receive under this part,
for fiscal year 2003 and succeeding fiscal
years, an amount equal to—
‘‘(I) the amount that such State
received under this part for fiscal year
2002; plus
‘‘(II) the amount allocated to the
State under subparagraph (B).
‘‘(ii) NONPARTICIPATING STATES.—In
the case of a State (other than the Common-
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wealth of Puerto Rico) that did not receive
any funds for fiscal year 2002 under this
part, the State shall receive, for fiscal year
2003 and succeeding fiscal years, an
amount equal to—
‘‘(I) the amount that such State
would have received under this part for
fiscal year 2002 if its application
under section 1304 for the year had
been approved; plus
‘‘(II) the amount allocated to the
State under subparagraph (B).
‘‘(B) 
ALLOCATION
OF
ADDITIONAL
AMOUNT.—For fiscal year 2003 and succeeding
fiscal years, the amount (if any) by which the
funds appropriated to carry out this part for the
year exceed such funds for fiscal year 2002 shall
be allocated to a State (other than the Common-
wealth of Puerto Rico) so that the State receives
an amount equal to—
‘‘(i) the sum of—
‘‘(I) the number of identified eligi-
ble migratory children, aged 3 through
21, residing in the State during the
previous year; and
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‘‘(II) the number of identified eli-
gible 
migratory 
children, 
aged 
through 21, who received services under
this part in summer or intersession
programs provided by the State during
such year; multiplied by
‘‘(ii) 40 percent of the average per-
pupil expenditure in the State, except that
the amount determined under this clause
may not be less than 32 percent, or more
than 48 percent, of the average per-pupil
expenditure in the United States.’’;
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b) ALLOCATION TO PUERTO RICO.—
‘‘(1) IN
GENERAL.—For each fiscal year, the
grant which the Commonwealth of Puerto Rico shall
be eligible to receive under this part shall be the
amount determined by multiplying the number of
children counted under subsection (a)(1)(A) for the
Commonwealth of Puerto Rico by the product of—
‘‘(A) the percentage which the average per
pupil expenditure in the Commonwealth of Puer-
to Rico is of the lowest average per pupil expend-
iture of any of the 50 States; and
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‘‘(B) 32 percent of the average per pupil ex-
penditure in the United States.
‘‘(2) MINIMUM PERCENTAGE.—The percentage in
paragraph (1)(A) shall not be less than—
‘‘(A) for fiscal year 2002, 77.5 percent;
‘‘(B) for fiscal year 2003, 80.0 percent;
‘‘(C) for fiscal year 2004, 82.5 percent; and
‘‘(D) for fiscal year 2005 and succeeding
fiscal years, 85.0 percent.
‘‘(3) LIMITATION.—If the application of para-
graph (2) 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 fis-
cal year, the percentage in paragraph (1) shall be the
greater of the percentage in paragraph (1)(A) or the
percentage used for the preceding fiscal year.’’; and
(3) by striking subsection (d) and redesignating
subsection (e) as subsection (d).
SEC. 122. STATE APPLICATIONS; SERVICES.
(a) PROGRAM INFORMATION.—Section 1304(b) (20
U.S.C. 6394(b)) is amended—
(1) in paragraph (1), by striking ‘‘addressed
through’’ and all that follows through the semicolon at
the end and inserting the following:
‘‘addressed through—
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‘‘(A) the full range of services that are
available for migratory children from appro-
priate local, State, and Federal educational pro-
grams;
‘‘(B) joint planning among local, State, and
Federal educational programs serving migrant
children, including programs under part A of
title III;
‘‘(C) the integration of services available
under this part with services provided by those
other programs; and
‘‘(D) measurable program goals and out-
comes;’’; and
(2) in paragraph (5), by striking ‘‘the require-
ments of paragraph (1);’’ and inserting ‘‘the numbers
and needs of migratory children, the requirements of
subsection (d), and the availability of funds from
other Federal, State, and local programs;’’.
(b) 
ASSURANCES.—Section 
1304(c) 
(20 
U.S.C.
6394(c)) is amended—
(1) in paragraph (1), by striking ‘‘1306(b)(1);’’
and inserting ‘‘1306(a);’’;
(2) in paragraph (2), by striking ‘‘part F;’’ and
inserting ‘‘part H;’’
(3) in paragraph (3)—
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(A) by striking ‘‘appropriate’’;
(B) by striking ‘‘out, to the extent feasible,’’
and inserting ‘‘out’’; and
(C) by striking ‘‘1118;’’ and inserting
‘‘1118, unless extraordinary circumstances make
implementation consistent with such section im-
practical;’’; and
(4) in paragraph (7), by striking ‘‘section
1303(e)’’ and inserting ‘‘paragraphs (1)(A) and
(2)(B)(i) of section 1303(a)’’.
SEC. 123. AUTHORIZED ACTIVITIES.
Section 1306 (20 U.S.C. 6396) is amended to read as
follows:
‘‘SEC. 1306. AUTHORIZED ACTIVITIES.
‘‘(a) IN GENERAL.—
‘‘(1) 
FLEXIBILITY.—Each 
State 
educational
agency, through its local educational agencies, shall
have the flexibility to determine the activities to be
provided with funds made available under this part,
except that such funds shall first be used to meet the
identified needs of migratory children that result from
their migratory lifestyle, and to permit these children
to participate effectively in school.
‘‘(2) UNADDRESSED
NEEDS.—Funds provided
under this part shall be used to address the needs of
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migratory children that are not addressed by services
available from other Federal or non-Federal pro-
grams, except that migratory children who are eligible
to receive services under part A of this title may re-
ceive those services through funds provided under that
part, or through funds under this part that remain
after the agency addresses the needs described in
paragraph (1).
‘‘(b) CONSTRUCTION.—Nothing in this part shall be
construed to prohibit a local educational agency from serv-
ing migratory children simultaneously with students with
similar educational needs in the same educational settings,
where appropriate.
‘‘(c) SPECIAL RULE.—Notwithstanding section 1114,
a school that receives funds under this part shall continue
to address the identified needs described in subsection
(a)(1).’’.
SEC. 124. COORDINATION OF MIGRANT EDUCATION ACTIVI-
TIES.
(a) 
DURATION.—Section 
1308(a)(2) 
(20 
U.S.C.
6398(a)(2)) is amended by striking ‘‘subpart’’ and inserting
‘‘subsection’’.
(b) STUDENT RECORDS.—Section 1308(b) (20 U.S.C.
6398(b)) is amended to read as follows:
‘‘(b) STUDENT RECORDS.—
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‘‘(1) ASSISTANCE.—The Secretary shall assist
States in developing effective methods for the transfer
of student records and in determining the number of
migratory children in each State. The Secretary, in
consultation with the States, shall determine the min-
imum data elements that each State receiving funds
under this part shall collect and maintain. The Sec-
retary shall assist States to implement a system of
linking their student record transfer systems for the
purpose of electronic records maintenance and trans-
fer for migrant students.
‘‘(2) NO
COST
FOR
CERTAIN
TRANSFERS.—A
State educational agency or local educational agency
receiving assistance under this part shall make stu-
dent records available to another State or local edu-
cational agency that requests the records at no cost to
the requesting agency, if the request is made in order
to meet the needs of a migratory child.’’.
(c) AVAILABILITY OF FUNDS.—Section 1308(c) (20
U.S.C. 6398(c)) is amended by striking ‘‘$6,000,000’’ and
inserting ‘‘$10,000,000’’.
(d) INCENTIVE GRANTS.—Section 1308(d) (20 U.S.C.
6398(d)) is amended to read as follows:
‘‘(d) INCENTIVE GRANTS.—From the amounts made
available to carry out this section for any fiscal year, the
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Secretary may reserve not more than $3,000,000 to award
grants of not more than $250,000 on a competitive basis
to State educational agencies that propose a consortium ar-
rangement with another State or other appropriate entity
that the Secretary determines, pursuant to criteria that the
Secretary shall establish, will improve the delivery of serv-
ices to migratory children whose education is interrupted.’’.
PART D—NEGLECTED OR DELINQUENT YOUTH
SEC. 131. NEGLECTED OR DELINQUENT YOUTH.
The heading for part D of title I is amended to read
as follows:
‘‘PART D—PREVENTION AND INTERVENTION PRO-
GRAMS FOR NEGLECTED OR DELINQUENT
CHILDREN AND YOUTH’’.
SEC. 132. FINDINGS.
Section 1401(a) (20 U.S.C. 6421(a)) is amended by
striking paragraphs (6) through (9) and inserting the fol-
lowing:
‘‘(6) Youth returning from correctional facilities
need to be involved in programs that provide them
with high-level skills and other support to help them
stay in school and complete their education.
‘‘(7) Pregnant and parenting teenagers are a
high-at-risk group for dropping out of school and
should be targeted by dropout prevention programs.’’.
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SEC. 133. ALLOCATION OF FUNDS.
Section 1412(b) (20 U.S.C. 6432(b)) is amended to
read as follows:
‘‘(b) SUBGRANTS TO STATE AGENCIES IN PUERTO
RICO.—
‘‘(1) IN
GENERAL.—For each fiscal year, the
amount of the subgrant which a State agency in the
Commonwealth of Puerto Rico shall be eligible to re-
ceive under this part shall be the amount determined
by multiplying the number of children counted under
subparagraph (a)(1)(A) for the Commonwealth of
Puerto Rico by the product of—
‘‘(A) the percentage which the average per-
pupil expenditure in the Commonwealth of Puer-
to Rico is of the lowest average per-pupil expend-
iture of any of the 50 States; and
‘‘(B) 32 percent of the average per-pupil ex-
penditure in the United States.
‘‘(2) MINIMUM PERCENTAGE.—The percentage in
paragraph (1)(A) shall not be less than—
‘‘(A) for fiscal year 2002, 77.5 percent;
‘‘(B) for fiscal year 2003, 80.0 percent;
‘‘(C) for fiscal year 2004, 82.5 percent; and
‘‘(D) for fiscal year 2005 and succeeding
fiscal years, 85.0 percent.
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‘‘(3) LIMITATION.—If the application of para-
graph (2) 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 fis-
cal year, the percentage in paragraph (1) shall be the
greater of the percentage in paragraph (1)(A) or the
percentage used for the preceding fiscal year.’’.
SEC. 134. STATE PLAN AND STATE AGENCY APPLICATIONS.
Section 1414 (20 U.S.C. 6434) is amended to read as
follows:
‘‘SEC. 1414. STATE PLAN AND STATE AGENCY APPLICA-
TIONS.
‘‘(a) STATE PLAN.—
‘‘(1) IN
GENERAL.—Each State educational
agency that desires to receive a grant under this part
shall submit, for approval by the Secretary, a plan
for meeting the educational needs of neglected and de-
linquent youth, for assisting in their transition from
institutions to locally operated programs, and which
is integrated with other programs under this Act or
other Acts, as appropriate, consistent with section
8306.
‘‘(2) CONTENTS.—Each such State plan shall—
‘‘(A) describe the program goals, objectives,
and performance measures established by the
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State that will be used to assess the effectiveness
of the program in improving academic and voca-
tional and technical skills of children in the pro-
gram;
‘‘(B) provide that, to the extent feasible,
such children will have the same opportunities to
learn as such children would have if such chil-
dren were in the schools of local educational
agencies in the State; and
‘‘(C) contain assurances that the State edu-
cational agency will—
‘‘(i) ensure that programs assisted
under this part will be carried out in ac-
cordance with the State plan described in
this subsection;
‘‘(ii) carry out the evaluation require-
ments of section 1416;
‘‘(iii) ensure that the State agencies re-
ceiving subgrants under this subpart com-
ply with all applicable statutory and regu-
latory requirements; and
‘‘(iv) provide such other information as
the Secretary may reasonably require.
‘‘(3) DURATION OF THE PLAN.—Each such State
plan shall—
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‘‘(A) remain in effect for the duration of the
State’s participation under this part; and
‘‘(B) be periodically reviewed and revised
by the State, as necessary, to reflect changes in
the State’s strategies and programs under this
part.
‘‘(b) SECRETARIAL APPROVAL AND PEER REVIEW.—
‘‘(1) SECRETARIAL
APPROVAL.—The Secretary
shall approve each State plan that meets the require-
ments of this part.
‘‘(2) PEER REVIEW.—The Secretary may review
any State plan with the assistance and advice of in-
dividuals with relevant expertise.
‘‘(c) STATE AGENCY APPLICATIONS.—Any State agen-
cy that desires to receive funds to carry out a program
under this part shall submit an application to the State
educational agency that—
‘‘(1) describes the procedures to be used, con-
sistent with the State plan under section 1111, to as-
sess the educational needs of the children to be served;
‘‘(2) provides assurances that in making services
available to youth in adult correctional facilities, pri-
ority will be given to such youth who are likely to
complete incarceration within a 2-year period;
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‘‘(3) describes the program, including a budget
for the first year of the program, with annual updates
to be provided to the State educational agency;
‘‘(4) describes how the program will meet the
goals and objectives of the State plan under this sub-
part;
‘‘(5) describes how the State agency will consult
with experts and provide the necessary training for
appropriate staff, to ensure that the planning and op-
eration of institution-wide projects under section 1416
are of high quality;
‘‘(6) describes how the agency will carry out the
evaluation requirements of section 8651 and how the
results of the most recent evaluation are used to plan
and improve the program;
‘‘(7) includes data showing that the agency has
maintained fiscal effort required of a local edu-
cational agency, in accordance with section 8501;
‘‘(8) describes how the programs will be coordi-
nated with other appropriate State and Federal pro-
grams, such as job training programs, vocational and
technical education programs, State and local drop-
out prevention programs, and special education pro-
grams;
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‘‘(9) describes how States will encourage correc-
tional facilities receiving funds under this subpart to
coordinate with local educational agencies or alter-
native education programs attended by incarcerated
youth prior to their incarceration to ensure that stu-
dent assessments and appropriate academic records
are shared jointly between the correctional facility
and the local educational agency or alternative edu-
cation program;
‘‘(10) describes how appropriate professional de-
velopment will be provided to teachers and other staff;
‘‘(11) designates an individual in each affected
institution to be responsible for issues relating to the
transition of children and youth from the institution
to locally operated programs;
‘‘(12) describes how the agency will endeavor to
coordinate with businesses for training and men-
toring for participating youth;
‘‘(13) provides assurances that the agency will
assist in locating alternative programs through which
students can continue their education if students are
not returning to school after leaving the correctional
facility;
‘‘(14) provides assurances that the agency will
work with parents to secure parents’ assistance in im-
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proving the educational achievement of their children
and preventing their children’s further involvement in
delinquent activities;
‘‘(15) provides assurances that the agency works
with special education youth in order to meet an ex-
isting individualized education program and an as-
surance that the agency will notify the youth’s local
school if such youth—
‘‘(A) is identified as in need of special edu-
cation services while the youth is in the facility;
and
‘‘(B) intends to return to the local school;
‘‘(16) provides assurances that the agency will
work with youth who dropped out of school before en-
tering the facility to encourage the youth to reenter
school once the term of incarceration has been com-
pleted or provide the youth with the skills necessary
to gain employment, continue the education of the
youth, or achieve a secondary school diploma or the
recognized equivalent if the youth does not intend to
return to school;
‘‘(17) provides assurances that teachers and other
qualified staff are also trained to work with children
with disabilities and other students with special
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needs, taking into consideration the unique needs of
such students;
‘‘(18) describes any additional services to be pro-
vided to youth, such as career counseling, distance
learning, and assistance in securing student loans
and grants; and
‘‘(19) provides assurances that the program
under this subpart will be coordinated with any pro-
grams operated under the Juvenile Justice and Delin-
quency Prevention Act of 1974 (42 U.S.C. 5601 et
seq.) or other comparable programs, if applicable.’’.
SEC. 135. USE OF FUNDS.
Section 1415(a) (20 U.S.C. 6435(a)) is amended—
(1) in paragraph (1)(B), by inserting ‘‘, voca-
tional and technical training’’ after ‘‘secondary school
completion’’;
(2) in paragraph (2)(B)—
(A) in clause (i), by inserting ‘‘and’’ after
the semicolon;
(B) in clause (ii), by striking ‘‘; and’’ and
inserting a semicolon; and
(C) by striking clause (iii);
(3) in paragraph (2)(C), by striking ‘‘part F of
this title’’ and inserting ‘‘part H’’; and
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(4) in paragraph (2)(D), by striking ‘‘section
14701’’ and inserting ‘‘section 8651’’.
SEC. 136. TRANSITION SERVICES.
Section 1418(a) (20 U.S.C. 6438(a)) is amended by
striking ‘‘10 percent’’ and inserting ‘‘15 percent’’.
SEC. 137. PURPOSE.
Section 1421(3) (20 U.S.C. 6451(3)) is amended to
read as follows:
‘‘(3) operate programs in local schools for youth
returning from correctional facilities and programs
which may also serve youth at risk of dropping out
of school.’’.
SEC. 138. PROGRAMS OPERATED BY LOCAL EDUCATIONAL
AGENCIES.
Section 1422 (20 U.S.C. 6452) is amended—
(1) in subsection (a), by striking ‘‘retained’’;
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b) SPECIAL RULE.—A local educational agency
which includes a correctional facility that operates a school
is not required to operate a program of support for children
returning from such school to a school not operated by a
correctional agency but served by such local educational
agency if more than 30 percent of the youth attending the
school operated by the correctional facility will reside out-
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side the boundaries of the local educational agency after
leaving such facility.’’; and
(3) by adding at the end the following:
‘‘(d) TRANSITIONAL AND ACADEMIC SERVICES.—Tran-
sitional and supportive programs operated in local edu-
cational agencies under this subpart shall be designed pri-
marily to meet the transitional and academic needs of stu-
dents returning to local educational agencies or alternative
education programs from correctional facilities. Services to
students at risk of dropping out of school shall not have
a negative impact on meeting the transitional and aca-
demic needs of the students returning from correctional fa-
cilities.’’.
SEC. 139. LOCAL EDUCATIONAL AGENCY APPLICATIONS.
Section 1423 (20 U.S.C. 6453) is amended by striking
paragraphs (4) through (9) and inserting the following:
‘‘(4) a description of the program operated by
participating schools for children returning from cor-
rectional facilities and the types of services that such
schools will provide such youth and other at-risk
youth;
‘‘(5) a description of the characteristics (includ-
ing learning difficulties, substance abuse problems,
and other special needs) of the youth who will be re-
turning from correctional facilities and, as appro-
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priate, other at-risk youth expected to be served by the
program and how the school will coordinate existing
educational programs to meet the unique educational
needs of such youth;
‘‘(6) as appropriate, a description of how schools
will coordinate with existing social, health, and other
services to meet the needs of students returning from
correctional facilities, students at risk of dropping out
of school, and other participating students, including
prenatal health care and nutrition services related to
the health of the parent and child, parenting and
child development classes, child care, targeted reentry
and outreach programs, referrals to community re-
sources, and scheduling flexibility;
‘‘(7) as appropriate, a description of any part-
nerships with local businesses to develop training,
curriculum-based youth entrepreneurship education,
and mentoring services for participating students;
‘‘(8) as appropriate, a description of how pro-
grams will involve parents in efforts to improve the
educational achievement of their children, prevent the
involvement of their children in delinquent activities,
and encourage their children to remain in school and
complete their education;
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‘‘(9) a description of how the program under this
subpart will be coordinated with other Federal, State,
and local programs, such as job training programs
and vocational and technical education programs
serving this at-risk population of youth.’’.
SEC. 140. USES OF FUNDS.
Section 1424 (20 U.S.C. 6454) is amended by striking
paragraphs (1) through (3) and inserting the following:
‘‘(1) programs that serve youth returning from
correctional facilities to local schools, to assist in the
transition of such youth to the school environment
and help them remain in school in order to complete
their education;
‘‘(2) providing assistance to other youth at risk
of dropping out of school, including pregnant and
parenting teenagers;
‘‘(3) the coordination of social, health, and other
services, including day care, for participating youth,
if the provision of such services will improve the like-
lihood that such youth will complete their education;
‘‘(4) special programs to meet the unique aca-
demic needs of participating youth, including voca-
tional and technical education, special education, ca-
reer counseling, curriculum-based youth entrepreneur-
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ship education, and assistance in securing student
loans or grants for postsecondary education; and
‘‘(5) programs providing mentoring and peer
mediation.’’.
SEC. 141. PROGRAM REQUIREMENTS.
Section 1425 (20 U.S.C. 6455) is amended—
(1) in the section heading, by striking ‘‘THIS
SECTION’’ and inserting ‘‘this subpart’’;
(2) in the matter preceding paragraph (1), by
striking ‘‘this section’’ and inserting ‘‘this subpart’’;
(3) in paragraph (1), by striking ‘‘where feasible,
ensure educational programs’’ and inserting ‘‘to the
extent practicable, ensure that educational programs’’;
(4) in paragraphs (3) and (8), by striking
‘‘where feasible,’’ and inserting ‘‘to the extent prac-
ticable,’’;
(5) in paragraph (9)—
(A) by striking ‘‘this program’’ and insert-
ing ‘‘this subpart’’;
(B) by inserting ‘‘and technical’’ after ‘‘vo-
cational’’; and
(C) by striking ‘‘title I of the Workforce In-
vestment Act of 1998’’ and inserting ‘‘other job
training programs’’;
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(6) in paragraph (10), by inserting ‘‘(42 U.S.C.
5601 et seq.)’’ after ‘‘Juvenile Justice and Delin-
quency Prevention Act of 1974’’; and
(7) by amending paragraph (11) to read as fol-
lows:
‘‘(11) if appropriate, work with local businesses
to develop training, curriculum-based youth entrepre-
neurship education, and mentoring programs for
youth.’’.
SEC. 142. PROGRAM EVALUATIONS.
Section 1431(a) (20 U.S.C. 6471(a)) is amended by
striking ‘‘sex, and if feasible,’’ and inserting ‘‘gender,’’.
PART E—FEDERAL EVALUATIONS AND
DEMONSTRATIONS
SEC. 151. EVALUATIONS.
Section 1501 (20 U.S.C. 6491) is amended to read as
follows:
‘‘SEC. 1501. EVALUATIONS.
‘‘(a) NATIONAL ASSESSMENT.—
‘‘(1) IN GENERAL.—In accordance with this sec-
tion, the Secretary shall conduct a national assess-
ment of programs assisted under this title.
‘‘(2) ISSUES TO BE EXAMINED.—In conducting
the assessment under this subsection, the Secretary
shall examine—
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‘‘(A) the implementation of programs as-
sisted under this title and the impact of such im-
plementation on increasing student academic
achievement, particularly schools with high con-
centrations of children living in poverty;
‘‘(B) the implementation of State standards,
assessments, and accountability systems devel-
oped under this title and the impact of such im-
plementation on educational programs and in-
struction at the local level;
‘‘(C) the impact of schoolwide programs and
targeted assistance programs under this title on
improving student academic achievement;
‘‘(D) the extent to which varying models of
comprehensive school reform are funded under
this title, and the effect of the implementation of
such models on improving achievement of dis-
advantaged students;
‘‘(E) the costs as compared to the benefits of
the activities assisted under this title;
‘‘(F) the impact of school choice options
under section 1116 on the academic achievement
of disadvantaged students, on schools in school
improvement, and on schools from which stu-
dents have transferred under such options;
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‘‘(i) in order to ensure diversity, a ma-
jority of the number of individuals ap-
pointed under subparagraph (A)(i) rep-
resent disciplines or programs outside the
field of education; and
‘‘(ii) the total number of the individ-
uals appointed under subparagraph (A)(ii)
or (A)(iii) does not exceed 1⁄3 of the total
number of the individuals appointed under
this paragraph.
‘‘(3) FUNCTIONS.—The Review Panel shall con-
sult with and advise the Secretary—
‘‘(A) to ensure that the assessment con-
ducted under subsection (a) and the study con-
ducted under subsection (c)—
‘‘(i) adhere to the highest possible
standards of quality with respect to research
design, statistical analysis, and the dissemi-
nation of findings; and
‘‘(ii) use valid and reliable measures to
document program implementation and im-
pacts; and
‘‘(B) to ensure—
‘‘(i) that the final report described in
subsection (a)(5)(B) is reviewed not later
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than 120 days after its completion by not
less than 2 independent experts in program
evaluation;
‘‘(ii) that such experts evaluate and
comment on the degree to which the report
complies with subsection (a); and
‘‘(iii) that the comments of such ex-
perts are transmitted with the report under
subsection (a)(5)(B).’’.
SEC. 152. DEMONSTRATIONS OF INNOVATIVE PRACTICES.
(a) IN GENERAL.—Section 1502 (20 U.S.C. 6492) is
amended—
(1) by redesignating subsection (b) as subsection
(c);
(2) by striking in subsection (a) ‘‘(2) EVALUA-
TION.—The Secretary’’ and inserting ‘‘(b) EVALUA-
TION.—The Secretary’’ and by moving such sub-
section (b) 2 ems to the left;
(3) by striking in subsection (a) ‘‘Such projects
shall include promising’’ and all that follows through
‘‘career guidance opportunities.’’;
(4) by striking ‘‘student performance standards’’
and inserting ‘‘student achievement standards’’;
(5) by inserting ‘‘academic’’ after ‘‘to meet chal-
lenging State’’; and
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Unless the member is also selected to participate in the Pro-
gram under section 2042, a member receiving placement as-
sistance and referral services under the authority of this
subsection is not eligible for financial assistance under sec-
tion 2043.
‘‘SEC. 2042. RECRUITMENT AND SELECTION OF PROGRAM
PARTICIPANTS.
‘‘(a) ELIGIBLE MEMBERS.—The following members
and former members of the Armed Forces are eligible for
selection to participate in the Troops-to-Teachers Program:
‘‘(1) Any member who—
‘‘(A) on or after October 1, 1999, becomes
entitled to retired or retainer pay in the manner
provided in title 10 or title 14, United States
Code; or
‘‘(B) on or after the date of the enactment
of the No Child Left Behind Act of 2001, has an
approved date of voluntary retirement and, as of
the date the member submits an application to
participate in the Program, has one year or less
of active duty remaining before retirement.
‘‘(2) Any member who, on or after the date of the
enactment of the No Child Left Behind Act of 2001—
‘‘(A) is separated or released from active
duty after six or more years of continuous active