area, race, gender, geographic location, or other cri-
teria as the State deems appropriate. 
(4) AVAILABILITY
OF
REPORT.—Each State 
shall make the report described in this subsection 
available to parents and members of the public 
throughout that State. 
SEC. 4. LOCAL AWARDS. 
(a) DETERMINATION OF AMOUNT OF FUNDS.—
(1) IN GENERAL.—The individual or entity in 
the State that is responsible for the State adminis-
tration of Federal education funds pursuant to State 
law of each State receiving assistance under this 
Act, in consultation with the Governor of such State, 
the chief State school officer of such State, rep-
resentatives from the State legislature, and rep-
resentatives from local educational agencies within 
such State, shall develop a formula for the allocation 
of funds described in section 3, to local educational 
agencies, taking into consideration—
(A) poverty rates within each local edu-
cational agency; 
(B) children living in sparsely populated 
areas; 
(C) an equitable distribution of funds 
among urban, rural, and suburban areas;
(D) children whose education imposes a 
higher than average cost per child; and 
(E) such other factors as considered appro-
priate. 
(2) HOLD
HARMLESS.—Subject to paragraph 
(3), no local educational agency shall receive an 
award under this subsection for any fiscal year in an 
amount that is less than the sum of the following: 
(A) The aggregate amount the local edu-
cational agency received to carry out programs 
or activities for fiscal year 2005 under the fol-
lowing provisions (as in effect on the day pre-
ceding the date of the enactment of this Act): 
(i) Part F of title I of the Elementary 
and Secondary Education Act of 1965. 
(ii) Part A of title II of the Elemen-
tary and Secondary Education Act of 
1965. 
(iii) Subpart 1 of part D of title II of 
the Elementary and Secondary Education 
Act of 1965. 
(iv) Part A of title V of the Elemen-
tary and Secondary Education Act of 
1965.
(v) Subtitle B of title VII of the 
McKinney-Vento Homeless Assistance Act. 
(B) For each of fiscal years 2006 through 
2010, the aggregate amount the local edu-
cational agency is eligible to receive during the 
fiscal year pursuant to all multiyear awards 
made prior to the date of enactment of this Act 
under any program that is repealed by section 
8 and is not listed in subparagraph (A). 
(3) INSUFFICIENT FUNDS.—If the amount allo-
cated to a State to carry out this Act for any fiscal 
year is insufficient to pay the full amounts that all 
local educational agencies in such State are eligible 
to receive under paragraph (2) for such year, the 
State shall ratably reduce such amounts for such 
year. 
(b) LOCAL USES OF FUNDS.—Funds made available 
under this section to a local educational agency shall be 
used for the following classroom services and activities: 
(1) Programs for the acquisition and use of in-
structional and educational materials, including li-
brary services and materials (including media mate-
rials), assessments, reference materials, and other 
curricular materials which are tied to high academic 
standards and which will be used to improve student
achievement and which are part of an overall edu-
cation reform program. 
(2) Professional development for instructional 
staff. 
(3) Programs to improve the higher order 
thinking skills of disadvantaged elementary and sec-
ondary school students and to prevent students from 
dropping out of school. 
(4) Efforts to lengthen the school day or the 
school year. 
(5) Programs to combat illiteracy in the student 
population. 
(6) Programs to provide for the educational 
needs of gifted and talented children. 
(7) Promising education reform projects that 
are tied to State student content and performance 
standards. 
(8) Carrying out comprehensive school reform 
programs that are based on reliable research. 
(9) Programs for homeless children and youth. 
(10) Programs that are built upon partnerships 
between local educational agencies and institutions 
of higher education, educational service agencies, li-
braries, businesses, regional educational laboratories, 
or other educational entities, for the purpose of pro-
viding educational services consistent with this sec-
tion. 
(11) The acquisition of books, materials and 
equipment, payment of compensation of instructional 
staff, and instructional activities that are necessary 
for the conduct of programs in magnet schools. 
(12) Programs to promote academic achieve-
ment among women and girls. 
(13) Programs to provide for the educational 
needs of children with limited English proficiency or 
who are American Indian, Alaska Native, or Native 
Hawaiian. 
(14) Activities to provide the academic support, 
enrichment, and motivation to enable all students to 
reach high State standards. 
(15) Efforts to reduce the pupil-teacher ratio. 
(16) Projects and programs which assure the 
participation in mainstream settings in arts and 
education programs of individuals with disabilities. 
(17) Projects and programs to integrate arts 
education into the regular elementary and secondary 
school curriculum. 
(18) Programs designed to educate students 
about the history and principles of the Constitution