Act), with matching funds from institutions of higher 
education and a commitment to continue new faculty 
positions when Federal funding ends. 
‘‘(15) SUBJECT
AREA
EVALUATION.—Assessing 
the performance of teacher preparation programs 
within institutions of higher education in the State 
using an assessment which provides comparisons 
across such schools in the State based upon indicators 
including teacher candidate knowledge in subject 
areas in which such candidate has been prepared to 
teach. Such information shall be made publicly avail-
able and widely disseminated. 
‘‘(e) EVALUATION.— 
‘‘(1) EVALUATION
SYSTEM.—An eligible State 
that receives a grant under this section shall develop 
and utilize a system to evaluate annually the effec-
tiveness of teacher preparation programs and profes-
sional development activities within the State in pro-
ducing gains in— 
‘‘(A) the teacher’s annual contribution to 
improving student academic achievement, as 
measured by State academic assessments re-
quired under section 1111(b)(3) of the Elemen-
tary and Secondary Education Act of 1965 (20 
U.S.C. 6311(b)(3)); and
‘‘(B) teacher mastery of the academic sub-
jects they teach, as measured by pre- and post- 
participation tests of teacher knowledge, as ap-
propriate. 
‘‘(2) USE OF EVALUATION SYSTEM.—Such eval-
uation system shall be used by the State to evaluate— 
‘‘(A) activities carried out using funds pro-
vided under this section; and 
‘‘(B) the quality of its teacher education 
programs. 
‘‘(3) PUBLIC REPORTING.—The State shall make 
the information described in paragraph (1) widely 
available through public means, such as posting on 
the Internet, distribution to the media, and distribu-
tion through public agencies. 
‘‘SEC. 203. PARTNERSHIP GRANTS. 
‘‘(a) GRANTS.—From amounts made available under 
section 210(2) for a fiscal year, the Secretary is authorized 
to award grants under this section, on a competitive basis, 
to eligible partnerships to enable the eligible partnerships 
to carry out the activities described in subsections (d) and 
(e). 
‘‘(b) DEFINITIONS.— 
‘‘(1) ELIGIBLE
PARTNERSHIPS.—In this part, 
the term ‘eligible partnership’ means an entity that—
‘‘(A) shall include— 
‘‘(i) a partner institution; 
‘‘(ii) a school of arts and sciences; 
‘‘(iii) a high-need local educational 
agency; and 
‘‘(iv) a public or private educational 
organization; and 
‘‘(B) may include a Governor, State edu-
cational agency, the State board of education, the 
State agency for higher education, an institution 
of higher education not described in subpara-
graph (A), a public charter school, a public or 
private elementary school or secondary school, a 
public or private educational organization, a 
business, a science-, mathematics-, or technology- 
oriented entity, a faith-based or community or-
ganization, a prekindergarten program, a teach-
er organization, an education service agency, a 
consortia of local educational agencies, or a non-
profit telecommunications entity. 
‘‘(2) PARTNER INSTITUTION.—In this section, the 
term ‘partner institution’ means an institution of 
higher education, the teacher training program of 
which demonstrates that—
‘‘(A) graduates from the teacher training 
program exhibit strong performance on State-de-
termined qualifying assessments for new teachers 
through— 
‘‘(i) demonstrating that the graduates 
of the program who intend to enter the field 
of teaching have passed all of the applicable 
State qualification assessments for new 
teachers, which shall include an assessment 
of each prospective teacher’s subject matter 
knowledge in the content area or areas in 
which the teacher intends to teach; or 
‘‘(ii) being ranked among the highest- 
performing teacher preparation programs 
in the State as determined by the State— 
‘‘(I) using criteria consistent with 
the requirements for the State report 
card under section 207(a); and 
‘‘(II) using the State report card 
on teacher preparation required under 
section 207(a); or 
‘‘(B) the teacher training program requires 
all the students of the program to participate in 
intensive clinical experience, to meet high aca-
demic standards, and—
‘‘(i) in the case of secondary school 
candidates, to successfully complete an aca-
demic major in the subject area in which 
the candidate intends to teach or to dem-
onstrate competence through a high level of 
performance in relevant content areas; and 
‘‘(ii) in the case of elementary school 
candidates, to successfully complete an aca-
demic major in the arts and sciences or to 
demonstrate competence through a high level 
of performance in core academic subject 
areas. 
‘‘(c) APPLICATION.—Each eligible partnership desiring 
a grant under this section shall submit an application to 
the Secretary at such time, in such manner, and accom-
panied by such information as the Secretary may require. 
Each such application shall— 
‘‘(1) contain a needs assessment of all the part-
ners with respect to teaching and learning and a de-
scription of how the partnership will coordinate with 
other teacher training or professional development 
programs, and how the activities of the partnership 
will be consistent with State, local, and other edu-
cation reform activities that promote student aca-
demic achievement;
‘‘(2) contain a resource assessment that describes 
the resources available to the partnership, the in-
tended use of the grant funds, including a description 
of how the grant funds will be used in accordance 
with subsection (f), and the commitment of the re-
sources of the partnership to the activities assisted 
under this part, including financial support, faculty 
participation, time commitments, and continuation of 
the activities when the grant ends; 
‘‘(3) contain a description of— 
‘‘(A) how the partnership will meet the pur-
poses of this part; 
‘‘(B) how the partnership will carry out the 
activities required under subsection (d) and any 
permissible activities under subsection (e); 
‘‘(C) the partnership’s evaluation plan pur-
suant to section 206(b); 
‘‘(D) how faculty of the teacher preparation 
program at the partner institution will serve, 
over the term of the grant, with highly qualified 
teachers in the classrooms of the high-need local 
educational agency included in the partnership; 
‘‘(E) how the partnership will ensure that 
teachers, principals, and superintendents in pri-
vate elementary and secondary schools located in
the geographic areas served by an eligible part-
nership under this section will participate equi-
tably in accordance with section 9501 of the Ele-
mentary and Secondary Education Act of 1965 
(20 U.S.C. 7881); 
‘‘(F) how the partnership will design and 
implement a clinical program component that 
includes close supervision of student teachers by 
faculty of the teacher preparation program at the 
partner institution and mentor teachers; 
‘‘(G) how the partnership will design and 
implement an induction program to support all 
new teachers through the first 3 years of teaching 
that includes mentors who are trained and com-
pensated by the partnership for their work with 
new teachers; and 
‘‘(H) how the partnership will collect, ana-
lyze, and use data on the retention of all teachers 
in schools located in the geographic areas served 
by the partnership to evaluate the effectiveness of 
its teacher support system; and 
‘‘(4) contain a certification from the high-need 
local educational agency included in the partnership 
that it has reviewed the application and determined
that the grant proposed will comply with subsection 
(f). 
‘‘(d) REQUIRED USES OF FUNDS.—An eligible part-
nership that receives a grant under this section shall use 
the grant funds to reform teacher preparation requirements, 
to coordinate with State activities under section 2113(c) of 
the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6613(c)), and to ensure that current and future 
teachers are highly qualified, by carrying out one or more 
of the following activities: 
‘‘(1) REFORMS.—Implementing reforms within 
teacher preparation programs to ensure that such 
programs are preparing teachers who are highly 
qualified, are able to understand scientifically based 
research and its applicability, and are able to use ad-
vanced technology effectively in the classroom, includ-
ing use for instructional techniques to improve stu-
dent academic achievement, by— 
‘‘(A) retraining faculty; and 
‘‘(B) designing (or redesigning) teacher 
preparation programs so they— 
‘‘(i) are based on rigorous academic 
content, scientifically based research (in-
cluding scientifically based reading re-
search), and challenging State student aca-
demic content standards; and 
‘‘(ii) promote strong teaching skills. 
‘‘(2) CLINICAL EXPERIENCE AND INTERACTION.— 
Providing sustained and high-quality preservice and 
in-service clinical experience, including the mentoring 
of prospective teachers by exemplary teachers, sub-
stantially increasing interaction between faculty at 
institutions of higher education and new and experi-
enced teachers, principals, and other administrators 
at elementary schools or secondary schools, and pro-
viding support for teachers, including preparation 
time and release time, for such interaction. 
‘‘(3) PROFESSIONAL
DEVELOPMENT.—Creating 
opportunities for enhanced and ongoing professional 
development that improves the academic content 
knowledge of teachers in the subject areas in which the 
teachers are certified to teach or in which the teachers 
are working toward certification to teach, and that 
promotes strong teaching skills. 
‘‘(4) TEACHER
PREPARATION.—Developing, or 
assisting local educational agencies in developing, 
professional development activities that— 
‘‘(A) provide training in how to teach and 
address the needs of students with different
learning styles, particularly students with dis-
abilities, limited English proficient students, 
gifted and talented students, and students with 
special learning needs; and 
‘‘(B) provide training in methods of— 
‘‘(i) improving student behavior in the 
classroom; and 
‘‘(ii) identifying early and appropriate 
interventions to help students described in 
subparagraph (A) learn. 
‘‘(e) ALLOWABLE USES OF FUNDS.—An eligible part-
nership that receives a grant under this section may use 
such funds to carry out the following activities: 
‘‘(1) ALTERNATIVES TO TRADITIONAL TEACHER 
PREPARATION AND STATE CERTIFICATION.—Providing 
prospective teachers with alternative routes to State 
certification and traditional preparation to become 
highly qualified teachers through— 
‘‘(A) innovative approaches that reduce un-
necessary barriers to teacher preparation pro-
ducing highly qualified teachers, which may in-
clude articulation agreements between institu-
tions of higher education; 
‘‘(B) programs that provide support during 
a teacher’s initial years in the profession; and
‘‘(C) alternative routes to State certification 
of teachers for qualified individuals, including 
mid-career professionals from other occupations, 
former military personnel, and recent college 
graduates with records of academic distinction. 
‘‘(2) 
DISSEMINATION
AND
COORDINATION.— 
Broadly disseminating information on effective prac-
tices used by the partnership, and coordinating with 
the activities of the Governor, State board of edu-
cation, State higher education agency, and State edu-
cational agency, as appropriate. 
‘‘(3) MANAGERIAL AND LEADERSHIP SKILLS.— 
Developing and implementing professional develop-
ment programs for principals and superintendents 
that enable them to be effective school leaders and pre-
pare all students to meet challenging State academic 
content and student academic achievement standards. 
‘‘(4) TEACHER RECRUITMENT.—Activities— 
‘‘(A) to encourage students to become highly 
qualified teachers, such as extracurricular en-
richment activities; and 
‘‘(B) activities described in section 204(d). 
‘‘(5) CLINICAL EXPERIENCE IN SCIENCE, MATHE-
MATICS, AND TECHNOLOGY.—Creating opportunities 
for clinical experience and training, by participation
in the business, research, and work environments with 
professionals, in areas relating to science, mathe-
matics, and technology for teachers and prospective 
teachers, including opportunities for use of laboratory 
equipment, in order for the teacher to return to the 
classroom for at least 2 years and provide instruction 
that will raise student academic achievement. 
‘‘(6) COORDINATION
WITH
COMMUNITY
COL-
LEGES.—Coordinating with community colleges to 
implement teacher preparation programs, including 
through distance learning or articulation agreements, 
for the purposes of allowing prospective teachers— 
‘‘(A) to attain a bachelor’s degree and State 
certification or licensure; and 
‘‘(B) to become highly qualified teachers. 
‘‘(7) TEACHER
MENTORING.—Establishing or 
implementing a teacher mentoring program that— 
‘‘(A) includes minimum qualifications for 
mentors; 
‘‘(B) provides training and stipends for 
mentors; 
‘‘(C) provides mentoring programs for 
teachers in their first 3 years of teaching; 
‘‘(D) provides regular and ongoing opportu-
nities for mentors and mentees to observe each
other’s teaching methods in classroom settings 
during the school day; 
‘‘(E) establishes an evaluation and account-
ability plan for activities conducted under this 
paragraph that includes rigorous objectives to 
measure the impact of such activities; and 
‘‘(F) provides for a report to the Secretary 
on an annual basis regarding the partnership’s 
progress in meeting the objectives described in 
subparagraph (E). 
‘‘(8) COMPUTER SOFTWARE FOR MULTILINGUAL 
EDUCATION.—Training teachers to use computer soft-
ware for multilingual education to address the needs 
of limited English proficient students. 
‘‘(9) GIFTED
AND
TALENTED
STUDENTS.—In-
creasing the knowledge and skills of preservice teach-
ers participating in activities under subsection (d) in 
the educational and related needs of gifted and tal-
ented students by, among other strategies, infusing 
teacher coursework with units on the characteristics of 
high-ability learners, using assessments to identify 
preexisting knowledge and skills among students, and 
developing teaching strategies that are driven by the 
learner’s progress.
‘‘(10) REDUCING
THE
SHORTAGE
OF
HIGHLY 
QUALIFIED SPECIAL EDUCATION, MATH, AND SCIENCE 
TEACHERS.—Increasing the number of highly quali-
fied special education, math, and science teachers (as 
defined by section 9101 of the Elementary and Sec-
ondary Education Act or section 602 of the Individ-
uals with Disabilities Education Act) through such 
activities as recruitment, scholarships for tuition, and 
new teacher mentoring. 
‘‘(f) SPECIAL RULE.—At least 50 percent of the funds 
made available to an eligible partnership under this section 
shall be used directly to benefit the high-need local edu-
cational agency included in the partnership. Any entity de-
scribed in subsection (b)(1)(A) may be the fiscal agent 
under this section. 
‘‘(g) CONSTRUCTION.—Nothing in this section shall be 
construed to prohibit an eligible partnership from using 
grant funds to coordinate with the activities of more than 
one Governor, State board of education, State educational 
agency, local educational agency, or State agency for higher 
education. 
‘‘(h) SUPPLEMENT, NOT SUPPLANT.—Funds made 
available under this section shall be used to supplement, 
and not supplant, other Federal, State, and local funds that
would otherwise be expended to carry out the purposes of 
this section. 
‘‘SEC. 204. TEACHER RECRUITMENT GRANTS. 
‘‘(a) PROGRAM AUTHORIZED.—From amounts made 
available under section 210(3) for a fiscal year, the Sec-
retary is authorized to award grants, on a competitive 
basis, to eligible applicants to enable the eligible applicants 
to carry out activities described in subsection (d). 
‘‘(b) ELIGIBLE APPLICANT DEFINED.—In this part, 
the term ‘eligible applicant’ means— 
‘‘(1) an eligible State described in section 202(b); 
or 
‘‘(2) an eligible partnership described in section 
203(b). 
‘‘(c) APPLICATION.—Any eligible applicant desiring to 
receive a grant under this section shall submit an applica-
tion to the Secretary at such time, in such form, and con-
taining such information as the Secretary may require, in-
cluding— 
‘‘(1) a description of the assessment that the eli-
gible applicant, and the other entities with whom the 
eligible applicant will carry out the grant activities, 
have undertaken to determine the most critical needs 
of the participating high-need local educational agen-
cies;
‘‘(2) a description of the activities the eligible 
applicant will carry out with the grant, including the 
extent to which the applicant will use funds to recruit 
minority students to become highly qualified teachers; 
and 
‘‘(3) a description of the eligible applicant’s plan 
for continuing the activities carried out with the 
grant, once Federal funding ceases. 
‘‘(d) USES OF FUNDS.—Each eligible applicant receiv-
ing a grant under this section shall use the grant funds— 
‘‘(1)(A) to award scholarships to help students, 
such as individuals who have been accepted for their 
first year, or who are enrolled in their first or second 
year, of a program of undergraduate education at an 
institution of higher education, pay the costs of tui-
tion, room, board, and other expenses of completing a 
teacher preparation program; 
‘‘(B) to provide support services, if needed to en-
able scholarship recipients— 
‘‘(i) to complete postsecondary education 
programs; or 
‘‘(ii) to transition from a career outside of 
the field of education into a teaching career; and
‘‘(C) for followup services provided to former 
scholarship recipients during the recipients first 3 
years of teaching; or 
‘‘(2) to develop and implement effective mecha-
nisms to ensure that high-need local educational agen-
cies and schools are able effectively to recruit highly 
qualified teachers. 
‘‘(e) ADDITIONAL DISCRETIONARY USES OF FUNDS.— 
In addition to the uses described in subsection (d), each eli-
gible applicant receiving a grant under this section may 
use the grant funds— 
‘‘(1) to develop and implement effective mecha-
nisms to recruit into the teaching profession employ-
ees from— 
‘‘(A) high-demand industries, including 
technology industries; and 
‘‘(B) the fields of science, mathematics, and 
engineering; 
‘‘(2) to conduct outreach and coordinate with 
inner city and rural secondary schools to encourage 
students to pursue teaching as a career; 
‘‘(3) to develop and implement dual degree pro-
grams that enable students at institutions of higher 
education to earn two undergraduate degrees concur-
rently, one of such degrees being in education and the
other in the subject matter of the student’s choosing; 
and 
‘‘(4) to recruit high achieving students, bilingual 
students, and other qualified candidates into early 
childhood education programs. 
‘‘(f) SERVICE REQUIREMENTS.— 
‘‘(1) IN GENERAL.—The Secretary shall establish 
such requirements as the Secretary determines nec-
essary to ensure that recipients of scholarships under 
this section who complete teacher education pro-
grams— 
‘‘(A) subsequently teach in a high-need local 
educational agency for a period of time equiva-
lent to— 
‘‘(i) one year; increased by 
‘‘(ii) the period for which the recipient 
received scholarship assistance; or 
‘‘(B) repay the amount of the scholarship. 
‘‘(2) USE OF REPAYMENTS.—The Secretary shall 
use any such repayments to carry out additional ac-
tivities under this section. 
‘‘(g) PRIORITY.—The Secretary shall give priority 
under this section to eligible applicants who provide an as-
surance that they will recruit a high percentage of minority 
students to become highly qualified teachers.
‘‘SEC. 205. ADMINISTRATIVE PROVISIONS. 
‘‘(a) DURATION; ONE-TIME AWARDS; PAYMENTS.— 
‘‘(1) DURATION.— 
‘‘(A) ELIGIBLE STATES AND ELIGIBLE AP-
PLICANTS.—Grants awarded to eligible States 
and eligible applicants under this part shall be 
awarded for a period not to exceed 3 years. 
‘‘(B) 
ELIGIBLE
PARTNERSHIPS.—Grants 
awarded to eligible partnerships under this part 
shall be awarded for a period of 5 years. 
‘‘(2) ONE-TIME AWARD.—An eligible partnership 
may receive a grant under each of sections 203 and 
204, as amended by the College Access and Oppor-
tunity Act of 2005, only once. 
‘‘(3) PAYMENTS.—The Secretary shall make an-
nual payments of grant funds awarded under this 
part. 
‘‘(b) PEER REVIEW.— 
‘‘(1) PANEL.—The Secretary shall provide the 
applications submitted under this part to a peer re-
view panel for evaluation. With respect to each appli-
cation, the peer review panel shall initially rec-
ommend the application for funding or for dis-
approval.
‘‘(2) PRIORITY.—In recommending applications 
to the Secretary for funding under this part, the 
panel shall— 
‘‘(A) with respect to grants under section 
202, give priority to eligible States that— 
‘‘(i) have initiatives to reform State 
teacher certification requirements that are 
based on rigorous academic content, sci-
entifically based research, including sci-
entifically based reading research, and chal-
lenging State student academic content 
standards; 
‘‘(ii) have innovative reforms to hold 
institutions of higher education with teacher 
preparation programs accountable for pre-
paring teachers who are highly qualified 
and have strong teaching skills; or 
‘‘(iii) have innovative efforts aimed at 
reducing the shortage of highly qualified 
teachers in high poverty urban and rural 
areas; and 
‘‘(B) with respect to grants under section 
203— 
‘‘(i) give priority to applications from 
broad-based eligible partnerships that in-
volve businesses and community organiza-
tions; and 
‘‘(ii) take into consideration— 
‘‘(I) providing an equitable geo-
graphic distribution of the grants 
throughout the United States; and 
‘‘(II) the potential of the proposed 
activities for creating improvement 
and positive change. 
‘‘(3) SECRETARIAL SELECTION.—The Secretary 
shall determine, based on the peer review process, 
which application shall receive funding and the 
amounts of the grants. In determining grant 
amounts, the Secretary shall take into account the 
total amount of funds available for all grants under 
this part and the types of activities proposed to be 
carried out. 
‘‘(c) MATCHING REQUIREMENTS.— 
‘‘(1) STATE GRANTS.—Each eligible State receiv-
ing a grant under section 202 or 204 shall provide, 
from non-Federal sources, an amount equal to 50 per-
cent of the amount of the grant (in cash or in kind) 
to carry out the activities supported by the grant. 
‘‘(2) PARTNERSHIP GRANTS.—Each eligible part-
nership receiving a grant under section 203 or 204
shall provide, from non-Federal sources (in cash or in 
kind), an amount equal to 25 percent of the grant for 
the first year of the grant, 35 percent of the grant for 
the second year of the grant, and 50 percent of the 
grant for each succeeding year of the grant. 
‘‘(d) LIMITATION ON ADMINISTRATIVE EXPENSES.— 
An eligible State or eligible partnership that receives a 
grant under this part may not use more than 2 percent 
of the grant funds for purposes of administering the grant. 
‘‘SEC. 206. ACCOUNTABILITY AND EVALUATION. 
‘‘(a) STATE GRANT ACCOUNTABILITY REPORT.—An el-
igible State that receives a grant under section 202 shall 
submit an annual accountability report to the Secretary 
and the authorizing committees. Such report shall include 
a description of the degree to which the eligible State, in 
using funds provided under such section, has made substan-
tial progress in meeting the following goals: 
‘‘(1) 
PERCENTAGE
OF
HIGHLY
QUALIFIED 
TEACHERS.—Increasing the percentage of highly 
qualified teachers in the State as required by section 
1119 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6319) and section 602 of the 
Individuals with Disabilities Act (20 U.S.C. 1401). 
‘‘(2) STUDENT
ACADEMIC
ACHIEVEMENT.—In-
creasing student academic achievement for all stu-
dents, which may be measured through the use of 
value-added assessments, as defined by the eligible 
State. 
‘‘(3) RAISING
STANDARDS.—Raising the State 
academic standards required to enter the teaching 
profession as a highly qualified teacher. 
‘‘(4) INITIAL CERTIFICATION OR LICENSURE.— 
Increasing success in the pass rate for initial State 
teacher certification or licensure, or increasing the 
numbers of qualified individuals being certified or li-
censed as teachers through alternative routes to cer-
tification and licensure. 
‘‘(5) DECREASING
TEACHER
SHORTAGES.—De-
creasing shortages of highly qualified teachers in poor 
urban and rural areas. 
‘‘(6) INCREASING
OPPORTUNITIES
FOR
RE-
SEARCH-BASED
PROFESSIONAL
DEVELOPMENT.—In-
creasing opportunities for enhanced and ongoing pro-
fessional development that— 
‘‘(A) improves the academic content knowl-
edge of teachers in the subject areas in which the 
teachers are certified or licensed to teach or in 
which the teachers are working toward certifi-
cation or licensure to teach; and 
‘‘(B) promotes strong teaching skills.
‘‘(7) 
TECHNOLOGY
INTEGRATION.—Increasing 
the number of teachers prepared effectively to inte-
grate technology into curricula and instruction and 
who use technology to collect, manage, and analyze 
data to improve teaching, learning, decisionmaking, 
and parental involvement for the purpose of increas-
ing student academic achievement. 
‘‘(b) ELIGIBLE PARTNERSHIP EVALUATION.—Each el-
igible partnership applying for a grant under section 203 
shall establish, and include in the application submitted 
under section 203(c), an evaluation plan that includes 
strong performance objectives. The plan shall include objec-
tives and measures for— 
‘‘(1) increased student achievement for all stu-
dents, as measured by the partnership; 
‘‘(2) increased teacher retention in the first 3 
years of a teacher’s career; 
‘‘(3) increased success in the pass rate for initial 
State certification or licensure of teachers; 
‘‘(4) increased percentage of highly qualified 
teachers; and 
‘‘(5) increasing the number of teachers trained 
effectively to integrate technology into curricula and 
instruction and who use technology to collect, manage, 
and analyze data to improve teaching, learning, and
decisionmaking for the purpose of improving student 
academic achievement. 
‘‘(c) REVOCATION OF GRANT.— 
‘‘(1) REPORT.—Each eligible State or eligible 
partnership receiving a grant under section 202 or 
203 shall report annually on the progress of the eligi-
ble State or eligible partnership toward meeting the 
purposes of this part and the goals, objectives, and 
measures described in subsections (a) and (b). 
‘‘(2) REVOCATION.— 
‘‘(A) ELIGIBLE STATES AND ELIGIBLE AP-
PLICANTS.—If the Secretary determines that an 
eligible State or eligible applicant is not making 
substantial progress in meeting the purposes, 
goals, objectives, and measures, as appropriate, 
by the end of the second year of a grant under 
this part, then the grant payment shall not be 
made for the third year of the grant. 
‘‘(B) ELIGIBLE PARTNERSHIPS.—If the Sec-
retary determines that an eligible partnership is 
not making substantial progress in meeting the 
purposes, goals, objectives, and measures, as ap-
propriate, by the end of the third year of a grant 
under this part, then the grant payments shall
not be made for any succeeding year of the 
grant. 
‘‘(d) EVALUATION
AND DISSEMINATION.—The Sec-
retary shall evaluate the activities funded under this part 
and report annually the Secretary’s findings regarding the 
activities to the authorizing committees. The Secretary shall 
broadly disseminate successful practices developed by eligi-
ble States and eligible partnerships under this part, and 
shall broadly disseminate information regarding such prac-
tices that were found to be ineffective. 
‘‘SEC. 207. ACCOUNTABILITY FOR PROGRAMS THAT PRE-
PARE TEACHERS. 
‘‘(a) STATE REPORT CARD
ON
THE QUALITY
OF 
TEACHER PREPARATION.—Each State that receives funds 
under this Act shall provide to the Secretary annually, in 
a uniform and comprehensible manner that conforms with 
the definitions and methods established by the Secretary, 
a State report card on the quality of teacher preparation 
in the State, both for traditional certification or licensure 
programs and for alternative certification or licensure pro-
grams, which shall include at least the following: 
‘‘(1) A description of the teacher certification 
and licensure assessments, and any other certification 
and licensure requirements, used by the State.
‘‘(2) The standards and criteria that prospective 
teachers must meet in order to attain initial teacher 
certification or licensure and to be certified or li-
censed to teach particular subjects or in particular 
grades within the State. 
‘‘(3) A description of the extent to which the as-
sessments and requirements described in paragraph 
(1) are aligned with the State’s standards and assess-
ments for students. 
‘‘(4) The percentage of students who have com-
pleted at least 50 percent of the requirements for a 
teacher preparation program at an institution of 
higher education or alternative certification program 
and who have taken and passed each of the assess-
ments used by the State for teacher certification and 
licensure, and the passing score on each assessment 
that determines whether a candidate has passed that 
assessment. 
‘‘(5) For students who have completed at least 50 
percent of the requirements for a teacher preparation 
program at an institution of higher education or al-
ternative certification program, and who have taken 
and passed each of the assessments used by the State 
for teacher certification and licensure, each such in-
stitution’s and each such program’s average raw
score, ranked by teacher preparation program, which 
shall be made available widely and publicly. 
‘‘(6) A description of each State’s alternative 
routes to teacher certification, if any, and the number 
and percentage of teachers certified through each al-
ternative certification route who pass State teacher 
certification or licensure assessments. 
‘‘(7) For each State, a description of proposed 
criteria for assessing the performance of teacher prep-
aration programs in the State, including indicators 
of teacher candidate skills, academic content knowl-
edge, and evidence of gains in student academic 
achievement. 
‘‘(8) For each teacher preparation program in 
the State, the number of students in the program, the 
number of minority students in the program, the av-
erage number of hours of supervised practice teaching 
required for those in the program, and the number of 
full-time equivalent faculty and students in super-
vised practice teaching. 
‘‘(b) REPORT OF THE SECRETARY ON THE QUALITY 
OF TEACHER PREPARATION.— 
‘‘(1) REPORT CARD.—The Secretary shall pro-
vide to Congress, and publish and make widely avail-
able, a report card on teacher qualifications and
preparation in the United States, including all the 
information reported in paragraphs (1) through (8) of 
subsection (a). Such report shall identify which eligi-
ble States received a grant under this part, and the 
States in which eligible partnerships receiving grants 
are located. Such report shall be published and made 
available annually. 
‘‘(2) REPORT
TO
CONGRESS.—The Secretary 
shall report to Congress— 
‘‘(A) a comparison of States’ efforts to im-
prove teaching quality; and 
‘‘(B) regarding the national mean and me-
dian scores on any standardized test that is used 
in more than one State for teacher certification 
or licensure. 
‘‘(3) SPECIAL RULE.—In the case of programs 
with fewer than 10 students who have completed at 
least 50 percent of the requirements for a teacher 
preparation program taking any single initial teach-
er certification or licensure assessment during an aca-
demic year, the Secretary shall collect and publish in-
formation with respect to an average pass rate on 
State certification or licensure assessments taken over 
a 3-year period.
‘‘(c) COORDINATION.—The Secretary, to the extent 
practicable, shall coordinate the information collected and 
published under this part among States for individuals who 
took State teacher certification or licensure assessments in 
a State other than the State in which the individual re-
ceived the individual’s most recent degree. 
‘‘(d) INSTITUTION AND PROGRAM REPORT CARDS ON 
QUALITY OF TEACHER PREPARATION.— 
‘‘(1) REPORT CARD.—Each institution of higher 
education or alternative certification program that 
conducts a teacher preparation program that enrolls 
students receiving Federal assistance under this Act 
shall report annually to the State and the general 
public, in a uniform and comprehensible manner that 
conforms with the definitions and methods established 
by the Secretary, both for traditional certification or 
licensure programs and for alternative certification or 
licensure programs, the following information: 
‘‘(A) PASS RATE.—(i) For the most recent 
year for which the information is available, the 
pass rate of each student who has completed at 
least 50 percent of the requirements for the teach-
er preparation program on the teacher certifi-
cation or licensure assessments of the State in 
which the institution is located, but only for
those students who took those assessments within 
3 years of receiving a degree from the institution 
or completing the program. 
‘‘(ii) A comparison of the institution or 
program’s pass rate for students who have com-
pleted at least 50 percent of the requirements for 
the teacher preparation program with the aver-
age pass rate for institutions and programs in 
the State. 
‘‘(iii) A comparison of the institution or 
program’s average raw score for students who 
have completed at least 50 percent of the require-
ments for the teacher preparation program with 
the average raw scores for institutions and pro-
grams in the State. 
‘‘(iv) In the case of programs with fewer 
than 10 students who have completed at least 50 
percent of the requirements for a teacher prepa-
ration program taking any single initial teacher 
certification or licensure assessment during an 
academic year, the institution shall collect and 
publish information with respect to an average 
pass rate on State certification or licensure as-
sessments taken over a 3-year period.
‘‘(B) PROGRAM INFORMATION.—The number 
of students in the program, the average number 
of hours of supervised practice teaching required 
for those in the program, and the number of full- 
time equivalent faculty and students in super-
vised practice teaching. 
‘‘(C) STATEMENT.—In States that require 
approval or accreditation of teacher education 
programs, a statement of whether the institu-
tion’s program is so approved or accredited, and 
by whom. 
‘‘(D) DESIGNATION AS LOW-PERFORMING.— 
Whether the program has been designated as low- 
performing by the State under section 208(a). 
‘‘(2) REQUIREMENT.—The information described 
in paragraph (1) shall be reported through publica-
tions such as school catalogs and promotional mate-
rials sent to potential applicants, secondary school 
guidance counselors, and prospective employers of the 
institution’s program graduates, including materials 
sent by electronic means. 
‘‘(3) FINES.—In addition to the actions author-
ized in section 487(c), the Secretary may impose a 
fine not to exceed $25,000 on an institution of higher 
education for failure to provide the information de-
scribed in this subsection in a timely or accurate 
manner. 
‘‘(e) DATA QUALITY.—Either— 
‘‘(1) the Governor of the State; or 
‘‘(2) in the case of a State for which the constitu-
tion or law of such State designates another indi-
vidual, entity, or agency in the State to be responsible 
for teacher certification and preparation activity, 
such individual, entity, or agency; 
shall attest annually, in writing, as to the reliability, valid-
ity, integrity, and accuracy of the data submitted pursuant 
to this section. 
‘‘SEC. 208. STATE FUNCTIONS. 
‘‘(a) STATE ASSESSMENT.—In order to receive funds 
under this Act, a State shall have in place a procedure to 
identify and assist, through the provision of technical as-
sistance, low-performing programs of teacher preparation 
within institutions of higher education. Such State shall 
provide the Secretary an annual list of such low-performing 
institutions that includes an identification of those institu-
tions at risk of being placed on such list. Such levels of 
performance shall be determined solely by the State and 
may include criteria based upon information collected pur-
suant to this part. Such assessment shall be described in 
the report under section 207(a). A State receiving Federal
funds under this title shall develop plans to close or recon-
stitute underperforming programs of teacher preparation 
within institutions of higher education. 
‘‘(b) TERMINATION OF ELIGIBILITY.—Any institution 
of higher education that offers a program of teacher prepa-
ration in which the State has withdrawn the State’s ap-
proval or terminated the State’s financial support due to 
the low performance of the institution’s teacher preparation 
program based upon the State assessment described in sub-
section (a)— 
‘‘(1) shall be ineligible for any funding for pro-
fessional development activities awarded by the De-
partment of Education; and 
‘‘(2) shall not be permitted to accept or enroll 
any student who receives aid under title IV of this 
Act in the institution’s teacher preparation program. 
‘‘SEC. 209. GENERAL PROVISIONS. 
‘‘(a) METHODS.—In complying with sections 207 and 
208, the Secretary shall ensure that States and institutions 
of higher education use fair and equitable methods in re-
porting and that the reporting methods do not allow identi-
fication of individuals. 
‘‘(b) SPECIAL RULE.—For each State in which there 
are no State certification or licensure assessments, or for
States that do not set minimum performance levels on those 
assessments— 
‘‘(1) the Secretary shall, to the extent practicable, 
collect data comparable to the data required under 
this part from States, local educational agencies, in-
stitutions of higher education, or other entities that 
administer such assessments to teachers or prospective 
teachers; and 
‘‘(2) notwithstanding any other provision of this 
part, the Secretary shall use such data to carry out 
requirements of this part related to assessments or 
pass rates. 
‘‘(c) LIMITATIONS.— 
‘‘(1) FEDERAL CONTROL PROHIBITED.—Nothing 
in this part shall be construed to permit, allow, en-
courage, or authorize any Federal control over any 
aspect of any private, religious, or home school, 
whether or not a home school is treated as a private 
school or home school under State law. This section 
shall not be construed to prohibit private, religious, or 
home schools from participation in programs or serv-
ices under this part. 
‘‘(2) NO CHANGE IN STATE CONTROL ENCOUR-
AGED OR REQUIRED.—Nothing in this part shall be 
construed to encourage or require any change in a
State’s treatment of any private, religious, or home 
school, whether or not a home school is treated as a 
private school or home school under State law. 
‘‘(3) NATIONAL SYSTEM OF TEACHER CERTIFI-
CATION PROHIBITED.—Nothing in this part shall be 
construed to permit, allow, encourage, or authorize 
the Secretary to establish or support any national 
system of teacher certification. 
‘‘SEC. 210. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to carry out 
this part $300,000,000 for fiscal year 2006 and such sums 
as may be necessary for each of the 5 succeeding fiscal years, 
of which— 
‘‘(1) 45 percent shall be available for each fiscal 
year to award grants under section 202; 
‘‘(2) 45 percent shall be available for each fiscal 
year to award grants under section 203; and 
‘‘(3) 10 percent shall be available for each fiscal 
year to award grants under section 204.’’. 
SEC. 202. PREPARING TOMORROW’S TEACHERS TO USE 
TECHNOLOGY. 
(a) ELIGIBILITY.—Section 222(a)(3)(D) (20 U.S.C. 
1042(a)(3)(D)) is amended by inserting ‘‘nonprofit tele-
communications entity,’’ after ‘‘community-based organiza-
tion,’’.
(b) 
PERMISSIBLE
USES
OF
FUNDS.—Section 
223(b)(1)(E) of the Higher Education Act of 1965 (20 
U.S.C. 1043(b)(1)(E)) is amended to read as follows: 
‘‘(E) to use technology to collect, manage, 
and analyze data to improve teaching, learning, 
and decisionmaking for the purpose of increasing 
student academic achievement.’’. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—Section 
224 (20 U.S.C. 1044) is amended by striking ‘‘each of fiscal 
years 2002 and 2003.’’ and inserting ‘‘fiscal year 2006 and 
each of the 5 succeeding fiscal years.’’. 
SEC. 203. CENTERS OF EXCELLENCE. 
Title II (20 U.S.C. 1021 et seq.) is amended by adding 
at the end the following: 
‘‘PART C—CENTERS OF EXCELLENCE 
‘‘SEC. 231. PURPOSES; DEFINITIONS. 
‘‘(a) PURPOSES.—The purposes of this part are— 
‘‘(1) to help recruit and prepare teachers, includ-
ing minority teachers, to meet the national demand 
for a highly qualified teacher in every classroom; and 
‘‘(2) to increase opportunities for Americans of 
all educational, ethnic, class, and geographic back-
grounds to become highly qualified teachers. 
‘‘(b) DEFINITIONS.—As used in this part:
‘‘(1) ELIGIBLE INSTITUTION.—The term ‘eligible 
institution’ means— 
‘‘(A) an institution of higher education that 
has a teacher preparation program that meets 
the requirements of section 203(b)(2) and that 
is— 
‘‘(i) a part B institution (as defined in 
section 322); 
‘‘(ii) a Hispanic-serving institution 
(as defined in section 502); 
‘‘(iii) a Tribal College or University 
(as defined in section 316); 
‘‘(iv) an Alaska Native-serving institu-
tion (as defined in section 317(b)); or 
‘‘(v) a Native Hawaiian-serving insti-
tution (as defined in section 317(b)); 
‘‘(B) a consortium of institutions described 
in subparagraph (A); or 
‘‘(C) an institution described in subpara-
graph (A), or a consortium described in subpara-
graph (B), in partnership with any other insti-
tution of higher education, but only if the center 
of excellence established under section 232 is lo-
cated at an institution described in subpara-
graph (A).
‘‘(2) HIGHLY
QUALIFIED.—The term ‘highly 
qualified’ when used with respect to an individual 
means that the individual is highly qualified as deter-
mined under section 9101 of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 7801) or 
section 602 of the Individuals with Disabilities Edu-
cation Act (20 U.S.C. 1401). 
‘‘(3) 
SCIENTIFICALLY
BASED
READING
RE-
SEARCH.—The term ‘scientifically based reading re-
search’ has the meaning given such term in section 
1208 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6368). 
‘‘(4) SCIENTIFICALLY
BASED
RESEARCH.—The 
term ‘scientifically based research’ has the meaning 
given such term in section 9101 of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 
7801). 
‘‘SEC. 232. CENTERS OF EXCELLENCE. 
‘‘(a) PROGRAM AUTHORIZED.—From the amounts ap-
propriated to carry out this part, the Secretary is author-
ized to award competitive grants to eligible institutions to 
establish centers of excellence. 
‘‘(b) USE OF FUNDS.—Grants provided by the Sec-
retary under this part shall be used to ensure that current
and future teachers are highly qualified, by carrying out 
one or more of the following activities: 
‘‘(1) Implementing reforms within teacher prepa-
ration programs to ensure that such programs are 
preparing teachers who are highly qualified, are able 
to understand scientifically based research, and are 
able to use advanced technology effectively in the 
classroom, including use for instructional techniques 
to improve student academic achievement, by— 
‘‘(A) retraining faculty; and 
‘‘(B) designing (or redesigning) teacher 
preparation programs that— 
‘‘(i) prepare teachers to close student 
achievement gaps, are based on rigorous 
academic content, scientifically based re-
search (including scientifically based read-
ing research), and challenging State student 
academic content standards; and 
‘‘(ii) promote strong teaching skills. 
‘‘(2) Providing sustained and high-quality 
preservice clinical experience, including the men-
toring of prospective teachers by exemplary teachers, 
substantially increasing interaction between faculty 
at institutions of higher education and new and expe-
rienced teachers, principals, and other administrators
at elementary schools or secondary schools, and pro-
viding support, including preparation time, for such 
interaction. 
‘‘(3) Developing and implementing initiatives to 
promote retention of highly qualified teachers and 
principals, including minority teachers and prin-
cipals, including programs that provide— 
‘‘(A) teacher or principal mentoring from 
exemplary teachers or principals; or 
‘‘(B) induction and support for teachers 
and principals during their first 3 years of em-
ployment as teachers or principals, respectively. 
‘‘(4) Awarding scholarships based on financial 
need to help students pay the costs of tuition, room, 
board, and other expenses of completing a teacher 
preparation program. 
‘‘(5) Disseminating information on effective 
practices for teacher preparation and successful teach-
er certification and licensure assessment preparation 
strategies. 
‘‘(6) Activities authorized under sections 202, 
203, and 204. 
‘‘(c) APPLICATION.—Any eligible institution desiring 
a grant under this section shall submit an application to
the Secretary at such a time, in such a manner, and accom-
panied by such information the Secretary may require. 
‘‘(d) MINIMUM
GRANT
AMOUNT.—The minimum 
amount of each grant under this part shall be $500,000. 
‘‘(e) LIMITATION ON ADMINISTRATIVE EXPENSES.—An 
eligible institution that receives a grant under this part 
may not use more than 2 percent of the grant funds for 
purposes of administering the grant. 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary to carry out this part. 
‘‘SEC. 233. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to carry out 
this part $10,000,000 for fiscal year 2006 and such sums 
as may be necessary for each of the 5 succeeding fiscal 
years.’’. 
SEC. 204. TEACHER INCENTIVE FUND PROGRAM. 
Title II (20 U.S.C. 1021 et seq.), as amended by section 
203 of this Act, is further amended by adding at the end 
the following: 
‘‘PART D—TEACHER INCENTIVE FUND PROGRAM 
‘‘SEC. 241. PURPOSE; DEFINITIONS. 
‘‘(a) PURPOSE.—The purpose of this part is to assist 
States, local educational agencies, and non-profit or for- 
profit organizations to develop and implement, or expand, 
innovative compensation systems to provide financial re-
wards for teachers and principals who raise student aca-
demic achievement and close the achievement gap, espe-
cially in the highest-need local educational agencies. 
‘‘(b) DEFINITIONS.—For purposes of this part: 
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means— 
‘‘(A) a local educational agency, including 
a charter school that is a local educational agen-
cy; 
‘‘(B) a State educational agency, or other 
State agency designated by the chief executive of 
the State; or 
‘‘(C) a partnership of— 
‘‘(i) one or more agencies described in 
subparagraph (A) or (B), or both; and 
‘‘(ii) at least one non-profit or for-prof-
it organization. 
‘‘(2) HIGH-NEED
LOCAL
EDUCATIONAL
AGEN-
CY.—The term ‘high-need local educational agency’ 
has the meaning given that term in section 201. 
‘‘SEC. 242. TEACHER INCENTIVE FUND GRANTS. 
‘‘(a) PROGRAM AUTHORIZED.— 
‘‘(1) IN GENERAL.—From the amounts appro-
priated to carry out this part, the Secretary is au-
thorized to award competitive grants of up to 5 years
in length to eligible entities to develop and imple-
ment, or expand, a comprehensive performance-based 
compensation system for teachers and principals for 
one or more local educational agencies. 
‘‘(2) 
COMPREHENSIVE
PERFORMANCE-BASED 
COMPENSATION SYSTEMS.—A comprehensive perform-
ance-based compensation system developed and imple-
mented, or expanded with funds under this part— 
‘‘(A) shall differentiate levels of compensa-
tion primarily on the basis of increases in stu-
dent academic achievement; and 
‘‘(B) may— 
‘‘(i) differentiate levels of compensation 
on the basis of high-quality teachers’ and 
principals’ employment and success in 
hard-to-staff schools or high-need subject 
areas; and 
‘‘(ii) recognize teachers’ and prin-
cipals’ skills and knowledge as demonstrated 
through— 
‘‘(I) successful fulfillment of addi-
tional responsibilities or job functions; 
and
‘‘(II) evidence of high achievement 
and mastery of content knowledge and 
teaching skills. 
‘‘(b) USE OF FUNDS.—A grantee shall use grant funds 
provided under this part only to design and implement, or 
expand, in collaboration with teachers, principals, other 
school administrators, and members of the public, a com-
pensation system consistent with the requirements of this 
part. Authorized activities under this part may include the 
following: 
‘‘(1) Developing appraisal systems that reflect 
clear and fair measures of student academic achieve-
ment. 
‘‘(2) Conducting outreach within the local edu-
cational agency (or agencies) or the State to gain 
input on how to construct the appraisal system and 
to develop support for it. 
‘‘(3) Paying, as part of a comprehensive per-
formance-based compensation system, bonuses and in-
creased salaries to teachers and principals who raise 
student academic achievement, so long as the grantee 
uses an increasing share of non-Federal funds to pay 
these monetary rewards each year of the grant. 
‘‘(4) Paying, as part of a comprehensive per-
formance-based compensation system, additional bo-
100 
nuses to teachers who both raise student academic 
achievement and either teach in high-poverty schools 
or teach subjects that are difficult to staff, or both, so 
long as the grantee uses an increasing share of non- 
Federal funds to pay these monetary rewards each 
year of the grant. 
‘‘(5) Paying, as part of a comprehensive per-
formance-based compensation system, additional bo-
nuses to principals who both raise student academic 
achievement and serve in high-poverty schools, so long 
as the grantee uses an increasing share of non-Federal 
funds to pay these monetary rewards each year of the 
grant. 
‘‘(c) APPLICATIONS.—To be eligible to receive a grant 
under this part, an eligible entity shall submit an applica-
tion that includes— 
‘‘(1) a description of the local educational agency 
or local educational agencies to be served by the 
project, including such demographic information as 
the Secretary may request; 
‘‘(2) information on student academic achieve-
ment and the quality of the teachers and principals 
in the local educational agency or agencies to be 
served by the project;
101 
‘‘(3) a description of the performance-based 
teacher and principal compensation system that the 
applicant proposes to develop and implement or ex-
pand; 
‘‘(4) a description of how the applicant will use 
grant funds under this part in each year of the grant; 
‘‘(5) an explanation of how the applicant will 
meet the requirement in subsection (b)(3) and how the 
grantee will continue its performance-based com-
pensation system after the grant ends; 
‘‘(6) a description of the support and commit-
ment from teachers, the community or local edu-
cational agency or agencies for the development and 
implementation, or expansion, of a performance-based 
teacher and principal compensation system; 
‘‘(7) a description of how teacher, principal and 
student performance will be measured and the base-
line measurement units; and 
‘‘(8) a description, if applicable, of how the ap-
plicant will define the term ‘high-quality’ for the pur-
poses of subsection (a)(2)(B)(i), through the use of 
measurable indicators, such as effectiveness in raising 
student academic achievement, or demonstrated mas-
tery of subject matter knowledge.
102 
‘‘(d) PRIORITY.—The Secretary shall give priority to 
applications for projects that would establish comprehensive 
performance-based compensation systems in high-need local 
educational agencies. 
‘‘SEC. 243. EVALUATIONS. 
‘‘The Secretary shall conduct an independent evalua-
tion of the program under this part and may use up to 
1 percent of the funds made available under this part or 
$1,000,000, whichever is less, for any fiscal year for the cost 
of the evaluation. 
‘‘SEC. 244. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to carry out 
this part $100,000,000 for fiscal year 2006 and such sums 
as may be necessary for each of the 5 succeeding fiscal 
years.’’. 
SEC. 205. TRANSITION. 
The Secretary of Education shall take such actions as 
the Secretary determines to be appropriate to provide for 
the orderly implementation of this title. 
TITLE III—INSTITUTIONAL AID 
SEC. 301. TITLE III GRANTS FOR AMERICAN INDIAN TRIB-
ALLY CONTROLLED COLLEGES AND UNIVER-
SITIES. 
(a) ELIGIBLE INSTITUTIONS.—Subsection (b) of sec-
tion 316 (20 U.S.C. 1059c(b)) is amended to read as follows:
103 
‘‘(b) DEFINITIONS.— 
‘‘(1) ELIGIBLE INSTITUTIONS.—For purposes of 
this section, Tribal Colleges and Universities are the 
following: 
‘‘(A) any of the following institutions that 
qualify for funding under the Tribally Controlled 
College or University Assistance Act of 1978 or 
is listed in Equity in Educational Land Grant 
Status Act of 1994 (7 U.S.C. 301 note): Bay 
Mills Community College; Blackfeet Community 
College; Cankdeska Cikana Community College; 
Chief Dull Knife College; College of Menominee 
Nation; Crownpoint Institute of Technology; 
Dine´ College; D–Q University; Fond du Lac 
Tribal and Community College; Fort Belknap 
College; Fort Berthold Community College; Fort 
Peck Community College; Haskell Indian Na-
tions University; Institute of American Indian 
and Alaska Native Culture and Arts Develop-
ment; Lac Courte Oreilles Ojibwa Community 
College; Leech Lake Tribal College; Little Big 
Horn College; Little Priest Tribal College; Ne-
braska Indian Community College; Northwest 
Indian College; Oglala Lakota College; Saginaw 
Chippewa Tribal College; Salish Kootenai Col-
104 
lege; Si Tanka University—Eagle Butte Cam-
pus; Sinte Gleska University; Sisseton Wahpeton 
Community College; Sitting Bull College; South-
western Indian Polytechnic Institute; Stone 
Child College; Tohono O’Odham Community Col-
lege; Turtle Mountain Community College; 
United Tribes Technical College; and White 
Earth Tribal and Community College; and 
‘‘(B) any other institution that meets the 
definition of tribally controlled college or univer-
sity in section 2 of the Tribally Controlled Col-
lege or University Assistance Act of 1978, and 
meets all other requirements of this section. 
‘‘(2) INDIAN.—The term ‘Indian’ has the mean-
ing given the term in section 2 of the Tribally Con-
trolled College or University Assistance Act of 1978.’’. 
(b) DISTANCE LEARNING.—Subsection (c)(2) of such 
section is amended— 
(1) by amending subparagraph (B) to read as 
follows: 
‘‘(B) construction, maintenance, renovation, 
and improvement in classrooms, libraries, lab-
oratories, and other instructional facilities, in-
cluding purchase or rental of telecommunications 
technology equipment or services, and the acqui-
105 
sition of real property adjacent to the campus of 
the institution on which to construct such facili-
ties;’’; 
(2) in subparagraph (C), by inserting before the 
semicolon at the end the following: ‘‘, or advanced de-
grees in tribal governance or tribal public policy’’; 
(3) in subparagraph (D), by inserting before the 
semicolon at the end the following: ‘‘, in tribal govern-
ance, or tribal public policy’’; 
(4) by striking ‘‘and’’ at the end of subpara-
graph (K); 
(5) by redesignating subparagraph (L) as sub-
paragraph (M); and 
(6) by inserting after subparagraph (K) the fol-
lowing new subparagraph: 
‘‘(L) developing or improving facilities for 
Internet use or other distance learning academic 
instruction capabilities; and’’. 
(c) APPLICATION AND ALLOTMENT.—Subsection (d) of 
such section is amended to read as follows: 
‘‘(d) APPLICATION AND ALLOTMENT.— 
‘‘(1) INSTITUTIONAL ELIGIBILITY.—To be eligible 
to receive assistance under this section, a Tribal Col-
lege or University shall be an eligible institution 
under section 312(b).
106 
‘‘(2) APPLICATION.—Any Tribal College or Uni-
versity desiring to receive assistance under this sec-
tion shall submit an application to the Secretary at 
such time, and in such manner, as the Secretary may 
reasonably require. 
‘‘(3) ALLOTMENTS TO INSTITUTIONS.— 
‘‘(A) ALLOTMENT: PELL
GRANT
BASIS.— 
From the amount appropriated to carry out this 
section for any fiscal year, the Secretary shall 
allot to each eligible institution a sum which 
bears the same ratio to one-half that amount as 
the number of Pell Grant recipients in attend-
ance at such institution at the end of the award 
year preceding the beginning of that fiscal year 
bears to the total number of Pell Grant recipi-
ents at all eligible institutions. 
‘‘(B) ALLOTMENT: DEGREE
AND
CERTIFI-
CATE BASIS.—From the amount appropriated to 
carry out this section for any fiscal year, the 
Secretary shall allot to each eligible institution 
a sum which bears the same ratio to one-half 
that amount as the number of degrees or certifi-
cates awarded by such institution during the 
preceding academic year bears to the total num-
107 
ber of degrees or certificates at all eligible insti-
tutions. 
‘‘(C) MINIMUM
GRANT.—Notwithstanding 
subparagraphs (A) and (B), the amount allotted 
to each institution under this section shall not be 
less than $400,000. 
‘‘(4) SPECIAL RULES.— 
‘‘(A) CONCURRENT FUNDING.—For the pur-
poses of this part, no Tribal College or Univer-
sity that is eligible for and receives funds under 
this section shall concurrently receive funds 
under other provisions of this part or part B. 
‘‘(B) EXEMPTION.—Section 313(d) shall not 
apply to institutions that are eligible to receive 
funds under this section.’’. 
SEC. 302. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING 
INSTITUTIONS. 
(a) DISTANCE
LEARNING.—Section 317(c)(2) (20 
U.S.C. 1059d(c)(2)) is amended— 
(1) by amending subparagraph (B) to read as 
follows: 
‘‘(B) construction, maintenance, renovation, 
and improvement in classrooms, libraries, lab-
oratories, and other instructional facilities, in-
cluding purchase or rental of telecommunications
108 
technology equipment or services, and the acqui-
sition of real property adjacent to the campus of 
the institution on which to construct such facili-
ties;’’; 
(2) in subparagraph (C), by inserting before the 
semicolon at the end the following: ‘‘, or advanced de-
grees in tribal governance or tribal public policy’’; 
(3) in subparagraph (D), by inserting before the 
semicolon at the end the following: ‘‘, in tribal govern-
ance, or tribal public policy’’; 
(4) by striking ‘‘and’’ at the end of subpara-
graph (G); 
(5) by striking the period at the end of subpara-
graph (H) and inserting a semicolon; and 
(6) by inserting after subparagraph (H) the fol-
lowing new subparagraph: 
‘‘(I) development or improvement of facili-
ties for Internet use or other distance learning 
academic instruction capabilities; and’’. 
(b) ENDOWMENT FUNDS.—Section 317(c) is further 
amended by adding at the end the following new paragraph: 
‘‘(3) ENDOWMENT FUNDS.— 
‘‘(A) IN GENERAL.—An Alaska Native or 
Native Hawaiian-serving institution may use 
not more than 20 percent of the grant funds pro-
109 
vided under this section to establish or increase 
an endowment fund at the institution. 
‘‘(B) MATCHING REQUIREMENT.—In order 
to be eligible to use grant funds in accordance 
with subparagraph (A), the institution shall pro-
vide to the endowment fund from non-Federal 
funds an amount equal to the Federal funds used 
in accordance with subparagraph (A), for the es-
tablishment or increase of the endowment fund. 
‘‘(C) APPLICABILITY
OF
OTHER
PROVI-
SIONS.—The provisions of part C regarding the 
establishment or increase of an endowment fund, 
that the Secretary determines are not incon-
sistent with this paragraph, shall apply to funds 
used under subparagraph (A).’’. 
(c) APPLICATION
PROCESS.—Section 317(d)(2) is 
amended by striking ‘‘Such application shall include—’’ 
and all that follows through ‘‘may require.’’. 
SEC. 303. GRANTS TO PART B INSTITUTIONS. 
(a) USE OF FUNDS.— 
(1) FACILITIES AND EQUIPMENT.— 
(A) 
UNDERGRADUATE
INSTITUTIONS.— 
Paragraph (2) of section 323(a) (20 U.S.C. 
1062(a)) is amended to read as follows:
110 
‘‘(2) Construction, maintenance, renovation, and 
improvement in classrooms, libraries, laboratories, 
and other instructional facilities, including purchase 
or rental of telecommunications technology equipment 
or services, and the acquisition of real property adja-
cent to the campus of the institution on which to con-
struct such facilities.’’. 
(B) 
GRADUATE
AND
PROFESSIONAL 
SCHOOLS.—Paragraph (2) of section 326(c) is 
amended to read as follows: 
‘‘(2) construction, maintenance, renovation, and 
improvement in classrooms, libraries, laboratories, 
and other instructional facilities, including purchase 
or rental of telecommunications technology equipment 
or services, and the acquisition of real property adja-
cent to the campus of the institution on which to con-
struct such facilities;’’. 
(2) OUTREACH
AND
COLLABORATION.—Para-
graph (11) of section 323(a) is amended to read as 
follows: 
‘‘(11) Establishing community outreach pro-
grams and collaborative partnerships between part B 
institutions and local elementary or secondary 
schools. Such partnerships may include mentoring, 
tutoring, or other instructional opportunities that
111 
will boost student academic achievement and assist el-
ementary and secondary school students in developing 
the academic skills and the interest to pursue postsec-
ondary education.’’. 
(b) TECHNICAL ASSISTANCE.—Section 323 (20 U.S.C. 
1062) is amended— 
(1) by redesignating subsection (c) as subsection 
(d); and 
(2) by inserting after subsection (b) the following 
new subsection: 
‘‘(c) TECHNICAL ASSISTANCE.— 
‘‘(1) IN GENERAL.—An institution may not use 
more than 2 percent of the grant funds provided 
under this part to secure technical assistance services. 
‘‘(2) TECHNICAL ASSISTANCE SERVICES.—Tech-
nical assistance services may include assistance with 
enrollment management, financial management, and 
strategic planning. 
‘‘(3) REPORT.—The institution shall report to 
the Secretary on an annual basis, in such form as the 
Secretary requires, on the use of funds under this sub-
section.’’. 
(c) DISTANCE
LEARNING.—Section 323(a)(2) (20 
U.S.C. 1062(a)(2)) (as amended by subsection (a)(1)(A)) is 
further amended by inserting ‘‘development or improvement
112 
of facilities for Internet use or other distance learning aca-
demic instruction capabilities and’’ after ‘‘including’’. 
(d) MINIMUM GRANTS.—Section 324(d)(1) (20 U.S.C. 
1063(d)(1)) is amended by inserting before the period at 
the end the following: ‘‘, except that, if the amount appro-
priated to carry out this part for any fiscal year exceeds 
the amount required to provide to each institution an 
amount equal to the total amount received by such institu-
tion under subsections (a), (b), and (c) for the preceding 
fiscal year, then the amount of such excess appropriation 
shall first be applied to increase the minimum allotment 
under this subsection to $750,000’’. 
(e) 
ELIGIBLE
GRADUATE
OR
PROFESSIONAL 
SCHOOLS.— 
(1) GENERAL
AUTHORITY.—Section 326(a)(1) 
(20 U.S.C. 1063b(a)(1)) is amended— 
(A) by inserting ‘‘(A)’’ after ‘‘subsection (e) 
that’’; 
(B) by inserting before the period at the end 
the following: ‘‘, (B) is accredited by a nation-
ally recognized accrediting agency or association 
determined by the Secretary to be a reliable au-
thority as to the quality of training offered, and 
(C) according to such an agency or association, 
is in good standing’’.
113 
(2) ELIGIBLE INSTITUTIONS.—Section 326(e)(1) 
(20 U.S.C. 1063b(e)(1)) is amended— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (Q); 
(B) by striking the period at the end of sub-
paragraph (R) and inserting a semicolon; and 
(C) by adding at the end the following new 
subparagraphs: 
‘‘(S) Alabama State University qualified 
graduate program; 
‘‘(T) Prairie View A & M University quali-
fied graduate program; 
‘‘(U) Coppin State University qualified 
graduate program; and 
‘‘(V) Delaware State University qualified 
graduate program.’’. 
(3) 
CONFORMING
AMENDMENT.—Section 
326(e)(3) (20 U.S.C. 1063b(e)(3)) is amended— 
(A) by striking ‘‘1998’’ and inserting 
‘‘2005’’; and 
(B) by striking ‘‘(Q) and (R)’’ and insert-
ing ‘‘(S), (T), (U), and (V)’’. 
(f) PROFESSIONAL
OR GRADUATE INSTITUTIONS.— 
Section 326(f) (20 U.S.C. 1063b(f)) is amended— 
(1) in paragraph (1)—
114 
(A) by striking ‘‘$26,600,000’’ and inserting 
‘‘$54,500,000’’; and 
(B) by striking ‘‘(P)’’ and inserting ‘‘(R)’’; 
(2) in paragraph (2)— 
(A) by striking ‘‘$26,600,000, but not in ex-
cess of $28,600,000’’ and inserting ‘‘$54,500,000, 
but not in excess of $58,500,000’’; and 
(B) by striking ‘‘subparagraphs (Q) and 
(R)’’ and inserting ‘‘subparagraphs (S), (T), 
(U), and (V)’’; and 
(3) in paragraph (3)— 
(A) by striking ‘‘$28,600,000’’ and inserting 
‘‘$58,500,000’’; and 
(B) by striking ‘‘(R)’’ and inserting ‘‘(V)’’. 
(g) HOLD HARMLESS.—Section 326(g) (20 U.S.C. 
1063b(g)) is amended by striking ‘‘1998’’ each place it ap-
pears and inserting ‘‘2005’’. 
SEC. 304. TECHNICAL AMENDMENTS. 
(a) AMENDMENTS.—Title III is further amended— 
(1) in section 311(c) (20 U.S.C. 1057(c))— 
(A) 
by 
redesignating 
paragraphs 
(7) 
through (12) as paragraphs (8) through (13), re-
spectively; and 
(B) by inserting after paragraph (6) the fol-
lowing:
115 
‘‘(7) Education or counseling services designed to 
improve the financial literacy and economic literacy 
of students and, as appropriate, their parents.’’; 
(2) 
in 
section 
312(b)(1)(A) 
(20 
U.S.C. 
1058(b)(1)(A)), by striking ‘‘subsection (c)’’ and in-
serting ‘‘subsection (d)’’; 
(3) 
in 
section 
312(b)(1)(F) 
(20 
U.S.C. 
1058(b)(1)(F)), by inserting ‘‘which is’’ before ‘‘lo-
cated’’; 
(4) in section 312(b)(1) (20 U.S.C. 1058(b)(1)), 
by redesignating subparagraphs (E) and (F) as sub-
paragraphs (F) and (G), respectively, and by insert-
ing after subparagraph (D) the following new sub-
paragraph: 
‘‘(E) which provides a program that is not 
less than a 2-year educational program that is 
acceptable for full credit toward a bachelor’s de-
gree;’’; 
(5) 
in 
section 
316(c)(2) 
(20 
U.S.C. 
1059c(c)(2))— 
(A) by redesignating subparagraphs (G) 
through 
(M) 
(as 
redesignated 
by 
section 
301(b)(2) of this Act) as subparagraphs (H) 
through (N), respectively;
116 
(B) by inserting after subparagraph (F) the 
following: 
‘‘(G) education or counseling services de-
signed to improve the financial literacy and eco-
nomic literacy of students and, as appropriate, 
their parents;’’; and 
(C) in subparagraph (N), as redesignated 
by subparagraph (A), by striking ‘‘subpara-
graphs (A) through (K)’’ and inserting ‘‘sub-
paragraphs (A) through (M)’’; 
(6) in section 317(c)(2) (20 U.S.C. 1059d(c)(2)), 
by inserting after subparagraph (I) (as added by sec-
tion 302(a)(6) of this Act) the following: 
‘‘(J) education or counseling services de-
signed to improve the financial literacy and eco-
nomic literacy of students and, as appropriate, 
their parents.’’; 
(7) in section 323(a) (20 U.S.C. 1062(a))— 
(A) by striking ‘‘section 360(a)(2)’’ and in-
serting ‘‘section 399(a)(2)’’; 
(B) 
by 
redesignating 
paragraphs 
(7) 
through (12) as paragraphs (8) through (13), re-
spectively; and 
(C) by inserting after paragraph (6) the fol-
lowing:
117 
‘‘(7) Education or counseling services designed to 
improve the financial literacy and economic literacy 
of students and, as appropriate, their parents.’’; 
(8) in section 324(d)(2) (20 U.S.C. 1063(d)(2)), 
by striking ‘‘section 360(a)(2)(A)’’ and inserting ‘‘sec-
tion 399(a)(2)(A)’’; 
(9) in section 326(e)(1) (20 U.S.C. 1063b(e)(1)), 
in the matter preceding subparagraph (A), by insert-
ing a colon after ‘‘the following’’; 
(10) in section 327(b) (20 U.S.C. 1063c(b)), by 
striking ‘‘initial’’; 
(11) 
in 
section 
342(5)(C) 
(20 
U.S.C. 
1066a(5)(C))— 
(A) by inserting a comma after ‘‘equip-
ment’’ the first place it appears; and 
(B) by striking ‘‘technology,,’’ and inserting 
‘‘technology,’’; 
(12) in section 343(e) (20 U.S.C. 1066b(e)), by 
inserting after the subsection designation the fol-
lowing: ‘‘SALE OF QUALIFIED BONDS.—’’; 
(13) in section 351(a) (20 U.S.C. 1067a(a)), by 
striking ‘‘of 1979’’; 
(14) 
in 
section 
391(b)(7)(E) 
(20 
U.S.C. 
1068(b)(7)(E)), by striking ‘‘subparagraph (E)’’ and 
inserting ‘‘subparagraph (D)’’; and
118 
(15) in section 396 (20 U.S.C. 1068e), by strik-
ing ‘‘section 360’’ and inserting ‘‘section 399’’. 
(b) REPEAL.—Section 1024 (20 U.S.C. 1135b–3), as 
transferred by section 301(a)(5) of the Higher Education 
Amendments of 1998 (Public Law 105–244; 112 Stat. 
1636), is repealed. 
SEC. 305. TITLE III AUTHORIZATIONS. 
Section 399(a) (20 U.S.C. 1068h(a)) is amended— 
(1) by striking ‘‘1999’’ each place it appears and 
inserting ‘‘2006’’; 
(2) by striking ‘‘4 succeeding fiscal years’’ each 
place it appears and inserting ‘‘5 succeeding fiscal 
years’’; 
(3) in paragraph (1)— 
(A) by striking ‘‘$10,000,000’’ in subpara-
graph (B) and inserting ‘‘$23,800,000’’; and 
(B) by striking ‘‘$5,000,000’’ in subpara-
graph (C) and inserting ‘‘$11,900,000’’; 
(4) in paragraph (2)— 
(A) by striking ‘‘$135,000,000’’ in subpara-
graph (A) and inserting ‘‘$241,000,000’’; and 
(B) by striking ‘‘$35,000,000’’ in subpara-
graph (B) and inserting ‘‘$59,000,000’’; and 
(5) in paragraph (4), by striking ‘‘$110,000’’ 
and inserting ‘‘$212,000’’.