IB
107TH CONGRESS
1ST SESSION
H. R. 1
[Report No. 107–63, Part I]
To close the achievement gap with accountability, flexibility, and choice,
so that no child is left behind.
IN THE HOUSE OF REPRESENTATIVES
MARCH 22, 2001
Mr. BOEHNER (for himself, Mr. CASTLE, Mr. MCKEON, Mr. HASTERT, Mr.
ARMEY, Mr. DELAY, Mr. WATTS of Oklahoma, Ms. PRYCE of Ohio, Mr.
DREIER, Mr. PETRI, Mr. SCHAFFER, Mr. ISAKSON, Mr. BALLENGER, Mr.
SAM JOHNSON of Texas, Mr. GREENWOOD, Mr. GRAHAM, Mr. NORWOOD,
Mr. UPTON, Mr. HILLEARY, Mr. EHLERS, Mr. FLETCHER, Mr. DEMINT,
Mrs. BIGGERT, Mr. TIBERI, Mr. KELLER, Mr. OSBORNE, Mr.
CULBERSON, Mr. OXLEY, Mr. NUSSLE, Mr. WOLF, Mr. GEKAS, Mr.
COMBEST, Mr. KOLBE, Mr. BAKER, Mr. WELDON of Pennsylvania, Mr.
SHAYS, Mr. GILLMOR, Mr. GOSS, Mr. CAMP, Mr. CUNNINGHAM, Mr.
HOBSON, Mr. BACHUS, Mr. CALVERT, Mr. COLLINS, Mr. DEAL of Geor-
gia, Mr. DIAZ-BALART, Mr. HORN, Mr. KINGSTON, Mr. LINDER, Mr.
MCINNIS, Mr. MILLER of Florida, Mr. ROYCE, Mr. PORTMAN, Mr. BARR
of Georgia, Mr. BURR of North Carolina, Mr. CHAMBLISS, Mr. EHRLICH,
Mr. LATOURETTE, Mr. RADANOVICH, Mr. COOKSEY, Mrs. NORTHUP, Mr.
PETERSON
of Pennsylvania, Mr. PICKERING, Mr. SHIMKUS, Mr.
SUNUNU, Mr. FOSSELLA, Mrs. BONO, Mr. GREEN of Wisconsin, Mr.
HAYES, Mr. GARY MILLER of California, Mr. OSE, Mr. SWEENEY, Mr.
CRENSHAW, Ms. HART, Mr. ISSA, Mr. PUTNAM, and Mr. SCHROCK) in-
troduced the following bill; which was referred to the Committee on Edu-
cation and the Workforce
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MAY 14, 2001
Additional sponsors: Ms. GRANGER, Mr. FRELINGHUYSEN, Mr. MICA, Mr.
TIAHRT, Mr. BONILLA, Mr. TRAFICANT, Mr. BROWN of South Carolina,
and Mrs. ROUKEMA
MAY 14, 2001
Reported with an amendment and referred to the Committee on the Judiciary
for a period ending not later than May 15, 2001, for consideration of
such provisions of the bill and amendment as fall within the jurisdiction
of that committee pursuant to clause 1(k), rule X, and ordered to be
printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on March 22, 2001]
A BILL
To close the achievement gap with accountability, flexibility,
and choice, so that no child is left behind.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘No Child Left Behind
Act of 2001’’.
SEC. 2. REFERENCES.
Except as otherwise specifically provided in this Act,
whenever in this Act an amendment or repeal is expressed
as the amendment or repeal of a section or other provision,
the reference shall be considered to be made to a section or
other provision of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6301 et seq.).
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SEC. 3. TRANSITION.
Except as otherwise specifically provided in this Act,
or any amendment made by this Act, any person or agency
that was awarded a grant under the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 6301 et seq.)
prior to the date of the enactment of this Act shall continue
to receive funds in accordance with the terms of such award,
except that such funds may not be provided after the date
that is one year after the effective date of this Act.
SEC. 4. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. References.
Sec. 3. Transition.
Sec. 4. Table of contents.
Sec. 5. Effective date.
TITLE I—IMPROVING THE ACADEMIC PERFORMANCE OF THE
DISADVANTAGED
PART A—BASIC PROGRAM
Sec. 101. Disadvantaged children meet high academic standards.
Sec. 102. Authorization of appropriations.
Sec. 103. Reservation for school improvement.
Sec. 104. Basic programs.
Sec. 105. School choice.
Sec. 106. Academic assessment and local educational agency and school improve-
ment.
Sec. 107. State assistance for school support and improvement.
Sec. 108. Academic achievement awards program.
PART B—STUDENT READING SKILLS IMPROVEMENT GRANTS
Sec. 111. Reading first; early reading first.
Sec. 112. Amendments to Even Start.
Sec. 113. Inexpensive book distribution program.
PART C—EDUCATION OF MIGRATORY CHILDREN
Sec. 121. State allocations.
Sec. 122. State applications; services.
Sec. 123. Authorized activities.
Sec. 124. Coordination of migrant education activities.
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PART D—NEGLECTED OR DELINQUENT YOUTH
Sec. 131. Neglected or delinquent youth.
Sec. 132. Findings.
Sec. 133. Allocation of funds.
Sec. 134. State plan and State agency applications.
Sec. 135. Use of funds.
Sec. 136. Transition services.
Sec. 137. Purpose.
Sec. 138. Programs operated by local educational agencies.
Sec. 139. Local educational agency applications.
Sec. 140. Uses of funds.
Sec. 141. Program requirements.
Sec. 142. Program evaluations.
PART E—FEDERAL EVALUATIONS AND DEMONSTRATIONS
Sec. 151. Evaluations.
Sec. 152. Demonstrations of innovative practices.
Sec. 153. Ellender-close up fellowship program; dropout reporting.
PART F—COMPREHENSIVE SCHOOL REFORM
Sec. 161. School reform.
PART G—RURAL EDUCATION FLEXIBILITY AND ASSISTANCE
Sec. 171. Rural education.
PART H—GENERAL PROVISIONS OF TITLE I
Sec. 181. General provisions.
TITLE II—PREPARING, TRAINING, AND RECRUITING QUALITY
TEACHERS
Sec. 201. Teacher quality training and recruiting fund.
Sec. 202. National writing project.
Sec. 203. Civic education; teacher liability protection.
TITLE III—EDUCATION OF LIMITED ENGLISH PROFICIENT AND
IMMIGRANT CHILDREN; INDIAN AND ALASKA NATIVE EDUCATION
PART A—EDUCATION OF LIMITED ENGLISH PROFICIENT AND IMMIGRANT
CHILDREN
Sec. 301. Programs authorized.
Sec. 302. Conforming amendment to Department of Education Organization Act.
PART B—INDIAN AND ALASKA NATIVE EDUCATION
Sec. 311. Elementary and Secondary Education Act of 1965.
Sec. 312. Alaska Native education.
Sec. 313. Amendments to the education amendments of 1978.
Sec. 314. Tribally Controlled Schools Act of 1988.
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TITLE IV—PROMOTING INFORMED PARENTAL CHOICE AND
INNOVATIVE PROGRAMS
PART A—INNOVATIVE PROGRAMS
Sec. 401. Promoting informed parental choice and innovative programs.
Sec. 402. Continuation of awards.
PART B—PUBLIC CHARTER SCHOOLS
Sec. 411. Public charter schools.
Sec. 412. Continuation of awards.
PART C—MAGNET SCHOOLS ASSISTANCE; WOMEN’S EDUCATIONAL EQUITY
Sec. 421. Magnet schools assistance.
Sec. 422. Women’s educational equity.
Sec. 423. Continuation of awards.
TITLE V—21ST CENTURY SCHOOLS
Sec. 501. Safe schools.
TITLE VI—IMPACT AID PROGRAM
Sec. 601. Payments under section 8002 with respect to fiscal years in which in-
sufficient funds are appropriated.
Sec. 602. Calculation of payment under section 8003 for small local educational
agencies.
Sec. 603. Construction.
Sec. 604. State consideration of payments in providing State aid.
Sec. 605. Authorization of appropriations.
Sec. 606. Redesignation of program.
TITLE VII—ACCOUNTABILITY
Sec. 701. Flexibility and accountability.
TITLE VIII—GENERAL PROVISIONS
Sec. 801. General provisions.
Sec. 802. Comprehensive regional assistance centers.
Sec. 803. National diffusion network.
Sec. 804. Eisenhower regional mathematics and science education consortia.
Sec. 805. Technology-based technical assistance.
Sec. 806. Regional technical support and professional development.
TITLE IX—MISCELLANEOUS PROVISIONS
PART A—AMENDMENTS TO OTHER ACTS
SUBPART 1—NATIONAL EDUCATION STATISTICS ACT
Sec. 901. Amendment to NESA.
SUBPART 2—HOMELESS EDUCATION
Sec. 911. Short title.
Sec. 912. Findings.
Sec. 913. Purpose.
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Sec. 914. Education for homeless children and youth.
Sec. 915. Technical amendment.
PART B—REPEALS
Sec. 921. Repeals.
SEC. 5. EFFECTIVE DATE.
Except as otherwise specifically provided in this Act,
this Act, and the amendments made by this Act, shall take
effect on October 1, 2001, or on the date of the enactment
of this Act, whichever occurs later.
TITLE I—IMPROVING THE ACA-
DEMIC 
PERFORMANCE 
OF
THE DISADVANTAGED
PART A—BASIC PROGRAM
SEC. 101. DISADVANTAGED CHILDREN MEET HIGH ACA-
DEMIC STANDARDS.
Section 1001 is amended to read as follows:
‘‘SEC. 1001. FINDINGS; STATEMENT OF PURPOSE; AND REC-
OGNITION OF NEED.
‘‘(a) FINDINGS.—Congress finds the following:
‘‘(1) The Constitution of the United States re-
serves to the States and to the people the responsi-
bility for the general supervision of public education
in kindergarten through the twelfth grade.
‘‘(2) States, local educational agencies and
schools should be given maximum flexibility in ex-
change for greater academic accountability, and be
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given greater freedom to build upon existing innova-
tive approaches for education reform.
‘‘(3) The best education decisions are made by
those who know the students and who are responsible
for implementing the decisions.
‘‘(4) Educators and parents should retain the
right and responsibility to educate their pupils and
children free of excessive regulation by the Federal
Government.
‘‘(5) The Supreme Court has regarded the right
of parents to direct the upbringing of their children
as a fundamental right implicit in the concept of or-
dered liberty within the 14th Amendment to the Con-
stitution, as specified in Meyer v. Nebraska, 262 U.S.
390 (1923), and Pierce v. Society of Sisters, 268 U.S.
510 (1925).
‘‘(6) Schools that enroll high concentrations of
children living in poverty face the greatest challenges,
but effective educational strategies based on scientif-
ically based research can succeed in educating chil-
dren to high academic standards.
‘‘(7) High-poverty schools are much more likely
to be identified as failing to meet State academic
standards for satisfactory progress. As a result, these
schools are generally the most in need of additional
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resources and technical assistance to build the capac-
ity of these schools to address the many needs of their
students.
‘‘(8) The educational progress of children par-
ticipating in programs under this title is closely asso-
ciated with their being taught by a highly qualified
staff, particularly in schools with the highest con-
centrations of poverty, where paraprofessionals,
uncertified teachers, and teachers teaching out of field
frequently provide instructional services.
‘‘(9) Congress and the public would benefit from
additional data evaluating the efficacy of the Elemen-
tary and Secondary Education Act of 1965.
‘‘(10) Schools operating programs assisted under
this part must be held accountable for the educational
achievement of their students, when those students fail
to demonstrate progress in achieving high academic
standards, local educational agencies and States must
take significant actions to improve the educational
opportunities available to them.
‘‘(b) PURPOSE AND INTENT.—The purpose and intent
of this title are to ensure that all children have a fair and
equal opportunity to obtain a high-quality education.
‘‘(c) RECOGNITION OF NEED.—The Congress recognizes
the following:
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‘‘(1) Educational needs are particularly great for
low-achieving children in our Nation’s highest-poverty
schools, children with limited English proficiency,
children of migrant workers, children with disabil-
ities, Indian children, children who are neglected or
delinquent, and young children who are in need of
reading assistance and family literacy assistance.
‘‘(2) Despite more than 3 decades of Federal as-
sistance, a sizable achievement gap remains between
minority and nonminority students, and between dis-
advantaged students and their more advantaged
peers.
‘‘(3) Too many students attend local schools that
fail to provide them with a quality education, and
are given no alternatives to enable them to receive a
quality education.
‘‘(4) States, local educational agencies, and
schools need to be held accountable for improving the
academic achievement of all students, and for identi-
fying and turning around low-performing schools.
‘‘(5) States and local educational agencies need
to ensure that high quality academic assessments, ac-
countability systems, teacher preparation and train-
ing, curriculum, and instructional materials are
aligned with challenging State academic standards so
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that students, teachers, parents, and administrators
can measure progress against common expectations
for student academic achievement.
‘‘(6) Federal education assistance is intended not
only to increase pupil achievement overall, but also
more specifically and importantly, to help ensure that
all students, especially the disadvantaged, meet chal-
lenging academic achievement standards. It can only
be determined if schools, local educational agencies,
and States are reaching this goal if student achieve-
ment results are reported specifically by disadvan-
taged and minority status.’’.
SEC. 102. AUTHORIZATION OF APPROPRIATIONS.
Section 1002 is amended to read as follows:
‘‘SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) LOCAL EDUCATIONAL AGENCY GRANTS.—For the
purpose of carrying out part A, other than section 1120(e),
there are authorized to be appropriated $11,500,000,000 for
fiscal year 2002, $13,000,000,000 for fiscal year 2003,
$14,500,000,000 for fiscal year 2004, $16,000,000,000 for
fiscal year 2005, and $17,200,000,000 for fiscal year 2006.
‘‘(b) STUDENT
READING
SKILLS
IMPROVEMENT
GRANTS.—
‘‘(1) READING FIRST.—For the purpose of car-
rying out subpart 1 of part B, there are authorized
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to be appropriated $900,000,000 for fiscal year 2002
and such sums as may be necessary for each of the
4 succeeding fiscal years.
‘‘(2) EARLY READING FIRST.—For the purpose of
carrying out subpart 2 of part B, there are authorized
to be appropriated $75,000,000 for fiscal year 2002
and such sums as may be necessary for each of the
4 succeeding fiscal years.
‘‘(3) EVEN START.—For the purpose of carrying
out subpart 3 of part B, there are authorized to be
appropriated $275,000,000 for fiscal year 2002 and
such sums as may be necessary for each of the 4 suc-
ceeding fiscal years.
‘‘(4) INEXPENSIVE
BOOK
DISTRIBUTION
PRO-
GRAM.—For the purpose of carrying out subpart 4 of
part B, there are authorized to be appropriated such
sums as may be necessary for fiscal year 2002 and
each of the 4 succeeding fiscal years.
‘‘(c) EDUCATION OF MIGRATORY CHILDREN.—For the
purpose of carrying out part C, there are authorized to be
appropriated $420,000,000 for fiscal year 2002 and such
sums as may be necessary for each of the 4 succeeding fiscal
years.
‘‘(d) PREVENTION AND INTERVENTION PROGRAMS FOR
YOUTH WHO ARE NEGLECTED, DELINQUENT, OR AT RISK
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OF DROPPING OUT.—For the purpose of carrying out part
D, there are authorized to be appropriated $50,000,000 for
fiscal year 2002 and such sums as may be necessary for
each of the 4 succeeding fiscal years.
‘‘(e) COMPREHENSIVE SCHOOL REFORM.—For the
purpose of carrying out part F, there are authorized to be
appropriated $260,000,000 for fiscal year 2002 and such
sums as may be necessary for each of the 4 succeeding fiscal
years.
‘‘(f) RURAL EDUCATION.—For the purpose of carrying
out part G, there are authorized to be appropriated
$300,000,000 for fiscal year 2002 and such sums as may
be necessary for each of 4 succeeding fiscal years to be dis-
tributed equally between subparts 1 and 2.
‘‘(g) CAPITAL EXPENSES.—For the purpose of car-
rying out section 1120(e), there are authorized to be appro-
priated $6,000,000 for fiscal year 2002, and such sums as
may be necessary for fiscal year 2003.
‘‘(h) FEDERAL ACTIVITIES.—
‘‘(1) SECTIONS 1501 AND 1502.—(A) For the pur-
pose of carrying out section 1501, there are author-
ized to be appropriated $9,000,000 for fiscal year
2002 and such sums as may be necessary for each of
the 4 succeeding fiscal years.
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‘‘(B) For the purpose of carrying out section
1502, there are authorized to be appropriated such
sums as may be necessary for fiscal year 2002 and
for each of the 4 succeeding fiscal years.
‘‘(2) SECTION 1503.—For the purpose of carrying
out section 1503, there are authorized to be appro-
priated such sums as may be necessary for fiscal year
2002 and for each of the 4 succeeding fiscal years.
‘‘(i) STATE ADMINISTRATION.—
‘‘(1) STATE RESERVATION.—Each State may re-
serve, from the sum of the amounts it receives under
parts A, C, and D of this title, an amount equal to
the greater of 1 percent of the amount it received
under such parts for fiscal year 2001, or $400,000
($50,000 for each outlying area), including any funds
it receives under paragraph (2), to carry out admin-
istrative duties assigned under parts A, C, and D.
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated $10,000,000
for fiscal year 2002 and such sums as may be nec-
essary for each of the 4 succeeding fiscal years for ad-
ditional State administration grants. Any such addi-
tional grants shall be allocated among the States in
proportion to the sum of the amounts received by each
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State for that fiscal year under parts A, C, and D of
this title.
‘‘(3) SPECIAL RULE.—The amount received by
each State under paragraphs (1) and (2) may not ex-
ceed the amount of State funds expended by the State
educational agency to administer elementary and sec-
ondary education programs in such State.
‘‘(j) ASSISTANCE
FOR
LOCAL
SCHOOL
IMPROVE-
MENT.—
‘‘(1) PROGRAM
AUTHORIZED.—The Secretary
shall award grants to States to provide subgrants to
local educational agencies for the purpose of pro-
viding assistance for school improvement consistent
with section 1116. Such grants shall be allocated
among States, the Bureau of Indian Affairs, and the
outlying areas, in proportion to the grants received
by the State, the Bureau of Indian Affairs, and the
outlying areas for the fiscal year under parts A, C,
and D of this title. The Secretary shall expeditiously
allocate a portion of such funds to States for the pur-
pose of assisting local educational agencies and
schools that were in school improvement status on the
date preceding the date of the enactment of the No
Child Left Behind Act of 2001.
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‘‘(2) REALLOCATIONS.—If a State does not apply
for funds under this subsection, the Secretary shall re-
allocate such funds to other States in the same pro-
portion funds are allocated under paragraph (1).
‘‘(3) STATE
APPLICATIONS.—Each State edu-
cational agency that desires to receive funds under
this subsection shall submit an application to the Sec-
retary at such time, and containing such information
as the Secretary shall reasonably require, except that
such requirement shall be waived if a State edu-
cational agency has submitted such information as
part of its State plan under this part. Each State
plan shall describe how such funds will be allocated
to ensure that the State educational agency and local
educational agencies comply with school improve-
ment, corrective action, and restructuring require-
ments of section 1116.
‘‘(4) LOCAL EDUCATIONAL AGENCY GRANTS.—A
grant to a local educational agency under this sub-
section shall be—
‘‘(A) of sufficient size and scope to support
the activities required under sections 1116 and
1117, but not less than $50,000 and not more
than $500,000 to each participating school;
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‘‘(B) integrated with funds awarded by the
State under this Act; and
‘‘(C) renewable for 2 additional 1-year peri-
ods if schools are making yearly progress con-
sistent with State and local educational agency
plans developed under section 1116.
‘‘(5) PRIORITY.—The State, in awarding such
grants, shall give priority to local educational agen-
cies with the lowest achieving schools, that dem-
onstrate the greatest need for such funds, and that
demonstrate the strongest commitment to making sure
such funds are used to provide adequate resources to
enable the lowest achieving schools to meet the yearly
progress goals under State and local school improve-
ment, corrective action, and restructuring plans
under section 1116.
‘‘(6) ADMINISTRATIVE
COSTS.—A State edu-
cational agency that receives a grant award under
this subsection may reserve not more than 5 percent
of such award for administration, evaluation, and
technical assistance expenses.
‘‘(7) LOCAL
AWARDS.—Each local educational
agency that applies for assistance under this sub-
section shall describe how it will provide the lowest
achieving schools the resources necessary to meet year-
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ly progress goals under State and local school im-
provement, corrective action, and restructuring plans
under section 1116.
‘‘(8) AUTHORIZATION OF APPROPRIATIONS.—For
the purpose of carrying out this subsection, there are
authorized to be appropriated $500,000,000 for fiscal
year 2002 and such sums as may be necessary for
each of the 4 succeeding fiscal years.’’.
SEC. 103. RESERVATION FOR SCHOOL IMPROVEMENT.
Section 1003 is amended to read as follows:
‘‘SEC. 1003. RESERVATION FOR SCHOOL IMPROVEMENT.
‘‘(a) STATE RESERVATIONS.—Each State shall reserve
1 percent of the amount it receives under subpart 2 of part
A for fiscal years 2002 and 2003, and 3 percent of the
amount received under such subpart for fiscal years 2004
through 2006, to carry out subsection (b) and to carry out
the State’s responsibilities under sections 1116 and 1117,
including carrying out the State educational agency’s state-
wide system of technical assistance and support for local
educational agencies.
‘‘(b) USES.—Of the amount reserved under subsection
(a) for any fiscal year, the State educational agency shall
allocate at least 95 percent of that amount directly to local
educational agencies for schools identified for school im-
provement, corrective action, and restructuring under sec-
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tion 1116(c) that have the greatest need for that assistance
in amounts sufficient to have a significant impact in im-
proving those schools.
‘‘(c) PRIORITY.—The State educational agency, in al-
locating funds to local educational agencies under this sec-
tion, shall give priority to local educational agencies that—
‘‘(1) have the lowest achieving schools;
‘‘(2) demonstrate the greatest need for such
funds; and
‘‘(3) demonstrate the strongest commitment to
ensuring that such funds are used to enable the lowest
achieving schools to meet the yearly progress goals
under section 1116(b)(3)(A)(v).
‘‘(d) UNUSED FUNDS.—If, after consultation with
local educational agencies in the State, the State edu-
cational agency determines that the amount of funds re-
served to carry out subsection (b) is greater than the
amount needed to provide the assistance described in that
subsection, it may allocate the excess amount to local edu-
cational agencies in accordance with either or both—
‘‘(1) the relative allocations it made to those
agencies for that fiscal year under subpart 2 of part
A; or
‘‘(2) section 1126(c).
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‘‘(e) SPECIAL RULE.—Notwithstanding any other pro-
vision of this section, the amount of funds reserved by the
State under subsection (a) in any given fiscal year shall
not decrease the amount of State funds each local edu-
cational agency receives below the amount received by such
agency under subpart 2 in the preceding fiscal year.’’.
SEC. 104. BASIC PROGRAMS.
The heading for part A of title I and sections 1111
through 1115 are amended to read as follows:
‘‘PART A—IMPROVING BASIC PROGRAMS
OPERATED BY LOCAL EDUCATIONAL AGENCIES
‘‘Subpart 1—Basic Program Requirements
‘‘SEC. 1111. STATE PLANS.
‘‘(a) PLANS REQUIRED.—
‘‘(1) IN GENERAL.—Any State desiring to receive
a grant under this part shall submit to the Secretary,
by March 1, 2002, a plan, developed in consultation
with local educational agencies, teachers, principals,
pupil services personnel, administrators (including
administrators of programs described in other parts
of this title), other staff, and parents, that satisfies the
requirements of this section and that is coordinated
with other programs under this Act, the Individuals
with Disabilities Education Act (20 U.S.C. 1400 et
seq.), the Carl D. Perkins Vocational and Technical
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Education Act of 1998 (20 U.S.C. 2301 et seq.), the
Head Start Act (42 U.S.C. 9831 et seq.), and the
McKinney-Vento Homeless Assistance Act (42 U.S.C.
11431 et seq.).
‘‘(2) CONSOLIDATED PLAN.—A State plan sub-
mitted under paragraph (1) may be submitted as
part of a consolidated plan under section 8302.
‘‘(b) ACADEMIC
STANDARDS, ACADEMIC
ASSESS-
MENTS, AND ACCOUNTABILITY.—
‘‘(1) CHALLENGING ACADEMIC STANDARDS.—
‘‘(A) Each State plan shall demonstrate
that the State has adopted challenging academic
content standards and challenging student aca-
demic achievement standards that will be used
by the State, its local educational agencies, and
its schools to carry out this part, except that a
State shall not be required to submit such stand-
ards to the Secretary.
‘‘(B) The academic standards required by
subparagraph (A) shall be the same academic
standards that the State applies to all schools
and children in the State.
‘‘(C) The State shall have such academic
standards for all public elementary and sec-
ondary school children, including children served
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under this part, in subjects determined by the
State, but including at least mathematics, read-
ing or language arts, and science (beginning in
the 2005–2006 school year), which shall include
the same knowledge, skills, and levels of achieve-
ment expected of all children.
‘‘(D) Academic standards under this para-
graph shall include—
‘‘(i) 
challenging 
academic 
content
standards in academic subjects that—
‘‘(I) specify what children are ex-
pected to know and be able to do;
‘‘(II) contain coherent and rig-
orous content; and
‘‘(III) encourage the teaching of
advanced skills; and
‘‘(ii) challenging student academic
achievement standards that—
‘‘(I) are aligned with the State’s
academic content standards;
‘‘(II) describe 2 levels of high per-
formance (proficient and advanced)
that determine how well children are
mastering the material in the State
academic content standards; and
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‘‘(III) describe a third level of per-
formance (basic) to provide complete
information about the progress of the
lower 
performing 
children 
toward
achieving to the proficient and ad-
vanced levels of performance.
‘‘(E) For the subjects in which students will
be served under this part, but for which a State
is not required by subparagraphs (A), (B), and
(C) to develop, and has not otherwise developed
such academic standards, the State plan shall
describe a strategy for ensuring that students are
taught the same knowledge and skills in such
subjects and held to the same expectations as are
all children.
‘‘(F) Nothing in this part shall prohibit a
State from revising any standard adopted under
this part before or after the date of enactment of
the No Child Left Behind Act of 2001.
‘‘(2) ACCOUNTABILITY.—
‘‘(A) IN GENERAL.—Each State plan shall
demonstrate that the State has developed and is
implementing a statewide State accountability
system that has been or will be effective in ensur-
ing that all local educational agencies, public el-
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ementary schools, and public secondary schools
make adequate yearly progress as defined under
subparagraph (B). Each State accountability
system shall—
‘‘(i) be based on the academic stand-
ards and academic assessments adopted
under paragraphs (1) and (4) and take into
account the performance of all public school
students;
‘‘(ii) be the same as the accountability
system the State uses for all public schools
or all local educational agencies in the
State, except that public schools and local
educational 
agencies 
not 
participating
under this part are not subject to the re-
quirements of section 1116; and
‘‘(iii) include rewards and sanctions
the State will use to hold local educational
agencies and public schools accountable for
student achievement and for ensuring that
they make adequate yearly progress in ac-
cordance with the State’s definition under
subparagraph (B).
‘‘(B) ADEQUATE YEARLY PROGRESS.—Each
State plan shall demonstrate, based on academic
•HR 1 RH1&2
‘‘(iv) includes separate annual numer-
ical objectives for continuing and signifi-
cant improvement in each of the following
(except that disaggregation of data under
subclauses (II) and (III) shall not be re-
quired in a case in which the number of
students in a category is insufficient to
yield statistically reliable information or
the results would reveal individually identi-
fiable information about an individual stu-
dent):
‘‘(I) The achievement of all public
school students.
‘‘(II) The achievement of—
‘‘(aa) economically disadvan-
taged students;
‘‘(bb) students from major
racial and ethnic groups;
‘‘(cc) students with disabil-
ities; and
‘‘(dd) students with limited
English proficiency;
‘‘(III) solely for the purpose of deter-
mining adequate yearly progress of the
State, the acquisition of English language
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proficiency 
by 
children 
with 
limited
English proficiency;
‘‘(v) at the State’s discretion, may also
include other academic measures such as
promotion, 
completion 
of 
college 
pre-
paratory courses, and high school comple-
tion (and for individual local educational
agencies and schools, the acquisition of
English language proficiency by children
with limited English proficiency), except
that inclusion of such other measures may
not change which schools or local edu-
cational agencies would otherwise be subject
to improvement or corrective action under
section 1116 if the discretionary indicators
were not included; and
‘‘(vi) includes a timeline that—
‘‘(I) uses as a baseline year the
year following the date of enactment of
the No Child Left Behind Act of 2001;
‘‘(II) establishes a target year by
which all members of each group of
students described in subclauses (I)
and (II) of clause (iii) shall meet or
exceed the State’s proficient level of
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academic performance on the State
academic assessment used for the pur-
poses of this section and section 1116,
except that the target year shall not be
more than 12 years from the baseline
year; and
‘‘(III) for each year until and in-
cluding the target year, establishes an-
nual goals for the academic perform-
ance of each group of students de-
scribed in subclauses (I) and (II) of
clause (iii) on the State academic as-
sessment that—
‘‘(aa) indicates a minimum
percentage of students who must
meet the proficient level on the
academic assessment, such that
the minimum percentage is the
same for each group of students
described in subclauses (I) and
(II) of clause (iii); or
‘‘(bb) indicates an annual
minimum amount by which the
percentage of students who meet
the proficient level among each
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group of students described in
subclauses (I) and (II) of clause
(iii) shall increase, such that the
minimum increase for each group
is equal to or greater than 100
percent minus the percentage of
the group meeting the proficient
level in the baseline year divided
by the number of years from the
baseline year to the target year es-
tablished under clause (I).
‘‘(D) 
ANNUAL
IMPROVEMENT
FOR
SCHOOLS.—For a school to make adequate yearly
progress under subparagraph (A), not less than
95 percent of each group of students described in
subparagraph (C)(iii)(II) who are enrolled in the
school are required to take the academic assess-
ments, consistent with section 612(a)(17)(A) of
the Individuals with Disabilities Education Act
(20 U.S.C. 1412(a)(17)(A)) and paragraph
(4)(G)(ii), on which adequate yearly progress is
based.
‘‘(E) PUBLIC NOTICE AND COMMENT.—Each
State shall ensure that in developing its plan, it
diligently seeks public comment from a range of
•HR 1 RH1&2
institutions and individuals in the State with
an interest in improved student achievement and
that the State makes and will continue to make
a substantial effort to ensure that information
under this part is widely known and understood
by the public, parents, teachers, and school ad-
ministrators throughout the State. Such efforts
shall include, at a minimum, publication of such
information and explanatory text, broadly to the
public through such means as the Internet, the
media, and public agencies.
‘‘(3) STATE AUTHORITY.—If a State educational
agency provides evidence, which is satisfactory to the
Secretary, that neither the State educational agency
nor any other State government official, agency, or
entity has sufficient authority, under State law, to
adopt curriculum content and student academic
achievement standards, and academic assessments
aligned with such academic standards, which will be
applicable to all students enrolled in the State’s pub-
lic schools, then the State educational agency may
meet the requirements of this subsection by—
‘‘(A) adopting academic standards and aca-
demic assessments that meet the requirements of
this subsection, on a statewide basis, limiting
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their applicability to students served under this
part; or
‘‘(B) adopting and implementing policies
that ensure that each local educational agency in
the State which receives grants under this part
will adopt curriculum content and student aca-
demic achievement standards, and academic as-
sessments aligned with such standards, which
meet all of the criteria in this subsection and
any regulations regarding such standards and
assessments which the Secretary may publish,
and which are applicable to all students served
by each such local educational agency.
‘‘(4) ACADEMIC
ASSESSMENTS.—Each State
plan shall demonstrate that the State has imple-
mented a set of high-quality, yearly student academic
assessments that include, at a minimum, academic
assessments in mathematics, and reading or language
arts, that will be used as the primary means of deter-
mining the yearly performance of the State and of
each local educational agency and school in enabling
all children to meet the State’s challenging student
academic achievement standards. Such assessments
shall—
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‘‘(A) be the same academic assessments used
to measure the performance of all children;
‘‘(B) be aligned with the State’s challenging
content and student academic achievement
standards and provide coherent information
about student attainment of such standards;
‘‘(C) be used for purposes for which such as-
sessments are valid and reliable, and be con-
sistent with relevant, recognized professional and
technical standards for such assessments;
‘‘(D) for the purposes of this part, be scored
to ensure the performance of each student is eval-
uated solely against the State’s challenging aca-
demic content standards and not relative to the
score of other students;
‘‘(E) except as otherwise provided for grades
3 through 8 under subparagraph (G), measure
the proficiency of students in, at a minimum,
mathematics and reading or language arts, and
be administered not less than once during—
‘‘(i) grades 3 through 5;
‘‘(ii) grades 6 through 9; and
‘‘(iii) grades 10 through 12;
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‘‘(F) involve multiple up-to-date measures
of student achievement, including measures that
assess critical thinking skills and understanding;
‘‘(G) beginning not later than school year
2004-2005, measure the performance of students
against the challenging State content and stu-
dent academic achievement standards in each of
grades 3 through 8 in, at a minimum, mathe-
matics, and reading or language arts, except that
the Secretary may provide the State 1 additional
year if the State demonstrates that exceptional
or uncontrollable circumstances, such as a nat-
ural disaster or a precipitous and unforeseen de-
cline in the financial resources of the State, pre-
vented full implementation of the academic as-
sessments by that deadline and that it will com-
plete implementation within the additional 1-
year period;
‘‘(H) provide for—
‘‘(i) the participation in such assess-
ments of all students;
‘‘(ii) the reasonable adaptations and
accommodations for students with disabil-
ities defined under 602(3) of the Individuals
with Disabilities Education Act (20 U.S.C.
•HR 1 RH1&2
1401(3)) necessary to measure the achieve-
ment of such students relative to State con-
tent and State student academic achieve-
ment standards;
‘‘(iii) the inclusion of limited English
proficient students who shall be assessed, to
the extent practicable, in the language and
form most likely to yield accurate and reli-
able information on what such students
know and can do in content areas;
‘‘(iv) notwithstanding clause (iii), the
academic assessment (using tests written in
English) of reading or language arts of any
student who has attended school in the
United States (not including Puerto Rico)
for 3 or more consecutive school years, ex-
cept if the local educational agency deter-
mines, on a case-by-case individual basis,
that academic assessments in another lan-
guage and form would likely yield more ac-
curate and reliable information on what
such students know and can do, the local
educational agency may assess such stu-
dents in the appropriate language other
than English for 1 additional year;
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‘‘(I) include students who have attended
schools in a local educational agency for a full
academic year but have not attended a single
school for a full academic year, except that the
performance of students who have attended more
than 1 school in the local educational agency in
any academic year shall be used only in deter-
mining the progress of the local educational
agency;
‘‘(J) produce individual student reports to
be provided to parents, which include academic
assessment scores, or other information on the at-
tainment of student academic achievement
standards; and
‘‘(K) enable results to be disaggregated with-
in each State, local educational agency, and
school by gender, by each major racial and eth-
nic group, by English proficiency status, by mi-
grant status, by students with disabilities as
compared to nondisabled students, and by eco-
nomically disadvantaged students as compared
to students who are not economically disadvan-
taged.
‘‘(5) 
SPECIAL
RULE.—Academic 
assessment
measures in addition to those in paragraph (4) that
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do not meet the requirements of such paragraph may
be included as additional measures, but may not be
used in lieu of the academic assessments required in
paragraph (4). Results on any additional measures
under this paragraph shall not change which schools
or local educational agencies would otherwise be sub-
ject to improvement or corrective action under section
1116 if the additional measures were not included.
‘‘(6) LANGUAGE
ASSESSMENTS.—Each State
plan shall identify the languages other than English
that are present in the participating student popu-
lation and indicate the languages for which yearly
student academic assessments are not available and
are needed. The State shall make every effort to de-
velop such assessments and may request assistance
from the Secretary if linguistically accessible aca-
demic assessment measures are needed. Upon request,
the Secretary shall assist with the identification of
appropriate academic assessment measures in the
needed languages, but shall not mandate a specific
academic assessment or mode of instruction.
‘‘(7) ACADEMIC ASSESSMENTS OF ENGLISH LAN-
GUAGE PROFICIENCY.—Each State plan shall dem-
onstrate that local educational agencies in the State
will, beginning no later than school year 2002–2003,
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annually assess the English proficiency of all students
with limited English proficiency in their schools.
‘‘(8) REQUIREMENT.—Each State plan shall
describe—
‘‘(A) how the State educational agency will
assist each local educational agency and school
affected by the State plan to develop the capacity
to comply with each of the requirements of sec-
tions 1112(c)(1)(D), 1114(c), and 1115(c) that is
applicable to such agency or school;
‘‘(B) how the State educational agency will
assist each local educational agency and school
affected by the State plan to provide additional
educational assistance to individual students as-
sessed as needing help to achieve the State’s chal-
lenging academic standards.
‘‘(C) such other factors as the State con-
siders appropriate to provide students an oppor-
tunity to achieve the knowledge and skills de-
scribed in the challenging academic content
standards adopted by the State.
‘‘(9) USE OF ACADEMIC ASSESSMENT RESULTS
TO
IMPROVE
STUDENT
ACHIEVEMENT.—Each State
plan shall describe how the State will ensure that the
•HR 1 RH1&2
results of the State assessments described in para-
graph (4)—
‘‘(A) will be provided promptly, but not
later than the end of the school year (consistent
with 1116, to local educational agencies, schools,
and teachers in a manner that is clear and easy
to understand; and
‘‘(B) be used by those local educational
agencies, schools, and teachers to improve the
educational achievement of individual students.
‘‘(10) TECHNICAL ASSISTANCE ON ACADEMIC AS-
SESSMENT REQUIREMENTS.—The Secretary shall pro-
vide technical assistance to interested States regard-
ing how to meet the requirements of paragraph (4).
‘‘(c) OTHER PROVISIONS TO SUPPORT TEACHING AND
LEARNING.—Each State plan shall contain assurances
that—
‘‘(1) the State shall produce, beginning with the
2003–2004 school year, the annual State report cards
described in subsection (h)(1);
‘‘(2) the State will participate, beginning in
school year 2002–2003, in annual academic assess-
ments of 4th and 8th grade reading and mathematics
under—
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‘‘(A) the State National Assessment of Edu-
cational Progress carried out under section
411(b)(2) of the National Education Statistics
Act of 1994 (20 U.S.C. 9010(b)(2)); or
‘‘(B) another academic assessment selected
by the State which meets the criteria of section
7101(b)(1)(B)(ii) of this Act;
‘‘(3) the State educational agency shall work
with other agencies, including educational service
agencies or other local consortia, and institutions to
provide technical assistance to local educational agen-
cies and schools to carry out the State educational
agency’s responsibilities under this part, including
technical assistance in providing professional develop-
ment under section 1119A and technical assistance
under section 1117; and
‘‘(4)(A) where educational service agencies exist,
the State educational agency shall consider providing
professional development and technical assistance
through such agencies; and
‘‘(B) where educational service agencies do not
exist, the State educational agency shall consider pro-
viding professional development and technical assist-
ance through other cooperative agreements such as
through a consortium of local educational agencies;
•HR 1 RH1&2
‘‘(5) the State educational agency shall notify
local educational agencies and the public of the con-
tent and student academic achievement standards and
academic assessments developed under this section,
and of the authority to operate schoolwide programs,
and will fulfill the State educational agency’s respon-
sibilities regarding local educational agency improve-
ment and school improvement under section 1116, in-
cluding such corrective actions as are necessary;
‘‘(6) the State educational agency shall provide
the least restrictive and burdensome regulations for
local educational agencies and individual schools par-
ticipating in a program assisted under this part;
‘‘(7) the State educational agency shall inform
the Secretary and the public of how Federal laws, if
at all, hinder the ability of States to hold local edu-
cational agencies and schools accountable for student
academic performance;
‘‘(8) the State educational agency will encourage
schools to consolidate funds from other Federal, State,
and local sources for schoolwide reform in schoolwide
programs under section 1114;
‘‘(9) the State educational agency shall modify
or eliminate State fiscal and accounting barriers so
that schools can easily consolidate funds from other
•HR 1 RH1&2
Federal, State, and local sources for schoolwide pro-
grams under section 1114;
‘‘(10) the State educational agency has involved
the committee of practitioners established under sec-
tion 1603(b) in developing the plan and monitoring
its implementation;
‘‘(11) the State educational agency shall inform
local educational agencies of the local educational
agency’s authority to transfer funds under title VII,
to obtain waivers under title VIII and, if the State
is an Ed-Flex Partnership State, to obtain waivers
under the Education Flexibility Partnership Act of
1999 (20 U.S.C. 5891a et seq.); and
‘‘(12) the State educational agency shall encour-
age local educational agencies and individual schools
participating in a program assisted under this part
to offer family literacy services (using funds under
this part), if the agency or school determines that a
substantial number of students served under this part
by the agency or school have parents who do not have
a high school diploma or its recognized equivalent or
who have low levels of literacy.
‘‘(d) PEER REVIEW AND SECRETARIAL APPROVAL.—
The Secretary shall—
•HR 1 RH1&2
‘‘(1) establish a peer review process to assist in
the review of State plans;
‘‘(2) approve a State plan within 120 days of its
submission unless the Secretary determines that the
plan does not meet the requirements of this section;
‘‘(3) if the Secretary determines that the State
plan does not meet the requirements of subsection (a),
(b), or (c), immediately notify the State of such deter-
mination and the reasons for such determination;
‘‘(4) not decline to approve a State’s plan
before—
‘‘(A) offering the State an opportunity to
revise its plan;
‘‘(B) providing technical assistance in order
to assist the State to meet the requirements
under subsections (a), (b), and (c); and
‘‘(C) providing a hearing; and
‘‘(5) have the authority to disapprove a State
plan for not meeting the requirements of this part,
but shall not have the authority to require a State,
as a condition of approval of the State plan, to in-
clude in, or delete from, such plan 1 or more specific
elements of the State’s academic content standards or
to use specific academic assessment instruments or
items.
•HR 1 RH1&2
‘‘(e) DURATION OF THE PLAN.—
‘‘(1) IN GENERAL.—Each State plan shall—
‘‘(A) be submitted for the first year for
which this part is in effect after the date of the
enactment of the No Child Left Behind Act of
2001;
‘‘(B) remain in effect for the duration of the
State’s participation under this part; and
‘‘(C) be periodically reviewed and revised by
the State, as necessary, to reflect changes in the
State’s strategies and programs under this part.
‘‘(2) ADDITIONAL
INFORMATION.—If the State
makes significant changes in its plan, such as the
adoption of new or revised State academic content
standards and State student achievement standards,
new academic assessments, or a new definition of ade-
quate yearly progress, the State shall submit such in-
formation to the Secretary.
‘‘(f) LIMITATION ON CONDITIONS.—Officers and em-
ployees of the Federal Government are prohibited from
mandating, directing, or controlling a State, local edu-
cational agency, or school’s specific instructional content or
student academic achievement standards and academic as-
sessments, curriculum, or program of instruction, as a con-
dition of eligibility to receive funds under this part.
•HR 1 RH1&2
‘‘(g) PENALTIES.—
‘‘(1) FAILURE TO MEET DEADLINES ENACTED IN
1994.—
‘‘(A) IN GENERAL.—If a State fails to meet
the deadlines established by the Improving Amer-
ica’s Schools Act of 1994 (or under any waiver
granted by the Secretary or under any compli-
ance agreement with the Secretary) for dem-
onstrating that it has in place challenging aca-
demic content standards and student achieve-
ment standards, and a system for measuring and
monitoring adequate yearly progress, the Sec-
retary shall withhold 25 percent of the funds that
would otherwise be available for State adminis-
tration and activities in each year until the Sec-
retary determines that the State meets those re-
quirements;
‘‘(B) NO EXTENSION.—The Secretary shall
not grant any additional waivers of, or enter
into any additional compliance agreements to
extend, the deadlines described in subparagraph
(A) for any State.
‘‘(2) FAILURE
TO
MEET
REQUIREMENTS
EN-
ACTED IN 2001.—If a State fails to meet any of the
requirements of this section, other than the require-
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ments described in paragraph (1), the Secretary may
withhold funds for State administration until the
Secretary determines that the State has fulfilled those
requirements.
‘‘(h) REPORTS.—
‘‘(1) ANNUAL STATE REPORT CARD.—
‘‘(A) IN GENERAL.—Not later than the be-
ginning of the 2003–2004 school year, a State
that receives assistance under this Act shall pre-
pare and disseminate an annual State report
card.
‘‘(B) IMPLEMENTATION.—The State report
card shall be—
‘‘(i) concise; and
‘‘(ii) presented in a format and man-
ner that parents can understand, and
which, to the extent practicable, shall be in
a language the parents can understand.
‘‘(C) PUBLIC
DISSEMINATION.—The State
shall widely disseminate the information de-
scribed in subparagraph (D) to all schools and
local educational agencies in the State and make
the information broadly available through public
means, such as posting on the Internet, distribu-
•HR 1 RH1&2
tion to the media, and distribution through pub-
lic agencies.
‘‘(D) REQUIRED INFORMATION.—The State
shall include in its annual State report card—
‘‘(i) information, in the aggregate, on
student achievement at each proficiency
level on the State academic assessments de-
scribed 
in 
subsection 
(b)(4)(F)
(disaggregated by race, ethnicity, gender,
disability status, migrant status, English
proficiency, and status as economically dis-
advantaged, except that such disaggregation
shall not be required in a case in which the
number of students in a category is insuffi-
cient to yield statistically reliable informa-
tion or the results would reveal individually
identifiable information about an indi-
vidual student);
‘‘(ii) the percentage of students not
tested (disaggregated by the same categories
and subject to the same exception described
in clause (i));
‘‘(iii) the percentage of students who
graduate from high school within 4 years of
starting high school;
•HR 1 RH1&2
‘‘(iv) the percentage of students who
take and complete advanced placement
courses as compared to the population of the
students eligible to take such courses, and
the rate of passing of advanced placement
tests;
‘‘(v) the professional qualifications of
teachers in the aggregate, including the per-
centage of teachers teaching with emergency
or provisional qualifications, and the per-
centage of class sections not taught by fully
qualified teachers; and
‘‘(vi) such other information (such as
dropout and school attendance rates; and
average class size by grade level) as the
State believes will best provide parents, stu-
dents, and other members of the public with
information on the progress of each of the
State’s public schools.
‘‘(2) CONTENT OF LOCAL EDUCATIONAL AGENCY
REPORT CARDS.—
‘‘(A) MINIMUM REQUIREMENTS.—The State
shall ensure that each local educational agency
collects appropriate data and includes in its an-
•HR 1 RH1&2
nual report for each of its schools, at a
minimum—
‘‘(i) the information described in para-
graph (1)(D) for each local educational
agency and school; and
‘‘(ii)(I) in the case of a local edu-
cational agency—
‘‘(aa) the number and percentage
of schools identified for school improve-
ment and how long they have been so
identified, including schools identified
under section 1116(c) of this Act; and
‘‘(bb) information that shows how
students in its schools perform on the
statewide academic assessment com-
pared to students in the State as a
whole; and
‘‘(II) in the case of a school—
‘‘(aa) whether it has been identi-
fied for school improvement; and
‘‘(bb) information that shows how
its students performed on the statewide
academic assessment compared to stu-
dents in the local educational agency
and the State as a whole.
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‘‘(B) OTHER INFORMATION.—A local edu-
cational agency may include in its annual re-
ports any other appropriate information whether
or not such information is included in the an-
nual State report.
‘‘(C) PUBLIC
DISSEMINATION.—The local
educational agency shall, not later than the be-
ginning of the 2003–2004 school year, publicly
disseminate the information described in this
paragraph to all schools in the district and to all
parents of students attending those schools (to the
extent practicable, in a language they can under-
stand), and make the information broadly avail-
able through public means, such as posting on
the Internet, distribution to the media, and dis-
tribution through public agencies.
‘‘(3) PRE-EXISTING REPORT CARDS.—A State or
local educational agency that was providing public
report cards on the performance of students, schools,
local educational agencies, or the State prior to the
enactment of the No Child Left Behind Act of 2001
may use those reports for the purpose of this sub-
section, so long as any such report is modified, as
may be needed, to contain the information required
by this subsection.
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‘‘(4) ANNUAL
STATE
REPORT
TO
THE
SEC-
RETARY.—Each State receiving assistance under this
Act shall report annually to the Secretary, and make
widely available within the State—
‘‘(A) beginning with school year 2001–2002,
information on the State’s progress in developing
and implementing the academic assessment sys-
tem described in subsection (b)(4);
‘‘(B) beginning not later than school year
2004–2005, information on the achievement of
students on the academic assessments required by
that subsection, including the disaggregated re-
sults for the categories of students identified in
subsection (b)(2)(C)(iii)(II);
‘‘(C) beginning not later than school year
2002–2003, information on the acquisition of
English proficiency by children with limited
English proficiency; and
‘‘(D) in any year before the State begins to
provide the information described in subpara-
graph (B), information on the results of student
academic assessments (including disaggregated
results) required under this section.
‘‘(5) PARENTS RIGHT-TO-KNOW.—
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‘‘(A) QUALIFICATIONS.—At the beginning of
each school year, a local educational agency that
receives funds under this part shall notify the
parents of each student attending any school re-
ceiving funds under this part that they may re-
quest, and shall provide the parents upon request
(and in a timely manner), information regard-
ing the professional qualifications of the stu-
dent’s classroom teachers, including, at a min-
imum, the following:
‘‘(i) Whether the teacher has met State
qualification and licensing criteria for the
grade levels and subject areas in which the
teacher provides instruction.
‘‘(ii) Whether the teacher is teaching
under emergency or other provisional status
through which State qualification or licens-
ing criteria have been waived.
‘‘(iii) The baccalaureate degree major
of the teacher and any other graduate cer-
tification or degree held by the teacher, and
the field of discipline of the certification or
degree.
•HR 1 RH1&2
‘‘(iv) Whether the child is provided
services by paraprofessionals and if so, their
qualifications.
‘‘(B) ADDITIONAL INFORMATION.—In addi-
tion to the information which parents may re-
quest under subparagraph (A), a school which
receives funds under this part shall provide to
each individual parent—
‘‘(i) information on the level of per-
formance of the individual student for
whom they are the parent in each of the
State academic assessments as required
under this part; and
‘‘(ii) timely notice that the student for
whom they are the parent has been as-
signed, or has been taught for 4 or more
consecutive weeks by, a teacher who is not
fully qualified.
‘‘(C) FORMAT.—The notice and information
provided to parents under this paragraph shall
be in an understandable and uniform format
and, to the extent practicable, provided in a lan-
guage that the parents can understand.
‘‘(6) PLAN CONTENT.—A State shall include in
its plan under subsection (b) an assurance that it has
•HR 1 RH1&2
in effect a policy that meets the requirements of this
section.
‘‘(i) PRIVACY.—Information collected under this sec-
tion shall be collected and disseminated in a manner that
protects the privacy of individuals.
‘‘SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS.
‘‘(a) PLANS REQUIRED.—
‘‘(1) SUBGRANTS.—A local educational agency
may receive a subgrant under this part for any fiscal
year only if such agency has on file with the State
educational agency a plan, approved by the State
educational agency, that is coordinated with other
programs under this Act, the Individuals with Dis-
abilities Education Act (20 U.S.C. 1400 et seq.), the
Carl D. Perkins Vocational and Technical Education
Act of 1998 (20 U.S.C. 2301 et seq.), the Head Start
Act (42 U.S.C. 9831 et seq.), the McKinney-Vento
Homeless Assistance Act, and other Acts, as appro-
priate.
‘‘(2) CONSOLIDATED
APPLICATION.—The plan
may be submitted as part of a consolidated applica-
tion under section 8305.
‘‘(b) PLAN PROVISIONS.—In order to help low achiev-
ing children achieve high academic standards, each local
educational agency plan shall include—
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‘‘(1) a description of additional high-quality stu-
dent academic assessments, if any, other than the aca-
demic assessments described in the State plan under
section 1111, that the local educational agency and
schools served under this part will use to—
‘‘(A) determine the success of children served
under this part in meeting the State’s student
academic achievement standards and provide in-
formation to teachers, parents, and students on
the progress being made toward meeting the
State student academic achievement standards
described in section 1111(b)(1)(D)(ii);
‘‘(B) assist in diagnosis, teaching, and
learning in the classroom in ways that best en-
able low-achieving children served under this
title to meet State academic standards and do
well in the local curriculum; and
‘‘(C) determine what revisions are needed to
projects under this title so that such children
meet the State’s student academic achievement
standards;
‘‘(2) at the local educational agency’s discretion,
a description of any other indicators that will be used
in addition to the academic assessments described in
paragraph (1) for the uses described in such para-
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graph, except that results on any discretionary indi-
cators shall not change which schools would otherwise
be subject to improvement of corrective action under
section 1118 if the additional measures are not in-
cluded;
‘‘(3) a description of how the local educational
agency will provide additional educational assistance
to individual students assessed as needing help to
achieve the State’s challenging academic standards;
‘‘(4) a description of the strategy the local edu-
cational agency will use to provide professional devel-
opment for teachers, and, if appropriate, pupil serv-
ices personnel, administrators, parents and other
staff, including local educational agency level staff in
accordance with section 1119A;
‘‘(5) a description of how the local educational
agency will coordinate and integrate services provided
under this part with other educational services at the
local educational agency or individual school level,
such as—
‘‘(A) Even Start, Head Start, Reading
First, Early Reading First, and other preschool
programs, including plans for the transition of
participants in such programs to local elemen-
tary school programs; and
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‘‘(B) services for children with limited
English proficiency or with disabilities, migra-
tory children served under part C, neglected or
delinquent youth, Indian children served under
part B of title III, homeless children, and immi-
grant children in order to increase program ef-
fectiveness, eliminate duplication, and reduce
fragmentation of the instructional program;
‘‘(6) an assurance that the local educational
agency will participate, if selected, in the State Na-
tional Assessment of Educational Progress in 4th and
8th grade reading and mathematics carried out under
section 411(b)(2) of the Education Statistics Act of
1994 (20 U.S.C. 9010(b)(2)), or in another academic
assessment pursuant to the State decision under sec-
tion 7101(b)(1)(B)(ii);
‘‘(7) a description of the poverty criteria that
will be used to select school attendance areas under
section 1113;
‘‘(8) a description of how teachers, in consulta-
tion with parents, administrators, and pupil services
personnel, in targeted assistance schools under section
1115, will identify the eligible children most in need
of services under this part;
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‘‘(9) a general description of the nature of the
programs to be conducted by such agency’s schools
under sections 1114 and 1115 and, where appro-
priate, educational services outside such schools for
children living in local institutions for neglected or
delinquent children, for neglected and delinquent chil-
dren in community day school programs, and for
homeless children;
‘‘(10) a description of how the local educational
agency will ensure that migratory children and for-
merly migratory children who are eligible to receive
services under this part are selected to receive such
services on the same basis as other children who are
selected to receive services under this part;
‘‘(11) if appropriate, a description of how the
local educational agency will use funds under this
part to support preschool programs for children, par-
ticularly children participating in Early Reading
First, or in a Head Start or Even Start program,
which services may be provided directly by the local
educational agency or through a subcontract with the
local Head Start agency designated by the Secretary
of Health and Human Services under section 641 of
the Head Start Act (42 U.S.C. 9836), agencies oper-
ating Even Start programs, Early Reading First, or
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another comparable public early childhood develop-
ment program;
‘‘(12) a description of the actions the local edu-
cational agency will take to assist its low-performing
schools, including schools identified under section
1116 as in need of improvement;
‘‘(13) a description of the actions the local edu-
cational agency will take to implement public school
choice, consistent with the requirements of section
1116;
‘‘(14) a description how the local educational
agency will meet the requirements of section
1119(b)(1); and
‘‘(15) a description of the services the local edu-
cational agency will provide homeless children, in-
cluding services provided with funds reserved under
section 1113(f)(3)(A).
‘‘(c) ASSURANCES.—
‘‘(1) IN GENERAL.—Each local educational agen-
cy plan shall provide assurances that the local edu-
cational agency will—
‘‘(A) inform eligible schools and parents of
schoolwide program authority and the ability of
such schools to consolidate funds from Federal,
State, and local sources;
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‘‘(B) provide technical assistance and sup-
port to schoolwide programs;
‘‘(C) work in consultation with schools as
the schools develop the schools’ plans pursuant to
section 1114 and assist schools as the schools im-
plement such plans or undertake activities pur-
suant to section 1115 so that each school can
make adequate yearly progress toward meeting
the State student academic achievement stand-
ards;
‘‘(D) fulfill such agency’s school improve-
ment responsibilities under section 1116, includ-
ing taking corrective actions under paragraphs
(6) and (7) of section 1116(b);
‘‘(E) provide services to eligible children at-
tending 
private 
elementary 
and 
secondary
schools in accordance with section 1120, and
timely and meaningful consultation with private
school officials regarding such services;
‘‘(F) take into account the experience of
model programs for the educationally disadvan-
taged, and the findings of relevant scientifically
based research indicating that services may be
most effective if focused on students in the ear-
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liest grades at schools that receive funds under
this part;
‘‘(G) in the case of a local educational agen-
cy that chooses to use funds under this part to
provide early childhood development services to
low-income children below the age of compulsory
school attendance, ensure that such services com-
ply with the academic achievement standards es-
tablished under section 641A(a) of the Head
Start Act (42 U.S.C. 9836a(a));
‘‘(H) comply with the requirements of sec-
tion 1119 regarding the qualifications of teachers
and paraprofessionals;
‘‘(I) inform eligible schools of the local edu-
cational agency’s authority to obtain waivers on
the school’s behalf under title VIII of this Act,
and if the State is an Ed-Flex Partnership
State, to obtain waivers under the Education
Flexibility Partnership Act of 1999; and
‘‘(J) coordinate and collaborate, to the ex-
tent feasible and necessary as determined by the
local educational agency, with other agencies
providing services to children, youth, and fami-
lies.
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‘‘(2) SPECIAL RULE.—In carrying out subpara-
graph (G) of paragraph (1), the Secretary—
‘‘(A) shall consult with the Secretary of
Health and Human Services on the implementa-
tion of such subparagraph and shall establish
procedures (taking into consideration existing
State and local laws, and local teacher contracts)
to assist local educational agencies to comply
with such subparagraph; and
‘‘(B) shall disseminate to local educational
agencies the Head Start academic achievement
standards as in effect under section 641A(a) of
the Head Start Act (42 U.S.C. 9836a(a)), and
such agencies affected by such subparagraph
shall plan for the implementation of such sub-
paragraph (taking into consideration existing
State and local laws, and local teacher con-
tracts), including pursuing the availability of
other Federal, State, and local funding sources to
assist in compliance with such subparagraph.
‘‘(3) INAPPLICABILITY.—The provisions of this
subsection shall not apply to preschool programs
using the Even Start model or to Even Start pro-
grams which are expanded through the use of funds
under this part.
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‘‘(d) PLAN DEVELOPMENT AND DURATION.—
‘‘(1) CONSULTATION.—Each local educational
agency plan shall be developed in consultation with
teachers, principals, administrators (including ad-
ministrators of programs described in other parts of
this title), and other appropriate school personnel,
and with parents of children in schools served under
this part.
‘‘(2) DURATION.—Each such plan shall be sub-
mitted for the first year for which this part is in ef-
fect following the date of the enactment of the No
Child Left Behind Act of 2001 and shall remain in
effect for the duration of the agency’s participation
under this part.
‘‘(3) REVIEW.—Each local educational agency
shall periodically review, and as necessary, revise its
plan.
‘‘(e) STATE APPROVAL.—
‘‘(1) IN GENERAL.—Each local educational agen-
cy plan shall be filed according to a schedule estab-
lished by the State educational agency.
‘‘(2) APPROVAL.—The State educational agency
shall approve a local educational agency’s plan only
if the State educational agency determines that the
local educational agency’s plan—
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‘‘(A) enables schools served under this part
to substantially help children served under this
part meet the academic standards expected of all
children described in section 1111(b)(1); and
‘‘(B) meets the requirements of this section.
‘‘(f) PROGRAM
RESPONSIBILITY.—The local edu-
cational agency plan shall reflect the shared responsibility
of schools, teachers, and the local educational agency in
making decisions regarding activities under sections 1114
and 1115.
‘‘(g) PARENTAL NOTIFICATION
AND CONSENT
FOR
ENGLISH LANGUAGE INSTRUCTION.—
‘‘(1) NOTIFICATION.—If a local educational
agency uses funds under this part to provide English
language instruction to limited English proficient
children, the agency shall inform a parent or the par-
ents of a child participating in an English language
instruction program for limited English proficient
children assisted under this part of—
‘‘(A) the reasons for the identification of the
child as being in need of English language in-
struction;
‘‘(B) the child’s level of English proficiency,
how such level was assessed, and the status of the
child’s academic achievement;
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‘‘(C) how the English language instruction
program will specifically help the child acquire
English and meet age-appropriate academic
standards for grade promotion and graduation;
‘‘(D) what the specific exit requirements are
for the program;
‘‘(E) the expected rate of transition from the
program into a classroom that is not tailored for
limited English proficient children; and
‘‘(F) the expected rate of graduation from
high school for students in the program if funds
under this part are used for children in sec-
ondary schools.
‘‘(2) CONSENT.—
‘‘(A) AGENCY REQUIREMENTS.—
‘‘(i) INFORMED CONSENT.—For a child
who has been identified as limited English
proficient prior to the beginning of a school
year, each local educational agency that re-
ceives funds under this part shall make a
reasonable and substantial effort to obtain
informed parental consent prior to the
placement of a child in an English lan-
guage instruction program for limited
English proficient children funded under
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this part if the program does not include
classes which exclusively or almost exclu-
sively use the English language in instruc-
tion.
‘‘(ii) WRITTEN
CONSENT
NOT
OB-
TAINED.—If written consent is not obtained,
the local educational agency shall maintain
a written record that includes the date and
the manner in which such informed consent
was sought, including the specific efforts
made to obtain such consent.
‘‘(iii) PROOF OF EFFORT.—Notice, in
an understandable form, of specific efforts
made to obtain written consent and a copy
of the written record required in clause (ii)
shall be mailed or delivered in writing to a
parent, parents, or guardian of a child
prior to placing the child in a program de-
scribed in clause (i) and shall include a
final request for parental consent for such
services. After such notice has been mailed
or delivered in writing, the local edu-
cational agency shall provide appropriate
educational services.
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‘‘(iv) SPECIAL RULE APPLICABLE DUR-
ING SCHOOL YEAR.—For those children who
have not been identified as limited English
proficient prior to the beginning of the
school year, the local educational agency
shall make a reasonable and substantial ef-
fort to obtain parental consent under this
clause. For such children, the agency shall
document, in writing, its specific efforts
made to obtain such consent prior to plac-
ing the child in a program described in
clause (i). After such documentation has
been made, the local educational agency
shall provide appropriate educational serv-
ices to such child. The proof of documenta-
tion shall be mailed or delivered in writing
to a parent or parents of the child in a
timely manner and shall include informa-
tion on how to have their child immediately
removed from the program upon their re-
quest. Nothing in this clause shall be con-
strued as exempting a local educational
agency from complying with the notifica-
tion requirements of subsection (g)(1) and
the consent requirements of this paragraph.
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‘‘(3) PARENTAL RIGHTS.—A parent or the par-
ents of a child participating in an English language
instruction program for limited English proficient
children assisted under this part shall—
‘‘(A) select among methods of instruction, if
more than one method is offered in the program;
and
‘‘(B) have the right to have their child im-
mediately removed from the program upon their
request.
‘‘(4) RECEIPT OF INFORMATION.—A parent or
the parents of a limited English proficient child who
is identified for participation in an English language
instruction program for limited English proficient
children assisted under this part shall receive, in a
manner and form understandable to the parent or
parents, the information required by this subsection.
At a minimum, the parent or parents shall receive—
‘‘(A) timely information about English lan-
guage instruction programs for limited English
proficient children assisted under this part;
‘‘(B) if a parent or parents of a partici-
pating child so desires, notice of opportunities
for regular meetings for the purpose of formu-
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lating and responding to recommendations from
the parent or parents; and
‘‘(C) procedural information for removing a
child from a program for limited English pro-
ficient children.
‘‘(5) BASIS
FOR
ADMISSION
OR
EXCLUSION.—
Students shall not be admitted to, or excluded from,
any federally-assisted education program on the basis
of a surname or language-minority status.
‘‘SEC. 1113. ELIGIBLE SCHOOL ATTENDANCE AREAS.
‘‘(a) DETERMINATION.—
‘‘(1) IN GENERAL.—A local educational agency
shall use funds received under this part only in eligi-
ble school attendance areas.
‘‘(2) ELIGIBLE SCHOOL ATTENDANCE AREAS.—
For the purposes of this part—
‘‘(A) the term ‘school attendance area’
means, in relation to a particular school, the
geographical area in which the children who are
normally served by that school reside; and
‘‘(B) the term ‘eligible school attendance
area’ means a school attendance area in which
the percentage of children from low-income fami-
lies is at least as high as the percentage of chil-
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dren from low-income families in the local edu-
cational agency as a whole.
‘‘(3) LOCAL
EDUCATIONAL
AGENCY
DISCRE-
TION.—
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (2), a local educational agency may—
‘‘(i) designate as eligible any school at-
tendance area or school in which at least 35
percent of the children are from low-income
families;
‘‘(ii) use funds received under this part
in a school that is not in an eligible school
attendance area, if the percentage of chil-
dren from low-income families enrolled in
the school is equal to or greater than the
percentage of such children in a partici-
pating school attendance area of such agen-
cy;
‘‘(iii) designate and serve a school at-
tendance area or school that is not eligible
under subsection (b), but that was eligible
and that was served in the preceding fiscal
year, but only for 1 additional fiscal year;
and
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‘‘(iv) elect not to serve an eligible
school attendance area or eligible school that
has a higher percentage of children from
low-income families if—
‘‘(I) the school meets the com-
parability 
requirements 
of 
section
1120A(c);
‘‘(II) the school is receiving sup-
plemental funds from other State or
local sources that are spent according
to the requirements of section 1114 or
1115; and
‘‘(III) the funds expended from
such other sources equal or exceed the
amount that would be provided under
this part.
‘‘(B) SPECIAL RULE.—Notwithstanding sub-
paragraph (A)(iv), the number of children at-
tending 
private 
elementary 
and 
secondary
schools who are to receive services, and the assist-
ance such children are to receive under this part,
shall be determined without regard to whether
the public school attendance area in which such
children reside is assisted under subparagraph
(A).
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‘‘(b) RANKING ORDER.—If funds allocated in accord-
ance with subsection (f) are insufficient to serve all eligible
school attendance areas, a local educational agency—
‘‘(1) shall annually rank from highest to lowest
according to the percentage of children from low-in-
come families in each agency’s eligible school attend-
ance areas in the following order—
‘‘(A) eligible school attendance areas in
which the concentration of children from low-in-
come families exceeds 75 percent; and
‘‘(B) all remaining eligible school attend-
ance areas in which the concentration of children
from low-income families is 75 percent or lower
either by grade span or for the entire local edu-
cational agency;
‘‘(2) shall, within each category listed in para-
graph (1), serve schools in rank order from highest to
lowest according to the ranking assigned under para-
graph (1);
‘‘(3) notwithstanding paragraph (2), may give
priority, within each such category and in rank order
from highest to lowest subject to paragraph (4), to eli-
gible school attendance areas that serve children in el-
ementary schools; and
•HR 1 RH1&2
‘‘(4) not serve a school described in paragraph
(1)(B) before serving a school described in paragraph
(1)(A).
‘‘(c) LOW-INCOME MEASURES.—In determining the
number of children ages 5 through 17 who are from low-
income families, the local educational agency shall apply
the measures described in paragraphs (1) and (2) of this
subsection:
‘‘(1) ALLOCATION TO PUBLIC SCHOOL ATTEND-
ANCE AREAS.—The local educational agency shall use
the same measure of poverty, which measure shall be
the number of children ages 5 through 17 in poverty
counted in the most recent census data approved by
the Secretary, the number of children eligible for free
and reduced priced lunches under the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751
et seq.), the number of children in families receiving
assistance under the State program funded under
part A of title IV of the Social Security Act, or the
number of children eligible to receive medical assist-
ance under the Medicaid program, or a composite of
such indicators, with respect to all school attendance
areas in the local educational agency—
‘‘(A) to identify eligible school attendance
areas;
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‘‘(B) to determine the ranking of each area;
and
‘‘(C) to determine allocations under sub-
section (f).
‘‘(2) ALLOCATION FOR EQUITABLE SERVICE TO
PRIVATE SCHOOL STUDENTS.—
‘‘(A) CALCULATION.—A local educational
agency shall have the final authority, consistent
with section 1120 to calculate the number of pri-
vate school children, ages 5 through 17, who are
low-income by—
‘‘(i) using the same measure of low-in-
come used to count public school children;
‘‘(ii) using the results of a survey that,
to the extent possible, protects the identity
of families of private school students and al-
lowing such survey results to be extrapo-
lated if complete actual data are not avail-
able; or
‘‘(iii) applying the low-income percent-
age of each participating public school at-
tendance area, determined pursuant to this
section, to the number of private school chil-
dren who reside in that attendance area.
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‘‘(B) COMPLAINT
PROCESS.—Any dispute
regarding low-income data on private school stu-
dents shall be subject to the complaint process
authorized in section 8505.
‘‘(d) EXCEPTION.—This section (other than subsections
(a)(3) and (f)) shall not apply to a local educational agency
with a total enrollment of less than 1,500 children.
‘‘(e) WAIVER FOR DESEGREGATION PLANS.—The Sec-
retary may approve a local educational agency’s written
request for a waiver of the requirements of subsections (a)
and (f), and permit such agency to treat as eligible, and
serve, any school that children attend under a desegregation
plan ordered by a State or court or approved by the Sec-
retary, or such a plan that the agency continues to imple-
ment after it has expired, if—
‘‘(1) the number of economically disadvantaged
children enrolled in the school is not less than 25 per-
cent of the school’s total enrollment; and
‘‘(2) the Secretary determines on the basis of a
written request from such agency and in accordance
with such criteria as the Secretary establishes, that
approval of that request would further the purposes of
this part.
‘‘(f) ALLOCATIONS.—
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‘‘(1) IN GENERAL.—A local educational agency
shall allocate funds received under this part to eligible
school attendance areas or eligible schools, identified
under subsection (b) in rank order on the basis of the
total number of children from low-income families in
each area or school.
‘‘(2) SPECIAL RULE.—(A) Except as provided in
subparagraph (B), the per-pupil amount of funds al-
located to each school attendance area or school under
paragraph (1) shall be at least 125 percent of the per-
pupil amount of funds a local educational agency re-
ceived for that year under the poverty criteria de-
scribed by the local educational agency in the plan
submitted under section 1112, except that this para-
graph shall not apply to a local educational agency
that only serves schools in which the percentage of
such children is 35 percent or greater.
‘‘(B) A local educational agency may reduce the
amount of funds allocated under subparagraph (A)
for a school attendance area or school by the amount
of any supplemental State and local funds expended
in that school attendance area or school for programs
that meet the requirements of section 1114 or 1115.
‘‘(3) RESERVATION.—A local educational agency
shall reserve such funds as are necessary under this
•HR 1 RH1&2
part to provide services comparable to those provided
to children in schools funded under this part to
serve—
‘‘(A) homeless children who do not attend
participating schools, including providing educa-
tionally related support services to children in
shelters and other locations where children may
live;
‘‘(B) children in local institutions for ne-
glected children; and
‘‘(C) if appropriate, children in local insti-
tutions for delinquent children and neglected or
delinquent children in community day school
programs.
‘‘(4) SCHOOL IMPROVEMENT RESERVATION.—In
addition to the funding a local educational agency re-
ceives under section 1003(b), a local educational agen-
cy may reserve such funds as are necessary under this
part to meet such agency’s school improvement re-
sponsibilities under section 1116, including taking
corrective actions under paragraphs (6) and (7) of
section 1116(b).
‘‘(5) FINANCIAL INCENTIVES AND REWARDS RES-
ERVATION.—A local educational agency may reserve
such funds as are necessary under this part to provide
•HR 1 RH1&2
financial incentives and rewards to teachers who serve
in schools eligible under subsection (b)(1)(A) and
identified for improvement under section 1116(b)(1)
for the purpose of attracting and retaining qualified
and effective teachers.
‘‘SEC. 1114. SCHOOLWIDE PROGRAMS.
‘‘(a) PURPOSE.—The purpose of a schoolwide program
under this section is—
‘‘(1) to enable a local educational agency to con-
solidate funds under this part with other Federal,
State, and local funds, to upgrade the entire edu-
cational program in a high poverty school; and
‘‘(2) to help ensure that all children in such a
school meet challenging State academic standards for
student achievement, particularly those children who
are most at-risk of not meeting those standards.
‘‘(b) USE OF FUNDS FOR SCHOOLWIDE PROGRAMS.—
‘‘(1) IN GENERAL.—A local educational agency
may consolidate funds under this part, together with
other Federal, State, and local funds, in order to up-
grade the entire educational program of a school that
serves an eligible school attendance area in which not
less than 40 percent of the children are from low-in-
come families, or not less than 40 percent of the chil-
dren enrolled in the school are from such families.
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‘‘(2) IDENTIFICATION
OF
STUDENTS
NOT
RE-
QUIRED.—
‘‘(A) IN GENERAL.—No school participating
in a schoolwide program shall be required to
identify particular children under this part as
eligible to participate in a schoolwide program
or to provide supplemental services to such chil-
dren.
‘‘(B) SUPPLEMENT FUNDS.—A school par-
ticipating in a schoolwide program shall use
funds available to carry out this section only to
supplement the amount of funds that would, in
the absence of funds under this part, be made
available from non-Federal sources for the school,
including funds needed to provide services that
are required by law for children with disabilities
and children with limited English proficiency.
‘‘(3) EXEMPTION FROM STATUTORY AND REGU-
LATORY REQUIREMENTS.—
‘‘(A) EXEMPTION.—Except as provided in
subsection (c), the Secretary may, through publi-
cation of a notice in the Federal Register, exempt
schoolwide programs under this section from
statutory or regulatory provisions of any other
noncompetitive formula grant program adminis-
•HR 1 RH1&2
tered by the Secretary (other than formula or
discretionary grant programs under the Individ-
uals with Disabilities Education Act, except as
provided in section 613(a)(2)(D) of such Act), or
any discretionary grant program administered
by the Secretary, to support schoolwide programs
if the intent and purposes of such other pro-
grams are met.
‘‘(B) REQUIREMENTS.—A school that choos-
es to use funds from such other programs shall
not be relieved of the requirements relating to
health, safety, civil rights, student and parental
participation and involvement, services to pri-
vate school children, maintenance of effort, uses
of Federal funds to supplement, not supplant
non-Federal funds, or the distribution of funds to
State or local educational agencies that apply to
the receipt of funds from such programs.
‘‘(C) RECORDS.—A school that consolidates
funds from different Federal programs under this
section shall not be required to maintain sepa-
rate fiscal accounting records, by program, that
identify the specific activities supported by those
particular funds as long as it maintains records
that demonstrate that the schoolwide program,
•HR 1 RH1&2
considered as a whole addresses the intent and
purposes of each of the Federal programs that
were consolidated to support the schoolwide pro-
gram.
‘‘(4) 
PROFESSIONAL
DEVELOPMENT.—Each
school receiving funds under this part for any fiscal
year shall devote sufficient resources to effectively
carry out the activities described in subsection
(c)(1)(D) in accordance with section 1119A for such
fiscal year, except that a school may enter into a con-
sortium with another school to carry out such activi-
ties.
‘‘(c) COMPONENTS OF A SCHOOLWIDE PROGRAM.—
‘‘(1) IN GENERAL.—A schoolwide program shall
include the following components:
‘‘(A) A comprehensive needs assessment of
the entire school (including taking into account
the needs of migratory children as defined in sec-
tion 1309(2)) that is based on information which
includes the performance of children in relation
to the State academic content standards and the
State student academic achievement standards
described in section 1111(b)(1).
‘‘(B) Schoolwide reform strategies that—
•HR 1 RH1&2
‘‘(i) provide opportunities for all chil-
dren to meet the State’s proficient and ad-
vanced levels of student achievement de-
scribed in section 1111(b)(1)(D);
‘‘(ii) use effective methods and instruc-
tional strategies that are based upon sci-
entifically based research that—
‘‘(I) strengthen the core academic
program in the school;
‘‘(II) increase the amount and
quality of learning time, such as pro-
viding an extended school year and
before- and after-school and summer
programs and opportunities, and help
provide an enriched and accelerated
curriculum; and
‘‘(III) include strategies for meet-
ing the educational needs of histori-
cally underserved populations;
‘‘(iii)(I) address the needs of all chil-
dren in the school, but particularly the
needs of low-achieving children and those at
risk of not meeting the State student aca-
demic achievement standards who are mem-
bers of the target population of any pro-
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gram that is included in the schoolwide pro-
gram; and
‘‘(II) address how the school will deter-
mine if such needs have been met; and
‘‘(iv) are consistent with, and are de-
signed to implement, the State and local
improvement plans, if any.
‘‘(C) Instruction by fully qualified (as de-
fined in section 8101) teachers.
‘‘(D) In accordance with section 1119A and
subsection (b)(4), high quality and ongoing pro-
fessional development for teachers and para-
professionals, and, where appropriate, pupil
services personnel, parents, principals, and other
staff to enable all children in the school to meet
the State’s student academic achievement stand-
ards.
‘‘(E) Strategies to attract high quality
teachers to high need schools, such as differential
pay systems or performance based pay.
‘‘(F) Strategies to increase parental involve-
ment in accordance with section 1118, such as
family literary services.
‘‘(G) Plans for assisting preschool children
in the transition from early childhood programs,
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such as Head Start, Even Start, Early Reading
First, or a State-run preschool program, to local
elementary school programs.
‘‘(H) Measures to include teachers in the de-
cisions regarding the use of academic assessments
described in section 1111(b)(4) in order to pro-
vide information on, and to improve, the per-
formance of individual students and the overall
instructional program.
‘‘(I) Activities to ensure that students who
experience difficulty mastering the proficient or
advanced levels of academic achievement stand-
ards required by section 1111(b) shall be pro-
vided with effective, timely additional assistance
which shall include measures to ensure that stu-
dents’ difficulties are identified on a timely basis
and to provide sufficient information on which
to base effective assistance.
‘‘(2) PLAN.—Any eligible school that desires to
operate a schoolwide program shall first develop (or
amend a plan for such a program that was in exist-
ence on the day before the effective date of the No
Child Left Behind Act of 2001), a comprehensive plan
for reforming the total instructional program in the
school that—
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‘‘(A) incorporates the components described
in paragraph (1);
‘‘(B) describes how the school will use re-
sources under this part and from other sources to
implement those components; and
‘‘(C) includes a list of State and local edu-
cational agency programs and other Federal pro-
grams under subsection (b)(3) that will be con-
solidated in the schoolwide program.
‘‘(3) PLAN DEVELOPMENT.—The comprehensive
plan shall be—
‘‘(A) developed during a 1-year period,
unless—
‘‘(i) the local educational agency deter-
mines that less time is needed to develop
and implement the schoolwide program; or
‘‘(ii) the school operated a schoolwide
program on the day preceding the effective
date of the No Child Left Behind Act of
2001, in which case such school may con-
tinue to operate such program, but shall de-
velop amendments to its existing plan dur-
ing the first year of assistance after that
date to reflect the provisions of this section;
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‘‘(B) developed with the involvement of par-
ents and other members of the community to be
served and individuals who will carry out such
plan, including teachers, principals, and admin-
istrators (including administrators of programs
described in other parts of this title), and, if ap-
propriate, pupil services personnel, technical as-
sistance providers, school staff, and, if the plan
relates to a secondary school, students from such
school;
‘‘(C) in effect for the duration of the school’s
participation under this part and reviewed and
revised, as necessary, by the school;
‘‘(D) available to the local educational
agency, parents, and the public, and the infor-
mation contained in such plan shall be provided
in a format, and to the extent practicable, in a
language that they can understand; and
‘‘(E) if appropriate, developed in coordina-
tion with programs under Reading First, Early
Reading First, Even Start, Carl D. Perkins Vo-
cational and Technical Education Act of 1998,
and the Head Start Act.
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‘‘(d) ACCOUNTABILITY.—A schoolwide program under
this section shall be subject to the school improvement provi-
sions of section 1116.
‘‘(e) PREKINDERGARTEN PROGRAM.—A school that is
eligible for a schoolwide program under this section may
use funds made available under this title to establish or en-
hance prekindergarten programs for 3-, 4-, and 5-year-old
children, such as Even Start programs or Early Reading
First programs.
‘‘SEC. 1115. TARGETED ASSISTANCE SCHOOLS.
‘‘(a) IN GENERAL.—In all schools selected to receive
funds under section 1113(f) that are ineligible for a
schoolwide program under section 1114, or that choose not
to operate such a schoolwide program, a local educational
agency may use funds received under this part only for pro-
grams that provide services to eligible children under sub-
section (b) identified as having the greatest need for special
assistance.
‘‘(b) ELIGIBLE CHILDREN.—
‘‘(1) ELIGIBLE
POPULATION.—(A) The eligible
population for services under this section is—
‘‘(i) children not older than age 21 who are
entitled to a free public education through grade
12; and
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‘‘(ii) children who are not yet at a grade
level at which the local educational agency pro-
vides a free public education.
‘‘(B) From the population described in subpara-
graph (A), eligible children are children identified by
the school as failing, or most at risk of failing, to
meet the State’s challenging student academic achieve-
ment standards on the basis of academic assessments
under this part, and, as appropriate, on the basis of
multiple, educationally related, objective criteria es-
tablished by the local educational agency and supple-
mented by the school, except that children from pre-
school through grade 2 may be selected solely on the
basis of such criteria as teacher judgment, interviews
with parents, and other appropriate measures.
‘‘(2) CHILDREN
INCLUDED.—(A)(i) Children
with disabilities, migrant children, and children with
limited English proficiency are eligible for services
under this part on the same basis as other children.
‘‘(ii) Funds received under this part may not be
used to provide services that are otherwise required by
law to be made available to such children but may be
used to coordinate or supplement such services.
‘‘(B) A child who, at any time in the 2 years
preceding the year for which the determination is
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made, participated in a Head Start, Even Start, or
Early Reading First program, or in preschool services
under this title, is eligible for services under this part.
‘‘(C)(i) A child who, at any time in the 2 years
preceding the year for which the determination is
made, received services under part C is eligible for
services under this part.
‘‘(ii) A child in a local institution for neglected
or delinquent children or attending a community day
program for such children is eligible for services
under this part.
‘‘(D) A child who is homeless and attending any
school in the local educational agency is eligible for
services under this part.
‘‘(c) COMPONENTS
OF
A
TARGETED
ASSISTANCE
SCHOOL PROGRAM.—
‘‘(1) IN GENERAL.—To assist targeted assistance
schools and local educational agencies to meet their
responsibility to provide for all their students served
under this title the opportunity to meet the State’s
challenging student academic achievement standards
in subjects as determined by the State, each targeted
assistance program under this section shall—
‘‘(A) use such program’s resources under
this part to help participating children meet
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such 
State’s 
challenging 
student 
academic
achievement standards expected for all children;
‘‘(B) ensure that planning for students
served under this part is incorporated into exist-
ing school planning;
‘‘(C) use effective methods and instructional
strategies that are based upon scientifically
based research that strengthens the core academic
program of the school and that—
‘‘(i) give primary consideration to pro-
viding extended learning time such as an
extended school year, before- and after-
school, and summer programs and opportu-
nities;
‘‘(ii) help provide an accelerated, high-
quality 
curriculum, 
including 
applied
learning; and
‘‘(iii) minimize removing children
from the regular classroom during regular
school hours for instruction provided under
this part;
‘‘(D) coordinate with and support the reg-
ular education program, which may include
services to assist preschool children in the transi-
tion from early childhood programs such as
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Head Start, Even Start, Early Reading First or
State-run preschool programs to elementary
school programs;
‘‘(E) provide instruction by fully qualified
teachers as defined in section 8101;
‘‘(F) in accordance with subsection (e)(3)
and section 1119A, provide opportunities for
professional development with resources provided
under this part, and, to the extent practicable,
from other sources, for teachers, principals, and
administrators and other school staff, including,
if appropriate, pupil services personnel, who
work with participating children in programs
under this section or in the regular education
program; and
‘‘(G) provide strategies to increase parental
involvement in accordance with section 1118,
such as family literacy services.
‘‘(2) REQUIREMENTS.—Each school conducting a
program under this section shall assist participating
children selected in accordance with subsection (b) to
meet the State’s proficient and advanced levels of
achievement by—
‘‘(A) the coordination of resources provided
under this part with other resources; and
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‘‘(B) reviewing, on an ongoing basis, the
progress of participating children and revising
the targeted assistance program, if necessary, to
provide additional assistance to enable such chil-
dren to meet the State’s challenging student aca-
demic achievement standards, such as an ex-
tended school year, before- and after-school, and
summer programs and opportunities, training
for teachers regarding how to identify students
that require additional assistance, and training
for teachers regarding how to implement student
academic achievement standards in the class-
room.
‘‘(d) INTEGRATION
OF
PROFESSIONAL
DEVELOP-
MENT.—To promote the integration of staff supported with
funds under this part, public school personnel who are paid
with funds received under this part may participate in gen-
eral professional development and school planning activi-
ties.
‘‘(e) SPECIAL RULES.—
‘‘(1) SIMULTANEOUS SERVICE.—Nothing in this
section shall be construed to prohibit a school from
serving students served under this section simulta-
neously with students with similar educational needs,
in the same educational settings where appropriate.
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‘‘(2) COMPREHENSIVE
SERVICES.—If medical,
nutrition, and other social services are not otherwise
available to eligible children in a targeted assistance
school and such school, if appropriate, has engaged in
a comprehensive needs assessment and established a
collaborative partnership with local service providers,
and if funds are not reasonably available from other
public or private sources to provide such services, then
a portion of the funds provided under this part may
be used as a last resort to provide such services,
including—
‘‘(A) the provision of basic medical equip-
ment, such as eyeglasses and hearing aids; and
‘‘(B) professional development necessary to
assist teachers, pupil services personnel, other
staff, and parents in identifying and meeting the
comprehensive needs of eligible children.
‘‘(3) 
PROFESSIONAL
DEVELOPMENT.—Each
school receiving funds under this part for any fiscal
year shall devote sufficient resources to carry out ef-
fectively the professional development activities de-
scribed in subparagraph (F) of subsection (c)(1) in
accordance with section 1119A for such fiscal year,
except that a school may enter into a consortium with
another school to carry out such activities.’’.
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SEC. 105. SCHOOL CHOICE.
Section 1115A is amended to read as follows:
‘‘SEC. 1115A. SCHOOL CHOICE.
‘‘(a) CHOICE PROGRAMS.—A local educational agency
may use funds under this part, in combination with State,
local, and private funds, to develop and implement public
school choice programs, for children eligible for assistance
under this part, which permit parents to select the public
school that their child will attend.
‘‘(b) CHOICE PLAN.—A local educational agency that
chooses to implement a public school choice program shall
first develop a plan that includes a description of how the
local educational agency will use resources under this part
and from other resources to implement the plan, and assur-
ances that—
‘‘(1) all eligible students across grade levels
served under this part will have equal access to the
program;
‘‘(2) the plan will be developed with the involve-
ment of parents and others in the community to be
served and individuals who will carry out the plan,
including administrators, teachers, principals, and
other staff;
‘‘(3) parents of eligible students in the local edu-
cational agency will be given prompt notice of the ex-
istence of the public school choice program and its
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availability to them, and a clear explanation of how
the program will operate;
‘‘(4) the program will include charter schools
and any other public school and shall not include a
school that is or has been identified as a school in
school improvement or is or has been in corrective ac-
tion for the past 2 consecutive years; and
‘‘(5) such local educational agency will comply
with the other requirements of this part.
‘‘(c) TRANSPORTATION.—Transportation services or
the costs of transportation may be provided by the local edu-
cational agency, except that such agency may not use more
than a total of 15 percent of its allocation under this part
for such purposes.’’.
SEC. 
106. 
ACADEMIC 
ASSESSMENT 
AND 
LOCAL 
EDU-
CATIONAL AGENCY AND SCHOOL IMPROVE-
MENT.
The section heading and subsections (a) through (d)
of section 1116 are amended to read as follows:
‘‘SEC. 1116. ACADEMIC ASSESSMENT AND LOCAL EDU-
CATIONAL AGENCY AND SCHOOL IMPROVE-
MENT.
‘‘(a) LOCAL REVIEW.—Each local educational agency
receiving funds under this part shall—
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‘‘(1) use the State academic assessments de-
scribed in the State plan to review annually the
progress of each school served under this part to deter-
mine whether the school is making adequate yearly
progress as defined in section 1111(b)(2)(B);
‘‘(2) publicize and disseminate to teachers and
other staff, parents, students, and the community, the
results of the annual review under paragraph (2);
‘‘(3) review the effectiveness of the actions and
activities the schools are carrying out under this part
with respect to parental involvement assisted under
this Act.
‘‘(b) SCHOOL IMPROVEMENT.—
‘‘(1) IN GENERAL.—
‘‘(A) IDENTIFICATION.—A local educational
agency shall identify for school improvement any
elementary or secondary school served under this
part that—
‘‘(i) fails, for any year, to make ade-
quate yearly progress as defined in the
State’s plan under section 1111(b)(2); or
‘‘(ii) was in school improvement status
under this section immediately before the ef-
fective date of the No Child Left Behind Act
of 2001.
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‘‘(B) DEADLINE.—The identification de-
scribed in subparagraph (A) shall take place not
later than the first day of the school year fol-
lowing such failure to make adequate yearly
progress.
‘‘(C) APPLICATION.—This paragraph does
not apply to a school if almost every student in
the school is meeting the State’s advanced level
of performance.
‘‘(D) REVIEW.—To determine if an elemen-
tary school or a secondary school that is con-
ducting a targeted assistance program under sec-
tion 1115 should be identified for school im-
provement under this subsection, a local edu-
cational agency may choose to review the
progress of only the students in the school who
are served, or are eligible for services, under this
part.
‘‘(E) PUBLIC SCHOOL CHOICE.—In the case
of a school identified for school improvement
under subparagraph (A), the local educational
agency shall, not later than the first day of the
school year following identification, provide all
students enrolled in the school with the option to
transfer to another public school within the local
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educational agency, including a public charter
school, that has not been identified for school im-
provement under subparagraph (A), unless such
an option is prohibited by State law.
‘‘(F) TRANSFER.—Students who use the op-
tion to transfer under subparagraph (E) shall be
enrolled in classes and other activities in the
public school to which they transfer in the same
manner as all other children at the public school.
‘‘(2) OPPORTUNITY
TO
REVIEW
AND
PRESENT
EVIDENCE; TIME LIMIT.—
‘‘(A) Before identifying an elementary
school or a secondary school for school improve-
ment under paragraph (1), for corrective action
under paragraph (6), or for restructuring under
paragraph (7), the local educational agency shall
provide the school with an opportunity to review
the school-level data, including academic assess-
ment data, on which the proposed identification
is based.
‘‘(B) EVIDENCE.—If the principal of a
school proposed for identification under para-
graph (1), (6), or (7) believes, or a majority of
the parents of the students enrolled in such school
believe, that the proposed identification is in
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error for statistical or other substantive reasons,
the principal may provide supporting evidence
to the local educational agency, which shall con-
sider that evidence before making a final deter-
mination.
‘‘(C) FINAL
DETERMINATION.—Not later
than 30 days after a local educational agency
provides the school with the opportunity to re-
view such school level data, the local educational
agency shall make public a final determination
on the status of the school.
‘‘(3) SCHOOL PLAN.—
‘‘(A) REVISED PLAN.—After the resolution
of a review under paragraph (2), each school
identified under paragraph (1) for school im-
provement shall, not later than 3 months after
being so identified, develop or revise a school
plan, in consultation with parents, school staff,
the local educational agency serving the school,
the local school board, and other outside experts,
for approval by such local educational agency.
The school plan shall cover a 2-year period
and—
‘‘(i) incorporate scientifically based re-
search strategies that strengthen the core
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academic subjects in the school and address
the specific academic issues that caused the
school to be identified for school improve-
ment;
‘‘(ii) adopt policies and practices con-
cerning the school’s core academic subjects
that have the greatest likelihood of ensuring
that all groups of students specified in sec-
tion 1111(b)(2)(C)(iii)(I) and (II) and en-
rolled in the school will meet the State’s
proficient level of achievement on the State
academic assessment described in section
1111(b)(4) not later than 10 years after the
date of enactment of the No Child Left Be-
hind Act of 2001;
‘‘(iii) provide an assurance that the
school shall reserve not less than 10 percent
of the funds made available to the school
under this part for each fiscal year that the
school is in school improvement status, for
the purpose of providing to the school’s
teachers and principal high-quality profes-
sional development that—
‘‘(I) directly addresses the aca-
demic 
performance 
problem 
that
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caused the school to be identified for
school improvement;
‘‘(II) meets the requirements for
professional 
development 
activities
under section 1119A; and
‘‘(III) is provided in a manner
that affords greater opportunity for
participating in such professional de-
velopment;
‘‘(iv) specify how the funds described
in clause (iii) will be used to remove the
school from school improvement status;
‘‘(v) establish specific annual, measur-
able goals for continuous and significant
progress by each group of students specified
in section 1111(b)(2)(C)(iii)(I) and (II)
and enrolled in the school that will ensure
that all such groups of students shall meet
the State’s proficient level of achievement on
the State academic assessment described in
section 1111(b)(4) not later than 10 years
after the date of enactment of the No Child
Left Behind Act of 2001;
‘‘(vi) identify how the school will pro-
vide written notification about the identi-
100
•HR 1 RH1&2
fication to parents of each student enrolled
in such school, in a format and, to the ex-
tent practicable, in a language the parents
can understand;
‘‘(vii) specify the responsibilities of the
school, the local educational agency, and the
State educational agency serving the school
under the plan, including the technical as-
sistance to be provided by the local edu-
cational agency under paragraph (4); and
‘‘(viii) incorporate, as appropriate, ex-
tended learning time for students, such as
before school, after school, during the sum-
mer and extension of the school year.
‘‘(B) CONDITIONAL
APPROVAL.—The local
educational agency may condition approval of a
school plan on—
‘‘(i) inclusion of 1 or more of the cor-
rective actions specified in paragraph
(6)(D)(ii); or
‘‘(ii) feedback on the school improve-
ment plan from parents and community
leaders.
‘‘(C) PLAN
IMPLEMENTATION.—Except as
provided in subparagraph (D), a school shall im-
101
•HR 1 RH1&2
plement the school plan (including a revised
plan) expeditiously, but not later than the begin-
ning of the school year following the school year
in which the failure to make adequate yearly
progress took place.
‘‘(D) Notwithstanding subparagraph (C), in
a case in which a plan is not approved prior to
the beginning of a school year, such plan shall
be implemented immediately upon approval.
‘‘(E) LOCAL
EDUCATIONAL
AGENCY
AP-
PROVAL.—The local educational agency shall—
‘‘(i) establish a peer-review process to
assist with review of a school plan prepared
by a school served by the local educational
agency; and
‘‘(ii) promptly review the school plan,
work with the school as necessary, and ap-
prove the school plan if it meets the require-
ments of this paragraph.
‘‘(4) TECHNICAL ASSISTANCE.—
‘‘(A) IN GENERAL.—For each school identi-
fied for school improvement under paragraph
(1), the local educational agency serving the
school shall provide technical assistance as the
102
•HR 1 RH1&2
school develops and implements the school plan
throughout the duration of such plan.
‘‘(B) SPECIFIC
ASSISTANCE.—Such tech-
nical assistance—
‘‘(i) shall include assistance in ana-
lyzing data from the academic assessments
required under section 1111(b)(4), and other
samples of student work, to identify and ad-
dress instructional problems and solutions;
‘‘(ii) shall include assistance in identi-
fying and implementing professional devel-
opment, instructional strategies, and meth-
ods of instruction that are based upon sci-
entifically based research and that have
proven effective in addressing the specific
instructional issues that caused the school to
be identified for school improvement;
‘‘(iii) shall include assistance in ana-
lyzing and revising the school’s budget so
that the school resources are more effectively
allocated for the activities most likely to in-
crease student achievement and to remove
the school from school improvement status;
and
‘‘(iv) may be provided—
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•HR 1 RH1&2
‘‘(I) by the local educational agen-
cy, through mechanisms authorized
under section 1117; or
‘‘(II) by the State educational
agency, an institution of higher edu-
cation (in full compliance with all the
reporting provisions of title II of the
Higher Education Act of 1965), a pri-
vate not-for-profit organization or for-
profit organization, an educational
service agency, or another entity with
experience in helping schools improve
performance.
‘‘(C) SCIENTIFICALLY BASED RESEARCH.—
Technical assistance provided under this section
by a local educational agency or an entity ap-
proved by that agency shall be based on scientif-
ically based research.
‘‘(5) NOTIFICATION TO PARENTS.—A local edu-
cational agency shall promptly provide parents (in a
format and, to the extent practicable, in a language
they can understand) of each student in an elemen-
tary school or a secondary school identified for school
improvement—
104
•HR 1 RH1&2
‘‘(A) an explanation of what the school im-
provement identification means, and how the
school identified for school improvement com-
pares in terms of academic achievement to other
elementary schools or secondary schools served by
the local educational agency and the State edu-
cational agency involved;
‘‘(B) the reasons for the identification;
‘‘(C) an explanation of what the school
identified for school improvement is doing to ad-
dress the problem of low achievement;
‘‘(D) an explanation of what the local edu-
cational agency or State educational agency is
doing to help the school address the achievement
problem;
‘‘(E) an explanation of how parents de-
scribed in this paragraph can become involved in
addressing the academic issues that caused the
school to be identified for school improvement;
and
‘‘(F) an explanation regarding the option of
their child to transfer to another public school,
including a public charter school.
‘‘(6) CORRECTIVE ACTION.—
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•HR 1 RH1&2
‘‘(A) IN GENERAL.—In this subsection, the
term ‘corrective action’ means action, consistent
with State law, that—
‘‘(i) substantially and directly re-
sponds to—
‘‘(I) the consistent academic fail-
ure of a school that caused the local
educational agency to take such action;
and
‘‘(II) any underlying staffing,
curriculum, or other problems in the
school; and
‘‘(ii) is designed to increase substan-
tially the likelihood that students enrolled
in the school identified for corrective action
will perform at the State’s proficient and
advanced levels of achievement on the State
academic assessment described in section
1111(b)(4).
‘‘(B) SYSTEM.—In order to help students
served under this part meet challenging State
academic standards, each local educational agen-
cy shall implement a system of corrective action
in accordance with subparagraphs (C) through
(F) and paragraphs (7) through (9).
106
•HR 1 RH1&2
‘‘(C) ROLE OF LOCAL EDUCATIONAL AGEN-
CY.—The local educational agency—
‘‘(i) after providing public school
choice under paragraph (1)(E) and tech-
nical assistance under paragraph (4), shall
identify for corrective action and take cor-
rective action with respect to any school
served by the local educational agency
under this part that—
‘‘(I) fails to make adequate yearly
progress, as defined by the State under
section 1111(b)(2), at the end of the
first full school year following identi-
fication under paragraph (1); or
‘‘(II) was in school-improvement
status for 2 years or in corrective-ac-
tion status under this subsection imme-
diately before the effective date of the
No Child Left Behind Act of 2001; and
‘‘(ii) shall continue to provide tech-
nical assistance consistent with paragraph
(4) while instituting any corrective action
under clause (i); and
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•HR 1 RH1&2
‘‘(D) REQUIREMENTS.—In the case of a
school described in subparagraph (C)(i), the local
educational agency shall both—
‘‘(i) continue to provide all students
enrolled in the school with the option to
transfer to another public school within the
local educational agency, including a public
charter school, that has not been identified
for school improvement under paragraph
(1), unless such an option is prohibited by
State law; and
‘‘(ii) take at least 1 of the following
corrective actions:
‘‘(I) Replace the school staff which
are relevant to the failure to make ade-
quate yearly progress.
‘‘(II) Institute and fully imple-
ment a new curriculum, including pro-
viding appropriate professional devel-
opment for all relevant staff, that is
based on scientifically based research
and offers substantial promise of im-
proving educational performance for
low-performing students and the school
meeting adequate yearly progress.
108
•HR 1 RH1&2
‘‘(III) Significantly decrease man-
agement authority at the school level.
‘‘(IV) Appoint an outside expert
to advise the school on its progress to-
ward 
meeting 
adequate 
yearly
progress, based on its school plan
under this subsection.
‘‘(V) Extend the school year or
school day.
‘‘(VI) Restructure the internal or-
ganizational structure of the school.
‘‘(E) DELAY.—A local educational agency
may delay, for a period not to exceed 1 year, im-
plementation of corrective action only if the
school’s failure to make adequate yearly progress
was justified due to exceptional or uncontrollable
circumstances, such as a natural disaster or a
precipitous and unforeseen decline in the finan-
cial resources of the local educational agency or
school.
‘‘(F) PUBLICATION AND DISSEMINATION.—
The local educational agency shall publish and
disseminate information regarding any correc-
tive action the local educational agency takes
under this paragraph at a school—
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‘‘(i) to the public and to the parents of
each student enrolled in the school subject to
corrective action;
‘‘(ii) in a format and, to the extent
practicable, in a language that the parents
can understand; and
‘‘(iii) through such means as the Inter-
net, the media, and public agencies.
‘‘(7) RESTRUCTURING.—
‘‘(A) FAILURE TO MAKE ADEQUATE YEARLY
PROGRESS.—If—
‘‘(i) a school is subject to corrective ac-
tion under paragraph (6) for one full school
year, and at the end of such year continues
to fail to make adequate yearly progress
and students in the school who are from eco-
nomically disadvantaged families are not
making statistically significant progress in
the subjects included in the State’s defini-
tion of adequate yearly progress; or
‘‘(ii) for 2 additional years a school
subject to corrective action under paragraph
(6) fails to make adequate yearly progress,
the local educational agency shall—
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‘‘(I) provide all students enrolled
in the school with the option to trans-
fer to another public school within the
local educational agency, including a
public charter school, that has not been
identified 
for 
school 
improvement
under paragraph (1), unless prohibited
by State law;
‘‘(II) make supplemental instruc-
tional services available, consistent
with subsection (d)(1); and
‘‘(III) prepare a plan and make
necessary arrangements to carry out
subparagraph (B).
‘‘(B) 
ALTERNATIVE
GOVERNANCE.—Not
later than the beginning of the school year fol-
lowing the year in which the local educational
agency implements subparagraph (A), the local
educational agency shall implement 1 of the fol-
lowing alternative governance arrangements for
the school consistent with State law:
‘‘(i) Reopening the school as a public
charter school.
‘‘(ii) Replacing the principal and all
or most of the school staff that are relevant
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to the failure to make adequate yearly
progress.
‘‘(iii) Entering into a contract with an
entity, such as a private management com-
pany, to operate the public school.
‘‘(iv) Turning the operation of the
school over to the State, if permitted under
State law and agreed to by the State.
‘‘(C) AVAILABLE RESULTS.—The State edu-
cational agency shall ensure that, for any school
year in which a school is subject to school im-
provement under this subsection, the results of
State academic assessments for that school are
available to the local educational agency by the
end of the school year in which the academic as-
sessments are administered.
‘‘(D) PROMPT
NOTICE.—The local edu-
cational agency shall provide prompt notice to
teachers and parents whenever subparagraph (A)
or (B) applies, shall provide them adequate op-
portunity to comment before taking any action
under those subparagraphs and to participate in
developing 
any 
plan 
under 
subparagraph
(A)(iii), and shall provide parents an expla-
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•HR 1 RH1&2
nation of the options under subparagraph (A)(i)
and (ii).
‘‘(8) TRANSPORTATION.—In any case described
in paragraph (6)(D)(i) and (7)(A)(ii)(I) the local
educational agency—
‘‘(A) shall provide, or shall pay for the pro-
vision of, transportation for the student to the
public school the child attends; and
‘‘(B) may use not more than a total of 15
percent of its allocation under this part for that
purpose.
‘‘(9) COOPERATIVE
AGREEMENT.—In any case
described in paragraph (6)(D)(i) or (7)(A)(ii)(I), if
all public schools in the local educational agency to
which a child may transfer to, are identified for
school improvement, the agency shall, to the extent
practicable, establish a cooperative agreement with
other local educational agencies in the area for a
transfer.
‘‘(10) DURATION.—If any school identified for
corrective action or restructuring—
‘‘(A) makes adequate yearly progress for 2
consecutive years, the local educational agency
need no longer subject it to corrective action or
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restructuring nor identify it as in need of im-
provement; or
‘‘(B) fails to make adequate yearly progress,
but children from low-income families in the
school make statistically significant educational
progress for 1 year, the local educational agency
shall place or continue as appropriate the school
in corrective action under paragraph (6).
‘‘(11) STATE
RESPONSIBILITIES.—The State
shall—
‘‘(A) make technical assistance under sec-
tion 1117 available to all schools identified for
school improvement and restructuring under this
subsection;
‘‘(B) if it determines that a local edu-
cational agency has failed to carry out its re-
sponsibilities under this subsection, take such
corrective actions as the State finds appropriate
and in compliance with State law; and
‘‘(C) ensure that academic assessment re-
sults under this part are provided to schools
within the same school year in which the assess-
ment was given.
‘‘(c) STATE REVIEW AND LOCAL EDUCATIONAL AGEN-
CY IMPROVEMENT.—
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‘‘(1) IN GENERAL.—A State shall—
‘‘(A) annually review the progress of each
local educational agency receiving funds under
this part to determine whether schools receiving
assistance under this part are making adequate
yearly progress as defined in section 1111(b)(2)
toward meeting the State’s student academic
achievement standards; and
‘‘(B) publicize and disseminate to local edu-
cational agencies, teachers and other staff, par-
ents, students, and the community the results of
the State review consistent with section 1111, in-
cluding statistically sound disaggregated results,
as required by section 1111(b)(2).
‘‘(2) IDENTIFICATION
OF
LOCAL
EDUCATIONAL
AGENCY FOR IMPROVEMENT.—A State shall identify
for improvement any local educational agency that—
‘‘(A) for 2 consecutive years failed to make
adequate yearly progress as defined in the
State’s plan under section 1111(b)(2); or
‘‘(B) was in improvement status under this
section as this section was in effect on the day
preceding the date of the enactment of the No
Child Left Behind Act of 2001.
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‘‘(3) TRANSITION.—The 2-year period described
in paragraph (2)(A) shall include any continuous pe-
riod of time immediately preceding the date of the en-
actment of the No Child Left Behind Act of 2001, dur-
ing which a local educational agency did not make
adequate yearly progress as defined in the State’s
plan, as such plan was in effect on the day preceding
the date of such enactment.
‘‘(4) TARGETED
ASSISTANCE
SCHOOLS.—For
purposes of targeted assistance schools in a local edu-
cational agency, a State educational agency may
choose to review the progress of only the students in
such schools who are served or are eligible for services
under this part.
‘‘(5) OPPORTUNITY
TO
REVIEW
AND
PRESENT
EVIDENCE.—
‘‘(A) REVIEW.—Before identifying a local
educational agency for improvement under para-
graph (2), a State educational agency shall pro-
vide the local educational agency with an oppor-
tunity to review the local educational agency
data, including academic assessment data, on
which that proposed identification is based.
‘‘(B) SUPPORTING EVIDENCE.—If the local
educational agency believes that the proposed
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•HR 1 RH1&2
identification is in error for statistical or other
substantive reasons, it may provide supporting
evidence to the State educational agency, which
such agency shall consider before making a final
determination not later than 30 days after the
State educational agency provides the local edu-
cational agency with the opportunity to review
such data under subparagraph (A).
‘‘(6) NOTIFICATION
TO
PARENTS.—The State
educational agency shall promptly notify parents in
a format, and to the extent practicable in a language
they can understand, of each student enrolled in a
school in a local educational agency identified for im-
provement, of the results of the review under para-
graph (1) and, if the agency is identified as in need
of improvement, the reasons for that identification
and how parents can participate in upgrading the
quality of the local educational agency.
‘‘(7) LOCAL EDUCATIONAL AGENCY REVISIONS.—
‘‘(A) PLAN.—Each local educational agency
identified under paragraph (2) shall, not later
than 3 months after being so identified, develop
or revise a local educational agency plan, in con-
sultation with parents, school staff, and others.
Such plan shall—
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•HR 1 RH1&2
‘‘(i) incorporate scientifically based re-
search strategies that strengthen the core
academic program in the local educational
agency;
‘‘(ii) identify specific goals and objec-
tives the local educational agency will un-
dertake to make adequate yearly progress
and which—
‘‘(I) have the greatest likelihood of
improving the performance of partici-
pating children in meeting the State’s
student academic achievement stand-
ards;
‘‘(II) address the professional de-
velopment needs of staff; and
‘‘(III) include specific measurable
achievement goals and targets for each
of the groups of students identified in
the disaggregated data pursuant to sec-
tion 1111(b)(2)(C)(iii)(I) and (II);
‘‘(iii) incorporate, as appropriate, ex-
tended learning time for students such as
before school, after school, during the sum-
mer, and extension of the school year.
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•HR 1 RH1&2
‘‘(iv) identify how the local educational
agency will provide written notification to
parents in a format, and to the extent prac-
ticable in a language, that they can under-
stand, pursuant to paragraph (6); and
‘‘(v) specify the responsibilities of the
State educational agency and the local edu-
cational agency under the plan.
‘‘(B) IMPLEMENTATION.—The local edu-
cational agency shall implement its plan or re-
vised plan expeditiously, but not later than the
beginning of the school year after which the
school has been identified for improvement.
‘‘(8) STATE RESPONSIBILITY.—
‘‘(A) IN
GENERAL.—For each local edu-
cational agency identified under paragraph (2),
the State shall provide technical or other assist-
ance, if requested, as authorized under section
1117, to better enable the local educational
agency—
‘‘(i) to develop and implement its re-
vised plan as approved by the State edu-
cational agency consistent with the require-
ments of this section; and
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•HR 1 RH1&2
‘‘(ii) to work with schools needing im-
provement.
‘‘(B) TECHNICAL
ASSISTANCE.—Technical
assistance provided under this section by the
State educational agency or an entity authorized
by such agency shall be based upon scientifically
based research.
‘‘(9) CORRECTIVE ACTION.—In order to help stu-
dents served under this part meet challenging State
academic standards, each State shall implement a
system of corrective action in accordance with the fol-
lowing:
‘‘(A) IN
GENERAL.—After providing tech-
nical assistance under paragraph (8) and subject
to subparagraph (D), the State—
‘‘(i) may take corrective action at any
time with respect to a local educational
agency that has been identified under para-
graph (2);
‘‘(ii) shall take corrective action with
respect to any local educational agency that
fails to make adequate yearly progress, as
defined by the State, after the end of the sec-
ond year following its identification under
paragraph (2); and
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•HR 1 RH1&2
‘‘(iii) shall continue to provide tech-
nical assistance while instituting any cor-
rective action under clause (i) or (ii).
‘‘(B) DEFINITION.—As used in this para-
graph, the term ‘corrective action’ means action,
consistent with State law, that—
‘‘(i) substantially and directly re-
sponds to the consistent academic failure
that caused the State to take such action
and to any underlying staffing, curricular,
or other problems in the school; and
‘‘(ii) is designed to meet the goal of
having all students served under this part
perform at the proficient and advanced per-
formance levels.
‘‘(C) CERTAIN LOCAL EDUCATIONAL AGEN-
CIES.—In the case of a local educational agency
described in this paragraph, the State edu-
cational agency shall take not less than 1 of the
following corrective actions:
‘‘(i) Withhold funds from the local edu-
cational agency.
‘‘(ii) Replace the school district per-
sonnel who are relevant to the failure to
make adequate year progress.
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•HR 1 RH1&2
‘‘(iii) Remove particular schools from
the jurisdiction of the local educational
agency and establish alternative arrange-
ments for public governance and super-
vision of such schools.
‘‘(iv) Appoint, through the State edu-
cational agency, a receiver or trustee to ad-
minister the affairs of the local educational
agency in place of the superintendent and
school board.
‘‘(v) Abolish or restructure the local
educational agency.
‘‘(vi) Authorize students to transfer
from a school operated by a local edu-
cational agency to a higher performing pub-
lic school operated by another local edu-
cational agency, or to a public charter
school and provide such students transpor-
tation (or the costs of transportation to such
schools), in conjunction with not less than 1
additional action described under this para-
graph.
‘‘(D) HEARING.—Prior to implementing
any corrective action, the State educational
agency shall provide due process and a hearing
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•HR 1 RH1&2
to the affected local educational agency, if State
law provides for such process and hearing.
‘‘(E) PUBLICATION.—The State educational
agency shall publish, and disseminate to parents
and the public any corrective action it takes
under this paragraph through such means as the
Internet, the media, and public agencies.
‘‘(F) DELAY.—A local educational agency
may delay, for a period not to exceed 1 year, im-
plementation of corrective action if the failure to
make adequate yearly progress was justified due
to exceptional or uncontrollable circumstances
such as a natural disaster or a precipitous and
unforeseen decline in the financial resources of
the local educational agency or school.
‘‘(10) SPECIAL RULE.—A local educational agen-
cy, that, for at least 2 of the 3 years following identi-
fication under paragraph (2), makes adequate yearly
progress shall no longer be identified for improve-
ment.
‘‘(d) PARENTAL OPTIONS.—
‘‘(1) In any case described in subsection
(b)(7)(A)(ii)(II), the local educational agency shall
permit the parents of each eligible child to obtain
supplemental educational services for such child from
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•HR 1 RH1&2
a provider, as approved by the State educational
agency in accordance with reasonable criteria that it
shall adopt. Such criteria shall require a provider to
demonstrate a record of effectiveness, or the potential
of effectiveness, in providing supplemental instruc-
tional services to children, consistent with the instruc-
tional program of the local educational agency and
the academic standards described under section 1111.
‘‘(2) SELECTION.—In obtaining services under
this paragraph, a parent shall select a provider that
meets the criteria described under paragraph (1). The
local educational agency shall provide assistance,
upon request, to parents in the selection of a provider
to provide supplemental instructional services.
‘‘(3) CONTRACT.—In the case of the selection of
a provider under paragraph (2) by a parent, the local
educational agency shall enter into a contract with
such provider. Such contract shall—
‘‘(A) require the local educational agency to
develop, with parents (and the provider they
have chosen), a statement of specific performance
goals for the student, how the student’s progress
will be measured, and a timetable for improving
achievement;
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•HR 1 RH1&2
‘‘(B) provide for the termination of such
contract with a provider that is unable to meet
such goals and timetables; and
‘‘(C) contain provisions with respect to the
making of payments to the provider by the local
educational agency.
‘‘(4) ADDITIONAL LOCAL EDUCATIONAL AGENCY
RESPONSIBILITIES.—Each local educational agency
subject to this paragraph shall provide annual notice
to parents (if feasible, in the parents’ language) of the
availability of services under this paragraph and the
eligible providers of those services.
‘‘(5) STATE EDUCATIONAL AGENCY RESPONSIBIL-
ITIES.—Each State educational agency shall—
‘‘(A) consult with local educational agencies
and promote maximum participation by pro-
viders to ensure, to the extent practicable, that
parents have as many choices of those providers
as possible;
‘‘(B) develop criteria consistent with para-
graph (6) and apply such criteria to potential
providers to determine which, based on the qual-
ity and effectiveness of their services, are eligible
to participate;
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•HR 1 RH1&2
‘‘(C) maintain an updated list of approved
providers across the State, from which parents
may select;
‘‘(D) develop and implement standards and
techniques for monitoring the quality and effec-
tiveness of the services offered by providers, and
withdraw approval from those that fail to meet
those standards for two consecutive years;
‘‘(E) provide annual notice to potential
providers of supplemental services of the oppor-
tunity to provide services under this paragraph
and of the applicable procedures for obtaining
approval from the State educational agency to be
a provider of those services.
‘‘(6) CRITERIA FOR PROVIDERS.—In order for a
provider to be included on the State list under para-
graph (5)(c), a provider shall agree to the following:
‘‘(A) Provide parents of children receiving
supplemental instructional services under this
paragraph and the appropriate local educational
agency with information on the progress of their
children in increasing achievement, in a format
and, to the extent practicable, a language such
parents can understand.
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•HR 1 RH1&2
‘‘(B) Ensure that instruction and content
used by the provider is consistent with the in-
struction and content used by the local edu-
cational agency and State.
‘‘(C) Require a provider to meet all appli-
cable Federal, State, and local health, safety and
civil rights laws.
‘‘(D) Ensure that all instruction and con-
tent under this paragraph shall be secular, neu-
tral, and nonideological.
‘‘(7) COSTS.—
‘‘(A) The costs of administration of this
paragraph and the costs of providing such sup-
plemental instructional services shall be limited
to the total of 40 percent of the per child alloca-
tion under subpart 2 of each school identified
under subsection (b)(7)(A)(ii)(II);
‘‘(B) ADDITIONAL FUNDS.—If the allocation
under subparagraph (A) is insufficient to pro-
vide services for all eligible students that have se-
lected a provider, a local educational agency
may use funds under subpart 1 of part A of title
IV to pay for additional costs;
‘‘(C) TRANSPORTATION
COSTS.—A local
educational agency may use up to 15 percent of
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•HR 1 RH1&2
its allocation under subpart 2 for transportation
costs.
‘‘(8) FUNDS PROVIDED BY STATE EDUCATIONAL
AGENCY.—Each State educational agency may use
funds that it reserves under this part, and subpart 1
of part A of title IV to provide local educational agen-
cies that do not have sufficient funds to provide serv-
ices under this paragraph for all eligible students re-
questing such services.
‘‘(9) DURATION.—The local educational agency
shall continue to provide supplemental instructional
services to enrolled children receiving such services
under this paragraph until the child completes the
grade corresponding to the highest grade offered at the
public school which was identified for restructuring
under subsection (b)(7), or until such school, so long
as the child attends such school, is not identified
under subsection (b)(1), (b)(6), or (b)(7), whichever
comes earlier.
‘‘(10) DEFINITIONS.—As used in this subsection,
the term—
‘‘(A) ‘eligible child’ means a child from a
low-income family, as determined by the local
educational agency for purposes of allocating
funds to schools under section 1113(c)(1);
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•HR 1 RH1&2
‘‘(B) ‘supplemental instructional services’
means tutoring and other supplemental academic
enrichment services that are in addition to in-
struction provided during the school day and are
specifically designed to increase the academic
achievement of eligible children on the academic
assessments required under section 1111; and
‘‘(C) ‘provider’ means a non-profit or a for-
profit entity which has a demonstrated record of
effectiveness or the potential of effectiveness—
‘‘(i) in providing supplemental in-
structional services that are consistent with
the instructional program of the local edu-
cational agency and the academic standards
described under section 1111; and
‘‘(ii) in sound fiscal management;
‘‘(D) ‘per child allocation’ means an
amount that is equal to at least—
‘‘(i) the amount of the school’s alloca-
tion under subpart 2; divided by
‘‘(ii) the number of children from low-
income families enrolled in the school.
‘‘(11) PROHIBITION.—Nothing contained in this
paragraph shall permit the making of any payment
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•HR 1 RH1&2
under this paragraph for religious worship or in-
struction.’’.
SEC. 107. STATE ASSISTANCE FOR SCHOOL SUPPORT AND
IMPROVEMENT.
Section 1117 is amended to read as follows:
‘‘SEC. 1117. STATE ASSISTANCE FOR SCHOOL SUPPORT AND
IMPROVEMENT.
‘‘(a) SYSTEM FOR SUPPORT.—Each State shall estab-
lish a statewide system of intensive and sustained support
and improvement for local educational agencies and schools
receiving funds under this part, in order to increase the
opportunity for all students in those agencies and schools
to meet the State’s academic content standards and student
academic achievement standards.
‘‘(b) PRIORITIES.—In carrying out this section, a
State shall—
‘‘(1) first, provide support and assistance to local
educational agencies subject to corrective action under
section 1116 and assist schools, in accordance with
section 1116(b)(10), for which a local educational
agency has failed to carry out its responsibilities
under paragraphs (6) and (7) of section 1116(b);
‘‘(2) second, provide support and assistance to
other local educational agencies identified as in need
of improvement under section 1116(b); and
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‘‘(3) third, provide support and assistance to
other local educational agencies and schools partici-
pating under this part that need that support and as-
sistance in order to achieve the purpose of this part.
‘‘(c) APPROACHES.—In order to achieve the purpose
described in subsection (a), each such system shall provide
technical assistance and support through such approaches
as—
‘‘(1) school support teams, composed of individ-
uals who are knowledgeable about scientifically based
research and practice on teaching and learning, par-
ticularly about strategies for improving educational
results for low-achieving children; and
‘‘(2) the designation and use of ‘‘Distinguished
Educators’’, chosen from schools served under this
part that have been especially successful in improving
academic achievement.
‘‘(d) FUNDS.—Each State—
‘‘(1) shall use funds reserved under section
1003(a); and
‘‘(2) may use State administrative funds author-
ized under section 1002(i) for such purpose to estab-
lish a Statewide system of support.
‘‘(e) ALTERNATIVES.—The State may devise addi-
tional approaches to providing the assistance described in
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•HR 1 RH1&2
paragraphs (1) and (2) of subsection (c), such as providing
assistance through institutions of higher education and edu-
cational service agencies or other local consortia, and pri-
vate providers of scientifically based technical assistance
and the State may seek approval from the Secretary to use
funds made available under section 1002(j) for such ap-
proaches as part of the State plan.’’.
SEC. 108. ACADEMIC ACHIEVEMENT AWARDS PROGRAM.
Sections 1118 through 1127 are amended to read as
follows:
‘‘SEC. 1117A. ACADEMIC ACHIEVEMENT AWARDS PROGRAM.
‘‘(a) ESTABLISHMENT OF ACADEMIC ACHIEVEMENT
AWARDS PROGRAM.—
‘‘(1) IN GENERAL.—Each State receiving a grant
under this part may establish a program for making
academic achievement awards to recognize and finan-
cially reward schools served under this part that
have—
‘‘(A) significantly closed the achievement
gap between the groups of students defined in
section 1111(b)(2); or
‘‘(B) exceeded their adequate yearly progress
goals, consistent with section 1111(b)(2), for 2 or
more consecutive years.
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‘‘(2) AWARDS TO TEACHERS.—A State program
under paragraph (1) may also recognize and provide
financial awards to teachers teaching in a school de-
scribed in such paragraph whose students consistently
make significant gains in academic achievement in
the areas in which the teacher provides instruction.
‘‘(b) FUNDING.—
‘‘(1) RESERVATION OF FUNDS BY STATE.—For
the purpose of carrying out this section, each State re-
ceiving a grant under this part may reserve, from the
amount (if any) by which the funds received by the
State under this part for a fiscal year exceed the
amount received by the State under this part for the
preceding fiscal year, not more than 30 percent of
such excess amount.
‘‘(2) USE
WITHIN
YEARS.—Notwithstanding
any other provision of law, the amount reserved
under paragraph (1) by a State for each fiscal year
shall remain available to the State until expended for
a period not exceeding 3 years.
‘‘(3) SPECIAL ALLOCATION RULE FOR SCHOOLS
IN HIGH-POVERTY AREAS.—
‘‘(A) IN GENERAL.—Each State receiving a
grant under this part shall distribute at least 75
percent of the amount reserved under paragraph
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•HR 1 RH1&2
(1) for each fiscal year to schools described in
subparagraph (B), or to teachers teaching in
such schools.
‘‘(B) SCHOOL
DESCRIBED.—A school de-
scribed in subparagraph (A) is a school whose
student population is in the highest quartile of
schools statewide in terms of the percentage of
children from low income families.
‘‘SEC. 1118. PARENTAL INVOLVEMENT.
‘‘(a) LOCAL EDUCATIONAL AGENCY POLICY.—
‘‘(1) IN GENERAL.—A local educational agency
may receive funds under this part only if such agency
implements programs, activities, and procedures for
the involvement of parents in programs assisted under
this part consistent with the provisions of this section.
Such activities shall be planned and implemented
with meaningful consultation with parents of partici-
pating children.
‘‘(2) WRITTEN POLICY.—Each local educational
agency that receives funds under this part shall de-
velop jointly with, agree upon with, and distribute to,
parents of participating children a written parent in-
volvement policy that is incorporated into the local
educational agency’s plan developed under section
1112, establishes the expectations for parent involve-
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•HR 1 RH1&2
ment, and describes how the local educational agency
will—
‘‘(A) involve parents in the joint develop-
ment of the plan under section 1112, and the
process of school review and improvement under
section 1116;
‘‘(B) provide the coordination, technical as-
sistance, and other support necessary to assist
participating schools in planning and imple-
menting effective parent involvement;
‘‘(C) build the schools’ and parents’ capac-
ity for strong parent involvement as described in
subsection (e);
‘‘(D) coordinate and integrate parental in-
volvement strategies under this part with paren-
tal involvement strategies under other programs,
such as Head Start, Early Reading First, Read-
ing First, Even Start, the Parents as Teachers
Program, the Home Instruction Program for
Preschool Youngsters, and State-run preschool
programs;
‘‘(E) conduct, with the involvement of par-
ents, an annual evaluation of the content and ef-
fectiveness of the parental involvement policy in
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improving the academic quality of the schools
served under this part; and
‘‘(F) involve parents in the activities of the
schools served under this part.
‘‘(3) RESERVATION.—
‘‘(A) IN GENERAL.—Each local educational
agency shall reserve not less than 1 percent of
such agency’s allocation under this part to carry
out this section, including family literacy and
parenting skills, except that this paragraph shall
not apply if 1 percent of such agency’s allocation
under this part (other than funds allocated
under section 1002(g) for the fiscal year for
which the determination is made is $5,000 or
less.
‘‘(B) PARENTAL
INPUT.—Parents of chil-
dren receiving services under this part shall be
involved in the decisions regarding how funds re-
served under subparagraph (A) are allotted for
parental involvement activities.
‘‘(C) DISTRIBUTION
OF
FUNDS.—Not less
than 95 percent of the funds reserved under sub-
paragraph (A) shall be distributed to schools
served under this part.
‘‘(b) SCHOOL PARENTAL INVOLVEMENT POLICY.—
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‘‘(1) IN
GENERAL.—Each school served under
this part shall jointly develop with, and distribute to,
parents of participating children a written parental
involvement policy, agreed upon by such parents, that
shall describe the means for carrying out the require-
ments of subsections (c) through (f). Parents shall be
notified of the policy in a format, and to the extent
practicable in a language they can understand. Such
policy shall be updated periodically to meet the
changing needs of parents and the school.
‘‘(2) SPECIAL RULE.—If the school has a paren-
tal involvement policy that applies to all parents,
such school may amend that policy, if necessary, to
meet the requirements of this subsection.
‘‘(3) AMENDMENT.—If the local educational
agency has a school district-level parental involve-
ment policy that applies to all parents, such agency
may amend that policy, if necessary, to meet the re-
quirements of this subsection.
‘‘(4) PARENTAL COMMENTS.—If the plan under
section 1112 is not satisfactory to the parents of par-
ticipating children, the local educational agency shall
submit any parent comments with such plan when
such local educational agency submits the plan to the
State.
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‘‘(c) POLICY INVOLVEMENT.—Each school served under
this part shall—
‘‘(1) convene an annual meeting, at a convenient
time, to which all parents of participating children
shall be invited and encouraged to attend, to inform
parents of their school’s participation under this part
and to explain this part, its requirements, and their
right to be involved;
‘‘(2) offer a flexible number of meetings, such as
meetings in the morning or evening, and may pro-
vide, with funds provided under this part, transpor-
tation, child care, or home visits, as such services re-
late to parental involvement;
‘‘(3) involve parents, in an organized, ongoing,
and timely way, in the planning, review, and im-
provement of programs under this part, including the
school parental involvement policy and the joint de-
velopment of the schoolwide program plan under sec-
tion 1114(c)(2) and (c)(3), except that if a school has
in place a process for involving parents in the joint
planning and design of its programs, the school may
use that process, if such process includes an adequate
representation of parents of participating children;
‘‘(4) provide parents of participating children—
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‘‘(A) timely information about programs
under this part;
‘‘(B) a description and explanation of the
curriculum in use at the school, the forms of aca-
demic assessment used to measure student
progress, and the proficiency levels students are
expected to meet; and
‘‘(5) if the schoolwide program plan under sec-
tion 1114(c)(2) and (c)(3) is not satisfactory to the
parents of participating children, submit any parent
comments on the plan when the school makes the plan
available to the local educational agency.
‘‘(d) SHARED RESPONSIBILITIES FOR HIGH STUDENT
PERFORMANCE.—As a component of the school-level paren-
tal involvement policy developed under subsection (b), each
school served under this part shall agree with parents of
children served under this part regarding how parents, the
entire school staff, and students will share the responsibility
for improved student achievement and the means by which
the school and parents will build and develop a partnership
to help children achieve the State’s high academic stand-
ards.
‘‘(e) BUILDING CAPACITY FOR INVOLVEMENT.—To en-
sure effective involvement of parents and to support a part-
nership among the school, parents, and the community to
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improve student achievement, each school and local edu-
cational agency—
‘‘(1) shall provide assistance to participating
parents in such areas as understanding the State’s
academic content standards and State student aca-
demic achievement standards, State and local aca-
demic assessments, the requirements of this part, and
how to monitor a child’s progress and work with edu-
cators to improve the performance of their children;
‘‘(2) shall provide materials and training to help
parents to work with their children to improve their
children’s achievement;
‘‘(3) shall educate teachers, pupil services per-
sonnel, principals and other staff, with the assistance
of parents, in the value and utility of contributions
of parents, and in how to reach out to, communicate
with, and work with parents as equal partners, im-
plement and coordinate parent programs, and build
ties between parents and the school;
‘‘(4) shall coordinate and integrate parent in-
volvement programs and activities with Head Start,
Reading First, Early Reading First, Even Start, the
Home Instruction Programs for Preschool Youngsters,
the Parents as Teachers Program, and public pre-
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school programs and other programs, to the extent
feasible and appropriate;
‘‘(5) shall ensure, to the extent possible, that in-
formation related to school and parent programs,
meetings, and other activities is sent to the parents of
participating children in the language used by such
parents;
‘‘(6) may involve parents in the development of
training for teachers, principals, and other educators
to improve the effectiveness of such training in im-
proving instruction and services to the children of
such parents in a format, and to the extent prac-
ticable, in a language the parent can understand;
‘‘(7) may provide necessary literacy training
from funds received under this part if the local edu-
cational agency has exhausted all other reasonably
available sources of funding for such activities;
‘‘(8) may pay reasonable and necessary expenses
associated with local parental involvement activities,
including transportation and child care costs, to en-
able parents to participate in school-related meetings
and training sessions;
‘‘(9) may train parents to enhance the involve-
ment of other parents;
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‘‘(10) may arrange for teachers or other edu-
cators, who work directly with participating children,
to conduct in-home conferences with parents who are
unable to attend such conferences at school;
‘‘(11) may adopt and implement model ap-
proaches to improving parental involvement;
‘‘(12) may establish a districtwide parent advi-
sory council to provide advice on all matters related
to parental involvement in programs supported under
this part;
‘‘(13) may develop appropriate roles for commu-
nity-based organizations and businesses in parent in-
volvement activities; and
‘‘(14) may arrange for teachers or other edu-
cators, who work directly with participating children,
to conduct in-home conferences with parents who are
unable to attend such conferences at school.
‘‘(f) ACCESSIBILITY.—In carrying out the parental in-
volvement requirements of this part, local educational agen-
cies and schools, to the extent practicable, shall provide full
opportunities for the participation of parents with limited
English proficiency or with disabilities and parents of mi-
gratory children, including providing information and
school reports required under section 1111 in a format, and
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to the extent practicable, in a language such parents under-
stand.
‘‘SEC. 1119. QUALIFICATIONS FOR TEACHERS AND PARA-
PROFESSIONALS.
‘‘(a) TEACHERS.—
‘‘(1) IN GENERAL.—Each local educational agen-
cy receiving assistance under this part shall ensure
that all teachers hired on or after the effective date of
the No Child Left Behind Act of 2001 and teaching
in a program supported with funds under this part
are fully qualified.
‘‘(2) PLAN.—Each State receiving assistance
under this part shall develop and submit to the Sec-
retary a plan to ensure that all teachers teaching
within the State are fully qualified not later than De-
cember 31, 2005. Such plan shall include an assur-
ance that the State will require each local educational
agency and school receiving funds under this part
publicly to report their annual progress on the agen-
cy’s and the school’s performance in increasing the
percentage of classes in core academic areas taught by
fully qualified teachers.
‘‘(b) NEW PARAPROFESSIONALS.—
‘‘(1) IN GENERAL.—Each local educational agen-
cy receiving assistance under this part shall ensure
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that all paraprofessionals hired 1 year or more after
the effective date of the No Child Left Behind Act of
2001 and working in a program supported with
funds under this part shall—
‘‘(A) have completed at least 2 years of
study at an institution of higher education;
‘‘(B) have obtained an associate’s (or high-
er) degree; or
‘‘(C) have met a rigorous standard of qual-
ity that demonstrates, through a formal aca-
demic assessment—
‘‘(i) knowledge of, and the ability to
assist in instructing reading, writing, and
math; or
‘‘(ii) knowledge of, and the ability to
assist in instructing reading readiness,
writing readiness, and math readiness, as
appropriate.
‘‘(2) CLARIFICATION.—For purposes of para-
graph (1)(C), the receipt of a high school diploma (or
its recognized equivalent) shall be necessary but not
by itself sufficient to satisfy the requirements of such
paragraph.
‘‘(c) EXISTING PARAPROFESSIONALS.—Each local edu-
cational agency receiving assistance under this part shall
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•HR 1 RH1&2
ensure that all paraprofessionals hired before the date that
is 1 year after the effective date of the No Child Left Behind
Act of 2001 and working in a program supported with
funds under this part shall, not later than 3 years after
such effective date, satisfy the requirements of subsection
(b).
‘‘(d) EXCEPTIONS FOR TRANSLATION AND PARENTAL
INVOLVEMENT ACTIVITIES.—Subsections (b) and (c) shall
not apply to a paraprofessional—
‘‘(1) who is proficient in English and a language
other than English and who provides services pri-
marily to enhance the participation of children in
programs under this part by acting as a translator;
or
‘‘(2) whose duties consist solely of conducting pa-
rental involvement activities consistent with section
1118.
‘‘(e) GENERAL REQUIREMENT FOR ALL PARAPROFES-
SIONALS.—Each local educational agency receiving assist-
ance under this part shall ensure that all paraprofessionals
working in a program supported with funds under this
part, regardless of the paraprofessional’s hiring date, pos-
sess a high school diploma or its recognized equivalent.
‘‘(f) DUTIES OF PARAPROFESSIONALS.—
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‘‘(1) IN GENERAL.—Each local educational agen-
cy receiving assistance under this part shall ensure
that a paraprofessional working in a program sup-
ported with funds under this part is not assigned a
duty inconsistent with this subsection.
‘‘(2) 
RESPONSIBILITIES
PARAPROFESSIONALS
MAY BE ASSIGNED.—A paraprofessional described in
paragraph (1) may only be assigned—
‘‘(A) to provide one-on-one tutoring for eli-
gible students, if the tutoring is scheduled at a
time when a student would not otherwise receive
instruction from a teacher;
‘‘(B) to assist with classroom management,
such as organizing instructional and other mate-
rials;
‘‘(C) to provide assistance in a computer
laboratory;
‘‘(D) to conduct parental involvement ac-
tivities;
‘‘(E) to provide support in a library or
media center;
‘‘(F) to act as a translator; or
‘‘(G) to provide instructional services to stu-
dents.
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‘‘(3) ADDITIONAL LIMITATIONS.—A paraprofes-
sional described in paragraph (1)—
‘‘(A) may not provide any instructional
service to a student unless the paraprofessional is
working under the direct supervision of a fully
qualified teacher; and
‘‘(B) may not provide instructional services
to students in the area of reading, writing, or
math unless the paraprofessional has dem-
onstrated, through a State or local academic as-
sessment, the ability to effectively carry out read-
ing, writing, or math instruction.
‘‘(g) USE OF FUNDS.—
‘‘(1) PROFESSIONAL
DEVELOPMENT.—A local
educational agency receiving funds under this part
may use such funds to support ongoing training and
professional development to assist teachers and para-
professionals in satisfying the requirements of this
section.
‘‘(2) LIMITATION ON USE OF FUNDS FOR PARA-
PROFESSIONALS.—
‘‘(A) IN GENERAL.—Beginning on and after
the effective date of the No Child Left Behind Act
of 2001, a local educational agency may not use
funds received under this part to fund any para-
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•HR 1 RH1&2
professional hired after such date unless the hir-
ing is to fill a vacancy created by the departure
of another paraprofessional funded under this
part and such new paraprofessional satisfies the
requirements of subsection (b), except as provided
in subsection (d).
‘‘(B) EXCEPTION.—Subparagraph (A) shall
not apply for a fiscal year to a local educational
agency that can demonstrate to the State that all
teachers under the jurisdiction of the agency are
fully qualified.
‘‘(h) VERIFICATION OF COMPLIANCE.—
‘‘(1) IN GENERAL.—In verifying compliance with
this section, each local educational agency at a min-
imum shall require that the principal of each school
operating a program under section 1114 or 1115 an-
nually attest in writing as to whether such school is
in compliance with the requirements of this section.
‘‘(2) AVAILABILITY OF INFORMATION.—Copies of
attestations under paragraph (1)—
‘‘(A) shall be maintained at each school op-
erating a program under section 1114 or 1115
and at the main office of the local educational
agency; and
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‘‘(B) shall be available to any member of
the general public upon request.
‘‘SEC. 1119A. PROFESSIONAL DEVELOPMENT.
‘‘(a) PURPOSE.—The purpose of this section is to assist
each local educational agency receiving assistance under
this part in increasing the academic achievement of chil-
dren served under this part through improved teacher qual-
ity.
‘‘(b) PROFESSIONAL
DEVELOPMENT
ACTIVITIES.—
Professional development activities under this section
shall—
‘‘(1) give teachers, principals, and administra-
tors the knowledge and skills to provide students with
the opportunity to meet challenging State or local
academic content standards and student academic
achievement standards;
‘‘(2) support the recruiting, hiring, and training
of fully qualified teachers, including teachers fully
qualified through State and local alternative routes;
‘‘(3) advance teacher understanding of effective
instructional strategies based on scientifically based
research for improving student achievement, at a
minimum, in reading or language arts and mathe-
matics;
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‘‘(4) be directly related to the curriculum and
content areas in which the teacher provides instruc-
tion, except this requirement does not apply to activi-
ties that instruct in methods of improving student be-
havior;
‘‘(5) be designed to enhance the ability of a
teacher to understand and use the State’s academic
standards for the subject area in which the teacher
provides instruction;
‘‘(6) be tied to scientifically based research dem-
onstrating the effectiveness of such professional devel-
opment activities or programs in increasing student
achievement or substantially increasing the knowledge
and teaching skills of teachers;
‘‘(7) be of sufficient intensity and duration (not
to include 1-day or short-term workshops and con-
ferences) to have a positive and lasting impact on the
teacher’s performance in the classroom;
‘‘(8) be developed with extensive participation of
teachers, principals, parents, and administrators of
schools to be served under this part;
‘‘(9) be designed to give teachers of limited
English proficient children, other teachers, and in-
structional staff the knowledge and skills to provide
instruction and appropriate language and academic
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•HR 1 RH1&2
support services to such children, including the ap-
propriate use of curriculum and academic assess-
ments;
‘‘(10) to the extent appropriate, provide training
for teachers in the use of technology so that technology
and its applications are effectively used in the class-
room to improve teaching and learning in the cur-
riculum and academic content areas in which the
teachers provide instruction; and
‘‘(11) as a whole, be regularly evaluated for their
impact on increased teacher effectiveness and im-
proved student achievement, with the findings of such
evaluations used to improve the quality of profes-
sional development.
‘‘(c) ADDITIONAL PROFESSIONAL DEVELOPMENT AC-
TIVITIES.—Such professional development activities may
include—
‘‘(1) instruction in the use of data and academic
assessments to inform and instruct classroom prac-
tice;
‘‘(2) instruction in ways that teachers, prin-
cipals, pupil services personnel, and school adminis-
trators may work more effectively with parents;
‘‘(3) the forming of partnerships with institu-
tions of higher education to establish school-based
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‘‘(f) CONSORTIA.—In carrying out such professional
development programs, local educational agencies may pro-
vide services through consortia arrangements with other
local educational agencies, educational service agencies or
other local consortia, institutions of higher education, or
other public or private institutions or organizations.
‘‘(g) CONSOLIDATION
OF FUNDS.—Funds provided
under this part that are used for professional development
purposes may be consolidated with funds provided under
title II of this Act and other sources.
‘‘(h) SPECIAL RULE.—No State educational agency
shall require a school or a local educational agency to ex-
pend a specific amount of funds for professional develop-
ment activities under this part, except that this paragraph
shall not apply with respect to requirements under section
1116(b)(3)(A)(iii).
‘‘SEC. 1120. PARTICIPATION OF CHILDREN ENROLLED IN
PRIVATE SCHOOLS.
‘‘(a) GENERAL REQUIREMENT.—
‘‘(1) IN GENERAL.—To the extent consistent with
the number of eligible children identified under sec-
tion 1115(b) in a local educational agency who are
enrolled in private elementary and secondary schools,
a local educational agency shall, after timely and
meaningful consultation with appropriate private
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•HR 1 RH1&2
school officials, provide such children, on an equitable
basis, special educational services or other benefits
under this part (such as dual enrollment, educational
radio and television, computer equipment and mate-
rials, other technology, and mobile educational serv-
ices and equipment) that address their needs, and
shall ensure that teachers and families of these stu-
dents participate, on an equitable basis, in services
and activities developed pursuant to sections 1118
and 1119A.
‘‘(2) SECULAR, NEUTRAL, NONIDEOLOGICAL.—
Such educational services or other benefits, including
materials and equipment, shall be secular, neutral,
and nonideological.
‘‘(3) EQUITY.—Educational services and other
benefits for such private school children shall be equi-
table in comparison to services and other benefits for
public school children participating under this part,
and shall be provided in a timely manner.
‘‘(4) EXPENDITURES.—Expenditures for edu-
cational services and other benefits to eligible private
school children shall be equal to the proportion of
funds allocated to participating school attendance
areas based on the number of children from low-in-
come families who attend private schools, which the
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local educational agency may determine each year or
every 2 years.
‘‘(5) PROVISION OF SERVICES.—The local edu-
cational agency shall provide services under this sec-
tion directly or through contracts with public and
private agencies, organizations, and institutions.
‘‘(b) CONSULTATION.—
‘‘(1) IN GENERAL.—To ensure timely and mean-
ingful consultation, a local educational agency shall
consult with appropriate private school officials dur-
ing the design and development of such agency’s pro-
grams under this part, on issues such as—
‘‘(A) how the children’s needs will be identi-
fied;
‘‘(B) what services will be offered;
‘‘(C) how, where, and by whom the services
will be provided;
‘‘(D) how the services will be academically
assessed and how the results of that assessment
will be used to improve those services;
‘‘(E) the size and scope of the equitable serv-
ices to be provided to the eligible private school
children, and the amount of funds generated by
low-income private school children in each par-
ticipating attendance area;
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‘‘(F) the method or sources of data that are
used 
under 
subsection 
(a)(4) 
and 
section
1113(c)(2) to determine the number of children
from low-income families in participating school
attendance areas who attend private schools; and
‘‘(G) how and when the agency will make
decisions about the delivery of services to such
children, including a thorough consideration and
analysis of the views of the private school offi-
cials on the provision of contract services
through potential third party providers.
If the local educational agency disagrees with the
views of the private school officials on the provision
of services, through a contract, the local educational
agency shall provide in writing to such private school
officials, an analysis of the reasons why the local edu-
cational agency has chosen not to use a contractor.
‘‘(2) TIMING.—Such consultation shall include
meetings of agency and private school officials and
shall occur before the local educational agency makes
any decision that affects the opportunities of eligible
private school children to participate in programs
under this part. Such meetings shall continue
throughout implementation and assessment of services
provided under this section.
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‘‘(3) DISCUSSION.—Such consultation shall in-
clude a discussion of service delivery mechanisms a
local educational agency can use to provide equitable
services to eligible private school children.
‘‘(4) DOCUMENTATION.—Each local educational
agency shall maintain in its records and provide to
the State educational agency a written affirmation
signed by officials of each participating private school
that the consultation required by this section has oc-
curred.
‘‘(5) COMPLIANCE.—Private school officials shall
have the right to appeal to the State as to whether the
consultation provided for in this section was mean-
ingful and timely, and that due consideration was
given to the views of private school officials. If the
private school wishes to appeal, the basis of the claim
of noncompliance with this section by a local edu-
cational agency shall be provided to the State, and
the local educational agency shall forward the docu-
mentation provided in subsection (b)(4) to the State.
‘‘(c) PUBLIC CONTROL OF FUNDS.—
‘‘(1) IN GENERAL.—The control of funds pro-
vided under this part, and title to materials, equip-
ment, and property purchased with such funds, shall
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be in a public agency, and a public agency shall ad-
minister such funds and property.
‘‘(2) PROVISION OF SERVICES.—(A) The provi-
sion of services under this section shall be provided—
‘‘(i) by employees of a public agency; or
‘‘(ii) through contract by such public agency
with an individual, association, agency, or orga-
nization.
‘‘(B) In the provision of such services, such em-
ployee, person, association, agency, or organization
shall be independent of such private school and of any
religious organization, and such employment or con-
tract shall be under the control and supervision of
such public agency.
‘‘(d) STANDARDS
FOR
A BYPASS.—If a local edu-
cational agency is prohibited by law from providing for the
participation on an equitable basis of eligible children en-
rolled in private elementary and secondary schools or if the
Secretary determines that a local educational agency has
substantially failed or is unwilling to provide for such par-
ticipation, as required by this section, the Secretary shall—
‘‘(1) waive the requirements of this section for
such local educational agency;
‘‘(2) arrange for the provision of services to such
children through arrangements that shall be subject to
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the requirements of this section and sections 8505 and
8506; and
‘‘(3) in making the determination, consider 1 or
more factors, including the quality, size, scope, and
location of the program and the opportunity of eligi-
ble children to participate.
‘‘(e) CAPITAL EXPENSES.—
‘‘(1) IN GENERAL.—(A) From the amount appro-
priated for this subsection under section 1002(g) for
any fiscal year, each State is eligible to receive an
amount that bears the same ratio to the amount so
appropriated as the number of private school children
who received services under this part in the State in
the most recent year for which data satisfactory to the
Secretary are available bears to the number of such
children in all States in that same year.
‘‘(B) The Secretary shall reallocate any amounts
allocated under subparagraph (A) that are not used
by a State for the purpose of this subsection to other
States on the basis of their respective needs, as deter-
mined by the Secretary.
‘‘(2) CAPITAL
EXPENSES.—(A) A local edu-
cational agency may apply to the State educational
agency for payments for capital expenses consistent
with this subsection.
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‘‘(B) State educational agencies shall distribute
such funds under this subsection to local educational
agencies based on the degree of need set forth in their
respective applications for assistance under this sub-
section.
‘‘(3) USES OF FUNDS.—Any funds appropriated
to carry out this subsection shall be used only for cap-
ital expenses incurred to provide equitable services for
private school children under this section.
‘‘SEC. 1120A. FISCAL REQUIREMENTS.
‘‘(a) MAINTENANCE OF EFFORT.—A local educational
agency may receive funds under this part for any fiscal
year only if the State educational agency finds that the
local educational agency has maintained its fiscal effort in
accordance with section 8501 of this Act.
‘‘(b) FEDERAL FUNDS TO SUPPLEMENT, NOT SUP-
PLANT, NON-FEDERAL FUNDS.—
‘‘(1) IN GENERAL.—A State or local educational
agency shall use funds received under this part only
to supplement the amount of funds that would, in the
absence of such Federal funds, be made available from
non-Federal sources for the education of pupils par-
ticipating in programs assisted under this part, and
not to supplant such funds.
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‘‘(2) SPECIAL RULE.—No local educational agen-
cy shall be required to provide services under this
part through a particular instructional method or in
a particular instructional setting in order to dem-
onstrate such agency’s compliance with paragraph
(1).
‘‘(c) COMPARABILITY OF SERVICES.—
‘‘(1) IN GENERAL.—(A) Except as provided in
paragraphs (4) and (5), a local educational agency
may receive funds under this part only if State and
local funds will be used in schools served under this
part to provide services that, taken as a whole, are at
least comparable to services in schools that are not re-
ceiving funds under this part.
‘‘(B) If the local educational agency is serving
all of such agency’s schools under this part, such
agency may receive funds under this part only if such
agency will use State and local funds to provide serv-
ices that, taken as a whole, are substantially com-
parable in each school.
‘‘(C) A local educational agency may meet the
requirements of subparagraphs (A) and (B) on a
grade-span by grade-span basis or a school-by-school
basis.
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‘‘(2) WRITTEN
ASSURANCE.—(A) A local edu-
cational agency shall be considered to have met the re-
quirements of paragraph (1) if such agency has filed
with the State educational agency a written assur-
ance 
that 
such 
agency 
has 
established 
and
implemented—
‘‘(i) a local educational agency-wide salary
schedule;
‘‘(ii) a policy to ensure equivalence among
schools in teachers, administrators, and other
staff; and
‘‘(iii) a policy to ensure equivalence among
schools in the provision of curriculum materials
and instructional supplies.
‘‘(B) For the purpose of subparagraph (A), in
the determination of expenditures per pupil from
State and local funds, or instructional salaries per
pupil from State and local funds, staff salary dif-
ferentials for years of employment shall not be in-
cluded in such determinations.
‘‘(C) A local educational agency need not include
unpredictable changes in student enrollment or per-
sonnel assignments that occur after the beginning of
a school year in determining comparability of services
under this subsection.
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‘‘(3) PROCEDURES AND RECORDS.—Each local
educational agency assisted under this part shall—
‘‘(A) develop procedures for compliance with
this subsection; and
‘‘(B) maintain records that are updated bi-
ennially documenting such agency’s compliance
with this subsection.
‘‘(4) INAPPLICABILITY.—This subsection shall
not apply to a local educational agency that does not
have more than 1 building for each grade span.
‘‘(5) COMPLIANCE.—For the purpose of deter-
mining compliance with paragraph (1), a local edu-
cational agency may exclude State and local funds
expended for—
‘‘(A) English language instruction for chil-
dren of limited English proficiency; and
‘‘(B) excess costs of providing services to
children with disabilities as determined by the
local educational agency.
‘‘(d) EXCLUSION OF FUNDS.—For the purpose of
complying with subsections (b) and (c), a State or local
educational agency may exclude supplemental State or
local funds expended in any school attendance area or
school for programs that meet the intent and purposes of
this part.
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‘‘SEC. 1120B. COORDINATION REQUIREMENTS.
‘‘(a) IN GENERAL.—Each local educational agency re-
ceiving assistance under this part shall carry out the activi-
ties described in subsection (b) with Head Start Agencies,
and if feasible, other early childhood development programs
such as Early Reading First.
‘‘(b) ACTIVITIES.—The activities referred to in sub-
section (a) are activities that increase coordination between
the local educational agency and a Head Start agency, and,
if feasible, other early childhood development programs,
such as Early Reading First serving children who will at-
tend the schools of such agency, including—
‘‘(1) developing and implementing a systematic
procedure for receiving records regarding such chil-
dren transferred with parental consent from a Head
Start program or, where applicable, other early child-
hood development programs such as Early Reading
First;
‘‘(2) establishing channels of communication be-
tween school staff and their counterparts in such
Head Start agencies (including teachers, social work-
ers, and health staff) or other early childhood develop-
ment programs such as Early Reading First, as ap-
propriate, to facilitate coordination of programs;
‘‘(3) conducting meetings involving parents, kin-
dergarten or elementary school teachers, and Head
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Start teachers or, if appropriate, teachers from other
early childhood development programs such as Early
Reading First, to discuss the developmental and other
needs of individual children;
‘‘(4) organizing and participating in joint tran-
sition related training of school staff, Head Start
staff, Early Reading First staff and, where appro-
priate, other early childhood staff; and
‘‘(5) linking the educational services provided in
such local educational agency with the services pro-
vided in local Head Start agencies and Early Read-
ing First programs.
‘‘(c) COORDINATION OF REGULATIONS.—The Secretary
shall work with the Secretary of Health and Human Serv-
ices to coordinate regulations promulgated under this part
with regulations promulgated under the Head Start Act.
‘‘Subpart 2—Allocations
‘‘SEC. 1121. GRANTS FOR THE OUTLYING AREAS AND THE
SECRETARY OF THE INTERIOR.
‘‘(a) RESERVATION OF FUNDS.—From the amount ap-
propriated for payments to States for any fiscal year under
section 1002(a), the Secretary shall reserve a total of 1 per-
cent to provide assistance to—
‘‘(1) the outlying areas in the amount deter-
mined in accordance with subsection (b); and
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‘‘(2) the Secretary of the Interior in the amount
necessary to make payments pursuant to subsection
(d).
‘‘(b) ASSISTANCE TO OUTLYING AREAS.—
‘‘(1) FUNDS
RESERVED.—From the amount
made available for any fiscal year under subsection
(a), the Secretary shall award grants to the outlying
areas.
‘‘(2) COMPETITIVE GRANTS.—For each of fiscal
years 2002 and 2003, the Secretary shall carry out
the competition described in paragraph (3), except
that the amount reserved to carry out such competi-
tion shall not exceed the amount reserved under this
section for the freely associated states for fiscal year
1999.
‘‘(3) LIMITATION FOR COMPETITIVE GRANTS.—
‘‘(A) COMPETITIVE GRANTS.—The Secretary
shall use funds described in paragraph (2) to
award grants, on a competitive basis, to the out-
lying areas and freely associated States to carry
out the purposes of this part.
‘‘(B) AWARD
BASIS.—The Secretary shall
award grants under subparagraph (A) on a com-
petitive basis, pursuant to the recommendations
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of the Pacific Region Educational Laboratory in
Honolulu, Hawaii.
‘‘(C) ADMINISTRATIVE
COSTS.—The Sec-
retary may provide not more than 5 percent of
the amount reserved for grants under this para-
graph to pay the administrative costs of the Pa-
cific Region Educational Laboratory under sub-
paragraph (B).
‘‘(4) SPECIAL RULE.—The provisions of Public
Law 95–134, permitting the consolidation of grants
by the outlying areas, shall not apply to funds pro-
vided to the freely associated States under this sec-
tion.
‘‘(c) DEFINITIONS.—For the purposes of subsections
(a) and (b)—
‘‘(1) the term ‘freely associated States’ means the
Republic of the Marshall Islands, the Federated States
of Micronesia, and the Republic of Palau; and
‘‘(2) the term ‘outlying area’ means the United
States Virgin Islands, Guam, American Samoa, and
the Commonwealth of the Northern Mariana Islands.
‘‘(d) ALLOTMENT TO THE SECRETARY OF THE INTE-
RIOR.—
‘‘(1) IN GENERAL.—The amount allotted for pay-
ments to the Secretary of the Interior under sub-
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section (a)(2) for any fiscal year shall be, as deter-
mined pursuant to criteria established by the Sec-
retary, the amount necessary to meet the special edu-
cational needs of—
‘‘(A) Indian children on reservations served
by elementary and secondary schools for Indian
children operated or supported by the Depart-
ment of the Interior; and
‘‘(B) out-of-State Indian children in ele-
mentary and secondary schools in local edu-
cational agencies under special contracts with
the Department of the Interior.
‘‘(2) PAYMENTS.—From the amount allotted for
payments to the Secretary of the Interior under sub-
section (a)(2), the Secretary of the Interior shall make
payments to local educational agencies, upon such
terms as the Secretary determines will best carry out
the purposes of this part, with respect to out-of-State
Indian children described in paragraph (1). The
amount of such payment may not exceed, for each
such child, the greater of—
‘‘(A) 40 percent of the average per-pupil ex-
penditure in the State in which the agency is lo-
cated; or
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‘‘(B) 48 percent of such expenditure in the
United States.
‘‘SEC. 1122. AMOUNTS FOR BASIC GRANTS, CONCENTRA-
TION GRANTS, AND TARGETED GRANTS.
‘‘(a) ALLOCATION FORMULA.—Of the amount appro-
priated to carry out this part for each of fiscal years 2002
through 2006 (referred to in this subsection as the current
fiscal year)—
‘‘(1) an amount equal to the amount appro-
priated to carry out section 1124 for fiscal year 2001
shall be allocated in accordance with section 1124;
‘‘(2) an amount equal to the amount appro-
priated to carry out section 1124A for fiscal year
2001 shall be allocated in accordance with section
1124A; and
‘‘(3) an amount equal to 100 percent of the
amount, if any, by which the amount appropriated
under section 1002(a) for the current fiscal year ex-
ceeds the amount appropriated under such section for
fiscal year 2001 shall be allocated in accordance with
section 1125.
‘‘(b) ADJUSTMENTS WHERE NECESSITATED BY AP-
PROPRIATIONS.—
‘‘(1) IN GENERAL.—If the sums available under
this part for any fiscal year are insufficient to pay
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the full amounts that all local educational agencies in
States are eligible to receive under sections 1124,
1124A, and 1125 for such year, the Secretary shall
ratably reduce the allocations to such local edu-
cational agencies, subject to subsections (c) and (d) of
this section.
‘‘(2) ADDITIONAL FUNDS.—If additional funds
become available for making payments under sections
1124, 1124A, and 1125 for such fiscal year, alloca-
tions that were reduced under paragraph (1) shall be
increased on the same basis as they were reduced.
‘‘(c) HOLD-HARMLESS AMOUNTS.—
‘‘(1) AMOUNTS FOR SECTIONS 1124 AND 1125.—
For each fiscal year, the amount made available to
each local educational agency under each of sections
1124 and 1125 shall be—
‘‘(A) not less than 95 percent of the amount
made available in the preceding fiscal year if the
number of children counted for grants under sec-
tion 1124 is not less than 30 percent of the total
number of children aged 5 to 17 years, inclusive,
in the local educational agency;
‘‘(B) not less than 90 percent of the amount
made available in the preceding fiscal year if the
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apply the hold harmless percentages in paragraphs
(1) and (2) to counties, and if the Secretary’s alloca-
tion for a county is not sufficient to meet the hold-
harmless requirements of this subsection for every
local educational agency within that county, the State
educational agency shall reallocate funds proportion-
ately from all other local educational agencies in the
State that are receiving funds in excess of the hold
harmless amounts specified in this subsection.
‘‘(d) RATABLE REDUCTIONS.—
‘‘(1) IN GENERAL.—If the sums made available
under this part for any fiscal year are insufficient to
pay the full amounts that all States are eligible to re-
ceive under subsection (c) for such year, the Secretary
shall ratably reduce such amounts for such year.
‘‘(2) ADDITIONAL FUNDS.—If additional funds
become available for making payments under sub-
section (c) for such fiscal year, amounts that were re-
duced under paragraph (1) shall be increased on the
same basis as such amounts were reduced.
‘‘(e) DEFINITION.—For the purpose of this section and
sections 1124, 1124A, and 1125, the term ‘State’ means
each of the 50 States, the District of Columbia, and the
Commonwealth of Puerto Rico.
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‘‘SEC. 1124. BASIC GRANTS TO LOCAL EDUCATIONAL AGEN-
CIES.
‘‘(a) AMOUNT OF GRANTS.—
‘‘(1) GRANTS FOR LOCAL EDUCATIONAL AGEN-
CIES
AND
PUERTO
RICO.—Except as provided in
paragraph (4) and in section 1126, the grant that a
local educational agency is eligible to receive under
this section for a fiscal year is the amount determined
by multiplying—
‘‘(A) the number of children counted under
subsection (c); and
‘‘(B) 40 percent of the average per-pupil ex-
penditure in the State, except that the amount
determined under this subparagraph shall not be
less than 32 percent or more than 48 percent, of
the average per-pupil expenditure in the United
States.
‘‘(2) CALCULATION OF GRANTS.—
‘‘(A) ALLOCATIONS TO LOCAL EDUCATIONAL
AGENCIES.—The Secretary shall calculate grants
under this section on the basis of the number of
children counted under subsection (c) for local
educational agencies, unless the Secretary and
the Secretary of Commerce determine that some
or all of those data are unreliable or that their
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use would be otherwise inappropriate, in which
case—
‘‘(i) the 2 Secretaries shall publicly
disclose the reasons for their determination
in detail; and
‘‘(ii) paragraph (3) shall apply.
‘‘(B) ALLOCATIONS TO LARGE AND SMALL
LOCAL
EDUCATIONAL
AGENCIES.—(i) For any
fiscal year in which this paragraph applies, the
Secretary shall calculate grants under this sec-
tion for each local educational agency.
‘‘(ii) The amount of a grant under this sec-
tion for each large local educational agency shall
be the amount determined under clause (i).
‘‘(iii) For small local educational agencies,
the State educational agency may either—
‘‘(I) distribute grants under this sec-
tion in amounts determined by the Sec-
retary under clause (i); or
‘‘(II) use an alternative method ap-
proved by the Secretary to distribute the
portion of the State’s total grants under this
section that is based on those small agen-
cies.
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‘‘(iv) An alternative method under clause
(iii)(II) shall be based on population data that
the State educational agency determines best re-
flect the current distribution of children in poor
families among the State’s small local edu-
cational agencies that meet the eligibility criteria
of subsection (b).
‘‘(v) If a small local educational agency is
dissatisfied with the determination of its grant
by the State educational agency under clause
(iii)(II), it may appeal that determination to the
Secretary, who shall respond not later than 45
days after receipt of such appeal.
‘‘(vi) As used in this subparagraph—
‘‘(I) the term ‘large local educational
agency’ means a local educational agency
serving an area with a total population of
20,000 or more; and
‘‘(II) the term ‘small local educational
agency’ means a local educational agency
serving an area with a total population of
less than 20,000.
‘‘(3) ALLOCATIONS TO COUNTIES.—
‘‘(A) CALCULATION.—For any fiscal year to
which this paragraph applies, the Secretary shall
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calculate grants under this section on the basis
of the number of children counted under section
1124(c) for counties, and State educational agen-
cies shall suballocate county amounts to local
educational agencies, in accordance with regula-
tions issued by the Secretary.
‘‘(B) DIRECT ALLOCATIONS.—In any State
in which a large number of local educational
agencies overlap county boundaries, or for which
the State believes it has data that would better
target funds than allocating them by county, the
State educational agency may apply to the Sec-
retary for authority to make the allocations
under this part for a particular fiscal year di-
rectly to local educational agencies without re-
gard to counties.
‘‘(C) ASSURANCES.—If the Secretary ap-
proves the State educational agency’s application
under subparagraph (B), the State educational
agency shall provide the Secretary an assurance
that such allocations shall be made—
‘‘(i) using precisely the same factors
for determining a grant as are used under
this part; or
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‘‘(ii) using data that the State edu-
cational agency submits to the Secretary for
approval that more accurately target pov-
erty.
‘‘(D) APPEAL.—The State educational agen-
cy shall provide the Secretary an assurance that
it shall establish a procedure through which a
local educational agency that is dissatisfied with
its determinations under subparagraph (B) may
appeal directly to the Secretary for a final deter-
mination.
‘‘(4) PUERTO RICO.—
‘‘(A) IN GENERAL.—For each fiscal year,
the grant which the Commonwealth of Puerto
Rico shall be eligible to receive under this section
shall be the amount determined by multiplying
the number of children counted under subsection
(c) for the Commonwealth of Puerto Rico by the
product of—
‘‘(i) the percentage which the average
per-pupil expenditure in the Commonwealth
of Puerto Rico is of the lowest average per-
pupil expenditure of any of the 50 States;
and
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‘‘(ii) 32 percent of the average per-
pupil expenditure in the United States.
‘‘(B) MINIMUM PERCENTAGE.—The percent-
age in subparagraph (A)(i) shall not be less
than—
‘‘(i) for fiscal year 2002, 77.5 percent;
‘‘(ii) for fiscal year 2003, 80.0 percent;
‘‘(iii) for fiscal year 2004, 82.5 per-
cent; and
‘‘(iv) for fiscal year 2005 and suc-
ceeding fiscal years, 85.0 percent.
‘‘(C) LIMITATION.—If the application of
subparagraph (B) 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 fiscal year, the percentage in
subparagraph (A) shall be the greater of the per-
centage in subparagraph (A)(i) or the percentage
used for the preceding fiscal year.
‘‘(5) DEFINITION.—For purposes of this sub-
section, the term ‘State’ does not include Guam,
American Samoa, the Virgin Islands, and the North-
ern Mariana Islands.
‘‘(b) MINIMUM NUMBER OF CHILDREN TO QUALIFY.—
A local educational agency is eligible for a basic grant
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under this section for any fiscal year only if the number
of children counted under subsection (c) for that agency is
both—
‘‘(1) 10 or more; and
‘‘(2) more than 2 percent of the total school-age
population in the agency’s jurisdiction.
‘‘(c) CHILDREN TO BE COUNTED.—
‘‘(1) CATEGORIES OF CHILDREN.—The number
of children to be counted for purposes of this section
is the aggregate of—
‘‘(A) the number of children aged 5 to 17,
inclusive, in the school district of the local edu-
cational agency from families below the poverty
level as determined under paragraph (2);
‘‘(B) the number of children (determined
under paragraph (4) for either the preceding
year as described in that paragraph, or for the
second preceding year, as the Secretary finds ap-
propriate) aged 5 to 17, inclusive, in the school
district of such agency in institutions for ne-
glected and delinquent children (other than such
institutions operated by the United States), but
not counted pursuant to subpart 1 of part D for
the purposes of a grant to a State agency, or
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being supported in foster homes with public
funds; and
‘‘(C) the number of children aged 5 to 17,
inclusive, in the school district of such agency
from families above the poverty level as deter-
mined under paragraph (4).
‘‘(2) DETERMINATION
OF
NUMBER
OF
CHIL-
DREN.—For the purposes of this section, the Secretary
shall determine the number of children aged 5 to 17,
inclusive, from families below the poverty level on the
basis of the most recent satisfactory data, described in
paragraph (3), available from the Department of
Commerce. The District of Columbia and the Com-
monwealth of Puerto Rico shall be treated as indi-
vidual local educational agencies. If a local edu-
cational agency contains 2 or more counties in their
entirety, then each county will be treated as if such
county were a separate local educational agency for
purposes of calculating grants under this part. The
total of grants for such counties shall be allocated to
such a local educational agency, which local edu-
cational agency shall distribute to schools in each
county within such agency a share of the local edu-
cational agency’s total grant that is no less than the
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county’s share of the population counts used to cal-
culate the local educational agency’s grant.
‘‘(3) POPULATION
UPDATES.—In fiscal year
2001 and every 2 years thereafter, the Secretary shall
use updated data on the number of children, aged 5
to 17, inclusive, from families below the poverty level
for local educational agencies or counties, published
by the Department of Commerce, unless the Secretary
and the Secretary of Commerce determine that use of
the updated population data would be inappropriate
or unreliable. If the Secretary and the Secretary of
Commerce determine that some or all of the data re-
ferred to in this paragraph are inappropriate or un-
reliable, they shall publicly disclose their reasons. In
determining the families which are below the poverty
level, the Secretary shall utilize the criteria of poverty
used by the Bureau of the Census in compiling the
most recent decennial census, in such form as those
criteria have been updated by increases in the Con-
sumer Price Index for all urban consumers, published
by the Bureau of Labor Statistics.
‘‘(4) OTHER CHILDREN TO BE COUNTED.—For
the purposes of this section, the Secretary shall deter-
mine the number of children aged 5 to 17, inclusive,
from families above the poverty level on the basis of
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the number of such children from families receiving
an annual income, in excess of the current criteria of
poverty, from payments under a State program fund-
ed under part A of title IV of the Social Security Act;
and in making such determinations the Secretary
shall utilize the criteria of poverty used by the Bu-
reau of the Census in compiling the most recent de-
cennial census for a family of 4 in such form as those
criteria have been updated by increases in the Con-
sumer Price Index for all urban consumers, published
by the Bureau of Labor Statistics. The Secretary shall
determine the number of such children and the num-
ber of children aged 5 through 17 living in institu-
tions for neglected or delinquent children, or being
supported in foster homes with public funds, on the
basis of the caseload data for the month of October of
the preceding fiscal year (using, in the case of chil-
dren described in the preceding sentence, the criteria
of poverty and the form of such criteria required by
such sentence which were determined for the calendar
year preceding such month of October) or, to the ex-
tent that such data are not available to the Secretary
before January of the calendar year in which the Sec-
retary’s determination is made, then on the basis of
the most recent reliable data available to the Sec-
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retary at the time of such determination. The Sec-
retary of Health and Human Services shall collect
and transmit the information required by this sub-
paragraph to the Secretary not later than January 1
of each year. For the purpose of this section, the Sec-
retary shall consider all children who are in correc-
tional institutions to be living in institutions for de-
linquent children.
‘‘(5) ESTIMATE.—When requested by the Sec-
retary, the Secretary of Commerce shall make a spe-
cial updated estimate of the number of children of
such ages who are from families below the poverty
level (as determined under subparagraph (A) of this
paragraph) in each school district, and the Secretary
is authorized to pay (either in advance or by way of
reimbursement) the Secretary of Commerce the cost of
making this special estimate. The Secretary of Com-
merce shall give consideration to any request of the
chief executive of a State for the collection of addi-
tional census information.
‘‘(d) STATE MINIMUM.—Notwithstanding section 1122,
the aggregate amount allotted for all local educational agen-
cies within a State may not be less than the lesser of—
‘‘(1) 0.25 percent of total grants under this sec-
tion; or
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‘‘(2) the average of—
‘‘(A) one-quarter of 1 percent of the total
amount available for such fiscal year under this
section; and
‘‘(B) the number of children in such State
counted under subsection (c) in the fiscal year
multiplied by 150 percent of the national aver-
age per-pupil payment made with funds avail-
able under this section for that year.
‘‘SEC. 1124A. CONCENTRATION GRANTS TO LOCAL EDU-
CATIONAL AGENCIES.
‘‘(a) ELIGIBILITY FOR AND AMOUNT OF GRANTS.—
‘‘(1) IN GENERAL.—(A) Except as otherwise pro-
vided in this paragraph, each local educational agen-
cy, in a State other than Guam, American Samoa,
the Virgin Islands, and the Commonwealth of the
Northern Mariana Islands, which is eligible for a
grant under section 1124 for any fiscal year is eligi-
ble for an additional grant under this section for that
fiscal year if the number of children counted under
section 1124(c) in the agency exceeds either—
‘‘(i) 6,500; or
‘‘(ii) 15 percent of the total number of chil-
dren aged 5 through 17 in the agency.
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under section 1124(a)(1) for the fiscal year for
which the determination is being made divided
by the total number of children counted under
section 1124(c) for that agency for that fiscal
year.
‘‘(3) AMOUNT.—The amount of the additional
grant for which an eligible local educational agency
or county is eligible under this section for any fiscal
year shall be an amount which bears the same ratio
to the amount available to carry out this section for
that fiscal year as the product determined under
paragraph (2) for such local educational agency for
that fiscal year bears to the sum of such products for
all local educational agencies in the United States for
that fiscal year.
‘‘(4) LOCAL ALLOCATIONS.—(A) Grant amounts
under this section shall be determined in accordance
with section 1124(a)(2) and (3).
‘‘(B) For any fiscal year for which the Secretary
allocates funds under this section on the basis of coun-
ties, a State may reserve not more than 2 percent of
its allocation under this section to make grants to
local educational agencies that meet the criteria of
paragraph (1)(A)(i) or (ii) and are in ineligible
counties that do not meet these criteria.
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‘‘(b) STATES
RECEIVING
MINIMUM
GRANTS.—In
States that receive the minimum grant under subsection
(a)(1)(B), the State educational agency shall allocate such
funds among the local educational agencies in each State
either—
‘‘(1) in accordance with paragraphs (2) and (4)
of subsection (a); or
‘‘(2) based on their respective concentrations and
numbers of children counted under section 1124(c),
except that only those local educational agencies with
concentrations or numbers of children counted under
section 1124(c) that exceed the statewide average per-
centage of such children or the statewide average
number of such children shall receive any funds on
the basis of this paragraph.
‘‘SEC. 1125. TARGETED GRANTS TO LOCAL EDUCATIONAL
AGENCIES.
‘‘(a) ELIGIBILITY
OF LOCAL EDUCATIONAL AGEN-
CIES.—A local educational agency in a State is eligible to
receive a targeted grant under this section for any fiscal
year if the number of children in the local educational agen-
cy counted under subsection 1124(c), before application of
the weighting factor described in subsection (c), is at least
10, and if the number of children counted for grants under
section 1124 is at least 5 percent of the total population