I
107TH CONGRESS
1ST SESSION
H. R. 1
A bill 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
A BILL
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. TABLE OF CONTENTS.
TITLE I—IMPROVING THE ACADEMIC PERFORMANCE OF THE
DISADVANTAGED
PART A—BASIC PROGRAM
Sec. 101. Disadvantaged children meet high standards.
Sec. 102. Authorization of appropriations.
Sec. 103. Reservation for school improvement.
Sec. 104. Basic programs.
PART B—STUDENT READING SKILLS IMPROVEMENT GRANTS
Sec. 111. Reading First; Early Reading First.
Sec. 112. Amendments to Even Start.
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.
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.
PART F—COMPREHENSIVE SCHOOL REFORM
Sec. 161. School reform.
PART G—RURAL EDUCATION
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; teacher liability.
TITLE III—EDUCATION OF LIMITED ENGLISH PROFICIENT
CHILDREN; INDIAN AND ALASKA NATIVE EDUCATION
PART A—EDUCATION OF LIMITED ENGLISH PROFICIENT 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.
TITLE IV—PROMOTING INFORMED PARENTAL CHOICE AND
INNOVATIVE PROGRAMS
PART A—INNOVATIVE PROGRAMS
Sec. 401. Promoting informed parental choice and innovative programs.
PART B—PUBLIC CHARTER SCHOOLS
Sec. 411. Public charter schools.
PART C—SCHOOL CHOICE RESEARCH AND DEMONSTRATION
Sec. 421. School choice research and demonstration
PART D—MAGNET SCHOOLS ASSISTANCE
Sec. 431. Magnet schools assistance.
Sec. 432. Continuation of awards.
TITLE V—SAFE SCHOOLS FOR THE 21ST CENTURY
Sec. 501. Safe schools.
TITLE VI—IMPACT AID PROGRAM
Sec. 601. Payments under section 8002 with respect to fiscal years in which
insufficient 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.
TITLE IX—MISCELLANEOUS PROVISIONS
PART A—AMENDMENTS TO OTHER ACTS
SUPART 1—NATIONAL EDUCATION STATISTICS ACT
Sec. 901. Amendment to NESA.
SUBPART 2—HOMELESS EDUCATION
Sec. 911. Short title.
Sec. 912. Findings.
Sec. 913. Purpose.
Sec. 914. Education for homeless children and youth.
Sec. 915. Technical amendment.
PART B—REPEALS
Sec. 921. Repeals.
SEC. 3. REFERENCES.
Whenever in this Act an amendment or repeal is ex-
pressed in terms of an amendment to, or repeal of, a sec-
tion or other provision, the reference shall be considered
to be made to a section or other provision of the Elemen-
tary and Secondary Education Act of 1965 (20 U.S.C.
6301 et seq.).
SEC. 4. TRANSITION.
Unless otherwise provided in this Act, any person or
agency that was awarded a grant under the Elementary
‘‘(2) EARLY READING FIRST.—For the purpose
of carrying out subpart 2 of part B, there are au-
thorized 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 car-
rying out subpart 3 of part B, there are authorized
to be appropriated $250,000,000 for fiscal year
2002 and such sums as may be necessary for 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 $380,000,000 for fiscal year 2002 and
such sums as may be necessary for each of the 4 suc-
ceeding fiscal years.
‘‘(d) PREVENTION AND INTERVENTION PROGRAMS
FOR YOUTH WHO ARE NEGLECTED, DELINQUENT, OR AT
RISK OF DROPPING OUT.—For the purpose of carrying
out part D, there are authorized to be appropriated
$46,000,000 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 suc-
ceeding fiscal years.
‘‘(f) RURAL EDUCATION.—For the purpose of car-
rying out part G, there are authorized to be appropriated
$125,000,000 for fiscal year 2002 and such sums as may
be necessary for each of 4 succeeding fiscal years to be
distributed equally between subparts 1 and 2.
‘‘(g) CAPITAL EXPENSES.—For the purpose of car-
rying out section 1120(e), there are authorized to be ap-
propriated $5,000,000 for fiscal year 2002.
‘‘(h) FEDERAL ACTIVITIES.—
‘‘(1) SECTION 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.
‘‘(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.
‘‘(i) STATE ADMINISTRATION.—
‘‘(1) STATE
RESERVATION.—Each State may
reserve, 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), includ-
ing any funds it receives under paragraph (2), to
carry out administrative 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 necessary for each of the 4 succeeding fiscal
years for additional State administration grants.
Any such additional grants shall be allocated among
the States in proportion to the sum of the amounts
received by each State for that fiscal year under
parts A, C, and D of this title.
‘‘(3) SPECIAL RULE.—The amount allocated to
each State under this subsection may not exceed the
amount of State funds expended by the State edu-
cational agency to administer elementary and sec-
ondary education programs in such State.
SEC. 103. RESERVATION FOR SCHOOL IMPROVEMENT.
Section 1003 is amended to read as follows:
‘‘RESERVATION FOR SCHOOL IMPROVEMENT
‘‘(a) STATE RESERVATIONS.—Each State shall re-
serve 3.5 percent of the amount it receives under subpart
2 of part A for fiscal years 2002 and 2003, and 5 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 statewide system of technical assistance and sup-
port for local educational agencies.
‘‘(b) USES.—Of the amount reserved under sub-
section (a) for any fiscal year, the State educational agen-
cy shall make available at least 95 percent of that amount
directly to local educational agencies for schools identified
for school improvement, corrective action, and restruc-
turing under section 1116(c).’’.
‘‘(c) UNUSED FUNDS.—If, after consultation with
local educational agencies in the State, the State edu-
cational agency determines that the amount of funds re-
serve 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).’’.
SEC. 104. BASIC PROGRAMS.
Part A of title I is 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 re-
ceive a grant under this part shall submit to the
Secretary, by March 1, 2002, a plan, developed in
consultation with local educational agencies, teach-
ers, principals, pupil services personnel, administra-
tors (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,
the Carl D. Perkins Vocational and Technical Edu-
cation Act of 1998, and the Head Start Act.
‘‘(2) CONSOLIDATED PLAN.—A State plan sub-
mitted under paragraph (1) may be submitted as
part of a consolidated plan under section 8302.
‘‘(b) STANDARDS, ASSESSMENTS, AND ACCOUNT-
ABILITY.—
‘‘(1) CHALLENGING STANDARDS.—
‘‘(A) Each State plan shall demonstrate
that the State has adopted challenging content
standards and challenging student 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 standards to the
Secretary.
‘‘(B) The standards required by subpara-
graph (A) shall be the same standards that the
State applies to all schools and children in the
State.
‘‘(C) The State shall have such standards
for all public elementary and secondary school
children served under this part in subjects de-
termined by the State, but including at least
mathematics, reading or language arts, and
science (consistent with the special rule in sec-
tion 1111(j), which shall include the same
knowledge, skills, and levels of achievement ex-
pected of all children.
‘‘(D) Standards under this paragraph shall
include—
‘‘(i) challenging content standards in
academic subjects that—
‘‘(I) specify what children are ex-
pected to know and be able to do;
‘‘(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
assessments described under paragraph (4),
what constitutes adequate yearly progress of
the State, and of public schools and local edu-
cational agencies in the State, toward enabling
all public school students to meet the State’s
student achievement standards, while working
toward the goal of narrowing the achievement
gaps in the State.
‘‘(C) 
DEFINITION.—‘Adequate 
yearly
progress’ shall be defined by the State in a
manner that—
‘‘(i) applies the same high standards
of academic performance to all public
school students in the State;
‘‘(ii) measures the progress of public
schools and local educational agencies
based primarily on the assessments de-
scribed in paragraph (4);
‘‘(iii) includes annual measurable ob-
jectives for continuing and significant im-
provement in each of the following (except
that disaggregation of data under sub-
clauses (II) and (III) shall not be required
in a case in which the number of students
in a category is insufficient to yield statis-
tically reliable information or the results
would reveal individually identifiable infor-
mation about an individual student):
‘‘(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
proficiency 
by 
children 
with 
limited
English proficiency;
‘‘(iv) 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 sub-
ject to improvement or corrective action
under section 1116 if the discretionary in-
dicators were not included; and
‘‘(v) includes a timeline for ensuring
that each group of students described in
subclauses (I) and (II) of clause (iii) meets
or exceeds the State’s proficient level of
performance on the State assessment used
for the purposes of this section and section
1116 within 10 years from the date of the
enactment of the No Child Left Behind
Act of 2001.
‘‘(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
assessments, 
consistent 
with 
section
612(a)(17)(A) of the Individuals with Disabil-
ities Education Act 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 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 administrators throughout
the State. Such efforts shall include, at a min-
imum, publication of such information and ex-
planatory text, broadly to the public through
such means as the Internet, the media, and
public agencies.
‘‘(3) STATE
AUTHORITY.—If a State edu-
cational agency provides evidence, which is satisfac-
tory to the Secretary, that neither the State edu-
cational agency nor any other State government offi-
cial, agency, or entity has sufficient authority, under
State law, to adopt curriculum content and student
achievement standards, and assessments aligned
with such standards, which will be applicable to all
students enrolled in the State’s public schools, then
the State educational agency may meet the require-
ments of this subsection by—
‘‘(A) adopting standards and assessments
that meet the requirements of this subsection,
on a statewide basis, limiting 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
achievement 
standards, 
and 
assessments
aligned with such standards, which meet all of
the criteria in this subsection and any regula-
tions 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) ASSESSMENTS.—Each State plan shall
demonstrate that the State has implemented a set of
high-quality, yearly student assessments that in-
clude, at a minimum, assessments in mathematics,
reading or language arts, and science (consistent
with the special rule in section 1111(j), that will be
used as the primary means of determining the yearly
performance of each local educational agency and
school in enabling all children to meet the State’s
challenging student achievement standards. Such as-
sessments shall—
‘‘(A) be the same assessments used to
measure the performance of all children;
‘‘(B) be aligned with the State’s chal-
lenging content and student achievement stand-
ards and provide coherent information about
student attainment of such standards;
‘‘(C) be used for purposes for which such
assessments are valid and reliable, and be con-
sistent with relevant, recognized professional
and technical standards for such assessments;
‘‘(2) the State will participate, beginning in
school year 2002–2003, participate in annual assess-
ments of 4th and 8th grade reading and mathe-
matics under—
‘‘(A) the State National Assessment of
Educational Progress carried out under section
411(b)(2) of the National Education Statistics
Act of 1994; or
‘‘(B) another 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
agencies and schools to carry out the State edu-
cational agency’s responsibilities under this part, in-
cluding technical assistance in providing professional
development under section 1119A and technical as-
sistance under section 1117; and
‘‘(4)(A) where educational service agencies
exist, the State educational agency shall consider
providing professional development and technical as-
sistance through such agencies; and
‘‘(B) where educational service agencies do not
exist, the State educational agency shall consider
providing professional development and technical as-
sistance through other cooperative agreements such
as through a consortium of local educational agen-
cies;
‘‘(5) the State educational agency shall notify
local educational agencies and the public of the con-
tent and student achievement standards and assess-
ments developed under this section, and of the au-
thority to operate schoolwide programs, and will ful-
fill the State educational agency’s responsibilities re-
garding local educational agency improvement and
school improvement under section 1116, including
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 stu-
dent academic performance;
‘‘(8) the State educational agency will encour-
age 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
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; and
‘‘(11) the State educational agency shall inform
local educational agencies of the local educational
agency’s authority to transfer funds or enter into
performance agreements 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.).
‘‘(d) PEER REVIEW AND SECRETARIAL APPROVAL.—
The Secretary shall—
‘‘(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 sec-
tion;
‘‘(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
determination and the reasons for such determina-
tion;
‘‘(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 require-
ments 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 content standards or to use
specific assessment instruments or items.
‘‘(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 State content standards and State
student achievement standards, new assessments, or
a new definition of adequate yearly progress, the
State shall submit such information to the Sec-
retary.
‘‘(f) LIMITATION ON CONDITIONS.—Nothing in this
part shall be construed to authorize an officer or employee
of the Federal Government to mandate, direct, or control
a State, local educational agency, or school’s specific in-
structional content or student achievement standards and
assessments, curriculum, or program of instruction, as a
condition of eligibility to receive funds under this part.
‘‘(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
America’s Schools Act of 1994 (or under any
waiver granted by the Secretary or under any
compliance agreement with the Secretary) for
demonstrating that it has in place challenging
content standards and student achievement
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 ad-
ministration and activities in each year until
the Secretary determines that the State meets
those requirements;
‘‘(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-
‘‘(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 im-
provement 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 assessment compared 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 assessment compared to
students in the local educational agen-
cy and the State as a whole.
‘‘(B) OTHER INFORMATION.—A local edu-
cational agency may include in its annual re-
ports any other appropriate information wheth-
er or not such information is included in the
annual 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 understand), and make the information
broadly available through public means, such as
posting on the Internet, distribution to the
media, and distribution 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 subsection, so long as any such report is modi-
fied, as may be needed, to contain the information
required by this subsection.
‘‘(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 assessment
system described in subsection (b)(4);
‘‘(B) beginning not later than school year
2004–2005, information on the achievement of
students on the assessments required by that
subsection, including the disaggregated results
for the categories of students identified in sub-
section (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 stu-
dent assessments (including disaggregated re-
sults) required under this section.
‘‘(5) PARENTS RIGHT-TO-KNOW.—
‘‘(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 receiving funds under this part that they
may request, and shall provide the parents
upon request (and in a timely manner), infor-
mation regarding the professional qualifications
of the student’s classroom teachers, including,
at a minimum, 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 sta-
tus through which State qualification or li-
censing 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 certifi-
cation or degree.
‘‘(iv) Whether the child is provided
services by paraprofessionals and the quali-
fications of such paraprofessional.
‘‘(B) ADDITIONAL INFORMATION.—In ad-
dition to the information which parents may re-
quest under subparagraph (A), and the infor-
mation provided in subsection (c), a school
which receives funds under this part shall pro-
vide 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 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 informa-
tion provided to parents under this paragraph
shall be in an understandable and uniform for-
mat and, to the extent practicable, provided in
a language that the parents can understand.
‘‘(6) PLAN CONTENT.—A State shall include in
its plan under subsection (b) an assurance that it
has 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.
‘‘(j) SPECIAL RULE ON SCIENCE STANDARDS AND
ASSESSMENTS.—Notwithstanding subsections (b) and (h),
no State shall be required to meet the requirements under
this title relating to science standards until the beginning
of the 2005–2006 school year and science assessments
until the beginning of the 2007–2008 school year.
‘‘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, the Carl D. Perkins Voca-
tional and Technical Education Act of 1998, the
Head Start Act, and other Acts, as appropriate.
‘‘(2) CONSOLIDATED APPLICATION.—The plan
may be submitted as part of a consolidated applica-
tion under section 8305.
‘‘(12) a description of the actions the local edu-
cational agency will take to implement school choice,
consistent with the requirements of section 1116;
‘‘(13) a description how the local educational
agency will meet the requirements of section
1119(b)(1).
‘‘(c) ASSURANCES.—
‘‘(1) IN
GENERAL.—Each local educational
agency plan shall provide assurances that the local
educational agency will—
‘‘(A) inform eligible schools and parents of
schoolwide project authority and the ability of
such schools to consolidate funds from Federal,
State, and local sources;
‘‘(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 implement such plans or undertake ac-
tivities pursuant to section 1115 so that each
school can make adequate yearly progress to-
ward meeting the State student achievement
standards;
‘‘(D) fulfill such agency’s school improve-
ment responsibilities under section 1116, in-
cluding taking corrective actions under section
1116(b)(6);
‘‘(E) provide services to eligible children
attending 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-
liest grades at schools that receive funds under
this part;
‘‘(G) in the case of a local educational
agency 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 comply with the performance standards
established under section 641A(a) of the Head
Start Act;
‘‘(H) comply with the requirements of sec-
tion 1119 regarding the qualifications of teach-
ers and paraprofessionals;
‘‘(I) inform eligible schools of the local
educational 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 agen-
cies providing services to children, youth, and
families.
‘‘(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 implemen-
tation of such subparagraph and shall establish
procedures (taking into consideration existing
State and local laws, and local teacher con-
tracts) to assist local educational agencies to
comply with such subparagraph; and
‘‘(B) upon publication, shall disseminate to
local educational agencies the Head Start per-
formance standards as in effect under section
641A(a) of the Head Start Act, and such agen-
cies affected by such subparagraph shall plan
for the implementation of such subparagraph
(taking into consideration existing State and
local laws, and local teacher contracts), includ-
ing 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.
‘‘(d) PLAN DEVELOPMENT AND DURATION.—
‘‘(1) CONSULTATION.—Each local educational
agency plan shall be developed in consultation with
teachers, administrators (including administrators 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
agency plan shall be filed according to a schedule es-
tablished 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—
‘‘(A) enables schools served under this part
to substantially help children served under this
part meet the standards expected of all children
described in section 1111(b)(1); and
‘‘(B) meets the requirements of this sec-
tion.
‘‘(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
parents of a child participating in an English lan-
guage instruction program for limited English pro-
ficient children assisted under this part of—
‘‘(A) the reasons for the identification of
the child as being in need of English language
instruction;
‘‘(B) the child’s level of English pro-
ficiency, how such level was assessed, and the
status of the child’s academic achievement; and
‘‘(C) how the English language instruction
program will specifically help the child acquire
English and meet age-appropriate standards for
grade promotion and graduation;
‘‘(D) what the specific exit requirements
are for the program;
‘‘(E) the expected rate of graduation from
the program into mainstream classes; and
‘‘(F) the expected rate of graduation from
high school for the program if funds under this
part are used for children in secondary schools.
‘‘(2) CONSENT.—
‘‘(A) IN GENERAL.—A parent or the par-
ents of a limited English proficient child who is
identified for participation in an English lan-
guage instruction program for limited English
proficient children assisted under this part
shall—
‘‘(i) sign a form consenting to the stu-
dent’s placement in such a program prior
to such time as the student is enrolled in
the program; and
‘‘(ii) select among methods of instruc-
tion, if more than 1 method is offered in
the program.
‘‘(B) REMOVAL FROM PROGRAM UPON PA-
RENTAL REQUEST.—A parent or the parents of
a limited English proficient child who is partici-
pating in an English language instruction pro-
gram for limited English proficient children as-
sisted under this part shall have the right to
have their child immediately removed from the
program upon their request.
‘‘(3) 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 of a participating child so
desires, notice of opportunities for regular
meetings for the purpose of formulating and re-
sponding to recommendations from such parent
or parents; and
‘‘(C) procedural information for removing
a child from a program for limited English pro-
ficient children.
‘‘(4) 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
families is at least as high as the percentage of
children from low-income families in the local
educational 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
attendance area or school in which at least
35 percent of the children are from low-in-
come families;
‘‘(ii) use funds received under this
part in a school that is not in an eligible
school attendance area, if the percentage
of children from low-income families en-
rolled in the school is equal to or greater
than the percentage of such children in a
participating school attendance area of
such agency;
‘‘(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
‘‘(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
subparagraph (A)(iv), the number of children
attending private elementary and secondary
schools who are to receive services, and the as-
sistance 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).
‘‘(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 chil-
dren from low-income families is 75 percent or
lower either by grade span or for the entire
local educational 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
paragraph (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
eligible school attendance areas that serve children
in elementary schools; and
‘‘(4) not serve a school described in paragraph
(1)(B) before serving a school described in para-
graph (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 National School Lunch Act, the number of chil-
dren in families receiving assistance under the State
program funded under part A of title IV of the So-
cial Security Act, or the number of children eligible
to receive medical assistance under the Medicaid
program, or a composite of such indicators, with re-
spect to all school attendance areas in the local edu-
cational agency—
‘‘(A) to identify eligible school attendance
areas;
‘‘(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
private 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 stu-
dents and allowing such survey results to
be extrapolated if complete actual data are
not available; 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
children who reside in that attendance
area.
‘‘(B) COMPLAINT PROCESS.—Any dispute
regarding low-income data on private school
students shall be subject to the complaint proc-
ess authorized in section 8505.
‘‘(d) EXCEPTION.—This section (other than sub-
sections (a)(3) and (f)) shall not apply to a local edu-
cational agency with a total enrollment of less than 1,500
children.
‘‘(e) WAIVER
FOR DESEGREGATION PLANS.—The
Secretary may approve a local educational agency’s writ-
ten 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 deseg-
regation plan ordered by a State or court or approved by
the Secretary, or such a plan that the agency continues
to implement after it has expired, if—
‘‘(1) the number of economically disadvantaged
children enrolled in the school is not less than 25
percent 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.—
‘‘(1) IN GENERAL.—A local educational agency
shall allocate funds received under this part to eligi-
ble school attendance areas or eligible schools, iden-
tified under subsection (b) in rank order on the
basis of the total number of children from low-in-
come families in each area or school.
‘‘(2) SPECIAL RULE.—(A) Except as provided
in subparagraph (B), the per-pupil amount of funds
allocated 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 received for that year under the poverty cri-
teria described by the local educational agency in the
plan submitted under section 1112, except that this
paragraph shall not apply to a local educational
agency that only serves schools in which the percent-
age 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 pro-
grams that meet the requirements of section 1114 or
1115.
‘‘(3) RESERVATION.—A local educational agen-
cy shall reserve such funds as are necessary under
this 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;
‘‘(B) children in local institutions for ne-
glected or delinquent children; and
‘‘(C) if appropriate, neglected and delin-
quent children in community day school pro-
grams.
‘‘(1) all eligible students across grade levels
served under this part will have equal access to the
program;
‘‘(2) describe how the school will use resources
under this part and from other sources to implement
the plan;
‘‘(3) 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;
‘‘(4) parents of eligible students in the local
educational agency will be given prompt notice of the
existence of the public school choice program and its
availability to them, and a clear explanation of how
the program will operate;
‘‘(5) 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
action for the past 2 consecutive years;
‘‘(6) transportation services or the costs of
transportation may be provided by the local edu-
cational agency with funds under this part; and
‘‘(1) IN GENERAL.—
‘‘(A) 
IDENTIFICATION.—A 
local 
edu-
cational agency shall identify for school im-
provement 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
effective date of the No Child Left Behind
Act of 2001.
‘‘(B) APPLICATION.—Paragraph (1) does
not apply to a school if almost every student in
the school is meeting the State’s advanced level
of performance.
‘‘(C) REVIEW.—To determine if an ele-
mentary school or a secondary school that is
conducting a targeted assistance program under
section 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.
‘‘(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 section 1116(b)(6), or for restructuring
under section 1116(b)(7), the local educational
agency shall provide the school with an oppor-
tunity to review the school-level data, including
assessment data, on which the proposed identi-
fication is based.
‘‘(B) EVIDENCE.—If the principal of a
school proposed for identification under para-
graph (1), (6), or (7) believes that the proposed
identification is in error for statistical or other
substantive reasons, the principal may provide
supporting evidence to the local educational
agency, which shall consider that evidence be-
fore making a final determination.
‘‘(C) FINAL
DETERMINATION.—Not later
than 30 days after a local educational agency
makes an initial determination concerning iden-
tifying a school under paragraph (1), (6), or
(7), the local educational agency shall make
public a final determination on the status of the
school.
‘‘(3) SCHOOL PLAN.—
‘‘(A) REVISED PLAN.—Each school identi-
fied under paragraph (1) for school improve-
ment 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 ap-
proval 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
academic subjects in the school and ad-
dress the specific academic issues that
caused the school to be identified for
school improvement;
‘‘(ii) adopt policies and practices con-
cerning the school’s core academic subjects
that have the greatest likelihood of ensur-
ing that all groups of students specified in
section 1111(b)(2)(C)(iii)(I) and (II) and
enrolled in the school will meet the State’s
proficient level of achievement on the State
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;
‘‘(iii) provide an assurance that the
school shall reserve not less than 10 per-
cent 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
professional development that—
‘‘(I) directly addresses the aca-
demic 
performance 
problem 
that
caused the school to be identified for
school improvement; and
‘‘(II) meets the requirements for
professional 
development 
activities
under section 1119A;
‘‘(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 speci-
fied in section 1111(b)(2)(C)(iii)(I) and
(II) and enrolled in the school that will en-
sure that all such groups of students shall
meet the State’s proficient level of achieve-
ment on the State 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-
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; and
‘‘(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 assistance to be provided by the
local educational agency under paragraph
(4).
‘‘(B) CONDITIONAL APPROVAL.—The local
educational agency may condition approval of a
school plan on inclusion of 1 or more of the cor-
rective actions specified in paragraph (6)(D)(ii).
‘‘(C) PLAN
IMPLEMENTATION.—A school
shall implement the school plan (including a re-
vised plan) expeditiously, but not later than the
beginning of the school year following the
school year in which the school was identified
for school improvement.
‘‘(D) LOCAL
EDUCATIONAL
AGENCY
AP-
PROVAL.—The local educational agency shall—
‘‘(i) establish a peer-review process to
assist with review of a school plan pre-
pared by a school served by the local edu-
cational agency; and
‘‘(ii) promptly review the school plan,
work with the school as necessary, and ap-
prove the school plan if it meets the re-
quirements of this paragraph.
‘‘(4) TECHNICAL ASSISTANCE.—
‘‘(A) IN GENERAL.—For each school iden-
tified for school improvement under paragraph
(1), the local educational agency serving the
school shall provide technical assistance with
funds allocated under section 1003 as the
school develops and implements the school plan.
‘‘(B) SPECIFIC
ASSISTANCE.—Such tech-
nical assistance—
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
RE-
SEARCH.—Technical assistance provided under
this section by a local educational agency or an
entity approved by that agency shall be based
on scientifically 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—
‘‘(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 educational agency involved;
‘‘(B) the reasons for the identification;
‘‘(C) an explanation of what the school
identified for school improvement is doing to
address 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 achieve-
ment problem; and
‘‘(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 improve-
ment.
‘‘(6) CORRECTIVE ACTION.—
‘‘(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 ac-
tion; and
‘‘(II) any underlying staffing,
curriculum, or other problem 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 assessment described in section
1111(b)(4).
‘‘(B) SYSTEM.—In order to help students
served under this part meet challenging State
standards, each local educational agency shall
implement a system of corrective action in ac-
cordance with subparagraphs (C) through (F)
and paragraphs (7) through (9).
‘‘(C) ROLE OF LOCAL EDUCATIONAL AGEN-
CY.—The local educational agency—
‘‘(i) may identify for corrective action
and take corrective action with respect to
any school identified as in need of improve-
ment under paragraph (1);
‘‘(ii) after providing technical assist-
ance under paragraph (4), shall identify
for corrective action and take corrective ac-
tion with respect to any school served by
the local educational agency under this
part that—
‘‘(I) fails to make adequate year-
ly progress, as defined by the State
under section 1111(b)(2), at the end
of the first school year after the
school year in which the school was
identified under paragraph (1); or
‘‘(II) was in school-improvement
status for 2 years or in corrective-ac-
tion status under this subsection im-
mediately before the effective date of
the No Child Left Behind Act of
2001;
‘‘(iii) shall continue to provide tech-
nical assistance while instituting any cor-
rective action under clause (i) or (ii); and
‘‘(iv) shall, in any case described in
clause (ii), promptly notify parents of the
option to transfer their child to another
public school under subparagraph (D)(i).
‘‘(D) REQUIREMENTS.—In the case of a
school described in subparagraph (C)(ii), the
local educational agency shall both—
‘‘(i) provide all students enrolled in
the school with the option to transfer to
another public school within the local edu-
cational 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 adequate 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.
‘‘(E) DELAY.—A local educational agency
may delay, for a period not to exceed 1 year,
implementation of corrective action only if the
school’s failure to make adequate yearly
progress was justified due to exceptional or un-
controllable circumstances, such as a natural
disaster or a precipitous and unforeseen decline
in the financial resources of the local edu-
cational agency or school.
‘‘(F) 
PUBLICATION
AND
DISSEMINA-
TION.—The local educational agency shall pub-
lish and disseminate information regarding any
corrective action the local educational agency
takes under this paragraph at a school—
‘‘(i) to the public and to the parents
of each student enrolled in the school sub-
ject 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
Internet, the media, and public agencies.
‘‘(7) RESTRUCTURING.—
‘‘(A) FAILURE TO MAKE ADEQUATE YEAR-
LY PROGRESS.—If—
‘‘(i) after 1 additional year, a school
subject to corrective action under para-
graph (6) continues to fail to make ade-
quate yearly progress and students in the
school who are from economically dis-
advantaged families are not making meas-
urable progress in the subjects included in
the State’s definition of adequate yearly
progress; or
‘‘(ii) for 2 additional years a school
subject to corrective action under para-
graph (6) fails to make adequate yearly
progress, the local educational agency
shall—
‘‘(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 prohib-
ited by State law;
‘‘(II) make funds available to the
economically 
disadvantaged 
child’s
parents to place the child in a private
school or to obtain supplementary
educational services, in accordance
with subsection (d); 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:
‘‘(i) Reopening the school as a public
charter school.
‘‘(ii) Replacing all or most of the
school staff.
‘‘(iii) With the approval of a majority
of the teachers at the school and a major-
ity of parents of children enrolled at the
school, operation of the school by another
entity, such as a private management com-
pany.
‘‘(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
educational agency shall ensure that, for any
school year in which a school is subject to cor-
rective action under paragraph (6)(C)(ii), and
for any school and school year described in sub-
paragraph (A) or (B) of this paragraph, the re-
sults of State assessments for that school are
available to the local educational agency by the
end of the school year in which the assessments
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
opportunity to comment before taking any ac-
tion under those paragraphs and to participate
in developing any plan under subparagraph
(A)(iii), and shall provide parents an expla-
nation of the options under subparagraph (A)(i)
and (ii).
‘‘(8) TRANSPORTATION.—In any case described
in 
paragraph 
(6)(D)(i), 
(7)(A)(i)(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
school the child attends; and
‘‘(B) may use not more than 15 percent of
its allocation under this part for that purpose.
‘‘(9) DURATION.—If any school identified for
reconstitution under paragraph (7)—
‘‘(A) makes adequate yearly progress for 2
consecutive years, the local educational agency
need no longer subject it to corrective action or
identify it as in need of improvement; or
‘‘(B) fails to make adequate yearly
progress, but children from low-income families
in the school make measurable educational
progress for 1 year, the local educational agen-
cy shall place or continue as appropriate the
school in corrective action under paragraph (6).
‘‘(10) STATE
RESPONSIBILITIES.—The State
shall—
‘‘(A) make technical assistance under sec-
tion 1117 available to all schools identified for
school improvement and corrective action under
this subsection, to the extent possible with
funds reserved under section 1003; and
‘‘(B) if it determines that a local edu-
cational agency has failed to carry out its re-
sponsibilities under this subsection, take such
100
corrective actions as the State finds appropriate
and in compliance with State law.
‘‘(c) STATE REVIEW
AND LOCAL EDUCATIONAL
AGENCY IMPROVEMENT.—
‘‘(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 achievement
standards; and
‘‘(B) publicize and disseminate to local
educational agencies, teachers and other staff,
parents, students, and the community the re-
sults of the State review consistent with section
1111, 
including 
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
101
‘‘(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.
‘‘(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
enactment of the No Child Left Behind Act of 2001,
during 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
educational agency, a State educational agency may
choose to review the progress of only the students in
such schools who are served under this part.
‘‘(5) OPPORTUNITY TO REVIEW AND PRESENT
EVIDENCE.—
‘‘(A) REVIEW.—Before identifying a local
educational agency for improvement under
paragraph (2), a State educational agency shall
provide the local educational agency with an op-
portunity to review the local educational agency
102
data, including assessment data, on which that
proposed identification is based.
‘‘(B) SUPPORTING EVIDENCE.—If the local
educational agency believes that the proposed
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.
‘‘(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
improvement, of the reasons for such agency’s iden-
tification and how parents can participate in upgrad-
ing the quality of the local educational agency.
‘‘(7) LOCAL
EDUCATIONAL
AGENCY
REVI-
SIONS.—
‘‘(A) PLAN.—Each local educational agen-
cy identified under paragraph (2) shall, not
later than 3 months after being so identified,
develop or revise a local educational agency
plan, in consultation with parents, school staff,
and others. Such plan shall—
103
‘‘(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 par-
ticipating children in meeting the
State’s student 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 identi-
fied in the disaggregated data pursu-
ant to section 1111(b)(2)(C)(iii)(I)
and (II);
‘‘(iii) identify how the local edu-
cational agency will provide written notifi-
cation to parents in a format, and to the
extent practicable in a language, that they
104
can understand, pursuant to paragraph
(6); and
‘‘(iv) 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
‘‘(ii) to work with schools needing im-
provement.
‘‘(B) TECHNICAL ASSISTANCE.—Technical
assistance provided under this section by the
105
State educational agency or an entity author-
ized by such agency shall be based upon sci-
entifically based research.
‘‘(9) CORRECTIVE
ACTION.—In order to help
students served under this part meet challenging
State standards, each State shall implement a sys-
tem of corrective action in accordance with the fol-
lowing:
‘‘(A) IN GENERAL.—After providing tech-
nical assistance under paragraph (8) and sub-
ject 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
paragraph (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 second year following its identi-
fication under paragraph (2); and
‘‘(iii) shall continue to provide tech-
nical assistance while instituting any cor-
rective action under clause (i) or (ii).
106
‘‘(B) DEFINITION.—As used in this para-
graph, the term ‘corrective action’ means ac-
tion, 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
performance 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
educational agency.
‘‘(ii) Replace the school district per-
sonnel who are relevant to the failure to
make adequate year progress.
‘‘(iii) Remove particular schools from
the jurisdiction of the local educational
agency and establish alternative arrange-
107
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
public school operated by another local
educational 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 paragraph.
‘‘(D) HEARING.—Prior to implementing
any corrective action, the State educational
agency shall provide due process and a hearing
to the affected local educational agency, if State
law provides for such process and hearing.
108
‘‘(E) 
PUBLICATION.—The 
State 
edu-
cational 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,
implementation of corrective action if the fail-
ure to make adequate yearly progress was justi-
fied due to exceptional or uncontrollable cir-
cumstances such as a natural disaster or a pre-
cipitous and unforeseen decline in the financial
resources of the local educational agency or
school.
‘‘(10) SPECIAL
RULE.—A local educational
agency, that, for at least 2 of the 3 years following
identification under paragraph (2), makes adequate
yearly progress shall no longer be identified for
school improvement.
‘‘(d) PARENTAL CHOICE.—
‘‘(1) IN GENERAL.—In any case described in
section 1116(b)(7)(A)(ii)(II) the local educational
agency shall permit the parents of each eligible child
defined in paragraph (7)(A) to—
109
‘‘(A) receive, from the agency, the child’s
share of funds allocated to the school under this
part, calculated under paragraph (2); and
‘‘(B) use those funds to pay the costs of ei-
ther or both of the following:
‘‘(i) Notwithstanding any other provi-
sion of this Act, attending a private school
that agrees to—
‘‘(I) assess the student in mathe-
matics and reading and language arts
each year during grades 3 through 8
and at least once during grades 10
through 12, using assessments that
are comparable in what they measure
to the assessments used by the State;
and
‘‘(II) provide the results of those
assessments to the student’s parents.
‘‘(ii) Obtaining supplemental edu-
cational services from a provider approved
for that purpose by the State educational
agency, in accordance with reasonable cri-
teria it shall adopt, and paying for the
costs of transportation to obtain those
services.
110
‘‘(2) PER-CHILD AMOUNT.—The amount of a
school’s allocation under this part that it shall make
available to the parents of an eligible child under
paragraph (1)(B) is equal to—
‘‘(A) the amount of the school’s allocation
under subpart 2 of this part, after subtracting
amounts reserved by the school—
‘‘(i) to carry out parental involvement
activities under section 1118; and
‘‘(ii) to provide professional develop-
ment required by section 1119A; divided
by—
‘‘(B) the number of eligible children en-
rolled in the school.
‘‘(3) LIMITATION.—The amount of funds pro-
vided to the parents of a child under this subsection
shall not exceed the actual costs of the parents for
either or both of the following:
‘‘(A) Sending the child to a private school.
‘‘(B) Obtaining supplemental educational
services for the child and providing transpor-
tation to those services.
‘‘(4) DURATION.—The local educational agency
shall continue to provide funds to parents of a child
attending a private school under this section until
111
the child completes the grade corresponding to the
highest grade offered at the public school the child
previously attended.
‘‘(5) NONDISCRIMINATION.—
‘‘(A) Except as provided in subparagraph
(B), title VI of the Civil Rights Act of 1964,
title IX of the Education Amendments of 1972,
and section 504 of the Rehabilitation Act of
1973, do not apply to a private schol that en-
rolls an eligible child who receives funds under
paragraph (1) by virtue of that child’s use of
those funds to enroll at that school.
‘‘(B) The local educational agency shall en-
sure that a private school that enrolls an eligi-
ble child described in subparagraph (A) shall
afford the child the same rights against dis-
crimination provided by the statutes identified
in that subparagraph, and shall afford those
same rights to any eligible child who applies to
enroll in that school.
‘‘(6) SCHOOL AID.—Funds used under this sub-
section for attendance at a private school shall be
considered assistance to the student and shall not be
considered as assistance to any school that chooses
to participate.
112
‘‘(7) 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); and
‘‘(B) ‘supplementary educational services’
means tutoring and other supplemental aca-
demic enrichment services.
‘‘SEC. 1117. STATE ASSISTANCE FOR SCHOOL SUPPORT AND
IMPROVEMENT.
‘‘(a) SYSTEM FOR SUPPORT.—Each State shall es-
tablish a statewide system of intensive and sustained sup-
port and improvement for local educational agencies and
schools receiving funds under this part, in order to in-
crease the opportunity for all students in those agencies
and schools to meet the State’s content standards and stu-
dent 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 edu-
113
cational agency has failed to carry out its respon-
sibilities under section 1116(b)(8) and (9);
‘‘(2) second, provide support and assistance to
other local educational agencies identified as in need
of improvement under section 1116; and
‘‘(3) third, provide support and assistance to
other local educational agencies and schools partici-
pating under this part that need that support and
assistance 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 learn-
ing, particularly about strategies for improving edu-
cational 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 improv-
ing academic achievement.
‘‘(d) FUNDS.—Each State—
114
‘‘(1) shall use funds reserved under section
1003(a); and
‘‘(2) may use State administrative funds au-
thorized under section 1002(i) for such purpose to
establish a Statewide system of support.
‘‘(e) ALTERNATIVES.—The State may devise addi-
tional approaches to providing the assistance described in
paragraphs (1) and (2) of subsection (c), such as pro-
viding assistance through institutions of higher education
and educational service agencies or other local consortia,
and private providers of scientifically based technical as-
sistance and the State may seek approval from the Sec-
retary to use funds made available under section 1002(g)
for such approaches as part of the State plan.
‘‘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 financially 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
115
‘‘(B) 
exceeded 
their 
adequate 
yearly
progress 
goals, 
consistent 
with 
section
1111(b)(2), for 2 or more consecutive years.
‘‘(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 consist-
ently make significant gains in academic achieve-
ment in the areas in which the teacher provides in-
struction.
‘‘(b) FUNDING.—
‘‘(1) RESERVATION OF FUNDS BY STATE.—For
the purpose of carrying out this section, each State
receiving 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 3 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.
116
‘‘(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
50 percent of the amount reserved under para-
graph (1) for each fiscal year to schools de-
scribed 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 eligible for free and reduced priced
lunches under the National School Lunch Act.
‘‘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 agen-
cy 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 imple-
mented with meaningful consultation with parents of
participating children.
117
‘‘(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
involvement policy that is incorporated into the local
educational agency’s plan developed under section
1112, establishes the expectations for parent involve-
ment, and describes how the local educational agen-
cy 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 pro-
grams, such as Head Start, Early Reading
First, Reading First, Even Start, the Parents
118
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
effectiveness of the parental involvement policy
in 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 al-
location under this part (other than funds allo-
cated under section 1002(g) for the fiscal year
for which the determination is made is $5,000
or less.
‘‘(B) PARENTAL
INPUT.—Parents of children
receiving services under this part shall be involved in
the decisions regarding how funds reserved under
119
subparagraph (A) are allotted for parental involve-
ment activities.
‘‘(C) DISTRIBUTION OF FUNDS.—Not less than
95 percent of the funds reserved under subpara-
graph (A) shall be distributed to schools served
under this part.
‘‘(b) SCHOOL PARENTAL INVOLVEMENT POLICY.—
‘‘(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
requirements 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 under-
stand. Such policy shall be updated periodically to
meet the changing needs of parents and the school.
‘‘(2) SPECIAL RULE.—If the school has a pa-
rental 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
120
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
participating children, the local educational agency
shall submit any parent comments with such plan
when such local educational agency submits the plan
to the State.
‘‘(c) POLICY INVOLVEMENT.—Each school served
under this part shall—
‘‘(1) convene an annual meeting, at a conven-
ient time, to which all parents of participating chil-
dren 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
provide, with funds provided under this part, trans-
portation, child care, or home visits, as such services
relate 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
121
development of the schoolwide program plan under
section 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—
‘‘(A) timely information about programs
under this part;
‘‘(B) a description and explanation of the
curriculum in use at the school, the forms of as-
sessment 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 STU-
DENT PERFORMANCE.—As a component of the school-
level parental involvement policy developed under sub-
section (b), each school served under this part shall jointly
develop with parents for all children served under this part
122
a school-parent compact that outlines how parents, the en-
tire 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 standards.
‘‘(e) BUILDING CAPACITY FOR INVOLVEMENT.—To
ensure effective involvement of parents and to support a
partnership among the school, parents, and the commu-
nity to improve student achievement, each school and local
educational agency—
‘‘(1) shall provide assistance to participating
parents in such areas as understanding the State’s
content standards and State student achievement
standards, the provisions of section 1111(b)(8),
State and local assessments, the requirements of this
part, and how to monitor a child’s progress and
work with educators 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 assist-
ance of parents, in the value and utility of contribu-
tions of parents, and in how to reach out to, commu-
123
nicate with, and work with parents as equal part-
ners, implement 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 Young-
sters, the Parents as Teachers Program, and public
preschool programs and other programs, to the ex-
tent feasible and appropriate;
‘‘(5) shall ensure, to the extent possible, that
information 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;
124
‘‘(8) may pay reasonable and necessary ex-
penses associated with local parental involvement ac-
tivities, including transportation and child care
costs, to enable parents to participate in school-re-
lated meetings and training sessions;
‘‘(9) may train parents to enhance the involve-
ment of other parents;
‘‘(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; and
‘‘(13) may develop appropriate roles for com-
munity-based organizations and businesses in parent
involvement activities.
‘‘(f) ACCESSIBILITY.—In carrying out the parental
involvement requirements of this part, local educational
agencies and schools, to the extent practicable, shall pro-
vide full opportunities for the participation of parents with
limited English proficiency or with disabilities and parents
125
of migratory children, including providing information and
school reports required under section 1111 in a format,
and to the extent practicable, in a language such parents
understand.
‘‘SEC. 1119. QUALIFICATIONS FOR TEACHERS AND PARA-
PROFESSIONALS.
‘‘(a) TEACHERS.—
‘‘(1) IN
GENERAL.—Each local educational
agency receiving assistance under this part shall en-
sure 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
December 31, 2005. Such plan shall include an as-
surance that the State will require each local edu-
cational agency and school receiving funds under
this part publicly to report their annual progress on
the agency’s and the school’s performance in in-
creasing the percentage of classes in core academic
areas taught by fully qualified teachers.
‘‘(b) NEW PARAPROFESSIONALS.—
126
‘‘(1) IN
GENERAL.—Each local educational
agency receiving assistance under this part shall en-
sure 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
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.
127
‘‘(c) EXISTING PARAPROFESSIONALS.—Each local
educational agency receiving assistance under this part
shall 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 sup-
ported 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 PAREN-
TAL INVOLVEMENT ACTIVITIES.—Subsections (b) and (c)
shall not apply to a paraprofessional—
‘‘(1) who is proficient in English and a lan-
guage other than English and who provides services
primarily to enhance the participation of children in
programs under this part by acting as a translator;
or
‘‘(2) whose duties consist solely of conducting
parental involvement activities consistent with sec-
tion 1118.
‘‘(e) GENERAL
REQUIREMENT
FOR
ALL
PARA-
PROFESSIONALS.—Each local educational agency receiving
assistance under this part shall ensure that all paraprofes-
sionals working in a program supported with funds under
this part, regardless of the paraprofessional’s hiring date,
possess a high school diploma or its recognized equivalent.
128
‘‘(f) DUTIES OF PARAPROFESSIONALS.—
‘‘(1) IN
GENERAL.—Each local educational
agency receiving assistance under this part shall en-
sure that a paraprofessional working in a program
supported 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 re-
ceive instruction from a teacher;
‘‘(B) to assist with classroom management,
such as organizing instructional and other ma-
terials;
‘‘(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
students.
129
‘‘(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 assessment,
the ability to effectively carry out reading, writ-
ing, 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
paraprofessionals 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 Be-
hind Act of 2001, a local educational agency
may not use funds received under this part to
130
fund any paraprofessional hired after such date
unless the hiring is to fill a vacancy created by
the departure of another paraprofessional fund-
ed under this part and such new paraprofes-
sional satisfies the requirements of subsection
(b) or (c).
‘‘(B) 
EXCEPTION.—Subparagraph 
(A)
shall not apply for a fiscal year to a local edu-
cational 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
minimum shall require that the principal of each
school operating a program under section 1114 or
1115 annually 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
131
‘‘(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 as-
sist each local educational agency receiving assistance
under this part in increasing the academic achievement
of eligible children (as defined in section 1115(b)) through
improved teacher quality.
‘‘(b) PROFESSIONAL DEVELOPMENT ACTIVITIES.—
Professional development activities under this section
shall—
‘‘(1) support professional development activities
that give teachers, principals, and administrators the
knowledge and skills to provide students with the op-
portunity to meet challenging State or local content
standards and student 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;
132
‘‘(4) be directly related to the curriculum and
content areas in which the teacher provides instruc-
tion, except this requirement does not apply to ac-
tivities that instruct in methods of disciplining chil-
dren;
‘‘(5) be designed to enhance the ability of a
teacher to understand and use the State’s standards
for the subject area in which the teacher provides in-
struction;
‘‘(6) be tied to scientifically based research
demonstrating the effectiveness of such professional
development activities or programs in increasing stu-
dent 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) to the extent appropriate, provide training
for teachers in the use of technology so that tech-
nology and its applications are effectively used in the
classroom to improve teaching and learning in the
133
curriculum and academic content areas in which the
teachers provide instruction; and
‘‘(10) as a whole, be regularly evaluated for
their impact on increased teacher effectiveness and
improved student achievement, with the findings of
such evaluations used to improve the quality of pro-
fessional development.
‘‘(c) ADDITIONAL
PROFESSIONAL
DEVELOPMENT
ACTIVITIES.—Such professional development activities
may include—
‘‘(1) instruction in the use of data and assess-
ments to inform and instruct classroom practice;
‘‘(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
teacher training programs that provide prospective
teachers and novice teachers with an opportunity to
work under the guidance of experienced teachers and
college faculty;
‘‘(4) the creation of career ladder programs for
paraprofessionals (assisting teachers under this
part) to obtain the education necessary for such
134
paraprofessionals to become licensed and certified
teachers; and
‘‘(5) instruction in ways to teach special needs
children.
‘‘(c) PROGRAM PARTICIPATION.—Each local edu-
cational agency receiving assistance under this part may
design professional development programs so that—
‘‘(1) all school staff in schools participating in
a schoolwide program under section 1114 can par-
ticipate in professional development activities; and
‘‘(2) all school staff in targeted assistance
schools may participate in professional development
activities if such participation will result in better
addressing the needs of students served under this
part.
‘‘(d) PARENTAL PARTICIPATION.—Parents may par-
ticipate in professional development activities under this
part if the school determines that parental participation
is appropriate.
‘‘(e) CONSORTIA.—In carrying out such professional
development programs, local educational agencies may
provide services through consortia arrangements with
other local educational agencies, educational service agen-
cies or other local consortia, institutions of higher edu-
135
cation, or other public or private institutions or organiza-
tions.
‘‘(f) 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.
‘‘(g) DEFINITION.—The term ‘fully qualified’ has the
same meaning given such term in section 8101.
‘‘(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(c)(9).
‘‘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
section 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 pri-
vate school officials, provide such children, on an eq-
uitable basis, special educational services or other
136
benefits under this part (such as dual enrollment,
educational radio and television, computer equip-
ment and materials, other technology, and mobile
educational services and equipment) that address
their needs, and shall ensure that teachers and fami-
lies of these students 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 eq-
uitable 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
local educational agency may determine each year or
every 2 years.
137
‘‘(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
meaningful consultation, a local educational agency
shall consult with appropriate private school officials
during the design and development of such agency’s
programs under this part, on issues such as—
‘‘(A) how the children’s needs will be iden-
tified;
‘‘(B) what services will be offered;
‘‘(C) how, where, and by whom the services
will be provided;
‘‘(D) how the services will be assessed and
how the results of that assessment will be used
to improve those services;
‘‘(E) the size and scope of the equitable
services to be provided to the eligible private
school children, and the amount of funds gen-
erated by low-income private school children in
each participating attendance area;
‘‘(F) the method or sources of data that
are used under subsection (a)(4) and section
138
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
officials 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 pro-
vide in writing to such private school officials, an analysis
of the reasons why the local educational 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 pro-
grams under this part. Such meetings shall continue
throughout implementation and assessment of serv-
ices provided under this section.
139
‘‘(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 occurred.
‘‘(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 meaningful and timely, and that due consider-
ation was given to the views of private school offi-
cials. If the private school wishes to appeal, the basis
of the claim of noncompliance with this section by
a local educational agency shall be provided to the
State, and the local educational agency shall forward
the documentation 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
140
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 agen-
cy with an individual, association, agency, or or-
ganization.
‘‘(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
contract 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
enrolled 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
participation, as required by this section, the Secretary
shall—
‘‘(1) arrange for the provision of services to
such children through arrangements that shall be
141
subject to the requirements of this section and sec-
tions 8505 and 8506; and
‘‘(2) waive the requirements of this section for
such local educational agency;
‘‘(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 ap-
propriated for this subsection under section 1002(e)
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 chil-
dren who received services under this part in the
State in the most recent year for which data satis-
factory 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 sub-
section to other States on the basis of their respec-
tive needs, as determined by the Secretary.
142
‘‘(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.
‘‘(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
subsection.
‘‘(3) USES OF FUNDS.—Any funds appropriated
to carry out this subsection shall be used only for
capital expenses incurred to provide equitable serv-
ices for private school children under this section.
‘‘SEC. 1120A. FISCAL REQUIREMENTS.
‘‘(a) MAINTENANCE
OF
EFFORT.—A local edu-
cational 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 ef-
fort 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 edu-
cational 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
143
made available from non-Federal sources for the
education of pupils participating in programs as-
sisted under this part, and not to supplant such
funds.
‘‘(2) SPECIAL
RULE.—No local educational
agency shall be required to provide services under
this part through a particular instructional method
or in a particular instructional setting in order to
demonstrate such agency’s compliance with para-
graph (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 receiving 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
services that, taken as a whole, are substantially
comparable in each school.
144
‘‘(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.
‘‘(2) WRITTEN ASSURANCE.—(A) A local edu-
cational agency shall be considered to have met the
requirements of paragraph (1) if such agency has
filed with the State educational agency a written as-
surance 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.
145
‘‘(C) A local educational agency need not in-
clude unpredictable changes in student enrollment or
personnel assignments that occur after the beginning
of a school year in determining comparability of
services under this subsection.
‘‘(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.
146
‘‘(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.
‘‘SEC. 1120B. COORDINATION REQUIREMENTS.
‘‘(a) IN GENERAL.—Each local educational agency
receiving assistance under this part shall carry out the ac-
tivities described in subsection (b) with Head Start Agen-
cies, 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 be-
tween the local educational agency and a Head Start agen-
cy, and, if feasible, other early childhood development pro-
grams, such as Early Reading First serving children who
will attend 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
childhood development programs such as Early
Reading First;
147
‘‘(2) establishing channels of communication be-
tween school staff and their counterparts in such
Head Start agencies (including teachers, social
workers, and health staff) or other early childhood
development programs such as Early Reading First,
as appropriate, to facilitate coordination of pro-
grams;
‘‘(3) conducting meetings involving parents,
kindergarten or elementary school teachers, and
Head Start teachers or, if appropriate, teachers
from other early childhood development programs
such as Early Reading First, to discuss the develop-
mental 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 Sec-
retary shall work with the Secretary of Health and Human
Services to coordinate regulations promulgated under this
148
part with regulations promulgated under the Head Start
Act Amendments of 1994.
‘‘Subpart 2—Allocations
‘‘SEC. 1121. GRANTS FOR THE OUTLYING AREAS AND THE
SECRETARY OF THE INTERIOR.
‘‘(a) RESERVATION OF FUNDS.—From the amount
appropriated for payments to States for any fiscal year
under section 1002(a), the Secretary shall reserve a total
of 1 percent to provide assistance to—
‘‘(1) the outlying areas in the amount deter-
mined in accordance with subsection (b); and
‘‘(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 fiscal years
2000 and 2001, the Secretary shall carry out the
competition described in paragraph (3), except that
the amount reserved to carry out such competition
shall not exceed the amount reserved under this sec-
149
tion for the freely associated states for fiscal year
1999.
‘‘(3) LIMITATION FOR COMPETITIVE GRANTS.—
‘‘(A) COMPETITIVE
GRANTS.—The Sec-
retary shall use funds described in paragraph
(2) to award grants, on a competitive basis, to
the outlying 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
competitive basis, pursuant to the recommenda-
tions of the Pacific Region Educational Labora-
tory 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.
150
‘‘(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 Is-
lands.
‘‘(d) ALLOTMENT TO THE SECRETARY OF THE INTE-
RIOR.—
‘‘(1) IN
GENERAL.—The amount allotted for
payments to the Secretary of the Interior under sub-
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
educational 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.
151
‘‘(2) PAYMENTS.—From the amount allotted
for payments to the Secretary of the Interior under
subsection (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
expenditure in the State in which the agency is
located; or
‘‘(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 au-
thorized to be appropriated to carry out this part for each
of fiscal years 2002 through 2006 (referred to in this sub-
section 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;
152
‘‘(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
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 sec-
tions 1124, 1124A, and 1125 for such fiscal year,
allocations that were reduced under paragraph (1)
153
shall be increased on the same basis as they were re-
duced.
‘‘(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 section 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 percentage described in subpara-
graph (A) is between 15 percent and 30 per-
cent; and
‘‘(C) not less than 85 percent of the
amount made available in the preceding fiscal
year if the percentage described in subpara-
graph (A) is below 15 percent.
‘‘(2) 
AMOUNT
FOR
SECTION
1124A.—The
amount made available to each local educational
154
agency under section 1124A shall be not less than
85 percent of the amount made available in the pre-
ceding fiscal year.
‘‘(3) PAYMENTS.—If sufficient funds are appro-
priated, the amounts described in paragraph (2)
shall be paid to all local educational agencies that
received grants under section 1124A for the pre-
ceding fiscal year, regardless of whether the local
educational agency meets the minimum eligibility
criteria for that fiscal year provided in section
1124A(a)(1)(A) except that a local educational agen-
cy that does not meet such minimum eligibility cri-
teria for 4 consecutive years shall no longer be eligi-
ble to receive a hold harmless amount referred to in
paragraph (2).
‘‘(4) POPULATION DATA.—In any fiscal year for
which the Secretary calculates grants on the basis of
population data for counties, the Secretary shall
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 pro-
portionately from all other local educational agencies
155
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
receive under subsection (c) for such year, the Sec-
retary 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
reduced 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.
‘‘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
156
this section for a fiscal year is the amount deter-
mined by multiplying—
‘‘(A) the number of children counted under
subsection (c); and
‘‘(B) 40 percent of the average per-pupil
expenditure 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
EDU-
CATIONAL AGENCIES.—The Secretary shall cal-
culate grants under this section on the basis of
the number of children counted under sub-
section (c) for local educational agencies, unless
the Secretary and the Secretary of Commerce
determine that some or all of those data are un-
reliable or that their use would be otherwise in-
appropriate, in which case—
‘‘(i) the 2 Secretaries shall publicly
disclose the reasons for their determination
in detail; and
‘‘(ii) paragraph (3) shall apply.
157
‘‘(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
section 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
agencies.
‘‘(iv) An alternative method under clause
(iii)(II) shall be based on population data that
the State educational agency determines best
reflect the current distribution of children in
poor families among the State’s small local edu-
158
cational agencies that meet the eligibility cri-
teria 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 calculate grants under this section on the
basis of the number of children counted under
section 1124(c) for counties, and State edu-
cational 
agencies 
shall 
suballocate 
county
amounts to local educational agencies, in ac-
159
cordance with regulations issued by the Sec-
retary.
‘‘(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 Secretary for authority to make the allo-
cations under this part for a particular fiscal
year directly to local educational agencies with-
out regard to counties.
‘‘(C) ASSURANCES.—If the Secretary ap-
proves the State educational agency’s applica-
tion under subparagraph (B), the State edu-
cational 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
‘‘(ii) using data that the State edu-
cational agency submits to the Secretary
for approval that more accurately target
poverty.
160
‘‘(D) APPEAL.—The State educational
agency shall provide the Secretary an assurance
that it shall establish a procedure through
which a local educational agency that is dissat-
isfied with its determinations under subpara-
graph (B) may appeal directly to the Secretary
for a final determination.
‘‘(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 sec-
tion shall be the amount determined by multi-
plying 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 Common-
wealth of Puerto Rico is of the lowest aver-
age per-pupil expenditure of any of the 50
States; and
‘‘(ii) 32 percent of the average per-
pupil expenditure in the United States.
‘‘(B) MINIMUM
PERCENTAGE.—The per-
centage in subparagraph (A)(i) shall not be less
than—
161
‘‘(i) for fiscal year 2002, 77.5 percent;
‘‘(ii) for fiscal year 2003, 80.0 per-
cent;
‘‘(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
percentage in subparagraph (A)(i) or the per-
centage 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 QUAL-
IFY.—A local educational agency is eligible for a basic
grant 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
162
‘‘(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
appropriate) aged 5 to 17, inclusive, in the
school district of such agency in institutions for
neglected 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 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
163
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 Sec-
retary 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 Commonwealth of Puerto Rico shall be
treated as individual local educational agencies. If a
local educational 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 educational agency shall distribute to schools in
each county within such agency a share of the local
educational agency’s total grant that is no less than
the county’s share of the population counts used to
calculate 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,
164
aged 5 to 17, inclusive, from families below the pov-
erty level for local educational agencies or counties,
published by the Department of Commerce, unless
the Secretary and the Secretary of Commerce deter-
mine 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 referred to in this paragraph are in-
appropriate or unreliable, 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 cen-
sus, in such form as those criteria have been up-
dated by increases in the Consumer 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 de-
termine the number of children aged 5 to 17, inclu-
sive, from families above the poverty level on the
basis of 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 funded under part A of title IV of the So-
165
cial Security Act; and in making such determina-
tions the Secretary shall utilize the criteria of pov-
erty used by the Bureau of the Census in compiling
the most recent decennial census for a family of 4
in such form as those criteria have been updated by
increases in the Consumer Price Index for all urban
consumers, published by the Bureau of Labor Statis-
tics. The Secretary shall determine the number of
such children and the number of children aged 5
through 17 living in institutions for neglected or de-
linquent 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 children described in the pre-
ceding 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 extent that such
data are not available to the Secretary before Janu-
ary of the calendar year in which the Secretary’s de-
termination is made, then on the basis of the most
recent reliable data available to the Secretary at the
time of such determination. The Secretary of Health
and Human Services shall collect and transmit the
information required by this subparagraph to the
166
Secretary not later than January 1 of each year.
For the purpose of this section, the Secretary shall
consider all children who are in correctional institu-
tions to be living in institutions for delinquent chil-
dren.
‘‘(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
Commerce shall give consideration to any request of
the chief executive of a State for the collection of ad-
ditional census information.
‘‘(d) STATE
MINIMUM.—Notwithstanding section
1122, the aggregate amount allotted for all local edu-
cational agencies within a State may not be less than the
lesser of—
‘‘(1) 0.25 percent of total grants under this sec-
tion; or
‘‘(2) the average of—
167
‘‘(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
provided in this paragraph, each local educational
agency, 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 eligible 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
children aged 5 through 17 in the agency.
168
‘‘(B) Notwithstanding section 1122, no State
described in subparagraph (A) shall receive less than
the lesser of—
‘‘(i) 0.25 percent of total grants; or
‘‘(ii) the average of—
‘‘(I) one-quarter of 1 percent of the
sums available to carry out this section for
such fiscal year; and
‘‘(II) the greater of—
‘‘(aa) $340,000; or
‘‘(bb) the number of children in
such State counted for purposes of
this section in that fiscal year multi-
plied by 150 percent of the national
average per-pupil payment made with
funds available under this section for
that year.
‘‘(2) SPECIAL RULE.—For each county or local
educational agency eligible to receive an additional
grant under this section for any fiscal year the Sec-
retary shall determine the product of—
‘‘(A) the number of children counted under
section 1124(c) for that fiscal year; and
‘‘(B) the quotient resulting from the divi-
sion of the amount determined for those agen-
169
cies under section 1124(a)(1) for the fiscal year
for which the determination is being made di-
vided 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 Sec-
retary allocates funds under this section on the basis
of counties, 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 in-
eligible counties that do not meet these criteria.
170
‘‘(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 state-
wide average percentage of such children or the
statewide average number of such children shall re-
ceive 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
agency counted under subsection 1124(c), before applica-
tion 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
171
population aged 5 to 17 years, inclusive, in the local edu-
cational agency. For each fiscal year for which the Sec-
retary uses county population data to calculate grants,
funds made available as a result of applying this sub-
section shall be reallocated by the State educational agen-
cy to other eligible local educational agencies in the State
in proportion to the distribution of other funds under this
section.
‘‘(b) GRANTS FOR LOCAL EDUCATIONAL AGENCIES,
THE DISTRICT OF COLUMBIA, AND PUERTO RICO.—
‘‘(1) IN GENERAL.—The amount of the grant
that a local educational agency in a State or that the
District of Columbia is eligible to receive under this
section for any fiscal year shall be the product of—
‘‘(A) the weighted child count determined
under subsection (c); and
‘‘(B) 
the 
amount 
in 
paragraph
1124(a)(1)(B).
‘‘(2) PUERTO RICO.—For each fiscal year, the
amount of the grant for which the Commonwealth of
Puerto Rico is eligible under this section shall be
equal to the number of children counted under sub-
section (c) for Puerto Rico, multiplied by the
amount determined in subparagraph 1124(a)(4).
‘‘(c) WEIGHTED CHILD COUNT.—
172
‘‘(1) WEIGHTS
FOR
ALLOCATIONS
TO
COUN-
TIES.—
‘‘(A) IN GENERAL.—For each fiscal year
for which the Secretary uses county population
data to calculate grants, the weighted child
count used to determine a county’s allocation
under this section is the larger of the 2
amounts determined under clause (i) or (ii), as
follows:
‘‘(i) 
BY
PERCENTAGE
OF
CHIL-
DREN.—This amount is determined by
adding—
‘‘(I) the number of children de-
termined under section 1124(c) for
that county constituting up to 15 per-
cent, inclusive, of the county’s total
population aged 5 to 17, inclusive,
multiplied by 1.0;
‘‘(II) the number of such children
constituting more than 15 percent,
but not more than 19 percent, of such
population, multiplied by 1.75;
‘‘(III) the number of such chil-
dren constituting more than 19 per-
cent, but not more than 24.20 per-
173
cent, of such population, multiplied by
2.5;
‘‘(IV) the number of such chil-
dren constituting more than 24.20
percent, but not more than 29.20 per-
cent, of such population, multiplied by
3.25; and
‘‘(V) the number of such children
constituting more than 29.20 percent
of such population, multiplied by 4.0.
‘‘(ii) BY
NUMBER
OF
CHILDREN.—
This amount is determined by adding—
‘‘(I) the number of children de-
termined under section 1124(c) con-
stituting up to 2,311, inclusive, of the
county’s total population aged 5 to
17, inclusive, multiplied by 1.0;
‘‘(II) the number of such children
between 2,312 and 7,913, inclusive, in
such population, multiplied by 1.5;
‘‘(III) the number of such chil-
dren between 7,914 and 23,917, inclu-
sive, in such population, multiplied by
2.0;
174
‘‘(IV) the number of such chil-
dren between 23,918 and 93,810, in-
clusive, in such population, multiplied
by 2.5; and
‘‘(V) the number of such children
in excess of 93,811 in such popu-
lation, multiplied by 3.0.
‘‘(B) 
PUERTO
RICO.—Notwithstanding
subparagraph (A), the weighted child count for
Puerto Rico under this paragraph shall not be
greater than the total number of children
counted under subsection 1124(c) multiplied by
1.72.
‘‘(2) WEIGHTS
FOR
ALLOCATIONS
TO
LOCAL
EDUCATIONAL AGENCIES.—
‘‘(A) IN GENERAL.—For each fiscal year
for which the Secretary uses local educational
agency data, the weighted child count used to
determine a local educational agency’s grant
under this section is the larger of the 2
amounts determined under clauses (i) and (ii),
as follows:
‘‘(i) 
BY
PERCENTAGE
OF
CHIL-
DREN.—This amount is determined by
adding—
175
‘‘(I) the number of children de-
termined under section 1124(c) for
that local educational agency consti-
tuting up to 15.233 percent, inclusive,
of the agency’s total population aged
5 to 17, inclusive, multiplied by 1.0;
‘‘(II) the number of such children
constituting more than 15.233 per-
cent, but not more than 22.706 per-
cent, of such population, multiplied by
1.75;
‘‘(III) the number of such chil-
dren constituting more than 22.706
percent, but not more than 32.213
percent, of such population, multiplied
by 2.5;
‘‘(IV) the number of such chil-
dren constituting more than 32.213
percent, but not more than 41.452
percent, of such population, multiplied
by 3.25; and
‘‘(V) the number of such children
constituting more than 41.452 percent
of such population, multiplied by 4.0.
176
‘‘(ii) BY
NUMBER
OF
CHILDREN.—
This amount is determined by adding—
‘‘(I) the number of children de-
termined under section 1124(c) con-
stituting up to 710, inclusive, of the
agency’s total population aged 5 to
17, inclusive, multiplied by 1.0;
‘‘(II) the number of such children
between 711 and 2,384, inclusive, in
such population, multiplied by 1.5;
‘‘(III) the number of such chil-
dren between 2,385 and 9,645, inclu-
sive, in such population, multiplied by
2.0;
‘‘(IV) the number of such chil-
dren between 9,646 and 54,600, inclu-
sive, in such population, multiplied by
2.5; and
‘‘(V) the number of such children
in excess of 54,601 in such popu-
lation, multiplied by 3.0.
‘‘(B) 
PUERTO
RICO.—Notwithstanding
subparagraph (A), the weighted child count for
Puerto Rico under this paragraph shall not be
greater than the total number of children
177
counted under section 1124(c) multiplied by
1.72.
‘‘(d) CALCULATION OF GRANT AMOUNTS.—Grants
under this section shall be calculated in accordance with
section 1124(a)(2) and (3).
‘‘(e) STATE MINIMUM.—Notwithstanding any other
provision of this section or section 1122, from the total
amount available for any fiscal year to carry out this sec-
tion, each State shall be allotted at least the lesser of—
‘‘(1) 0.25 percent of total appropriations; or
‘‘(2) the average of—
‘‘(A) one-quarter of 1 percent of the total
amount available to carry out this section; and
‘‘(B) 150 percent of the national average
grant under this section per child described in
section 1124(c), without application of a
weighting factor, multiplied by the State’s total
number 
of 
children 
described 
in 
section
1124(c), without application of a weighting fac-
tor.
‘‘SEC. 1126. SPECIAL ALLOCATION PROCEDURES.
‘‘(a) ALLOCATIONS FOR NEGLECTED CHILDREN.—
‘‘(1) IN
GENERAL.—If a State educational
agency determines that a local educational agency in
the State is unable or unwilling to provide for the
178
special educational needs of children who are living
in institutions for neglected children as described in
subparagraph (B) of section 1124(c)(1), the State
educational agency shall, if such agency assumes re-
sponsibility for the special educational needs of such
children, receive the portion of such local educational
agency’s allocation under sections 1124, 1124A, and
1125 that is attributable to such children.
‘‘(2) SPECIAL RULE.—If the State educational
agency does not assume such responsibility, any
other State or local public agency that does assume
such responsibility shall receive that portion of the
local educational agency’s allocation.
‘‘(b) ALLOCATIONS AMONG LOCAL EDUCATIONAL
AGENCIES.—The State educational agency may allocate
the amounts of grants under sections 1124, 1124A, and
1125 among the affected local educational agencies—
‘‘(1) if 2 or more local educational agencies
serve, in whole or in part, the same geographical
area;
‘‘(2) if a local educational agency provides free
public education for children who reside in the
school district of another local educational agency;
or
179
‘‘(3) to reflect the merger, creation, or change
of boundaries of 1 or more local educational agen-
cies.
‘‘(c) REALLOCATION.—If a State educational agency
determines that the amount of a grant a local educational
agency would receive under sections 1124, 1124A, and
1125 is more than such local agency will use, the State
educational agency shall make the excess amount available
to other local educational agencies in the State that need
additional funds in accordance with criteria established by
the State educational agency.
‘‘SEC. 1127. CARRYOVER AND WAIVER.
‘‘(a) LIMITATION ON CARRYOVER.—Notwithstanding
section 421 of the General Education Provisions Act or
any other provision of law, not more than 15 percent of
the funds allocated to a local educational agency for any
fiscal year under this subpart (but not including funds re-
ceived through any reallocation under this subpart) may
remain available for obligation by such agency for 1 addi-
tional fiscal year.
‘‘(b) WAIVER.—A State educational agency may,
once every 3 years, waive the percentage limitation in sub-
section (a) if—
180
‘‘(1) the agency determines that the request of
a local educational agency is reasonable and nec-
essary; or
‘‘(2) supplemental appropriations for this sub-
part become available.
‘‘(c) EXCLUSION.—The percentage limitation under
subsection (a) shall not apply to any local educational
agency that receives less than $50,000 under this subpart
for any fiscal year.
‘‘SEC. 1128. SECULAR, NEUTRAL, AND NONIDEOLOGICAL.
‘‘Any school that receives funds under this part shall
ensure that educational services or other benefits provided
under this part, including materials and equipment, shall
be secular, neutral, and nonideological.’’.
PART B—STUDENT READING SKILLS
IMPROVEMENT GRANTS
SEC. 111. READING FIRST; EARLY READING FIRST.
Part B of title I (20 U.S.C. 6361 et seq.) is
amended—
(1) by striking the part heading and inserting
the following:
181
‘‘PART B—STUDENT READING SKILLS
IMPROVEMENT GRANTS’’;
(2) by redesignating sections 1201 through
1212 as sections 1231 through 1242, respectively;
and
(3) by inserting after the part heading the fol-
lowing:
‘‘Subpart 1—Reading First
‘‘SEC. 1201. FINDINGS.
‘‘The Congress finds as follows:
‘‘(1) The 1998 National Assessment of Edu-
cational Progress found that 68 percent of fourth
grade students in the United States are reading
below the proficient level.
‘‘(2) That assessment also found that minority
students, on average, continue to lag far behind
their non-minority counterparts in reading pro-
ficiency.
‘‘(3) More than 1⁄2 of the students placed in
special education classes are identified as learning
disabled and, for as many as 80 percent of the stu-
dents so identified, reading is the primary difficulty.
‘‘(4) It is estimated that, at a minimum,
10,000,000 children have difficulty learning to read.
10 to 15 percent of those children eventually drop
182
out of high school, and only 2 percent complete a 4-
year program at an institution of higher education.
‘‘(5) It is estimated that the number of children
who are typically identified as poor readers can be
significantly reduced through the implementation of
early identification and prevention programs that
are based on scientifically based reading research.
‘‘(6) The report issued by the National Reading
Panel in 2000 found that the course of reading in-
struction that obtains maximum benefits for stu-
dents includes explicit and systematic instruction in
phonemic awareness, phonics, vocabulary develop-
ment, reading fluency, and reading comprehension
strategies.
‘‘SEC. 1202. PURPOSES.
‘‘The purposes of this subpart are as follows:
‘‘(1) To provide assistance to States and local
educational agencies in establishing reading pro-
grams for students in grades kindergarten through
3 that are based on scientifically based reading re-
search, in order to ensure that every student can
read at grade level or above by the end of the third
grade.
‘‘(2) To provide assistance to States and local
educational agencies in preparing teachers, through
183
professional development and other support, so the
teachers can identify specific reading barriers facing
their students and so the teachers have the tools to
effectively help their students learn to read.
‘‘(3) To provide assistance to States and local
educational agencies in selecting or developing rig-
orous diagnostic reading assessments that document
the effectiveness of this subpart in improving stu-
dents’ reading and in holding grant and subgrant re-
cipients accountable for their results.
‘‘(4) To provide assistance to States and local
educational agencies in selecting or developing effec-
tive instructional materials, programs, and strategies
to implement scientific research-based methods that
have been proven to prevent or remediate reading
failure within a State or States.
‘‘(5) To strengthen coordination among schools
and early literacy programs in order to improve
reading achievement for all children.
‘‘SEC. 1203. FORMULA GRANTS TO STATES; COMPETITIVE
SUBGRANTS TO LOCAL AGENCIES.
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORIZATION
TO
MAKE
GRANTS.—In
the case of each State that in accordance with sec-
tion 1204 submits to the Secretary an application
184
for a 5-year period, the Secretary, subject to the ap-
plication’s approval, shall make a grant to the State
for the uses specified in subsections (c) and (d). The
grant shall consist of the allotment determined for
the State under subsection (b).
‘‘(2) DURATION OF GRANTS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), a grant under this section shall be
awarded for a period of not more than 5 years.
‘‘(B) INTERIM REVIEW.—Not later than 60
days after the termination of the third year of
the grant period, each State receiving a grant
under this section shall submit a progress re-
port to the Secretary on the progress the State
and local educational agencies within the State
are making in reducing the number of students
reading below grade level. The progress report
shall be reviewed by the peer review panel con-
vened under section 1204(c)(2). After the sub-
mission of this report, if the Secretary deter-
mines that the State is not making significant
progress in meeting the purposes of this sub-
part, the Secretary may withhold from the
State, in whole or in part, further payments
under this section in accordance with section
185
455 of the General Education Provisions Act
(20 U.S.C. 1234d) or take such other action
authorized by law as the Secretary deems nec-
essary, including providing technical assistance
upon request of the State.
‘‘(b) DETERMINATION
OF
AMOUNT
OF
ALLOT-
MENTS.—
‘‘(1) RESERVATIONS FROM APPROPRIATIONS.—
From the amounts appropriated under section
1002(b)(1) to carry out this subpart for a fiscal
year, the Secretary—
‘‘(A) shall reserve 1⁄2 of 1 percent for allot-
ments for the Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern
Mariana Islands, to be distributed among these
outlying areas on the basis of their relative
need, as determined by the Secretary in accord-
ance with the purposes of this subpart;
‘‘(B) shall reserve 1⁄2 of 1 percent for the
Secretary of the Interior for programs under
this subpart in schools operated or funded by
the Bureau of Indian Affairs;
‘‘(C) may reserve not more than 1 percent
to carry out section 1207; and
186
‘‘(D) shall reserve $5,000,000 to carry sec-
tions 1208 and 1224.
‘‘(2) STATE
ALLOTMENTS.—From the total
amount made available under section 1002(b)(1) to
carry out this subpart for any fiscal year and not re-
served under paragraph (1), the Secretary shall allot
75 percent under this section among each of the 50
States, the District of Columbia, and the Common-
wealth of Puerto Rico.
‘‘(3) DETERMINATION
OF
STATE
ALLOTMENT
AMOUNTS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall allot the amount
made available under paragraph (2) for a fiscal
year among the States in proportion to the
number of children, aged 5 to 17, who reside
within the State from families with incomes
below the poverty line (as defined by the Office
of Management and Budget and revised annu-
ally in accordance with section 673(2) of the
Community Services Block Grant Act (42
U.S.C. 9902(2)) applicable to a family of the
size involved for the most recent fiscal year for
which satisfactory data are available, compared
187
to the number of such individuals who reside in
all such States for that fiscal year.
‘‘(B) EXCEPTION.—No State receiving an
allotment under subparagraph (A) may receive
less than 1⁄4 of 1 percent of the total amount
allotted under subparagraph (A).
‘‘(4) REALLOTMENT.—If any State does not
apply for an allotment under this section for any fis-
cal year, or if the State’s application is not ap-
proved, the Secretary shall reallot such amount to
the remaining States in accordance with paragraph
(3).
‘‘(d) SUBGRANTS TO LOCAL EDUCATIONAL AGEN-
CIES.—
‘‘(1) DISTRIBUTION OF SUBGRANTS.—The Sec-
retary may make a grant to a State under this sec-
tion only if the State agrees to expend at least 80
percent of the amount of the funds provided under
the grant for the purpose of making, in accordance
with this subsection, competitive subgrants to local
educational agencies.
‘‘(2) NOTICE.—A State receiving a grant under
this section shall provide notice to all local edu-
cational agencies in the State of the availability of
188
competitive subgrants under this subsection and of
the requirements for applying for the subgrants.
‘‘(3) LOCAL APPLICATIONS.—To be eligible to
receive a subgrant under this subsection, a local edu-
cational agency shall submit an application to the
State at such time, in such manner, and containing
such information as the State may reasonably re-
quire.
‘‘(4) PRIORITY
FOR
CERTAIN
LOCAL
AGEN-
CIES.—A State receiving a grant under this section
shall, in distributing subgrants to local educational
agencies, give priority to local educational agencies
that—
‘‘(A) have a high percentage of students in
grades kindergarten through 3 reading below
grade level;
‘‘(B) have jurisdiction over—
‘‘(i) a geographic area that includes
an area designated as an empowerment
zone, or an enterprise community, under
part I of subchapter U of chapter 1 of the
Internal Revenue Code of 1986; or
‘‘(ii) a significant number of schools
that are identified for school improvement
under section 1116(b); and
189
‘‘(C) are located in areas having the great-
est numbers of children aged 5 through 17 liv-
ing in families below the poverty line, as defined
by the Office of Management and Budget and
revised annually in accordance with section
673(2) of the Community Services Block Grant
Act (42 U.S.C. 9902(2)).
‘‘(5) STATE REQUIREMENT.—In distributing
subgrant funds to local educational agencies under
this subsection, a State shall provide funds in suffi-
cient concentrations to enable local educational
agencies to improve reading, as measured by scores
on rigorous diagnostic reading assessments.
‘‘(6) PRIORITY FOR CERTAIN SCHOOLS.—In dis-
tributing subgrant funds under this subsection, a
local educational agency shall give priority to pro-
viding the funds to schools that—
‘‘(A) have a high percentage of students in
grades kindergarten through 3 reading below
grade level;
‘‘(B) are identified for school improvement
under section 1116(b); and
‘‘(C) have the greatest numbers of children
aged 5 through 17 living in families below the
poverty line, as defined by the Office of Man-
190
agement and Budget and revised annually in
accordance with section 673(2) of the Commu-
nity Services Block Grant Act (42 U.S.C.
9902(2)).
‘‘(7) LOCAL USES OF FUNDS.—Subject to para-
graph (8), a local educational agency that receives a
subgrant under this subsection shall use the funds
provided under the subgrant to carry out the fol-
lowing activities:
‘‘(A) Selecting or developing, and admin-
istering, rigorous diagnostic reading assess-
ments.
‘‘(B) Selecting and implementing a pro-
gram or programs of reading instruction based
on scientifically based reading research that—
‘‘(i) includes the essential components
of reading instruction; and
‘‘(ii) provides such instruction to all
children, including children who—
‘‘(I) may have reading difficul-
ties;
‘‘(II) are at risk of being referred
to special education based on these
difficulties;
191
‘‘(III) have been evaluated under
section 614 of the Individuals with
Disabilities Education Act but, in ac-
cordance with section 614(b)(5) of
such Act, have not been identified as
being a child with a disability (as de-
fined in section 602 of such Act);
‘‘(IV) are being served under
such Act primarily due to being iden-
tified as being a child with a specific
learning disability (as defined in sec-
tion 602 of such Act) related to read-
ing;
‘‘(V) are deficient in their pho-
nemic awareness and phonics skills; or
‘‘(VI) are identified as having
limited English proficiency.
‘‘(C) Procuring instructional materials
based on scientifically based reading research.
‘‘(D) Providing professional development
for teachers of grades kindergarten through 3
that—
‘‘(i) will prepare these teachers in all
of the essential components of reading in-
struction;
192
‘‘(ii) shall include—
‘‘(I) 
information, 
instructional
materials, programs, strategies, and
approaches based on scientifically
based 
reading 
research, 
including
early intervention and reading remedi-
ation materials, programs, and ap-
proaches; and
‘‘(II) instruction in the use of
rigorous diagnostic reading assess-
ments and other procedures that ef-
fectively identify students who may be
at risk for reading failure or who are
having difficulty reading; and
‘‘(iii) shall be provided by eligible pro-
fessional development providers.
‘‘(E) Providing training to individuals who
volunteer to be reading tutors for a student on
the essential components of reading instruction
to enable such volunteers to support instruc-
tional practices of the student’s teacher.
‘‘(F) Providing instruction for parents of
children enrolled in a school selected to receive
assistance under this section, and for others
who volunteer to be reading tutors for such
193
children, in the instructional practices that are
based on scientifically based reading research
used by the applicant.
‘‘(G) Assisting parents, through the use of
materials, programs, strategies, and approaches
that are based on scientifically based reading
research, to help support their children’s read-
ing development.
‘‘(H) Collecting and summarizing data
from rigorous diagnostic reading assessments—
‘‘(i) to document the effectiveness of
this subpart in individual schools and in
the local educational agency as a whole;
and
‘‘(ii) to stimulate and accelerate im-
provement by identifying the schools that
produce the largest gains in reading
achievement.
‘‘(I) Reporting aggregated data described
in subparagraph (H) in a manner that protects
the privacy of individuals—
‘‘(i) to the State; and
‘‘(ii) to the public, including parents
and students, through such means as the
Internet and major print and broadcast
194
media outlets or other journal of public
record.
‘‘(8) LOCAL
PLANNING
AND
ADMINISTRA-
TION.—A local educational agency that receives a
subgrant under this subsection may use not more
than 2 percent of the funds provided under the
subgrant for planning and administration.
‘‘(e) OTHER STATE USES OF FUNDS.—
‘‘(1) PROFESSIONAL DEVELOPMENT.—
‘‘(A) IN GENERAL.—A State that receives
a grant under this section may expend not more
than 15 percent of the amount of the funds
provided under the grant to develop and imple-
ment a program of professional development for
teachers of kindergarten through third grades
that—
‘‘(i) will prepare these teachers in all
of the essential components of reading in-
struction;
‘‘(ii) shall include—
‘‘(I) information on interventions,
instructional materials, programs, and
approaches based on scientifically
based 
reading 
research, 
including
early intervention and reading remedi-
195
ation materials, programs, and ap-
proaches; and
‘‘(II) instruction in the use of
rigorous diagnostic reading assess-
ments and other procedures that ef-
fectively identify students who may be
at risk for reading failure or who are
having difficulty reading; and
‘‘(iii) shall be provided by eligible pro-
fessional development providers.
‘‘(B) FUNDS
NOT
USED
FOR
PROFES-
SIONAL
DEVELOPMENT.—Any portion of the
funds described in subparagraph (A) that a
State does not expend to develop and implement
a program described in such subparagraph shall
be expended for the purpose of making sub-
grants in accordance with subsection (c).
‘‘(2) 
OTHER
STATE-LEVEL
ACTIVITIES.—A
State that receives a grant under this section may
expend not more than 3 percent of the amount of
the funds provided under the grant for one or more
of the following authorized State activities:
‘‘(A) Assisting local educational agencies in
accomplishing the tasks required to design and
196
implement a program under this subpart,
including—
‘‘(i) selecting and implementing a pro-
gram or programs of reading instruction
based on scientifically based reading re-
search;
‘‘(ii) selecting or developing rigorous
diagnostic reading assessments; and
‘‘(iii) identifying eligible professional
development providers to help prepare
reading teachers to teach students using
the programs and assessments described in
clauses (i) and (ii);
‘‘(B) Providing to students in kindergarten
through third grades through alternative pro-
viders reading instruction that includes—
‘‘(i) rigorous diagnostic reading as-
sessments; and
‘‘(ii) as need is indicated by such as-
sessments, instruction based on scientif-
ically based reading research that includes
the essential components of reading in-
struction.
‘‘(3) PLANNING, ADMINISTRATION, AND
RE-
PORTING.—
197
‘‘(A) IN GENERAL.—A State that receives
a grant under this section shall expend not
more than 2 percent of the amount of the funds
provided under the grant for the activities de-
scribed in this paragraph.
‘‘(B) PLANNING AND ADMINISTRATION.—A
State that receives a grant under this section
may expend funds described in subparagraph
(A) for planning and administration relating to
the State uses of funds authorized under this
subpart, including the following:
‘‘(i) Administering the distribution of
competitive subgrants to local educational
agencies under this section and sections
1205 and 1206.
‘‘(ii) Collecting and summarizing data
from 
rigorous 
diagnostic 
reading
assessments—
‘‘(I) to document the effective-
ness of this subpart in individual local
educational agencies and in the State
as a whole; and
‘‘(II) to stimulate and accelerate
improvement by identifying the local
198
educational agencies that produce the
largest gains in reading achievement.
‘‘(C) ANNUAL REPORTING.—
‘‘(i) IN GENERAL.—A State that re-
ceives a grant under this section shall ex-
pend funds provided under the grant to
provide the Secretary annually with a re-
port on the implementation of this subpart.
The report shall include evidence that the
State is fulfilling its obligations under this
subpart. The report shall also include the
data required under subsection (c)(7)(I) to
be reported to the State by local edu-
cational agencies. The report shall include
a specific identification of those local edu-
cational agencies that report the largest
gains in reading achievement.
‘‘(ii) PRIVACY PROTECTION.—Data in
the report shall be set forth in a manner
that protects the privacy of individuals.
‘‘(iii) 
CONTRACT.—To 
the 
extent
practicable, a State shall enter into a con-
tract with an entity that conducts scientif-
ically based reading research, under which
contract the entity will produce the reports
199
required to be submitted under this sub-
paragraph.
‘‘SEC. 1204. STATE FORMULA GRANT APPLICATIONS.
‘‘(a) IN GENERAL.—A State that desires to receive
a grant under section 1203 shall submit an application
to the Secretary at such time and in such form as the
Secretary may require. The application shall contain the
information described in subsection (b).
‘‘(b) CONTENTS.—An application under this section
shall contain the following:
‘‘(1) An assurance that the Governor of the
State, in consultation with the State educational
agency, has established a reading partnership de-
scribed in subsection (d), and a description of how
such partnership—
‘‘(A) coordinated the development of the
application; and
‘‘(B)) will assist in the oversight and eval-
uation of the State’s activities under this sub-
part.
‘‘(2) An assurance that the State will submit to
the Secretary, at such time and in such manner as
the Secretary may reasonably require, a State plan
containing a description of a process—
200
‘‘(A) to evaluate programs carried out by
local educational agencies under this subpart;
‘‘(B) to assist local educational agencies in
identifying rigorous diagnostic reading assess-
ments; and
‘‘(C) to assist local educational agencies in
identifying interventions, and instructional ma-
terials, programs and approaches, based on sci-
entifically based reading research, including
early intervention and reading remediation ma-
terials, programs and approaches.
‘‘(c) APPROVAL OF APPLICATIONS.—
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the peer review panel convened under para-
graph (2), shall approve an application of a State
under this section if such application meets the re-
quirements of this section.
‘‘(2) PEER REVIEW.—
‘‘(A) IN GENERAL.—The Secretary, in con-
sultation with the National Institute for Lit-
eracy, shall convene a panel to evaluate applica-
tions under this section. At a minimum, the
panel shall include—
‘‘(i) 3 individuals selected by the Sec-
retary;
201
‘‘(ii) 3 individuals selected by the Na-
tional Institute for Literacy;
‘‘(iii) 3 individuals selected by the Na-
tional Research Council of the National
Academy of Sciences; and
‘‘(iv) 3 individuals selected by the Na-
tional Institute of Child Health and
Human Development.
‘‘(B) EXPERTS.—The panel shall include
experts who are competent, by virtue of their
training, expertise, or experience, to evaluate
applications under this section, and experts who
provide professional development to teachers of
reading to children and adults, and experts who
provide professional development to other in-
structional staff, based on scientifically based
reading research.
‘‘(C) 
RECOMMENDATIONS.—The 
panel
shall recommend grant applications from States
under this section to the Secretary for funding
or for disapproval.
‘‘(d) READING PARTNERSHIPS.—
‘‘(1) IN GENERAL.—In order for a State to re-
ceive a grant under section 1203, the Governor of
the State, in consultation with the State educational
202
agency, shall establish a reading partnership. The
partnership shall consist of the participants de-
scribed in paragraphs (2), (3), and (4).
‘‘(2) AUTOMATIC PARTICIPANTS.—The reading
partnership shall include the following participants:
‘‘(A) The Governor of the State.
‘‘(B) The chief State school officer.
‘‘(C) The chairman and the ranking mem-
ber of each committee of the State legislature
that is responsible for elementary education.
‘‘(3) APPOINTED BY GOVERNOR.—The following
members of the reading partnership shall be ap-
pointed by the Governor:
‘‘(A) Parents of public, private, or home
schooled students who are knowledgeable about
the essential components of reading instruction.
‘‘(B) A representative of an institution of
higher education operating a program of teach-
er preparation in which prospective reading
teachers are being taught the essential compo-
nents of reading instruction.
‘‘(C) A representative of a literacy volun-
teer organization where the essential compo-
nents of reading instruction are being taught to
students or adults.
203
‘‘(D) A representative of a school.
‘‘(E) A representative of a public library.
‘‘(4) APPOINTED BY CHIEF SCHOOL OFFICER.—
The following members of the reading partnership
shall be appointed by the chief State school officer:
‘‘(A) A teacher and reading specialist who
successfully teaches students to read using the
essential components of reading instruction.
‘‘(B) Representatives of at least 2 local
educational agencies where the essential compo-
nents of reading instruction are being taught.
‘‘(C) A representative of a community-
based organization where the essential compo-
nents of reading instruction are being taught.
‘‘(D) State directors of appropriate Fed-
eral or State programs where the essential com-
ponents of reading instruction are being taught,
especially in programs under part A and the In-
dividuals with Disabilities Education Act.
‘‘SEC. 1205. SUPPLEMENTAL GRANTS TO STATES; COMPETI-
TIVE SUBGRANTS TO LOCAL AGENCIES.
‘‘(a) IN GENERAL.—In the case of a State that in
accordance with subsection (c) submits to the Secretary
an application for fiscal year 2002 or 2003, the Secretary
may make a grant for the year to the State for the use
204
specified in subsection (d). The grant shall consist of the
allotment determined for the State under subsection (b).
‘‘(b) DETERMINATION
OF
AMOUNT
OF
ALLOT-
MENT.—
‘‘(1) IN
GENERAL.—From the total amount
made available under section 1002(b)(1) to carry out
this subpart for any fiscal year referred to in sub-
section (a) that is not reserved under section
1203(b)(1), the Secretary may allot 25 percent
under this section among each of the 50 States, the
District of Columbia, and the Commonwealth of
Puerto Rico.
‘‘(2) STATE
ALLOTMENTS.—In carrying out
paragraph (1), the Secretary may allot such funds
according to such criteria as the Secretary considers
appropriate and consistent with the purposes of this
subpart and based on the recommendations of the
peer 
review 
panel 
convened 
under 
section
1204(c)(2).
‘‘(c) STATE APPLICATIONS.—
‘‘(1) IN GENERAL.—A State that desires to re-
ceive a grant under this section shall submit an ap-
plication to the Secretary at such time, in such
form, and containing such information as the Sec-
retary may require.
205
‘‘(2) PEER
REVIEW.—The peer review panel
convened under section 1204(c)(2) shall evaluate
grant applications from States under this section.
The panel shall recommend such applications to the
Secretary for funding or for disapproval.
‘‘(d) SUBGRANTS TO LOCAL EDUCATIONAL AGEN-
CIES.—
‘‘(1) IN GENERAL.—The Secretary may make a
grant to a State under this section only if the State
agrees to expend 100 percent of the amount of the
funds provided under the grant for the purpose of
making competitive subgrants in accordance with
this subsection to local educational agencies.
‘‘(2) NOTICE.—A State receiving a grant under
this section shall provide notice to all local edu-
cational agencies in the State of the availability of
competitive subgrants under this subsection and of
the requirements for applying for the subgrants.
‘‘(3) LOCAL APPLICATIONS.—To be eligible to
receive a subgrant under this subsection, a local edu-
cational agency shall submit an application to the
State at such time, in such manner, and containing
such information as the State may reasonably re-
quire.
206
‘‘(4) DISTRIBUTION.—A State shall distribute
funds under this section according to such criteria
as the State considers appropriate and consistent
with the purposes of this subpart giving special at-
tention to those local educational agencies that are
making a good faith effort to improve reading skills
consistent with this subpart.
‘‘(5) LOCAL
USES
OF
FUNDS.—A local edu-
cational agency that receives a subgrant under this
subsection—
‘‘(A) shall use the funds provided under
the subgrant to carry out the activities de-
scribed in subparagraphs (A) through (D) of
section 1203(c)(7); and
‘‘(B) may use such funds to carry out the
activities 
described 
in 
subparagraphs 
(E)
through (H) of such section.
‘‘(e) SUNSET.—This section is repealed on September
30, 2003.
‘‘SEC. 1206. PERFORMANCE GRANTS TO STATES; COMPETI-
TIVE SUBGRANTS TO LOCAL AGENCIES.
‘‘(a) IN GENERAL.—In the case of a State that in
accordance with subsection (c) submits to the Secretary
an application for any fiscal year after fiscal year 2003,
the Secretary may make a grant for the year to the State
207
for the use specified in subsection (d). The grant shall con-
sist of the allotment determined for the State under sub-
section (b).
‘‘(b) DETERMINATION
OF
AMOUNT
OF
ALLOT-
MENT.—
‘‘(1) IN
GENERAL.—From the total amount
made available under section 1002(b)(1) to carry out
this subpart for any fiscal year referred to in sub-
section (a) that is not reserved under section
1203(b)(1), the Secretary may allot 25 percent
under this section among each of the 50 States, the
District of Columbia, and the Commonwealth of
Puerto Rico.
‘‘(2) STATE ALLOTMENTS.—
‘‘(A) IN GENERAL.—In carrying out para-
graph (1), the Secretary shall allot such funds
to those States that demonstrate the most ef-
fective implementation of this subpart, as deter-
mined by the peer review panel convened under
section 1204(c)(2) based upon the application
contents described in subsection (c)(3).
‘‘(c) STATE APPLICATIONS.—
‘‘(1) IN GENERAL.—A State that desires to re-
ceive a grant under this section shall submit an ap-
208
plication to the Secretary at such time and in such
form as the Secretary may require.
‘‘(2) PEER
REVIEW.—The peer review panel
convened under section 1204(c)(2) shall evaluate
grant applications from States under this section.
The panel shall recommend such applications to the
Secretary for funding or for disapproval.
‘‘(3) APPLICATION
CONTENTS.—A State that
desires to receive a grant under this section shall in-
clude in its application the following:
‘‘(A) Evidence that the State has carried
out its obligations under this subpart.
‘‘(B) Evidence that the State has increased
significantly the percentage of students reading
at grade level or above by the end of the third
grade.
‘‘(C) Evidence that the State has been suc-
cessful in reducing the reading deficit in terms
of the percentage of students in ethnic, racial,
and low-income populations who are reading at
grade level or above by the end of the third
grade.
‘‘(D) A description of the criteria the State
intends to use in distributing subgrants to local
209
educational agencies under this section to con-
tinue or expand activities under this subpart.
‘‘(E) Any additional evidence that dem-
onstrates success in the implementation of this
subpart.
‘‘(d) SUBGRANTS TO LOCAL EDUCATIONAL AGEN-
CIES.—
‘‘(1) IN GENERAL.—The Secretary may make a
grant to a State under this section only if the State
agrees to expend 100 percent of the amount of the
funds provided under the grant for the purpose of
making competitive subgrants in accordance with
this subsection to local educational agencies.
‘‘(2) NOTICE.—A State receiving a grant under
this section shall provide notice to all local edu-
cational agencies in the State of the availability of
competitive subgrants under this subsection and of
the requirements for applying for the subgrants.
‘‘(3) APPLICATION.—To be eligible to receive a
subgrant under this subsection, a local educational
agency shall submit an application to the State at
such time, in such manner, and containing such in-
formation as the State may reasonably require.
210
‘‘(4) DISTRIBUTION.—A State shall distribute
funds under this section through a competitive proc-
ess based on the following criteria:
‘‘(A) Evidence that a local educational
agency has carried out its obligations under this
subpart.
‘‘(B) Evidence that a local educational
agency has increased significantly the percent-
age of students reading at grade level or above
by the end of the third grade.
‘‘(C) Evidence that a local educational
agency has been successful in reducing the
reading deficit in terms of the percentage of
students in ethnic, racial, and low-income popu-
lations who are reading at grade level or above
by the end of the third grade.
‘‘(D) The description in such application of
how such funds will be used to support the con-
tinuation or expansion of the agency’s programs
under this subpart.
‘‘(E) Evidence that the local educational
agency will work with other eligible local edu-
cational agencies in the State that have not re-
ceived a subgrant under this subsection to as-
211
sist such nonreceiving agencies in increasing the
reading achievement of students.
‘‘(F) Any additional evidence in a local
educational agency’s application under para-
graph (3) that demonstrates success in the im-
plementation of this subpart.
‘‘(5) LOCAL
USES
OF
FUNDS.—A local edu-
cational agency that receives a subgrant under this
subsection—
‘‘(A) shall use the funds provided under
the subgrant to carry out the activities de-
scribed in subparagraphs (A) through (D) of
section 1203(c)(7); and
‘‘(B) may use such funds to carry out the
activities 
described 
in 
subparagraphs 
(E)
through (H) of such section.
‘‘SEC. 1207. NATIONAL ACTIVITIES.
‘‘From funds reserved under section 1203(b)(1)(C),
the Secretary—
‘‘(1) through grants or contracts, shall conduct
an evaluation of the program under this subpart
using criteria recommended by the peer review panel
convened under section 1204(c)(2); and
‘‘(2) may provide technical assistance in achiev-
ing the purposes of this subpart to States, local edu-
212
cational agencies, and schools requesting such assist-
ance.
‘‘SEC. 1208. INFORMATION DISSEMINATION.
‘‘(a) IN GENERAL.—From funds reserved under sec-
tion 1203(b)(1)(D), the National Institute for Literacy,
in collaboration with the Secretary of Education, the Sec-
retary of Health and Human Services, and the Director
of the National Institute for Child Health and Human
Development—
‘‘(1) shall disseminate information on scientif-
ically based reading research pertaining to children,
youth, and adults;
‘‘(2) shall identify and disseminate information
about schools, local educational agencies, and States
that effectively developed and implemented reading
programs that meet the requirements of this sub-
part, including those effective States, local edu-
cational agencies, and schools identified through the
evaluation and peer review provisions of this sub-
part; and
‘‘(3) shall support the continued identification
and dissemination of information on programs that
contain the essential components of reading instruc-
tion as supported by scientifically based reading re-
search, that can lead to improved reading outcomes
213
for children, youth, and adults through evidence-
based assessments of the scientific research lit-
erature.
‘‘(b) DISSEMINATION.—At a minimum, the National
Institute for Literacy shall disseminate such information
to recipients of Federal financial assistance under part A
of this title, part A of title III, the Head Start Act, the
Individuals with Disabilities Education Act, and the Adult
Education and Family Literacy Act. In carrying out this
section, the National Institute for Literacy shall, to the
extent practicable, utilize existing information and dis-
semination networks developed and maintained through
other public and private entities.
‘‘(c) USE OF FUNDS.—The National Institute for
Literacy may use not more than 5 percent of the funds
reserved under section 1203(b)(1)(D) for administrative
purposes directly related to carrying out the activities au-
thorized by this section.
‘‘SEC. 1209. DEFINITIONS.
‘‘For purposes of this subpart:
‘‘(1) ELIGIBLE PROFESSIONAL DEVELOPMENT
PROVIDER.—The term ‘eligible professional develop-
ment provider’ means a provider of professional de-
velopment in reading instruction to teachers that is
based on scientifically based reading research.
214
‘‘(2) ESSENTIAL COMPONENTS OF READING IN-
STRUCTION.—The term ‘essential components of
reading instruction’ means explicit and systematic
instruction in—
‘‘(A) phonemic awareness;
‘‘(B) phonics;
‘‘(C) vocabulary development;
‘‘(D) oral reading fluency; and
‘‘(E) reading comprehension strategies.
‘‘(3) INSTRUCTIONAL
STAFF.—The term ‘in-
structional staff’—
‘‘(A) means individuals who have responsi-
bility for teaching children to read; and
‘‘(B) includes principals, teachers, super-
visors of instruction, librarians, library school
media specialists, teachers of academic subjects
other than reading, and other individuals who
have responsibility for assisting children to
learn to read.
‘‘(4) READING.—The term ‘reading’ means a
complex system of deriving meaning from print that
requires all of the following:
‘‘(A) The skills and knowledge to under-
stand how phonemes, or speech sounds, are
connected to print.
215
‘‘(B) The ability to decode unfamiliar
words.
‘‘(C) The ability to read fluently.
‘‘(D) Sufficient background information
and vocabulary to foster reading comprehen-
sion.
‘‘(E) The development of appropriate ac-
tive strategies to construct meaning from print.
‘‘(F) The development and maintenance of
a motivation to read.
‘‘(5) RIGOROUS DIAGNOSTIC READING ASSESS-
MENTS.—The term ‘rigorous diagnostic reading as-
sessments’ means diagnostic reading assessments
that—
‘‘(A) are valid, reliable, and based on sci-
entifically based reading research;
‘‘(B) measure progress in developing pho-
nemic awareness and phonics skills, vocabulary,
reading fluency, and reading comprehension;
and
‘‘(C) identify students who may be at risk
for reading failure or who are having difficulty
reading.
216
‘‘(6) SCIENTIFICALLY
BASED
READING
RE-
SEARCH.—The term ‘scientifically based reading
research’—
‘‘(A) means the application of rigorous,
systematic, and objective procedures to obtain
valid knowledge relevant to reading develop-
ment, reading instruction, and reading difficul-
ties; and
‘‘(B) shall include research that—
‘‘(i) employs systematic, empirical
methods that draw on observation or ex-
periment;
‘‘(ii) involves rigorous data analyses
that are adequate to test the stated
hypotheses and justify the general conclu-
sions drawn;
‘‘(iii) relies on measurements or obser-
vational methods that provide valid data
across evaluators and observers and across
multiple measurements and observations;
and
‘‘(iv) has been accepted by a peer-re-
viewed journal or approved by a panel of
independent experts through a comparably
rigorous, objective, and scientific review.
217
‘‘Subpart 2—Early Reading First
‘‘SEC. 1221. PURPOSES.
‘‘The purposes of this subpart are—
‘‘(1) to improve prereading skills in children
aged 3 through 5, particularly those children from
low-income families, in high-quality oral language
and literature-rich environments;
‘‘(2) to provide professional development for
early childhood teachers that prepares them with sci-
entific research-based knowledge of early reading de-
velopment to assist in developing the children’s—
‘‘(A) automatic recognition of the letters of
the alphabet;
‘‘(B) understanding that spoken words are
made up of small segments of speech sounds
and that certain letters regularly represent such
speech sounds; and
‘‘(C) spoken vocabulary and oral com-
prehension abilities;
‘‘(3) to identify and provide scientific research-
based prereading language and literacy activities and
instructional materials that can be used to assist in
the development of prereading skills in children; and
‘‘(4) to integrate such scientific research-based
instructional materials and literacy activities with
218
existing preschool programs, Head Start centers,
and family literacy services.
‘‘SEC. 1222. LOCAL EARLY READING FIRST GRANTS.
‘‘(a) PROGRAM AUTHORIZED.—From amounts ap-
propriated under section 1002(b)(2), the Secretary shall
make awards, on a competitive basis, for periods of not
more than 4 years, to eligible applicants to enable such
applicants to carry out activities that are consistent with
the purposes of this subpart.
‘‘(b) DEFINITION OF ELIGIBLE APPLICANT.—In this
subpart, the term ‘eligible applicant’ means—
‘‘(1) a local educational agency;
‘‘(2) one or more public or private organiza-
tions, acting on behalf of one or more programs that
serve preschool age children (such as a program at
a Head Start center or a family literacy program),
which organizations shall be located in a community
served by a local educational agency; or
‘‘(3) one or more local educational agencies in
collaboration with one or more organizations de-
scribed in paragraph (2).
‘‘(c) APPLICATIONS.—An eligible applicant that de-
sires to receive a grant under this section shall submit an
application to the Secretary which shall include a descrip-
tion of—
219
‘‘(1) the programs to be served by the proposed
project, including general demographic and socio-
economic information on the communities in which
the proposed project will be administered;
‘‘(2) how the proposed project will enhance the
school readiness of young children aged 3 through 5
in high-quality oral language and literature-rich en-
vironments;
‘‘(3) how the proposed project will provide early
childhood teachers with scientific research-based
knowledge of early reading development and assist
such teachers in developing the children’s prereading
skills;
‘‘(4) how the proposed project will provide serv-
ices and utilize instructional materials that are
based on scientifically based reading research on
early language acquisition, prereading activities, and
the development of spoken vocabulary skills;
‘‘(5) how the proposed project will integrate
such instructional materials and literacy activities
with existing preschool programs and family literacy
services;
‘‘(6) how the proposed project will help staff in
the programs to meet the diverse needs of children
in the community, including children with limited
220
English proficiency and children with learning dis-
abilities;
‘‘(7) how the proposed project will help chil-
dren, particularly children experiencing difficulty
with spoken language, prereading, and early reading
skills, to make the transition from preschool to for-
mal classroom instruction in school;
‘‘(8) how the activities conducted under this
subpart will be coordinated with the eligible appli-
cant’s activities under subpart 1, if the applicant has
received a subgrant under such subpart, at the kin-
dergarten through third grade levels;
‘‘(9) how the proposed project will evaluate the
success of the activities supported under this sub-
part in enhancing the early language and reading
development of children served by the project; and
‘‘(10) such other information as the Secretary
may require.
‘‘(d) APPROVAL OF LOCAL APPLICATIONS.—The Sec-
retary shall select applicants for funding under this sub-
part on the basis of the quality of the applications and
based on the recommendations of the peer review panel
convened under section 1204(c)(2).
‘‘(e) LOCAL USES OF FUNDS.—A local educational
agency that receives a grant under this subpart shall use
221
the funds provided under the grant to carry out the fol-
lowing activities:
‘‘(1) To provide children aged 3 through 5 with
high-quality oral language and literature-rich envi-
ronments in which to acquire prereading skills.
‘‘(2) To provide professional development for
early childhood teachers that prepares them with sci-
entific research-based knowledge of early reading de-
velopment to assist in developing the children’s—
‘‘(A) automatic recognition of the letters of
the alphabet;
‘‘(B) understanding that spoken words are
made up of small segments of speech sounds
and that certain letters regularly represent such
speech sounds; and
‘‘(C) spoken vocabulary and oral com-
prehension abilities.
‘‘(3) To identify and provide scientific research-
based prereading language and literacy activities and
instructional materials for use in developing the
children’s—
‘‘(A) automatic recognition of the letters of
the alphabet;
‘‘(B) understanding that spoken words are
made up of small segments of speech sounds
222
and that certain letters regularly represent such
speech sounds; and
‘‘(C) spoken vocabulary and oral com-
prehension abilities.
‘‘(4) To integrate such instructional materials and lit-
eracy activities with existing Head Start centers, preschool
programs, and family literacy services.
‘‘(f) AWARD AMOUNTS.—The Secretary may estab-
lish a maximum award amount, or ranges of award
amounts, for grants under this subpart.
‘‘SEC. 1223. FEDERAL ADMINISTRATION.
‘‘The Secretary shall consult with the Secretary of
Health and Human Services in order to coordinate the ac-
tivities undertaken under this subpart with early childhood
programs administered by the Department of Health and
Human Services.
‘‘SEC. 1224. INFORMATION DISSEMINATION.
‘‘From funds reserved under section 1203(b)(1)(D),
the National Institute for Literacy, in consultation with
the Secretary, shall disseminate information regarding
projects assisted under this subpart that have proven ef-
fective.
‘‘SEC. 1225. REPORTING REQUIREMENTS.
‘‘Each eligible applicant receiving a grant under this
subpart shall report annually to the Secretary regarding
223
the eligible applicant’s progress in addressing the purposes
of this subpart.
‘‘SEC. 1226. EVALUATIONS.
‘‘From the total amount appropriated under section
1002(b)(2) for the period beginning October 1, 2002, and
ending September 30, 2006, the Secretary shall reserve
not more than $1,000,000 to conduct an independent eval-
uation of the effectiveness of this subpart.
‘‘SEC. 1227. ADDITIONAL RESEARCH.
‘‘From the amount appropriated under section
1002(b)(2) for each of the fiscal years 2002 through 2006,
the Secretary shall reserve not more than $3,000,000 to
conduct, in consultation with the National Institute for
Child Health and Human Development, the National In-
stitute for Literacy, and the Department of Health and
Human Services, additional research on language and lit-
eracy development for children aged 3 through 5.’’.
SEC. 112. AMENDMENTS TO EVEN START.
Part B of title I (20 U.S.C. 6361 et seq.), as amend-
ed by section 111, is further amended—
(1) by inserting before section 1231 (as so re-
designated by section 111) the following:
224
‘‘Subpart 3—William F. Goodling Even Start Family
Literacy Programs’’;
(2) in each of sections 1231 through 1242 (as
so redesignated by section 111)—
(A) by striking ‘‘this part’’ each place such
term appears and inserting ‘‘this subpart’’; and
(B) by striking ‘‘1002(b)’’ each place such
term appears and inserting ‘‘1002(b)(3)’’;
(3) in section 1231(4), by striking ‘‘2252)’’ and
inserting ‘‘1209)’’;
(4) in section 1232—
(A) in subsection (b)—
(i) in paragraph (1)(A), by striking
‘‘1209;’’ and inserting ‘‘1239;’’; and
(ii) in paragraph (2), by striking
‘‘1211(b)’’ each place such term appears
and inserting ‘‘1241(b)’’; and
(B) in subsection (c)—
(i) by amending paragraph (2)(C) to
read as follows:
‘‘(C) COORDINATION WITH SUBPART 1.—
The consortium shall coordinate its activities
with the activities of the reading partnership
for the State established under section 1204(d),
if the State receives a grant under section
1203.’’; and
225
(ii) in paragraph (3), by striking
‘‘2252).’’ and inserting ‘‘1209).’’;
(5) in section 1233—
(A) by striking ‘‘1202(d)(1)’’ each place
such term appears and inserting ‘‘1232(d)(1)’’;
and
(B) by striking ‘‘1210.’’ and inserting
‘‘1240.’’;
(6) in section 1234—
(A) in subsection (b)—
(i) in paragraph (1)(A), by moving
the margins of clauses (v) and (vi) 2 ems
to the right; and
(ii) in paragraph (3), by striking
‘‘1202(a)(1)(C)’’ 
and 
inserting
‘‘1232(a)(1)(C)’’; and
(B) in subsection (c)—
(i) in paragraph (1)—
(I) by striking ‘‘1203(a),’’ and
inserting ‘‘1233(a),’’; and
(II) by striking ‘‘1203(b)’’ and
inserting ‘‘1233(b)’’; and
(ii) in paragraph (2), by striking
‘‘1210.’’ and inserting ‘‘1240.’’;
(7) in section 1235—
226
(A) in paragraph (10), by striking ‘‘2252)’’
and inserting ‘‘1209)’’;
(B) 
in 
paragraph 
(12), 
by 
striking
‘‘2252),’’ and inserting ‘‘1209),’’; and
(C) in paragraph (15), by striking ‘‘pro-
gram.’’ and inserting ‘‘program to be used for
program improvement.’’;
(8) in section 1237—
(A) in subsection (c)(1)—
(i) in subparagraph (B), by striking
‘‘1205;’’ and inserting ‘‘1235;’’; and
(ii) in subparagraph (F), by striking
‘‘14306;’’ and inserting ‘‘8306;’’; and
(B) in subsection (d), by striking ‘‘14302.’’
and inserting ‘‘8302.’’;
(9) in section 1238—
(A) in subsection (a)(1)—
(i) in subparagraph (A)(ii), by strik-
ing ‘‘1205;’’ and inserting ‘‘1235;’’; and
(ii) in subparagraph (F), by striking
‘‘1204(b);’’ and inserting ‘‘1234(b);’’; and
(B) in subsection (b)—
(i) in paragraph (3)—
(I) by striking ‘‘1207(c)(1)(A)’’
and inserting ‘‘1237(c)(1)(A)’’; and
227
(II) by striking ‘‘1210.’’ and in-
serting ‘‘1240.’’;
(ii) in paragraph (4), by striking
‘‘1210,’’ and inserting ‘‘1240,’’; and
(iii) in paragraph (5)(B), by striking
‘‘1204(b).’’ and inserting ‘‘1234(b).’’;
(10) in section 1239—
(A) by striking ‘‘1202(b)(1),’’ and insert-
ing ‘‘1232(b)(1),’’; and
(B) by striking ‘‘1205(10)’’ and inserting
‘‘1235(10)’’; and
(11) in section 1241—
(A) in subsection (b)(1)—
(i) by striking ‘‘1202(b)(2),’’ and in-
serting ‘‘1232(b)(2),’’; and
(ii) by striking ‘‘2252);’’ and inserting
‘‘1209);’’; and
(B) in subsection (c), by striking ‘‘2258,’’
and inserting ‘‘1208,’’.
PART C—EDUCATION OF MIGRATORY CHILDREN
SEC. 121. STATE ALLOCATIONS.
Section 1303 (20 U.S.C. 6393) is amended—
(1) by amending subsection (a) to read as fol-
lows:
‘‘(a) STATE ALLOCATIONS.—
228
‘‘(1) FISCAL YEAR 2002.—For fiscal year 2002,
each State (other than the Commonwealth of Puerto
Rico) is entitled to receive under this part an
amount equal to—
‘‘(A) the sum of the estimated number of
migratory children aged three through 21 who
reside in the State full time and the full-time
equivalent of the estimated number of migra-
tory children aged three through 21 who reside
in the State part time, as determined in accord-
ance with subsection (e); multiplied by
‘‘(B) 40 percent of the average per-pupil
expenditure in the State, except that the
amount determined under this paragraph shall
not be less than 32 percent, nor more than 48
percent, of the average expenditure per pupil in
the United States.
‘‘(2) SUBSEQUENT YEARS.—
‘‘(A) BASE AMOUNT.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in subsection (b) and clause (ii), each
State (other than the Commonwealth of
Puerto Rico) is entitled to receive under
this part, for fiscal year 2003 and suc-
ceeding fiscal years, an amount equal to—
229
‘‘(I) the amount that such State
received under this part for fiscal year
2002; plus
‘‘(II) the amount allocated to the
State under subparagraph (B).
‘‘(ii) NONPARTICIPATING STATES.—In
the case of a State (other than the Com-
monwealth of Puerto Rico) that did not re-
ceive any funds for fiscal year 2002 under
this part, the State shall receive, for fiscal
year 2003 and succeeding fiscal years, an
amount equal to—
‘‘(I) the amount that such State
would have received under this part
for fiscal year 2002 if its application
under section 1304 for the year had
been approved; plus
‘‘(II) the amount allocated to the
State under subparagraph (B).
‘‘(B) 
ALLOCATION
OF
ADDITIONAL
AMOUNT.—For fiscal year 2003 and succeeding
fiscal years, the amount (if any) by which the
funds appropriated to carry out this part for
the year exceed such funds for fiscal year 2002
shall be allocated to a State (other than the
230
Commonwealth of Puerto Rico) so that the
State receives an amount equal to—
‘‘(i) the sum of—
‘‘(I) the number of identified eli-
gible migratory children, aged 3
through 21, residing in the State dur-
ing the previous year; and
‘‘(II) the number of identified eli-
gible migratory children, aged 3
through 21, who received services
under this part in summer or interses-
sion programs provided by the State
during such year; multiplied by
‘‘(ii) 40 percent of the average per-
pupil expenditure in the State, except that
the amount determined under this clause
may not be less than 32 percent, or more
than 48 percent, of the average per-pupil
expenditure in the United States.’’;
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b) ALLOCATION TO PUERTO RICO.—
‘‘(1) IN GENERAL.—For each fiscal year, the
grant which the Commonwealth of Puerto Rico shall
be eligible to receive under this part shall be the