• Requires annual state tests in reading and math for every child in grades three through eight beginning in 2004-05 school year. Schools whose scores fail to improve two years in a row could receive more federal aid. If scores still fail to improve, low-income students can receive funding for tutoring or transportation to another public school. A school in which scores don’t improve over six years could be restaffed. In schools already considered poor performers, parents could receive tutoring or transportation funds as early as this fall.

• Requires schools to raise all students to reading and math proficiency in the next 12 years. Schools must also close gaps in scores between wealthy and poor students and white and minority students.

• Allows churches or other religious groups to provide tutoring and after-school programs.

• Requires states to ensure within four years that all teachers are qualified to teach in their subject area. States could require teachers to pass subject tests or major in their field in college.

• Allows school districts to spend federal teacher-quality funds on training, hiring, or higher salaries for teachers.

• Provides aid to build new charter schools and help existing ones.

• Requires schools to develop periodic “report cards” showing a school’s standardized test scores compared to others locally and statewide.

• Authorizes nearly $1 billion per year for the next five years to improve reading—three times as much as last year—with a goal of making sure every student can read by third grade.

• Consolidates the Technology Literacy Challenge Fund and Technology Innovation Challenge Grant programs into a single technology block-grant program. States would administer 50 percent of the funds to local school districts competitively and 50 percent according to Title I formula.

• Allows 50 states to use a small portion of their federal funds as they wish. A pilot program further frees seven states and 150 school districts from most restrictions on spending.

• Allows districts to transfer up to 50 percent of funds from particular programs—including teacher quality, safe and drug-free schools, and technology—to other programs. Districts would be able to move funds for any educational purpose but would be required to fulfill each program responsibility outlined in their plan that is submitted to the state.

• Targets Title I funds, slated for low-income students, to the poorest students.

• Requires schools to test students with limited English skills to ensure they are proficient in English after three consecutive years of attending school in the United States.

• Strips federal funding from any school district that discriminates against the Boy Scouts or similar groups that bar homosexuals.