§ Funding - The agreement authorizes approximately $26.3 Billion in FY 2002 for federal elementary and secondary education programs;

§ Testing - Would require states using federal education dollars to demonstrate results through annual reading and math assessments for students in grades 3 through 8. The conference report would authorize $400 million to help states design and administer tests;

§ Flexibility - Every local school district in America would immediately receive the freedom to transfer up to 50 percent of the federal dollars they receive among an assortment of programs. Local school districts would not need to obtain permission before transferring funds;

§ Struggling Schools/Student Transfers - Provides financial and technical help to low-performing schools. The agreement requires districts to implement certain corrective actions to improve the performance of low-performing schools. If a school does not make adequate progress after one year, it would have to allow students to transfer to other public schools and the school would have to pay the students' transportation costs. Would allow federal Title I funds (approximately $500 to $1,000 per child) to be used to provide supplemental educational services - including tutoring, after school services, and summer school programs - for children in failing schools. Faith-based providers would be among those eligible to be selected by parents to assist students, establishing an important precedent on the road to equal educational opportunity;

§ Streamlining Programs - Would consolidate and streamline programs and target resources to existing programs that serve poor students. Would reduce the overall number of Elementary and Secondary Education Act (ESEA) programs from 55 to 45;

§ Reauthorization of Education Programs - The agreement also reauthorizes most federal elementary and secondary education programs (including the Title I compensatory education, bilingual education, teacher training and safe-school programs) for six years. The agreement authorizes two new reading programs, as well as new programs to help states develop and implement the system of testing and assessment required by the bill;

§ Accountability Provisions -- In addition to annual testing of school children, the agreement includes a number of provisions intended to help hold schools accountable for the academic achievement of their students, including state, school district and school "report cards" to parents and the public on school performance and teacher qualification. It authorizes $400 million in FY 2002 for a program to help states develop and administer their own tests. The agreement also requires school districts to take actions help improve student performance at low-performing schools;

§ Teacher Training-- Authorizes $3.2 Billion in FY 2002 for a state grant program for teacher training and Class Size Reduction programs. The agreement also authorizes $450 million in FY 2002 for the Math and Science Partnership Program;

§ Making Schools Safer - A student who is a victim of a crime, or attends a public school designated by the state as unsafe, would be permitted to transfer to a safe public school. Such students would be given this option in federal law for the first time ever. Would help ensure that teachers, principals, and other school professionals can undertake reasonable actions to maintain order and discipline in the classroom without the fear of being dragged into court or subjected to frivolous lawsuits; and

§ Bilingual Education -- Authorizes $750 million in FY 2002 for the bilingual and immigrant education program. The agreement eliminates the current low provision that requires that 75% of the funds be used to support programs in which the child is taught in his or her natural language. It also gives parents the right to choose among institutional programs if more than one type is offered.