Authorizes the Secretary of Education, under the strategy, to: (1) collect systematic data on the participation of individuals, disaggregated by specified factors, in certain Federal programs; (2) establish and consult with an interagency working group; (3) carry out a national recognition and awards program for public middle and secondary schools that have made extraordinary progress in lowering school dropout rates; (4) conduct, through a non-Federal entity, a capacity building and design initiative to increase the types of proven strategies for dropout prevention and reentry that address the needs of an entire school population rather than a subset of students; and (5) provide support to eligible entities to enable them to provide training, materials, development, and staff assistance to schools assisted under the strategy.
Directs the Secretary, under the initiative, to make allotments to States to award grants to public middle schools or secondary schools with school dropout rates in the highest one-third in the State, for startup and implementation costs of school dropout prevention program authorized activities. Sets forth initiative program requirements relating to: (1) school strategies and capacity building; (2) selection of schools; (3) school dissemination activities; (4) LEA progress incentives for schools; (5) school dropout rate calculation; (6) school reporting and accountability; and (7) SEA responsibilities for uniform data collection regarding school dropouts, attendance neutral funding policies, and suspension and expulsion policies.