Amends the Elementary and Secondary Education Act of 1965 to establish a grants program to reduce class size through the use of fully-qualified teachers. Allots funds to States and local educational agencies to recruit, hire, and train additional teachers, in order to: (1) reduce class sizes nationally, in grades one through three, to an average of 18 students per classroom; and (2) improve teaching in those grades so that all students can learn to read independently and well by the end of the third grade.