Amends the Department of Defense, Emergency Supplemental Appropriations to Address Hurricanes in the Gulf of Mexico, and Pandemic Influenza Act, 2006 to extend, through FY2008, the authority of the Secretary of Education to waive or modify certain requirements relating to maintenance of effort, supplementary use of funds, and matching funds in providing assistance to Louisiana, Mississippi, Alabama, and Texas and, through them, to local educational agencies and non-public elementary and secondary schools serving areas in which a major disaster was declared relating to Hurricane Katrina or Rita.