Graduation Promise Act of 2007 - Authorizes the Secretary of Education to make grants to states and, through them, subgrants to local educational agencies (LEAs) for differentiated high school improvement systems targeting support to schools with low student achievement and graduation rates after the school fails for two consecutive years to make adequate yearly progress (AYP) pursuant to state academic performance standards.
Requires state grantees to establish comprehensive school performance indicators and minimum annual improvement benchmarks for use, in addition to current AYP measures, in analyzing school performance and determining the improvement category into which a school is placed. Directs LEA subgrantees to convene a local school improvement team for each school placed in an improvement category that will use performance indicators to conduct a school needs assessment and develop a multiyear school improvement plan tailored to the school's need categorization. Permits LEAs to use funds to improve feeder middle schools.
Authorizes the Secretary to award competitive grants to: (1) LEAs, nonprofit organizations, and institutions of higher education to develop and implement, or replicate, effective school models for struggling students and dropouts; and (2) states to adjust their policies to allow for educational innovations that improve high school graduation rates while ensuring rigorous education content standards and assessments, if such states implement differentiated high school improvement systems and statewide longitudinal student data systems.