Low-Income and Rural School Program

Low-Income and Rural School Program - Establishes a Low-Income and Rural School Program for State and direct grants to certain rural and low-income local educational agencies (LEAs).

Directs the Secretary of Education to make grants to State educational agencies (SEAs) for elementary and secondary education development by LEAs that are eligible if: (1) 20 percent or more of the children aged five through 17, whom the LEA serves, are from families with incomes below the poverty line; and (2) all of the schools served by the LEA are located in a rural community (with a Rural-Urban Continuum Code of 6, 7, 8, or 9).

Reserves a specified portion of grant funds for schools operated or supported by the Bureau of Indian Affairs.

Sets forth an allotment formula for grants to SEAs to make grants to eligible LEAs.

Authorizes the Secretary to make direct competitive grants to specially qualified LEAs in nonparticipating States. Bases LEA eligibility for such grants on the same criteria as that for LEAs to receive State grants in participating States.

Requires such LEAs or their schools to use grant funds for: (1) educational technology, including software and hardware; (2) professional development; (3) technical assistance; (4) teacher recruitment and retention; (5) parental involvement activities; or (6) academic enrichment programs.

Requires SEAs to award grants on a competitive or formula basis. Limits to five percent that portion of a grant which may be used for State administrative costs.

Requires grant program reports by SEAs, specially qualified LEAs, and the Secretary.

Authorizes appropriations.