To amend the Elementary and Secondary Education Act of 1965 to establish an instructional level assessment pilot program.

Amends the Elementary and Secondary Education Act of 1965 to require the Secretary of Education to: (1) award competitive grants to up to 10 states for pilot programs to determine the effectiveness of assessing disabled students who are achieving significantly below grade-level proficiency at their instructional level; and (2) provide quality instruction to such students.

Requires each grantee to identify a minimum of five local educational agencies (LEAs) to participate in its pilot program and limit student participation to 0.5% of the students assessed in each participating LEA.

Requires such states and LEAs to ensure that each participating student's individualized education program team: (1) administers, after securing parental consent, a scientifically-valid and reliable assessment based on the student's instructional level in reading and/or math; and (2) based on such assessment, develops a series of targeted interventions designed to close identified gaps in the student's instructional and grade-level content knowledge.

Prohibits the use of such assessment results in determinations of adequate yearly progress (AYP) toward state academic performance standards.