A bill to revise title I of the Elementary and Secondary Education Act of 1965 to clarify and to strengthen its provisions.

Revises and reorganizes Title I of the Elementary and Secondary Education Act of 1965.

Directs local educational agencies to use funds received under Title I exclusively (1) in school attendance areas having high concentrations of children from low-income families and (2) with certain exceptions, for children having the greatest need for special assistance.

Specifies requirements for local education agencies relative to (1) assessment of educational needs; (2) research into possible alternative fund sources; (3) recordkeeping; and (4) complaint resolution.

Creates an exemption for certain special programs from the requirement that Federal funds not be used to supplant non-Federal funds and an exclusion from present excess cost and comparability provisions.

Permits, at schools where 80 percent or more of the children in average daily attendance or in the applicable grade-span are educationally deprived, inclusion of children who are not deprived in programs and projects assisted under Title I.

Revises provisions regarding State applications for assistance under Title I, and adds a new requirement that a State management summary be included as part of the application. Imposes specified administrative duties on State educational agencies under Title I.

Authorizes Federal, State, and local educational agencies to enter into compliance agreements as a means of ensuring compliance with Title I.

Sets out a new State approval procedure for local educational agencies' funding applications under Title I.

Provides for advance determination by the Commissioner of Education or the State that special State or local programs meet the requirements for an exemption from the excess costs and comparability provisions of Title I.

Directs the Commissioner of Education to develop a Policy Manual for implementing Title I programs.