A bill to amend the Elementary and Secondary Education Act of 1965 to require State educational agencies to establish basic standards of educational proficiency applicable to secondary school students.

Amends the Elementary and Secondary Education Act of 1965 to require States applying for assistance under such Act to establish and implement basic standards of secondary students' educational proficiency, including the passing of reading, writing, and mathematics examinations as a prerequisite to graduation.

Establishes the National Commission on Basic Education and directs it to (1) establish such standards; and (2) review and approve or disapprove State plans implementing such standards.

Requires the Commission to report to the President and to the Congress no later than three years after the effective date of this Act.

Authorizes the Commission to financially assist States in preparing such educational standards plans.