A bill to authorize assistance to schools impacted by economic dislocations and legal alien immigration along the borders of the United States and Mexico.

Amends the Public Works and Economic Development Act of 1965 to direct the Secretary of Commerce to make grants to local educational agencies in States bordering Mexico for the construction of school facilities to assist in providing education for legal immigrant children.

Sets forth a formula for determining the amount of such a grant and the eligibility of an agency for a grant based on the number of such children aged five through 17 enrolled in the schools of an agency. Includes for such purposes only such children who reside, or whose parents or guardians reside, in the school district of the agency.

Earmarks a specified amount of the appropriations authorized under the Public Works and Economic Development Act of 1965 for such grants. Requires that individual agency entitlements be ratably reduced if such amount is not sufficient to pay the full amount all agencies are entitled to receive.

Sets forth grant application requirements. Directs the Secretary to withhold grant payments to any agency that fails to comply with the terms of its application until the Secretary is satisfied that there is no longer any failure to comply.