Dropout Prevention and Reentry Act of 1986

(Measure passed House, amended)

Dropout Prevention and Reentry Act of 1986 - Provides for grants to local educational agencies (LEAs) to establish and demonstrate: (1) programs to identify potential dropouts and prevent them from dropping out; (2) programs to identify dropouts and encourage them to reenter school; and (3) model systems for collecting and reporting information on dropouts to local school officials.

Authorizes appropriations for FY 1987 through 1989.

Directs the Secretary of Education, from such funds for any fiscal year, to allot specified percentages to each of four categories of LEAs (based on total elementary and secondary school student enrollments).

Directs the Secretary, from the amounts allotted to such categories of LEAs, to award as many grants as practicable within each such category to LEAs whose applications: (1) have been approved; and (2) propose a program of sufficient size and scope to be of value as a demonstration. Limits an LEA to no more than one such grant in each of three fiscal years. Requires the amount of a grant to be, to the extent practicable, proportionate to the extent and severity of the local dropout problem. Requires the LEA to match ten percent of the grant for the first year, 25 percent for the second year, and 40 percent for the third and any subsequent year.

Sets forth grant application requirements (including plans for addressing the needs of pregnant minors, school-age parents, Indians, migrants, and other high-risk populations). Directs the Secretary to give first priority within each category of LEA to applicants with either very high numbers or very high percentages of school dropouts. Sets forth requirements for review of LEA projects.

Requires such grants to be used to carry out plans set forth in the applications. Lists activities such grants may also be used for, including counseling, remedial education, work-study, community-organization service, curriculum review, and school staff training.

Requires at least 30 percent of each grant to be used for dropout prevention activities, and another 30 percent for dropout reentry activities (i.e. persuading dropouts to return to school and assisting former dropouts with specialized services once they return to school).

Sets forth general provisions relating to withholding payments, annual reports, and audits. Requires that grants supplement other funds.