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Mr. Chairman and Members of the Committee:

Thank you for this opportunity to meet with you. During the last few weeks I've made several visits to the Gulf Coast. We've all witnessed both terrible destruction and heart-warming acts of generosity. I am gratified by the communities and schools that are opening their doors—and their hearts—to displaced students. But I'm not surprised; educators are simply showing America once again what a treasure they truly are.

After the pictures we've all seen on television, and the looks on these children's faces, one thing I know for sure is that these young people need and deserve a quality education. In fact, we're having what educators call "a teachable moment"—an opportunity to learn from and act on the moment we're in. Katrina and Rita are reminders to all of us that every single one of our children must be given the opportunity to learn and the chance to share in the American dream.

That includes hundreds of thousands of children who were displaced from their homes and schools. Our goal at the Department of Education is to make sure these students get a quality education wherever they are. We know that school is a stabilizing influence for both children and families who are working to rebuild their lives. We are staying in close contact with education leaders throughout the Gulf Coast region, and I have asked Congress for authority to waive statutory or regulatory requirements, except those related to civil rights or safety, that may slow down our ability to help students and school systems recover from this disaster.

The states and school districts that are welcoming these students will face unexpected costs this year. To make sure they are adequately compensated, the president has proposed that Congress provide up to $7,500 per student in federal funds over the current school year. Under this proposal, the Department would increase our investment from about 9 percent to 90 percent of a state's per-pupil expenditure for one year only.

We want to provide equal opportunity for every school that is welcoming these children, including public and private schools. We must ensure that displaced students receive a quality education, and in many areas, private schools are enrolling children the public school systems simple cannot accommodate.

About 25 percent of students in the hardest-hit Louisiana communities attended private school. That's compared to our national average of roughly 10 percent. We must not penalize the parents who had already chosen private schools for their children. And we must not penalize any school of any kind for its commitment to these students.

Today, I am announcing two actions that will give dramatically impacted schools and districts flexibility for one year only on certain aspects of adequate yearly progress. Let me stress that under both options, every displaced student will be tested, and the results will be made public to ensure that every child gets the attention he or she needs and deserves. Schools must welcome these children with both compassion and high expectations.

We believe the best way to accomplish this goal will be to allow those schools and districts to report the results for hurricane-displaced students as a separate subgroup or group of students. Using their good judgment and criteria I released today, states that were seriously affected by this tragedy may also exercise the delay provisions of the No Child Left Behind Act without seeking a waiver from the Department. These provisions would temporarily delay certain schools and districts from moving forward in the school improvement timeline, even if they do not make adequate yearly progress.

As you know, when I came into office, I pledged to implement No Child Left Behind in a sensible, workable way. But we must not compromise on the "bright line" principles of the law-annual assessment, disaggregating data, and closing the achievement gap by 2014. Thanks to our nation's latest education report card, we now have proof that high standards and accountability are paying off. Scores are at all-time highs for African-American and Hispanic students, especially in the early grades. We've made more progress in the last five years than in the previous 30 combined.

Clearly, we are on the right track. The law is working. At the same time, I have been listening to the concerns of parents, educators, and policymakers closest to our students. As you may know, I have worked in education policy at the state, local, and now the national level for more than 20 years, and I have respect for the issues we wrestle with at each of those levels. Nobody I know has ever passed a perfect law. Implementing public policy is an organic process.

For example, in the 2003-04 school year, about two million students across our country were eligible for free, high-quality tutoring. Unfortunately, only about 10-20 percent of them actually received the services. We needed a new approach, so the Department worked with people on the front lines to come up with one.

I recently announced a series of pilot agreements that will make it easier for certain districts, like Chicago, to provide free tutoring—even if they have been identified as "needing improvement," as many school districts are. In return for this flexibility, the districts will ensure that more children receive services—from the provider their parents feel most comfortable with. And families will have more choices, more convenient locations, and more opportunities to enroll.

My hope is that increased flexibility will lead to increased participation in after-school tutoring and increased achievement for children. After testing some theories with this pilot, we will have a better recipe for student success.

The Department has also taken a number of other steps in response to the education community's concerns, including:

• convening a special working group that is exploring appropriate and meaningful approaches to measure the progress of children who have not grown up speaking English; and

• working with states that want to develop more appropriate "modified tests" for students with disabilities who may need additional time and intensive instruction to reach grade level.

We are also considering the notion of a growth model, where schools would get credit for progress over time. But I must be clear: To have a sound growth model system, you must have annual data, and students in every subgroup must be closing the achievement gap.

No Child Left Behind is provoking a lot of discussion about how we can best help the most students. We are learning from our experiences and from the research as it develops. Our ongoing conversations about remaining issues are right and appropriate. If this act had not become law, I'm not sure we would be having these conversations.

Before No Child Left Behind, students were too often shuffled from grade to grade without knowing how to read or do math. It's right and righteous that the law focused on those two key areas. The next step is to take high standards and accountability into our high schools.

If the hurricanes show us anything, they show how vulnerable we are. As the international playing field gets flatter, American students need better education and training to compete. In our global economy, more than 80 percent of the fastest-growing jobs will require education or training beyond high school. Unfortunately, five out of 10 minority students—and three out of 10 overall—don't even finish high school on time!

The one million students who drop out of high school each year cost our nation more than $260 billion dollars. That's in lost wages, lost taxes, and lost productivity over their lifetimes. In federal dollars, that will buy you 10 years of research at the National Institutes of Health.

Business, political, and education leaders are regularly sounding the alarm. When we lose a million students every year that has a tremendous impact on our economy. And it represents the American Dream ... denied.

High school reform is not just an "education issue." It's also an economic issue, a civic issue, a social issue, and a national security issue. And it's everybody's issue.

America's report card has shown no progress for high school students in 30 years. We must focus on more rigor, particularly in reading, math, and science, to help more of our students reach the finish line on time and be ready for college or work. Progress for older students begins with high standards and accountability.

With No Child Left Behind, President Bush and you in the Congress led our nation in a historic commitment to give every child a quality education. We looked ourselves in the mirror and said we would close the achievement gap by 2014 across the board.

It's our mission, and it's also the right thing to do. Our children and our country deserve less.

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