Extends grant priority to states that: (1) provide public charter schools with funding commensurate with that provided to other public schools; (2) focus on creating such schools in areas that have many schools designated as needing improvement; and (3) demonstrate that a high percentage of its charter school students are meeting, exceeding, or making sufficient progress toward state academic performance standards. Eliminates from grant consideration states that have certain restrictive charter school laws.

Alters Charter School Per-Pupil Facilities Aid programs by changing from mandatory to discretionary the authority of the Secretary to provide states with program grants and requiring state grantees to make charter school per-pupil spending commensurate with such spending on other public schools.

Establishes a competitive grant program for the dissemination of successful charter school programs.

Requires charter schools to have independent governing boards that enter into performance-based agreements with authorized public chartering agencies. Prohibits such schools from giving admissions priority to students on the basis of prior academic achievement.

Amends the Charter School Credit Enhancement program by making predevelopment costs an object of credit enhancement and authorizing the use of program grants for limited loans to such schools.

Reauthorizes appropriations through FY2013 for the programs amended by this Act.