Defines "eligible schools" as those where: (1) a majority of middle grade students matriculate to high schools with graduation rates below 60%; (2) more than 25% of the students who finish grade six, or the school's earliest middle grade level, exhibit key risk factors for failure; and (3) a majority of middle grade students are not rated proficient on required state assessments in mathematics, reading, or language arts.

Permits states to make subgrants to LEAs that did not receive a competitive subgrant to assist them in applying for competitive subgrants and developing comprehensive middle school improvement plans.

Provides the Secretary with funding to: (1) contract for studies that identify promising practices for, and review existing research to identify factors that might lead to, the improvement of middle school education; (2) create a national clearinghouse in best middle grade educational practices and a national database identifying factors that facilitate or impede middle grade student achievement; (3) require certain educational field research designed to enhance the performance of middle grade schools and students; (4) create a research and development center that addresses topics pertinent to middle grade schools; and (5) provide grants to entities that partner with states and LEAs to develop, adapt, or replicate effective models for turning around low-performing middle grade schools.