Adequate Yearly Progress is used to track the success of Title I schools and districts in improving student achievement. Schools and districts that exceed their AYP goals for two or more consecutive years are eligible for recognition and are encouraged to share their successful programs. Schools and districts that fail to make AYP for two consecutive years are identified for improvement and required to implement improvement plans. They are also required to use a portion of their Title I funds for professional development to support their plans.

The No Child Left Behind Act of 2001 also established new educational options for students who attend Title I schools that are identified for improvement. School districts must offer these students the option to transfer to another school in the district that is not identified for improvement and must provide or pay for transportation. If the district does not have space to accommodate all transfer requests, it must give priority to low-achieving students from low-income families.

If the district does not have any other school to which students can transfer, it is required to attempt to make arrangements with neighboring districts and is expected to make additional efforts to improve the services in the identified schools.

Schools that fail to make AYP for a third consecutive year are also subject to new requirements for "supplemental educational services," which are instructional services provided outside of the school day by an educational service provider selected by the parents from a state-approved list. These services are available only to low-income students, with priority given to low-achieving students. 

If schools fail to make AYP for a fourth or fifth year, the district must continue to offer the transfer option and supplemental educational services. It must also take one or more specific actions to make major changes in the school, such as providing a new curriculum and appropriate professional development, decreasing the school's decision-making authority, appointing an outside expert to advise the school, or changing the structure of the school.

If districts that have been identified for improvement continue to fail to make AYP, the Michigan Department of Education is required to take one or more corrective actions with respect to the district. These actions are similar to those required for individual schools.