In his first address to Congress in February 2009, when the nation teetered on the brink of economic collapse, President Obama declared that “dropping out of high school is no longer an option. It’s not just quitting on yourself, it’s quitting on your country—and this country needs and values the talents of every American.” Since then, the administration has made a major commitment to increasing America’s high school graduation rate, which was once the highest in the developed world and is now among the lowest. Lead-ing researchers now agree that 25 to 30 percent of students who enroll in American high schools fail to graduate. In many of the country’s largest urban school districts, such as Detroit, Cleveland, and Indianapolis, the dropout rate is as high as 60 percent, and rates are similarly high in many rural areas. A generation ago, high school dropouts could still join the military, or get work on assembly lines, and had a fair chance of finding their way in the world. President Obama does not exaggerate when he implies that today’s America has little use for dropouts and cannot expect to flourish so long as their numbers remain so high.
The administration has proposed nearly $1 billion in its latest budget specifically for the dropout problem. And it has already put $7.4 billion on the table, including its famous Race to the Top grants, which states and districts can get only if they agree to overhaul their worst-performing high schools. These are the 2,000 or so high schools that Obama and Secretary of Education Arne Duncan refer to as “dropout factories”—schools that graduate fewer than 60 percent of their students and account for more than half the nation’s dropouts...