Adds new section 8549D to Subpart 2 of Part F of Title VIII (20 U.S.C. 7901 et seq.) requiring each State and local educational agency receiving funds under the Act to provide an assurance protecting First Amendment rights in school libraries and providing equal protection consistent with the Fourteenth Amendment and nondiscrimination laws.

Amends section 8556 (20 U.S.C. 7946) by redesignating subsections (b)–(e) as (c)–(f); inserting a new subsection (b) that provides liability protection for teachers, school librarians, school leaders, paraprofessionals, or other staff for actions taken in conformity with State or local policies regarding the right to read; and updating cross-references and language in existing provisions to except subsection (b) where specified.

Amends section 8555(b) (20 U.S.C. 7945(b)) by modifying the text to make the subpart inapplicability carve-out explicit: replaces 'This subpart shall not apply' with 'Except for section 8556(b), this subpart shall not apply.'

Redesignates existing subclauses (VI) and (VII) as (VII) and (VIII), and inserts a new subclause (VI) after subclause (V) adding 'digital literacy and information literacy activities and programs, including those provided through effective school libraries.'

Redesignates subparagraphs (I) and (J) as (J) and (K), respectively, and inserts a new subparagraph (I) after (H) adding 'programs and activities the promote the development of digital literacy and information literacy skills, including those provided through an effective school library.'

Adds a new subsection (c) authorizing appropriations for specified literacy grants and makes a minor insertion in subsection (b).

Modifies subsection (c)(4)(B) by redesignating several clauses, replacing clause (xiii) with language supporting effective school libraries collaborating with State-certified school librarians, and inserting new clauses (xiv)–(xvi) concerning recruitment, retention, and training of State-certified school librarians and library staff; also makes a small insertion in subsection (d)(3)(A).

Replaces subparagraph (K) of section 6613(b)(3) with text explicitly authorizing programs and activities to support and improve effective school libraries that involve collaboration with State-certified school librarians.

Removes paragraph (2) from the reservations provision and redesignates paragraphs (3) and (4) as paragraphs (2) and (3), respectively.

Adds a new subparagraph (M) to paragraph (1) of section 6641(b) providing that the State plan 'provides opportunities for students to develop digital literacy and information literacy skills,' and makes minor punctuation edits to existing subparagraphs.