Adds a new subsection (c) authorizing specified appropriations for literacy grants (establishing funding levels for grants under sections 2222 and 2226 for FY2026 and the following four years) and includes a minor insertion in subsection (b).

Modifies subsection (c)(4)(B) by redesignating certain clauses and inserting new clauses to add support for effective school libraries and related recruitment and training activities; also makes an insertion into subsection (d)(3)(A).

Replaces subparagraph (K) of 6613(b)(3) to explicitly add support for and improvement of effective school libraries that involve State-certified school librarians and lists examples of such activities.

Removes paragraph (2) of section 6621 and redesignates paragraphs (3) and (4) as paragraphs (2) and (3), respectively.

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 carried out in conformity with State or local policies regarding the right to read, and updating cross-references and language in subsection (a), subsection (c)(3) (as redesignated), and subsection (f) (as redesignated) to add the qualification 'Except with respect to subsection (b)'.

Amends section 8555(b) (20 U.S.C. 7945(b)) by striking the phrase 'This subpart shall not apply' and inserting 'Except for section 8556(b), this subpart shall not apply.'

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

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

Adds a new section (8549D) to Subpart 2 of part F of title VIII requiring the Secretary to obtain an assurance from each State and local educational agency receiving funds under this Act that the State or local educational agency will protect students' First Amendment rights in school libraries and will provide equal protection in school libraries consistent with the Fourteenth Amendment and nondiscrimination laws, including specified affirmations and understandings about access to reading materials, the civic role of public schools, and school boards' discretionary functions and limits.

Amends 20 U.S.C. 6311 (section 1111) by inserting text in subsection (a)(4)(A)(ii)(I)(aa) and by modifying subsection (g) to redesignate an existing subparagraph, add a new subparagraph (G) requiring States to address disproportionate enrollment of low-income students, minority students, students with disabilities, and English learners in schools that lack an effective school library and to identify measures the State educational agency will use to evaluate and publicly report progress, and to adjust surrounding subparagraph punctuation/designation.