The newly reauthorized Elementary and Secondary Education Act (ESEA 2001) reflects and reinforces a major shift in thinking about the roles and responsibilities of school board members, district superintendents, and principals. School and district leaders will face substantial challenges as they adjust to ESEA requirements, including pressure to succeed and deal with potential shifts to using test-preparation curricula. ESEA requires that professional development for educational leaders focus more on enhancing instructional leadership capabilities of superintendents and principals rather than on management. There will be, however, new opportunities and resources to increase leadership effectiveness, such as federal Title II funding to reform principal licensure and certification and provide professional development to principals. States have already begun to address ESEA 2001 issues in the area of recruitment, retention, and effective education and professional learning of principals. Some states are also changing working conditions and governance structures so that education leaders can perform their jobs more efficiently. This policy brief concludes with some key policy questions for states to consider as they put ESEA 2001 into effect and a short list of resources for further understanding of ESEA 2001. (RT)