Disclaimer: This post is a work in progress.
"According to Joel Spring, the Elementary and Secondary School Act had at least three major consequences for future legislative action. First, it signalled the switch from general federal aid to education towards categorical aid, and the tying of federal aid to national policy concerns such as poverty, defense or economic growth. Second, it addressed the religious conflict by linking federal aid to educational programs directly benefiting poor children in parochial schools, and not the institutions in which they enrolled. Third, the reliance on state departments of education to administer federal funds (promoted to avoid criticisms of federal control) resulted in an expansion of state bureaucracies and larger involvement of state governments in educational decision-making." (http://www.oise.utoronto.ca/legacy/research/edu20/moments/1965elemsec.html)