Rural Education Development Initiative for the 21st Century Act

Rural Education Development Initiative for the 21st Century Act - Directs the Secretary of Education to make grants to States for elementary and secondary education development by local educational agencies (LEAs) that are eligible because they serve: (1) a school-age population of whom 20 percent or more are from families with incomes below the poverty line; and (2) a school district in a rural locality, or a school-age population of 800 or fewer.

Reserves a specified portion of grant funds for schools operated by the Bureau of Indian Affairs.

Sets forth an allotment formula for grants to State educational agencies (SEAs) to make grants to eligible LEAs.

Authorizes the Secretary to make direct competitive grants to specially qualified eligible rural LEAs in nonparticipating States.

Requires LEAs or their schools to use grant funds for: (1) educational technology, including software and hardware; (2) professional development; (3) technical assistance; (4) teacher recruitment and retention; (5) parental involvement activities; or (6) academic enrichment programs.

Requires SEAs to award grants on a competitive or formula basis. Requires that at least 90 percent of such funds be awarded to eligible LEAs. Allows specified portions of the remainder to be used for: (1) assistance to schools that meet certain eligibility criteria, even though they are in noneligible LEAs; and (2) State activities and administrative costs related to the grant program.

Authorizes appropriations.