A key provision of No Child Left Behind is the opportunity for students to transfer from a low-performing school to a high-performing one. Drawing from a case study of school reform in Charlotte, North Carolina, this article examines the implementation and early outcomes of NCLB's voluntary transfer option for the Charlotte-Mecklenburg School (CMS) district. For the 2004-05 school year, fully 92% of the eligible families did not exercise their choice to exit from their low-performing schools. The experiences of CMS illustrate how larger social, economic, and political contexts constrain the implementation of standards-based reforms like NCLB in general and, in particular, the limitations of the transfer option for improving academic achievement and educational equity.