Recent scores on state tests show that middle grades students have made some progress in meeting their state's academic standards over the last half-decade. Yet a closer look at state standards indicates that too many Southern Regional Education Board (SREB) states have set them too low. Quite a few states have taken steps to improve their standards and to increase the rigor in their curricula. These actions are promising, but more work needs to be done. This report, part of the "Challenge to Lead" education goals series, documents the stall of progress in middle grades reading and math achievement. It analyzes results on state assessments and the National Assessment of Education Progress (NAEP) and indicates steps that will help states regain progress in achievement. It also lays out five specific strategies states can use to keep middle grades students on the path to success--from building a better-aligned sequence of math courses, to increasing professional development for middle grades teachers. Four appendices are included: (1) Percent of Eighth-Graders Scoring At or Above NAEP Basic and Proficient Levels in Math and Percent Enrolled in Pre-Algebra, Algebra I or Higher; (2) Recommended Major Topics of School Algebra; (3) Benchmarks for the Critical Foundations of Algebra: Guideposts for State Frameworks and School Districts; and (4) Percent of Public School Teachers Assigned to Teach Math Classes Who Hold Credentials in Math: Grades 7-12, 2004. (Contains 9 tables, 2 figures and 3 boxes.)