Washington ( CNN ) -- President Obama highlighted stronger federal efforts Monday to help lower a high school dropout rate that , according to the president , is undermining America 's future economic potential . Obama noted that the administration has committed $ 3.5 billion in new federal support for underperforming schools . Among other things , the Education Department is attempting to encourage states to identify and take new measures to reverse trends in schools with graduation rates below 60 percent . The Education Department 's new `` school turnaround grants '' are designed to help 5,000 low-performing schools in the next five years . Obama 's proposed fiscal year 2011 budget includes an extra $ 900 million for the program . `` Our kids get only one chance at an education , and we 've got to get it right , '' Obama said . `` If a school continues to fail its students , then there 's got to be ... accountability . ... The stakes are too high -- for our children , for our economy , for our country . '' The president argued underperforming teachers will need to be replaced in struggling school districts . But more accountability and higher standards , he said , need to be matched by greater federal funding and more parental involvement . Obama made his remarks during an appearance at the U.S. Chamber of Commerce with the nonprofit group America 's Promise , which sponsors programs for at-risk children . The group is headed by Alma Powell , the wife of former Joint Chiefs Chairman Gen. Colin Powell . Roughly 1.2 million students drop out of school every year , according to the White House . About half of the dropouts are Latino or African-American , Obama said . As a consequence , the administration claims , the country loses almost $ 320 billion in potential earnings every year .
High school dropout rate threatens U.S. economic future , Obama says . Administration has committed $ 3.5 billion to help struggling schools , he says . Obama says underperforming teachers need to be replaced . He calls for more federal funding and parental involvement .