Reading First "specifies that teachers' classroom instructional decisions must be informed by scientifically based reading research."
What this means is that teacher-generated research (known as self-study or action research) is overlooked, along with small-group or single-subject studies. If it ain't quantitative, forget it.
This approach also discounts any use of whole-language approaches and focuses instead on phonics-based instruction, as the piece above mentions.
My assumption is that some of the canned "reading programs" that districts implement are getting rich off the Reading First funds. Here are a couple of pieces on where the money leads (McGraw Hill and Bush Pioneer Randy Best).
http://www.districtadministration.com/pulse/commentpost.aspx?news=no&postid=17185http://www.edu-cyberpg.com/Literacy/texasScam.asp