The ruling Thursday comes in a case filed against the low-performing Newark Public Schools in New Jersey.
Parents say the district failed to notify them of the right to transfer out of failing schools and of other provisions required under the law.
The 3rd U.S. Circuit Court of Appeals says enforcement of the act is up to state educational agencies.
ACLU attorney Scott Michelman says the decision is not in the best interests of parents or children. A school district lawyer did not return calls.