Developing Innovative Partnerships and Learning Opportunities that Motivate Achievement Act or the DIPLOMA Act - Authorizes the Secretary of Education to award renewable five-year grants to states and, through them, subgrants to local consortia that include a local educational agency and other community partners to: (1) ensure the academic, physical, social, emotional, and civic development of disadvantaged youth; and (2) strengthen their families and communities.

Requires each state grantee to develop and implement a state child and youth strategy that assesses children's needs and the assets within the state that can be mobilized, coordinated, and integrated to achieve quantifiable progress toward goals that include ensuring that: (1) children are ready for school; (2) students are engaged and achieving in school; (3) students are physically, mentally, socially, and emotionally healthy; (4) schools and neighborhoods are safe and provide a positive climate for learning; (5) families and communities are supportive and engaged in their children's education as equal partners; (6) students are ready for postsecondary education and 21st Century careers; (7) students are contributing to their communities; and (8) students are not chronically absent.

Directs the consortia to develop and implement a local child and youth strategy that integrates multiple private and public services into a comprehensive, coordinated continuum of services directed toward achieving quantifiable progress toward such goals.

Requires the Secretary to award competitive grants directly to local consortia if appropriated funds fall below a specified amount.