§6338 — Title 20 Education | U.S. Code

§6338 Special allocation procedures

Title 20 › Chapter CHAPTER 70— - STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY SCHOOLS › Subchapter SUBCHAPTER I— - IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED › Part Part A— - Improving Basic Programs Operated by Local Educational Agencies › Subpart subpart 2— - allocations › § 6338

Last updated Apr 6, 2026|Official source

Summary

Explains who gets parts of certain federal special-education grants when children living in institutions for neglected children (see section 6333(c)(1)(B)) are not being served by their local school district. If the State educational agency finds a local educational agency (LEA) cannot or will not meet those students’ needs and the State takes responsibility, the State must receive the portion of that LEA’s allocation under sections 6333, 6334, 6335, and 6337 that applies to those children. If the State does not take responsibility, any other State or local public agency that does must get that portion. The State educational agency may divide grants among affected LEAs when two or more LEAs serve the same area, when one LEA educates children who live in another LEA’s district, or to reflect mergers or boundary changes. If the State finds an LEA will not use all of its grant, the State must make the extra funds available to other LEAs that need them, using criteria the State sets.

Title 20, §6338

Education — Source: USLM XML via OLRC

(a)(1)If a State educational agency determines that a local educational agency in the State is unable or unwilling to provide for the special educational needs of children who are living in institutions for neglected children as described in section 6333(c)(1)(B) of this title, the State educational agency shall, if such agency assumes responsibility for the special educational needs of such children, receive the portion of such local educational agency’s allocation under section 6333, 6334, 6335, and 6337 of this title that is attributable to such children.

(2)If the State educational agency does not assume such responsibility, any other State or local public agency that does assume such responsibility shall receive that portion of the local educational agency’s allocation.

(b)The State educational agency may allocate the amounts of grants under section 6333, 6334, 6335, and 6337 of this title among the affected local educational agencies—

(1)if two or more local educational agencies serve, in whole or in part, the same geographical area;

(2)if a local educational agency provides free public education for children who reside in the school district of another local educational agency; or

(3)to reflect the merger, creation, or change of boundaries of one or more local educational agencies.

(c)If a State educational agency determines that the amount of a grant a local educational agency would receive under section 6333, 6334, 6335, and 6337 of this title is more than such local educational agency will use, the State educational agency shall make the excess amount available to other local educational agencies in the State that need additional funds in accordance with criteria established by the State educational agency.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 6338, Pub. L. 89–10, title I, § 1127, as added Pub. L. 103–382, title I, § 101, Oct. 20, 1994, 108 Stat. 3577, related to carryover and waiver, prior to the general amendment of this subchapter by Pub. L. 107–110. A prior section 1126 of Pub. L. 89–10 was classified to section 6337 of this title, prior to the general amendment of this subchapter by Pub. L. 107–110.