§7221e — Title 20 Education | U.S. Code

Summary

The U.S. Secretary of Education and each state education agency must make sure every charter school gets the federal formula money it is eligible for no later than 5 months after the school first opens. The same rule applies when a charter school increases its enrollment in later years. This covers funds sent to states by formula, including the money under part A of subchapter I. Schools should get their money even if the students who will enroll are not fully known until the school opens. States must fix any overpayments made from estimated student numbers by getting money back or lowering next year’s payments. If a charter opens after November 1 of a school year, the state must still give it a fair chance to receive those funds in its first year, following federal guidance and rules. When using hold‑harmless protections, the state must set the prior‑year funding base to reflect the school’s new or much larger enrollment.

Title 20, §7221e

Education — Source: USLM XML via OLRC

(a)For purposes of the allocation to schools by the States or their agencies of funds under part A of subchapter I, and any other Federal funds which the Secretary allocates to States on a formula basis, the Secretary and each State educational agency shall take such measures as are necessary to ensure that every charter school receives the Federal funding for which the charter school is eligible not later than 5 months after the charter school first opens, notwithstanding the fact that the identity and characteristics of the students enrolling in that charter school are not fully and completely determined until that charter school actually opens. The measures similarly shall ensure that every charter school expanding its enrollment in any subsequent year of operation receives the Federal funding for which the charter school is eligible not later than 5 months after such expansion.

(b)(1)The measures described in subsection (a) shall include provision for appropriate adjustments, through recovery of funds or reduction of payments for the succeeding year, in cases where payments made to a charter school on the basis of estimated or projected enrollment data exceed the amounts that the school is eligible to receive on the basis of actual or final enrollment data.

(2)For charter schools that first open after November 1 of any academic year, the State, in accordance with guidance provided by the Secretary and applicable Federal statutes and regulations, shall ensure that such charter schools that are eligible for the funds described in subsection (a) for such academic year have a full and fair opportunity to receive those funds during the charter schools’ first year of operation.

(c)For purposes of implementing the hold harmless protections in section 6332(c) and 6337(g)(3) 11 See References in Text note below. of this title for a newly opened or significantly expanded charter school under this part, a State educational agency shall calculate a hold-harmless base for the prior year that, as applicable, reflects the new or significantly expanded enrollment of the charter school.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 6337(g)(3) of this title, referred to in subsec. (c), was redesignated section 6337(f)(3) of this title by Pub. L. 114–95, title I, § 1017(7), Dec. 10, 2015, 129 Stat. 1879.

Amendments

2015—Subsec. (c). Pub. L. 114–95, § 4301(2), added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date

of 2015 AmendmentAmendment by Pub. L. 114–95 effective Dec. 10, 2015, except with respect to certain noncompetitive programs and competitive programs, see section 5 of Pub. L. 114–95, set out as a note under section 6301 of this title.

§7221e Federal formula allocation during first year and for successive enrollment expansions