§7345 — Title 20 Education | U.S. Code

§7345 Use of applicable funding

Title 20 › Chapter CHAPTER 70— - STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY SCHOOLS › Subchapter SUBCHAPTER V— - FLEXIBILITY AND ACCOUNTABILITY › Part Part B— - Rural Education Initiative › Subpart subpart 1— - small, rural school achievement program › § 7345

Last updated Apr 6, 2026|Official source

Summary

Allows eligible local school districts to spend certain federal funds on local programs allowed under several different program parts (parts of subchapters I, II, III, and IV). To do this, the district must tell the State educational agency by the date the State sets. A district is eligible if it has fewer than 600 students total or every county with a school it serves has fewer than 10 people per square mile, and all its schools have locale codes 41, 42, or 43. The Secretary of Education can waive the locale-code rule if the district shows and the State agrees that the area is rural under a State agency’s definition. A district that is part of a regional educational service agency that does not get these funds can also qualify if it meets the other requirements. "Applicable funding" means funds from Part A of subchapter II and Part A of subchapter IV. The State must pay out these funds for the alternative uses at the same time it pays other districts their regular funds for the year.

Title 20, §7345

Education — Source: USLM XML via OLRC

(a)(1)Notwithstanding any other provision of law, an eligible local educational agency may use the applicable funding that the agency is eligible to receive from the State educational agency for a fiscal year to carry out local activities authorized under any of the following provisions:

(A)Part A of subchapter I.

(B)Part A of subchapter II.

(C)Subchapter III.

(D)Part A or B of subchapter IV.

(2)An eligible local educational agency shall notify the State educational agency of the local educational agency’s intention to use the applicable funding in accordance with paragraph (1), by a date that is established by the State educational agency for the notification.

(b)(1)A local educational agency shall be eligible to use the applicable funding in accordance with subsection (a) if—

(A)(i)(I)the total number of students in average daily attendance at all of the schools served by the local educational agency is fewer than 600; or

(II)each county in which a school served by the local educational agency is located has a total population density of fewer than 10 persons per square mile; and

(ii)all of the schools served by the local educational agency are designated with a locale code of 41, 42, or 43, as determined by the Secretary;

(B)the agency meets the criteria established in subparagraph (A)(i) and the Secretary, in accordance with paragraph (2), grants the local educational agency’s request to waive the criteria described in subparagraph (A)(ii); or

(C)the local educational agency is a member of an educational service agency that does not receive funds under this subpart and the local educational agency meets the requirements of this part.

(2)The Secretary shall determine whether to waive the criteria described in paragraph (1)(A)(ii) based on a demonstration by the local educational agency, and concurrence by the State educational agency, that the local educational agency is located in an area defined as rural by a governmental agency of the State.

(c)In this section, the term “applicable funding” means funds provided under any of the following provisions:

(1)Part A of subchapter II.

(2)Part A of subchapter IV.

(d)Each State educational agency that receives applicable funding for a fiscal year shall disburse the applicable funding to local educational agencies for alternative uses under this section for the fiscal year at the same time as the State educational agency disburses the applicable funding to local educational agencies that do not intend to use the applicable funding for such alternative uses for the fiscal year.

(e)Applicable funding under this section shall be available to carry out local activities authorized under subsection (a).

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5211 of Pub. L. 89–10 was renumbered section 4311 and was classified to section 7221j of this title, prior to repeal by Pub. L. 114–95.

Amendments

2015—Subsec. (a)(1). Pub. L. 114–95, § 5003(1)(A), added subpars. (A) to (D) and struck out former subpars. (A) to (E) which read as follows: “(A) Part A of subchapter I of this chapter. “(B) Part A or D of subchapter II of this chapter. “(C) Subchapter III of this chapter. “(D) Part A or B of subchapter IV of this chapter. “(E) Part A of subchapter V of this chapter.” Subsec. (b)(1)(A)(ii). Pub. L. 114–95, § 5003(1)(B)(i), struck out “school” before “locale code” and substituted “41, 42, or 43, as determined by the Secretary;” for “7 or 8, as determined by the Secretary; or”. Subsec. (b)(1)(C). Pub. L. 114–95, § 5003(1)(B)(ii), (iii), added subpar. (C). Subsec. (c). Pub. L. 114–95, § 5003(1)(C), added pars. (1) and (2) and struck out former pars. (1) to (3) which read as follows: “(1) Subpart 2 of this part and section 6762(a)(2)(A) of this title. “(2) section 7114 of this title. “(3) Part A of subchapter V of this chapter.”

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.