Title 20EducationRelease 119-73

§7821 Consolidation of State administrative funds for elementary and secondary education programs

Title 20 › Chapter CHAPTER 70— - STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY SCHOOLS › Subchapter SUBCHAPTER VIII— - GENERAL PROVISIONS › Part Part B— - Flexibility in the Use of Administrative and Other Funds › § 7821

Last updated Apr 6, 2026|Official source

Summary

A State educational agency may combine the federal money it gets to run certain elementary and secondary education programs if most of the agency’s money comes from nonfederal sources. This can include any program in this part that allows funds for administration and any others the Secretary of Education lets it include. The combined money must be used to administer those programs. It can also pay for activities that make program use more coordinated and effective. Examples include coordinating with other programs, running peer-review systems, managing this part’s rules, sharing model practices, giving technical help, state-level work, training auditors and monitors, carrying out the Department’s Cooperative Audit Resolution and Oversight Initiative, and fiscal support teams that check financial, administrative, staffing, and other key operations. If funds are combined, the agency does not have to keep separate records by program. The Secretary can review how the agency uses the combined funds and take action if needed. Any unused amounts may be used for the covered programs while the funds are available. The agency may also combine funds for developing state academic standards and assessments under subchapter I.

Full Legal Text

Title 20, §7821

Education — Source: USLM XML via OLRC

(a)(1)A State educational agency may consolidate the amounts specifically made available to it for State administration under one or more of the programs under paragraph (2) if the State educational agency can demonstrate that the majority of its resources are derived from non-Federal sources.
(2)This section applies to any program under this chapter under which funds are authorized to be used for administration, and such other programs as the Secretary may designate.
(b)(1)A State educational agency shall use the amount available under this section for the administration of the programs included in the consolidation under subsection (a).
(2)A State educational agency may also use funds available under this section for administrative activities designed to enhance the effective and coordinated use of funds under programs included in the consolidation under subsection (a), such as—
(A)the coordination of those programs with other Federal and non-Federal programs;
(B)the establishment and operation of peer-review mechanisms under this chapter;
(C)the administration of this subchapter;
(D)the dissemination of information regarding model programs and practices;
(E)technical assistance under any program under this chapter;
(F)State-level activities designed to carry out this subchapter;
(G)training personnel engaged in audit and other monitoring activities;
(H)implementation of the Cooperative Audit Resolution and Oversight Initiative of the Department; and
(I)implementation of fiscal support teams that provide technical fiscal support assistance, which shall include evaluating fiscal, administrative, and staffing functions, and any other key operational function.
(c)A State educational agency that consolidates administrative funds under this section shall not be required to keep separate records, by individual program, to account for costs relating to the administration of programs included in the consolidation under subsection (a).
(d)To determine the effectiveness of State administration under this section, the Secretary may periodically review the performance of State educational agencies in using consolidated administrative funds under this section and take such steps as the Secretary finds appropriate to ensure the effectiveness of that administration.
(e)If a State educational agency does not use all of the funds available to the agency under this section for administration, the agency may use those funds during the applicable period of availability as funds available under one or more programs included in the consolidation under subsection (a).
(f)In order to develop challenging State academic standards and assessments, a State educational agency may consolidate the amounts described in subsection (a) for those purposes under subchapter I.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2015—Subsec. (b)(2)(I). Pub. L. 114–95, § 8005, added subpar. (I).

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.

Reference

Citations & Metadata

Citation

20 U.S.C. § 7821

Title 20Education

Last Updated

Apr 6, 2026

Release point: 119-73