Title 20EducationRelease 119-73

§7823 Consolidation of funds for local administration

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 › § 7823

Last updated Apr 6, 2026|Official source

Summary

A local school district may, with its State education agency’s approval and under rules from the U.S. Secretary of Education, combine the amounts it is allowed to use for administration from several federal programs for any fiscal year. The district can only combine up to the percentage limit each program sets of the total it gets. The State agency must work with districts to make procedures for asking to combine funds and to set limits on how much may be used this way. If a district consolidates administrative funds for a year, it cannot also use other funds from those same programs for administration that year. The combined money can pay for running the programs and for similar school- or district-level uses allowed elsewhere in the law. If those uses match certain school-level supports, the district may add State or local money to expand them without breaking the rule that federal funds must supplement, not replace, other funding. The district does not have to keep separate records for each program’s administrative costs.

Full Legal Text

Title 20, §7823

Education — Source: USLM XML via OLRC

(a)In accordance with regulations of the Secretary and for any fiscal year, a local educational agency, with the approval of its State educational agency, may consolidate and use for the administration of one or more programs under this chapter (or such other programs as the Secretary shall designate) not more than the percentage, established in each program, of the total available for the local educational agency under those programs.
(b)A State educational agency shall, in collaboration with local educational agencies in the State, establish procedures for responding to requests from local educational agencies to consolidate administrative funds under subsection (a) and for establishing limitations on the amount of funds under those programs that may be used for administration on a consolidated basis.
(c)A local educational agency that consolidates administrative funds under this section for any fiscal year shall not use any other funds under the programs included in the consolidation for administration for that fiscal year.
(d)(1)A local educational agency that consolidates administrative funds under this section may use the consolidated funds for the administration of the programs and for uses, at the school district and school levels, comparable to those described in section 7821(b)(2) of this title.
(2)A local educational agency that uses funds as described in section 7821(b)(2)(I) of this title may contribute State or local funds to expand the reach of such support without violating any supplement, not supplant requirement of any program contributing administrative funds.
(e)A local 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 the programs included in the consolidation.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2015—Subsec. (b). Pub. L. 114–95, § 8006(1), substituted “A State” for “Within 1 year after January 8, 2002, a State”. Subsec. (d). Pub. L. 114–95, § 8006(2), added subsec. (d) and struck out former subsec. (d). Prior to amendment, text read as follows: “A local educational agency that consolidates administrative funds under this section may use the consolidated funds for the administration of the programs and for uses, at the school district and school levels, comparable to those described in section 7821(b)(2) of this title.”

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. § 7823

Title 20Education

Last Updated

Apr 6, 2026

Release point: 119-73