Title 20, EducationRelease 119-110

§10012 Fiscal Relief

Title 20 › CHAPTER 80 — STATE FISCAL STABILIZATION FUND › § 10012

Last updated Sep 23, 2026|Official source

Summary

The Secretary of Education may waive or change rules about keeping the same level of state funding to help States and local school systems that suddenly lose a lot of money. Waivers can cover fiscal year 2009, fiscal year 2010, or fiscal year 2011, as the Secretary decides. A waiver can only be given if the State will not spend a smaller share of its total revenue on elementary, secondary, and public higher education in the covered year than it did the year before. With prior approval, a State or local agency that gets these funds may count some of those funds as non‑Federal money for other maintain‑effort rules, including part C of the Individuals with Disabilities Education Act, but the required level of effort for the next fiscal year cannot be reduced.

Full Legal Text

Title 20, §10012

Education, Source: USLM XML via OLRC

(a)In general
For the purpose of relieving fiscal burdens on States and local educational agencies that have experienced a precipitous decline in financial resources, the Secretary of Education may waive or modify any requirement of this chapter relating to maintaining fiscal effort.
(b)Duration
A waiver or modification under this section shall be for any of fiscal year 2009, fiscal year 2010, or fiscal year 2011, as determined by the Secretary.
(c)Criteria
The Secretary shall not grant a waiver or modification under this section unless the Secretary determines that the State receiving such waiver or modification will not provide for elementary, secondary, and public higher education, for the fiscal year under consideration, a smaller percentage of the total revenues available to the State than the percentage provided for such purpose in the preceding fiscal year.
(d)Maintenance of effort
Upon prior approval from the Secretary, a State or local educational agency that receives funds under this chapter may treat any portion of such funds that is used for elementary, secondary, or postsecondary education as non-Federal funds for the purpose of any requirement to maintain fiscal effort under any other program, including part C of the Individuals with Disabilities Education Act (20 U.S.C. 1431 et seq.), administered by the Secretary.
(e)Subsequent level of effort
Notwithstanding (d), the level of effort required by a State or local educational agency for the following fiscal year shall not be reduced.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Individuals with Disabilities Education Act, referred to in subsec. (d), is title VI of Pub. L. 91–230, Apr. 13, 1970, 84 Stat. 175. Part C of the Act is classified generally to subchapter III (§ 1431 et seq.) of chapter 33 of this title. For complete classification of this Act to the Code, see section 1400 of this title and Tables.

Amendments

2009—Subsec. (c). Pub. L. 111–8 amended subsec. (c) generally. Prior to amendment, text read as follows: “The Secretary shall not grant a waiver or modification under this section unless the Secretary determines that the State or local educational agency receiving such waiver or modification will not provide for elementary and secondary education, for the fiscal year under consideration, a smaller percentage of the total revenues available to the State or local educational agency than the amount provided for such purpose in the preceding fiscal year.”

Reference

Citations & Metadata

Citation

20 U.S.C. § 10012

Title 20, Education

Last Updated

Sep 23, 2026

Release point: 119-110