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Title 20, EducationRelease 119-110

§1231b–2 Review of Applications

Title 20 › CHAPTER 31 — GENERAL PROVISIONS CONCERNING EDUCATION › SUBCHAPTER III — GENERAL REQUIREMENTS AND CONDITIONS CONCERNING OPERATION AND ADMINISTRATION OF EDUCATION PROGRAMS: GENERAL AUTHORITY OF SECRETARY › Part 1 — General Authority › § 1231b–2

Last updated Sep 22, 2026|Official source

Summary

If a person or group applying for or getting federal education money is hurt by a final action of the State education agency in one of four ways—rejecting or not approving an application or program, not giving required funds, ordering repayment after an audit, or stopping program funding—they can ask for a hearing within 30 days. The State agency must hold a formal hearing with an official record within 30 days of the request and must give a written decision with reasons within 10 days after the hearing. If the agency finds its action broke federal or state law or the program rules, it must undo the action. If the agency does not undo the action, the person or group can appeal to the Secretary within 20 days of being told the agency’s decision. If the Secretary finds the State agency broke federal law or program rules, the Secretary will order the State agency to fix it. The State agency’s factual findings stand if they are supported by substantial evidence. The Secretary can issue temporary orders during the appeal. The State agency must let applicants or recipients see all records about the review or appeal at reasonable times and places, including records about other applicants. If the State agency refuses to follow this law or a Secretary order, the Secretary must immediately stop the federal help for that program or take other steps to make the agency comply.

Full Legal Text

Title 20, §1231b–2

Education, Source: USLM XML via OLRC

(a)Persons aggrieved; final State educational agency actions; hearing; ruling and reasons for ruling; rescission of final actions
In the case of any applicable program under which financial assistance is provided to (or through) a State educational agency to be expended in accordance with a State plan approved by the Secretary, any applicant or recipient aggrieved by the final action of the State educational agency, and alleging a violation of State or Federal law, rules, regulations, or guidelines governing the applicable program, in (1) disapproving or failing to approve its application or program in whole or part, (2) failing to provide funds in amounts in accord with the requirements of laws and regulations, (3) ordering, in accordance with a final State audit resolution determination, the repayment of misspent or misapplied Federal funds, or (4) terminating further assistance for an approved program, may within thirty days request a hearing. Within thirty days after it receives such a request, the State educational agency shall hold a hearing on the record and shall review such final action. No later than ten days after the hearing, the State educational agency shall issue its written ruling, including reasons therefor. If it determines such final action was contrary to Federal or State law, or the rules, regulations, and guidelines governing such applicable program, it shall rescind such final action.
(b)Appeals to Secretary; persons aggrieved; notice; orders prescribing appropriate agency actions; finality of agency fact findings; interim orders pending appeal or review
Any applicant or recipient aggrieved by the failure of a State educational agency to rescind its final action after a review under subsection (a) may appeal such action to the Secretary. An appeal under this subsection may be taken only if notice of such appeal is filed with the Secretary within twenty days after the applicant or recipient has been notified by the State educational agency of the results of its review under subsection (a). If, on such appeal, the Secretary determines the final action of the State educational agency was contrary to Federal law, or the rules, regulations, and guidelines governing the applicable program, he shall issue an order to the State educational agency prescribing appropriate action to be taken by such agency. On such appeal, findings of fact of the State educational agency, if supported by substantial evidence, shall be final. The Secretary may also issue such interim orders to State educational agencies as he may deem necessary and appropriate pending appeal or review.
(c)Records; availability
Each State educational agency shall make available at reasonable times and places to each applicant or recipient under a program to which this section applies all records of such agency pertaining to any review or appeal such applicant or recipient is conducting under this section, including records of other applicants.
(d)Termination of assistance for noncompliance with provisions or orders
If any State educational agency fails or refuses to comply with any provision of this section, or with any order of the Secretary under subsection (b), the Secretary shall forthwith terminate all assistance to the State educational agency under the applicable program affected or issue such other orders as the Secretary may deem appropriate to achieve such compliance.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 432 of Pub. L. 90–247 was renumbered section 438, and is classified to section 1232a of this title. Another prior section 432 of Pub. L. 90–247 was renumbered section 442, and was classified to section 1233a of this title prior to repeal by Pub. L. 103–382.

Amendments

1994—Subsec. (a). Pub. L. 103–382, § 243(1)(C), (D), inserted comma after “the hearing” in third sentence and substituted “guidelines governing such applicable program, it” for “guidelines, governing such applicable program it” in fourth sentence. Pub. L. 103–382, § 243(1)(A), (B), substituted “Secretary, any applicant” for “Commissioner, and in the case of the program provided for in title I of the Elementary and Secondary Education Act of 1965, any applicant”. Subsec. (b). Pub. L. 103–382, § 243(2), substituted “Secretary” for “Commissioner” wherever appearing. Subsec. (d). Pub. L. 103–382, § 243(3), substituted “Secretary under” for “Commissioner under” and “Secretary shall” for “Commissioner shall” and inserted before period at end “or issue such other orders as the Secretary may deem appropriate to achieve such compliance”. 1978—Subsec. (a). Pub. L. 95–561 added cl. (3) relating to the ordering, in accordance with a final State audit resolution determination, the repayment of misspent or misapplied Federal funds, and redesignated former cl. (3) as (4).

Statutory Notes and Related Subsidiaries

Effective Date

of 1978 AmendmentAmendment by Pub. L. 95–561 effective Oct. 1, 1978, see section 1530(a) of Pub. L. 95–561, set out as a note under section 1221e–3 of this title.

Effective Date

Pub. L. 93–380, title V, § 508(b), Aug. 21, 1974, 88 Stat. 566, provided that: “The

Amendments

made by subsection (a) [enacting this section and section 1231b–1 of this title] shall be effective on the date of enactment of this Act [Aug. 21, 1974].”

Reference

Citations & Metadata

Citation

20 U.S.C. § 1231b–2

Title 20, Education

Last Updated

Sep 22, 2026

Release point: 119-110