§1411 Authorization; Allotment; Use of Funds; Authorization of Appropriations

Summary

Provides federal money to help States, outlying areas, freely associated States (the Marshall Islands, Federated States of Micronesia, and Palau), and the Secretary of the Interior pay for special education and related services for children with disabilities. For fiscal years 2005–2006, a State’s maximum grant is the number of children with disabilities (ages 3–5 if eligible under section 1419, and ages 6–21) times 40 percent of the U.S. average per‑pupil spending. For fiscal year 2007 and later, the grant uses the number of children served in 2004–2005 (same age rules) times 40 percent, adjusted by an annual change rate that weights the State’s population 85 percent and children in poverty 15 percent. Up to 1 percent of yearly appropriations may be reserved for outlying areas and freely associated States, 1.226 percent is reserved for the Secretary of the Interior, and the Secretary of Education may reserve up to 0.5 percent (no more than $25,000,000, adjusted by CPI) for technical help. After those reservations, the rest is divided to States using a base amount from fiscal year 1999, then 85 percent of remaining funds based on each State’s share of children aged 3–21 and 15 percent based on children in poverty. No State can get less than its prior year amount, and minimums and maximums are set by formulas (including 1/3 of 1 percent, 1.5 percent, and 90 percent rules); if money is short, allocations are cut proportionally. States may reserve money for administration (up to what they could in 2004 or $800,000 adjusted by CPI, whichever is more; outlying areas may reserve up to 5% or $35,000) and for State‑level activities (generally up to 10%, 10.5% for some small States, with FY2007+ CPI adjustments). Reserved funds must pay for monitoring, enforcement, and mediation costs and may be used for training, technology, behavioral supports, transition services, and similar supports. States may set up a high‑cost fund by reserving up to 10% of State‑level reserves (no more than 5% of that for cost‑sharing), with a plan due within 90 days, public 30 days before school starts, and a rule that a “high need” child’s costs exceed three times the State’s average per‑pupil spending; payments from that fund may only cover direct special education costs in a child’s IEP and not legal fees or Medicaid‑eligible costs. States must give remaining funds to local educational agencies using a base payment tied to 1999 rules and then an 85/15 split of remaining funds by enrollment and poverty. The Secretary of Education gives the Interior amounts to help BIA schools (80% of the Interior allotment for ages 5–21, paid 80% by July 1 and 20% by September 30); 20% of the Interior allotment is set aside for tribes to serve children ages 3–5, with rules on use, reporting, and no administrative use allowed. The law authorizes specific yearly funding amounts for FY2005–FY2011 and “such sums as may be necessary” for FY2012 and after.