Title 20 › Chapter 33— EDUCATION OF INDIVIDUALS WITH DISABILITIES › Subchapter II— ASSISTANCE FOR EDUCATION OF ALL CHILDREN WITH DISABILITIES › § 1419
The U.S. Secretary of Education must give grants to help states pay for special education and related services for children with disabilities ages 3 through 5. States may also use the money for 2‑year‑olds who will turn 3 during the school year. To get a grant, a state must already qualify under other federal rules and must offer a free and suitable public education to all children with disabilities ages 3–5 who live in the state. Each year the Secretary divides the money among states using set rules that rely on how much was given in fiscal year 1997, current child population counts, and poverty data. If total funding is the same or higher than the prior year, each state gets at least what it received in 1997, then most of any extra money is split so 85% is based on the number of children ages 3–5 and 15% is based on the number of those children living in poverty. There are rules that protect minimum amounts and limit how much a state’s grant can rise, using formulas that refer to 1997 amounts and specific percentage limits (including 1.5%, 90% of the percentage increase, and one‑third of one percent). If funding falls, other specified formulas determine allocations, and if money is short, allocations are reduced proportionally. A state may keep a limited share for state administration and services. The Secretary reports a yearly amount equal to 25% of the state’s 1997 grant, adjusted each year by the smaller of the state’s grant increase or the Consumer Price Index. Up to 20% of that reserve may be used for administration. The rest can be used for support services, direct services, meeting state performance goals, up to 1% for a coordinated services system, early intervention tied to school readiness, and continued case management for some families. States must pass the remaining funds to eligible local education agencies using a base amount tied to 1997 and then an 85/15 split based on school enrollment and poverty. If a local agency already provides required services with state and local money, the state may move unused federal funds to other local agencies that need them. "State" means the 50 States, the District of Columbia, and Puerto Rico. Funds are authorized as needed.
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Citation
20 U.S.C. § 1419
Title 20 — Education
Last Updated
Apr 5, 2026
Release point: 119-73not60