Title 20, EducationRelease 119-110

§6338 Special Allocation Procedures

Title 20 › CHAPTER 70 — STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY SCHOOLS › SUBCHAPTER I — IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED › Part A — Improving Basic Programs Operated by Local Educational Agencies › subpart 2 — allocations › § 6338

Last updated Sep 22, 2026|Official source

Summary

State education agencies must take the share of a local school district’s federal grants (under sections 6333, 6334, 6335, and 6337) that is meant for children living in institutions for neglected children when a district cannot or will not meet those children’s special education needs and the state agrees to take responsibility. If the state does not take responsibility, another state or local public agency that does must get that money. The state can also split or move grant money among districts when areas overlap, when one district teaches students from another district, when district boundaries change, or when a district will not use all its funds.

Full Legal Text

Title 20, §6338

Education, Source: USLM XML via OLRC

(a)Allocations for neglected children
(1)In general
If a State educational agency determines that a local educational agency in the State is unable or unwilling to provide for the special educational needs of children who are living in institutions for neglected children as described in section 6333(c)(1)(B) of this title, the State educational agency shall, if such agency assumes responsibility for the special educational needs of such children, receive the portion of such local educational agency’s allocation under section 6333, 6334, 6335, and 6337 of this title that is attributable to such children.
(2)Special rule
If the State educational agency does not assume such responsibility, any other State or local public agency that does assume such responsibility shall receive that portion of the local educational agency’s allocation.
(b)Allocations among local educational agencies
The State educational agency may allocate the amounts of grants under section 6333, 6334, 6335, and 6337 of this title among the affected local educational agencies—
(1)if two or more local educational agencies serve, in whole or in part, the same geographical area;
(2)if a local educational agency provides free public education for children who reside in the school district of another local educational agency; or
(3)to reflect the merger, creation, or change of boundaries of one or more local educational agencies.
(c)Reallocation
If a State educational agency determines that the amount of a grant a local educational agency would receive under section 6333, 6334, 6335, and 6337 of this title is more than such local educational agency will use, the State educational agency shall make the excess amount available to other local educational agencies in the State that need additional funds in accordance with criteria established by the State educational agency.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 6338, Pub. L. 89–10, title I, § 1127, as added Pub. L. 103–382, title I, § 101, Oct. 20, 1994, 108 Stat. 3577, related to carryover and waiver, prior to the general amendment of this subchapter by Pub. L. 107–110. A prior section 1126 of Pub. L. 89–10 was classified to section 6337 of this title, prior to the general amendment of this subchapter by Pub. L. 107–110.

Reference

Citations & Metadata

Citation

20 U.S.C. § 6338

Title 20, Education

Last Updated

Sep 22, 2026

Release point: 119-110