§6338 — Title 20 Education | U.S. Code

§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 Apr 5, 2026|Official source

Summary

If a state education agency finds a local education agency cannot or will not meet the special education needs of children living in institutions for neglected children (see section 6333(c)(1)(B)), and the state takes over responsibility, the state gets the part of that local agency’s grant under sections 6333, 6334, 6335, and 6337 that is for those children. If the state does not take over, any other state or local public agency that does take over gets that part instead. The state may move grant money among local agencies when two or more serve the same area, when one district educates children who live in another district, or when districts merge, are created, or change boundaries. If a state finds a local agency will not use all of its grant, the state must offer the extra funds to other local agencies in the state that need more money, using rules the state sets.

Title 20, §6338

Education — Source: USLM XML via OLRC

(a)(1)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)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)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)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.

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.