Title 20 — EducationRelease 119-73not60
§7423 Amount of Grants
Title 20 › Chapter 70— STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY SCHOOLS › Subchapter VI— INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION › Part A— Indian Education › Subpart 1— formula grants to local educational agencies › § 7423
Summary
The Secretary must give grants to each local education agency with an approved application. The grant equals the number of eligible Indian children the agency serves multiplied by the larger of two amounts: the State’s average per‑pupil spending or 80% of the average per‑pupil spending of all States. If available money is too little, those amounts are cut proportionally. An eligible entity or a Bureau of Indian Education school with an approved application must get at least $3,000, subject to the money Congress provides. Local agencies can form consortia. The Secretary may raise the $3,000 minimum up to $4,000 if needed. The State average per‑pupil spending is based on total current local and State education spending from the fiscal year two years earlier divided by that year’s total average daily attendance. Schools run by the Interior must apply and are treated like local agencies for most rules.
Full Legal Text
Title 20, §7423
Education — Source: USLM XML via OLRC
(a)(1)Except as provided in subsection (b) and paragraph (2), the Secretary shall allocate to each local educational agency that has an approved application under this subpart an amount equal to the product of—
(A)the number of Indian children who are eligible under section 7427 of this title and served by such agency; and
(B)the greater of—
(i)the average per pupil expenditure of the State in which such agency is located; or
(ii)80 percent of the average per pupil expenditure of all the States.
(2)The Secretary shall reduce the amount of each allocation otherwise determined under this section in accordance with subsection (e).
(b)(1)Notwithstanding subsection (e), an entity that is eligible for a grant under section 7422 of this title, and a school that is operated or supported by the Bureau of Indian Education that is eligible for a grant under subsection (d), that submits an application that is approved by the Secretary, shall, subject to appropriations, receive a grant under this subpart in an amount that is not less than $3,000.
(2)Local educational agencies may form a consortium for the purpose of obtaining grants under this subpart.
(3)The Secretary may increase the minimum grant under paragraph (1) to not more than $4,000 for all grantees if the Secretary determines such increase is necessary to ensure the quality of the programs provided.
(c)For the purpose of this section, the term “average per pupil expenditure”, used with respect to a State, means an amount equal to—
(1)the sum of the aggregate current expenditures of all the local educational agencies in the State, plus any direct current expenditures by the State for the operation of such agencies, without regard to the sources of funds from which such local or State expenditures were made, during the second fiscal year preceding the fiscal year for which the computation is made; divided by
(2)the aggregate number of children who were included in average daily attendance for whom such agencies provided free public education during such preceding fiscal year.
(d)(1)Subject to subsection (e), in addition to the grants awarded under subsection (a), the Secretary shall allocate to the Secretary of the Interior an amount equal to the product of—
(A)the total number of Indian children enrolled in schools that are operated by—
(i)the Bureau of Indian Education; or
(ii)an Indian tribe, or an organization controlled or sanctioned by an Indian tribal government, for the children of that tribe under a contract with, or grant from, the Department of the Interior under the Indian Self-Determination Act [25 U.S.C. 5321 et seq.] or the Tribally Controlled Schools Act of 1988 [25 U.S.C. 2501 et seq.]; and
(B)the greater of—
(i)the average per pupil expenditure of the State in which the school is located; or
(ii)80 percent of the average per pupil expenditure of all the States.
(2)Any school described in paragraph (1)(A) that wishes to receive an allocation under this subpart shall submit an application in accordance with section 7424 of this title, and shall otherwise be treated as a local educational agency for the purpose of this subpart, except that such school shall not be subject to section 7424(c)(4) of this title, section 7428(c) of this title, or section 7429 of this title.
(e)If the sums appropriated for any fiscal year under 7492(a) 11 So in original. Probably should be preceded by “section”. of this title are insufficient to pay in full the amounts determined for local educational agencies under subsection (a)(1) and for the Secretary of the Interior under subsection (d), each of those amounts shall be ratably reduced.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
The Indian Self-Determination Act, referred to in subsec. (d)(1)(A)(ii), is title I of Pub. L. 93–638, Jan. 4, 1975, 88 Stat. 2206, which is classified principally to subchapter I (§ 5321 et seq.) of chapter 46 of Title 25, Indians. For complete classification of this Act to the Code, see
Short Title
note set out under section 5301 of Title 25 and Tables. The Tribally Controlled Schools Act of 1988, referred to in subsec. (d)(1)(A)(ii), is part B (§ 5201–5212) of title V of Pub. L. 100–297, Apr. 28, 1988, 102 Stat. 385, which is classified generally to chapter 27 (§ 2501 et seq.) of Title 25, Indians. For complete classification of this Act to the Code, see
Short Title
note set out under section 2501 of Title 25 and Tables.
Prior Provisions
A prior section 7423, Pub. L. 89–10, title VII, § 7113, as added Pub. L. 103–382, title I, § 101, Oct. 20, 1994, 108 Stat. 3720, related to program enhancement projects, prior to the general amendment of former subchapter VII of this chapter by Pub. L. 107–110. A prior section 6113 of Pub. L. 89–10 was classified to section 7301b of this title, prior to repeal by Pub. L. 114–95.
Amendments
2015—Subsec. (a)(1)(A). Pub. L. 114–95, § 6001(b)(3)(A), made technical amendment to reference in original act which appears in text as reference to section 7427 of this title. Subsec. (b)(1). Pub. L. 114–95, § 6002(e)(1), substituted “Bureau of Indian Education” for “Bureau of Indian Affairs”. Pub. L. 114–95, § 6001(b)(3)(B), made technical amendment to reference in original act which appears in text as reference to section 7422 of this title. Subsec. (d). Pub. L. 114–95, § 6002(e)(2)(A), substituted “Indian Education” for “Indian Affairs” in heading. Subsec. (d)(1)(A)(i). Pub. L. 114–95, § 6002(e)(2)(B), substituted “Bureau of Indian Education” for “Bureau of Indian Affairs”. Subsec. (d)(2). Pub. L. 114–95, § 6001(b)(3)(C), made technical amendment to references in original act which appear in text as references to section 7424, 7424(c)(4), 7428(c), and 7429 of this title. Subsec. (e). Pub. L. 114–95, § 6001(b)(3)(D), substituted “7492(a) of this title” for “section 7492(a) of this title”.
Statutory Notes and Related Subsidiaries
Effective Date
of 2015 AmendmentAmendment by Pub. L. 114–95 effective Dec. 10, 2015, except with respect to certain noncompetitive programs and competitive programs, see section 5 of Pub. L. 114–95, set out as a note under section 6301 of this title.
Reference
Citations & Metadata
Citation
20 U.S.C. § 7423
Title 20 — Education
Last Updated
Apr 5, 2026
Release point: 119-73not60