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Title 20, EducationRelease 119-110

§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

Last updated Sep 23, 2026|Official source

Summary

The Secretary must give each local school agency with an approved application a grant that equals the number of eligible Indian children it serves times the higher of (a) the State’s average spending per student or (b) 80 percent of the average spending per student across all States. If there is not enough money for all awards, each grant is cut by the same percentage. Any eligible applicant or a Bureau of Indian Education (BIE) school with an approved application must get at least $3,000, and the Secretary can raise that minimum to no more than $4,000. Local school agencies can join together as a consortium to get grants. “Average per pupil expenditure” means the State’s total current spending for local districts (plus any direct State spending to run them) from the second fiscal year before the year being calculated, divided by the number of students in average daily attendance that year. The Secretary of the Interior gets a similar payment for students in BIE-run or tribally controlled schools; those schools must apply and are treated like local agencies for this program, with a few special exceptions.

Full Legal Text

Title 20, §7423

Education, Source: USLM XML via OLRC

(a)Amount of grant awards
(1)In general
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)
(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)Reduction
The Secretary shall reduce the amount of each allocation otherwise determined under this section in accordance with subsection (e).
(b)Minimum grant
(1)In general
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)Consortia
Local educational agencies may form a consortium for the purpose of obtaining grants under this subpart.
(3)Increase
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)Definition
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)Schools operated or supported by the Bureau of Indian Education
(1)In general
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)
(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)Special rule
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)Ratable reductions
If the sums appropriated for any fiscal year under 7492(a) 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

Sep 23, 2026

Release point: 119-110