Title 20, EducationRelease 119-110

§7821 Consolidation of State Administrative Funds for Elementary and Secondary Education Programs

Title 20 › CHAPTER 70 — STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY SCHOOLS › SUBCHAPTER VIII — GENERAL PROVISIONS › Part B — Flexibility in the Use of Administrative and Other Funds › § 7821

Last updated Sep 22, 2026|Official source

Summary

A State educational agency may combine the money it gets for administration from two or more covered programs if it can show most of its resources come from non‑Federal sources. It covers any program in this chapter that allows administrative funds and other programs the Secretary designates. The agency must use the combined money to run the included programs. It may also use it for activities that make administration more effective and coordinated, such as linking programs, peer review, statewide administration, sharing model practices, technical help, training audit and monitoring staff, audit resolution efforts, and fiscal support teams that review operations. The agency does not have to keep separate records by program for those administrative costs. The Secretary may review how the funds are used and act as needed. Unspent administrative money can be used for the included programs while it is available. The agency may also combine funds to develop State academic standards and assessments under subchapter I.

Full Legal Text

Title 20, §7821

Education, Source: USLM XML via OLRC

(a)Consolidation of administrative funds
(1)In general
A State educational agency may consolidate the amounts specifically made available to it for State administration under one or more of the programs under paragraph (2) if the State educational agency can demonstrate that the majority of its resources are derived from non-Federal sources.
(2)Applicability
This section applies to any program under this chapter under which funds are authorized to be used for administration, and such other programs as the Secretary may designate.
(b)Use of funds
(1)In general
A State educational agency shall use the amount available under this section for the administration of the programs included in the consolidation under subsection (a).
(2)Additional uses
A State educational agency may also use funds available under this section for administrative activities designed to enhance the effective and coordinated use of funds under programs included in the consolidation under subsection (a), such as—
(A)the coordination of those programs with other Federal and non-Federal programs;
(B)the establishment and operation of peer-review mechanisms under this chapter;
(C)the administration of this subchapter;
(D)the dissemination of information regarding model programs and practices;
(E)technical assistance under any program under this chapter;
(F)State-level activities designed to carry out this subchapter;
(G)training personnel engaged in audit and other monitoring activities;
(H)implementation of the Cooperative Audit Resolution and Oversight Initiative of the Department; and
(I)implementation of fiscal support teams that provide technical fiscal support assistance, which shall include evaluating fiscal, administrative, and staffing functions, and any other key operational function.
(c)Records
A State educational agency that consolidates administrative funds under this section shall not be required to keep separate records, by individual program, to account for costs relating to the administration of programs included in the consolidation under subsection (a).
(d)Review
To determine the effectiveness of State administration under this section, the Secretary may periodically review the performance of State educational agencies in using consolidated administrative funds under this section and take such steps as the Secretary finds appropriate to ensure the effectiveness of that administration.
(e)Unused administrative funds
If a State educational agency does not use all of the funds available to the agency under this section for administration, the agency may use those funds during the applicable period of availability as funds available under one or more programs included in the consolidation under subsection (a).
(f)Consolidation of funds for standards and assessment development
In order to develop challenging State academic standards and assessments, a State educational agency may consolidate the amounts described in subsection (a) for those purposes under subchapter I.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2015—Subsec. (b)(2)(I). Pub. L. 114–95, § 8005, added subpar. (I).

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. § 7821

Title 20, Education

Last Updated

Sep 22, 2026

Release point: 119-110