§7901 — Title 20 Education | U.S. Code

Summary

A local education agency can get federal program money only if the state finds that spending last year was at least 90% of spending two years earlier. The state checks either spending per student or total spending. If the agency falls below 90% on both measures and also missed the rule in one or more of the five fiscal years before that, the state must cut its federal funds by the same percent it fell short, using the measure that helps the agency most. The smaller amount cannot be used to lower future requirements. The Secretary of Education can waive the rule for major disasters, agency reorganization, or a sudden big drop in funding.

Title 20, §7901

Education — Source: USLM XML via OLRC

(a)A local educational agency may receive funds under a covered program for any fiscal year only if the State educational agency finds that either the combined fiscal effort per student or the aggregate expenditures of the agency and the State with respect to the provision of free public education by the agency for the preceding fiscal year was not less than 90 percent of the combined fiscal effort or aggregate expenditures for the second preceding fiscal year, subject to the requirements of subsection (b).

(b)(1)The State educational agency shall reduce the amount of the allocation of funds under a covered program in any fiscal year in the exact proportion by which a local educational agency fails to meet the requirement of subsection (a) of this section by falling below 90 percent of both the combined fiscal effort per student and aggregate expenditures (using the measure most favorable to the local agency), if such local educational agency has also failed to meet such requirement (as determined using the measure most favorable to the local agency) for 1 or more of the 5 immediately preceding fiscal years.

(2)No such lesser amount shall be used for computing the effort required under subsection (a) of this section for subsequent years.

(c)The Secretary may waive the requirements of this section if the Secretary determines that a waiver would be equitable due to—

(1)exceptional or uncontrollable circumstances, such as a natural disaster or a change in the organizational structure of the local educational agency; or

(2)a precipitous decline in the financial resources of the local educational agency.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 7901, Pub. L. 89–10, title IX, § 9201, as added Pub. L. 103–382, title I, § 101, Oct. 20, 1994, 108 Stat. 3794, set forth

Short Title

of the Native Hawaiian Education Act, prior to the general amendment of former subchapter IX of this chapter by Pub. L. 107–110.

Amendments

2015—Subsec. (a). Pub. L. 114–95, § 8019(1), inserted “, subject to the requirements of subsection (b)” after “for the second preceding fiscal year”. Subsec. (b)(1). Pub. L. 114–95, § 8019(2), inserted before period at end “, if such local educational agency has also failed to meet such requirement (as determined using the measure most favorable to the local agency) for 1 or more of the 5 immediately preceding fiscal years”. Subsec. (c)(1). Pub. L. 114–95, § 8019(3), inserted “or a change in the organizational structure of the local educational agency” after “such as a natural disaster”.

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.

§7901 Maintenance of Effort