From funds appropriated under section 5883 of this title, the Secretary—
(1) shall reserve a total of one percent to provide assistance, in amounts determined by the Secretary—
(A) to the outlying areas;
(B) to the Secretary of the Interior to benefit Indian students in schools operated or funded by the Bureau; and
(C) to the Alaska Federation of Natives in cooperation with the Alaska Native Education Council to benefit Alaska Native students; and
(2) may reserve a total of not more than 5 percent for—
(A) national leadership activities under sections 5893 and 5894 of this title; and
(B) the costs of peer review of State improvement plans and applications under this subchapter.
From the amount appropriated under section 5883 of this title and not reserved under subsection (a) of this section in each fiscal year the Secretary shall make allotments to State educational agencies as follows:
(1) 50 percent of such amount shall be allocated in accordance with the relative amounts each State would have received under chapter 1 1 of title I of the Elementary and Secondary Education Act of 1965 for the preceding fiscal year if funds under such chapter in such preceding fiscal year were not reserved for the outlying areas.
(2) 50 percent of such amount shall be allocated in accordance with the relative amounts each State would have received under part A 1 of chapter 2 of title I of the Elementary and Secondary Education Act of 1965 for the preceding fiscal year if funds under such chapter in such preceding fiscal year were not reserved for the outlying areas.
If the Secretary determines that any amount of a State educational agency's allotment for any fiscal year under subsection (b) of this section will not be needed for such fiscal year by the State, the Secretary shall reallot such amount to other State educational agencies that need additional funds, in such manner as the Secretary determines is appropriate.
Each recipient of funds under this subchapter, in utilizing the proceeds of an allotment received under this subchapter, shall maintain the expenditures of such recipient for the activities assisted under this subchapter at a level equal to not less than the level of such expenditures maintained by such recipient for the fiscal year preceding the fiscal year for which such allotment is received, except that the Secretary may reduce, temporarily or permanently, the level of expenditures required by this subsection if the Secretary determines that such recipient has justifiable reasons for a reduction in the level of expenditures required by this subsection.
Notwithstanding subsection (c) of this section, if a State educational agency was not participating in the program under this section as of October 20, 1995, and the State educational agency approves, the Secretary shall use all or a portion of the allotment that the State would have received under this section for a fiscal year to award grants to local educational agencies in the State that have approved applications under paragraph (2) for such fiscal year.
Any local educational agency that desires to receive a grant under this subsection shall submit an application to the Secretary that is consistent with the provisions of this chapter and shall notify the State educational agency of such application in accordance with paragraph (1). The Secretary may establish a deadline for the submission of such applications.
The Secretary may use the student enrollment of a local educational agency or other factors as a basis for awarding grants under this subsection.
(Pub. L. 103–227, title III, §304, Mar. 31, 1994, 108 Stat. 158; Pub. L. 104–134, title I, §101(d) [title VII, §§703(a)(8), 704], Apr. 26, 1996, 110 Stat. 1321–211, 1321–252, 1321–255; renumbered title I, Pub. L. 104–140, §1(a), May 2, 1996, 110 Stat. 1327.)
Chapter 1 and part A of chapter 2 of title I of the Elementary and Secondary Education Act of 1965, referred to in subsec. (b), are chapter 1 and part A of chapter 2 of title I of Pub. L. 89–10, as added by Pub. L. 100–297, title I, §1001, Apr. 28, 1988, 102 Stat. 140, 204, which were classified generally to division 1 (§2701 et seq.) and part A (§2921 et seq.) of division 2, respectively, of subchapter I of chapter 47 of this title prior to the general amendment of Pub. L. 89–10 by Pub. L. 103–382, title I, §101, Oct. 20, 1994, 108 Stat. 3519.
1996—Subsec. (a)(2). Pub. L. 104–134, §101(d) [title VII, §703(a)(8)], inserted “and” at end of subpar. (A), substituted period for “; and” in subpar. (B), and struck out subpar. (C) which read as follows: “evaluation activities under section 5851 of this title.”
Subsec. (e). Pub. L. 104–134, §101(d) [title VII, §704], added subsec. (e).
This section is referred to in sections 5886, 5887, 5893, 5894, 5895, 5897 of this title.