SECTION 1. SHORT TITLE.

    This Act may be cited as the ``IDEA High Cost Pool Funding Act''.

SEC. 2. ADDITIONAL AMOUNTS FOR HIGH COST FUNDS.

    Section 611(e)(3) of the Individuals with Disabilities Education 
Act (20 U.S.C. 1411(e)(3)) is amended by adding at the end the 
following:
                    ``(J) Additional amounts for high cost funds.--
                            ``(i) In general.--From the funds 
                        appropriated to carry out this subparagraph, 
                        the Secretary shall award grants to each State 
                        (without regard to whether the State has 
                        reserved funds under subparagraph (A)(i)), to 
                        carry out the activities described in 
                        subparagraph (A)(i) in accordance with the 
                        State plan published pursuant to subparagraph 
                        (C) (as amended or developed pursuant to clause 
                        (v) of this subparagraph), and the other terms 
                        and conditions of this paragraph with respect 
                        to funds reserved under subparagraph (A)(i), 
                        except that a State, to establish and support a 
                        high cost fund, may not use more than--
                                    ``(I) 5 percent of the amount of a 
                                grant received under this subparagraph 
                                in the first year; and
                                    ``(II) 2 percent of such amount in 
                                each subsequent year.
                            ``(ii) Grant amount.--
                                    ``(I) In general.--A grant awarded 
                                to a State under this subparagraph 
                                shall be in an amount equal to 5 
                                percent of the State's allocation under 
                                subsection (d) for the fiscal year for 
                                which the grant is awarded, except that 
                                no State shall receive a grant amount 
                                that is less than 5 percent of the 
                                State's allocation under subsection (d) 
                                for fiscal year 2010.
                                    ``(II) Ratable reduction.--If the 
                                amounts appropriated for any fiscal 
                                year to carry out this subparagraph are 
                                insufficient to pay the full amounts 
                                that all States are eligible to receive 
                                under this subparagraph for such year, 
                                then the Secretary shall ratably reduce 
                                the payments to all such States for 
                                such year.
                            ``(iii) Reallotment.--If a State does not 
                        apply for a grant this subparagraph for any 
                        fiscal year, or if the State does not meet the 
                        requirements of this subparagraph, the 
                        Secretary shall reallot such amount to the 
                        remaining States in accordance with this 
                        subparagraph.
                            ``(iv) Matching funds.--To receive a grant 
                        under this subparagraph, a State shall 
                        provide--
                                    ``(I) non-Federal matching funds 
                                for the cost of the activities for 
                                which the grant is awarded in an amount 
                                that is not less than 25 percent of the 
                                amount of the grant; or
                                    ``(II) an assurance to the 
                                Secretary that the State will use an 
                                amount of non-Federal funds that is not 
                                less than 25 percent of the amount of 
                                the grant to carry out activities 
                                similar to the activities described in 
                                subparagraph (A)(i) during the grant 
                                period of the grant awarded to the 
                                State.
                            ``(v) State plans.--To receive a grant 
                        under this subparagraph, a State shall--
                                    ``(I) in the case of a State that 
                                has published a State plan pursuant to 
                                subparagraph (C), amend the State plan 
                                to include any information that the 
                                Secretary may require for the State to 
                                receive a grant under this 
                                subparagraph; and
                                    ``(II) in the case of a State that 
                                has not published a State plan pursuant 
                                to subparagraph (C), develop and 
                                publish a State plan pursuant to 
                                subparagraph (C), which includes any 
                                information that the Secretary may 
                                require for the State to receive a 
                                grant under this subparagraph.
                            ``(vi) Waiver.--A State desiring a grant 
                        under this subparagraph to use in accordance 
                        with clause (i), but requiring a waiver of any 
                        provision of this subparagraph due to an aspect 
                        of State governmental structure that is 
                        incompatible with this subparagraph, may 
                        request such a waiver as part of its State plan 
                        under subparagraph (C).
                    ``(K) Annual reporting.--Not later than 1 year 
                after the first grant is awarded under subparagraph 
                (J), and annually thereafter, the Secretary shall 
                submit to the Committee on Education and the Workforce 
                of the House of Representatives and the Committee on 
                Health, Education, Labor, and Pensions of the Senate, a 
                report on the effectiveness of disbursements made from 
                high cost funds for the most recent fiscal year, which 
                shall include--
                            ``(i) the amount of grant funds awarded to 
                        each State under subparagraph (J);
                            ``(ii) the number of States that received a 
                        waiver pursuant to subparagraph (J)(vi);
                            ``(iii) an identification of each State 
                        that did not receive a grant under subparagraph 
                        (J), but made disbursements from a high cost 
                        fund established under subparagraph (A)(i) 
                        solely using the funds the State reserved 
                        pursuant to subparagraph (A)(i); and
                            ``(iv) an identification of each State that 
                        did not receive a grant under subparagraph (J), 
                        but made disbursements from a high cost fund 
                        similar to a high cost fund established under 
                        subparagraph (A)(i) solely using non-Federal 
                        funds.''.
IDEA High Cost Pool Funding Act This bill amends the Individuals with Disabilities Act (IDEA) to establish additional grants for the purpose of assisting&nbsp;states in addressing the needs of high-need children with disabilities. The bill establishes limitations on grant amounts and how grant funds may be used. To be eligible to receive such a grant, a state shall: (1) provide matching funds equal to at least 25% of the grant amount; and (2) provide any information that the Department of Education may require, as specified by the bill. A state may request a waiver of certain grant requirements that are incompatible with aspects of the state's governmental structure.
IDEA High Cost Pool Funding Act