SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Forty Percent Funding of IDEA in 
Four Years Act'' or the ``Forty-in-Four Act''.

SEC. 2. FINDINGS; PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) The Federal Government appropriately requires States 
        that accept funds under the Individuals with Disabilities 
        Education Act (20 U.S.C. 1400 et seq.) to make available a free 
        appropriate public education to all children with disabilities.
            (2) While Congress committed to contribute up to 40 percent 
        of the national average per pupil expenditure to assist States 
        and local educational agencies with the excess costs of 
        educating children with disabilities, the Federal Government 
        has never contributed more than 14.9 percent of the national 
        average per pupil expenditure under the Individuals with 
        Disabilities Education Act.
            (3) If Congress fully funded the Federal Government's 
        obligation under the Individuals with Disabilities Education 
        Act, States and local educational agencies would have 
        significantly greater resources to reduce class size, improve 
        school facilities, provide local tax relief, and otherwise 
        redirect resources to areas based on local need.
    (b) Purpose.--The purpose of this Act is to provide by fiscal year 
2005 40 percent of the national current average per pupil expenditure 
to assist States and local educational agencies with the excess costs 
of educating children with disabilities under part B of the Individuals 
with Disabilities Education Act (20 U.S.C. 1411 et seq.)

SEC. 3. AMOUNT OF GRANT FOR STATES UNDER PART B OF THE INDIVIDUALS WITH 
              DISABILITIES EDUCATION ACT.

    (a) In General.--Section 611(a) of the Individuals with 
Disabilities Education Act (20 U.S.C. 1411(a)) is amended--
            (1) by striking paragraph (2); and
            (2) by inserting after paragraph (1) the following:
            ``(2) Minimum amounts.--The minimum amount of the grant a 
        State is entitled to receive under this section is--
                    ``(A) the number of children with disabilities in 
                the State who are receiving special education and 
                related services--
                            ``(i) aged 3 through 5 if the State is 
                        eligible for a grant under section 619; and
                            ``(ii) aged 6 through 21; multiplied by
                    ``(B) the following percentages of the average 
                current per-pupil expenditure in public elementary and 
                secondary schools in the United States for the 
                following fiscal years:
                            ``(i) 20 percent for fiscal year 2002.
                            ``(ii) 25 percent for fiscal year 2003.
                            ``(iii) 30 percent for fiscal year 2004.
                            ``(iv) 40 percent for fiscal year 2005 and 
                        each subsequent fiscal year.
            ``(3) No individual entitlement.--Paragraph (2) shall not 
        be interpreted to entitle any individual to assistance under 
        any State program, project, or activity funded under this 
        part.''.
    (b) Conforming Amendments.--(1) Section 611 of the Individuals with 
Disabilities Education Act (20 U.S.C. 1411) is amended by striking 
subsection (j).
    (2) Section 611 of the Individuals with Disabilities Education Act 
(20 U.S.C. 1411), as amended by paragraph (1), is further amended--
            (A) in subsection (b)(1), by striking ``From the amount 
        appropriated for any fiscal year under subsection (j), the 
        Secretary shall reserve not more than one percent, which shall 
        be used'' and inserting ``From the amount available for any 
        fiscal year to carry out this part (other than section 619), 
        the Secretary shall use not more than one percent'';
            (B) in subsection (c), by striking ``From the amount 
        appropriated for any fiscal year under subsection (j), the 
        Secretary shall reserve'' and inserting ``From the amount 
        available for any fiscal year to carry out this part (other 
        than section 619), the Secretary shall use'';
            (C) in subsection (d)--
                    (i) in paragraph (1)--
                            (I) by striking ``(1) In general.--''; and
                            (II) by striking ``paragraph (2) or 
                        subsection (e), as the case may be'' and 
                        inserting ``subsection (e)''; and
                    (ii) by striking paragraph (2);
            (D) in subsection (e)--
                    (i) in the heading, by striking ``Permanent'';
                    (ii) in paragraph (1)--
                            (I) by striking ``subsection (d)(1)'' and 
                        inserting ``subsection (d)''; and
                            (II) by inserting after ``subsection (j)'' 
                        the following: ``(as such subsection was in 
                        effect on the day before the date of the 
                        enactment of the Forty Percent Funding of IDEA 
                        in Four Years Act)''; and
                    (iii) in paragraph (3)(B)--
                            (I) in clause (ii)--
                                    (aa) in subclause (I)(bb), by 
                                striking ``amount appropriated under 
                                subsection (j)'' and inserting ``amount 
                                available to carry out this part (other 
                                than section 619)'';
                                    (bb) in subclause (II)(bb), by 
                                striking ``appropriated'' and inserting 
                                ``available''; and
                                    (cc) in subclause (III)(bb), by 
                                striking ``appropriated'' and inserting 
                                ``available''; and
                            (II) in clause (iii)(II), by striking 
                        ``appropriated'' and inserting ``available'';
            (E) in subsection (g)--
                    (i) in paragraph (2)--
                            (I) by striking subparagraph (A);
                            (II) by striking ``(B) Permanent 
                        procedure.--'';
                            (III) by redesignating clauses (i) and (ii) 
                        and subclauses (I) and (II) as subparagraphs 
                        (A) and (B) and clauses (i) and (ii), 
                        respectively; and
                            (IV) in subparagraph (B) (as redesignated), 
                        by striking ``clause (i)'' and inserting 
                        ``subparagraph (A)''; and
                    (ii) in paragraph (3)(A)--
                            (I) in clause (i)(I), by striking 
                        ``appropriated'' and inserting ``available'';
                            (II) in clause (ii), by striking 
                        ``appropriated'' and inserting ``available''; 
                        and
            (F) in subsection (i)(3)(A), by striking ``appropriated 
        under subsection (j)'' and inserting ``available to carry out 
        this part (other than section 619)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2001.
Forty Percent Funding of IDEA in Four Years Act - Forty-in-Four Act - Amends the Individuals with Disabilities Education Act (IDEA) to require specified minimum levels of Federal grant payments to States for assistance for education of all children with disabilities in order to increase funding under the Act, by five percent increments per fiscal year, from 20 percent of the national current average for per pupil expenditure in FY 2002 to 40 percent in FY 2005 and afterwards.
To amend the Individuals with Disabilities Education Act to provide full funding for assistance for education of all children with disabilities.