### §7351. Program authorized

#### (a) Grants to States

#### (1) In general

From amounts appropriated under section 7355c of this title for this subpart for a fiscal year that are not reserved under subsection (c), the Secretary shall award grants (from allotments made under paragraph (2)) for the fiscal year to State educational agencies that have applications submitted under section 7351b of this title approved to enable the State educational agencies to award grants to eligible local educational agencies for local authorized activities described in section 7351a(a) of this title.

#### (2) Allotment

From amounts described in paragraph (1) for a fiscal year, the Secretary shall allot to each State educational agency for that fiscal year an amount that bears the same ratio to those amounts as the number of students in average daily attendance served by eligible local educational agencies in the State for that fiscal year bears to the number of all such students served by eligible local educational agencies in all States for that fiscal year.

#### (3) Specially qualified agencies

#### (A) Eligibility and application

If a State educational agency elects not to participate in the program under this subpart or does not have an application submitted under section 7351b of this title approved, a specially qualified agency in such State desiring a grant under this subpart may submit an application under such section directly to the Secretary to receive an award under this subpart.

#### (B) Direct awards

The Secretary may award, on a competitive basis or by formula, the amount the State educational agency is eligible to receive under paragraph (2) directly to a specially qualified agency in the State that has submitted an application in accordance with subparagraph (A) and obtained approval of the application.

#### (C) Specially qualified agency defined

In this subpart, the term "specially qualified agency" means an eligible local educational agency served by a State educational agency that does not participate in a program under this subpart in a fiscal year, that may apply directly to the Secretary for a grant in such year under this subsection.

#### (b) Local awards

#### (1) Eligibility

A local educational agency shall be eligible to receive a grant under this subpart if—

(A)(i) 20 percent or more of the children ages 5 through 17 years served by the local educational agency are from families with incomes below the poverty line; and

(ii) all of the schools served by the agency are designated with a locale code of 32, 33, 41, 42, or 43, as determined by the Secretary; or

(B) the agency meets the criteria established in clause (i) of subparagraph (A) and the Secretary, in accordance with paragraph (2), grants the local educational agency's request to waive the criteria described in clause (ii) of such subparagraph.

#### (2) Certification

The Secretary shall determine whether to waive the criteria described in paragraph (1)(A)(ii) based on a demonstration by the local educational agency, and concurrence by the State educational agency, that the local educational agency is located in an area defined as rural by a governmental agency of the State.

#### (3) Award basis

A State educational agency shall award grants to eligible local educational agencies—

(A) on a competitive basis;

(B) according to a formula based on the number of students in average daily attendance served by the eligible local educational agencies or schools in the State; or

(C) according to an alternative formula, if, prior to awarding the grants, the State educational agency demonstrates, to the satisfaction of the Secretary, that the alternative formula enables the State educational agency to allot the grant funds in a manner that serves equal or greater concentrations of children from families with incomes below the poverty line, relative to the concentrations that would be served if the State educational agency used the formula described in subparagraph (B).

#### (c) Reservations

From amounts appropriated under section 7355c of this title for this subpart for a fiscal year, the Secretary shall reserve—

(1) one-half of 1 percent to make awards to elementary schools or secondary schools operated or supported by the Bureau of Indian Education, to carry out the activities authorized under this subpart; and

(2) one-half of 1 percent to make awards to the outlying areas in accordance with their respective needs, to carry out the activities authorized under this subpart.

(Pub. L. 89–10, title V, §5221, formerly title VI, §6221, as added Pub. L. 107–110, title VI, §601, Jan. 8, 2002, 115 Stat. 1894; renumbered title V, §5221, and amended Pub. L. 114–95, title V, §§5001(a)(4), (b)(3), (4), 5003(4), Dec. 10, 2015, 129 Stat. 2039, 2040, 2043.)

#### **Editorial Notes**

#### Prior Provisions

A prior section 7351, Pub. L. 89–10, title VI, §6301, as added Pub. L. 103–382, title I, §101, Oct. 20, 1994, 108 Stat. 3711; amended Pub. L. 105–278, §2(2), Oct. 22, 1998, 112 Stat. 2682, related to targeted use of funds for local innovative education programs, prior to the general amendment of former subchapter VI of this chapter by Pub. L. 107–110.

A prior section 5221 of Pub. L. 89–10 was classified to section 7223 of this title, prior to repeal by Pub. L. 114–95.

#### Amendments

2015—Subsec. (a)(1), (3)(A). Pub. L. 114–95, §§5001(b)(3), (4), 5003(4)(A), made technical amendments to references in original act which appear in text as references to sections 7355c, 7351b, and 7351a(a) of this title.

Subsec. (b)(1)(A). Pub. L. 114–95, §5003(4)(B)(i)(I), (II), designated existing provisions as cl. (i) and redesignated subpar. (B) as cl. (ii).

Subsec. (b)(1)(A)(ii). Pub. L. 114–95, §5003(4)(B)(i)(III)(aa), (bb), struck out "school" before "locale code" and substituted "32, 33, 41, 42, or 43" for "6, 7, or 8".

Subsec. (b)(1)(B). Pub. L. 114–95, §5003(4)(B)(i)(III)(cc), (IV), added subpar. (B). Former subpar. (B) redesignated cl. (ii) of subpar. (A).

Subsec. (b)(2), (3). Pub. L. 114–95, §5003(4)(B)(ii), (iii), added par. (2) and redesignated former par. (2) as (3).

Subsec. (c). Pub. L. 114–95, §5001(b)(4), made technical amendment to reference in original act which appears in introductory provisions as reference to section 7355c of this title.

Subsec. (c)(1). Pub. L. 114–95, §5003(4)(C), substituted "Bureau of Indian Education" for "Bureau of Indian Affairs".

#### **Statutory Notes and Related Subsidiaries**

#### Effective Date of 2015 Amendment

Amendment 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.

#### Rural and Low-Income School Program Adjustments

Pub. L. 116–260, div. H, title III, §316, Dec. 27, 2020, 134 Stat. 1610, provided that:

"(a) Hold Harmless.—For the purpose of making awards under section 5221 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7351) for a fiscal year during the period described in subsection (c), the Secretary of Education and each State educational agency shall treat as eligible to receive a grant under such section—

"(1) any local educational agency that meets the eligibility requirements described in section 5221(b)(1) of such Act [20 U.S.C. 7351(b)(1)] for such fiscal year, in accordance with subsection (d); and

"(2) notwithstanding such section 5221(b)(1), any local educational agency that does not meet the eligibility requirements described in such section for such fiscal year if—

"(A) the local educational agency received a grant under section 5221 of such Act for fiscal year 2019;

"(B) for fiscal year 2019, less than 20 percent of the children ages 5 through 17 years served by the local educational agency were from families with incomes below the poverty line, as determined by data from the Small Area Income and Poverty Estimates of the Bureau of the Census;

"(C) the award for fiscal year 2019 was based on alternative poverty data submitted by the State to the Secretary despite data being available from the Small Area Income and Poverty Estimates of the Bureau of the Census; and

"(D) the local educational agency meets the eligibility criteria described in section 5221(b)(1)(A)(ii) of such Act [20 U.S.C. 7351(b)(1)(A)(ii)], or has obtained a waiver under section 5221(b)(2) of such Act [20 U.S.C. 7351(b)(2)], for the fiscal year for which the eligibility determination is being made.

"(b) Limitations.—

"(1) Limits on local educational agency awards.—For the purposes of making an award under section 5221(b) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7351(b)) to local educational agencies described in subsection (a)(2) for a fiscal year during the period described in subsection (c), a State educational agency shall provide an award to each such local educational agency for such fiscal year that is not larger than—

"(A) for fiscal year 2021, 100 percent of the amount such local educational agency received for fiscal year 2019;

"(B) for fiscal year 2022, 100 percent of the amount such local educational agency received for fiscal year 2019;

"(C) for fiscal year 2023, 83.33 percent of the amount such local educational agency received for fiscal year 2019;

"(D) for fiscal year 2024, 66.67 percent of the amount such local educational agency received for fiscal year 2019;

"(E) for fiscal year 2025, 50 percent of the amount such local educational agency received for fiscal year 2019;

"(F) for fiscal year 2026, 33.33 percent of the amount such local educational agency received for fiscal year 2019; and

"(G) for fiscal year 2027, 16.67 percent of the amount such local educational agency received for fiscal year 2019.

"(2) Adjustments to state allocations.—In determining grant amounts for each State educational agency under section 5221(a)(2) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7351(a)(2)) for each fiscal year during the period described in subsection (c), the Secretary of Education shall reduce the amount that the State educational agency would otherwise receive by the combined amount of any reductions in grant awards required under paragraph (1) for such year for the local educational agencies described in subsection (a)(2) that are served by the State educational agency.

"(c) Applicability.—Subsections (a) and (b) shall be in effect during the period—

"(1) beginning on the first day of the fiscal year in which this Act [div. H of Pub. L. 116–260, see Tables for classification] is enacted; and

"(2) ending on the earlier of—

"(A) September 30, 2027; or

"(B) the last day of the fiscal year in which an Act that reauthorizes the rural and low-income school program under subpart 2 of part B of title V of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7351 et seq.) is enacted.

"(d) Use of Data Measures.—Except as provided in subsection (a)(2), for the purpose of making awards under section 5221 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7351) for any fiscal year—

"(1) if data are available from the Small Area Income and Poverty Estimates of the Bureau of the Census to determine a local educational agency's enrollment of children from families with incomes below the poverty line as described in section 5221(b)(1)(A)(i) of such Act [20 U.S.C. 7351(b)(1)(A)(i)], the Secretary of Education and each State educational agency shall not use alternative poverty data in determining such local educational agency's eligibility under such section; and

"(2) if data are not available from the Small Area Income and Poverty Estimates of the Bureau of the Census to determine a local educational agency's enrollment of children from families with incomes below the poverty line as described in such section 5221(b)(1)(A)(i), the Secretary and the State educational agency shall determine such local educational agency's eligibility under such section using the same State-derived poverty data used to determine local educational agency allocations under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.)."