I 

112TH CONGRESS 

1ST SESSION H. R. 2445 

To amend the Elementary and Secondary Education Act of 1965 to provide 

States and local educational agencies with maximum flexibility in using 

Federal funds provided under such Act, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 7, 2011 

Mr. KLINE (for himself, Mr. HUNTER, Mr. MCKEON, Mr. GOODLATTE, Mr. 

ROE of Tennessee, Mr. THOMPSON of Pennsylvania, Mr. DESJARLAIS, 

Mr. HANNA, Mr. BUCSHON, Mr. BARLETTA, Mrs. NOEM, Mr. HECK, and 

Mr. KELLY) introduced the following bill; which was referred to the Committee on Education and the Workforce 

A BILL 

To amend the Elementary and Secondary Education Act 

of 1965 to provide States and local educational agencies 

with maximum flexibility in using Federal funds provided 

under such Act, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 The Act may be cited as the ‘‘State and Local Fund5 ing Flexibility Act’’. 


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1 SEC. 2. FLEXIBILITY TO USE FEDERAL FUNDS. 

2 (a) IN GENERAL.—Subpart 2 of part A of title VI 

3 of the Elementary and Secondary Education Act of 1965 

4 (20 U.S.C. 7305 et seq.) is amended to read as follows: 

5 ‘‘Subpart 2—Funding Flexibility for State and Local 

6 Educational Agencies 

7 ‘‘SEC. 6121. PURPOSE. 

8 ‘‘The purpose of this subpart is to allow States and 

9 local educational agencies the flexibility to— 

10 ‘‘(1) design flexible programs that use Federal 

11 funds to support student achievement for all stu12 dents, including students most at risk of failing to 

13 meet the State’s academic achievement standards; 

14 and 

15 ‘‘(2) extend and enhance the funding flexibility 

16 provided to rural local educational agencies under 

17 section 6211 to all State educational agencies and 

18 local educational agencies by providing such agencies 

19 flexibility in using Federal formula funds received to 

20 carry out authorized State or local activities for 

21 other authorized or required State or local activities. 

22 ‘‘SEC. 6122. FLEXIBILITY TO USE FEDERAL FUNDS. 

23 ‘‘(a) ALTERNATIVE USES OF FEDERAL FUNDS FOR

24 STATE EDUCATIONAL AGENCIES.— 

25 ‘‘(1) IN GENERAL.—Subject to subsections (c) 

26 and (d) and notwithstanding any other provision of 


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1 law, a State educational agency may use the applica2 ble funding that the agency receives for a fiscal year 

3 to carry out any State activity authorized or re4 quired under one or more of the following provisions: 

5 ‘‘(A) Section 1003. 

6 ‘‘(B) Section 1004. 

7 ‘‘(C) Subpart 1 of part B of title I. 

8 ‘‘(D) Part C of title I. 

9 ‘‘(E) Part D of title I. 

10 ‘‘(F) Part A of title II. 

11 ‘‘(G) Part B of title II. 

12 ‘‘(H) Title III. 

13 ‘‘(I) Part B of title IV. 

14 ‘‘(J) Part A of title V. 

15 ‘‘(K) Subpart 1 of part A of title VI. 

16 ‘‘(L) Subpart 2 of part B of title VI. 

17 ‘‘(M) Subpart 2 of part A of title VII. 

18 ‘‘(2) NOTIFICATION.—Not later than June 1 of 

19 each year, a State educational agency shall notify 

20 the Secretary of the State educational agency’s in21 tention to use the applicable funding for any of the 

22 alternative uses under paragraph (1). 

23 ‘‘(3) APPLICABLE FUNDING DEFINED.— 

24 ‘‘(A) IN GENERAL.—Except as provided in 

25 subparagraph (B), in this subsection, the term 


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1 ‘applicable funding’ means funds provided to 

2 carry out State activities under one or more of 

3 the following provisions: 

4 ‘‘(i) Section 1003(g)(2). 

5 ‘‘(ii) Section 1004. 

6 ‘‘(iii) Subpart I of part B of title I. 

7 ‘‘(iv) Part C of title I. 

8 ‘‘(v) Part D of title I. 

9 ‘‘(vi) Part A of title II. 

10 ‘‘(vii) Part B of title II. 

11 ‘‘(viii) Part A of title III. 

12 ‘‘(ix) Part B of title IV. 

13 ‘‘(x) Part A of title V. 

14 ‘‘(xi) Title I of Public Law 111–226. 

15 ‘‘(B) LIMITATION.—In this subsection, the 

16 term ‘applicable funding’ does not include funds 

17 provided under any of the provisions listed in 

18 subparagraph (A) that State educational agen19 cies are required by this Act— 

20 ‘‘(i) to reserve, allocate, or spend for 

21 required activities; 

22 ‘‘(ii) to allot or award to local edu23 cational agencies or other entities eligible 

24 to receive such funds; or 


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1 ‘‘(iii) to use for technical assistance or 

2 monitoring. 

3 ‘‘(4) DISBURSEMENT.—The Secretary shall dis4 burse the applicable funding to State educational 

5 agencies for alternative uses under paragraph (1) for 

6 a fiscal year at the same time as the Secretary dis7 burses the applicable funding to State educational 

8 agencies that do not intend to use the applicable 

9 funding for such alternative uses for the fiscal year. 

10 ‘‘(b) ALTERNATIVE USES OF FEDERAL FUNDS FOR

11 LOCAL EDUCATIONAL AGENCIES.— 

12 ‘‘(1) IN GENERAL.—Subject to subsections (c) 

13 and (d) and notwithstanding any other provision of 

14 law, a local educational agency may use the applica15 ble funding that the agency receives for a fiscal year 

16 to carry out any local activity authorized or required 

17 under one or more of the following provisions: 

18 ‘‘(A) Section 1003. 

19 ‘‘(B) Part A of title I. 

20 ‘‘(C) Subpart 1 of part B of title I. 

21 ‘‘(D) Part C of title I. 

22 ‘‘(E) Part D of title I. 

23 ‘‘(F) Part A of title II. 

24 ‘‘(G) Part B of title II. 

25 ‘‘(H) Part A of title III. 


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1 ‘‘(I) Part B of title IV. 

2 ‘‘(J) Part A of title V. 

3 ‘‘(K) Subpart 2 of part B of title VI. 

4 ‘‘(L) Part A of title VII. 

5 ‘‘(M) Section 613(f) of the Individuals 

6 with Disabilities Education Act (20 U.S.C. 

7 1413(f)). 

8 ‘‘(2) NOTIFICATION.—A local educational agen9 cy shall notify the State educational agency of the 

10 local educational agency’s intention to use the appli11 cable funding for any of the alternative uses under 

12 paragraph (1) by a date that is established by the 

13 State educational agency for the notification. 

14 ‘‘(3) APPLICABLE FUNDING DEFINED.— 

15 ‘‘(A) IN GENERAL.—Except as provided in 

16 subparagraph (B), in this subsection, the term 

17 ‘applicable funding’ means funds provided to 

18 carry out local activities under one or more of 

19 the following provisions: 

20 ‘‘(i) Part A of title I. 

21 ‘‘(ii) Part C of title I. 

22 ‘‘(iii) Part D of title I. 

23 ‘‘(iv) Part A of title II. 

24 ‘‘(v) Part A of title III. 

25 ‘‘(vi) Part A of title V. 


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1 ‘‘(vii) Part A of title VII. 

2 ‘‘(viii) Title I of Public Law 111–226. 

3 ‘‘(B) LIMITATION.—In this subsection, the 

4 term ‘applicable funding’ does not include funds 

5 provided under any of the provisions listed in 

6 subparagraph (A) that local educational agen7 cies are required by this Act— 

8 ‘‘(i) to reserve, allocate, or spend for 

9 required activities; 

10 ‘‘(ii) to allot or award to entities eligi11 ble to receive such funds; or 

12 ‘‘(iii) to use for technical assistance or 

13 monitoring. 

14 ‘‘(4) DISBURSEMENT.—Each State educational 

15 agency that receives applicable funding for a fiscal 

16 year shall disburse the applicable funding to local 

17 educational agencies for alternative uses under para18 graph (1) for the fiscal year at the same time as the 

19 State educational agency disburses the applicable 

20 funding to local educational agencies that do not in21 tend to use the applicable funding for such alter22 native uses for the fiscal year. 

23 ‘‘(c) RULE FOR ADMINISTRATIVE COSTS.—A State 

24 educational agency or a local educational agency may only 

25 use applicable funding (as defined in subsection (a)(3) or 


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1 (b)(3), respectively) for administrative costs incurred in 

2 carrying out a provision listed in subsection (a)(1) or 

3 (b)(1), respectively, to the extent that the agency, in the 

4 absence of this section, could have used funds for adminis5 trative costs with respect to a program listed in subsection 

6 (a)(3) or (b)(3), respectively. 

7 ‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec8 tion shall be construed to relieve a State educational agen9 cy or local educational agency of any requirements relating 

10 to— 

11 ‘‘(1) maintenance of effort; 

12 ‘‘(2) use of Federal funds to supplement, not 

13 supplant, non-Federal funds; 

14 ‘‘(3) comparability of services; 

15 ‘‘(4) equitable participation of private school 

16 students and teachers; 

17 ‘‘(5) the selection of a school attendance area or 

18 school under subsections (a) and (b) of section 1113; 

19 ‘‘(6) section 1111; 

20 ‘‘(7) section 1116; or 

21 ‘‘(8) section 3122.’’. 

22 (b) CONFORMING AMENDMENT.—The table of con23 tents of the Elementary and Secondary Education Act of 

24 1965 (20 U.S.C. 6301 et seq.) is amended by striking the 


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1 item relating to subpart 2 of part A of title VI and insert2 ing the following: 

‘‘SUBPART 2—FUNDING FLEXIBILITY FOR STATE AND LOCAL EDUCATIONAL

AGENCIES

‘‘Sec. 6121. Purpose. 

‘‘Sec. 6122. Flexibility to use Federal funds.’’. 

Æ 


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