IB 

Union Calendar No. 119 

112TH CONGRESS 

1ST SESSION H. R. 2445 

[Report No. 112–180] 

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 

JULY 25, 2011 

Additional sponsors: Mrs. ROBY and Mr. ROSS of Florida 

JULY 25, 2011 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on July 7, 2011] 


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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. 


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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 Funding 

5 Flexibility Act’’. 

6 SEC. 2. FLEXIBILITY TO USE FEDERAL FUNDS. 

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

8 the Elementary and Secondary Education Act of 1965 (20 

9 U.S.C. 7305 et seq.) is amended to read as follows: 

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

11 Educational Agencies 

12 ‘‘SEC. 6121. SHORT TITLE. 

13 ‘‘This subpart may be cited as the ‘State and Local 

14 Funding Flexibility Act’. 

15 ‘‘SEC. 6122. PURPOSE. 

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

17 local educational agencies the flexibility to— 

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

19 funds to support student achievement for all students, 

20 including students most at risk of failing to meet the 

21 State’s academic achievement standards; and 

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

23 provided to rural local educational agencies under 

24 section 6211 to all State educational agencies and 

25 local educational agencies by providing such agencies 


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1 flexibility in using Federal formula funds received to 

2 carry out authorized State or local activities for other 

3 authorized or required State or local activities. 

4 ‘‘SEC. 6123. FLEXIBILITY TO USE FEDERAL FUNDS. 

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

6 STATE EDUCATIONAL AGENCIES.— 

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

8 and (d) and notwithstanding any other provision of 

9 law, a State educational agency may use the applica10 ble funding that the agency receives for a fiscal year 

11 to carry out any State activity authorized or required 

12 under one or more of the following provisions: 

13 ‘‘(A) Section 1003. 

14 ‘‘(B) Section 1004. 

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

16 ‘‘(D) Part C of title I. 

17 ‘‘(E) Part D of title I. 

18 ‘‘(F) Part A of title II. 

19 ‘‘(G) Part B of title II. 

20 ‘‘(H) Title III. 

21 ‘‘(I) Part B of title IV. 

22 ‘‘(J) Part A of title V. 

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

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

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


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

2 each year, a State educational agency shall notify the 

3 Secretary of the State educational agency’s intention 

4 to use the applicable funding for any of the alter5 native uses under paragraph (1). 

6 ‘‘(3) APPLICABLE FUNDING DEFINED.— 

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

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

9 ‘applicable funding’ means funds provided to 

10 carry out State activities under one or more of 

11 the following provisions: 

12 ‘‘(i) Section 1003(g)(2). 

13 ‘‘(ii) Section 1004. 

14 ‘‘(iii) Subpart I of Part B of title I. 

15 ‘‘(iv) Part C of title I. 

16 ‘‘(v) Part D of title I. 

17 ‘‘(vi) Part A of title II. 

18 ‘‘(vii) Part B of title II. 

19 ‘‘(viii) Part A of title III. 

20 ‘‘(ix) Part B of title IV. 

21 ‘‘(x) Part A of title V. 

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

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

24 term ‘applicable funding’ does not include funds 

25 provided under any of the provisions listed in 


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1 subparagraph (A) that State educational agen2 cies are required by this Act— 

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

4 required activities; 

5 ‘‘(ii) to allot or award to local edu6 cational agencies or other entities eligible to 

7 receive such funds; or 

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

9 monitoring. 

10 ‘‘(4) DISBURSEMENT.—The Secretary shall dis11 burse the applicable funding to State educational 

12 agencies for alternative uses under paragraph (1) for 

13 a fiscal year at the same time as the Secretary dis14 burses the applicable funding to State educational 

15 agencies that do not intend to use the applicable 

16 funding for such alternative uses for the fiscal year. 

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

18 LOCAL EDUCATIONAL AGENCIES.— 

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

20 and (d) and notwithstanding any other provision of 

21 law, a local educational agency may use the applica22 ble funding that the agency receives for a fiscal year 

23 to carry out any local activity authorized or required 

24 under one or more of the following provisions: 

25 ‘‘(A) Section 1003. 


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1 ‘‘(B) Part A of title I. 

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

3 ‘‘(D) Part C of title I. 

4 ‘‘(E) Part D of title I. 

5 ‘‘(F) Part A of title II. 

6 ‘‘(G) Part B of title II. 

7 ‘‘(H) Part A of title III. 

8 ‘‘(I) Part B of title IV. 

9 ‘‘(J) Part A of title V. 

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

11 ‘‘(L) Part A of title VII. 

12 ‘‘(M) Section 613(f) of the Individuals with 

13 Disabilities Education Act (20 U.S.C. 1413(f)). 

14 ‘‘(2) NOTIFICATION.—A local educational agency 

15 shall notify the State educational agency of the local 

16 educational agency’s intention to use the applicable 

17 funding for any of the alternative uses under para18 graph (1) by a date that is established by the State 

19 educational agency for the notification. 

20 ‘‘(3) APPLICABLE FUNDING DEFINED.— 

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

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

23 ‘applicable funding’ means funds provided to 

24 carry out local activities under one or more of 

25 the following provisions: 


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1 ‘‘(i) Part A of title I. 

2 ‘‘(ii) Part C of title I. 

3 ‘‘(iii) Part D of title I. 

4 ‘‘(iv) Part A of title II. 

5 ‘‘(v) Part A of title III. 

6 ‘‘(vi) Part A of title V. 

7 ‘‘(vii) Part A of title VII. 

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

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

10 term ‘applicable funding’ does not include funds 

11 provided under any of the provisions listed in 

12 subparagraph (A) that local educational agencies 

13 are required by this Act— 

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

15 required activities; 

16 ‘‘(ii) to allot or award to entities eligi17 ble to receive such funds; or 

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

19 monitoring. 

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

21 agency that receives applicable funding for a fiscal 

22 year shall disburse the applicable funding to local 

23 educational agencies for alternative uses under para24 graph (1) for the fiscal year at the same time as the 

25 State educational agency disburses the applicable 


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1 funding to local educational agencies that do not in2 tend to use the applicable funding for such alternative 

3 uses for the fiscal year. 

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

5 educational agency or a local educational agency may only 

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

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

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

9 (b)(1), respectively, to the extent that the agency, in the ab10 sence of this section, could have used funds for administra11 tive costs with respect to a program listed in subsection 

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

13 ‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec14 tion shall be construed to relieve a State educational agency 

15 or local educational agency of any requirements relating 

16 to— 

17 ‘‘(1) maintenance of effort; 

18 ‘‘(2) use of Federal funds to supplement, not sup19 plant, non-Federal funds; 

20 ‘‘(3) comparability of services; 

21 ‘‘(4) equitable participation of private school stu22 dents and teachers; 

23 ‘‘(5) applicable civil rights requirements; 

24 ‘‘(6) the selection of school attendance areas or 

25 schools under subsections (a) and (b), and allocations 


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1 to such areas or schools under subsection (c), of sec2 tion 1113; 

3 ‘‘(7) section 1111; 

4 ‘‘(8) section 1116; or 

5 ‘‘(9) section 3122.’’. 

6 (b) CONFORMING AMENDMENT.—The table of contents 

7 of the Elementary and Secondary Education Act of 1965 

8 (20 U.S.C. 6301 et seq.) is amended by striking the items 

9 relating to subpart 2 of part A of title VI and inserting 

10 the following: 

‘‘Subpart 2—Funding Flexibility for State and Local Educational Agencies 

‘‘Sec. 6121. Short title. 

‘‘Sec. 6122. Purpose. 

‘‘Sec. 6123. Flexibility to use Federal funds.’’. 


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Union Calendar No. 119 

112TH CONGRESS 

1ST SESSION H. R. 2445 

[Report No. 112–180] 

A BILL 

To amend the Elementary and Secondary Eduand for other purposes. using Federal funds provided under such Act, educational agencies with maximum flexibility in cation Act of 1965 to provide States and local 

JULY 25, 2011 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


emcdonald on DSK2BSOYB1PROD with BILLS