To amend the Elementary and Secondary Education Act of 1965 to adjust funding levels for certain outlying areas.

To amend the Elementary and Secondary Education Act of 1965 to adjust funding levels for certain outlying areas. 1. GRANTS FOR THE SECRETARY OF THE INTERIOR (a) In general Section 1121 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6331 (1) in the section heading, by striking the outlying areas and (2) by amending subsection (a) to read as follows: (a) Reservation of funds (1) In general From the amount appropriated for payments to States for any fiscal year under sections 1002(a) and 1125A(f), the Secretary shall reserve— (A) for each fiscal year until the fiscal year described in paragraph (2), .67 percent to provide assistance to the Secretary of the Interior in the amount necessary to make payments pursuant to subsection (b); and (B) for the fiscal year described in paragraph (2) and each succeeding fiscal year, 0.75 percent to provide assistance to the Secretary of the Interior in the amount necessary to make payments pursuant to such subsection. (2) Description of fiscal year A fiscal year described in this paragraph is a fiscal year for which the total amount allocated under this part for each State, after reserving funds in accordance with paragraph (1)(B), would be an amount that is not less than the total amount allocated under this part for such State for fiscal year 2015. ; (3) by striking subsections (b) and (c); (4) by redesignating subsection (d) as subsection (b); and (5) in subsection (b), as so redesignated— (A) by amending paragraph (1) to read as follows: (1) In general The amount allotted for payments to the Secretary of the Interior under subsection (a) for any fiscal year shall be used to meet the special educational needs of— (A) Indian children on reservations served by elementary schools and secondary schools for Indian children operated or supported by the Department of the Interior; and (B) out-of-State Indian children in elementary schools and secondary schools in local educational agencies under special contracts with the Department of the Interior. ; and (B) in paragraph (2), by striking subsection (a)(2) subsection (a) (b) Conforming amendments The Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6301 et seq. (1) in paragraph (30) of section 9101, by striking section 1121(b) and any other any (2) in paragraph (2)(B)(i), of section 5477, by striking eligible under section 1121(d)(1)(A) eligible under section 1121(b)(1)(A) 2. ALLOCATIONS TO STATES Section 1122 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6332 3. BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES Section 1124(d) of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6333(d) (1) in paragraph (2), by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and indenting appropriately; (2) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting appropriately; (3) by striking Notwithstanding section 1122 (1) In general Notwithstanding section 1122 and except as provided in paragraph (2) ; (4) in paragraph (1)(B)(i) (as so redesignated), by striking calculated in paragraph (1) calculated in subparagraph (A) (5) by adding at the end the following new paragraph: (2) Exception American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the United States Virgin Islands shall each receive one-half of the lesser of the amounts calculated for each such jurisdiction under subparagraphs (A) and (B) of paragraph (1). . 4. CONCENTRATION GRANTS TO LOCAL EDUCATIONAL AGENCIES Section 1124A(a)(1)(B) of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6334(a)(1)(B) (1) by inserting State minimum (2) in clause (ii)— (A) in subclause (II), by redesignating items (aa) and (bb) as subitems (AA) and (BB), respectively, and indenting appropriately; and (B) by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively, and indenting appropriately; (3) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appropriately; (4) by striking Notwithstanding section 1122 (i) In general Notwithstanding section 1122 and except as provided in clause (ii) ; (5) in clause (i)(II)(aa) (as so redesignated) by striking calculated under clause (i) calculated under subclause (I) (6) by adding at the end the following new clause: (ii) Exception American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the United States Virgin Islands shall each receive one-half of the lesser of the amounts calculated for each such jurisdiction under subclauses (I) and (II) of clause (i). . 5. TARGETED GRANTS TO LOCAL EDUCATIONAL AGENCIES Section 1125(e) of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6335(e) (1) in paragraph (2), by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and indenting appropriately; (2) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting appropriately; (3) by striking Notwithstanding any other provision of this section or section 1122 (1) In general Notwithstanding section 1122 and except as provided in paragraph (2) ; and (4) by adding at the end the following new paragraph: (2) Exception American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the United States Virgin Islands shall each receive one-half of the lesser of the amounts calculated for each such jurisdiction under subparagraphs (A) and (B) of paragraph (1). . 6. EDUCATION FINANCE INCENTIVE GRANT PROGRAM Section 1125A(b) of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6337(b) (1) in paragraph (1)(B)— (A) in clause (ii), by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively, and indenting appropriately; (B) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appropriately; (C) by striking Notwithstanding any other provision of this section or section 1122 (i) In general Notwithstanding section 1122 and except as provided in clause (ii) ; and (D) by adding at the end the following new clause: (ii) Exception American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the United States Virgin Islands shall each receive one-half of the lesser of the amounts calculated for each such jurisdiction under subclauses (I) and (II) of clause (i). ; and (2) in paragraph (2)(B)— (A) in the subparagraph heading, by inserting and certain outlying areas (B) by adding after Commonwealth of Puerto Rico , American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the United States Virgin Islands

Summary: Amends part A of title I of the Elementary and Secondary Education Act of 1965 to eliminate the current reservation of 1% of the school improvement funds for outlying areas and Indian education. Reserves .67% of the school improvement funds for Indian education, but raises that reservation to .75% beginning with the fiscal year the allocations to states equal or surpass FY2015 levels after subtracting .75% of those allocations for Indian education. Establishes formulae for determining the minimum allotment to American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands of school improvement funds for: (1) basic grants to local educational agencies (LEAs), (2) concentration grants to LEAs, (3) targeted grants to LEAs, and (4) grants under the education finance incentive grant program.