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 Com-
mittee 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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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
The Act may be cited as the ‘‘State and Local Funding 
Flexibility Act’’. 
SEC. 2. FLEXIBILITY TO USE FEDERAL FUNDS. 
(a) IN GENERAL.—Subpart 2 of part A of title VI of 
the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7305 et seq.) is amended to read as follows: 
‘‘Subpart 2—Funding Flexibility for State and Local 
Educational Agencies 
‘‘SEC. 6121. SHORT TITLE. 
‘‘This subpart may be cited as the ‘State and Local 
Funding Flexibility Act’. 
‘‘SEC. 6122. PURPOSE. 
‘‘The purpose of this subpart is to allow States and 
local educational agencies the flexibility to— 
‘‘(1) design flexible programs that use Federal 
funds to support student achievement for all students, 
including students most at risk of failing to meet the 
State’s academic achievement standards; and 
‘‘(2) extend and enhance the funding flexibility 
provided to rural local educational agencies under 
section 6211 to all State educational agencies and 
local educational agencies by providing such agencies 
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flexibility in using Federal formula funds received to 
carry out authorized State or local activities for other 
authorized or required State or local activities. 
‘‘SEC. 6123. FLEXIBILITY TO USE FEDERAL FUNDS. 
‘‘(a) ALTERNATIVE USES OF FEDERAL FUNDS FOR 
STATE EDUCATIONAL AGENCIES.— 
‘‘(1) IN
GENERAL.—Subject to subsections (c) 
and (d) and notwithstanding any other provision of 
law, a State educational agency may use the applica-
ble funding that the agency receives for a fiscal year 
to carry out any State activity authorized or required 
under one or more of the following provisions: 
‘‘(A) Section 1003. 
‘‘(B) Section 1004. 
‘‘(C) Subpart 1 of part B of title I. 
‘‘(D) Part C of title I. 
‘‘(E) Part D of title I. 
‘‘(F) Part A of title II. 
‘‘(G) Part B of title II. 
‘‘(H) Title III. 
‘‘(I) Part B of title IV. 
‘‘(J) Part A of title V. 
‘‘(K) Subpart 1 of part A of title VI. 
‘‘(L) Subpart 2 of part B of title VI. 
‘‘(M) Subpart 2 of part A of title VII. 
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‘‘(2) NOTIFICATION.—Not later than June 1 of 
each year, a State educational agency shall notify the 
Secretary of the State educational agency’s intention 
to use the applicable funding for any of the alter-
native uses under paragraph (1). 
‘‘(3) APPLICABLE FUNDING DEFINED.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), in this subsection, the term 
‘applicable funding’ means funds provided to 
carry out State activities under one or more of 
the following provisions: 
‘‘(i) Section 1003(g)(2). 
‘‘(ii) Section 1004. 
‘‘(iii) Subpart I of Part B of title I. 
‘‘(iv) Part C of title I. 
‘‘(v) Part D of title I. 
‘‘(vi) Part A of title II. 
‘‘(vii) Part B of title II. 
‘‘(viii) Part A of title III. 
‘‘(ix) Part B of title IV. 
‘‘(x) Part A of title V. 
‘‘(xi) Title I of Public Law 111–226. 
‘‘(B) LIMITATION.—In this subsection, the 
term ‘applicable funding’ does not include funds 
provided under any of the provisions listed in 
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subparagraph (A) that State educational agen-
cies are required by this Act— 
‘‘(i) to reserve, allocate, or spend for 
required activities; 
‘‘(ii) to allot or award to local edu-
cational agencies or other entities eligible to 
receive such funds; or 
‘‘(iii) to use for technical assistance or 
monitoring. 
‘‘(4) DISBURSEMENT.—The Secretary shall dis-
burse the applicable funding to State educational 
agencies for alternative uses under paragraph (1) for 
a fiscal year at the same time as the Secretary dis-
burses the applicable funding to State educational 
agencies that do not intend to use the applicable 
funding for such alternative uses for the fiscal year. 
‘‘(b) ALTERNATIVE USES OF FEDERAL FUNDS FOR 
LOCAL EDUCATIONAL AGENCIES.— 
‘‘(1) IN
GENERAL.—Subject to subsections (c) 
and (d) and notwithstanding any other provision of 
law, a local educational agency may use the applica-
ble funding that the agency receives for a fiscal year 
to carry out any local activity authorized or required 
under one or more of the following provisions: 
‘‘(A) Section 1003. 
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funding to local educational agencies that do not in-
tend to use the applicable funding for such alternative 
uses for the fiscal year. 
‘‘(c) RULE
FOR ADMINISTRATIVE COSTS.—A State 
educational agency or a local educational agency may only 
use applicable funding (as defined in subsection (a)(3) or 
(b)(3), respectively) for administrative costs incurred in 
carrying out a provision listed in subsection (a)(1) or 
(b)(1), respectively, to the extent that the agency, in the ab-
sence of this section, could have used funds for administra-
tive costs with respect to a program listed in subsection 
(a)(3) or (b)(3), respectively. 
‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to relieve a State educational agency 
or local educational agency of any requirements relating 
to— 
‘‘(1) maintenance of effort; 
‘‘(2) use of Federal funds to supplement, not sup-
plant, non-Federal funds; 
‘‘(3) comparability of services; 
‘‘(4) equitable participation of private school stu-
dents and teachers; 
‘‘(5) applicable civil rights requirements; 
‘‘(6) the selection of school attendance areas or 
schools under subsections (a) and (b), and allocations 
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to such areas or schools under subsection (c), of sec-
tion 1113; 
‘‘(7) section 1111; 
‘‘(8) section 1116; or 
‘‘(9) section 3122.’’. 
(b) CONFORMING AMENDMENT.—The table of contents 
of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6301 et seq.) is amended by striking the items 
relating to subpart 2 of part A of title VI and inserting 
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 Edu-
cation 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. 
JULY 25, 2011 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
VerDate Mar 15 2010 
20:37 Jul 25, 2011
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