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 Com-
mittee 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. 
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 Fund-
ing Flexibility Act’’. 
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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. 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 stu-
dents, 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 
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. 6122. 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 
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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 re-
quired 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. 
‘‘(2) NOTIFICATION.—Not later than June 1 of 
each year, a State educational agency shall notify 
the Secretary of the State educational agency’s in-
tention to use the applicable funding for any of the 
alternative uses under paragraph (1). 
‘‘(3) APPLICABLE FUNDING DEFINED.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), in this subsection, the term 
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‘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 
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 
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‘‘(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. 
‘‘(B) Part A of title I. 
‘‘(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) Part A of title III. 
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‘‘(I) Part B of title IV. 
‘‘(J) Part A of title V. 
‘‘(K) Subpart 2 of part B of title VI. 
‘‘(L) Part A of title VII. 
‘‘(M) Section 613(f) of the Individuals 
with Disabilities Education Act (20 U.S.C. 
1413(f)). 
‘‘(2) NOTIFICATION.—A local educational agen-
cy shall notify the State educational agency of the 
local educational agency’s intention to use the appli-
cable funding for any of the alternative uses under 
paragraph (1) by a date that is established by the 
State educational agency for the notification. 
‘‘(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 local activities under one or more of 
the following provisions: 
‘‘(i) Part A of title I. 
‘‘(ii) Part C of title I. 
‘‘(iii) Part D of title I. 
‘‘(iv) Part A of title II. 
‘‘(v) Part A of title III. 
‘‘(vi) Part A of title V. 
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‘‘(vii) Part A of title VII. 
‘‘(viii) 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 
subparagraph (A) that local educational agen-
cies are required by this Act— 
‘‘(i) to reserve, allocate, or spend for 
required activities; 
‘‘(ii) to allot or award to entities eligi-
ble to receive such funds; or 
‘‘(iii) to use for technical assistance or 
monitoring. 
‘‘(4) DISBURSEMENT.—Each State educational 
agency that receives applicable funding for a fiscal 
year shall disburse the applicable funding to local 
educational agencies for alternative uses under para-
graph (1) for the fiscal year at the same time as the 
State educational agency disburses the applicable 
funding to local educational agencies that do not in-
tend to use the applicable funding for such alter-
native 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 
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(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 
absence of this section, could have used funds for adminis-
trative 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 agen-
cy or local educational agency of any requirements relating 
to— 
‘‘(1) maintenance of effort; 
‘‘(2) use of Federal funds to supplement, not 
supplant, non-Federal funds; 
‘‘(3) comparability of services; 
‘‘(4) equitable participation of private school 
students and teachers; 
‘‘(5) the selection of a school attendance area or 
school under subsections (a) and (b) of section 1113; 
‘‘(6) section 1111; 
‘‘(7) section 1116; or 
‘‘(8) section 3122.’’. 
(b) CONFORMING AMENDMENT.—The table of con-
tents of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6301 et seq.) is amended by striking the 
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item relating to subpart 2 of part A of title VI and insert-
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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