cation in accordance with paragraph (5) for the 
2013–2014 school year. 
(B) Funds used to support elementary and 
secondary 
education 
shall 
be 
distributed 
through a State’s primary elementary and sec-
ondary funding formula or based on local edu-
cational agencies’ relative shares of funds under 
part A of title I of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 6311 
et seq.) for the most recent fiscal year for which 
data are available. 
(C) Subsections (a) and (b) of section 
14002 of division A of Public Law 111–5 shall 
not apply to funds appropriated under this 
heading. 
(4) COMPLIANCE WITH EDUCATION REFORM AS-
SURANCES.—For purposes of awarding funds appro-
priated under this heading, any State that had an 
approved application for Phase II of the State Fiscal 
Stabilization Fund that was submitted in accordance 
with the application notice published in the Federal 
Register on November 17, 2009 (74 Fed. Reg. 
59142) shall be deemed to be in compliance with 
subsection (b) and paragraphs (2) through (5) of 
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subsection (d) of section 14005 of division A of Pub-
lic Law 111–5. 
(5) REQUIREMENT TO USE FUNDS TO RETAIN 
OR
CREATE
EDUCATION
JOBS.—Notwithstanding 
section 14003(a) of division A of Public Law 111– 
5, funds awarded to local educational agencies under 
paragraph (3)— 
(A) may be used only for compensation 
and benefits and other expenses, such as sup-
port services, necessary to retain existing em-
ployees, to recall or rehire former employees, 
and to hire new employees, in order to provide 
early childhood, elementary, or secondary edu-
cational and related services; and 
(B) may not be used for general adminis-
trative expenses or for other support services 
expenditures as those terms were defined by the 
National Center for Education Statistics in its 
Common Core of Data as of the date of enact-
ment of this title. 
(6) PROHIBITION
ON
USE
OF
FUNDS
FOR 
RAINY-DAY FUNDS OR DEBT RETIREMENT.—A State 
that receives an allocation may not use such funds, 
directly or indirectly, to— 
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(A) establish, restore, or supplement a 
rainy-day fund; 
(B) supplant State funds in a manner that 
has the effect of establishing, restoring, or 
supplementing a rainy-day fund; 
(C) reduce or retire debt obligations in-
curred by the State; or 
(D) supplant State funds in a manner that 
has the effect of reducing or retiring debt obli-
gations incurred by the State. 
(7) DEADLINE
FOR
AWARD.—The Secretary 
shall award funds appropriated under this heading 
not later than 45 days after the date of the enact-
ment of this Act to States that have submitted ap-
plications meeting the requirements applicable to 
funds under this heading. The Secretary shall not 
require information in applications beyond what is 
necessary to determine compliance with applicable 
provisions of law. 
(8) ALTERNATE DISTRIBUTION OF FUNDS.—If, 
within 30 days after the date of the enactment of 
this Act, a Governor has not submitted an approv-
able application, the Secretary shall provide for 
funds allocated to that State to be distributed to an-
other entity or other entities in the State (notwith-
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mstockstill on DSK4VPTVN1PROD with BILLS
standing section 14001(e) of division A of Public 
Law 111–5) for support of elementary and sec-
ondary education, under such terms and conditions 
as the Secretary may establish, provided that all 
terms and conditions that apply to funds appro-
priated under this heading shall apply to such funds 
distributed to such entity or entities. No distribution 
shall be made to a State under this paragraph, how-
ever, unless the Secretary has determined (on the 
basis of such information as may be available) that 
the requirements of clauses (i), (ii), or (iii) of para-
graph 10(A) are likely to be met, notwithstanding 
the lack of an application from the Governor of that 
State. 
(9) LOCAL
EDUCATIONAL
AGENCY
APPLICA-
TION.—Section 442 of the General Education Provi-
sions Act shall not apply to a local educational agen-
cy that has previously submitted an application to 
the State under title XIV of division A of Public 
Law 111–5. The assurances provided under that ap-
plication shall continue to apply to funds awarded 
under this heading. 
(10) MAINTENANCE OF EFFORT.— 
(A) Except as provided in paragraph (8), 
the Secretary shall not allocate funds to a State 
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under paragraph (1) unless the Governor of the 
State provides an assurance to the Secretary 
that— 
(i) for State fiscal year 2014, the 
State will maintain State support for ele-
mentary and secondary education (in the 
aggregate or on the basis of expenditures 
per pupil) and for public institutions of 
higher education (not including support for 
capital projects or for research and devel-
opment or tuition and fees paid by stu-
dents) at not less than the level of such 
support for each of the two categories, re-
spectively, for State fiscal year 2009; 
(ii) for State fiscal year 2014, the 
State will maintain State support for ele-
mentary and secondary education and for 
public institutions of higher education (not 
including support for capital projects or for 
research and development or tuition and 
fees paid by students) at a percentage of 
the total revenues available to the State 
that is equal to or greater than the per-
centage provided for each of the two cat-
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mstockstill on DSK4VPTVN1PROD with BILLS
egories, respectively, for State fiscal year 
2010; or 
(iii) in the case of a State in which 
State tax collections for calendar year 
2009 were less than State tax collections 
for calendar year 2006, for State fiscal 
year 2014 the State will maintain State 
support for elementary and secondary edu-
cation (in the aggregate) and for public in-
stitutions of higher education (not includ-
ing support for capital projects or for re-
search and development or tuition and fees 
paid by students)— 
(I) at not less than the level of 
such support for each of the two cat-
egories, respectively, for State fiscal 
year 2006; or 
(II) at a percentage of the total 
revenues available to the State that is 
equal to or greater than the percent-
age provided for each of the two cat-
egories, respectively, for State fiscal 
year 2006. 
(B) Section 14005(d)(1) and subsections 
(a) through (c) of section 14012 of division A 
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