the State shall distribute 20 percent of the 5
percent to local educational agencies in the
State to pay the administrative expenses of the
local educational agencies that are associated
with the activities and services assisted under
this section; and
(B) shall distribute not less than 95 per-
cent of the amount to local educational agencies
in the State for the fiscal year to enable the
local educational agencies to pay the costs of
activities or services, for kindergarten through
grade 12 students, that—
(i) the local educational agencies de-
termine appropriate; and
(ii) are provided in the classroom.
(2) CLASSROOM ACTIVITIES AND SERVICES.—
For the purpose of paragraph (1)(B), the costs of
activities and services provided in the classroom ex-
clude the administrative expenses associated with the
activities and services.
(d) REGULATIONS.—
(1) IN GENERAL.—No head of a Federal de-
partment or agency other than the Secretary may
promulgate regulations under this section.
(2) CLASSROOM ACTIVITIES AND SERVICES.—
The Secretary of Education shall not issue any regu-
lation regarding the type of classroom activities or
services that may be assisted under this section.
(e) REPORT.—Each Governor of a State receiving as-
sistance under this section shall prepare and submit, not
later than 60 days after the date of enactment of this Act,
to the Committee on Labor and Human Resources of the
Senate and the Committee on Education and the Work-
force of the House of Representatives, a report that de-
fines classroom activities and services and specifies what
such activities and services will be included in the State
under this section.
SEC. 3. TITLE I FUNDING.
Section 1603 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6513) is amended by add-
ing at the end the following:
‘‘(d) DOLLARS TO THE CLASSROOM.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, from the funds made available to
a local educational agency under this part for a fis-
cal year, not less than 95 percent of the funds shall
be used for the costs of activities and services that—
‘‘(A) the local educational agency deems
appropriate; and
‘‘(B) are provided in the classroom.
‘‘(2) CLASSROOM ACTIVITIES AND SERVICES.—
For the purpose of paragraph (1), the costs of ac-
tivities and services provided in the classroom ex-
clude the administrative expenses associated with the
activities and services.
‘‘(3) PLAN.—Not later than 6 months after the
date of enactment of the Dollars to the Classroom
Act, the Secretary shall—
‘‘(A) develop and implement a plan for
streamlining regulations and eliminating bu-
reaucracy so that 95 percent of the funds made
available to local educational agencies under
this part are used for the costs of activities and
services provided in the classroom; and
‘‘(B) prepare and submit to Congress rec-
ommended legislation containing changes to
Federal law that are needed for 95 percent of
the funds to be so used.’’.
SEC. 4. PARTICIPATION OF CHILDREN ENROLLED IN PRI-
VATE AND HOME SCHOOLS.
Each local educational agency that receives funds
under section 2 shall provide for the participation of chil-
dren enrolled in private and home schools in the activities
and services assisted under such section in the same man-
ner as private school children participate in activities and
services under the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6301 et seq.) pursuant to sections
14503, 14504, 14505, and 14506 of such Act (20 U.S.C.
8893, 8894, 8895, and 8896).
SEC. 5. DEFINITIONS.
In this Act—
(1) the term ‘‘local educational agency’’ has the
meaning given the term in section 14101 of the Ele-
mentary and Secondary Education Act of 1965 (20
U.S.C. 8801);
(2) the term ‘‘Secretary’’ means the Secretary
of Education; and
(3) the term ‘‘State’’ means each of the several
States of the United States, the District of Colum-
bia, the Commonwealth of Puerto Rico, Guam,
American Samoa, the Commonwealth of the North-
ern Mariana Islands, and the United States Virgin
Islands.
Æ