557
gual education programs and special alternative in-
struction programs;
‘‘(2) data collection and dissemination, re-
search, materials development, and technical assist-
ance which is focused on school improvement for
language-minority 
and 
limited-English-proficient
students; and
‘‘(3) programs which strengthen and improve
the professional training of educational personnel
who work with limited-English-proficient and lan-
guage-minority students.
‘‘SEC. 7003. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—For the purpose of carrying out
the provisions of this title (except part F), there are au-
thorized to be appropriated $215,000,000 for the fiscal
year 1995 and such sums as may be necessary for each
of the fiscal years 1996, 1997, 1998, and 1999.
‘‘(b) DISTRIBUTION.—From the sums appropriated
under subsection (a) for any fiscal year, the Secretary
shall reserve at least 25 percent for part C of this title.
‘‘SEC. 7004. DEFINITIONS; REGULATIONS.
‘‘(a) GENERAL RULE.—For purposes of this title—
‘‘(1) The term ‘native language’, when used
with reference to an individual, means the language
normally used by such individuals, or, in the case of
558
a child, the language normally used by the parents
of the child.
‘‘(2) The term ‘language-minority’ means—
‘‘(A) individuals whose native language is
other than English;
‘‘(B) individuals who usually speak a lan-
guage other than English or come from home
environments where a language other than Eng-
lish is usually spoken; or
‘‘(C) American Indians, Alaskan Natives,
and Native Hawaiians and native residents of
the territories and freely associated nations.
‘‘(3) 
The 
term 
‘limited-English-proficient’
means a language-minority person who has difficulty
understanding, speaking, reading, or writing the
English language at a level appropriate to his or her
age and grade and is, thereby, academically dis-
advantaged in programs conducted exclusively in
English.
‘‘(4) The term ‘bilingual education’ refers to
educational programs for limited-English-proficient
students which make instructional use of both Eng-
lish and a student’s native language. Programs of
bilingual education must enable limited-English-pro-
ficient students to achieve English proficiency and
559
academic mastery of subject matter content and
higher order skills, including critical thinking, so as
to meet age-appropriate grade-promotion and grad-
uation standards in concert with national education
goals. Bilingual education programs may also de-
velop the native language skills of limited-English-
proficient students, or ancestral languages of Amer-
ican Indians, Alaskan Natives, Native Hawaiians
and native residents of the territories and freely as-
sociated nations. English proficient students may
participate in bilingual education programs if the
programs are designed to enable all enrolled stu-
dents to become proficient in English and a second
language.
‘‘(5) The term ‘special alternative instructional
program’ refers to educational programs for limited-
English-proficient students which utilize specially de-
signed English language curricula and services but
do not use the student’s native language for instruc-
tional purposes. Special alternative instructional pro-
grams must enable limited-English-proficient stu-
dents to achieve English proficiency and academic
mastery of subject matter content and higher order
skills, including critical thinking so as to meet age-
appropriate grade-promotion and graduation stand-
560
ards in concert with national education goals. Spe-
cial alternative instructional programs are suitable
for schools where the diversity of the limited-Eng-
lish-proficient students’ native languages and the
small number of students speaking each respective
language makes bilingual education impractical and
where there is a critical shortage of bilingual edu-
cation teachers.
‘‘(6) The term ‘family education programs’ re-
fers to bilingual education or special alternative in-
structional programs designed to help limited-Eng-
lish-proficient 
adults 
and 
out-of-school 
youths
achieve proficiency in the English language and to
provide instruction on how parents and family mem-
bers can facilitate the educational achievement of
their children. When feasible, instructional programs
such as the model developed under the Even Start
Literacy Programs that promote adult literacy and
train parents to support the educational growth of
their children shall be developed. Programs shall
give preference to participation by parents and im-
mediate family members of children attending
school. Family education programs may also provide
instruction to facilitate higher education and em-
ployment outcomes.
561
‘‘(7) The term ‘institution of higher education’
has the meaning given such term in section 1201(a)
of the Higher Education Act of 1965.
‘‘(8) The term ‘Office’ means the Office of Bi-
lingual Education and Minority Languages Affairs.
‘‘(9) The term ‘community college’ has the
meaning given such term in section 1201(a) of the
Higher Education Act of 1965 for an institution
which provides not less than a 2-year program which
is acceptable for full credit toward a bachelor’s de-
gree, including institutions receiving assistance
under the Tribally Controlled Community College
Assistance Act of 1978.
‘‘(10) The term ‘paraprofessional’ means an in-
dividual who is employed in preschool or elementary
or secondary school under the supervision of a cer-
tified or licensed teacher, including individuals em-
ployed in bilingual education, special education and
migrant education.
‘‘(11) The term ‘other programs for persons of
limited-English-proficiency’ means any programs ad-
ministered by the Secretary that serve persons of
limited-English-proficiency.
‘‘(12) The term ‘community-based organization’
means a private nonprofit organization or Indian
562
tribe or tribally sanctioned educational authority
which is representative of a community or significant
segments of a community and which provides edu-
cational or related services to individuals in the com-
munity. The term ‘community-based organization’
includes Native Hawaiian organizations (including
Native Hawaiian education organizations) as defined
in section 4009 of Public Law 100–297).
‘‘(13) The term ‘children and youth’ means in-
dividuals aged 3 through 21.
‘‘(14) The term ‘immigrant children and youth’
means individuals who—
‘‘(A) are aged 3 through 21;
‘‘(B) were not born in any State; and
‘‘(C) have not been attending 1 or more
schools in any 1 or more States for more than
2 full academic years.
‘‘(b) REGULATION RULE.—In developing regulations
under this title, the Secretary shall consult with State and
local educational agencies, organizations representing lim-
ited-English-proficient individuals, and organizations rep-
resenting teachers and other personnel involved in bilin-
gual education.
563
‘‘(c) PARENTAL NOTIFICATION.—Parents of children
and youth participating in programs assisted under this
title shall be informed of—
‘‘(1) a student’s level of English proficiency,
how it was assessed, the status of a student’s aca-
demic achievement and the implications of a stu-
dent’s educational strengths and needs for age and
grade appropriate academic attainment, promotion,
and graduation;
‘‘(2) what programs are available to meet the
student’s educational strengths and needs and how
the programs differ in content and instructional
goals, and in the case of a disabled student, how the
program meets the objectives of a student’s individ-
ualized education program;
‘‘(3) the instructional goals of the bilingual edu-
cation or special alternative instructional program,
and how the program will specifically help the lim-
ited-English-proficient student acquire English and
meet age-appropriate standards for grade-promotion
and graduation, including—
‘‘(A) the benefits and nature of the bilin-
gual educational program and of the instruc-
tional alternatives; and
564
‘‘(B) the reasons for the selection of their
child as being in need of bilingual education.
‘‘(4)(A) Parents shall also be informed that
they have the option of declining enrollment of their
children and youth in such programs and shall be
given an opportunity to do so if they so choose.
‘‘(B) Local educational agencies are not relieved
of any of their obligations under title VI of the Civil
Rights Act of 1964 because parents choose not to
enroll their children in bilingual education programs.
‘‘(5) Parents must receive, in a manner and
form understandable to them, including, if necessary
and to the extent feasible, in their native language,
the information required by this subsection. At a
minimum, parents must receive—
‘‘(A) timely information about projects
funded under this part; and
‘‘(B) if the parents of participating chil-
dren so desire, notice of opportunities for regu-
lar meetings for the purpose of formulating and
responding to recommendations from such par-
ents.
‘‘(6) no action may involve the admission or ex-
clusion of students to or from any federally assisted
565
education program merely on the basis of the sur-
names or language-minority status of such students.
‘‘SEC. 7005. INDIAN AND ALASKAN NATIVE CHILDREN IN
SCHOOLS.
‘‘(a) ELIGIBLE ENTITIES.—For the purpose of carry-
ing out programs under this title for individuals served
by elementary, secondary, or postsecondary schools oper-
ated predominately for Indian or Alaska Native children
and youth, an Indian tribe, a tribally sanctioned edu-
cational authority, or an elementary or secondary school
that is operated or funded by the Bureau of Indian Affairs
shall be considered to be a local educational agency as
such term is used in this title, subject to the following
qualifications:
‘‘(1) The term ‘Indian tribe’ means any Indian
tribe, band, nation, or other organized group or com-
munity, including any Alaska Native village or re-
gional or village corporation as defined in or estab-
lished pursuant to the Alaska Native Claims Settle-
ment Act (43 U.S.C. 1601 et seq.), that is recog-
nized for the special programs and services provided
by the United States to Indians because of their sta-
tus as Indians.
‘‘(2) The term ‘tribally sanctioned educational
authority’ means—
566
‘‘(A) any department or division of edu-
cation operating within the administrative
structure of the duly constituted governing body
of an Indian tribe; or
‘‘(B) any nonprofit institution or organiza-
tion that is—
‘‘(i) chartered by the governing body
of an Indian tribe to operate any such
school or otherwise to oversee the delivery
of educational services to members of that
tribe; and
‘‘(ii) approved by the Secretary for
the purpose of this section.
‘‘(b) BUREAU OF INDIAN AFFAIRS SCHOOLS.—From
the sums appropriated pursuant to section 7003, the Sec-
retary is authorized to make payments to applicants to
carry out programs of bilingual education or special alter-
native instruction for Indian children served by elementary
and secondary schools operated or funded by the Bureau
of Indian Affairs.
‘‘(c) ANNUAL REPORT.—(1) The Assistant Secretary
of the Interior for the Bureau of Indian Affairs in collabo-
ration with the Secretary shall submit to the Congress,
the President, and the Secretary, by September 30 of each
year, a report which provides—
567
‘‘(A) an assessment of the educational outcomes
and needs of Indian children with respect to the pur-
poses of this title in schools operated or funded by
the Department of the Interior, including tribes and
local educational agencies receiving assistance under
the Johnson-O’Malley Act and the Native American
Languages Act; and
‘‘(B) an assessment of the extent to which such
needs are being met by funds provided to such
schools for educational purposes through the Sec-
retary of the Interior.
‘‘(2) The results presented in this report shall be in-
cluded in the report under section 7401 of this Act.
‘‘(3) The assessments required under this subsection
shall be waived if such assessments duplicate similar as-
sessment requirements under other Federal or tribal laws.
‘‘SEC. 7006. RESIDENTS OF THE TERRITORIES AND FREELY
ASSOCIATED NATIONS.
‘‘For the purpose of carrying out programs under this
title in Guam and the freely associated nations, the term
‘local educational agency’ shall include public institutions
or agencies whose mission is the preservation and mainte-
nance of native languages.
568
‘‘PART A—BILINGUAL EDUCATION CAPACITY AND
DEMONSTRATION GRANTS
‘‘SEC. 7101. PURPOSE OF GRANTS.
‘‘Grants under this part shall be used to develop the
capacity of local educational agencies, institutions of high-
er education, and community-based organizations which
provide educational programs to initiate, develop, enhance
or improve bilingual education or special alternative in-
struction programs for children and youth of limited-Eng-
lish-proficiency.
‘‘SEC. 7102. PROGRAM DEVELOPMENT AND IMPLEMENTA-
TION GRANTS.
‘‘(a) PURPOSE.—The purpose of this section is to de-
velop and implement new comprehensive, coherent, and
successful bilingual education or special alternative in-
structional programs for limited-English-proficient stu-
dents including programs of early childhood education, K–
12 education, gifted and talented education, and voca-
tional and applied technology education.
‘‘(b) PROGRAM AUTHORIZED.—
‘‘(1) The Secretary is authorized to make pro-
gram development and implementation grants of up
to $100,000 annually for 3 years with 1 additional
year upon the Secretary’s approval.
569
‘‘(2) Grants approved under this section shall
be used to improve the education of limited-English-
proficient students and their families by—
‘‘(A) developing and implementing com-
prehensive preschool, elementary, or secondary
bilingual education or special alternative in-
structional programs that are coordinated with
other relevant programs and services to meet
the full range of educational needs of limited-
English-proficient students; and
‘‘(B) providing in service training to class-
room teachers, administrators, and other school
or community-based organizational personnel to
improve the instruction and assessment of lan-
guage-minority and limited-English-proficient
students.
‘‘(3) Grants approved under this section may be
used to improve the education of limited-English-
proficient students and their families by—
‘‘(A) implementing family education pro-
grams and activities; and
‘‘(B) improving the instructional program
for limited-English-proficient students by up-
grading curriculum, instructional materials, and
570
assessment procedures and, if appropriate, ap-
plying educational technology.
‘‘(c) ELIGIBLE ENTITIES.—A grant may be made
under this section only upon application by one or more
local educational agencies, applying alone or in collabora-
tion with an institution of higher education, community-
based organization or local or State educational agency.
A grant may also be made under this section upon applica-
tion by a community-based organization which is agreed
to by the local educational agency to develop and imple-
ment early childhood education or family education pro-
grams or to conduct an instructional program which sup-
plements the educational services provided by a local edu-
cational agency.
‘‘(d) DISTRIBUTION.—The Secretary shall, to the ex-
tent practicable, award grants equally among early child-
hood education, elementary education, and secondary edu-
cation programs.
‘‘SEC. 7103. PROGRAM ENHANCEMENT PROJECTS.
‘‘(a) PURPOSE.—The purpose of this section is to
carry out highly focused, innovative, locally designed
projects to expand or enhance existing bilingual education
or special alternative instructional programs for limited-
English-proficient students.
‘‘(b) PROGRAM AUTHORIZED.—
571
‘‘(1) The Secretary is authorized to make pro-
gram enhancement project grants of up to $100,000
for 2 years to eligible applicants.
‘‘(2) Grants approved under this section shall
be used for providing in-service training to classroom
teachers, administrators, and other school or com-
munity-based organization personnel to improve the
instruction and assessment of language-minority and
limited-English-proficient students.
‘‘(3) Grants approved under this section may be
used for—
‘‘(A) improving the instructional program
for limited-English-proficient students by up-
grading curriculum, instructional materials, and
assessment procedures and, if appropriate, ap-
plying educational technology;
‘‘(B) implementing family education pro-
grams and activities; and
‘‘(C) providing intensified instruction.
‘‘(c) ELIGIBLE ENTITIES.—A grant may be made
under this section only upon application by one or more
local educational agencies, applying alone or in collabora-
tion with an institution of higher education, community-
based organization or local or State educational agency.
A grant also may be made under this section upon applica-
572
tion by a community-based organization which is agreed
to by the local educational agency to enhance early child-
hood education or family education programs or to con-
duct an instructional project which supplements the edu-
cational services provided by a local educational agency.
‘‘SEC. 7104. WHOLE-SCHOOL PROGRAMS.
‘‘(a) PURPOSE.—The purpose of this section is to
provide financial assistance to eligible applicants to re-
form, restructure, and upgrade all relevant programs and
operations within an individual school to fulfill the com-
prehensive educational needs of all of a school’s limited-
English-proficient students and their families.
‘‘(b) PROGRAM AUTHORIZED.—
‘‘(1) The Secretary is authorized to make 5-
year grants of up to $100,000 for the first year and
up to $250,000 for each of the subsequent 4 years
to eligible applicants.
‘‘(2) Grants approved under this section shall
be used to improve education of limited-English-pro-
ficient students and their families by reviewing, re-
structuring, and upgrading in-service training for all
school staff and, if appropriate, for community-based
organization personnel.
‘‘(3) Grants approved under this section may be
used to improve the education of limited-English-
573
proficient students and their families by reviewing,
restructuring, and upgrading—
‘‘(A) the school’s instructional program for
limited-English-proficient 
students 
including
curriculum, instructional materials, and assess-
ment systems, and, if appropriate, the applica-
tion of educational technology;
‘‘(B) family education programs and activi-
ties; and
‘‘(C) intensified instruction.
‘‘(4) During the first year of the grant, a prior-
ity is established in use of funds for preparatory ac-
tivities including planning, training, curriculum de-
velopment, and materials acquisition or development.
‘‘(c) ELIGIBLE ENTITIES.—A grant may be made
under this section only upon application by one or more
local educational agencies, applying alone or in collabora-
tion with an institution of higher education, community-
based organizations or local or State educational agency.
‘‘SEC. 7105. SYSTEM-WIDE IMPROVEMENT GRANTS.
‘‘(a) PURPOSE.—The purpose of this section is to
provide financial assistance to improve, reform, and up-
grade relevant programs and operations with an entire
local educational agency to fulfill the comprehensive edu-
574
cational needs of all the agency’s limited-English-pro-
ficient students and, to the extent feasible, their families.
‘‘(b) PROGRAM AUTHORIZED.—
‘‘(1) The Secretary is authorized to make 5-
year grants of up to $1,000,000 for the first year
and up to $5,000,000 for each of the subsequent 4
years to eligible applicants.
‘‘(2) Grants approved under this section may be
used during the first 12 months exclusively for ac-
tivities preparatory to the delivery of services.
‘‘(3) Grants approved under this section may be
used to improve education of limited-English-pro-
ficient students and their families by reviewing, re-
structuring, and upgrading—
‘‘(A) educational goals, curriculum guide-
lines and content, standards and assessments;
‘‘(B) personnel policies and practices in-
cluding recruitment, certification, staff develop-
ment, and assignment;
‘‘(C) student grade-promotion and gradua-
tion requirements;
‘‘(D) student assignment policies and prac-
tices;
‘‘(E) program delivery standards, manage-
ment information and accountability systems;
575
‘‘(F) instructional and extracurricular pro-
grams and services; and
‘‘(G) application of educational technology.
‘‘(c) ELIGIBLE ENTITIES.—A grant may be made
under this section only upon application by one or more
local educational agencies, applying alone or in collabora-
tion with an institution of higher education, community-
based organization or local or State educational agency.
‘‘(d) PRIORITY.—The Secretary shall give priority to
applications from—
‘‘(1) applicants which enroll a large percentage
or large number of limited-English-proficient stu-
dents; and
‘‘(2) consortia of eligible applicants to serve
limited-English-proficient students in rural and lin-
guistically isolated settings.
‘‘SEC. 7106. APPLICATIONS.
‘‘(a) SUBMISSION.—To receive a grant under this
part, applicants shall submit an application to the Sec-
retary in such form and containing such information as
the Secretary may require:
‘‘(1) An application for a grant under this part
shall be developed in consultation with, and shall
provide for the continuing involvement of, an advi-
sory council which shall be composed of representa-
576
tives responsible for implementing grant activities
and of parents and other relatives of the children to
be served in such programs; parents shall comprise
a majority of all council members.
‘‘(2) All applicants for grants under this part,
except for those applicants identified in section
7005, shall submit a copy of the application to the
relevant State educational agency. The State edu-
cational agency may submit to the Secretary written
comments on the application with respect to how the
applications further State education improvement
plans including any developed under Goals 2000:
Educate America Act (if such plans exist) or title I
of this Act. If the State educational agency of a
State submits written comments on any application,
it must submit written comment on all applications
within that same grant category from within that
State. The Secretary shall take comments into con-
sideration when funding applications under this
part.
‘‘(b) REQUIRED DOCUMENTATION.—Such applica-
tion shall include documentation that the applicant has
the qualified personnel required to develop, administer,
and implement the proposed program.
578
‘‘(iii) involves the parents of the children
and youth of limited-English-proficiency to be
served;
‘‘(iv) ensures accountability in the expected
student outcomes; and
‘‘(v) promotes coordination of services for
the children and youth of limited-English-pro-
ficiency to be served and their families.
‘‘(C) A description, if appropriate, of the appli-
cant’s collaborative activities with institutions of
higher education, community-based organizations,
local or State educational agencies, private schools,
nonprofit organizations, or businesses in carrying
out the proposed program.
‘‘(D) An assurance that the applicant will not
reduce the level of State and local funds that it ex-
pends for bilingual education or special alternative
instruction programs if it receives an award under
this part.
‘‘(E) A budget for grant funds.
‘‘(2) An application for a grant under section 7102
or 7104 shall also contain a description of the instruc-
tional program, student services, in-service training, and
family education programs to be provided under the grant.
579
‘‘(3) An application for a grant under section 7103
shall also contain the following:
‘‘(A) A description of the existing bilingual edu-
cation or special alternative instruction program
which the project is designed to enhance.
‘‘(B) A description of the proposed project ac-
tivities.
‘‘(4) An application for a grant under section 7105
shall also contain a description of the activities which
would be carried out under the grant.
‘‘(d) APPROVAL OF APPLICATIONS.—An application
for a grant under this part may be approved only if the
Secretary determines that—
‘‘(1) the program will use qualified personnel,
including those personnel who are proficient in the
language or languages used for instruction;
‘‘(2) in designing the program for which appli-
cation is made, the needs of children in nonprofit
private elementary and secondary schools have been
taken into account through consultation with appro-
priate private school officials and, consistent with
the number of such children enrolled in such schools
in the area to be served whose educational needs are
of the type and whose language and grade levels are
of a similar type that the program is intended to ad-
580
dress, after consultation with appropriate private
school officials, provision has been made for the par-
ticipation of such children on a basis comparable to
that provided for public school children;
‘‘(3) student evaluation and assessment proce-
dures in the program are valid, reliable, and fair for
limited-English-proficient students, and that limited-
English-proficient students who are disabled are
identified and served in accordance with the require-
ments of the Individuals with Disabilities Education
Act;
‘‘(4) Federal funds made available for the
project or activity will be used so as to supplement
the level of State and local funds that, in the ab-
sence of such Federal funds, would have been ex-
pended for special programs for children of limited-
English-proficient individuals and in no case to sup-
plant such State and local funds, except that noth-
ing in this paragraph shall preclude a local edu-
cational agency from using funds under this title for
activities carried out under an order of a court of
the United States or of any State respecting services
to be provided such children, or to carry out a plan
approved by the Secretary as adequate under title
581
VI of the Civil Rights Act of 1964 with respect to
services to be provided such children;
‘‘(5) the assistance provided under the applica-
tion will contribute toward building the capacity of
the applicant to provide a program on a regular
basis, similar to that proposed for assistance, which
will be of sufficient size, scope, and quality to prom-
ise significant improvement in the education of stu-
dents of limited-English-proficiency, and that the ap-
plicant will have the resources and commitment to
continue the program when assistance under this
title is reduced or no longer available; and
‘‘(6) the applicant provides for utilization of the
State and national dissemination sources for pro-
gram design and in dissemination of results and
products.
‘‘(e) SPECIAL CONSIDERATION AND PRIORITIES.—
‘‘(1) Students may participate in any program
receiving funds under this part for the duration of
the program.
‘‘(2) The Secretary shall give priority to appli-
cations which provide for the development of bilin-
gual proficiency for all participating students.
‘‘(3) Grants for special alternative instructional
programs shall not exceed 25 percent of the funds
582
provided for any type of grant under any section or
of total funds provided under this part.
‘‘(4) Notwithstanding paragraph (3), the Sec-
retary may award grants for special alternative in-
structional programs if an applicant has dem-
onstrated that they cannot develop and implement a
bilingual education program for the following rea-
sons:
‘‘(A) Where the diversity of the limited-
English-proficient students’ native languages
and the small number of students speaking
each respective language makes bilingual edu-
cation impractical.
‘‘(B) Where, despite documented convinc-
ing efforts, the applicant has not been able to
hire instructional personnel who are able to
communicate in the students’ native language.
‘‘(5) In approving applications under this part,
the Secretary shall give consideration to the degree
to which the program for which assistance is sought
involves the collaborative efforts of institutions of
higher education, community-based organizations,
the appropriate local and State educational agency,
or business.
583
‘‘(6) The Secretary shall ensure that projects
funded under this part address the full needs of
school systems of all sizes and geographical areas,
including rural schools.
‘‘(7) The Secretary shall give priority to appli-
cations providing training for personnel participating
in or preparing to participate in the program which
will assist them in meeting State and local certifi-
cation requirements and that, to the extent possible,
college or university credit will be awarded for such
training.
‘‘SEC. 7107. INTENSIFIED INSTRUCTION.
‘‘In carrying out this part, each grant recipient may
intensify instruction for limited-English-proficient stu-
dents by—
‘‘(1) expanding the educational calendar of the
school in which such student is enrolled to include
programs before and after school and during the
summer months;
‘‘(2) expanding the use of professional and vol-
unteer aids;
‘‘(3) applying technology to the course of in-
struction; and
‘‘(4) providing intensified instruction through
supplementary instruction or activities, including
584
educationally enriching extracurricular activities,
during times when school is not routinely in session.
‘‘SEC. 7108. CAPACITY BUILDING.
‘‘Each recipient of a grant under this part shall use
its grant in ways that will build its capacity to continue
to offer high-quality bilingual and special alternative edu-
cation programs and services to children and youth of lim-
ited-English-proficiency once Federal assistance is re-
duced or eliminated.
‘‘SEC. 7109. SUBGRANTS.
‘‘A local educational agency that receives a grant
under this part may, with the approval of the Secretary,
make a subgrant to, or enter into a contract with, an insti-
tution of higher education, a non-profit organization, or
a consortium of such entities to carry out an approved
program, including a program to serve out-of-school
youth.
‘‘SEC. 7110. GEOGRAPHIC DISTRIBUTION OF FUNDS.
‘‘To the extent possible, the Secretary shall award
funds under this part throughout the Nation in a manner
that reflects the geographic distribution of children and
youth of limited-English-proficiency.
‘‘SEC. 7111. PROGRAMS IN PUERTO RICO.
‘‘Programs authorized under this title in the Com-
monwealth of Puerto Rico may, notwithstanding any other
585
provision of this title, include programs of instruction,
teacher training, curriculum development, evaluation, and
testing designed for children and youth of limited-Spanish
proficiency.
‘‘SEC. 7112. EVALUATIONS.
‘‘(a) EVALUATION.—Each recipient of funds under
this part shall provide the Secretary with an evaluation,
in the form prescribed by the Secretary, of its program
every two years.
‘‘(b) USE OF EVALUATION.—Such evaluation shall be
used by a grantee—
‘‘(1) for program improvement;
‘‘(2) to further define the local program’s goals
and objectives; and
‘‘(3) to determine program effectiveness.
‘‘(c) EVALUATION COMPONENTS.—Evaluations shall
include—
‘‘(1) student outcome indicators that measure
progress toward the performance standards set out
in the State’s plan, either approved or being devel-
oped, under title III of the Goals 2000: Educate
America Act, or, if the State does not have an ap-
proved plan under title III of the Goals 2000: Edu-
cate America Act and is not developing such a plan,
with the State plan approved or being developed
586
under section 1111 of this Act, including data com-
paring children and youth of limited-English-pro-
ficiency with non-limited-English-proficient children
and youth with regard to school retention, academic
achievement, and gains in English (and, where appli-
cable, native language) proficiency;
‘‘(2) program implementation indicators that
provide information for informing and improving
program management and effectiveness, including
data on appropriateness of curriculum in relation-
ship to grade and course requirements, appropriate-
ness of program management, appropriateness of
the program’s staff professional development, and
appropriateness of the language of instruction;
‘‘(3) program context indicators that describe
the relationship of the activities funded under the
grant to the overall school program and other Fed-
eral, State, or local programs serving children and
youth of limited-English-proficiency; and
‘‘(4) such other information as the Secretary
may require.
‘‘PART B—RESEARCH AND DISSEMINATION
‘‘SEC. 7201. USE OF FUNDS.
‘‘The Secretary is authorized to conduct data collec-
tion, dissemination, research, and evaluation activities
587
through the Office of Bilingual Education and Minority
Languages Affairs for the purpose of improving bilingual
education and special alternative instruction programs for
children and youth of limited-English-proficiency.
‘‘SEC. 7202. RESEARCH.
‘‘(a) RESEARCH ACTIVITIES.—The Secretary shall
support through competitive grants contracts and coopera-
tive agreements to institutions of higher education, non-
profit and for-profit organizations, and local and State
educational agencies, funds for research with a practical
application to teachers, counselors, paraprofessionals,
school administrators, parents, and others involved in im-
proving the education of limited-English-proficient stu-
dents and their families.
‘‘(b) AUTHORIZED ACTIVITIES.—
‘‘(1) The Secretary may conduct research ac-
tivities that include—
‘‘(A) identifying criteria for the establish-
ment, use and monitoring of local, State, or na-
tional education goals, content, performance
and delivery standards, and assessments for all
students that provide for appropriate, valid, re-
liable, and fair participation by limited-English-
proficient and language-minority students;
588
‘‘(B) identifying determinants of appro-
priate high quality secondary school programs
for limited-English-proficient students, and high
quality curriculum-related instructional mate-
rials;
‘‘(C) identifying determinants of appro-
priate high quality early childhood development
programs for limited-English-proficient chil-
dren, including families, and appropriate high
quality materials;
‘‘(D) studies to identify models of effective
program coordination that support students
while in transition to English language class-
rooms that develop and maintain high levels of
proficiency in the native languages and English;
‘‘(E) studies of effective curricula and in-
structional strategies for the development and
maintenance of high levels of student pro-
ficiency in both their native language and Eng-
lish, including the role of family, community,
and career contexts;
‘‘(F) identification of strategies for effec-
tive participation by limited-English-proficient
parents in their children’s education for attain-
ment of educational excellence;
589
‘‘(G) identifying methods of improving
classification, placement, and services to lim-
ited-English-proficient students including, but
not limited to their participation in early child-
hood development programs, title I, special edu-
cation, foreign language education, and gifted
and talented education;
‘‘(H) identification of methods for effective
delivery of bilingual education to rural schools
and in the less-commonly-taught languages
using educational technology and electronic
communications networks;
‘‘(I) identification of trends in demand for
language skills and of career opportunities for
individuals with high levels of proficiency in
English and a second language; and
‘‘(J) establishing through the National
Center for Education Statistics and in consulta-
tion with the Office of Bilingual Education and
Minority Languages Affairs, and experts in bi-
lingual education, second language acquisition
and English-as-a-second language, a common
definition of ‘limited-English-proficient student’
for purposes of national data collection.
590
‘‘(c) FIELD-INITIATED RESEARCH.—The Secretary
shall reserve at least 5 percent of the funds available
under this section for field-initiated research by current
or recent recipients of grants under parts A or C of this
title. Research must be conducted by current grant recipi-
ents or by former recipients who have received such grants
within the previous 5 years. Field-initiated research may
provide for longitudinal studies of students or teachers in
bilingual education, monitoring the education of such stu-
dents from entry in bilingual education through high
school completion. Applicants may submit an application
for field-initiated research at the same time as applica-
tions are submitted under part A or part C. The Secretary
shall complete a review of such applications on a timely
basis to allow research and program grants to proceed in
coordination where appropriate.
‘‘(d) CONSULTATION.—The Secretary shall consult
with agencies and organizations that are engaged in bilin-
gual education research and practice, or related research,
and bilingual education researchers and practitioners to
identify areas of study and activities to be funded under
this section.
‘‘(e) COORDINATION.—Research activities supported
under this section—
591
‘‘(1) shall be carried out in consultation with
the Office of Educational Research and Improve-
ment to ensure that such activities are coordinated
with and enhance the research and development ac-
tivities supported by the Office; and
‘‘(2) may include collaborative research activi-
ties which are jointly funded and carried out by the
Office of Bilingual Education and Minority Lan-
guage Affairs and the Office of Educational Re-
search and Improvement.
‘‘(f) DATA COLLECTION.—The Secretary shall pro-
vide for the continuation of data collection on limited-Eng-
lish-proficient students as part of the data systems oper-
ated by the Department.
‘‘SEC. 7203. ACADEMIC EXCELLENCE AWARDS.
‘‘(a) AWARDS.—The Secretary may make grants to,
and enter into contracts and cooperative agreements with,
State and local educational agencies, nonprofit organiza-
tions, and institutions of higher education to promote the
adoption and implementation of bilingual education, spe-
cial alternative instruction programs, and professional de-
velopment programs that demonstrate great promise of as-
sisting children and youth of limited-English-proficiency
to meet challenging State standards.
592
‘‘(b) APPLICATIONS.—(1) An entity desiring to re-
ceive an award under this section shall submit an applica-
tion to the Secretary in such form, at such time, and con-
taining such information and assurances as the Secretary
may require.
‘‘(2) The Secretary shall use a peer review process,
using effectiveness criteria that the Secretary shall estab-
lish, to review applications under this section.
‘‘(c) USE OF FUNDS.—Funds under this section shall
be used to enhance the capacity of States and local edu-
cation agencies to provide high quality academic programs
for children and youth of limited-English-proficiency,
which may include—
‘‘(1) completing the development of such pro-
grams;
‘‘(2) professional development of staff partici-
pating in bilingual education programs;
‘‘(3) sharing strategies and materials; and
‘‘(4) supporting professional networks.
‘‘(d) COORDINATION.—Recipients of funds under this
section shall coordinate their activities with those carried
out by comprehensive technical assistance centers under
title II of this Act.
593
‘‘SEC. 7204. STATE GRANT PROGRAM.
‘‘(a) STATE GRANT PROGRAM.—The Secretary is au-
thorized to make an award to a State educational agency
that demonstrates, to the satisfaction of the Secretary,
that its approved plan under title III of the Goals 2000:
Educate America Act, if such plan exists, or, if such plan
does not exist, its plan under title I of this Act, effectively
provides for the education of children and youth of lim-
ited-English-proficiency within the State.
‘‘(b) PAYMENTS.—The amount paid to a State edu-
cational agency under subsection (a) shall not be less than
$100,000 nor greater than 5 percent of the total amount
awarded to local educational agencies within the State
under part A of this title for the previous fiscal year.
‘‘(c) USE OF FUNDS.—(1) A State educational agen-
cy shall use funds for programs authorized by this section
to—
‘‘(A) assist local educational agencies in the
State with program design, capacity building, assess-
ment of student performance, and program evalua-
tion; and
‘‘(B) collect data on the State’s language-mi-
nority and limited-English-proficient populations and
the educational programs and services available to
these populations.
594
‘‘(2) EXCEPTION.—States which do not, as of the
date of enactment of this Act, have in place a system for
collecting such data for all students in such State, are not
required to meet the requirement of this section as it per-
tains to the educational programs and services available
to limited-English-proficient students. In the event such
State develops a system for collecting data on the edu-
cational programs and services available to all students in
the State, then such State is required to comply with this
requirement.
‘‘(3) The State educational agency may also use
funds for the training of State educational agency person-
nel in educational issues affecting limited-English-pro-
ficient children and youth.
‘‘(4) Recipients of awards under this section shall not
restrict the provision of services under this section to fed-
erally-funded programs.
‘‘(d) STATE CONSULTATION.—A State educational
agency receiving funds under this section shall consult
with recipients of grants under this title and other individ-
uals or organizations involved in the development or oper-
ation of programs serving limited-English-proficient chil-
dren or youth to ensure that funds are used in a manner
consistent with the requirements of this title.
595
‘‘(e) APPLICATIONS.—A State educational agency de-
siring to receive an award under this section shall submit
an application to the Secretary in such form, at such time,
containing such information and assurances as the Sec-
retary may require.
‘‘(f) SUPPLEMENT NOT SUPPLANT.—Funds made
available under this section for any fiscal year shall be
used by the State educational agency to supplement and,
to the extent practical, to increase to level of funds that
would, in the absence of such funds, be made available
by the State for the purposes described in this section,
and in no case to supplant such funds.
‘‘(g) REPORT
TO
THE SECRETARY.—State edu-
cational agencies receiving grants under this section shall
provide for the annual submission of a summary report
to the Secretary containing information on such matters
as the Secretary shall, by regulation, determine necessary
and proper to achieve the purposes of this title, including
information on State capacity and progress in meeting the
education needs of all limited-English-proficient children,
plans for additional action, the effect of standards and as-
sessments in improving their education. Such reports shall
be in such form and shall be submitted on such date as
the Secretary shall specify by regulation.
596
‘‘SEC. 7205. NATIONAL CLEARINGHOUSE FOR BILINGUAL
EDUCATION.
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish and support the operation of a National Clearinghouse
for Bilingual Education, which shall collect, analyze, syn-
thesize, and disseminate information about bilingual edu-
cation and related programs.
‘‘(b) FUNCTIONS.—The National Clearinghouse for
Bilingual Education shall—
‘‘(1) be administered as an adjunct clearing-
house of the ERIC system of clearinghouses sup-
ported by the Office of Educational Research and
Improvement;
‘‘(2) coordinate its activities with Federal data
and information clearinghouses and dissemination
networks and systems; and
‘‘(3) develop a data base management and mon-
itoring system for improving the operation and effec-
tiveness of funded programs.
‘‘SEC. 7206. INSTRUCTIONAL MATERIALS DEVELOPMENT.
‘‘The Secretary may provide grants for the develop-
ment, publication and dissemination of high quality in-
structional materials in Native American, Native Hawai-
ian and other languages for which instructional materials
are not readily available. The Secretary shall give priority
to the development of instructional materials in languages
597
indigenous to the United States, its territories, and freely
associated nations. The Secretary shall also accord prior-
ity to applications which provide for developing and evalu-
ating materials in collaboration with activities under parts
A and C of this title and which are consistent with na-
tional and State content standards.
‘‘SEC. 
7207. 
EVALUATION 
ASSISTANCE 
CENTERS 
AND
MULTIFUNCTIONAL RESOURCE CENTERS.
‘‘(a) TRANSITION.—The Secretary shall extend
grants or contracts for Evaluation Assistance Centers and
Multifunctional Resource Centers that are in effect on the
date of enactment of the Improving America’s School Act
through fiscal year 1996.
‘‘(b) CONTINUITY OF SERVICES.—(1) The Secretary
shall ensure that the comprehensive regional technical as-
sistance centers authorized under title II of this Act pro-
vide services which are at least equal in volume, scope,
and quality to those provided by Evaluation Assistance
Centers and Multifunctional Resource Centers.
‘‘(2) The Secretary shall ensure that the comprehen-
sive regional technical assistance centers authorized under
title II of this Act, as amended by the Improving Ameri-
ca’s School Act, provide services which enable children and
youth of limited-English-proficiency to meet challenging
State and National standards.
598
‘‘(3) The Secretary shall ensure that the comprehen-
sive technical assistance centers authorized under title II
of this Act are established with consideration given to the
geographic and linguistic distribution of children and
youth of limited-English-proficiency.
‘‘(c) GIFTS, BEQUESTS, AND DEVISES.—The entities
may accept (but not solicit), use, and dispose of gifts, be-
quests, or devises of services or property, both real and
personal for the purpose of aiding or facilitating the work
of entities under this section. Gifts, bequests, or devises
of money and proceeds from sales of other property re-
ceived as gifts, bequests or devises shall be deposited in
the Treasury and shall be available for disbursement upon
order of the national clearinghouse on bilingual education,
the Evaluation and Assistance Center or Multifunctional
Resource Center, respectively.
‘‘PART C—BILINGUAL EDUCATION TEACHER
TRAINING
‘‘SEC. 7301. PURPOSE.
‘‘The purpose of this part is to assist in preparing
educators to improve the delivery of educational services
to language-minority and limited-English-proficient chil-
dren and youth. This part supports the training of all edu-
cational personnel to serve more effectively limited-Eng-
lish-proficient students. The goal of this part is to provide
599
for the training of not less than 50,000 teachers who meet
professional preparation and certification standards for bi-
lingual education teachers by the year 2000.
‘‘SEC. 7302. TRAINING FOR ALL TEACHERS PROGRAM.
‘‘(a) PURPOSE.—The purpose of this section is to
provide for the incorporation of courses and curricula on
appropriate and effective instructional and assessment
methodologies, strategies and resources specific to limited-
English-proficient and language-minority students into
education personnel preparation programs for teachers,
counselors, administrators and other education personnel.
‘‘(b) AUTHORIZATION.—The Secretary shall award
grants for up to 5 years to institutions of higher edu-
cation, local educational agencies, and State educational
agencies or to nonprofit organizations which have entered
into consortia arrangements with one of such institutions,
agencies, or organizations.
‘‘(c) PERMISSIBLE ACTIVITIES.—Activities conducted
under this section may include the development of training
programs in collaboration with training under titles I and
II of this Act, the Head Start Act, and other relevant
programs.
‘‘(d) PRIORITY.—The Secretary shall give priority to
applications from institutions of higher education which
currently operate, with full-time tenured faculty, programs
600
to prepare educators and administrators to work with lan-
guage-minority and limited-English-proficient students in
bilingual education settings and from institutions of high-
er education which are attempting to start bilingual teach-
er training programs if such institutions demonstrate a
significant commitment in financial and human resources,
including cash and in-kind. The Secretary shall give spe-
cial consideration to applications for such programs which
provide training of secondary school teachers or early
childhood development teachers. Such special consider-
ation would not disallow the funding of applications for
exemplary programs for the training of elementary school
teachers.
‘‘SEC. 7303. BILINGUAL EDUCATION TEACHERS AND PER-
SONNEL GRANTS.
‘‘(a) PURPOSE.—The purpose of this section is to
provide for degree programs to prepare new bilingual edu-
cation teachers, administrators, counselors, and other edu-
cational personnel to meet high professional standards for
bilingual education teachers and to increase the availabil-
ity of educators to provide high quality education limited-
English-proficient students.
‘‘(b) AUTHORIZATION.—The Secretary shall award
grants for up to 5 years to institutions of higher education
in consortia with local or State educational agencies.
601
‘‘SEC. 7304. BILINGUAL EDUCATION CAREER LADDER PRO-
GRAM.
‘‘(a) PURPOSE.—The purpose of this section is to up-
grade the qualifications and skills of non-certified edu-
cational personnel, especially educational paraprofes-
sionals, to meet high professional standards, including cer-
tification and licensure as bilingual education teachers and
other educational personnel who serve limited-English-pro-
ficient students, through collaborative training programs
operated by institutions of higher education and local and
State educational agencies. Grants for programs under
this section may also provide for collaborative programs
operated by institutions of higher education and secondary
schools which are designed to recruit and train secondary
school students as bilingual education teachers and other
educational personnel to serve limited-English-proficient
students.
‘‘(b) AUTHORIZATION.—The Secretary shall award
grants of up to 5 years for bilingual education career lad-
der programs to institutions of higher education applying
in consortia with local or State educational agencies; con-
sortia may include community-based organizations or pro-
fessional education organizations.
‘‘(c) ACTIVITIES.—Grants funded under this section
may—
602
‘‘(1) include the development of bilingual edu-
cation career ladder program curricula appropriate
to the needs of the consortium participants;
‘‘(2) provide assistance for stipends and costs
related to tuition, fees and books for enrolling in
courses required to complete degree and certification
requirements as bilingual education teachers; and
‘‘(3) include programs to introduce secondary
school students to careers in bilingual education
teaching that are coordinated with other activities
under this program.
‘‘(d) SPECIAL CONSIDERATION.—The Secretary shall
give special consideration to applications under this sec-
tion which provide for—
‘‘(1) participant completion of baccalaureate
and masters degree teacher education programs, cer-
tification and may include effective employment
placement activities;
‘‘(2) development of teacher proficiency in Eng-
lish and a second language, including required dem-
onstration of proficiency in the instructional use of
English and a second language in classroom con-
texts;
‘‘(3) coordination with Trio, the Teacher Corps,
National Community and Service Trust Act, Mini
603
Corps, and other programs for the recruitment and
retention of bilingual students in secondary and
post-secondary programs to train as bilingual edu-
cators; and
‘‘(4) the applicant’s contribution of additional
student financial aid to participating students.
‘‘SEC. 7305. GRADUATE FELLOWSHIPS IN BILINGUAL EDU-
CATION PROGRAM.
‘‘(a) AUTHORIZATION.—The Secretary may award
fellowships for masters, doctoral, and post-doctoral study
related to instruction of children and youth of limited-
English-proficiency in such areas as teacher training, pro-
gram administration, research and evaluation, and cur-
riculum development, and for the support of dissertation
research related to such study. For fiscal year 1994 not
less than 500 fellowships leading to a masters or doctorate
degree shall be awarded under this section, rising each
subsequent year of this authorization by not less than 50.
The Secretary shall include information on the operation
and the number of fellowships awarded under the fellow-
ship program in the report required under section 7401
of this title.
‘‘(b) FELLOWSHIP REQUIREMENTS.—(1) Any person
receiving a fellowship under this section shall agree to—
604
‘‘(A) work in an activity related to the program
or in an activity such as those authorized under this
title, including work as a bilingual education teacher,
for a period of time equivalent to the period of time
during which such person receives assistance under
this title; or
‘‘(B) repay such assistance.
‘‘(2) The Secretary shall establish in regulations such
terms and conditions for such agreement as the Secretary
deems reasonable and necessary and may waive the re-
quirement of paragraph (1) in extraordinary cir-
cumstances.
‘‘(c) The Secretary may give priority to institutions
of higher education that demonstrate experience in assist-
ing fellowship recipients find employment in the field of
bilingual education.
‘‘SEC. 7306. APPLICATIONS.
‘‘(a) IN GENERAL.—Each applicant or consortium
that desires to receive a grant under this part shall submit
an application to the Secretary and the State educational
agency or State board for higher education as appropriate,
at such time and in such manner as the Secretary shall
prescribe. The application shall demonstrate integration,
where appropriate, with the State and local plans, if such
plans exist, for serving limited-English-proficient students.
605
The State and local educational agency, and where appli-
cable the State board for higher education, may comment
in writing on the application indicating how the applica-
tion furthers State education reform activities, including
the provision of appropriate high quality education to all
language minority students. If the State educational agen-
cy or State Board for Higher Education submits com-
ments on any application, it shall submit comments on all.
The Secretary shall take any written comments that have
been made into consideration when considering applica-
tions under this part.
‘‘(b) ELIGIBLE ENTITIES.—
‘‘(1) A grant may be made under this part
upon application of an institution of higher edu-
cation, applying individually or jointly with one or
more local educational agencies, nonprofit organiza-
tions, or State educational agencies.
‘‘(2) The Secretary shall provide for outreach
and technical assistance to institutions of higher
education eligible under title III of the Higher Edu-
cation Act and institutions of higher education that
are operated or funded by the Bureau of Indian Af-
fairs to facilitate their participation in activities
under this part.
606
‘‘(3) In making grants under this part, the Sec-
retary shall, consistent with subsection (d), ensure
adequate representation of Hispanic serving institu-
tions that demonstrate competence and experience in
the programs and activities authorized under this
title and are otherwise qualified.
‘‘(c) APPLICATION REQUIREMENTS FOR BILINGUAL
TEACHER TRAINING PROGRAMS.—The application shall
demonstrate integration, where appropriate, with the
State plan, if one exists, for serving limited-English-pro-
ficient students.
‘‘(d) PREFERENCE IN ASSISTANCE AND PURPOSE OF
TRAINING.—
‘‘(1) In making a grant under this part the Sec-
retary shall give preference to programs which—
‘‘(A) include tenured faculty in bilingual
education;
‘‘(B) and for institutions of higher edu-
cation which are attempting to start bilingual
teacher training programs if such institutions
demonstrate a significant commitment in finan-
cial and human resources, including cash and
in-kind; and
‘‘(C) provide additional resources for such
training from other sources.
607
‘‘(2) In making grants under sections 7302,
7303 and 7304, the Secretary shall give special con-
sideration to programs that ensure that individuals
completing such programs demonstrate proficiency
in English and a second language.
‘‘SEC. 7307. PROGRAM REQUIREMENTS.
‘‘Activities conducted under this part shall assist edu-
cational personnel in meeting State and local certification
requirements for bilingual education and, wherever pos-
sible, shall award college or university credit.
‘‘SEC. 7308. STIPENDS.
‘‘The Secretary shall provide for the payment of such
stipends (including allowances for subsistence and other
expenses for such persons and their dependents), as the
Secretary determines to be appropriate, to persons partici-
pating in training programs under this part.
‘‘SEC. 7309. PROGRAM EVALUATIONS UNDER PART C.
‘‘Each recipient of funds under part C of this title
shall provide the Secretary with an evaluation of its pro-
gram every two years. Such evaluation shall include data
on—
‘‘(1) 
post-program 
placement 
of 
persons
trained;
‘‘(2) how the training relates to the employment
of persons served by the program;
608
‘‘(3) program completion; and
‘‘(4) such other information as the Secretary
may require.
‘‘PART D—ADMINISTRATION
‘‘SEC. 7401. OFFICE OF BILINGUAL EDUCATION AND MINOR-
ITY LANGUAGE AFFAIRS.
‘‘(a) ESTABLISHMENT.—There shall be, in the De-
partment of Education, an Office of Bilingual Education
and Minority Languages Affairs through which the Sec-
retary shall carry out functions relating to bilingual edu-
cation.
‘‘(b) DIRECTOR.—(1) The Office shall be headed by
a Director of Bilingual Education and Minority Lan-
guages Affairs, appointed by the Secretary, to whom the
Secretary shall delegate all delegable functions relating to
bilingual education. The Director shall also be assigned
responsibility for recommending improvements and provid-
ing technical assistance to other Federal programs serving
language-minority and limited-English-proficient students
and their families and for assisting the Assistant Sec-
retary of the Office of Educational Research and Improve-
ment in identifying research priorities which reflect the
needs of language-minority and limited-English language
proficient students.
609
‘‘(2) The Office shall be organized as the Director
determines to be appropriate in order to carry out such
functions and responsibilities effectively.
‘‘(3) The Secretary shall ensure that limited-English-
proficient and language-minority students are included in
ways that are valid, reliable and fair under all standards
and assessment development conducted or funded by the
Department.
‘‘(c) REPORT.—The Director shall prepare and, not
later than February 1 of every other year, shall submit
to Congress, the President, the Governors, and the clear-
inghouse a report on—
‘‘(1) the activities carried out under this title
and their effectiveness in improving the education
provided to limited-English-proficient children and
youth;
‘‘(2) a critical synthesis of data reported by the
States pursuant to section 7204;
‘‘(3) an estimate of the number of certified bi-
lingual education personnel in the field and an esti-
mate of the number of bilingual education teachers
which will be needed for the succeeding 5 fiscal
years;
‘‘(4) the major findings of research carried out
under this title; and
610
‘‘(5) recommendations for further developing
the capacity of our Nation’s schools to educate effec-
tively limited-English-proficient students.
‘‘(d) ASSESSMENT OF GATEWAY EDUCATION.—The
Secretary shall prepare a report on the education of all
students who reside near the United States border with
Canada and Mexico or areas or communities which serve
as a gateway for immigrants to the United States. Gate-
way communities shall include Hawaii, the Commonwealth
of Puerto Rico, as well as the territories and freely associ-
ated nations. The report shall identify trends in student
and out-of-school youth immigration trends, appropriate
procedures for the international transfer of records, the
language proficiency of students living in border and gate-
way areas, and opportunities for teacher exchange. Such
efforts shall be coordinated with other ongoing efforts in
this area. A preliminary report on these issues shall be
provided to the Congress not later than 2 years after the
enactment of this Act. The final report including policy
proposals for improvements in these areas shall be pro-
vided to Congress and the President not later than Octo-
ber 21, 1997.
‘‘(e) COORDINATION WITH RELATED PROGRAMS.—
In order to maximize Federal efforts aimed at serving the
educational needs of children and youth of limited-English
611
proficiency, the Secretary shall coordinate and ensure
close cooperation with other programs serving language-
minority and limited-English-proficient students that are
administered by the Department of Education and other
agencies. The Secretary shall consult with the Secretary
of Labor, the Secretary of Health and Human Services,
the Secretary of Agriculture, Attorney General and other
relevant agencies to identify and eliminate barriers to ap-
propriate coordination of programs that affect language-
minority and limited-English-proficient students and their
families. The Secretary shall provide for continuing con-
sultation and collaboration between Office and relevant
programs operated by the Department, including title I
and other programs in this Act, in planning, contracts,
providing joint technical assistance, providing joint field
monitoring activities and in other relevant activities to en-
sure effective program coordination to provide high quality
education opportunities to all language-minority and lim-
ited-English-proficient students. In no case shall such co-
ordination at the local, State or Federal level permit funds
under this title to be used in programs that do not provide
bilingual education or special alternative instructional pro-
grams for the instruction of language-minority or limited-
English-proficient students.
612
‘‘(f) The Secretary shall, to the extent feasible, ensure
that all data collected shall include for the collection and
reporting of data on limited-English-proficient students in
all Departmental data keeping and with respect to all Fed-
eral education programs.
‘‘(g) STAFFING
REQUIREMENTS.—The Secretary
shall ensure that the Office of Bilingual Education and
Minority Language Affairs is staffed with sufficient per-
sonnel trained or with experience in bilingual education
to discharge effectively the provisions of this title.
‘‘(1) Notwithstanding section 403 of the De-
partment of Education Organization Act, the Assist-
ant Secretary may appoint not more than 7 addi-
tional employees to serve as staff without regard to
the provisions of title 5, United States Code, govern-
ing appointments in the competitive service.
‘‘(2) The employees appointed under paragraph
(1) may be paid without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of that
title relating to classification and General Schedule
pay rates, but shall not be paid a rate that exceeds
the minimum rate of basic pay payable for GS–15
of the General Schedule.
‘‘(h) READING APPLICATIONS.—For the purpose of
reading applications for competitive grants authorized
613
under this title, the Secretary shall use persons who are
not employees of the Federal Government and who are ex-
perienced and involved in bilingual education including
teachers, researchers, and administrators of educational
programs similar to those assisted under this title. Read-
ers of applications for grants involving conservation of In-
dian languages and other indigenous language which are
subject to loss shall include individuals with expertise in
such programs. The Secretary shall solicit nominations for
application readers from State directors of bilingual edu-
cation, graduate programs of bilingual education, tribal
organizations and professional associations and shall have
readers serve for a period of 3 years.
‘‘(i) PUBLICATION OF PROPOSALS.—The Secretary
shall publish and disseminate all requests for proposals for
programs funded under this title.
‘‘SEC. 7402. RELEASE TIME.
‘‘Professional development programs funded under
this Act shall permit use of funds for professional release
time to enable participation in programs assisted under
this part.
‘‘SEC. 7403. EDUCATION TECHNOLOGY.
‘‘Funds available under this Act may be used to pro-
vide for the acquisition or development of education tech-
nology or instructional materials, including authentic ma-
614
terials in languages other than English, access to and par-
ticipation in electronic networks for materials, training
and communications, and incorporation of such resources
in curricula and programs such as those funded under this
title.
‘‘SEC. 7404. NOTIFICATION.
‘‘The State educational agency, when applicable, the
State Board for postsecondary education, when applicable,
the clearinghouse, the applicable Evaluation and Assist-
ance Center and Multifunctional Resource Center shall be
notified within three working days of the date a grant is
made to an eligible entity within the State.
‘‘SEC. 7405. CONTINUED ELIGIBILITY.
‘‘Entities receiving grants under this title shall re-
main eligible for grants for subsequent activities which ex-
tend or expand and do not duplicate those activities sup-
ported by a previous grant under this title. In considering
applications for grants under this title the Secretary shall
take into consideration the applicant’s record of accom-
plishments under previous grants.
‘‘SEC. 7406. LIMITATION OF AUTHORITY.
‘‘The Secretary shall not impose restrictions on the
availability of funds authorized under this title other than
those set out in this title or other applicable Federal stat-
utes and regulations.
615
‘‘PART E—TRANSITION
‘‘SEC. 7501. TRANSITION PROVISIONS.
‘‘Any grant or contract awarded under this title prior
to the date of the enactment of the Improving America’s
Schools Act of 1994 shall be allowed to continue the term
of the original award in accordance with the conditions
of the original award but not for a period in excess of
3 years from the date of the grant or contract.
‘‘PART F—EMERGENCY IMMIGRANT EDUCATION
PROGRAM
‘‘SEC. 7601. PURPOSE.
‘‘The purpose of this part is to assist eligible local
educational agencies that experience unexpectedly large
increases in their student population due to immigration
to—
‘‘(1) provide high-quality instruction to immi-
grant children and youth; and
‘‘(2) help such children and youth—
‘‘(A) with their transition into American
society; and
‘‘(B) meet the same challenging State per-
formance standards expected of all children and
youth.
‘‘SEC. 7602. STATE ADMINISTRATIVE COSTS.
‘‘For any fiscal year, a State educational agency may
reserve up to 1.5 percent of the amount allocated to it
616
under section 7604 to pay the costs of performing its ad-
ministrative functions under this part.
‘‘SEC. 7603. WITHHOLDING.
‘‘Whenever the Secretary, after reasonable notice and
opportunity for a hearing to any State educational agency,
finds that there is a failure to meet the requirement of
any provision of this part, the Secretary shall notify that
agency that further payments will not be made to the
agency under this part, or in the discretion of the Sec-
retary, that the State educational agency shall not make
further payments under this part to specified local edu-
cational agencies whose actions cause or are involved in
such failure until the Secretary is satisfied that there is
no longer any such failure to comply. Until the Secretary
is so satisfied, no further payments shall be made to the
State educational agency under this part, or payments by
the State educational agency under this part shall be lim-
ited to local educational agencies whose actions did not
cause or were not involved in the failure, as the case may
be.
‘‘SEC. 7604. STATE ALLOCATIONS.
‘‘(a) PAYMENTS.—The Secretary shall, in accordance
with the provisions of this section, make payments to
State educational agencies for each of the fiscal years
617
1995 through 1999 for the purpose set forth in section
7601.
‘‘(b) ALLOCATIONS.—(1) Except as provided in sub-
sections (c) and (d) of this section, of the amount appro-
priated for each fiscal year for this part, each State par-
ticipating in this program shall receive a share equal to
the proportion of its number of immigrant children and
youth who are enrolled in elementary and secondary public
schools under the jurisdiction of each local educational
agency described in paragraph (2) within that State, and
in elementary and secondary nonpublic schools within the
district served by each such local educational agency, rel-
ative to the total number of immigrant children and youth
so enrolled in all the States participating in this program.
‘‘(2) The local educational agencies referred to in
paragraph (1) are those local educational agencies in
which the sum of the number of immigrant children and
youth who are enrolled in elementary or secondary public
schools under the jurisdiction of such agencies, and in ele-
mentary or secondary nonpublic schools within the dis-
tricts served by such agencies, during the fiscal year for
which the payments are to be made under this part, is
equal to—
‘‘(A) at least 500; or
618
‘‘(B) at least 3 percent of the total number of
students enrolled in such public or nonpublic schools
during such fiscal year;
whichever number is less.
‘‘(c) DETERMINATIONS OF NUMBER OF CHILDREN
AND YOUTH.—(1) Determinations by the Secretary under
this section for any period with respect to the number of
immigrant children and youth shall be made on the basis
of data or estimates provided to the Secretary by each
State educational agency in accordance with criteria estab-
lished by the Secretary, unless the Secretary determines,
after notice and opportunity for a hearing to the affected
State educational agency, that such data or estimate are
clearly erroneous.
‘‘(2) No such determination with respect to the num-
ber of immigrant children and youth shall operate because
of an underestimate or overestimate to deprive any State
educational agency of the allocation under this section that
such agency would otherwise have received had such deter-
mination been made on the basis of accurate data.
‘‘(d) REALLOCATION.—Whenever the Secretary de-
termines that any amount of a payment made to a State
under this part for a fiscal year will not be used by such
State for carrying out the purpose for which the payment
was made, the Secretary shall make such amount available
619
for carrying out such purpose to one or more other States
to the extent the Secretary determines that such other
States will be able to use such additional amount of carry-
ing out such purpose. Any amount made available to a
State from any appropriation for a fiscal year in accord-
ance with the preceding sentence shall, for purposes of this
part, be regarded as part of such State’s payment (as de-
termined under subsection (b)) for such year, but shall
remain available until the end of the succeeding fiscal
year.
‘‘(e) RESERVATION OF FUNDS.—(1) If appropria-
tions under this part exceed $50,000,000 for a fiscal year,
a State educational agency may reserve up to 20 percent
of its payment for redistribution through competitive
grants to local educational agencies within the State in
the following manner:
‘‘(A) At least one-half of such grants shall be
made to local educational agencies within the State
with the highest numbers and percentages of immi-
grant children and youth.
‘‘(B) Remaining funds may be distributed to
local educational agencies within the State with a
sudden influx of immigrant children and youth
which are otherwise not eligible for assistance under
this part.
620
‘‘(2) Local educational agencies with the highest
number of immigrant children and youth receiving addi-
tional funds under this subsection may make information
available on serving immigrant children and youth to areas
in the State with sparse numbers of such children.
‘‘SEC. 7605. STATE APPLICATIONS.
‘‘(a) SUBMISSION.—No State educational agency
shall receive any payment under this part for any fiscal
year unless such agency submits an application to the Sec-
retary at such time, in such manner, and containing or
accompanied by such information, as the Secretary may
reasonably require. Each such application shall—
‘‘(1) provide that the educational programs,
services, and activities for which payments under
this part are made will be administered by or under
the supervision of the agency;
‘‘(2) provide assurances that payments under
this part will be used for purposes set forth in sec-
tions 7601 and 7607, including a description of how
local educational agencies receiving funds under this
part will use such funds to meet such purposes, and
how the program designs are consistent with other
education improvement plans, including any devel-
oped under Goals 2000: Educate America Act, if
such plan exists, or title I;
621
‘‘(3) provide an assurance that local educational
agencies receiving funds under this part will coordi-
nate the use of such funds with programs funded
under other parts of this title or title I of this Act;
‘‘(4) provide assurances that such payments,
with the exception of payments reserved under sec-
tion 7604(e), will be distributed among local edu-
cational agencies within that State on the basis of
the number of immigrant children and youth count-
ed with respect to each such local educational agency
under section 7604(b)(1);
‘‘(5) provide assurances that the State edu-
cational agency will not finally disapprove in whole
or in part any application for funds received under
this part without first affording the local educational
agency submitting an application for such funds rea-
sonable notice and opportunity for a hearing;
‘‘(6) provide for making such reports as the
Secretary may reasonably require to perform the
functions under this part;
‘‘(7) provide assurances—
‘‘(A) that to the extent consistent with the
number of immigrant children and youth en-
rolled in the elementary or secondary nonpublic
schools within the district served by a local edu-
622
cational agency, such agency, after consultation
with appropriate officials of such schools, shall
provide for the benefit of these children and
youth secular, neutral, and nonideological serv-
ices, materials, and equipment necessary for the
education of such children and youth;
‘‘(B) that the control of funds provided
under this part and title to any materials,
equipment, and property repaired, remodeled,
or constructed with those funds shall be in a
public agency for the uses and purposes pro-
vided in this part, and a public agency shall ad-
minister such funds and property; and
‘‘(C) that the provision of services pursu-
ant to this paragraph shall be provided by em-
ployees of a public agency or through contract
by such public agency with a person, associa-
tion, agency, or corporation who or which, in
the provision of such services, is independent of
such elementary or secondary nonpublic school
and of any religious organization; and such em-
ployment or contract shall be under the control
and supervision of such public agency, and the
funds provided under this paragraph shall not
be commingled with State or local funds;
623
‘‘(8) provide that funds reserved under sub-
section (e) of section 7604 be awarded on the basis
of merit and need consistent with such subsection;
and
‘‘(9) provide an assurance that State and local
educational agencies receiving funds under this part
will comply with the requirements of section
1121(b).
‘‘(b) APPLICATION REVIEW.—The Secretary shall re-
view all applications submitted pursuant to this section by
State educational agencies.
‘‘(1) The Secretary shall approve any applica-
tion submitted by a State educational agency that
meets the requirements of this section.
‘‘(2) The Secretary shall disapprove any appli-
cation submitted by a State educational agency
which does not meet the requirements of this sec-
tion, but shall not finally disapprove an application
except after reasonable notice, provision of technical
assistance, and an opportunity for a hearing to the
State.
‘‘SEC. 7606. PAYMENTS.
‘‘(a) AMOUNT.—The Secretary shall pay by not later
than June 1 of each year to each State educational agency
that has its application approved under section 7605 the
624
amount of the State’s allocation as determined under sec-
tion 7604.
‘‘(b) SERVICES
TO
CHILDREN
ENROLLED
IN
NONPUBLIC SCHOOLS.—If by reason of any provision of
law a local educational agency is prohibited from providing
educational services for children enrolled in elementary
and secondary nonpublic schools, as required by section
7605(a)(6), or if the Secretary determines that a local
educational agency has substantially failed or is unwilling
to provide for the participation on an equitable basis of
children enrolled in such schools, the Secretary may waive
such requirement and shall arrange for the provision of
services to such children through arrangements which
shall be subject to the requirements of this part. Such
waivers shall be subject to consultation, withholding, no-
tice, and judicial review requirements in accordance with
the provisions of title I.
‘‘SEC. 7607. USES OF FUNDS.
‘‘(a) USE OF FUNDS.—Funds awarded under this
part shall be used to pay for enhanced instructional oppor-
tunities for immigrant children and youth, which may in-
clude—
‘‘(1) family literacy, parent outreach, and train-
ing activities designed to assist parents to become
active participants in the education of their children;
625
‘‘(2) salaries of personnel, including teacher
aides who have been specifically trained, or are being
trained, to provide services to immigrant children
and youth;
‘‘(3) tutorials, mentoring, and academic or ca-
reer counseling for immigrant children and youth;
‘‘(4) identification and acquisition of curricular
materials, educational software, and technologies to
be used in the program; and
‘‘(5) such other activities, related to the pur-
poses of this part, as the Secretary may authorize.
‘‘(b) CONSORTIA.—A local educational agency that
receives a grant under this part may collaborate or form
a consortium with one or more local educational agencies,
institutions of higher education, and non-profit organiza-
tions to carry out the approved program.
‘‘(c) SUBGRANTS.—A local educational agency that
receives a grant under this part may, with the approval
of the Secretary, make a subgrant to, or enter into a con-
tract with, an institution of higher education, a non-profit
organization, or a consortium of such entities to carry out
an approved program, including a program to serve out-
of-school youth.
626
‘‘SEC. 7608. REPORTS.
‘‘(a) BIENNIAL REPORT.—Each State educational
agency receiving funds under this part shall submit, once
every 2 years, a report to the Secretary concerning the
expenditure of funds by local educational agencies under
this part. Each local educational agency receiving funds
under this part shall submit to the State educational agen-
cy such information as may be necessary for such report.
‘‘(b) REPORT TO CONGRESS.—The Secretary shall
submit, once every 2 years, a report to the appropriate
committees of the Congress concerning programs under
this part.
‘‘SEC. 7609. AUTHORIZATION OF APPROPRIATIONS.
‘‘For the purpose of carrying out the provisions of
this part, there are authorized to be appropriated
$75,000,000 in fiscal year 1995, and such sums as may
be necessary for each of the fiscal years 1996, 1997, 1998,
and 1999.
‘‘TITLE VIII—IMPACT AID
‘‘SEC. 8001. FINDINGS.
‘‘The Congress finds that—
‘‘(1) certain activities of the Federal Govern-
ment place a financial burden on the local edu-
cational agencies serving areas where such activities
are carried out; and
627
‘‘(2) it is the shared responsibility of the Fed-
eral Government, the States, and local educational
agencies to provide for the education of children con-
nected to those activities.
‘‘SEC. 8002. PURPOSE.
‘‘In order to fulfill the Federal responsibility to assist
with the provision of educational services to federally con-
nected children, and to help them meet challenging State
standards, it is the purpose of this title to provide financial
assistance to local educational agencies that—
‘‘(1) experience a substantial and continuing fi-
nancial burden due to the acquisition of real prop-
erty by the United States;
‘‘(2) educate children who reside on Federal
property and whose parents are employed on Federal
property;
‘‘(3) educate children of parents who are in the
military services and children who live in low-rent
housing;
‘‘(4) experience sudden and substantial in-
creases 
in 
enrollments 
because 
of 
military
realignments; or
‘‘(5) need special assistance with capital ex-
penditures for construction activities because of the
enrollments of substantial numbers of children who
628
reside on Indian lands or who are defined in sections
2 and 3 of the Act of September 23, 1950 (Public
Law 815, 81st Congress; 20 U.S.C. 631 et seq.).
‘‘SEC. 8003. PAYMENTS RELATING TO FEDERAL ACQUISI-
TION OF REAL PROPERTY.
‘‘(a) IN GENERAL.—Where the Secretary, after con-
sultation with any local educational agency and with the
appropriate State educational agency, determines for a fis-
cal year ending prior to October 1, 1999—
‘‘(1) that the United States owns Federal prop-
erty in the local educational agency, and that such
property—
‘‘(A) has been acquired by the United
States since 1938;
‘‘(B) was not acquired by exchange for
other Federal property in the local educational
agency which the United States owned before
1939; and
‘‘(C) had an assessed value (determined as
of the time or times when so acquired) aggre-
gating 10 percent or more of the assessed value
of all real property in the local educational
agency (similarly determined as of the time or
times when such Federal property was so ac-
quired); and
629
‘‘(2) that such agency is not being substantially
compensated for the loss in revenue resulting from
such ownership by increases in revenue accruing to
the agency from the conduct of Federal activities
with respect to such Federal property,
then such agency shall be paid the amount described in
subsection (b).
‘‘(b) AMOUNT.—
‘‘(1) IN
GENERAL.—(A) The amount that a
local educational agency shall be paid under sub-
section (a) for a fiscal year shall be calculated in ac-
cordance with paragraph (2), except that such
amount shall be reduced by the Secretary by an
amount equal to the amount of revenue, if any, that
such agency received from activities conducted on
such property during the previous fiscal year.
‘‘(B) If funds appropriated under section
8013(a) are insufficient to pay the amount deter-
mined under subparagraph (A), the Secretary shall
ratably reduce the payment to each eligible local
educational agency.
‘‘(C) Notwithstanding any other provision of
this subsection, a local educational agency may not
be paid an amount under this section which exceeds
the difference of—
630
‘‘(i) the maximum amount that such agen-
cy is eligible to receive for such fiscal year
under section 8004(b)(1)(C); and
‘‘(ii) the amount that such agency receives
in such fiscal year under section 8004(b)(2).
‘‘(2) APPLICATION OF CURRENT LEVIED REAL
PROPERTY TAX RATE.—In calculating the amount
that a local educational agency shall be paid for a
fiscal year, the Secretary shall apply the current lev-
ied real property tax rate for current expenditures
levied by fiscally independent local educational agen-
cies or imputed, for fiscally dependent local edu-
cational agencies, to the current annually deter-
mined aggregate assessed value of such acquired
Federal property.
‘‘(3) DETERMINATION
OF
AGGREGATE
AS-
SESSED VALUE.—Such aggregate assessed value of
such acquired Federal property shall be determined
(on the basis of the highest and best use of property
adjacent to such acquired Federal property as of the
time such value is determined), and provided to the
Secretary, by the local official responsible for assess-
ing the value of real property located in the jurisdic-
tion of such local educational agency for the purpose
of levying a property tax.
631
‘‘(c) APPLICABILITY TO TENNESSEE VALLEY AU-
THORITY ACT.—For the purposes of this section, any real
property with respect to which payments are being made
under section 13 of the Tennessee Valley Authority Act
of 1933 shall not be regarded as Federal property.
‘‘(d) OWNERSHIP BY UNITED STATES.—The United
States shall be deemed to own Federal property for the
purposes of this Act, where—
‘‘(1) prior to the transfer of Federal property,
the United States owned Federal property meeting
the requirements of subparagraphs (A), (B), and (C)
of subsection (a)(1); and
‘‘(2) the United States transfers a portion of
the property referred to in paragraph (1) to another
nontaxable entity, and the United States—
‘‘(A) restricts some or any construction on
such property;
‘‘(B) requires that the property be used in
perpetuity for the public purposes for which it
was conveyed;
‘‘(C) requires the grantee of the property
to report to the Federal government (or its
agent) containing information on the use of the
property;
632
‘‘(D) except with the approval of the Fed-
eral government (or its agent), prohibits the
sale, lease, assignment, or other disposal of the
property unless such sale, lease, assignment, or
other disposal is to another eligible government
agency; and
‘‘(E) reserves to the Federal government a
right of reversion at any time the Federal gov-
ernment (or its agent) deems it necessary for
the national defense.
‘‘(e) SCHOOL DISTRICT CONTAINING FOREST SERV-
ICE LAND AND SERVING CERTAIN COUNTIES.—Beginning
with fiscal year 1995, a school district shall be deemed
to meet the requirements of subsection (a)(1)(C) if such
school district meets the following requirements:
‘‘(1) The school district contains between
50,000 and 55,000 acres of land that has been ac-
quired by the Forest Service of the Department of
Agriculture between 1915 and 1990, as dem-
onstrated by written evidence from the Forest Serv-
ice satisfactory to the Secretary.
‘‘(2) The school district serves a county char-
tered by State law in 1875.
633
‘‘SEC. 8004. PAYMENTS FOR ELIGIBLE FEDERALLY CON-
NECTED CHILDREN.
‘‘(a) COMPUTATION OF PAYMENT.—
‘‘(1) IN GENERAL.—For the purpose of comput-
ing the amount that a local educational agency is eli-
gible to receive under subsection (b), (d), or (f) for
any fiscal year, the Secretary shall determine the
number of children who were in average daily at-
tendance in the schools of such agency, and for
whom such agency provided free public education,
during the preceding school year and who, while in
attendance at such schools—
‘‘(A) resided on Federal property with a
parent employed on Federal property situated
in whole or in part within the boundaries of the
school district of such agency;
‘‘(B) resided on Federal property and had
a parent on active duty in the uniformed serv-
ices (as defined in section 101 of title 37,
United States Code);
‘‘(C) resided on Indian lands;
‘‘(D) had a parent on active duty in the
uniformed services (as defined by section 101 of
title 37, United States Code) but did not reside
on Federal property; or
‘‘(E) resided in low-rent housing.
634
‘‘(2) DETERMINATION OF WEIGHTED STUDENT
UNITS.—For purposes of computing the basic sup-
port payment under subsection (b), the Secretary
shall calculate the total number of weighted student
units for a local educational agency by adding to-
gether the results obtained by the following com-
putations:
‘‘(A) Multiply the number of children de-
scribed in subparagraphs (A) and (B) of para-
graph (1) by a factor of 1.0.
‘‘(B) Multiply the number of children de-
scribed in paragraph (1)(C) by a factor of 1.25.
‘‘(C) Multiply the number of children de-
scribed in subparagraphs (A) and (B) of para-
graph (1) by a factor of .35 if the local edu-
cational agency has—
‘‘(i) a number of such children de-
scribed in such subparagraphs which ex-
ceeds 6,500; and
‘‘(ii) an average daily attendance for
all children which exceeds 100,000.
‘‘(D) Multiply the number of children de-
scribed in subparagraphs (D) and (E) of para-
graph (1) by a factor of .20.
635
‘‘(b) BASIC SUPPORT PAYMENTS
AND PAYMENTS
WITH RESPECT TO FISCAL YEARS IN WHICH INSUFFI-
CIENT FUNDS ARE APPROPRIATED.—
‘‘(1) BASIC SUPPORT PAYMENTS.—
‘‘(A) IN GENERAL.—From the amount ap-
propriated under section 8013(b) for a fiscal
year, the Secretary is authorized to make basic
support payments to eligible local educational
agencies with children described under sub-
section (a).
‘‘(B) ELIGIBILITY.—A local educational
agency shall be entitled to receive a basic sup-
port payment under subparagraph (A) for a fis-
cal year with respect to a number of children
determined under subsection (a) only if the
number of children so determined with respect
to such agency amounts to the lesser of—
‘‘(i) at least 400 such children, or
‘‘(ii) a number of such children which
equals at least 3 percent of the total num-
ber of children who were in average daily
attendance, during such year, at the
schools of such agency and for whom such
agency provided free public education.
636
‘‘(C) MAXIMUM AMOUNT.—The maximum
amount that a local educational agency is eligi-
ble to receive under this subsection for any fis-
cal year is the sum of the total weighted stu-
dent units, as computed under subsection
(a)(2), multiplied by—
‘‘(i) the greater of—
‘‘(I) one-half of the average per
pupil expenditure of the State in
which the local educational agency is
located for the 3rd preceding fiscal
year, or
‘‘(II) one-half of the average per
pupil expenditure of all of the States
for the 3rd preceding fiscal year;
‘‘(ii) the comparable local contribution
rate certified by the State, as determined
under regulations prescribed to carry out
the Act of September 30, 1950 (Public
Law 874, 81st Congress), as in effect on
January 1, 1994; or
‘‘(iii) the average per pupil expendi-
ture of the State in which the local edu-
cational agency is located, multiplied by
the local contribution percentage.
637
‘‘(2) PAYMENTS
WITH
RESPECT
TO
FISCAL
YEARS IN WHICH INSUFFICIENT FUNDS ARE APPRO-
PRIATED.—
‘‘(A) IN GENERAL.—For any fiscal year in
which the sums appropriated under section
8013(b) are insufficient to pay to each local
educational agency the full amount computed
under paragraph (1), the Secretary shall make
payments based upon the provisions of this
paragraph.
‘‘(B) LEARNING
OPPORTUNITY
THRESH-
OLD PAYMENTS.—(i) For fiscal years described
in subparagraph (A), the Secretary shall com-
pute a learning opportunity threshold payment
(hereinafter ‘threshold payment’) by multiplying
the amount obtained under paragraph (1)(C) by
the total percentage obtained by adding—
‘‘(I) the percentage of federally con-
nected children for each local educational
agency determined by calculating the frac-
tion, the numerator of which is the total
number of children described under sub-
section (a)(1) and the denominator of
which is the total number of children in av-
638
erage daily attendance at the schools
served by such agency; and
‘‘(II) the percentage that funds under
this paragraph represent of the total budg-
et of the local educational agency, deter-
mined by calculating the fraction, the nu-
merator of which is the total amount of
funds calculated for each educational agen-
cy under this paragraph (not including
amounts received under subsection (f)),
and the denominator of which is the total
current expenditures for such agency.
‘‘(ii) Such total percentage used to cal-
culate threshold payments under paragraph (1)
shall not exceed 100.
‘‘(C) RATABLE DISTRIBUTION.—For fiscal
years described in subparagraph (A), the Sec-
retary shall make payments as a ratable dis-
tribution based upon the computation made
under subparagraph (B).
‘‘(c) PRIOR YEAR DATA.—All calculations under this
section shall be based upon data for each local educational
agency from the fiscal year preceding the fiscal year for
which the agency is making application for payment.
639
‘‘(d) USE OF FUNDS FOR CHILDREN WITH DISABIL-
ITIES.—
‘‘(1) IN GENERAL.—From the amount appro-
priated under section 8013(c) for a fiscal year, the
Secretary shall pay to each eligible local educational
agency, on a pro rata basis, the amounts determined
by—
‘‘(A) multiplying the number of children
described in subparagraphs (B) and (C) of sub-
section (a)(1) who are eligible to receive services
under the Individuals with Disabilities Edu-
cation Act (20 U.S.C. 1400 et seq.) by a factor
of 1.0; and
‘‘(B) multiplying the number of children
described in subparagraph (D) of subsection
(a)(1) who are eligible to receive services under
such Act by a factor of .5.
‘‘(2) USE
OF
FUNDS.—A local educational
agency that receives funds under paragraph (1) shall
use such funds to provide a free appropriate public
education to children described in paragraph (1) in
accordance with the Individuals with Disabilities
Education Act.
‘‘(e) HOLD-HARMLESS AMOUNTS.—
640
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this section, the total amount that the
Secretary shall pay to a local educational agency
under subsections (b) and (f)—
‘‘(A) for fiscal year 1995, shall not be less
than 80 percent of the payment such agency re-
ceived for fiscal year 1994 under section 3(a) of
the Act of September 30, 1950 (Public Law
81–874, 81st Congress), as in effect for fiscal
year 1994;
‘‘(B) for fiscal year 1996, shall not be less
than 60 percent of such payment received for
fiscal year 1994; and
‘‘(C) for fiscal year 1997, shall not be less
than 40 percent of such payment received for
fiscal year 1994.
‘‘(2) REDUCTION IN PAYMENTS.—In order to
make payments to local educational agencies in ac-
cordance with paragraph (1), the Secretary shall re-
duce payments to other local educational agencies
determined under subsection (b).
‘‘(f) ADDITIONAL ASSISTANCE
FOR HEAVILY IM-
PACTED LOCAL EDUCATIONAL AGENCIES.—
‘‘(1) IN
GENERAL.—From amounts appro-
priated under section 8013(d) for a fiscal year, the
641
Secretary shall provide additional assistance to meet
special circumstances relating to the provision of
education in local educational agencies eligible to re-
ceive assistance under this section.
‘‘(2) ELIGIBILITY.—A local educational agency
shall be eligible to receive additional assistance
under this subsection only if such agency—
‘‘(A)(i) has an enrollment of federally con-
nected children described in subsection (a)(1)
which constitutes at least 40 percent of the
total student enrollment of such agency; and
‘‘(ii) has a tax rate for general fund pur-
poses which is at least 95 percent of the aver-
age tax rate for general fund purposes of com-
parable local educational agencies in the State;
‘‘(B)(i) has an enrollment of federally con-
nected children described in subsection (a)(1)
which constitutes at least 35 percent of the
total student enrollment of such agency; and
‘‘(ii) has a tax rate for general fund pur-
poses which is at least 125 percent of the aver-
age tax rate for general fund purposes of com-
parable local educational agencies in the State;
or
642
‘‘(C) is a local education agency whose
boundaries are the same as a Federal military
installation or includes Federal property under
exclusive Federal jurisdiction.
‘‘(3) MAXIMUM PAYMENTS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall determine the
maximum amount that a local educational
agency may receive under this subsection in ac-
cordance with the following computations:
‘‘(i) The Secretary shall first deter-
mine the greater of—
‘‘(I) the average per pupil ex-
penditure of the State in which the
local educational agency is located or
the average per pupil expenditure of
all the States;
‘‘(II) the average per pupil ex-
penditure of generally comparable
school districts located in the State of
the local educational agency, as de-
fined by the Secretary in regulations;
or
‘‘(III) the average per pupil ex-
penditure of three generally com-
643
parable school districts located in the
State of the local educational agency,
as defined by the Secretary in regula-
tions.
‘‘(ii) The Secretary shall next subtract
from the amount determined under clause
(i) the average amount of State aid per
pupil received by the local educational
agency.
‘‘(iii) The Secretary shall next mul-
tiply the amount determined under clause
(ii) by the sum of the total weighted units
of the local educational agency, as com-
puted under subsection (a)(2).
‘‘(iv) If the tax rate of the local edu-
cational agency is greater than 94 percent,
but less than 100 percent, of the tax rate
of comparable school districts, the Sec-
retary shall next multiply the amount de-
termined under clause (iii) by the percent-
age that the tax rate of the local edu-
cational agency is of—
‘‘(I) the average tax rate of its
generally comparable school districts;
or
644
‘‘(II) the average tax rate of all
the school districts in the State in
which the local educational agency is
located.
‘‘(v) The Secretary shall next subtract
the total amount of payments received by
a local educational agency under sub-
sections (b) and (d) for a fiscal year from
the amount determined under clause (iii)
or clause (iv), as the case may be.
‘‘(B) SPECIAL
RULE.—With respect to
payments to local educational agencies de-
scribed in subparagraphs (B) and (C) of para-
graph (2), the maximum amount of such pay-
ments shall be equal to the product of the aver-
age per pupil expenditure of all the States mul-
tiplied by .7, except that such amount may not
exceed 125 percent of the average per pupil ex-
penditure of all local educational agencies in the
State.
‘‘(4) CURRENT
YEAR
DATA.—The Secretary
shall, for purposes of providing assistance under this
subsection, use—
645
‘‘(A) data from the fiscal year in which the
local educational agency is applying for assist-
ance under this subsection; or
‘‘(B) the most recent data available which
is adjusted to such fiscal year.
‘‘(5) REDUCTION IN PAYMENTS.—If funds ap-
propriated to carry out this subsection are insuffi-
cient to pay in full the amounts determined under
paragraph (3), the Secretary shall ratably reduce the
payment to each eligible local educational agency.
‘‘SEC. 8005. POLICIES AND PROCEDURES RELATING TO
CHILDREN RESIDING ON INDIAN LANDS.
‘‘(a) IN GENERAL.—A local educational agency that
claims children residing on Indian lands for the purpose
of receiving funds under section 8004 shall establish poli-
cies and procedures to ensure that—
‘‘(1) such children participate in programs and
activities supported by such funds on an equal basis
with all other children;
‘‘(2) parents of such children and Indian tribes
are afforded an opportunity to present their views on
such programs and activities, including an oppor-
tunity to make recommendations on the needs of
those children and how they may help those children
realize the benefits of those programs and activities;
646
‘‘(3) parents and Indian tribes are consulted
and involved in planning and developing such pro-
grams and activities;
‘‘(4) relevant applications, evaluations, and pro-
gram plans are disseminated to the parents and In-
dian tribes; and
‘‘(5) parents and Indian tribes are afforded an
opportunity to present their views on the agency’s
general educational program to such agency.
‘‘(b) RECORDS.—A local educational agency that
claims children residing on Indian lands for the purpose
of receiving funds under section 8004 shall maintain
records demonstrating its compliance with requirements
contained in subsection (a).
‘‘(c) WAIVER.—A local educational agency that
claims children residing on Indian lands for the purpose
of receiving funds under section 8004 is excused from the
requirements contained in subsections (a) and (b) for any
year with respect to any Indian tribe from which it has
received a written statement that the agency need not
comply with those subsections because the tribe is satisfied
with the provision of educational services by such agency
to such children.
‘‘(d) 
TECHNICAL
ASSISTANCE
AND
ENFORCE-
MENT.—The Secretary shall—
647
‘‘(1) provide technical assistance to local edu-
cational agencies, parents, and Indian tribes to en-
able them to carry out this section; and
‘‘(2) enforce this section through such actions,
which may include the withholding of funds, as the
Secretary determines to be appropriate, after afford-
ing the affected local educational agency, parents,
and Indian tribe an opportunity to present their
views.
‘‘SEC. 8006. APPLICATION FOR PAYMENTS UNDER SEC-
TIONS 8003 AND 8004.
‘‘(a) IN GENERAL.—A local educational agency desir-
ing to receive a payment under section 8003 or 8004
shall—
‘‘(1) submit an application for such payment to
the Secretary; and
‘‘(2) provide a copy of such application to the
State educational agency.
‘‘(b) CONTENTS.—Each such application shall be
submitted in such form and manner, and shall contain
such information, as the Secretary may require, includ-
ing—
‘‘(1) information to determine the eligibility of
the local educational agency for a payment and the
amount of such payment; and
648
‘‘(2) where applicable, an assurance that such
agency is in compliance with section 8005 (relating
to children residing on Indian lands).
‘‘(c) DEADLINE FOR SUBMISSION.—The Secretary
shall establish deadlines for the submission of applications
under this section.
‘‘(d) APPROVAL.—
‘‘(1) IN
GENERAL.—The Secretary shall ap-
prove an application submitted under this section
that—
‘‘(A) is filed by the deadline established
under subsection (c); and
‘‘(B) otherwise meets the requirements of
this title.
‘‘(2) REDUCTION IN PAYMENT.—The Secretary
shall approve an application filed up to 60 days after
a deadline established under subsection (c) that oth-
erwise meets the requirements of this title, except
that, notwithstanding section 8004(e), the Secretary
shall reduce the payment based on such late applica-
tion by 10 percent of the amount that would other-
wise be paid.
‘‘(3) LATE APPLICATIONS.—The Secretary shall
not accept or approve any application that is filed
649
more than 60 days after a deadline established
under subsection (c).
‘‘SEC. 8007. PAYMENTS FOR SUDDEN AND SUBSTANTIAL IN-
CREASES IN ATTENDANCE OF MILITARY DE-
PENDENTS.
‘‘(a) ELIGIBILITY.—A local educational agency is eli-
gible for a payment under this section if—
‘‘(1) the number of children in average daily at-
tendance during the current school year is at least
ten percent or 100 more than the number of chil-
dren in average daily attendance in the preceding
school year; and
‘‘(2) the number of children in average daily at-
tendance with a parent on active duty (as defined in
section 101(18) of title 37, United States Code) in
the Armed Forces who are in attendance at such
agency because of the assignment of their parent to
a new duty station between July 1 and September
30, inclusive, of the current year, as certified by an
appropriate local official of the Department of De-
fense, is at least ten percent or 100 more than the
number of children in average daily attendance in
the preceding school year.
‘‘(b) APPLICATION.—A local educational agency that
wishes to receive a payment under this section shall file
650
an application with the Secretary by October 15 of the
current school year, in such manner and containing such
information as the Secretary may prescribe, including
information demonstrating that it is eligible for such a
payment.
‘‘(c) CHILDREN TO BE COUNTED.—For each eligible
local educational agency that applies for a payment under
this section, the Secretary shall determine the lesser of—
‘‘(1) the increase in the number of children in
average daily attendance from the preceding year;
and
‘‘(2) the number of children described in sub-
section (a)(2).
‘‘(d) PAYMENTS.—From the amount appropriated for
a fiscal year under section 8013(c), the Secretary shall
pay each local educational agency with an approved appli-
cation an amount, not to exceed $200 per eligible child,
equal to—
‘‘(1) the amount available to carry out this sec-
tion, including any funds carried over from prior
years, divided by the number of children determined
under subsection (c) for all such local educational
agencies; multiplied by
‘‘(2) the number of such children determined
for that local educational agency.
651
‘‘(e) NOTIFICATION PROCESS.—
‘‘(1) ESTABLISHMENT.—The Secretary shall
endeavor to establish, with the Secretary of Defense,
a notification process relating to the closure of De-
partment of Defense facilities, or the adjustment of
personnel levels assigned to such facilities, which
may substantially affect the student enrollment lev-
els of local educational agencies which receive or
may receive payments under this title.
‘‘(2) INFORMATION.—Such process shall pro-
vide timely information regarding such closures and
such adjustments—
‘‘(A) by the Secretary of Defense to the
Secretary; and
‘‘(B) by the Secretary to the affected local
educational agencies.
‘‘SEC. 8008. FACILITIES.
‘‘(a) CURRENT FACILITIES.—From the amount ap-
propriated for any fiscal year under section 8013(e), the
Secretary may continue to provide assistance for school
facilities that were supported by the Secretary under sec-
tion 10 of the Act of September 23, 1950 (Public Law
815, 81st Congress; 20 U.S.C. 640) as in effect prior to
the date of the enactment of the Improving America’s
Schools Act of 1994.
652
‘‘(b) TRANSFER OF FACILITIES.—
‘‘(1) IN
GENERAL.—The Secretary shall, as
soon as practicable, transfer to the appropriate local
educational agency or another appropriate entity all
the right, title, and interest of the United States in
and to each facility provided under section 10 of the
Act of September 23, 1950 (Public Law 815, 81st
Congress; 20 U.S.C. 640), or under section 204 or
310 of the Act of September 30, 1950 (Public Law
874, 81st Congress), as in effect on January 1,
1958.
‘‘(2) OTHER REQUIREMENTS.—Any such trans-
fer shall be without charge to such agency or entity,
and prior to such transfer, the transfer must be con-
sented to by the local education agency or other ap-
propriate entity, and may be made on such terms
and conditions as the Secretary deems appropriate
to carry out the purposes of this Act.
‘‘SEC. 8009. STATE CONSIDERATION OF PAYMENTS IN PRO-
VIDING STATE AID.
‘‘(a) GENERAL PROHIBITION.—Except as provided in
subsection (b), a State may not—
‘‘(1) consider payments under this title or
under the Act of September 30, 1950 (Public Law
653
874, 81st Congress) in determining for any fiscal
year—
‘‘(A) the eligibility of a local educational
agency for State aid for free public education;
or
‘‘(B) the amount of such aid; or
‘‘(2) make such aid available to local edu-
cational agencies in a manner that results in less
State aid to any local educational agency that is eli-
gible for such payment than it would receive if it
were not so eligible.
‘‘(b) STATE EQUALIZATION PLANS.—
‘‘(1) IN GENERAL.—A State may reduce State
aid to a local educational agency that receives a pay-
ment under sections 8003 and 8004(b) (except the
amount calculated in excess of 1.0 under subpara-
graph (B) of subsection (a)(2)) or under the Act of
September 30, 1950 (Public Law 874, 81st Con-
gress) as such Act existed prior to the enactment of
the Improving America’s Schools Act of 1994 (other
than an increase in payments described in para-
graphs (2)(B), (2)(C), (2)(D), or (3)(B)(ii) of sec-
tion 3(d) of such Act of September 30, 1950) for
any fiscal year if the Secretary determines, and cer-
tifies under subsection (c)(3)(A), that such State
654
has in effect a program of State aid that equalizes
expenditures for free public education among local
educational agencies in such State.
‘‘(2) COMPUTATION.—
‘‘(A) IN
GENERAL.—(i) For purposes of
paragraph (1), a program of State aid equalizes
expenditures among local educational agencies
if, in the second preceding fiscal year, the
amount of per-pupil expenditures made by, or
per-pupil revenues available to, the local edu-
cational agency in the State with the highest
such per-pupil expenditures or revenues did not
exceed the amount of such per-pupil expendi-
tures made by, or per-pupil revenues available
to, the local educational agency in the State
with the lowest such expenditures or revenues
by more than 10 percent.
‘‘(ii) If a program of State aid uses a
‘weighted-pupil’, 
‘classroom’, 
‘instructional
unit’, or other designated unit of need in deter-
mining allocations of State aid in order to take
account of special cost differentials, the com-
putation of per-pupil revenue or current ex-
penditures may be made on the basis of any
such unit of need.
655
‘‘(B) OTHER FACTORS.—In making a de-
termination under this subsection, the Secretary
shall—
‘‘(i) disregard local educational agen-
cies with per-pupil expenditures or reve-
nues above the 95th percentile or below the
5th percentile of such expenditures or reve-
nues in the State; and
‘‘(ii) take into account the extent to
which a program of State aid reflects the
additional cost of providing free public
education in particular types of local edu-
cational agencies, such as those that are
geographically isolated, or to particular
types of students, such as children with
disabilities.
‘‘(3) EXCEPTION.—Notwithstanding paragraph
(2), if the Secretary determines that the State has
substantially revised its program of State aid, the
Secretary may certify such program for any fiscal
year only if—
‘‘(A) the Secretary determines, on the
basis of projected data, that the State’s pro-
gram will meet the 10 percent disparity stand-
656
ard described in paragraph (2) in that fiscal
year; and
‘‘(B) the State provides an assurance to
the Secretary that, if final data do not dem-
onstrate that the State’s program met such
standard for that year (or that it met such
standard with a greater percentage of disparity
than anticipated), the State will pay to each af-
fected local educational agency the amount by
which it reduced State aid to the local edu-
cational agency on the basis of such certifi-
cation, or a proportionate share thereof, as the
case may be.
‘‘(c) PROCEDURES FOR REVIEW OF STATE EQUALI-
ZATION PLANS.—
‘‘(1) WRITTEN NOTICE.—
‘‘(A) IN GENERAL.—Any State that wishes
to consider payments described in subsection
(b)(1) in providing State aid to local edu-
cational agencies shall submit to the Secretary,
not later than 120 days before the beginning of
the State’s fiscal year, a written notice of its in-
tention to do so.
‘‘(B) CONTENTS.—Such notice shall be in
the form and contain the information the Sec-
657
retary requires, including evidence that the
State has notified each local educational agency
in the State of its intention to consider such
payments in providing State aid.
‘‘(2) OPPORTUNITY TO PRESENT VIEWS.—Be-
fore making a determination under subsection (b),
the Secretary shall afford the State, and local edu-
cational agencies in the State, an opportunity to
present their views.
‘‘(3) QUALIFICATION
PROCEDURES.—If the
Secretary determines that a program of State aid
qualifies under subsection (b), the Secretary shall—
‘‘(A) certify the program and so notify the
State; and
‘‘(B) afford an opportunity for a hearing,
in accordance with section 8011(a), to any local
educational agency adversely affected by such
certification.
‘‘(4) 
NON-QUALIFICATION
PROCEDURES.—If
the Secretary determines that a program of State
aid does not qualify under subsection (b), the Sec-
retary shall—
‘‘(A) so notify the State; and
‘‘(B) afford an opportunity for a hearing,
in accordance with section 8011(a), to the
658
State, and to any local educational agency ad-
versely affected by such determination.
‘‘(d) REDUCTIONS OF STATE AID.—
‘‘(1) IN GENERAL.—A State whose program of
State aid has been certified by the Secretary under
subsection (c)(3) may reduce the amount of such aid
provided to a local educational agency that receives
a payment under section 8003 and section 8004(b)
by any amount up to—
‘‘(A) the amount of such payment (exclud-
ing amounts provided under subsections (d) and
(f) of section 8004 and the amount calculated
in excess of 1.0 under section 8004(a)(2)); mul-
tiplied by
‘‘(B) 100 percent minus the percentage of
disparity determined under subsection (b).
‘‘(2) PROHIBITION.—A State may not make a
reduction described in paragraph (1) before its pro-
gram of State aid has been certified by the Sec-
retary under subsection (c)(3).
‘‘(e) REMEDIES FOR STATE VIOLATIONS.—
‘‘(1) IN GENERAL.—The Secretary or any ag-
grieved local educational agency may, without ex-
hausting administrative remedies, bring an action in
a United States district court against any State that
659
violates subsection (a) or subsection (d)(2) or fails
to carry out an assurance provided under subsection
(b)(3)(B).
‘‘(2) IMMUNITY.—A State shall not be immune
under the eleventh amendment to the Constitution of
the United States from an action described in para-
graph (1).
‘‘(3) RELIEF.—The court shall grant such relief
as it determines is appropriate, which may include
attorney’s fees to a prevailing local educational
agency.
‘‘SEC. 8010. FEDERAL ADMINISTRATION.
‘‘(a) PAYMENTS IN WHOLE DOLLAR AMOUNTS—The
Secretary shall round any payments under this title to the
nearest whole dollar amount.
‘‘(b) OTHER AGENCIES.—Each Federal agency ad-
ministering Federal property on which children reside, and
each agency principally responsible for an activity that
may occasion assistance under this title, shall, to the maxi-
mum extent practicable, comply with requests of the Sec-
retary for information the Secretary may require to carry
out this title.
660
‘‘SEC. 8011. ADMINISTRATIVE HEARINGS AND JUDICIAL RE-
VIEW.
‘‘(a) ADMINISTRATIVE
HEARINGS.—A local edu-
cational agency and a State that is adversely affected by
any action of the Secretary under this title shall be enti-
tled to a hearing on such action in the same manner as
if such agency were a person under chapter 5 of title 5,
United States Code.
‘‘(b) JUDICIAL REVIEW OF SECRETARIAL ACTION.—
‘‘(1) IN GENERAL.—A local educational agency
or a State aggrieved by the Secretary’s final decision
following an agency proceeding under subsection (a)
may, within 60 days after receiving notice of such
decision, file with the United States court of appeals
for the circuit in which such agency or State is lo-
cated a petition for review of that action. The clerk
of the court shall promptly transmit a copy of the
petition to the Secretary. The Secretary shall then
file in the court the record of the proceedings on
which the Secretary’s action was based, as provided
in section 2112 of title 28, United States Code.
‘‘(2) FINDINGS OF FACT.—The findings of fact
by the Secretary, if supported by substantial evi-
dence, shall be conclusive, but the court, for good
cause shown, may remand the case to the Secretary
to take further evidence. The Secretary may there-
661
upon make new or modified findings of fact and may
modify the Secretary’s previous action, and shall file
in the court the record of the further proceedings.
Such new or modified findings of fact shall likewise
be conclusive if supported by substantial evidence.
‘‘(3) REVIEW.—The court shall have exclusive
jurisdiction to affirm the action of the Secretary or
to set it aside, in whole or in part. The judgment of
the court shall be subject to review by the Supreme
Court of the United States upon certiorari or certifi-
cation as provided in section 1254 of title 28, United
States Code.
‘‘SEC. 8012. DEFINITIONS.
‘‘For purposes of this title, the following definitions
apply:
‘‘(1) 
ARMED
FORCES.—The 
term 
‘Armed
Forces’ means the Army, Navy, Air Force, and Ma-
rine Corps.
‘‘(2) AVERAGE PER-PUPIL EXPENDITURE.—The
term ‘average per-pupil expenditure’ means—
‘‘(A) the aggregate current expenditures of
all local educational agencies in the State; di-
vided by
662
‘‘(B) the total number of children in aver-
age daily attendance for whom such agencies
provided free public education.
‘‘(3) CONSTRUCTION.—The term ‘construction’
means—
‘‘(A) the preparation of drawings and spec-
ifications for school facilities;
‘‘(B) erecting, building, acquiring, altering,
remodeling, repairing, or extending school facili-
ties;
‘‘(C) inspecting and supervising the con-
struction of school facilities; and
‘‘(D) debt service for such activities.
‘‘(4) FEDERAL PROPERTY.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraphs (B) through (F), the term ‘Fed-
eral property’ means real property that is not
subject to taxation by any State or any political
subdivision of a State due to Federal agree-
ment, law, or policy, and that is—
‘‘(i) owned by the United States or
leased by the United States from another
entity;
663
‘‘(ii)(I) held in trust by the United
States for individual Indians or Indian
tribes;
‘‘(II) held by individual Indians or In-
dian tribes subject to restrictions on alien-
ation imposed by the United States;
‘‘(III) conveyed at any time under the
Alaska Native Claims Settlement Act
(Public Law 92–203, 43 U.S.C. 1601 et
seq.) to a Native individual, Native group,
or Village or Regional corporation;
‘‘(IV) public land owned by the
United States that is designated for the
sole use and benefit of individual Indians
or Indian tribes; or
‘‘(V) used for low-rent housing, as
otherwise described in this paragraph, that
is located on land described in subclause
(I), (II), (III), or (IV) of this clause or on
land that met one of those descriptions im-
mediately before its use for such housing;
‘‘(iii)(I) part of a low-rent housing
project assisted under the United States
Housing Act of 1937; or
664
‘‘(II) used to provide housing for
homeless children at closed military instal-
lations pursuant to section 501 of the
Stewart B. McKinney Homeless Assistance
Act (42 U.S.C. 11411); or
‘‘(iv) owned by a foreign government
or by an international organization.
‘‘(B) SCHOOLS PROVIDING FLIGHT TRAIN-
ING TO MEMBERS OF AIR FORCE.—The term
‘Federal property’ includes, so long as not sub-
ject to taxation by any State or any political
subdivision of a State, and whether or not that
tax exemption is due to Federal agreement, law,
or policy, any school providing flight training to
members of the Air Force under contract with
the Air Force at an airport owned by a State
or political subdivision of a State.
‘‘(C) NON-FEDERAL EASEMENTS, LEASES,
LICENSES, PERMITS, IMPROVEMENTS, AND CER-
TAIN OTHER REAL PROPERTY.—The term ‘Fed-
eral property’ includes, whether or not subject
to taxation by a State or a political subdivision
of a State—
‘‘(i) any non-Federal easement, lease,
license, permit, or other such interest in
665
Federal property as otherwise described in
this paragraph, but not including any non-
Federal fee-simple interest;
‘‘(ii) any improvement on Federal
property as otherwise described in this
paragraph; and
‘‘(iii) real property that, immediately
before its sale or transfer to a non-Federal
party, was owned by the United States and
otherwise qualified as Federal property de-
scribed in this paragraph, but only for one
year beyond the end of the fiscal year of
such sale or transfer.
‘‘(D) CERTAIN POSTAL SERVICE PROPERTY
AND PIPELINES AND UTILITY LINES.—Notwith-
standing any other provision of this paragraph,
the term ‘Federal property’ does not include—
‘‘(i) any real property under the juris-
diction of the United States Postal Service
that is used primarily for the provision of
postal services; or
‘‘(ii) pipelines and utility lines.
‘‘(E) PROPERTY WITH RESPECT TO WHICH
STATE OR LOCAL TAX REVENUES MAY NOT BE
EXPENDED, ALLOCATED, OR
AVAILABLE
FOR
666
FREE
PUBLIC
EDUCATION.—Notwithstanding
any other provision of this paragraph, ‘Federal
property’ does not include any property on
which children reside that is otherwise de-
scribed in this paragraph if—
‘‘(i) no tax revenues of the State or of
any political subdivision of the State may
be expended for the free public education
of children who reside on that Federal
property; or
‘‘(ii) no tax revenues of the State are
allocated or available for the free public
education of such children.
‘‘(F) CERTAIN
PROPERTY
LOCATED
IN
STATE OF OKLAHOMA OWNED BY INDIAN HOUS-
ING AUTHORITY FOR LOW-INCOME HOUSING.—
The term ‘Federal property’ includes any real
property located in the State of Oklahoma
that—
‘‘(i) is owned by an Indian housing
authority and used for low-income housing
(including housing assisted under the mu-
tual help ownership opportunity program
under section 202 of the United States
Housing Act of 1937); and
667
‘‘(ii) at any time—
‘‘(I) was designated by treaty as
tribal land; or
‘‘(II) satisfied the definition of
Federal 
property 
under 
section
403(1)(A) of the Act of September
30, 1950 (Public Law 874, 81st Con-
gress).
‘‘(5) FREE
PUBLIC
EDUCATION.—The term
‘free public education’ means education that is pro-
vided—
‘‘(A) at public expense, under public super-
vision and direction, and without tuition charge;
and
‘‘(B) as elementary or secondary edu-
cation, as determined under State law, except
that, notwithstanding State law, such term—
‘‘(i) includes preschool education; and
‘‘(ii) does not include any education
provided beyond grade 12.
‘‘(6) INDIAN LANDS.—The term ‘Indian lands’
means any Federal property described in paragraph
(4)(A)(ii) or (4)(F).
‘‘(7) LOCAL CONTRIBUTION PERCENTAGE.—
668
‘‘(A) IN GENERAL.—The term ‘local con-
tribution percentage’ means the percentage of
current expenditures in the State derived from
local and intermediate sources, as reported to
and verified by the National Center for Edu-
cation Statistics.
‘‘(B) HAWAII
AND
DISTRICT
OF
COLUM-
BIA.—Notwithstanding subparagraph (A), the
local contribution percentage for Hawaii and for
the District of Columbia shall be the local con-
tribution percentage computed for the Nation
as a whole.
‘‘(8) LOCAL EDUCATIONAL AGENCY.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the term ‘local educational
agency’—
‘‘(i) means a board of education or
other legally constituted local school au-
thority having administrative control and
direction of free public education in a
county, township, independent school dis-
trict, or other school district; and
‘‘(ii) includes any State agency that
directly operates and maintains facilities
for providing free public education.
669
‘‘(B) EXCEPTION.—The term ‘local edu-
cational agency’ does not include any agency or
school authority that the Secretary determines
on a case-by-case basis—
‘‘(i) was constituted or reconstituted
primarily for the purpose of receiving as-
sistance under this title or the Act of Sep-
tember 30, 1950 (Public Law 874, 81st
Congress) or increasing the amount of
such assistance; or
‘‘(ii) is not constituted or reconsti-
tuted for legitimate educational purposes.
‘‘(9) LOW-RENT HOUSING.—The term ‘low-rent
housing’ means housing located on property that is
described paragraph (4)(A)(iii).
‘‘(10) 
REVENUE
DERIVED
FROM
LOCAL
SOURCES.—The term ‘revenue derived from local
sources’ means—
‘‘(A) revenue produced within the bound-
aries of a local educational agency and available
to such agency for its use; or
‘‘(B) funds collected by another govern-
mental unit, but distributed back to a local edu-
cational agency in the same proportion as it
was collected as a local revenue source.
670
‘‘(11) SCHOOL FACILITIES.—The term ‘school
facilities’ includes—
‘‘(A) classrooms and related facilities; and
‘‘(B) equipment, machinery, and utilities
necessary or appropriate for school purposes.
‘‘SEC. 8013. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) PAYMENTS
FOR FEDERAL ACQUISITION
OF
REAL PROPERTY.—For the purpose of making payments
under section 8003, there are authorized to be appro-
priated $16,750,000 for fiscal year 1995 and such sums
as may be necessary for each of the fiscal years 1996,
1997, 1998, and 1999.
‘‘(b) BASIC PAYMENTS.—For the purpose of making
payments under section 8004(a), there are authorized to
be appropriated $775,500,000 for fiscal year 1995 and
such sums as may be necessary for each of the fiscal years
1996, 1997, 1998, and 1999.
‘‘(c) PAYMENTS
FOR CHILDREN WITH DISABIL-
ITIES.—For the purpose of making payments under sec-
tion 8004(d), there are authorized to be appropriated
$45,000,000 for fiscal year 1995 and such sums as may
be necessary for each of the fiscal years 1996, 1997, 1998,
and 1999.
‘‘(d) PAYMENTS
FOR HEAVILY IMPACTED LOCAL
EDUCATIONAL AGENCIES.—
671
‘‘(1) IN GENERAL.—For the purpose of making
payments under section 8004(f), there are author-
ized to be appropriated $42,000,000 for fiscal year
1995 and such sums as may be necessary for each
of the fiscal years 1996, 1997, 1998, and 1999.
‘‘(2) 
AVAILABILITY.—Amounts 
appropriated
pursuant to the authorization of appropriations
under paragraph (1) are authorized to remain avail-
able until expended.
‘‘(e) PAYMENTS FOR INCREASES IN MILITARY CHIL-
DREN.—For the purpose of making payments under sec-
tion 8007, there are authorized to be appropriated
$2,000,000 for fiscal year 1995 and such sums as may
be necessary for each of the fiscal years 1996, 1997, 1998,
and 1999.
‘‘(f) FACILITIES MAINTENANCE.—For the purpose of
making payments under section 8008, there are author-
ized to be appropriated $2,000,000 for fiscal year 1995
and such sums as may be necessary for each of the fiscal
years 1996, 1997, 1998, and 1999.
672
‘‘TITLE IX—GENERAL
PROVISIONS
‘‘PART A—DEFINITIONS
‘‘SEC. 9101. DEFINITIONS.
‘‘Except as otherwise provided, for the purposes of
this Act, the following terms have the following meanings:
‘‘(1)(A) Except as provided otherwise by State
law or this paragraph, the term ‘average daily at-
tendance’ means—
‘‘(i) the aggregate number of days of at-
tendance of all students during a school year;
divided by
‘‘(ii) the number of days school is in ses-
sion during such school year.
‘‘(B) The Secretary shall permit the conversion
of average daily membership (or other similar data)
to average daily attendance for local educational
agencies in States that provide State aid to local
educational agencies on the basis of average daily
membership or such other data.
‘‘(C) If the local educational agency in which a
child resides makes a tuition or other payment for
the free public education of the child in a school lo-
cated in another school district, the Secretary shall,
for purposes of this Act—
673
‘‘(i) consider the child to be in attendance
at a school of the agency making such payment;
and
‘‘(ii) not consider the child to be in attend-
ance at a school of the agency receiving such
payment.
‘‘(D) If a local educational agency makes a tui-
tion payment to a private school or to a public
school of another local educational agency for a child
with disabilities, as defined in section 602(a)(1) of
the Individuals with Disabilities Education Act, the
Secretary shall, for the purposes of this Act, con-
sider such child to be in attendance at a school of
the agency making such payment.
‘‘(2) The term ‘average per-pupil expenditure’
means, in the case of a State or of the United
States—
‘‘(A) without regard to the source of
funds—
‘‘(i) the aggregate current expendi-
tures, during the third preceding fiscal
year (or, if satisfactory data for that year
are not available, during the most recent
preceding fiscal year for which satisfactory
data are available) of all local educational
674
agencies in the State or, in the case of the
United States for all States (which, for the
purpose of this paragraph, means the 50
States and the District of Columbia); plus
‘‘(ii) any direct current expenditures
by the State for operation of such agen-
cies; divided by
‘‘(B) the aggregate number of children in
average daily attendance to whom such agencies
provided free public education during such pre-
ceding year.
‘‘(3) The term ‘child’ means any person within
the age limits for which the applicable State provides
free public education.
‘‘(4) The term ‘community-based organization’
means a private nonprofit organization that—
‘‘(A) is representative of a community or
significant segments of a community; and
‘‘(B) provides educational or related serv-
ices to individuals in the community.
‘‘(5) The term ‘consolidated State application’
means an application submitted by a State edu-
cational agency pursuant to section 9302 of this Act.
675
‘‘(6) The term ‘county’ means one of those divi-
sions of a State used by the Secretary of Commerce
in compiling and reporting data regarding counties.
‘‘(7) The term ‘covered program’ means each of
the programs authorized by—
‘‘(A) part A of title I of this Act;
‘‘(B) part C of title I of this Act;
‘‘(C) part A of title II of this Act; and
‘‘(D) part A of title IV of this Act except
section 4104.
‘‘(8) The term ‘current expenditures’ means ex-
penditures for free public education—
‘‘(A) including expenditures for adminis-
tration, instruction, attendance and health serv-
ices, pupil transportation services, operation
and maintenance of plant, fixed charges, and
net expenditures to cover deficits for food serv-
ices and student body activities; but
‘‘(B) not including expenditures for com-
munity services, capital outlay, and debt serv-
ice, or any expenditures made from funds re-
ceived under title I and part A of title II of this
Act.
‘‘(9) The term ‘Department’ means the Depart-
ment of Education.
676
‘‘(10) The term ‘educational service agency’
means regional public multiservice agencies author-
ized by State statute to develop, manage, and pro-
vide services and programs to local educational agen-
cies.
‘‘(11) The term ‘elementary school’ means a
nonprofit institutional day or residential school that
provides elementary education, as determined under
State law.
‘‘(12) The term ‘free public education’ means
education that is provided—
‘‘(A) at public expense, under public super-
vision and direction, and without tuition charge;
and
‘‘(B) as elementary or secondary school
education as determined under applicable State
law, except that such term does not include any
education provided beyond grade 12.
‘‘(13) The term ‘institution of higher education’
has the meaning given that term in section 1201(a)
of the Higher Education Act of 1965.
‘‘(14)(A) The term ‘local educational agency’
means a public board of education or other public
authority legally constituted within a State for either
administrative control or direction of, or to perform
677
a service function for, public elementary or second-
ary schools in a city, county, township, school dis-
trict, or other political subdivision of a State, or for
such combination of school districts or counties as
are recognized in a State as an administrative agen-
cy for its public elementary or secondary schools.
‘‘(B) The term includes any other public insti-
tution or agency having administrative control and
direction of a public elementary or secondary school.
‘‘(15) The term ‘mentoring’ means a program
in which an adult works with a child or youth on a
1-to-1 basis, establishing a supportive relationship,
providing academic assistance, and exposing the
child or youth to new experiences that enhance the
child or youth’s ability to excel in school and become
a responsible citizen.
‘‘(16) The term ‘other staff’ means pupil serv-
ices personnel, librarians, career guidance and coun-
seling personnel, education aides, and other instruc-
tional and administrative personnel.
‘‘(17) The term ‘outlying area’ means the Vir-
gin Islands, Guam, American Samoa, the Common-
wealth of the Northern Mariana Islands, and Palau
(until the effective date of the Compact of Free As-
sociation with the Government of Palau).
678
‘‘(18) The term ‘parent’ includes a legal guard-
ian or other person standing in loco parentis.
‘‘(19) The terms ‘pupil-services personnel’ and
‘pupil services’ mean, respectively—
‘‘(A) school counselors, school social work-
ers, school psychologists, and other qualified
professional personnel involved in providing as-
sessment, diagnosis, counseling, educational,
therapeutic, and other necessary services as
part of a comprehensive program to meet stu-
dent needs; and
‘‘(B) the services provided by such individ-
uals.
‘‘(20) The term ‘secondary school’ means a
nonprofit institutional day or residential school that
provides secondary education, as determined under
State law, except that it does not include any edu-
cation beyond grade 12.
‘‘(21) The term ‘Secretary’ means the Secretary
of Education.
‘‘(22) The term ‘State’ means each of the 50
States, the District of Columbia, the Commonwealth
of Puerto Rico, and each of the outlying areas.
‘‘(23) The term ‘State educational agency’
means the agency primarily responsible for the State
679
supervision of public elementary and secondary
schools.
‘‘SEC. 9102. APPLICABILITY OF THIS TITLE.
‘‘Parts B through F of this title do not apply to title
VIII of this Act.
‘‘SEC. 9103. REFERENCES IN OTHER ACTS.
‘‘References to section 1471 of this Act, as it existed
prior to the enactment of the Improving America’s Schools
Act of 1994, shall be deemed to refer to this section.
‘‘SEC. 9104. APPLICABILITY TO BUREAU OF INDIAN AFFAIRS
OPERATED SCHOOLS.
‘‘For purposes of any competitive program under this
Act, a consortia of schools operated by the Bureau of In-
dian Affairs, a school operated under a contract or grant
with the Bureau of Indian Affairs in consortia with an-
other contract or grant school or tribal or community or-
ganization, or a Bureau of Indian Affairs school in consor-
tia with an institution of higher education, a contract or
grant school and tribal or community organization shall
be given the same consideration as a local educational
agency. Such consortia shall apply through the Bureau of
Indian Affairs which shall apply to the Department of
Education on their behalf.
680
‘‘PART B—FLEXIBILITY IN THE USE OF
ADMINISTRATIVE AND OTHER FUNDS
‘‘SEC. 9201. CONSOLIDATION OF STATE ADMINISTRATIVE
FUNDS FOR ELEMENTARY AND SECONDARY
EDUCATION PROGRAMS.
‘‘(a) CONSOLIDATION OF ADMINISTRATIVE FUNDS.—
(1) A State educational agency may consolidate the
amounts specifically made available to it for State admin-
istration under one or more of the programs specified
under paragraph (2) if such State educational agency can
demonstrate that the majority of such agency’s resources
come from non-Federal sources.
‘‘(2) This section applies to title I of this Act and
the covered programs specified in sections 9101(7)(C) and
(D).
‘‘(b) USE OF FUNDS.—(1) A State educational agen-
cy shall use the amount available under this section for
the administration of the programs included in the consoli-
dation under subsection (a).
‘‘(2) A State educational agency may also use funds
available under this section for administrative activities
designed to enhance the effective and coordinated use of
funds under such programs, such as—
‘‘(A) the coordination of programs specified in
subsection (a)(2) with other Federal and non-Fed-
eral programs;
681
‘‘(B) the establishment and operation of peer-
review mechanisms under this Act;
‘‘(C) the administration of this title;
‘‘(D) the dissemination of information regard-
ing model programs and practices; and
‘‘(E) technical assistance under programs speci-
fied in subsection (a)(2).
‘‘(c) RECORDS.—A State educational agency that
consolidates administrative funds under this section shall
not be required to keep separate records, by individual
program, to account for costs relating to the administra-
tion of programs included in the consolidation under sub-
section (a).
‘‘(d) REVIEW.—To determine the effectiveness of
State administration under this section, the Secretary may
periodically review the performance of State educational
agencies in using consolidated administrative funds under
this section and take such steps as the Secretary finds
appropriate to ensure the effectiveness of such administra-
tion.
‘‘(e) UNUSED ADMINISTRATIVE FUNDS.—If a State
educational agency does not use all of the funds available
to it under this section for administration, it may use such
funds during the applicable period of availability as funds
682
available under one or more programs included in the con-
solidation under subsection (a).
‘‘SEC. 9202. SINGLE LOCAL EDUCATIONAL AGENCY STATES.
‘‘A State educational agency that also serves as a
local educational agency shall, in its applications or State
plans under this Act, describe how it will eliminate dupli-
cation in the conduct of administrative functions.
‘‘SEC. 9203. CONSOLIDATION OF FUNDS FOR LOCAL ADMIN-
ISTRATION.
‘‘(a) GENERAL AUTHORITY.—In accordance with
regulations of the Secretary, a local educational agency,
with the approval of its State educational agency, may
consolidate and use for the administration of one or more
covered programs for any fiscal year not more than the
percentage, established in each covered program, of the
total amount available to that local educational agency
under those covered programs.
‘‘(b) STATE PROCEDURES.—Within one year from
the date of enactment of the Improving America’s Schools
Act of 1994, a State educational agency shall, in collabora-
tion with local educational agencies in the State, establish
procedures for responding to requests from local edu-
cational agencies to consolidate administrative funds
under subsection (a) and for establishing limitations on
683
the amount of funds under covered programs that may
be used for administration on a consolidated basis.
‘‘(c) CONDITIONS.—A local educational agency that
consolidates administrative funds under this section for
any fiscal year shall not use any other funds under the
programs included in the consolidation for administration
for that fiscal year.
‘‘(d) USES
OF ADMINISTRATIVE FUNDS.—A local
educational agency that consolidates administrative funds
under this section may use these consolidated funds for
the administration of covered programs and for the pur-
poses described in section 9201(b)(2).
‘‘(e) RECORDS.—A local educational agency that con-
solidates administrative funds under this section shall not
be required to keep separate records, by individual covered
program, to account for costs relating to the administra-
tion of covered programs included in the consolidation.
‘‘SEC. 9204. ADMINISTRATIVE FUNDS STUDY.
‘‘(a) STUDY.—(1) The Secretary shall conduct a
study of the use of funds under this Act for the adminis-
tration, by State and local educational agencies, of covered
programs, including the percentage of grant funds used
for such purpose in covered programs.
‘‘(2) Based on the results of such study, the Sec-
retary shall develop a definition of what types of activities
684
constitute the administration of programs under this Act
by State and local educational agencies.
‘‘(3) Based on the results of such study, the Sec-
retary may publish regulations or guidelines regarding the
use of funds for administration under those programs, in-
cluding the use of such funds on a consolidated basis and
limitations on the amount of such funds that may be used
for administration where such limitation is not otherwise
specified in law.
‘‘(b) REPORT.—The Secretary shall submit to the
President and the appropriate committees of the Congress
a report regarding the study conducted under this section
within 30 days of its completion.
‘‘SEC. 9205. CONSOLIDATED SET-ASIDE FOR DEPARTMENT
OF THE INTERIOR FUNDS.
‘‘(a) GENERAL AUTHORITY.—(1) The Secretary shall
transfer to the Department of the Interior, as a consoli-
dated amount for covered programs, the Indian education
programs under part A of title VI of this Act, and the
education for homeless children and youth program under
subtitle B of title VII of the Stewart B. McKinney Home-
less Assistance Act, the amounts allotted to the Depart-
ment of the Interior under those programs.
‘‘(2)(A) The Secretary and the Secretary of the Inte-
rior shall enter into an agreement, consistent with the re-
685
quirements of the programs specified in paragraph (1), for
the distribution and use of those funds under terms that
the Secretary determines best meet the purposes of those
programs.
‘‘(B) The agreement shall—
‘‘(i) set forth the plans of the Secretary of the
Interior for the use of the amount transferred, the
steps to be taken to achieve the National Education
Goals, and performance measures to assess program
effectiveness, including measurable goals and objec-
tives; and
‘‘(ii) be developed in consultation with Indian
tribes.
‘‘(b) ADMINISTRATION.—The Department of the In-
terior may use up to 1.5 percent of the funds consolidated
under this section for its costs related to the administra-
tion of the funds transferred under this section.
‘‘SEC. 9206. AVAILABILITY OF UNNEEDED PROGRAM FUNDS.
‘‘(a) UNNEEDED PROGRAM FUNDS.—With the ap-
proval of its State educational agency, a local educational
agency that determines for any fiscal year that funds
under a covered program other than part A of title I of
this Act are not needed for the purpose of that covered
program may use such funds, not to exceed five percent
686
of the total amount of its funds under that covered pro-
gram, for the purpose of another covered program.
‘‘(b) COORDINATION
OF SERVICES.—A local edu-
cational agency, individual school, or consortium of schools
may use a total of up to 5 percent of the funds it receives
under this Act for the establishment and implementation
of a coordinated services project consistent with the re-
quirements of title X of this Act.’’.
‘‘PART C—COORDINATION OF PROGRAMS; CON-
SOLIDATED STATE AND LOCAL APPLICA-
TIONS
‘‘SEC. 9301. PURPOSE.
‘‘It is the purpose of this part to improve teaching
and learning by encouraging greater cross-program coordi-
nation, planning, and service delivery under this Act and
enhanced integration of programs under this Act with edu-
cational activities carried out with State and local funds.
‘‘SEC. 9302. OPTIONAL CONSOLIDATED STATE APPLICA-
TION.
‘‘(a) GENERAL AUTHORITY.—(1) In order to simplify
application requirements and reduce burden for State edu-
cational agencies under this Act, the Secretary shall, in
accordance with subsection (b), establish procedures and
criteria under which a State educational agency may sub-
mit a consolidated State application meeting the require-
687
ments of this section for each of the covered programs
in which the State participates.
‘‘(2) A State educational agency may also include in
its consolidated application—
‘‘(A) the Even Start program under part B of
title I of this Act;
‘‘(B) the education of neglected and delinquent
youth program under part D of title I of this Act;
‘‘(C) part A of title II of the Carl D. Perkins
Vocational and Applied Technology Education Act;
‘‘(D) Goals 2000: Educate America Act;
‘‘(E) School-to-Work Opportunities Act; and
‘‘(F) such other programs as the Secretary may
designate.
‘‘(3) A State educational agency that submits a con-
solidated State application under this section shall not be
required to submit separate State plans or applications
under any of the programs to which its consolidated appli-
cation under this section applies.
‘‘(b) COLLABORATION.—(1) In establishing criteria
and procedures under this section, the Secretary shall col-
laborate with State educational agencies and, as appro-
priate, with other State agencies, local educational
agencies, public and private nonprofit agencies, organiza-
688
tions, and institutions, private schools, and representatives
of parents, students, and teachers.
‘‘(2) Through the collaboration process described in
subsection (b), the Secretary shall establish, for each pro-
gram under the Act to which this section applies, the de-
scriptions, information, assurances, and other material
required to be included in a consolidated State application.
‘‘(3) The Secretary shall require only descriptions, in-
formation, assurances, and other materials that are abso-
lutely necessary for the consideration of the State applica-
tion.
‘‘SEC. 9303. GENERAL APPLICABILITY OF STATE EDU-
CATIONAL AGENCY ASSURANCES.
‘‘(a) ASSURANCES.—A State educational agency that
submits a State plan or application under this Act, wheth-
er separately or under section 9302, shall have on file with
the Secretary a single set of assurances, applicable to each
program for which a plan or application is submitted, that
provides that—
‘‘(1) each such program will be administered in
accordance with all applicable statutes, regulations,
program plans, and applications;
‘‘(2)(A) the control of funds provided under
each such program and title to property acquired
with program funds will be in a public agency, in a
689
nonprofit private agency, institution, or organiza-
tion, or in an Indian tribe if the statute authorizing
the program provides for assistance to such entities;
and
‘‘(B) the public agency, nonprofit private agen-
cy, institution, or organization, or Indian tribe will
administer such funds and property to the extent re-
quired by the authorizing statutes;
‘‘(3) the State will adopt and use proper meth-
ods of administering each such program, including—
‘‘(A) the enforcement of any obligations
imposed by law on agencies, institutions, orga-
nizations and other recipients responsible for
carrying out each program;
‘‘(B) the correction of deficiencies in pro-
gram operations that are identified through au-
dits, monitoring, or evaluation; and
‘‘(C) the adoption of written procedures for
the receipt and resolution of complaints alleging
violations of law in the administration of such
programs;
‘‘(4) the State will cooperate in carrying out
any evaluation of each such program conducted by
or for the Secretary or other Federal officials;
690
‘‘(5) the State will use such fiscal control and
fund accounting procedures as will ensure proper
disbursement of, and accounting for, Federal funds
paid to the State under each such program;
‘‘(6) the State will—
‘‘(A) make reports to the Secretary as may
be necessary to enable the Secretary to perform
the Secretary’s duties under each such pro-
gram; and
‘‘(B) maintain such records, provide such
information to the Secretary, and afford access
to the records as the Secretary may find nec-
essary to carry out the Secretary’s duties; and
‘‘(7) before the application was submitted to the
Secretary, the State has afforded a reasonable op-
portunity for public comment on the application and
has considered such comment.
‘‘(b) GEPA PROVISION.—Section 440 of the General
Education Provisions Act does not apply to programs
under this Act.
‘‘SEC. 9304. CONSOLIDATED LOCAL APPLICATIONS.
‘‘(a) GENERAL AUTHORITY.—A local educational
agency receiving funds under more than one covered pro-
gram may submit applications to the State educational
agency under such programs on a consolidated basis.
691
‘‘(b) REQUIRED CONSOLIDATED APPLICATIONS.—A
State educational agency that has submitted and had ap-
proved a consolidated State application under section
9302 may require local educational agencies in the State
receiving funds under more than one program included in
the consolidated State application to submit consolidated
local applications under such programs.
‘‘(c) COLLABORATION.—A State educational agency
shall collaborate with local educational agencies in the
State in establishing procedures for the submission of the
consolidated applications under this section.
‘‘(d) The State educational agency shall require only
descriptions, information, assurances, and other material
that are absolutely necessary for the consideration of the
application of the local educational agency.
‘‘SEC. 9305. OTHER GENERAL ASSURANCES.
‘‘(a) ASSURANCES.—Any applicant other than a
State educational agency that submits an application
under this Act, whether separately or pursuant to section
9304, shall have on file with the State educational agency
a single set of assurances, applicable to each program for
which an application is submitted, that provides that—
‘‘(1) each such program will be administered in
accordance with all applicable statutes, regulations,
program plans, and applications;
692
‘‘(2)(A) the control of funds provided under
each such program and title to property acquired
with program funds will be in a public agency or in
a nonprofit private agency, institution, organization,
or Indian tribe, if the statute authorizing the pro-
gram provides for assistance to such entities; and
‘‘(B) the public agency, nonprofit private agen-
cy, institution, or organization, or Indian tribe will
administer such funds and property to the extent re-
quired by the authorizing statutes;
‘‘(3) the applicant will adopt and use proper
methods of administering each such program, in-
cluding—
‘‘(A) the enforcement of any obligations
imposed by law on agencies, institutions, orga-
nizations, and other recipients responsible for
carrying out each program; and
‘‘(B) the correction of deficiencies in pro-
gram operations that are identified through au-
dits, monitoring, or evaluation;
‘‘(4) the applicant will cooperate in carrying out
any evaluation of each such program conducted by
or for the State educational agency or the Secretary
or other Federal officials;
693
‘‘(5) the applicant will use such fiscal control
and fund accounting procedures as will ensure prop-
er disbursement of, and accounting for, Federal
funds paid to such applicant under each such pro-
gram;
‘‘(6) the applicant will—
‘‘(A) make reports to the State educational
agency and the Secretary as may be necessary
to enable such agency and the Secretary to per-
form their duties under each such program; and
‘‘(B) maintain such records, provide such
information, and afford access to the records as
the State educational agency or the Secretary
may find necessary to carry out the State edu-
cational agency’s or the Secretary’s duties; and
‘‘(7) before the application was submitted, the
applicant afforded a reasonable opportunity for pub-
lic comment on the application and has considered
such comment.
‘‘(b) GEPA PROVISION.—Section 442 of the General
Education Provisions Act does not apply to programs
under this Act.
694
‘‘PART D—WAIVERS
‘‘SEC. 9401. WAIVERS OF STATUTORY AND REGULATORY
REQUIREMENTS.
‘‘(a) GENERAL.—Except as provided in subsection
(c), the Secretary may waive any requirement of this Act
or any regulation under this Act for a State educational
agency, local educational agency, Indian tribe, or school,
or that—
‘‘(1) receives funds under a program authorized
by this Act; and
‘‘(2) requests a waiver as prescribed in sub-
section (b).
‘‘(b) REQUEST
FOR WAIVER.—(1) A State edu-
cational agency, local educational agency, or Indian tribe
which desires a waiver shall submit a request to the Sec-
retary that—
‘‘(A) identifies the Federal programs affected
by such requested waiver;
‘‘(B) describes which Federal requirements are
to be waived and how the waiving of such require-
ments will—
‘‘(i) increase the quality of instruction to
students; or
‘‘(ii) improve the academic performance of
students;
695
‘‘(C) if applicable, describes which similar State
and local requirements will be waived and how the
waiving of such requirements will assist the local
educational agencies or Indian tribes and schools to
achieve the objectives described in this paragraph;
‘‘(D) describes specific, measurable educational
improvement goals and expected outcomes for all af-
fected students;
‘‘(E) describes the methods to be used to meas-
ure progress in meeting such goals and outcomes;
and
‘‘(F) describes how schools will continue to pro-
vide assistance to the same populations served by
programs for which waivers are requested.
‘‘(2) Such requests under this section—
‘‘(A) may provide for waivers of requirements
applicable to State educational agencies, local edu-
cational agencies, Indian tribes, and schools.
‘‘(B) shall be developed and submitted—
‘‘(i)(I) by local educational agencies (on
behalf of such agencies and schools) to State
educational agencies; and
‘‘(II) by State educational agencies (on be-
half of, and based upon the requests of, local
educational agencies) to the Secretary; or
696
‘‘(ii) by Indian tribes (on behalf of schools
operated by such tribes) to the Secretary.
‘‘(c) NOTICE REQUIREMENT.—(1) Prior to request-
ing a waiver under subsection (b), a State educational
agency, local educational agency, or Indian tribe shall pro-
vide notice and information to the public regarding the
waiver or waivers to be requested.
‘‘(2) Such notice and information shall be provided
in the manner that such agencies or tribes customarily
provide similar notices and information to the public.
‘‘(d) RESTRICTIONS.—Nothing in this section shall be
construed to authorize any changes in—
‘‘(1) requirements relating to—
‘‘(A) the allocation of funds;
‘‘(B) maintenance of effort;
‘‘(C) comparability of services;
‘‘(D) use of Federal funds to supplement,
not supplant non-Federal funds;
‘‘(E) equitable participation of private
school students and teachers; and
‘‘(F) parental participation and involve-
ment;
‘‘(2) the elements of a charter school described
in section 3407(1); or
‘‘(3) the prohibitions regarding—
697
‘‘(A) State aid in section 9502; or
‘‘(B) use of funds for religious worship or in-
struction in section 9507.
‘‘(e) DURATION AND EXTENSION OF WAIVER.—(1)
The duration of a waiver approved by the Secretary may
be for a period not to exceed 3 years.
‘‘(2) The Secretary may extend such period if the
Secretary determines that the use of such waiver has in-
creased the quality of instruction or the academic perform-
ance of students.
‘‘(f) TERMINATION
OF WAIVERS.—The Secretary
shall terminate a waiver under this section if—
‘‘(1) the Secretary determines that the use of a
waiver has not increased the quality of instruction or
improved the academic performance of students; or
‘‘(2) such waiver is no longer needed by the re-
cipient to achieve the objectives of such waiver.
‘‘(g) REPORTS.—
‘‘(1) A local educational agency that receives a
waiver under this section shall annually submit a re-
port to the State educational agency that—
‘‘(A) describes the uses of such waiver by
such agency or by schools;
‘‘(B) describes how schools continued to
provide assistance to the same populations
698
served by the programs for which waivers are
requested; and
‘‘(C) evaluates the progress of such agency
and of schools in improving the quality of in-
struction or the academic performance of stu-
dents.
‘‘(2) A State educational agency that receives
reports required by paragraph (1) shall annually
submit a report to the Secretary that summarizes
such reports.
‘‘(3) An Indian tribe that receives a waiver
under this section shall annually submit a report to
the Secretary that—
‘‘(A) describes the uses of such waiver by
schools operated by such tribe; and
‘‘(B) evaluates the progress of such schools
in improving the quality of instruction or the
academic performance of students.
‘‘(4) The Secretary annually shall submit to the
Committee on Education and Labor of the House of
Representatives and the Committee on Labor and
Human Resources of the Senate a report—
‘‘(A) summarizing the uses of waivers by
State educational agencies, local educational
agencies, Indian tribes, and schools; and
699
‘‘(B) describing whether such waivers—
‘‘(i) increased the quality of instruc-
tion to students; or
‘‘(ii) improved the academic perform-
ance of students.
‘‘PART E—UNIFORM PROVISIONS
‘‘SEC. 9501. MAINTENANCE OF EFFORT.
‘‘(a) GENERAL.—A local educational agency may re-
ceive funds under a covered program for any fiscal year
only if the State educational agency finds that either the
combined fiscal effort per student or the aggregate ex-
penditures of that agency and the State with respect to
the provision of free public education by that agency for
the preceding fiscal year was not less than 90 percent of
such combined fiscal effort or aggregate expenditures for
the second preceding fiscal year.
‘‘(b) REDUCTION IN CASE OF FAILURE TO MEET.—
(1) The State educational agency shall reduce the amount
of the allocation of funds under a covered program in any
fiscal year in the exact proportion to which a local edu-
cational agency fails to meet the requirement of subsection
(a) by falling below 90 percent of both the combined fiscal
effort per student and aggregate expenditures (using the
measure most favorable to such local agency).
700
‘‘(2) No such lesser amount shall be used for comput-
ing the effort required under subsection (a) for subsequent
years.
‘‘(c) WAIVER.—The Secretary may waive the require-
ments of this section if the Secretary determines that such
a waiver would be equitable due to—
‘‘(1) exceptional or uncontrollable circumstances
such as a natural disaster; or
‘‘(2) a precipitous decline in the financial re-
sources of the local educational agency.
‘‘SEC. 9502. PROHIBITION REGARDING STATE AID.
‘‘No State may take into consideration payments
under this Act (other than under title VIII) in determining
the eligibility of any local educational agency in that State
for State aid, or the amount of State aid, with respect
to free public education of children.
‘‘SEC. 9503. PARTICIPATION BY PRIVATE SCHOOL CHIL-
DREN AND TEACHERS.
‘‘(a) GENERAL REQUIREMENT.—(1) Except as other-
wise provided in this Act, to the extent consistent with
the number of eligible children in a State educational
agency, local educational agency, or intermediate edu-
cational agency or consortium receiving financial assist-
ance under a program specified in subsection (b), who are
enrolled in private elementary and secondary schools in
701
such agency or consortium, such agency or consortium
shall, after timely and meaningful consultation with ap-
propriate private school officials, provide such children
and their teachers or other educational personnel, on an
equitable basis, special educational services or other bene-
fits under such program.
‘‘(2) Educational services or other benefits, including
materials and equipment, provided under this section,
must be secular, neutral, and nonideological.
‘‘(3) Educational services and other benefits provided
under this section for such private school children, teach-
ers, and other educational personnel shall be equitable in
comparison to services and other benefits for public school
children, teachers, and other educational personnel partici-
pating in such program.
‘‘(4) Expenditures for educational services and other
benefits provided under this section to eligible private
school children, their teachers, and other educational per-
sonnel serving them shall be equal, taking into account
the number and educational needs of the children to be
served, to the expenditures for participating public school
children.
‘‘(5) Such agency or consortium may provide such
services directly or through contracts with public and pri-
vate agencies, organizations, and institutions.
702
‘‘(b) APPLICABILITY.—(1) This section applies to—
‘‘(A) each covered program;
‘‘(B) subpart 1 of part B and part C of title
II; and
‘‘(C) programs under title VII of this Act.
‘‘(2) For the purposes of this section, the term ‘eligi-
ble children’ mean children eligible for services under a
program described in paragraph (1).
‘‘(c) PUBLIC CONTROL OF FUNDS.—(1) The control
of funds used to provide services under this section, and
title to materials, equipment, and property purchased with
these funds, shall be in a public agency for the uses and
purposes provided in this Act, and a public agency shall
administer such funds and property.
‘‘(2)(A) The provision of services under this section
shall be provided—
‘‘(i) by employees of a public agency; or
‘‘(ii) through contract by such public agency
with an individual, association, agency, or organiza-
tion.
‘‘(B) In the provision of such services, such employee,
person, association, agency, or organization shall be inde-
pendent of such private school and of any religious organi-
zation, and such employment or contract shall be under
the control and supervision of such public agency.
703
‘‘(C) Funds used to provide services under this sec-
tion shall not be commingled with non-Federal funds.
‘‘SEC. 9504. STANDARDS FOR BY-PASS.
‘‘If, by reason of any provision of law, a State, local,
or intermediate educational agency or consortium is pro-
hibited from providing for the participation in programs
of children enrolled in, or teachers or other educational
personnel from, private elementary and secondary schools,
on an equitable basis, or if the Secretary determines that
such agency or consortium has substantially failed or is
unwilling to provide for such participation, as required by
section 9503, the Secretary shall—
‘‘(1) waive the requirements of that section for
such agency or consortium; and
‘‘(2) arrange for the provision of equitable serv-
ices to such children, teachers, or other educational
personnel through arrangements that shall be sub-
ject to the requirements of this section and of sec-
tions 9503, 9505, and 9506.
‘‘SEC. 9505. COMPLAINT PROCESS FOR PARTICIPATION OF
PRIVATE SCHOOL CHILDREN.
‘‘(a) PROCEDURES
FOR COMPLAINTS.—The Sec-
retary shall develop and implement written procedures for
receiving, investigating, and resolving complaints from
parents, teachers, or other individuals and organizations
704
concerning violations by an agency or consortium of sec-
tion 9503 of this Act. Such individual or organization shall
submit such complaint to the State educational agency for
a written resolution by such agency within a reasonable
period of time.
‘‘(b) APPEALS TO THE SECRETARY.—Such resolution
may be appealed by an interested party to the Secretary
within 30 days after the State educational agency resolves
the complaint or fails to resolve the complaint within a
reasonable period of time. Such appeal shall be accom-
panied by a copy of the State educational agency’s resolu-
tion, and a complete statement of the reasons supporting
the appeal. The Secretary shall investigate and resolve
each such appeal within 120 days after receipt of the ap-
peal.
‘‘SEC. 9506. BY-PASS DETERMINATION PROCESS.
‘‘(a) REVIEW.—(1)(A) The Secretary shall not take
any final action under section 9504 until the agency or
consortium affected by such action has had an oppor-
tunity, for at least 45 days after receiving written notice
thereof, to submit written objections and to appear before
the Secretary to show cause why that action should not
be taken.
‘‘(B) Pending final resolution of any investigation or
complaint that could result in a determination under this
705
section, the Secretary may withhold from the allocation
of the affected State or local educational agency the
amount estimated by the Secretary to be necessary to pay
the cost of those services.
‘‘(2)(A) If such affected agency or consortium is dis-
satisfied with the Secretary’s final action after a proceed-
ing under paragraph (1), it may, within 60 days after no-
tice of such action, file with the United States court of
appeals for the circuit in which such State is located a
petition for review of that action.
‘‘(B) A copy of the petition shall be forthwith trans-
mitted by the clerk of the court to the Secretary.
‘‘(C) The Secretary thereupon shall file in the court
the record of the proceedings on which the Secretary based
this action, as provided in section 2112 of title 28, United
States Code.
‘‘(3)(A) The findings of fact by the Secretary, if sup-
ported by substantial evidence, shall be conclusive, but the
court, for good cause shown, may remand the case to the
Secretary to take further evidence and the Secretary may
thereupon make new or modified findings of fact and may
modify the Secretary’s previous action, and shall file in
the court the record of the further proceedings.
‘‘(B) Such new or modified findings of fact shall like-
wise be conclusive if supported by substantial evidence.
706
‘‘(4)(A) Upon the filing of such petition, the court
shall have jurisdiction to affirm the action of the Secretary
or to set it aside, in whole or in part.
‘‘(B) The judgment of the court shall be subject to
review by the Supreme Court of the United States upon
certiorari or certification as provided in section 1254 of
title 28, United States Code.
‘‘(b) DETERMINATION.—Any determination by the
Secretary under this section shall continue in effect until
the Secretary determines, in consultation with such agency
or consortium and representatives of the affected private
school children, teachers, or other educational personnel
that there will no longer be any failure or inability on the
part of such agency or consortium to meet the applicable
requirements of section 9503 or any other provision of this
Act.
‘‘(c) PAYMENT FROM STATE ALLOTMENT.—When
the Secretary arranges for services pursuant to this sec-
tion, the Secretary shall, after consultation with the ap-
propriate public and private school officials, pay the cost
of such services, including the administrative costs of ar-
ranging for those services, from the appropriate allocation
or allocations under this Act.
‘‘(d) PRIOR DETERMINATION.—Any by-pass deter-
mination by the Secretary under this Act as in effect on
707
the day before enactment of the Improving America’s
Schools Act of 1994 shall remain in effect to the extent
the Secretary determines that it is consistent with the pur-
pose of this section.
‘‘SEC. 9507. PROHIBITION AGAINST FUNDS FOR RELIGIOUS
WORSHIP OR INSTRUCTION.
‘‘Nothing contained in this Act shall be construed to
authorize the making of any payment under this Act for
religious worship or instruction.
‘‘SEC. 9508. APPLICABILITY TO HOME SCHOOLS.
‘‘Nothing in this Act shall be construed to affect
home schools.
‘‘SEC. 
9509. 
GENERAL 
PROVISION 
REGARDING
NONRECIPIENT NONPUBLIC SCHOOLS.
‘‘Nothing in this Act shall be construed to permit,
allow, encourage, or authorize any Federal control over
any aspect of any private, religious, or home school,
whether or not a home school is treated as a private school
or home school under state law. This section shall not be
construed to bar private, religious, or home schools from
participation in programs or services under the Act.
‘‘SEC. 9510. COMPLIANCE WITH BUY AMERICAN ACT.
‘‘No funds appropriated pursuant to this Act may be
expended by an entity unless the entity agrees that in ex-
pending the assistance the entity will comply with sections
708
2 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a–
10c, popularly known as the ‘Buy American Act’).
‘‘SEC. 9511. SENSE OF CONGRESS; REQUIREMENT REGARD-
ING NOTICE.
‘‘(a) PURCHASE
OF AMERICAN-MADE EQUIPMENT
AND PRODUCTS.—In the case of any equipment of prod-
ucts that may be authorized to be purchased with financial
assistance provided under this Act, it is the sense of the
Congress that entities receiving such assistance should, in
expending the assistance, purchase only American-made
equipment and products.
‘‘(b) NOTICE TO RECIPIENTS OF ASSISTANCE.—In
providing financial assistance under this Act, the head of
each Federal agency shall provide to each recipient of the
assistance a notice describing the statement made in sub-
section (a) by the Congress.
‘‘SEC. 9512. PROHIBITION OF CONTRACTS.
‘‘If it has been finally determined by a court or Fed-
eral agency that any person intentionally affixed a label
bearing a ‘Made in America’ inscription, or any inscription
with the same meaning, to any product sold in or shipped
to the United States that is not made in the United
States, such person shall be ineligible to receive any con-
tract or subcontract made with funds provided pursuant
to this Act, pursuant to the debarment, suspension, and
709
ineligibility procedures described in section 9.400 through
9.409 of title 48, Code of Federal Regulations.
‘‘SEC. 9513. PROHIBITION AGAINST FUNDS FOR PROTECTED
PRAYER.
‘‘Notwithstanding any provision of law, no funds
made available through the Department of Education
under this Act, or any other Act, shall be available to any
State or local educational agency which has a policy of
denying or which effectively prevents participation in, con-
stitutionally protected prayer in public schools by individ-
uals on a voluntary basis. Neither the United States nor
any State nor any local educational agency shall require
any person to participate in prayer or influence the form
or content of any constitutionally protected prayer in such
public schools.
‘‘SEC. 9514. SEX EDUCATION.
‘‘(a) SEX EDUCATION INSTRUCTION.—All public ele-
mentary and secondary schools receiving assistance under
this Act which use such funds to teach sex education or
discuss sexual intercourse, sexually transmitted diseases
(STDs), including acquired immune deficiency syndrome
(AIDS), shall continuously stress throughout the sex edu-
cation program and sexual intercourse discussion that ab-
stinence from sexual intercourse is the only protection that
is 100 percent effective against unwanted teenage preg-
710
nancy, STDs, and AIDS when transmitted sexually. All
material and instruction which use such funds to teach
sex education and discuss sexual intercourse shall be age
appropriate.
‘‘(b) CRITERIA.—All sex education courses that dis-
cuss sexual intercourse may use the following criteria:
‘‘(1) Course material and instruction shall be
age appropriate.
‘‘(2) Course material and instruction shall
stress that abstinence is the only contraceptive
method which is 100 percent effective, and that all
other methods of contraception carry a risk of fail-
ure in preventing unwanted teenage pregnancy. Sta-
tistics based on the latest medical information shall
be provided to pupils citing the laboratory and real-
life failure and success rates of condoms and other
contraceptives in preventing pregnancy.
‘‘(3) Course material and instruction shall
stress that STDs are serious possible hazards of sex-
ual intercourse. Pupils shall be provided with statis-
tics based on the latest medical information citing
the laboratory and real-life failure and success rates
of condoms in preventing AIDS and other STDs
among elementary and secondary pupils.
711
‘‘(4) Course material and instruction shall in-
clude a discussion of the possible emotional and psy-
chological consequences of preadolescent and adoles-
cent sexual intercourse outside of marriage and the
consequences of unwanted adolescent pregnancy.
‘‘(5) Course material and instruction shall
stress that pupils should abstain from sexual inter-
course until they are ready for marriage.
‘‘(6) Course material and instruction shall teach
honor and respect for monogamous heterosexual
marriage.
‘‘(7) Course material and instruction shall ad-
vise pupils of the laws pertaining to their financial
responsibility to children born in and out of wedlock.
‘‘(8) Course material and instruction shall ad-
vise pupils that it is unlawful for males of any age
to have sexual relations with females under a certain
age to whom they are not married.
‘‘(9) Course material and instruction shall em-
phasize that the pupil has the power to control per-
sonal behavior. Pupils shall be encouraged to base
their actions on reasoning, self-discipline, sense of
responsibility, self-control, and ethical consider-
ations, such as respect for one’s self and others.
712
‘‘(10) Course material and instruction shall
teach pupils to refrain from making unwanted phys-
ical and verbal sexual advances and how to say ‘no’
to unwanted sexual advances. Pupils shall be taught
that it is wrong to take advantage of, or to exploit,
another person. The material and instruction shall
also encourage youth to resist negative peer pres-
sure.
‘‘(c) NO FEDERAL CONTROL
OF CURRICULUM.—
Nothing in this section shall be construed—
‘‘(1) to authorize an officer or employee of the
Federal Government to mandate, direct, or control a
State, local educational agency, or schools’ instruc-
tional content curriculum, or related activities;
‘‘(2) to limit the application of the General
Education Provisions Act;
‘‘(3) to require the distribution of scientifically
or medically false or inaccurate materials or to pro-
hibit the distribution of scientifically or medically
true or accurate materials; or
‘‘(4) to create any legally enforceable right.
‘‘(d) RULE OF CONSTRUCTION.—In carrying out the
provisions of this section, the Secretary shall not—
‘‘(1) review any curricula or instructional mate-
rials;
713
‘‘(2) promulgate regulations; or
‘‘(3) take any administrative or legal action
against a State or local educational agency or school.
‘‘SEC. 9515. PROHIBITION AGAINST FUNDS FOR HOMO-
SEXUAL SUPPORT.
‘‘(a) PROHIBITION.—No local educational agency
shall use funds made available under this Act to imple-
ment or carry out a program or activity that has either
the purpose or effect of encouraging or supporting homo-
sexuality as a positive lifestyle alternative. No local edu-
cational agency shall use funds under this Act to distrib-
ute or to aid in the distribution by any organization of
obscene material to minors on school grounds.
‘‘(b) DEFINITION.—A program or activity, for pur-
poses of this section, includes the distribution of instruc-
tional materials, instruction, counseling, or other services
on school grounds, or referral of a pupil to an organization
that affirms a homosexual lifestyle.
‘‘(c) NO FEDERAL CONTROL
OF CURRICULUM.—
Nothing in this section shall be construed—
‘‘(1) to authorize an officer or employee of the
Federal Government to mandate, direct, or control a
State, local educational agency, or schools’ instruc-
tional content, curriculum, and related activities;
714
‘‘(2) to limit the application of the General
Education Provisions Act;
‘‘(3) to require the distribution of scientifically
or medically false or inaccurate materials or to pro-
hibit the distribution of scientifically or medically
true or accurate materials; or
‘‘(4) to create any legally enforceable right.
‘‘(d) RULE OF CONSTRUCTION.—In carrying out the
provisions of this section, the Secretary shall not—
‘‘(1) review any curricula or instructional mate-
rials;
‘‘(2) promulgate regulations; or
‘‘(3) take any administrative or legal action
against a State or local educational agency or school.
‘‘SEC. 9516. NONSMOKING POLICY.
‘‘(a) GENERAL RULE.—Each person who receives
Federal funds under this Act and provides services to ele-
mentary or secondary school students pursuant to this Act
shall, in providing such services, establish and make a
good-faith effort to enforce a nonsmoking policy that, ex-
cept as provided in subsection (b)—
‘‘(1) prohibits smoking in each indoor portion
of a facility used in connection with the provision of
such services; and
715
‘‘(2) where appropriate, requires that signs be
posted to communicate the nonsmoking policy.
‘‘(b) PERMISSIBLE FEATURES.—(1) The nonsmoking
policy described in subsection (a) may permit smoking in
specially designated areas of a facility if—
‘‘(A) services are not normally provided directly
to children in the designated areas; and
‘‘(B) the designated areas are ventilated sepa-
rately from areas of the facility in which such serv-
ices are normally provided directly to children to en-
sure that air from the designated areas is directly
exhausted to the outside and does not recirculate or
drift to other areas within the facility.
‘‘(2) Nothing in this subsection shall be construed to
require the establishment of a designated smoking area.
‘‘(c) CIVIL PENALTIES.—
‘‘(1) Any person subject to the requirements of
this section who fails to comply with such require-
ments shall be liable to the United States for a civil
penalty in an amount not to exceed $1,000 for each
violation, but in no case shall the amount be in ex-
cess of the amount of the Federal funds received by
the person for the provision of elementary and sec-
ondary educational services for the fiscal year in
716
which the violation occurred. Each day a violation
continues shall constitute a separate violation.
‘‘(2) A civil penalty for a violation of this sec-
tion shall be assessed by the Secretary to the person
by an order made on the record after opportunity
for a hearing in accordance with section 554 of title
5, United States Code. Before issuing the order, the
Secretary shall—
‘‘(A) give written notice to the person to be
assessed a civil penalty under the order of the
proposal to issue the order; and
‘‘(B) provide the person an opportunity to
request, not later than 15 days after the date
of receipt of the notice, a hearing on the order.
‘‘(3) In determining the amount of a civil pen-
alty under this subsection, the Secretary shall take
into account the nature, circumstances, extent, and
gravity of the violation, the ability of the violator to
pay, any prior history of the same kind of violation,
the degree of culpability of the violator, a dem-
onstration by the violator of willingness to comply
with the requirements of this section, and such other
matters as justice may require.
‘‘(4) The Secretary may compromise, modify, or
remit, with or without conditions, any civil penalty
717
that may be imposed under this subsection. The
amount of the penalty as finally determined or
agreed upon in compromise may be deducted from
any sums that the United States owes to the person
against whom the penalty is assessed.
‘‘(5) A person who has requested a hearing con-
cerning the assessment of a penalty pursuant to
paragraph (2) and is aggrieved by an order assess-
ing a civil penalty may file a petition for judicial re-
view of the order with the United States Court of
Appeals for the District of Columbia Circuit or for
any other circuit in which the person resides or
transacts business. The petition may only be filed
during the 30-day period beginning on the date of
issuance of the order making the assessment.
‘‘(6) If a person fails to pay an assessment of
a civil penalty—
‘‘(A) after the order making the assess-
ment has become a final order and without fil-
ing a petition for judicial review in accordance
with paragraph (5); or
‘‘(B) after a court has entered a final
judgment in favor of the Secretary,
the Attorney General shall recover the amount as-
sessed (plus interest at currently prevailing rates
718
from the last day of the 30-day period referred to
in paragraph (5) or the date of the final judgment,
as the case may be) in an action brought in an ap-
propriate district court of the United States. In the
action, the validity, amount, and appropriateness of
the penalty shall not be subject to review.
‘‘(d) EFFECTIVE DATE.—
‘‘(1) IN GENERAL.— This section shall take ef-
fect on the date which is 180 days after the date of
enactment of the Improving America’s Schools Act
of 1994, except as provided in paragraph (2).
‘‘(2) COLLECTIVE BARGAINING AGREEMENTS.—
‘‘(A) In the case of a person described in
subsection (a) who employs individuals who are
members of a labor organization and provide el-
ementary or secondary educational services pur-
suant to a collective bargaining agreement
that—
‘‘(i) took effect before the date of en-
actment 
of 
the 
Improving 
America’s
Schools Act of 1994, and
‘‘(ii) includes provisions relating to
smoking privileges that are in violation of
this section;
719
this section shall take effect on the date that is
180 days after the date of enactment of the Im-
proving America’s Schools Act of 1994 or the
date specified in subparagraph (B), whichever
is later.
‘‘(B) The date specified in this subpara-
graph is the earlier of—
‘‘(i) the first expiration date (after the
date of enactment of the Improving Ameri-
ca’s Schools Act of 1994) of the collective
bargaining agreement containing the provi-
sions relating to smoking privileges, or
‘‘(ii) the date that is 1 year after the
date of enactment of the Improving Ameri-
ca’s Schools Act of 1994.
‘‘(e) PREEMPTION.—Nothing in this section shall
preempt or otherwise affect any provision of law of a State
or political subdivision of a State that is as restrictive or
more restrictive than a provision of this section.
‘‘PART F—GUN POSSESSION
‘‘SEC. 9601. POLICY FOR GUN POSSESSION.
‘‘(a) IN GENERAL.—Each local educational agency
which receives assistance under this Act shall have a policy
that addresses student possession and use of a gun on
school property.
720
‘‘(b) POLICY CONTENT.—The content of such policy
may include—
‘‘(1) punishment requirements for possession
and use of a gun on school property, including ex-
pulsion and suspension;
‘‘(2) alternative placement for an individual
who violates the policy;
‘‘(3) educational services for a student expelled
from school for violation of the policy; and
‘‘(4) opportunities for a hearing to address ex-
pulsion or suspension decisions for violation of the
policy.
‘‘SEC. 9602. ETHICAL PRINCIPLES.
‘‘It is the sense of Congress that States, local edu-
cational agencies, and schools should encourage and sup-
port parents and families in teaching children certain ethi-
cal principles. Such principles may include trust-
worthiness, respect, responsibility, fairness, caring and
citizenship.
‘‘PART G–CUSTODIAL SERVICES.
‘‘SEC. 9701. COMPENSATION OF CUSTODIANS.
‘‘Notwithstanding any other provisions of law, a local
educational agency which contains five counties in their
entirety and has a student population which exceeds
900,000 may not use any assistance under this Act to pro-
721
vide compensation or other financial benefits to personnel
who provide janitorial or custodial services to and within
schools.
‘‘PART H—SENSE OF THE CONGRESS TO IN-
CREASE THE TOTAL SHARE OF FEDERAL
SPENDING ON EDUCATION
‘‘(a) The Congress finds that—
‘‘(1) in order to increase our Nation’s standard
of living and to increase the number of good jobs,
the United States must increase its productivity and
ability to compete in the international marketplace
by improving the educational level of our workforce;
‘‘(2) although efforts are being made to estab-
lish higher educational standards and goals, there is
a substantial shortage of resources to meet such
standards and goals;
‘‘(3) States and local communities are finding it
increasingly difficult to meet even higher educational
standards and goals, and States will not be able to
fund needed changes without Federal help to reach
such standards and goals;
‘‘(4) the Federal Government has established
many educational programs but failed to provide
adequate funding for such programs, for example
one such program provides education to our Nation’s
722
disabled students and was established with a prom-
ise of 40 percent Federal funding but currently re-
ceives only 8 percent Federal funding;
‘‘(5) the annual shortfall in Federal education
programs is approximately half of the promised
funding;
‘‘(6) many needed educational improvements
will not need Federal funds, however, other sug-
gested changes such as lengthened school years, bet-
ter pay, after-school activities, mentoring for stu-
dents at risk, programs for gifted students, and re-
placing substandard buildings will require substan-
tial Federal assistance; and
‘‘(7) the Federal contribution to education is
less than 2 percent of the total Federal budget, and
in order to make education a national priority, the
total percentage of Federal educational funding
should be increased by 1 percent each year over the
next 8 years to reach 10 percent of the total Federal
budget.
‘‘(b) It is the sense of the Congress that the total
share of the Federal spending on education should in-
crease by at least 1 percent each year until such share
reaches 10 percent of the total Federal budget.
723
‘‘TITLE X—COORDINATED
SERVICES PROJECTS
‘‘SEC. 10001. FINDINGS AND PURPOSE.
‘‘(a) FINDINGS.—The Congress makes the following
findings:
‘‘(1) Growing numbers of children are nega-
tively affected by influences outside of the classroom
which increase their risk of academic failure.
‘‘(2) Factors such as poor nutrition, unsafe liv-
ing conditions, physical and sexual abuse, family and
gang violence, inadequate health care, unemploy-
ment, lack of child care and substance abuse ad-
versely affect family relationships and the ability of
a child to learn.
‘‘(3) Parents and other caregivers in today’s
high pressure society often face demands which
place restraints on their time and affect their ability
to adequately provide for the needs of their families.
‘‘(4) Access to health and social service pro-
grams can address the basic physical and emotional
needs of children so that they can fully participate
in the learning experiences offered them in school.
‘‘(5) Services for at-risk students need to be
more convenient, less fragmented, regulated and du-
724
plicative in order to meet the needs of children and
their families.
‘‘(6) School personnel, parents, and support
service providers often lack knowledge of, and access
to, available services for at-risk students and their
families in the community, and have few resources
to coordinate services and make them accessible.
‘‘(7) Service providers, such as teachers, social
workers, health care and child care providers, juve-
nile justice workers and others, are often trained in
separate disciplines that provide little support for
the coordination of services.
‘‘(8) Coordination of services is more cost effec-
tive because it substitutes prevention for expensive
crisis intervention.
‘‘(9) Coordinating health and social services
with education can help the Nation meet the Na-
tional Education Goals by ensuring better outcomes
for children.
‘‘(b) PURPOSE OF COORDINATING SERVICES.—The
purpose of this section is to provide elementary and sec-
ondary school students and their families better access to
the social, health and education services necessary for stu-
dents to succeed in school and for their families to take
725
an active role in ensuring that children receive the best
possible education.
‘‘SEC. 10002. DEFINITIONS.
‘‘(a) The term ‘coordinated services project’ refers to
a comprehensive approach to meeting the educational,
health, social service, and other needs of children and their
families, including foster children and their foster families,
through a communitywide partnership that links public
and private agencies providing such services or access to
such services through a coordination site at or near a
school.
‘‘(b) An ‘eligible entity’ is a local educational agency,
individual school, or consortium of schools.
‘‘SEC. 10003. PROJECT DEVELOPMENT AND IMPLEMENTA-
TION.
‘‘(a) PROJECT PLANS.—Eligible entities exercising
their authority under section 9206(b) shall submit to the
Secretary an application for the development of a plan or
a plan for the implementation of a coordinated services
project.
‘‘(b) PROJECT DEVELOPMENT.—The application for
the development of the coordinated services project, which
can last for up to one year, shall—
‘‘(1) demonstrate that an assessment will be
performed of the economic, social, and health bar-
726
riers to educational achievement experienced by chil-
dren and families, including foster children and their
foster families, in the community, and the local,
State, federal, and privately funded services avail-
able to meet such needs;
‘‘(2) identify the measures that will be taken to
establish a communitywide partnership that links
public and private agencies providing services to
children and families; and
‘‘(3) identify any other measures that will be
taken to develop a comprehensive plan for the imple-
mentation of a coordinated services project or
projects.
‘‘(c) PROJECT IMPLEMENTATION.—Eligible entities
shall submit to the Secretary a plan for the implementa-
tion or expansion of a coordinated services project. Such
plan shall include—
‘‘(1) the results of a children and families needs
assessment, which will include an assessment of the
needs of foster children;
‘‘(2) the membership of the coordinated services
project partnership;
‘‘(3) a description of the proposed coordinated
services project, its objectives, where it will be lo-
727
cated, and the staff that will be used to carry out
the purposes of the project;
‘‘(4) a description of how the success of the co-
ordinated services project will be evaluated;
‘‘(5) a description of the training to be provided
to teachers and appropriate personnel;
‘‘(6) information regarding whether or not a
sliding scale fee for services will be employed, and if
not, an explanation of why such scale is not feasible;
and
‘‘(7) when applicable, strategies to ensure that
the health and welfare needs from migratory families
are addressed.
‘‘SEC. 10004. USES OF FUNDS.
‘‘(a) Funds utilized under the authority of section
9206(b) may be used for activities under this title which
include—
‘‘(1) hiring a services coordinator;
‘‘(2) making minor renovations to existing
buildings;
‘‘(3) purchasing basic operating equipment;
‘‘(4) improving communications and informa-
tion-sharing between members of the coordinated
services project partnership;
728
‘‘(5) providing training to teachers and appro-
priate personnel concerning their role in a coordi-
nated services project; and
‘‘(6) conducting the needs assessment required
in section 10003(b)(1);
but shall not include the direct provision of any health
or health-related services.
‘‘(b) Projects operating under the authority of this
title shall comply with the requirements of section
1121(b).
‘‘SEC. 10005. CONTINUING AUTHORITY.
‘‘The Secretary shall not approve the plan of any
project which fails to demonstrate that it is achieving ef-
fective coordination after 2 years of implementation.
‘‘SEC. 10006. FEDERAL AGENCY COORDINATION.
‘‘(a) AGENCY COORDINATION.—The Secretaries of
Education, Health and Human Services, Labor, Housing
and Urban Development, Treasury, and Agriculture, and
the Attorney General shall review the programs adminis-
tered by their agencies to identify barriers to service
coordination.
‘‘(b) REPORT TO CONGRESS.—Such Secretaries and
the Attorney General shall submit jointly a report to the
Congress not later than 2 years after the date of the en-
actment of the Improving America’s Schools Act, based
729
on the review required under paragraph (a) recommending
legislative and regulatory action to address such barriers,
and during this time, shall use waiver authorities author-
ized under this and other Acts.
‘‘TITLE XI—SCHOOL FACILITIES
IMPROVEMENT ACT
‘‘SEC. 11001. FINDINGS.
‘‘The Congress finds the following:
‘‘(1) According to a 1991 survey conducted by
the American Association of School Administrators,
74 percent of all public school buildings in the Unit-
ed States need to be replaced.
‘‘(2) Almost one-third of such buildings were
built prior to World War II.
‘‘(3) It is estimated that 1 of every 4 public
school buildings in the United States is in inad-
equate condition, and of such buildings, 61 percent
need maintenance or major repairs, 43 percent are
obsolete, 42 percent contain environmental hazards,
25 percent are overcrowded, and 13 percent are
structurally unsound.
‘‘(4) Large numbers of local educational agen-
cies have difficulties securing financing for school fa-
cility improvement.
730
‘‘SEC. 11002. PURPOSE.
‘‘The purpose of this Act is the leverage limited Fed-
eral funds to enable local educational agencies to finance
the costs associated with the improvement of school facili-
ties within their jurisdiction.
‘‘SEC. 11003. FEDERAL ASSISTANCE IN THE FORM OF
LOANS.
‘‘(a) AUTHORITY AND CONDITIONS FOR LOANS.—To
assist local educational agencies in the construction, recon-
struction, or renovation of schools, the Secretary may
make loans of funds to such agencies for the construction,
reconstruction, or renovation of such schools. Such assist-
ance shall only be provided—
‘‘(1) to local educational agencies eligible for
grants under section 1124A of part A of title I,
schools located on Indian reservations, or local edu-
cational agencies eligible for payments under section
8004; and
‘‘(2) if the Secretary finds that such construc-
tions will be undertaken in an economical manner,
and that any such construction, reconstruction or
renovation is not or will not be of elaborate or ex-
travagant design or materials.
‘‘(b) PRIORITIES.—In approving loans under this
title, the Secretary shall consider—
731
‘‘(1) the difficulty of the applicant in securing
affordable financing from other sources;
‘‘(2) the threat the condition of the physical
plant poses to the safety and well-being of students;
‘‘(3) the demonstrated need for the construc-
tion, reconstruction, or renovation as based on the
condition of the facility; and
‘‘(4) the age of the facility to be renovated or
replaced.
‘‘(c) AMOUNT AND CONDITIONS OF LOANS.—A loan
to a local educational agency—
‘‘(1) may be in an amount not exceeding the
total development cost of the facility, as determined
by the Secretary;
‘‘(2) shall be secured in such manner and be re-
paid within such period, not exceeding 50 years, as
may be determined by the Secretary; and
‘‘(3) shall bear interest at a rate determined by
the Secretary which shall be the rate of interest paid
by the Secretary on funds obtained from the Sec-
retary of the Treasury minus 1 and one quarter per
cent each year.
‘‘SEC. 11004. GENERAL PROVISIONS.
‘‘(a) BUDGET AND ACCOUNTING.—In the perform-
ance of, and with respect to, the functions, powers, and
732
duties under this part, the Secretary, notwithstanding the
provisions of any other law, shall—
‘‘(1) prepare annually and submit a budget pro-
gram as provided for wholly owned Government cor-
porations by chapter 91 of title 31, United States
Code; and
‘‘(2) maintain a set of accounts which shall be
audited by the Comptroller General in accordance
with the provisions of chapter 35 of title 31, United
States Code, but such financial transactions of the
Secretary, as the making of loans and vouchers ap-
proved by the Secretary, in connection with such fi-
nancial transactions shall be final and conclusive
upon all officers of the Government.
‘‘(b) USE OF FUNDS.—Funds made available to the
Secretary pursuant to the provisions of this part shall be
deposited in a checking account or accounts with the
Treasurer of the United States. Receipts and assets ob-
tained or held by the Secretary in connection with the per-
formance of functions under this part, and all funds avail-
able for carrying out the functions of the Secretary under
this part (including appropriations therefor, which are
hereby authorized), shall be available, in such amounts as
may from year to year be authorized by the Congress, for
733
the administrative expenses of the Secretary in connection
with the performance of such functions.
‘‘(c) LEGAL POWERS.—In the performance of, and
with respect to, the functions, powers, and duties under
this part, the Secretary, notwithstanding the provisions of
any other law, may—
‘‘(1) prescribe such rules and regulations as
may be necessary to carry out the purposes of this
part;
‘‘(2) sue and be sued;
‘‘(3) foreclose on any property or commence any
action to protect or enforce any right conferred upon
the Secretary by any law, contract, or other agree-
ment, and bid for and purchase at any foreclosure
or any other sale any property in connection with
which the Secretary has made a loan pursuant to
this part;
‘‘(4) in the event of any such acquisition, not-
withstanding any other provision of law relating to
the acquisition, handling, or disposal of real property
by the United States, complete, administer, remodel
and convert, dispose of, lease, and otherwise deal
with, such property, but any such acquisition of real
property shall not deprive any State or political sub-
division thereof of its civil or criminal jurisdiction in
734
and over such property or impair the civil rights
under the State or local laws of the inhabitants on
such property;
‘‘(5) sell or exchange at public or private sale,
or lease, real or personal property, and sell or ex-
change any securities or obligations, upon such
terms as the Secretary may fix;
‘‘(6) obtain insurance against loss in connection
with property and other assets held; and
‘‘(7) include in any contract or instrument
made pursuant to this part such other covenants,
conditions, or provisions as may be necessary to as-
sure that the purposes of this part will be achieved.
‘‘(d) CONTRACTS FOR SUPPLIES OR SERVICES.—Sec-
tion 3709 of the Revised Statutes shall not apply to any
contract for services or supplies on account of any prop-
erty acquired pursuant to this part if the amount of such
contract does not exceed $1,000.
‘‘(e) APPLICABILITY OF GOVERNMENT CORPORATION
CONTROL ACT.—The provisions of section 9107(a) of title
31, United States Code, which are applicable to corpora-
tions or agencies subject to chapter 91 of such title, shall
also be applicable to the activities of the Secretary under
this part.
735
‘‘(f) WAGE RATES.—The Secretary shall take such
action as may be necessary to ensure that all laborers and
mechanics employed by contractors or subcontractors on
any project assisted under this part—
‘‘(1) shall be paid wages at rates not less than
those prevailing on the same type of work on similar
construction in the immediate locality as determined
by the Secretary of Labor in accordance with the
Act of March 3, 1931 (Davis-Bacon Act), as amend-
ed; and
‘‘(2) shall be employed not more than 40 hours
in any one week unless the employee receives wages
for the employee’s employment in excess of the
hours specified above at a rate not less than one and
one-half times the regular rate at which the em-
ployee is employed,
but the Secretary may waive the application of this sub-
section in cases or classes of cases where laborers or me-
chanics, not otherwise employed at any time in the con-
struction of such project, voluntarily donate their services
without full compensation for the purpose of lowering the
costs of construction and the Secretary determines that
any amounts saved thereby are fully credited to the edu-
cational institution undertaking the construction.