234 
oping and implementing a teacher evaluation 
system. 
‘‘(2) If applicable, a description of how the local 
educational agency will develop and implement a 
teacher or school leader evaluation system. 
‘‘(3) An assurance that the local educational 
agency will comply with section 6501 (regarding par-
ticipation by private school children and teachers). 
‘‘SEC. 2123. LOCAL USE OF FUNDS. 
‘‘A local educational agency receiving a subgrant 
under this subpart may use such funds for— 
‘‘(1) the development and implementation of a 
teacher evaluation system, administered through 
school leaders based on input from stakeholders listed 
in subparagraph (E), that may— 
‘‘(A) use student achievement data derived 
from a variety of sources as a significant factor 
in determining a teacher’s evaluation, with the 
weight given to such data defined by the local 
educational agency; 
‘‘(B) use multiple measures of evaluation 
for evaluating teachers; 
‘‘(C) have more than 2 categories for rating 
the performance of teachers; 
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‘‘(D) be used to make personnel decisions, as 
determined by the local educational agency; and 
‘‘(E) be based on input from parents, school 
leaders, teachers, and other staff of schools served 
by the local educational agency; 
‘‘(2) in the case of a local educational agency lo-
cated in a State implementing a statewide teacher 
evaluation system, implementing such evaluation sys-
tem; 
‘‘(3) the training of school leaders or other indi-
viduals for the purpose of evaluating teachers or 
school leaders under a teacher or school leader evalua-
tion system, as appropriate; 
‘‘(4) in the case of a local educational agency lo-
cated in a State implementing a statewide school 
leader evaluation system, to implement such evalua-
tion system; 
‘‘(5) in the case of a local educational agency lo-
cated in a State not implementing a statewide school 
leader evaluation system, the development and imple-
mentation of a school leader evaluation system; 
‘‘(6) professional development for teachers and 
school leaders that is evidence-based, job-embedded, 
and continuous, such as— 
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‘‘(A) subject-based professional development 
for teachers, including for teachers of civic edu-
cation, arts education, and computer science and 
other science, technology, engineering, and math-
ematics subjects; 
‘‘(B) professional development aligned with 
the State’s academic standards; 
‘‘(C) professional development to assist 
teachers in meeting the needs of students with 
different learning styles, particularly students 
with disabilities, English learners, and gifted 
and talented students; 
‘‘(D) professional development for teachers 
or school leaders identified as in need of addi-
tional support through data provided by a teach-
er or school leader evaluation system, as appro-
priate; 
‘‘(E) professional development based on the 
current science of learning, which includes re-
search on positive brain change and cognitive 
skill development; 
‘‘(F) professional development for school 
leaders, including evidence-based mentorship 
programs for such leaders; 
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‘‘(G) professional development on inte-
grated, 
interdisciplinary, 
and 
project-based 
teaching strategies, including for career and 
technical education teachers and teachers of com-
puter science and other science, technology, engi-
neering, and mathematics subjects; or 
‘‘(H) professional development on teaching 
dual credit, dual enrollment, Advanced Place-
ment, or International Baccalaureate postsec-
ondary-level courses to secondary school students; 
‘‘(7) partnering with a public or private organi-
zation or a consortium of such organizations to de-
velop and implement a teacher evaluation system de-
scribed in subparagraph (A) or (B) of paragraph (1), 
or to administer professional development, as appro-
priate; 
‘‘(8) any activities authorized under section 
2222(a); or 
‘‘(9) class size reduction, except that the local 
educational agency may use not more than 10 percent 
of such funds for this purpose. 
‘‘Subpart 3—General Provisions 
‘‘SEC. 2131. REPORTING REQUIREMENTS. 
‘‘(a) LOCAL EDUCATIONAL AGENCIES.—Each local 
educational agency receiving a subgrant under subpart 2 
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shall submit to the State educational agency involved, on 
an annual basis until the last year in which the local edu-
cational agency receives such subgrant funds, a report on— 
‘‘(1) how the local educational agency is meeting 
the purposes of this part described in section 2101; 
‘‘(2) how the local educational agency is using 
such subgrant funds; 
‘‘(3) in the case of a local educational agency 
implementing a teacher or school leader evaluation 
system, the results of such evaluation system, except 
that such report shall not reveal personally identifi-
able information about an individual teacher or 
school leader; and 
‘‘(4) any such other information as the State 
educational agency may require, as long as student 
and teacher privacy is maintained. 
‘‘(b) STATE EDUCATIONAL AGENCIES.—Each State 
educational agency receiving a grant under subpart 1 shall 
submit to the Secretary a report, on an annual basis until 
the last year in which the State educational agency receives 
such grant funds, on— 
‘‘(1) how the State educational agency is meeting 
the purposes of this part described in section 2101; 
and 
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‘‘(2) how the State educational agency is using 
such grant funds. 
‘‘SEC. 2132. NATIONAL ACTIVITIES. 
‘‘From the funds reserved by the Secretary under sec-
tion 2111(b)(1)(A), the Secretary shall, directly or through 
grants and contracts— 
‘‘(1) provide technical assistance to States and 
local educational agencies in carrying out activities 
under this part; and 
‘‘(2) acting through the Institute of Education 
Sciences, conduct national evaluations of activities 
carried out by State educational agencies and local 
educational agencies under this part. 
‘‘SEC. 2133. STATE DEFINED. 
‘‘In this part, the term ‘State’ means each of the 50 
States, the District of Columbia, and the Commonwealth 
of Puerto Rico.’’. 
(c) PART B.—Part B of title II (20 U.S.C. 6661 et 
seq.) is amended to read as follows: 
‘‘PART B—TEACHER AND SCHOOL LEADER 
FLEXIBLE GRANT 
‘‘SEC. 2201. PURPOSE. 
‘‘The purpose of this part is to improve student aca-
demic achievement by— 
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‘‘(1) supporting all State educational agencies, 
local educational agencies, schools, teachers, and 
school leaders to pursue innovative and evidence-based 
practices to help all students meet the State’s aca-
demic standards; and 
‘‘(2) increasing the number of teachers and 
school leaders who are effective in increasing student 
academic achievement. 
‘‘Subpart 1—Formula Grants to States 
‘‘SEC. 2211. STATE ALLOTMENTS. 
‘‘(a) RESERVATIONS.—From the amount appropriated 
under section 3(b) for any fiscal year, the Secretary— 
‘‘(1) shall reserve 25 percent to award grants to 
States under this subpart; and 
‘‘(2) of the amount reserved under paragraph 
(1), shall reserve— 
‘‘(A) not more than 1 percent for national 
activities described in section 2233; 
‘‘(B) one-half of 1 percent for allotments to 
outlying areas on the basis of their relative need, 
as determined by the Secretary, in accordance 
with the purpose of this part; and 
‘‘(C) one-half of 1 percent for the Secretary 
of the Interior for programs under this part in 
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schools operated or funded by the Bureau of In-
dian Education. 
‘‘(b) STATE ALLOTMENTS.— 
‘‘(1) IN GENERAL.—From the total amount re-
served under subsection (a)(1) for each fiscal year and 
not reserved under subparagraphs (A) through (C) of 
subsection (a)(2), the Secretary shall allot, and make 
available in accordance with this section, to each 
State an amount that bears the same ratio to such 
sums as the school-age population of the State bears 
to the school-age population of all States. 
‘‘(2) SMALL STATE MINIMUM.—No State receiv-
ing an allotment under paragraph (1) may receive 
less than one-half of 1 percent of the total amount al-
lotted under such paragraph. 
‘‘(3) REALLOTMENT.—If a State does not receive 
an allotment under this subpart for a fiscal year, the 
Secretary shall reallot the amount of the State’s allot-
ment to the remaining States in accordance with this 
section. 
‘‘(c) STATE APPLICATION.—In order to receive an al-
lotment under this section for any fiscal year, a State shall 
submit an application to the Secretary, at such time and 
in such manner as the Secretary may reasonably require. 
Such application shall— 
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‘‘(1) designate the State educational agency as 
the agency responsible for the administration and su-
pervision of programs assisted under this part; 
‘‘(2) describe how the State educational agency 
will use funds received under this section for State 
level activities described in subsection (d)(3); 
‘‘(3) describe the procedures and criteria the 
State educational agency will use for reviewing appli-
cations and awarding subgrants in a timely manner 
to eligible entities under section 2221 on a competi-
tive basis; 
‘‘(4) describe how the State educational agency 
will ensure that subgrants made under section 2221 
are of sufficient size and scope to support effective 
programs that will help increase academic achieve-
ment in the classroom and are consistent with the 
purposes of this part; 
‘‘(5) describe the steps the State educational 
agency will take to ensure that eligible entities use 
subgrants received under section 2221 to carry out 
programs that implement effective strategies, includ-
ing by providing ongoing technical assistance and 
training, and disseminating evidence-based and other 
effective strategies to such eligible entities; 
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‘‘(6) describe how programs under this part will 
be coordinated with other programs under this Act; 
and 
‘‘(7) include an assurance that, other than pro-
viding technical and advisory assistance and moni-
toring compliance with this part, the State edu-
cational agency has not exercised, and will not exer-
cise, any influence in the decisionmaking processes of 
eligible entities as to the expenditure of funds made 
pursuant to an application submitted under section 
2221(b). 
‘‘(d) STATE USE OF FUNDS.— 
‘‘(1) IN GENERAL.—Each State that receives an 
allotment under this section shall reserve not less than 
92 percent of the amount allotted to such State under 
subsection (b), for each fiscal year, for subgrants to el-
igible entities under subpart 2. 
‘‘(2) STATE
ADMINISTRATION.—A State edu-
cational agency may reserve not more than 1 percent 
of the amount made available to the State under sub-
section (b) for the administrative costs of carrying out 
such State educational agency’s responsibilities under 
this subpart. 
‘‘(3) STATE-LEVEL ACTIVITIES.— 
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‘‘(A) INNOVATIVE
TEACHER
AND
SCHOOL 
LEADER ACTIVITIES.—A State educational agen-
cy shall reserve not more than 4 percent of the 
amount made available to the State under sub-
section (b) to carry out, solely, or in partnership 
with State agencies of higher education, 1 or 
more of the following activities: 
‘‘(i) Reforming teacher and school lead-
er certification, recertification, licensing, 
and tenure systems to ensure that such sys-
tems are rigorous and that— 
‘‘(I) each teacher has the subject 
matter knowledge and teaching skills 
necessary to help students meet the 
State’s academic standards; and 
‘‘(II) school leaders have the in-
structional leadership skills to help 
teachers instruct and students learn. 
‘‘(ii) Improving the quality of teacher 
preparation programs within the State, in-
cluding through the use of appropriate stu-
dent achievement data and other factors to 
evaluate the quality of teacher preparation 
programs within the State. 
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‘‘(iii) Carrying out programs that es-
tablish, expand, or improve alternative 
routes for State certification or licensure of 
teachers and school leaders, including such 
programs for— 
‘‘(I) mid-career professionals from 
other occupations, including computer 
science and other science, technology, 
engineering, and math fields; 
‘‘(II) former military personnel; 
and 
‘‘(III) recent graduates of an in-
stitution of higher education, with a 
record of academic distinction, who 
demonstrate the potential to become ef-
fective teachers or school leaders. 
‘‘(iv) Developing, or assisting eligible 
entities in developing— 
‘‘(I) performance-based pay sys-
tems for teachers and school leaders; 
‘‘(II) strategies that provide dif-
ferential, incentive, or bonus pay for 
teachers and school leaders; or 
‘‘(III) teacher and school leader 
advancement initiatives that promote 
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professional growth and emphasize 
multiple career paths and pay differen-
tiation. 
‘‘(v) Developing, or assisting eligible 
entities in developing, new, evidence-based 
teacher and school leader induction and 
mentoring programs that are designed to— 
‘‘(I) improve instruction and stu-
dent academic achievement; and 
‘‘(II) increase the retention of ef-
fective teachers and school leaders. 
‘‘(vi) Providing professional develop-
ment for teachers and school leaders that is 
focused on improving teaching and student 
academic achievement, including for stu-
dents with different learning styles, particu-
larly students with disabilities, English 
learners, gifted and talented students, and 
other special populations. 
‘‘(vii) Providing training and tech-
nical assistance to eligible entities that re-
ceive a subgrant under section 2221. 
‘‘(viii) Other activities identified by 
the State educational agency that meet the 
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purposes of this part, including those activi-
ties authorized under subparagraph (B). 
‘‘(B) TEACHER OR SCHOOL LEADER PREPA-
RATION ACADEMIES.— 
‘‘(i) IN GENERAL.—In the case of a 
State in which teacher or school leader 
preparation academies are allowable under 
State law, a State educational agency may 
reserve not more than 3 percent of the 
amount made available to the State under 
subsection (b) to support the establishment 
or expansion of one or more teacher or 
school leader preparation academies and, 
subject to the limitation under clause (iii), 
to support State authorizers for such acad-
emies. 
‘‘(ii) 
MATCHING
REQUIREMENT.—A 
State educational agency shall not provide 
funds under this subparagraph to support 
the establishment or expansion of a teacher 
or school leader preparation academy unless 
the academy agrees to provide, either di-
rectly or through private contributions, non- 
Federal matching funds equal to not less 
than 10 percent of the amount of the funds 
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the academy will receive under this sub-
paragraph. 
‘‘(iii) FUNDING FOR STATE AUTHOR-
IZERS.—Not more than 5 percent of funds 
provided to a teacher or school leader prepa-
ration academy under this subparagraph 
may be used to support activities of State 
authorizers for such academy. 
‘‘SEC. 2212. APPROVAL AND DISAPPROVAL OF STATE APPLI-
CATIONS. 
‘‘(a) DEEMED APPROVAL.—An application submitted 
by a State pursuant to section 2211(c) shall be deemed to 
be approved by the Secretary unless the Secretary makes 
a written determination, prior to the expiration of the 120- 
day period beginning on the date on which the Secretary 
received the application, that the application is not in com-
pliance with section 2211(c). 
‘‘(b) DISAPPROVAL PROCESS.— 
‘‘(1) IN GENERAL.—The Secretary shall not fi-
nally disapprove an application submitted under sec-
tion 2211(c), except after giving the State educational 
agency notice and an opportunity for a hearing. 
‘‘(2) NOTIFICATION.—If the Secretary finds that 
an application is not in compliance, in whole or in 
part, with section 2211(c) the Secretary shall— 
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‘‘(A) give the State educational agency no-
tice and an opportunity for a hearing; and 
‘‘(B) notify the State educational agency of 
the finding of noncompliance and, in such notifi-
cation, shall— 
‘‘(i) cite the specific provisions in the 
application that are not in compliance; and 
‘‘(ii) request additional information, 
only as to the noncompliant provisions, 
needed to make the application compliant. 
‘‘(3) RESPONSE.—If a State educational agency 
responds to a notification from the Secretary under 
paragraph (2)(B) during the 45-day period beginning 
on the date on which the State educational agency re-
ceived the notification, and resubmits the application 
with the requested information described in para-
graph (2)(B)(ii), the Secretary shall approve or dis-
approve such application prior to the later of— 
‘‘(A) the expiration of the 45-day period be-
ginning on the date on which the application is 
resubmitted; or 
‘‘(B) the expiration of the 120-day period 
described in subsection (a). 
‘‘(4) FAILURE TO RESPOND.—If the State edu-
cational agency does not respond to a notification 
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from the Secretary under paragraph (2)(B) during 
the 45-day period beginning on the date on which the 
State educational agency received the notification, 
such application shall be deemed to be disapproved. 
‘‘Subpart 2—Local Competitive Grant Program 
‘‘SEC. 2221. LOCAL COMPETITIVE GRANT PROGRAM. 
‘‘(a) IN GENERAL.—A State that receives an allotment 
under section 2211(b) for a fiscal year shall use the amount 
reserved under section 2211(d)(1) to award subgrants, on 
a competitive basis, to eligible entities in accordance with 
this section to enable such entities to carry out the programs 
and activities described in section 2222. 
‘‘(b) APPLICATION.— 
‘‘(1) IN GENERAL.—To be eligible to receive a 
subgrant under this section, an eligible entity shall 
submit an application to the State educational agen-
cy at such time, in such manner, and including such 
information as the State educational agency may rea-
sonably require. 
‘‘(2) CONTENTS.—Each application submitted 
under paragraph (1) shall include— 
‘‘(A) a description of the programs and ac-
tivities to be funded and how they are consistent 
with the purposes of this part; and 
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‘‘(B) an assurance that the eligible entity 
will comply with section 6501 (regarding par-
ticipation by private school children and teach-
ers). 
‘‘(c) PEER REVIEW.—In reviewing applications under 
this section, a State educational agency shall use a peer 
review process or other methods of assuring the quality of 
such applications but the review shall only judge the likeli-
hood of the activity to increase student academic achieve-
ment. The reviewers shall not make a determination based 
on the policy of the proposed activity. 
‘‘(d) GEOGRAPHIC DIVERSITY.—A State educational 
agency shall distribute funds under this section equitably 
among geographic areas within the State, including rural, 
suburban, and urban communities. 
‘‘(e) DURATION
OF AWARDS.—A State educational 
agency may award subgrants under this section for a period 
of not more than 5 years. 
‘‘(f) MATCHING.—An eligible entity receiving a 
subgrant under this section shall provide, either directly or 
through private contributions, non-Federal matching funds 
equal to not less than 10 percent of the amount of the 
subgrant. 
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‘‘SEC. 2222. LOCAL AUTHORIZED ACTIVITIES. 
‘‘(a) IN GENERAL.—Each eligible entity receiving a 
subgrant under section 2221 shall use such subgrant funds 
to develop, implement, and evaluate comprehensive pro-
grams and activities, that are in accordance with the pur-
pose of this part and— 
‘‘(1) are consistent with the principles of effec-
tiveness described in subsection (b); and 
‘‘(2) may include, among other programs and 
activities— 
‘‘(A) developing and implementing initia-
tives to assist in recruiting, hiring, and retain-
ing highly effective teachers and school leaders, 
including initiatives that provide— 
‘‘(i) differential, incentive, or bonus 
pay for teachers and school leaders; 
‘‘(ii) performance-based pay systems 
for teachers and school leaders; 
‘‘(iii) teacher and school leader ad-
vancement initiatives that promote profes-
sional growth and emphasize multiple ca-
reer paths and pay differentiation; 
‘‘(iv) new teacher and school leader in-
duction and mentoring programs that are 
designed to improve instruction, student 
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academic achievement, and to increase 
teacher and school leader retention; and 
‘‘(v) teacher residency programs, and 
school leader residency programs, designed 
to develop and support new teachers or new 
school leaders, respectively; 
‘‘(B) supporting the establishment or expan-
sion of teacher or school leader preparation acad-
emies under section 2211(d)(3)(B); 
‘‘(C) recruiting qualified individuals from 
other fields, including individuals from computer 
science and other science, technology, engineer-
ing, and math fields, mid-career professionals 
from other occupations, and former military per-
sonnel; 
‘‘(D) establishing, improving, or expanding 
model instructional programs to ensure that all 
children meet the State’s academic standards; 
‘‘(E) providing evidence-based, job embed-
ded, continuous professional development for 
teachers and school leaders focused on improving 
teaching and student academic achievement; 
‘‘(F) implementing programs based on the 
current science of learning, which includes re-
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search on positive brain change and cognitive 
skill development; 
‘‘(G) recruiting and training teachers to 
teach dual credit, dual enrollment, Advanced 
Placement, or International Baccalaureate post-
secondary-level courses to secondary school stu-
dents; and 
‘‘(H) other activities and programs identi-
fied as necessary by the local educational agency 
that meet the purpose of this part. 
‘‘(b) PRINCIPLES
OF EFFECTIVENESS.—For a pro-
gram or activity developed pursuant to this section to meet 
the principles of effectiveness, such program or activity 
shall— 
‘‘(1) be based upon an assessment of objective 
data regarding the need for programs and activities 
in the elementary schools and secondary schools served 
to increase the number of teachers and school leaders 
who are effective in improving student academic 
achievement; 
‘‘(2) reflect evidence-based research, or in the ab-
sence of a strong research base, reflect effective strate-
gies in the field, that provide evidence that the pro-
gram or activity will improve student academic 
achievement; and 
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‘‘(3) include meaningful and ongoing consulta-
tion with, and input from, teachers, school leaders, 
and parents, in the development of the application 
and administration of the program or activity. 
‘‘Subpart 3—General Provisions 
‘‘SEC. 2231. PERIODIC EVALUATION. 
‘‘(a) IN GENERAL.—Each eligible entity and each 
teacher or school leader preparation academy that receives 
funds under this part shall undergo a periodic evaluation 
by the State educational agency involved to assess such enti-
ty’s or such academy’s progress toward achieving the pur-
poses of this part. 
‘‘(b) USE OF RESULTS.—The results of an evaluation 
described in subsection (a) of an eligible entity or academy 
shall be— 
‘‘(1) used to refine, improve, and strengthen such 
eligible entity or such academy, respectively; and 
‘‘(2) made available to the public upon request, 
with public notice of such availability provided. 
‘‘SEC. 2232. REPORTING REQUIREMENTS. 
‘‘(a) ELIGIBLE ENTITIES AND ACADEMIES.—Each eli-
gible entity and each teacher or school leader preparation 
academy that receives funds from a State educational agen-
cy under this part shall prepare and submit annually to 
such State educational agency a report that includes— 
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‘‘(1) a description of the progress of the eligible 
entity or teacher or school leader preparation acad-
emy, respectively, in meeting the purposes of this 
part; 
‘‘(2) a description of the programs and activities 
conducted by the eligible entity or teacher or school 
leader preparation academy, respectively, with funds 
received under this part; 
‘‘(3) how the eligible entity or teacher or school 
leader preparation academy, respectively, is using 
such funds; and 
‘‘(4) any such other information as the State 
educational agency may reasonably require. 
‘‘(b) STATE EDUCATIONAL AGENCIES.—Each State 
educational agency that receives a grant under this part 
shall prepare and submit, annually, to the Secretary a re-
port that includes— 
‘‘(1) a description of the programs and activities 
conducted by the State educational agency with grant 
funds received under this part; 
‘‘(2) a description of the progress of the State 
educational agency in meeting the purposes of this 
part described in section 2201; 
‘‘(3) how the State educational agency is using 
grant funds received under this part; 
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‘‘(4) the methods and criteria the State edu-
cational agency used to award subgrants in a timely 
manner to eligible entities under section 2221 and, if 
applicable, funds in a timely manner to teacher or 
school leader academies under section 2211(d)(3)(B); 
and 
‘‘(5) the results of the periodic evaluations con-
ducted under section 2231. 
‘‘SEC. 2233. NATIONAL ACTIVITIES. 
‘‘From the funds reserved by the Secretary under sec-
tion 2211(a)(2)(A), the Secretary shall, directly or through 
grants and contracts— 
‘‘(1) provide technical assistance to States and 
eligible entities in carrying out activities under this 
part; and 
‘‘(2) acting through the Institute of Education 
Sciences, conduct national evaluations of activities 
carried out by States and eligible entities under this 
part. 
‘‘SEC. 2234. DEFINITIONS. 
‘‘In this part: 
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means— 
‘‘(A) a local educational agency or consor-
tium of local educational agencies; 
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‘‘(B) an institution of higher education or 
consortium of such institutions in partnership 
with a local educational agency or consortium of 
local educational agencies; 
‘‘(C) a for-profit organization, a nonprofit 
organization, or a consortium of for-profit or 
nonprofit organizations in partnership with a 
local educational agency or consortium of local 
educational agencies; or 
‘‘(D) a consortium of the entities described 
in subparagraphs (B) and (C). 
‘‘(2) STATE.—The term ‘State’ means each of the 
50 States, the District of Columbia, and the Common-
wealth of Puerto Rico. 
‘‘(3) STATE AUTHORIZER.—The term ‘State au-
thorizer’ means an entity designated by the Governor 
of a State to authorize teacher or school leader prepa-
ration academies within the State that— 
‘‘(A) enters into an agreement with a teach-
er or school leader preparation academy that— 
‘‘(i) specifies the goals expected of the 
academy, which, at a minimum, include the 
goals described in paragraph (4); and 
‘‘(ii) does not reauthorize the academy 
if such goals are not met; and 
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‘‘(B) may be a nonprofit organization, a 
State educational agency, or other public entity, 
or consortium of such entities (including a con-
sortium of State educational agencies). 
‘‘(4) TEACHER OR SCHOOL LEADER PREPARA-
TION ACADEMY.—The term ‘teacher or school leader 
preparation academy’ means a public or private enti-
ty, or a nonprofit or for-profit organization, which 
may be an institution of higher education or an orga-
nization affiliated with an institution of higher edu-
cation, that will prepare teachers or school leaders to 
serve in schools, and that— 
‘‘(A) enters into an agreement with a State 
authorizer that specifies the goals expected of the 
academy, including— 
‘‘(i) a requirement that prospective 
teachers or school leaders who are enrolled 
in a teacher or school leader preparation 
academy receive a significant part of their 
training through clinical preparation that 
partners the prospective candidate with an 
effective teacher or school leader, respec-
tively, with a demonstrated record of in-
creasing or producing high student achieve-
ment, while also receiving concurrent in-
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struction from the academy in the content 
area (or areas) in which the prospective 
teacher or school leader will become certified 
or licensed; 
‘‘(ii) the number of effective teachers or 
school leaders, respectively, who will dem-
onstrate success in increasing or producing 
high student achievement that the academy 
will produce; and 
‘‘(iii) a requirement that a teacher or 
school leader preparation academy will only 
award a certificate of completion after the 
graduate demonstrates that the graduate is 
an effective teacher or school leader, respec-
tively, with a demonstrated record of in-
creasing or producing high student achieve-
ment, except that an academy may award 
a provisional certificate for the period nec-
essary to allow the graduate to demonstrate 
such effectiveness; 
‘‘(B) does not have restrictions on the meth-
ods the academy will use to train prospective 
teacher or school leader candidates, including— 
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‘‘(i) obligating (or prohibiting) the 
academy’s faculty to hold advanced degrees 
or conduct academic research; 
‘‘(ii) restrictions related to the acad-
emy’s physical infrastructure; 
‘‘(iii) restrictions related to the number 
of course credits required as part of the pro-
gram of study; 
‘‘(iv) restrictions related to the under-
graduate coursework completed by teachers 
teaching or working on alternative certifi-
cates, licenses, or credentials, as long as 
such teachers have successfully passed all 
relevant State-approved content area exami-
nations; or 
‘‘(v) restrictions related to obtaining 
accreditation from an accrediting body for 
purposes of becoming an academy; 
‘‘(C) limits admission to its program to 
prospective teacher or school leader candidates 
who demonstrate strong potential to improve stu-
dent achievement, based on a rigorous selection 
process that reviews a candidate’s prior aca-
demic achievement or record of professional ac-
complishment; and 
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‘‘(D) results in a certificate of completion 
that the State may recognize as at least the 
equivalent of a master’s degree in education for 
the purposes of hiring, retention, compensation, 
and promotion in the State. 
‘‘(5) TEACHER RESIDENCY PROGRAM.—The term 
‘teacher residency program’ means a school-based 
teacher preparation program in which a prospective 
teacher— 
‘‘(A) for one academic year, teaches along-
side an effective teacher, as determined by a 
teacher evaluation system implemented under 
part A, who is the teacher of record; 
‘‘(B) receives concurrent instruction during 
the year described in subparagraph (A) from the 
partner institution (as defined in section 200 of 
the Higher Education Act of 1965 (20 U.S.C. 
1021)), which courses may be taught by local 
educational agency personnel or residency pro-
gram faculty, in the teaching of the content area 
in which the teacher will become certified or li-
censed; and 
‘‘(C) acquires effective teaching skills.’’. 
(d) PART C.—Part C of title II (20 U.S.C. 6671 et 
seq.) is amended— 
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(1) by striking subparts 1 through 4; 
(2) by striking the heading relating to subpart 5; 
(3) by striking sections 2361 and 2368; 
(4) in section 2362, by striking ‘‘principals’’ and 
inserting ‘‘school leaders’’; 
(5) in section 2363(6)(A), by striking ‘‘prin-
cipal’’ and inserting ‘‘school leader’’; 
(6) in section 2366(b), by striking ‘‘ate law’’ and 
inserting ‘‘(3) A State law’’; 
(7) by redesignating section 2362 as section 
2361; 
(8) by redesignating sections 2364 through 2367 
as sections 2362 through 2365, respectively; and 
(9) by redesignating section 2363 as section 2366 
and transferring such section to appear after section 
2365 (as so redesignated). 
(e) PART D.—Part D of title II (20 U.S.C. 6751 et 
seq.) is amended to read as follows: 
‘‘PART D—GENERAL PROVISIONS 
‘‘SEC. 2401. INCLUSION OF CHARTER SCHOOLS. 
‘‘In this title, the term ‘local educational agency’ in-
cludes a charter school (as defined in section 6101) that, 
in the absence of this section, would not have received funds 
under this title. 
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‘‘SEC. 2402. PARENTS’ RIGHT TO KNOW. 
‘‘At the beginning of each school year, a local edu-
cational agency that receives funds under this title shall no-
tify the parents of each student attending any school receiv-
ing funds under this title that the parents may request, and 
the agency will provide the parents on request (and in a 
timely manner), information regarding the professional 
qualifications of the student’s classroom teachers. 
‘‘SEC. 2403. SUPPLEMENT, NOT SUPPLANT. 
‘‘Funds received under this title shall be used to sup-
plement, and not supplant, non-Federal funds that would 
otherwise be used for activities authorized under this title.’’. 
SEC. 202. CONFORMING REPEALS. 
(a) CONFORMING REPEALS.—Title II of the Higher 
Education Act of 1965 (20 U.S.C. 1021 et seq.) is amended 
by repealing sections 201 through 204. 
(b) EFFECTIVE DATE.—The repeals made by sub-
section (a) shall take effect October 1, 2015. 
TITLE III—PARENTAL ENGAGE-
MENT 
AND 
LOCAL 
FLEXI-
BILITY 
SEC. 301. PARENTAL ENGAGEMENT AND LOCAL FLEXI-
BILITY. 
Title III (20 U.S.C. 6801 et seq.) is amended to read 
as follows: 
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‘‘TITLE III—PARENTAL ENGAGE-
MENT 
AND 
LOCAL 
FLEXI-
BILITY 
‘‘PART A—PARENTAL ENGAGEMENT 
‘‘Subpart 1—Charter School Program 
‘‘SEC. 3101. PURPOSE. 
‘‘It is the purpose of this subpart to— 
‘‘(1) improve the United States education system 
and education opportunities for all Americans by 
supporting innovation in public education in public 
school settings that prepare students to compete and 
contribute to the global economy and a stronger 
America; 
‘‘(2) provide financial assistance for the plan-
ning, program design, and initial implementation of 
charter schools; 
‘‘(3) expand the number of high-quality charter 
schools available to students across the Nation; 
‘‘(4) evaluate the impact of such schools on stu-
dent achievement, families, and communities, and 
share best practices between charter schools and other 
public schools; 
‘‘(5) encourage States to provide support to char-
ter schools for facilities financing in an amount more 
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nearly commensurate to the amount the States have 
typically provided for traditional public schools; 
‘‘(6) improve student services to increase oppor-
tunities for students with disabilities, English learn-
ers, and other traditionally underserved students to 
attend charter schools and meet challenging State 
academic achievement standards; 
‘‘(7) support efforts to strengthen the charter 
school authorizing process to improve performance 
management, including transparency, oversight, mon-
itoring, and evaluation of such schools; and 
‘‘(8) support quality accountability and trans-
parency in the operational performance of all author-
ized public chartering agencies, which include State 
educational agencies, local educational agencies, and 
other authorizing entities. 
‘‘SEC. 3102. PROGRAM AUTHORIZED. 
‘‘(a) IN GENERAL.—This subpart authorizes the Sec-
retary to carry out a charter school program that supports 
charter schools that serve elementary school and secondary 
school students by— 
‘‘(1) supporting the startup of charter schools, 
and the replication and expansion of high-quality 
charter schools; 
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‘‘(2) assisting charter schools in accessing credit 
to acquire and renovate facilities for school use; and 
‘‘(3) carrying out national activities to sup-
port— 
‘‘(A) charter school development; 
‘‘(B) the dissemination of best practices of 
charter schools for all schools; 
‘‘(C) the evaluation of the impact of the pro-
gram on schools participating in the program; 
and 
‘‘(D) stronger charter school authorizing. 
‘‘(b) FUNDING ALLOTMENT.—From the amount made 
available under section 3(c)(1)(A) for a fiscal year, the Sec-
retary shall— 
‘‘(1) reserve 12.5 percent to support charter 
school facilities assistance under section 3104; 
‘‘(2) reserve not more than 10 percent to carry 
out national activities under section 3105; and 
‘‘(3) use the remaining amount after the Sec-
retary reserves funds under paragraphs (1) and (2) to 
carry out section 3103. 
‘‘(c) PRIOR GRANTS AND SUBGRANTS.—The recipient 
of a grant or subgrant under this subpart or subpart 2, 
as such subpart was in effect on the day before the date 
of the enactment of the Student Success Act, shall continue 
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to receive funds in accordance with the terms and condi-
tions of such grant or subgrant. 
‘‘(d) GAO REPORT.—Not later than 3 years after the 
date of the enactment of the Student Success Act, the Comp-
troller General of the United States shall submit a report 
to the Secretary and Congress that— 
‘‘(1) examines whether the funds authorized to be 
reserved by State entities for administrative costs 
under section 3103(b)(1)(C) is appropriate; and 
‘‘(2) if such reservation of funds is determined 
not to be appropriate, makes recommendations on the 
appropriate reservation of funding for such adminis-
trative costs. 
‘‘SEC. 3103. GRANTS TO SUPPORT HIGH-QUALITY CHARTER 
SCHOOLS. 
‘‘(a) IN GENERAL.—From the amount reserved under 
section 3102(b)(3), the Secretary shall award grants to 
State entities having applications approved pursuant to 
subsection (f) to enable such entities to— 
‘‘(1) award subgrants to eligible applicants for 
opening and preparing to operate— 
‘‘(A) new charter schools; 
‘‘(B) replicated, high-quality charter school 
models; or 
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‘‘(C) expanded, high-quality charter schools; 
and 
‘‘(2) provide technical assistance to eligible ap-
plicants and authorized public chartering agencies in 
carrying out the activities described in paragraph (1) 
and work with authorized public chartering agencies 
in the State to improve authorizing quality. 
‘‘(b) STATE USES OF FUNDS.— 
‘‘(1) IN GENERAL.—A State entity receiving a 
grant under this section shall— 
‘‘(A) use not less than 90 percent of the 
grant funds to award subgrants to eligible appli-
cants, in accordance with the quality charter 
school program described in the State entity’s 
application approved pursuant to subsection (f), 
for the purposes described in subparagraphs (A) 
through (C) of subsection (a)(1); 
‘‘(B) reserve not less than 7 percent of such 
funds to carry out the activities described in sub-
section (a)(2); and 
‘‘(C) reserve not more than 3 percent of such 
funds for administrative costs which may in-
clude technical assistance. 
‘‘(2) CONTRACTS AND GRANTS.—A State entity 
may use a grant received under this section to carry 
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out the activities described in subparagraphs (A) and 
(B) of paragraph (1) directly or through grants, con-
tracts, or cooperative agreements. 
‘‘(3) RULE OF CONSTRUCTION.—Nothing in this 
Act shall prohibit the Secretary from awarding grants 
to States that use a weighted lottery to give slightly 
better chances for admission to all, or a subset of, edu-
cationally disadvantaged students if— 
‘‘(A) the use of weighted lotteries in favor of 
such students is not prohibited by State law, and 
such State law is consistent with laws described 
in section 6101(3)(G); and 
‘‘(B) such weighted lotteries are not used for 
the purpose of creating schools exclusively to 
serve a particular subset of students. 
‘‘(c) PROGRAM PERIODS; PEER REVIEW; GRANT NUM-
BER AND AMOUNT; DIVERSITY OF PROJECTS; WAIVERS.— 
‘‘(1) PROGRAM PERIODS.— 
‘‘(A) GRANTS.—A grant awarded by the 
Secretary to a State entity under this section 
shall be for a period of not more than 5 years. 
‘‘(B) SUBGRANTS.—A subgrant awarded by 
a State entity under this section shall be for a 
period of not more than 5 years, of which an eli-
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gible applicant may use not more than 18 
months for planning and program design. 
‘‘(2) PEER REVIEW.—The Secretary, and each 
State entity receiving a grant under this section, shall 
use a peer review process to review applications for 
assistance under this section. 
‘‘(3) GRANT AWARDS.—The Secretary shall— 
‘‘(A) for each fiscal year for which funds are 
appropriated under section 3(c)(1)(A)— 
‘‘(i) award not less than 3 grants 
under this section; 
‘‘(ii) wholly fund each grant awarded 
under this section, without making continu-
ation awards; and 
‘‘(iii) fully obligate the funds appro-
priated for the purpose of awarding grants 
under this section in the fiscal year for 
which such grants are awarded; and 
‘‘(B) prior to the start of the final year of 
the grant period of each grant awarded under 
this section to a State entity, review whether the 
State entity is using the grant funds for the 
agreed upon uses of funds and whether the full 
amount of the grant will be needed for the re-
mainder of the grant period and may, as deter-
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mined necessary based on that review, terminate 
or reduce the amount of the grant and reallocate 
the remaining grant funds to other State entities 
during the succeeding grant competition under 
this section. 
‘‘(4) DIVERSITY OF PROJECTS.—Each State enti-
ty receiving a grant under this section shall award 
subgrants under this section in a manner that, to the 
extent possible, ensures that such subgrants— 
‘‘(A) are distributed throughout different 
areas, including urban, suburban, and rural 
areas; and 
‘‘(B) will assist charter schools representing 
a variety of educational approaches. 
‘‘(5) WAIVERS.—The Secretary may waive any 
statutory or regulatory requirement over which the 
Secretary exercises administrative authority, except 
for any such requirement relating to the elements of 
a charter school described in section 6101(3), if— 
‘‘(A) the waiver is requested in an approved 
application under this section; and 
‘‘(B) the Secretary determines that granting 
such a waiver will promote the purposes of this 
subpart. 
‘‘(d) LIMITATIONS.— 
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‘‘(1) GRANTS.—The Secretary shall not award a 
grant to a State entity under this section in a case 
in which such award would result in more than 1 
grant awarded under this section being carried out in 
a State at the same time. 
‘‘(2) SUBGRANTS.—An eligible applicant may 
not receive more than 1 subgrant under this section 
per individual charter school for a 5-year period, un-
less the eligible applicant demonstrates to the State 
entity not less than 3 years of improved educational 
results in the areas described in subparagraphs (A) 
and (D) of section 3110(7) for students enrolled in 
such charter school. 
‘‘(e) APPLICATIONS.—A State entity desiring to receive 
a grant under this section shall submit an application to 
the Secretary at such time and in such manner as the Sec-
retary may require. The application shall include the fol-
lowing: 
‘‘(1) DESCRIPTION OF PROGRAM.—A description 
of the State entity’s objectives under this section and 
how the objectives of the State entity’s quality charter 
school program will be carried out, including a de-
scription— 
‘‘(A) of how the State entity— 
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‘‘(i) will support the opening of new 
charter 
schools, 
replicated, 
high-quality 
charter school models, or expanded, high- 
quality charter schools, and a description of 
the proposed number of each type of charter 
school or model, if applicable, to be opened 
under the State entity’s program; 
‘‘(ii) 
will 
inform 
eligible 
charter 
schools, developers, and authorized public 
chartering agencies of the availability of 
funds under the program; 
‘‘(iii) will work with eligible appli-
cants to ensure that the eligible applicants 
access all Federal funds that they are eligi-
ble to receive, and help the charter schools 
supported by the applicants and the stu-
dents attending the charter schools— 
‘‘(I) participate in the Federal 
programs in which the schools and stu-
dents are eligible to participate; 
‘‘(II) receive the commensurate 
share of Federal funds the schools and 
students are eligible to receive under 
such programs; and 
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‘‘(III) meet the needs of students 
served under such programs, including 
students with disabilities and English 
learners; 
‘‘(iv) will have clear plans and proce-
dures to assist students enrolled in a charter 
school that closes or loses its charter to at-
tend other high-quality schools; 
‘‘(v) in the case in which the State en-
tity is not a State educational agency— 
‘‘(I) will work with the State edu-
cational agency and the charter schools 
in the State to maximize charter school 
participation in Federal and State 
programs for charter schools; and 
‘‘(II) will work with the State 
educational agency to adequately oper-
ate the State entity’s program under 
this section, where applicable; 
‘‘(vi) will ensure each eligible appli-
cant that receives a subgrant under the 
State entity’s program to open and prepare 
to operate a new charter school, a rep-
licated, high-quality charter school model, 
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or 
an 
expanded, 
high-quality 
charter 
school— 
‘‘(I) will ensure such school or 
model meets the requirements under 
section 6101(3); and 
‘‘(II) is prepared to continue to 
operate such school or model, in a 
manner consistent with the eligible ap-
plicant’s 
application, 
after 
the 
subgrant funds have expired; 
‘‘(vii) will support charter schools in 
local educational agencies with large num-
bers of schools identified by the State for 
improvement, including supporting the use 
of charter schools to improve, or in turning 
around, struggling schools; 
‘‘(viii) will work with charter schools 
to promote inclusion of all students, includ-
ing eliminating any barriers to enrollment 
for foster youth or unaccompanied homeless 
youth, and support all students once they 
are enrolled to promote retention including 
through the use of fair disciplinary practice; 
‘‘(ix) will work with charter schools on 
recruitment practices, including efforts to 
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engage groups that may otherwise have lim-
ited opportunities to participate in charter 
schools, and to ensure such schools do not 
have in effect policies or procedures that 
may create barriers to enrollment of stu-
dents, including educationally disadvan-
taged students, and are in compliance with 
all Federal and State laws on enrollment 
practices; 
‘‘(x) will share best and promising 
practices between charter schools and other 
public schools, including, where appro-
priate, instruction and professional develop-
ment in science, technology, engineering, 
and math education, including computer 
science, and other subjects; 
‘‘(xi) will ensure the charter schools re-
ceiving funds under the State entity’s pro-
gram meet the educational needs of their 
students, including students with disabil-
ities and English learners; 
‘‘(xii) will support efforts to increase 
quality initiatives, including meeting the 
quality authorizing elements described in 
paragraph (2)(E); 
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‘‘(xiii) in the case of a State entity not 
described in clause (xiv), will provide over-
sight of authorizing activity, including how 
the State will help ensure better author-
izing, such as by establishing authorizing 
standards that may include approving, ac-
tively monitoring, and re-approving or re-
voking the authority of an authorized public 
chartering agency based on the performance 
of the charter schools authorized by such 
agency in the areas of student achievement, 
student safety, financial and operational 
management, and compliance with all ap-
plicable statutes and regulations; 
‘‘(xiv) in the case of a State entity de-
fined in subsection (i)(4), will work with 
the State to support the State’s system of 
assistance and oversight of authorized pub-
lic chartering agencies for authorizing ac-
tivity described in clause (xiii); and 
‘‘(xv) will work with eligible appli-
cants receiving a subgrant under the State 
entity’s program to support the opening of 
charter schools or charter school models de-
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scribed in clause (i) that are secondary 
schools; 
‘‘(B) of the extent to which the State enti-
ty— 
‘‘(i) is able to meet and carry out the 
priorities listed in subsection (f)(2); and 
‘‘(ii) is working to develop or strength-
en a cohesive statewide system to support 
the opening of new charter schools, rep-
licated, high-quality charter school models, 
or expanded, high-quality charter schools; 
‘‘(C) of how the State entity will carry out 
the subgrant competition, including— 
‘‘(i) a description of the application 
each eligible applicant desiring to receive a 
subgrant will submit, including— 
‘‘(I) a description of the roles and 
responsibilities of the eligible appli-
cant, partner organizations, and man-
agement organizations, including the 
administrative and contractual roles 
and responsibilities; 
‘‘(II) a description of the quality 
controls agreed to between the eligible 
applicant and the authorized public 
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chartering agency involved, such as a 
contract or performance agreement, 
how a school’s performance in the 
State’s academic accountability system 
will be one of the most important fac-
tors for renewal or revocation of the 
school’s charter, and how the State en-
tity and the authorized public char-
tering agency involved will reserve the 
right to revoke or not renew a school’s 
charter based on financial, structural, 
or operational factors involving the 
management of the school; 
‘‘(III) a description of how the eli-
gible applicant will solicit and con-
sider input from parents and other 
members of the community on the im-
plementation and operation of each 
charter school that will receive funds 
under the State entity’s program; and 
‘‘(IV) a description of the planned 
activities and expenditures for the 
subgrant funds for purposes of opening 
and preparing to operate a new char-
ter school, a replicated, high-quality 
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charter school model, or an expanded, 
high-quality charter school, and how 
the school or model will maintain fi-
nancial sustainability after the end of 
the subgrant period; and 
‘‘(ii) a description of how the State en-
tity will review applications; 
‘‘(D) in the case of a State entity that part-
ners with an outside organization to carry out 
the State entity’s quality charter school program, 
in whole or in part, of the roles and responsibil-
ities of this partner; 
‘‘(E) of how the State entity will help the 
charter schools receiving funds under the State 
entity’s program consider the transportation 
needs of the schools’ students; and 
‘‘(F) of how the State entity will support 
diverse charter school models, including models 
that serve rural communities. 
‘‘(2) ASSURANCES.—Assurances, including a de-
scription of how the assurances will be met, that— 
‘‘(A) each charter school receiving funds 
under the State entity’s program will have a 
high degree of autonomy over budget and oper-
ations; 
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‘‘(B) the State entity will support charter 
schools in meeting the educational needs of their 
students as described in paragraph (1)(A)(xi); 
‘‘(C) the State entity will ensure that the 
authorized public chartering agency of any char-
ter school that receives funds under the State en-
tity’s program— 
‘‘(i) adequately monitors each such 
charter school in recruiting, enrolling, and 
meeting the needs of all students, including 
students with disabilities and English 
learners; and 
‘‘(ii) ensures that each such charter 
school solicits and considers input from 
parents and other members of the commu-
nity on the implementation and operation 
of the school; 
‘‘(D) the State entity will provide adequate 
technical assistance to eligible applicants to— 
‘‘(i) meet the objectives described in 
clauses (viii) and (ix) of paragraph (1)(A) 
and subparagraph (B) of this paragraph; 
and 
‘‘(ii) recruit, enroll, and retain tradi-
tionally underserved students, including 
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students with disabilities and English 
learners, at rates similar to traditional 
public schools; 
‘‘(E) the State entity will promote quality 
authorizing, such as through providing technical 
assistance and supporting all authorized public 
chartering agencies in the State to improve the 
oversight of their charter schools, including by— 
‘‘(i) assessing annual performance data 
of the schools, including, as appropriate, 
graduation rates, student academic growth, 
and rates of student attrition; 
‘‘(ii) 
reviewing 
the 
schools’ 
inde-
pendent, annual audits of financial state-
ments conducted in accordance with gen-
erally accepted accounting principles, and 
ensuring any such audits are publically re-
ported; and 
‘‘(iii) holding charter schools account-
able to the academic, financial, and oper-
ational quality controls agreed to between 
the charter school and the authorized public 
chartering agency involved, such as through 
renewal, non-renewal, or revocation of the 
school’s charter; 
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‘‘(F) the State entity will work to ensure 
that charter schools are included with the tradi-
tional public schools in decisionmaking about the 
public school system in the State; and 
‘‘(G) The State entity will ensure that each 
charter school receiving funds under the State 
entity’s program makes publicly available, con-
sistent with the dissemination requirements of 
the annual State report card, information to 
help parents make informed decisions about the 
education options available to their children, in-
cluding information for each school on— 
‘‘(i) the educational program; 
‘‘(ii) student support services; 
‘‘(iii) annual performance and enroll-
ment data, disaggregated by the groups of 
students 
described 
in 
section 
1111(b)(3)(B)(ii)(II), 
except 
that 
such 
disaggregation shall not be required in a 
case in which the number of students in a 
group is insufficient to yield statistically re-
liable information or the results would re-
veal personally identifiable information 
about an individual student; and 
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‘‘(iv) any other information the State 
requires all other public schools to report for 
purposes of section 1111(h)(1)(D). 
‘‘(3) REQUESTS FOR WAIVERS.—A request and 
justification for waivers of any Federal statutory or 
regulatory provisions that the State entity believes are 
necessary for the successful operation of the charter 
schools that will receive funds under the State entity’s 
program under this section or, in the case of a State 
entity defined in subsection (i)(4), a description of 
how the State entity will work with the State to re-
quest such necessary waivers, where applicable, and a 
description of any State or local rules, generally ap-
plicable to public schools, that will be waived, or oth-
erwise not apply to such schools. 
‘‘(f) SELECTION CRITERIA; PRIORITY.— 
‘‘(1) SELECTION CRITERIA.—The Secretary shall 
award grants to State entities under this section on 
the basis of the quality of the applications submitted 
under subsection (e), after taking into consider-
ation— 
‘‘(A) the degree of flexibility afforded by the 
State’s public charter school law and how the 
State entity will work to maximize the flexibility 
provided to charter schools under the law; 
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‘‘(B) the ambitiousness of the State entity’s 
objectives for the quality charter school program 
carried out under this section; 
‘‘(C) the quality of the strategy for assessing 
achievement of those objectives; 
‘‘(D) the likelihood that the eligible appli-
cants receiving subgrants under the program will 
meet those objectives and improve educational re-
sults for students; 
‘‘(E) the State entity’s plan to— 
‘‘(i) adequately monitor the eligible ap-
plicants receiving subgrants under the State 
entity’s program; 
‘‘(ii) work with the authorized public 
chartering agencies involved to avoid dupli-
cation of work for the charter schools and 
authorized public chartering agencies; and 
‘‘(iii) provide adequate technical as-
sistance and support for— 
‘‘(I) the charter schools receiving 
funds under the State entity’s pro-
gram; and 
‘‘(II) quality authorizing efforts 
in the State; and 
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‘‘(F) the State entity’s plan to solicit and 
consider input from parents and other members 
of the community on the implementation and op-
eration of the charter schools in the State. 
‘‘(2) PRIORITY.—In awarding grants under this 
section, the Secretary shall give priority to State enti-
ties to the extent that they meet the following criteria: 
‘‘(A) The State entity is located in a 
State— 
‘‘(i) that allows at least one entity that 
is not a local educational agency to be an 
authorized public chartering agency for de-
velopers seeking to open a charter school in 
the State; or 
‘‘(ii) in which local educational agen-
cies are the only authorized public char-
tering agencies and that has an appeals 
process for the denial of an application for 
a charter school; 
‘‘(B) The State entity is located in a State 
that does not impose any limitation on the num-
ber or percentage of charter schools that may 
exist or the number or percentage of students 
that may attend charter schools in the State. 
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‘‘(C) The State entity is located in a State 
that ensures equitable financing, as compared to 
traditional public schools, for charter schools and 
students in a prompt manner. 
‘‘(D) The State entity is located in a State 
that uses best practices from charter schools to 
help improve struggling schools and local edu-
cational agencies. 
‘‘(E) The State entity partners with an or-
ganization that has a demonstrated record of 
success in developing management organizations 
to support the development of charter schools in 
the State. 
‘‘(F) The State entity supports charter 
schools that support at-risk students through ac-
tivities such as dropout prevention, dropout re-
covery, or comprehensive career counseling prac-
tices. 
‘‘(G) The State entity authorizes all charter 
schools in the State to serve as school food au-
thorities. 
‘‘(H) The State entity has taken steps to en-
sure that all authorizing public chartering agen-
cies implement best practices for charter school 
authorizing. 
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‘‘(I) The State entity is able to demonstrate 
that its State provides charter schools one or 
more of the following: 
‘‘(i) Funding for facilities. 
‘‘(ii) Assistance with the acquisition of 
facilities. 
‘‘(iii) Access to public facilities. 
‘‘(iv) The right of first refusal to pur-
chase public school buildings. 
‘‘(v) Low or no cost leasing privileges. 
‘‘(g) LOCAL USES OF FUNDS.—An eligible applicant 
receiving a subgrant under this section shall use such funds 
to carry out activities related to opening and preparing to 
operate a new charter school, a replicated, high-quality 
charter school model, or an expanded, high-quality charter 
school, such as— 
‘‘(1) preparing teachers and school leaders, in-
cluding through professional development; 
‘‘(2) acquiring equipment, educational materials, 
and supplies; and 
‘‘(3) carrying out necessary renovations and 
minor facilities repairs (excluding construction). 
‘‘(h) REPORTING REQUIREMENTS.—Each State entity 
receiving a grant under this section shall submit to the Sec-
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retary, at the end of the third year of the 5-year grant pe-
riod and at the end of such grant period, a report on— 
‘‘(1) the number of students served by each 
subgrant awarded under this section and, if applica-
ble, how many new students were served during each 
year of the subgrant period; 
‘‘(2) the progress the State entity made toward 
meeting the priorities described in subsection (f)(2), 
as applicable; 
‘‘(3) how the State entity met the objectives of the 
quality charter school program described in the State 
entity’s application under subsection (e), including 
how the State entity met the objective of sharing best 
and promising practices described in subsection 
(e)(1)(A)(x) in areas such as instruction, professional 
development, curricula development, and operations 
between charter schools and other public schools, and 
the extent to which, if known, such practices were 
adopted and implemented by such other public 
schools; 
‘‘(4) how the State entity complied with, and en-
sured that eligible applicants complied with, the as-
surances described in the State entity’s application; 
‘‘(5) how the State entity worked with authorized 
public chartering agencies, including how the agencies 
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worked with the management company or leadership 
of the schools that received subgrants under this sec-
tion; 
‘‘(6) the number of subgrants awarded under this 
section to carry out each of the following: 
‘‘(A) the opening of new charter schools; 
‘‘(B) the opening of replicated, high-quality 
charter school models; and 
‘‘(C) the opening of expanded, high-quality 
charter schools; and 
‘‘(7) how the State entity has worked with char-
ter schools receiving funds under the State entity’s 
program to foster community involvement in the 
planning for and opening of such schools. 
‘‘(i) STATE ENTITY DEFINED.—For purposes of this 
section, the term ‘State entity’ means— 
‘‘(1) a State educational agency; 
‘‘(2) a State charter school board; 
‘‘(3) a Governor of a State; or 
‘‘(4) a charter school support organization. 
‘‘SEC. 3104. FACILITIES FINANCING ASSISTANCE. 
‘‘(a) GRANTS TO ELIGIBLE ENTITIES.— 
‘‘(1) IN GENERAL.—From the amount reserved 
under section 3102(b)(1), the Secretary shall not use 
less than 50 percent to award grants to eligible enti-
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ties that have the highest-quality applications ap-
proved under subsection (d), after considering the di-
versity of such applications, to demonstrate innova-
tive methods of assisting charter schools to address the 
cost of acquiring, constructing, and renovating facili-
ties by enhancing the availability of loans or bond fi-
nancing. 
‘‘(2) ELIGIBLE ENTITY DEFINED.—For purposes 
of this section, the term ‘eligible entity’ means— 
‘‘(A) a public entity, such as a State or 
local governmental entity; 
‘‘(B) a private nonprofit entity; or 
‘‘(C) a consortium of entities described in 
subparagraphs (A) and (B). 
‘‘(b) GRANTEE
SELECTION.—The Secretary shall 
evaluate each application submitted under subsection (d), 
and shall determine whether the application is sufficient 
to merit approval. 
‘‘(c) GRANT CHARACTERISTICS.—Grants under sub-
section (a) shall be of a sufficient size, scope, and quality 
so as to ensure an effective demonstration of an innovative 
means of enhancing credit for the financing of charter 
school acquisition, construction, or renovation. 
‘‘(d) APPLICATIONS.— 
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‘‘(1) IN
GENERAL.—To receive a grant under 
subsection (a), an eligible entity shall submit to the 
Secretary an application in such form as the Sec-
retary may reasonably require. 
‘‘(2) 
CONTENTS.—An 
application 
submitted 
under paragraph (1) shall contain— 
‘‘(A) a statement identifying the activities 
proposed to be undertaken with funds received 
under subsection (a), including how the eligible 
entity will determine which charter schools will 
receive assistance, and how much and what types 
of assistance charter schools will receive; 
‘‘(B) a description of the involvement of 
charter schools in the application’s development 
and the design of the proposed activities; 
‘‘(C) a description of the eligible entity’s ex-
pertise in capital market financing; 
‘‘(D) a description of how the proposed ac-
tivities will leverage the maximum amount of 
private-sector financing capital relative to the 
amount of public funding used and otherwise en-
hance credit available to charter schools, includ-
ing how the eligible entity will offer a combina-
tion of rates and terms more favorable than the 
rates and terms that a charter school could re-
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ceive without assistance from the eligible entity 
under subsection (a); 
‘‘(E) a description of how the eligible entity 
possesses sufficient expertise in education to 
evaluate the likelihood of success of a charter 
school program for which facilities financing is 
sought; and 
‘‘(F) in the case of an application submitted 
by a State governmental entity, a description of 
the actions that the entity has taken, or will 
take, to ensure that charter schools within the 
State receive the funding the charter schools need 
to have adequate facilities. 
‘‘(e) CHARTER SCHOOL OBJECTIVES.—An eligible en-
tity receiving a grant under subsection (a) shall use the 
funds deposited in the reserve account established under 
subsection (f) to assist one or more charter schools to access 
private sector capital to accomplish one or more of the fol-
lowing objectives: 
‘‘(1) The acquisition (by purchase, lease, dona-
tion, or otherwise) of an interest (including an inter-
est held by a third party for the benefit of a charter 
school) in improved or unimproved real property that 
is necessary to commence or continue the operation of 
a charter school. 
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‘‘(2) The construction of new facilities, or the 
renovation, repair, or alteration of existing facilities, 
necessary to commence or continue the operation of a 
charter school. 
‘‘(3) The predevelopment costs required to assess 
sites for purposes of paragraph (1) or (2) and which 
are necessary to commence or continue the operation 
of a charter school. 
‘‘(f) RESERVE ACCOUNT.— 
‘‘(1) USE OF FUNDS.—To assist charter schools 
to accomplish the objectives described in subsection 
(e), an eligible entity receiving a grant under sub-
section (a) shall, in accordance with State and local 
law, directly or indirectly, alone or in collaboration 
with others, deposit the funds received under sub-
section (a) (other than funds used for administrative 
costs in accordance with subsection (g)) in a reserve 
account established and maintained by the eligible en-
tity for this purpose. Amounts deposited in such ac-
count shall be used by the eligible entity for one or 
more of the following purposes: 
‘‘(A) Guaranteeing, insuring, and rein-
suring bonds, notes, evidences of debt, loans, and 
interests therein, the proceeds of which are used 
for an objective described in subsection (e). 
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‘‘(B) Guaranteeing and insuring leases of 
personal and real property for an objective de-
scribed in subsection (e). 
‘‘(C) Facilitating financing by identifying 
potential lending sources, encouraging private 
lending, and other similar activities that directly 
promote lending to, or for the benefit of, charter 
schools. 
‘‘(D) Facilitating the issuance of bonds by 
charter schools, or by other public entities for the 
benefit of charter schools, by providing technical, 
administrative, and other appropriate assistance 
(including the recruitment of bond counsel, un-
derwriters, and potential investors and the con-
solidation of multiple charter school projects 
within a single bond issue). 
‘‘(2) INVESTMENT.—Funds received under sub-
section (a) and deposited in the reserve account estab-
lished under paragraph (1) shall be invested in obli-
gations issued or guaranteed by the United States or 
a State, or in other similarly low-risk securities. 
‘‘(3) REINVESTMENT OF EARNINGS.—Any earn-
ings on funds received under subsection (a) shall be 
deposited in the reserve account established under 
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paragraph (1) and used in accordance with such 
paragraph. 
‘‘(g) LIMITATION ON ADMINISTRATIVE COSTS.—An eli-
gible entity may use not more than 2.5 percent of the funds 
received under subsection (a) for the administrative costs 
of carrying out its responsibilities under this section (ex-
cluding subsection (k)). 
‘‘(h) AUDITS AND REPORTS.— 
‘‘(1) FINANCIAL
RECORD
MAINTENANCE
AND 
AUDIT.—The financial records of each eligible entity 
receiving a grant under subsection (a) shall be main-
tained in accordance with generally accepted account-
ing principles and shall be subject to an annual audit 
by an independent public accountant. 
‘‘(2) REPORTS.— 
‘‘(A) GRANTEE ANNUAL REPORTS.—Each el-
igible entity receiving a grant under subsection 
(a) annually shall submit to the Secretary a re-
port of its operations and activities under this 
section (excluding subsection (k)). 
‘‘(B) CONTENTS.—Each annual report sub-
mitted under subparagraph (A) shall include— 
‘‘(i) a copy of the most recent financial 
statements, and any accompanying opinion 
on such statements, prepared by the inde-
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pendent public accountant reviewing the fi-
nancial records of the eligible entity; 
‘‘(ii) a copy of any report made on an 
audit of the financial records of the eligible 
entity that was conducted under paragraph 
(1) during the reporting period; 
‘‘(iii) an evaluation by the eligible en-
tity of the effectiveness of its use of the Fed-
eral funds provided under subsection (a) in 
leveraging private funds; 
‘‘(iv) a listing and description of the 
charter schools served during the reporting 
period, including the amount of funds used 
by each school, the type of project facilitated 
by the grant, and the type of assistance pro-
vided to the charter schools; 
‘‘(v) a description of the activities car-
ried out by the eligible entity to assist char-
ter schools in meeting the objectives set forth 
in subsection (e); and 
‘‘(vi) a description of the characteris-
tics of lenders and other financial institu-
tions participating in the activities under-
taken by the eligible entity under this sec-
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tion (excluding subsection (k)) during the 
reporting period. 
‘‘(C) 
SECRETARIAL
REPORT.—The 
Sec-
retary shall review the reports submitted under 
subparagraph (A) and shall provide a com-
prehensive annual report to Congress on the ac-
tivities conducted under this section (excluding 
subsection (k)). 
‘‘(i) NO FULL FAITH AND CREDIT FOR GRANTEE OB-
LIGATION.—No financial obligation of an eligible entity en-
tered into pursuant to this section (such as an obligation 
under a guarantee, bond, note, evidence of debt, or loan) 
shall be an obligation of, or guaranteed in any respect by, 
the United States. The full faith and credit of the United 
States is not pledged to the payment of funds which may 
be required to be paid under any obligation made by an 
eligible entity pursuant to any provision of this section. 
‘‘(j) RECOVERY OF FUNDS.— 
‘‘(1) IN GENERAL.—The Secretary, in accordance 
with chapter 37 of title 31, United States Code, shall 
collect— 
‘‘(A) all of the funds in a reserve account es-
tablished by an eligible entity under subsection 
(f)(1) if the Secretary determines, not earlier 
than 2 years after the date on which the eligible 
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entity first received funds under subsection (a), 
that the eligible entity has failed to make sub-
stantial progress in carrying out the purposes 
described in subsection (f)(1); or 
‘‘(B) all or a portion of the funds in a re-
serve account established by an eligible entity 
under subsection (f)(1) if the Secretary deter-
mines that the eligible entity has permanently 
ceased to use all or a portion of the funds in 
such account to accomplish any purpose de-
scribed in subsection (f)(1). 
‘‘(2) EXERCISE OF AUTHORITY.—The Secretary 
shall not exercise the authority provided in paragraph 
(1) to collect from any eligible entity any funds that 
are being properly used to achieve one or more of the 
purposes described in subsection (f)(1). 
‘‘(3) PROCEDURES.—The provisions of sections 
451, 452, and 458 of the General Education Provi-
sions Act (20 U.S.C. 124, 1234a, 1234g) shall apply 
to the recovery of funds under paragraph (1). 
‘‘(4) CONSTRUCTION.—This subsection shall not 
be construed to impair or affect the authority of the 
Secretary to recover funds under part D of the Gen-
eral Education Provisions Act (20 U.S.C. 1234 et 
seq.). 
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‘‘(k) PER-PUPIL FACILITIES AID PROGRAM.— 
‘‘(1) DEFINITION OF PER-PUPIL FACILITIES AID 
PROGRAM.—In this subsection, the term ‘per-pupil fa-
cilities aid program’ means a program in which a 
State makes payments, on a per-pupil basis, to char-
ter schools to provide the schools with financing— 
‘‘(A) that is dedicated solely for funding 
charter school facilities; or 
‘‘(B) a portion of which is dedicated for 
funding charter school facilities. 
‘‘(2) GRANTS.— 
‘‘(A) IN
GENERAL.—From the amount 
under section 3102(b)(1) remaining after the 
Secretary makes grants under subsection (a), the 
Secretary shall make grants, on a competitive 
basis, to States to pay for the Federal share of 
the cost of establishing or enhancing, and admin-
istering per-pupil facilities aid programs. 
‘‘(B) PERIOD.—The Secretary shall award 
grants under this subsection for periods of not 
more than 5 years. 
‘‘(C) FEDERAL SHARE.—The Federal share 
of the cost described in subparagraph (A) for a 
per-pupil facilities aid program shall be not 
more than— 
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‘‘(i) 90 percent of the cost, for the first 
fiscal year for which the program receives 
assistance under this subsection; 
‘‘(ii) 80 percent in the second such 
year; 
‘‘(iii) 60 percent in the third such 
year; 
‘‘(iv) 40 percent in the fourth such 
year; and 
‘‘(v) 20 percent in the fifth such year. 
‘‘(D) STATE SHARE.—A State receiving a 
grant under this subsection may partner with 1 
or more organizations to provide up to 50 per-
cent of the State share of the cost of establishing 
or enhancing, and administering the per-pupil 
facilities aid program. 
‘‘(E) MULTIPLE GRANTS.—A State may re-
ceive more than 1 grant under this subsection, so 
long as the amount of such funds provided to 
charter schools increases with each successive 
grant. 
‘‘(3) USE OF FUNDS.— 
‘‘(A) IN GENERAL.—A State that receives a 
grant under this subsection shall use the funds 
made available through the grant to establish or 
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enhance, and administer, a per-pupil facilities 
aid program for charter schools in the State of 
the applicant. 
‘‘(B) EVALUATIONS; 
TECHNICAL
ASSIST-
ANCE; DISSEMINATION.—From the amount made 
available to a State through a grant under this 
subsection for a fiscal year, the State may re-
serve not more than 5 percent to carry out eval-
uations, to provide technical assistance, and to 
disseminate information. 
‘‘(C) SUPPLEMENT, NOT SUPPLANT.—Funds 
made available under this subsection shall be 
used to supplement, and not supplant, State and 
local public funds expended to provide per pupil 
facilities aid programs, operations financing 
programs, or other programs, for charter schools. 
‘‘(4) REQUIREMENTS.— 
‘‘(A) VOLUNTARY PARTICIPATION.—No State 
may be required to participate in a program 
carried out under this subsection. 
‘‘(B) STATE LAW.— 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), to be eligible to receive a 
grant under this subsection, a State shall 
establish or enhance, and administer, a per- 
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pupil facilities aid program for charter 
schools in the State, that— 
‘‘(I) is specified in State law; and 
‘‘(II) provides annual financing, 
on a per-pupil basis, for charter school 
facilities. 
‘‘(ii) 
SPECIAL
RULE.—Notwith-
standing clause (i), a State that is required 
under State law to provide its charter 
schools with access to adequate facility 
space, but which does not have a per-pupil 
facilities aid program for charter schools 
specified in State law, may be eligible to re-
ceive a grant under this subsection if the 
State agrees to use the funds to develop a 
per-pupil facilities aid program consistent 
with the requirements of this subsection. 
‘‘(5) APPLICATIONS.—To be eligible to receive a 
grant under this subsection, a State shall submit an 
application to the Secretary at such time, in such 
manner, and containing such information as the Sec-
retary may require. 
‘‘SEC. 3105. NATIONAL ACTIVITIES. 
‘‘(a) IN GENERAL.—Of the amount reserved under sec-
tion 3102(b)(2), the Secretary shall— 
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‘‘(1) use not less than 75 percent of such amount 
to award grants in accordance with subsection (b); 
and 
‘‘(2) use not more than 25 percent of such 
amount to— 
‘‘(A) provide technical assistance to State 
entities in awarding subgrants under section 
3103, and eligible entities and States receiving 
grants under section 3104; 
‘‘(B) disseminate best practices; and 
‘‘(C) evaluate the impact of the charter 
school program, including the impact on student 
achievement, carried out under this subpart. 
‘‘(b) GRANTS.— 
‘‘(1) IN
GENERAL.—The Secretary shall make 
grants, on a competitive basis, to eligible applicants 
for the purpose of carrying out the activities described 
in section 3102(a)(1), subparagraphs (A) through (C) 
of section 3103(a)(1), and section 3103(g). 
‘‘(2) TERMS AND CONDITIONS.—Except as other-
wise provided in this subsection, grants awarded 
under this subsection shall have the same terms and 
conditions as grants awarded to State entities under 
section 3103. 
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‘‘(3) CHARTER MANAGEMENT ORGANIZATIONS.— 
The Secretary shall— 
‘‘(A) of the amount described in subsection 
(a)(1), use not less than 75 percent to make 
grants, on a competitive basis, to eligible appli-
cants described in paragraph (4)(B); and 
‘‘(B) notwithstanding paragraphs (1)(A) 
and (2) of section 3103(f)— 
‘‘(i) award grants to eligible appli-
cants on the basis of the quality of the ap-
plications submitted under this subsection; 
and 
‘‘(ii) in awarding grants to eligible ap-
plicants described in paragraph (4)(B) of 
this subsection, take into consideration 
whether such an eligible applicant— 
‘‘(I) demonstrates a high propor-
tion of high-quality charter schools 
within the network of the eligible ap-
plicant; 
‘‘(II) demonstrates success in serv-
ing students who are educationally dis-
advantaged; 
‘‘(III) does not have a significant 
proportion of charter schools that have 
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been closed, had their charter revoked 
for compliance issues, or had their af-
filiation with such eligible applicant 
revoked; 
‘‘(IV) has sufficient procedures in 
effect to ensure timely closure of low- 
performing or financially mismanaged 
charter schools and clear plans and 
procedures in effect for the students in 
such schools to attend other high-qual-
ity schools; and 
‘‘(V) 
demonstrates 
success 
in 
working with schools identified for im-
provement by the State. 
‘‘(4) ELIGIBLE APPLICANT DEFINED.—For pur-
poses of this subsection, the term ‘eligible applicant’ 
means an eligible applicant (as defined in section 
3110) that— 
‘‘(A) desires to open a charter school in— 
‘‘(i) a State that did not apply for a 
grant under section 3103; or 
‘‘(ii) a State that did not receive a 
grant under section 3103; or 
‘‘(B) is a charter management organization. 
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‘‘(c) CONTRACTS AND GRANTS.—The Secretary may 
carry out any of the activities described in this section di-
rectly or through grants, contracts, or cooperative agree-
ments. 
‘‘SEC. 3106. FEDERAL FORMULA ALLOCATION DURING 
FIRST YEAR AND FOR SUCCESSIVE ENROLL-
MENT EXPANSIONS. 
‘‘(a) IN GENERAL.—For purposes of the allocation to 
schools by the States or their agencies of funds under part 
A of title I, and any other Federal funds which the Sec-
retary allocates to States on a formula basis, the Secretary 
and each State educational agency shall take such measures 
as are necessary to ensure that every charter school receives 
the Federal funding for which the charter school is eligible 
not later than 5 months after the charter school first opens, 
notwithstanding the fact that the identity and characteris-
tics of the students enrolling in that charter school are not 
fully and completely determined until that charter school 
actually opens. The measures similarly shall ensure that 
every charter school expanding its enrollment in any subse-
quent year of operation receives the Federal funding for 
which the charter school is eligible not later than 5 months 
after such expansion. 
‘‘(b) ADJUSTMENT AND LATE OPENINGS.— 
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‘‘(1) IN GENERAL.—The measures described in 
subsection (a) shall include provision for appropriate 
adjustments, through recovery of funds or reduction of 
payments for the succeeding year, in cases where pay-
ments made to a charter school on the basis of esti-
mated or projected enrollment data exceed the 
amounts that the school is eligible to receive on the 
basis of actual or final enrollment data. 
‘‘(2) RULE.—For charter schools that first open 
after November 1 of any academic year, the State, in 
accordance with guidance provided by the Secretary 
and applicable Federal statutes and regulations, shall 
ensure that such charter schools that are eligible for 
the funds described in subsection (a) for such aca-
demic year have a full and fair opportunity to receive 
those funds during the charter schools’ first year of 
operation. 
‘‘SEC. 3107. SOLICITATION OF INPUT FROM CHARTER 
SCHOOL OPERATORS. 
‘‘To the extent practicable, the Secretary shall ensure 
that administrators, teachers, and other individuals di-
rectly involved in the operation of charter schools are con-
sulted in the development of any rules or regulations re-
quired to implement this subpart, as well as in the develop-
ment of any rules or regulations relevant to charter schools 
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that are required to implement part A of title I, the Individ-
uals with Disabilities Education Act, or any other program 
administered by the Secretary that provides education 
funds to charter schools or regulates the activities of charter 
schools. 
‘‘SEC. 3108. RECORDS TRANSFER. 
‘‘State educational agencies and local educational 
agencies, as quickly as possible and to the extent prac-
ticable, shall ensure that a student’s records and, if applica-
ble, a student’s individualized education program as de-
fined in section 602(14) of the Individuals with Disabilities 
Education Act, are transferred to a charter school upon the 
transfer of the student to the charter school, and to another 
public school upon the transfer of the student from a charter 
school to another public school, in accordance with applica-
ble State law. 
‘‘SEC. 3109. PAPERWORK REDUCTION. 
‘‘To the extent practicable, the Secretary and each au-
thorized public chartering agency shall ensure that imple-
mentation of this subpart results in a minimum of paper-
work for any eligible applicant or charter school. 
‘‘SEC. 3110. DEFINITIONS. 
‘‘In this subpart: 
‘‘(1) CHARTER MANAGEMENT ORGANIZATION.— 
The term ‘charter management organization’ means a 
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nonprofit organization that manages a network of 
charter schools linked by centralized support, oper-
ations, and oversight. 
‘‘(2) CHARTER
SCHOOL
SUPPORT
ORGANIZA-
TION.—The term ‘charter school support organization’ 
means a nonprofit, nongovernmental entity that is 
not an authorized public chartering agency, which 
provides on a statewide basis— 
‘‘(A) assistance to developers during the 
planning, program design, and initial imple-
mentation of a charter school; and 
‘‘(B) technical assistance to charter schools 
to operate such schools. 
‘‘(3) DEVELOPER.—The term ‘developer’ means 
an individual or group of individuals (including a 
public or private nonprofit organization), which may 
include teachers, administrators and other school 
staff, parents, or other members of the local commu-
nity in which a charter school project will be carried 
out. 
‘‘(4) ELIGIBLE APPLICANT.—The term ‘eligible 
applicant’ means a developer that has— 
‘‘(A) applied to an authorized public char-
tering authority to operate a charter school; and 
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‘‘(B) provided adequate and timely notice to 
that authority. 
‘‘(5) AUTHORIZED PUBLIC CHARTERING AGEN-
CY.—The term ‘authorized public chartering agency’ 
means a State educational agency, local educational 
agency, or other public entity that has the authority 
pursuant to State law and approved by the Secretary 
to authorize or approve a charter school. 
‘‘(6) 
EXPANDED, 
HIGH-QUALITY
CHARTER 
SCHOOL.—The term ‘expanded, high-quality charter 
school’ means a high-quality charter school that has 
either significantly increased its enrollment or added 
one or more grades to its school. 
‘‘(7) HIGH-QUALITY
CHARTER
SCHOOL.—The 
term ‘high-quality charter school’ means a charter 
school that— 
‘‘(A) shows evidence of strong academic re-
sults, which may include strong academic growth 
as determined by a State; 
‘‘(B) has no significant issues in the areas 
of student safety, operational and financial man-
agement, or statutory or regulatory compliance; 
‘‘(C) has demonstrated success in signifi-
cantly increasing student academic achievement, 
including graduation rates where applicable, 
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consistent with the requirements under title I, for 
all students served by the charter school; and 
‘‘(D) has demonstrated success in increasing 
student academic achievement, including grad-
uation rates where applicable, for the groups of 
students 
described 
in 
section 
1111(b)(3)(B)(ii)(II), except that such dem-
onstration is not required in a case in which the 
number of students in a group is insufficient to 
yield statistically reliable information or the re-
sults would reveal personally identifiable infor-
mation about an individual student. 
‘‘(8) 
REPLICATED, 
HIGH-QUALITY
CHARTER 
SCHOOL MODEL.—The term ‘replicated, high-quality 
charter school model’ means a high-quality charter 
school that has opened a new campus under an exist-
ing charter or an additional charter if required or 
permitted by State law. 
‘‘Subpart 2—Magnet School Assistance 
‘‘SEC. 3121. PURPOSE. 
‘‘The purpose of this subpart is to assist in the desegre-
gation of schools served by local educational agencies by 
providing financial assistance to eligible local educational 
agencies for— 
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‘‘(1) the elimination, reduction, or prevention of 
minority group isolation in elementary schools and 
secondary schools with substantial proportions of mi-
nority students, which shall include assisting in the 
efforts of the United States to achieve voluntary deseg-
regation in public schools; 
‘‘(2) the development and implementation of 
magnet school programs that will assist local edu-
cational agencies in achieving systemic reforms and 
providing all students the opportunity to meet State 
academic standards; 
‘‘(3) the development and design of innovative 
educational methods and practices that promote di-
versity and increase choices in public elementary 
schools and public secondary schools and public edu-
cational programs; 
‘‘(4) courses of instruction within magnet schools 
that will substantially strengthen the knowledge of 
academic subjects and the attainment of tangible and 
marketable career, technical, and professional skills of 
students attending such schools; 
‘‘(5) improving the ability of local educational 
agencies, including through professional development, 
to continue operating magnet schools at a high per-
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formance level after Federal funding for the magnet 
schools is terminated; and 
‘‘(6) ensuring that students enrolled in the mag-
net school programs have equitable access to a quality 
education that will enable the students to succeed aca-
demically and continue with postsecondary education 
or employment. 
‘‘SEC. 3122. DEFINITION. 
‘‘For the purpose of this subpart, the term ‘magnet 
school’ means a public elementary school, public secondary 
school, public elementary education center, or public sec-
ondary education center that offers a special curriculum ca-
pable of attracting substantial numbers of students of dif-
ferent racial backgrounds. 
‘‘SEC. 3123. PROGRAM AUTHORIZED. 
‘‘From the amount appropriated under section 
3(c)(1)(B), the Secretary, in accordance with this subpart, 
is authorized to award grants to eligible local educational 
agencies, and consortia of such agencies where appropriate, 
to carry out the purpose of this subpart for magnet schools 
that are— 
‘‘(1) part of an approved desegregation plan; 
and 
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‘‘(2) designed to bring students from different so-
cial, economic, ethnic, and racial backgrounds to-
gether. 
‘‘SEC. 3124. ELIGIBILITY. 
‘‘A local educational agency, or consortium of such 
agencies where appropriate, is eligible to receive a grant 
under this subpart to carry out the purpose of this subpart 
if such agency or consortium— 
‘‘(1) is implementing a plan undertaken pursu-
ant to a final order issued by a court of the United 
States, or a court of any State, or any other State 
agency or official of competent jurisdiction, that re-
quires the desegregation of minority-group-segregated 
children or faculty in the elementary schools and sec-
ondary schools of such agency; or 
‘‘(2) without having been required to do so, has 
adopted and is implementing, or will, if a grant is 
awarded to such local educational agency, or consor-
tium of such agencies, under this subpart, adopt and 
implement a plan that has been approved by the Sec-
retary as adequate under title VI of the Civil Rights 
Act of 1964 for the desegregation of minority-group- 
segregated children or faculty in such schools. 
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‘‘SEC. 3125. APPLICATIONS AND REQUIREMENTS. 
‘‘(a) APPLICATIONS.—An eligible local educational 
agency, or consortium of such agencies, desiring to receive 
a grant under this subpart shall submit an application to 
the Secretary at such time and in such manner as the Sec-
retary may reasonably require. 
‘‘(b) INFORMATION AND ASSURANCES.—Each applica-
tion submitted under subsection (a) shall include— 
‘‘(1) a description of— 
‘‘(A) how a grant awarded under this sub-
part will be used to promote desegregation, in-
cluding how the proposed magnet school pro-
grams will increase interaction among students 
of different social, economic, ethnic, and racial 
backgrounds; 
‘‘(B) the manner and extent to which the 
magnet school program will increase student 
academic achievement in the instructional area 
or areas offered by the school; 
‘‘(C) how the applicant will continue the 
magnet school program after assistance under 
this subpart is no longer available, and, if appli-
cable, an explanation of why magnet schools es-
tablished or supported by the applicant with 
grant funds under this subpart cannot be contin-
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ued without the use of grant funds under this 
subpart; 
‘‘(D) how grant funds under this subpart 
will be used— 
‘‘(i) to improve student academic 
achievement for all students attending the 
magnet school programs; and 
‘‘(ii) to implement services and activi-
ties that are consistent with other programs 
under this Act, and other Acts, as appro-
priate; and 
‘‘(E) the criteria to be used in selecting stu-
dents to attend the proposed magnet school pro-
gram; and 
‘‘(2) assurances that the applicant will— 
‘‘(A) use grant funds under this subpart for 
the purposes specified in section 3121; 
‘‘(B) employ effective teachers in the courses 
of instruction assisted under this subpart; 
‘‘(C) not engage in discrimination based on 
race, religion, color, national origin, sex, or dis-
ability in— 
‘‘(i) the hiring, promotion, or assign-
ment of employees of the applicant or other 
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personnel for whom the applicant has any 
administrative responsibility; 
‘‘(ii) the assignment of students to 
schools, or to courses of instruction within 
the schools, of such applicant, except to 
carry out the approved plan; and 
‘‘(iii) designing or operating extra-
curricular activities for students; 
‘‘(D) carry out a quality education program 
that will encourage greater parental decision-
making and involvement; and 
‘‘(E) give students residing in the local at-
tendance area of the proposed magnet school pro-
gram equitable consideration for placement in 
the program, consistent with desegregation guide-
lines and the capacity of the applicant to accom-
modate the students. 
‘‘(c) SPECIAL RULE.—No grant shall be awarded 
under this subpart unless the Assistant Secretary of Edu-
cation for Civil Rights determines that the assurances de-
scribed in subsection (b)(2)(C) will be met. 
‘‘SEC. 3126. PRIORITY. 
‘‘In awarding grants under this subpart, the Secretary 
shall give priority to applicants that— 
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‘‘(1) demonstrate the greatest need for assistance, 
based on the expense or difficulty of effectively car-
rying out approved desegregation plans and the mag-
net school program for which the grant is sought; 
‘‘(2) propose to carry out new magnet school pro-
grams, or significantly revise existing magnet school 
programs; 
‘‘(3) propose to select students to attend magnet 
school programs by methods such as lottery, rather 
than through academic examination; and 
‘‘(4) propose to serve the entire student popu-
lation of a school. 
‘‘SEC. 3127. USE OF FUNDS. 
‘‘(a) IN GENERAL.—Grant funds made available under 
this subpart may be used by an eligible local educational 
agency, or consortium of such agencies— 
‘‘(1) for planning and promotional activities di-
rectly related to the development, expansion, continu-
ation, or enhancement of academic programs and 
services offered at magnet schools; 
‘‘(2) for the acquisition of books, materials, and 
equipment, including computers and the maintenance 
and operation of materials, equipment, and com-
puters, necessary to conduct programs in magnet 
schools; 
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‘‘(3) for the compensation, or subsidization of the 
compensation, of elementary school and secondary 
school teachers, and instructional staff where applica-
ble, who are necessary to conduct programs in magnet 
schools; 
‘‘(4) with respect to a magnet school program of-
fered to less than the entire student population of a 
school, for instructional activities that— 
‘‘(A) are designed to make available the spe-
cial curriculum that is offered by the magnet 
school program to students who are enrolled in 
the school but who are not enrolled in the magnet 
school program; and 
‘‘(B) further the purpose of this subpart; 
‘‘(5) for activities, which may include profes-
sional development, that will build the recipient’s ca-
pacity to operate magnet school programs once the 
grant period has ended; 
‘‘(6) to enable the local educational agency, or 
consortium of such agencies, to have more flexibility 
in the administration of a magnet school program in 
order to serve students attending a school who are not 
enrolled in a magnet school program; and 
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‘‘(7) to enable the local educational agency, or 
consortium of such agencies, to have flexibility in de-
signing magnet schools for students in all grades. 
‘‘(b) SPECIAL RULE.—Grant funds under this subpart 
may be used for activities described in paragraphs (2) and 
(3) of subsection (a) only if the activities are directly related 
to improving student academic achievement based on the 
State’s academic standards or directly related to improving 
student reading skills or knowledge of mathematics, science, 
history, geography, English, foreign languages, art, or 
music, or to improving career, technical, and professional 
skills. 
‘‘SEC. 3128. LIMITATIONS. 
‘‘(a) DURATION OF AWARDS.—A grant under this sub-
part shall be awarded for a period that shall not exceed 
3 fiscal years. 
‘‘(b) LIMITATION ON PLANNING FUNDS.—A local edu-
cational agency, or consortium of such agencies, may ex-
pend for planning (professional development shall not be 
considered to be planning for purposes of this subsection) 
not more than 50 percent of the grant funds received under 
this subpart for the first year of the program and not more 
than 15 percent of such funds for each of the second and 
third such years. 
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‘‘(c) AMOUNT.—No local educational agency, or con-
sortium of such agencies, awarded a grant under this sub-
part shall receive more than $4,000,000 under this subpart 
for any 1 fiscal year. 
‘‘(d) TIMING.—To the extent practicable, the Secretary 
shall award grants for any fiscal year under this subpart 
not later than July 1 of the applicable fiscal year. 
‘‘SEC. 3129. EVALUATIONS. 
‘‘(a) RESERVATION.—The Secretary may reserve not 
more than 2 percent of the funds appropriated under section 
3(c)(1)(B) for any fiscal year to carry out evaluations, pro-
vide technical assistance, and carry out dissemination 
projects with respect to magnet school programs assisted 
under this subpart. 
‘‘(b) CONTENTS.—Each evaluation described in sub-
section (a), at a minimum, shall address— 
‘‘(1) how and the extent to which magnet school 
programs lead to educational quality and academic 
improvement; 
‘‘(2) the extent to which magnet school programs 
enhance student access to a quality education; 
‘‘(3) the extent to which magnet school programs 
lead to the elimination, reduction, or prevention of 
minority group isolation in elementary schools and 
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secondary schools with substantial proportions of mi-
nority students; and 
‘‘(4) the extent to which magnet school programs 
differ from other school programs in terms of the or-
ganizational characteristics and resource allocations 
of such magnet school programs. 
‘‘(c) DISSEMINATION.—The Secretary shall collect and 
disseminate to the general public information on successful 
magnet school programs. 
‘‘SEC. 3130. RESERVATION. 
‘‘In any fiscal year for which the amount appropriated 
under section 3(c)(1)(B) exceeds $75,000,000, the Secretary 
shall give priority in using such amounts in excess of 
$75,000,000 to awarding grants to local educational agen-
cies or consortia of such agencies that did not receive a 
grant under this subpart in the preceding fiscal year. 
‘‘Subpart 3—Family Engagement in Education 
Programs 
‘‘SEC. 3141. PURPOSES. 
‘‘The purposes of this subpart are the following: 
‘‘(1) To provide financial support to organiza-
tions to provide technical assistance and training to 
State and local educational agencies in the implemen-
tation and enhancement of systemic and effective fam-
ily engagement policies, programs, and activities that 
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lead to improvements in student development and 
academic achievement. 
‘‘(2) To assist State educational agencies, local 
educational agencies, community-based organizations, 
schools, and educators in strengthening partnerships 
among parents, teachers, school leaders, administra-
tors, and other school personnel in meeting the edu-
cational needs of children and fostering greater paren-
tal engagement. 
‘‘(3) To support State educational agencies, local 
educational agencies, schools, educators, and parents 
in developing and strengthening the relationship be-
tween parents and their children’s school in order to 
further the developmental progress of children. 
‘‘(4) To coordinate activities funded under this 
subpart with parent involvement initiatives funded 
under section 1118 and other provisions of this Act. 
‘‘(5) To assist the Secretary, State educational 
agencies, and local educational agencies in the coordi-
nation and integration of Federal, State, and local 
services and programs to engage families in edu-
cation. 
‘‘SEC. 3142. GRANTS AUTHORIZED. 
‘‘(a) STATEWIDE FAMILY ENGAGEMENT CENTERS.— 
From the amount appropriated under section 3(c)(1)(C), 
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the Secretary is authorized to award grants for each fiscal 
year to statewide organizations (or consortia of such orga-
nizations), to establish Statewide Family Engagement Cen-
ters that provide comprehensive training and technical as-
sistance to State educational agencies, local educational 
agencies, schools identified by State educational agencies 
and local educational agencies, organizations that support 
family-school partnerships, and other organizations that 
carry out, or carry out directly, parent education and fam-
ily engagement in education programs. 
‘‘(b) MINIMUM AWARD.—In awarding grants under 
this section, the Secretary shall, to the extent practicable, 
ensure that a grant is awarded for a Statewide Family En-
gagement Center in an amount not less than $500,000. 
‘‘SEC. 3143. APPLICATIONS. 
‘‘(a) SUBMISSIONS.—Each statewide organization, or 
a consortium of such organizations, that desires a grant 
under this subpart shall submit an application to the Sec-
retary at such time, in such manner, and including the in-
formation described in subsection (b). 
‘‘(b) CONTENTS.—Each application submitted under 
subsection (a) shall include, at a minimum, the following: 
‘‘(1) A description of the applicant’s approach to 
family engagement in education. 
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‘‘(2) A description of the support that the State-
wide Family Engagement Center that will be oper-
ated by the applicant will have from the State edu-
cational agency and any partner organization out-
lining the commitment to work with the center. 
‘‘(3) A description of the applicant’s plan for 
building a statewide infrastructure for family engage-
ment in education, that includes— 
‘‘(A) management and governance; 
‘‘(B) statewide leadership; or 
‘‘(C) systemic services for family engage-
ment in education. 
‘‘(4) A description of the applicant’s dem-
onstrated experience in providing training, informa-
tion, and support to State educational agencies, local 
educational agencies, schools, educators, parents, and 
organizations on family engagement in education 
policies and practices that are effective for parents 
(including low-income parents) and families, English 
learners, minorities, parents of students with disabil-
ities, parents of homeless students, foster parents and 
students, and parents of migratory students, includ-
ing evaluation results, reporting, or other data exhib-
iting such demonstrated experience. 
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‘‘(5) A description of the steps the applicant will 
take to target services to low-income students and 
parents. 
‘‘(6) An assurance that the applicant will— 
‘‘(A) establish a special advisory committee, 
the membership of which includes— 
‘‘(i) parents, who shall constitute a 
majority of the members of the special advi-
sory committee; 
‘‘(ii) representatives of education pro-
fessionals with expertise in improving serv-
ices for disadvantaged children; 
‘‘(iii) representatives of local elemen-
tary schools and secondary schools, includ-
ing students; 
‘‘(iv) representatives of the business 
community; and 
‘‘(v) representatives of State edu-
cational agencies and local educational 
agencies; 
‘‘(B) use not less than 65 percent of the 
funds received under this subpart in each fiscal 
year to serve local educational agencies, schools, 
and community-based organizations that serve 
high concentrations of disadvantaged students, 
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including English learners, minorities, parents 
of students with disabilities, parents of homeless 
students, foster parents and students, and par-
ents of migratory students; 
‘‘(C) operate a Statewide Family Engage-
ment Center of sufficient size, scope, and quality 
to ensure that the Center is adequate to serve the 
State educational agency, local educational agen-
cies, and community-based organizations; 
‘‘(D) ensure that the Center will retain staff 
with the requisite training and experience to 
serve parents in the State; 
‘‘(E) serve urban, suburban, and rural local 
educational agencies and schools; 
‘‘(F) work with— 
‘‘(i) other Statewide Family Engage-
ment Centers assisted under this subpart; 
and 
‘‘(ii) parent training and information 
centers and community parent resource cen-
ters assisted under sections 671 and 672 of 
the Individuals with Disabilities Education 
Act; 
‘‘(G) use not less than 30 percent of the 
funds received under this subpart for each fiscal 
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year to establish or expand technical assistance 
for evidence-based parent education programs; 
‘‘(H) provide assistance to State edu-
cational agencies and local educational agencies 
and community-based organizations that support 
family members in supporting student academic 
achievement; 
‘‘(I) work with State educational agencies, 
local educational agencies, schools, educators, 
and parents to determine parental needs and the 
best means for delivery of services to address 
such needs; 
‘‘(J) conduct sufficient outreach to assist 
parents, including parents who the applicant 
may have a difficult time engaging with a school 
or local educational agency; and 
‘‘(K) conduct outreach to low-income stu-
dents and parents, including low-income stu-
dents and parents who are not proficient in 
English. 
‘‘SEC. 3144. USES OF FUNDS. 
‘‘(a) IN GENERAL.—Grantees shall use grant funds re-
ceived under this subpart, based on the needs determined 
under section 3143(b)(6)(I), to provide training and tech-
nical assistance to State educational agencies, local edu-
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cational agencies, and organizations that support family- 
school partnerships, and activities, services, and training 
for local educational agencies, school leaders, educators, and 
parents— 
‘‘(1) to assist parents in participating effectively 
in their children’s education and to help their chil-
dren meet State standards, such as assisting par-
ents— 
‘‘(A) to engage in activities that will im-
prove student academic achievement, including 
understanding how they can support learning in 
the classroom with activities at home and in 
afterschool and extracurricular programs; 
‘‘(B) to communicate effectively with their 
children, teachers, school leaders, counselors, ad-
ministrators, and other school personnel; 
‘‘(C) to become active participants in the 
development, implementation, and review of 
school-parent compacts, family engagement in 
education policies, and school planning and im-
provement; 
‘‘(D) to participate in the design and provi-
sion of assistance to students who are not mak-
ing academic progress; 
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‘‘(E) to participate in State and local deci-
sionmaking; 
‘‘(F) to train other parents; and 
‘‘(G) to help the parents learn and use tech-
nology applied in their children’s education; 
‘‘(2) to develop and implement, in partnership 
with the State educational agency, statewide family 
engagement in education policy and systemic initia-
tives that will provide for a continuum of services to 
remove barriers for family engagement in education 
and support school reform efforts; and 
‘‘(3) to develop and implement parental involve-
ment policies under this Act. 
‘‘(b) MATCHING FUNDS FOR GRANT RENEWAL.—For 
each fiscal year after the first fiscal year for which an orga-
nization or consortium receives assistance under this sec-
tion, the organization or consortium shall demonstrate in 
the application that a portion of the services provided by 
the organization or consortium is supported through non- 
Federal contributions, which may be in cash or in-kind. 
‘‘(c) TECHNICAL ASSISTANCE.—The Secretary shall re-
serve not more than 2 percent of the funds appropriated 
under section 3(c)(1)(C) to carry out this subpart to provide 
technical assistance, by competitive grant or contract, for 
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the establishment, development, and coordination of State-
wide Family Engagement Centers. 
‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to prohibit a Statewide Family En-
gagement Center from— 
‘‘(1) having its employees or agents meet with a 
parent at a site that is not on school grounds; or 
‘‘(2) working with another agency that serves 
children. 
‘‘(e) PARENTAL RIGHTS.—Notwithstanding any other 
provision of this section— 
‘‘(1) no person (including a parent who educates 
a child at home, a public school parent, or a private 
school parent) shall be required to participate in any 
program of parent education or developmental screen-
ing under this section; and 
‘‘(2) no program or center assisted under this 
section shall take any action that infringes in any 
manner on the right of a parent to direct the edu-
cation of their children. 
‘‘SEC. 3145. FAMILY ENGAGEMENT IN INDIAN SCHOOLS. 
‘‘The Secretary of the Interior, in consultation with 
the Secretary of Education, shall establish, or enter into 
contracts and cooperative agreements with local Indian 
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nonprofit parent organizations to establish and operate 
Family Engagement Centers. 
‘‘PART B—LOCAL ACADEMIC FLEXIBLE GRANT 
‘‘SEC. 3201. PURPOSE. 
‘‘The purpose of this part is to— 
‘‘(1) provide local educational agencies with the 
opportunity to access funds to support the initiatives 
important to their schools and students to improve 
academic achievement and student engagement, in-
cluding protecting student safety; and 
‘‘(2) provide nonprofit and for-profit entities the 
opportunity to work with students to improve aca-
demic achievement and student engagement, including 
student safety. 
‘‘SEC. 3202. ALLOTMENTS TO STATES. 
‘‘(a) RESERVATIONS.—From the funds appropriated 
under section 3(c)(2) for any fiscal year, the Secretary shall 
reserve— 
‘‘(1) not more than one-half of 1 percent for na-
tional activities to provide technical assistance to eli-
gible entities in carrying out programs under this 
part; and 
‘‘(2) not more than one-half of 1 percent for pay-
ments to the outlying areas and the Bureau of Indian 
Education, to be allotted in accordance with their re-
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spective needs for assistance under this part, as deter-
mined by the Secretary, to enable the outlying areas 
and the Bureau to carry out the purpose of this part. 
‘‘(b) STATE ALLOTMENTS.— 
‘‘(1) DETERMINATION.—From the funds appro-
priated under section 3(c)(2) for any fiscal year and 
remaining after the Secretary makes reservations 
under subsection (a), the Secretary shall allot to each 
State for the fiscal year an amount that bears the 
same relationship to the remainder as the amount the 
State received under chapter B of subpart 1 of part 
A of title I for the preceding fiscal year bears to the 
amount all States received under that chapter for the 
preceding fiscal year, except that no State shall re-
ceive less than an amount equal to one-half of 1 per-
cent of the total amount made available to all States 
under this subsection. 
‘‘(2) REALLOTMENT OF UNUSED FUNDS.—If a 
State does not receive an allotment under this part 
for a fiscal year, the Secretary shall reallot the 
amount of the State’s allotment to the remaining 
States in accordance with this section. 
‘‘(c) STATE USE OF FUNDS.— 
‘‘(1) IN GENERAL.—Each State that receives an 
allotment under this part shall reserve not less than 
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75 percent of the amount allotted to the State under 
subsection (b) for each fiscal year for awards to eligi-
ble entities under section 3204. 
‘‘(2) AWARDS TO NONGOVERNMENTAL ENTITIES 
TO
IMPROVE
STUDENT
ACADEMIC
ACHIEVEMENT.— 
Each State that receives an allotment under sub-
section (b) for each fiscal year shall reserve not less 
than 8 percent of the amount allotted to the State for 
awards to nongovernmental entities under section 
3205. 
‘‘(3) STATE ACTIVITIES AND STATE ADMINISTRA-
TION.—A State educational agency may reserve not 
more than 17 percent of the amount allotted to the 
State under subsection (b) for each fiscal year for one 
or more of the following: 
‘‘(A) Enabling the State educational agen-
cy— 
‘‘(i) to pay the costs of developing the 
State assessments and standards required 
under section 1111(b), which may include 
the costs of working, at the sole discretion of 
the State, in voluntary partnerships with 
other States to develop such assessments and 
standards; or 
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‘‘(ii) if the State has developed the as-
sessments and standards required under sec-
tion 1111(b), to administer those assess-
ments or carry out other activities related 
to ensuring that the State’s schools and 
local educational agencies are helping stu-
dents meet the State’s academic standards 
under such section. 
‘‘(B) The administrative costs of carrying 
out its responsibilities under this part, except 
that not more than 5 percent of the reserved 
amount may be used for this purpose. 
‘‘(C) Monitoring and evaluation of pro-
grams and activities assisted under this part. 
‘‘(D) Providing training and technical as-
sistance under this part. 
‘‘(E) Statewide academic focused programs. 
‘‘(F) Sharing evidence-based and other effec-
tive strategies with eligible entities. 
‘‘(G) Awarding grants for blended learning 
projects under paragraph (4). 
‘‘(4) BLENDED LEARNING PROJECTS.— 
‘‘(A) IN
GENERAL.—From the amount of 
funds a State educational agency reserves under 
subsection (c)(3) for each fiscal year to carry out 
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this paragraph, the State educational agency 
shall award grants on a competitive basis to eli-
gible entities in the State to carry out blended 
learning projects described in this paragraph. 
‘‘(B) GEOGRAPHIC DIVERSITY.— In award-
ing grants under this paragraph, a State edu-
cational agency shall distribute funds equitably 
among geographic areas of the State, including 
rural and urban communities. 
‘‘(C) APPLICATION.—An eligible entity de-
siring to receive a grant under this paragraph 
shall submit an application to the State edu-
cational agency at such time and in such man-
ner as the agency may require, and which de-
scribes— 
‘‘(i) the blended learning project to be 
carried out by the eligible entity, including 
the design of the instructional model to be 
carried out by the eligible entity and how 
such eligible entity will use funds provided 
under this paragraph to carry out the 
project; 
‘‘(ii) in the case of an eligible entity 
described in subclause (I) or (III) of sub-
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paragraph (F)(ii), the schools that will par-
ticipate in the project; 
‘‘(iii) the expected impact on student 
academic achievement; 
‘‘(iv) how the eligible entity will ensure 
sufficient information technology is avail-
able to carry out the project; 
‘‘(v) how the eligible entity will ensure 
sufficient digital instructional resources are 
available to students participating in the 
project; 
‘‘(vi) the ongoing professional develop-
ment to be provided for teachers, school 
leaders, and other personnel carrying out 
the project; 
‘‘(vii) the State policies and procedures 
for which the eligible entity requests waivers 
from the State to carry out the project, 
which may include requests for the waivers 
described in section 3203(a)(11)(B); 
‘‘(viii) as appropriate, how the eligible 
entity will use the blended learning project 
to improve instruction and access to the 
curriculum for diverse groups of students, 
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including students with disabilities and stu-
dents who are limited English proficient; 
‘‘(ix) how the eligible entity will evalu-
ate the project in terms of student academic 
achievement and publicly report the results 
of such evaluation; and 
‘‘(x) how the eligible entity will sustain 
the project beyond the grant period. 
‘‘(D) USES OF FUNDS.—An eligible entity 
receiving a grant under this paragraph shall use 
such grant to carry out a blended learning 
project, which shall include at least 1 of the fol-
lowing activities: 
‘‘(i) Planning activities, which may 
include development of new instructional 
models (including blended learning tech-
nology software and platforms), the pur-
chase of digital instructional resources, ini-
tial professional development activities, and 
one-time information technology purchases, 
except that such expenditures may not in-
clude expenditures related to significant 
construction or renovation of facilities. 
‘‘(ii) Ongoing professional development 
for teachers, school leaders, or other per-
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sonnel involved in the project that is de-
signed to support the implementation and 
academic success of the project. 
‘‘(E) NON-FEDERAL MATCH.—A State edu-
cational agency that carries out a grant program 
under this paragraph shall provide non-Federal 
matching funds equal to not less than 10 percent 
of the grant funds awarded by the State edu-
cational agency to eligible entities under this 
paragraph. 
‘‘(F) DEFINITIONS.—In this paragraph: 
‘‘(i) BLENDED LEARNING PROJECT.— 
The term ‘blended learning project’ means a 
formal education program— 
‘‘(I) that includes an element of 
online learning, and instructional time 
in a supervised location away from 
home; 
‘‘(II) that includes an element of 
student control over time, path, or 
pace; and 
‘‘(III) in which the elements are 
connected to provide an integrated 
learning experience. 
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‘‘(ii) ELIGIBLE ENTITY.—The term ‘eli-
gible entity’ means a— 
‘‘(I) local educational agency; 
‘‘(II) charter school; or 
‘‘(III) consortium of the entities 
described in subclause (I) or (II), 
which may be in partnership with a 
for-profit or nonprofit entity. 
‘‘SEC. 3203. STATE APPLICATION. 
‘‘(a) IN GENERAL.—In order to receive an allotment 
under section 3202 for any fiscal year, a State educational 
agency shall submit to the Secretary, at such time as the 
Secretary may require, an application that— 
‘‘(1) describes how the State educational agency 
will use funds reserved for State-level activities, in-
cluding how, if any, of the funds will be used to sup-
port student safety; 
‘‘(2) describes the procedures and criteria the 
State educational agency will use for reviewing appli-
cations and awarding funds to eligible entities on a 
competitive basis, which shall include reviewing how 
the proposed project will help increase student aca-
demic achievement and student engagement; 
‘‘(3) describes how the State educational agency 
will ensure that awards made under this part are— 
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‘‘(A) of sufficient size and scope to support 
high-quality, effective programs that are con-
sistent with the purpose of this part; and 
‘‘(B) in amounts that are consistent with 
section 3204(f); 
‘‘(4) describes the steps the State educational 
agency will take to ensure that programs implement 
effective strategies, including providing ongoing tech-
nical assistance and training, and dissemination of 
evidence-based and other effective strategies; 
‘‘(5) describes how the State educational agency 
will consider students across all grades when making 
these awards; 
‘‘(6) an assurance that, other than providing 
technical and advisory assistance and monitoring 
compliance with this part, the State educational 
agency has not exercised and will not exercise any in-
fluence in the decisionmaking process of eligible enti-
ties as to the expenditure of funds received by the eli-
gible entities under this part; 
‘‘(7) describes how programs under this part will 
be coordinated with programs under this Act, and 
other programs as appropriate; 
‘‘(8) contains an assurance that the State edu-
cational agency— 
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‘‘(A) will make awards for programs for a 
period of not more than 5 years; and 
‘‘(B) will require each eligible entity seeking 
such an award to submit a plan describing how 
the project to be funded through the award will 
continue after funding under this part ends, if 
applicable; 
‘‘(9) contains an assurance that funds appro-
priated to carry out this part will be used to supple-
ment, and not supplant, State and local public funds 
expended to provide programs and activities author-
ized under this part and other similar programs; 
‘‘(10) an assurance that the State will support 
projects from each of the categories listed in section 
3204(b)(1)(D) in awarding subgrants to local edu-
cational agencies; and 
‘‘(11) in the case of a State that will carry out 
a program to award grants under section 3202(c)(4), 
a description of the program, which shall include— 
‘‘(A) the criteria the State will use to award 
grants under such section to eligible entities to 
carry out blended learning projects; 
‘‘(B) the State policies and procedures to be 
waived by the State, consistent with Federal law, 
for such eligible entities to carry out such 
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345 
projects, which may include waivers with respect 
to— 
‘‘(i) restrictions on class sizes; 
‘‘(ii) 
restrictions 
on 
licensing 
or 
credentialing of personnel supervising stu-
dent work in such projects; 
‘‘(iii) restrictions on the use of State 
funding for instructional materials for the 
purchase of digital instructional resources; 
‘‘(iv) restrictions on advancing stu-
dents based on demonstrated mastery of 
learning outcomes, rather than seat-time re-
quirements; and 
‘‘(v) restrictions on secondary school 
students in the State enrolling in online 
coursework; 
‘‘(C) how the State will inform eligible enti-
ties of the availability of the waivers described in 
subparagraph (B); and 
‘‘(D) how the State will provide the non- 
Federal 
match 
required 
under 
section 
3202(c)(4)(E). 
‘‘(b) DEEMED APPROVAL.—An application submitted 
by a State educational agency pursuant to subsection (a) 
shall be deemed to be approved by the Secretary unless the 
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Secretary makes a written determination, prior to the expi-
ration of the 120-day period beginning on the date on which 
the Secretary received the application, that the application 
is not in compliance with this part. 
‘‘(c) DISAPPROVAL.—The Secretary shall not finally 
disapprove the application, except after giving the State 
educational agency notice and an opportunity for a hear-
ing. 
‘‘(d) NOTIFICATION.—If the Secretary finds that the 
application is not in compliance, in whole or in part, with 
this part, the Secretary shall— 
‘‘(1) give the State educational agency notice 
and an opportunity for a hearing; and 
‘‘(2) notify the State educational agency of the 
finding of noncompliance, and, in such notification, 
shall— 
‘‘(A) cite the specific provisions in the ap-
plication that are not in compliance; and 
‘‘(B) request additional information, only 
as to the noncompliant provisions, needed to 
make the application compliant. 
‘‘(e) RESPONSE.—If the State educational agency re-
sponds to the Secretary’s notification described in sub-
section (d)(2) during the 45-day period beginning on the 
date on which the agency received the notification, and re-
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submits the application with the requested information de-
scribed in subsection (d)(2)(B), the Secretary shall approve 
or disapprove such application prior to the later of— 
‘‘(1) the expiration of the 45-day period begin-
ning on the date on which the application is resub-
mitted; or 
‘‘(2) the expiration of the 120-day period de-
scribed in subsection (b). 
‘‘(f) FAILURE TO RESPOND.—If the State educational 
agency does not respond to the Secretary’s notification de-
scribed in subsection (d)(2) during the 45-day period begin-
ning on the date on which the agency received the notifica-
tion, such application shall be deemed to be disapproved. 
‘‘(g) RULE OF CONSTRUCTION.—An application sub-
mitted by a State educational agency pursuant to sub-
section (a) shall not be approved or disapproved based upon 
the activities for which the agency may make funds avail-
able to eligible entities under section 3204 if the agency’s 
use of funds is consistent with section 3204(b). 
‘‘SEC. 3204. LOCAL COMPETITIVE GRANT PROGRAM. 
‘‘(a) IN GENERAL.—A State that receives funds under 
this part for a fiscal year shall provide the amount made 
available under section 3202(c)(1) to eligible entities in ac-
cordance with this section. 
‘‘(b) USE OF FUNDS.— 
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‘‘(1) IN GENERAL.—An eligible entity that re-
ceives an award under this part shall use the funds 
for activities that— 
‘‘(A) are evidence-based; 
‘‘(B) 
will 
improve 
student 
academic 
achievement and student engagement; 
‘‘(C) are allowable under State law; and 
‘‘(D) focus on one or more projects from the 
following two categories: 
‘‘(i) Supplemental student support ac-
tivities such as before, after, or summer 
school activities, tutoring, and expanded 
learning time, but not including athletics or 
in-school learning activities. 
‘‘(ii) Activities designed to support stu-
dents, such as academic subject specific pro-
grams including computer science and other 
science, technology, engineering, and mathe-
matics programs, arts education, civic edu-
cation, and adjunct teacher, extended-learn-
ing-time, and dual enrollment programs, 
and parent engagement, but not including 
activities to— 
‘‘(I) support smaller class sizes or 
construction; or 
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‘‘(II) provide compensation or 
benefits to teachers, school leaders, 
other school officials, or local edu-
cational agency staff. 
‘‘(2) PARTICIPATION OF CHILDREN ENROLLED IN 
PRIVATE SCHOOLS.—An eligible entity that receives 
an award under this part shall ensure compliance 
with section 6501 (relating to participation of chil-
dren enrolled in private schools). 
‘‘(c) APPLICATION.— 
‘‘(1) IN GENERAL.—To be eligible to receive an 
award under this part, an eligible entity shall submit 
an application to the State educational agency at 
such time, in such manner, and including such infor-
mation as the State educational agency may reason-
ably require, including the contents required by para-
graph (2). 
‘‘(2) CONTENTS.—Each application submitted 
under paragraph (1) shall include— 
‘‘(A) a description of the activities to be 
funded and how they are consistent with sub-
section (b), including any activities that will in-
crease student safety; 
‘‘(B) an assurance that funds under this 
part will be used to increase the level of State, 
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local, and other non-Federal funds that would, 
in the absence of funds under this part, be made 
available for programs and activities authorized 
under this part, and in no case supplant State, 
local, or non-Federal funds; 
‘‘(C) an assurance that the community will 
be given notice of an intent to submit an appli-
cation with an opportunity for comment, and 
that the application will be available for public 
review after submission of the application; and 
‘‘(D) an assurance that students who benefit 
from any activity funded under this part shall 
continue to maintain enrollment in a public ele-
mentary or secondary school. 
‘‘(d) REVIEW.—In reviewing local applications under 
this section, a State educational agency shall use a peer 
review process or other methods of assuring the quality of 
such applications but the review shall be limited to the like-
lihood that the project will increase student academic 
achievement and student engagement. 
‘‘(e) GEOGRAPHIC DIVERSITY.—A State educational 
agency shall distribute funds under this part equitably 
among geographic areas within the State, including rural, 
suburban, and urban communities. 
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‘‘(f) AWARD.—A grant shall be awarded to all eligible 
entities that submit an application that meets the require-
ments of this section in an amount that is not less than 
$10,000, but there shall be only one annual award granted 
to any one local educational agency, but such award may 
be for multiple projects or programs with the local edu-
cational agency. 
‘‘(g) DURATION OF AWARDS.—Grants under this part 
may be awarded for a period of not more than 5 years. 
‘‘(h) ELIGIBLE ENTITY DEFINED.—In this section, the 
term ‘eligible entity’ means— 
‘‘(1) a local educational agency in partnership 
with a community-based organization, institution of 
higher education, business entity, or nongovernmental 
entity; 
‘‘(2) a consortium of local educational agencies 
working in partnership with a community-based or-
ganization, institution of higher education, business 
entity, or nongovernmental entity; 
‘‘(3) a community-based organization or institu-
tion of higher education in partnership with a local 
educational agency and, if applicable, a business enti-
ty or nongovernmental entity; or 
‘‘(4) a business entity in partnership with a 
local educational agency and, if applicable, a commu-
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nity-based organization, institution of higher edu-
cation, or nongovernmental entity. 
‘‘SEC. 3205. AWARDS TO NONGOVERNMENTAL ENTITIES TO 
IMPROVE ACADEMIC ACHIEVEMENT. 
‘‘(a) IN GENERAL.—From the amount reserved under 
section 3202(c)(2), a State educational agency shall award 
grants to nongovernmental entities, including public or pri-
vate organizations, community-based or faith-based organi-
zations, institutions of higher education, and business enti-
ties for a program or project to increase the academic 
achievement and student engagement of public school stu-
dents attending public elementary or secondary schools (or 
both) in compliance with the requirements in this section. 
Subject to the availability of funds, the State educational 
agency shall award a grant to each eligible applicant that 
meets the requirements in a sufficient size and scope to sup-
port the program. 
‘‘(b) APPLICATION.—The State educational agency 
shall require an application that includes the following in-
formation: 
‘‘(1) A description of the program or project the 
applicant will use the funds to support. 
‘‘(2) A description of how the applicant is using 
or will use other State, local, or private funding to 
support the program or project. 
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‘‘(3) A description of how the program or project 
will help increase student academic achievement and 
student engagement, including the evidence to support 
this claim. 
‘‘(4) A description of the student population the 
program or project is targeting to impact, and if the 
program will prioritize students in high-need local 
educational agencies. 
‘‘(5) A description of how the applicant will con-
duct sufficient outreach to ensure students can par-
ticipate in the program or project. 
‘‘(6) A description of any partnerships the appli-
cant has entered into with local educational agencies 
or other entities the applicant will work with, if ap-
plicable. 
‘‘(7) A description of how the applicant will 
work to share evidence-based and other effective strat-
egies from the program or project with local edu-
cational agencies and other entities working with stu-
dents to increase academic achievement. 
‘‘(8) An assurance that students who benefit from 
any program or project funded under this section 
shall continue to maintain enrollment in a public ele-
mentary or secondary school. 
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354 
‘‘(c) MATCHING CONTRIBUTION.—An eligible appli-
cant receiving a grant under this section shall provide, ei-
ther directly or through private contributions, non-Federal 
matching funds equal to not less than 50 percent of the 
amount of the grant. 
‘‘(d) REVIEW.—The State educational agency shall re-
view the application to ensure that— 
‘‘(1) the applicant is an eligible applicant; 
‘‘(2) the application clearly describes the re-
quired elements in subsection (b); 
‘‘(3) the entity meets the matching requirement 
described in subsection (c); and 
‘‘(4) the program is allowable and complies with 
Federal, State, and local laws. 
‘‘(e) DISTRIBUTION OF FUNDS.—If the application re-
quests exceed the funds available, the State educational 
agency shall prioritize projects that support students in 
high-need local educational agencies and ensure geographic 
diversity, including serving rural, suburban, and urban 
areas. 
‘‘(f) ADMINISTRATIVE COSTS.—Not more than 1 per-
cent of a grant awarded under this section may be used 
for administrative costs. 
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‘‘SEC. 3206. REPORT. 
‘‘Each recipient of a grant under section 3204 or 3205 
shall report to the State educational agency on— 
‘‘(1) the success of the program in reaching the 
goals of the program; 
‘‘(2) a description of the students served by the 
program and how the students’ academic achievement 
improved; and 
‘‘(3) the results of any evaluation conducted on 
the success of the program.’’. 
TITLE IV—IMPACT AID 
SEC. 401. PURPOSE. 
Section 8001 (20 U.S.C. 7701) is amended by striking 
‘‘challenging State standards’’ and inserting ‘‘State aca-
demic standards’’. 
SEC. 402. PAYMENTS RELATING TO FEDERAL ACQUISITION 
OF REAL PROPERTY. 
Section 8002 (20 U.S.C. 7702) is amended— 
(1) in subsection (a)(1)(C), by amending the 
matter preceding clause (i) to read as follows: 
‘‘(C) had an assessed value according to 
original records (including facsimiles or other re-
productions of those records) documenting the as-
sessed value of such property (determined as of 
the time or times when so acquired) prepared by 
the local officials referred to in subsection (b)(3) 
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356 
or, when such original records are not available 
due to unintentional destruction (such as nat-
ural disaster, fire, flooding, pest infestation, or 
deterioration due to age), other records, includ-
ing Federal agency records, local historical 
records, or other records that the Secretary deter-
mines to be appropriate and reliable, aggre-
gating 10 percent or more of the assessed value 
of—’’; 
(2) in subsection (b)(1)(B), by striking ‘‘section 
8014(a)’’ and inserting ‘‘section 3(d)(1)’’; 
(3) by amending subsection (f) to read as follows: 
‘‘(f) SPECIAL RULE.—Beginning with fiscal year 
2014, a local educational agency shall be deemed to meet 
the requirements of subsection (a)(1)(C) if records to deter-
mine eligibility under such subsection were destroyed prior 
to fiscal year 2000 and the agency received funds under 
subsection (b) in the previous year.’’; 
(4) by amending subsection (g) to read as fol-
lows: 
‘‘(g) FORMER DISTRICTS.— 
‘‘(1) CONSOLIDATIONS.—For fiscal year 2006 
and each succeeding fiscal year, if a local educational 
agency described in subsection (b) is formed at any 
time after 1938 by the consolidation of 2 or more 
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former school districts, the local educational agency 
may elect to have the Secretary determine its eligi-
bility for any fiscal year on the basis of 1 or more 
of those former districts, as designated by the local 
educational agency. 
‘‘(2) ELIGIBLE
LOCAL
EDUCATIONAL
AGEN-
CIES.—A local educational agency referred to in sub-
section (a) is— 
‘‘(A) any local educational agency that, for 
fiscal year 1994 or any preceding fiscal year, 
applied, and was determined to be eligible under, 
section 2(c) of the Act of September 30, 1950 
(Public Law 874, 81st Congress) as that section 
was in effect for that fiscal year; or 
‘‘(B) a local educational agency formed by 
the consolidation of 2 or more districts, at least 
1 of which was eligible for assistance under this 
section for the fiscal year preceding the year of 
the consolidation, if— 
‘‘(i) for fiscal years 2006 through 2015 
the local educational agency notified the 
Secretary not later than 30 days after the 
date of the enactment of this Act; and 
‘‘(ii) for fiscal year 2016 the local edu-
cational agency includes the designation in 
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(8) by amending subsection (j) (as so redesig-
nated) by striking ‘‘(h)(4)(B)’’ and inserting ‘‘(h)(2)’’; 
and 
(9) by redesignating subsection (n) as subsection 
(k). 
SEC. 403. PAYMENTS FOR ELIGIBLE FEDERALLY CON-
NECTED CHILDREN. 
(a) COMPUTATION OF PAYMENT.—Section 8003(a) (20 
U.S.C. 7703(a)) is amended— 
(1) in the matter preceding subparagraph (A) of 
paragraph (1), by inserting after ‘‘schools of such 
agency’’ the following: ‘‘(including those children en-
rolled in such agency as a result of the open enroll-
ment policy of the State in which the agency is lo-
cated, but not including children who are enrolled in 
a distance education program at such agency and 
who are not residing within the geographic bound-
aries of such agency)’’; and 
(2) in paragraph (5)(A), by striking ‘‘1984’’ and 
all that follows through ‘‘situated’’ and inserting 
‘‘1984, or under lease of off-base property under sub-
chapter IV of chapter 169 of title 10, United States 
Code, to be children described under paragraph (1)(B) 
if the property described is within the fenced security 
perimeter of the military facility or attached to and 
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under any type of force protection agreement with the 
military installation upon which such housing is sit-
uated’’. 
(b) BASIC SUPPORT PAYMENTS
FOR HEAVILY IM-
PACTED LOCAL EDUCATIONAL AGENCIES.—Section 8003(b) 
(20 U.S.C. 7703(b)) is amended— 
(1) by striking ‘‘section 8014(b)’’ each place it 
appears and inserting ‘‘section 3(d)(2)’’; 
(2) in paragraph (1), by repealing subparagraph 
(E); 
(3) in paragraph (2)— 
(A) in subparagraph (B)— 
(i) by striking ‘‘CONTINUING’’ in the 
heading; 
(ii) by amending clause (i) to read as 
follows: 
‘‘(i) IN GENERAL.—A heavily impacted 
local educational agency is eligible to re-
ceive a basic support payment under sub-
paragraph (A) with respect to a number of 
children determined under subsection (a)(1) 
if the agency— 
‘‘(I) is a local educational agen-
cy— 
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‘‘(aa) whose boundaries are 
the same as a Federal military 
installation or an island property 
designated by the Secretary of the 
Interior to be property that is 
held in trust by the Federal Gov-
ernment; and 
‘‘(bb) that has no taxing au-
thority; 
‘‘(II) is a local educational agency 
that— 
‘‘(aa) has an enrollment of 
children described in subsection 
(a)(1) that constitutes a percent-
age of the total student enrollment 
of the agency that is not less than 
45 percent; 
‘‘(bb) has a per-pupil ex-
penditure that is less than— 
‘‘(AA) for an agency 
that has a total student en-
rollment of 500 or more stu-
dents, 125 percent of the av-
erage per-pupil expenditure 
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362 
of the State in which the 
agency is located; or 
‘‘(BB) for any agency 
that has a total student en-
rollment less than 500, 150 
percent of the average per- 
pupil 
expenditure 
of 
the 
State in which the agency is 
located or the average per- 
pupil expenditure of 3 or 
more comparable local edu-
cational agencies in the State 
in which the agency is lo-
cated; and 
‘‘(cc) is an agency that has a 
tax rate for general fund purposes 
that is not less than 95 percent of 
the average tax rate for general 
fund purposes of comparable local 
educational agencies in the State; 
‘‘(III) is a local educational agen-
cy that— 
‘‘(aa) has an enrollment of 
children described in subsection 
(a)(1) that constitutes a percent-
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363 
age of the total student enrollment 
of the agency that is not less than 
20 percent; 
‘‘(bb) for the 3 fiscal years 
preceding the fiscal year for which 
the determination is made, the av-
erage enrollment of children who 
are not described in subsection 
(a)(1) and who are eligible for a 
free or reduced price lunch under 
the Richard B. Russell National 
School Lunch Act constitutes a 
percentage of the total student en-
rollment of the agency that is not 
less than 65 percent; and 
‘‘(cc) has a tax rate for gen-
eral fund purposes which is not 
less than 125 percent of the aver-
age tax rate for general fund pur-
poses for comparable local edu-
cational agencies in the State; 
‘‘(IV) is a local educational agen-
cy that has a total student enrollment 
of not less than 25,000 students, of 
which— 
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‘‘(aa) not less than 50 per-
cent are children described in sub-
section (a)(1); and 
‘‘(bb) not less than 5,500 of 
such children are children de-
scribed in subparagraphs (A) and 
(B) of subsection (a)(1); or 
‘‘(V) is a local educational agency 
that— 
‘‘(aa) has an enrollment of 
children described in subsection 
(a)(1) including, for purposes of 
determining eligibility, those chil-
dren described in subparagraphs 
(F) and (G) of such subsection, 
that is not less than 35 percent of 
the total student enrollment of the 
agency; and 
‘‘(bb) was eligible to receive 
assistance 
under 
subparagraph 
(A) for fiscal year 2001.’’; and 
(iii) in clause (ii)— 
(I) by striking ‘‘A heavily’’ and 
inserting the following: 
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‘‘(I) IN
GENERAL.—Subject to 
subclause (II), a heavily’’; and 
(II) by adding at the end the fol-
lowing: 
‘‘(II) LOSS OF ELIGIBILITY DUE 
TO
FALLING
BELOW
PERCENT
OF 
THE AVERAGE TAX RATE FOR GENERAL 
FUND PURPOSES.—In a case of a heav-
ily impacted local educational agency 
that is eligible to receive a basic sup-
port payment under subparagraph (A), 
but that has had, for 2 consecutive fis-
cal years, a tax rate for general fund 
purposes that falls below 95 percent of 
the average tax rate for general fund 
purposes of comparable local edu-
cational agencies in the State, such 
agency shall be determined to be ineli-
gible under clause (i) and ineligible to 
receive a basic support payment under 
subparagraph (A) for each fiscal year 
succeeding such 2 consecutive fiscal 
years for which the agency has such a 
tax rate for general fund purposes, and 
until the fiscal year for which the 
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366 
agency resumes such eligibility in ac-
cordance with clause (iii).’’; 
(B) by striking subparagraph (C); 
(C) by redesignating subparagraphs (D) 
through (H) as subparagraphs (C) through (G), 
respectively; 
(D) in subparagraph (C) (as so redesig-
nated)— 
(i) in the heading, by striking ‘‘REG-
ULAR’’; 
(ii) by striking ‘‘Except as provided in 
subparagraph (E)’’ and inserting ‘‘Except 
as provided in subparagraph (D)’’; 
(iii) by amending subclause (I) of 
clause (ii) to read as follows: ‘‘ (I)(aa) For 
a local educational agency with respect to 
which 35 percent or more of the total stu-
dent enrollment of the schools of the agency 
are children described in subparagraph (D) 
or (E) (or a combination thereof) of sub-
section (a)(1), and that has an enrollment 
of children described in subparagraph (A), 
(B), or (C) of such subsection equal to at 
least 10 percent of the agency’s total enroll-
ment, the Secretary shall calculate the 
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367 
weighted student units of those children de-
scribed in subparagraph (D) or (E) of such 
subsection by multiplying the number of 
such children by a factor of 0.55. 
‘‘(bb) Notwithstanding subitem (aa), a 
local educational agency that received a 
payment under this paragraph for fiscal 
year 2013 shall not be required to have an 
enrollment of children described in subpara-
graph (A), (B), or (C) of subsection (a)(1) 
equal to at least 10 percent of the agency’s 
total enrollment.’’; and 
(iv) by amending subclause (III) of 
clause (ii) by striking ‘‘(B)(i)(II)(aa)’’ and 
inserting ‘‘subparagraph (B)(i)(I)’’; 
(E) in subparagraph (D)(i)(II) (as so redes-
ignated), by striking ‘‘6,000’’ and inserting 
‘‘5,500’’; 
(F) in subparagraph (E) (as so redesig-
nated)— 
(i) by striking ‘‘Secretary’’ and all 
that follows through ‘‘shall use’’ and insert-
ing ‘‘Secretary shall use’’; 
(ii) by striking ‘‘; and’’ and inserting 
a period; and 
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368 
(iii) by striking clause (ii); 
(G) in subparagraph (F) (as so redesig-
nated), 
by 
striking 
‘‘subparagraph 
(C)(i)(II)(bb)’’ and inserting ‘‘subparagraph 
(B)(i)(II)(bb)(BB)’’; and 
(H) in subparagraph (G) (as so redesig-
nated)— 
(i) in clause (i)— 
(I) by striking ‘‘subparagraph 
(B), (C), (D), or (E)’’ and inserting 
‘‘subparagraph (B), (C), or (D)’’; 
(II) by striking ‘‘by reason of’’ 
and inserting ‘‘due to’’; 
(III) by inserting after ‘‘clause 
(iii)’’ the following ‘‘, or as the direct 
result of base realignment and closure 
or modularization as determined by 
the Secretary of Defense and force 
structure change or force relocation’’; 
and 
(IV) by inserting before the pe-
riod, the following: ‘‘or during such 
time as activities associated with base 
closure 
and 
realignment, 
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369 
modularization, force structure change, 
or force relocation are ongoing’’; and 
(ii) in clause (ii), by striking ‘‘(D) or 
(E)’’ each place it appears and inserting 
‘‘(C) or (D)’’; 
(4) in paragraph (3)— 
(A) in subparagraph (B)— 
(i) by amending clause (iii) to read as 
follows: 
‘‘(iii) In the case of a local educational 
agency providing a free public education to stu-
dents enrolled in kindergarten through grade 12, 
but which enrolls students described in subpara-
graphs (A), (B), and (D) of subsection (a)(1) 
only in grades 9 through 12, and which received 
a final payment in fiscal year 2009 calculated 
under this paragraph (as this paragraph was in 
effect on the day before the date of the enactment 
of the Student Success Act) for students in 
grades 9 through 12, the Secretary shall, in cal-
culating the agency’s payment, consider only 
that portion of such agency’s total enrollment of 
students in grades 9 through 12 when calculating 
the percentage under clause (i)(I) and only that 
portion of the total current expenditures attrib-
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370 
uted to the operation of grades 9 through 12 in 
such agency when calculating the percentage 
under clause (i)(II).’’; and 
(ii) by adding at the end the following: 
‘‘(v) In the case of a local educational agen-
cy that is providing a program of distance edu-
cation to children not residing within the geo-
graphic boundaries of the agency, the Secretary 
shall— 
‘‘(I) for purposes of the calculation 
under clause (i)(I), disregard such children 
from the total number of children in aver-
age daily attendance at the schools served 
by such agency; and 
‘‘(II) for purposes of the calculation 
under clause (i)(II), disregard any funds re-
ceived for such children from the total cur-
rent expenditures for such agency.’’; 
(B) in subparagraph (C), by striking ‘‘sub-
paragraph (D) or (E) of paragraph (2), as the 
case may be’’ and inserting ‘‘paragraph (2)(D)’’; 
(C) by amending subparagraph (D) to read 
as follows: 
‘‘(D) RATABLE
DISTRIBUTION.—For any 
fiscal year described in subparagraph (A) for 
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371 
which the sums available exceed the amount re-
quired to pay each local educational agency 100 
percent of its threshold payment, the Secretary 
shall distribute the excess sums to each eligible 
local educational agency that has not received its 
full amount computed under paragraph (1) or 
(2) (as the case may be) by multiplying— 
‘‘(i) a percentage, the denominator of 
which is the difference between the full 
amount computed under paragraph (1) or 
(2) (as the case may be) for all local edu-
cational agencies and the amount of the 
threshold payment (as calculated under sub-
paragraphs (B) and (C)) of all local edu-
cational agencies, and the numerator of 
which is the aggregate of the excess sums, by 
‘‘(ii) the difference between the full 
amount computed under paragraph (1) or 
(2) (as the case may be) for the agency and 
the amount of the threshold payment as cal-
culated under subparagraphs (B) and (C) of 
the agency.’’; and 
(D) by inserting at the end the following 
new subparagraphs: 
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372 
‘‘(E) INSUFFICIENT
PAYMENTS.—For each 
fiscal year described in subparagraph (A) for 
which the sums appropriated under section 
3(d)(2) are insufficient to pay each local edu-
cational agency all of the local educational agen-
cy’s threshold payment described in subpara-
graph (D), the Secretary shall ratably reduce the 
payment to each local educational agency under 
this paragraph. 
‘‘(F) INCREASES.—If the sums appropriated 
under section 3(d)(2) are sufficient to increase 
the threshold payment above the 100 percent 
threshold payment described in subparagraph 
(D), then the Secretary shall increase payments 
on the same basis as such payments were re-
duced, except no local educational agency may 
receive a payment amount greater than 100 per-
cent of the maximum payment calculated under 
this subsection.’’; and 
(5) in paragraph (4)— 
(A) in subparagraph (A), by striking 
‘‘through (D)’’ and inserting ‘‘and (C)’’; and 
(B) in subparagraph (B), by striking ‘‘sub-
paragraph (D) or (E)’’ and inserting ‘‘subpara-
graph (C) or (D)’’. 
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373 
(c) PRIOR YEAR DATA.—Paragraph (2) of section 
8003(c) (20 U.S.C. 7703(c)) is amended to read as follows: 
‘‘(2) EXCEPTION.—Calculation of payments for a 
local educational agency shall be based on data from 
the fiscal year for which the agency is making an ap-
plication for payment if such agency— 
‘‘(A) is newly established by a State, for the 
first year of operation of such agency only; 
‘‘(B) was eligible to receive a payment 
under this section for the previous fiscal year 
and has had an overall increase in enrollment 
(as determined by the Secretary in consultation 
with the Secretary of Defense, the Secretary of 
the Interior, or the heads of other Federal agen-
cies)— 
‘‘(i) of not less than 10 percent, or 100 
students, of children described in— 
‘‘(I) subparagraph (A), (B), (C), 
or (D) of subsection (a)(1); or 
‘‘(II) subparagraphs (F) and (G) 
of subsection (a)(1), but only to the ex-
tent such children are civilian depend-
ents of employees of the Department of 
Defense or the Department of the Inte-
rior; and 
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374 
‘‘(ii) that is the direct result of closure 
or realignment of military installations 
under the base closure process or the reloca-
tion of members of the Armed Forces and 
civilian employees of the Department of De-
fense as part of the force structure changes 
or movements of units or personnel between 
military installations or because of actions 
initiated by the Secretary of the Interior or 
the head of another Federal agency; or 
‘‘(C) was eligible to receive a payment 
under this section for the previous fiscal year 
and has had an increase in enrollment (as deter-
mined by the Secretary)— 
‘‘(i) of not less than 10 percent of chil-
dren described in subsection (a)(1) or not 
less than 100 of such children; and 
‘‘(ii) that is the direct result of the clo-
sure of a local educational agency that re-
ceived a payment under subsection (b)(1) or 
(b)(2) in the previous fiscal year.’’. 
(d) 
CHILDREN
WITH
DISABILITIES.—Section 
8003(d)(1) (20 U.S.C. 7703(d)) is amended by striking 
‘‘section 8014(c)’’ and inserting ‘‘section 3(d)(3)’’. 
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375 
(e) HOLD-HARMLESS.—Section 8003(e) (20 U.S.C. 
7703(e)) is amended— 
(1) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) IN GENERAL.—Subject to paragraph (2), the 
total amount the Secretary shall pay a local edu-
cational agency under subsection (b)— 
‘‘(A) for fiscal year 2016, shall not be less 
than 90 percent of the total amount that the 
local educational agency received under sub-
section (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal 
year 2013; 
‘‘(B) for fiscal year 2017, shall not be less 
than 85 percent of the total amount that the 
local educational agency received under sub-
section (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal 
year 2013; and 
‘‘(C) for fiscal year 2018, shall not be less 
than 80 percent of the total amount that the 
local educational agency received under sub-
section (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal 
year 2013.’’; and 
(2) by amending paragraph (2) to read as fol-
lows: 
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376 
‘‘(2) MAXIMUM AMOUNT.—The total amount pro-
vided to a local educational agency under subpara-
graph (A), (B), or (C) of paragraph (1) for a fiscal 
year shall not exceed the maximum basic support 
payment amount for such agency determined under 
paragraph (1) or (2) of subsection (b), as the case 
may be, for such fiscal year.’’. 
(f) MAINTENANCE
OF EFFORT.—Section 8003 (20 
U.S.C. 7703) is amended by striking subsection (g). 
SEC. 404. POLICIES AND PROCEDURES RELATING TO CHIL-
DREN RESIDING ON INDIAN LANDS. 
Section 8004(e)(9) is amended by striking ‘‘Bureau of 
Indian Affairs’’ both places such term appears and insert-
ing ‘‘Bureau of Indian Education’’. 
SEC. 405. APPLICATION FOR PAYMENTS UNDER SECTIONS 
8002 AND 8003. 
Section 8005(b) (20 U.S.C. 7705(b)) is amended in the 
matter preceding paragraph (1) by striking ‘‘and shall con-
tain such information,’’. 
SEC. 406. CONSTRUCTION. 
Section 8007 (20 U.S.C. 7707) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘section 
8014(e)’’ and inserting ‘‘section 3(d)(4)’’; 
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377 
(B) in paragraph (2), by adding at the end 
the following: 
‘‘(C) The agency is eligible under section 
4003(b)(2) or is receiving basic support pay-
ments under circumstances described in section 
4003(b)(2)(B)(ii).’’; and 
(C) in paragraph (3), by striking ‘‘section 
8014(e)’’ each place it appears and inserting 
‘‘section 3(d)(4)’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘section 
8014(e)’’ and inserting ‘‘section 3(d)(4)’’; 
(B) in paragraph (3)— 
(i) in subparagraph (C)(i)(I), by add-
ing at the end the following: 
‘‘(cc) At least 10 percent of the 
property in the agency is exempt from 
State and local taxation under Federal 
law.’’; and 
(ii) by adding at the end the following: 
‘‘(F) LIMITATIONS
ON
ELIGIBILITY
RE-
QUIREMENTS.—The Secretary shall not limit eli-
gibility— 
‘‘(i) under subparagraph (C)(i)(I)(aa), 
to those local educational agencies in which 
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378 
the number of children determined under 
section 4003(a)(1)(C) for each such agency 
for the preceding school year constituted 
more than 40 percent of the total student 
enrollment in the schools of each such agen-
cy during the preceding school year; and 
‘‘(ii) under subparagraph (C)(i)(I)(cc), 
to those local educational agencies in which 
more than 10 percent of the property in 
each such agency is exempt from State and 
local taxation under Federal law.’’; and 
(C) in paragraph (6)— 
(i) in the matter preceding subpara-
graph (A), by striking ‘‘in such manner, 
and accompanied by such information’’ and 
inserting ‘‘and in such manner’’; and 
(ii) by striking subparagraph (F). 
SEC. 407. FACILITIES. 
Section 8008 (20 U.S.C. 7708) is amended in sub-
section (a), by striking ‘‘section 8014(f)’’ and inserting ‘‘sec-
tion 3(d)(5)’’. 
SEC. 408. STATE CONSIDERATION OF PAYMENTS PRO-
VIDING STATE AID. 
Section 8009(c)(1)(B) (20 U.S.C. 7709(c)(1)(B)) is 
amended by striking ‘‘and contain the information’’. 
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379 
SEC. 409. FEDERAL ADMINISTRATION. 
Section 8010(d)(2) (20 U.S.C. 7710(d)(2)) is amended, 
by striking ‘‘section 8014’’ and inserting ‘‘section 3(d)’’. 
SEC. 410. ADMINISTRATIVE HEARINGS AND JUDICIAL RE-
VIEW. 
Section 8011(a) (20 U.S.C. 7711(a)) is amended by 
striking ‘‘or under the Act’’ and all that follows through 
‘‘1994)’’. 
SEC. 411. DEFINITIONS. 
Section 8013 (20 U.S.C. 7713) is amended— 
(1) in paragraph (1), by striking ‘‘and Marine 
Corps’’ and inserting ‘‘Marine Corps, and Coast 
Guard’’; 
(2) in paragraph (4), by striking ‘‘and title VI’’; 
(3) in paragraph (5)(A)(iii)— 
(A) in subclause (II), by striking ‘‘Stewart 
B. McKinney Homeless Assistance Act’’ and in-
serting ‘‘McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11411)’’; and 
(B) in subclause (III), by inserting before 
the semicolon ‘‘(25 U.S.C. 4101 et seq.)’’; and 
(4) in paragraph (8)(A), by striking ‘‘and 
verified by’’ and inserting ‘‘, and verified by,’’. 
SEC. 412. AUTHORIZATION OF APPROPRIATIONS. 
Section 8014 (20 U.S.C. 7801) is repealed. 
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380 
SEC. 413. CONFORMING AMENDMENTS. 
(a) IMPACT AID IMPROVEMENT ACT OF 2012.—Section 
563(c) of National Defense Authorization Act for Fiscal 
Year 2013 (Public Law 112–239; 126 Stat. 1748; 20 U.S.C. 
6301 note) (also known as the ‘‘Impact Aid Improvement 
Act of 2012’’), as amended by section 563 of division A of 
Public Law 113–291, is amended— 
(1) by striking paragraphs (1) and (4); and 
(2) by redesignating paragraphs (2) and (3), as 
paragraphs (1) and (2), respectively. 
(b) REPEALS.— 
(1) TITLE IV.—Title IV (20 U.S.C. 7101 et seq.), 
as amended by section 601(b)(2) of this Act, is re-
pealed. 
(2) PL 113–76.—Section 309 of division H of the 
Consolidated Appropriations Act, 2014 (Public Law 
113–76; 20 U.S.C. 7702 note) is repealed. 
(c) TRANSFER AND REDESIGNATION.—Title VIII (20 
U.S.C. 7701 et seq.), as amended by this title, is redesig-
nated as title IV (20 U.S.C. 7101 et seq.), and transferred 
and inserted after title III (as amended by this Act). 
(d) TITLE VIII REFERENCES.—The Act (20 U.S.C. 
6301 et seq.), as amended by this Act, is amended— 
(1) by redesignating sections 8001 through 8005 
as sections 4001 through 4005, respectively; 
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381 
(2) by redesignating sections 8007 through 8013 
as sections 4007 through 4013, respectively; 
(3) by striking ‘‘section 8002’’ each place it ap-
pears and inserting ‘‘section 4002’’; 
(4) by striking ‘‘section 8002(b)’’ each place it 
appears and inserting ‘‘section 4002(b)’’; 
(5) by striking ‘‘section 8003’’ each place it ap-
pears and inserting ‘‘section 4003’’, respectively; 
(6) by striking ‘‘section 8003(a)’’ each place it 
appears and inserting ‘‘section 4003(a)’’; 
(7) by striking ‘‘section 8003(a)(1)’’ each place it 
appears and inserting ‘‘section 4003(a)(1)’’; 
(8) by striking ‘‘section 8003(a)(1)(C)’’ each 
place 
it 
appears 
and 
inserting 
‘‘section 
4003(a)(1)(C)’’; 
(9) by striking ‘‘section 8002(a)(2)’’ each place it 
appears and inserting ‘‘section 4002(a)(2)’’; 
(10) by striking ‘‘section 8003(b)’’ each place it 
appears and inserting ‘‘section 4003(b)’’; 
(11) by striking ‘‘section 8003(b)(1)’’ each place 
it appears and inserting ‘‘section 4003(b)(1)’’; 
(12) in section 4002(b)(1)(C) (as so redesig-
nated), by striking ‘‘section 8003(b)(1)(C)’’ and in-
serting ‘‘section 4003(b)(1)(C)’’; 
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382 
(13) in section 4002(k)(1) (as so redesignated), 
by striking ‘‘section 8013(5)(C)(iii)’’ and inserting 
‘‘section 4013(5)(C)(iii)’’; 
(14) in section 4005 (as so redesignated)— 
(A) in the section heading, by striking 
‘‘8002
AND
8003’’ and inserting ‘‘4002
AND 
4003’’; 
(B) by striking ‘‘or 8003’’ each place it ap-
pears and inserting ‘‘or 4003’’; 
(C) in subsection (b)(2), by striking ‘‘section 
8004’’ and inserting ‘‘section 4004’’; and 
(D) in subsection (d)(2), by striking ‘‘sec-
tion 8003(e)’’ and inserting ‘‘section 4003(e)’’; 
(15) in the second subclause (II) of section 
4007(a)(3)(A)(i) (as so redesignated), by striking 
‘‘section 8008(a)’’ and inserting ‘‘section 4008(a)’’; 
(16) in section 4007(a)(4) (as so redesignated), 
by striking ‘‘section 8013(3)’’ and inserting ‘‘section 
4013(3)’’; 
(17) in section 4009 (as so redesignated)— 
(A) in subsection (b)(1)— 
(i) by striking ‘‘or 8003(b)’’ and in-
serting ‘‘or 4003(b)’’; 
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383 
(ii) 
by 
striking 
‘‘section 
8003(a)(2)(B)’’ 
and 
inserting 
‘‘section 
4003(a)(2)(B)’’; and 
(iii) by striking ‘‘section 8003(b)(2)’’ 
each place it appears and inserting ‘‘section 
4003(b)(2)’’; and 
(B) by striking ‘‘section 8011(a)’’ each place 
it appears and inserting ‘‘section 4011(a)’’; and 
(18) in section 4010(c)(2)(D) (as so redesig-
nated) by striking ‘‘section 8009(b)’’ and inserting 
‘‘section 4009(b)’’. 
TITLE 
V—THE 
FEDERAL 
GOV-
ERNMENT’S TRUST RESPON-
SIBILITY TO AMERICAN IN-
DIAN, ALASKA NATIVE, AND 
NATIVE 
HAWAIIAN 
EDU-
CATION 
SEC. 501. THE FEDERAL GOVERNMENT’S TRUST RESPONSI-
BILITY TO AMERICAN INDIAN, ALASKA NA-
TIVE, AND NATIVE HAWAIIAN EDUCATION. 
Title V of the Act (20 U.S.C. 7201 et seq.) is amended 
to read as follows: 
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384 
‘‘TITLE V—THE FEDERAL GOV-
ERNMENT’S TRUST RESPON-
SIBILITY TO AMERICAN IN-
DIAN, ALASKA NATIVE, AND 
NATIVE 
HAWAIIAN 
EDU-
CATION 
‘‘PART A—INDIAN EDUCATION 
‘‘SEC. 5101. STATEMENT OF POLICY. 
‘‘It is the policy of the United States to fulfill the Fed-
eral Government’s unique and continuing trust relationship 
with, and responsibility to, the Indian people for the edu-
cation of Indian children. The Federal Government will 
continue to work with local educational agencies, Indian 
tribes and organizations, postsecondary institutions, and 
other entities toward the goal of ensuring that programs 
that serve Indian children are of the highest quality and 
provide for not only the basic elementary and secondary 
educational needs, but also the unique educational and cul-
turally related academic needs of these children. 
‘‘SEC. 5102. PURPOSE. 
‘‘It is the purpose of this part to support the efforts 
of local educational agencies, Indian tribes and organiza-
tions, postsecondary institutions, and other entities— 
‘‘(1) to meet the unique educational and cul-
turally related academic needs of American Indian 
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385 
and Alaska Native students, so that such students can 
meet State student academic achievement standards; 
‘‘(2) to ensure that Indian and Alaskan Native 
students gain knowledge and understanding of Native 
communities, languages, tribal histories, traditions, 
and cultures; and 
‘‘(3) to ensure that school leaders, teachers, and 
other staff who serve Indian and Alaska Native stu-
dents have the ability to provide culturally appro-
priate and effective instruction to such students. 
‘‘Subpart 1—Formula Grants to Local Educational 
Agencies 
‘‘SEC. 5111. PURPOSE. 
‘‘It is the purpose of this subpart to support the efforts 
of local educational agencies, Indian tribes and organiza-
tions, and other entities to improve the academic achieve-
ment of American Indian and Alaska Native students by 
providing for their unique cultural, language, and edu-
cational needs and ensuring that they are prepared to meet 
State academic standards. 
‘‘SEC. 5112. GRANTS TO LOCAL EDUCATIONAL AGENCIES 
AND TRIBES. 
‘‘(a) IN GENERAL.—In accordance with this section 
and section 5113, the Secretary may make grants from allo-
cations made under section 5113, to— 
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386 
‘‘(1) local educational agencies; 
‘‘(2) Indian tribes; 
‘‘(3) Indian organizations; and 
‘‘(4) Alaska Native Organizations. 
‘‘(b) LOCAL EDUCATIONAL AGENCIES.— 
‘‘(1) ENROLLMENT
REQUIREMENTS.—A local 
educational agency shall be eligible for a grant under 
this subpart for any fiscal year if the number of In-
dian children eligible under section 5117 who were 
enrolled in the schools of the agency, and to whom the 
agency provided free public education, during the pre-
ceding fiscal year— 
‘‘(A) was at least 10; or 
‘‘(B) constituted not less than 25 percent of 
the total number of individuals enrolled in the 
schools of such agency. 
‘‘(2) EXCLUSION.—The requirement of para-
graph (1) shall not apply in Alaska, California, or 
Oklahoma, or with respect to any local educational 
agency located on, or in proximity to, an Indian res-
ervation. 
‘‘(c) INDIAN TRIBES, INDIAN ORGANIZATIONS, ALASKA 
NATIVE ORGANIZATIONS, AND CONSORTIA.— 
‘‘(1) IN GENERAL.—If a local educational agency 
that is otherwise eligible for a grant under this sub-
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387 
part does not establish a committee under section 
5114(c)(5) for such grant, an Indian tribe, Indian or-
ganization, Alaska Native Organization, or consor-
tium of such entities that represents not less than one- 
third of the eligible Indian or Alaska Native children 
who are served by such local educational agency may 
apply for such grant. 
‘‘(2) SPECIAL RULE.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
treat each Indian tribe, Indian organization, 
Alaska Native Organization, or consortium of 
such entities applying for a grant pursuant to 
paragraph (1) as if such applicant were a local 
educational agency for purposes of this subpart. 
‘‘(B) EXCEPTIONS.—Notwithstanding sub-
paragraph (A), such Indian tribe, Indian orga-
nization, Alaska Native Organization, or consor-
tium of such entities shall not be subject to the 
requirements of section 5114(c)(5) or 5119. 
‘‘(3) ELIGIBILITY.—If more than 1 applicant 
qualifies to apply for a grant under paragraph (1), 
the entity that represents the most eligible Indian and 
Alaska Native children who are served by the local 
educational agency shall be eligible to receive the 
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grant or the applicants may apply in consortium and 
jointly operate a program. 
‘‘(d) INDIAN AND ALASKA NATIVE COMMUNITY-BASED 
ORGANIZATIONS.— 
‘‘(1) IN GENERAL.—If no local educational agen-
cy pursuant to subsection (b), and no Indian tribe, 
tribal organization, Alaska Native Organization, or 
consortium pursuant to subsection (c), applies for a 
grant under this subpart, Indian and Alaska Native 
community-based organizations serving the commu-
nity of the local educational agency may apply for 
the grant. 
‘‘(2) APPLICABILITY
OF
SPECIAL
RULE.—The 
Secretary shall apply the special rule in subsection 
(c)(2) to a community-based organization applying 
or receiving a grant under paragraph (1) in the same 
manner as such rule applies to an Indian tribe, In-
dian organization, Alaska Native Organization, or 
consortium. 
‘‘(3) DEFINITION OF INDIAN AND ALASKA NATIVE 
COMMUNITY-BASED
ORGANIZATIONS.—In this sub-
section, the term ‘Indian and Alaska Native commu-
nity-based organizations’ means any organizations 
that— 
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389 
‘‘(A) are composed primarily of the family 
members of Indian or Alaska Native students, 
Indian or Alaska Native community members, 
tribal government education officials, and tribal 
members from a specific community; 
‘‘(B) assist in the social, cultural, and edu-
cational development of Indians or Alaska Na-
tives in such community; 
‘‘(C) meet the unique cultural, language, 
and academic needs of Indian or Alaska Native 
students; and 
‘‘(D) demonstrate organizational and ad-
ministrative capacity to effectively manage the 
grant. 
‘‘SEC. 5113. AMOUNT OF GRANTS. 
‘‘(a) AMOUNT OF GRANT AWARDS.— 
‘‘(1) IN GENERAL.—Except as provided in sub-
section (b) and paragraph (2), the Secretary shall al-
locate to each local educational agency that has an 
approved application under this subpart an amount 
equal to the product of— 
‘‘(A) the number of Indian children who are 
eligible under section 5117 and served by such 
agency; and 
‘‘(B) the greater of— 
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390 
‘‘(i) the average per pupil expenditure 
of the State in which such agency is located; 
or 
‘‘(ii) 80 percent of the average per 
pupil expenditure of all the States. 
‘‘(2) REDUCTION.—The Secretary shall reduce 
the amount of each allocation otherwise determined 
under this section in accordance with subsection (e). 
‘‘(b) MINIMUM GRANT.— 
‘‘(1) IN GENERAL.—Notwithstanding subsection 
(e), an entity that is eligible for a grant under section 
5112, and a school that is operated or supported by 
the Bureau of Indian Education that is eligible for a 
grant under subsection (d), that submits an applica-
tion that is approved by the Secretary, shall, subject 
to appropriations, receive a grant under this subpart 
in an amount that is not less than $3,000. 
‘‘(2) CONSORTIA.—Local educational agencies 
may form a consortium for the purpose of obtaining 
grants under this subpart. 
‘‘(3) INCREASE.—The Secretary may increase 
the minimum grant under paragraph (1) to not more 
than $4,000 for all grantees if the Secretary deter-
mines such increase is necessary to ensure the quality 
of the programs provided. 
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391 
‘‘(c) DEFINITION.—For the purpose of this section, the 
term ‘average per pupil expenditure’, used with respect to 
a State, means an amount equal to— 
‘‘(1) the sum of the aggregate current expendi-
tures of all the local educational agencies in the State, 
plus any direct current expenditures by the State for 
the operation of such agencies, without regard to the 
sources of funds from which such local or State ex-
penditures were made, during the second fiscal year 
preceding the fiscal year for which the computation is 
made; divided by 
‘‘(2) the aggregate number of children who were 
included in average daily attendance for whom such 
agencies provided free public education during such 
preceding fiscal year. 
‘‘(d) SCHOOLS OPERATED OR SUPPORTED BY THE BU-
REAU OF INDIAN EDUCATION.— 
‘‘(1) IN GENERAL.—Subject to subsection (e), in 
addition to the grants awarded under subsection (a), 
the Secretary shall allocate to the Secretary of the In-
terior an amount equal to the product of— 
‘‘(A) the total number of Indian children 
enrolled in schools that are operated by— 
‘‘(i) the Bureau of Indian Education; 
or 
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392 
‘‘(ii) an Indian tribe, or an organiza-
tion controlled or sanctioned by an Indian 
tribal government, for the children of that 
tribe under a contract with, or grant from, 
the Department of the Interior under the 
Indian Self-Determination Act or the Trib-
ally Controlled Schools Act of 1988; and 
‘‘(B) the greater of— 
‘‘(i) the average per pupil expenditure 
of the State in which the school is located; 
or 
‘‘(ii) 80 percent of the average per 
pupil expenditure of all the States. 
‘‘(2) SPECIAL RULE.—Any school described in 
paragraph (1)(A) that wishes to receive an allocation 
under this subpart shall submit an application in ac-
cordance with section 5114, and shall otherwise be 
treated as a local educational agency for the purpose 
of this subpart, except that such school shall not be 
subject to section 5114(c)(5) or section 5119. 
‘‘(e) RATABLE REDUCTIONS.—If the sums appro-
priated for any fiscal year to carry out this subpart are 
insufficient to pay in full the amounts determined for local 
educational agencies under subsection (a)(1) and for the 
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Secretary of the Interior under subsection (d), each of those 
amounts shall be ratably reduced. 
‘‘SEC. 5114. APPLICATIONS. 
‘‘(a) APPLICATION
REQUIRED.—Each local edu-
cational agency that desires to receive a grant under this 
subpart shall submit an application to the Secretary at 
such time, in such manner, and containing such informa-
tion as the Secretary may reasonably require. 
‘‘(b) COMPREHENSIVE PROGRAM REQUIRED.—Each 
application submitted under subsection (a) shall include a 
description of a comprehensive program for meeting the 
needs of Indian and Alaska Native children served by the 
local educational agency, including the language and cul-
tural needs of the children, that— 
‘‘(1) describes how the comprehensive program 
will offer programs and activities to meet the cul-
turally related academic needs of American Indian 
and Alaska Native students; 
‘‘(2)(A) is consistent with the State, tribal, and 
local plans submitted under other provisions of this 
Act; and 
‘‘(B) includes academic content and student aca-
demic achievement goals for such children, and bench-
marks for attaining such goals, that are based on 
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394 
State academic content and student academic achieve-
ment standards adopted under title I for all children; 
‘‘(3) explains how the local educational agency 
will use the funds made available under this subpart 
to supplement other Federal, State, and local pro-
grams that serve such students; 
‘‘(4) demonstrates how funds made available 
under this subpart will be used for activities described 
in section 5115; 
‘‘(5) describes the professional development op-
portunities that will be provided, as needed, to ensure 
that— 
‘‘(A) teachers and other school professionals 
who are new to the Indian or Alaska Native 
community are prepared to work with Indian 
and Alaska Native children; 
‘‘(B) all teachers who will be involved in 
programs assisted under this subpart have been 
properly trained to carry out such programs; 
and 
‘‘(C) those family members of Indian and 
Alaska Native children and representatives of 
tribes who are on the committee described in 
(c)(5) will participate in the planning of profes-
sional development materials; 
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395 
‘‘(6) describes how the local educational agen-
cy— 
‘‘(A) will periodically assess the progress of 
all Indian children enrolled in the schools of the 
local educational agency, including Indian chil-
dren who do not participate in programs as-
sisted under this subpart, in meeting the goals 
described in paragraph (2); 
‘‘(B) will provide the results of each assess-
ment referred to in subparagraph (A) to— 
‘‘(i) the committee described in sub-
section (c)(5); 
‘‘(ii) the community served by the local 
educational agency; and 
‘‘(iii) the tribes whose children are 
served by the local educational agency; and 
‘‘(C) is responding to findings of any pre-
vious assessments that are similar to the assess-
ments described in subparagraph (A); and 
‘‘(7) explicitly delineates— 
‘‘(A) a formal, collaborative process that the 
local educational agency used to directly involve 
tribes, Indian organizations, or Alaska Native 
Organizations in the development of the com-
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396 
prehensive programs and the results of such 
process; and 
‘‘(B) how the local educational agency plans 
to ensure that tribes, Indian organizations, or 
Alaska Native Organizations will play an active, 
meaningful, and ongoing role in the functioning 
of the comprehensive programs. 
‘‘(c) 
ASSURANCES.—Each 
application 
submitted 
under subsection (a) shall include assurances that— 
‘‘(1) the local educational agency will use funds 
received under this subpart only to supplement the 
funds that, in the absence of the Federal funds made 
available under this subpart, such agency would make 
available for services described in this subsection, and 
not to supplant such funds; 
‘‘(2) the local educational agency will use funds 
received under this subpart only for activities de-
scribed and authorized under this subpart; 
‘‘(3) the local educational agency will prepare 
and submit to the Secretary such reports, in such 
form and containing such information, as the Sec-
retary may require to— 
‘‘(A) carry out the functions of the Sec-
retary under this subpart; 
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397 
‘‘(B) determine the extent to which activi-
ties carried out with funds provided to the local 
educational agency under this subpart are effec-
tive in improving the educational achievement of 
Indian and Alaska Native students served by 
such agency; and 
‘‘(C) determine the extent to which such ac-
tivities address the unique cultural, language, 
and educational needs of Indian students; 
‘‘(4) the program for which assistance is 
sought— 
‘‘(A) is based on a comprehensive local as-
sessment and prioritization of the unique edu-
cational and culturally related academic needs of 
the American Indian and Alaska Native students 
for whom the local educational agency is pro-
viding an education; 
‘‘(B) will use the best available talents and 
resources, including individuals from the Indian 
or Alaska Native community; and 
‘‘(C) was developed by such agency in open 
consultation with the families of Indian or Alas-
ka Native children, Indian or Alaska Native 
teachers, Indian or Alaska Native students from 
secondary schools, and representatives of tribes, 
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398 
Indian organizations, or Alaska Native Organi-
zations in the community including through 
public hearings held by such agency to provide 
to the individuals described in this subparagraph 
a full opportunity to understand the program 
and to offer recommendations regarding the pro-
gram; 
‘‘(5) the local educational agency developed the 
program with the participation and written approval 
of a committee— 
‘‘(A) that is composed of, and selected by— 
‘‘(i) family members of Indian and 
Alaska Native children that are attending 
the local educational agency’s schools; 
‘‘(ii) teachers in the schools; and 
‘‘(iii) Indian and Alaska Native stu-
dents attending secondary schools of the 
agency; 
‘‘(B) a majority of whose members are fam-
ily members of Indian and Alaska Native chil-
dren that are attending the local educational 
agency’s schools; 
‘‘(C) that has set forth such policies and 
procedures, including policies and procedures re-
lating to the hiring of personnel, as will ensure 
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399 
that the program for which assistance is sought 
will be operated and evaluated in consultation 
with, and with the involvement of, parents of the 
children, and representatives of the area, to be 
served; 
‘‘(D) with respect to an application describ-
ing a schoolwide program in accordance with 
section 5115(c), that has— 
‘‘(i) reviewed in a timely fashion the 
program; 
‘‘(ii) determined that the program will 
not diminish the availability of culturally 
related activities for American Indian and 
Alaska Native students; and 
‘‘(iii) will directly enhance the edu-
cational experience of American Indian and 
Alaska Native students; and 
‘‘(E) that has adopted reasonable bylaws for 
the conduct of the activities of the committee and 
abides by such bylaws; and 
‘‘(6) the local educational agency conducted ade-
quate outreach to family members to meet the require-
ments under subsection (c)(5). 
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400 
‘‘SEC. 5115. AUTHORIZED SERVICES AND ACTIVITIES. 
‘‘(a) GENERAL
REQUIREMENTS.—Each local edu-
cational agency that receives a grant under this subpart 
shall use the grant funds, in a manner consistent with the 
purpose specified in section 5111, for services and activities 
that— 
‘‘(1) are designed to carry out the comprehensive 
program of the local educational agency for Indian 
students, and described in the application of the local 
educational agency submitted to the Secretary under 
section 5114(a) solely for the services and activities 
described in such application; 
‘‘(2) are designed with special regard for the lan-
guage and cultural needs of the Indian students; and 
‘‘(3) supplement and enrich the regular school 
program of such agency. 
‘‘(b) PARTICULAR ACTIVITIES.—The services and ac-
tivities referred to in subsection (a) may include— 
‘‘(1) activities that support Native American 
language immersion programs and Native American 
language restoration programs, which may be taught 
by traditional leaders; 
‘‘(2) culturally related activities that support the 
program described in the application submitted by 
the local educational agency; 
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