(E) in paragraph (4)(C) by striking ‘‘(A), 
(B), (C), and (D)’’ and inserting ‘‘(A) and 
(C)’’; 
(F) by redesignating paragraph (7) as 
paragraph (8); and 
(G) by inserting after paragraph (6) the 
following: 
‘‘(7) SPECIAL
RULE.—Notwithstanding para-
graphs (3)(C)(i)(I) and (3)(D)(ii)(II), a local edu-
cational agency is eligible to receive a grant under 
this subsection not to exceed $4,000,000 in any one 
fiscal year if such agency— 
‘‘(A) was eligible to receive a payment 
under section 8003 for the fiscal year prior to 
the year for which the application is made; and 
‘‘(B) has had an overall increase in enroll-
ment— 
‘‘(i) during the period between the end 
of the school year preceding the fiscal year 
for which the application is made and the 
beginning of the school year immediately 
preceding that school year; 
‘‘(ii) of not less than 100 students or 
10 percent (whichever is lower), are chil-
dren described in— 
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‘‘(I) subparagraphs (A), (B), (C), 
or (D) of section 8003(a)(1); or 
‘‘(II) subparagraphs (F) or (G) 
of section 8003(a)(1), but only to the 
extent such children are civilian de-
pendents of employees of the Depart-
ment of Defense; and 
‘‘(iii) that is the direct result of one or 
more of the following: 
‘‘(I) Base realignment and clo-
sure or global rebasing, as determined 
by the Secretary of Defense. 
‘‘(II) Force structure changes or 
force reductions. 
‘‘(III) An action initiated by the 
Secretary of Interior or head of an-
other Federal agency.’’. 
SEC. 6. STATE CONSIDERATION OF PAYMENTS IN PRO-
VIDING STATE AID. 
Section 8009 of that Act (20 U.S.C. 7709) is amend-
ed— 
(1) in subsection (b)(1) by inserting before the 
period at the end the following: ‘‘and for which the 
average per-pupil expenditure is equal to or greater 
than the average per-pupil expenditure of all the 
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States in the third fiscal year preceding the fiscal 
year for which the State is applying for equalization 
under this section’’; 
(2) in subsection (b)(2) by striking subpara-
graphs (A) and (B) and inserting the following: 
‘‘(A) STATES CURRENTLY QUALIFYING.— 
‘‘(i) IN
GENERAL.—For purposes of 
paragraph (1), a program of State aid for 
any State qualifying under this section for 
fiscal year 2006 equalizes expenditures 
among local educational agencies if, in the 
second fiscal year preceding the fiscal year 
for which the determination is made the 
amount of per-pupil expenditures made by, 
or per-pupil revenues available to, the local 
educational agency in the State with the 
highest such per-pupil expenditures or rev-
enues did not exceed the amount of such 
per-pupil expenditures made by, or per- 
pupil revenues available to, the local edu-
cational agency in the State with the low-
est such expenditures or revenues by more 
than 25 percent as calculated under clause 
(ii). 
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‘‘(ii) 
OTHER
FACTORS.—Notwith-
standing regulations in effect prior to the 
date of enactment of this subparagraph, in 
making a determination under this sub-
paragraph, the Secretary shall— 
‘‘(I) arrange all local educational 
agencies in the State by per-pupil ex-
penditures or revenues in descending 
order from the highest to the lowest; 
‘‘(II) using per-pupil expendi-
tures or revenues as the only criteria 
disregard 
those 
local 
educational 
agencies that are spending above the 
95th percentile and those spending 
below the 5th percentile; 
‘‘(III) identify the local edu-
cational agency at the 95th percentile 
and the local educational agency at 
the 5th percentile; 
‘‘(IV) subtract the amount of 
per-pupil expenditures or revenues of 
the local educational agency at the 
5th percentile from the amount of 
per-pupil expenditures or revenues of 
the local educational agency at the 
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95th percentile and divide the dif-
ference by the per-pupil expenditures 
or revenues of the local educational 
agency at the 5th percentile; and 
‘‘(V) take into account the extent 
to which a program of State aid re-
flects the additional cost of providing 
free public education in particular 
types of local educational agencies, 
such as those that are geographically 
isolated, or to particular types of stu-
dents, such as children with disabil-
ities. 
‘‘(B) NEW STATES APPLICANTS.— 
‘‘(i) IN
GENERAL.—For purposes of 
paragraph (1), a program of State aid for 
any State qualifying under this section 
after fiscal year 2006 equalizes expendi-
tures among local educational agencies if, 
in the second fiscal year preceding the fis-
cal year for which the determination is 
made, the amount of per-pupil expendi-
tures made by, or per-pupil revenues avail-
able to, the local educational agency in the 
State with the highest such per-pupil ex-
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penditures or revenues did not exceed the 
amount of such per-pupil expenditures 
made by, or per-pupil revenues available 
to, the local educational agency in the 
State with the lowest such expenditures or 
revenues by more than 10 percent as cal-
culated under clause (ii). 
‘‘(ii) 
OTHER
FACTORS.—Notwith-
standing regulations in effect prior to the 
date of the enactment of this subpara-
graph, in making a determination under 
this subparagraph, the Secretary shall— 
‘‘(I) arrange all local educational 
agencies in the State by per-pupil ex-
penditures or revenues in descending 
order from the highest to the lowest; 
‘‘(II) using per-pupil expendi-
tures or revenues as the only criteria 
disregard 
those 
local 
educational 
agencies that are spending above the 
95th percentile and those spending 
below the 5th percentile; 
‘‘(III) identify the local edu-
cational agency at the 95th percentile 
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and the local educational agency at 
the 5th percentile; 
‘‘(IV) subtract the amount of 
per-pupil expenditures or revenues of 
the local educational agency at the 
5th percentile from the amount of 
per-pupil expenditures or revenues of 
the local educational agency at the 
95th percentile and divide the dif-
ference by the per-pupil expenditures 
or revenues of the local educational 
agency at the 5th percentile; and 
‘‘(V) take into account the extent 
to which a program of State aid re-
flects the additional cost of providing 
free public education in particular 
types of local educational agencies, 
such as those that are geographically 
isolated, or to particular types of stu-
dents, such as children with disabil-
ities.’’; and 
(3) in subsection (d)(2)— 
(A) by striking ‘‘A State’’ and inserting 
the following: 
‘‘(A) IN GENERAL.—A State’’; and 
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(B) by adding at the end of the following: 
‘‘(B) STATES THAT ARE NOT EQUALIZED 
STATES.—A State that has not been approved 
as an equalized State under subsection (b) shall 
not consider funds received under section 8002 
or section 8003 of this title in any State for-
mula or place a limit or direct the use of such 
funds.’’. 
SEC. 7. DEFINITIONS. 
Section 8013 of that Act (20 U.S.C. 7713) is amend-
ed— 
(1) in paragraph (1) by striking ‘‘and Marine 
Corps’’ and inserting ‘‘Marine Corps, and Coast 
Guard’’; 
(2) in paragraph (4)— 
(A) in the first sentence thereof, by strik-
ing ‘‘part (A) of title I and title VI’’ and insert-
ing ‘‘title I and part A of title V’’; and 
(B) in the second sentence, by striking ‘‘be 
determined’’ and inserting ‘‘be made’’; 
(3) in paragraph (5)(A)(iii), by amending sub-
clauses (II) and (III) to read as follows: 
‘‘(II) used to provide housing for 
homeless children at closed military 
installations pursuant to section 501 
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of the McKinney-Vento Homeless As-
sistance Act (42 U.S.C. 11411); 
‘‘(III) used for affordable hous-
ing assisted under the Native Amer-
ican Housing Assistance and Self-De-
termination Act of 1996 (25 U.S.C. 
4101 et seq.);’’; 
(4) in paragraph (8)(A), by inserting commas 
before and after ‘‘and verified by’’; and 
(5) in paragraph (9)— 
(A) by amending subparagraph (A) to read 
as follows: 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term local educational 
agency— 
‘‘(i) means a board of education or 
other legally constituted local school au-
thority having administrative control and 
direction of free public education in a 
county, township, independent school dis-
trict, or other school district; and 
‘‘(ii) includes any State agency that 
directly operates and maintains facilities 
for providing free public education; 
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that, except for those local educational agencies 
determined to be eligible to receive a payment 
under section 8003 prior to the date of the en-
actment of the Fair Funding for Schools Act of 
2009, when submitting an application under 
this title for the first time on or after the date 
of the enactment of such Act, has the authority 
to tax and has boundaries as defined by appli-
cable State law for the purposes of levying such 
taxes, or has been granted the authority to re-
ceive an imputed tax from a city, county, town-
ship, or other general-purpose political subdivi-
sion of a State.’’; and 
(B) in subparagraph (B), by inserting a 
comma after ‘‘Secretary determines’’. 
SEC. 8. AUTHORIZATION OF APPROPRIATIONS. 
Section 8014 of that Act (20 U.S.C. 7714) is amend-
ed— 
(1) in subsection (a) by striking ‘‘$32,000,000 
for fiscal year 2000’’ and inserting ‘‘$75,000,000 for 
fiscal year 2010’’; 
(2) in subsection (b) by striking ‘‘$809,400,000 
for fiscal year 2000’’ and inserting ‘‘$1,225,000,000 
for fiscal year 2010’’; 
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(3) in subsection (c) by striking ‘‘$50,000,000 
for fiscal year 2000’’ and inserting ‘‘$55,000,000 for 
fiscal year 2010’’; 
(4) by redesignating subsection (e) as (d) and, 
in that subsection, by striking ‘‘$10,052,000’’ and 
all that follows through ‘‘and such sums’’ and insert-
ing ‘‘$150,000,000 for fiscal year 2010 and such 
sums’’; 
(5) by redesignating subsection (f) as (e) and, 
in that subsection, by striking ‘‘$5,000,000 for fiscal 
year 2000’’ and inserting ‘‘$10,000,000 for fiscal 
year 2010’’; and 
(6) by adding at the end of the following: 
‘‘(f) ALLOCATION OF DOLLARS FROM PREVIOUS FIS-
CAL YEARS.—When final payments are made for a fiscal 
year the Secretary shall add any remaining funds to those 
funds appropriated for such section for the next fiscal year 
for the purpose of making payments subject to the provi-
sions of the applicable section.’’. 
SEC. 9. ADDITIONAL AND CONFORMING AMENDMENTS. 
(a) Subpart 20 (20 U.S.C. 7281 et seq.) of part D 
of title V of that Act (relating to additional assistance for 
certain local educational agencies impacted by Federal 
property acquisition) is repealed. 
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(b) Title VIII of Elementary and Secondary Edu-
cation Act (20 U.S.C. 7701 et seq.) is further amended— 
(1) in section 8004 (20 U.S.C. 7704)— 
(A) in subsection (e)(1)(B)(i), by striking 
‘‘involved, or if’’ and inserting ‘‘involved or, if’’; 
(B) in subsection (f), by striking ‘‘upon’’ 
and inserting ‘‘on’’; 
(2) in section 8008(a) (20 U.S.C. 7708(a)), by 
striking ‘‘section 8014(f)’’ and inserting ‘‘section 
8014(e)’’; 
(3) in section 8010 (20 U.S.C. 7710)— 
(A) in subsection (b), by striking out ‘‘re-
quire’’ and inserting in lieu thereof ‘‘need’’; and 
(B) in subsection (c)(1)— 
(i) in subparagraph (A), by striking 
‘‘paragraph (3)’’ and inserting ‘‘paragraph 
(2)’’; and 
(ii) in subparagraph (B), by striking 
‘‘paragraph (3)’’ and inserting ‘‘paragraph 
(2)’’; and 
(4) in section 8011(a) (20 U.S.C. 7711 (a)), by 
striking ‘‘or under’’ and all that follows through ‘‘of 
1994)’’. 
Æ 
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