Formula grants to States

(a) Reservation of funds From the total amount appropriated under section 205 for a fiscal year, the Secretary shall reserve— (1) one-half of 1 percent for allotments for the outlying areas, to be distributed among those outlying areas on the basis of their relative need, as determined by the Secretary, in accordance with the purpose of this title; and (2) one-half of 1 percent for the Secretary of the Interior for programs under this part in schools operated or funded by the Bureau of Indian Education. (b) State allotments (1) In general From funds made available under section 205 for a fiscal year and not reserved under subsection (a), the Secretary shall allot to each State the sum of— (A) an amount that bears the same relationship to 20 percent of such funds for such fiscal year as the number of individuals aged 5 through 17 in the State, as determined by the Secretary on the basis of the most recent satisfactory data, bears to the number of such individuals in all such States, as so determined; and (B) an amount that bears the same relationship to 80 percent of such funds for such fiscal year as the number of individuals aged 5 through 17 from families with incomes below the poverty line in the State, as determined by the Secretary on the basis of the most recent satisfactory data, bears to the number of such individuals in all such States, as so determined. (2) Exception No State receiving an allotment under paragraph (1) may receive less than one-half of 1 percent of the total amount appropriated under 205 after the reservations under paragraphs (1) and (2) of subsection (a) for a fiscal year. (3) Ratable reduction If the funds described in paragraph (1) are insufficient to pay the full amounts that all States are eligible to receive under paragraph (1) for any fiscal year, the Secretary shall ratably reduce such amounts for such fiscal year. (4) Reallotment If a State does not receive an allotment, the Secretary shall reallot the amount of the allotment for such State to the remaining States in accordance with this subsection. (c) State plan (1) In general In order to receive an allotment under this section for any fiscal year, a State shall submit a plan to the Secretary, at such time and in such manner as the Secretary may reasonably require. (2) Contents Each plan described under paragraph (1) shall include, at a minimum, the following: (A) A description of how the State educational agency will use funds received under this title for State-level activities. (B) A description of how the activities carried out with funds under this title are expected to improve student achievement. (C) A description of how the State educational agency will work with local educational agencies and the communities of such agencies to develop, adopt, and implement innovative learning models. (D) Assurances that the State educational agency will— (i) review existing resources and programs across the State and coordinate any new plans and resources under this title with such resources and programs; (ii) monitor the implementation of activities under this title and provide technical assistance to local educational agencies in carrying out such activities; and (iii) provide for equitable access for all students to the activities supported under this title, including compliance with the requirements of all applicable Federal civil rights laws. (d) State use of funds (1) In general Except as provided under paragraph (3), a State that receives an allotment under subsection (b) for a fiscal year shall reserve not less than 95 percent of such allotment to make subgrants to local educational agencies for such fiscal year, as described in section 203. (2) State administration A State educational agency may use not more than 1 percent of the amount allotted to such State under subsection (b) for the administrative costs of carrying out such State educational agency’s responsibilities under this title. (3) State activities The State educational agency for a State that receives an allotment under subsection (b) may use funds not reserved under paragraphs (1) and (2) for activities and programs designed to meet the purposes of this title, which may include— (A) providing monitoring of, and training, technical assistance, and capacity building to, local educational agencies that receive subgrants under section 203; (B) identifying and eliminating State barriers to the development, implementation, and adoption of innovative learning models by local educational agencies and schools; and (C) supporting local educational agencies in adopting and implementing innovative learning models in schools. (e) Rule of construction Nothing in this section shall be construed to authorize the Secretary or any other officer or employee of the Federal Government to— (1) mandate, direct, or control the development, adoption, or implementation of any learning model by any State, local educational agency, or school; or (2) influence or incentivize the receipt of any grant, contract, or cooperative agreement the receipt of any priority or preference under such grant, contract, or cooperative agreement upon a State, local educational agency, or school’s adoption or implementation of any specific learning model, instructional content, curricula, or any program of instruction. (f) Supplement, not supplant Grant funds provided under this section shall be used to supplement, not supplant, other Federal or State funds made available to carry out activities related to the activities described in this section.