Payments

(a) In general When making payments for grants awarded under this Act, the Secretary of Education shall comply with the following: (1) Make payment as required in full for those local educational agencies described in section 4(1) with no capacity to issue bonds. (2) Require those local educational agencies not described in paragraph (1) to pay a percentage of the total cost of the project supported with grant funds as follows: (A) For those local educational agencies with a learning opportunity threshold total percentage, as described in subparagraph (B)(i) of section 7003(b)(3) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703(b)(3))— (i) that is 80 percent or greater, such agencies shall pay a non-Federal share equal to 10 percent of the total cost of the project; (ii) that is less than 80 percent, but 50 percent or greater, such agencies shall pay a non-Federal share equal to 20 percent of the total cost of the project; and (iii) that is less than 50 percent, such agencies shall pay a non-Federal share equal to 25 percent of the total cost of the project. (B) For those local educational agencies eligible to receive a payment under section 7002 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7702) that are not described in paragraph (1) of section 4, such agencies shall pay a non-Federal share equal to 25 percent of the total cost of the project. (3) Make payment as required in full for those local educational agencies described in paragraph (1) or (2) of section 4, whose payment is $5,000,000 or less for the year in which they are to receive the grant. (4) Make payment to those local educational agencies described in paragraph (1) or (2) of section 4, whose payment is more than $5,000,000 for the year in which they are to receive the grant, after final drawings and specifications have been approved by the Secretary of Education and the construction contract has been entered into, in accordance with requirements as determined by the Secretary of Education and at such times and in such installments as may be reasonable. (b) Redistribution of payments Any funds paid to a local educational agency under this Act and not expended, by such a time as determined by the Secretary of Education, for the purposes for which such funds are paid shall be redistributed to make payments under section 7007(a) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7707(a)).