 
 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
    SUBCHAPTER I--HELPING DISADVANTAGED CHILDREN MEET HIGH STANDARDS
 
 Part A--Improving Basic Programs Operated by Local Educational Agencies
 
                         subpart 2--allocations
 
Sec. 6331. Grants for outlying areas and Secretary of the 
        Interior
        

(a) Reservation of funds

    From the amount appropriated for payments to States for any fiscal 
year under section 6302(a) of this title, the Secretary shall reserve a 
total of 1 percent to provide assistance to--
        (1) the outlying areas on the basis of their respective need for 
    such assistance according to such criteria as the Secretary 
    determines will best carry out the purpose of this part; and
        (2) the Secretary of the Interior in the amount necessary to 
    make payments pursuant to subsection (c) of this section.

(b) Assistance to outlying areas

                           (1) In general

        From amounts made available under subsection (a) of this section 
    in each fiscal year the Secretary shall make grants to local 
    educational agencies in the outlying areas (other than the outlying 
    areas assisted under paragraph (3)).

                       (2) Competitive grants

        (A) The Secretary shall reserve $5,000,000 from the amounts made 
    available under subsection (a) of this section in each fiscal year 
    to award grants on a competitive basis, to local educational 
    agencies in the Federated States of Micronesia, the Republic of the 
    Marshall Islands, and the Republic of Palau. The Secretary shall 
    award such grants according to the recommendations of the Pacific 
    Region Educational Laboratory which shall conduct a competition for 
    such grants.
        (B) Except as provided in subparagraph (D), grant funds awarded 
    under this part only may be used for programs described in this 
    chapter, including teacher training, curriculum development, 
    instructional materials, or general school improvement and reform.
        (C) Grant funds awarded under this paragraph only may be used to 
    provide direct educational services.
        (D) The Secretary may provide 5 percent of the amount made 
    available for grants under this paragraph to pay the administrative 
    costs of the Pacific Region Educational Laboratory regarding 
    activities assisted under this paragraph.

(c) Allotment to Secretary of the Interior

                           (1) In general

        The amount allotted for payments to the Secretary of the 
    Interior under subsection (a)(2) of this section for any fiscal year 
    shall be, as determined pursuant to criteria established by the 
    Secretary, the amount necessary to meet the special educational 
    needs of--
            (A) Indian children on reservations served by elementary and 
        secondary schools for Indian children operated or supported by 
        the Department of the Interior; and
            (B) out-of-State Indian children in elementary and secondary 
        schools in local educational agencies under special contracts 
        with the Department of the Interior.

                            (2) Payments

        From the amount allotted for payments to the Secretary of the 
    Interior under subsection (a)(2) of this section, the Secretary of 
    the Interior shall make payments to local educational agencies, upon 
    such terms as the Secretary determines will best carry out the 
    purposes of this part, with respect to out-of-State Indian children 
    described in paragraph (1). The amount of such payment may not 
    exceed, for each such child, the greater of--
            (A) 40 percent of the average per pupil expenditure in the 
        State in which the agency is located; or
            (B) 48 percent of such expenditure in the United States.

(Pub. L. 89-10, title I, Sec. 1121, as added Pub. L. 103-382, title I, 
Sec. 101, Oct. 20, 1994, 108 Stat. 3561.)

                  Section Referred to in Other Sections

    This section is referred to in sections 6895, 8801 of this title.
