 
 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
    SUBCHAPTER I--HELPING DISADVANTAGED CHILDREN MEET HIGH STANDARDS
 
     Part B--William F. Goodling Even Start Family Literacy Programs
 
Sec. 6364. Uses of funds


(a) In general

    In carrying out an Even Start program under this part, a recipient 
of funds under this part shall use such funds to pay the Federal share 
of the cost of providing intensive family literacy services that involve 
parents and children, from birth through age seven, in a cooperative 
effort to help parents become full partners in the education of their 
children and to assist children in reaching their full potential as 
learners.

(b) Federal share limitation

                           (1) In general

        (A) Except as provided in paragraph (2), the Federal share under 
    this part may not exceed--
            (i) 90 percent of the total cost of the program in the first 
        year that such program receives assistance under this part or 
        its predecessor authority;
            (ii) 80 percent in the second such year;
            (iii) 70 percent in the third such year;
            (iv) 60 percent in the fourth such year;
            (v) 50 percent in the fifth, sixth, seventh, and eighth such 
        years; and
            (vi) 35 percent in any subsequent such year.

        (B) The remaining cost of a program assisted under this part may 
    be provided in cash or in kind, fairly evaluated and may be obtained 
    from any source, including other Federal funds under this chapter.

                             (2) Waiver

        The State educational agency may waive, in whole or in part, the 
    cost-sharing requirement described in paragraph (1) for an eligible 
    entity if such entity--
            (A) demonstrates that such entity otherwise would not be 
        able to participate in the program assisted under this part; and
            (B) negotiates an agreement with the State educational 
        agency with respect to the amount of the remaining cost to which 
        the waiver will be applicable.

                           (3) Prohibition

        Federal funds provided under this part may not be used for the 
    indirect costs of a program assisted under this part, except that 
    the Secretary may waive this paragraph if an eligible recipient of 
    funds reserved under section 6362(a)(1)(C) of this title 
    demonstrates to the Secretary's satisfaction that such recipient 
    otherwise would not be able to participate in the program assisted 
    under this part.

(c) Use of funds for family literacy services

                           (1) In general

        From funds reserved under section 6363(a) of this title, a State 
    may use a portion of such funds to assist eligible entities 
    receiving a subgrant under section 6363(b) of this title in 
    improving the quality of family literacy services provided under 
    Even Start programs under this part, except that in no case may a 
    State's use of funds for this purpose for a fiscal year result in a 
    decrease from the level of activities and services provided to 
    program participants in the preceding year.

                            (2) Priority

        In carrying out paragraph (1), a State shall give priority to 
    programs that were of low quality, as evaluated based on the 
    indicators of program quality developed by the State under section 
    6369a of this title.

       (3) Technical assistance to help local programs raise 
                              additional funds

        In carrying out paragraph (1), a State may use the funds 
    referred to in such paragraph to provide technical assistance to 
    help local programs of demonstrated effectiveness to access and 
    leverage additional funds for the purpose of expanding services and 
    reducing waiting lists, including requesting and applying for non-
    Federal resources.

                (4) Technical assistance and training

        Assistance under paragraph (1) shall be in the form of technical 
    assistance and training, provided by a State through a grant, 
    contract, or cooperative agreement with an entity that has 
    experience in offering high quality training and technical 
    assistance to family literacy providers.

(Pub. L. 89-10, title I, Sec. 1204, as added Pub. L. 103-382, title I, 
Sec. 101, Oct. 20, 1994, 108 Stat. 3580; amended Pub. L. 104-134, title 
I, Sec. 101(b) [title II, Sec. 2755(a)], Apr. 26, 1996, 110 Stat. 1321-
77, 1321-151; renumbered title I, Pub. L. 104-140, Sec. 1(a), May 2, 
1996, 110 Stat. 1327; Pub. L. 106-113, div. B, Sec. 1000(a)(4) [title 
III, Sec. 306(a)], Nov. 29, 1999, 113 Stat. 1535, 1501A-260; Pub. L. 
106-554, Sec. 1(a)(4) [div. B, title XVI, Sec. 1604(h)], Dec. 21, 2000, 
114 Stat. 2763, 2763A-330.)


                               Amendments

    2000--Subsec. (a). Pub. L. 106-554, Sec. 1(a)(4) [div. B, title XVI, 
Sec. 1604(h)(1)], substituted ``family literacy services'' for ``family-
centered education programs''.
    Subsec. (c). Pub. L. 106-554, Sec. 1(a)(4) [div. B, title XVI, 
Sec. 1604(h)(2)], added subsec. (c).
    1999--Subsec. (b)(1)(A)(v), (vi). Pub. L. 106-113 added cls. (v) and 
(vi) and struck out former cl. (v) which read as follows: ``50 percent 
in any subsequent such year.''
    1996--Subsec. (a). Pub. L. 104-134 inserted ``intensive'' after 
``cost of providing''.

                  Section Referred to in Other Sections

    This section is referred to in section 6368 of this title.
