 
 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
                     SUBCHAPTER V--PROMOTING EQUITY
 
          Part C--Assistance To Address School Dropout Problems
 
Sec. 7263. Grants to local educational agencies


(a) Allotment to categories of local educational agencies

    From the amount appropriated under section 7268 of this title for 
any fiscal year, the Secretary shall first reserve not more than 
$2,000,000 for the purposes of evaluating programs carried out with 
assistance under this part in accordance with section 8941 of this 
title. From the remaining amount, the Secretary shall allot the 
following percentages to each of the following categories of local 
educational agencies:
        (1) Local educational agencies administering schools with a 
    total enrollment of 100,000 or more elementary and secondary school 
    students shall be allotted 25 percent of such remaining amount.
        (2) Local educational agencies administering schools with a 
    total enrollment of at least 20,000 but less than 100,000 elementary 
    and secondary school students shall be allotted 40 percent of such 
    remaining amount.
        (3) Local educational agencies administering schools with a 
    total enrollment of less than 20,000 elementary and secondary school 
    students shall be allotted 30 percent of such remaining amount. 
    Grants may be made under this paragraph to educational service 
    agencies and consortia of not more than 5 local educational agencies 
    in any case in which the total enrollment of the largest such local 
    educational agency is less than 20,000 elementary and secondary 
    students. Such agencies and consortia may also apply for assistance 
    under this part in conjunction with the State educational agency. 
    Not less than 20 percent of funds available under this paragraph 
    shall be awarded to local educational agencies administering schools 
    with a total enrollment of less than 2,000 elementary and secondary 
    school students.
        (4) Community-based organizations shall be allotted 5 percent of 
    such remaining amount. Grants under this paragraph shall be made 
    after consultation between the community-based organization and the 
    local educational agency that is to benefit from such a grant.

(b) Special consideration

                           (1) In general

        The Secretary shall give special consideration to awarding funds 
    available for each category described in paragraphs (1), (2), and 
    (3) of subsection (a) of this section to local educational agencies 
    participating in an educational partnership.

                    (2) Educational partnerships

        For the purpose of this part the term ``educational 
    partnerships'' means a partnership between--
            (A) a local educational agency; and
            (B) a business concern or business organization, community-
        based organization, nonprofit private organization, institution 
        of higher education, State educational agency, State or local 
        public agency, private industry council (established under the 
        Job Training Partnership Act), museum, library, or educational 
        television or broadcasting station.

(c) Award of grant

                           (1) In general

        From the amount allotted for any fiscal year to a category of 
    local educational agencies under subsection (a) of this section, the 
    Secretary shall award as many grants as practicable within each such 
    category to local educational agencies and educational partnerships 
    whose applications have been approved by the Secretary for such 
    fiscal year under section 7264 \1\ of this title and whose 
    applications propose a program of sufficient size, scope, and 
    quality to be effective.
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    \1\ See References in Text note below.
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                        (2) Additional funds

        Any local educational agency or educational partnership that has 
    received a grant under this part shall be eligible for additional 
    funds as provided under subsection (d) of this section.

                      (3) Terms and conditions

        Grants under this part shall be made under such terms and 
    conditions as the Secretary shall prescribe.

(d) Use of funds when not fully allotted to categories under subsection 
        (a)

                           (1) In general

        Whenever the Secretary determines that the full amount of the 
    sums allotted under any category set forth under subsection (a) of 
    this section will not be required for applications of the local 
    educational agencies in the case of categories described in 
    paragraphs \2\ (1), (2), or (3) of subsection (a) of this section, 
    the Secretary shall make the amount not so required available to 
    another category under subsection (a) of this section. In carrying 
    out the provisions of this subsection, the Secretary shall assure 
    that the transfer of amounts from one category to another is made to 
    a category in which there is the greatest need for funds.
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    \2\ So in original. Probably should be ``paragraph''.
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                           (2) Peer review

        In order to transfer funds under this subsection, the Secretary 
    shall use a peer review process to determine that such excess funds 
    are not needed to fund projects in particular categories and shall 
    prepare a list of the categories in which funds were not fully 
    expended and the reasons therefor, and make such list available to 
    local educational agencies and educational partnerships upon 
    request. The Secretary may use the peer review process to determine 
    grant recipients of funds transferred in accordance with this 
    subsection.

(e) Federal share

                          (1) Federal share

        The Federal share of a grant under this part may not exceed--
            (A) 90 percent of the total cost of a project for the first 
        year for which the project receives assistance under this part; 
        and
            (B) 75 percent of such cost in each such succeeding fiscal 
        year.

                         (2) Remaining costs

        The remaining cost of a project that receives assistance under 
    this part may be paid from any source other than funds made 
    available under this part, except that not more than 10 percent of 
    the remaining cost in any fiscal year may be provided from Federal 
    sources other than this part.

                        (3) Non-Federal share

        The share of payments from sources other than funds made 
    available under this part may be in cash or in kind fairly 
    evaluated, including plant, equipment or services.

(Pub. L. 89-10, title V, Sec. 5303, as added Pub. L. 103-382, title I, 
Sec. 101, Oct. 20, 1994, 108 Stat. 3701.)

                       References in Text

    The Job Training Partnership Act, referred to in subsec. (b)(2)(B), 
is Pub. L. 97-300, Oct. 13, 1982, 96 Stat. 1322, as amended, which was 
classified generally to chapter 19 (Sec. 1501 et seq.) of Title 29, 
Labor, and was repealed by Pub. L. 105-220, title I, Sec. 199(b)(2), 
Aug. 7, 1998, 112 Stat. 1059, effective July 1, 2000. Pursuant to 
section 2940(b) of Title 29, references to a provision of the Job 
Training Partnership Act, effective Aug. 7, 1998, are deemed to refer to 
that provision or the corresponding provision of the Workforce 
Investment Act of 1998, Pub. L. 105-220, Aug. 7, 1998, 112 Stat. 936, 
and effective July 1, 2000, are deemed to refer to the corresponding 
provision of the Workforce Investment Act of 1998. For complete 
classification of the Job Training Partnership Act to the Code, see 
Tables. For complete classification of the Workforce Investment Act of 
1998 to the Code, see Short Title note set out under section 9201 of 
this title and Tables.
    Section 7264 of this title, referred to in subsec. (c)(1), was in 
the original ``section 5304'', meaning section 5304 of Pub. L. 89-10, 
which was translated as reading section 5404 of that Act to reflect the 
probable intent of Congress, because Pub. L. 89-10 does not contain a 
section 5304, but does contain a section 5404 relating to applications 
for grants under this part.

                  Section Referred to in Other Sections

    This section is referred to in sections 7264, 7266 of this title.
