 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
             SUBCHAPTER X--PROGRAMS OF NATIONAL SIGNIFICANCE
 
              Part J--Urban and Rural Education Assistance
 
                  subpart 2--rural education initiative
 
Sec. 8293. Formula grant program authorized


(a) Alternative uses

                           (1) In general

        Notwithstanding any other provision of law, an eligible local 
    educational agency may use the applicable funding, that the agency 
    is eligible to receive from the State educational agency for a 
    fiscal year, to carry out local activities authorized in part A of 
    subchapter I of this chapter, section 6650(b) of this title, section 
    6844 of this title, or section 7116 of this title.

                          (2) Notification

        An eligible local educational agency shall notify the State 
    educational agency of the local educational agency's intention to 
    use the applicable funding in accordance with paragraph (1) not 
    later than a date that is established by the State educational 
    agency for the notification.

(b) Eligibility

    A local educational agency shall be eligible to use the applicable 
funding in accordance with subsection (a) of this section if--
        (1) the total number of students in average daily attendance at 
    all of the schools served by the local educational agency is less 
    than 600; and
        (2) all of the schools served by the local educational agency 
    are designated with a School Locale Code of 7 or 8, as determined by 
    the Secretary of Education.

(c) Applicable funding

    In this section, the term ``applicable funding'' means funds 
provided under each of subchapters II, IV, and VI of this chapter, 
except for funds made available under section 321 of the Department of 
Education Appropriations Act, 2001.

(d) Disbursal

    Each State educational agency that receives applicable funding for a 
fiscal year shall disburse the applicable funding to local educational 
agencies for alternative uses under this section for the fiscal year at 
the same time that the State educational agency disburses the applicable 
funding to local educational agencies that do not intend to use the 
applicable funding for such alternative uses for the fiscal year.

(e) Supplement not supplant

    Funds made available under this section shall be used to supplement 
and not supplant any other State or local education funds.

(f) Special rule

    References in Federal law to funds for the provisions of law set 
forth in subsection (c) of this section may be considered to be 
references to funds for this section.

(g) Construction

    Nothing in this subpart shall be construed to prohibit a local 
educational agency that enters into cooperative arrangements with other 
local educational agencies for the provision of special, compensatory, 
or other education services pursuant to State law or a written agreement 
from entering into similar arrangements for the use or the coordination 
of the use of the funds made available under this subpart.

(Pub. L. 89-10, title X, Sec. 10974, as added Pub. L. 106-554, 
Sec. 1(a)(1) [title IX, Sec. 901], Dec. 21, 2000, 114 Stat. 2763, 2763A-
89.)

                       References in Text

    Section 321 of the Department of Education Appropriations Act, 2001, 
referred to in subsec. (c), is section Sec. 1(a)(1) [title III, 
Sec. 321] of Pub. L 106-554, Dec. 21, 2000, 114 Stat. 2763, 2763A-50, 
which is not classified to the Code.


                            Prior Provisions

    A prior section 8293, Pub. L. 89-10, title X, Sec. 10973, as added 
Pub. L. 103-382, title I, Sec. 101, Oct. 20, 1994, 108 Stat. 3854, 
authorized rural school grants, prior to the general amendment of this 
subpart by Pub. L. 106-554.
    A prior section 10974 of Pub. L. 89-10 was classified to section 
8294 of this title, prior to the general amendment of this subpart by 
Pub. L. 106-554.

                  Section Referred to in Other Sections

    This section is referred to in sections 8294, 8295 of this title.
