 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. 8294. Competitive grant program authorized


(a) In general

    The Secretary is authorized to award grants to eligible local 
educational agencies to enable the local educational agencies 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.

(b) Eligibility

    A local educational agency shall be eligible to receive a grant 
under 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) Amount

                           (1) In general

        The Secretary shall award a grant to a local educational agency 
    under this section for a fiscal year in an amount equal to the 
    amount determined under paragraph (2) for the fiscal year minus the 
    total amount received under the provisions of law described under 
    section 8293(c) of this title for the fiscal year.

                          (2) Determination

        The amount referred to in paragraph (1) is equal to $100 
    multiplied by the total number of students in excess of 50 students 
    that are in average daily attendance at the schools served by the 
    local educational agency, plus $20,000, except that the amount may 
    not exceed $60,000.

                      (3) Census determination

        (A) In general

            Each local educational agency desiring a grant under this 
        section shall determine for each year the number of kindergarten 
        through grade 12 students in average daily attendance at the 
        schools served by the local educational agency during the period 
        beginning or \1\ the first day of classes and ending on December 
        1.
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    \1\ So in original. Probably should be ``on''.
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        (B) Submission

            Each local educational agency shall submit the number 
        described in subparagraph (A) to the Secretary not later than 
        March 1 of each year.

                             (4) Penalty

        If the Secretary determines that a local educational agency has 
    knowingly submitted false information under paragraph (3) for the 
    purpose of gaining additional funds under this section, then the 
    local educational agency shall be fined an amount equal to twice the 
    difference between the amount the local educational agency received 
    under this section, and the correct amount the local educational 
    agency would have received under this section if the agency had 
    submitted accurate information under paragraph (3).

(d) Disbursal

    The Secretary shall disburse the funds awarded to a local 
educational agency under this section for a fiscal year not later than 
July 1 of that 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.

(Pub. L. 89-10, title X, Sec. 10975, as added Pub. L. 106-554, 
Sec. 1(a)(1) [title IX, Sec. 901], Dec. 21, 2000, 114 Stat. 2763, 2763A-
90.)


                            Prior Provisions

    A prior section 8294, Pub. L. 89-10, title X, Sec. 10974, as added 
Pub. L. 103-382, title I, Sec. 101, Oct. 20, 1994, 108 Stat. 3854, 
related to fund usage, prior to the general amendment of this subpart by 
Pub. L. 106-554.
    A prior section 10975 of Pub. L. 89-10 was classified to section 
8295 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 section 8295 of this title.
