SEC. 1014
GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY OF THE INTERIOR
Section Summary
ESSA Update
SEC. 1014. GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY OF THE INTERIOR.
Section 1121 (20 U.S.C. 6331) is amended to read as follows:
``SEC. 1121. GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY OF
THE INTERIOR.
``(a) Reservation of Funds.--Subject to subsection (e), from the
amount appropriated for payments to States for any fiscal year under
section 1002(a), the Secretary shall--
``(1) reserve 0.4 percent to provide assistance to the
outlying areas in accordance with subsection (b); and
``(2) reserve 0.7 percent to provide assistance to the
Secretary of the Interior in accordance with subsection (d).
``(b) Assistance to Outlying Areas.--
``(1) Funds reserved.--From the amount made available for
any fiscal year under subsection (a)(1), the Secretary shall--
``(A) first reserve $1,000,000 for the Republic of
Palau, until Palau enters into an agreement for
extension of United States educational assistance under
the Compact of Free Association, and subject to such
terms and conditions as the Secretary may establish,
except that Public Law 95-134, permitting the
consolidation of grants, shall not apply; and
``(B) use the remaining funds to award grants to the
outlying areas in accordance with paragraphs (2) through
(5).
``(2) Amount of grants.--The Secretary shall allocate the
amount available under paragraph (1)(B) to the outlying areas in
proportion to their relative numbers of children, aged 5 to 17,
inclusive, from families below the poverty level, on the basis
of the most recent satisfactory data available from the
Department of Commerce.
``(3) Hold-harmless amounts.--For each fiscal year, the
amount made available to each outlying area under this
subsection shall be--
``(A) not less than 95 percent of the amount made
available for the preceding fiscal year if the number of
children counted under paragraph (2) is not less than 30
percent of the total number of children aged 5 to 17
years, inclusive, in the outlying area;
``(B) not less than 90 percent of the amount made
available for the preceding fiscal year if the
percentage
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described in subparagraph (A) is between 15 percent and
30 percent; and
``(C) not less than 85 percent of the amount made
available for the preceding fiscal year if the
percentage described in subparagraph (A) is below 15
percent.
``(4) Ratable reductions.--If the amount made available
under paragraph (1)(B) for any fiscal year is insufficient to
pay the full amounts that the outlying areas are eligible to
receive under paragraphs (2) and (3) for that fiscal year, the
Secretary shall ratably reduce those amounts.
``(5) Uses.--Grant funds awarded under paragraph (1)(A) may
be used only--
``(A) for programs described in this Act, including
teacher training, curriculum development, instructional
materials, or general school improvement and reform; and
``(B) to provide direct educational services that
assist all students with meeting the challenging State
academic standards.
``(c) Definitions.--For the purpose of this section, the term
`outlying area' means the United States Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern Mariana Islands.
``(d) Allotment to the Secretary of the Interior.--
``(1) In general.--The amount allotted for payments to the
Secretary of the Interior under subsection (a)(2) for any fiscal
year shall be used, in accordance with such criteria as the
Secretary may establish, to meet the unique educational needs
of--
``(A) Indian children on reservations served by
elementary schools and secondary schools for Indian
children operated or supported by the Department of the
Interior; and
``(B) out-of-State Indian children in elementary
schools 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), the
Secretary of the Interior shall make payments to local
educational agencies, on 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.
``(e) Limitation on Applicability.--If, by reason of the application
of subsection (a) for any fiscal year, the total amount available for
allocation to all States under this part would be less than the amount
allocated to all States for fiscal year 2016 under this part, the
Secretary shall provide assistance to the outlying areas and the
Secretary of the Interior in accordance with this section, as in effect
on the day before the date of enactment of the Every Student Succeeds
Act.''.
NCLB Text
``SEC. 1121. <<NOTE: 20 USC 6331.>> GRANTS FOR THE OUTLYING AREAS AND
THE SECRETARY OF THE INTERIOR.
``(a) Reservation of Funds.--From the amount appropriated for
payments to States for any fiscal year under section 1002(a) and
1125A(f), the Secretary shall reserve a total of 1 percent to provide
assistance to--
``(1) the outlying areas in the amount determined in
accordance with subsection (b); and
``(2) the Secretary of the Interior in the amount necessary
to make payments pursuant to subsection (d).
``(b) Assistance to Outlying Areas.--
``(1) Funds reserved.--From the amount made available for
any fiscal year under subsection (a), the Secretary shall award
grants to local educational agencies in the outlying areas.
``(2) Competitive grants.--Until each appropriate outlying
area enters into an agreement for extension of United States
educational assistance under the Compact of Free Association
after the date of enactment of the No Child Left Behind Act of
2001, the Secretary shall carry out the competition described
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in paragraph (3), except that the amount reserved to carry out
such competition shall not exceed $5,000,000.
``(3) Limitation for competitive grants.--
``(A) Competitive grants.--The Secretary shall use
funds described in paragraph (2) to award grants to the
outlying areas and freely associated States to carry out
the purposes of this part.
``(B) Award basis.--The Secretary shall award grants
under subparagraph (A) on a competitive basis, taking
into consideration the recommendations of the Pacific
Region Educational Laboratory in Honolulu, Hawaii.
``(C) Uses.--Except as provided in subparagraph (D),
grant funds awarded under this paragraph may be used
only--
``(i) for programs described in this Act,
including teacher training, curriculum
development, instructional materials, or general
school improvement and reform; and
``(ii) to provide direct educational services
that assist all students with meeting challenging
State academic content standards.
``(D) Administrative costs.--The Secretary may
provide not more than 5 percent of the amount reserved
for grants under this paragraph to pay the
administrative costs of the Pacific Region Educational
Laboratory under subparagraph (B).
``(4) Special rule.--The provisions of Public Law 95-134,
permitting the consolidation of grants by the outlying areas,
shall not apply to funds provided to the freely associated
States under this section.
``(c) Definitions.--For the purpose of subsections (a) and (b)--
``(1) the term `freely associated states' means the Republic
of the Marshall Islands, the Federated States of Micronesia, and
the Republic of Palau; and
``(2) the term `outlying area' means the United States
Virgin Islands, Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands.
``(d) Allotment to the Secretary of the Interior.--
``(1) In general.--The amount allotted for payments to the
Secretary of the Interior under subsection (a)(2) 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 schools and secondary schools for Indian
children operated or supported by the Department of the
Interior; and
``(B) out-of-State Indian children in elementary
schools 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), the
Secretary of the Interior shall make payments to local
educational agencies, on 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
[[Page 115 STAT. 1515]]
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.
