SEC. 1016

ADEQUACY OF FUNDING RULE

Section Summary

ESSA Update

SEC. 1016. ADEQUACY OF FUNDING RULE.

    Section 1125AA (20 U.S.C. 6336) is amended by striking the section
heading and all that follows through ``Pursuant'' and inserting the
following: ``Adequacy of Funding to Local Educational Agencies in Fiscal
Years After Fiscal Year 2001.--Pursuant''.

NCLB Text

``SEC. <<NOTE: 20 USC 6336.>> 1125AA. ADEQUACY OF FUNDING OF TARGETED
            GRANTS TO LOCAL EDUCATIONAL AGENCIES IN FISCAL YEARS AFTER
            FISCAL YEAR 2001.

    ``(a) Findings.--Congress makes the following findings:
            ``(1) The current Basic Grant Formula for the distribution
        of funds under this part often does not provide funds for the
        economically disadvantaged students for which such funds are
        targeted.
            ``(2) Any school district in which more than 2 percent of
        the students live below the poverty level qualifies for funding
        under the Basic Grant Formula. As a result, 9 out of every 10
        school districts in the country receive some form of aid under
        the Formula.
            ``(3) Fifty-eight percent of all schools receive at least
        some funding under this part, including many suburban schools
        with predominantly well-off students.
            ``(4) One out of every 5 schools with concentrations of poor
        students between 50 and 75 percent receive no funding at all
        under this part.
            ``(5) In passing the Improving America's Schools Act in
        1994, Congress declared that grants under this part would more
        sharply target high poverty schools by using the Targeted Grant
        Formula, but annual appropriation Acts have prevented the use of
        that Formula.
            ``(6) The advantage of the Targeted Grant Formula over other
        funding formulas under this part is that the Targeted Grant
        Formula provides increased grants per poor child as the
        percentage of economically disadvantaged children in a school
        district increases.
            ``(7) Studies have found that the poverty of a child's
        family is much more likely to be associated with educational
        disadvantage if the family lives in an area with large
        concentrations of poor families.
            ``(8) States with large populations of high poverty students
        would receive significantly more funding if more funds under
        this part were allocated through the Targeted Grant Formula.
            ``(9) Congress has an obligation to allocate funds under
        this part so that such funds will positively affect the largest
        number of economically disadvantaged students.

    ``(b) Limitation on Allocation of Title I Funds Contingent on
Adequate Funding of Targeted Grants.--Pursuant to section 1122, the
total amount allocated in any fiscal year after fiscal year 2001 for
programs and activities under this part shall not exceed the amount
allocated in fiscal year 2001 for such programs and activities unless
the amount available for targeted grants to local educational agencies
under section 1125 in the applicable fiscal year meets the requirements
of section 1122(a).