SEC. 1501
FLEXIBILITY FOR EQUITABLE PER-PUPIL FUNDING
Section Summary
ESSA Update
PART E--FLEXIBILITY FOR EQUITABLE PER-PUPIL FUNDING
SEC. 1501. FLEXIBILITY FOR EQUITABLE PER-PUPIL FUNDING.
(a) Reorganization.--Title I (20 U.S.C. 6571 et seq.), as amended by
this title, is further amended--
(1) <<NOTE: 20 USC 6491-6494, 6511-6518, 6531-6537, 6551-
6553, 6555, 6561, 6531a-6561i.>> by striking parts E through H;
(2) by redesignating part I as part F;
[[Page 129 STAT. 1906]]
(3) <<NOTE: 20 USC 6577, 6578.>> by striking sections 1907
and 1908;
(4) <<NOTE: 20 USC 6571-6573.>> by redesignating sections
1901 through 1903 as sections 1601 through 1603, respectively;
and
(5) by redesignating sections 1905 and 1906 <<NOTE: 20 USC
6575, 6576.>> as sections 1604 and 1605, respectively.
(b) In General.--Title I (20 U.S.C. 6571 et seq.), as amended by
this title, is further amended by inserting after section 1432 the
following:
``PART E--FLEXIBILITY FOR EQUITABLE PER-PUPIL FUNDING
``SEC. 1501. <<NOTE: 20 USC 6491.>> FLEXIBILITY FOR EQUITABLE PER-
PUPIL FUNDING.
``(a) Purpose.--The purpose of the program under this section is to
provide local educational agencies with flexibility to consolidate
eligible Federal funds and State and local education funding in order to
create a single school funding system based on weighted per-pupil
allocations for low-income and otherwise disadvantaged students.
``(b) Authority.--
``(1) In general.--The Secretary is authorized to enter into
local flexibility demonstration agreements--
``(A) for not more than 3 years with local
educational agencies that are selected under subsection
(c) and submit proposed agreements that meet the
requirements of subsection (d); and
``(B) under which such agencies may consolidate and
use funds in accordance with subsection (d) in order to
develop and implement a school funding system based on
weighted per-pupil allocations for low-income and
otherwise disadvantaged students.
``(2) Flexibility.--Except as described in subsection
(d)(1)(I), the Secretary is authorized to waive, for local
educational agencies entering into agreements under this
section, any provision of this Act that would otherwise prevent
such agency from using eligible Federal funds as part of such
agreement.
``(c) Selection of Local Educational Agencies.--
``(1) In general.--The Secretary may enter into local
flexibility demonstration agreements with not more than 50 local
educational agencies with an approved application under
subsection (d).
``(2) Selection.--Each local educational agency shall be
selected based on such agency--
``(A) submitting a proposed local flexibility
demonstration agreement under subsection (d);
``(B) demonstrating that the agreement meets the
requirements of such subsection; and
``(C) agreeing to meet the continued demonstration
requirements under subsection (e).
``(3) Expansion.--Beginning with the 2019-2020 academic
year, the Secretary may extend funding flexibility authorized
under this section to any local educational agency that submits
and has approved an application under subsection (d), as long as
a significant majority of the demonstration agreements with
local educational agencies described in paragraph (1) meet the
[[Page 129 STAT. 1907]]
requirements of subsection (d)(2) and subsection (e)(1) as of
the end of the 2018-2019 academic year.
``(d) Required Terms of Local Flexibility Demonstration Agreement.--
``(1) Application.--Each local educational agency that
desires to participate in the program under this section shall
submit, at such time and in such form as the Secretary may
prescribe, an application to enter into a local flexibility
demonstration agreement with the Secretary in order to develop
and implement a school funding system based on weighted per-
pupil allocations that meets the requirements of this section.
The application shall include--
``(A) a description of the school funding system
based on weighted per-pupil allocations, including--
``(i) the weights used to allocate funds
within such system;
``(ii) the local educational agency's legal
authority to use State and local education funds
consistent with this section;
``(iii) how such system will meet the
requirements of paragraph (2); and
``(iv) how such system will support the
academic achievement of students, including low-
income students, the lowest-achieving students,
English learners, and children with disabilities;
``(B) a list of funding sources, including eligible
Federal funds, the local educational agency will include
in such system;
``(C) a description of the amount and percentage of
total local educational agency funding, including State
and local education funds and eligible Federal funds,
that will be allocated through such system;
``(D) the per-pupil expenditures (which shall
include actual personnel expenditures, including staff
salary differentials for years of employment, and actual
nonpersonnel expenditures) of State and local education
funds for each school served by the agency for the
preceding fiscal year;
``(E) the per-pupil amount of eligible Federal funds
each school served by the agency received in the
preceding fiscal year, disaggregated by the programs
supported by the eligible Federal funds;
``(F) a description of how such system will ensure
that any eligible Federal funds allocated through the
system will meet the purposes of each Federal program
supported by such funds, including serving students from
low-income families, English learners, migratory
children, and children who are neglected, delinquent, or
at risk, as applicable;
``(G) an assurance that the local educational agency
developed and will implement the local flexibility
demonstration agreement in consultation with teachers,
principals, other school leaders (including charter
school leaders in a local educational agency that has
charter schools), administrators of Federal programs
impacted by the agreement, parents, community leaders,
and other relevant stakeholders;
``(H) an assurance that the local educational agency
will use fiscal control and sound accounting procedures
[[Page 129 STAT. 1908]]
that ensure proper disbursement of, and accounting for,
eligible Federal funds consolidated and used under such
system;
``(I) an assurance that the local educational agency
will continue to meet the requirements of sections 1117,
1118, and 8501; and
``(J) an assurance that the local educational agency
will meet the requirements of all applicable Federal
civil rights laws in carrying out the agreement and in
consolidating and using funds under the agreement.
``(2) Requirements of the system.--
``(A) In general.--A local educational agency's
school funding system based on weighted per-pupil
allocations shall--
``(i) except as allowed under clause (iv),
allocate a significant portion of funds, including
State and local education funds and eligible
Federal funds, to the school level based on the
number of students in a school and a formula
developed by the agency under this section that
determines per-pupil weighted amounts;
``(ii) use weights or allocation amounts that
allocate substantially more funding to English
learners, students from low-income families, and
students with any other characteristics associated
with educational disadvantage chosen by the local
educational agency, than to other students;
``(iii) ensure that each high-poverty school
receives, in the first year of the demonstration
agreement--
``(I) more per-pupil funding,
including from Federal, State, and local
sources, for low-income students than
such funding received for low-income
students in the year prior to entering
into a demonstration agreement under
this section; and
``(II) at least as much per-pupil
funding, including from Federal, State,
and local sources, for English learners
as such funding received for English
learners in the year prior to entering
into a demonstration agreement under
this section;
``(iv) be used to allocate to schools a
significant percentage, which shall be a
percentage agreed upon during the application
process, of all the local educational agency's
State and local education funds and eligible
Federal funds; and
``(v) include all school-level actual
personnel expenditures for instructional staff
(including staff salary differentials for years of
employment) and actual nonpersonnel expenditures
in the calculation of the local educational
agency's State and local education funds and
eligible Federal funds to be allocated under
clause (i).
``(B) Percentage.--In establishing the percentage
described in subparagraph (A)(iv) for the system, the
local educational agency shall demonstrate that the
percentage--
``(i) under such subparagraph is sufficient to
carry out the purposes of the demonstration
agreement under
[[Page 129 STAT. 1909]]
this section and to meet each of the requirements
of this subsection; and
``(ii) of State and local education funds and
eligible Federal funds that are not allocated
through the local educational agency's school
funding system based on weighted per-pupil
allocations, does not undermine or conflict with
the requirements of the demonstration agreement
under this section.
``(C) Expenditures.--After allocating funds through
the system, the local educational agency shall charge
schools for the per-pupil expenditures of State and
local education funds and eligible Federal funds,
including actual personnel expenditures (including staff
salary differentials for years of employment) for
instructional staff and actual nonpersonnel
expenditures.
``(e) Continued Demonstration.--Each local educational agency with
an approved application under subsection (d) shall annually--
``(1) demonstrate to the Secretary that, as compared to the
previous year, no high-poverty school served by the agency
received--
``(A) less per-pupil funding, including from
Federal, State, and local sources, for low-income
students; or
``(B) less per-pupil funding, including from
Federal, State, and local sources, for English learners;
``(2) make public and report to the Secretary the per-pupil
expenditures (including actual personnel expenditures that
include staff salary differentials for years of employment, and
actual non-personnel expenditures) of State and local education
funds and eligible Federal funds for each school served by the
agency, disaggregated by each quartile of students attending the
school based on student level of poverty and by each major
racial or ethnic group in the school, for the preceding fiscal
year;
``(3) make public the total number of students enrolled in
each school served by the agency and the number of students
enrolled in each such school disaggregated by each of the
subgroups of students, as defined in section 1111(c)(2); and
``(4) notwithstanding paragraph (1), (2), or (3), ensure
that any information to be reported or made public under this
subsection is only reported or made public if such information
does not reveal personally identifiable information.
``(f) Limitations on Administrative Expenditures.--Each local
educational agency that has entered into a local flexibility
demonstration agreement with the Secretary under this section may use,
for administrative purposes, an amount of eligible Federal funds that is
not more than the percentage of funds allowed for such purposes under
any of the following:
``(1) This title.
``(2) Title II.
``(3) Title III.
``(4) Part A of title IV.
``(5) Part B of title V.
``(g) Peer Review.--The Secretary may establish a peer-review
process to assist in the review of a proposed local flexibility
demonstration agreement.
[[Page 129 STAT. 1910]]
``(h) Noncompliance.--The Secretary may, after providing notice and
an opportunity for a hearing (including the opportunity to provide
supporting evidence as provided for in subsection (i)), terminate a
local flexibility demonstration agreement under this section if there is
evidence that the local educational agency has failed to comply with the
terms of the agreement and the requirements under subsections (d) and
(e).
``(i) Evidence.--If a local educational agency believes that the
Secretary's determination under subsection (h) is in error for
statistical or other substantive reasons, the local educational agency
may provide supporting evidence to the Secretary, and the Secretary
shall consider that evidence before making a final determination.
``(j) Program Evaluation.--From the amount reserved for evaluation
activities under section 8601, the Secretary, acting through the
Director of the Institute of Education Sciences, shall, in consultation
with the relevant program office at the Department, evaluate--
``(1) the implementation of the local flexibility
demonstration agreements under this section; and
``(2) the impact of such agreements on improving the
equitable distribution of State and local funding and increasing
student achievement.
``(k) Renewal of Local Flexibility Demonstration Agreement.--The
Secretary may renew for additional 3-year terms a local flexibility
demonstration agreement under this section if--
``(1) the local educational agency has met the requirements
under subsections (d)(2) and (e) and agrees to, and has a high
likelihood of, continuing to meet such requirements; and
``(2) the Secretary determines that renewing the local
flexibility demonstration agreement is in the interest of
students served under this title and title III.
``(l) Definitions.--In this section:
``(1) Eligible federal funds.--The term `eligible Federal
funds' means funds received by a local educational agency
under--
``(A) this title;
``(B) title II;
``(C) title III;
``(D) part A of title IV; and
``(E) part B of title V.
``(2) High-poverty school.--The term `high-poverty school'
means a school that is in the highest 2 quartiles of schools
served by a local educational agency, based on the percentage of
enrolled students from low-income families.''.
NCLB Text
``PART E--NATIONAL ASSESSMENT OF TITLE I
``SEC. <<NOTE: 20 USC 6491.>> 1501. EVALUATIONS.
``(a) National Assessment of Title I.--
``(1) In general.--The Secretary shall conduct a national
assessment of the programs assisted under this title and the
impact of this title on States, local educational agencies,
schools, and students.
``(2) Issues to be examined.--In conducting the assessment
under this subsection, the Secretary shall examine, at a
minimum, the following:
``(A) The implementation of programs assisted under
this title and the impact of such implementation on
increasing student academic achievement (particularly in
schools with high concentrations of children living in
poverty), relative to the goal of all students reaching
the proficient level of achievement based on State
academic assessments, challenging State academic content
standards, and challenging State student academic
achievement standards under section 1111.
``(B) The types of programs and services that have
demonstrated the greatest likelihood of helping students
reach the proficient and advanced levels of achievement
based on State student academic achievement standards
and State academic content standards.
``(C) The implementation of State academic
standards, assessments, and accountability systems
developed under this title, including--
``(i) the time and cost required for the
development of academic assessments for students
in grades 3 through 8;
``(ii) how well such State assessments meet
the requirements for assessments described in this
title; and
``(iii) the impact of such standards,
assessments, and accountability systems on
educational programs and instruction at the local
level.
``(D) Each State's definition of adequate yearly
progress, including--
``(i) the impact of applying this definition
to schools, local educational agencies, and the
State;
[[Page 115 STAT. 1593]]
``(ii) the number of schools and local
educational agencies not meeting this definition;
and
``(iii) the changes in the identification of
schools in need of improvement as a result of such
definition.
``(E) How schools, local educational agencies, and
States have--
``(i) publicized and disseminated the local
educational agency report cards required under
section 1111(h)(2) to teachers, school staff,
students, parents, and the community;
``(ii) used funds made available under this
title to provide preschool and family literacy
services and the impact of these services on
students' school readiness;
``(iii) implemented the provisions of section
1118 and afforded parents meaningful opportunities
to be involved in the education of their children;
``(iv) used Federal, State, and local
educational agency funds and resources to support
schools and provide technical assistance to
improve the achievement of students in low-
performing schools, including the impact of the
technical assistance on such achievement; and
``(v) <<NOTE: Deadline.>> used State
educational agency and local educational agency
funds and resources to help schools in which 50
percent or more of the students are from families
with incomes below the poverty line meet the
requirement described in section 1119 of having
all teachers highly qualified not later than the
end of the 2005-2006 school year.
``(F) The implementation of schoolwide programs and
targeted assistance programs under this title and the
impact of such programs on improving student academic
achievement, including the extent to which schools meet
the requirements of such programs.
``(G) The extent to which varying models of
comprehensive school reform are funded and implemented
under this title, and the effect of the implementation
of such models on improving achievement of disadvantaged
students.
``(H) The costs as compared to the benefits of the
activities assisted under this title.
``(I) The extent to which actions authorized under
section 1116 are implemented by State educational
agencies and local educational agencies to improve the
academic achievement of students in low-performing
schools, and the effectiveness of the implementation of
such actions, including the following:
``(i) The number of schools identified for
school improvement and how many years the schools
remain in this status.
``(ii) The types of support provided by the
State educational agencies and local educational
agencies to schools and local educational agencies
respectively identified as in need of improvement,
and the impact of such support on student
achievement.
``(iii) The number of parents who take
advantage of the public school choice provisions
of this title, the
[[Page 115 STAT. 1594]]
costs (including transportation costs) associated
with implementing these provisions, the
implementation of these provisions, and the impact
of these provisions (including the impact of
attending another school) on student achievement.
``(iv) The number of parents who choose to
take advantage of the supplemental educational
services option, the criteria used by the States
to determine the quality of providers, the kinds
of services that are available and utilized, the
costs associated with implementing this option,
and the impact of receiving supplemental
educational services on student achievement.
``(v) The implementation and impact of actions
that are taken with regard to schools and local
educational agencies identified for corrective
action and restructuring.
``(J) The extent to which State and local fiscal
accounting requirements under this title affect the
flexibility of schoolwide programs.
``(K) The implementation and impact of the
professional development activities assisted under this
title and title II on instruction, student academic
achievement, and teacher qualifications.
``(L) The extent to which the assistance made
available under this title, including funds under
section 1002, is targeted to disadvantaged students,
schools, and local educational agencies with the
greatest need.
``(M) The effectiveness of Federal administration
assistance made available under this title, including
monitoring and technical assistance.
``(N) The academic achievement of the groups of
students described in section 1111(b)(2)(C)(v)(II).
``(O) Such other issues as the Secretary considers
appropriate.
``(3) Sources of information.--In conducting the assessment
under this subsection, the Secretary shall use information from
a variety of sources, including the National Assessment of
Educational Progress (carried out under section 411 of the
National Education Statistics Act of 1994), State evaluations,
and other research studies.
``(4) Coordination.--In carrying out this subsection, the
Secretary shall--
``(A) coordinate the national assessment under this
subsection with the longitudinal study described in
subsection (c); and
``(B) ensure that the independent review panel
described in subsection (d) participates in conducting
the national assessment under this subsection, including
planning for and reviewing the assessment.
``(5) Developmentally appropriate measures.--In conducting
the national assessment under this subsection, the Secretary
shall use developmentally appropriate measures to assess student
academic achievement.
``(6) Reports.--
``(A) <<NOTE: Deadline.>> Interim report.--Not later
than 3 years after the date of enactment of the No Child
Left Behind Act
[[Page 115 STAT. 1595]]
of 2001, the Secretary shall transmit to the President,
the Committee on Education and the Workforce of the
House of Representatives, and the Committee on Health,
Education, Labor, and Pensions of the Senate an interim
report on the national assessment conducted under this
subsection.
``(B) <<NOTE: Deadline.>> Final report.--Not later
than 5 years after the date of enactment of the No Child
Left Behind Act of 2001, the Secretary shall transmit to
the President, the Committee on Education and the
Workforce of the House of Representatives, and the
Committee on Health, Education, Labor, and Pensions of
the Senate a final report on the national assessment
conducted under this subsection.
``(b) Studies and Data Collection.--
``(1) In general.--In addition to other activities described
in this section, the Secretary may, directly or through awarding
grants to or entering into contracts with appropriate entities--
``(A) assess the implementation and effectiveness of
programs under this title;
``(B) collect the data necessary to comply with the
Government Performance and Results Act of 1993; and
``(C) provide guidance and technical assistance to
State educational agencies and local educational
agencies in developing and maintaining management
information systems through which such agencies may
develop program performance indicators to improve
services and performance.
``(2) Minimum information.--In carrying out this subsection,
the Secretary shall collect, at a minimum, trend information on
the effect of each program authorized under this title, which
shall complement the data collected and reported under
subsections (a) and (c).
``(c) National Longitudinal Study.--
``(1) In general.--The Secretary shall conduct a
longitudinal study of schools receiving assistance under part A.
``(2) Issues to be examined.--In carrying out this
subsection, the Secretary shall ensure that the study referred
to in paragraph (1) provides Congress and educators with each of
the following:
``(A) An accurate description and analysis of the
short- and long-term effect of the assistance made
available under this title on academic achievement.
``(B) Information that can be used to improve the
effectiveness of the assistance made available under
this title in enabling students to meet challenging
academic achievement standards.
``(C) An analysis of educational practices or model
programs that are effective in improving the achievement
of disadvantaged children.
``(D) An analysis of the costs as compared to the
benefits of the assistance made available under this
title in improving the achievement of disadvantaged
children.
``(E) An analysis of the effects of the availability
of school choice options under section 1116 on the
academic achievement of disadvantaged students, on
schools in school
[[Page 115 STAT. 1596]]
improvement, and on schools from which students have
transferred under such options.
``(F) Such other information as the Secretary
considers appropriate.
``(3) Scope.--In conducting the study referred to in
paragraph (1), the Secretary shall ensure that the study--
``(A) bases its analysis on a nationally
representative sample of schools participating in
programs under this title;
``(B) to the extent practicable, includes in its
analysis students who transfer to different schools
during the course of the study; and
``(C) analyzes varying models or strategies for
delivering school services, including--
``(i) schoolwide and targeted services; and
``(ii) comprehensive school reform models.
``(d) <<NOTE: Establishment.>> Independent Review Panel.--
``(1) In general.--The Secretary shall establish an
independent review panel (in this subsection referred to as the
`Review Panel') to advise the Secretary on methodological and
other issues that arise in carrying out subsections (a) and (c).
``(2) Appointment of members.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall appoint members of the Review Panel from
among qualified individuals who are--
``(i) specialists in statistics, evaluation,
research, and assessment;
``(ii) education practitioners, including
teachers, principals, and local and State
superintendents;
``(iii) parents and members of local school
boards or other organizations involved with the
implementation and operation of programs under
this title; and
``(iv) other individuals with technical
expertise who will contribute to the overall rigor
and quality of the program evaluation.
``(B) Limitations.--In appointing members of the
Review Panel, the Secretary shall ensure that--
``(i) in order to ensure diversity, the Review
Panel includes individuals appointed under
subparagraph (A)(i) who represent disciplines or
programs outside the field of education; and
``(ii) the total number of the individuals
appointed under subparagraph (A)(ii) or (A)(iv)
does not exceed one-fourth of the total number of
the individuals appointed under this paragraph.
``(3) Functions.--The Review Panel shall consult with and
advise the Secretary--
``(A) to ensure that the assessment conducted under
subsection (a) and the study conducted under subsection
(c)--
``(i) adhere to the highest possible standards
of quality with respect to research design,
statistical analysis, and the dissemination of
findings; and
``(ii) use valid and reliable measures to
document program implementation and impacts; and
``(B) to ensure--
[[Page 115 STAT. 1597]]
``(i) that the final report described in
subsection (a)(6)(B) is reviewed not later than
120 days after its completion by not less than two
independent experts in program evaluation (who may
be from among the members of the Review Panel
appointed under paragraph (2));
``(ii) that such experts evaluate and comment
on the degree to which the report complies with
subsection (a); and
``(iii) that the comments of such experts are
transmitted with the report under subsection
(a)(6)(B).
``SEC. <<NOTE: 20 USC 6492.>> 1502. DEMONSTRATIONS OF INNOVATIVE
PRACTICES.
``(a) In General.--From the funds appropriated for any fiscal year
under section 1002(e)(1), the Secretary may award grants to State
educational agencies, local educational agencies, other public agencies,
nonprofit organizations, public or private partnerships involving
business and industry organizations, and consortia of such entities to
carry out demonstration projects that show the most promise of enabling
children served under this title to meet challenging State academic
content standards and challenging State student academic achievement
standards.
``(b) Evaluation.--The Secretary shall evaluate the demonstration
projects supported under this title, using rigorous methodological
designs and techniques, including control groups and random assignment,
to the extent feasible, to produce reliable evidence of effectiveness.
``(c) Partnerships.--From funds appropriated under section
1002(e)(1) for any fiscal year, the Secretary may, directly or through
grants or contracts, work in partnership with State educational
agencies, local educational agencies, other public agencies, and
nonprofit organizations to disseminate and use the highest quality
research and knowledge about effective practices to improve the quality
of teaching and learning in schools assisted under this title.
``SEC. <<NOTE: 20 USC 6493.>> 1503. ASSESSMENT EVALUATION.
``(a) In General.--The Secretary shall conduct an independent study
of assessments used for State accountability purposes and for making
decisions about the promotion and graduation of students. Such research
shall be conducted over a period not to exceed 5 years and shall address
the components described in subsection (d).
``(b) Contract Authorized.--The Secretary is authorized to award a
contract, through a peer review process, to an organization or entity
capable of conducting rigorous, independent research. The Assistant
Secretary of Educational Research and Improvement shall appoint peer
reviewers to evaluate the applications for this contract.
``(c) Study.--The study shall--
``(1) synthesize and analyze existing research that meets
standards of quality and scientific rigor; and
``(2) evaluate academic assessment and accountability
systems in State educational agencies, local educational
agencies, and schools; and
``(3) make recommendations to the Department and to the
Committee on Education and the Workforce of the United States
House of Representatives and the Committee on Health,
[[Page 115 STAT. 1598]]
Education, Labor, and Pensions of the United States Senate,
based on the findings of the study.
``(d) Components of the Research Program.--The study described in
subsection (a) shall examine--
``(1) the effect of the assessment and accountability
systems described in section (c) on students, teachers, parents,
families, schools, school districts, and States, including
correlations between such systems and--
``(A) student academic achievement, progress to the
State-defined level of proficiency, and progress toward
closing achievement gaps, based on independent measures;
``(B) changes in course offerings, teaching
practices, course content, and instructional material;
``(C) changes in turnover rates among teachers,
principals, and pupil-services personnel;
``(D) changes in dropout, grade-retention, and
graduation rates for students; and
``(E) such other effects as may be appropriate;
``(2) the effect of the academic assessments on students
with disabilities;
``(3) the effect of the academic assessments on low, middle,
and high socioeconomic status students, limited and nonlimited
English proficient students, racial and ethnic minority
students, and nonracial or nonethnic minority students;
``(4) guidelines for assessing the validity, reliability,
and consistency of those systems using nationally recognized
professional and technical standards;
``(5) the relationship between accountability systems and
the inclusion or exclusion of students from the assessment
system; and
``(6) such other factors as the Secretary finds appropriate.
``(e) <<NOTE: Deadline. Public information.>> Reporting.--Not later
than 3 years after the contract described in subsection (b) is awarded,
the organization or entity conducting the study shall submit an interim
report to the Committee on Education and the Workforce of the United
States House of Representatives and the Committee on Health, Education,
Labor and Pensions of the United States Senate, and to the President and
the States, and shall make the report widely available to the public.
The organization or entity shall submit a final report to the same
recipients as soon as possible after the completion of the study.
Additional reports may be periodically prepared and released as
necessary.
``(f) Reservation of Funds.--The Secretary may reserve up to 15
percent of the funds authorized to be appropriated for this part to
carry out the study, except such reservation of funds shall not exceed
$1,500,000.
``SEC. <<NOTE: 20 USC 6494.>> 1504. CLOSE UP FELLOWSHIP PROGRAM.
``(a) Program for Middle School and Secondary School Students.--
``(1) Establishment.--
``(A) General authority.--In accordance with this
subsection, the Secretary may make grants to the Close
Up Foundation of Washington, District of Columbia, a
nonpartisan, nonprofit foundation, for the purpose of
assisting the Close Up Foundation in carrying out its
programs of increasing civic responsibility and
understanding of the
[[Page 115 STAT. 1599]]
Federal Government among middle school and secondary
school students.
``(B) Use of funds.--Grants under this subsection
shall be used only to provide financial assistance to
economically disadvantaged students who participate in
the programs described in subparagraph (A).
``(C) Name of fellowships.--Financial assistance
received by students pursuant to this subsection shall
be known as Close Up fellowships.
``(2) Applications.--
``(A) Application required.--No grant under this
subsection may be made except upon an application at
such time, in such manner, and accompanied by such
information as the Secretary may reasonably require.
``(B) Contents of application.--Each application
submitted under this paragraph shall contain assurances
that--
``(i) Close Up fellowships provided under this
subsection shall be made to economically
disadvantaged middle school and secondary school
students;
``(ii) every effort shall be made to ensure
the participation of students from rural, small
town, and urban areas;
``(iii) in awarding the fellowships to
economically disadvantaged students, special
consideration shall be given to the participation
of those students with special educational needs,
including students with disabilities, ethnic
minority students, and students with migrant
parents; and
``(iv) the funds received under this
subsection shall be properly disbursed.
``(b) Program for Middle School and Secondary School Teachers.--
``(1) Establishment.--
``(A) General authority.--In accordance with this
subsection, the Secretary may make grants to the Close
Up Foundation of Washington, District of Columbia, a
nonpartisan, nonprofit foundation, for the purpose of
assisting the Close Up Foundation in carrying out its
programs of professional development for middle school
and secondary school teachers and its programs to
increase civic responsibility and understanding of the
Federal Government among the teachers' students.
``(B) Use of funds.--Grants under this subsection
shall be used only to provide financial assistance to
teachers who participate in the programs described in
subparagraph (A).
``(C) Name of fellowships.--Financial assistance
received by teachers pursuant to this subsection shall
be known as Close Up fellowships.
``(2) Applications.--
``(A) Application required.--No grant under this
subsection may be made except upon an application at
such time, in such manner, and accompanied by such
information as the Secretary may reasonably require.
[[Page 115 STAT. 1600]]
``(B) Contents of application.--Each application
submitted under this paragraph shall contain assurances
that--
``(i) Close Up fellowships provided under this
subsection shall be made only to a teacher who has
worked with at least one student from such
teacher's school who participates in a program
described in subsection (a)(1)(A);
``(ii) no teacher shall receive more than one
such fellowship in any fiscal year; and
``(iii) the funds received under this
subsection shall be properly disbursed.
``(c) Programs for New Americans.--
``(1) Establishment.--
``(A) General authority.--In accordance with this
subsection, the Secretary may make grants to the Close
Up Foundation of Washington, District of Columbia, a
nonpartisan, nonprofit foundation, for the purpose of
assisting the Close Up Foundation in carrying out its
programs of increasing civic responsibility and
understanding of the Federal Government among
economically disadvantaged middle school and secondary
school recent immigrant students.
``(B) Definition.--In this subsection, the term
`recent immigrant student' means a student who is a
member of a family that immigrated to the United States
within 5 years of the student's participation in such a
program.
``(C) Use of funds.--Grants under this subsection
shall be used only to provide financial assistance to
economically disadvantaged recent immigrant students and
their teachers who participate in the programs described
in subparagraph (A).
``(D) Name of fellowships.--Financial assistance
received by students and teachers pursuant to this
subsection shall be known as Close Up Fellowships for
New Americans.
``(2) Applications.--
``(A) Application required.--No grant under this
subsection may be made except upon an application at
such time, in such manner, and accompanied by such
information as the Secretary may reasonably require.
``(B) Contents of application.--Each application
submitted under this paragraph shall contain assurances
that--
``(i) Close Up Fellowships for New Americans
shall be made to economically disadvantaged middle
school and secondary school recent immigrant
students;
``(ii) every effort shall be made to ensure
the participation of recent immigrant students
from rural, small town, and urban areas;
``(iii) in awarding the fellowships to
economically disadvantaged recent immigrant
students, special consideration shall be given to
the participation of those students with special
educational needs, including students with
disabilities, students with migrant parents, and
ethnic minority students;
[[Page 115 STAT. 1601]]
``(iv) fully describe the activities to be
carried out with the proceeds of the grant made
under paragraph (1); and
``(v) the funds received under this subsection
shall be properly disbursed.
``(d) General Provisions.--
``(1) Administrative provisions.--
``(A) Accountability.--In consultation with the
Secretary, the Close Up Foundation shall devise and
implement procedures to measure the efficacy of the
programs authorized in subsections (a), (b), and (c) in
attaining objectives that include the following:
``(i) Providing young people with an increased
understanding of the Federal Government.
``(ii) Heightening a sense of civic
responsibility among young people.
``(iii) Enhancing the skills of educators in
teaching young people about civic responsibility,
the Federal Government, and attaining citizenship
competencies.
``(B) General rule.--Payments under this section may
be made in installments, in advance, or by way of
reimbursement, with necessary adjustments on account of
underpayments or overpayments.
``(C) Audit rule.--The Comptroller General of the
United States or any of the Comptroller General's duly
authorized representatives shall have access for the
purpose of audit and examination to any books,
documents, papers, and records that are pertinent to any
grant under this section.
``(2) Continuation of awards.--Notwithstanding any other
provision of this Act, any person or entity that was awarded a
grant under part G of title X before the date of enactment of
the No Child Left Behind Act of 2001 shall continue to receive
funds in accordance with the terms of such award until the date
on which the award period terminates under such terms.
