SEC. 2101
FORMULA GRANTS TO STATES
Section Summary
ESSA Update
``SEC. 2101. <<NOTE: 20 USC 6611.>> FORMULA GRANTS TO STATES.
``(a) Reservation of Funds.--From the total amount appropriated
under section 2003(a) for a fiscal year, the Secretary shall reserve--
``(1) one-half of 1 percent for allotments for the United
States Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands, to be distributed
among those outlying areas on the basis of their relative need,
as determined by the Secretary, in accordance with the purpose
of this title; and
``(2) one-half of 1 percent for the Secretary of the
Interior for programs under this part in schools operated or
funded by the Bureau of Indian Education.
``(b) State Allotments.--
``(1) Hold harmless.--
``(A) Fiscal years 2017 through 2022.--For each of
fiscal years 2017 through 2022, subject to paragraph (2)
and subparagraph (C), from the funds appropriated under
section 2003(a) for a fiscal year that remain after the
Secretary makes the reservations under subsection (a),
the Secretary shall allot to each State an amount equal
to the total amount that such State received for fiscal
year 2001 under--
``(i) section 2202(b) of this Act (as in
effect on the day before the date of enactment of
the No Child Left Behind Act of 2001); and
``(ii) section 306 of the Department of
Education Appropriations Act, 2001 (as enacted
into law by section 1(a)(1) of Public Law 106-
554).
``(B) Ratable reduction.--If the funds described in
subparagraph (A) are insufficient to pay the full
amounts that all States are eligible to receive under
subparagraph (A) for any fiscal year, the Secretary
shall ratably reduce those amounts for the fiscal year.
``(C) Percentage reduction.--For each of fiscal
years 2017 through 2022, the amount in subparagraph (A)
shall be reduced by a percentage equal to the product of
14.29 percent and the number of years between the fiscal
year for which the determination is being made and
fiscal year 2016.
``(2) Allotment of additional funds.--
``(A) In general.--Subject to subparagraph (B), for
any fiscal year for which the funds appropriated under
section 2003(a) and not reserved under subsection (a)
exceed the total amount required to make allotments
under paragraph (1), the Secretary shall allot to each
State the sum of--
``(i) for fiscal year 2017--
``(I) an amount that bears the same
relationship to 35 percent of the excess
amount as the number of individuals aged
5 through 17 in the State, as determined
by the Secretary on the basis of the
most recent satisfactory data, bears to
the
[[Page 129 STAT. 1918]]
number of those individuals in all such
States, as so determined; and
``(II) an amount that bears the same
relationship to 65 percent of the excess
amount as the number of individuals aged
5 through 17 from families with incomes
below the poverty line in the State, as
determined by the Secretary on the basis
of the most recent satisfactory data,
bears to the number of those individuals
in all such States, as so determined;
``(ii) for fiscal year 2018--
``(I) an amount that bears the same
relationship to 30 percent of the excess
amount as the number of individuals aged
5 through 17 in the State, as determined
by the Secretary on the basis of the
most recent satisfactory data, bears to
the number of those individuals in all
such States, as so determined; and
``(II) an amount that bears the same
relationship to 70 percent of the excess
amount as the number of individuals aged
5 through 17 from families with incomes
below the poverty line in the State, as
determined by the Secretary on the basis
of the most recent satisfactory data,
bears to the number of those individuals
in all such States, as so determined;
``(iii) for fiscal year 2019--
``(I) an amount that bears the same
relationship to 25 percent of the excess
amount as the number of individuals aged
5 through 17 in the State, as determined
by the Secretary on the basis of the
most recent satisfactory data, bears to
the number of those individuals in all
such States, as so determined; and
``(II) an amount that bears the same
relationship to 75 percent of the excess
amount as the number of individuals aged
5 through 17 from families with incomes
below the poverty line in the State, as
determined by the Secretary on the basis
of the most recent satisfactory data,
bears to the number of those individuals
in all such States, as so determined;
and
``(iv) for fiscal year 2020--
``(I) an amount that bears the same
relationship to 20 percent of the excess
amount as the number of individuals aged
5 through 17 in the State, as determined
by the Secretary on the basis of the
most recent satisfactory data, bears to
the number of those individuals in all
such States, as so determined; and
``(II) an amount that bears the same
relationship to 80 percent of the excess
amount as the number of individuals aged
5 through 17 from families with incomes
below the poverty line in the State, as
determined by the Secretary on the basis
of the most recent satisfactory data,
bears
[[Page 129 STAT. 1919]]
to the number of those individuals in
all such States, as so determined.
``(B) Exception.--No State receiving an allotment
under subparagraph (A) may receive less than one-half of
1 percent of the total excess amount allotted under such
subparagraph for a fiscal year.
``(3) Fiscal year 2021 and succeeding fiscal years.--For
fiscal year 2021 and each of the succeeding fiscal years--
``(A) the Secretary shall allot funds appropriated
under section 2003(a) and not reserved under subsection
(a) to each State in accordance with paragraph
(2)(A)(iv); and
``(B) the amount appropriated but not reserved shall
be treated as the excess amount.
``(4) Reallotment.--If any State does not apply for an
allotment under this subsection for any fiscal year, the
Secretary shall reallot the amount of the allotment to the
remaining States in accordance with this subsection.
``(c) State Uses of Funds.--
``(1) In general.--Except as provided under paragraph (3),
each State that receives an allotment under subsection (b) for a
fiscal year shall reserve not less than 95 percent of such
allotment to make subgrants to local educational agencies for
such fiscal year, as described in section 2102.
``(2) State administration.--A State educational agency may
use not more than 1 percent of the amount allotted to such State
under subsection (b) for the administrative costs of carrying
out such State educational agency's responsibilities under this
part.
``(3) Principals or other school leaders.--Notwithstanding
paragraph (1) and in addition to funds otherwise available for
activities under paragraph (4), a State educational agency may
reserve not more than 3 percent of the amount reserved for
subgrants to local educational agencies under paragraph (1) for
one or more of the activities for principals or other school
leaders that are described in paragraph (4).
``(4) State activities.--
``(A) In general.--The State educational agency for
a State that receives an allotment under subsection (b)
may use funds not reserved under paragraph (1) to carry
out 1 or more of the activities described in
subparagraph (B), which may be implemented in
conjunction with a State agency of higher education (if
such agencies are separate) and carried out through a
grant or contract with a for-profit or nonprofit entity,
including an institution of higher education.
``(B) Types of state activities.--The activities
described in this subparagraph are the following:
``(i) Reforming teacher, principal, or other
school leader certification, recertification,
licensing, or tenure systems or preparation
program standards and approval processes to ensure
that--
``(I) teachers have the necessary
subject-matter knowledge and teaching
skills, as demonstrated through measures
determined by the State, which may
include teacher performance assessments,
in the academic subjects that the
teachers teach to
[[Page 129 STAT. 1920]]
help students meet challenging State
academic standards;
``(II) principals or other school
leaders have the instructional
leadership skills to help teachers teach
and to help students meet such
challenging State academic standards;
and
``(III) teacher certification or
licensing requirements are aligned with
such challenging State academic
standards.
``(ii) Developing, improving, or providing
assistance to local educational agencies to
support the design and implementation of teacher,
principal, or other school leader evaluation and
support systems that are based in part on evidence
of student academic achievement, which may include
student growth, and shall include multiple
measures of educator performance and provide
clear, timely, and useful feedback to teachers,
principals, or other school leaders, such as by--
``(I) developing and disseminating
high-quality evaluation tools, such as
classroom observation rubrics, and
methods, including training and
auditing, for ensuring inter-rater
reliability of evaluation results;
``(II) developing and providing
training to principals, other school
leaders, coaches, mentors, and
evaluators on how to accurately
differentiate performance, provide
useful and timely feedback, and use
evaluation results to inform
decisionmaking about professional
development, improvement strategies, and
personnel decisions; and
``(III) developing a system for
auditing the quality of evaluation and
support systems.
``(iii) Improving equitable access to
effective teachers.
``(iv) Carrying out programs that establish,
expand, or improve alternative routes for State
certification of teachers (especially for teachers
of children with disabilities, English learners,
science, technology, engineering, mathematics, or
other areas where the State experiences a shortage
of educators), principals, or other school
leaders, for--
``(I) individuals with a
baccalaureate or master's degree, or
other advanced degree;
``(II) mid-career professionals from
other occupations;
``(III) paraprofessionals;
``(IV) former military personnel;
and
``(V) recent graduates of
institutions of higher education with
records of academic distinction who
demonstrate the potential to become
effective teachers, principals, or other
school leaders.
``(v) Developing, improving, and implementing
mechanisms to assist local educational agencies
and schools in effectively recruiting and
retaining teachers, principals, or other school
leaders who are effective in improving student
academic achievement, including effective teachers
from underrepresented minority
[[Page 129 STAT. 1921]]
groups and teachers with disabilities, such as
through--
``(I) opportunities for effective
teachers to lead evidence-based (to the
extent the State determines that such
evidence is reasonably available)
professional development for the peers
of such effective teachers; and
``(II) providing training and
support for teacher leaders and
principals or other school leaders who
are recruited as part of instructional
leadership teams.
``(vi) Fulfilling the State educational
agency's responsibilities concerning proper and
efficient administration and monitoring of the
programs carried out under this part, including
provision of technical assistance to local
educational agencies.
``(vii) Developing, or assisting local
educational agencies in developing--
``(I) career opportunities and
advancement initiatives that promote
professional growth and emphasize
multiple career paths, such as
instructional coaching and mentoring
(including hybrid roles that allow
instructional coaching and mentoring
while remaining in the classroom),
school leadership, and involvement with
school improvement and support;
``(II) strategies that provide
differential pay, or other incentives,
to recruit and retain teachers in high-
need academic subjects and teachers,
principals, or other school leaders, in
low-income schools and school districts,
which may include performance-based pay
systems; and
``(III) new teacher, principal, or
other school leader induction and
mentoring programs that are, to the
extent the State determines that such
evidence is reasonably available,
evidence-based, and designed to--
``(aa) improve classroom
instruction and student learning
and achievement, including
through improving school
leadership programs; and
``(bb) increase the
retention of effective teachers,
principals, or other school
leaders.
``(viii) Providing assistance to local
educational agencies for the development and
implementation of high-quality professional
development programs for principals that enable
the principals to be effective and prepare all
students to meet the challenging State academic
standards.
``(ix) Supporting efforts to train teachers,
principals, or other school leaders to effectively
integrate technology into curricula and
instruction, which may include training to assist
teachers in implementing blended learning (as
defined in section 4102(1)) projects.
[[Page 129 STAT. 1922]]
``(x) Providing training, technical
assistance, and capacity-building to local
educational agencies that receive a subgrant under
this part.
``(xi) Reforming or improving teacher,
principal, or other school leader preparation
programs, such as through establishing teacher
residency programs and school leader residency
programs.
``(xii) Establishing or expanding teacher,
principal, or other school leader preparation
academies, with an amount of the funds described
in subparagraph (A) that is not more than 2
percent of the State's allotment, if--
``(I) allowable under State law;
``(II) the State enables candidates
attending a teacher, principal, or other
school leader preparation academy to be
eligible for State financial aid to the
same extent as participants in other
State-approved teacher or principal
preparation programs, including
alternative certification, licensure, or
credential programs; and
``(III) the State enables teachers,
principals, or other school leaders who
are teaching or working while on
alternative certificates, licenses, or
credentials to teach or work in the
State while enrolled in a teacher,
principal, or other school leader
preparation academy.
``(xiii) Supporting the instructional services
provided by effective school library programs.
``(xiv) Developing, or assisting local
educational agencies in developing, strategies
that provide teachers, principals, or other school
leaders with the skills, credentials, or
certifications needed to educate all students in
postsecondary education coursework through early
college high school or dual or concurrent
enrollment programs.
``(xv) Providing training for all school
personnel, including teachers, principals, other
school leaders, specialized instructional support
personnel, and paraprofessionals, regarding how to
prevent and recognize child sexual abuse.
``(xvi) Supporting opportunities for
principals, other school leaders, teachers,
paraprofessionals, early childhood education
program directors, and other early childhood
education program providers to participate in
joint efforts to address the transition to
elementary school, including issues related to
school readiness.
``(xvii) Developing and providing professional
development and other comprehensive systems of
support for teachers, principals, or other school
leaders to promote high-quality instruction and
instructional leadership in science, technology,
engineering, and mathematics subjects, including
computer science.
``(xviii) Supporting the professional
development and improving the instructional
strategies of teachers, principals, or other
school leaders to integrate career and technical
education content into academic instructional
practices, which may include training on best
[[Page 129 STAT. 1923]]
practices to understand State and regional
workforce needs and transitions to postsecondary
education and the workforce.
``(xix) Enabling States, as a consortium, to
voluntarily develop a process that allows teachers
who are licensed or certified in a participating
State to teach in other participating States
without completing additional licensure or
certification requirements, except that nothing in
this clause shall be construed to allow the
Secretary to exercise any direction, supervision,
or control over State teacher licensing or
certification requirements.
``(xx) Supporting and developing efforts to
train teachers on the appropriate use of student
data to ensure that individual student privacy is
protected as required by section 444 of the
General Education Provisions Act (commonly known
as the `Family Educational Rights and Privacy Act
of 1974') (20 U.S.C. 1232g) and in accordance with
State student privacy laws and local educational
agency student privacy and technology use
policies.
``(xxi) Supporting other activities identified
by the State that are, to the extent the State
determines that such evidence is reasonably
available, evidence-based and that meet the
purpose of this title.
``(d) State Application.--
``(1) In general.--In order to receive an allotment under
this section for any fiscal year, a State shall submit an
application to the Secretary at such time and in such manner as
the Secretary may reasonably require.
``(2) Contents.--Each application described under paragraph
(1) shall include the following:
``(A) A description of how the State educational
agency will use funds received under this title for
State-level activities described in subsection (c).
``(B) A description of the State's system of
certification and licensing of teachers, principals, or
other school leaders.
``(C) A description of how activities under this
part are aligned with challenging State academic
standards.
``(D) A description of how the activities carried
out with funds under this part are expected to improve
student achievement.
``(E) If a State educational agency plans to use
funds under this part to improve equitable access to
effective teachers, consistent with section
1111(g)(1)(B), a description of how such funds will be
used for such purpose.
``(F) If applicable, a description of how the State
educational agency will work with local educational
agencies in the State to develop or implement State or
local teacher, principal, or other school leader
evaluation and support systems that meet the
requirements of subsection (c)(4)(B)(ii).
``(G) An assurance that the State educational agency
will monitor the implementation of activities under this
part and provide technical assistance to local
educational agencies in carrying out such activities.
[[Page 129 STAT. 1924]]
``(H) An assurance that the State educational agency
will work in consultation with the entity responsible
for teacher, principal, or other school leader
professional standards, certification, and licensing for
the State, and encourage collaboration between educator
preparation programs, the State, and local educational
agencies to promote the readiness of new educators
entering the profession.
``(I) An assurance that the State educational agency
will comply with section 8501 (regarding participation
by private school children and teachers).
``(J) A description of how the State educational
agency will improve the skills of teachers, principals,
or other school leaders in order to enable them to
identify students with specific learning needs,
particularly children with disabilities, English
learners, students who are gifted and talented, and
students with low literacy levels, and provide
instruction based on the needs of such students.
``(K) A description of how the State will use data
and ongoing consultation as described in paragraph (3)
to continually update and improve the activities
supported under this part.
``(L) A description of how the State educational
agency will encourage opportunities for increased
autonomy and flexibility for teachers, principals, or
other school leaders, such as by establishing innovation
schools that have a high degree of autonomy over budget
and operations, are transparent and accountable to the
public, and lead to improved academic outcomes for
students.
``(M) A description of actions the State may take to
improve preparation programs and strengthen support for
teachers, principals, or other school leaders based on
the needs of the State, as identified by the State
educational agency.
``(3) Consultation.--In developing the State application
under this subsection, a State shall--
``(A) meaningfully consult with teachers,
principals, other school leaders, paraprofessionals
(including organizations representing such individuals),
specialized instructional support personnel, charter
school leaders (in a State that has charter schools),
parents, community partners, and other organizations or
partners with relevant and demonstrated expertise in
programs and activities designed to meet the purpose of
this title;
``(B) seek advice from the individuals,
organizations, or partners described in subparagraph (A)
regarding how best to improve the State's activities to
meet the purpose of this title; and
``(C) coordinate the State's activities under this
part with other related strategies, programs, and
activities being conducted in the State.
``(4) Limitation.--Consultation required under paragraph (3)
shall not interfere with the timely submission of the
application required under this section.
``(e) Prohibition.--Nothing in this section shall be construed to
authorize the Secretary or any other officer or employee of the Federal
Government to mandate, direct, or control any of the following:
[[Page 129 STAT. 1925]]
``(1) The development, improvement, or implementation of
elements of any teacher, principal, or other school leader
evaluation system.
``(2) Any State or local educational agency's definition of
teacher, principal, or other school leader effectiveness.
``(3) Any teacher, principal, or other school leader
professional standards, certification, or licensing.
NCLB Text
``SEC. <<NOTE: 20 USC 6611.>> 2111. ALLOTMENTS TO STATES.
``(a) In General.--The Secretary shall make grants to States with
applications approved under section 2112 to pay for the Federal share of
the cost of carrying out the activities specified in section 2113. Each
grant shall consist of the allotment determined for a State under
subsection (b).
``(b) Determination of Allotments.--
``(1) Reservation of funds.--
``(A) In general.--From the total amount
appropriated under section 2103(a) for a fiscal year,
the Secretary shall reserve--
``(i) one-half of 1 percent for allotments for
the United States Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern
Mariana Islands, to be distributed among those
outlying areas on the basis of their relative
need, as determined by the Secretary, in
accordance with the purpose of this part; and
[[Page 115 STAT. 1622]]
``(ii) one-half of 1 percent for the Secretary
of the Interior for programs under this part in
schools operated or funded by the Bureau of Indian
Affairs.
``(2) State allotments.--
``(A) Hold harmless.--
``(i) In general.--Subject to subparagraph
(B), from the funds appropriated under section
2103(a) for any fiscal year and not reserved under
paragraph (1), the Secretary shall allot to each
of the 50 States, the District of Columbia, and
the Commonwealth of Puerto Rico an amount equal to
the total amount that such State received for
fiscal year 2001 under--
``(I) section 2202(b) of this Act
(as in effect on the day before the date
of enactment of the No Child Left Behind
Act of 2001); and
``(II) section 306 of the Department
of Education Appropriations Act, 2001
(as enacted into law by section 1(a)(1)
of Public Law 106-554).
``(ii) Ratable reduction.--If the funds
described in clause (i) are insufficient to pay
the full amounts that all States are eligible to
receive under clause (i) for any fiscal year, the
Secretary shall ratably reduce those amounts for
the fiscal year.
``(B) Allotment of additional funds.--
``(i) In general.--Subject to clause (ii), for
any fiscal year for which the funds appropriated
under section 2103(a) and not reserved under
paragraph (1) exceed the total amount required to
make allotments under subparagraph (A), the
Secretary shall allot to each of the States
described in subparagraph (A) the sum of--
``(I) an amount that bears the same
relationship to 35 percent of the excess
amount as the number of individuals age
5 through 17 in the State, as determined
by the Secretary on the basis of the
most recent satisfactory data, bears to
the number of those individuals in all
such States, as so determined; and
``(II) an amount that bears the same
relationship to 65 percent of the excess
amount as the number of individuals age
5 through 17 from families with incomes
below the poverty line, in the State, as
determined by the Secretary on the basis
of the most recent satisfactory data,
bears to the number of those individuals
in all such States, as so determined.
``(ii) Exception.--No State receiving an
allotment under clause (i) may receive less than
one-half of 1 percent of the total excess amount
allotted under such clause for a fiscal year.
``(3) Reallotment.--If any State does not apply for an
allotment under this subsection for any fiscal year, the
Secretary shall reallot the amount of the allotment to the
remaining States in accordance with this subsection.
[[Page 115 STAT. 1623]]
``SEC. <<NOTE: 20 USC 6612.>> 2112. STATE APPLICATIONS.
``(a) In General.--For a State to be eligible to receive a grant
under this part, the State educational agency shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may reasonably require.
``(b) Contents.--Each application submitted under this section shall
include the following:
``(1) A description of how the activities to be carried out
by the State educational agency under this subpart will be based
on a review of scientifically based research and an explanation
of why the activities are expected to improve student academic
achievement.
``(2) A description of how the State educational agency will
ensure that a local educational agency receiving a subgrant to
carry out subpart 2 will comply with the requirements of such
subpart.
``(3) A description of how the State educational agency will
ensure that activities assisted under this subpart are aligned
with challenging State academic content and student academic
achievement standards, State assessments, and State and local
curricula.
``(4) A description of how the State educational agency will
use funds under this part to improve the quality of the State's
teachers and principals.
``(5)(A) A description of how the State educational agency
will coordinate professional development activities authorized
under this part with professional development activities
provided under other Federal, State, and local programs.
``(B) A description of the comprehensive strategy that the
State educational agency will use, as part of such coordination
effort, to ensure that teachers are trained in the use of
technology so that technology and applications of technology are
effectively used in the classroom to improve teaching and
learning in all curricula and academic subjects, as appropriate.
``(6) A description of how the State educational agency will
encourage the development of proven, innovative strategies to
deliver intensive professional development programs that are
both cost-effective and easily accessible, such as strategies
that involve delivery through the use of technology, peer
networks, and distance learning.
``(7)(A) A description of how the State educational agency
will ensure compliance with the requirements for professional
development activities described in section 9101 and how the
activities to be carried out under the grant will be developed
collaboratively and based on the input of teachers, principals,
parents, administrators, paraprofessionals, and other school
personnel.
``(B) In the case of a State in which the State educational
agency is not the entity responsible for teacher professional
standards, certification, and licensing, an assurance that the
State activities carried out under this subpart are carried out
in conjunction with the entity responsible for such standards,
certification, and licensing under State law.
``(8) A description of how the State educational agency will
ensure that the professional development (including teacher
[[Page 115 STAT. 1624]]
mentoring) needs of teachers will be met using funds under this
subpart and subpart 2.
``(9) A description of the State educational agency's annual
measurable objectives under section 1119(a)(2).
``(10) A description of how the State educational agency
will use funds under this part to meet the teacher and
paraprofessional requirements of section 1119 and how the State
educational agency will hold local educational agencies
accountable for meeting the annual measurable objectives
described in section 1119(a)(2).
``(11) In the case of a State that has a charter school law
that exempts teachers from State certification and licensing
requirements, the specific portion of the State law that
provides for the exemption.
``(12) An assurance that the State educational agency will
comply with section 9501 (regarding participation by private
school children and teachers).
``(c) Deemed Approval.--An application submitted by a State
educational agency pursuant to subsection (a) shall be deemed to be
approved by the Secretary unless the Secretary makes a written
determination, prior to the expiration of the 120-day period beginning
on the date on which the Secretary received the application, that the
application is not in compliance with this subpart.
``(d) Disapproval.--The Secretary shall not finally disapprove the
application, except after giving the State educational agency notice and
an opportunity for a hearing.
``(e) Notification.--If the Secretary finds that the application is
not in compliance, in whole or in part, with this subpart, the Secretary
shall--
``(1) give the State educational agency notice and an
opportunity for a hearing; and
``(2) notify the State educational agency of the finding of
noncompliance and, in such notification, shall--
``(A) cite the specific provisions in the
application that are not in compliance; and
``(B) request additional information, only as to the
noncompliant provisions, needed to make the application
compliant.
``(f) Response.--If the State educational agency responds to the
Secretary's notification described in subsection (e)(2) during the 45-
day period beginning on the date on which the agency received the
notification, and resubmits the application with the requested
information described in subsection (e)(2)(B), the Secretary shall
approve or disapprove such application prior to the later of--
``(1) the expiration of the 45-day period beginning on the
date on which the application is resubmitted; or
``(2) the expiration of the 120-day period described in
subsection (c).
``(g) Failure To Respond.--If the State educational agency does not
respond to the Secretary's notification described in subsection (e)(2)
during the 45-day period beginning on the date on which the agency
received the notification, such application shall be deemed to be
disapproved.
[[Page 115 STAT. 1625]]
``SEC. 2113. STATE USE OF FUNDS. <<NOTE: 20 USC 6613.>>
``(a) In General.--A State that receives a grant under section 2111
shall--
``(1) reserve 95 percent of the funds made available through
the grant to make subgrants to local educational agencies as
described in subpart 2;
``(2) reserve 2.5 percent (or, for a fiscal year described
in subsection (b), the percentage determined under subsection
(b)) of the funds to make subgrants to local partnerships as
described in subpart 3; and
``(3) use the remainder of the funds for State activities
described in subsection (c).
``(b) Special Rule.--For any fiscal year for which the total amount
that would be reserved by all States under subsection (a)(2), if the
States applied a 2.5 percentage rate, exceeds $125,000,000, the
Secretary shall determine an alternative percentage that the States
shall apply for that fiscal year under subsection (a)(2) so that the
total amount reserved by all States under subsection (a)(2) equals
$125,000,000.
``(c) State Activities.--The State educational agency for a State
that receives a grant under section 2111 shall use the funds described
in subsection (a)(3) to carry out one or more of the following
activities, which may be carried out through a grant or contract with a
for-profit or nonprofit entity:
``(1) Reforming teacher and principal certification
(including recertification) or licensing requirements to ensure
that--
``(A)(i) teachers have the necessary subject matter
knowledge and teaching skills in the academic subjects
that the teachers teach; and
``(ii) principals have the instructional leadership
skills to help teachers teach and students learn;
``(B) teacher certification (including
recertification) or licensing requirements are aligned
with challenging State academic content standards; and
``(C) teachers have the subject matter knowledge and
teaching skills, including technology literacy, and
principals have the instructional leadership skills,
necessary to help students meet challenging State
student academic achievement standards.
``(2) Carrying out programs that provide support to teachers
or principals, including support for teachers and principals new
to their profession, such as programs that--
``(A) provide teacher mentoring, team teaching,
reduced class schedules, and intensive professional
development; and
``(B) use standards or assessments for guiding
beginning teachers that are consistent with challenging
State student academic achievement standards and with
the requirements for professional development activities
described in section 9101.
``(3) Carrying out programs that establish, expand, or
improve alternative routes for State certification of teachers
and principals, especially in the areas of mathematics and
science, for highly qualified individuals with a baccalaureate
or master's degree, including mid-career professionals from
other occupations, paraprofessionals, former military personnel,
[[Page 115 STAT. 1626]]
and recent college or university graduates with records of
academic distinction who demonstrate the potential to become
highly effective teachers or principals.
``(4) Developing and implementing mechanisms to assist local
educational agencies and schools in effectively recruiting and
retaining highly qualified teachers, including specialists in
core academic subjects, principals, and pupil services
personnel, except that funds made available under this paragraph
may be used for pupil services personnel only--
``(A) if the State educational agency is making
progress toward meeting the annual measurable objectives
described in section 1119(a)(2); and
``(B) in a manner consistent with mechanisms to
assist local educational agencies and schools in
effectively recruiting and retaining highly qualified
teachers and principals.
``(5) Reforming tenure systems, implementing teacher testing
for subject matter knowledge, and implementing teacher testing
for State certification or licensing, consistent with title II
of the Higher Education Act of 1965.
``(6) Providing professional development for teachers and
principals and, in cases in which a State educational agency
determines support to be appropriate, supporting the
participation of pupil services personnel in the same type of
professional development activities as are made available to
teachers and principals.
``(7) Developing systems to measure the effectiveness of
specific professional development programs and strategies to
document gains in student academic achievement or increases in
teacher mastery of the academic subjects the teachers teach.
``(8) Fulfilling the State educational agency's
responsibilities concerning proper and efficient administration
of the programs carried out under this part, including provision
of technical assistance to local educational agencies.
``(9) Funding projects to promote reciprocity of teacher and
principal certification or licensing between or among States,
except that no reciprocity agreement developed under this
paragraph or developed using funds provided under this part may
lead to the weakening of any State teaching certification or
licensing requirement.
``(10) Developing or assisting local educational agencies in
the development and use of proven, innovative strategies to
deliver intensive professional development programs that are
both cost-effective and easily accessible, such as strategies
that involve delivery through the use of technology, peer
networks, and distance learning.
``(11) Encouraging and supporting the training of teachers
and administrators to effectively integrate technology into
curricula and instruction, including training to improve the
ability to collect, manage, and analyze data to improve
teaching, decisionmaking, school improvement efforts, and
accountability.
``(12) Developing, or assisting local educational agencies
in developing, merit-based performance systems, and strategies
that provide differential and bonus pay for teachers in high-
need academic subjects such as reading, mathematics, and science
and teachers in high-poverty schools and districts.
[[Page 115 STAT. 1627]]
``(13) Providing assistance to local educational agencies
for the development and implementation of professional
development programs for principals that enable the principals
to be effective school leaders and prepare all students to meet
challenging State academic content and student academic
achievement standards, and the development and support of school
leadership academies to help exceptionally talented aspiring or
current principals and superintendents become outstanding
managers and educational leaders.
``(14) Developing, or assisting local educational agencies
in developing, teacher advancement initiatives that promote
professional growth and emphasize multiple career paths (such as
paths to becoming a career teacher, mentor teacher, or exemplary
teacher) and pay differentiation.
``(15) Providing assistance to teachers to enable them to
meet certification, licensing, or other requirements needed to
become highly qualified by the end of the fourth year for which
the State receives funds under this part (as amended by the No
Child Left Behind Act of 2001).
``(16) Supporting activities that ensure that teachers are
able to use challenging State academic content standards and
student academic achievement standards, and State assessments,
to improve instructional practices and improve student academic
achievement.
``(17) Funding projects and carrying out programs to
encourage men to become elementary school teachers.
``(18) Establishing and operating a center that--
``(A) serves as a statewide clearinghouse for the
recruitment and placement of kindergarten, elementary
school, and secondary school teachers; and
``(B) establishes and carries out programs to
improve teacher recruitment and retention within the
State.
``(d) Administrative Costs.--A State educational agency or State
agency for higher education receiving a grant under this part may use
not more than 1 percent of the grant funds for planning and
administration related to carrying out activities under subsection (c)
and subpart 3.
``(e) Coordination.--A State that receives a grant to carry out this
subpart and a grant under section 202 of the Higher Education Act of
1965 shall coordinate the activities carried out under this subpart and
the activities carried out under that section.
``(f) Supplement, Not Supplant.--Funds received under this subpart
shall be used to supplement, and not supplant, non-Federal funds that
would otherwise be used for activities authorized under this subpart.
