ADEQUACY OF FUNDING RULE
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''.
``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
``(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
``(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
``(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
``(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).