SEC. 2101/2111

  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.

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            ``(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.