ALLOTMENTS TO STATE
SEC. 4202. ALLOTMENTS TO STATES.
``(a) Reservation.--From the funds appropriated under section 4206
for any fiscal year, the Secretary shall reserve--
``(1) such amounts as may be necessary to make continuation
awards to subgrant recipients under covered programs (under the
terms of those grants);
``(2) not more than 1 percent for national activities, which
the Secretary may carry out directly or through grants and
contracts, such as providing technical assistance to eligible
entities carrying out programs under this part or conducting a
national evaluation; and
``(3) not more than 1 percent for payments to the outlying
areas and the Bureau of Indian Education, to be allotted in
accordance with their respective needs for assistance under this
part, as determined by the Secretary, to enable the outlying
areas and the Bureau to carry out the purpose of this part.
``(b) State Allotments.--
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``(1) Determination.--From the funds appropriated under
section 4206 for any fiscal year and remaining after the
Secretary makes reservations under subsection (a), the Secretary
shall allot to each State for the fiscal year an amount that
bears the same relationship to the remainder as the amount the
State received under subpart 2 of part A of title I for the
preceding fiscal year bears to the amount all States received
under that subpart for the preceding fiscal year, except that no
State shall receive less than an amount equal to one-half of 1
percent of the total amount made available to all States under
``(2) Reallotment of unused funds.--If a State does not
receive an allotment under this part for a fiscal year, the
Secretary shall reallot the amount of the State's allotment to
the remaining States in accordance with this part.
``(c) State Use of Funds.--
``(1) In general.--Each State that receives an allotment
under this part shall reserve not less than 93 percent of the
amount allotted to such State under subsection (b), for each
fiscal year for awards to eligible entities under section 4204.
``(2) State administration.--A State educational agency may
use not more than 2 percent of the amount made available to the
State under subsection (b) for--
``(A) the administrative costs of carrying out its
responsibilities under this part;
``(B) establishing and implementing a rigorous peer-
review process for subgrant applications described in
section 4204(b) (including consultation with the
Governor and other State agencies responsible for
administering youth development programs and adult
learning activities); and
``(C) awarding of funds to eligible entities (in
consultation with the Governor and other State agencies
responsible for administering youth development programs
and adult learning activities).
``(3) State activities.--A State educational agency may use
not more than 5 percent of the amount made available to the
State under subsection (b) for the following activities:
``(A) Monitoring and evaluating programs and
activities assisted under this part.
``(B) Providing capacity building, training, and
technical assistance under this part.
``(C) Conducting a comprehensive evaluation
(directly, or through a grant or contract) of the
effectiveness of programs and activities assisted under
``(D) Providing training and technical assistance to
eligible entities that are applicants for or recipients
of awards under this part.
``(E) Ensuring that any eligible entity that
receives an award under this part from the State aligns
the activities provided by the program with the
challenging State academic standards.
``(F) Ensuring that any such eligible entity
identifies and partners with external organizations, if
available, in the community.
``(G) Working with teachers, principals, parents,
the local workforce, the local community, and other
stakeholders to review and improve State policies and
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to support the implementation of effective programs
under this part.
``(H) Coordinating funds received under this part
with other Federal and State funds to implement high-
``(I) Providing a list of prescreened external
organizations, as described under section 4203(a)(11).
Previously not included in NCLB.