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(D) If the local educational agency rejects the determination of the Secretary, or if the remedy required is not undertaken within the time established and the Secretary determines that an extension of the time established will not effectively encourage the remedy required, the Secretary shall withhold payment of all moneys to which such local agency is entitled under section 238(d)(2)(D) of this title until such time as the remedy required is undertaken, except where the complaining tribe or its designee formally requests that such funds be released to the local educational agency: Provided, That the Secretary may not withhold such moneys during the course of the school year if he determines that it would substantially disrupt the educational programs of the local educational agency.

(E) If the local educational agency rejects the determination of the Secretary and a tribe exercises the option under section 1101(d) of the Education Amendments of 1978, to have education services provided either directly by the Bureau of Indian Affairs or by contract with that Agency, any Indian students affiliated with that tribe who wish to remain in attendance at the local educational agency against whom the complaint which led to the tribal action (under such subsection (d)) was lodged may be counted with respect to that local educational agency for the purpose of receiving funds under section 238(d)(2)(D) of this title. In such event, funds under such section shall not be withheld pursuant to subparagraph (D) and no further complaints with respect to such students may be filed under subparagraph (C)(i).

(F) This paragraph is based upon the special relationship between the Indian nations and the United States and nothing in it shall be deemed to relieve any State of any duty with respect to any citizens of that State.

(c) Adjustments where necessitated by appropriations

If the sums appropriated for any fiscal year for making payments on the basis of entitlements established under sections 237, 238, and 239 of this title for that year are not sufficient to pay in full the total amounts which the Secretary estimates all local educational agencies are entitled to receive under such sections for such year, the Secretary shall allocate such sums among local educational agencies and make payments to such agencies as follows:

(1) He shall first allocate to each local educational agency which is entitled to a payment under section 237 of this title an amount equal to 100 per centum of the amount to which it is entitled as computed under that section for such fiscal year and he shall further allocate to each local educational agency which is entitled to a payment under section 238 of this title an amount equal to 25 per centum of the amount to which it is entitled as computed under section 238(d) of this title for such fiscal year.

(2)(A) From that part of such sums which remains after the allocation required by paragraph (1) for any fiscal year, he shall allocate an additional amount equal to 65 per centum of the amounts described in the following schedule:

(i) To each local educational agency

(I) with respect to which the local contribution rate has been increased under paragraph (2)(B) of section 238(d) of this title, which equals 75 per centum of the amount to which such agency is entitled as computed under section 238(d) of this title for such fiscal year; and

(II) described in clause (A) of section 238(d)(1) of this title which equals 75 per centum of the amount to which such agency is entitled, as computed under section 238(d) of this title, with respect to a determination of number of children under section 238(a) and (b)(3) of this title of such fiscal year;

(ii) to each local educational agency which provides free public education for children who reside on Indian land, as described in clause (A) of section 244(1) of this title, which equals 75 per centum of the amount to which such agency is entitled under section 238(d)(2)(D) of this title;

(iii) to each local educational agency with respect to which a number of children is determined under clause (2) of section 238(a) of this title which equals 65 per centum of the amount to which such agency is entitled on the basis of determining such children as computed under section 238(d) of this title, for such fiscal year;

(iv) to each local educational agency with respect to which a number of children is determined under clause (1) of section 238(a) of this title which equals 63 per centum of the amount to which such agency is entitled on the basis of determining such children, as computed under section 238(d) of this title, for such fiscal year;

(v) to each local educational agency with respect to which a number of children is determined under clause (3) of section 238(b) of this title (other than such children with respect to whom a payment is made under clause (i)(II) of this subparagraph) which equals 35 per centum of the amount to which such agency is entitled on the basis of determining such children, as computed under section 238(d) of this title, for such fiscal year;

(vi) to each local educational agency with respect to which a number of children determined under clause (1) and clause (2)(A) of section 238(b) of this title which equals 32 per centum of the amount to which such agency is entitled on the basis of determining such children, as computed under section 238(d) of this title for such fiscal year;

(vii) to each local educational agency with respect to which a number of children is determined under clause (2)(B) of section 238(b) of this title which equals 28 per centum of the amount to which such agency is entitled on the basis of determining such children, as computed under section 238(d) of this title, for such fiscal year. (B) From that part of the sums which remains after the allocation required by paragraph (1) and by subparagraph (A) of this

paragraph for any fiscal year, he shall, in accordance with the requirements of subsection (e) of this section, allocate an amount not to exceed 35 per centum of the amounts described in the schedule set forth in subparagraph (A).

(3) Any sums remaining after allocations are made pursuant to paragraph (2) for any fiscal year shall be allocated by the Secretary among local educational agencies which have unsatisfied entitlements established under sections 238 and 239 of this title in proportion to the degree to which such entitlements are unsatisfied for that fiscal year, after allocations are made pursuant to paragraphs (1) and (2).

No allocation may be made pursuant to paragraph (2) or (3) and no payment may be paid on the basis of any such allocation unless allocations are made pursuant to paragraph (1) and payments are made on the basis of such allocations. No allocation may be made pursuant to any clause of paragraph (2)(A) and no payment may be made on the basis of any such allocation unless allocations are made pursuant to all of the clauses of such paragraph and payments are made on the basis of such allocations.

(d) Treatment of payments by States to determine eligibility for, and amount of, State aid; notice and opportunity for hearing; “State aid” and “equalize expenditures" defined; State equalization (1) Except as provided in paragraph (2), no payments may be made under this subchapter for any fiscal year to any local educational agency in any State (A) if that State has taken into consideration payments under this subchapter in determining—

(i) the eligibility of any local educational agency in that State for State aid for free public education of children; or

(ii) the amount of such aid with respect to any such agency;

during that fiscal year or the preceding fiscal year, or (B) if such State makes such aid available to local educational agencies in such a manner as to result in less State aid to any local educational agency which is eligible for payments under this subchapter than such agency would receive if such agency were not so eligible.

(2)(A) Notwithstanding paragraph (1) of this subsection, if a State has in effect a program of State aid for free public education for any fiscal year, which is designed to equalize expenditures for free public education among the local educational agencies of that State, payments under this subchapter for any fiscal year may be taken into consideration by such State in determining the relative

(i) financial resources available to local educational agencies in that State; and

(ii) financial need of such agencies for the provision of free public education for children served by such agency, provided that a State may consider as local resources funds received under this subchapter only in proportion to the share that local revenues covered under a State equalization program are of total local revenues.

Whenever a State educational agency or local educational agency will be adversely affected by the operation of this subsection, such agency shall be afforded notice and an opportunity for a hearing prior to the reduction or termination of payments pursuant to this subsection.

(B) The terms "State aid" and "equalize expenditures" as used in this subsection shall be defined by the Secretary by regulation, after consultation with State and local educational agencies affected by this subsection, provided that the term “equalize expenditures" shall not be construed in any manner adverse to a program of State aid for free public education which provides for taking into consideration the additional cost of providing free public education for particular groups or categories of pupils in meeting the special educational needs of such children as handicapped children, economically disadvantaged, those who need bilingual education, and gifted and talented children.

(C) In the application of subparagraph (A) of this paragraph to any State having a program described in such subparagraph (A) in effect on October 12, 1976, no payment may be withheld from and no repayment may be required of any State or local educational agency for any period prior to promulgation of final regulations, or, if the State is not in conformance with such regulations, until July 1, 1977.

(C) (i) If a State desires to take payments under this section into consideration as provided in this paragraph for any fiscal year, that State shall, not later than sixty days prior to the beginning of such fiscal year, submit notice to the Secretary of its intention to do so. Such notice shall be in such form and be accompanied by such information as to enable the Secretary to determine the extent to which the program of State aid of that State is consistent with the provisions of subparagraph (A). In addition, such notice shall be accompanied by such evidence as the Secretary finds necessary that each local educational agency in that State has been given notice of the intention of the State. If the Secretary determines that the program of State aid of a State submitting notice under this subparagraph is consistent with the provisions of subparagraph (A), the Secretary shall certify such determination to that State.

(ii) Prior to certifying any determination under division (1) for any State for any fiscal year, the Secretary shall give the local educational agencies in that State an opportunity for a hearing at which such agencies may present their views with respect to the consistency of the State aid program of that State with the provisions of subparagraph (A).

(iii) The Secretary shall not finally deny to any State for any fiscal year certification of a determination under division (i) without first giving that State an opportunity for a hearing.

'So in original. Probably should be "(D)".

(e) Discretionary allocations

(1) In carrying out the required allocations under paragraph (2) of subsection (c) of this section, if any amount remains after making allocations under paragraph (2)(A) of such subsection, the Secretary shall allocate, from the amounts available under paragraph (2)(B) of such subsection, to each local educational agency described in the schedule in such paragraph (2)(A) an amount which shall not be less than 90 per centum of the amount paid to such agency under this section for the preceding fiscal year. If sums appropriated for any fiscal year for making payments under this section are not sufficient to pay in full the amount to which each local educational agency is entitled under the previous sentence, such amounts shall be ratably reduced.

(2) Any sums which remain from the amounts available under paragraph (2)(B) of subsection (c) of this section after making payments required by the first sentence of paragraph (1) of this subsection shall be allocated by the Secretary among local educational agencies which have unsatisfied entitlements under sections 238 and 239 of this title in accordance with appropriations Acts.

(f) Use of funds with respect to entitlements increased under section 238(d)(2)(C) of this title The amount of the payment to any local educational agency for any fiscal year which is attributable to a determination of children for increased payments under subparagraph (C) of section 238(d)(2) of this title shall be used by such agency for special educational programs designed to meet the special educational needs of children with respect to whom such determination is made.

(g) Hearing and review

Each local educational agency which is adversely affected or aggrieved by any action of the Secretary under this subchapter shall be entitled to a hearing on, and review of, such action in the same manner as if such agency were a person under the provisions of chapters 5 and 7 of title 5.

(Sept. 30, 1950, ch. 1124, title I, § 5, formerly § 5, 64 Stat. 1106; Aug. 8, 1953, ch. 402, §§ 6, 7, 67 Stat. 534; Aug. 3, 1956, ch. 915, title II, § 209, 70 Stat. 972; renumbered and amended Apr. 11, 1965, Pub. L. 89-10, title I, § 2, 79 Stat. 27; Nov. 3, 1966, Pub. L. 89-750, title II, §§ 202, 203, 80 Stat. 1211, 1212; Oct. 16, 1968, Pub. L. 90-576, title III, § 305(a), 82 Stat. 1097; Apr. 13, 1970, Pub. L. 91-230, title II, § 203(c)(4), 84 Stat. 156; June 23, 1972, Pub. L. 92-318, title IV, § 411(c)(1), 86 Stat. 338; Aug. 21, 1974, Pub. L. 93-380, title III, §§ 304(c)(1), (2), (d)(2), 305(a)(2), 88 Stat. 522, 523, 529; Apr. 21, 1976, Pub. L. 94-273, § 3(5), 90 Stat. 376; Oct. 12, 1976, Pub. L. 94-482, title III, § 330(a), (b)(1)–(3), 90 Stat. 2221; Nov. 1, 1978, Pub. L. 95-561, title X, §§ 1003(c), 1005, 1006(a), 1007, 1008, title XI, § 1101(b), (c), (e), 92 Stat. 2306-2309, 2313, 2315; Aug. 6, 1979, Pub. L. 96-46, § 3(b), 93 Stat. 342; Oct. 17, 1979, Pub. L. 96-88, title III, § 301(a)(1), title V, § 507, 93 Stat. 677, 692.)

REFERENCES IN TEXT

Section 1101(d) of the Education Amendments of 1978, referred to in subsec. (b)(3)(E), is section 1101(d) of Pub. L. 95–561, title XI, Nov. 1, 1978, 92 Stat. 2315, which is set out as a note below.

AMENDMENTS

1979 Subsec. (b)(3)(C)(i). Pub. L. 96-46, § 3(b)(1), substituted "may, in its discretion and without regard to the requirements of any other provision of law, file" for "may file".

Subsec. (b)(3)(E). Pub. L. 96-46, § 3(b)(2), added subpar. (E). Former subpar. (E) redesignated as (F). Subsec. (b)(3)(F). Pub. L. 96-46, § 3(b)(2), redesignated former subpar. (E) as (F).

Subsec. (c)(2)(A)(v). Pub. L. 96-46, § 3(b)(3), substituted "clause (i)(II) of this subparagraph" for "clause (A)(ii) of this paragraph”.

1978-Subsec. (a). Pub. L. 95-561, § 1101(b), struck out designation “(1)” preceding "Any local educational agency" and struck out par. (2) which related to applications submitted for payments on the basis of children who resided, or resided with parents employed, on Indian lands.

Subsec. (b). Pub. L. 95-561, §§ 1005, 1101(c), designated existing provisions as par. (1) and added pars. (2) and (3).

Subsec. (c). Pub. L. 95-561, §§ 1003(c), 1007(a), 1101(e), added the subpar. designation “(A)" following the existing par. (2) designation, redesignated existing subpars. (A)-(F) as cls. (i)(II) and (iii)–(vii), respectively, of the redesignated par. (2)(A), added cls. (i)(I) and (ii) thereof, added par. (2)(B) following the redesignated par. (2)(A)(vii), added reference to section 238(b)(3) of this title in the redesignated par. (2)(A)(i)(II), added "(other than such children with respect to whom a payment is made under clause (A)(ii) of this paragraph)" following "section 238(b) of this title" in redesignated par. (2)(A)(v), substituted "amount equal to 65 per centum of the amounts described in the following schedule:" for "amount- --" in the provisions preceding redesignated par. (2)(A)(i), and, in the provisions following par. (3), substituted "paragraph (2)(A)" for "paragraph (2)" the second place it appears.

Subsec. (d)(2)(C). Pub. L. 95-561, § 1006(a), added subpar. (C) relating to State equalization.

Subsec. (e). Pub. L. 95-561, § 1007(b), substituted provisions relating to the allocation of amounts remaining after making the allocations under subsec. (c)(2)(A) of this section for provisions setting limitations on payments with respect to children on, or residing with a parent employed on, Federal property described in section 244(1)(C) of this title.

Subsec. (g). Pub. L. 95-561, § 1008, added subsec. (g). 1976-Subsec. (c)(1). Pub. L. 94-482, § 330(b)(1), restructured provision and, as so restructured, increased the allocation under section 237 of this title from 25 to 100 per centum of the entitled amount.

Subsec. (c)(2)(G). Pub. L. 94-482, § 330(b)(2), struck out subpar. (G) relating to entitlement under section 237 of this title equal to 35 per centum of computed amount under such section.

Subsec. (c)(3). Pub. L. 94-482, § 330(b)(3), struck out reference to section 237 of this title.

Subsec. (d)(2)(C). Pub. L. 94-482, § 330(a), added subpar. (C).

Subsec. (e)(1). Pub. L. 94-273 substituted "October" for "July".

1974-Pub. L. 93-380, § 305(a)(2), in revising the section, effective on and with respect to appropriations for fiscal years beginning on and after July 1, 1975, substituted provisions of subsecs. (a) to (f) respecting: (a) applications to Commissioner, time of submission, form, information, and definition of "Indian lands"; (b) payments by the Commissioner; (c) adjustments where necessitated by appropriation; (d) treatment of payments by the State in determining eligibility for,

and the amount of, State aid, notice and opportunity for hearing, and definitions of "State aid” and “equalize expenditures"; (e) limitations on payments with respect to children on, or residing with a parent employed on, Federal property described in section 244(1)(C) of this title; and (f) use of funds with respect to entitlements increased under section 238(d)(2)(C) of this title for prior provisions of subsecs. (a) to (d) respecting (a) submission of applications and definition of "Indian lands"; (b) payments; (c) adjustments where necessitated by appropriations; and (d) adjustments for reduction in State aid.

Subsec. (c)1XA). Pub. L. 93-380, § 304(d)(2), provided for determination of entitlement of local educational agencies to payments based on residence in a low-rent housing project assisted under certain Federal provisions "(other than any such property which is Federal property described in section 244(1)(A) of this title)".

Subsec. (d)(1). Pub. L. 93–380, § 304(c)(1), substituted, in subsec. (d)(2), “Except as provided in paragraph (3), no payments" for "No payments", effective for fiscal year 1975 only. Such provision redesignated and amended by Pub. L. 93-380, § 305(a)(2) to read “(d)(1) Except as provided in paragraph (2), no payments", effective on and with respect to appropriations for fiscal years beginning on and after July 1, 1975.

Subsec. (d)(2). Pub. L. 93-380, § 304(c)(2), added par. (3). Such par. (3) redesignated and amended by Pub. L. 93-380, 305(a)(2) to be par. (2) with the following changes: substitution in subpar. (A) “paragraph (1)” for "paragraph (2)” and “adversely affected by the operation of this subsection, such agency shall be afforded notice and an opportunity for a hearing prior to the reduction or termination of payments pursuant to this subsection" for "adversely affected by any decision of the Commissioner pursuant to this subsection, such agency shall be afforded notice and an opportunity for a hearing prior to the implementation of such decision" and in subpar. (B) “defined by the Commissioner by regulation, after consultation with State and local educational agencies affected by this subsection," for "defined by the Commissioner by regulation after consultation with State and local educational agencies affected", effective on and with respect to appropriations for fiscal years beginning on and after July 1, 1975.

1972-Subsec. (a). Pub. L. 92-318 designated existing provisions as par. (1) and added par. (2).

1970-Subsec. (c)(1). Pub. L. 91-230 designated existing provisions of first and second sentences as par. (1), and, among other changes, including phraseological changes, inserted cl. (A), designated existing provisions as cl. (B), inserting therein the exception provisions reading "except as otherwise provided in paragraph (3)" and "except that he shall not take into consideration any part of any entitlement determined under clause (A)” and added provision that "For the purposes of this paragraph, in determining the amount to which each local educational agency is entitled under section 238 of this title, he shall include any increases under paragraph (4) of subsection (c) thereof; but he shall exclude any part of any entitlement determined under clause (A) of this paragraph." Subsec. (c)(2), (3). Pub. L. 91-230 added pars. (2) and (3).

Subsec. (c)(4). Pub. L. 91-230 designated existing provisions of third sentence as par. (4), and, among changes in language, substituted "allocated to a section under paragraph (1)”, “available for making payments under this subchapter", and "basis as is provided in paragraphs (1), (2), and (3)" for "so allocated", "available for carrying out such sections", and "basis as is provided above".

1968-Subsec. (d). Pub. L. 90-576 designated existing provisions as par. (1) and added par. (2).

1966-Subsec. (b). Pub. L. 89-750, § 202, added provision that sums appropriated pursuant to this chapter for any fiscal year shall remain available, for obligation and payments with respect to amounts due local

educational agencies under this subchapter for such year, until the close of the following fiscal year. Subsec. (d). Pub. L. 89-750, § 203, added subsec. (d). 1965-Pub. L. 89-10 substituted "this title" for "this Act", and for purposes of codification, "this title" is changed to "this subchapter".

1956-Subsec. (c). Act Aug. 3, 1956, substituted "subsection (c)(4)" for "subsection (c)(2)" before words "of section 238".

1953-Subsec. (b). Act Aug. 8, 1953, § 6, authorized payments to be made from time to time rather than on a quarterly basis, specifically provided that adjustments can be made for prior erroneous payments whether in the same fiscal year or not, and eliminated the requirement of certification by the Commissioner to the Secretary of the Treasury of the amounts to be paid.

Subsec. (c). Act Aug. 8, 1953, § 7, provided for proportionate allocation of the appropriations available among sections 237, 238, and 239(a) of this title.

EFFECTIVE Date of 1979 AMENDMENT Amendment by Pub. L. 96-46 effective Oct. 1, 1978, see section 8 of Pub. L. 96-46, set out as an Effective Date of 1979 Amendment note under section 2701 of this title.

EFFECTIVE DATE of 1978 AMENDMENT

Section 1101(b) of Pub. L. 95-561 provided in part that the amendment of subsec. (a) by Pub. L. 95-561 is effective with respect to fiscal years beginning on or after Nov. 1, 1978.

Amendment of subsec. (b)(1) and (2) of this section by section 1005 of Pub. L. 95-561 effective with respect to the 1979 fiscal year and subsequent fiscal years, see section 1032 of Pub. L. 95-561, set out as an Effective Date of 1978 Amendment note under section 237 of this title.

Section 1101(c) of Pub. L. 95-561 provided in part that the enactment of subsec. (b)(3) of this section is effective with respect to fiscal years beginning on or after Nov. 1, 1978.

The amendment of the provisions of subsec. (c)(2)(A) preceding cl. (i) and of cls. (i) and (iii)-(vii) thereof, the enactment of subsec. (c)(2)(B), the amendment of the provisions of subsec. (c) following par. (3), and the amendment of subsec. (e) by sections 1003(c) and 1007 of Pub. L. 95-561 to be effective with respect to fiscal year 1980 and subsequent fiscal years, see section 1032(2) of Pub. L. 95-561, set out as an Effective Date of 1978 Amendment note under section 237 of this title.

Section 1101(e) of Pub. L. 95-561 provided in part that the enactment of subsec. (c)(2)(A)(ii) of this section by Pub. L. 95-561 is effective with respect to fiscal years beginning on or after Nov. 1, 1978.

Enactment of subsec. (d)(2)(C) of this section by section 1006(a) of Pub. L. 95-561 effective Nov. 1, 1978, see section 1032(1) of Pub. L. 95-561, set out as an Effective Date of 1978 Amendment note under section 237 of this title.

Enactment of subsec. (g) of this section by section 1008 of Pub. L. 95-561 effective with respect to the 1979 fiscal year and subsequent fiscal years, see section 1032 of Pub. L. 95-561, set out as an Effective Date of 1978 Amendment note under section 237 of this title.

EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94-482 effective 30 days after Oct. 12, 1976, except either as specifically otherwise provided for in section 330(b)(4) of Pub. L. 94-482 [set out below] or effective July 1, 1976, for those amendments providing for authorization of appropriations, see section 532 of Pub. L. 94-482, set out as an Effective Date of 1976 Amendment note under section 1001 of this title.

Pub. L. 94-482, § 330(b)(4), provided that: "The amendments made by this subsection (amending subsec. (c) of this section] shall take effect on July 1, 1975."

EFFECTIVE DATE of 1974 AMENDMENT Amendment by section 305(a)(2) of Pub. L. 93-380 effective on and with respect to appropriations for fiscal years beginning on and after July 1, 1975, see section 305(b)(1), formerly 305(a)(3), of Pub. L. 93-380, set out in part as an Effective Date of 1974 Amendment note under section 238 of this title.

Section 304(c)(3) of Pub. L. 93-380 provided that: "The amendments made by this subsection [amending subsec. (d)(2) and enacting subsec. (d)(3) of this section] shall be effective for fiscal year 1975 only."

Amendment of subsec. (c)(1)(A) by Pub. L. 93-380 effective on and after sixtieth day after Aug. 21, 1974, except as otherwise specified hereunder, see section 2(c) of Pub. L. 93-380, set out as an Effective Date of 1974 Amendment note under section 244 of this title.

EFFECTIVE Date of 1968 AMENDMENT

Section 305(b) of Pub. L. 90-576 provided that: "The amendments made by subsection (a) [adding subsec. (d)(2) of this section] shall become effective with respect to each State on the first day of the first fiscal year which begins after the adjournment of the first complete legislative session (at which State aid may be considered) of such State's legislature held after the date of enactment of this Act [Oct. 16, 1968]."

EFFECTIVE DATE of 1966 AMENDMENT Amendment by Pub. L. 89-750 effective for fiscal years beginning after June 30, 1966, see section 241 of Pub. L. 89-750, set out as an Effective Date of 1966 Amendment note under section 238 of this title.

EFFECTIVE DATE OF 1956 AMENDMENT

Amendment by act Aug. 3, 1956, effective July 1, 1956, see Effective Date of 1956 Amendment note set out under section 237 of this title.

EFFECTIVE DATE OF 1953 AMENDMENT

For effective date of amendments by act Aug. 8, 1953, see section 12 of act Aug. 8, 1953, set out as an Effective Date of 1953 Amendment note under section 237 of this title.

TRANSFER OF FUNCTIONS

"Secretary" and "Secretary's", meaning the Secretary of Education, were substituted for "Commissioner" and "Commissioner's", respectively, in text pursuant to sections 301(a)(1) and 507 of Pub. L. 96-88, which are classified to sections 3441(a)(1) and 3507 of this title and which transferred all functions of the Commissioner of Education to the Secretary of Educa

tion.

EARLY PAYMENTS ON BASIS OF ESTIMATES FOR FISCAL YEAR 1983

Pub. L. 97-276, § 140, Oct. 2, 1982, 96 Stat. 1198, provided that: "Notwithstanding section 5(b)(2) of the Act of September 30, 1950 (Public Law 874, 81st Congress) [subsec. (b)(2) of this section], not later than thirty days after the beginning of the fiscal year, the Secretary of Education shall, on the basis of any application for preliminary payment from any local educational agency which was eligible for a payment during the preceding fiscal year on the basis of entitlements established under section 2 or 3 of such Act [section 237 or 238 of this title], make to such agency a payment of not less than

"(1) in the case of a local educational agency described in section 3(d)(1)(A) of such Act [section 238(d)(1)(A) of this title], 75 per centum of the amount that such agency received during such preceding fiscal year; and

"(2) in the case of any other local educational agency, 50 per centum of the amount that such agency received during such preceding fiscal year." NONCOMPLIANCE WITH REGULATIONS; RESTITUTION OF FUNDS DISTRIBUTED ΤΟ LOCAL AGENCIES FOR 1977-1978 SCHOOL YEAR

Section 1006(b) of Pub. L. 95-561 provided that: "No State or local educational agency located therein shall, on the basis of noncompliance with standards established by regulations prescribed pursuant to section 5(d)(2) of the Act of September 30, 1950 (Public Law 874, Eighty-first Congress) [subsec. (d)(2) of this section], be required to make restitution of funds distributed to local educational agencies under such Act for the 1977-1978 school year if such State has an equalization program which, for the 1978-1979 school year complies with such standards.”

CONTRACT AUTHORITY OF INDIAN TRIBES IF REMEDIAL ACTION IS NOT TAKEN; ELECTION TO HAVE SERVICES PROVIDED BY BUREAU SCHOOLS; SPECIAL REGULATIONS

Section 1101(d) of Pub. L. 95-561 required the Secretary of Health, Education, and Welfare, in cooperation with the Commissioner of Education, within one year of Nov. 1, 1978, to promulgate special regulations which would provide that where a local educational agency had not undertaken the remedial action required by the Commissioner under subsec. (b)(3)(C)(vi) of this section, the affected tribes could elect for the Bureau of Indian Affairs to provide educational services provided by the local educational agency.

PAYMENTS TO LOCAL EDUCATIONAL AGENCIES DURING FISCAL YEAR ENDING JUNE 30, 1974, UNDER STATE AID PROGRAM DESIGNED TO EQUALIZE EXPENDITURES OF SUCH AGENCIES; EFFECTIVE DATE

Pub. L. 93-150, § 11, Nov. 7, 1973, 87 Stat. 564, provided that subsec. (d)(2) of this section was not to operate to deprive any local educational agency of payments under this chapter during the fiscal year ending June 30, 1974, if such local educational agency was in a State which after June 30, 1972, had adopted a program of State aid for free public education designed to equalize expenditures for education among local educational agencies in that State and that it, i.e., section 11, was to be effective on and after July 1, 1973, and to be deemed to have been enacted on June 30, 1973.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 237 of this title.

§ 241. Education of children where local agencies cannot supply facilities

(a) Necessary arrangements by Secretary; standard of education

In the case of children who reside on Federal property

(1) if no tax revenues of the State or any political subdivision thereof may be expended for the free public education of such children;

or

(2) if it is the judgment of the Secretary, after he has consulted with the appropriate State educational agency, that no local educational agency is able to provide suitable free public education for such children,

the Secretary shall make such arrangements (other than arrangements with respect to the acquisition of land, the erection of facilities, interest, or debt service) as may be necessary to provide free public education for such children.

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