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Method of Distribution

The Federal percentage and the low-income factor for computing basic grants for fiscal year 1966 are fixed in the legislation at 50 percent and $2,000 respectively, with each to be established by the Congress by law for the two succeeding fiscal years. Up to 2 percent of the appropriation is reserved for Puerto Rico, American Samoa, Guam, the Virgin Islands, and the Trust Territory of the Pacific Islands.

Maximum amounts which may be allocated for grants to local education agencies are based on the number of children of school age (5-17 years) from low-income families in the school district, multiplied by one-half the average per pupil expenditure in the State. Children from families receiving more than $2,000 in aid to dependent children under the Social Security Act as amended also are counted in cormuting the allocation.

School districts within States are eligible for suballocations if the number of eligible children is at least 100 or is equal to at least 3 percent of the total number of children aged 5-17 years in the district, whichever is less, and provided that the number is not less than 10. Where data are not available on a school district basis, all districts in any county with at least 100 such children are eligible.

Special allocations are made for State-operated or supported schools for handicapped children. These allocations are based on the average daily attendance in such schools multiplied by one-half the average per pupil expenditure in regular schools in the State.

A letter of credit is established for each State. The State education agency then may authorize grants against this letter of credit and to (1) local agencies, and (2) State agencies operating or supporting schools for handicapped children.

Criteria for Decision:

In considering applications, the State education agency weighs such factors as the size, scope, and quality of the project and its promise of success in meeting the special needs of educationally deprived children in school attendance areas having high concentrations of children from lowincome families. The State education agency approves projects when (1) they are in conformity with the law (which specifically limits use of Federal funds for the program to elementary and secondary education not beyond the 12th grade), and (2) they meet criteria and are consistent with guidelines established by the U.S. Commissioner of Education.

Source of Data:

Number of school-age children from low-income families: A special tabulation based on the 1960 Decennial Census was made for the Office of Education by the U.S. Department of Commerce, Bureau of the Census.

Regulations: 30 F.R. 11810, September 15, 1965, as amended by 31 F.R. 4299, March 11, 1966--45 C.F.R. 116 (with program authorization extending through fiscal year 1968).

Matching Requirements

None.

Who May Receive Federal Aid

State education agencies (for administration of the program and for grants; namely, to local education agencies having administrative control and direction of free public education, and to State agencies operating or supporting schools for handicapped children).

Application Procedure

Local education agencies and State agencies eligible under the law, apply to the appropriate State education agency. After its review of appli.cations and approval of those which meet requirements of the law and the regulations, the State education agency forwards a State application to the Commissioner of Education with (1) certification of authority to serve as the State education agency for purposes of the program, (2) required assurances on administration and on fiscal control, and (3) designation of the officer to receive and have custody of the funds.

Developments During the Past Year

As soon as enabling legislation was signed on April 11, 1965, task forces began working on information kits and regulations. In addition, field visits were made to various centers throughout the country to answer questions and discuss plans pending activation of the programs in fiscal year 1966 when related Federal funds became available.

Legal Basis

Public Law 89-10 (Elementary and Secondary Education Act of 1965), April 11, 1965, title I (79 Stat. 27) amended Public Law 81-874, September 30, 1950 (64 Stat. 1100) as amended. It divided the basic legislation into three titles, with authorization for the program for educationally deprived children being title II, and with title III "General" including definitions under the amended Public Law 81-874 as a whole. Title II then was amended by Public Laws 89-77, July 21, 1965, section 3 (79 Stat. 243) and 89-313, November 1, 1965, sections 6 and 7 (79 Stat. 1161)--20 U.S.C. 241a.

For detail on amendments to Public Law 81-874 since its enactment in 1950, see Legal Basis in the entry on "School Maintenance and Operation in Federally Affected Areas and Major Disaster Areas," page 167.

Additional information may be obtained from: Division of Program Operations, Bureau of Elementary and Secondary Education, Office of Education, U.S. Department of Health, Education, and Welfare, Washington, D. C. 20202.

EDUCATIONAL OPPORTUNITY

Purpose

To assist qualified high school graduates of exceptional financial need to gain the benefits of higher education.

The Higher Education Act of 1965 authorizes funds for institutions of higher learning to use in making educational opportunity grants to eligible students. As determined by the institution, individual grants range from $200 to $800 for each academic year during which the student needs the aid, with the possibility of an extra $200 for the student who was in the upper half of his class during the preceding academic year.

To receive an educational opportunity grant, a student must show evidence of academic or creative promise and capability of maintaining good standing in the course of study selected. In addition, he must be (a) a United States national or be in the country for other than a temporary purpose and intending to become a permanent resident, (b) accepted for enrollment or in good standing and in full-time attendance at an undergraduate institution of higher education having an agreement under the program with the U.S. Commissioner of Education, (c) in exceptional financial need, and (d) financially dependent on an educational opportunity grant to pursue his course of study.

The term "State" is defined in the Act to mean any of the 50 States of the Union, the District of Columbia, Puerto Rico, American Samoa, Guam, or the Virgin Islands.

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An initial allotment of funds is made to each State, as defined in the Act, based on the number of students enrolled on a full-time basis in institutions of higher education in that State as compared with the total full-time enrollment in the Nation. Within each State, institutions of higher education which have entered into agreements with the Commissioner of Education, receive allocations of funds for the payment of educational opportunity grants on the basis of applications filed with and approved by the Commissioner. For academic years other than the initial one, allocations are to be made in such manner as the Commissioner of Education deems necessary to enable students who received payment for the initial academic year of study to pursue their courses of study.

Reallotment:

If the allotment to a State exceeds the total sum required on the basis of approved applications for any fiscal year, the unused portion may be reallotted by the Commissioner of Education to other States according to criteria he determines will best assist in achieving the purposes of the program.

Matching Requirements

Each institution entering into an agreement with the Commissioner of Education must expend from other sources for student aid programs under its control each year an amount that is not less than its average annual expenditures for such purposes during the three fiscal years preceding the one in which the agreement is made.

Who May Receive Federal Aid

Institutions of higher education which have entered into an agreement under the program and with the Commissioner of Education.

Application Procedure

Following guidelines and forms supplied by the Office of Education, institutions submit applications to participate in the program to the appropriate Office of Education Regional Representative for Higher Education so that applications may be acted upon by a panel comprised of financial aid administrators in the institutions of higher education located in the region. (Students submit applications for financial assistance to participating institutions.)

Developments During the Past Year

The enabling legislation and the initial appropriation were developments in fiscal year 1966.

Legal Basis

Public Law 89-329 (Higher Education Act of 1965), November 8, 1965, title IV, part A (79 Stat. 1232)--20 U.S.C. 1061.

Additional information may be obtained from: Division of Student Financial Aid, Office of Education, U.S. Department of Health, Education, and Welfare, Washington, D.c. 20202.

1 For addresses, see page 527.

Purpose

EDUCATIONAL RESEARCH AND RELATED ACTIVITIES

1.

To expand knowledge about the educational process.

2. To develop promising educational programs and techniques.

3.

To disseminate results of research and related efforts to educators and the public.

4. To train researchers in the field of education.

5. To carry out related activities for the improvement of education.

Inauguration of a general program of cooperative research in fiscal year 1957 marked the first of the systematic research programs in the field of education to be conducted outside the Office of Education with Federal support administered by the Office. The quest for educational improvement through research resulted in authorization for the Office to administer certain specialized programs which also are cooperative in nature.

The general one is the largest, most varied, and most flexible in the group. It is known as the Cooperative Research Program. The specialized ones are concerned with Language Development Research and Studies, Media for Educational Purposes, Captioned Films for the Deaf, Education of Handicapped Children, Foreign Currency Financing, Vocational Education Research and Training, and Library Research and Development.

Method of Distribution

Scope and purpose of an eligible proposal determine whether Federal funding is under the Cooperative Research Program or one of the specialized cooperative programs. Proposals may be for support of a program of extended research, development, and implementation or for support of a single-purpose limited-time project. Funds in support of a program (such as a research and development center or an educational laboratory) are contingent on an organizational structure which can be expected to ensure continued professional competence and fiscal responsibility in keeping with demands of the program.

Proposals under the general or any of the specialized cooperative research programs are screened by the staff for conformity with (a) law and any pertinent regulations, (b) policy established by the Office with the assistance of the Research Advisory Council consisting of members from outside the Office, and (c) related Office manuals or guidelines on submission of proposals. This screening is applicable both to (a) unsolicited proposals which represent the majority and which usually are submitted by those interested in carrying forward the activity, and (b) the small number of proposals which are solicited by the Office to fill critical gaps in the total research effort.

After preliminary screening and action to obtain missing information, proposals are reviewed by outside consultants from appropriate fields of specialization. These consultants read, evaluate, and rate proposals in

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