which the school district of such agency is located, or (B) if not in such county," before "in whole or in part in the same State as the school district of such agency", struck out following such phrase "or situated within reasonable commuting distance from the school district of such agency", substituted "section 101 of title 37" for "section 102 of the Career Compensation Act of 1949", and inserted provision for inclusion of children, in average daily attendance at the agency schools, residing on Indian lands.

Subsec. (b). Pub. L. 93-380, § 305(a)(1), in revising provisions, among other changes, substituted "1978" for "1973", "the Commissioner shall, in addition to any determination made with respect to such agency under subsection (a) of this section, determine the number of children (other than children with respect to whom a determination is made for such fiscal year under subsection (a) of this section)," for "the Commissioner shall also determine the number of children (other than children to whom subsection (a) of this section applies)", "section 101 of title 37" for "section 102 of the Career Compensation Act of 1949", and "(other than children to whom subsection (a) of this section or the preceding sentence applies)" for "other than children to whom subsection (a) of this section or any other provision of this subsection applies", inserted in item (2) “(A) in whole or in part in the county in which the school district of such agency is located, or (B) if not in such county," before "in whole or part", substituted following "same State" "as the school district of such agency" for "as such agency or situated within reasonable commuting distance from the school district of such agency", and inserted exception clause.

Pub. L. 93-380, § 304(a)(1), substituted "1975" for "1973" wherever appearing.

Subsec. (c)(1). Pub. L. 93-380, § 305(a)(1), added a new par. (1), incorporating part of first sentence of former par. (2) which read: "No local educational agency shall be entitled to receive any payment for a fiscal year with respect to a number of children determined under subsection (a) or the first sentence of subsection (b) of this section, as the case may be, unless the number of children who were in average daily attendance during such year and to whom such subsection or such sentence applies-(A) is ten or more; and (B) amounts to, whichever is the lesser, four hundred such children, or a number of such children equal to 3 per centum or more of the total number of children who were in average daily attendance during such year and for whom such agency provided free public education. . . ." Former par. (1) provided: "The amount to which a local educational agency is entitled under this section for any fiscal year shall be an amount equal to (A) the local contribution rate (determined under subsection (d) of this section) multiplied by (B) the sum of the number of children determined under subsection (a) of this section and one-half of the number determined under subsection (b) of this section.", now covered in subsec. (d) of this section.

Subsec. (c)(2). Pub. L. 93-380, § 305(a)(1), substituted new provisions respecting eligibility for payments, incorporating in: subpar. (A)(i) former subpar. (A) requirement of ten or more; subpar. (A)(ii) former subpar. (B) provision reading "except that such 3 per centum requirement need not be met by such agency for any period of two fiscal years which follows a fiscal year during which such agency met such requirement and was entitled to payment under the provisions of this section, but the payment, under the provisions of this section to such agency for the second fiscal year of any such two-year period during which such requirement is not met, shall be reduced by 50 per centum of the amount thereof"; subpar. (A)(iii) former third sentence reading "Notwithstanding the provisions of clause (B) of this paragraph, the Commissioner may waive the 3 per centum condition of entitlement contained in such clause whenever, in his judgment, exceptional circumstances exist which would make the application of such condition inequi

table and would defeat the purposes of this subchapter; and subpar. (B) former subsec. (c)(3) provisions described thereunder.

Subsec. (c)(3). Pub. L. 93–380, § 305(a)(1), struck out "No local educational agency shall be entitled to receive any payment for a fiscal year with respect to a number of children determined under the second sentence of subsection (b) of this section unless the number of children who were in average daily attendance to whom such sentence applies amounts to 20 per centum or more of the number of children who were in average daily attendance during such year and for whom such agency provided free public education, but in determining the number of such children under such second sentence no child shall be counted with respect to whose education a payment was made under section 2601(b)(4) of title 22.", now covered in subsec. (c)(2)(B) of this section.

Subsec. (c)(4). Pub. L. 93-380, § 305(a)(1), struck out provisions of former par. (4)(A)-(D), respecting computation of amount of entitlement, now substantially incorporated in subsec. (d)(2)(B) of this section.

Subsec. (c)(5). Pub. L. 93-380, § 305(a)(1), struck out provisions stating "The determinations whether a local educational agency has met the requirements for eligibility under paragraphs (2)(B) and (4)(C) of this subsection for any fiscal year shall be made on the basis of estimates by the Commissioner made prior to the close of such year, except that an underestimate made by the Commissioner pursuant to the foregoing provisions of this sentence shall not operate to deprive an agency of its entitlement to any payments under this section to which it would be entitled had the estimate been accurate.", now incorporated in subsec. (f) of this section.

Subsec. (d). Pub. L. 93-380, § 305(a)(1), substituted new provisions respecting amount of payments, incorporating in: par. (1)(A) provisions of former subsec. (c)(1); par. (2)(B) provisions of former subsec. (c)(4); par. (3)(A) provisions of first, second, and fourth sentences of former subsec. (d); par. (3)(B)(ii) provisions of third sentence of former subsec. (d); par. (3)(B)(iii) provisions of sixth sentence of former subsec. (d); and par. (3)(C)(ii) provisions of fifth sentence of former subsec. (d) of this section.

Subsec. (e). Pub. L. 93-380, § 305(a)(1), substituted new provisions respecting adjustments for decreases in Federal activities for prior provisions which increased the amount the local educational agency would have been entitled but for the decrease in or cessation of Federal activities or the failure of such activities to occur, minus any reduction in current expenditures for such year effected by reason of such decrease or cessation of Federal activities or the failure of such activities to occur when (1) a local educational agency made preparations to provide during a fiscal year free public education for a certain number of children to whom subsec. (a) or (b) applied; (2) such preparations were reasonable in the light of information available at the time preparations were made; and such number was substantially reduced by reason of a decrease in or cessation of Federal activities or by reason of a failure of any of such activities to occur.

Subsec. (f). Pub. L. 93-380, § 305(a)(1), added subsec. (f), effective on and with respect to appropriations for fiscal years beginning on and after July 1, 1975. Former similar provisions were contained in subsec. (c)(5) of this section.

Pub. L. 93-380, § 304(b)(1), inserted provisions, effective on and after July 1, 1974, reading: "Notwithstanding any other provision of subchapter II of this chapter (including the provisions of section 240(c) of this title), a local educational agency with respect to which the number of children determined for any fiscal year under subsection (a) of this section amounts to at least 25 per centum of the total number of children who were in average daily attendance at the schools of such agency during such fiscal year and for whom such agency provided free public education, shall re

ceive an amount equal to 100 per centum of the amounts to which such agency would be otherwise entitled under subsection (a) of this section."

1970-Subsec. (b). Pub. L. 91-230, §§ 201(b), 202(a), substituted "1973" for "1970" in first sentence and substituted provision for determination of refugee children in case of fiscal years ending prior to July 1, 1973, for prior provision for such determination in case of children whose residence changed as a result of land transferred to Mexico for fiscal year ending June 30, 1967, respectively.

Subsec. (c)(2). Pub. L. 91-230, § 202(b), inserted "the first sentence of" before "subsection (b) of this section" in text preceding subpar. (A) and in second sentence and inserted "or such sentence" after "to whom such subsection applies" in text preceding subpar. (A). Subsec. (c)(3). Pub. L. 91-230, § 202(c), added par.

(3).

1968-Subsec. (b). Pub. L. 90-247, §§ 205(a), 301(e), substituted "1970" for "1968" and inserted "; but if, by reason of any other provision of law, this sentence is not considered in computing the amount to which any local educational agency is entitled for the fiscal year ending June 30, 1967, the additional amount to which such agency would have been entitled had this sentence been so considered, shall be added to such agency's entitlement for the first fiscal year for which funds appropriated to carry out this chapter may be used for such purpose" after "international boundary of the United States".

Subsec. (d). Pub. L. 90-247, § 206, inserted in first sentence "and the local educational agency" after "the State educational agency”, substituted in cl. (1) of first sentence provisions requiring the Commissioner to determine which school districts within the State are in his judgment generally comparable to the school districts of the agency for which the computation is being made for provisions which required him to place each school district within the State into a group of generally comparable school districts, substituted in cl. (2) of first sentence "the local educational agencies of such comparable school districts" for "all of the local educational agencies within any such group of comparable school districts", and substituted in third sentence "in those school districts which he has selected under clause (1)" for "in the school districts within the generally comparable groups as determined under clause (1)".

Subsecs. (e), (f). Pub. L. 90-247, § 204(d), struck out subsec. (e) which required deduction of certain Federal contributions in determining total amount which a local educational agency is entitled to receive under this section, and redesignated subsec. (f) as (e).

1966-Subsec. (b). Pub. L. 89-750, § 201(c), (d), substituted provisions for counting of all children of servicemen on active duty for provisions allowing such inclusion but not in cases where the dserviceman was not employed on Federal property except in cases where he had been employed on Federal property and subsequently assigned elsewhere and inserted provision for the determination of the number of children, other than children to whom subsec. (a) or any other provision of subsec. (b) applies, who are receiving free public education, during fiscal year 1967, as the result of a change in residence from land transferred to Mexico as a part of a relocation of an international boundary of the United States.

Subsec. (c)(2)(B). Pub. L. 89-750, § 201(a)(1), inserted ", whichever is the lesser, four hundred such children, or a number of such children equal to" before "3 per centum".

Subsec. (c)(5). Pub. L. 89-750, § 201(a)(2), substituted "requirements for eligibility under paragraphs (2)(B) and (4)(C) of this subsection" for "percentage requirements for eligibility under paragraphs (2) and (4) of this subsection".

Subsec. (d). Pub. L. 89-750, § 201(b), struck out requirement that the Commissioner consult with local educational agencies before determining the local contribution rate, substituted provisions for the place

ment of each school district within the State into a group of generally comparable school districts for provisions for the making of a determination of which school districts within the State are in the judgment of the Commissioner generally comparable to the school district of the agency for which the computation is being made, substituted provisions for working with the expenditures of all of the local educational agencies within the group of comparable school districts in determining the local contribution rate for provisions for working with the expenditures of the local educational agencies of the comparable school districts for which the Commissioner is making the computation, and inserted reference to direct current expenditures by the States for the operation of local educational agencies in the determination of average per pupil expenditures.

Subsec. (e). Pub. L. 89-750, § 201(e), substituted provisions that taxes and other Federal payments made with respect to Federal property be deducted from the gross entitlement of the local educational agency on the same basis for provisions that Federal payments other than taxes be deducted only to the extent that the Federal entitlement claimed because of that property, but that all taxes be deducted without reference to the amount of entitlement attributed to the particular property on which the taxes are paid, eliminated provision under which certain States are allowed to avoid the deduction by not making tax receipts available for current expenses, and provided that deductions on account of other Federal payments which amount to $1,000 or less are to be disregarded.

1965-Subsec. (b). Pub. L. 89-10, § 5, substituted "1968" for "1966”.

Subsec. (c)(2). Pub. L. 89-313 struck out a reference to par. (3).

Pub. L. 89-10, § 2, substituted "this title" for "this Act", and for purposes of codification, "this title" was changed to "this subchapter".

Subsec. (c)(3). Pub. L. 89-313 struck out par. (3) which required a local educational agency's percentage requirement for eligibility (as set forth in par. (2) of this subsection) to be 6 per centum instead of 3 per centum when the average daily attendance at the schools of any local educational agency during the fiscal year ending June 30, 1957, exceeded 35,000.

Pub. L. 89-10, § 2, substituted "this title" for "this Act", and for purposes of codification, "this title" was changed to "this subchapter".

Subsec. (c)(4)(A). Pub. L. 89-10, § 3(a), excluded funds available under subchapter II of this chapter from the computation of funds available.

Subsec. (c)(5). Pub. L. 89-313 struck out a reference to par. (3).

Subsec. (d). Pub. L. 89-10, §§ 2, 4(d)(2), substituted "this title" for "this Act" which, for purposes of codification, was changed to "this subchapter", and inserted "American Samoa" after "Guam" wherever appearing.

1964-Subsec. (b). Pub. L. 88-665 substituted "1966" for "1965".

1963-Subsec. (b). Pub. L. 88-210 substituted "1965" for "1963".

1961-Subsec. (b). Pub. L. 87-344 substituted "1963" for "1961".

1960-Subsec. (d). Pub. L. 86-624 amended subsec. (d) generally, and among other changes, struck out specific references to Hawaii, inserted provisions empowering the Commissioner to determine the local contribution rate for a State in which there is only one local educational agency, and substituted "(other than Puerto Rico, Wake Island, Guam, or the Virgin Islands)" for "in the continental United States (including Alaska)", and "United States (which for the purposes of this sentence and the next sentence means the fifty States and the District of Columbia)" for "continental United States".

1959-Subsec. (d). Pub. L. 86-70 struck out “Alaska," before "Hawaii" in two places, inserted "(including

Alaska)" after "continental United States" in two places, and inserted provisions relating to computation and determination of local contribution rate for local educational agencies in States in which a substantial proportion of the land is in unorganized territory for which a State agency is the local educational agency. 1958-Subsec. (a). Pub. L. 85-620, § 202(a), struck out "ending prior to July 1, 1958" after "entitled under this section for any fiscal year".

Subsec. (b). Pub. L. 85-620, § 202(b), substituted "For the purpose of computing the amount to which a local educational agency is entitled under this section for any fiscal year ending prior to July 1, 1961" for "For the purpose", inserted "(other than children to whom subsection (a) of this section applies)" after "the number of children", and struck out provisions which required local educational agency to elect which subsection should be applicable to a child where both subsection (a) and subsection (b) of this section applied. Subsec. (c)(1). Pub. L. 85-620, § 202(c)(1), struck out "ending prior to July 1, 1958" after "entitled under this section for any fiscal year".

Subsec. (c)(2). Pub. L. 85-620, § 202(c)(2), inserted provisions in cl. (B) permitting payments to local educational agencies in cases where the 3 per centum requirement was not met by the agency for any period of two fiscal years which follow a fiscal year during which the agency met the requirement, requiring reduction of payments in those cases where the 3 per centum requirement was not met for the second fiscal year of any such two-year period, and inserted sentence authorizing the agency to count as children determined under subsection (b) of this section any number of children determined under subsection (a) of this section.

Subsec. (c)(3). Pub. L. 85-620, § 202(c)(3), (4), substituted "June 30, 1957" for "June 30, 1939", inserted proviso making paragraph inapplicable to any agency or consolidated agencies which qualified for payments before August 12, 1958, by virtue of having less than 35,000 average daily attendance during the fiscal year ending June 30, 1939, and struck out provisions which entitled the agency to receive payment with respect to only so many of the number of children whose attendance serves as the basis for eligibility under either subsection (a) or (b), as exceeds 3 per centum of the number of all children in average daily attendance at the schools of such agency during fiscal year for which payment is to be made.

Subsec. (c)(4). Pub. L. 85-620, § 202(c)(5), (6), struck out "ending prior to July 1, 1958" after "local educational agency for any fiscal year" in cl. (A), and “effective for the fiscal year beginning July 1, 1955 and the two succeeding fiscal years" before "the eligibility of such agency" in cl. (D).

Subsec. (d). Pub. L. 85-620, § 202(d), substituted "generally" for "most nearly" in cl. (1), and "50 per centum of the average per pupil expenditure in the continental United States" for "the national average per pupil local contribution rate" in cl. (ii) of fifth sentence, inserted proviso relating to application of cl. (ii) for fiscal year ending June 30, 1959, and in sixth sentence substituted definition of "average per pupil expenditure in such State" and "national average per pupil local contribution rate”.

Subsec. (e). Pub. L. 85-620, § 202(e), inserted "actually" after "(as defined in section 237(b)(1) of this title and".

1956-Subsec. (a). Act Aug. 3, 1956, § 202, substituted "1958" for "1957", and "such fiscal year" for "the preceding fiscal year".

Subsec. (b). Act Aug. 3, 1956, § 203, substituted "such fiscal year" for "the preceding fiscal year", struck out "(other than those specified in subsection (a) of this section)", and inserted at end sentences to permit school district to continue to count children as residing with parent on Federal property after parent has been assigned elsewhere as a member of the Armed Forces.

Subsec. (c). Act Aug. 3, 1956, § 204(a)-(c), substituted pars. (1) to (3) for former par. (1), redesignated par.

(2) as par. (4), and added par. (5). Par. (4), as redesignated, was amended to substitute "1958" for "1957", "such fiscal year" for "the preceding fiscal year", "two succeeding fiscal years" for "succeeding fiscal year", "such year" for "the preceding year", and "such year" for "such preceding year".

Subsec. (d). Act Aug. 3, 1956, § 205, substituted "most nearly comparable" for "generally comparable" and inserted provisions relating to minimum local contribution rate based on the average per pupil local contribution rate in continental United States but not exceeding the average per pupil expenditure in the State where the school district is located, and defining "average per pupil expenditure in such State" and "national average per pupil local contribution rate". Act Aug. 1, 1956, § 10, inserted "Guam," after "Wake Island," in two places.

Subsec. (e). Act Aug. 3, 1956, § 204(d), substituted "subsection (c)(4)” for “subsection (c)(2)”.

Subsec. (f). Act Aug. 3, 1956, § 206, added subsec. (f). 1955-Subsec. (a). Act Aug. 12, 1955, substituted "1957" for "1956".

Subsec. (c). Act Aug. 12, 1955, substituted "1957” for "1956", and inserted provisions in par. (2)(D) to make it applicable to fiscal year 1956.

1953-Subsec. (a). Act Aug. 8, 1953, § 2(a)(1), extended its duration date to July 1, 1956, inserted requirement that to qualify for full contribution the property on which the parent works must be in the same State as the local agency providing the education or within commuting distance, and included in coverage children residing on Federal property whose parent is on active duty in the uniformed services.

Subsec. (b). Act Aug. 8, 1953, § 2(a)(1), struck out the local educational agency's right of election to count children either under said subsec. (a), and included children of parents who work on Federal property within commuting distance of the school district even though not within the same State.

Subsec. (c). Act Aug. 8, 1953, § 2(a)(2), added subsec. (c), struck out existing subsecs. (d), (e), and (f), and redesignated existing subsecs. (c) and (g) as (d) and (e), respectively.

Subsec. (d), formerly subsec. (c). Act Aug. 8, 1953, § 2(b), (c), based the determination of rates on perpupil expenditures of expenditures of districts "generally comparable" rather than "most nearly comparable" to the local agency district, provided that the local contribution rate could not be less than 50 per cent of the per-pupil expenditure from all sources made by local agencies throughout the State for the second fiscal year, and inserted provisions for a special rate determination for the Territories.

Subsec. (e), formerly subsec. (g). Act Aug. 8, 1953, § 2(d), made it inapplicable to subsec. (c)(2), and inserted limitation on deductions in the case of allotments from certain specified funds.

EFFECTIVE DATE OF 1988 AMENDMENT

For effective date and applicability of amendment by Pub. L. 100-297, see section 6303 of Pub. L. 100-297, set out as an Effective Date note under section 2701 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Pub. L. 99-349, title I, July 2, 1986, 100 Stat. 740, provided in part that the amendment of subsec. (d)(3) of this section by Pub. L. 99-349 is effective Oct. 1, 1980.

EFFECTIVE DATE OF 1984 Amendment Amendment by Pub. L. 98-511 effective Oct. 19, 1984, see section 711(a) of Pub. L. 98-511, set out as a note under section 237 of this title.

EFFECTIVE DATE OF 1978 Amendment Amendment of subsecs. (b), (d)(2)(A), and (d)(3) by sections 1001(b), 1002, 1004, and 1031(a) 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 a note under section 237 of this title. Amendment of subsec. (d)(1)(A) and (d)(2)(B) by section 1003(a) and (b) of Pub. L. 95-561, and the enactment of subsec. (g) of this section by section 1003(d) of Pub. L. 95-561 effective with respect to fiscal year 1980 and subsequent fiscal years, see section 1032(2) of Pub. L. 95-561, set out as a note under section 237 of this title.

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

EFFECTIVE Date of 1974 AMENDMENT

Section 305(b)(1), formerly § 305(a)(3), of Pub. L. 93-380, as renumbered by Pub. L. 94-482, title V, § 501(a)(3), Oct. 12, 1976, 90 Stat. 2235, provided that: "The amendments made by paragraphs (1) and (2) of subsection (a) [amending sections 238 and 240 of this title] shall be effective on and with respect to appropriations for fiscal years beginning on and after July 1, 1975, and the amendments made by paragraph (3) of subsection (a) [amending section 241-1(c) of this title] shall be effective upon enactment of this Act [Aug. 21, 1974]."

Section 304(a)(2) of Pub. L. 93-380 provided that: "The amendments made by this subsection [substituting "1975" for "1973” in subsec. (b)] shall be effective on and after July 1, 1973."

Section 304(b)(2) of Pub. L. 93-380 provided that: "The amendment made by this section [enacting subsec. (f) of this section] shall be effective on and after July 1, 1974."

EFFECTIVE DATE OF 1968 AmendmenT

Section 206 of Pub. L. 90-247 provided in part that the amendment of subsec. (d) of this section by section 206 of Pub. L. 90-247 shall be effective for the fiscal years beginning after June 30, 1967.

Amendment by sections 204(d), 205(a), and 206 of Pub. L. 90-247 effective for fiscal years beginning after June 30, 1967, see section 208 of Pub. L. 90-247, set out as a note under section 237 of this title.

EFFECTIVE DATE OF 1966 AMENDMENT

Section 241 of title II of Pub. L. 89-750 provided that: "The amendments made by this title [amending sections 238, 240, 241, 242, 244, 633, 634, 635, 640, 644, and 645 of this title] shall be effective for fiscal years beginning after June 30, 1966, except that (1) the amendment made by section 201(b) [amending subsec. (d) of this section] shall be effective for fiscal years beginning after June 30, 1967, and (2) if the amendment made by section 204 or 229 [adding sections 241(f) and 640(c) of this title] would have reduced payments to a local educational agency for the fiscal year ending June 30, 1966 (if it had been in effect for that year), the amendment shall not apply to that local educational agency for fiscal years ending prior to July 1, 1968."

EFFECTIVE Date of 1965 AMENDMENT

Section 4(b) of Pub. L. 89-313 provided that: "The amendment made by this section [amending subsec. (c) of this section] shall be effective on and after July 1, 1965."

EFFECTIVE DATE OF 1963 AMENDMENT Amendment by Pub. L. 88-210 effective July 1, 1963, see section 303, formerly 33, of Pub. L. 88-210, set out as a note under section 237 of this title.

EFFECTIVE DATE OF 1961 AMENDMENT Amendment by Pub. L. 87-344 effective for the period beginning July 1, 1961, see section 103 of Pub. L. 87-344, set out as a note under section 633 of this title.

EFFECTIVE DATE OF 1960 AmendmenT

Amendment of subsec. (d) of this section by Pub. L. 86-624 applicable in the case of fiscal years beginning after June 30, 1960, see section 47(c) of Pub. L. 86-624, set out as a note under section 12 of this title.

EFFECTIVE DATE OF 1959 AMENDMENT Amendment of subsec. (d) of this section by Pub. L. 86-70 applicable for fiscal years beginning July 1, 1959, see section 47(f) of Pub. L. 86-70, set out as a note under section 14 of this title.

EFFECTIVE DATE OF 1958 AmendmenT Amendment by Pub. L. 85-620 effective for the period beginning July 1, 1958, see note set out under section 237 of this title.

EFFECTIVE DATE OF 1956 AMENDMENT Amendment by act Aug. 3, 1956, effective July 1, 1956, see 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 note set out under section 237 of this title.

TREATMENT OF CHILDREN RESIDING ON PROPERTY ASSISTED UNDER SECTION 8 OF THE UNITED STATES HOUSING ACT OF 1937

Section 2018 of Pub. L. 100-297 provided that:

"(a) GENERAL RULE.-Notwithstanding any other provision of law, for fiscal years prior to fiscal year 1989, applicants may claim and receive payments under section 3 of Public Law 81-874 [20 U.S.C. 238] on behalf of children residing in or whose parents are employed on property assisted under section 8 of the United States Housing Act of 1937 [42 U.S.C. 1437f), if such property was claimed by such applicants and such payments were received for the previous fiscal year.

"(b) SPECIAL RULE.-Payments made to any local educational agency under section 3(b) of the Act for fiscal years prior to fiscal year 1989, on behalf of children who reside on or whose parents are employed on property that is housing assisted under section 8 of the United States Housing Act of 1937, shall stand, and such payments withheld or recovered shall be made or restored."

AUDIT OF PAYMENTS; MANNER of Counting CHILDREN ATTENDING KINDERGARTEN

Pub. L. 99-349, title I, July 2, 1986, 100 Stat. 739, provided that: "The Secretary shall, in making any audit of payments made under the Act of September 30, 1950 (Public Law 874, Eighty-first Congress) [this chapter] accept the manner of counting children attending kindergarten for the purpose of that Act if the manner of counting such children is in accordance with State law."

PAYMENTS TO SCHOOL DISTRICTS THROUGH SEPTEMBER 30, 1985, FOR EDUCATIONAL EXPENSES FOR PUPILS LIVING AT OR NEAR GRAND CANYON NATIONAL PARK ON TAX-EXEMPT REALTY OWNED BY UNITED STATES; COOPERATIVE AGREEMENTS; Funding

Pub. L. 95-244, Mar. 14, 1978, 92 Stat. 154, as amended by Pub. L. 96-581, § 3, Dec. 23, 1980, 94 Stat. 3373; Pub. L. 96-602, § 4, Dec. 28, 1980, 94 Stat. 3500, provided that:

"(a) The Secretary of the Interior (hereafter referred to as the 'Secretary') is authorized for the period commencing October 1, 1978, and ending September 30, 1985 to make payments to reimburse the appropriate school district or districts (hereafter referred to as the 'districts') for educational facilities and services (including, where appropriate, transportation to and from school) incurred by said districts in

providing educational benefits to pupils living at or near the Grand Canyon National Park upon real property owned by the United States which is not subject to taxation by State or local agencies: Provided, That the payments for any school year to said districts shall not exceed that part of the cost of operating and maintaining such facilities and providing such services which the number of pupils as defined above bears to the whole number of pupils in average daily attendance within said districts for that year.

"(b) If in the opinion of the Secretary of the Interior, the aforesaid educational facilities and services cannot be provided adequately and payment made therefor on a pro rata basis, as prescribed in subsection (a), the Secretary of the Interior may enter into cooperative agreements with State or local agencies for (1) the operation of school facilities, (2) for the construction and expansion of educational facilities at Federal expense, and (3) for contribution by the Federal Government, on an equitable basis satisfactory to the Secretary, to cover the increased cost to local agencies for providing the educational services required for the purposes of this section: Provided, That authority to make payments under this subsection shall be effective only to such extent or in such amounts as are provided in advance in appropriation Acts.

"(c) The Secretary shall submit an annual estimate of the anticipated payments which may be made in accordance with the provisions of this Act to the Committees on Appropriations of the United States Senate and House of Representatives. There is authorized to be appropriated an amount not to exceed $1,500,000 annually for fiscal years 1979 through 1982 to carry out the provisions of this Act: Provided, That any appropriations made pursuant to this Act shall be reduced by the amount of any payments made to said districts pursuant to the Acts of September 23, 1950 (64 Stat. 906), as amended (20 U.S.C. 631 et seq.), and September 30, 1950 (64 Stat. 1100), as amended (20 U.S.C. 236 et seq.). For the authorizations made in this subsection, any amounts authorized but not appropriated in any fiscal year shall remain available for appropriation in succeeding fiscal years. Any amount appropriated pursuant to this Act for any fiscal year shall remain available until expended."

PAYMENTS TO LOCAL SCHOOL AGENCIES FOR FISCAL YEARS THROUGH 1983; SEPARATION OF FUNDS; REPORT TO Congressional CommitteES

Section 305(b)(2), formerly § 305(a)(2), of Pub. L. 93-380, as amended by Pub. L. 94-273, § 48(b), Apr. 21, 1976, 90 Stat. 382, renumbered by Pub. L. 94-482, title V, § 501(a)(3), Oct. 12, 1976, 90 Stat. 2235, and amended Pub. L. 95-561, title X, § 1001(d), (e), Nov. 1, 1978, 92 Stat. 2306; Pub. L. 96-88, title III, § 301(a)(1), title V, § 507, Oct. 17, 1979, 93 Stat. 677, 692, provided that: "(A)(i) Notwithstanding any other provision of law unless enacted in express limitation of this subparagraph

"(I) in the case of any local educational agency which is entitled to a payment under section 3 of the Act of September 30, 1950 (Public Law 874, Eightyfirst Congress) [this section] for the fiscal year ending June 30, 1973, which constituted an amount equal to not less than 10 per centum of the current expenditures of such agency for such fiscal year, the amount paid to such agency pursuant to such Act of September 30, 1950 [this chapter] for any fiscal year beginning after June 30, 1974, and ending prior to October 1, 1978, on the basis of the entitlement of that agency under such section 3 [this section], shall not be less than 90 per centum of the amount paid to such agency on the basis of such entitlement for the preceding fiscal year; and

"(II) in the case of any other local educational agency, the amount so paid during any fiscal year beginning after June 30, 1974, and ending prior to October 1, 1978, shall not be less than 80 per centum of the amount so paid for the preceding fiscal year.

In the case of any local educational agency which is eligible prior to July 1, 1975, for a payment under section 3 of the Act of September 30, 1950 (Public Law 874, Eighty-first Congress) [this section] by reason of the 3 per centum requirement in clause (B) of section 3(c)(2) of such Act [former subsec. (c)(2)(B) of this section], as in effect prior to the effective date of the amendment made by paragraph (1) of subsection (a) [see note for section 305(b)(1) of Pub. L. 93-380 under this section], but which fails to meet such requirement in any fiscal year ending prior to October 1, 1977, such agency shall continue to be eligible for a payment under such section 3 as then in effect [former section 238 of this title] for the two succeeding fiscal years, but the payment under such section [former section 238 of this title] during the second of such succeeding fiscal years shall not exceed 50 per centum of the amount of the payment such agency was entitled to receive during the most recent fiscal year in which it was so eligible by reason of such clause (B) [former subsec. (c)(2)(B) of this section].

"(ii) Funds appropriated for any fiscal year for making payments to local educational agencies pursuant to the Act of September 30, 1950 (Public Law 874, Eighty-first Congress) [this chapter], which are increased by reason of the provisions of division (i) shall, to the extent of any such increase, be separate from funds appropriated for such fiscal year for payments pursuant to title I of such Act [subchapter II of this chapter] which are not so increased. If, for any fiscal year, a law making appropriations for payments pursuant to such title I [subchapter II of this chapter] is enacted and such law makes no express provision for payments increased by division (i)—

"(I) all funds so appropriated shall be allocated and paid in accordance with section 5 of such Act of September 30, 1950 [section 240 of this title], and without regard for the provisions of division (i); and

"(II) not later than fifteen days after the enactment of such law, the Secretary of Education shall submit a report to the Committees on Appropriations and on Education and Labor of the House of Representatives and the Committees on Appropriations and Labor and Public Welfare of the Senate, which report shall contain a statement detailing the dollar amounts necessary to satisfy the requirements of division (i) and constitute a budget estimate within the meaning of section 201(a)(5) of the Act of June 10, 1921 (31 U.S.C. 11(a)(5)) [31 U.S.C. 1105(a)(5)].

"(B) In the case of any local educational agency which experiences a decrease in the number of children determined by the Secretary of Education under section 3 of the Act of September 30, 1950 (Public Law 874, Eighty-first Congress) [this section] of 10 per centum or more of such number

"(i) during the fiscal year ending June 30, 1974, or the fiscal year ending June 30, 1975; or

"(ii) during the period beginning July 1, 1973, and ending June 30, 1975;

as the result of a decrease in, or cessation of, Federal activities affecting military installations in the United States announced after April 16, 1973, the amount of the payment to which such agency shall be entitled under title I of such Act [subchapter II of this chapter], as computed under section 3 of such Act [this section], for any fiscal year ending prior to July 1, 1983, shall not be less than 90 per centum of the amount to which the agency was so entitled during the preceding fiscal year. The provisions of this subparagraph shall be effective on and after July 1, 1974, and with respect to appropriations for the fiscal year ending June 30, 1975, and succeeding fiscal years, and such provisions shall be deemed to have been enacted before the beginning of the fiscal year ending June 30, 1975. Nothing in this subparagraph shall be construed to decrease the amount of the payment to which any local educational agency is entitled for any fiscal year on