§ 300.703 Allocations to States.

Plain English summary

This section establishes the formula by which the Secretary of Education allocates IDEA Part B funds to States after reserving amounts for technical assistance and payments to outlying areas and the Secretary of the Interior. Allocation formulas differ depending on whether available funds have increased or decreased relative to the prior fiscal year, with baseline amounts anchored to fiscal year 1999 allocations and additional funds distributed based on relative child population and poverty data. Various minimum and maximum caps protect States from significant year-over-year funding swings.

Key requirements

• After reserving funds under § 300.702 and § 300.701(a) and (b), the Secretary allocates the remaining amount among the States in accordance with paragraphs (b), (c), and (d) of this section.
• If a State received funds for fiscal year 1999 on the basis of children aged three through five but does not make FAPE available to all children with disabilities aged three through five in a subsequent fiscal year, the Secretary subtracts the amount allocated for those children when computing the State's fiscal year 1999 amount for allocation purposes.
• If available funds are equal to or greater than the preceding fiscal year allocation: each State receives its fiscal year 1999 amount; 85 percent of remaining funds are allocated based on relative populations of children aged 3 through 21; and 15 percent of remaining funds are allocated based on relative populations of those children living in poverty.
• The Secretary uses the most recent population data, including data on children living in poverty, that are available and satisfactory to the Secretary.
• No State's allocation may be less than its allocation under section 611 of the Act for the preceding fiscal year.
• No State's allocation may be less than the greatest of three calculated minimums based on fiscal year 1999 amounts, preceding year amounts, and percentage increases in appropriations.
• No State's allocation may exceed the sum of the preceding fiscal year amount plus that amount multiplied by the sum of 1.5 percent and the percentage increase in appropriations from the preceding fiscal year.
• If available funds are insufficient to pay allocations in full under paragraph (c), those allocations are ratably reduced, subject to the preceding year allocation floor.
• If available funds are less than the preceding fiscal year allocation but greater than fiscal year 1999 allocations, each State receives its fiscal year 1999 amount plus a proportional share of remaining funds based on its prior growth above fiscal year 1999 levels.
• If available funds are equal to or less than fiscal year 1999 allocations, each State receives its fiscal year 1999 amount, subject to ratable reduction if funds are insufficient.

Affected parties

• U.S. Secretary of Education
• State educational agencies (SEAs)
• Outlying areas and freely associated States
• Secretary of the Interior

Official source

https://www.ecfr.gov/current/title-34/part-300/section-300.703