§ 300.809 Limitations.

Plain English summary

This section establishes minimum and maximum limits on how federal funds under section 619 of the Act are allocated to states, ensuring no state receives less than its prior-year allocation and capping growth based on appropriation increases. It sets three alternative floor calculations for minimum allocations and a ceiling tied to prior-year amounts plus appropriation growth. If total available funds are insufficient, allocations are ratably reduced while still respecting the prior-year minimum floor.

Key requirements

• No State's allocation may be less than its allocation under section 619 of the Act for the preceding fiscal year.
• No State's allocation may be less than the greatest of: (i) the sum of the amount the State received under section 619 for fiscal year 1997 and one-third of one percent of the amount by which the current appropriation exceeds the fiscal year 1997 appropriation; (ii) the sum of the preceding fiscal year amount and that amount multiplied by the percentage by which the increase in appropriated funds exceeds 1.5 percent; or (iii) the sum of the preceding fiscal year amount and that amount multiplied by 90 percent of the percentage increase in appropriations from the preceding fiscal year.
• No State's allocation under § 300.808 may exceed the sum of the amount the State received under section 619 for the preceding fiscal year and that amount multiplied by the sum of 1.5 percent and the percentage increase in the amount appropriated under section 619 from the preceding fiscal year.
• If the amount available for allocation is insufficient to pay allocations in full, those allocations are ratably reduced, subject to the requirement that no State's allocation may be less than its preceding fiscal year allocation.

Affected parties

• States
• State educational agencies
• U.S. Department of Education

Official source

https://www.ecfr.gov/current/title-34/part-300/section-300.809