(1) Eligibility A local educational agency shall be eligible to receive a grant under this subpart if
(A) 20 percent or more of the children ages 5 through 17 years served by the local educational agency are from families with incomes below the poverty line; and
(B) all of the schools served by the agency are designated with a
school locale code of 6, 7, or 8, as determined by the Secretary.
(2) Award basis A State educational agency shall award grants to eligible local educational agencies
(A) on a competitive basis;
(B) according to a formula based on the number of students in average daily attendance served by the eligible local educational agencies or schools in the State; or
(C) according to an alternative formula, if, prior to awarding the grants, the State educational agency demonstrates, to the satisfaction of the Secretary, that the alternative formula enables the State educational agency to allot the grant funds in a manner that serves equal or greater concentrations of children from families with incomes below the poverty line, relative to the concentrations that would be served if the State educational agency used the formula described in subparagraph (B).