(a) Funding rules
(1) Continuation awards From the amount appropriated under section
1070a–28 of this title for a fiscal year, the Secretary shall continue to award grants to States under this division (as this division was in effect on the day before October 7, 1998) in accordance with the terms and conditions of such grants.
(2) Distribution From the amount appropriated under section
1070a–28 of this title that remains after making continuation awards under paragraph (1) for a fiscal year, the Secretary shall
(A) make available
(i) not less than 33 percent of the amount to eligible entities described in section
1070a–21 (c)(1) of this title; and
(ii) not less than 33 percent of the amount to eligible entities described in section
1070a–21 (c)(2) of this title; and
(B) award the remainder of the amount to eligible entities described in paragraph (1) or (2) of section
1070a–21 (c) of this title.
(3) Special rule
The Secretary shall annually reevaluate the distribution of funds described in paragraph (2)(B) based on number, quality, and promise of the applications and adjust the distribution accordingly.
(b) Limitation Each eligible entity described in section
1070a–21 (c)(1) of this title, and each eligible entity described in section
1070a–21 (c)(2) of this title that conducts a scholarship component under section
1070a–25 of this title, shall use not less than 25 percent and not more than 50 percent of grant funds received under this division for the early intervention component of an eligible entitys program under this division, except that the Secretary may waive the 50 percent limitation if the eligible entity demonstrates that the eligible entity has another means of providing the students with financial assistance that is described in the plan submitted under section
1070a–23 of this title.
(c) Coordination Each eligible entity shall ensure that the activities assisted under this division are, to the extent practicable, coordinated with, and complement and enhance
(1) services under this division provided by other eligible entities serving the same
school district or State; and
(2) related services under other Federal or non-Federal programs.
(d) Designation of fiscal agent An eligible entity described in section
1070a–21 (c)(2) of this title shall designate an institution of higher education or a local educational agency as the fiscal agent for the eligible entity.
(e) Coordinators An eligible entity described in section
1070a–21 (c)(2) of this title shall have a full-time program coordinator or a part-time program coordinator, whose primary responsibility is a project under section
1070a–23 of this title.
(f) Displacement An eligible entity described in
1070a21(c)(2) of this title shall ensure that the activities assisted under this division will not displace an employee or eliminate a position at a
school assisted under this division, including a partial displacement such as a reduction in hours, wages or employment benefits.
(g) Cohort approach
(1) In general The Secretary shall require that eligible entities described in section
1070a–21 (c)(2) of this title
(A) provide services under this division to at least one grade level of students, beginning not later than 7th grade, in a participating
school that has a 7th grade and in which at least 50 percent of the students enrolled are eligible for free or reduced-price lunch under the Richard B. Russell National School Lunch Act [
42 U.S.C.
1751 et seq.] (or, if an eligible entity determines that it would promote the effectiveness of a program, an entire grade level of students, beginning not later than the 7th grade, who reside in public housing as defined in section
1437a (b)(1) of title
42); and
(B) ensure that the services are provided through the 12th grade to students in the participating grade level.
(2) Coordination requirement In order for the Secretary to require the cohort approach described in paragraph (1), the Secretary shall, where applicable, ensure that the cohort approach is done in coordination and collaboration with existing early intervention programs and does not duplicate the services already provided to a
school or community.
