From the funds reserved by a State under section 7114(a)(1) of this title, the State shall allocate to each local educational agency in the State that has an application approved by the State educational agency under section 7116 of this title an amount that bears the same relationship to the total amount of such reservation as the amount the local educational agency received under subpart 2 of part A of subchapter I for the preceding fiscal year bears to the total amount received by all local educational agencies in the State under such subpart for the preceding fiscal year.

(1) In general From the funds reserved by a State under section 7114(a)(1) of this title, the State shall allocate to each local educational agency in the State that has an application approved by the State educational agency under section 7116 of this title an amount that bears the same relationship to the total amount of such reservation as the amount the local educational agency received under subpart 2 of part A of subchapter I for the preceding fiscal year bears to the total amount received by all local educational agencies in the State under such subpart for the preceding fiscal year.

(2) Minimum local educational agency allocation No allocation to a local educational agency under this subsection may be made in an amount that is less than $10,000, subject to subsection (b).

(3) Consortia Local educational agencies in a State may form a consortium with other surrounding local educational agencies and combine the funds each such agency in the consortium receives under this section to jointly carry out the local activities described in this subpart.

If the amount reserved by the State under section 7114(a)(1) of this title is insufficient to make allocations to local educational agencies in an amount equal to the minimum allocation described in subsection (a)(2), such allocations shall be ratably reduced.

Of the amount received under subsection (a)(2), a local educational agency may reserve not more than 2 percent for the direct administrative costs of carrying out the local educational agency’s responsibilities under this subpart.

(Pub. L. 89–10, title IV, § 4105, as added Pub. L. 114–95, title IV, § 4101, Dec. 10, 2015, 129 Stat. 1974.)