Sec. 2004. MAINTENANCE OF EFFORT AND MAINTENANCE OF EQUITY

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

## SEC. 2004 MAINTENANCE OF EFFORT AND MAINTENANCE OF EQUITY ###

(a)State Maintenance of Effort ####

(1)In general As a condition of receiving funds under section 2001, a State shall maintain support for elementary and secondary education, and for higher education (which shall include State funding to institutions of higher education and State need-based financial aid, and shall not include support for capital projects or for research and development or tuition and fees paid by students), in each of fiscal years 2022 and 2023 at least at the proportional levels of such State’s support for elementary and secondary education and for higher education relative to such State’s overall spending, averaged over fiscal years 2017, 2018, and 2019. ####

(2)Waiver For the purpose of relieving fiscal burdens incurred by States in preventing, preparing for, and responding to the coronavirus, the Secretary of Education may waive any maintenance of effort requirements associated with the Education Stabilization Fund. ###

(b)State Maintenance of Equity ####

(1)High-need local educational agencies As a condition of receiving funds under section 2001, a State educational agency shall not, in fiscal year 2022 or 2023, reduce State funding (as calculated on a per-pupil basis) for any high-need local educational agency in the State by an amount that exceeds the overall per-pupil reduction in State funds, if any, across all local educational agencies in such State in such fiscal year. ####

(2)Highest poverty local educational agencies Notwithstanding paragraph (1), as a condition of receiving funds under section 2001, a State educational agency shall not, in fiscal year 2022 or 2023, reduce State funding (as calculated on a per-pupil basis) for any highest poverty local educational agency below the level of funding (as calculated on a per-pupil basis) provided to each such local educational agency in fiscal year 2019. ###

(c)Local Educational Agency Maintenance of Equity for High-poverty Schools ####

(1)In general As a condition of receiving funds under section 2001, a local educational agency shall not, in fiscal year 2022 or 2023— #####

(A)reduce per-pupil funding (from combined State and local funding) for any high-poverty school served by such local educational agency by an amount that exceeds— ######

(i)the total reduction in local educational agency funding (from combined State and local funding) for all schools served by the local educational agency in such fiscal year (if any); divided by ######

(ii)the number of children enrolled in all schools served by the local educational agency in such fiscal year; or #####

(B)reduce per-pupil, full-time equivalent staff in any high-poverty school by an amount that exceeds— ######

(i)the total reduction in full-time equivalent staff in all schools served by such local educational agency in such fiscal year (if any); divided by ######

(ii)the number of children enrolled in all schools served by the local educational agency in such fiscal year. ####

(2)Exception Paragraph

(1)shall not apply to a local educational agency in fiscal year 2022 or 2023 that meets at least 1 of the following criteria in such fiscal year: #####

(A)Such local educational agency has a total enrollment of less than 1,000 students. #####

(B)Such local educational agency operates a single school. #####

(C)Such local educational agency serves all students within each grade span with a single school. #####

(D)Such local educational agency demonstrates an exceptional or uncontrollable circumstance, such as unpredictable changes in student enrollment or a precipitous decline in the financial resources of such agency, as determined by the Secretary of Education. ###

(d)Definitions In this section: ####

(1)Elementary education; secondary education The terms “elementary education” and “secondary education” have the meaning given such terms under State law. ####

(2)Highest poverty local educational agency The term “highest poverty local educational agency” means a local educational agency that is among the group of local educational agencies in the State that— #####

(A)in rank order, have the highest percentages of economically disadvantaged students in the State, on the basis of the most recent satisfactory data available from the Department of Commerce (or, for local educational agencies for which no such data are available, such other data as the Secretary of Education determines are satisfactory); and #####

(B)collectively serve not less than 20 percent of the State’s total enrollment of students served by all local educational agencies in the State. ####

(3)High-need local educational agency The term “high-need local educational agency” means a local educational agency that is among the group of local educational agencies in the State that— #####

(B)collectively serve not less than 50 percent of the State’s total enrollment of students served by all local educational agencies in the State. ####

(4)High-poverty school #####

(A)In general The term “high-poverty school” means, with respect to a school served by a local educational agency, a school that is in the highest quartile of schools served by such local educational agency based on the percentage of economically disadvantaged students served, as determined by the State in accordance with subparagraph (B). #####

(B)Determination In making the determination under subparagraph (A), a State shall select a measure of poverty established for the purposes of this paragraph by the Secretary of Education and apply such measure consistently to all schools in the State. ####

(5)Overall per-pupil reduction in state funds The term “overall per-pupil reduction in State funds” means, with respect to a fiscal year— #####

(A)the amount of any reduction in the total amount of State funds provided to all local educational agencies in the State in such fiscal year compared to the total amount of such funds provided to all local educational agencies in the State in the previous fiscal year; divided by #####

(B)the aggregate number of children enrolled in all schools served by all local educational agencies in the State in the fiscal year for which the determination is being made. ####

(6)State The term “State” means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.