Sec. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES; ALLOTMENTS

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## SEC. 211 RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES; ALLOTMENTS **[**[20 U.S.C. 9211](/us/usc/t20/s9211)**]** ###

(a)Reservation of Funds From the sum appropriated under section 205 for a fiscal year, the Secretary— ####

(1)shall reserve 1.5 percent to carry out section 242, except that the amount so reserved shall not exceed $8,000,000; ####

(2)shall reserve 1.5 percent to carry out section 243, except that the amount so reserved shall not exceed $8,000,000; and ####

(3)shall make available, to the Secretary of Labor, 1.72 percent for incentive grants under section 503. ###

(b)Grants to Eligible Agencies ####

(1)In general From the sum appropriated under section 205 and not reserved under subsection

(a)for a fiscal year, the Secretary shall award a grant to each eligible agency having a State plan approved under section 224 in an amount equal to the sum of the initial allotment under subsection (c)(1) and the additional allotment under subsection (c)(2) for the eligible agency for the fiscal year, subject to subsections

(f)and (g), to enable the eligible agency to carry out the activities assisted under this subtitle. ####

(2)Purpose of grants The Secretary may award a grant under paragraph

(1)only if the eligible entity involved agrees to expend the grant for adult education and literacy activities in accordance with the provisions of this subtitle. ###

(c)Allotments ####

(1)Initial allotments From the sum appropriated under section 205 and not reserved under subsection

(a)for a fiscal year, the Secretary shall allot to each eligible agency having a State plan approved under section 224(f)— #####

(A)$100,000, in the case of an eligible agency serving an outlying area; and #####

(B)$250,000, in the case of any other eligible agency. ####

(2)Additional allotments From the sum appropriated under section 205, not reserved under subsection (a), and not allotted under paragraph (1), for a fiscal year, the Secretary shall allot to each eligible agency that receives an initial allotment under paragraph

(1)an additional amount that bears the same relationship to such sum as the number of qualifying adults in the State or outlying area served by the eligible agency bears to the number of such adults in all States and outlying areas. ###

(d)Qualifying Adult For the purpose of subsection (c)(2), the term “**qualifying adult**” means an adult who— ####

(1)is at least 16 years of age; ####

(2)is beyond the age of compulsory school attendance under the law of the State or outlying area; ####

(3)does not have a secondary school diploma or its recognized equivalent; and ####

(4)is not enrolled in secondary school. ###

(e)Special Rule ####

(1)In general From amounts made available under subsection

(c)for the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau, the Secretary shall award grants to Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, or the Republic of Palau to carry out activities described in this subtitle in accordance with the provisions of this subtitle that the Secretary determines are not inconsistent with this subsection. ####

(2)Award basis The Secretary shall award grants pursuant to paragraph

(1)on a competitive basis and pursuant to recommendations from the Pacific Region Educational Laboratory in Honolulu, Hawaii. ####

(3)Termination of eligibility Notwithstanding any other provision of law, the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau shall not receive any funds under this subtitle for any fiscal year that begins after September 30, 2001. ####

(4)Administrative costs The Secretary may provide not more than 5 percent of the funds made available for grants under this subsection to pay the administrative costs of the Pacific Region Educational Laboratory regarding activities assisted under this subsection. ###

(f)Hold-Harmless ####

(1)In general Notwithstanding subsection (c)— #####

(A)for fiscal year 1999, no eligible agency shall receive an allotment under this subtitle that is less than 90 percent of the payments made to the State or outlying area of the eligible agency for fiscal year 1998 for programs for which funds were authorized to be appropriated under section 313 of the Adult Education Act (as such Act was in effect on the day before the date of the enactment of the Workforce Investment Act of 1998); and #####

(B)for fiscal year 2000 and each succeeding fiscal year, no eligible agency shall receive an allotment under this subtitle that is less than 90 percent of the allotment the eligible agency received for the preceding fiscal year under this subtitle. ####

(2)Ratable reduction If for any fiscal year the amount available for allotment under this subtitle is insufficient to satisfy the provisions of paragraph (1), the Secretary shall ratably reduce the payments to all eligible agencies, as necessary. ###

(g)Reallotment The portion of any eligible agency's allotment under this subtitle for a fiscal year that the Secretary determines will not be required for the period such allotment is available for carrying out activities under this subtitle, shall be available for reallotment from time to time, on such dates during such period as the Secretary shall fix, to other eligible agencies in proportion to the original allotments to such agencies under this subtitle for such year.

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20 USC 9211

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Sec. 211

RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES; ALLOTMENTS

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