---
kind: "section"
citation: "20 U.S.C. § 1443"
title: "20"
title_heading: "Education"
number: "1443"
heading: "Allocation of funds"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/1443"
units:
  - "Chapter 33 — Education of Individuals with Disabilities"
  - "Subchapter III — Infants and Toddlers with Disabilities"
---

# §1443. Allocation of funds

- (a) **Reservation of funds for outlying areas—**
  - (1) **In general—** From the sums appropriated to carry out this subchapter for any fiscal year, the [Secretary](/usc/20/1401.md?p=28) may reserve not more than 1 percent for payments to Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands in accordance with their respective needs for assistance under this subchapter.
  - (2) **Consolidation of funds—** The provisions of Public Law 95–134, permitting the consolidation of grants to the [outlying areas](/usc/20/1401.md?p=22), shall not apply to funds those areas receive under this subchapter.
- (b) **Payments to Indians—**
  - (1) **In general—** The [Secretary](/usc/20/1401.md?p=28) shall, subject to this subsection, make payments to the [Secretary](/usc/20/1401.md?p=28) of the Interior to be distributed to tribes, tribal organizations (as defined under [section 5304 of title 25](/usc/25/5304.md)), or consortia of the above entities for the coordination of assistance in the provision of [early intervention services](/usc/20/1432.md?p=4) by the [States](/usc/20/1401.md?p=31) to infants and toddlers with disabilities and their families on reservations served by [elementary schools](/usc/20/1401.md?p=6) and [secondary schools](/usc/20/1401.md?p=27) for [Indian](/usc/20/1401.md?p=12) children operated or funded by the [Department](/usc/20/1221.md?p=c-3) of the Interior. The amount of such payment for any fiscal year shall be 1.25 percent of the aggregate of the amount available to all [States](/usc/20/1401.md?p=31) under this subchapter for such fiscal year.
  - (2) **Allocation—** For each fiscal year, the [Secretary](/usc/20/1401.md?p=28) of the Interior shall distribute the entire payment received under [paragraph (1)](#b-1) by providing to each tribe, tribal organization, or consortium an amount based on the number of infants and toddlers residing on the reservation, as determined annually, divided by the total of such children served by all tribes, tribal organizations, or consortia.
  - (3) **Information—** To receive a payment under this subsection, the tribe, tribal organization, or consortium shall submit such information to the [Secretary](/usc/20/1401.md?p=28) of the Interior as is needed to determine the amounts to be distributed under [paragraph (2)](#b-2).
  - (4) **Use of funds—** The funds received by a tribe, tribal organization, or consortium shall be used to assist [States](/usc/20/1401.md?p=31) in child find, screening, and other procedures for the early identification of [Indian](/usc/20/1401.md?p=12) children under 3 years of age and for [parent](/usc/20/1401.md?p=23) training. Such funds may also be used to provide [early intervention services](/usc/20/1432.md?p=4) in accordance with this subchapter. Such activities may be carried out directly or through contracts or cooperative agreements with the Bureau of [Indian](/usc/20/1401.md?p=12) Affairs, [local educational agencies](/usc/20/1401.md?p=19-A), and other public or private [nonprofit](/usc/20/1401.md?p=21) organizations. The tribe, tribal organization, or consortium is encouraged to involve [Indian](/usc/20/1401.md?p=12) [parents](/usc/20/1401.md?p=23) in the development and implementation of these activities. The above entities shall, as appropriate, make referrals to local, [State](/usc/20/1401.md?p=31), or Federal entities for the provision of services or further diagnosis.
  - (5) **Reports—** To be eligible to receive a payment under [paragraph (2)](#b-2), a tribe, tribal organization, or consortium shall make a biennial report to the [Secretary](/usc/20/1401.md?p=28) of the Interior of activities undertaken under this subsection, including the number of contracts and cooperative agreements entered into, the number of infants and toddlers contacted and receiving services for each year, and the estimated number of infants and toddlers needing services during the 2 years following the year in which the report is made. The [Secretary](/usc/20/1401.md?p=28) of the Interior shall include a summary of this information on a biennial basis to the [Secretary](/usc/20/1401.md?p=28) of Education along with such other information as required under [section 1411(h)(3)(E) of this title](/usc/20/1411.md). The [Secretary](/usc/20/1401.md?p=28) of Education may require any additional information from the [Secretary](/usc/20/1401.md?p=28) of the Interior.
  - (6) **Prohibited uses of funds—** None of the funds under this subsection may be used by the [Secretary](/usc/20/1401.md?p=28) of the Interior for administrative purposes, including child count, and the provision of technical assistance.
- (c) **State allotments—**
  - (1) **In general—** Except as provided in paragraphs [(2)](#c-2) and [(3)](#c-3), from the funds remaining for each fiscal year after the reservation and payments under subsections [(a)](#a), [(b)](#b), and [(e)](#e), the [Secretary](/usc/20/1401.md?p=28) shall first allot to each [State](/usc/20/1401.md?p=31) an amount that bears the same ratio to the amount of such remainder as the number of infants and toddlers in the [State](/usc/20/1401.md?p=31) bears to the number of infants and toddlers in all [States](/usc/20/1401.md?p=31).
  - (2) **Minimum allotments—** Except as provided in [paragraph (3)](#c-3), no [State](/usc/20/1401.md?p=31) shall receive an amount under this section for any fiscal year that is less than the greater of—
    - (A) ½ of 1 percent of the remaining amount described in [paragraph (1)](#c-1); or
    - (B) $500,000.
  - (3) **Ratable reduction—**
    - (A) **In general—** If the sums made available under this subchapter for any fiscal year are insufficient to pay the full amounts that all [States](/usc/20/1401.md?p=31) are eligible to receive under this subsection for such year, the [Secretary](/usc/20/1401.md?p=28) shall ratably reduce the allotments to such [States](/usc/20/1401.md?p=31) for such year.
    - (B) **Additional funds—** If additional funds become available for making payments under this subsection for a fiscal year, allotments that were reduced under [subparagraph (A)](#c-3-A) shall be increased on the same basis the allotments were reduced.
  - (4) **Definitions—** In this subsection—
    - (A) the terms “infants” and “toddlers” mean children under 3 years of age; and
    - (B) the term “[State](/usc/20/1401.md?p=31)” means each of the 50 [States](/usc/20/1401.md?p=31), the District of Columbia, and the Commonwealth of Puerto Rico.
- (d) **Reallotment of funds—** If a [State](/usc/20/1401.md?p=31) elects not to receive its allotment under [subsection (c)](#c), the [Secretary](/usc/20/1401.md?p=28) shall reallot, among the remaining [States](/usc/20/1401.md?p=31), amounts from such [State](/usc/20/1401.md?p=31) in accordance with such subsection.
- (e) **Reservation for State incentive grants—**
  - (1) **In general—** For any fiscal year for which the amount appropriated pursuant to the authorization of appropriations under [section 1444 of this title](/usc/20/1444.md) exceeds $460,000,000, the [Secretary](/usc/20/1401.md?p=28) shall reserve 15 percent of such appropriated amount to provide grants to [States](/usc/20/1401.md?p=31) that are carrying out the policy described in [section 1435(c) of this title](/usc/20/1435.md?p=c) in order to facilitate the implementation of such policy.
  - (2) **Amount of grant—**
    - (A) **In general—** Notwithstanding paragraphs [(2)](#c-2) and [(3)](#c-3) of subsection (c), the [Secretary](/usc/20/1401.md?p=28) shall provide a grant to each [State](/usc/20/1401.md?p=31) under [paragraph (1)](#e-1) in an amount that bears the same ratio to the amount reserved under such paragraph as the number of infants and toddlers in the [State](/usc/20/1401.md?p=31) bears to the number of infants and toddlers in all [States](/usc/20/1401.md?p=31) receiving grants under such paragraph.
    - (B) **Maximum amount—** No [State](/usc/20/1401.md?p=31) shall receive a grant under [paragraph (1)](#e-1) for any fiscal year in an amount that is greater than 20 percent of the amount reserved under such paragraph for the fiscal year.
  - (3) **Carryover of amounts—**
    - (A) **First succeeding fiscal year—** Pursuant to [section 1225(b) of this title](/usc/20/1225.md?p=b), amounts under a grant provided under [paragraph (1)](#e-1) that are not obligated and expended prior to the beginning of the first fiscal year succeeding the fiscal year for which such amounts were appropriated shall remain available for obligation and expenditure during such first succeeding fiscal year.
    - (B) **Second succeeding fiscal year—** Amounts under a grant provided under [paragraph (1)](#e-1) that are not obligated and expended prior to the beginning of the second fiscal year succeeding the fiscal year for which such amounts were appropriated shall be returned to the [Secretary](/usc/20/1401.md?p=28) and used to make grants to [States](/usc/20/1401.md?p=31) under [section 1433 of this title](/usc/20/1433.md) (from their allotments under this section) during such second succeeding fiscal year.

## Source credit

(Pub. L. 91–230, title VI, § 643, as added Pub. L. 108–446, title I, § 101, Dec. 3, 2004, 118 Stat. 2760.)

## Notes

### Editorial Notes

### References in Text

Public Law 95–134, referred to in subsec. (a)(2), is Pub. L. 95–134, Oct. 15, 1977, 91 Stat. 1159. Provisions relating to consolidation of grants are contained in section 501 of Pub. L. 95–134 which is classified to section 1469a of Title 48, Territories and Insular Possessions.

### Prior Provisions

A prior section 1443, Pub. L. 91–230, title VI, § 643, as added Pub. L. 105–17, title I, § 101, June 4, 1997, 111 Stat. 118, related to allocation of funds, prior to the general amendment of subchapters I to IV of this chapter by Pub. L. 108–446.

Another prior section 1443, Pub. L. 91–230, title VI, § 643, Apr. 13, 1970, 84 Stat. 185; Pub. L. 98–199, §§ 3(b), 12, Dec. 2, 1983, 97 Stat. 1358, 1373; Pub. L. 99–457, title III, § 313, Oct. 8, 1986, 100 Stat. 1170; Pub. L. 100–630, title I, § 105(c), Nov. 7, 1988, 102 Stat. 3299; Pub. L. 101–476, title IX, § 901(b)(145), (146), Oct. 30, 1990, 104 Stat. 1149; Pub. L. 102–119, § 25(b), Oct. 7, 1991, 105 Stat. 607, related to requirement of the Secretary to convene panels of experts to evaluate proposals for projects, prior to repeal by Pub. L. 101–476, title V, §§ 503, 1001, Oct. 30, 1990, 104 Stat. 1138, 1151, effective Oct. 1, 1990.