---
kind: "section"
citation: "20 U.S.C. § 6331"
title: "20"
title_heading: "Education"
number: "6331"
heading: "Grants for the outlying areas and the Secretary of the Interior"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/6331"
units:
  - "Chapter 70 — Strengthening and Improvement of Elementary and Secondary Schools"
  - "Subchapter I — Improving the Academic Achievement of the Disadvantaged"
  - "Part A — Improving Basic Programs Operated by Local Educational Agencies"
  - "Subpart 2 — allocations"
---

# §6331. Grants for the outlying areas and the Secretary of the Interior

- (a) **Reservation of funds—** Subject to [subsection (e)](#e), from the amount appropriated for payments to [States](/usc/20/7171.md?p=b-6) for any fiscal year under [section 6302(a) of this title](/usc/20/6302.md?p=a), the [Secretary](/usc/20/7801.md?p=46) shall—
  - (1) reserve 0.4 percent to provide assistance to the [outlying areas](/usc/20/7801.md?p=36) in accordance with [subsection (b)](#b); and
  - (2) reserve 0.7 percent to provide assistance to the [Secretary](/usc/20/7801.md?p=46) of the Interior in accordance with [subsection (d)](#d).
- (b) **Assistance to outlying areas—**
  - (1) **Funds reserved—** From the amount made available for any fiscal year under [subsection (a)(1)](#a-1), the [Secretary](/usc/20/7801.md?p=46) shall—
    - (A) first reserve $1,000,000 for the Republic of Palau, subject to such terms and conditions as the [Secretary](/usc/20/7801.md?p=46) may establish, except that Public Law 95–134, permitting the consolidation of grants, shall not apply; and
    - (B) use the remaining funds to award grants to the [outlying areas](/usc/20/7801.md?p=36) in accordance with paragraphs [(2)](#b-2) through [(5)](#b-5).
  - (2) **Amount of grants—** The [Secretary](/usc/20/7801.md?p=46) shall allocate the amount available under [paragraph (1)(B)](#b-1-B) to the [outlying areas](/usc/20/7801.md?p=36) in proportion to their relative numbers of children, aged 5 to 17, inclusive, from families below the poverty level, on the basis of the most recent satisfactory data available from the [Department](/usc/20/7801.md?p=13) of Commerce.
  - (3) **Hold-harmless amounts—** For each fiscal year, the amount made available to each [outlying area](/usc/20/7801.md?p=36) under this subsection shall be—
    - (A) not less than 95 percent of the amount made available for the preceding fiscal year if the number of children counted under [paragraph (2)](#b-2) is not less than 30 percent of the total number of children aged 5 to 17 years, inclusive, in the [outlying area](/usc/20/7801.md?p=36);
    - (B) not less than 90 percent of the amount made available for the preceding fiscal year if the percentage described in [subparagraph (A)](#b-3-A) is between 15 percent and 30 percent; and
    - (C) not less than 85 percent of the amount made available for the preceding fiscal year if the percentage described in [subparagraph (A)](#b-3-A) is below 15 percent.
  - (4) **Ratable reductions—** If the amount made available under [paragraph (1)(B)](#b-1-B) for any fiscal year is insufficient to pay the full amounts that the [outlying areas](/usc/20/7801.md?p=36) are eligible to receive under paragraphs [(2)](#b-2) and [(3)](#b-3) for that fiscal year, the [Secretary](/usc/20/7801.md?p=46) shall ratably reduce those amounts.
  - (5) **Uses—** Grant funds awarded under [paragraph (1)(A)](#b-1-A) may be used only—
    - (A) for programs described in this chapter, including teacher training, curriculum development, instructional materials, or general school improvement and reform; and
    - (B) to provide direct educational services that assist all students with meeting the challenging [State](/usc/20/7171.md?p=b-6) academic standards.
- (c) **Definitions—** For the purpose of this section, the term “[outlying area](/usc/20/7801.md?p=36)” means the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.
- (d) **Allotment to the Secretary of the Interior—**
  - (1) **In general—** The amount allotted for payments to the [Secretary](/usc/20/7801.md?p=46) of the Interior under [subsection (a)(2)](#a-2) for any fiscal year shall be used, in accordance with such criteria as the [Secretary](/usc/20/7801.md?p=46) may establish, to meet the unique educational needs of—
    - (A) [Indian](/usc/20/7491.md?p=3) children on reservations served by [elementary schools](/usc/20/7801.md?p=19) and [secondary schools](/usc/20/7801.md?p=45) for [Indian](/usc/20/7491.md?p=3) children operated or supported by the [Department](/usc/20/7801.md?p=13) of the Interior; and
    - (B) out-of-[State](/usc/20/7171.md?p=b-6) [Indian](/usc/20/7491.md?p=3) children in [elementary schools](/usc/20/7801.md?p=19) and [secondary schools](/usc/20/7801.md?p=45) in [local educational agencies](/usc/20/7801.md?p=30-A) under special contracts with the [Department](/usc/20/7801.md?p=13) of the Interior.
  - (2) **Payments—** From the amount allotted for payments to the [Secretary](/usc/20/7801.md?p=46) of the Interior under [subsection (a)(2)](#a-2), the [Secretary](/usc/20/7801.md?p=46) of the Interior shall make payments to [local educational agencies](/usc/20/7801.md?p=30-A), on such terms as the [Secretary](/usc/20/7801.md?p=46) determines will best carry out the purposes of this part, with respect to out-of-[State](/usc/20/7171.md?p=b-6) [Indian](/usc/20/7491.md?p=3) children described in [paragraph (1)](#d-1). The amount of such payment may not exceed, for each such [child](/usc/20/7801.md?p=3), the greater of—
    - (A) 40 percent of the [average per-pupil expenditure](/usc/20/7801.md?p=2) in the [State](/usc/20/7171.md?p=b-6) in which the agency is located; or
    - (B) 48 percent of such expenditure in the United States.
- (e) **Limitation on applicability—** If, by reason of the application of [subsection (a)](#a) for any fiscal year, the total amount available for allocation to all [States](/usc/20/7171.md?p=b-6) under this part would be less than the amount allocated to all [States](/usc/20/7171.md?p=b-6) for fiscal year 2016 under this part, the [Secretary](/usc/20/7801.md?p=46) shall provide assistance to the [outlying areas](/usc/20/7801.md?p=36) and the [Secretary](/usc/20/7801.md?p=46) of the Interior in accordance with this section, as in effect on the day before December 10, 2015.

## Source credit

(Pub. L. 89–10, title I, § 1121, as added Pub. L. 107–110, title I, § 101, Jan. 8, 2002, 115 Stat. 1513; amended Pub. L. 114–95, title I, § 1014, Dec. 10, 2015, 129 Stat. 1876; Pub. L. 118–42, div. G, title II, § 209(b)(4)(A), Mar. 9, 2024, 138 Stat. 443.)

## Notes

### Editorial Notes

### References in Text

Public Law 95–134, referred to in subsec. (b)(1)(A), 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 6331, Pub. L. 89–10, title I, § 1121, as added Pub. L. 103–382, title I, § 101, Oct. 20, 1994, 108 Stat. 3561, related to grants for outlying areas and the Secretary of the Interior, prior to the general amendment of this subchapter by Pub. L. 107–110.

### Amendments

2024—Subsec. (b)(1)(A). Pub. L. 118–42 added subpar. (A) and struck out former subpar. (A) which read as follows: “first reserve $1,000,000 for the Republic of Palau, until Palau enters into an agreement for extension of United States educational assistance under the Compact of Free Association, and subject to such terms and conditions as the Secretary may establish, except that Public Law 95–134, permitting the consolidation of grants, shall not apply; and”.

2015—Pub. L. 114–95 amended section generally. Prior to amendment, section consisted of subsecs. (a) to (d) relating to reservation of one percent of funds for assistance to outlying areas and the Secretary of the Interior, grants to outlying areas, definitions, and allotment to the Secretary of the Interior to meet special educational needs of Indian children.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2015 Amendment

Amendment by Pub. L. 114–95 effective Dec. 10, 2015, except with respect to certain noncompetitive programs and competitive programs, see section 5 of Pub. L. 114–95, set out as a note under section 6301 of this title.