---
kind: "section"
citation: "20 U.S.C. § 6333"
title: "20"
title_heading: "Education"
number: "6333"
heading: "Basic grants to local educational agencies"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/6333"
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"
---

# §6333. Basic grants to local educational agencies

- (a) **Amount of grants—**
  - (1) **Grants for local educational agencies and Puerto Rico—** Except as provided in [paragraph (4)](#a-4) and in [section 6338 of this title](/usc/20/6338.md), the grant that a [local educational agency](/usc/20/7801.md?p=30-A) is eligible to receive under this section for a fiscal year is the amount determined by multiplying—
    - (A) the number of children counted under [subsection (c)](#c); and
    - (B) 40 percent of the [average per-pupil expenditure](/usc/20/7801.md?p=2) in the [State](/usc/20/7171.md?p=b-6), except that the amount determined under this subparagraph shall not be less than 32 percent, or more than 48 percent, of the [average per-pupil expenditure](/usc/20/7801.md?p=2) in the United States.
  - (2) **Calculation of grants—**
    - (A) **Allocations to local educational agencies—** The [Secretary](/usc/20/7801.md?p=46) shall calculate grants under this section on the basis of the number of children counted under [subsection (c)](#c) for [local educational agencies](/usc/20/7801.md?p=30-A), unless the [Secretary](/usc/20/7801.md?p=46) and the [Secretary](/usc/20/7801.md?p=46) of Commerce determine that some or all of those data are unreliable or that their use would be otherwise inappropriate, in which case—
      - (i) the two [Secretaries](/usc/20/7801.md?p=46) shall publicly disclose the reasons for their determination in detail; and
      - (ii) [paragraph (3)](#a-3) shall apply.
    - (B) **Allocations to large and small local educational agencies—**
      - (i) For any fiscal year to which this paragraph applies, the [Secretary](/usc/20/7801.md?p=46) shall calculate grants under this section for each [local educational agency](/usc/20/7801.md?p=30-A).
      - (ii) The amount of a grant under this section for each large [local educational agency](/usc/20/7801.md?p=30-A) shall be the amount determined under [clause (i)](#a-2-B-i).
      - (iii) For small [local educational agencies](/usc/20/7801.md?p=30-A), the [State educational agency](/usc/20/7801.md?p=49) may either—
        - (I) distribute grants under this section in amounts determined by the [Secretary](/usc/20/7801.md?p=46) under [clause (i)](#a-2-B-i); or
        - (II) use an alternative method approved by the [Secretary](/usc/20/7801.md?p=46) to distribute the portion of the [State](/usc/20/7171.md?p=b-6)’s total grants under this section that is based on those small agencies.
      - (iv) An alternative method under [clause (iii)(II)](#a-2-B-iii-II) shall be based on population data that the [State educational agency](/usc/20/7801.md?p=49) determines best reflect the current distribution of children in poor families among the [State](/usc/20/7171.md?p=b-6)’s small [local educational agencies](/usc/20/7801.md?p=30-A) that meet the eligibility criteria of [subsection (b)](#b).
      - (v) If a small [local educational agency](/usc/20/7801.md?p=30-A) is dissatisfied with the determination of its grant by the [State educational agency](/usc/20/7801.md?p=49) under [clause (iii)(II)](#a-2-B-iii-II), it may appeal that determination to the [Secretary](/usc/20/7801.md?p=46), who shall respond not later than 45 days after receipt of such appeal.
      - (vi) As used in this subparagraph—
        - (I) the term “large [local educational agency](/usc/20/7801.md?p=30-A)” means a [local educational agency](/usc/20/7801.md?p=30-A) serving an area with a total population of 20,000 or more; and
        - (II) the term “small [local educational agency](/usc/20/7801.md?p=30-A)” means a [local educational agency](/usc/20/7801.md?p=30-A) serving an area with a total population of less than 20,000.
  - (3) **Allocations to counties—**
    - (A) **Calculation—** For any fiscal year to which this paragraph applies, the [Secretary](/usc/20/7801.md?p=46) shall calculate grants under this section on the basis of the number of children counted under [subsection (c)](#c) for [counties](/usc/20/7801.md?p=10), and [State educational agencies](/usc/20/7801.md?p=49) shall suballocate [county](/usc/20/7801.md?p=10) amounts to [local educational agencies](/usc/20/7801.md?p=30-A), in accordance with regulations issued by the [Secretary](/usc/20/7801.md?p=46).
    - (B) **Direct allocations—** In any [State](/usc/20/7171.md?p=b-6) in which a large number of [local educational agencies](/usc/20/7801.md?p=30-A) overlap [county](/usc/20/7801.md?p=10) boundaries, or for which the [State](/usc/20/7171.md?p=b-6) believes it has data that would better target funds than allocating them by [county](/usc/20/7801.md?p=10), the [State educational agency](/usc/20/7801.md?p=49) may apply to the [Secretary](/usc/20/7801.md?p=46) for authority to make the allocations under this subpart for a particular fiscal year directly to [local educational agencies](/usc/20/7801.md?p=30-A) without regard to [counties](/usc/20/7801.md?p=10).
    - (C) **Allocations to local educational agencies—** If the [Secretary](/usc/20/7801.md?p=46) approves the [State educational agency](/usc/20/7801.md?p=49)’s application under [subparagraph (B)](#a-3-B), the [State educational agency](/usc/20/7801.md?p=49) shall provide the [Secretary](/usc/20/7801.md?p=46) an assurance that such allocations shall be made—
      - (i) using precisely the same factors for determining a grant as are used under this subpart; or
      - (ii) using data that the [State educational agency](/usc/20/7801.md?p=49) submits to the [Secretary](/usc/20/7801.md?p=46) for approval that more accurately target poverty.
    - (D) **Appeal—** The [State educational agency](/usc/20/7801.md?p=49) shall provide the [Secretary](/usc/20/7801.md?p=46) an assurance that it will establish a procedure through which a [local educational agency](/usc/20/7801.md?p=30-A) that is dissatisfied with its determinations under [subparagraph (B)](#a-3-B) may appeal directly to the [Secretary](/usc/20/7801.md?p=46) for a final determination.
  - (4) **Puerto Rico—**
    - (A) **In general—** For each fiscal year, the grant that the Commonwealth of Puerto Rico shall be eligible to receive under this section shall be the amount determined by multiplying the number of children counted under [subsection (c)](#c) for the Commonwealth of Puerto Rico by the product of—
      - (i) subject to [subparagraph (B)](#a-4-B), the percentage that the [average per-pupil expenditure](/usc/20/7801.md?p=2) in the Commonwealth of Puerto Rico is of the lowest [average per-pupil expenditure](/usc/20/7801.md?p=2) of any of the 50 [States](/usc/20/7171.md?p=b-6); and
      - (ii) 32 percent of the [average per-pupil expenditure](/usc/20/7801.md?p=2) in the United States.
    - (B) **Minimum percentage—** The percentage in [subparagraph (A)(i)](#a-4-A-i) shall not be less than—
      - (i) for fiscal year 2002, 77.5 percent;
      - (ii) for fiscal year 2003, 80.0 percent;
      - (iii) for fiscal year 2004, 82.5 percent;
      - (iv) for fiscal year 2005, 85.0 percent;
      - (v) for fiscal year 2006, 92.5 percent; and
      - (vi) for fiscal year 2007 and succeeding fiscal years, 100.0 percent.
    - (C) **Limitation—** If the application of [subparagraph (B)](#a-4-B) would result in any of the 50 [States](/usc/20/7171.md?p=b-6) or the District of Columbia receiving less under this subpart than it received under this subpart for the preceding fiscal year, the percentage in [subparagraph (A)](#a-4-A) shall be the greater of—
      - (i) the percentage in [subparagraph (A)(i)](#a-4-A-i);
      - (ii) the percentage specified in [subparagraph (B)](#a-4-B) for the preceding fiscal year; or
      - (iii) the percentage used for the preceding fiscal year.
- (b) **Minimum number of children to qualify—** A [local educational agency](/usc/20/7801.md?p=30-A) is eligible for a basic grant under this section for any fiscal year only if the number of children counted under [subsection (c)](#c) for that agency is both—
  - (1) 10 or more; and
  - (2) more than 2 percent of the total school-age population in the agency’s jurisdiction.
- (c) **Children to be counted—**
  - (1) **Categories of children—** The number of children to be counted for purposes of this section is the aggregate of—
    - (A) the number of children aged 5 to 17, inclusive, in the school district of the [local educational agency](/usc/20/7801.md?p=30-A) from families below the poverty level as determined under [paragraph (2)](#c-2);
    - (B) the number of children (determined under [paragraph (4)](#c-4) for either the preceding year as described in that paragraph, or for the second preceding year, as the [Secretary](/usc/20/7801.md?p=46) finds appropriate) aged 5 to 17, inclusive, in the school district of such agency in institutions for neglected and delinquent children (other than such institutions operated by the United States), but not counted pursuant to subpart 1 of part D for the purposes of a grant to a [State](/usc/20/7171.md?p=b-6) agency, or being supported in foster homes with public funds; and
    - (C) the number of children aged 5 to 17, inclusive, in the school district of such agency from families above the poverty level as determined under [paragraph (4)](#c-4).
  - (2) **Determination of number of children—** For the purposes of this section, the [Secretary](/usc/20/7801.md?p=46) shall determine the number of children aged 5 to 17, inclusive, from families below the poverty level on the basis of the most recent satisfactory data, described in [paragraph (3)](#c-3), available from the [Department](/usc/20/7801.md?p=13) of Commerce. The District of Columbia and the Commonwealth of Puerto Rico shall be treated as individual [local educational agencies](/usc/20/7801.md?p=30-A). If a [local educational agency](/usc/20/7801.md?p=30-A) contains two or more [counties](/usc/20/7801.md?p=10) in their entirety, then each [county](/usc/20/7801.md?p=10) will be treated as if such [county](/usc/20/7801.md?p=10) were a separate [local educational agency](/usc/20/7801.md?p=30-A) for purposes of calculating grants under this part. The total of grants for such [counties](/usc/20/7801.md?p=10) shall be allocated to such a [local educational agency](/usc/20/7801.md?p=30-A), which [local educational agency](/usc/20/7801.md?p=30-A) shall distribute to schools in each [county](/usc/20/7801.md?p=10) within such agency a share of the [local educational agency](/usc/20/7801.md?p=30-A)’s total grant that is no less than the [county](/usc/20/7801.md?p=10)’s share of the population counts used to calculate the [local educational agency](/usc/20/7801.md?p=30-A)’s grant.
  - (3) **Population updates—**
    - (A) **In general—** In fiscal year 2002 and each subsequent fiscal year, the [Secretary](/usc/20/7801.md?p=46) shall use updated data on the number of children, aged 5 to 17, inclusive, from families below the poverty level for [counties](/usc/20/7801.md?p=10) or [local educational agencies](/usc/20/7801.md?p=30-A), published by the [Department](/usc/20/7801.md?p=13) of Commerce, unless the [Secretary](/usc/20/7801.md?p=46) and the [Secretary](/usc/20/7801.md?p=46) of Commerce determine that the use of the updated population data would be inappropriate or unreliable. If appropriate and reliable data are not available annually, the [Secretary](/usc/20/7801.md?p=46) shall use data which are updated every 2 years.
    - (B) **Inappropriate or unreliable data—** If the [Secretary](/usc/20/7801.md?p=46) and the [Secretary](/usc/20/7801.md?p=46) of Commerce determine that some or all of the data referred to in [subparagraph (A)](#c-3-A) are inappropriate or unreliable, the [Secretary](/usc/20/7801.md?p=46) and the [Secretary](/usc/20/7801.md?p=46) of Commerce shall publicly disclose their reasons.
    - (C) **Criteria of poverty—** In determining the families that are below the poverty level, the [Secretary](/usc/20/7801.md?p=46) shall use the criteria of poverty used by the Bureau of the Census in compiling the most recent decennial census, as the criteria have been updated by increases in the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics.
  - (4) **Other children to be counted—**
    - (A) For the purpose of this section, the [Secretary](/usc/20/7801.md?p=46) shall determine the number of children aged 5 to 17, inclusive, from families above the poverty level on the basis of the number of such children from families receiving an annual income, in excess of the current criteria of poverty, from payments under a [State](/usc/20/7171.md?p=b-6) program funded under part A of title IV of the Social Security Act [[42 U.S.C. 601](/usc/42/601.md) et seq.]; and in making such determinations, the [Secretary](/usc/20/7801.md?p=46) shall use the criteria of poverty used by the Bureau of the Census in compiling the most recent decennial census for a family of four in such form as those criteria have been updated by increases in the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics.
    - (B) The [Secretary](/usc/20/7801.md?p=46) shall determine the number of such children and the number of children aged 5 through 17 living in institutions for neglected or delinquent children, or being supported in foster homes with public funds, on the basis of the caseload data for the month of October of the preceding fiscal year (using, in the case of children described in the preceding sentence, the criteria of poverty and the form of such criteria required by such sentence which were determined for the calendar year preceding such month of October) or, to the extent that such data are not available to the [Secretary](/usc/20/7801.md?p=46) before January of the calendar year in which the [Secretary](/usc/20/7801.md?p=46)’s determination is made, then on the basis of the most recent reliable data available to the [Secretary](/usc/20/7801.md?p=46) at the time of such determination.
    - (C) Except for the data on children living in institutions for neglected or delinquent children, the [Secretary](/usc/20/7801.md?p=46) of Health and Human Services shall collect and transmit the information required by this subparagraph to the [Secretary](/usc/20/7801.md?p=46) not later than January 1 of each year.
    - (D) For the purpose of this section, the [Secretary](/usc/20/7801.md?p=46) shall consider all children who are in correctional institutions to be living in institutions for delinquent children.
  - (5) **Estimate—** When requested by the [Secretary](/usc/20/7801.md?p=46), the [Secretary](/usc/20/7801.md?p=46) of Commerce shall make a special updated estimate of the number of children of such ages who are from families below the poverty level (as determined under [paragraph (1)(A)](#c-1-A)) in each school district, and the [Secretary](/usc/20/7801.md?p=46) is authorized to pay (either in advance or by way of reimbursement) the [Secretary](/usc/20/7801.md?p=46) of Commerce the cost of making this special estimate. The [Secretary](/usc/20/7801.md?p=46) of Commerce shall give consideration to any request of the chief executive of a [State](/usc/20/7171.md?p=b-6) for the collection of additional census information.
- (d) **State minimum—** Notwithstanding [section 6332 of this title](/usc/20/6332.md), the aggregate amount allotted for all [local educational agencies](/usc/20/7801.md?p=30-A) within a [State](/usc/20/7171.md?p=b-6) may not be less than the lesser of—
  - (1) 0.25 percent of the total amount allocated to [States](/usc/20/7171.md?p=b-6) under this section for fiscal year 2001, plus 0.35 percent of the total amount allocated to [States](/usc/20/7171.md?p=b-6) under this section in excess of the amount allocated for fiscal year 2001; or
  - (2) the average of—
    - (A) the amount calculated in [paragraph (1)](#d-1), above; and
    - (B) the number of children in such [State](/usc/20/7171.md?p=b-6) counted under [subsection (c)](#c) in the fiscal year multiplied by 150 percent of the national average per-pupil payment made with funds available under this section for that year.

## Source credit

(Pub. L. 89–10, title I, § 1124, as added Pub. L. 107–110, title I, § 101, Jan. 8, 2002, 115 Stat. 1516.)

## Notes

### Editorial Notes

### References in Text

The Social Security Act, referred to in subsec. (c)(4)(A), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Part A of title IV of the Act is classified generally to part A (§ 601 et seq.) of subchapter IV of chapter 7 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

### Prior Provisions

A prior section 6333, Pub. L. 89–10, title I, § 1124, as added Pub. L. 103–382, title I, § 101, Oct. 20, 1994, 108 Stat. 3564; amended Pub. L. 104–193, title I, § 110(j)(2), Aug. 22, 1996, 110 Stat. 2172, related to basic grants to local educational agencies, prior to the general amendment of this subchapter by Pub. L. 107–110.