---
kind: "section"
citation: "20 U.S.C. § 6338"
title: "20"
title_heading: "Education"
number: "6338"
heading: "Special allocation procedures"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/6338"
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"
---

# §6338. Special allocation procedures

- (a) **Allocations for neglected children—**
  - (1) **In general—** If a [State educational agency](/usc/20/7801.md?p=49) determines that a [local educational agency](/usc/20/7801.md?p=30-A) in the [State](/usc/20/7171.md?p=b-6) is unable or unwilling to provide for the special educational needs of children who are living in institutions for neglected children as described in [section 6333(c)(1)(B) of this title](/usc/20/6333.md?p=c-1-B), the [State educational agency](/usc/20/7801.md?p=49) shall, if such agency assumes responsibility for the special educational needs of such children, receive the portion of such [local educational agency](/usc/20/7801.md?p=30-A)’s allocation under sections [6333](/usc/20/6333.md), [6334](/usc/20/6334.md), [6335](/usc/20/6335.md), and [6337](/usc/20/6337.md) of this title that is attributable to such children.
  - (2) **Special rule—** If the [State educational agency](/usc/20/7801.md?p=49) does not assume such responsibility, any other [State](/usc/20/7171.md?p=b-6) or local public agency that does assume such responsibility shall receive that portion of the [local educational agency](/usc/20/7801.md?p=30-A)’s allocation.
- (b) **Allocations among local educational agencies—** The [State educational agency](/usc/20/7801.md?p=49) may allocate the amounts of grants under sections [6333](/usc/20/6333.md), [6334](/usc/20/6334.md), [6335](/usc/20/6335.md), and [6337](/usc/20/6337.md) of this title among the affected [local educational agencies](/usc/20/7801.md?p=30-A)—
  - (1) if two or more [local educational agencies](/usc/20/7801.md?p=30-A) serve, in whole or in part, the same geographical area;
  - (2) if a [local educational agency](/usc/20/7801.md?p=30-A) provides [free public education](/usc/20/7491.md?p=2) for children who reside in the school district of another [local educational agency](/usc/20/7801.md?p=30-A); or
  - (3) to reflect the merger, creation, or change of boundaries of one or more [local educational agencies](/usc/20/7801.md?p=30-A).
- (c) **Reallocation—** If a [State educational agency](/usc/20/7801.md?p=49) determines that the amount of a grant a [local educational agency](/usc/20/7801.md?p=30-A) would receive under sections [6333](/usc/20/6333.md), [6334](/usc/20/6334.md), [6335](/usc/20/6335.md), and [6337](/usc/20/6337.md) of this title is more than such [local educational agency](/usc/20/7801.md?p=30-A) will use, the [State educational agency](/usc/20/7801.md?p=49) shall make the excess amount available to other [local educational agencies](/usc/20/7801.md?p=30-A) in the [State](/usc/20/7171.md?p=b-6) that need additional funds in accordance with criteria established by the [State educational agency](/usc/20/7801.md?p=49).

## Source credit

(Pub. L. 89–10, title I, § 1126, as added Pub. L. 107–110, title I, § 101, Jan. 8, 2002, 115 Stat. 1534.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 6338, Pub. L. 89–10, title I, § 1127, as added Pub. L. 103–382, title I, § 101, Oct. 20, 1994, 108 Stat. 3577, related to carryover and waiver, prior to the general amendment of this subchapter by Pub. L. 107–110.

A prior section 1126 of Pub. L. 89–10 was classified to section 6337 of this title, prior to the general amendment of this subchapter by Pub. L. 107–110.