---
kind: "section"
citation: "20 U.S.C. § 7221b"
title: "20"
title_heading: "Education"
number: "7221b"
heading: "Grants to support high-quality charter schools"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/7221b"
units:
  - "Chapter 70 — Strengthening and Improvement of Elementary and Secondary Schools"
  - "Subchapter IV — 21st Century Schools"
  - "Part C — Expanding Opportunity Through Quality Charter Schools"
---

# §7221b. Grants to support high-quality charter schools

- (a) **State entity defined—** For purposes of this section, the term “[State](/usc/20/7171.md?p=b-6) entity” means—
  - (1) a [State educational agency](/usc/20/7801.md?p=49);
  - (2) a [State](/usc/20/7171.md?p=b-6) [charter school](/usc/20/7221i.md?p=2) board;
  - (3) a Governor of a [State](/usc/20/7171.md?p=b-6); or
  - (4) a [charter school support organization](/usc/20/7221i.md?p=4).
- (b) **Program authorized—** From the amount available under [section 7221a(b)(3) of this title](/usc/20/7221a.md?p=b-3), the [Secretary](/usc/20/7801.md?p=46) shall award, on a competitive basis, grants to [State](/usc/20/7171.md?p=b-6) entities having applications approved under [subsection (f)](#f) to enable such entities to—
  - (1) award subgrants to [eligible applicants](/usc/20/7221i.md?p=6) to enable [eligible applicants](/usc/20/7221i.md?p=6) to—
    - (A) open and prepare for the operation of new [charter schools](/usc/20/7221i.md?p=2);
    - (B) open and prepare for the operation of replicated [high-quality charter schools](/usc/20/7221i.md?p=8); or
    - (C) [expand](/usc/20/7221i.md?p=7) [high-quality charter schools](/usc/20/7221i.md?p=8); and
  - (2) provide technical assistance to [eligible applicants](/usc/20/7221i.md?p=6) and [authorized public chartering agencies](/usc/20/7221i.md?p=1) in carrying out the activities described in [paragraph (1)](#b-1), and work with [authorized public chartering agencies](/usc/20/7221i.md?p=1) in the [State](/usc/20/7171.md?p=b-6) to improve authorizing quality, including developing capacity for, and conducting, fiscal oversight and auditing of [charter schools](/usc/20/7221i.md?p=2).
- (c) **State entity uses of funds—**
  - (1) **In general—** A [State](/usc/20/7171.md?p=b-6) entity receiving a grant under this section shall—
    - (A) use not less than 90 percent of the grant funds to award subgrants to [eligible applicants](/usc/20/7221i.md?p=6), in accordance with the quality [charter school](/usc/20/7221i.md?p=2) program described in the [State](/usc/20/7171.md?p=b-6) entity’s application pursuant to [subsection (f)](#f), for the purposes described in [subsection (b)(1)](#b-1);
    - (B) reserve not less than 7 percent of such funds to carry out the activities described in [subsection (b)(2)](#b-2); and
    - (C) reserve not more than 3 percent of such funds for administrative costs, which may include technical assistance.
  - (2) **Contracts and grants—** A [State](/usc/20/7171.md?p=b-6) entity may use a grant received under this section to carry out the activities described in [subsection (b)(2)](#b-2) directly or through grants, contracts, or cooperative agreements.
  - (3) **Rule of construction—**
    - (A) **Use of lottery—** Nothing in this chapter shall prohibit the [Secretary](/usc/20/7801.md?p=46) from awarding grants to [State](/usc/20/7171.md?p=b-6) entities, or prohibit [State](/usc/20/7171.md?p=b-6) entities from awarding subgrants to [eligible applicants](/usc/20/7221i.md?p=6), that use a weighted lottery to give slightly better chances for admission to all, or a subset of, educationally disadvantaged students if—
      - (i) the use of weighted lotteries in favor of such students is not prohibited by [State](/usc/20/7171.md?p=b-6) law, and such [State](/usc/20/7171.md?p=b-6) law is consistent with laws described in [section 7221i(2)(G) of this title](/usc/20/7221i.md?p=2-G); and
      - (ii) such weighted lotteries are not used for the purpose of creating schools exclusively to serve a particular subset of students.
    - (B) **Students with special needs—** Nothing in this paragraph shall be construed to prohibit schools from specializing in providing specific services for students with a demonstrated need for such services, such as students who need specialized instruction in reading, spelling, or writing.
- (d) **Program periods; peer review; distribution of subgrants; waivers—**
  - (1) **Program periods—**
    - (A) **Grants—** A grant awarded by the [Secretary](/usc/20/7801.md?p=46) to a [State](/usc/20/7171.md?p=b-6) entity under this section shall be for a period of not more than 5 years.
    - (B) **Subgrants—** A subgrant awarded by a [State](/usc/20/7171.md?p=b-6) entity under this section shall be for a period of not more than 5 years, of which an [eligible applicant](/usc/20/7221i.md?p=6) may use not more than 18 months for planning and program design.
  - (2) **Peer review—** The [Secretary](/usc/20/7801.md?p=46), and each [State](/usc/20/7171.md?p=b-6) entity awarding subgrants under this section, shall use a peer-review process to review applications for assistance under this section.
  - (3) **Grant awards—**
    - (A) **In general—** The [Secretary](/usc/20/7801.md?p=46)—
      - (i) shall for each fiscal year for which funds are appropriated under [section 7221j of this title](/usc/20/7221j.md)—
        - (I) award not less than 3 grants under this section; and
        - (II) fully obligate the first 2 years of funds appropriated for the purpose of awarding grants under this section in the first fiscal year for which such grants are awarded; and
      - (ii) prior to the start of the third year of the grant period and each succeeding year of each grant awarded under this section to a [State](/usc/20/7171.md?p=b-6) entity—
        - (I) shall review—
          - (aa) whether the [State](/usc/20/7171.md?p=b-6) entity is using the grant funds for the agreed upon uses of funds; and
          - (bb) whether the full amount of the grant will be needed for the remainder of the grant period; and
        - (II) may, as determined necessary based on that review, terminate or reduce the amount of the grant and reallocate the remaining grant funds to other [State](/usc/20/7171.md?p=b-6) entities—
          - (aa) by using such funds to award grants under this section to other [State](/usc/20/7171.md?p=b-6) entities; or
          - (bb) in a fiscal year in which the amount of such remaining funds is insufficient to award grants under [item (aa)](#d-3-A-ii-II-aa), in accordance with [subparagraph (B)](#d-3-B).
    - (B) **Remaining funding—** For a fiscal year for which there are remaining grant funds under this paragraph, but the amount of such funds is insufficient to award a grant to a [State](/usc/20/7171.md?p=b-6) entity under this section, the [Secretary](/usc/20/7801.md?p=46) shall use such remaining grants funds—
      - (i) to supplement funding for grants under [section 7221d(a)(2) of this title](/usc/20/7221d.md?p=a-2), but not to supplant—
        - (I) the funds reserved under [section 7221d(a)(2) of this title](/usc/20/7221d.md?p=a-2); and
        - (II) funds otherwise reserved under [section 7221a(b)(2) of this title](/usc/20/7221a.md?p=b-2) to carry out national activities under [section 7221d of this title](/usc/20/7221d.md);
      - (ii) to award grants to [State](/usc/20/7171.md?p=b-6) entities to carry out the activities described in [subsection (b)(1)](#b-1) for the next fiscal year; or
      - (iii) to award one year of a grant under [subsection (b)(1)](#b-1) to a high-scoring [State](/usc/20/7171.md?p=b-6) entity, in an amount at or above the minimum amount the [State](/usc/20/7171.md?p=b-6) entity needs to be successful for such year.
  - (4) **Diversity of projects—** Each [State](/usc/20/7171.md?p=b-6) entity awarding subgrants under this section shall award subgrants in a manner that, to the extent practicable and applicable, ensures that such subgrants—
    - (A) are distributed throughout different areas, including urban, suburban, and rural areas; and
    - (B) will assist [charter schools](/usc/20/7221i.md?p=2) representing a variety of educational approaches.
  - (5) **Waivers—** The [Secretary](/usc/20/7801.md?p=46) may waive any statutory or regulatory requirement over which the [Secretary](/usc/20/7801.md?p=46) exercises administrative authority, except any such requirement relating to the elements of a [charter school](/usc/20/7221i.md?p=2) described in [section 7221i(2) of this title](/usc/20/7221i.md?p=2), if—
    - (A) the waiver is requested in an approved application under this section; and
    - (B) the [Secretary](/usc/20/7801.md?p=46) determines that granting such waiver will promote the purpose of this part.
- (e) **Limitations—**
  - (1) **Grants—** No [State](/usc/20/7171.md?p=b-6) entity may receive a grant under this section for use in a [State](/usc/20/7171.md?p=b-6) in which a [State](/usc/20/7171.md?p=b-6) entity is currently using a grant received under this section.
  - (2) **Subgrants—** An [eligible applicant](/usc/20/7221i.md?p=6) may not receive more than 1 subgrant under this section for each individual [charter school](/usc/20/7221i.md?p=2) for a 5-year period, unless the [eligible applicant](/usc/20/7221i.md?p=6) demonstrates to the [State](/usc/20/7171.md?p=b-6) entity that such individual [charter school](/usc/20/7221i.md?p=2) has at least 3 years of improved educational results for students enrolled in such [charter school](/usc/20/7221i.md?p=2) with respect to the elements described in subparagraphs (A) and (D) of [section 7221i(8) of this title](/usc/20/7221i.md?p=8).
- (f) **Applications—** A [State](/usc/20/7171.md?p=b-6) entity desiring to receive a grant under this section shall submit an application to the [Secretary](/usc/20/7801.md?p=46) at such time and in such manner as the [Secretary](/usc/20/7801.md?p=46) may require. The application shall include the following:
  - (1) **Description of program—** A description of the [State](/usc/20/7171.md?p=b-6) entity’s objectives in running a quality [charter school](/usc/20/7221i.md?p=2) program under this section and how the objectives of the program will be carried out, including—
    - (A) a description of how the [State](/usc/20/7171.md?p=b-6) entity will—
      - (i) support the opening of [charter schools](/usc/20/7221i.md?p=2) through the startup of new [charter schools](/usc/20/7221i.md?p=2) and, if applicable, the replication of [high-quality charter schools](/usc/20/7221i.md?p=8), and the expansion of [high-quality charter schools](/usc/20/7221i.md?p=8) (including the proposed number of new [charter schools](/usc/20/7221i.md?p=2) to be opened, [high-quality charter schools](/usc/20/7221i.md?p=8) to be opened as a result of the replication of a [high-quality charter school](/usc/20/7221i.md?p=8), or [high-quality charter schools](/usc/20/7221i.md?p=8) to be expanded under the [State](/usc/20/7171.md?p=b-6) entity’s program);
      - (ii) inform eligible [charter schools](/usc/20/7221i.md?p=2), [developers](/usc/20/7221i.md?p=5), and [authorized public chartering agencies](/usc/20/7221i.md?p=1) of the availability of funds under the program;
      - (iii) work with [eligible applicants](/usc/20/7221i.md?p=6) to ensure that the [eligible applicants](/usc/20/7221i.md?p=6) access all Federal funds that such applicants are eligible to receive, and help the [charter schools](/usc/20/7221i.md?p=2) supported by the applicants and the students attending those [charter schools](/usc/20/7221i.md?p=2)—
        - (I) participate in the Federal programs in which the schools and students are eligible to participate;
        - (II) receive the commensurate share of Federal funds the schools and students are eligible to receive under such programs; and
        - (III) meet the needs of students served under such programs, including students with disabilities and [English learners](/usc/20/7801.md?p=20);
      - (iv) ensure that [authorized public chartering agencies](/usc/20/7221i.md?p=1), in collaboration with surrounding [local educational agencies](/usc/20/7801.md?p=30-A) where applicable, establish clear plans and procedures to assist students enrolled in a [charter school](/usc/20/7221i.md?p=2) that closes or loses its charter to attend other high-quality schools;
      - (v) in the case of a [State](/usc/20/7171.md?p=b-6) entity that is not a [State educational agency](/usc/20/7801.md?p=49)—
        - (I) work with the [State educational agency](/usc/20/7801.md?p=49) and [charter schools](/usc/20/7221i.md?p=2) in the [State](/usc/20/7171.md?p=b-6) to maximize [charter school](/usc/20/7221i.md?p=2) participation in Federal and [State](/usc/20/7171.md?p=b-6) programs for which [charter schools](/usc/20/7221i.md?p=2) are eligible; and
        - (II) work with the [State educational agency](/usc/20/7801.md?p=49) to operate the [State](/usc/20/7171.md?p=b-6) entity’s program under this section, if applicable;
      - (vi) ensure that each [eligible applicant](/usc/20/7221i.md?p=6) that receives a subgrant under the [State](/usc/20/7171.md?p=b-6) entity’s program—
        - (I) is using funds provided under this section for one of the activities described in [subsection (b)(1)](#b-1); and
        - (II) is prepared to continue to operate [charter schools](/usc/20/7221i.md?p=2) funded under this section in a manner consistent with the [eligible applicant](/usc/20/7221i.md?p=6)’s application for such subgrant once the subgrant funds under this section are no longer available;
      - (vii) support—
        - (I) [charter schools](/usc/20/7221i.md?p=2) in [local educational agencies](/usc/20/7801.md?p=30-A) with a significant number of schools identified by the [State](/usc/20/7171.md?p=b-6) for comprehensive support and improvement under [section 6311(c)(4)(D)(i) of this title](/usc/20/6311.md?p=c-4-D-i); and
        - (II) the use of [charter schools](/usc/20/7221i.md?p=2) to improve struggling schools, or to turn around struggling schools;
      - (viii) work with [charter schools](/usc/20/7221i.md?p=2) on—
        - (I) recruitment and enrollment practices to promote inclusion of all students, including by eliminating any barriers to enrollment for educationally disadvantaged students (who include foster youth and unaccompanied homeless youth); and
        - (II) supporting all students once they are enrolled to promote retention, including by reducing the overuse of discipline practices that remove students from the classroom;
      - (ix) share best and promising practices between [charter schools](/usc/20/7221i.md?p=2) and other public schools;
      - (x) ensure that [charter schools](/usc/20/7221i.md?p=2) receiving funds under the [State](/usc/20/7171.md?p=b-6) entity’s program meet the educational needs of their students, including children with disabilities and [English learners](/usc/20/7801.md?p=20);
      - (xi) support efforts to increase [charter school](/usc/20/7221i.md?p=2) quality initiatives, including meeting the quality authorizing elements described in [paragraph (2)(D)](#f-2-D);
      - (xii)
        - (I) in the case of a [State](/usc/20/7171.md?p=b-6) entity not described in [subclause (II)](#f-1-A-xii-II), a description of how the [State](/usc/20/7171.md?p=b-6) entity will provide oversight of authorizing activity, including how the [State](/usc/20/7171.md?p=b-6) will help ensure better authorizing, such as by establishing authorizing standards that may include approving, monitoring, and re-approving or revoking the authority of an [authorized public chartering agency](/usc/20/7221i.md?p=1) based on the performance of the [charter schools](/usc/20/7221i.md?p=2) authorized by such agency in the areas of student achievement, student safety, financial and operational management, and compliance with all [applicable statutes](/usc/20/1221.md?p=c-2) and regulations; and
        - (II) in the case of a [State](/usc/20/7171.md?p=b-6) entity described in [subsection (a)(4)](#a-4), a description of how the [State](/usc/20/7171.md?p=b-6) entity will work with the [State](/usc/20/7171.md?p=b-6) to support the [State](/usc/20/7171.md?p=b-6)’s system of technical assistance and oversight, as described in [subclause (I)](#f-1-A-xii-I), of the authorizing activity of [authorized public chartering agencies](/usc/20/7221i.md?p=1); and
      - (xiii) work with [eligible applicants](/usc/20/7221i.md?p=6) receiving a subgrant under the [State](/usc/20/7171.md?p=b-6) entity’s program to support the opening of new [charter schools](/usc/20/7221i.md?p=2) or [charter school](/usc/20/7221i.md?p=2) models described in [clause (i)](#f-1-A-i) that are [high schools](/usc/20/7801.md?p=28);
    - (B) a description of the extent to which the [State](/usc/20/7171.md?p=b-6) entity—
      - (i) is able to meet and carry out the priorities described in [subsection (g)(2)](#g-2);
      - (ii) is working to develop or strengthen a cohesive statewide system to support the opening of new [charter schools](/usc/20/7221i.md?p=2) and, if applicable, the replication of [high-quality charter schools](/usc/20/7221i.md?p=8), and the expansion of [high-quality charter schools](/usc/20/7221i.md?p=8); and
      - (iii) is working to develop or strengthen a cohesive strategy to encourage collaboration between [charter schools](/usc/20/7221i.md?p=2) and [local educational agencies](/usc/20/7801.md?p=30-A) on the sharing of best practices;
    - (C) a description of how the [State](/usc/20/7171.md?p=b-6) entity will award subgrants, on a competitive basis, including—
      - (i) a description of the application each [eligible applicant](/usc/20/7221i.md?p=6) desiring to receive a subgrant will be required to submit, which application shall include—
        - (I) a description of the roles and responsibilities of [eligible applicants](/usc/20/7221i.md?p=6), partner organizations, and [charter management organizations](/usc/20/7221i.md?p=3), including the administrative and contractual roles and responsibilities of such partners;
        - (II) a description of the quality controls agreed to between the [eligible applicant](/usc/20/7221i.md?p=6) and the [authorized public chartering agency](/usc/20/7221i.md?p=1) involved, such as a contract or performance agreement, how a school’s performance in the [State](/usc/20/7171.md?p=b-6)’s accountability system and impact on student achievement (which may include student academic growth) will be one of the most important factors for renewal or revocation of the school’s charter, and how the [State](/usc/20/7171.md?p=b-6) entity and the [authorized public chartering agency](/usc/20/7221i.md?p=1) involved will reserve the right to revoke or not renew a school’s charter based on financial, structural, or operational factors involving the management of the school;
        - (III) a description of how the autonomy and flexibility granted to a [charter school](/usc/20/7221i.md?p=2) is consistent with the definition of a [charter school](/usc/20/7221i.md?p=2) in [section 7221i of this title](/usc/20/7221i.md);
        - (IV) a description of how the [eligible applicant](/usc/20/7221i.md?p=6) will solicit and consider input from [parents](/usc/20/7801.md?p=38) and other members of the community on the implementation and operation of each [charter school](/usc/20/7221i.md?p=2) that will receive funds under the [State](/usc/20/7171.md?p=b-6) entity’s program;
        - (V) a description of the [eligible applicant](/usc/20/7221i.md?p=6)’s planned activities and expenditures of subgrant funds to support the activities described in [subsection (b)(1)](#b-1), and how the [eligible applicant](/usc/20/7221i.md?p=6) will maintain financial sustainability after the end of the subgrant period; and
        - (VI) a description of how the [eligible applicant](/usc/20/7221i.md?p=6) will support the use of effective [parent](/usc/20/7801.md?p=38), family, and community engagement strategies to operate each [charter school](/usc/20/7221i.md?p=2) that will receive funds under the [State](/usc/20/7171.md?p=b-6) entity’s program; and
      - (ii) a description of how the [State](/usc/20/7171.md?p=b-6) entity will review applications from [eligible applicants](/usc/20/7221i.md?p=6);
    - (D) in the case of a [State](/usc/20/7171.md?p=b-6) entity that partners with an outside organization to carry out the [State](/usc/20/7171.md?p=b-6) entity’s quality [charter school](/usc/20/7221i.md?p=2) program, in whole or in part, a description of the roles and responsibilities of the partner;
    - (E) a description of how the [State](/usc/20/7171.md?p=b-6) entity will ensure that each [charter school](/usc/20/7221i.md?p=2) receiving funds under the [State](/usc/20/7171.md?p=b-6) entity’s program has considered and planned for the transportation needs of the school’s students;
    - (F) a description of how the [State](/usc/20/7171.md?p=b-6) in which the [State](/usc/20/7171.md?p=b-6) entity is located addresses [charter schools](/usc/20/7221i.md?p=2) in the [State](/usc/20/7171.md?p=b-6)’s open meetings and open records laws; and
    - (G) a description of how the [State](/usc/20/7171.md?p=b-6) entity will support diverse [charter school](/usc/20/7221i.md?p=2) models, including models that serve rural communities.
  - (2) **Assurances—** Assurances that—
    - (A) each [charter school](/usc/20/7221i.md?p=2) receiving funds through the [State](/usc/20/7171.md?p=b-6) entity’s program will have a high degree of autonomy over budget and operations, including autonomy over personnel decisions;
    - (B) the [State](/usc/20/7171.md?p=b-6) entity will support [charter schools](/usc/20/7221i.md?p=2) in meeting the educational needs of their students, as described in [paragraph (1)(A)(x)](#f-1-A-x);
    - (C) the [State](/usc/20/7171.md?p=b-6) entity will ensure that the [authorized public chartering agency](/usc/20/7221i.md?p=1) of any [charter school](/usc/20/7221i.md?p=2) that receives funds under the [State](/usc/20/7171.md?p=b-6) entity’s program adequately monitors each [charter school](/usc/20/7221i.md?p=2) under the authority of such agency in recruiting, enrolling, retaining, and meeting the needs of all students, including children with disabilities and [English learners](/usc/20/7801.md?p=20);
    - (D) the [State](/usc/20/7171.md?p=b-6) entity will provide adequate technical assistance to [eligible applicants](/usc/20/7221i.md?p=6) to meet the objectives described in [clause (viii)](#f-1-A-viii) of paragraph (1)(A) and subparagraph (B) of this paragraph;
    - (E) the [State](/usc/20/7171.md?p=b-6) entity will promote quality authorizing, consistent with [State](/usc/20/7171.md?p=b-6) law, such as through providing technical assistance to support each [authorized public chartering agency](/usc/20/7221i.md?p=1) in the [State](/usc/20/7171.md?p=b-6) to improve such agency’s ability to monitor the [charter schools](/usc/20/7221i.md?p=2) authorized by the agency, including by—
      - (i) assessing annual performance data of the schools, including, as appropriate, graduation rates, student academic growth, and rates of student attrition;
      - (ii) reviewing the schools’ independent, annual audits of financial statements prepared in accordance with generally accepted accounting principles, and ensuring that any such audits are publically reported; and
      - (iii) holding [charter schools](/usc/20/7221i.md?p=2) accountable to the academic, financial, and operational quality controls agreed to between the [charter school](/usc/20/7221i.md?p=2) and the [authorized public chartering agency](/usc/20/7221i.md?p=1) involved, such as through renewal, non-renewal, or revocation of the school’s charter;
    - (F) the [State](/usc/20/7171.md?p=b-6) entity will work to ensure that [charter schools](/usc/20/7221i.md?p=2) are included with the traditional public schools in decisionmaking about the public school system in the [State](/usc/20/7171.md?p=b-6); and
    - (G) the [State](/usc/20/7171.md?p=b-6) entity will ensure that each [charter school](/usc/20/7221i.md?p=2) receiving funds under the [State](/usc/20/7171.md?p=b-6) entity’s program makes publicly available, consistent with the dissemination requirements of the annual [State](/usc/20/7171.md?p=b-6) report card under [section 6311(h) of this title](/usc/20/6311.md?p=h), including on the website of the school, information to help [parents](/usc/20/7801.md?p=38) make informed decisions about the education options available to their children, including—
      - (i) information on the educational program;
      - (ii) student support services;
      - (iii) [parent](/usc/20/7801.md?p=38) contract requirements (as applicable), including any financial obligations or fees;
      - (iv) enrollment criteria (as applicable); and
      - (v) annual performance and enrollment data for each of the subgroups of students, as defined in [section 6311(c)(2) of this title](/usc/20/6311.md?p=c-2), except that such disaggregation of performance and enrollment data shall not be required in a case in which the number of students in a group is insufficient to yield statically reliable information or the results would reveal personally identifiable information about an individual student.
  - (3) **Requests for waivers—** Information about waivers, including—
    - (A) a request and justification for waivers of any Federal statutory or regulatory provisions that the [State](/usc/20/7171.md?p=b-6) entity believes are necessary for the successful operation of the [charter schools](/usc/20/7221i.md?p=2) that will receive funds under the [State](/usc/20/7171.md?p=b-6) entity’s program under this section or, in the case of a [State](/usc/20/7171.md?p=b-6) entity defined in [subsection (a)(4)](#a-4), a description of how the [State](/usc/20/7171.md?p=b-6) entity will work with the [State](/usc/20/7171.md?p=b-6) to request such necessary waivers, where applicable; and
    - (B) a description of any [State](/usc/20/7171.md?p=b-6) or local rules, generally applicable to public schools, that will be waived, or otherwise not apply to such schools.
- (g) **Selection criteria; priority—**
  - (1) **Selection criteria—** The [Secretary](/usc/20/7801.md?p=46) shall award grants to [State](/usc/20/7171.md?p=b-6) entities under this section on the basis of the quality of the applications submitted under [subsection (f)](#f), after taking into consideration—
    - (A) the degree of flexibility afforded by the [State](/usc/20/7171.md?p=b-6)’s [charter school](/usc/20/7221i.md?p=2) law and how the [State](/usc/20/7171.md?p=b-6) entity will work to maximize the flexibility provided to [charter schools](/usc/20/7221i.md?p=2) under such law;
    - (B) the ambitiousness of the [State](/usc/20/7171.md?p=b-6) entity’s objectives for the quality [charter school](/usc/20/7221i.md?p=2) program carried out under this section;
    - (C) the likelihood that the [eligible applicants](/usc/20/7221i.md?p=6) receiving subgrants under the program will meet those objectives and improve educational results for students;
    - (D) the [State](/usc/20/7171.md?p=b-6) entity’s plan to—
      - (i) adequately monitor the [eligible applicants](/usc/20/7221i.md?p=6) receiving subgrants under the [State](/usc/20/7171.md?p=b-6) entity’s program;
      - (ii) work with the [authorized public chartering agencies](/usc/20/7221i.md?p=1) involved to avoid duplication of work for the [charter schools](/usc/20/7221i.md?p=2) and [authorized public chartering agencies](/usc/20/7221i.md?p=1); and
      - (iii) provide technical assistance and support for—
        - (I) the [eligible applicants](/usc/20/7221i.md?p=6) receiving subgrants under the [State](/usc/20/7171.md?p=b-6) entity’s program; and
        - (II) quality authorizing efforts in the [State](/usc/20/7171.md?p=b-6); and
    - (E) the [State](/usc/20/7171.md?p=b-6) entity’s plan to solicit and consider input from [parents](/usc/20/7801.md?p=38) and other members of the community on the implementation and operation of [charter schools](/usc/20/7221i.md?p=2) in the [State](/usc/20/7171.md?p=b-6).
  - (2) **Priority—** In awarding grants under this section, the [Secretary](/usc/20/7801.md?p=46) shall give priority to a [State](/usc/20/7171.md?p=b-6) entity to the extent that the entity meets the following criteria:
    - (A) The [State](/usc/20/7171.md?p=b-6) entity is located in a [State](/usc/20/7171.md?p=b-6) that—
      - (i) allows at least one entity that is not a [local educational agency](/usc/20/7801.md?p=30-A) to be an [authorized public chartering agency](/usc/20/7221i.md?p=1) for [developers](/usc/20/7221i.md?p=5) seeking to open a [charter school](/usc/20/7221i.md?p=2) in the [State](/usc/20/7171.md?p=b-6); or
      - (ii) in the case of a [State](/usc/20/7171.md?p=b-6) in which [local educational agencies](/usc/20/7801.md?p=30-A) are the only [authorized public chartering agencies](/usc/20/7221i.md?p=1), the [State](/usc/20/7171.md?p=b-6) has an appeals process for the denial of an application for a [charter school](/usc/20/7221i.md?p=2).
    - (B) The [State](/usc/20/7171.md?p=b-6) entity is located in a [State](/usc/20/7171.md?p=b-6) that ensures equitable financing, as compared to traditional public schools, for [charter schools](/usc/20/7221i.md?p=2) and students in a prompt manner.
    - (C) The [State](/usc/20/7171.md?p=b-6) entity is located in a [State](/usc/20/7171.md?p=b-6) that provides [charter schools](/usc/20/7221i.md?p=2) one or more of the following:
      - (i) Funding for facilities.
      - (ii) Assistance with facilities acquisition.
      - (iii) Access to public facilities.
      - (iv) The ability to share in bonds or mill levies.
      - (v) The right of first refusal to purchase public school buildings.
      - (vi) Low- or no-cost leasing privileges.
    - (D) The [State](/usc/20/7171.md?p=b-6) entity is located in a [State](/usc/20/7171.md?p=b-6) that uses best practices from [charter schools](/usc/20/7221i.md?p=2) to help improve struggling schools and [local educational agencies](/usc/20/7801.md?p=30-A).
    - (E) The [State](/usc/20/7171.md?p=b-6) entity supports [charter schools](/usc/20/7221i.md?p=2) that serve [at-risk](/usc/20/6472.md?p=2) students through activities such as dropout prevention, dropout recovery, or comprehensive career counseling services.
    - (F) The [State](/usc/20/7171.md?p=b-6) entity has taken steps to ensure that all authorizing public chartering agencies implement best practices for [charter school](/usc/20/7221i.md?p=2) authorizing.
- (h) **Local uses of funds—** An [eligible applicant](/usc/20/7221i.md?p=6) receiving a subgrant under this section shall use such funds to support the activities described in [subsection (b)(1)](#b-1), which shall include one or more of the following activities:
  - (1) Preparing teachers, [school leaders](/usc/20/7801.md?p=44), and [specialized instructional support personnel](/usc/20/7801.md?p=47-A), including through paying the costs associated with—
    - (A) providing [professional development](/usc/20/7801.md?p=42); and
    - (B) hiring and compensating, during the [eligible applicant](/usc/20/7221i.md?p=6)’s planning period specified in the application for subgrant funds that is required under this section, one or more of the following:
      - (i) Teachers.
      - (ii) [School leaders](/usc/20/7801.md?p=44).
      - (iii) [Specialized instructional support personnel](/usc/20/7801.md?p=47-A).
  - (2) Acquiring supplies, training, equipment (including [technology](/usc/20/7801.md?p=50)), and educational materials (including developing and acquiring instructional materials).
  - (3) Carrying out necessary renovations to ensure that a new school building complies with [applicable statutes](/usc/20/1221.md?p=c-2) and regulations, and minor facilities repairs (excluding construction).
  - (4) Providing one-time, startup costs associated with providing transportation to students to and from the [charter school](/usc/20/7221i.md?p=2).
  - (5) Carrying out community engagement activities, which may include paying the cost of student and staff recruitment.
  - (6) Providing for other appropriate, non-sustained costs related to the activities described in [subsection (b)(1)](#b-1) when such costs cannot be met from other sources.
- (i) **Reporting requirements—** Each [State](/usc/20/7171.md?p=b-6) entity receiving a grant under this section shall submit to the [Secretary](/usc/20/7801.md?p=46), at the end of the third year of the 5-year grant period (or at the end of the second year of the grant period if the grant is less than 5 years), and at the end of such grant period, a report that includes the following:
  - (1) The number of students served by each subgrant awarded under this section and, if applicable, the number of new students served during each year of the period of the subgrant.
  - (2) A description of how the [State](/usc/20/7171.md?p=b-6) entity met the objectives of the quality [charter school](/usc/20/7221i.md?p=2) program described in the [State](/usc/20/7171.md?p=b-6) entity’s application under [subsection (f)](#f), including—
    - (A) how the [State](/usc/20/7171.md?p=b-6) entity met the objective of sharing best and promising practices described in [subsection (f)(1)(A)(ix)](#f-1-A-ix) in areas such as instruction, [professional development](/usc/20/7801.md?p=42), curricula development, and operations between [charter schools](/usc/20/7221i.md?p=2) and other public schools; and
    - (B) if known, the extent to which such practices were adopted and implemented by such other public schools.
  - (3) The number and amount of subgrants awarded under this section to carry out activities described in each of subparagraphs [(A)](#b-1-A) through [(C)](#b-1-C) of subsection (b)(1).
  - (4) A description of—
    - (A) how the [State](/usc/20/7171.md?p=b-6) entity complied with, and ensured that [eligible applicants](/usc/20/7221i.md?p=6) complied with, the assurances included in the [State](/usc/20/7171.md?p=b-6) entity’s application; and
    - (B) how the [State](/usc/20/7171.md?p=b-6) entity worked with [authorized public chartering agencies](/usc/20/7221i.md?p=1), and how the agencies worked with the management company or leadership of the schools that received subgrant funds under this section, if applicable.

## Source credit

(Pub. L. 89–10, title IV, § 4303, as added Pub. L. 114–95, title IV, § 4301(1), Dec. 10, 2015, 129 Stat. 1995.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 7221b, Pub. L. 89–10, title IV, § 4303, formerly title V, § 5203, as added Pub. L. 107–110, title V, § 501, Jan. 8, 2002, 115 Stat. 1790; renumbered title IV, § 4303, Pub. L. 114–95, title IV, § 4001(b)(2)(A), (B), (D)(iii), Dec. 10, 2015, 129 Stat. 1967, related to applications from State agencies, prior to repeal by Pub. L. 114–95, § 5, title IV, § 4301(1), Dec. 10, 2015, 129 Stat. 1806, 1993, effective Dec. 10, 2015, except with respect to certain noncompetitive programs and competitive programs.

A prior section 4303 of Pub. L. 89–10 was renumbered section 8573, and is classified to section 7973 of this title.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section 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 an Effective Date of 2015 Amendment note under section 6301 of this title.