---
kind: "section"
citation: "20 U.S.C. § 7221e"
title: "20"
title_heading: "Education"
number: "7221e"
heading: "Federal formula allocation during first year and for successive enrollment expansions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/7221e"
units:
  - "Chapter 70 — Strengthening and Improvement of Elementary and Secondary Schools"
  - "Subchapter IV — 21st Century Schools"
  - "Part C — Expanding Opportunity Through Quality Charter Schools"
---

# §7221e. Federal formula allocation during first year and for successive enrollment expansions

- (a) **In general—** For purposes of the allocation to schools by the [States](/usc/20/7171.md?p=b-6) or their agencies of funds under part A of subchapter I, and any other Federal funds which the [Secretary](/usc/20/7801.md?p=46) allocates to [States](/usc/20/7171.md?p=b-6) on a formula basis, the [Secretary](/usc/20/7801.md?p=46) and each [State educational agency](/usc/20/7801.md?p=49) shall take such measures as are necessary to ensure that every [charter school](/usc/20/7221i.md?p=2) receives the Federal funding for which the [charter school](/usc/20/7221i.md?p=2) is eligible not later than 5 months after the [charter school](/usc/20/7221i.md?p=2) first opens, notwithstanding the fact that the identity and characteristics of the students enrolling in that [charter school](/usc/20/7221i.md?p=2) are not fully and completely determined until that [charter school](/usc/20/7221i.md?p=2) actually opens. The measures similarly shall ensure that every [charter school](/usc/20/7221i.md?p=2) expanding its enrollment in any subsequent year of operation receives the Federal funding for which the [charter school](/usc/20/7221i.md?p=2) is eligible not later than 5 months after such expansion.
- (b) **Adjustment and late openings—**
  - (1) **In general—** The measures described in [subsection (a)](#a) shall include provision for appropriate adjustments, through recovery of funds or reduction of payments for the succeeding year, in cases where payments made to a [charter school](/usc/20/7221i.md?p=2) on the basis of estimated or projected enrollment data exceed the amounts that the school is eligible to receive on the basis of actual or final enrollment data.
  - (2) **Rule—** For [charter schools](/usc/20/7221i.md?p=2) that first open after November 1 of any academic year, the [State](/usc/20/7171.md?p=b-6), in accordance with guidance provided by the [Secretary](/usc/20/7801.md?p=46) and applicable Federal statutes and regulations, shall ensure that such [charter schools](/usc/20/7221i.md?p=2) that are eligible for the funds described in [subsection (a)](#a) for such academic year have a full and fair opportunity to receive those funds during the [charter schools](/usc/20/7221i.md?p=2)’ first year of operation.
- (c) **New or significantly expanding charter schools—** For purposes of implementing the hold harmless protections in sections [6332(c)](/usc/20/6332.md?p=c) and [6337(g)(3)](/usc/20/6337.md)[^1] of this title for a newly opened or significantly expanded [charter school](/usc/20/7221i.md?p=2) under this part, a [State educational agency](/usc/20/7801.md?p=49) shall calculate a hold-harmless base for the prior year that, as applicable, reflects the new or significantly expanded enrollment of the [charter school](/usc/20/7221i.md?p=2).

## Footnotes

[^1]: See References in Text note below.

## Source credit

(Pub. L. 89–10, title IV, § 4306, formerly title V, § 5206, as added Pub. L. 107–110, title V, § 501, Jan. 8, 2002, 115 Stat. 1797; renumbered title IV, § 4306, and amended Pub. L. 114–95, title IV, §§ 4001(b)(2)(A), (B), (D)(iii), 4301(2), Dec. 10, 2015, 129 Stat. 1967, 2011.)

## Notes

### Editorial Notes

### References in Text

Section 6337(g)(3) of this title, referred to in subsec. (c), was redesignated section 6337(f)(3) of this title by Pub. L. 114–95, title I, § 1017(7), Dec. 10, 2015, 129 Stat. 1879.

### Amendments

2015—Subsec. (c). Pub. L. 114–95, § 4301(2), added subsec. (c).

### 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.