---
kind: "section"
citation: "20 U.S.C. § 7345"
title: "20"
title_heading: "Education"
number: "7345"
heading: "Use of applicable funding"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/7345"
units:
  - "Chapter 70 — Strengthening and Improvement of Elementary and Secondary Schools"
  - "Subchapter V — Flexibility and Accountability"
  - "Part B — Rural Education Initiative"
  - "Subpart 1 — small, rural school achievement program"
---

# §7345. Use of applicable funding

- (a) **Alternative uses—**
  - (1) **In general—** Notwithstanding any other provision of law, an eligible [local educational agency](/usc/20/7801.md?p=30-A) may use the applicable funding that the agency is eligible to receive from the [State educational agency](/usc/20/7801.md?p=49) for a fiscal year to carry out local activities authorized under any of the following provisions:
    - (A) Part A of subchapter I.
    - (B) Part A of subchapter II.
    - (C) Subchapter III.
    - (D) Part A or B of subchapter IV.
  - (2) **Notification—** An eligible [local educational agency](/usc/20/7801.md?p=30-A) shall notify the [State educational agency](/usc/20/7801.md?p=49) of the [local educational agency](/usc/20/7801.md?p=30-A)’s intention to use the applicable funding in accordance with [paragraph (1)](#a-1), by a date that is established by the [State educational agency](/usc/20/7801.md?p=49) for the notification.
- (b) **Eligibility—**
  - (1) **In general—** A [local educational agency](/usc/20/7801.md?p=30-A) shall be eligible to use the applicable funding in accordance with [subsection (a)](#a) if—
    - (A)
      - (i)
        - (I) the total number of students in [average daily attendance](/usc/20/7801.md?p=1-A) at all of the schools served by the [local educational agency](/usc/20/7801.md?p=30-A) is fewer than 600; or
        - (II) each [county](/usc/20/7801.md?p=10) in which a school served by the [local educational agency](/usc/20/7801.md?p=30-A) is located has a total population density of fewer than 10 persons per square mile; and
      - (ii) all of the schools served by the [local educational agency](/usc/20/7801.md?p=30-A) are designated with a locale code of 41, 42, or 43, as determined by the [Secretary](/usc/20/7801.md?p=46);
    - (B) the agency meets the criteria established in [subparagraph (A)(i)](#b-1-A-i) and the [Secretary](/usc/20/7801.md?p=46), in accordance with [paragraph (2)](#b-2), grants the [local educational agency](/usc/20/7801.md?p=30-A)’s request to waive the criteria described in [subparagraph (A)(ii)](#b-1-A-ii); or
    - (C) the [local educational agency](/usc/20/7801.md?p=30-A) is a member of an [educational service agency](/usc/20/7801.md?p=18) that does not receive funds under this subpart and the [local educational agency](/usc/20/7801.md?p=30-A) meets the requirements of this part.
  - (2) **Certification—** The [Secretary](/usc/20/7801.md?p=46) shall determine whether to waive the criteria described in [paragraph (1)(A)(ii)](#b-1-A-ii) based on a demonstration by the [local educational agency](/usc/20/7801.md?p=30-A), and concurrence by the [State educational agency](/usc/20/7801.md?p=49), that the [local educational agency](/usc/20/7801.md?p=30-A) is located in an area defined as rural by a governmental agency of the [State](/usc/20/7171.md?p=b-6).
- (c) **Applicable funding defined—** In this section, the term “applicable funding” means funds provided under any of the following provisions:
  - (1) Part A of subchapter II.
  - (2) Part A of subchapter IV.
- (d) **Disbursement—** Each [State educational agency](/usc/20/7801.md?p=49) that receives applicable funding for a fiscal year shall disburse the applicable funding to [local educational agencies](/usc/20/7801.md?p=30-A) for alternative uses under this section for the fiscal year at the same time as the [State educational agency](/usc/20/7801.md?p=49) disburses the applicable funding to [local educational agencies](/usc/20/7801.md?p=30-A) that do not intend to use the applicable funding for such alternative uses for the fiscal year.
- (e) **Applicable rules—** Applicable funding under this section shall be available to carry out local activities authorized under [subsection (a)](#a).

## Source credit

(Pub. L. 89–10, title V, § 5211, formerly title VI, § 6211, as added Pub. L. 107–110, title VI, § 601, Jan. 8, 2002, 115 Stat. 1891; renumbered title V, § 5211, and amended Pub. L. 114–95, title V, §§ 5001(a)(3), 5003(1), Dec. 10, 2015, 129 Stat. 2039–2041.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 5211 of Pub. L. 89–10 was renumbered section 4311 and was classified to section 7221j of this title, prior to repeal by Pub. L. 114–95.

### Amendments

2015—Subsec. (a)(1). Pub. L. 114–95, § 5003(1)(A), added subpars. (A) to (D) and struck out former subpars. (A) to (E) which read as follows:

“(A) Part A of subchapter I of this chapter.

“(B) Part A or D of subchapter II of this chapter.

“(C) Subchapter III of this chapter.

“(D) Part A or B of subchapter IV of this chapter.

“(E) Part A of subchapter V of this chapter.”

Subsec. (b)(1)(A)(ii). Pub. L. 114–95, § 5003(1)(B)(i), struck out “school” before “locale code” and substituted “41, 42, or 43, as determined by the Secretary;” for “7 or 8, as determined by the Secretary; or”.

Subsec. (b)(1)(C). Pub. L. 114–95, § 5003(1)(B)(ii), (iii), added subpar. (C).

Subsec. (c). Pub. L. 114–95, § 5003(1)(C), added pars. (1) and (2) and struck out former pars. (1) to (3) which read as follows:

“(1) Subpart 2 of this part and section 6762(a)(2)(A) of this title.

“(2) Section 7114 of this title.

“(3) Part A of subchapter V of this chapter.”

### 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.