---
kind: "section"
citation: "20 U.S.C. § 7428"
title: "20"
title_heading: "Education"
number: "7428"
heading: "Payments"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/7428"
units:
  - "Chapter 70 — Strengthening and Improvement of Elementary and Secondary Schools"
  - "Subchapter VI — Indian, Native Hawaiian, and Alaska Native Education"
  - "Part A — Indian Education"
  - "Subpart 1 — formula grants to local educational agencies"
---

# §7428. Payments

- (a) **In general—** Subject to subsections [(b)](#b) and [(c)](#c), the [Secretary](/usc/20/7801.md?p=46) shall pay to each [local educational agency](/usc/20/7801.md?p=30-A) that submits an application that is approved by the [Secretary](/usc/20/7801.md?p=46) under this subpart the amount determined under [section 7423 of this title](/usc/20/7423.md). The [Secretary](/usc/20/7801.md?p=46) shall notify the [local educational agency](/usc/20/7801.md?p=30-A) of the amount of the payment not later than June 1 of the year for which the [Secretary](/usc/20/7801.md?p=46) makes the payment.
- (b) **Payments taken into account by the State—** The [Secretary](/usc/20/7801.md?p=46) may not make a grant under this subpart to a [local educational agency](/usc/20/7801.md?p=30-A) for a fiscal year if, for such fiscal year, the [State](/usc/20/7171.md?p=b-6) in which the [local educational agency](/usc/20/7801.md?p=30-A) is located takes into consideration payments made under this chapter[^1] in determining the eligibility of the [local educational agency](/usc/20/7801.md?p=30-A) for [State](/usc/20/7171.md?p=b-6) aid, or the amount of the [State](/usc/20/7171.md?p=b-6) aid, with respect to the [free public education](/usc/20/7491.md?p=2) of children during such fiscal year or the preceding fiscal year.
- (c) **Reduction of payment for failure to maintain fiscal effort—** Each [local educational agency](/usc/20/7801.md?p=30-A) shall maintain fiscal effort in accordance with [section 7901 of this title](/usc/20/7901.md) or be subject to reduced payments under this subpart in accordance with such [section 7901 of this title](/usc/20/7901.md).
- (d) **Reallocations—** The [Secretary](/usc/20/7801.md?p=46) may reallocate, in a manner that the [Secretary](/usc/20/7801.md?p=46) determines will best carry out the purpose of this subpart, any amounts that—
  - (1) based on estimates made by [local educational agencies](/usc/20/7801.md?p=30-A) or other information, the [Secretary](/usc/20/7801.md?p=46) determines will not be needed by such agencies to carry out approved programs under this subpart; or
  - (2) otherwise become available for reallocation under this subpart.

## Footnotes

[^1]: So in original. Probably should be “this subpart”.

## Source credit

(Pub. L. 89–10, title VI, § 6118, formerly title VII, § 7118, as added Pub. L. 107–110, title VII, § 701, Jan. 8, 2002, 115 Stat. 1918; renumbered title VI, § 6118, and amended Pub. L. 114–95, title VI, §§ 6001(a), (b)(1), (8), 6002(j), Dec. 10, 2015, 129 Stat. 2046, 2047, 2054.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 7428, Pub. L. 89–10, title VII, § 7118, as added Pub. L. 103–382, title I, § 101, Oct. 20, 1994, 108 Stat. 3727, related to capacity building, prior to the general amendment of former subchapter VII of this chapter by Pub. L. 107–110.

### Amendments

2015—Subsec. (a). Pub. L. 114–95, § 6001(b)(8), made technical amendment to reference in original act which appears in text as reference to section 7423 of this title.

Subsec. (c). Pub. L. 114–95, § 6002(j), added subsec. (c) and struck out former subsec. (c) which related to reduction of payment for failure to maintain fiscal effort with possibility of temporary waiver.

### 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.