---
kind: "section"
citation: "20 U.S.C. § 7821"
title: "20"
title_heading: "Education"
number: "7821"
heading: "Consolidation of State administrative funds for elementary and secondary education programs"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/7821"
units:
  - "Chapter 70 — Strengthening and Improvement of Elementary and Secondary Schools"
  - "Subchapter VIII — General Provisions"
  - "Part B — Flexibility in the Use of Administrative and Other Funds"
---

# §7821. Consolidation of State administrative funds for elementary and secondary education programs

- (a) **Consolidation of administrative funds—**
  - (1) **In general—** A [State educational agency](/usc/20/7801.md?p=49) may consolidate the amounts specifically made available to it for [State](/usc/20/7171.md?p=b-6) administration under one or more of the programs under [paragraph (2)](#a-2) if the [State educational agency](/usc/20/7801.md?p=49) can demonstrate that the majority of its resources are derived from non-Federal sources.
  - (2) **Applicability—** This section applies to any program under this chapter under which funds are authorized to be used for administration, and such other programs as the [Secretary](/usc/20/7801.md?p=46) may designate.
- (b) **Use of funds—**
  - (1) **In general—** A [State educational agency](/usc/20/7801.md?p=49) shall use the amount available under this section for the administration of the programs included in the consolidation under [subsection (a)](#a).
  - (2) **Additional uses—** A [State educational agency](/usc/20/7801.md?p=49) may also use funds available under this section for administrative activities designed to enhance the effective and coordinated use of funds under programs included in the consolidation under [subsection (a)](#a), such as—
    - (A) the coordination of those programs with other Federal and non-Federal programs;
    - (B) the establishment and operation of peer-review mechanisms under this chapter;
    - (C) the administration of this subchapter;
    - (D) the dissemination of information regarding model programs and practices;
    - (E) technical assistance under any program under this chapter;
    - (F) [State](/usc/20/7171.md?p=b-6)-level activities designed to carry out this subchapter;
    - (G) training personnel engaged in audit and other monitoring activities;
    - (H) implementation of the Cooperative Audit Resolution and Oversight Initiative of the [Department](/usc/20/7801.md?p=13); and
    - (I) implementation of fiscal support teams that provide technical fiscal support assistance, which shall include evaluating fiscal, administrative, and staffing functions, and any other key operational function.
- (c) **Records—** A [State educational agency](/usc/20/7801.md?p=49) that consolidates administrative funds under this section shall not be required to keep separate records, by individual program, to account for costs relating to the administration of programs included in the consolidation under [subsection (a)](#a).
- (d) **Review—** To determine the effectiveness of [State](/usc/20/7171.md?p=b-6) administration under this section, the [Secretary](/usc/20/7801.md?p=46) may periodically review the performance of [State educational agencies](/usc/20/7801.md?p=49) in using consolidated administrative funds under this section and take such steps as the [Secretary](/usc/20/7801.md?p=46) finds appropriate to ensure the effectiveness of that administration.
- (e) **Unused administrative funds—** If a [State educational agency](/usc/20/7801.md?p=49) does not use all of the funds available to the agency under this section for administration, the agency may use those funds during the applicable period of availability as funds available under one or more programs included in the consolidation under [subsection (a)](#a).
- (f) **Consolidation of funds for standards and assessment development—** In order to develop challenging [State](/usc/20/7171.md?p=b-6) academic standards and assessments, a [State educational agency](/usc/20/7801.md?p=49) may consolidate the amounts described in [subsection (a)](#a) for those purposes under subchapter I.

## Source credit

(Pub. L. 89–10, title VIII, § 8201, formerly title IX, § 9201, as added Pub. L. 107–110, title IX, § 901, Jan. 8, 2002, 115 Stat. 1966; renumbered title VIII, § 8201, and amended Pub. L. 114–95, title VIII, §§ 8001(a)(2), 8005, Dec. 10, 2015, 129 Stat. 2088, 2089, 2100.)

## Notes

### Editorial Notes

### Amendments

2015—Subsec. (b)(2)(I). Pub. L. 114–95, § 8005, added subpar. (I).

### 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.