20 U.S. Code § 7172 - Allotments to States
From the funds appropriated under section 7176 of this title for any fiscal year, the Secretary shall reserve—
(1) such amount as may be necessary to make continuation awards to grant recipients under covered programs (under the terms of those grants);
(2) not more than 1 percent for national activities, which the Secretary may carry out directly or through grants and contracts, such as providing technical assistance to eligible entities carrying out programs under this part or conducting a national evaluation; and
(3) not more than 1 percent for payments to the outlying areas and the Bureau of Indian Affairs, to be allotted in accordance with their respective needs for assistance under this part, as determined by the Secretary, to enable the outlying areas and the Bureau to carry out the purpose of this part.
(b) State allotments
From the funds appropriated under section 7176 of this title for any fiscal year and remaining after the Secretary makes reservations under subsection (a) of this section, the Secretary shall allot to each State for the fiscal year an amount that bears the same relationship to the remainder as the amount the State received under subpart 2 of part A of subchapter I of this chapter for the preceding fiscal year bears to the amount all States received under that subpart for the preceding fiscal year, except that no State shall receive less than an amount equal to one-half of 1 percent of the total amount made available to all States under this subsection.
(c) State use of funds
(1) In general
Each State that receives an allotment under this part shall reserve not less than 95 percent of the amount allotted to such State under subsection (b) of this section, for each fiscal year for awards to eligible entities under section 7174 of this title.
(2) State administration
A State educational agency may use not more than 2 percent of the amount made available to the State under subsection (b) of this section for—
(B) establishing and implementing a peer review process for grant applications described in section 7174 (b) of this title (including consultation with the Governor and other State agencies responsible for administering youth development programs and adult learning activities); and
(C)  supervising the awarding of funds to eligible entities (in consultation with the Governor and other State agencies responsible for administering youth development programs and adult learning activities).
(3) State activities
A State educational agency may use not more than 3 percent of the amount made available to the State under subsection (b) of this section for the following activities:
(C) Comprehensive evaluation (directly, or through a grant or contract) of the effectiveness of programs and activities assisted under this part.
 Subparagraph designation editorially supplied.