20 U.S. Code § 7345 - Use of applicable funding
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(a) Alternative uses
(1) In general
Notwithstanding any other provision of law, an eligible local educational agency may use the applicable funding that the agency is eligible to receive from the State educational agency for a fiscal year to carry out local activities authorized under any of the following provisions:
(1) In general
A local educational agency shall be eligible to use the applicable funding in accordance with subsection (a) of this section if—
(I) the total number of students in average daily attendance at all of the schools served by the local educational agency is fewer than 600; or
The Secretary shall determine whether to waive the criteria described in paragraph (1)(A)(ii) based on a demonstration by the local educational agency, and concurrence by the State educational agency, that the local educational agency is located in an area defined as rural by a governmental agency of the State.
(c) Applicable funding defined
In this section, the term “applicable funding” means funds provided under any of the following provisions:
(2) Section 7114 of this title.
Each State educational agency that receives applicable funding for a fiscal year shall disburse the applicable funding to local educational agencies for alternative uses under this section for the fiscal year at the same time as the State educational agency disburses the applicable funding to local educational agencies that do not intend to use the applicable funding for such alternative uses for the fiscal year.