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SEC. 1124A. CONCENTRATION GRANTS TO LOCAL EDUCATIONAL AGENCIES.

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(a) ELIGIBILITY FOR AND AMOUNT OF GRANTS-

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(1) IN GENERAL- (A) Except as otherwise provided in this paragraph, each local educational agency which is eligible for a grant under section 1124 for any fiscal year is eligible for an additional grant under this section for that fiscal year if the number of children counted under section 1124(c) in the agency exceeds either —

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(i) 6,500; or

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(ii) 15 percent of the total number of children aged 5 through 17 in the agency.

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(B) Notwithstanding section 1122, no State shall receive less than the lesser of —

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(i) 0.25 percent of the total amount allocated to States under this section for fiscal year 2001, plus 0.35 percent of the total amount allocated to States under this section in excess of the amount allocated for fiscal year 2001; or

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(ii) the average of —

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(I) the amount calculated under clause (i); and

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(II) the greater of —

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(aa) $340,000; or

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(bb) the number of children in such State counted for purposes of this section in that fiscal year multiplied by 150 percent of the national average per-pupil payment made with funds available under this section for that year.

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(2) DETERMINATION- For each county or local educational agency eligible to receive an additional grant under this section for any fiscal year, the Secretary shall determine the product of —

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(A) the number of children counted under section 1124(c) for that fiscal year; and

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(B) the amount in section 1124(a)(1)(B) for each State except the Commonwealth of Puerto Rico, and the amount in section 1124(a)(4) for the Commonwealth of Puerto Rico.

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(3) AMOUNT- The amount of the additional grant for which an eligible local educational agency or county is eligible under this section for any fiscal year shall be an amount which bears the same ratio to the amount available to carry out this section for that fiscal year as the product determined under paragraph (2) for such local educational agency for that fiscal year bears to the sum of such products for all local educational agencies in the United States for that fiscal year.

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(4) LOCAL ALLOCATIONS- (A) Grant amounts under this section shall be determined in accordance with section 1124(a)(2), (3), and (4).

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(B) For any fiscal year for which the Secretary allocates funds under this section on the basis of counties, a State may reserve not more than 2 percent of its allocation under this section to make grants to local educational agencies that meet the criteria of paragraph (1)(A)(i) or (ii) and are in ineligible counties that do not meet these criteria.

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(b) SMALL STATES- In any State for which on the date of enactment of the No Child Left Behind Act of 2001 the number of children counted under section 1124(c) is less than 0.25 percent of the number of those children counted for all States, the State educational agency shall allocate funds under this section among the local educational agencies in the State either —

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(1) in accordance with paragraphs (2) and (4) of subsection (a); or

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(2) based on their respective concentrations and numbers of children counted under section 1124(c), except that only those local educational agencies with concentrations or numbers of children counted under section 1124(c) that exceed the statewide average percentage of such children or the statewide average number of such children shall receive any funds on the basis of this paragraph.