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SEC. 1602. PROGRAM AUTHORIZATION.

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    (a) PROGRAM AUTHORIZED-
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;

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    • (1) IN GENERAL- The Secretary is authorized to award grants to State educational agencies, from allotments under paragraph (2), to enable the State educational agencies to award subgrants to local educational agencies to carry out the purpose described in section 1601.
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;

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    • (2) ALLOTMENTS-
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;

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      • (A) RESERVATIONS- Of the amount appropriated under section 1002(f), the Secretary may reserve —
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;

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        • (i) not more than 1 percent for each fiscal year to provide assistance to schools supported by the Bureau of Indian Affairs and in the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands according to their respective needs for assistance under this part;
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;

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        • (ii) not more than 1 percent for each fiscal year to conduct national evaluation activities described in section 1607; and
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;

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        • (iii) not more than 3 percent of the amount appropriated in fiscal year 2002 to carry out this part, for quality initiatives described in section 1608.
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;

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      • (B) IN GENERAL- Of the amount appropriated under section 1002(f) that remains after making the reservation under subparagraph (A) for a fiscal year, the Secretary shall allot to each State for the fiscal year an amount that bears the same ratio to the remainder for that fiscal year as the amount made available under section 1124 to the State for the preceding fiscal year bears to the total amount made available under section 1124 to all States for that year.
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;

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      • (C) REALLOTMENT- If a State does not apply for funds under this section, the Secretary shall reallot such funds to other States that do apply in proportion to the amount allotted to such other States under subparagraph (B).