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SEC. 1822. PROGRAM AUTHORIZED.

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(a) GRANTS TO STATE EDUCATIONAL AGENCIES AND LOCAL EDUCATIONAL AGENCIES-

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(1) AMOUNT LESS THAN $75,000,000-

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(A) IN GENERAL- If the amount appropriated under section 1803 for a fiscal year equals or is less than $75,000,000, then the Secretary shall use such amount to award grants, on a competitive basis, to —

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(i) State educational agencies to support activities —

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(I) in schools that —

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(aa) serve students in grades 6 through 12; and

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(bb) have annual school dropout rates that are above the State average annual school dropout rate; or

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(II) in the middle schools that feed students into the schools described in subclause (I); or

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(ii) local educational agencies that operate —

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(I) schools that —

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(aa) serve students in grades 6 through 12; and

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(bb) have annual school dropout rates that are above the State average annual school dropout rate; or

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(II) middle schools that feed students into the schools described in subclause (I).

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(B) USE OF GRANT FUNDS- Grant funds awarded under this paragraph shall be used to fund effective, sustainable, and coordinated school dropout prevention and reentry programs that may include the activities described in subsection (b)(2), in —

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(i) schools serving students in grades 6 through 12 that have annual school dropout rates that are above the State average annual school dropout rate; or

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(ii) the middle schools that feed students into the schools described in clause (i).

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(2) AMOUNT LESS THAN $250,000,000 BUT MORE THAN $75,000,000- If the amount appropriated under section 1803 for a fiscal year is less than $250,000,000 but more than $75,000,000, then the Secretary shall use such amount to award grants, on a competitive basis, to State educational agencies to enable the State educational agencies to award subgrants under subsection (b).

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(3) AMOUNT EQUAL TO OR EXCEEDS $250,000,000- If the amount appropriated under section 1803 for a fiscal year equals or exceeds $250,000,000, then the Secretary shall use such amount to award a grant to each State educational agency in an amount that bears the same relation to such appropriated amount as the amount the State educational agency received under part A for the preceding fiscal year bears to the amount received by all State educational agencies under such part for the preceding fiscal year, to enable the State educational agency to award subgrants under subsection (b).

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(b) SUBGRANTS TO LOCAL EDUCATIONAL AGENCIES-

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(1) IN GENERAL- From amounts made available to a State educational agency under paragraph (2) or (3) of subsection (a), the State educational agency shall award subgrants, on a competitive basis, to local educational agencies that operate public schools that serve students in grades 6 through 12 and that have annual school dropout rates that are above the State average annual school dropout rate, to enable those schools, or the middle schools that feed students into those schools, to implement effective, sustainable, and coordinated school dropout prevention and reentry programs that involve activities such as —

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(A) professional development;

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(C) release time for professional staff to obtain professional development;

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(D) planning and research;

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(E) remedial education;

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(F) reduction in pupil-to-teacher ratios;

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(G) efforts to meet State student academic achievement standards;

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(H) counseling and mentoring for at-risk students;

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(I) implementing comprehensive school reform models, such as creating smaller learning communities; and

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(J) school reentry activities.

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(2) AMOUNT- Subject to paragraph (3), a subgrant under this subpart shall be awarded —

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(A) in the first year that a local educational agency receives a subgrant payment under this subpart, in an amount that is based on factors such as —

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(i) the size of schools operated by the local educational agency;

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(ii) costs of the model or set of prevention and reentry strategies being implemented; and

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(iii) local cost factors such as poverty rates;

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(B) in the second year, in an amount that is not less than 75 percent of the amount the local educational agency received under this subpart in the first such year;

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(C) in the third year, in an amount that is not less than 50 percent of the amount the local educational agency received under this subpart in the first such year; and

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(D) in each succeeding year, in an amount that is not less than 30 percent of the amount the local educational agency received under this subpart in the first year.

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(3) DURATION- A subgrant under this subpart shall be awarded for a period of 3 years, and may be continued for a period of 2 additional years if the State educational agency determines, based on the annual reports described in section 1830(a), that significant progress has been made in lowering the annual school dropout rate for secondary schools participating in the program assisted under this subpart.