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SEC. 1422. PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.

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    (a) LOCAL SUBGRANTS- With funds made available under section 1402(b), the State educational agency shall award subgrants to local educational agencies with high numbers or percentages of children and youth residing in locally operated (including county operated) correctional facilities for children and youth (including facilities involved in community day programs).
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    (b) SPECIAL RULE- A local educational agency that serves a school operated by a correctional facility is not required to operate a program of support for children and youth returning from such school to a school that is not operated by a correctional agency but served by such local educational agency, if more than 30 percent of the children and youth attending the school operated by the correctional facility will reside outside the boundaries served by the local educational agency after leaving such facility.
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    (c) NOTIFICATION- A State educational agency shall notify local educational agencies within the State of the eligibility of such agencies to receive a subgrant under this subpart.
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    (d) TRANSITIONAL AND ACADEMIC SERVICES- Transitional and supportive programs operated in local educational agencies under this subpart shall be designed primarily to meet the transitional and academic needs of students returning to local educational agencies or alternative education programs from correctional facilities. Services to students at-risk of dropping out of school shall not have a negative impact on meeting the transitional and academic needs of the students returning from correctional facilities.