``SEC. 1125. TARGETED GRANTS TO LOCAL EDUCATIONAL AGENCIES.

``(a) Eligibility of Local Educational Agencies.--A local educational agency in a State is eligible to receive a targeted grant under this section for any fiscal year if the number of children in the local educational agency counted under subsection 1124(c), before application of the weighting factor described in subsection (c), is at least 10, and if the number of children counted for grants under section 1124 is at least 5 percent of the total population aged 5 to 17 years, inclusive, in the local educational agency. Funds made available as a result of applying this subsection shall be reallocated by the State educational agency to other eligible local educational agencies in the State in proportion to the distribution of other funds under this section.
``(b) Grants for Local Educational Agencies, the District of Columbia, and Puerto Rico.--
``(1) In general.--The amount of the grant that a local educational agency in a State or that the District of Columbia is eligible to receive under this section for any fiscal year shall be the product of--
``(A) the weighted child count determined under subsection (c); and
``(B) the amount in the second sentence of subparagraph 1124(a)(1)(A).
``(2) Puerto Rico.--For each fiscal year, the amount of the grant for which the Commonwealth of Puerto Rico is eligible under this section shall be equal to the number of children counted under subsection (c) for Puerto Rico, multiplied by the amount determined in subparagraph 1124(a)(3).
``(c) Weighted Child Count.--
``(1) Fiscal years 1966091998.--
``(A) In general.--The weighted child count used to determine a county's allocation under this section is the larger of the two amounts determined under clause (i) or (ii), as follows:
``(i) By percentage of children.--This amount is determined by adding--
``(I) the number of children determined under section 1124(c) for that county constituting up to 12.20 percent, inclusive, of the county's total population aged 5 to 17, inclusive, multiplied by 1.0;
``(II) the number of such children constituting more than 12.20 percent, but not more than 17.70 percent, of such population, multiplied by 1.75;
``(III) the number of such children constituting more than 17.70 percent, but not more than 22.80 percent, of such population, multiplied by 2.5;
``(IV) the number of such children constituting more than 22.80 percent, but not more than 29.70 percent, of such population, multiplied by 3.25; and
``(V) the number of such children constituting more than 29.70 percent of such population, multiplied by 4.0.
``(ii) By number of children.--This amount is determined by adding--
``(I) the number of children determined under section 1124(c) constituting up to 1,917, inclusive, of the county's total population aged 5 to 17, inclusive, multiplied by 1.0;
``(II) the number of such children between 1,918 and 5,938, inclusive, in such population, multiplied by 1.5;
``(III) the number of such children between 5,939 and 20,199, inclusive, in such population, multiplied by 2.0;
``(IV) the number of such children between 20,200 and 77,999, inclusive, in such population, multiplied by 2.5; and
``(V) the number of such children in excess of 77,999 in such population, multiplied by 3.0.
``(B) Puerto Rico.--Notwithstanding subparagraph (A), the weighting factor for Puerto Rico under this paragraph shall not be greater than the total number of children counted under subsection 1124(c) multiplied by 1.72.
``(2) Fiscal years after 1999.--
``(A) In general.--For each fiscal year beginning with fiscal year 1999 for which the Secretary uses local educational agency data, the weighted child count used to determine a local educational agency's grant under this section is the larger of the two amounts determined under clauses (i) and (ii), as follows:
``(i) By percentage of children.--This amount is determined by adding--
``(I) the number of children determined under section 1124(c) for that local educational agency constituting up to 14.265 percent, inclusive, of the agency's total population aged 5 to 17, inclusive, multiplied by 1.0;
``(II) the number of such children constituting more than 14.265 percent, but not more than 21.553 percent, of such population, multiplied by 1.75;
``(III) the number of such children constituting more than 21.553 percent, but not more than 29.223 percent, of such population, multiplied by 2.5;
``(IV) the number of such children constituting more than 29.223 percent, but not more than 36.538 percent, of such population, multiplied by 3.25; and
``(V) the number of such children constituting more than 36.538 percent of such population, multiplied by 4.0.
``(ii) By number of children.--This amount is determined by adding--
``(I) the number of children determined under section 1124(c) constituting up to 575, inclusive, of the agency's total population aged 5 to 17, inclusive, multiplied by 1.0;
``(II) the number of such children between 576 and 1,870, inclusive, in such population, multiplied by 1.5;
``(III) the number of such children between 1,871 and 6,910, inclusive, in such population, multiplied by 2.0;
``(IV) the number of such children between 6,911 and 42,000, inclusive, in such population, multiplied by 2.5; and
``(V) the number of such children in excess of 42,000 in such population, multiplied by 3.0.
``(B) Puerto Rico.--Notwithstanding subparagraph (A), the weighting factor for Puerto Rico under this paragraph shall not be greater than the total number of children counted under section 1124(c) multiplied by 1.72.
``(d) Local Educational Agency Allocations.--For fiscal years 1995 through 1998, grants shall be calculated by the Secretary on the basis of the number of children counted under section 1124 for counties, and State educational agencies shall suballocate county amounts to local educational agencies, in accordance with regulations published by the Secretary. In any State in which a large number of local educational agencies overlap county boundaries, the State educational agency may apply to the Secretary for authority during any particular fiscal year to make the allocations under this part (other than section 1124A) directly to local educational agencies without regard to the counties. If the Secretary approves an application of a State educational agency for a particular year under this subparagraph, the State educational agency shall provide assurances that--
``(1) such allocations will be made using precisely the same factors for determining a grant as are used under this part;
``(2) such allocations will be made using alternative data approved by the Secretary that the State determines best reflects the distribution of children in poor families and is adjusted to be equivalent in proportion to the number of children determined in accordance with section 1124(c); or
``(3) such allocations will be made using data that the State educational agency submits to the Secretary for approval that more accurately target poverty.
In addition, the State educational agency shall provide assurances that a procedure will be established through which local educational agencies dissatisfied with the determinations made by the State educational agency may appeal directly to the Secretary for a final determination. For fiscal years beginning in 1999, for each local educational agency serving an area with a total population of at least 20,000 persons, the grant under this section shall be the amount determined by the Secretary. For local educational agencies serving areas with total populations of fewer than 20,000 persons, the State educational agency may either (1) distribute to such local educational agencies grants under this section equal to the amounts determined by the Secretary; or (2) use an alternative method, approved by the Secretary, to distribute the share of the State's total grants under this section that is based on local educational agencies with total populations of fewer than 20,000 persons. Such an alternative method of distributing grants under this section among a State's local educational agencies serving areas with total populations of fewer than 20,000 persons shall be based upon population data that the State educational agency determines best reflects the current distribution of children in poor families among the State's local educational agencies serving areas with total populations of fewer than 20,000 persons. If a local educational agency serving an area with total populations of less than 20,000 persons is dissatisfied with the determination of its grant by the State educational agency, then the local educational agency may appeal this determination to the Secretary. The Secretary shall respond to this appeal within 45 days of receipt.
``(e) State Minimum.--Notwithstanding any other provision of this section or subsection (b)(1) or (d) of section 1122, from the total amount available for any fiscal year to carry out this section, each State shall be allotted at least the lesser of--
``(1) 0.25 percent of total appropriations; or
``(2) the average of--
``(A) one-quarter of 1 percent of the total amount available to carry out this section; and
``(B) 150 percent of the national average grant under this section per child described in section 1124(c), without application of a weighting factor, multiplied by the State's total number of children described in section 1124(c), without application of a weighting factor.

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SEC. 1124A. CONCENTRATION GRANTS TO LOCAL EDUCATIONAL AGENCIES Table of Contents SEC. 1125A. EDUCATION FINANCE INCENTIVE PROGRAM.