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``SEC. 5306. DISTRIBUTION OF ASSISTANCE; LIMITATION ON COSTS.
- ``(a) Distribution of Assistance.--The Secretary shall ensure that, to the extent practicable, in approving grant applications under this part--
- ``(1) grants are equitably distributed on a geographic basis within each category set forth in section 5303(a);
- ``(2) the amount of a grant to a local educational agency or an educational partnership for a fiscal year is proportionate to the extent and severity of the local school dropout problem;
- ``(3) not less than 30 percent of the amount available for grants in each fiscal year is used for activities relating to school dropout prevention; and
- ``(4) not less than 30 percent of the amount available for grants in each fiscal year is used for activities relating to persuading school dropouts to return to school and assisting former school dropouts with specialized services once school dropouts return to school.
- ``(b) Administrative Costs.--Not more than five percent of any grant made under this part may be used for administrative costs.
SEC. 5305. AUTHORIZED ACTIVITIES.
SEC. 5307. REPORTS.