Nonregulatory guidance for programs with advance appropriations in FY 2000

Nonregulatory Guidance Pertaining to Programs with Advance Appropriations in FY 2000

Section I: General

Q1. What does it mean when Congress "advances" a portion of a program's appropriation?

A1. In the FY 2000 appropriations for a number of Federal education programs, Congress appropriated a sum of funds but made only a portion available for obligation on July 1, 2000. The remaining funds do not become available for obligation until October 1, 2000.

Advancing a portion of a program's appropriation in this manner allowed Congress to appropriate more money than otherwise would have been permitted under the annual budget caps designed to reduce Federal discretionary spending, because the advance appropriation (i.e., the amount that becomes available October 1) will count against the FY 2001 cap rather than the FY 2000 cap.

Q2. Which programs have advance appropriations in FY 2000?

A2. In the FY 2000 appropriations act, Congress passed an advance appropriation for the following programs:


Amount available July 1

Amount available October 1

Education of the Disadvantaged (ESEA, Title I, Part A)



Safe and Drug–Free Schools and Communities — SEA and Governor Grants (ESEA, Title IV)



Class Size Reduction



Innovative Education Program Strategies– –State Grants (ESEA, Title VI)



Reading Excellence Act



Vocational Education State Basic Grants



Individuals with Disabilities Education Act—Grants to States (Part B, section 611)



Q3. Because a portion of funds is not available until October 1, will a State receive two grant awards for FY 2000?

A3. Yes. For each affected program, the Department has issued, to States meeting the necessary legal requirements, an initial grant award obligating the State's portion of funds the appropriations act made available on July 1. The Department will issue supplemental awards for each affected program at the beginning of October obligating the remaining funds.

Q4. How does a State make grant awards to its subgrantees?

A4. Prior to October 1, a State may not award more funds than the Department has made available to the State from the "July 1 funds." Subject to this condition, however, a State has several options for awarding "July 1 funds" to its subgrantees. In most circumstances, a State, like the Department, would calculate each subgrantee's allocation and award a percentage of that allocation commensurate with the amount of "July 1 funds" available to the State. The State would then issue a supplemental grant after October 1 awarding the remaining funds. However, if the State knows that certain subgrantees will need more funds prior to October 1 than their initial award would provide, a State may award those subgrantees a larger percentage of the "July 1 funds," provided that doing so does not disadvantage the remaining subgrantees and that all subgrantees receive their correct share of the total funds appropriated in the FY 2000 appropriations act after the "October 1 funds" are awarded. There may also be circumstances in which a State would make full grant awards after October 1, 2000. For Title I Concentration Grants, no funds will be available for obligation until after October 1, 2000.

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Last Modified: 09/21/2006