Local educational agencies (LEAs) are the eligible applicants for this program. If a State educational agency (SEA) has received State-Flex authority from the Secretary, its LEAs may not apply to the Department for Local-Flex.

By statute, the Secretary may enter into Local-Flex agreements with no more than three LEAs in a State. Therefore, any consortium that seeks a Local-Flex agreement may include no more than three LEAs. Furthermore, only LEAs that receive formula grant funds from their SEA under the Federal programs subject to consolidation may seek Local-Flex authority.

If an LEA has entered into a Local-Flex agreement with the Secretary, its SEA may may subsequently seek State-Flex authority only if that LEA agrees to have its Local-Flex agreement submitted as one of the proposed performance agreements in the SEA's State-Flex application.

The Department may enter into Local Flexibility Demonstration Agreements with up to 80 local educational agencies across the country.

Note: By statute, the District of Columbia, Puerto Rico, and the outlying areas are not eligible to apply as LEAs for Local-Flex.