FUNDING TRANSFERABILITY FOR STATE AND LOCAL EDUCATIONAL AGENCIES.

SEC. 5002. FUNDING TRANSFERABILITY FOR STATE AND LOCAL EDUCATIONAL AGENCIES. Part A of title V, as redesignated and amended by section 5001 of this Act, is further amended— (1) in the part heading, by striking “improving academic achievement” and inserting “funding transferability for state and local educational agencies”; (2) by striking “Subpart 2—Funding Transferability for State and Local Educational Agencies”; (3) [20 U.S.C. 7305] by striking “subpart” each place it appears and inserting “part”; (4) [20 U.S.C. 7305a] by amending section 5102 to read as follows: “SEC. 5102. PURPOSE “The purpose of this part is to allow States and local educational agencies the flexibility to target Federal funds to the programs and activities that most effectively address the unique needs of States and localities.” ; (5) [20 U.S.C. 7305b] in section 5103— (A) in subsection (a)— (i) in paragraph (1)— (I) in the matter preceding subparagraph (A), by striking “not more than 50 percent of the nonadministrative State funds” and inserting “all, or any lesser amount, of State funds”; and (II) by striking subparagraphs (A) through (D) and inserting the following: “(A) Part A of title II. “(B) Part A of title IV. “(C) Section 4202(c)(3).” ; and (ii) by striking paragraph (2) and inserting the following; “(2) Additional funds.—In accordance with this part, a State may transfer any funds allotted to the State under a provision listed in paragraph (1) for a fiscal year to its allotment under any other of the following provisions: “(A) Part A of title I. “(B) Part C of title I. “(C) Part D of title I. “(D) Part A of title III. “(E) Part B.” . (B) in subsection (b)— (i) in paragraph (1)— (I) in subparagraph (A), by striking “(except” and all that follows through “subparagraph (C))” and inserting “may transfer all, or any lesser amount, of the funds allocated to it”; (II) by striking subparagraphs (B) and (C) and inserting: “(B) Additional funds.—In accordance with this part, a local educational agency may transfer any funds allotted to such agency under a provision listed in paragraph (2) for a fiscal year to its allotment under any other of the following provisions: “(i) Part A of title I. “(ii) Part C of title I. “(iii) Part D of title I. “(iv) Part A of title III. “(v) Part B.” ; (ii) in paragraph (2)— (I) in the matter preceding subparagraph (A), by striking “subparagraph (A), (B), or (C)” and inserting “subparagraph (A) or (B)”; and (II) by striking subparagraphs (A) through (D) and inserting the following: “(A) Part A of title II. “(B) Part A of title IV.” ; (C) by striking subsection (c) and inserting the following: “(c) No Transfer of Certain Funding.—A State or local educational agency may not transfer under this part to any other program any funds allotted or allocated to it for the following provisions: “(1) Part A of title I. “(2) Part C of title I. “(3) Part D of title I. “(4) Part A of title III. “(5) Part B.” ; and (D) in subsection (e)(2), by striking “section 9501” and inserting “section 8501”.