Elementary and Secondary Education Act of 1965: Allocation Methods. CRS Report for Congress

The Elementary Secondary Education Act (ESEA) of 1965 authorizes 39 programs that are administered by the United States Department of Education and account for $8.6 billion in FY 1993. ESEA funds are distributed through three allocation methods: formulas, discretionary grants, and specifically designated recipients. Almost half of ESEA programs distribute funds through discretionary grants, but most ESEA funds are distributed through allocation formulas. In FY 1993, 93 percent of all ESEA funds are awarded in 39 funded programs, 14 of which require allocation formulas. These formulas determine the proper recipient level of government, population groups, cost factors, minimum grant provisions, and special provisions for the Outlying Areas (Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and Palau). Of the 39 funded programs, 19 allocate funds through competitive awards. This method is most often used for programs with smaller funding levels such as demonstration programs, technical assistance, or research activities that are unlikely to need funding in every state or school district. Only 6 of 39 ESEA programs use funding where the specific recipient is identified. This method is used most often to support a specific study or evaluation, or a particular private organization or activity. (JPT)