The Title VI, Section 6123, of the ESEA Act allows a LEA (except a LEA identified for Program Improvement (PI) under Section 1116[c] or corrective action under Section 1116[c]) to transfer up to 50 percent of the funds of any of the programs listed, with the following restrictions:
- An LEA may not transfer funds allocated under Part A of Title I to any other program.
- A Program Improvement (PI) LEA in Years 1 and 2 may transfer no more than 30 percent of the funds of any program listed to its allocation for school improvement under ESEA Section 1003 or to any other allocation listed in the statutes if the transferred funds are used only for LEA improvement activities consistent with ESEA Section 1116(c).
- A single school district (SSD) or a direct-funded charter (DFC) school whose only school is in PI and operating as a targeted assistance school, is restricted to the 30 percent limit. If the SSD or DFC is operating as a schoolwide program school, this restriction does not apply.
- A PI LEA in Year 3 is prohibited from transferring any funds under the transferability authority.
- An LEA may need to modify its LEA Plan to address such transfers and submit a copy of the plan to the CDE within 30 days of the transfer.
- Consultation with private schools is required under ESEA Section 9501, if such a transfer affects students or educational personnel from private schools.
For more information on federal transferability rules, see the ED Web page for ESEA, Title VI, Section 6123, Transferability of Funds (Outside Source); or see ESEA, Title VI, Section 6211, Use of Applicable Funding (Outside Source).