The Title VI, Section 6123, of the ESEA Act allows an LEA (except an LEA identified for Program Improvement (PI) under Section 1116[c] or corrective action under Section 1116[c]) to transfer up to 50 percent of Title II funds, with the following restrictions:
- An LEA may not transfer funds allocated under Part A of Title I.
- A PI LEA in Years 1 and 2 may transfer no more than 30 percent of Title II, Part A funds to Title I, Part A.
- 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.
- 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 ; or see ESEA, Title VI, Section 6211, Use of Applicable Funding .