The Title VI, Section 6123, of the Elementary and Secondary Education Act allows a Local Educational Agency (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 United Stated Department of Education Web page for ESEA, Title VI, Section 6123, Transferability of Funds ; or see ESEA, Title VI, Section 6211, Use of Applicable Funding .