20 U.S.C. § 7705

1. (a)A local educational agency desiring to receive a payment under section 7702 or 7703 of this title shall—
   1. (1)submit an application for such payment to the Secretary; and
   2. (2)provide a copy of such application to the State educational agency.
2. (b)Each such application shall be submitted in such form and manner as the Secretary may require, including—
   1. (1)information to determine the eligibility of the local educational agency for a payment and the amount of such payment; and
   2. (2)where applicable, an assurance that such agency is in compliance with section 7704 of this title (relating to children residing on Indian lands).
3. (c)The Secretary shall establish deadlines for the submission of applications under this section.
4. (d)
   1. (1)The Secretary shall approve an application submitted under this section that—
      1. (A)except as provided in paragraph (2), is filed by the deadline established under subsection (c); and
      2. (B)otherwise meets the requirements of this subchapter.
   2. (2)The Secretary shall approve an application filed not more than 60 days after a deadline established under subsection (c), or not more than 60 days after the date on which the Secretary sends written notice to the local educational agency pursuant to paragraph (3)(A), as the case may be, that otherwise meets the requirements of this subchapter, except that, notwithstanding section 7703(e) of this title, the Secretary shall reduce the payment based on such late application by 10 percent of the amount that would otherwise be paid.
   3. (3)
      1. (A)The Secretary shall, as soon as practicable after the deadline established under subsection (c), provide to each local educational agency that applied for a payment under section 7702 or 7703 of this title for the prior fiscal year, and with respect to which the Secretary has not received an application for a payment under either such section (as the case may be) for the fiscal year in question, written notice of the failure to comply with the deadline and instruction to ensure that the application is filed not later than 60 days after the date on which the Secretary sends the notice.
      2. (B)The Secretary shall not accept or approve any application of a local educational agency that is filed more than 60 days after the date on which the Secretary sends written notice to the local educational agency pursuant to subparagraph (A).
   4. (4)Notwithstanding any other provision of law, a State educational agency that had been accepted as an applicant for funds under section 3 of the Act of September 30, 1950 (Public Law 874, 81st Congress) (as such section was in effect on the day preceding October 20, 1994) in fiscal year 1994 shall be permitted to continue as an applicant under the same conditions by which such agency made application during such fiscal year only if such State educational agency distributes all funds received for the students for which application is being made by such State educational agency to the local educational agencies providing educational services to such students.