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The U.S. Department of Education (ED) , emphasizing existing funding flexibility in Title V of the Elementary and Secondary Education Act (ESEA). Similar to other ESEA guidance published by ED over the last year, the letters do not establish any new requirements or flexibility but rather encourage States and local educational agencies (LEAs) to take advantage of flexibility permitted under existing law.鈥� 

鈥痳eminds grantees of the transferability authority under ESEA, which permits LEAs to shift funds from Title II-A and IV-A into Titles I-A, I-C, I-D, II-A, III-A, IV-A, or V-B. Once the Title II-A or IV-A funds are transferred to the LEA鈥檚 program of choice, the funds are subject to the requirements of that new program 鈥� not the program from which they were transferred. This flexibility does not require prior approval, but an LEA must notify their State at least 30 days before completing a transfer of funds and must update its plan or application to reflect the transfer. 

鈥痑ddresses the Alternative Fund Use Authority (AFUA) under the Rural Education Achievement Program. The AFUA allows LEAs eligible for the Small, Rural School Achievement program to use their ESEA Title II-A or IV-A funds for activities under several other ESEA programs. The key difference compared to transferability is that LEAs eligible for AFUA do not have to actually transfer their funds to the other programs. Those LEAs can simply use Title II-A and IV-A for allowable activities under other programs, such as Title I-A. SRSA-eligible LEAs are not required to seek approval to utilize the AFUA, but they must notify their State each year of their intention to use the authority. 

LEAs interested in taking advantage of these flexibilities are advised to reach out to their State education agency for more guidance on the notification process and the process to update applications or plans, as appropriate. Using these flexibilities can allow LEAs to direct their federal funding more strategically to best address their students鈥� needs.