PUBLIC LAW 107-110-^AN. 8, 2002 115 STAT. 1537 educational agency agrees to expend at least 80 percent of the amount of the funds provided under the grant for the purpose of making, in accordance with subsection (c), competitive subgrants to eligible local educational agencies. "(5) REALLOTMENT.— If a State educational agency described in paragraph (2) does not apply for an allotment under this section for any fiscal year, or if the State educational agency's application is not approved, the Secretary shall reallot such amount to the remaining State educational agencies in accordance with paragraph (3). "(6) DEFINITION OF STATE.— For purposes of this subsection, the term 'State' means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico. "(c) SUBGRANTS TO LOCAL EDUCATIONAL AGENCIES. — "(1) AUTHORIZATION TO MAKE SUBGRANTS.— In accordance with paragraph (2), a State educational agency that receives a grant under this section shall make competitive subgrants to eligible local educational agencies. "(2) ALLOCATION.— "(A) MINIMUM SUBGRANT AMOUNT.—In making subgrants under paragraph (1), a State educational agency shall allocate to each eligible local educational agency that receives such a subgrant, at a minimum, an amount that bears the same relation to the funds made available under subsection (b)(4) as the amount the eligible local educational agency received under part A for the preceding fiscal year bears to the amount all the local educational agencies in the State received under part A for the preceding fiscal year. "(B) PRIORITY.— In making subgrants under paragraph (1), a State educational agency shall give priority to eligible local educational agencies in which at least— "(i) 15 percent of the children served by the eligible local educational agency are from families with incomes below the poverty line; or "(ii) 6,500 children served by the eligible local educational agency are from families with incomes below the poverty line. "(3) NOTICE.— ^A State educational agency receiving a grant under this section shall provide notice to all eligible local educational agencies in the State of the availability of competitive subgrants under this subsection and of the requirements for applying for the subgrants. "(4) LOCAL APPLICATION. — To be eligible to receive a subgrant under this subsection, an eligible local educational agency shall submit an application to the State educational agency at such time, in such manner, and containing such information as the State educational agency may reasonably require. "(5) STATE REQUIREMENT.— In distributing subgrant funds to eligible local educational agencies under this subsection, a State educational agency shall— "(A) provide funds in sufficient size and scope to enable the eligible local educational agencies to improve reading instruction; and
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