Title V, Part A - Funding Transferability

(P.L. 114-95, Elementary and Secondary Education Act (ESEA), as amended by the Every Student Succeeds Act (ESSA), Section 5102 and Section 5103)

Title V, Part A – Funding Transferability for State and Local Educational Agencies (LEA) allows LEAs flexibility to target federal funds to programs that most effectively address their unique needs. Eligible LEAs may transfer all or any lesser amount of the funds allocated from:

• Title II, Part A – Supporting Effective Instruction
• Title IV, Part A – Student Support and Academic Enrichment 

To one or more of the following programs:

• Title I, Part A – Improving Basic Programs Operated by Local Education Agencies
• Title I, Part C – Education of Migratory Children
• Title I, Part D – Prevention and Intervention Programs for Children and Youth who are Neglected, Delinquent, or At-risk
• Title II, Part A – Supporting Effective Instruction
• Title III, Part A –Language Instruction for English Learners and Immigrant Students
• Title IV, Part A – Student Support and Academic Enrichment
• Title V, Part B – Rural Education Initiative

Transferred funds are subject to the rules and requirements applicable to the funds under the provision to which the funds are transferred. If LEA transfers funds from a program that provides for the participation of students, teachers, or other educational personnel from private nonprofit schools, LEA must conduct private school consultation in accordance with section 8501.

Frequently Asked Questions

Are funds physically transferred on the ESSA Consolidated Application for Funding?

Funds are not physically transferred on the SAS between fund codes or budget columns. Funds maintain their original fund code, class/object code, and other required accounting code structure following generally accepted accounting principles. Only the allowable uses of the funds are redirected to allowable alternative uses.

Is there a limit on the amount of funds an LEA may transfer?

No.  An LEA may transfer all or a portion of funds it receives under each of the allowable programs.

What are the responsibilities of an LEA for the provision of equitable services to private school children and teachers with respect to funds being transferred?

Excluding Title I, Part D and Title V, Part B, each program covered by the transferability authority is subject to the equitable services requirements under Title I or Title VIII, which may not be waived (Section 8401(c)(5)).  Before an LEA may transfer funds from a program subject to equitable services requirements, it must engage in timely and meaningful consultation with appropriate private school officials (Section 5103(e)(2)).  With respect to the transferred funds, the LEA must provide private school students and teachers equitable services under the program(s) to which, and from which, the funds are transferred, based on the total amount of funds available to each program after transfer.

May an LEA transfer only those funds that are to be used for equitable services to private school students or teachers?

No.  An LEA may not transfer funds to a program solely to provide equitable services for private school students or teachers.  An LEA, after consulting with appropriate private school officials, must provide equitable services to private school students and teachers based on the rules of each program and the total amount of funds available to each program after a transfer (Section 5103(e)).

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