# § 7221e. Federal formula allocation during first year and for successive enrollment expansions
**(a)** **In general** For purposes of the allocation to schools by the States or their agencies of funds under part A of subchapter I, and any other Federal funds which the Secretary allocates to States on a formula basis, the Secretary and each State educational agency shall take such measures as are necessary to ensure that every charter school receives the Federal funding for which the charter school is eligible not later than 5 months after the charter school first opens, notwithstanding the fact that the identity and characteristics of the students enrolling in that charter school are not fully and completely determined until that charter school actually opens. The measures similarly shall ensure that every charter school expanding its enrollment in any subsequent year of operation receives the Federal funding for which the charter school is eligible not later than 5 months after such expansion.
**(b)** **Adjustment and late openings**
**(1)** **In general** The measures described in subsection (a) shall include provision for appropriate adjustments, through recovery of funds or reduction of payments for the succeeding year, in cases where payments made to a charter school on the basis of estimated or projected enrollment data exceed the amounts that the school is eligible to receive on the basis of actual or final enrollment data.
**(2)** **Rule** For charter schools that first open after November 1 of any academic year, the State, in accordance with guidance provided by the Secretary and applicable Federal statutes and regulations, shall ensure that such charter schools that are eligible for the funds described in subsection (a) for such academic year have a full and fair opportunity to receive those funds during the charter schools’ first year of operation.
**1** **New or significantly expanding charter schools** [^1]
For purposes of implementing the hold harmless protections in sections 6332(c) and 6337(g)(3) of this title for a newly opened or significantly expanded charter school under this part, a State educational agency shall calculate a hold-harmless base for the prior year that, as applicable, reflects the new or significantly expanded enrollment of the charter school.
See References in Text note below.
---
**Source Credit**: (Pub. L. 89–10, title IV, § 4306, formerly title V, § 5206, as added Pub. L. 107–110, title V, § 501, Jan. 8, 2002, 115 Stat. 1797; renumbered title IV, § 4306, and amended Pub. L. 114–95, title IV, §§ 4001(b)(2)(A), (B), (D)(iii), 4301(2), Dec. 10, 2015, 129 Stat. 1967, 2011.)
## Editorial Notes
### References in Text
, referred to in subsec. (c), was redesignated by , , .
### Amendments
2015—Subsec. (c). , added subsec. (c).
## Statutory Notes and Related Subsidiaries
### Effective Date of 2015 Amendment
Amendment by effective , except with respect to certain noncompetitive programs and competitive programs, see , set out as a note under .