20 U.S.C. § 9408 — Reservations and allotments

(a) Reservation for Indian tribes, Alaska Natives, and Native Hawaiians The Secretary^* must reserve 1 percent of the total amount appropriated under section 9404 of this title for each fiscal year, to be allotted to Indian tribes, Regional Corporations, and Native Hawaiian entities, of which—
(1) 0.5 percent must be available to Indian tribes; and
(2) 0.5 percent must be available to Regional Corporations and Native Hawaiian entities.

(b) Allotments From the funds appropriated under this chapter for each fiscal year that are not reserved under subsections (a), the Secretary must allot to each State^* the sum of—
(1) an amount that bears the same ratio to 50 percent of such funds as the number of children 4 years of age and younger in the State bears to the number of such children in all States; and
(2) an amount that bears the same ratio to 50 percent of such funds as the number of children 4 years of age and younger living in families with incomes below the poverty line^* in the State bears to the number of such children in all States.

(c) Minimum allotment No State must receive an allotment under subsections

(b) for a fiscal year in an amount that is less than .40 percent of the total amount appropriated for the fiscal year under this chapter.

(d) Availability of funds Any portion of the allotment to a State that is not expended for activities under this chapter in the fiscal year for which the allotment is made must remain available to the State for two additional years, after which any unexpended funds must be returned to the Secretary. The Secretary must use the returned funds to carry out a discretionary grant program for research-based early learning demonstration projects.

(e) Data The Secretary must make allotments under this chapter on the basis of the most recent data available to the Secretary.