The Every Student Succeed Act, 20 U.S.C. 7305b, allows LEAs to transfer funds from designated source grants into designated target grants, as detailed in the table below.
| Source Grants (Programs from which an LEA may transfer funds) | Target Grants (Programs into which an LEA may transfer funds) |
|
Title II, Part A Title IV, Part A |
Title I, Part A Title I, Part C Title I, Part D Title II, Part A Title III, Part A Title IV, Part A Title V, Part B |
Is there a limit to how much an LEA can transfer from its source grants?
No. An LEA may transfer up to 100 percent of the funds available in its source grants if it wishes.
Is there a limit on the number of times an LEA may transfer funds into, or from, an individual program during the fiscal year?
No. There are no statutory limitations on the number of times an LEA may transfer funds into, or from, an individual program during the fiscal year.
Can carryover funds from the previous year be transferred?
LEAs are permitted to transfer carryover funds. However, LEAs may only transfer public carryover for public use and private carryover for private use. An LEA may NOT transfer public carryover for private use, and vice versa (Non-Regulatory Guidance: Fiscal Changes and Equitable Services under the Elementary and Secondary Education Act of 1965 (ESEA), as amended by the Every Student Student Succeeds Act (ESSA) November 21, 2016).
Carryover funds that are transferred maintain the identity of their original fiscal year and must still be obligated within 27 months of their allocation (Guidance on the Transferability Authority, United States Department of Education, June 8, 2004).
Will transferring funds impact future funding allocations under the programs covered by the transferability authority?
No. An LEA’s transfer of funds does not affect its future grant allocations under the programs covered by the transferability authority. Transferred funds are not taken into consideration when the state allocates formula grant funds in subsequent years, and transferability has no effect on statutory hold-harmless provisions governing grant allocations (Guidance on the Transferability Authority, United States Department of Education, June 8, 2004).