§7225a. Uses of funds
(a) Required use of funds
An eligible entity that receives a grant under this subpart shall use the grant funds to provide students selected to participate in the program with transportation services or the cost of transportation to and from the public elementary schools and secondary schools, including charter schools, that the students choose to attend under the program.
(b) Permissible uses of funds
An eligible entity that receives a grant under this subpart may use the grant funds for-
(1) planning or designing a program (for not more than 1 year);
(2) the cost of making tuition transfer payments to public elementary schools or secondary schools to which students transfer under the program;
(3) the cost of capacity-enhancing activities that enable high-demand public elementary schools or secondary schools to accommodate transfer requests under the program;
(4) the cost of carrying out public education campaigns to inform students and parents about the program; and
(5) other costs reasonably necessary to implement the program.
(c) Nonpermissible uses of funds
An eligible entity that receives a grant under this subpart may not use the grant funds for school construction.
(d) Administrative expenses
The eligible entity may use not more than 5 percent of the funds made available through the grant for any fiscal year for administrative expenses.
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