Section 2341c · Reallocation

In any academic year that a local educational agency or eligible institution does not expend all of the amounts it is allocated for such year under section 2341 of this title or section 2341a of this title, such local educational agency or eligible institution shall return any unexpended amounts to the State to be reallocated under section 2341 of this title or section 2341a of this title, as appropriate.

In any academic year in which amounts are returned to the State under sections1 2341 or 2341a of this title and the State is unable to reallocate such amounts according to such sections in time for such amounts to be expended in such academic year, the State shall retain such amounts to be distributed in combination with amounts provided under this subchapter for the following academic year.