Under No Child Left Behind, States and districts are able to transfer a portion of the funds that they receive under certain Federal programs to other Federal programs that better address their unique needs. These funds can then be used to support locally determined initiatives, including increasing teacher pay, reducing class size, and bolstering professional development and training for teachers.

The No Child Left Behind Act establishes this new option for States and districts to better address the needs of their students and teachers. Under this provisions:

• All 50 States may transfer up to 50 percent of their non-administrative State-level funds among certain programs, such as Teacher and Principal Training and Recruitment, Enhancing Education Through Technology, Safe and Drug-Free Schools and Communities (Governor’s funds), Safe and Drug-Free Schools and Communities, and 21^st Century Community Learning Centers.

• Every school district may transfer up to 50 percent of their formula allocations among certain programs, such as Teacher and Principal Training and Recruitment, Enhancing Education Through Technology, Safe and Drug-Free Schools and Communities, and 21^st Century Community Learning Centers.

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