,,ii  #aad? ,,congress  #a/ ,session    
,s4 #dae  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,febru>y #i1 #bjae,mr4 
,udall 7= himself & ,mr4 ,he9ri*7       
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,heal?1 ,education1 ,labor1 & ,p5sions  
,a ,,bill  ,to am5d ! ,individuals )    
,disabilities ,education ,act 9 ord] to 
limit ! p5alties to a ,/ate t does n    
meet its ma9t5ance ( ef=t level ( fund+ 
to a "o-"t p5alty1 & = o!r purposes4    
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,,idea ,,moe ,adju/m5t ,act4  #b4     
,,idea p5alty limitation  7a7 ,9 g5]al  
,section #faa7;d7 ( ! ,individuals )    
,disabilities ,education ,act 7#bj      
,u4,s4,c4 #adaa7;d77 is am5d$ by add+ at
 ! end ! foll[+3  7#e7 ,special rule    
reg>d+ p5alties  7,a7 ,di/ribution (    
funds ,9 any case :]e a ,/ate's         
allocation "u ?is subsection is r$uc$   
pursuant to section #fab7;a77#ah77;,b71 
! ,secret>y %all di/ribute to all o!r   
,/ates t 7 n subject to a r$uction 9    

allocation "u su* section1 ! am\nt by   
:i* any ,/ate's allocation "u ?is       
subsection 0 r$uc$ "u su* section1 9    
accordance ) subclauses 7,,ii7 & 7,,iii7
 ( p>agraph 7#c77;,a77i7 & )\t reg>d to 
p>agraphs 7,a77i77,i7 & 7,b7 ( p>agraph 
7#c74  7,b7 ,use ( funds by ,/ates ,ea* 
,/ate t receives additional funds "u    
subp>agraph 7,a7 %all allocate su* funds
 to local educational ag5cies 9         
accordance ) subsection 7f74  7,c7 ,no  
consid]ation = future ye>s allocation ,9
 calculat+ ! am\nts = allocations "u ?is
 subsection = fiscal ye> #bjac & all    
subsequ5t ye>s1 ! ,secret>y1 :5 det]m9+ 
! am\nt a ,/ate receiv$ "u ?is          
subsection = a prec$+ fiscal ye>1 %all n
 consid]--  7i7 any am\nt by :i* a      
,/ate's allocation = fiscal ye> #bjab or
 any subsequ5t ye> is r$uc$ pursuant to 
section #fab7;a77#ah72 &  7ii7 any am\nt
 by :i* a ,/ate's allocation increas$1  
pursuant to subp>agraph 7,a71 z a result
 ( a ,/ate's r$uction 9 allocation =    
fiscal ye> #bjab or any subsequ5t ye>4  

4  7b7 ,application ( r$uction ov]      
multi-,ye> p]iod ,subp>agraph 7,b7 (    
section #fab7;a77#ah7 ( ! ,individuals )
 ,disabilities ,education ,act 7#bj     
,u4,s4,c4 #adab7;a77#ah77;,b77 is am5d$ 
to read z foll[s3  7,b7 ,r$uction (     
funds = failure to ma9ta9 support ,9 any
 case :]e a ,/ate fails to comply ) !   
requirem5t ( subp>agraph 7,a7 = a fiscal
 ye>1 ! ,/ate %all be subject to a      
r$uction ( ! ,/ate's allocation ( funds 
"u section #faa by ! am\nt by :i* !     
,/ate fails to meet ! requirem5t4 ,!    
,secret>y %all c>ry out su* r$uction1 9 
accordance ) section #faa7;d77#e71 by-- 
7i7 r$uc+ ! ,/ate's allocation "u       
section #faa = ! foll[+ fiscal ye> by ! 
entire am\nt ( ! r$uction2 or  7ii7     
apply+ ! r$uction to ! ,/ate's          
allocations "u su* section ov] a        
multi-ye> p]iod ( n m ?an #e consecutive
 fiscal ye>s1 until ! entire am\nt ( !  
r$uction has be5 appli$4  4