The Department will award CSR grants on a formula basis to SEAs that submit an application containing the statutorily required information. The statute requires the Secretary to distribute Title I, Part F funds to SEAs according to each State's proportion of funds received the previous fiscal year under section 1124 of Title I. The Secretary must distribute the FIE portion on the basis of each State's relative share of the school-aged population, ages 5-17 inclusive.

A State must provide each CSR school or consortium of small schools with a subgrant that is of sufficient size and scope to support the initial cost of implementing its comprehensive school reform program. This funding shall be provided annually for a three-year grant period, as long as the school or schools are making sufficient implementation progress. States may not fund any site below the $50,000 annual threshold. If a State has more than $50,000 of CSR funds available after making required continuation awards, the Department encourages the State to fund additional sites.

A State may also use remaining funds to supplement CSR activities at current sites and is not required to hold a formal competition in order to distribute these additional funds to existing grantees. For example, a State could supplement continuation awards to existing CSR sites for activities that further strengthen their comprehensive program, such as increased professional development or the implementation of programs that strengthen instruction. States could also use the funds for enhanced State-level activities, so long as the State does not retain more than five percent of a given year's CSR allotment.

For details and timing regarding each State's subgrant competition, districts or schools should get in touch with the Comprehensive School Reform contact.