A State educational agency that receives a grant under paragraph (2) or (3) of section 6561a(a) of this title may reserve not more than 5 percent of the grant funds for administrative costs and State activities related to school dropout prevention and reentry activities, of which not more than 2 percent of the grant funds may be used for administrative costs.

(Pub. L. 89–10, title I, § 1824, as added Pub. L. 107–110, title I, § 101, Jan. 8, 2002, 115 Stat. 1615.)