S. 653 – Career and Technical Education State Flexibility Act

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Updated April 15, 2026 at 1:44 PM UTC

The Career and Technical Education State Flexibility Act changes the federal Perkins Act’s “maintenance of effort” rule that ties a state’s funding to its prior spending on career and technical education. It lowers the reporting burden by giving states a two‑year grace period after the law takes effect and lets them reset their baseline spending. The bill also clarifies which costs are excluded from the calculation and adds a proportional penalty for non‑compliance, with a waiver option for extraordinary circumstances.

Key Provisions

States must spend at least 80% of the fiscal effort per student (or total expenditures) they had in the two fiscal years before the current year to receive their full Perkins funding.
The maintenance‑of‑effort requirement does not apply for the first two fiscal years after the Act’s enactment, allowing states to establish a new spending baseline.
Excluded from the spending calculation are competitive or incentive‑based programs, capital expenditures, special one‑time project costs, and pilot program costs.
If a state falls below the 80% threshold, its funding is reduced proportionally to the shortfall, using the measure most favorable to the state.
The Secretary of Education may waive the reduction if the state faces exceptional or uncontrollable circumstances.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Health, Education, Labor, and Pensions Committee

March 15, 2017

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SenateIntro Referral

Introduced in Senate

March 15, 2017

SenateIntro Referral

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Health, Education, Labor, and Pensions Committee

March 15, 2017

Bill Text

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Introduced in SenateIssued March 15, 2017

II

115th CONGRESS

1st Session

S. 653

IN THE SENATE OF THE UNITED STATES

March 15, 2017

Mr. Hatch introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

A BILL

To amend the Carl D. Perkins Career and Technical Education Act of 2006 to make the maintenance of effort provision less burdensome on States.

1.

Short title

This Act may be cited as the Career and Technical Education State Flexibility Act.

2.

Maintenance of effort

Section 311(b) of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2391(b)) is amended—

(1)

in paragraph (1)—

(A)

by striking subparagraph (A) and inserting the following:

(A)

In general

(i)

In general

In order for a State to receive its full allotment of funds under this Act for any applicable fiscal year, the State’s fiscal effort per student, or the aggregate expenditures of such State, with respect to career and technical education for the fiscal year preceding such applicable fiscal year shall be not less than 80 percent the fiscal effort per student, or the aggregate expenditures of such State, for the second fiscal year preceding such applicable fiscal year.

(ii)

Applicable fiscal year

In clause (i), the term applicable fiscal year means any fiscal year beginning with the third fiscal year that begins after the date of enactment of the Career and Technical Education State Flexibility Act.

(iii)

No application for first two fiscal years; reset

The maintenance of effort requirement under clause (i) shall not be applicable for the first 2 fiscal years that begin after the date of enactment of the Career and Technical Education State Flexibility Act. After the date of enactment of the Career and Technical Education State Flexibility Act, a State may establish a new level of fiscal effort per student or aggregate expenditures for purposes of compliance with this subsection.

; and

(B)

in subparagraph (B), by striking shall exclude capital expenditures, special 1-time project costs, and the cost of pilot programs and inserting shall exclude competitive or incentive-based programs established by the State, capital expenditures, special 1-time project costs, and the cost of pilot programs; and

(2)

by striking paragraph (2) and inserting the following:

(2)

Reduction in case of failure to meet effort

The Secretary shall reduce the amount of a State’s allotment of funds under this Act for any applicable fiscal year (as defined in paragraph (1)(A)(ii)) in the exact proportion by which the State fails to meet the requirement of paragraph (1)(A)(i) by falling below 80 percent of both the State’s fiscal effort per student and the State’s aggregate expenditures (using the measure most favorable to the State), if the State failed to meet such requirement (as determined using the measure most favorable to the State).

(3)

Waiver

The Secretary may waive the application of paragraph (2) due to exceptional or uncontrollable circumstances affecting the ability of the State to meet the requirement of paragraph (1)(A)(i).

.