118 STAT. 2663 PUBLIC LAW 108–446—DEC. 3, 2004 ‘‘(i) the number of children with disabilities in the State who are receiving special education and related services— ‘‘(I) aged 3 through 5 if the State is eligible for a grant under section 619; and ‘‘(II) aged 6 through 21; multiplied by ‘‘(ii) 40 percent of the average per pupil expendi ture in public elementary schools and secondary schools in the United States; and ‘‘(B) for fiscal year 2007 and subsequent fiscal years is— ‘‘(i) the number of children with disabilities in the 2004–2005 school year in the State who received special education and related services— ‘‘(I) aged 3 through 5 if the State is eligible for a grant under section 619; and ‘‘(II) aged 6 through 21; multiplied by ‘‘(ii) 40 percent of the average per pupil expendi ture in public elementary schools and secondary schools in the United States; adjusted by ‘‘(iii) the rate of annual change in the sum of— ‘‘(I) 85 percent of such State’s population described in subsection (d)(3)(A)(i)(II); and ‘‘(II) 15 percent of such State’s population described in subsection (d)(3)(A)(i)(III). ‘‘(b) OUTLYING AREAS AND FREELY ASSOCIATED STATES; SEC RETARY OF THE INTERIOR.— ‘‘(1) OUTLYING AREAS AND FREELY ASSOCIATED STATES.— ‘‘(A) FUNDS RESERVED.—From the amount appropriated for any fiscal year under subsection (i), the Secretary shall reserve not more than 1 percent, which shall be used— ‘‘(i) to provide assistance to the outlying areas in accordance with their respective populations of individuals aged 3 through 21; and ‘‘(ii) to provide each freely associated State a grant in the amount that such freely associated State received for fiscal year 2003 under this part, but only if the freely associated State meets the applicable requirements of this part, as well as the requirements of section 611(b)(2)(C) as such section was in effect on the day before the date of enactment of the Individ uals with Disabilities Education Improvement Act of 2004. ‘‘(B) SPECIAL RULE.—The provisions of Public Law 95– 134, permitting the consolidation of grants by the outlying areas, shall not apply to funds provided to the outlying areas or the freely associated States under this section. ‘‘(C) DEFINITION.—In this paragraph, the term ‘freely associated States’ means the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau. ‘‘(2) SECRETARY OF THE INTERIOR.—From the amount appro priated for any fiscal year under subsection (i), the Secretary shall reserve 1.226 percent to provide assistance to the Sec retary of the Interior in accordance with subsection (h). ‘‘(c) TECHNICAL ASSISTANCE.—
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