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(a) IN GENERAL-

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(1) AUTHORITY- Under a local flexibility demonstration agreement entered into under this chapter, a local educational agency may consolidate Federal funds made available to the agency under the provisions listed in subsection (b) and use such funds for any educational purpose permitted under this Act.

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(2) PROGRAM REQUIREMENTS- Except as otherwise provided in this chapter, a local educational agency may use funds under paragraph (1) notwithstanding the program requirements of the program under which the funds were made available to the agency.

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(b) ELIGIBLE PROGRAMS- Program funds made available to local educational agencies on the basis of a formula under the following provisions may be consolidated and used under subsection (a):

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(1) Subpart 2 of part A of title II.

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(2) Subpart 1 of part D of title II.

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(3) Subpart 1 of part A of title IV.

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(4) Subpart 1 of part A of title V.