(a) Approved programs in reading and in mathematics shall be established by each school district for its public school students and by each intermediate unit for nonpublic school students to serve those students identified as requiring assistance as a result of falling below an acceptable level of performance on tests developed and administered pursuant to regulations adopted by the State Board of Education. Annually, each school district and intermediate unit shall submit an application to the department for approval of a program of remediation services to be funded through funds distributed pursuant to subsection (b). Upon approval of the program, each school district and intermediate unit shall be eligible for State funds made available for such programs, as provided in subsection (b).

(b) Funds appropriated for remediation services and not distributed through sections 2501(19), 2502(d) and 2502.5¹ shall be distributed by the Department of Education to school districts based on the number of public school students identified for remediation and to intermediate units on behalf of nonpublic school students for remediation. Funds distributed to intermediate units shall be for services that are in addition to any services provided in accordance with the provisions of section 922.1-A² and such funds shall be in addition to those distributed in accordance with the provisions of section 922.1-A(d).

(c) It is the intent of the General Assembly that school districts utilize revenue for similar programs from the Federal Government to supplement State funds provided for in this act. Further, the General Assembly directs the department to guarantee, in its distribution of funds authorized by this act, that the combined resources of State and Federal programs exceed the resources which would be available from State sources if Federal revenues for similar purposes were not available.