; (ii) by striking paragraph (2) and inserting the following: (2) Failure to meet (A) In General The Secretary shall reduce the amount of a State’s allotment of funds under this Act for any fiscal year in the exact proportion by which the State fails to meet the requirement of paragraph (1) by falling below the State’s fiscal effort per student or 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) for 1 or more of the 5 immediately preceding fiscal years. (B) Special Rule No such lesser amount shall be used for computing the effort required under paragraph (1) for subsequent years. (3) Waiver The Secretary may waive paragraph (2) due to exceptional or uncontrollable circumstances affecting the ability of the State to meet the requirement of paragraph (1) such as a natural disaster or an unforeseen and precipitous decline in financial resources. No level of funding permitted under such a waiver may be used as the basis for computing the fiscal effort or aggregate expenditures required under this section for years subsequent to the year covered by such waiver. The fiscal effort or aggregate expenditures for the subsequent years shall be computed on the basis of the level of funding that would, but for such waiver, have been required. ; (2) in section 314(1), by striking career path or major and inserting career pathway or program of study ; (3) in section 315— (A) by inserting or programs of study after career and technical education programs ; and (B) by striking seventh grade and inserting the middle grades (as such term is defined in section 8101 of the Elementary and Secondary Education Act of 1965) ; (4) in section 317(b)— (A) in paragraph (1)— (i) by inserting , including programs of study, after activities ; and (ii) by striking who reside in the geographical area served by and inserting in areas served by