; 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). .