; plus (II) all additional expenditures (from funds other than an allocation under this section) on school facilities capital outlay projects by local educational agencies in the State that were not included in the calculation of total State expenditures under clause (iv). (2) Supplement not supplant The State shall use an allocation under this section only to supplement the level of State public funds that would, in absence of the receipt of Federal funds under this section, be made available for the State’s contribution to school facilities capital outlays, and not to supplant such State public funds. 103. Need-based grants to qualified local educational agencies (a) Grants to local educational agencies (1) In general Subject to paragraph (2), from the amounts allocated to a State under section 102(a) and contributed by the State under section 102(c)(1), the State shall award grants to qualified local educational agencies, on a competitive basis, to carry out the activities described in section 301(a). (2) Allowance for digital learning A State may use up to 10 percent of the amount described in paragraph (1) to make grants to qualified local educational agencies to carry out activities to improve digital learning in accordance with section 301(b). (b) Eligibility (1) In general To be eligible to receive a grant under this section, a qualified local educational agency— (A) shall be among the local educational agencies in the State with the highest numbers or percentages of students counted under section 1124(c) of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6333(c) )