	Background

The decision in School District of the City of Pontiac v. Secretary of the United States Department of Education arose in response to litigation surrounding § 9527(a) of the Elementary and Secondary Education Act (ESEA), as amended by the No Child Left Behind (NCLB) Act of 2001. The plaintiffs appealed the dismissal to the Court of Appeals for the Sixth Circuit, which reversed the district court's decision. However, the case was subsequently reheard, and the en banc Sixth Circuit divided evenly, meaning that the judgment of the district court to dismiss the case was affirmed. In reaching its decision, the two-justice majority emphasized its view that the Spending Clause requires "clear notice" of a state's financial obligations.
In 2008, a panel of the Court of Appeals for the Sixth Circuit issued a decision in School District of the City of Pontiac v. Secretary of the United States Department of Education. In its decision, the court held that the No Child Left Behind (NCLB) Act failed to provide the required "clear notice" to states and school districts regarding the requirements they must fulfill as a condition of receiving federal funding. The case was subsequently reheard, but the en banc Sixth Circuit divided evenly, meaning that the judgment of the district court to dismiss the case was affirmed. This report discusses some of the practical and legal implications of the Sixth Circuit decisions.