[ChildOfThe60s]

nor does it impose a penalty if they do not

Cutting funding is a penalty. Any sort of promised action that is negative in nature is a penalty

That said, it's the reason the statists have worked so hard for the feds to "give" or "grant" monies to the states for various projects. It's a very effective end around the 10th amendment. Once the states are addicted to feeding on the federal teat, they become willing to take all sorts of orders to keep the "free" money coming.

[Mariner]

Federal Funding is 20%, max.

People should go to their School Board meeting and ask the members why they are sacrificing all autonomy for 20%.

[Pikachu_Dad]

Here is a fine for you...

http://www.thenewamerican.com/culture/education/item/11422-feds-fine-school-$15000-for-selling-soda