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U.S. Department of Education: Promoting Educational Excellence for all Americans
Regulations: Part 300 / B / 300.154 / g / 2

(2) If a public agency spends reimbursements from Federal funds (e.g., Medicaid) for services under this part, those funds will not be considered "State or local" funds for purposes of the maintenance of effort provisions in Sec. Sec. 300.163 and 300.203.