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U.S. Department of Education: Promoting Educational Excellence for all Americans
Statute: TITLE I / B / 612 / a / 17

(17) Supplementation of state, local, and other federal funds.--

(A) Expenditures.--Funds paid to a State under this part will be expended in accordance with all the provisions of this part.

(B) Prohibition against commingling.--Funds paid to a State under this part will not be commingled with State funds.

(C) Prohibition against supplantation and conditions for waiver by secretary.--Except as provided in section 613, funds paid to a State under this part will be used to supplement the level of Federal, State, and local funds (including funds that are not under the direct control of State or local educational agencies) expended for special education and related services provided to children with disabilities under this part and in no case to supplant such Federal, State, and local funds, except that, where the State provides clear and convincing evidence that all children with disabilities have available to them a free appropriate public education, the Secretary may waive, in whole or in part, the requirements of this subparagraph if the Secretary concurs with the evidence provided by the State.