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

(b) State Educational Agency as Provider of Free Appropriate Public Education or Direct Services.--If the State educational agency provides free appropriate public education to children with disabilities, or provides direct services to such children, such agency--

(1) shall comply with any additional requirements of section 613(a), as if such agency were a local educational agency; and

(2) may use amounts that are otherwise available to such agency under this part to serve those children without regard to section 613(a)(2)(A)(i) (relating to excess costs).