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of children age three and older. Another commenter expressed concern that this set-aside provision takes away funds from States that do not adopt a policy under section 635(a) of the Act. Other commenters requested that

§303.734(a) not be implemented until the Part C program is

fully funded.

Discussion: Consistent with section 643 of the Act and

under the provisions in §303.734, the Secretary is

required, in any fiscal year that the appropriation exceeds $460,000,000, to reserve 15 percent of the appropriated amount exceeding $460,000,000 to make available State incentive grants (SIG) to States that choose the option to make services available to children ages three and older

under §303.211. We do not agree that the provisions in

§303.734 take funds away from States that do not adopt a

policy under section 635(a) of the Act and §303.211. Any

State has the option to make IDEA Part C services available to eligible children with disabilities ages three and older

under §303.211. States have the option under §303.211 to

make IDEA Part C services available to eligible children with disabilities beyond age three regardless of whether funds are available and granted under section 643(e) of the

Act and §303.734. However, the State incentive grant funds

available and granted undersection 643(e) of the Act and