[Code of Federal Regulations] [Title 34, Volume 2] [Revised as of July 1, 2002] From the U.S. Government Printing Office via GPO Access [CITE: 34CFR301.26] [Page 174] TITLE 34--EDUCATION REHABILITATIVE SERVICES, DEPARTMENT OF EDUCATION PART 301--PRESCHOOL GRANTS FOR CHILDREN WITH DISABILITIES--Table of Contents Subpart C--Allocation of Funds to States Sec. 301.26 Use of State agency allocations. Each State shall use any funds it retains under Sec. 301.24 and does not use for administration under Sec. 301.25 for any of the following: (a) Support services (including establishing and implementing the mediation process required by section 615(e) of the Act), which may benefit children with disabilities younger than 3 or older than 5 as long as those services also benefit children with disabilities aged 3 through 5. (b) Direct services for children eligible for services under section 619 of the Act. (c) Developing a State improvement plan under subpart 1 of part D of the Act. (d) Activities at the State and local levels to meet the performance goals established by the State under section 612(a)(16) of the Act and to support implementation of the State improvement plan under subpart 1 of part D of the Act if the State receives funds under that subpart. (e) Supplementing other funds used to develop and implement a Statewide coordinated services system designed to improve results for children and families, including children with disabilities and their families, but not to exceed one percent of the amount received by the State under section 619 of the Act for a fiscal year. (Authority: 20 U.S.C. 1419(f))