[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: 34CFR301.32] [Page 175] TITLE 34--EDUCATION REHABILITATIVE SERVICES, DEPARTMENT OF EDUCATION PART 301--PRESCHOOL GRANTS FOR CHILDREN WITH DISABILITIES--Table of Contents Subpart D--Allocation of Funds to Local Educational Agencies Sec. 301.32 Reallocation of local education agency funds. (a) If a SEA determines that an LEA is adequately providing a free appropriate public education to all children with disabilities aged 3 through 5 residing in the area served by that agency with State and local funds, the SEA may reallocate any portion of the funds under section 619 of the Act that are not needed by that local agency to provide a free appropriate public education to other local educational agencies in the State that are not adequately providing special education and related services to all children with disabilities aged 3 through 5 residing in the areas they serve. (b) If a State provides services to preschool children with disabilities because some or all LEAs and ESAs are unable or unwilling to provide appropriate programs, the SEA may use payments that would have been available to those LEAs or ESAs to provide special education and related services to children with disabilities aged 3 through 5 years, and to two-year-old children with disabilities receiving services consistent with Sec. 301.1 who are residing in the area served by those LEAs and ESAs. (Authority: 20 U.S.C. 1414(d), 1419(g)(2))