[Code of Federal Regulations]
[Title 34, Volume 1]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR222.54]

[Page 522-523]
 
                           TITLE 34--EDUCATION
 
                  CHAPTER II--OFFICE OF ELEMENTARY AND
              SECONDARY EDUCATION, DEPARTMENT OF EDUCATION
 
PART 222_IMPACT AID PROGRAMS--Table of Contents
 
     Subpart D_Payments Under Section 8003(d) of the Act for Local 
       Educational Agencies That Serve Children With Disabilities
 
Sec. 222.54  What supplement-not-supplant requirement applies to this 
subpart?

    Funds provided under section 8003(d) may not supplant any State 
funds that were or would have been available to the LEA for the free 
appropriate public education of children counted under section 8003(d).
    (a) No section 8003(d) funds may be paid to an LEA whose per pupil 
State aid for federally connected children with disabilities, either 
general State aid or special education State aid, has been or would be 
reduced as a result of

[[Page 523]]

eligibility for or receipt of section 8003(d) funds, whether or not a 
State has a program of State aid that meets the requirements of section 
8009 of the Act and subpart K of the regulations in this part.
    (1) A reduction in the per pupil amount of State aid for children 
with disabilities, including children counted under section 8003(d), 
from that received in a previous year raises a presumption that 
supplanting has occurred.
    (2) The LEA may rebut this presumption by demonstrating that the 
reduction was unrelated to the receipt of section 8003(d) funds.
    (b) In any State in which there is only one LEA, all funds for 
programs for children with disabilities other than funds from Federal 
sources are considered by the Secretary to be local funds.

(Authority: 20 U.S.C. 7703(d))