The Secretary makes payments to an LEA with an otherwise approvable application for children claimed under section 8003(b) of the Act if—

1. (a) The LEA meets the requirements in subpart A of these regulations and this subpart; and

2. (b)

   1. (1) The LEA is responsible under applicable State or Federal law for providing a free public education to those children;
   2. (2) The LEA is providing a free public education to those children; and

   3. (3) The State provides funds for the education of those children on the same basis as all other public school children in the State, unless permitted otherwise under section 8009 of the Act.

      (Authority: 20 U.S.C. 7703 and 7709)