An LEA or consortium of LEAs that receives assistance under this part may not—

1. (a) Expend for planning more than 50 percent of the funds received for the first fiscal year, and 15 percent of the funds received for the second or the third fiscal year;
2. (b) Use funds for transportation; or

3. (c) Use funds for any activity that does not augment academic improvement.

   (Authority: 20 U.S.C. 7231g, 7231h(b))

[60 FR 14866, Mar. 20, 1995, as amended at 69 FR 4997, Feb. 2, 2004]