34 C.F.R. § 300.175
If the SEA provides FAPE to children with disabilities, or provides direct services to these children, the agency—
(b) May use amounts that are otherwise available to the agency under Part B of the Act to serve those children without regard to § 300.202(b) (relating to excess costs).
(Approved by the Office of Management and Budget under control number 1820-0030)
(Authority: 20 U.S.C. 1412(b))