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(a) IN GENERAL-

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(1) AUTHORITY- Under a grant of flexibility authority made under this chapter, a State educational agency may consolidate Federal funds described in subsection (b) and made available to the agency, and use such funds for any educational purpose authorized under this Act.

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(2) PROGRAM REQUIREMENTS- Except as otherwise provided in this chapter, a State educational agency may use funds under paragraph (1) notwithstanding the program requirements of the program under which the funds were made available to the State.

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(b) ELIGIBLE FUNDS AND PROGRAMS-

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(1) FUNDS- The funds described in this subsection are funds, for State-level activities and State administration, that are described in the following provisions:

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(A) Section 1004.

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(B) Paragraphs (4) and (5) of section 1202(d).

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(C) Section 2113(a)(3).

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(D) Section 2412(a)(1).

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(E) Subsections (a) (with the agreement of the Governor), (b)(2), and (c)(1) of section 4112.

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(F) Paragraphs (2) and (3) of section 4202(c).

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(G) Section 5112(b).

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(2) PROGRAMS- The programs described in this subsection are the programs authorized to be carried out with funds described in paragraph (1).

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(c) SPECIAL RULE- A State educational agency that receives a grant of flexibility authority under this chapter —

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(1) shall ensure that the funds described in section 5112(a) are allocated to local educational agencies in the State in accordance with section 5112(a); but

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(2) may specify how the local educational agencies shall use the allocated funds.