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This OSEP letter clarifies that district use of CEIS funds must be used to supplement state, local, and other federal funds, not to supplant those funds. It also answers a question about the allowance for reduction in MOE due to improved efficiencies of transportation costs with no reduction in special education and related services. The only exceptions and adjustments that apply to LEA MOE requirements are described in the regulations. See 34 CFR §300.202(a)(3) and 34 CFR §§300.204 and 300.205.