‘‘(B) REVIEW OF ACTION.—If a State edu-
cational agency is dissatisfied with the Sec-
retary’s final action after a proceeding under
subparagraph (A), such agency may, not later
than 60 days after notice of such action, file
with the United States court of appeals for the
circuit in which such State is located a petition
for review of that action. A copy of the petition
shall be forthwith transmitted by the clerk of
the court to the Secretary. The Secretary there-
upon shall file in the court the record of the
proceedings on which the Secretary based the
Secretary’s action, as provided in section 2112
of title 28, United States Code.
‘‘(C) REVIEW OF FINDINGS OF FACT.—The
findings of fact by the Secretary, if supported
by substantial evidence, shall be conclusive, but
the court, for good cause shown, may remand
the case to the Secretary to take further evi-
dence, and the Secretary may thereupon make
new or modified findings of fact and may mod-
ify the Secretary’s previous action, and shall file
in the court the record of the further proceed-
ings. Such new or modified findings of fact
shall likewise be conclusive if supported by sub-
stantial evidence.
‘‘(D) JURISDICTION
OF
COURT
OF
AP-
PEALS; REVIEW BY UNITED STATES SUPREME
COURT.—Upon the filing of a petition under
subparagraph (B), the United States court of
appeals shall have jurisdiction to affirm the ac-
tion of the Secretary or to set it aside, in whole
or in part. The judgment of the court shall be
subject to review by the Supreme Court of the
United States upon certiorari or certification as
provided in section 1254 of title 28, United
States Code.
‘‘SEC. 613. LOCAL EDUCATIONAL AGENCY REQUIREMENTS.
‘‘(a) IN GENERAL.—A local educational agency shall
be eligible for assistance under this part for any fiscal year
if, except as provided in subsection (b), such agency sub-
mits to the State educational agency information that
demonstrates to the satisfaction of the State educational
agency the following:
‘‘(1) CONSISTENCY
WITH
STATE
POLICIES.—
The local educational agency, in providing for the
education of children with disabilities within its ju-
risdiction, has in effect policies, procedures, and pro-
grams that are consistent with the State policies and
procedures established under section 612.
‘‘(2) USE OF AMOUNTS.—
‘‘(A) IN GENERAL.—Amounts provided to
the local educational agency under this part—
‘‘(i) shall be used only to pay the ex-
cess costs of providing special education
and related services to children with dis-
abilities;
‘‘(ii) shall be used to supplement
State, local, and other Federal funds and
not to supplant such funds;
‘‘(iii) except as provided in subpara-
graph (B), may not be used to reduce the
level of expenditures for the education of
children with disabilities made by the local
educational agency from State or local
funds below the level of those expenditures
for the preceding fiscal year;
‘‘(iv) may be used, notwithstanding
clause (i) or any other provision of this
part, for the costs of special education and
related services provided in a regular class
to a child with a disability in accordance
with the child’s individualized education
program, even if one or more nondisabled
children benefit from those services; and
‘‘(v) may be used, in accordance with
subsection (f) and notwithstanding clause
(i) or any other provision of this part, to
develop and implement a coordinated serv-
ices system.
‘‘(B) EXCEPTION.—Notwithstanding the
restriction in subparagraph (A)(iii), a local edu-
cation agency may reduce the level of expendi-
tures where such reduction is attributable to—
‘‘(i) the departure, by retirement or
otherwise, of special education personnel;
‘‘(ii) a decrease in the enrollment of
children with disabilities;
‘‘(iii) the termination of the obligation
of the agency, consistent with this part, to
provide a program of special education to
a particular child with a disability that is
an exceptionally costly program, as deter-
mined by the State educational agency, be-
cause the child—
‘‘(I) has left the jurisdiction of
the agency;
‘‘(II) has reached the age at
which the obligation of the agency to
provide a free appropriate public edu-
cation to the child has terminated; or
‘‘(III) no longer needs such pro-
gram of special education; or
‘‘(iv) the termination of costly expend-
itures for long-term purchases, such as the
acquisition of equipment or the construc-
tion of school facilities.
‘‘(3) INFORMATION FOR STATE EDUCATIONAL
AGENCY.—The local educational agency shall provide
the State educational agency with information nec-
essary to enable the State educational agency to
carry out its duties under this part, including, with
respect to paragraphs (14) and (15) of section
612(a), information relating to the performance of
children with disabilities participating in programs
carried out under this part.
‘‘(4) PUBLIC
INFORMATION.—The local edu-
cational agency shall make available to parents of
children with disabilities and to the general public
all documents relating to the eligibility of such agen-
cy under this part.
‘‘(b) EXCEPTION FOR PRIOR LOCAL PLANS.—
‘‘(1) IN GENERAL.—If a local educational agen-
cy or State agency has on file with the State edu-
cational agency policies and procedures that dem-
onstrate that such local educational agency, or such
State agency, as the case may be, meets any require-
ment of subsection (a), including any policies and
procedures filed under this part as in effect before
the date of the enactment of IDEA Improvement
Act of 1996, the State educational agency shall con-
sider such local educational agency or State agency,
as the case may be, to have met such requirement
for purposes of receiving assistance under this part.
‘‘(2) MODIFICATION
MADE
BY
LOCAL
EDU-
CATIONAL AGENCY.—Subject to paragraph (3), an
application submitted by a local educational agency
in accordance with this section shall remain in effect
until the such agency submits to the State edu-
cational agency such modifications as the local edu-
cational agency deems necessary.
‘‘(3) MODIFICATIONS
REQUIRED
BY
STATE
EDUCATIONAL
AGENCY.—The 
State 
educational
agency may require a local educational agency to
amend its application at anytime as a result of the
compliance reviews of the State educational agency
under parts B and C. This paragraph shall apply to