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The Department plans to issue this proposed rule to provide flexibilities to grantees regarding the requirements set forth in 20 U.S.C. 1437(b)(5)(B) and 34 CFR 303.225. IDEA section 637(b)(5)(B) requires a State to provide as part of its annual application an assurance that Federal funds available under section 643 of the Act will be used to supplement the level of State and local funds expended for infants and toddlers with disabilities and their families and in no case to supplant those State and local funds.  As part of that assurance, States must confirm that they are in compliance with the IDEA Part C State-level maintenance of effort (MOE) requirement. The current MOE regulation provides very limited flexibility with only two exceptions listed. The Department is planning issue this proposed rule to provide additional, appropriate flexibilities to States in meeting the MOE requirements of section 637(b)(5)(B) of the IDEA and 34 CFR 303.225 while also ensuring appropriate levels of State and local funding support for infants and toddlers with disabilities and their families.