A r c h i v e d  I n f o r m a t i o n

``SEC. 1204. USES OF FUNDS

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``(a) In General.--In carrying out an Even Start program under this part, a recipient of funds under this part shall use such funds to pay the Federal share of the cost of providing family-centered education programs that involve parents and children, from birth through age seven, in a cooperative effort to help parents become full partners in the education of their children and to assist children in reaching their full potential as learners.
``(b) Federal Share Limitation.--
``(1) In general.--
``(A) Except as provided in paragraph (2), the Federal share under this part may not exceed--
``(i) 90 percent of the total cost of the program in the first year that such program receives assistance under this part or its predecessor authority;
``(ii) 80 percent in the second such year;
``(iii) 70 percent in the third such year;
``(iv) 60 percent in the fourth such year; and
``(v) 50 percent in any subsequent such year.
``(B) The remaining cost of a program assisted under this part may be provided in cash or in kind, fairly evaluated and may be obtained from any source, including other Federal funds under this Act.
``(2) Waiver.--The State educational agency may waive, in whole or in part, the cost-sharing requirement described in paragraph (1) for an eligible entity if such entity--
``(A) demonstrates that such entity otherwise would not be able to participate in the program assisted under this part; and
``(B) negotiates an agreement with the State educational agency with respect to the amount of the remaining cost to which the waiver will be applicable.
``(3) Prohibition.--Federal funds provided under this part may not be used for the indirect costs of a program assisted under this part, except that the Secretary may waive this paragraph if an eligible recipient of funds reserved under section 1202(a)(1)(C) demonstrates to the Secretary's satisfaction that such recipient otherwise would not be able to participate in the program assisted under this part.

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SEC. 1203. STATE PROGRAMS. Table of Contents SEC. 1205. PROGRAM ELEMENTS.