PAYMENTS; FEDERAL SHARE.

SEC. 138. PAYMENTS; FEDERAL SHARE. (a) Payments.—The Secretary shall make a grant to each Head Start agency or local educational agency having an application approved under section 136, to pay the Federal share of the cost of the activities described in the application. (b) Federal Share.— (1) In general.—The Federal share shall be 80 percent of the cost of the activities described in the approved application. (2) Non-federal share.—The non-Federal share of such cost may be in cash or in kind fairly evaluated, including planned equipment or services. (c) Supplementation of Funding.— (1) In general.—All Federal funds and funds paid as a part of the non-Federal share under this subtitle shall be used to supplement the level of State and local public funds expended for services assisted under this subtitle in the previous fiscal year. (2) Satisfaction of requirement.—The supplementation requirement of this subsection shall be satisfied with respect to a particular program if the aggregate expenditure in the program for the fiscal year in which services are to be provided will not be less than the aggregate expenditure in the program in the previous year, excluding Federal and non-Federal funds provided under this subtitle.