SEC. 654. USE OF FUNDS.
(a) IN GENERAL-
(1) ACTIVITIES- A State educational agency that receives a grant under this subpart may use the grant to carry out any activities that are described in the State's application and that are consistent with the purpose of this subpart.
(2) CONTRACTS AND SUBGRANTS- Each such State educational agency --
(A) shall, consistent with its partnership agreement under section 652(b), award contracts or subgrants to local educational agencies, institutions of higher education, and parent training and information centers, as appropriate, to carry out its State improvement plan under this subpart; and
(B) may award contracts and subgrants to other public and private entities, including the lead agency under part C, to carry out such plan.
(b) USE OF FUNDS FOR PROFESSIONAL DEVELOPMENT- A State educational agency that receives a grant under this subpart --
(1) shall use not less than 75 percent of the funds it receives under the grant for any fiscal year --
(A) to ensure that there are sufficient regular education, special education, and related services personnel who have the skills and knowledge necessary to meet the needs of children with disabilities and developmental goals of young children; or
(B) to work with other States on common certification criteria; or
(2) shall use not less than 50 percent of such funds for such purposes, if the State demonstrates to the Secretary's satisfaction that it has the personnel described in paragraph (1)(A).
(c) GRANTS TO OUTLYING AREAS- Public Law 95-134, permitting the consolidation of grants to the outlying areas, shall not apply to funds received under this subpart.