461.42—What is the maintenance of effort requirement?
(a) Basic standard.
(1)
Except as provided in § 461.43, a State is eligible for a grant from appropriations for any fiscal year only if the Secretary determines that the State has expended for adult education from non-Federal sources during the second preceding fiscal year (or program year) an amount not less than the amount expended during the third preceding fiscal year (or program year).
(ii)
The Secretary determines maintenance of effort on a per student expenditure basis or on a total expenditure basis.
(2)
For purposes of determining maintenance of effort, the “second preceding fiscal year (or program year)” is the fiscal year (or program year) two years prior to the year of the grant for which the Secretary is determining the State's eligibility. The “third preceding fiscal year (or program year)” is the fiscal year (or program year) three years prior to the year of the grant for which the Secretary is determining the State's eligibility.
Code of Federal Regulations
(b) Expenditures to be considered.
In determining a State's compliance with the maintenance of effort requirement, the Secretary considers the expenditures described in § 461.41(c).