29 U.S.C. § 3131

(a) State boards In funding a State board under this part, a State— (1) shall use funds available as described in section 3164(b)(3) or 3174(a)(3)(B) of this title; and (2) may use non-Federal funds available to the State that the State determines are appropriate and available for that use. (b) Local boards In funding a local board under this part, the chief elected official and local board for the local area— (1) shall use funds available as described in section 3163(b)(4) of this title ; and (2) may use non-Federal funds available to the local area that the chief elected official and local board determine are appropriate and available for that use.