If a State or local government voluntarily contributes its own funds to supplement
activities carried out under the applicable programs, the State or local government
has the option to separate out the Federal funds or commingle them. If the funds are commingled, then the provisions of this subpart apply to all of
the commingled funds in the same manner, and to the same extent, as the provisions
apply to the Federal assistance. State funds that are contributed pursuant to the requirements of a matching or grant
agreement are considered to be commingled funds.
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