### Question
How is the "excess costs" defined?


### Answer
The term **excess costs** is defined in *20 U.S.C. § 1401* as follows -

> those costs which are in excess of the average annual per student expenditure in a local educational agency during the preceding school year for an elementary or secondary school student, as may be appropriate, and which shall be computed after deducting—


(A) amounts received—


(i) under this subchapter,


(ii) under title I of the Elementary and Secondary Education Act of 1965 [20 U.S.C. 6301 et seq.], or


(iii) under title VII of the Elementary and Secondary Education Act of 1965 [20 U.S.C. 7401 et seq.], and


  

(B) any State or local funds expended for programs that would qualify for assistance under such subchapter, chapter, or title

#### Citation:
  - *20 U.S.C. § 1401*
  - Heading: **CHAPTER 33-EDUCATION OF INDIVIDUALS WITH DISABILITIES > SUBCHAPTER I-GENERAL PROVISIONS**

