### Question
How does the law define excess costs?


### Answer
Under *20 U.S.C. § 1401*, **excess costs** is defined as:

> those costs that 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 subchapter II of this chapter

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

