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.
