Section 263.6 - What kinds of expenditures do not count?The following kinds of expenditures do not count:
(a) Expenditures of funds that originated with the Federal government;(b) State expenditures under the Medicaid program under title XIX of the Act;(c) Expenditures that a State makes as a condition of receiving Federal funds under another program that is not in Part IV-A of the Act, except as provided in § 263.3 ;(d) Expenditures that a State made in a prior fiscal year;(e) Expenditures that a State uses to match Federal Welfare-to-Work funds provided under section 403(a)(5) of the Act; and(f) Expenditures that a State makes in the TANF program to replace the reductions in the SFAG as a result of penalties, pursuant to § 264.50 of this chapter. 71 FR 37481 , June 29, 2006