(a) The Secretary may waive, for one year only, the maintenance of effort requirement in Sec. 461.42 if the Secretary determines that a waiver would be equitable due to exceptional or uncontrollable circumstances. These circumstances include, but are not limited to, the following:
(1) A natural disaster.
(2) An unforeseen and precipitous decline in financial resources.
(b) The Secretary does not consider a tax initiative or referendum to be an exceptional or uncontrollable circumstance. (Authority: 20 U.S.C. 1209(b)(2))