US Code

Public Law 119-87 (04/30/2026)

31 U.S.C. § 6703

Qualification for payment

(a)

In General .—

The Secretary shall issue regulations establishing procedures under which eligible units of general local government are required to provide notice to the Secretary of the units’ proposed use of assistance under this chapter. Subject to subsection (c), the assistance provided shall be used, in amounts determined by the unit, for activities under, or for activities that are substantially similar to an activity under, 1 or more of the following programs and the notice shall identify 1 or more of the following programs for each such use:
(1)
The Drug Abuse Resistance Education Program under section 5122 of the Elementary and Secondary Education Act of 1965.
(2)
Public Law 97–35Public Law 103–252 The National Youth Sports Program under section 682 of the Community Services Block Grant Act () as amended by section 205, .
(3)
Public Law 101–509 The Gang Resistance Education and Training Program under the Act entitled “An Act making appropriations for the Treasury Department, the United States Postal Service, the Executive Office of the President, and certain Independent Agencies, for the fiscal year ending , and for other purposes”, approved ().
(4)
Programs under title I of the Workforce Innovation and Opportunity Act.
(5)
42 U.S.C. 12571 Programs under subtitle C of title I of the National and Community Service Act of 1990 ( et seq.), as amended.
(6)
Public Law 103–239 Programs under the School to Work Opportunities Act ().
(7)
43 U.S.C. 2011
1 See References in Text note below.
Substance Abuse Treatment and Prevention programs authorized under title V or XIX of the Public Health Services Act ( et seq.).
(8)
42 U.S.C. 9831 Programs under the Head Start Act ( et seq.).
(9)
Programs under part A or B of chapter 1 of title I of the Elementary and Secondary Education Act of 1965.
(10)
20 U.S.C. 1070 The TRIO programs under part A of title IV of the Higher Education Act of 1965 ( et seq.).
(11)
Programs under the National Literacy Act of 1991.
(12)
20 U.S.C. 2301 Programs under the Carl D. Perkins Career and Technical Education Act of 2006 ( et seq.).
(13)
1Public Law 103–252 The demonstration partnership programs including the community initiative targeted to minority youth under section 203  of the Human Services Reauthorization Act of 1994 ().
(14)
Public Law 102–586 The runaway and homeless youth program and the transitional living program for homeless youth under title III of the Juvenile Justice and Delinquency Prevention Act ().
(15)
42 U.S.C. 98581 After-school activities for school aged children under the Child Care and Development Block Grant Act (  et seq.).
(16)
1Public Law 103–252 The community-based family resource programs under section 401  of the Human Services Reauthorization Act of 1994 ().
(17)
The family violence programs under the Child Abuse Prevention and Treatment Act Amendments of 1984.
(18)
Job training programs administered by the Department of Agriculture, the Department of Defense, or the Department of Housing and Urban Development.
(b)

Notice to Agency .—

Upon receipt of notice under subsection (a) from an eligible unit of general local government, the Secretary shall notify the head of the appropriate Federal agency for each program listed in subsection (a) that is identified in the notice as a program under which an activity will be conducted with assistance under this chapter. The notification shall state that the unit has elected to use some or all of its assistance under this chapter for activities under that program. The head of a Federal agency that receives such a notification shall ensure that such use is in compliance with the laws and regulations applicable to that program, except that any requirement to provide matching funds shall not apply to that use.
(c)

Alternative Uses of Funds.—

(1)

Alternative uses authorized .—

In lieu of, or in addition to, use for an activity described in subsection (a) and notice for that use under subsection (a), an eligible unit of general local government may use assistance under this chapter, and shall provide notice of that use to the Secretary under subsection (a), for any other activity that is consistent with 1 or more of the purposes described in section 6701(a)(2).
(2)

Notice deemed to describe consistent use .—

Notice by a unit of general local government that it intends to use assistance under this chapter for an activity other than an activity described in subsection (a) is deemed to describe an activity that is consistent with 1 or more of the purposes described in section 6701(a)(2) unless the Secretary provides to the unit, within 30 days after receipt of that notice of intent from the unit, written notice (including an explanation) that the use is not consistent with those purposes.
(d)

General Requirements for Qualification .—

A unit of general local government qualifies for a payment under this chapter for a payment period only after establishing to the satisfaction of the Secretary that—
(1)
the government will establish a trust fund in which the government will deposit all payments received under this chapter;
(2)
the government will use amounts in the trust fund (including interest) during a reasonable period;
(3)
the government will expend the payments so received, in accordance with the laws and procedures that are applicable to the expenditure of revenues of the government;
(4)
if at least 25 percent of the pay of individuals employed by the government in a public employee occupation is paid out of the trust fund, individuals in the occupation any part of whose pay is paid out of the trust fund will receive pay at least equal to the prevailing rate of pay for individuals employed in similar public employee occupations by the government;
(5)
64 Stat. 1267 section 3145 of title 40 all laborers and mechanics employed by contractors or subcontractors in the performance of any contract and subcontract for the repair, renovation, alteration, or construction, including painting and decorating, of any building or work that is financed in whole or in part by a grant under this title, shall be paid wages not less than those determined by the Secretary of Labor in accordance with sections 3141–3144, 3146, and 3147 of title 40. The Secretary of Labor shall have the authority and functions set forth in Reorganization Plan No. 14 of 1950 (15 FR 3176; ) and ;
(6)
the government will use accounting, audit, and fiscal procedures that conform to guidelines which shall be prescribed by the Secretary. As applicable, amounts received under this chapter shall be audited in compliance with the Single Audit Act of 1984;
(7)
after reasonable notice to the government, the government will make available to the Secretary and the Comptroller General of the United States, with the right to inspect, records the Secretary reasonably requires to review compliance with this chapter or the Comptroller General of the United States reasonably requires to review compliance and operations under section 6718(b);
(8)
the government will make reports the Secretary reasonably requires, in addition to the annual reports required under section 6719(b); and
(9)
the government will spend the funds only for the purposes set forth in section 6701(a)(2).
(e)

Review by Governors .—

A unit of general local government shall give the chief executive officer of the State in which the government is located an opportunity for review and comment before establishing compliance with subsection (d).
(f)

Sanctions for Noncompliance.—

(1)

In general .—

If the Secretary decides that a unit of general local government has not complied substantially with subsection (d) or regulations prescribed under subsection (d), the Secretary shall notify the government. The notice shall state that if the government does not take corrective action by the 60th day after the date the government receives the notice, the Secretary will withhold additional payments to the government for the current payment period and later payment periods until the Secretary is satisfied that the government—
(A)
has taken the appropriate corrective action; and
(B)
will comply with subsection (d) and regulations prescribed under subsection (d).
(2)

Notice .—

Before giving notice under paragraph (1), the Secretary shall give the chief executive officer of the unit of general local government reasonable notice and an opportunity for comment.
(3)

Payment conditions .—

The Secretary may make a payment to a unit of general local government notified under paragraph (1) only if the Secretary is satisfied that the government—
(A)
has taken the appropriate corrective action; and
(B)
will comply with subsection (d) and regulations prescribed under subsection (d).

Pub. L. 103–322, title III, § 31001(a)108 Stat. 1861 Pub. L. 104–316, title I, § 115(j)110 Stat. 3835 Pub. L. 105–277, div. A, § 101(f) [title VIII, § 405(c)(3), (d)(27), (f)(19)]112 Stat. 2681–337 Pub. L. 107–217, § 3(h)(8)116 Stat. 1300 Pub. L. 109–270, § 2(i)120 Stat. 748 Pub. L. 113–128, title V, § 512(ff)128 Stat. 1719 (Added , , ; amended , , ; , , , 2681–417, 2681–424, 2681–432; , , ; , , ; , , .)

Editorial Notes

References in Text

Pub. L. 89–1079 Stat. 27 Pub. L. 89–10Pub. L. 103–382, title I, § 101108 Stat. 3519 section 3192 of Title 20Pub. L. 89–10Pub. L. 103–382Pub. L. 107–110section 7213a of Title 20Pub. L. 114–95, title IV, § 4001(b)(1)(A)129 Stat. 1967 The Elementary and Secondary Education Act of 1965, referred to in subsec. (a)(1), (9), is , , . Parts A and B of chapter 1 of title I of the Act were classified generally to parts A (§ 2711 et seq.) and B (§ 2741 et seq.) of division 1 of subchapter I of chapter 47 of Title 20, Education, prior to being omitted in the general amendment of by , , . See part A (§ 6311 et seq.) and subpart 3 (§ 6381 et seq.) of part B of subchapter I of chapter 70 of Title 20. Section 5122 of the Act was classified to prior to being omitted in the general amendment of by . A new section 5122 of the Act, relating to applications for assistance under educational reform programs, was added by and was classified to , prior to repeal by , , .

section 9910c of Title 42Pub. L. 105–285, title II, § 201112 Stat. 2728 section 9923 of Title 42Section 682 of the Community Services Block Grant Act, referred to in subsec. (a)(2), which was classified to , The Public Health and Welfare, was omitted in the general amendment of chapter 106 of Title 42, by , , . A new section 682 of the Act, containing similar subject matter, is classified to .

Public Law 101–509Pub. L. 101–509104 Stat. 1389 , referred to in subsec. (a)(3), is , , . For complete classification of this Act to the Code, see Tables.

Pub. L. 113–128128 Stat. 1425 section 3101 of Title 29The Workforce Innovation and Opportunity Act, referred to in subsec. (a)(4), is , , . Title I of the Act is classified generally to subchapter I (§ 3111 et seq.) of chapter 32 of Title 29, Labor. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Pub. L. 101–610104 Stat. 3127 section 12501 of Title 42The National and Community Service Act of 1990, referred to in subsec. (a)(5), is , , . Subtitle C of title I of the Act is classified generally to division C (§ 12571 et seq.) of subchapter I of chapter 129 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Pub. L. 103–239108 Stat. 568 section 6101 of Title 20The School to Work Opportunities Act, referred to in subsec. (a)(6), probably means the School-to-Work Opportunities Act of 1994, , , , which is classified principally to chapter 69 (§ 6101 et seq.) of Title 20, Education. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

act July 1, 1944, ch. 373 58 Stat. 682 section 201 of Title 42The Public Health Services Act, referred to in subsec. (a)(7), probably means the Public Health Service Act, , . Titles V and XIX of the Act are classified generally to subchapters III–A (§ 290aa et seq.) and XVII (§ 300w et seq.) of chapter 6A of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Pub. L. 97–3595 Stat. 499 section 9801 of Title 42The Head Start Act, referred to in subsec. (a)(8), is subchapter B (§§ 635–657) of chapter 8 of subtitle A of title VI of , , , which is classified generally to subchapter II (§ 9831 et seq.) of chapter 105 of Title 42. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Pub. L. 89–32979 Stat. 1219 section 1001 of Title 20The Higher Education Act of 1965, referred to in subsec. (a)(10), is , , . Part A of title IV of the Act is classified generally to part A (§ 1070 et seq.) of subchapter IV of chapter 28 of Title 20, Education. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Pub. L. 102–73105 Stat. 333 Pub. L. 105–220, title II, § 251(a)(2)112 Stat. 1079 The National Literacy Act of 1991, referred to in subsec. (a)(11), is , , , which was repealed by , , . For complete classification of this Act to the Code, see Tables.

Pub. L. 88–21077 Stat. 403 Pub. L. 109–270, § 1(b)120 Stat. 683 section 2301 of Title 20The Carl D. Perkins Career and Technical Education Act of 2006, referred to in subsec. (a)(12), is , , , as amended generally by , , , which is classified generally to chapter 44 (§ 2301 et seq.) of Title 20, Education. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Public Law 103–252Pub. L. 103–252108 Stat. 654 Section 203 of Pub. L. 103–252section 9910 of Title 42Section 401 of Pub. L. 103–252Sections 203 and 401 of the Human Services Reauthorization Act of 1994 (), referred to in subsec. (a)(13), (16), probably mean sections 203 and 401 of the Human Services Amendments of 1994, , , , 666. amended , The Public Health and Welfare. generally amended subchapter III (§ 5116 et seq.) of chapter 67 of Title 42 and repealed sections 5106a–1 and 12339 of Title 42.

Pub. L. 93–41588 Stat. 1109 section 10101 of Title 34The Juvenile Justice and Delinquency Prevention Act, referred to in subsec. (a)(14), probably means the Juvenile Justice and Delinquency Prevention Act of 1974, , , . Title III of the Act is classified generally to subchapter III (§ 11201 et seq.) of chapter 111 of Title 34, Crime Control and Law Enforcement. For complete classification of this Act to the Code, see Short Title of 1974 Act note set out under and Tables.

Pub. L. 97–35Pub. L. 101–508, title V, § 5082(2)104 Stat. 1388–236 section 9857(a) of Title 42The Child Care and Development Block Grant Act, referred to in subsec. (a)(15), probably means the Child Care and Development Block Grant Act of 1990, subchapter C (§ 658A et seq.) of chapter 8 of subtitle A of title VI of , as added by , , , which is classified generally to subchapter II–B (§ 9857 et seq.) of chapter 105 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see and Tables.

Pub. L. 98–45798 Stat. 1749 section 5101 of Title 42The Child Abuse Prevention and Treatment Act Amendments of 1984, referred to in subsec. (a)(17), probably means the Child Abuse Amendments of 1984, , , . Title III of the Act, relating to family violence programs, is classified generally to chapter 110 (§ 10401 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title of 1984 Amendment note set out under and Tables.

Reorganization Plan No. 14 of 1950, referred to in subsec. (d)(5), is set out in the Appendix to Title 5, Government Organization and Employees.

Pub. L. 98–50298 Stat. 2327 section 7501 of this titlesection 7501 of this titleThe Single Audit Act of 1984, referred to in subsec. (d)(6), is , , , which enacted chapter 75 (§ 7501 et seq.) of this title and provisions set out as notes under . For complete classification of this Act to the Code, see Short Title of 1984 Amendment note set out under and Tables.

Prior Provisions

Pub. L. 97–25896 Stat. 1012 Pub. L. 98–185, § 397 Stat. 1309 Pub. L. 99–272, title XIV, § 14001(a)(1)100 Stat. 327 A prior section 6703, , , ; , , , related to State and Local Government Fiscal Assistance Trust Fund, prior to repeal by , (e), , , 329, eff. .

Amendments

Pub. L. 113–1282014—Subsec. (a)(4). substituted “Programs under title I of the Workforce Innovation and Opportunity Act.” for “Programs under title I of the Workforce Investment Act of 1998.”

Pub. L. 109–2702006—Subsec. (a)(12). which directed the substitution of “Carl D. Perkins Career and Technical Education Act of 2006” for “Carl D. Perkins Vocational and Applied Technology Education Act”, was executed by making the substitution for “Carl Perkins Vocational Educational and Applied Technology Education Act” to reflect the probable intent of Congress.

Pub. L. 107–21740 U.S.C. 276a–276asection 3145 of title 40section 2 of the Act of June 1, 1934 40 U.S.C. 276c48 Stat. 948 2002—Subsec. (d)(5). substituted “sections 3141–3144, 3146, and 3147 of title 40” for “the Act of (commonly known as the Davis-Bacon Act); as amended (–5)” and “” for “ (commonly known as the Copeland Anti-Kickback Act), as amended (, )”.

Pub. L. 105–277, § 101(f) [title VIII, § 405(f)(19)]1998—Subsec. (a)(4). , added par. (4) and struck out former par. (4) which read as follows: “Programs under title II or IV of the Job Training Partnership Act or under title I of the Workforce Investment Act of 1998.”

Pub. L. 105–277, § 101(f) [title VIII, § 405(d)(27)]29 U.S.C. 1601, added par. (4) and struck out former par. (4) which read as follows: “Programs under title II or IV of the Job Training Partnership Act ( et seq.).”

Pub. L. 105–277, § 101(f) [title VIII, § 405(c)(3)]42 U.S.C. 11481Subsec. (a)(15) to (19). , redesignated pars. (16) to (19) as (15) to (18), respectively, and struck out former par. (15) which read as follows: “The family support program under subtitle F of title VII of the Stewart B. McKinney Homeless Assistance Act ( et seq.).”

Pub. L. 104–3161996—Subsec. (d)(6). struck out “after consultation with the Comptroller General of the United States” after “by the Secretary”.

Statutory Notes and Related Subsidiaries

Effective Date of 2014 Amendment

Pub. L. 113–128section 506 of Pub. L. 113–128section 3101 of Title 29Amendment by effective on the first day of the first full program year after (), see , set out as an Effective Date note under , Labor.

Effective Date of 1998 Amendment

Pub. L. 105–277Pub. L. 105–277Pub. L. 105–277section 3502 of Title 5Amendment by section 101(f) [title VIII, § 405(c)(3), (d)(27)] of effective , and amendment by section 101(f) [title VIII, § 405(f)(19)] of effective , see section 101(f) [title VIII, § 405(g)(1), (2)(B)] of , set out as a note under , Government Organization and Employees.