US Code

Public Law 119-102 (07/12/2026)

42 U.S.C. § 300ff–31a

Timeframe for obligation and expenditure of grant funds

Section text and notes

(a)

Obligation by end of grant year

Effective for fiscal year 2007 and subsequent fiscal years, funds from a grant award made to a State for a fiscal year pursuant to section 300ff–28(a)(1) or 300ff–28(a)(2)(F) of this title, or under section 300ff–29a or 300ff–30 of this title, are available for obligation by the State through the end of the one-year period beginning on the date in such fiscal year on which funds from the award first become available to the State (referred to in this section as the “grant year for the award”), except as provided in subsection (c)(1).

(b)

Supplemental grants; cancellation of unobligated balance of grant award

section 300ff–28(a)(2)(F)(ii) of this titleEffective for fiscal year 2007 and subsequent fiscal years, if a grant award made to a State for a fiscal year pursuant to , or under section 300ff–29a or 300ff–30 of this title, has an unobligated balance as of the end of the grant year for the award—
(1)
the Secretary shall cancel that unobligated balance of the award, and shall require the State to return any amounts from such balance that have been disbursed to the State; and
(2)
section 300ff–29a of this titlesection 300ff–28(a)(2)(H) of this title the funds involved shall be made available by the Secretary as additional amounts for grants pursuant to for the first fiscal year beginning after the fiscal year in which the Secretary obtains the information necessary for determining that the balance is required under paragraph (1) to be canceled, except that the availability of the funds for such grants is subject to as applied for such year.
(c)

Formula grants; cancellation of unobligated balance of grant award; waiver permitting carryover

(1)

In general

Effective for fiscal year 2007 and subsequent fiscal years, if a grant award made to a State for a fiscal year pursuant to section 300ff–28(a)(1) or 300ff–28(a)(2)(F)(i) of this title has an unobligated balance as of the end of the grant year for the award, the Secretary shall cancel that unobligated balance of the award, and shall require the State to return any amounts from such balance that have been disbursed to the State, unless—
(A)
before the end of the grant year, the State submits to the Secretary a written application for a waiver of the cancellation, which application includes a description of the purposes for which the State intends to expend the funds involved; and
(B)
the Secretary approves the waiver.
(2)

Expenditure by end of carryover year

With respect to a waiver under paragraph (1) that is approved for a balance that is unobligated as of the end of a grant year for an award:
(A)
The unobligated funds are available for expenditure by the State involved for the one-year period beginning upon the expiration of the grant year (referred to in this section as the “carryover year”).
(B)
If the funds are not expended by the end of the carryover year, the Secretary shall cancel that unexpended balance of the award, and shall require the State to return any amounts from such balance that have been disbursed to the State.
(3)

Use of cancelled balances

section 300ff–29a of this titlesection 300ff–28(a)(2)(H) of this titleIn the case of any balance of a grant award that is cancelled under paragraph (1) or (2)(B), the grant funds involved shall be made available by the Secretary as additional amounts for grants under for the first fiscal year beginning after the fiscal year in which the Secretary obtains the information necessary for determining that the balance is required under such paragraph to be canceled, except that the availability of the funds for such grants is subject to as applied for such year.

(4)

Corresponding reduction in future grant

(A)

In general

In the case of a State for which a balance from a grant award made pursuant to section 300ff–28(a)(1) or 300ff–28(a)(2)(F)(i) of this title is unobligated as of the end of the grant year for the award—
(i)
the Secretary shall reduce, by the same amount as such unobligated balance (less any amount of such balance that is the subject of a waiver of cancellation under paragraph (1)), the amount of the grant under such section for the first fiscal year beginning after the fiscal year in which the Secretary obtains the information necessary for determining that such balance was unobligated as of the end of the grant year (which requirement for a reduction applies without regard to whether a waiver under paragraph (1) has been approved with respect to such balance); and
(ii)
section 300ff–29a of this titlesection 300ff–28(a)(2)(H) of this title the grant funds involved in such reduction shall be made available by the Secretary as additional funds for grants under for such first fiscal year, subject to ;
except that this subparagraph does not apply to the State if the amount of the unobligated balance was 5 percent or less.
(B)

Relation to increases in grant

section 300ff–28(a)(2)(H) of this titleA reduction under subparagraph (A) for a State for a fiscal year may not be taken into account in applying with respect to the State for the subsequent fiscal year.

(d)

Treatment of drug rebates

section 300ff–26(g) of this title1
1 So in original. Probably should be preceded by “section”.
section 300ff–28(a)(2)(F)(ii)(V) of this titleFor purposes of this section, funds that are drug rebates referred to in may not be considered part of any grant award referred to in subsection (a). If an expenditure of ADAP rebate funds would trigger a penalty under this section or a higher penalty than would otherwise have applied, the State may request that for purposes of this section, the Secretary deem the State’s unobligated balance to be reduced by the amount of rebate funds in the proposed expenditure. Notwithstanding 300ff–28(a)(2)(F)  of this title, any unobligated amount under that is returned to the Secretary for reallocation shall be used by the Secretary for—
(1)
the ADAP supplemental program if the Secretary determines appropriate; or
(2)
section 300ff–29a of this title for additional amounts for grants pursuant to .
(e)

Authority regarding administration of provisions

section 300ff–29a of this titlesection 300ff–28(a)(2)(H) of this titleIn administering subsections (b) and (c) with respect to the unobligated balance of a State, the Secretary may elect to reduce the amount of future grants to the State under section 300ff–28, 300ff–29a, or 300ff–30 of this title, as applicable, by the amount of any such unobligated balance in lieu of cancelling such amount as provided for in subsection (b) or (c)(1). In such case, the Secretary may permit the State to use such unobligated balance for purposes of any such future grant. An amount equal to such reduction shall be available for use as additional amounts for grants pursuant to , subject to . Nothing in this paragraph shall be construed to affect the authority of the Secretary under subsections (b) and (c), including the authority to grant waivers under subsection (c)(1). The reduction in future grants authorized under this subsection shall be notwithstanding the penalty required under subsection (c)(4) with respect to unobligated funds.

July 1, 1944, ch. 373 Pub. L. 109–415, title II, § 207120 Stat. 2799 Pub. L. 111–87123 Stat. 2885 (, title XXVI, § 2622, as added and amended , title VII, § 703, , , 2820; , §§ 2(a)(1), (3)(A), 5(c)(2)–(4), 8(b)(1)(B), (2)(B), (c)(2), 10(a), , , 2891, 2894, 2895.)

Editorial Notes

Amendments

Pub. L. 111–87, § 2(a)(1)Pub. L. 109–415, § 7032009—, (3)(A), repealed , and revived the provisions of this section as in effect on . See 2006 Amendment note and Effective Date of 2009 Amendment; Revival of Section note below.

Pub. L. 111–87, § 5(c)(3)Subsec. (a). , substituted “300ff–28(a)(2)(F)” for “300ff–28(a)(2)(G)”.

Pub. L. 111–87, § 5(c)(4)Subsec. (b). , substituted “300ff–28(a)(2)(F)(ii)” for “300ff–28(a)(2)(G)(ii)” in introductory provisions.

Pub. L. 111–87, § 5(c)(2)Subsec. (c)(1). , substituted “300ff–28(a)(2)(F)(i)” for “300ff–28(a)(2)(G)(i)” in introductory provisions.

Pub. L. 111–87Subsec. (c)(4)(A). , §§ 5(c)(2), 8(b)(1)(B), substituted “300ff–28(a)(2)(F)(i)” for “300ff–28(a)(2)(G)(i)” in introductory provisions and “5 percent” for “2 percent” in concluding provisions.

Pub. L. 111–87, § 8(c)(2)Subsec. (c)(4)(A)(i). , inserted “(less any amount of such balance that is the subject of a waiver of cancellation under paragraph (1))” after “unobligated balance”.

Pub. L. 111–87, § 10(a)section 300ff–28(a)(2)(F)(ii)(V) of this titleSubsec. (d). , inserted at end “If an expenditure of ADAP rebate funds would trigger a penalty under this section or a higher penalty than would otherwise have applied, the State may request that for purposes of this section, the Secretary deem the State’s unobligated balance to be reduced by the amount of rebate funds in the proposed expenditure. Notwithstanding 300ff–28(a)(2)(F) of this title, any unobligated amount under that is returned to the Secretary for reallocation shall be used by the Secretary for—

“(1) the ADAP supplemental program if the Secretary determines appropriate; or

section 300ff–29a of this title“(2) for additional amounts for grants pursuant to .”

Pub. L. 111–87, § 8(b)(2)(B)Subsec. (e). , added subsec. (e).

Pub. L. 109–415, § 703Pub. L. 111–87, § 2(a)(1)2006—, which directed repeal of this section effective , was itself repealed by , effective .

Statutory Notes and Related Subsidiaries

Effective Date of 2009 Amendment; Revival of Section

section 2(a)(1) of Pub. L. 111–87section 703 of Pub. L. 109–415Pub. L. 111–87Pub. L. 111–87section 300ff–1 of this titleFor provisions that repeal by of be effective , that the provisions of this section as in effect on , be revived, and that amendment by sections 5(c)(2)–(4), 8(b)(1)(B), (2)(B), (c)(2), and 10(a) of be applicable to this section as so revived and effective as if enacted on , see section 2(a)(2), (3) of , set out as a note under .