US Code

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

42 U.S.C. § 300x–31

Restrictions on expenditure of grant

Section text and notes

(a)

In general

(1)

Certain restrictions

section 300x–21 of this titleA funding agreement for a grant under is that the State involved will not expend the grant—
(A)
to provide inpatient hospital services, except as provided in subsection (b);
(B)
to make cash payments to intended recipients of health services;
(C)
to purchase or improve land, purchase, construct, or permanently improve (other than minor remodeling) any building or other facility, or purchase major medical equipment;
(D)
to satisfy any requirement for the expenditure of non-Federal funds as a condition for the receipt of Federal funds;
(E)
to provide financial assistance to any entity other than a public or nonprofit private entity; or
(F)
section 300ee–5 of this title to carry out any program prohibited by .
(2)

Limitation on administrative expenses

section 300x–21 of this titleA funding agreement for a grant under is that the State involved will not expend more than 5 percent of the grant to pay the costs of administering the grant.

(3)

Limitation regarding penal and correctional institutions

section 300x–21 of this title1

1 See References in Text note below.
1 A funding agreement for a State for a grant under is that, in expending the grant for the purpose of providing treatment services in penal or correctional institutions of the State, the State will not expend more than an amount equal to the amount expended for such purpose by the State from the grant made under section 300x–1a  of this title to the State for fiscal year 1991 (as section 300x–1a  of this title was in effect for such fiscal year).

(b)

Exception regarding inpatient hospital services

(1)

Medical necessity as precondition

section 300x–21 of this titleWith respect to compliance with the agreement made under subsection (a), a State may expend a grant under to provide inpatient hospital services as treatment for substance use disorders only if it has been determined, in accordance with guidelines issued by the Secretary, that such treatment is a medical necessity for the individual involved, and that the individual cannot be effectively treated in a community-based, nonhospital, residential program of treatment.

(2)

Rate of payment

section 300x–21 of this titleIn the case of an individual for whom a grant under is expended to provide inpatient hospital services described in paragraph (1), a funding agreement for the grant for the State involved is that the daily rate of payment provided to the hospital for providing the services to the individual will not exceed the comparable daily rate provided for community-based, nonhospital, residential programs of treatment for substance use disorders.

(c)

Waiver regarding construction of facilities

(1)

In general

section 300x–21 of this titleThe Secretary may provide to any State a waiver of the restriction established in subsection (a)(1)(C) for the purpose of authorizing the State to expend a grant under for the construction of a new facility or rehabilitation of an existing facility, but not for land acquisition.

(2)

Standard regarding need for waiver

The Secretary may approve a waiver under paragraph (1) only if the State demonstrates to the Secretary that adequate treatment cannot be provided through the use of existing facilities and that alternative facilities in existing suitable buildings are not available.

(3)

Amount

In granting a waiver under paragraph (1), the Secretary shall allow the use of a specified amount of funds to construct or rehabilitate a specified number of beds for residential treatment and a specified number of slots for outpatient treatment, based on reasonable estimates by the State of the costs of construction or rehabilitation. In considering waiver applications, the Secretary shall ensure that the State has carefully designed a program that will minimize the costs of additional beds.

(4)

Matching funds

section 300x–21 of this titleThe Secretary may grant a waiver under paragraph (1) only if the State agrees, with respect to the costs to be incurred by the State in carrying out the purpose of the waiver, to make available non-Federal contributions in cash toward such costs in an amount equal to not less than $1 for each $1 of Federal funds provided under .

(5)

Date certain for acting upon request

The Secretary shall act upon a request for a waiver under paragraph (1) not later than 120 days after the date on which the request is made.

July 1, 1944, ch. 373 Pub. L. 102–321, title II, § 202106 Stat. 397 Pub. L. 114–255, div. B, title VIII, § 8002(h)130 Stat. 1230 Pub. L. 117–328, div. FF, title I, § 1241(a)(7)136 Stat. 5677 (, title XIX, § 1931, as added , , ; amended , , ; , , .)

Editorial Notes

References in Text

Section 300x–1a of this titlePub. L. 102–321, title II, § 201(2)106 Stat. 378 , referred to in subsec. (a)(3), was repealed by , , .

Prior Provisions

section 300y–21 of this titleA prior section 1931 of act , was classified to and subsequently omitted from the Code.

section 300y–10 of this titlePub. L. 99–280Another prior section 1931 of act , was classified to prior to repeal by .

Amendments

Pub. L. 117–3282022—Subsec. (b)(2). substituted “substance use disorders” for “substance abuse”.

Pub. L. 114–2552016—Subsec. (b)(1). substituted “substance use disorders” for “substance abuse”.