US Code

Public Law 119-73 (01/23/2026)

42 U.S.C. § 704

Use of allotment funds

(a)

Covered services

section 703 of this titlesection 705(a) of this titleExcept as otherwise provided under this section, a State may use amounts paid to it under for the provision of health services and related activities (including planning, administration, education, and evaluation and including payment of salaries and other related expenses of National Health Service Corps personnel) consistent with its application transmitted under .

(b)

Restrictions

Amounts described in subsection (a) may not be used for—
(1)
inpatient services, other than inpatient services provided to children with special health care needs or to high-risk pregnant women and infants and such other inpatient services as the Secretary may approve;
(2)
cash payments to intended recipients of health services;
(3)
the purchase or improvement of land, the purchase, construction, or permanent improvement (other than minor remodeling) of any building or other facility, or the purchase of major medical equipment;
(4)
satisfying any requirement for the expenditure of non-Federal funds as a condition for the receipt of Federal funds;
(5)
providing funds for research or training to any entity other than a public or nonprofit private entity; or
(6)
payment for any item or service (other than an emergency item or service) furnished—
(A)
by an individual or entity during the period when such individual or entity is excluded under this subchapter or subchapter XVIII, XIX, or XX pursuant to section 1320a–7, 1320a–7a, 1320c–5, or 1395u(j)(2) of this title, or
(B)
at the medical direction or on the prescription of a physician during the period when the physician is excluded under this subchapter or subchapter XVIII, XIX, or XX pursuant to section 1320a–7, 1320a–7a, 1320c–5, or 1395u(j)(2) of this title and when the person furnishing such item or service knew or had reason to know of the exclusion (after a reasonable time period after reasonable notice has been furnished to the person).
The Secretary may waive the limitation contained in paragraph (3) upon the request of a State if the Secretary finds that there are extraordinary circumstances to justify the waiver and that granting the waiver will assist in carrying out this subchapter.
(c)

Use of portion of funds

A State may use a portion of the amounts described in subsection (a) for the purpose of purchasing technical assistance from public or private entities if the State determines that such assistance is required in developing, implementing, and administering programs funded under this subchapter.

(d)

Limitation on use of funds for administrative costs

section 703 of this titlesection 702(c) of this titleOf the amounts paid to a State under from an allotment for a fiscal year under , not more than 10 percent may be used for administering the funds paid under such section.

Aug. 14, 1935, ch. 531Pub. L. 97–35, title XXI, § 2192(a)95 Stat. 821Pub. L. 99–272, title IX, § 9527(e)100 Stat. 219Pub. L. 100–93, § 8(a)101 Stat. 692Pub. L. 100–203, title IV, § 4118(e)(12)Pub. L. 100–360, title IV, § 411(k)(10)(D)102 Stat. 796Pub. L. 100–485, title VI, § 608(d)(26)(K)(ii)102 Stat. 2422Pub. L. 101–239, title VI, § 6503(a)103 Stat. 2276(, title V, § 504, as added , , ; amended , , ; , , ; , , as added , , , and amended , , ; , (c)(2), (4), , , 2278.)

Editorial Notes

Prior Provisions

act Aug. 14, 1935, ch. 531, title V, § 504Pub. L. 90–248, title III, § 30181 Stat. 922section 2192(a) of Pub. L. 97–35section 702 of this titlesection 2194 of Pub. L. 97–35section 701 of this titleA prior section 704, , as added , , , related to allotments to States for crippled children’s services, prior to the general revision of this subchapter by . See . For effective date, savings, and transitional provisions, see , set out as a note under .

Aug. 14, 1935, ch. 53149 Stat. 63054 Stat. 123160 Stat. 1095Aug. 28, 1950, ch. 80964 Stat. 558Pub. L. 86–778, title VII, § 707(b)(1)(B)74 Stat. 996Pub. L. 89–97, title II, § 201(b)79 Stat. 353Pub. L. 90–248, § 301section 706 of this titleAnother prior section 704, acts , title V, § 504, ; 1940 Reorg. Plan No. III, § 1(a), eff. , 5 F.R. 2107, ; 1946 Reorg. Plan No. 2, § 1, eff. , 11 F.R. 7873, ; , title III, pt. 6, § 361(e), ; , , ; , , , provided for payment to States with an approved plan for maternal and child-health services and computation of amounts, and prescribed general availability of services by , as requisite for payments for any period after , prior to the general amendment of title V of the Social Security Act by , and was covered by former .

act Aug. 14, 1935, ch. 531, title V49 Stat. 631section 712 of this titlePub. L. 90–248, § 301Provisions similar to those comprising former section 704 were contained in section 512 of , , as amended (formerly classified to ), prior to the general amendment and renumbering of title V of act , by .

Amendments

Pub. L. 101–239, § 6503(c)(2)1989—Subsec. (a). , (4), substituted “its application” for “its description of intended expenditures and statement of assurances” and “705(a)” for “705”.

Pub. L. 101–239, § 6503(a)(1), inserted “and including payment of salaries and other related expenses of National Health Service Corps personnel” after “education, and evaluation”.

Pub. L. 101–239, § 6503(a)(2)Subsec. (d). , added subsec. (d).

Pub. L. 100–360Pub. L. 100–485Pub. L. 100–203, § 4118(e)(12)1988—Subsec. (b)(6). , as amended by , added , see 1987 Amendment note below.

Pub. L. 100–203, § 4118(e)(12)Pub. L. 100–360Pub. L. 100–485section 1320a–7 of this titlesection 1320a–7a of this title1987—Subsec. (b)(6). , as added by and amended by , substituted “under this subchapter or subchapter XVIII, XIX, or XX pursuant to section 1320a–7, 1320a–7a, 1320c–5, or 1395u(j)(2) of this title” for “pursuant to or from participation in the program under this subchapter” in subpars. (A) and (B).

Pub. L. 100–93 added par. (6).

Pub. L. 99–2721986—Subsec. (b)(1). substituted “children with special health care needs” for “crippled children”.

Statutory Notes and Related Subsidiaries

Effective Date of 1989 Amendment

section 6503(a) of Pub. L. 101–239Pub. L. 101–239Pub. L. 101–239section 701 of this titleAmendment by applicable to appropriations for fiscal years beginning with fiscal year 1990, and amendment by section 6503(c)(2), (4) of applicable to payments for allotments for fiscal years beginning with fiscal year 1991, see section 6510(a), (b)(1) of , set out as a note under .

Effective Date of 1988 Amendment

Pub. L. 100–485, title VI, § 608(g)102 Stat. 2424

“(1)
lsection 1320a–2 of this titlesection 1320a–2 of this titlellPub. L. 100–360 The amendments made by subsections (a), (b), and (d) [amending this section and sections 1320a–7, 1320a–7a, 1320b–10, 1320c–3, 1395i–2, 1395i–3, 1395, 1395m, 1395r, 1395s, 1395t–1, 1395t–2, 1395u, 1395v, 1395w–2, 1395w–3, 1395x, 1395y, 1395aa to 1395dd, 1395mm, 1395tt, 1395ww, 1395aaa to 1395ccc, 1396a, 1396b, 1396d, 1396i, 1396n, 1396p, 1396r, 1396r–1, 1396r–4, 1396r–5, 1396s, and 1397d of this title, repealing , enacting provisions set out as a note under , and amending provisions set out as notes under sections 1320c–5, 1395b, 1395d, 1395e, 1395i–3, 1395u, 1395, 1395mm, 1395ss, 1395tt, 1395ww, 1396a, 1396d, and 1396r–5 of this title] shall be effective as if included in the enactment of the Medicare Catastrophic Coverage Act of 1988 [].
“(2)
section 1395k of this titlesection 1395k of this title The amendments made by subsection (c) and subsection (f) (other than paragraph (5)) [amending sections 1395cc, 1396b, 1396d, and 1396n of this title, enacting provisions set out as a note under , and amending provisions set out as a note under ] shall take effect on the date of the enactment of this Act [].”
, , , provided that:

section 411 of Pub. L. 100–360Pub. L. 100–360Pub. L. 100–203Pub. L. 100–203section 411(a) of Pub. L. 100–360section 106 of Title 1Except as specifically provided in , amendment by , as it relates to a provision in the Omnibus Budget Reconciliation Act of 1987, , effective as if included in the enactment of that provision in , see , set out as a Reference to OBRA; Effective Date note under , General Provisions.

Effective Date of 1987 Amendment

Pub. L. 100–93section 15(a) of Pub. L. 100–93section 1320a–7 of this titleAmendment by effective at end of fourteen-day period beginning , and inapplicable to administrative proceedings commenced before end of such period, see , set out as a note under .