7 U.S.C. § 2009f | Grants to States

(a)

Simple grants

(1)

Mandatory grant

section 2009d(f) of this titleThe Secretary shall make a grant to any eligible State for any fiscal year for which the State requests a grant under this section in an amount equal to 5 percent of the total amount allocated for the State under .

(2)

Permissive grant

section 2009g of this title section 2009d(f) of this titleBefore July 15 of each fiscal year, the Secretary may make a grant to any State to defray the cost of any subsidy associated with a guarantee provided by an eligible public entity of the State under in an amount that does not exceed 5 percent of the total amount allocated for the State under .

(3)

Source of funds

section 2009d(c) of this titleThe Secretary shall make grants to a State under paragraphs (1) and (2) from amounts allocated for the State in the accounts specified in , by reducing each such allocated amount by the same percentage.

(b)

Matching grants

(1)

In general

section 2009d(g) of this titleSubject to paragraph (2), the Secretary shall make a grant to any eligible State for any fiscal year for which the State requests a grant under this section in an amount equal to 5 percent of the amount allocated for the State for the fiscal year under .

(2)

Eligibility

A State shall be eligible for a grant under paragraph (1) if the State makes commitments to the Secretary to—

(A)

expend from non-Federal sources in accordance with subsection (c) an amount that is not less than 200 percent of the amount of the grant; and

(B)

maintain the amounts paid to the State under this subsection and the amount referred to in subparagraph (A) in an account separate from all other State funds until expended in accordance with subsection (c).

(3)

Source of funds

section 2009d(c) of this titleIf the Secretary makes a grant under paragraph (1) before July 15 of the fiscal year, the grant shall be made from amounts allocated for the State in the accounts specified in for the fiscal year, by reducing each allocated amount by the same percentage.

(c)

Use of funds

section 2009d(d) of this title section 2009c of this titleA State to which funds are provided under this section shall use the funds in rural areas for any activity authorized under the authorities described in in accordance with the State strategic plan referred to in .

(d)

Maintenance of effort

The State shall provide assurances to the Secretary that funds provided to the State under this section will be used only to supplement, not to supplant, the amount of Federal, State, and local funds otherwise expended for rural development assistance in the State.

(e)

Appeals

The Secretary shall provide to a State an opportunity to appeal any action taken with respect to the State under this section.

(f)

Administrative costs

Federal funds shall not be used for any administrative costs incurred by a State in carrying out this subchapter.

(g)

Expenditure of funds by State

(1)

In general

Payments to a State from a grant under this section for a fiscal year shall be obligated by the State in the fiscal year or in the succeeding fiscal year. A State shall obligate funds under this section to provide assistance to rural areas.

(2)

Failure to obligate

If a State fails to obligate payments in accordance with paragraph (1), the Secretary shall make an equal reduction in the amount of payments provided to the State under this section for the immediately succeeding fiscal year.

(3)

Noncompliance

(A)

Review

The Secretary shall review and monitor State compliance with this section.

(B)

Penalty

If the Secretary finds that there has been misuse of grant funds provided under this section, or noncompliance with any of the terms and conditions of a grant, after reasonable notice and opportunity for a hearing—

(i)

the Secretary shall notify the State of the finding; and

(ii)

no further payments to the State shall be made with respect to the programs funded under this section until the Secretary is satisfied that there is no longer any failure to comply or that the noncompliance will be promptly corrected.

(C)

Other sanctions

In the case of a finding of noncompliance made pursuant to subparagraph (B), the Secretary may, in addition to, or in lieu of, imposing the sanctions described in subparagraph (B), impose other appropriate sanctions, including recoupment of money improperly expended for purposes prohibited or not authorized by this section and disqualification from the receipt of financial assistance under this section.

(h)

No entitlement to contract, grant, or assistance

Nothing in this subchapter—

(1)

entitles any person to assistance or a contract or grant; or

(2)

limits the right of a State to impose additional limitations or conditions on assistance or a contract or grant under this section.

Pub. L. 87–128, title III, § 381G Pub. L. 104–127, title VII, § 761Apr. 4, 1996110 Stat. 1143 Pub. L. 107–171, title VI, § 6026(c)May 13, 2002116 Stat. 372(, as added , , ; amended , , .)

Editorial Notes

Amendments

Pub. L. 107–171, § 6026(c)(1)section 2009d(f) of this title section 2009d(g) of this title2002—Subsec. (a)(1), (2). , substituted “” for “”.

Pub. L. 107–171, § 6026(c)(2)section 2009d(g) of this title section 2009d(h) of this titleSubsec. (b)(1). , substituted “” for “”.