§6701 Payments to local governments

Summary

The Secretary must pay each qualifying unit of general local government the amounts allocated to it from the Local Government Fiscal Assistance Fund under section 6702. The money must be used for programs that prevent crime through education, substance abuse treatment, or job programs. Payments must be made by the later of 90 days after the amount is available or the first day of the payment period, but only after the unit gives the assurances required by section 6703(d). The Secretary must fix any past overpayments or underpayments, but can only make those changes if the need is found or the unit asks within one year after the payment period ends. The Secretary may keep up to 2 percent of a State’s total for a payment period to cover needed adjustments. Any amount not spent within one year must be repaid to the Secretary by no later than 15 months after receipt; unpaid repayments reduce future payments, and repayments go back into the Local Government Fiscal Assistance Fund. At least 10 percent of the total the unit obligates for contracts and subcontracts must be spent with certain small or minority-serving businesses (unless the unit, after public participation, decides the rule doesn’t apply). Definitions in this part include: small business concern (small business as defined in the Small Business Act), socially and economically disadvantaged individuals (as defined in the Small Business Act), and qualified HUBZone small business concern (HUBZone small business as defined in the Small Business Act). Funds cannot replace State or local money. The unit’s prior-year funding level becomes its “base level account,” and grants will be cut dollar for dollar if the unit reduces that base level in the grant year.