Title 31 — Money and FinanceRelease 119-73
§6703 Qualification for payment
Title 31 › Subtitle SUBTITLE V— - GENERAL ASSISTANCE ADMINISTRATION › Chapter CHAPTER 67— - FEDERAL PAYMENTS › § 6703
Summary
Requires eligible local governments to tell the Secretary how they will use grant money and to name which of 18 listed federal programs (for example: DARE, youth sports, gang-resistance, workforce and job-training, Head Start, after‑school and youth homelessness programs, TRIO, literacy, substance‑abuse treatment, and similar programs) the money will support. The Secretary will tell the federal agency that runs each named program so that agency can check the use follows its rules, except that matching‑fund rules do not apply. A local government may also use the money for other activities that fit the law’s purposes; that choice is treated as approved unless the Secretary says within 30 days it is not. To get payments, a local government must meet conditions: set up a trust fund for all payments and spend the funds within a reasonable time under its normal spending rules; keep accounting and audits that follow the Secretary’s guidelines (including the Single Audit Act); let the Secretary and the Comptroller General inspect records after reasonable notice; file required reports; and spend the money only for the allowed purposes. If 25% or more of the pay for a public‑employee job comes from the trust, those workers must receive at least the prevailing rate. Contractors doing construction or repair paid with the grant must get the wage rates set by the Secretary of Labor. The state’s chief executive must be given a chance to review before compliance is established. If a government seriously fails to comply, the Secretary will notify it and, after allowing comment, can stop future payments if the problem is not fixed within 60 days; payments resume only when the Secretary is satisfied the issues are corrected.
Full Legal Text
Title 31, §6703
Money and Finance — Source: USLM XML via OLRC
(a)The Secretary shall issue regulations establishing procedures under which eligible units of general local government are required to provide notice to the Secretary of the units’ proposed use of assistance under this chapter. Subject to subsection (c), the assistance provided shall be used, in amounts determined by the unit, for activities under, or for activities that are substantially similar to an activity under, 1 or more of the following programs and the notice shall identify 1 or more of the following programs for each such use:
(1)The Drug Abuse Resistance Education Program under section 5122 of the Elementary and Secondary Education Act of 1965.
(2)The National Youth Sports Program under section 682 of the Community Services Block Grant Act (Public Law 97–35) as amended by section 205, Public Law 103–252.
(3)The Gang Resistance Education and Training Program under the Act entitled “An Act making appropriations for the Treasury Department, the United States Postal Service, the Executive Office of the President, and certain Independent Agencies, for the fiscal year ending September 30, 1991, and for other purposes”, approved November 5, 1990 (Public Law 101–509).
(4)Programs under title I of the Workforce Innovation and Opportunity Act.
(5)Programs under subtitle C of title I of the National and Community Service Act of 1990 (42 U.S.C. 12571 et seq.), as amended.
(6)Programs under the School to Work Opportunities Act (Public Law 103–239).
(7)Substance Abuse Treatment and Prevention programs authorized under title V or XIX of the Public Health Services Act (43 U.S.C. 201 et seq.).11 See References in Text note below.
(8)Programs under the Head Start Act (42 U.S.C. 9831 et seq.).
(9)Programs under part A or B of chapter 1 of title I of the Elementary and Secondary Education Act of 1965.
(10)The TRIO programs under part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).
(11)Programs under the National Literacy Act of 1991.
(12)Programs under the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.).
(13)The demonstration partnership programs including the community initiative targeted to minority youth under section 203 1 of the Human Services Reauthorization Act of 1994 (Public Law 103–252).
(14)The runaway and homeless youth program and the transitional living program for homeless youth under title III of the Juvenile Justice and Delinquency Prevention Act (Public Law 102–586).
(15)After-school activities for school aged children under the Child Care and Development Block Grant Act (42 U.S.C. 9858 1 et seq.).
(16)The community-based family resource programs under section 401 1 of the Human Services Reauthorization Act of 1994 (Public Law 103–252).
(17)The family violence programs under the Child Abuse Prevention and Treatment Act Amendments of 1984.
(18)Job training programs administered by the Department of Agriculture, the Department of Defense, or the Department of Housing and Urban Development.
(b)Upon receipt of notice under subsection (a) from an eligible unit of general local government, the Secretary shall notify the head of the appropriate Federal agency for each program listed in subsection (a) that is identified in the notice as a program under which an activity will be conducted with assistance under this chapter. The notification shall state that the unit has elected to use some or all of its assistance under this chapter for activities under that program. The head of a Federal agency that receives such a notification shall ensure that such use is in compliance with the laws and regulations applicable to that program, except that any requirement to provide matching funds shall not apply to that use.
(c)(1)In lieu of, or in addition to, use for an activity described in subsection (a) and notice for that use under subsection (a), an eligible unit of general local government may use assistance under this chapter, and shall provide notice of that use to the Secretary under subsection (a), for any other activity that is consistent with 1 or more of the purposes described in section 6701(a)(2).
(2)Notice by a unit of general local government that it intends to use assistance under this chapter for an activity other than an activity described in subsection (a) is deemed to describe an activity that is consistent with 1 or more of the purposes described in section 6701(a)(2) unless the Secretary provides to the unit, within 30 days after receipt of that notice of intent from the unit, written notice (including an explanation) that the use is not consistent with those purposes.
(d)A unit of general local government qualifies for a payment under this chapter for a payment period only after establishing to the satisfaction of the Secretary that—
(1)the government will establish a trust fund in which the government will deposit all payments received under this chapter;
(2)the government will use amounts in the trust fund (including interest) during a reasonable period;
(3)the government will expend the payments so received, in accordance with the laws and procedures that are applicable to the expenditure of revenues of the government;
(4)if at least 25 percent of the pay of individuals employed by the government in a public employee occupation is paid out of the trust fund, individuals in the occupation any part of whose pay is paid out of the trust fund will receive pay at least equal to the prevailing rate of pay for individuals employed in similar public employee occupations by the government;
(5)all laborers and mechanics employed by contractors or subcontractors in the performance of any contract and subcontract for the repair, renovation, alteration, or construction, including painting and decorating, of any building or work that is financed in whole or in part by a grant under this title, shall be paid wages not less than those determined by the Secretary of Labor in accordance with section 3141–3144, 3146, and 3147 of title 40. The Secretary of Labor shall have the authority and functions set forth in Reorganization Plan No. 14 of 1950 (15 FR 3176; 64 Stat. 1267) and section 3145 of title 40;
(6)the government will use accounting, audit, and fiscal procedures that conform to guidelines which shall be prescribed by the Secretary. As applicable, amounts received under this chapter shall be audited in compliance with the Single Audit Act of 1984;
(7)after reasonable notice to the government, the government will make available to the Secretary and the Comptroller General of the United States, with the right to inspect, records the Secretary reasonably requires to review compliance with this chapter or the Comptroller General of the United States reasonably requires to review compliance and operations under section 6718(b);
(8)the government will make reports the Secretary reasonably requires, in addition to the annual reports required under section 6719(b); and
(9)the government will spend the funds only for the purposes set forth in section 6701(a)(2).
(e)A unit of general local government shall give the chief executive officer of the State in which the government is located an opportunity for review and comment before establishing compliance with subsection (d).
(f)(1)If the Secretary decides that a unit of general local government has not complied substantially with subsection (d) or regulations prescribed under subsection (d), the Secretary shall notify the government. The notice shall state that if the government does not take corrective action by the 60th day after the date the government receives the notice, the Secretary will withhold additional payments to the government for the current payment period and later payment periods until the Secretary is satisfied that the government—
(A)has taken the appropriate corrective action; and
(B)will comply with subsection (d) and regulations prescribed under subsection (d).
(2)Before giving notice under paragraph (1), the Secretary shall give the chief executive officer of the unit of general local government reasonable notice and an opportunity for comment.
(3)The Secretary may make a payment to a unit of general local government notified under paragraph (1) only if the Secretary is satisfied that the government—
(A)has taken the appropriate corrective action; and
(B)will comply with subsection (d) and regulations prescribed under subsection (d).
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
The Elementary and Secondary Education Act of 1965, referred to in subsec. (a)(1), (9), is Pub. L. 89–10, Apr. 11, 1965, 79 Stat. 27. Parts A and B of chapter 1 of title I of the Act were classified generally to parts A (§ 2711 et seq.) and B (§ 2741 et seq.) of division 1 of subchapter I of chapter 47 of Title 20, Education, prior to being omitted in the general amendment of Pub. L. 89–10 by Pub. L. 103–382, title I, § 101, Oct. 20, 1994, 108 Stat. 3519. See part A (§ 6311 et seq.) and subpart 3 (§ 6381 et seq.) of part B of subchapter I of chapter 70 of Title 20. section 5122 of the Act was classified to section 3192 of Title 20 prior to being omitted in the general amendment of Pub. L. 89–10 by Pub. L. 103–382. A new section 5122 of the Act, relating to applications for assistance under educational reform programs, was added by Pub. L. 107–110 and was classified to section 7213a of Title 20, prior to repeal by Pub. L. 114–95, title IV, § 4001(b)(1)(A), Dec. 10, 2015, 129 Stat. 1967. section 682 of the Community Services Block Grant Act, referred to in subsec. (a)(2), which was classified to section 9910c of Title 42, The Public Health and Welfare, was omitted in the general amendment of chapter 106 of Title 42, by Pub. L. 105–285, title II, § 201, Oct. 27, 1998, 112 Stat. 2728. A new section 682 of the Act, containing similar subject matter, is classified to section 9923 of Title 42. Public Law 101–509, referred to in subsec. (a)(3), is Pub. L. 101–509, Nov. 5, 1990, 104 Stat. 1389. For complete classification of this Act to the Code, see Tables. The Workforce Innovation and Opportunity Act, referred to in subsec. (a)(4), is Pub. L. 113–128, July 22, 2014, 128 Stat. 1425. Title I of the Act is classified generally to subchapter I (§ 3111 et seq.) of chapter 32 of Title 29, Labor. For complete classification of this Act to the Code, see
Short Title
note set out under section 3101 of Title 29 and Tables. The National and Community Service Act of 1990, referred to in subsec. (a)(5), is Pub. L. 101–610, Nov. 16, 1990, 104 Stat. 3127. Subtitle C of title I of the Act is classified generally to division C (§ 12571 et seq.) of subchapter I of chapter 129 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see
Short Title
note set out under section 12501 of Title 42 and Tables. The School to Work Opportunities Act, referred to in subsec. (a)(6), probably means the School-to-Work Opportunities Act of 1994, Pub. L. 103–239, May 4, 1994, 108 Stat. 568, which is classified principally to chapter 69 (§ 6101 et seq.) of Title 20, Education. For complete classification of this Act to the Code, see
Short Title
note set out under section 6101 of Title 20 and Tables. The Public Health Services Act, referred to in subsec. (a)(7), probably means the Public Health Service Act, act July 1, 1944, ch. 373, 58 Stat. 682. Titles V and XIX of the Act are classified generally to subchapters III–A (§ 290aa et seq.) and XVII (§ 300w et seq.) of chapter 6A of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see
Short Title
note set out under section 201 of Title 42 and Tables. The Head Start Act, referred to in subsec. (a)(8), is subchapter B (§§ 635–657) of chapter 8 of subtitle A of title VI of Pub. L. 97–35, Aug. 13, 1981, 95 Stat. 499, which is classified generally to subchapter II (§ 9831 et seq.) of chapter 105 of Title 42. For complete classification of this Act to the Code, see
Short Title
note set out under section 9801 of Title 42 and Tables. The Higher Education Act of 1965, referred to in subsec. (a)(10), is Pub. L. 89–329, Nov. 8, 1965, 79 Stat. 1219. Part A of title IV of the Act is classified generally to part A (§ 1070 et seq.) of subchapter IV of chapter 28 of Title 20, Education. For complete classification of this Act to the Code, see
Short Title
note set out under section 1001 of Title 20 and Tables. The National Literacy Act of 1991, referred to in subsec. (a)(11), is Pub. L. 102–73, July 25, 1991, 105 Stat. 333, which was repealed by Pub. L. 105–220, title II, § 251(a)(2), Aug. 7, 1998, 112 Stat. 1079. For complete classification of this Act to the Code, see Tables. The Carl D. Perkins Career and Technical Education Act of 2006, referred to in subsec. (a)(12), is Pub. L. 88–210, Dec. 18, 1963, 77 Stat. 403, as amended generally by Pub. L. 109–270, § 1(b), Aug. 12, 2006, 120 Stat. 683, which is classified generally to chapter 44 (§ 2301 et seq.) of Title 20, Education. For complete classification of this Act to the Code, see
Short Title
note set out under section 2301 of Title 20 and Tables. section 203 and 401 of the Human Services Reauthorization Act of 1994 (Public Law 103–252), referred to in subsec. (a)(13), (16), probably mean section 203 and 401 of the Human Services
Amendments
of 1994, Pub. L. 103–252, May 18, 1994, 108 Stat. 654, 666. section 203 of Pub. L. 103–252 amended section 9910 of Title 42, The Public Health and Welfare. section 401 of Pub. L. 103–252 generally amended subchapter III (§ 5116 et seq.) of chapter 67 of Title 42 and repealed section 5106a–1 and 12339 of Title 42. The Juvenile Justice and Delinquency Prevention Act, referred to in subsec. (a)(14), probably means the Juvenile Justice and Delinquency Prevention Act of 1974, Pub. L. 93–415, Sept. 7, 1974, 88 Stat. 1109. Title III of the Act is classified generally to subchapter III (§ 11201 et seq.) of chapter 111 of Title 34, Crime Control and Law
Enforcement
. For complete classification of this Act to the Code, see
Short Title
of 1974 Act note set out under section 10101 of Title 34 and Tables. The Child Care and Development Block Grant Act, referred to in subsec. (a)(15), probably means the Child Care and Development Block Grant Act of 1990, subchapter C (§ 658A et seq.) of chapter 8 of subtitle A of title VI of Pub. L. 97–35, as added by Pub. L. 101–508, title V, § 5082(2), Nov. 5, 1990, 104 Stat. 1388–236, which is classified generally to subchapter II–B (§ 9857 et seq.) of chapter 105 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 9857(a) of Title 42 and Tables. The Child Abuse Prevention and Treatment Act
Amendments
of 1984, referred to in subsec. (a)(17), probably means the Child Abuse
Amendments
of 1984, Pub. L. 98–457, Oct. 9, 1984, 98 Stat. 1749. Title III of the Act, relating to family violence programs, is classified generally to chapter 110 (§ 10401 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see
Short Title
of 1984 Amendment note set out under section 5101 of Title 42 and Tables. Reorganization Plan No. 14 of 1950, referred to in subsec. (d)(5), is set out in the Appendix to Title 5, Government Organization and Employees. The Single Audit Act of 1984, referred to in subsec. (d)(6), is Pub. L. 98–502, Oct. 19, 1984, 98 Stat. 2327, which enacted chapter 75 (§ 7501 et seq.) of this title and provisions set out as notes under section 7501 of this title. For complete classification of this Act to the Code, see
Short Title
of 1984 Amendment note set out under section 7501 of this title and Tables.
Prior Provisions
A prior section 6703, Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1012; Pub. L. 98–185, § 3, Nov. 30, 1983, 97 Stat. 1309, related to State and Local Government Fiscal Assistance Trust Fund, prior to repeal by Pub. L. 99–272, title XIV, § 14001(a)(1), (e), Apr. 7, 1986, 100 Stat. 327, 329, eff. Oct. 18, 1986.
Amendments
2014—Subsec. (a)(4). Pub. L. 113–128 substituted “Programs under title I of the Workforce Innovation and Opportunity Act.” for “Programs under title I of the Workforce Investment Act of 1998.” 2006—Subsec. (a)(12). Pub. L. 109–270 which directed the substitution of “Carl D. Perkins Career and Technical Education Act of 2006” for “Carl D. Perkins Vocational and Applied Technology Education Act”, was executed by making the substitution for “Carl Perkins Vocational Educational and Applied Technology Education Act” to reflect the probable intent of Congress. 2002—Subsec. (d)(5). Pub. L. 107–217 substituted “section 3141–3144, 3146, and 3147 of title 40” for “the Act of
March 3, 1931 (commonly known as the Davis-Bacon Act); as amended (40 U.S.C. 276a–276a–5)” and “section 3145 of title 40” for “section 2 of the Act of
June 1, 1934 (commonly known as the Copeland Anti-Kickback Act), as amended (40 U.S.C. 276c, 48 Stat. 948)”. 1998—Subsec. (a)(4). Pub. L. 105–277, § 101(f) [title VIII, § 405(f)(19)], added par. (4) and struck out former par. (4) which read as follows: “Programs under title II or IV of the Job Training Partnership Act or under title I of the Workforce Investment Act of 1998.” Pub. L. 105–277, § 101(f) [title VIII, § 405(d)(27)], added par. (4) and struck out former par. (4) which read as follows: “Programs under title II or IV of the Job Training Partnership Act (29 U.S.C. 1601 et seq.).” Subsec. (a)(15) to (19). Pub. L. 105–277, § 101(f) [title VIII, § 405(c)(3)], redesignated pars. (16) to (19) as (15) to (18), respectively, and struck out former par. (15) which read as follows: “The family support program under subtitle F of title VII of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11481 et seq.).” 1996—Subsec. (d)(6). Pub. L. 104–316 struck out “after consultation with the Comptroller General of the United States” after “by the Secretary”.
Statutory Notes and Related Subsidiaries
Effective Date
of 2014 AmendmentAmendment by Pub. L. 113–128 effective on the first day of the first full program year after
July 22, 2014 (
July 1, 2015), see section 506 of Pub. L. 113–128, set out as an
Effective Date
note under section 3101 of Title 29, Labor.
Effective Date
of 1998 AmendmentAmendment by section 101(f) [title VIII, § 405(c)(3), (d)(27)] of Pub. L. 105–277 effective Oct. 21, 1998, and amendment by section 101(f) [title VIII, § 405(f)(19)] of Pub. L. 105–277 effective July 1, 2000, see section 101(f) [title VIII, § 405(g)(1), (2)(B)] of Pub. L. 105–277, set out as a note under section 3502 of Title 5, Government Organization and Employees.
Reference
Citations & Metadata
Citation
31 U.S.C. § 6703
Title 31 — Money and Finance
Last Updated
Apr 6, 2026
Release point: 119-73