Title 40Public Buildings, Property, and WorksRelease 119-73

§14502 Demonstration health projects

Title 40 › Subtitle SUBTITLE IV— - APPALACHIAN REGIONAL DEVELOPMENT › Chapter CHAPTER 145— - SPECIAL APPALACHIAN PROGRAMS › Subchapter SUBCHAPTER I— - PROGRAMS › § 14502

Last updated Apr 6, 2026|Official source

Summary

Lets the U.S. Health and Human Services Secretary give grants to plan, build, equip, and run multi-county health, nutrition, and child care demonstration projects in the Appalachian region. These projects can include hospitals, regional diagnostic and treatment centers, and other needed services. The Appalachian Regional Commission can get money to run a Health Advisory Committee and to help pay planning costs. Planning grants can pay up to 75% of planning expenses. Construction grants can buy or convert non-profit facilities and pay for initial equipment. Construction or equipment grants can pay up to 80% of costs. Operation grants can pay part of running costs, including start-up and staff training. Operations grants only go to publicly owned or non-profit facilities that are not run for profit, and are normally limited to five years (with one older child-development exception from fiscal year 1979 if no other funds exist). Operation grants normally cover up to 50% of costs, but cover up to 80% in distressed counties and up to 70% in at-risk counties. Federal money for these grants can be used alone or with other federal programs and can be combined to reach the maximum percentages allowed. Grants must come only from money set aside for this program and do not count toward other state funding formulas. Projects should also focus on early detection and treatment of coal-mining illnesses like black lung.

Full Legal Text

Title 40, §14502

Public Buildings, Property, and Works — Source: USLM XML via OLRC

(a)To demonstrate the value of adequate health facilities and services to the economic development of the Appalachian region, the Secretary of Health and Human Services may make grants for the planning, construction, equipment, and operation of multi-county demonstration health, nutrition, and child care projects, including hospitals, regional health diagnostic and treatment centers, and other facilities and services necessary for the purposes of this section.
(b)(1)The Secretary may provide amounts to the Appalachian Regional Commission for the support of its Health Advisory Committee and may make grants for expenses of planning necessary for the development and operation of demonstration health projects for the region.
(2)The amount of a grant under this section for planning shall not be more than 75 percent of expenses.
(3)The federal contribution may be provided entirely from amounts authorized under this section or in combination with amounts provided under other federal or federal grant programs.
(4)Notwithstanding any provision of law limiting the federal share in those other programs, amounts appropriated to carry out this section may be used to increase the federal share to the maximum percentage cost of a grant authorized by this subsection.
(c)(1)Grants under this section for construction may also be used for—
(A)the acquisition of privately owned facilities—
(i)not operated for profit; or
(ii)previously operated for profit if the Commission finds that health services would not otherwise be provided in the area served by the facility if the acquisition is not made; and
(B)initial equipment.
(2)Grants under this section for construction shall be made in accordance with section 14523 of this title and shall not be incompatible with the applicable provisions of title VI of the Public Health Service Act (42 U.S.C. 291 et seq.), the Developmental Disabilities Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15001 et seq.), and other laws authorizing grants for the construction of health-related facilities, without regard to any provisions in those laws relating to appropriation authorization ceilings or to allotments among the States.
(3)A grant for the construction or equipment of any component of a demonstration health project shall not be more than 80 percent of the cost.
(4)The federal contribution may be provided entirely from amounts authorized under this section or in combination with amounts provided under other federal grant programs for the construction or equipment of health-related facilities.
(5)Notwithstanding any provision of law limiting the federal share in those other programs, amounts authorized under this section may be used to increase federal grants for component facilities of a demonstration health project to a maximum of 80 percent of the cost of the facilities.
(d)(1)A grant for the operation of a demonstration health project shall not be made—
(A)unless the facility is publicly owned, or owned by a public or private nonprofit organization, and is not operated for profit;
(B)after five years following the commencement of the initial grant for operation of the project, except that child development demonstrations assisted under this section during fiscal year 1979 may be approved under section 14322 of this title for continued support beyond that period, on request of the State, if the Commission finds that no federal, state, or local amounts are available to continue the project; and
(C)unless the Secretary of Health and Human Services is satisfied that the operation of the project will be conducted under efficient management practices designed to obviate operating deficits.
(2)Grants under this section for the operation (including initial operating amounts and operating deficits, which include the cost of attracting, training, and retaining qualified personnel) of a demonstration health project, whether or not constructed with amounts authorized to be appropriated by this section, may be made for up to—
(A)50 percent of the cost of that operation;
(B)in the case of a project to be carried out in a county for which a distressed county designation is in effect under section 14526, 80 percent of the cost of that operation; or
(C)in the case of a project to be carried out for a county for which an at-risk county designation is in effect under section 14526, 70 percent of the cost of that operation.
(3)The federal contribution may be provided entirely from amounts appropriated to carry out this section or in combination with amounts provided under other federal grant programs for the operation of health related facilities and the provision of health and child development services, including parts A and B of title IV and title XX of the Social Security Act (42 U.S.C. 601 et seq., 620 et seq., 1397 et seq.).
(4)Notwithstanding any provision of law limiting the federal share in those other programs, amounts appropriated to carry out this section may be used to increase federal grants for operating components of a demonstration health project to the maximum percentage cost of a grant authorized by this subsection.
(5)Notwithstanding any provision of the Social Security Act (42 U.S.C. 301 et seq.) requiring assistance or services on a statewide basis, a State providing assistance or services under a federal grant program described in paragraph (2) in any area of the region approved by the Commission is deemed to be meeting that requirement.
(e)Grants under this section—
(1)shall be made only out of amounts specifically appropriated for the purpose of carrying out this subtitle; and
(2)shall not be taken into account in computing allotments among the States under any other law.
(f)(1)Subject to paragraphs (2) and (3), the Commission may contribute not more than 50 percent of any project cost eligible for financial assistance under this section from amounts appropriated to carry out this subtitle.
(2)The maximum Commission contribution for a project to be carried out in a county for which a distressed county designation is in effect under section 14526 of this title may be increased to the lesser of—
(A)80 percent; or
(B)the maximum federal contribution percentage authorized by this section.
(3)The maximum Commission contribution for a project to be carried out in a county for which an at-risk county designation is in effect under section 14526 may be increased to the lesser of—
(A)70 percent; or
(B)the maximum Federal contribution percentage authorized by this section.
(g)To provide for the further development of the Appalachian region’s human resources, grants under this section shall give special emphasis to programs and research for the early detection, diagnosis, and treatment of occupational diseases arising from coal mining, such as black lung.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 14502(a)40 App.:202(a) (1st sentence).Pub. L. 89–4, title II, § 202(a)–(e), Mar. 9, 1965, 79 Stat. 11; Pub. L. 90–103, title I, § 107, Oct. 11, 1967, 81 Stat. 259; Pub. L. 91–123, title I, § 104, Nov. 25, 1969, 83 Stat. 214; Pub. L. 92–65, title II, § 206, Aug. 5, 1971, 85 Stat. 169; Pub. L. 94–188, title I, § 111, Dec. 31, 1975, 89 Stat. 1081; Pub. L. 95–193, § 1, Nov. 18, 1977, 91 Stat. 1412; Pub. L. 96–88, title V, § 509(b), Oct. 17, 1979, 93 Stat. 695; Pub. L. 96–545, § 2, Dec. 18, 1980, 94 Stat. 3215; Pub. L. 105–393, title II, § 207(a), (c), Nov. 13, 1998, 112 Stat. 3620; Pub. L. 107–149, § 13(c), (d), Mar. 12, 2002, 116 Stat. 71. 14502(b)40 App.:202(d). 14502(c)(1), (2)40 App.:202(a) (2d sentence). 14502(c)(3)– (5)40 App.:202(b). 14502(d)(1)40 App.:202(c) (5th–last sentences). 14502(d)(2), (3)40 App.:202(c) (1st, 2d sentences). 14502(d)(4)40 App.:202(c) (4th sentence). 14502(d)(5)40 App.:202(c) (3d sentence). 14502(e)40 App.:202(a) (last sentence). 14502(f)40 App.:202(f).Pub. L. 89–4, title II, § 202(f), as added Pub. L. 105–393, title II, § 207(b), Nov. 13, 1998, 112 Stat. 3620. 14502(g)40 App.:202(e). In subsection (c)(1)(A)(ii), the words “where the acquisition of such facilities is the most cost-effective means for providing increased health services” are omitted as unnecessary because of the more narrow requirement that the Commission find that but for the acquisition of the facility, the health services would not be otherwise provided in the area served by the facility. In subsection (f)(1), the words “After September 30, 1998” are omitted as obsolete.

Editorial Notes

References in Text

The Public Health Service Act, referred to in subsec. (c)(2), is act July 1, 1944, ch. 373, 58 Stat. 682. Title VI of the Act is classified generally to subchapter IV (§ 291 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 Developmental Disabilities Assistance and Bill of Rights Act of 2000, referred to in subsec. (c)(2), is Pub. L. 106–402, Oct. 30, 2000, 114 Stat. 1677, which is classified principally to chapter 144 (§ 15001 et seq.) 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 15001 of Title 42 and Tables. The Social Security Act, referred to in subsec. (d)(3), (5), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, which is classified generally to chapter 7 (§ 301 et seq.) of Title 42, The Public Health and Welfare. Parts A and B of title IV of the Act are classified generally to parts A (§ 601 et seq.) and B (§ 620 et seq.) of subchapter IV of chapter 7 of Title 42. Title XX of the Act is classified generally to subchapter XX (§ 1397 et seq.) of chapter 7 of Title 42. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

Amendments

2008—Subsec. (d)(2). Pub. L. 110–371, § 2(b)(1), added par. (2) and struck out heading and text of former par. (2). Text read as follows: “Grants under this section for the operation (including initial operating amounts and operating deficits, which include the cost of attracting, training, and retaining qualified personnel) of a demonstration health project, whether or not constructed with amounts authorized by this section, may be made for up to 50 percent of the cost of that operation (or 80 percent of the cost of that operation for a project to be carried out in a county for which a distressed county designation is in effect under section 14526 of this title).” Subsec. (f)(1). Pub. L. 110–371, § 2(b)(2)(A), substituted “paragraphs (2) and (3)” for “paragraph (2)”. Subsec. (f)(3). Pub. L. 110–371, § 2(b)(2)(B), added par. (3).

Statutory Notes and Related Subsidiaries

Termination of Advisory CommitteeAdvisory committees established after Jan. 5, 1973, to terminate not later than the expiration of the 2-year period beginning on the date of their establishment, unless, in the case of a committee established by the President or an officer of the Federal Government, such committee is renewed by appropriate action prior to the expiration of such 2-year period, or in the case of a committee established by the Congress, its duration is otherwise provided by law. See section 1013 of Title 5, Government Organization and Employees.

Reference

Citations & Metadata

Citation

40 U.S.C. § 14502

Title 40Public Buildings, Property, and Works

Last Updated

Apr 6, 2026

Release point: 119-73