Title 42The Public Health and WelfareRelease 119-73

§1962d–5a Reimbursement to States

Title 42 › Chapter CHAPTER 19B— - WATER RESOURCES PLANNING › Subchapter SUBCHAPTER IV— - MISCELLANEOUS PROVISIONS › § 1962d–5a

Last updated Apr 6, 2026|Official source

Summary

The Secretary of the Army, through the Chief of Engineers, may agree to pay back States or local governments for work they do on federal water projects. The agreements can cover installation costs or lower the non‑Federal share those governments must pay, or both. For any one project, federal payments or credits cannot be more than $5,000,000 or 1 percent of the total project cost, whichever is larger, and actual payments for a project cannot exceed $7,000,000 in any one fiscal year. Each agreement must describe the work, include plans if needed, say how the work will be done, allow the Chief of Engineers to review and inspect the work, explain how payment will be figured, make payment dependent on available appropriations and higher‑priority projects, and apply only to work done after project authorization and after the agreement is signed (no retroactive pay). Agreements expire three years after signing if work has not started. The Chief of Engineers must certify the work was done as agreed before any payment or credit. Special rules apply to beach erosion work that began around August 13, 1968. The United States is not taking on non‑Federal duties and is not obliged to pay if the federal project is not built or is changed. Up to $10,000,000 per fiscal year may be set aside from civil works funds to carry out these reimbursements, except where a specific project already authorizes reimbursement.

Full Legal Text

Title 42, §1962d–5a

The Public Health and Welfare — Source: USLM XML via OLRC

(a)The Secretary of the Army, acting through the Chief of Engineers, may, when he determines it to be in the public interest, enter into agreements providing for reimbursement to States or political subdivisions thereof for work to be performed by such non-Federal public bodies at water resources development projects authorized for construction under the Secretary of the Army and the supervision of the Chief of Engineers. Such agreements may provide for reimbursement of installation costs incurred by such entities or an equivalent reduction in the contributions they would otherwise be required to make, or in appropriate cases, for a combination thereof. The amount of Federal reimbursement, including reductions in contributions, for a single project shall not exceed $5,000,000 or 1 percent of the total project cost, whichever is greater; except that the amount of actual Federal reimbursement, including reductions in contributions, for such project may not exceed $7,000,000 in any fiscal year.
(b)Agreements entered into pursuant to this section shall (1) fully describe the work to be accomplished by the non-Federal public body, and be accompanied by an engineering plan if necessary therefor; (2) specify the manner in which such work shall be carried out; (3) provide for necessary review of design and plans, and inspection of the work by the Chief of Engineers or his designee; (4) state the basis on which the amount of reimbursement shall be determined; (5) state that such reimbursement shall be dependent upon the appropriation of funds applicable thereto or funds available therefor, and shall not take precedence over other pending projects of higher priority for improvements; and (6) specify that reimbursement or credit for non-Federal installation expenditures shall apply only to work undertaken on Federal projects after project authorization and execution of the agreement, and does not apply retroactively to past non-Federal work. Each such agreement shall expire three years after the date on which it is executed if the work to be undertaken by the non-Federal public body has not commenced before the expiration of that period. The time allowed for completion of the work will be determined by the Secretary of the Army, acting through the Chief of Engineers, and stated in the agreement.
(c)No reimbursement shall be made, and no expenditure shall be credited, pursuant to this section, unless and until the Chief of Engineers or his designee, has certified that the work for which reimbursement or credit is requested has been performed in accordance with the agreement.
(d)Reimbursement for work commenced by non-Federal public bodies no later than one year after August 13, 1968, to carry out or assist in carrying out projects for beach erosion control, may be made in accordance with the provisions of section 426f of title 33. Reimbursement for such work may, as an alternative, be made in accordance with the provisions of this section, provided that agreement required herein shall have been executed prior to commencement of the work. Expenditures for projects for beach erosion control commenced by non-Federal public bodies subsequent to one year after August 13, 1968, may be reimbursed by the Secretary of the Army, acting through the Chief of Engineers, only in accordance with the provisions of this section.
(e)This section shall not be construed (1) as authorizing the United States to assume any responsibilities placed upon a non-Federal body by the conditions of project authorization, or (2) as committing the United States to reimburse non-Federal interests if the Federal project is not undertaken or is modified so as to make the work performed by the non-Federal Public body no longer applicable.
(f)The Secretary of the Army is authorized to allot from any appropriations hereafter made for civil works, not to exceed $10,000,000 for any one fiscal year to carry out the provisions of this section. This limitation does not include specific project authorizations providing for reimbursement.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Section was enacted as part of the Flood Control Act of 1968, and not as part of the Water Resources Planning Act which comprises this chapter.

Amendments

2007—Subsec. (a). Pub. L. 110–161, which directed the substitution of “$7,000,000” for “$5,000,000” in last sentence, was executed by making the substitution for “$5,000,000” the second place it appeared, to reflect the probable intent of Congress. 1996—Subsec. (a). Pub. L. 104–303, in last sentence, substituted “$5,000,000” for “$3,000,000” before “or 1 percent” and “any fiscal year.” for “any fiscal year..” 1988—Subsec. (a). Pub. L. 100–676 inserted before period at end “or 1 percent of the total project cost, whichever is greater; except that the amount of actual Federal reimbursement, including reductions in contributions, for such project may not exceed $5,000,000 in any fiscal year.” 1986—Subsec. (a). Pub. L. 99–662 substituted “$3,000,000” for “$1,000,000”.

Reference

Citations & Metadata

Citation

42 U.S.C. § 1962d–5a

Title 42The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73