§291f — Title 42 The Public Health and Welfare | U.S. Code

§291f Payments for construction or modernization

Title 42 › Chapter CHAPTER 6A— - PUBLIC HEALTH SERVICE › Subchapter SUBCHAPTER IV— - CONSTRUCTION AND MODERNIZATION OF HOSPITALS AND OTHER MEDICAL FACILITIES › Part Part A— - Grants and Loans for Construction and Modernization of Hospitals and Other Medical Facilities › § 291f

Last updated Apr 6, 2026|Official source

Summary

Pays federal construction or modernization money to a State after the State agency confirms the work or purchases were done under the approved plans. Payments come from the State’s federal allotment unless the State can’t pay the applicant or asks that money go straight to the applicant. The Surgeon General can hold back payments if there is reason to suspect wrongdoing and must give the State notice and a chance for a hearing. Total federal payments for a project cannot be more than the federal share of that project’s construction cost. If a project’s approved cost goes up, extra payments can come from the State’s allotment for the fiscal year when the change is approved. At a State’s request, part of its allotment can pay up to one-half (or a smaller share) of the cost to run the State plan for the year, as the Surgeon General finds necessary, but not more than 4% of the State’s allotments or $100,000, whichever is less. Those administrative payments can be advanced or reimbursed and paid in installments. The State must still spend at least as much state money for administration that year as it did in the fiscal year ending June 30, 1970.

Title 42, §291f

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

(a)Upon certification to the Surgeon General by the State agency, based upon inspection by it, that work has been performed upon a project, or purchases have been made, in accordance with the approved plans and specifications, and that payment of an installment is due to the applicant, such installment shall be paid to the State, from the applicable allotment of such State, except that (1) if the State is not authorized by law to make payments to the applicant, or if the State so requests, the payment shall be made directly to the applicant, (2) if the Surgeon General, after investigation or otherwise, has reason to believe that any act (or failure to act) has occurred requiring action pursuant to section 291g of this title, payment may, after he has given the State agency notice of opportunity for hearing pursuant to such section, be withheld, in whole or in part, pending corrective action or action based on such hearing, and (3) the total of payments under this subsection with respect to such project may not exceed an amount equal to the Federal share of the cost of construction of such project.

(b)In case an amendment to an approved application is approved as provided in section 291e of this title or the estimated cost of a project is revised upward, any additional payment with respect thereto may be made from the applicable allotment of the State for the fiscal year in which such amendment or revision is approved.

(c)(1)At the request of any State, a portion of any allotment or allotments of such State under this part shall be available to pay one-half (or such smaller share as the State may request) of the expenditures found necessary by the Surgeon General for the proper and efficient administration during such year of the State plan approved under this part; except that not more than 4 per centum of the total of the allotments of such State for a year, or $100,000, whichever is less, shall be available for such purpose for such year. Payments of amounts due under this paragraph may be made in advance or by way of reimbursement, and in such installments, as the Surgeon General may determine.

(2)Any amount paid under paragraph (1) of this subsection to any State for any fiscal year shall be paid on condition that there shall be expended from State sources for such year for administration of the State plan approved under this part not less than the total amount expended for such purposes from such sources during the fiscal year ending June 30, 1970.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 291f, act

July 1, 1944, ch. 373, title VI, § 623, as added Aug. 13, 1946, ch. 958, § 2, 60 Stat. 1041; amended

June 19, 1948, ch. 554, 62 Stat. 536; Oct. 25, 1949, ch. 722, § 3(a), 63 Stat. 899, related to State plans, their submission, and their requirements, prior to the general amendment of this subchapter by Pub. L. 88–443. See section 291d of this title. Provisions similar to those comprising subsec. (a) of this section were contained in former section 291h(b), acts

July 1, 1944, ch. 373, title VI, § 625, as added Aug. 13, 1946, ch. 958, § 2, 60 Stat. 1041; amended Oct. 25, 1949, ch. 722, § 3(b), 63 Stat. 899, prior to the general amendment of this subchapter by Pub. L. 88–443.

Amendments

1970—Subsec. (c)(1). Pub. L. 91–296, § 112(1), substituted “4 per centum” for “2 per centum” and “$100,000 for $50,000”. Subsec. (c)(2). Pub. L. 91–296, § 112(2), substituted “

June 30, 1970” for “

June 30, 1964”.

Statutory Notes and Related Subsidiaries

Change of Name

“Secretary of Health and Human Services” substituted for “Secretary of Health, Education, and Welfare” pursuant to section 509(b) of Pub. L. 96–88, which is classified to section 3508(b) of Title 20, Education.

Effective Date

of 1970 Amendment Pub. L. 91–296, title I, § 112,

June 30, 1970, 84 Stat. 340, provided that the amendment made by that section is effective with respect to expenditures under a State plan approved under this subchapter which are made for administration of such plan during any fiscal year beginning after

June 30, 1970.

Executive Documents

Transfer of Functions

Office of Surgeon General abolished by section 3 of Reorg. Plan No. 3 of 1966, eff. June 25, 1966, 31 F.R. 8855, 80 Stat. 1610, and functions thereof transferred to Secretary of Health, Education, and Welfare by section 1 of Reorg. Plan No. 3 of 1966, set out as a note under section 202 of this title. Office of Surgeon General reestablished within the Office of the Assistant Secretary for Health, see Notice of Department of Health and Human Services, Office of the Assistant Secretary for Health, Mar. 30, 1987, 52 F.R. 11754.