Title 42 — The Public Health and WelfareRelease 119-73

§291j–2 Allocation among States

Title 42 › Chapter CHAPTER 6A— - PUBLIC HEALTH SERVICE › Subchapter SUBCHAPTER IV— - CONSTRUCTION AND MODERNIZATION OF HOSPITALS AND OTHER MEDICAL FACILITIES › Part Part B— - Loan Guarantees and Loans for Modernization and Construction of Hospitals and Other Medical Facilities › § 291j–2

Last updated Apr 6, 2026|Official source

Summary

Each year the Secretary must split the total loan money for this program among the states. The split is based on each state’s share of the population, its financial need, and how much it needs new or modernized facilities. Money given or moved to a state for a particular year cannot be counted again for a later year until the time period for using it has ended. If a state’s allotment for a year that ended before July 1, 1973 was not spent by year end, that money stays available for the next two fiscal years and is extra to whatever the state gets in those years. With the state’s OK, unused money after the first of those two years can be reallotted to other states; money reallotted this way stays available until the end of the second year. Also, the allotments for the year ending June 30, 1971 and the next year may be used to guarantee loans for building or modernizing nonprofit private hospitals or similar health facilities if work did not start before January 1, 1968 and the state and the Secretary agree the project cannot be finished or kept running without the guarantee. No state may use this special rule for more than two projects.

Full Legal Text

Title 42, §291j–2

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

(a)For each fiscal year, the total amount of principal of loans to nonprofit private agencies which may be guaranteed or loans to public agencies which may be directly made under this part shall be allotted by the Secretary among the States, in accordance with regulations, on the basis of each State’s relative population, financial need, need for construction of the facilities referred to in section 291j–1(a) of this title, and need for modernization of such facilities.

(b)Any amount allotted under subsection (a) to a State for a fiscal year ending before July 1, 1973, and remaining unobligated at the end of such year shall remain available to such State, for the purpose for which made, for the next two fiscal years (and for such years only), and any such amount shall be in addition to the amounts allotted to such State for such purpose for each of such next two fiscal years; except that, with the consent of any such State, any such amount remaining unobligated at the end of the first of such next fiscal year may be reallotted (on such basis as the Secretary deems equitable and consistent with the purposes of this subchapter) to other States which have need therefor. Any amounts so reallotted to a State shall be available for the purposes for which made until the close of the second such next two fiscal years and shall be in addition to the amount allotted and available to such State for the same period.

(c)Any amount allotted or reallotted to a State under this section for a fiscal year shall not, until the expiration of the period during which it is available for obligation, be considered as available for allotment for a subsequent fiscal year.

(d)The allotments of any State under subsection (a) for the fiscal year ending June 30, 1971, and the succeeding fiscal year shall also be available to guarantee loans with respect to any project, for modernization or construction of a nonprofit private hospital or other health facility referred to in section 291j–1(a)(1) of this title, if the modernization or construction of such facility was not commenced earlier than January 1, 1968, and if the State certifies and the Secretary finds that without such guaranteed loan such facility could not be completed and begin to operate or could not continue to operate, but with such guaranteed loan would be able to do so: Provided, That this subsection shall not apply to more than two projects in any one State.

Reference

Citations & Metadata

Citation

42 U.S.C. § 291j–2

Title 42 — The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73