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Title 42 — The Public Health and WelfareRelease 119-73

§300r Grants for construction or modernization proj­ects

Title 42 › Chapter CHAPTER 6A— - PUBLIC HEALTH SERVICE › Subchapter SUBCHAPTER XIV— - HEALTH RESOURCES DEVELOPMENT › Part Part B— - Project Grants › § 300r

Last updated Apr 6, 2026|Official source

Summary

The Secretary can give money to build or update medical facilities that either fix or prevent serious safety hazards under federal, state, or local fire, building, or life-safety rules, or help a facility meet state or voluntary licensing or accreditation rules. Grants can go to a State or parts of a State (for example, a city, county, hospital district, or public corporation) for facilities they run. Nonprofit private hospitals can get grants for their own facilities only if the Secretary finds they give about the same community service and treat a similar share of patients who cannot pay, and if losing the grant would disrupt care for low-income people. Normally a grant may pay up to 75% of project costs, but projects in Secretary-designated urban or rural poverty areas may get up to 100%. The law authorized $40,000,000 for the year ending September 30, 1980, $50,000,000 for the year ending September 30, 1981, and $50,000,000 for the year ending September 30, 1982. Money available for obligation in the year ending September 30, 1979, under the earlier version of this rule stays available in the next fiscal year. The Secretary can also fund public and nonprofit projects to build or update outpatient centers that are separate from hospitals and serve medically underserved groups, or to convert buildings into outpatient or long-term care centers for those groups. Those grants may cover up to 80% of project costs, or up to 100% if the project is in a Secretary-designated urban or rural poverty area. The law authorized $15,000,000 for the year ending September 30, 1981, and $15,000,000 for the year ending September 30, 1982.

Full Legal Text

Title 42, §300r

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

(a)(1)(A)The Secretary may make grants for construction or modernization projects designed to—
(i)eliminate or prevent in medical facilities imminent safety hazards as defined by Federal, State, or local fire, building, or life safety codes or regulations, or
(ii)avoid noncompliance by medical facilities with State or voluntary licensure or accreditation standards.
(B)A grant under subparagraph (A) may only be made to—
(i)a State or political subdivision of a State, including any city, town, county, borough, hospital district authority, or public or quasi-public corporation, for any medical facility owned or operated by the State or political subdivision; and
(ii)a nonprofit private entity for any medical facility owned or operated by the entity but only if the Secretary determines—
(I)the level of community service provided by the facility and the proportion of its patients who are unable to pay for services rendered in the facility is similar to such level and proportion in a medical facility of a State or political subdivision, and
(II)that without a grant under subparagraph (A) there would be a disruption of the provision of health care to low-income individuals.
(2)The amount of any grant under paragraph (1) may not exceed 75 per centum of the cost of the project for which the grant is made unless the project is located in an area determined by the Secretary to be an urban or rural poverty area, in which case the grant may cover up to 100 per centum of such costs.
(3)There are authorized to be appropriated for grants under paragraph (1) $40,000,000 for the fiscal year ending September 30, 1980, $50,000,000 for the fiscal year ending September 30, 1981, and $50,000,000 for the fiscal year ending September 30, 1982. Funds available for obligation under this subsection (as in effect before October 4, 1979) in the fiscal year ending September 30, 1979, shall remain available for obligation under this subsection in the succeeding fiscal year.
(b)(1)The Secretary may make grants to public and nonprofit private entities for projects for (A) construction or modernization of outpatient medical facilities which are located apart from hospitals and which will provide services for medically underserved populations, and (B) conversion of existing facilities into outpatient medical facilities or facilities for long-term care to provide services for such populations.
(2)The amount of any grant under paragraph (1) may not exceed 80 per centum of the cost of the project for which the grant is made unless the project is located in an area determined by the Secretary to be an urban or rural poverty area, in which case the grant may cover up to 100 per centum of such costs.
(3)There are authorized to be appropriated for grants under paragraph (1) $15,000,000 for the fiscal year ending September 30, 1981, and $15,000,000 for the fiscal year ending September 30, 1982.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 1610 of act July 1, 1944, ch. 373, title XVI, as added Jan. 4, 1975, Pub. L. 93–641, § 4, 88 Stat. 2262; amended Aug. 1, 1977, Pub. L. 95–83, title I, § 106(w), 91 Stat. 385, was classified to section 300p of this title, prior to repeal by Pub. L. 96–79, title II, § 201(a), Oct. 4, 1979, 93 Stat. 630.

Amendments

1979—Subsec. (a). Pub. L. 96–79, § 201(c), incorporated existing provisions in par. (1); inserted in subpar. (A) in cls. (i) and (ii) the phrases “in medical facilities” and “by medical facilities”; substituted in subpar. (B)(i) “for any medical facility owned or operated by the State or political subdivision” for “for a project described in the preceding sentence for any medical facility owned or operated by it”; added cl. (a)(1)(B)(ii); redesignated former subsec. (c) as par. (2); and added par. (3). Subsec. (b). Pub. L. 96–79, § 201(c), inserted provisions respecting projects for medically underserved populations and struck out provisions respecting criteria for approval of applications under former section 300o–3 of this title. Subsec. (c). Pub. L. 96–79, § 201(c), redesignated subsec. (c) as par. (2) of subsec. (a). Subsec. (d). Pub. L. 96–79, § 201(c), struck out subsec. (d) which related to provisions making available 22 per centum of sums appropriated under former section 300p–3 of this title for subsec. (a) grants, including an additional appropriations authorization of $67,500,000 for such grants for fiscal year ending Sept. 30, 1978. 1977—Subsec. (d). Pub. L. 95–83 authorized additional grant appropriations of $67,500,000 for fiscal year ending Sept. 30, 1978.

Statutory Notes and Related Subsidiaries

Effective Date

of 1979 AmendmentAmendment by Pub. L. 96–79 effective Oct. 1, 1979, see section 204 of Pub. L. 96–79, set out as a note under section 300q of this title.

Reference

Citations & Metadata

Citation

42 U.S.C. § 300r

Title 42 — The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73