Title 42The Public Health and WelfareRelease 119-73

§4766 Distribution of grants

Title 42 › Chapter CHAPTER 62— - INTERGOVERNMENTAL PERSONNEL PROGRAM › Subchapter SUBCHAPTER IV— - GENERAL PROVISIONS › § 4766

Last updated Apr 6, 2026|Official source

Summary

The Office must set aside 20% of the grant money to try to spread funds fairly among the States and between State and local governments. It will look at things like how many people live there, how many employees are affected, how urgent the projects are, how much help is needed, and which places can use the money well. The other 80% is split among the States by a formula that weighs population and the number of State and local government employees. Each State’s share is then split between the State and its local governments by a formula that looks at employee counts and government spending. The Office decides which employee types and spending to count. Except for the District of Columbia, Puerto Rico, Guam, American Samoa, and the Virgin Islands, at least 50% of each State’s share must go to local governments. If the Office thinks some of the money in a State or for State/local use will not be used, it can move those funds to meet other needs in that State on dates it sets, or reallocate unused State amounts to other States using the same formula while cutting any amounts that would exceed a State’s estimated need and redistributing those cuts. For these rules, “State” means the 50 States, the District of Columbia, Puerto Rico, Guam, American Samoa, and the Virgin Islands. No State may receive more than 12.5% of the total annual grant appropriation in one fiscal year.

Full Legal Text

Title 42, §4766

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

(a)The Office shall allocate 20 per centum of the total amount available for grants under this chapter in such manner as will most nearly provide an equitable distribution of the grants among States and between State and local governments, taking into consideration such factors as the size of the population, number of employees affected, the urgency of the programs or projects, the need for funds to carry out the purposes of this chapter, and the potential of the governmental jurisdictions concerned to use the funds most effectively.
(b)(1)The Office shall allocate 80 per centum of the total amount available for grants under this chapter among the States on a weighted formula taking into consideration such factors as the size of population and the number of State and local government employees affected.
(2)The amount allocated for each State under paragraph (1) of this subsection shall be further allocated by the Office to meet the needs of both the State government and the local governments within the State on a weighted formula taking into consideration such factors as the number of State and local government employees and the amount of State and local government expenditures. The Office shall determine the categories of employees and expenditures to be included or excluded, as the case may be, in the number of employees and amount of expenditures. The minimum allocation for meeting needs of local governments in each State (other than the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, and the Virgin Islands) shall be 50 per centum of the amount allocated for the State under paragraph (1) of this subsection.
(3)The amount of any allocation under paragraph (2) of this subsection which the Office determines, on the basis of information available to it, will not be used to meet needs for which allocated shall be available for use to meet the needs of the State government or local governments in that State, as the case may be, on such date or dates as the Office may fix.
(4)The amount allocated for any State under paragraph (1) of this subsection which the Office determines, on the basis of information available to it, will not be used shall be available for reallocation by the Office from time to time, on such date or dates as it may fix, among other States with respect to which such a determination has not been made, in accordance with the formula set forth in paragraph (1) of this subsection, but with such amount for any of such other States being reduced to the extent it exceeds the sum the Office estimates said State needs and will be able to use; and the total of such reductions shall be similarly reallocated among the States whose proportionate amounts were not so reduced.
(5)For the purposes of this subsection, “State” means the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, and the Virgin Islands.
(c)Notwithstanding the other provisions of this section, the total of the payments from the appropriations for any fiscal year under this chapter made with respect to programs or projects in any one State may not exceed an amount equal to 12½ per centum of such appropriation.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsecs. (a), (b)(1), and (c), means the provisions of subchapters I, II, III, and IV of this chapter. See section 4761 of this title.

Amendments

1978—Subsec. (b)(2), (5). Pub. L. 95–454 inserted references to Commonwealth of Puerto Rico, Guam, American Samoa, and the Virgin Islands.

Statutory Notes and Related Subsidiaries

Effective Date

of 1978 AmendmentAmendment by Pub. L. 95–454 effective 90 days after Oct. 13, 1978, see section 907 of Pub. L. 95–454, set out as a note under section 1101 of Title 5, Government Organization and Employees.

Executive Documents

Transfer of Functions

“Office”, meaning Office of Personnel Management, substituted for “Commission”, meaning Civil Service Commission, in subsecs. (a) and (b), pursuant to Reorg. Plan No. 2 of 1978, § 102, 43 F.R. 36037, 92 Stat. 3783, set out under section 1101 of Title 5, Government Organization and Employees, which transferred functions vested by statute in Civil Service Commission and Chairman thereof to Director of Office of Personnel Management (except as otherwise specified), effective Jan. 1, 1979, as provided by section 1–102 of Ex. Ord. No. 12107, Dec. 28, 1978, 44 F.R. 1055, set out under section 1101 of Title 5.

Reference

Citations & Metadata

Citation

42 U.S.C. § 4766

Title 42The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73