Title 42The Public Health and WelfareRelease 119-73

§6705 Limitations on use of grants

Title 42 › Chapter CHAPTER 80— - PUBLIC WORKS EMPLOYMENT › Subchapter SUBCHAPTER I— - LOCAL PUBLIC WORKS › § 6705

Last updated Apr 6, 2026|Official source

Summary

Grants under sections 6702, 6703, or 6704 cannot be used for projects whose main purpose is changing a natural waterway (for example, channeling, damming, diverting, or dredging) or building or enlarging a canal, except for canals kept as historic sites. Grant money may not be used to buy land. Grants will not pay for ongoing maintenance. Applicants must promise the Secretary, in the required form, that on-site work can start within 90 days of project approval if money is available. After May 13, 1977, construction, demolition, or site work paid by these grants must be done by contractors chosen by competitive bidding unless the Secretary says otherwise. Contracts must go to the lowest responsible bidder and can only include conditions shown in the advertised specs. Applicants must certify they will not hire contractors who employ people in the U.S. in violation of immigration law. Materials should be U.S.-sourced: unmanufactured items must be mined or produced in the United States, and manufactured items must be made in the United States mostly from U.S. materials, unless the Secretary finds a public-interest, cost, or availability exception. At least 10 percent of each grant must be spent with minority business enterprises unless the Secretary decides otherwise. A minority business enterprise is a business at least 50 percent owned by minority group members (or, if publicly owned, at least 51 percent of the stock); minority groups named include Asian American, Native Hawaiian, Pacific Islanders, African American, Hispanic, Native American, and Alaska Natives. Projects must follow the accessibility standards in the Act approved August 12, 1968, and the Architectural and Transportation Barriers Compliance Board can enforce those standards.

Full Legal Text

Title 42, §6705

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

(a)No grant shall be made under section 6702, 6703, or 6704 of this title for any project having as its principal purpose the channelization, damming, diversion, or dredging of any natural watercourse, or the construction or enlargement of any canal (other than a canal or raceway designated for maintenance as an historic site) and having as its permanent effect the channelization, damming, diversion, or dredging of such watercourse or construction or enlargement of any canal (other than a canal or raceway designated for maintenance as an historic site).
(b)No part of any grant made under section 6702, 6703, or 6704 of this title shall be used for the acquisition of any interest in real property.
(c)Nothing in this chapter shall be construed to authorize the payment of maintenance costs in connection with any projects constructed (in whole or in part) with Federal financial assistance under this chapter.
(d)Grants made by the Secretary under this chapter shall be made only for projects for which the applicant gives satisfactory assurances, in such manner and form as may be required by the Secretary and in accordance with such terms and conditions as the Secretary may prescribe, that, if funds are available, on-site labor can begin within ninety days of project approval.
(e)(1)No part of the construction (including demolition and other site preparation activities), renovation, repair, or other improvement of any public works project for which a grant is made under this chapter after May 13, 1977, shall be performed directly by any department, agency, or instrumentality of any State or local government. Construction of each such project shall be performed by contract awarded by competitive bidding, unless the Secretary shall affirmatively find that, under the circumstances relating to such project, some other method is in the public interest. Contracts for the construction of each project shall be awarded only on the basis of the lowest responsive bid submitted by a bidder meeting established criteria of responsibility. No requirement or obligation shall be imposed as a condition precedent to the award of a contract to such bidder for a project, or to the Secretary’s concurrence in the award of a contract to such bidder, unless such requirement or obligation is otherwise lawful and is specifically set forth in the advertised specifications.
(2)No grant shall be made under this chapter for any local public works project unless the State or local government applying for such grant submits with its application a certification acceptable to the Secretary that no contract will be awarded in connection with such project to any bidder who will employ on such project any alien in the United States in violation of the Immigration and Nationality Act [8 U.S.C. 1101 et seq.] or any other law, convention, or treaty of the United States relating to the immigration, exclusion, deportation, or expulsion of aliens.
(f)(1)(A)Notwithstanding any other provision of law, no grant shall be made under this chapter for any local public works project unless only such unmanufactured articles, materials, and supplies as have been mined or produced in the United States, and only such manufactured articles, materials, and supplies as have been manufactured in the United States substantially all from articles, materials, and supplies mined, produced, or manufactured, as the case may be, in the United States, will be used in such project.
(B)Subparagraph (A) of this paragraph shall not apply in any case where the Secretary determines it to be inconsistent with the public interest, or the cost to be unreasonable, or if articles, materials, or supplies of the class or kind to be used or the articles, materials, or supplies from which they are manufactured are not mined, produced, or manufactured, as the case may be, in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality.
(2)Except to the extent that the Secretary determines otherwise, no grant shall be made under this chapter for any local public works project unless the applicant gives satisfactory assurance to the Secretary that at least 10 per centum of the amount of each grant shall be expended for minority business enterprises. For purposes of this paragraph, the term “minority business enterprise” means a business at least 50 per centum of which is owned by minority group members or, in case of a publicly owned business, at least 51 per centum of the stock of which is owned by minority group members. For the purposes of the preceding sentence, minority group members are citizens of the United States who are Asian American, Native Hawaiian, Pacific Islanders, African American, Hispanic, Native American, or Alaska Natives.
(g)No grant shall be made under this chapter for any project for which the applicant does not give assurances satisfactory to the Secretary that the project will be designed and constructed in accordance with the standards for accessibility for public buildings and facilities to the handicapped and elderly under the Act entitled “An Act to insure that certain buildings financed with Federal funds are so designed and constructed as to be accessible to the physically handicapped”, approved August 12, 1968 (42 U.S.C. 4151 et seq.). The Architectural and Transportation Barriers Compliance Board established by the Rehabilitation Act of 1973 (P.L. 93–112) [29 U.S.C. 701 et seq.] is authorized to insure that any construction and renovation done pursuant to any grant made under this chapter complies with the accessibility standards for public bunldings 11 So in original. Probably should be “buildings”. and facilities issued under the Act of August 12, 1968.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Immigration and Nationality Act, referred to in subsec. (e)(2), is act June 27, 1952, ch. 477, 66 Stat. 163, which is classified principally to chapter 12 (§ 1101 et seq.) of Title 8, Aliens and Nationality. For complete classification of this Act to the Code, see

Short Title

note set out under section 1101 of Title 8 and Tables. Act of August 12, 1968, entitled “An Act to insure that certain buildings financed with Federal funds are so designed and constructed as to be accessible to the physically handicapped”, referred to in subsec. (g), is Pub. L. 90–480, Aug. 12, 1968, 82 Stat. 718, popularly known as the Architectural Barriers Act of 1968, which is classified generally to chapter 51 (§ 4151 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 4151 of this title and Tables. The Rehabilitation Act of 1973, referred to in subsec. (g), is Pub. L. 93–112, Sept. 26, 1973, 87 Stat. 355, which is classified generally to chapter 16 (§ 701 et seq.) of Title 29, Labor. For complete classification of this Act to the Code, see

Short Title

note set out under section 701 of Title 29 and Tables.

Amendments

2016—Subsec. (f)(2). Pub. L. 114–157 substituted “Asian American, Native Hawaiian, Pacific Islanders, African American, Hispanic, Native American, or Alaska Natives” for “Negroes, Spanish-speaking, Orientals, Indians, Eskimos, and Aleuts”. 1977—Subsecs. (e) to (g). Pub. L. 95–28 added subsecs. (e) to (g).

Reference

Citations & Metadata

Citation

42 U.S.C. § 6705

Title 42The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73