Title 42The Public Health and WelfareRelease 119-73

§702 Allotment to States and Federal set-aside

Title 42 › Chapter CHAPTER 7— - SOCIAL SECURITY › Subchapter SUBCHAPTER V— - MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT › § 702

Last updated Apr 6, 2026|Official source

Summary

The Secretary keeps part of the yearly money and uses it for training, research, and special projects before giving the rest to the States. From the funds up to $600,000,000, the Secretary must hold back 15 percent for training and research. Training money goes to public or nonprofit colleges to train health workers for mothers and children. Research money goes to colleges and nonprofit agencies for maternal and child health and services for children with special needs. The Secretary can only make contracts if Congress has provided money for them that year. No grant or contract money can be paid unless the applicant files and gets an approved application with promises to use the money only as approved and to keep proper financial records. If the yearly funds are more than $600,000,000, the Secretary keeps 12¾ percent of the excess for certain projects, and any remaining excess after that is handled like the 15 percent holdback and then shared with States. The Secretary must favor projects in areas with high infant death rates. Money to build or expand maternal and child health centers must be matched with at least an equal amount of non‑Federal funds. States that apply get allotments from the remaining funds (from the pool up to $600,000,000) based partly on each State’s 1981 consolidated health program share and partly on its share of low‑income children. Each State gets what it received in 1983, plus its share of any increase above the 1983 total based on its proportion of low‑income children. If some States do not qualify, decline, or lose money to offsets, the unused funds are divided among the remaining States in proportion to their allotments.

Full Legal Text

Title 42, §702

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

(a)(1)Of the amounts appropriated under section 701(a) of this title for a fiscal year that are not in excess of $600,000,000, the Secretary shall retain an amount equal to 15 percent for the purpose of carrying out activities described in section 701(a)(2) of this title. The authority of the Secretary to enter into any contracts under this subchapter is effective for any fiscal year only to such extent or in such amounts as are provided in appropriations Acts.
(2)For purposes of paragraph (1)—
(A)amounts retained by the Secretary for training shall be used to make grants to public or nonprofit private institutions of higher learning for training personnel for health care and related services for mothers and children; and
(B)amounts retained by the Secretary for research shall be used to make grants to, contracts with, or jointly financed cooperative agreements with, public or nonprofit institutions of higher learning and public or nonprofit private agencies and organizations engaged in research or in maternal and child health or programs for children with special health care needs for research projects relating to maternal and child health services or services for children with special health care needs which show promise of substantial contribution to the advancement thereof.
(3)No funds may be made available by the Secretary under this subsection or subsection (b) unless an application therefor has been submitted to, and approved by, the Secretary. Such application shall be in such form, be submitted in such manner, and contain and be accompanied by such information as the Secretary may specify. No such application may be approved unless it contains assurances that the applicant will use the funds provided only for the purposes specified in the approved application and will establish such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement and accounting of Federal funds paid to the applicant under this subchapter.
(b)(1)(A)Of the amounts appropriated under section 701(a) of this title for a fiscal year in excess of $600,000,000 the Secretary shall retain an amount equal to 12¾ percent thereof for the projects described in subparagraphs (A) through (F) of section 701(a)(3) of this title.
(B)Any amount appropriated under section 701(a) of this title for a fiscal year in excess of $600,000,000 that remains after the Secretary has retained the applicable amount (if any) under subparagraph (A) shall be retained by the Secretary in accordance with subsection (a) and allocated to the States in accordance with subsection (c).
(2)(A)Of the amounts retained for the purpose of carrying out activities described in section 701(a)(3)(A), (B), (C), (D) and (E) of this title, the Secretary shall provide preference to qualified applicants which demonstrate that the activities to be carried out with such amounts shall be in areas with a high infant mortality rate (relative to the average infant mortality rate in the United States or in the State in which the area is located).
(B)In carrying out activities described in section 701(a)(3)(D) of this title, the Secretary shall not provide for developing or expanding a maternal and child health center unless the Secretary has received satisfactory assurances that there will be applied, towards the costs of such development or expansion, non-Federal funds in an amount at least equal to the amount of funds provided under this subchapter toward such development or expansion.
(c)From the remaining amounts appropriated under section 701(a) of this title for any fiscal year that are not in excess of $600,000,000, the Secretary shall allot to each State which has transmitted an application for the fiscal year under section 705(a) of this title, an amount determined as follows:
(1)The Secretary shall determine, for each State—
(A)(i)the amount provided or allotted by the Secretary to the State and to entities in the State under the provisions of the consolidated health programs (as defined in section 701(b)(1) of this title), other than for any of the projects or programs described in subsection (a), from appropriations for fiscal year 1981,
(ii)the proportion that such amount for that State bears to the total of such amounts for all the States, and
(B)(i)the number of low income children in the State, and
(ii)the proportion that such number of children for that State bears to the total of such numbers of children for all the States.
(2)Each such State shall be allotted for each fiscal year an amount equal to the sum of—
(A)the amount of the allotment to the State under this subsection in fiscal year 1983, and
(B)the State’s proportion (determined under paragraph (1)(B)(ii)) of the amount by which the allotment available under this subsection for all the States for that fiscal year exceeds the amount that was available under this subsection for allotment for all the States for fiscal year 1983.
(d)(1)To the extent that all the funds appropriated under this subchapter for a fiscal year are not otherwise allotted to States either because all the States have not qualified for such allotments under section 705(a) of this title for the fiscal year or because some States have indicated in their descriptions of activities under section 705(a) of this title that they do not intend to use the full amount of such allotments, such excess shall be allotted among the remaining States in proportion to the amount otherwise allotted to such States for the fiscal year without regard to this paragraph.
(2)To the extent that all the funds appropriated under this subchapter for a fiscal year are not otherwise allotted to States because some State allotments are offset under section 706(b)(2) of this title, such excess shall be allotted among the remaining States in proportion to the amount otherwise allotted to such States for the fiscal year without regard to this paragraph.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 702, act Aug. 14, 1935, ch. 531, title V, § 502, as added Jan. 2, 1968, Pub. L. 90–248, title III, § 301, 81 Stat. 921; amended
July 10, 1972, Pub. L. 92–345, § 1, 86 Stat. 456;
July 1, 1973, Pub. L. 93–53, § 4(a)(1), (2), 87 Stat. 135, prescribed purposes for which funds were available, prior to the general revision of this subchapter by section 2192(a) of Pub. L. 97–35. For

Effective Date

, savings, and transitional provisions, see section 2194 of Pub. L. 97–35, set out as a note under section 701 of this title. Another prior section 702, acts Aug. 14, 1935, ch. 531, title V, § 502, 49 Stat. 629; Aug. 10, 1939, ch. 666, title V, § 502, 53 Stat. 1380; 1946 Reorg. Plan No. 2, § 1, eff. July 16, 1946, 11 F.R. 7873, 60 Stat. 1095; Aug. 10, 1946, ch. 951, title IV, § 401(b)(2), (3), 60 Stat. 986; Aug. 28, 1950, ch. 809, title III, pt. 3, § 331(b), pt. 6, § 361(e), 64 Stat. 551, 558; Aug. 28, 1958, Pub. L. 85–840, title VI, § 602(b), (c), 72 Stat. 1055; Sept. 13, 1960, Pub. L. 86–778, title VII, § 707(a)(1)(B), (C), (b)(1)(A), 74 Stat. 995, 996; Oct. 24, 1963, Pub. L. 88–156, § 2(b), (c), 77 Stat. 273, provided for allotment to States for maternal and child health services, prior to the general amendment of title V of the Social Security Act by Pub. L. 90–248, § 301, and was covered by former section 703 of this title.

Amendments

1989—Subsec. (a)(1). Pub. L. 101–239, § 6502(a)(1), amended first sentence generally. Prior to amendment, first sentence read as follows: “Of the amounts appropriated under section 701(a) of this title for a fiscal year that are not in excess of $478,000,000, the Secretary shall retain an amount equal to 15 percent thereof in the case of fiscal year 1982, and an amount equal to not less than 10, nor more than 15, percent thereof in the case of each fiscal year thereafter, for the purpose of carrying out (through grants, contracts, or otherwise) special projects of regional and national significance, training, and research and for the funding of genetic disease testing, counseling, and information development and dissemination programs and of comprehensive hemophilia diagnostic and treatment centers.” Subsec. (a)(3). Pub. L. 101–239, § 6502(a)(2), inserted “or subsection (b)” after “this subsection”. Subsec. (b). Pub. L. 101–239, § 6502(a)(3), added subsec. (b). Former subsec. (b) redesignated (c). Subsec. (c). Pub. L. 101–239, § 6503(c)(4), which directed amendment of subsec. (b) by substituting “705(a)” for “705”, was executed to subsec. (c) to reflect the probable intent of Congress and the intervening redesignation of former subsec. (b) as (c) by Pub. L. 101–239, § 6502(a)(3), see below. Pub. L. 101–239, § 6503(c)(1), substituted “an application” for “a description of intended activities and statement of assurances” in introductory provisions. Pub. L. 101–239, § 6502(a)(4)(A), substituted “$600,000,000” for “$478,000,000” in introductory provisions. Pub. L. 101–239, § 6502(a)(3), redesignated subsec. (b) as (c) and struck out former subsec. (c) which related to special projects for children. Subsec. (c)(2). Pub. L. 101–239, § 6502(a)(4)(B), amended par. (2) generally, substituting provisions basing each State’s allotment for each fiscal year upon 1983 amounts for former provisions setting forth formulas for allotments for fiscal years 1982 and 1983 and for each year beginning with fiscal year 1984. Subsec. (d)(1). Pub. L. 101–239, § 6503(c)(4), substituted “705(a)” for “705” in two places. 1986—Subsec. (a)(1). Pub. L. 99–509, § 9441(b)(1), substituted “amounts appropriated under section 701(a) of this title for a fiscal year that are not in excess of $478,000,000” for “amount appropriated under section 701(a) of this title”. Subsec. (a)(2)(B). Pub. L. 99–272 substituted “programs for children with special health care needs” for “crippled children’s programs” and “services for children with special health care needs” for “crippled children’s services”. Subsec. (b). Pub. L. 99–509, § 9441(b)(2), inserted “that are not in excess of $478,000,000” in introductory provisions and struck out par. (3) which read as follows: “(A) To the extent that all the funds appropriated under this subchapter for a fiscal year are not otherwise allotted to States either because all the States have not qualified for such allotments under section 705 of this title for the fiscal year or because some States have indicated in their descriptions of activities under section 705 of this title that they do not intend to use the full amount of such allotments, such excess shall be allotted among the remaining States in proportion to the amount otherwise allotted to such States for the fiscal year without regard to this subparagraph. “(B) To the extent that all the funds appropriated under this subchapter for a fiscal year are not otherwise allotted to States because some State allotments are offset under section 706(b)(2) of this title, such excess shall be allotted among the remaining States in proportion to the amount otherwise allotted to such States for the fiscal year without regard to this subparagraph.” Subsecs. (c), (d). Pub. L. 99–509, § 9441(b)(3), added subsecs. (c) and (d).

Statutory Notes and Related Subsidiaries

Effective Date

of 1989 AmendmentAmendment by section 6502(a) of Pub. L. 101–239 applicable to appropriations for fiscal years beginning with fiscal year 1990, and amendment by section 6503(c)(1), (4) of Pub. L. 101–239 applicable to payments for allotments for fiscal years beginning with fiscal year 1991, see section 6510(a), (b)(1) of Pub. L. 101–239, set out as a note under section 701 of this title.

Reference

Citations & Metadata

Citation

42 U.S.C. § 702

Title 42The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73