Title 42The Public Health and WelfareRelease 119-73

§9806 Establishment and scope of programs

Title 42 › Chapter CHAPTER 105— - COMMUNITY SERVICES PROGRAMS › Subchapter SUBCHAPTER I— - COMMUNITY ECONOMIC DEVELOPMENT › Part Part A— - Urban and Rural Special Impact Programs › § 9806

Last updated Apr 6, 2026|Official source

Summary

The Secretary can give grant money to nonprofit and for‑profit community development groups and to related local agencies. Grants can pay all or part of programs that meet the law’s goals. The money must fund projects that are big enough, long enough, and broad enough to make a real difference. Programs can cover business and commercial development (including help to start, grow, or fund local businesses and small businesses owned by residents), physical development like industrial parks and housing, job training and public‑service jobs (including activities like those in Title I of the Workforce Investment Act of 1998), and supporting social services such as child care, education, health, credit counseling, energy conservation, recreation, and housing maintenance. The Secretary must run these grant programs so they help both cities and rural areas fairly, with the aim of reducing poverty and creating lasting economic and social benefits.

Full Legal Text

Title 42, §9806

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

(a)The Secretary is authorized to provide financial assistance in the form of grants to nonprofit and for profit community development corporations and other affiliated and supportive agencies and organizations associated with qualifying community development corporations for the payment of all or part of the cost of programs which are designed to carry out the purposes of this part. Financial assistance shall be provided so that each community economic development program is of sufficient size, scope, and duration to have an appreciable impact on the area served. Such programs may include—
(1)community business and commercial development programs, including (A) programs which provide financial and other assistance (including equity capital) to start, expand, or locate businesses in or near the area served so as to provide employment and ownership opportunities for residents of such areas; and (B) programs for small businesses located in or owned by residents of such areas;
(2)community physical development programs, including industrial parks and housing activities, which contribute to an improved environment and which create new training, employment and ownership opportunities for residents of such area;
(3)training and public service employment programs and related services for unemployed or low-income persons which support and complement community development programs financed under this part, including, without limitation, activities such as the activities described in title I of the Workforce Investment Act of 1998; 11 See References in Text note below. and
(4)social service programs which support and complement community business and commercial development programs financed under this part, including child care, educational services, health services, credit counseling, energy conservation, recreation services, and programs for the maintenance of housing facilities.
(b)The Secretary shall conduct programs assisted under this part so as to contribute, on an equitable basis between urban and rural areas, to the elimination of poverty and the establishment of permanent economic and social benefits in such areas.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Workforce Investment Act of 1998, referred to in subsec. (a)(3), is Pub. L. 105–220, Aug. 7, 1998, 112 Stat. 936, and was repealed by Pub. L. 113–128, title V, §§ 506, 511(a),
July 22, 2014, 128 Stat. 1703, 1705, effective
July 1, 2015. Title I of the Act was classified principally to former chapter 30 (former § 2801 et seq.) of Title 29, Labor. Pursuant to section 3361(a) of Title 29, references to a provision of the Workforce Investment Act of 1998 are deemed to refer to the corresponding provision of the Workforce Innovation and Opportunity Act, Pub. L. 113–128,
July 22, 2014, 128 Stat. 1425, effective
July 1, 2015. For complete classification of the Workforce Investment Act of 1998 to the Code, see Tables. For complete classification of the Workforce Innovation and Opportunity Act to the Code, see

Short Title

note set out under section 3101 of this title and Tables.

Amendments

1998—Subsec. (a)(3). Pub. L. 105–277, § 101(f) [title VIII, § 405(f)(31)], struck out “the Job Training Partnership Act or” after “activities described in”. Pub. L. 105–277, § 101(f) [title VIII, § 405(d)(40)], substituted “activities such as the activities described in the Job Training Partnership Act or title I of the Workforce Investment Act of 1998” for “activities such as those described in the Comprehensive Employment and Training Act”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1998 AmendmentAmendment by section 101(f) [title VIII, § 405(d)(40)] of Pub. L. 105–277 effective Oct. 21, 1998, and amendment by section 101(f) [title VIII, § 405(f)(31)] of Pub. L. 105–277 effective July 1, 2000, see section 101(f) [title VIII, § 405(g)(1), (2)(B)] of Pub. L. 105–277, set out as a note under section 3502 of Title 5, Government Organization and Employees.

Reference

Citations & Metadata

Citation

42 U.S.C. § 9806

Title 42The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73