§2009f Grants to States

Summary

The Secretary must give grants to eligible States when the State asks. One grant equals 5 percent of the State’s allocation under section 2009d(f). Before July 15 each year, the Secretary may also give up to another 5 percent to cover subsidy costs tied to a State public-entity guarantee under section 2009g. These grants come out of the amounts already set aside for the State in the accounts named in section 2009d(c), and each account is reduced by the same percentage. The Secretary also must give a State a grant equal to 5 percent of the amount allocated under section 2009d(g) if the State asks and agrees to spend at least 200 percent of the grant from non-Federal sources and to keep the grant and those matching funds in a separate account until they are used as required. States must use the funds in rural areas for activities allowed under section 2009d(d) and follow the State strategic plan in section 2009c. States must promise the money will add to, not replace, other Federal, State, or local rural development spending. States can appeal the Secretary’s actions. Federal funds may not pay State administrative costs. States must obligate the grant in the fiscal year given or the next year, or payments will be cut the following year. The Secretary will monitor use, and after notice and a hearing can stop payments, recover funds, or impose other sanctions for misuse. No one is guaranteed assistance, and States may set extra limits.