Title 7AgricultureRelease 119-73

§2663 Funding

Title 7 › Chapter CHAPTER 59— - RURAL FIRE PROTECTION, DEVELOPMENT, AND SMALL FARM RESEARCH AND EDUCATION › Subchapter SUBCHAPTER II— - RURAL DEVELOPMENT AND SMALL FARM RESEARCH AND EDUCATION › § 2663

Last updated Apr 6, 2026|Official source

Summary

Money can be provided as needed to run the programs in this part of the law. For the money used for the parts named in section 2662(a) and (b), the Secretary must split it this way: 4 percent is kept for national administration and help to the States; 10 percent goes to projects that serve two or more States or are run by a college serving several States; 20 percent is divided equally among all States; and 66 percent is given to States based half on each State’s share of the rural population and half on each State’s share of the farm population, using the most recent decennial census available at that time. Money for the parts named in section 2662(e) and (i) goes to colleges and universities by competition or matching grants, based on which projects the Secretary thinks will best meet the goals. Funds may pay staff, supplies, equipment, services, and rent, repair, and upkeep of facilities, but not buying or building buildings. States only get funds after the Secretary approves a work plan and budget and the State follows the rules. Land-grant colleges named under the 1862 and 1890 Acts (including Tuskegee) must make the plans together; if a State has no 1890 school, the 1862 school is responsible. Funds can be used in the fiscal year they are given and the next year, must be reported as the Secretary requires, and may support programs at other public or private colleges as allowed under section 2664.

Full Legal Text

Title 7, §2663

Agriculture — Source: USLM XML via OLRC

(a)There are authorized to be appropriated such sums as are necessary to carry out the purposes of this subchapter.
(b)Such sums as are appropriated to carry out the provisions of section 2662(a) and (b) of this title shall be distributed by the Secretary as follows:
(1)4 per centum shall be retained by the Secretary for program administration and national coordination of State programs, and program assistance to the States;
(2)10 per centum shall be used to finance work serving two or more States in which colleges or universities in two or more States cooperate or that is conducted by one college or university to serve two or more States;
(3)20 per centum shall be allocated equally among the States; and
(4)66 per centum shall be allocated to each State as follows: One-half in an amount that bears the same ratio to the total amount to be allotted as the rural population of the State bears to the total rural population of all the States, as determined by the last preceding decennial census current at that time; and one-half in an amount that bears the same ratio to the total amount to be allotted as the farm population of the State bears to the total farm population of all the States, as determined by the last preceding decennial census current at that time:
(c)Such sums as are appropriated to carry out subsections (e) and (i) of section 2662 of this title shall be distributed by the Secretary to colleges and universities, on a competitive or matching fund basis, according to the Secretary’s determination of the projects and manner of funding that show the most promise of fulfilling the objectives of those subsections.
(d)Funds appropriated under this subchapter may be used to pay salaries and other expenses of personnel employed to carry out the functions authorized by this subchapter; to obtain necessary supplies, equipment, and services; and to rent, repair, and maintain facilities needed, but not to purchase or construct buildings.
(e)Payment of funds to any State for programs authorized under section 2662(a), (b), (c), and (d) of this title shall be contingent upon approval by the Secretary of a plan of work and budget for such programs and compliance with such regulations as the Secretary may issue under this subchapter. Plans for work shall be jointly developed in each State by the land-grant colleges and universities eligible to receive funds under the Act of July 2, 1862 (7 U.S.C. 301 et seq.), and the Act of August 30, 1890 (7 U.S.C. 321 et seq.), including Tuskegee Institute. In States in which there is no land-grant institution eligible to receive funds under the Act of August 30, 1890, the land-grant institution eligible to receive funds under the Act of July 2, 1862, shall be responsible for developing plans of work and budgets. In the development of the plans of work and budgets, consideration shall be given to involvement of the resources and expertise of the colleges and universities serving the region in which the plans and budgets are to be applied.
(f)Funds shall be available for use by each State in the fiscal year for which appropriated and the next fiscal year following the fiscal year for which appropriated. Funds shall be budgeted and accounted for on such forms and at such times as the Secretary shall prescribe.
(g)Funds provided to each State under this subchapter may be used to finance programs through or at private and publicly supported colleges and universities other than the institutions responsible for administering the programs, as provided under section 2664 of this title.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

Act of
July 2, 1862, referred to in subsec. (e), is act
July 2, 1862, ch. 130, 12 Stat. 503, popularly known as the “Morrill Act” and also as the “First Morrill Act”, which is classified generally to subchapter I (§ 301 et seq.) of chapter 13 of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 301 of this title and Tables. Act of August 30, 1890, referred to in subsec. (e), is act Aug. 30, 1890, ch. 841, 26 Stat. 417, popularly known as the Agricultural College Act of 1890 and also as the Second Morrill Act, which is classified generally to subchapter II (§ 321 et seq.) of chapter 13 of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 321 of this title and Tables.

Prior Provisions

A prior section 2663, Pub. L. 92–419, title V, § 503, Aug. 30, 1972, 86 Stat. 672; Pub. L. 94–259, § 1, Apr. 5, 1976, 90 Stat. 314; Pub. L. 95–113, title XIV, § 1441, Sept. 29, 1977, 91 Stat. 1006; Pub. L. 96–355, § 4(1)–(3), Sept. 24, 1980, 94 Stat. 1173, 1174, related to program moneys, prior to repeal by Pub. L. 97–98, title XIV, § 1444(a), Dec. 22, 1981, 95 Stat. 1326.

Amendments

2018—Subsec. (b). Pub. L. 115–334 substituted “Secretary” for “Secretary of Agriculture” in introductory provisions. 1996—Subsec. (c). Pub. L. 104–127, § 792(b)(2)(A)(ii), (iii), which directed substitution of “subsections (e), (h), and (i) of section 2662 of this title shall be distributed” for “section 2662(e)” and all that follows through “shall be distributed” and “objectives of subsections (e), (h), and (i) of section 2662 of this title” for “objectives of” and all that follows through “title”, could not be executed because of prior amendment by Pub. L. 102–237, which substituted “subsections (e) and (i) of section 2662 of this title shall be distributed” for “the provisions of section 2662(e) of this title shall be distributed” and “objectives of those subsections” for “objectives of section 2662(e) of this title”. See 1991 Amendment note below. Pub. L. 104–127, § 792(b)(2)(A)(i), (B), struck out “(1)” before “Such sums” and struck out par. (2) which read as follows: “The Secretary shall distribute the amounts appropriated to carry out section 2662(f) of this title to colleges and universities in accordance with the requirements of such subsection.” 1991—Subsec. (c)(1). Pub. L. 102–237 substituted “subsections (e) and (i) of section 2662 of this title” for “the provisions of section 2662(e) of this title” and “objectives of those subsections” for “objectives of section 2662(e) of this title”. 1990—Subsec. (c). Pub. L. 101–624, § 2390(b)(2), which directed substitution of “section 2662(f) of this title, and section 2662(h) of this title” for “and section 2662(f) of this title”, could not be executed because of prior amendment by Pub. L. 101–624, § 2389(c)(2)(B), which struck out “and section 2662(f)” wherever appearing in par. (1). See below. Pub. L. 101–624, § 2389(c)(2), inserted heading, designated existing provisions as par. (1), struck out “and section 2662(f)” before “of this title” in two places, and added par. (2). 1985—Subsec. (c). Pub. L. 99–198 inserted references to section 2662(f) of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Dec. 22, 1981, see section 1801 of Pub. L. 97–98, set out as a note under section 4301 of this title.

Reference

Citations & Metadata

Citation

7 U.S.C. § 2663

Title 7Agriculture

Last Updated

Apr 6, 2026

Release point: 119-73