§2907 Allocation of Funds for Administration and Reimbursement of States

Summary

The money Congress set aside under section 2910 for a fiscal year must pay for running the program and be split among jurisdictions this way. First, the Secretary must take up to 8 percent of the total to run the program that year. After that, the Secretary must set aside up to one-half of 1 percent each for the District of Columbia and Puerto Rico, and up to one-sixth of 1 percent each for Guam, American Samoa, the Virgin Islands, the Trust Territory of the Pacific Islands, and the Commonwealth of the Northern Mariana Islands. The rest goes to the States. Each State gets a share that is one-third based on its area compared with all those States and two-thirds based on its population compared with all those States. If any of the money taken for administration is not spent in that fiscal year, it stays available through the end of the next fiscal year. If still unused after that, the Secretary may give it to the States to carry out the program without following the earlier split rules. The same rule applies to money allocated to a State but not paid to that State under section 2905: it stays available for the next fiscal year, and if still unpaid then the Secretary may redistribute it to the States to carry out the program without using the original formula.