§2907 Allocation of Funds for Administration and Reimbursement of States

Summary

Each year the money set aside under section 2910 must be used to run the program and to give funds to the States. The Secretary can keep up to 8 percent of the total to pay for administration. After that, the Secretary must set aside up to 0.5 percent for the District of Columbia and up to 0.5 percent for Puerto Rico. Guam, American Samoa, the Virgin Islands, the Trust Territory of the Pacific Islands, and the Northern Mariana Islands each can get up to one‑sixth of 1 percent. The rest goes to the other States. One‑third of each State’s share is based on its land area and two‑thirds is based on its population. Those State shares are adjusted so no State gets less than one‑half of 1 percent or more than 5 percent of the money being divided this way. If the Secretary keeps some admin money but does not spend it in that fiscal year, it stays available until the end of the next fiscal year. If it is still not used after that, the Secretary may give it to States without following the allocation formula above. The same rule applies to any State money that was allocated but not disbursed: it stays available for the next fiscal year and, if still not disbursed, may then be reallocated to States without using the formulas.