§6701 Payments to Local Governments

Summary

The Secretary must pay each qualifying local government the money allocated to it from the Local Government Fiscal Assistance Fund. The money must be used for programs to prevent crime through education, substance-abuse treatment, or job programs. These programs must be coordinated with other federal programs. Payments must be made by the later of 90 days after the money is available or the first day of the payment period, if the local government gave the required assurances. The Secretary can correct past overpayments or underpayments but only if the need or request is made within one year after the payment period ends. The Secretary may hold back up to 2% of a State’s total for a payment period to cover such adjustments. Any funds not spent within one year must be repaid by 15 months after receipt, and unpaid repayments reduce future payments. Funds must add to, not replace, State or local funding; if a locality cuts its prior-year funding for covered purposes, its grant is reduced dollar for dollar. At least 10% of contract and subcontract dollars must go to certain small or minority-serving businesses, unless the local government decides otherwise after a public process. Defined terms used here include: small business concern (a small business as defined in the Small Business Act), socially and economically disadvantaged individuals (as defined in the Small Business Act), and qualified HUBZone small business concern (as defined in the Small Business Act).