§6701 Payments to Local Governments

Summary

The Secretary must pay each qualifying local government the money that was allocated to it from the Local Government Fiscal Assistance Fund. Local governments must use the money for programs to prevent crime, such as education, substance-abuse treatment, or job programs. These programs should be coordinated with other federal programs. The Secretary must send each payment by the later of 90 days after the money is available or the first day of the payment period, if the local government has given the required assurances. The Secretary can correct figures if a past payment was wrong, but changes must be requested or made within one year after the payment period. The Secretary may hold back up to 2 percent of a State’s total for a period to cover possible adjustments. If a local government does not spend funds within one year, it must repay them within 15 months; unpaid repayments will reduce future payments and go back into the Fund. At least 10 percent of contract and subcontract dollars obligated with these funds must go to certain disadvantaged businesses, specific colleges (including historically Black colleges and those with more than 20 percent Hispanic or Native American students), and qualified HUBZone small businesses, unless the local government follows a public process to opt out. Definitions: “small business concern” as used in the Small Business Act; “socially and economically disadvantaged individuals” as defined in that Act; and “qualified HUBZone small business concern” as defined in the Act. Funds must add to, not replace, state or local funding; if a locality cuts its prior-year base funding, grant amounts are reduced dollar for dollar.