Title 42 › CHAPTER 6A — PUBLIC HEALTH SERVICE › SUBCHAPTER II — GENERAL POWERS AND DUTIES › Part D — Primary Health Care › subpart iii — scholarship program and loan repayment program › § 254r
Gives federal grants to each State Office of Rural Health to help improve health care in rural areas. The Health Department, through the Federal Office of Rural Health Policy, makes the grants. A State must provide $3 of non‑federal money for every $1 of federal money unless the Secretary waives or lowers that rule. Non‑federal contributions can be cash or things like equipment or services, but not other federal money. Grant funds must be used to run an information clearinghouse about rural health, coordinate rural health activities in the State so they do not repeat each other, and find federal and State programs while giving technical help to public and nonprofit groups. Each State office must have at least $150,000 per year in its budget to get a grant. Grants cannot pay for direct health care, buy major medical equipment, vehicles, or real estate, or do work covered by certain other federal programs. Grants can pay to run the State office, help recruit and keep rural health workers, and make grants or contracts to public and nonprofit groups. Indirect costs can be limited to 15 percent. States must apply, send yearly reports by September 30 for each fiscal year they get money, and follow the grant agreements or future payments may stop. Congress authorized $12,500,000 each year for fiscal years 2023 through 2027, and that money stays available until spent.
Full Legal Text
The Public Health and Welfare, Source: USLM XML via OLRC
Legislative History
Reference
Citation
42 U.S.C. § 254r
Title 42, The Public Health and Welfare
Last Updated
Sep 22, 2026
Release point: 119-110