§2009f Grants to States

Summary

The Secretary must give certain grants to eligible States. A State that asks can get a mandatory grant equal to 5% of the total amount allocated to that State under section 2009d(f). Before July 15 each year, the Secretary may also give a grant up to 5% to help pay subsidies tied to State guarantees under section 2009g. These grants come out of the State’s allocated accounts under section 2009d(c) by reducing each allocation by the same percentage. The Secretary must also make a matching grant equal to 5% of the amount allocated under section 2009d(g) if the State asks and promises to spend at least 200% of the grant from non‑Federal money and to keep the grant and the matching funds in a separate account until used. States must use the money in rural areas for activities allowed under the authorities in section 2009d(d) and follow the State strategic plan in section 2009c. The money must add to, not replace, other federal, State, or local rural development funds. States can appeal actions by the Secretary. Federal funds cannot pay State administrative costs. Grants must be obligated in the fiscal year received or the next year, or the next year’s payment will be reduced equally. The Secretary will review compliance and, after notice and a hearing, may stop payments, recover misspent funds, or impose other sanctions for misuse. No one is automatically entitled to assistance or a contract, and States may add extra limits.