§2009f Grants to States

Summary

The Secretary must give grants to any eligible State that asks. One grant equals 5 percent of the State’s allocation under section 2009d(f). Before July 15 each year, the Secretary may also give up to another 5 percent to help pay subsidies for state guarantees under section 2009g. Those grant amounts come out of the same accounts listed in section 2009d(c), and each account is reduced by the same percentage. The Secretary also must give a 5 percent grant based on the State’s allocation under section 2009d(g) if the State asks and promises to spend at least 200 percent of the grant from non‑Federal sources and keep those funds in a separate account until used. All funds must be used in rural areas for activities allowed by 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 spending. States can appeal actions by the Secretary. Federal money cannot pay State administrative costs. States must commit the grant money in the same fiscal year or the next, or their next-year payments will be cut. The Secretary will monitor use, stop payments after notice and a hearing if funds are misused, and may recover money or bar future grants. No one is entitled to assistance, and States may add extra limits.