1. U.S. Code
  2. title 31
  3. subtitle V
  4. chapter 65
  5. § 6501

Collapse to view only § 6501. Definitions

§ 6501. DefinitionsIn this chapter—
(1) “assistance” means the transfer of anything of value for a public purpose of support or stimulation that is—
(A) authorized by a law of the United States;
(B) provided by the United States Government through grant or contractual arrangements (including technical assistance programs providing assistance by loan, loan guarantee, or insurance); and
(C) not an annual payment by the United States Government to the District of Columbia government under section 502 of the District of Columbia Home Rule Act (Public Law 93–198, 87 Stat. 813, D.C. Code, § 47–3406).
(2) “comprehensive planning” includes, to the extent directly related to area needs or needs of a unit of general local government—
(A) preparation, as a guide for governmental policies and action, of general plans on—
(i) the pattern and intensity of land use;
(ii) providing public facilities (including transportation facilities) and other governmental services; and
(iii) the effective development and use of human and natural resources;
(B) long-range physical and fiscal plans for an action referred to in subparagraph (A);
(C) a program for capital improvements and other major expenditures based on their relative urgency, and definitive financing plans for the expenditures in the earlier years of the program;
(D) coordination of related plans and activities of States and local governments and agencies concerned; and
(E) preparation of regulatory and administrative measures to support the items referred to in subparagraphs (A), (B), (C), and (D).
(3) “executive agency” does not include a mixed-ownership Government corporation.
(4)
(A) “grant” (except as provided in subparagraph (C)) means money, or property provided instead of money, that is paid or provided by the United States Government under a fixed annual or total authorization, to a State, to a local government, or to a beneficiary under a plan or program administered by a State or a local government that is subject to approval by an executive agency, if the authorization—
(i) requires the State or local government to expend non-Government money as a condition of receiving money or property from the United States Government; or
(ii) specifies directly, or establishes by means of a formula, the amount that may be provided to the State or local government, or the amount to be allotted for use in each State by the State, local government, and beneficiaries.
(B) “grant” (except as provided in subparagraph (C)) also means money, or property provided instead of money, that is paid or provided by the United States Government to a private, nonprofit community organization eligible to receive amounts under the Community Services Block Grant Act (42 U.S.C. 9901 et seq.).
(C) “grant” does not include—
(i) shared revenue;
(ii) payment of taxes;
(iii) payment instead of taxes;
(iv) a loan or repayable advance;
(v) surplus property or surplus agricultural commodities provided as surplus property;
(vi) a payment under a research and development procurement contract or grant awarded directly and on similar terms to all qualifying organizations; or
(vii) a payment to a State or local government as complete reimbursement for costs incurred in paying benefits or providing services to persons entitled to them under a law of the United States.
(5) “head of a State agency” includes the designated delegate of the head of the agency.
(6) “local government” means a unit of general local government, a school district, or other special district established under State law.
(7) “Secretary” means the Secretary of the Treasury.
(8) “special-purpose unit of local government” means a special district, public-purpose local government of a State except a school district.
(9) “State” means a State of the United States, the District of Columbia, a territory or possession of the United States, and an agency, instrumentality, or fiscal agent of a State but does not mean a local government of a State.
(10) “unit of general local government” means a county, city, town, village, or other general purpose political subdivision of a State.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1005; Pub. L. 97–452, § 1(24), Jan. 12, 1983, 96 Stat. 2478; Pub. L. 101–453, §§ 3, 5(a), Oct. 24, 1990, 104 Stat. 1058, 1059; Pub. L. 105–33, title XI, § 11717(b), Aug. 5, 1997, 111 Stat. 786.)

CITE AS: 31 USC 6501

§ 6502. Information on grants received

On request of a chief executive officer of a State, a State legislature, or an official designated by either of them, an executive agency carrying out a grant program to States and local governments shall provide the requesting officer or legislature with written information on the purpose and amounts of grants provided to the State or local government.

(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1007.)

CITE AS: 31 USC 6502

§ 6503. Intergovernmental financing
(a) Consistent with program purposes and with regulations of the Secretary, and in accordance with an agreement under subsection (b) entered into by the Secretary and a State—
(1) the head of an executive agency (other than the Tennessee Valley Authority) carrying out a program shall schedule transfers of funds to the State under the program so as to minimize the time elapsing between transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payments by other means by a State; and
(2) the State shall minimize the time elapsing between transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payments by other means for program purposes.
(b)
(1) The Secretary shall enter into an agreement with each State to which transfers of funds are made, which establishes procedures and requirements for implementing this section.
(2) An agreement under this subsection shall—
(A) specify procedures chosen by the State for carrying out transfers of funds under the agreement;
(B) describe the process by which the Federal Government shall review and approve the implementation of the procedures specified under subparagraph (A);
(C) establish the methods to be used for calculating and documenting payments of interest pursuant to this section; and
(D) specify those types of costs directly incurred by the State for interest calculations required under this section, and require the Secretary to consider those costs in computing payments under this section.
(3) The Secretary shall issue regulations establishing procedures and requirements for implementing this section with respect to a State with which no agreement is entered into by the Secretary under paragraph (1). Such regulations shall apply to a State until such time as the Secretary enters into an agreement with the State under paragraph (1).
(c)
(1) The Secretary shall issue regulations that shall require a State, when not inconsistent with program purposes, to pay interest to the United States on funds from the time funds are deposited by the United States to the State’s account until the time that funds are paid out by the State in order to redeem checks or warrants or make payments by other means for program purposes. Except as provided under paragraph (3)(B) (relating to the Unemployment Trust Fund), the interest payable under this subsection shall be calculated at a rate equal to the average of the bond equivalent rates of 13-week Treasury bills auctioned during the period for which interest is calculated, as determined by the Secretary.
(2) Except as provided in paragraph (3), amounts received by the United States as payment of interest under this subsection shall be deposited in the Treasury and credited as miscellaneous receipts.
(3)
(A) Amounts paid by a State under paragraph (1) as interest on funds paid to a State from a trust fund for which the Secretary is the trustee shall be credited to such trust fund.
(B) Notwithstanding any other provision of this section, amounts of interest paid by a State, on funds drawn from its account in the Unemployment Trust Fund, shall be deposited into that account and shall consist of actual interest earnings by the State, less related banking costs incurred by the State, for the period for which interest is calculated.
(d)
(1) If a State disburses its own funds for program purposes in accordance with Federal law, Federal regulation, or Federal-State agreement, the State shall be entitled to interest from the time the State’s funds are paid out to redeem checks or warrants, or make payments by other means, until the Federal funds are deposited to the State’s bank account. The Secretary shall pay, out of any money in the Treasury not otherwise appropriated, such amounts as may be necessary for interest owed to a State under this subsection. Such interest shall be calculated, at a rate equal to the average of the bond equivalent rates of 13-week Treasury bills auctioned during the period for which interest is calculated, as determined by the Secretary.
(2) If interest is paid under this subsection as a result of a State disbursing its own funds before receiving payment from a trust fund for which the Secretary of the Treasury is the trustee, such interest shall be charged against such trust fund.
(e) The budget submitted by the President under section 1105 of this title for a fiscal year shall include a statement specifying, for the most recently completed fiscal year, amounts of interest accrued to the Federal Government under subsection (c) and amounts of interest paid to States under subsection (d).
(f) If a State receives refunds of funds disbursed by the State under a Federal program, the State shall return those refunds to the Federal executive agency administering the program or apply those refunds to reduce the amount of funds owed by the Federal Government to the State under such program. Interest earned on such refunds shall be considered when setting overall interest obligations between the State and the Federal Government as required by this section.
(g) If the Federal Government makes a payment to a recipient under a Federal program, and a portion of the payment is an amount which the Federal Government is paying to such recipient on behalf of a State, such amount shall be considered to be a transfer of funds between the Federal Government and the State for purposes of this section.
(h) A State may not be required by a law or regulation of the United States to deposit funds received by it in a separate bank account. However, a State shall account for funds made available to the State as United States Government funds in the accounts of the State. The head of the State agency concerned shall make periodic authenticated reports to the head of the appropriate Federal executive agency on the status and the application of the funds, the liabilities and obligations on hand, and other information required by the head of the executive agency. Records related to the funds received by the State shall be made available to the head of the executive agency, the Inspector General of the executive agency, and the Comptroller General for necessary audits.
(i) The Secretary shall prescribe methods for the payment of interest under this section between the Federal Government and the States, including provisions for offsetting amounts owed by the respective parties. Such methods of payment shall require payment of interest on an annual basis and shall provide for comparable treatment in manner, technique, and timing for both the States and the Federal Government.
(j) Consistent with Federal program purposes and regulations of the Director of the Office of Management and Budget, the head of a Federal executive agency carrying out a program shall execute grant awards to States on a timely basis to assure the availability of funds to accomplish transfers in compliance with subsection (a) of this section.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1007; Pub. L. 101–453, § 5(b), Oct. 24, 1990, 104 Stat. 1059.)

CITE AS: 31 USC 6503

§ 6504. Use of existing State or multimember agency to administer grant programs
Notwithstanding a law of the United States providing that one State agency or multimember agency must be established or designated to carry out or supervise the administration of a grant program, the head of the executive agency carrying out the program may, when requested by the executive or legislative authority of the State responsible for the organizational structure of a State government—
(1) waive the one State agency or multimember agency provision on an adequate showing that the provision prevents the establishment of the most effective and efficient organizational arrangement within the State government; and
(2) approve another State administrative structure or arrangement after deciding that the objectives of the law authorizing the grant program will not be endangered by using another State structure or arrangement.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1007.)

CITE AS: 31 USC 6504

§ 6505. Authority to provide specialized or technical services
(a) The President may prescribe statistical and other studies and compilations, development projects, technical tests and evaluations, technical information, training activities, surveys, reports, documents, and other similar services that an executive agency is especially competent and authorized by law to provide. The services prescribed must be consistent with and further the policy of the United States Government of relying on the private enterprise system to provide services reasonably and quickly available through ordinary business channels.
(b) The head of an executive agency may provide services prescribed by the President under this section to a State or local government when—
(1) written request is made by the State or local government; and
(2) payment of pay and all other identifiable costs of providing the services is made to the executive agency by the State or local government making the request.
(c) Payment received by an executive agency for providing services under this section shall be deposited to the credit of the principal appropriation from which the cost of providing the services has been paid or will be charged.
(d) The authority under this section is in addition to authority under another law in effect on October 16, 1968.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1007.)

CITE AS: 31 USC 6505

§ 6506. Development assistance
(a) The economic and social development of the United States and the achievement of satisfactory levels of living depend on the sound and orderly development of urban and rural areas. When urbanization proceeds rapidly, the sound and orderly development of urban communities depends to a large degree on the social and economic health and the sound development of smaller communities and rural areas.
(b) The President shall prescribe regulations governing the formulation, evaluation, and review of United States Government programs and projects having a significant impact on area and community development (including programs and projects providing assistance to States and localities) to serve most effectively the basic objectives of subsection (a) of this section. The regulations shall provide for the consideration of concurrently achieving the following specific objectives and, to the extent authorized by law, reasoned choices shall be made between the objectives when they conflict:
(1) appropriate land uses for housing, commercial, industrial, governmental, institutional, and other purposes.
(2) wise development and conservation of all natural resources.
(3) balanced transportation systems, including highway, air, water, pedestrian, mass transit, and other means to move people and goods.
(4) adequate outdoor recreation and open space.
(5) protection of areas of unique natural beauty and historic and scientific interest.
(6) properly planned community facilities (including utilities for supplying power, water, and communications) for safely disposing of wastes, and for other purposes.
(7) concern for high standards of design.
(c) To the extent possible, all national, regional, State, and local viewpoints shall be considered in planning development programs and projects of the United States Government or assisted by the Government. State and local government objectives and the objectives of regional organizations shall be considered within a framework of national public objectives expressed in laws of the United States. Available projections of future conditions in the United States and needs of regions, States, and localities shall be considered in plan formulation, evaluation, and review.
(d) To the maximum extent possible and consistent with national objectives, assistance for development purposes shall be consistent with and further the objectives of State, regional, and local comprehensive planning. Consideration shall be given to all developmental aspects of our total national community, including housing, transportation, economic development, natural and human resources development, community facilities, and the general improvement of living environments.
(e) To the maximum extent practicable, each executive agency carrying out a development assistance program shall consult with and seek advice from all other significantly affected executive agencies in an effort to ensure completely coordinated programs. To the extent possible, systematic planning required by individual United States Government programs (such as highway construction, urban renewal, and open space) shall be coordinated with and, to the extent authorized by law, made part of comprehensive local and areawide development planning.
(f) When a law of the United States provides that both a special-purpose unit of local government and a unit of general local government are eligible to receive a loan or grant, the head of an executive agency shall make the loan or grant to the unit of general local government instead of the special-purpose unit of local government in the absence of substantial reasons to the contrary.
(g) The President may designate an executive agency to prescribe regulations to carry out this section.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1008.)

CITE AS: 31 USC 6506

§ 6507. Congressional review of grant programs
(a) The committees of Congress having jurisdiction over a grant program authorized by a law of the United States without a specified expiration date for the program shall study the program. The committees may conduct studies separately or jointly and shall report the results of their findings to their respective Houses of Congress not later than the end of each period specified in subsection (b) of this section. The committees shall give special attention to—
(1) the extent to which the purposes of the grants have been met;
(2) the extent to which the objective of the program can be carried on without further assistance;
(3) whether a change in the purpose, direction, or administration of the original program, or in procedures and requirements applicable to the program, should be made; and
(4) the extent to which the program is adequate to meet the growing and changing needs that it was designed to support.
(b)
(1) A study under subsection (a) of this section of a grant program authorized by a law of the United States enacted before October 16, 1968, shall be conducted before the end of each 4th calendar year after the year during which a study of the program was last conducted under this section.
(2) A study under subsection (a) of this section of a grant program authorized by a law of the United States enacted after October 16, 1968, shall be conducted before the end of the 4th calendar year after the year of enactment of the law and before the end of each 4th calendar year thereafter.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1009.)

CITE AS: 31 USC 6507

§ 6508. Studies and reports
(a)
(1) When requested by a committee of Congress having jurisdiction over a grant program, the Comptroller General shall study the program. The study shall include a review of—
(A) the extent to which—
(i) the program conflicts with or duplicates other grant programs; and
(ii) more effective, efficient, economical, and uniform administration of the program may be achieved by changing the requirements and procedures applicable to it; and
(B) budgetary, accounting, reporting, and administrative procedures of the program.
(2) The Comptroller General shall submit to Congress a report on a study made under this subsection and any recommendations. To the extent practicable, a report on an expiring program shall be submitted in the year before the year in which a program ends.
(b)
(1) When requested by a committee of Congress having jurisdiction over a grant program, the Advisory Commission on Intergovernmental Relations shall study the intergovernmental relations aspects of the program, including—
(A) the impact of the program on the structural organization of States and local governments and on Federal-State-local fiscal relations; and
(B) the coordination of administration of the program by the United States Government and State and local governments.
(2) The Commission shall submit to the committee requesting the study and to Congress a report and any recommendations.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1010.)

CITE AS: 31 USC 6508