7 U.S. Code § 2009f - Grants to States
(a) Simple grants
(1) Mandatory grant
(2) Permissive grant
Before July 15 of each fiscal year, the Secretary may make a grant to any State to defray the cost of any subsidy associated with a guarantee provided by an eligible public entity of the State under section 2009g of this title in an amount that does not exceed 5 percent of the total amount allocated for the State under section 2009d (f) of this title.
(b) Matching grants
(1) In general
A State shall be eligible for a grant under paragraph (1) if the State makes commitments to the Secretary to—
(A) expend from non-Federal sources in accordance with subsection (c) of this section an amount that is not less than 200 percent of the amount of the grant; and
(3) Source of funds
(c) Use of funds
(d) Maintenance of effort
The State shall provide assurances to the Secretary that funds provided to the State under this section will be used only to supplement, not to supplant, the amount of Federal, State, and local funds otherwise expended for rural development assistance in the State.
The Secretary shall provide to a State an opportunity to appeal any action taken with respect to the State under this section.
(f) Administrative costs
Federal funds shall not be used for any administrative costs incurred by a State in carrying out this subchapter.
(g) Expenditure of funds by State
(1) In general
Payments to a State from a grant under this section for a fiscal year shall be obligated by the State in the fiscal year or in the succeeding fiscal year. A State shall obligate funds under this section to provide assistance to rural areas.
(2) Failure to obligate
If a State fails to obligate payments in accordance with paragraph (1), the Secretary shall make an equal reduction in the amount of payments provided to the State under this section for the immediately succeeding fiscal year.
If the Secretary finds that there has been misuse of grant funds provided under this section, or noncompliance with any of the terms and conditions of a grant, after reasonable notice and opportunity for a hearing—
(C) Other sanctions
In the case of a finding of noncompliance made pursuant to subparagraph (B), the Secretary may, in addition to, or in lieu of, imposing the sanctions described in subparagraph (B), impose other appropriate sanctions, including recoupment of money improperly expended for purposes prohibited or not authorized by this section and disqualification from the receipt of financial assistance under this section.
Source(Pub. L. 87–128, title III, § 381G, as added Pub. L. 104–127, title VII, § 761,Apr. 4, 1996, 110 Stat. 1143; amended Pub. L. 107–171, title VI, § 6026(c),May 13, 2002, 116 Stat. 372.)
2002—Subsec. (a)(1), (2). Pub. L. 107–171, § 6026(c)(1), substituted “section 2009d (f) of this title” for “section 2009d (g) of this title”.