---
kind: "section"
citation: "7 U.S.C. § 2009f"
title: "7"
title_heading: "Agriculture"
number: "2009f"
heading: "Grants to States"
release: "119-102"
url: "https://uscodex.org/usc/7/2009f"
units:
  - "Chapter 50 — Agricultural Credit"
  - "Subchapter V — Rural Community Advancement Program"
---

# §2009f. Grants to States

- (a) **Simple grants—**
  - (1) **Mandatory grant—** The Secretary shall make a grant to any eligible [State](/usc/7/2009.md?p=1) for any fiscal year for which the [State](/usc/7/2009.md?p=1) requests a grant under this section in an amount equal to 5 percent of the total amount allocated for the [State](/usc/7/2009.md?p=1) under [section 2009d(f) of this title](/usc/7/2009d.md?p=f).
  - (2) **Permissive grant—** Before July 15 of each fiscal year, the Secretary may make a grant to any [State](/usc/7/2009.md?p=1) to defray the cost of any subsidy associated with a guarantee provided by an eligible public entity of the [State](/usc/7/2009.md?p=1) under [section 2009g of this title](/usc/7/2009g.md) in an amount that does not exceed 5 percent of the total amount allocated for the [State](/usc/7/2009.md?p=1) under [section 2009d(f) of this title](/usc/7/2009d.md?p=f).
  - (3) **Source of funds—** The Secretary shall make grants to a [State](/usc/7/2009.md?p=1) under paragraphs [(1)](#a-1) and [(2)](#a-2) from amounts allocated for the [State](/usc/7/2009.md?p=1) in the accounts specified in [section 2009d(c) of this title](/usc/7/2009d.md?p=c), by reducing each such allocated amount by the same percentage.
- (b) **Matching grants—**
  - (1) **In general—** Subject to [paragraph (2)](#b-2), the Secretary shall make a grant to any eligible [State](/usc/7/2009.md?p=1) for any fiscal year for which the [State](/usc/7/2009.md?p=1) requests a grant under this section in an amount equal to 5 percent of the amount allocated for the [State](/usc/7/2009.md?p=1) for the fiscal year under [section 2009d(g) of this title](/usc/7/2009d.md?p=g).
  - (2) **Eligibility—** A [State](/usc/7/2009.md?p=1) shall be eligible for a grant under [paragraph (1)](#b-1) if the [State](/usc/7/2009.md?p=1) makes commitments to the Secretary to—
    - (A) expend from non-Federal sources in accordance with [subsection (c)](#c) an amount that is not less than 200 percent of the amount of the grant; and
    - (B) maintain the amounts paid to the [State](/usc/7/2009.md?p=1) under this subsection and the amount referred to in [subparagraph (A)](#b-2-A) in an account separate from all other [State](/usc/7/2009.md?p=1) [funds](/usc/7/4531.md?p=5) until expended in accordance with [subsection (c)](#c).
  - (3) **Source of funds—** If the Secretary makes a grant under [paragraph (1)](#b-1) before July 15 of the fiscal year, the grant shall be made from amounts allocated for the [State](/usc/7/2009.md?p=1) in the accounts specified in [section 2009d(c) of this title](/usc/7/2009d.md?p=c) for the fiscal year, by reducing each allocated amount by the same percentage.
- (c) **Use of funds—** A [State](/usc/7/2009.md?p=1) to which [funds](/usc/7/4531.md?p=5) are provided under this section shall use the [funds](/usc/7/4531.md?p=5) in [rural areas](/usc/7/1991.md?p=a-13-A) for any activity authorized under the [authorities](/usc/7/2009aa.md?p=1) described in [section 2009d(d) of this title](/usc/7/2009d.md?p=d) in accordance with the [State](/usc/7/2009.md?p=1) strategic plan referred to in [section 2009c of this title](/usc/7/2009c.md).
- (d) **Maintenance of effort—** The [State](/usc/7/2009.md?p=1) shall provide assurances to the Secretary that [funds](/usc/7/4531.md?p=5) provided to the [State](/usc/7/2009.md?p=1) under this section will be used only to supplement, not to supplant, the amount of Federal, [State](/usc/7/2009.md?p=1), and local [funds](/usc/7/4531.md?p=5) otherwise expended for [rural](/usc/7/1991.md?p=a-13-A) development assistance in the [State](/usc/7/2009.md?p=1).
- (e) **Appeals—** The Secretary shall provide to a [State](/usc/7/2009.md?p=1) an opportunity to appeal any action taken with respect to the [State](/usc/7/2009.md?p=1) under this section.
- (f) **Administrative costs—** Federal [funds](/usc/7/4531.md?p=5) shall not be used for any administrative costs incurred by a [State](/usc/7/2009.md?p=1) in carrying out this subchapter.
- (g) **Expenditure of funds by State—**
  - (1) **In general—** Payments to a [State](/usc/7/2009.md?p=1) from a grant under this section for a fiscal year shall be obligated by the [State](/usc/7/2009.md?p=1) in the fiscal year or in the succeeding fiscal year. A [State](/usc/7/2009.md?p=1) shall obligate [funds](/usc/7/4531.md?p=5) under this section to provide assistance to [rural areas](/usc/7/1991.md?p=a-13-A).
  - (2) **Failure to obligate—** If a [State](/usc/7/2009.md?p=1) fails to obligate payments in accordance with [paragraph (1)](#g-1), the Secretary shall make an equal reduction in the amount of payments provided to the [State](/usc/7/2009.md?p=1) under this section for the immediately succeeding fiscal year.
  - (3) **Noncompliance—**
    - (A) **Review—** The Secretary shall review and monitor [State](/usc/7/2009.md?p=1) compliance with this section.
    - (B) **Penalty—** If the Secretary finds that there has been misuse of grant [funds](/usc/7/4531.md?p=5) provided under this section, or noncompliance with any of the terms and conditions of a grant, after reasonable notice and opportunity for a hearing—
      - (i) the Secretary shall notify the [State](/usc/7/2009.md?p=1) of the finding; and
      - (ii) no further payments to the [State](/usc/7/2009.md?p=1) shall be made with respect to the programs funded under this section until the Secretary is satisfied that there is no longer any failure to comply or that the noncompliance will be promptly corrected.
    - (C) **Other sanctions—** In the case of a finding of noncompliance made pursuant to [subparagraph (B)](#g-3-B), the Secretary may, in addition to, or in lieu of, imposing the sanctions described in [subparagraph (B)](#g-3-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.
- (h) **No entitlement to contract, grant, or assistance—** Nothing in this subchapter—
  - (1) entitles any [person](/usc/7/1471g.md?p=b-1) to assistance or a [contract](/usc/7/518.md?p=4) or grant; or
  - (2) limits the right of a [State](/usc/7/2009.md?p=1) to impose additional limitations or conditions on assistance or a [contract](/usc/7/518.md?p=4) or grant under this section.

## Source credit

(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.)

## Notes

### Editorial Notes

### Amendments

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”.

Subsec. (b)(1). Pub. L. 107–171, § 6026(c)(2), substituted “section 2009d(g) of this title” for “section 2009d(h) of this title”.