31 U.S.C.
United States Code, 2023 Edition
Title 31 - MONEY AND FINANCE
SUBTITLE V - GENERAL ASSISTANCE ADMINISTRATION
CHAPTER 73 - ADMINISTERING BLOCK GRANTS
From the U.S. Government Publishing Office, www.gpo.gov

### CHAPTER 73—ADMINISTERING BLOCK GRANTS

Sec.
7301.
Purpose.
7302.
Definitions.
7303.
Reports and public hearings on proposed uses of amounts.
7304.
Availability of records.
7305.
State auditing requirements.

### §7301. Purpose

It is the purpose of this chapter to ensure that—

(1) block grant amounts are allocated for programs of special importance to meet the needs of local governments, residents of local governments, and other eligible entities; and

(2) all eligible local governments, residents of local governments, and other eligible entities are treated fairly in distributing block grant amounts.

(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1039.)

Historical and Revision Notes
Revised Section | Source (U.S. Code) | Source (Statutes at Large)
--- | --- | ---
7301 | 31:1243(note). | Aug. 13, 1981, Pub. L. 97–35, §1741(a), 95 Stat. 762.

In the chapter, the words "chief executive officer" are added for consistency in the revised title and with other titles of the United States Code.

In the section, before clause (1), the words "It is the purpose of this chapter" are added for clarity and consistency in the revised title and with other titles of the Code. The words "each State which receives block grant funds under this Act shall comply with the requirements of this chapter, to the extent that such funds may be used at the discretion of the State, as described in subsection (b)(1)(B)" are omitted as surplus and because of the restatement of the source provisions in section 7302 of the revised title. In clause (2), the words "urban and rural" are omitted as surplus.

### §7302. Definitions

In this chapter—

(1) "block grant amounts" means amounts received for a program that—

(A) directly allocates amounts to States only, except for amounts allocated for use by the agency administering the program; and

(B) provides that the State may use any part of the amounts at its discretion to continue to support activities financed on August 12, 1981, under programs whose authorizations were discontinued by the Omnibus Budget Reconciliation Act of 1981 (Public Law 97–35, 95 Stat. 357) and that were financed on August 12, 1981, by allocations by the United States Government to local governments or other eligible entities, or both local governments and other eligible entities.

(2) "State" includes the District of Columbia and territories and possessions of the United States.

(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1040.)

Historical and Revision Notes
Revised Section | Source (U.S. Code) | Source (Statutes at Large)
--- | --- | ---
7302 | 31:1243(note). | Aug. 13, 1981, Pub. L. 97–35, §1741(b), 95 Stat. 763.

In clause (1)(A), the word "Federal" is omitted as surplus because of section 101 of the revised title.

#### Editorial Notes

#### References in Text

The Omnibus Budget Reconciliation Act of 1981, referred to in par. (1)(B), is Pub. L. 97–35, Aug. 13, 1981, 95 Stat. 357. For complete classification of this Act to the Code, see Tables.

### §7303. Reports and public hearings on proposed uses of amounts

(a)(1) The chief executive officer of each State shall prepare for each fiscal year a report on the proposed use during the fiscal year of block grant amounts received by the State. The report shall include—

(A) a statement of goals and objectives;

(B) information on the types of activities to be supported, geographic areas to be served, and categories or characteristics of individuals to be served; and

(C) the criteria for, and way of, distributing the amounts, including details on the way amounts will be distributed on the basis of need to carry out the purposes of the block grant amounts.

(2) Beginning with the fiscal year ending September 30, 1983, each report shall describe how the State met the goals, objectives, and needs in using the amounts described in the report for the prior fiscal year.

(b) A State may not receive block grant amounts for a fiscal year until the State conducts a public hearing, after adequate public notice, on the proposed use and distribution of the amounts set out in the report prepared under subsection (a) of this section for the fiscal year.

(c) Each report prepared under subsection (a) of this section and changes to the report shall be made public in the State on a timely basis and in a way that encourages comments from interested local government and persons.

(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1040.)

Historical and Revision Notes
Revised Section | Source (U.S. Code) | Source (Statutes at Large)
--- | --- | ---
7303 | 31:1243(note). | Aug. 13, 1981, Pub. L. 97–35, §1742, 95 Stat. 763.

In subsection (a)(1), before clause (A), the words "for each fiscal year" and "during the fiscal year" are substituted for "for the previous fiscal year" for clarity.

In subsection (b), the words "by the State" are omitted as surplus.

In subsection (c), the words "by a State" are omitted as surplus.

### §7304. Availability of records

To evaluate and review the use of block grant amounts, consolidated assistance, and other grant programs established or provided for in the Omnibus Budget Reconciliation Act of 1981 (Public Law 97–35, 95 Stat. 357), records related to the amounts, assistance, or programs that are in the possession, custody, or control of a State, a political subdivision of a State, or a grantee of a State or political subdivision of a State shall be made available to the Comptroller General.

(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1040.)

Historical and Revision Notes
Revised Section | Source (U.S. Code) | Source (Statutes at Large)
--- | --- | ---
7304 | 31:1243(note). | Aug. 13, 1981, Pub. L. 97–35, §1744, 95 Stat. 764.

The words "records . . . shall be made available to" are substituted for "shall have access to any books, accounts, records, correspondence, or other documents" for consistency in the revised title and with other titles of the United States Code.

#### Editorial Notes

#### References in Text

The Omnibus Budget Reconciliation Act of 1981, referred to in text, is Pub. L. 97–35, Aug. 13, 1981, 95 Stat. 357. For complete classification of this Act to the Code, see Tables.

### §7305. State auditing requirements

(a) The chief executive officer of each State shall conduct financial and compliance audits of block grant amounts received under the Omnibus Budget Reconciliation Act of 1981 (Public Law 97–35, 95 Stat. 357) and amounts received under a consolidated assistance program established or provided for in the Act. An audit shall be conducted for the 2-year period beginning on October 1, 1981, and for each 2-year period thereafter. As far as practicable, the audit shall be conducted consistent with standards the Comptroller General prescribes for the audit of governmental entities, programs, activities, and functions.

(b) An audit under subsection (a) of this section is in place of other financial and compliance audits of those amounts that the chief executive officer of the State is required to conduct under another provision of the Omnibus Budget Reconciliation Act of 1981 (Public Law 97–35, 95 Stat. 357) unless the other provision, by explicit reference to this section, provides otherwise.

(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1041.)

Historical and Revision Notes
Revised Section | Source (U.S. Code) | Source (Statutes at Large)
--- | --- | ---
7305 | 31:1243(note). | Aug. 13, 1981, Pub. L. 97–35, §1745, 95 Stat. 764.

In subsection (a), the word "prescribes" is substituted for "established", and the word "entities" is substituted for "organizations", for consistency in the revised title and with other titles of the United States Code.

In subsection (b), the words "of funds" and "conducted" are omitted as surplus.

#### Editorial Notes

#### References in Text

The Omnibus Budget Reconciliation Act of 1981, referred to in text, is Pub. L. 97–35, Aug. 13, 1981, 95 Stat. 357. For complete classification of this Act to the Code, see Tables.