42usc702

ALLOTMENTS TO STATES AND
FEDERAL SET-ASIDE
SEC. 502. [42 U.S.C. 702] (a)(1) Of the amounts appropriated under section 501(a) for a
fiscal year that are not in excess of $600,000,000, the Secretary shall retain an amount
equal to 15 percent for the purpose of carrying out activities described in section
501(a)(2). The authority of the Secretary to enter into any contracts under this title is
effective for any fiscal year only to such extent or in such amounts as are provided in
appropriations Acts.

(2) For purposes of paragraph (1)—
(A) amounts retained by the Secretary for training shall be used to make grants to
public or nonprofit private institutions of higher learning for training personnel
for health care and related services for mothers and children; and
(B) amounts retained by the Secretary for research shall be used to make grants
to, contracts with, or jointly financed cooperative agreements with, public or
nonprofit institutions of higher learning and public or nonprofit private agencies
and organizations engaged in research or in maternal and child health or programs
for children with special health care needs for research projects relating to
maternal and child health services or services for children with special health care
needs which show promise of substantial contribution to the advancement thereof.
(3) No funds may be made available by the Secretary under this subsection or
subsection (b) unless an application therefor has been submitted to, and approved
by, the Secretary. Such application shall be in such form, be submitted in such
manner, and contain and be accompanied by such information as the Secretary
may specify. No such application may be approved unless it contains assurances
that the applicant will use the funds provided only for the purposes specified in
the approved application and will establish such fiscal control and fund
accounting procedures as may be necessary to assure proper disbursement and
accounting of Federal funds paid to the applicant under this title.
(b)(1)(A) Of the amounts appropriated under section 501(a) for a fiscal year in excess of
$600,000,000 the Secretary shall retain an amount equal to 12 3/4 percent thereof for the
projects described in subparagraphs (A) through (F) of section 501(a)(3).
(B) Any amount appropriated under section 501(a) for a fiscal year in excess of
$600,000,000 that remains after the Secretary has retained the applicable amount
(if any) under subparagraph (A) shall be retained by the Secretary in accordance
with subsection (a) and allocated to the States in accordance with subsection (c).
(2)(A) Of the amounts retained for the purpose of carrying out activities described
in section 501(a)(3)(A), (B), (C), (D) and (E), the Secretary shall provide
preference to qualified applicants which demonstrate that the activities to be
carried out with such amounts shall be in areas with a high infant mortality rate

(relative to the average infant mortality rate in the United States or in the State in
which the area is located).
(B) In carrying out activities described in section 501(a)(3)(D), the Secretary shall
not provide for developing or expanding a maternal and child health center unless
the Secretary has received satisfactory assurances that there will be applied,
towards the costs of such development or expansion, non-Federal funds in an
amount at least equal to the amount of funds provided under this title toward such
development or expansion.
(c) From the remaining amounts appropriated under section 501(a) for any fiscal year that
are not in excess of $600,000,000, the Secretary shall allot to each State which has
transmitted an application for the fiscal year under section 505(a), an amount determined
as follows:
(1) The Secretary shall determine, for each State—
(A)(i) the amount provided or allotted by the Secretary to the State and to entities
in the State under the provisions of the consolidated health programs (as defined
in section 501(b)(1)), other than for any of the projects or programs described in
subsection (a), from appropriations for fiscal year 1981,
(ii) the proportion that such amount for that State bears to the total of such
amounts for all the States, and
(B)(i) the number of low income children in the State, and
(ii) the proportion that such number of children for that State bears to the total of
such numbers of children for all the States.
(2) Each such State shall be allotted for each fiscal year an amount equal to the
sum of—
(A) the amount of the allotment to the State under this subsection in fiscal year
1983, and
(B) the State's proportion (determined under paragraph (1)(B)(ii)) of the amount
by which the allotment available under this subsection for all the States for that
fiscal year exceeds the amount that was available under this subsection for
allotment for all the States for fiscal year 1983.
(d)(1) To the extent that all the funds appropriated under this title for a fiscal year are not
otherwise allotted to States either because all the States have not qualified for such
allotments under section 505(a) for the fiscal year or because some States have indicated
in their descriptions of activities under section 505(a) that they do not intend to use the
full amount of such allotments, such excess shall be allotted among the remaining States
in proportion to the amount otherwise allotted to such States for the fiscal year without
regard to this paragraph.
(2) To the extent that all the funds appropriated under this title for a fiscal year are not
otherwise allotted to States because some State allotments are offset under section
506(b)(2), such excess shall be allotted among the remaining States in proportion to the
amount otherwise allotted to such States for the fiscal year without regard to this
paragraph.