---
kind: "section"
citation: "20 U.S.C. § 2412"
title: "20"
title_heading: "Education"
number: "2412"
heading: "Prohibition on use of funds to induce out-of-State relocation of businesses"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/2412"
units:
  - "Chapter 44 — Career and Technical Education"
  - "Subchapter II — General Provisions"
  - "Part B — State Administrative Provisions"
---

# §2412. Prohibition on use of funds to induce out-of-State relocation of businesses


No funds provided under this chapter shall be used for the purpose of directly providing incentives or inducements to an employer to relocate a business enterprise from one [State](/usc/20/2302.md?p=49) to another [State](/usc/20/2302.md?p=49) if such relocation will result in a reduction in the number of jobs available in the [State](/usc/20/2302.md?p=49) where the business enterprise is located before such incentives or inducements are offered.


## Source credit

(Pub. L. 88–210, title II, § 222, formerly title III, § 322, as added Pub. L. 109–270, § 1(b), Aug. 12, 2006, 120 Stat. 745; renumbered title II, § 222, Pub. L. 115–224, title II, § 201(a)(5), (7), July 31, 2018, 132 Stat. 1621.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 2412, Pub. L. 88–210, title III, § 322, as added Pub. L. 105–332, § 1(b), Oct. 31, 1998, 112 Stat. 3124, prohibited use of funds to induce out-of-State relocation of businesses, prior to the general amendment of this chapter by Pub. L. 109–270.

Another prior section 2412, Pub. L. 88–210, title IV, § 412, as added Pub. L. 101–392, title IV, § 406(a), Sept. 25, 1990, 104 Stat. 812, authorized grants for development, production, and distribution of instructional telecommunications materials and services, prior to the general amendment of this chapter by Pub. L. 105–332.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2018 Amendment

Amendment by Pub. L. 115–224 effective July 1, 2019, see section 4 of Pub. L. 115–224, set out as a note under section 2301 of this title.