---
kind: "section"
citation: "29 U.S.C. § 3302"
title: "29"
title_heading: "Labor"
number: "3302"
heading: "State distribution of funds; matching requirement"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/29/3302"
units:
  - "Chapter 32 — Workforce Innovation and Opportunity"
  - "Subchapter II — Adult Education and Literacy"
  - "Part B — State Provisions"
---

# §3302. State distribution of funds; matching requirement

- (a) **State distribution of funds—** Each [eligible agency](/usc/29/3272.md?p=3) receiving a grant under [section 3291(b) of this title](/usc/29/3291.md?p=b) for a fiscal year—
  - (1) shall use not less than 82.5 percent of the grant funds to award grants and contracts under [section 3321 of this title](/usc/29/3321.md) and to carry out [section 3305 of this title](/usc/29/3305.md), of which not more than 20 percent of such amount shall be available to carry out [section 3305 of this title](/usc/29/3305.md);
  - (2) shall use not more than 12.5 percent of the grant funds to carry out [State](/usc/29/3102.md?p=56) leadership activities under [section 3303 of this title](/usc/29/3303.md); and
  - (3) shall use not more than 5 percent of the grant funds, or $85,000, whichever is greater, for the administrative expenses of the [eligible agency](/usc/29/3272.md?p=3).
- (b) **Matching requirement—**
  - (1) **In general—** In order to receive a grant from the [Secretary](/usc/29/3272.md?p=15) under [section 3291(b) of this title](/usc/29/3291.md?p=b) each [eligible agency](/usc/29/3272.md?p=3) shall provide, for the costs to be incurred by the [eligible agency](/usc/29/3272.md?p=3) in carrying out the [adult education and literacy activities](/usc/29/3272.md?p=2) for which the grant is awarded, a non-Federal contribution in an amount that is not less than—
    - (A) in the case of an [eligible agency](/usc/29/3272.md?p=3) serving an [outlying area](/usc/29/3102.md?p=45), 12 percent of the total amount of funds expended for [adult education and literacy activities](/usc/29/3272.md?p=2) in the [outlying area](/usc/29/3102.md?p=45), except that the [Secretary](/usc/29/3272.md?p=15) may decrease the amount of funds required under this subparagraph for an [eligible agency](/usc/29/3272.md?p=3); and
    - (B) in the case of an [eligible agency](/usc/29/3272.md?p=3) serving a [State](/usc/29/3102.md?p=56), 25 percent of the total amount of funds expended for [adult education and literacy activities](/usc/29/3272.md?p=2) in the [State](/usc/29/3102.md?p=56).
  - (2) **Non-Federal contribution—** An [eligible agency](/usc/29/3272.md?p=3)’s non-Federal contribution required under [paragraph (1)](#b-1) may be provided in cash or in kind, fairly evaluated, and shall include only non-Federal funds that are used for [adult education and literacy activities](/usc/29/3272.md?p=2) in a manner that is consistent with the purpose of this subchapter.

## Source credit

(Pub. L. 113–128, title II, § 222, July 22, 2014, 128 Stat. 1614.)

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective on the first day of the first full program year after July 22, 2014 (July 1, 2015), see section 506 of Pub. L. 113–128, set out as a note under section 3101 of this title.