--- kind: "section" citation: "29 U.S.C. § 731" title: "29" title_heading: "Labor" number: "731" heading: "Payments to States" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/29/731" units: - "Chapter 16 — Vocational Rehabilitation and Other Rehabilitation Services" - "Subchapter I — Vocational Rehabilitation Services" - "Part B — Basic Vocational Rehabilitation Services" --- # §731. Payments to States - (a) **Amount—** - (1) Except as provided in [paragraph (2)](#a-2), from each [State](/usc/29/705.md?p=34)’s allotment under this part for any fiscal year, the Commissioner shall pay to a [State](/usc/29/705.md?p=34) an amount equal to the [Federal share](/usc/29/705.md?p=14-A) of the cost of [vocational rehabilitation services](/usc/29/705.md?p=40) under the plan for that [State](/usc/29/705.md?p=34) approved under [section 721 of this title](/usc/29/721.md), including expenditures for the administration of the [State](/usc/29/705.md?p=34) plan. - (2) - (A) The total of payments under [paragraph (1)](#a-1) to a [State](/usc/29/705.md?p=34) for a fiscal year may not exceed its allotment under subsection (a) of [section 730 of this title](/usc/29/730.md) for such year. - (B) The amount otherwise payable to a [State](/usc/29/705.md?p=34) for a fiscal year under this section shall be reduced by the amount by which expenditures from non-Federal sources under the [State](/usc/29/705.md?p=34) plan under this subchapter for any previous fiscal year are less than the total of such expenditures for the second fiscal year preceding that previous fiscal year. - (C) The Commissioner may waive or modify any requirement or limitation under [subparagraph (B)](#a-2-B) or [section 721(a)(17) of this title](/usc/29/721.md?p=a-17) if the Commissioner determines that a waiver or modification is an equitable response to exceptional or uncontrollable circumstances affecting the [State](/usc/29/705.md?p=34). - (3) - (A) Except as provided in [subparagraph (B)](#a-3-B), the amount of a payment under this section with respect to any [construction](/usc/29/705.md?p=6-A) project in any [State](/usc/29/705.md?p=34) shall be equal to the same percentage of the cost of such project as the [Federal share](/usc/29/705.md?p=14-A) that is applicable in the case of rehabilitation facilities (as defined in [section 291o(g)](/usc/42/291o.md?p=g) of title 42), in such [State](/usc/29/705.md?p=34). - (B) If the [Federal share](/usc/29/705.md?p=14-A) with respect to rehabilitation facilities in such [State](/usc/29/705.md?p=34) is determined pursuant to [section 291o(b)(2)](/usc/42/291o.md?p=b-2) of title 42, the percentage of the cost for purposes of this section shall be determined in accordance with regulations prescribed by the Commissioner designed to achieve as nearly as practicable results comparable to the results obtained under such section. - (b) **Method of computation and payment—** The method of computing and paying amounts pursuant to [subsection (a)](#a) shall be as follows: - (1) The Commissioner shall, prior to the beginning of each calendar quarter or other period prescribed by the Commissioner, estimate the amount to be paid to each [State](/usc/29/705.md?p=34) under the provisions of such subsection for such period, such estimate to be based on such records of the [State](/usc/29/705.md?p=34) and information furnished by it, and such other investigation as the Commissioner may find necessary. - (2) The Commissioner shall pay, from the allotment available therefor, the amount so estimated by the Commissioner for such period, reduced or increased, as the case may be, by any sum (not previously adjusted under this paragraph) by which the Commissioner finds that the estimate of the amount to be paid the [State](/usc/29/705.md?p=34) for any prior period under such subsection was greater or less than the amount which should have been paid to the [State](/usc/29/705.md?p=34) for such prior period under such subsection. Such payment shall be made prior to audit or settlement by the Government Accountability Office, shall be made through the disbursing facilities of the Treasury Department, and shall be made in such installments as the Commissioner may determine. ## Source credit (Pub. L. 93–112, title I, § 111, as added Pub. L. 105–220, title IV, § 404, Aug. 7, 1998, 112 Stat. 1162; amended Pub. L. 105–277, div. A, § 101(f) [title VIII, § 402(b)(8)], Oct. 21, 1998, 112 Stat. 2681–337, 2681–413; Pub. L. 108–271, § 8(b), July 7, 2004, 118 Stat. 814; Pub. L. 113–128, title IV, § 420, July 22, 2014, 128 Stat. 1656.) ## Notes ### Editorial Notes ### Prior Provisions A prior section 731, Pub. L. 93–112, title I, § 111, Sept. 26, 1973, 87 Stat. 371; Pub. L. 95–602, title I, § 122(b)(1), Nov. 6, 1978, 92 Stat. 2987; Pub. L. 99–506, title II, § 208, title X, § 1001(b)(6), Oct. 21, 1986, 100 Stat. 1818, 1842; Pub. L. 100–630, title II, § 202(e)(1), (2)(A), (3), Nov. 7, 1988, 102 Stat. 3306; Pub. L. 102–569, title I, § 132, Oct. 29, 1992, 106 Stat. 4390; Pub. L. 103–73, title I, § 107(f), Aug. 11, 1993, 107 Stat. 723, related to payments to States, prior to the general amendment of this subchapter by Pub. L. 105–220. ### Amendments 2014—Subsec. (a)(2)(B). Pub. L. 113–128 substituted “The” for “For fiscal year 1994 and each fiscal year thereafter, the”, “this subchapter for any previous” for “this subchapter for the previous”, and “year preceding that previous” for “year preceding the previous”. 2004—Subsec. (b)(2). Pub. L. 108–271 substituted “Government Accountability Office” for “General Accounting Office”. 1998—Pub. L. 105–277 made technical amendment to section designation and catchline in original. ### Statutory Notes and Related Subsidiaries ### Definitions of Terms in Pub. L. 113–128 Except as otherwise provided, definitions in section 3 of Pub. L. 113–128, which is classified to section 3102 of this title, apply to this section.