---
kind: "section"
citation: "42 U.S.C. § 1774"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1774"
heading: "Disbursement directly to schools or institutions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/1774"
units:
  - "Chapter 13A — Child Nutrition"
---

# §1774. Disbursement directly to schools or institutions

- (a) The [Secretary](/usc/42/1784.md?p=4) shall withhold funds payable to a [State](/usc/42/1784.md?p=1) under this chapter and disburse the funds directly to schools or institutions within the [State](/usc/42/1784.md?p=1) for the purposes authorized by this chapter to the extent that the [Secretary](/usc/42/1784.md?p=4) has so withheld and disbursed such funds continuously since October 1, 1980, but only to such extent (except as otherwise required by [subsection (b)](#b)). Any funds so withheld and disbursed by the [Secretary](/usc/42/1784.md?p=4) shall be used for the same purposes, and shall be subject to the same conditions, as applicable to a [State](/usc/42/1784.md?p=1) disbursing funds made available under this chapter. If the [Secretary](/usc/42/1784.md?p=4) is administering (in whole or in part) any program authorized under this chapter, the [State](/usc/42/1784.md?p=1) in which the [Secretary](/usc/42/1784.md?p=4) is administering the program may, upon request to the [Secretary](/usc/42/1784.md?p=4), assume administration of that program.
- (b) If a [State educational agency](/usc/42/1784.md?p=2) is not permitted by law to disburse the funds paid to it under this chapter to any of the nonpublic schools in the [State](/usc/42/1784.md?p=1), the [Secretary](/usc/42/1784.md?p=4) shall disburse the funds directly to such schools within the [State](/usc/42/1784.md?p=1) for the same purposes and subject to the same conditions as are authorized or required with respect to the disbursements to public schools within the [State](/usc/42/1784.md?p=1) by the [State educational agency](/usc/42/1784.md?p=2).

## Source credit

(Pub. L. 89–642, § 5, as added Pub. L. 97–35, title VIII, § 817(e), Aug. 13, 1981, 95 Stat. 532.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 1774, Pub. L. 89–642, § 5, Oct. 11, 1966, 80 Stat. 887; Pub. L. 91–248, § 2, May 14, 1970, 84 Stat. 208; Pub. L. 92–433, § 6(a)–(d), Sept. 26, 1972, 86 Stat. 727; Pub. L. 93–326, § 5, June 30, 1974, 88 Stat. 287; Pub. L. 94–105, § 18, Oct. 7, 1975, 89 Stat. 525; Pub. L. 95–166, §§ 4, 20(3), (4), Nov. 10, 1977, 91 Stat. 1332, 1346; Pub. L. 95–627, § 6(b), Nov. 10, 1978, 92 Stat. 3620; Pub. L. 96–499, title II, § 211, Dec. 5, 1980, 94 Stat. 2603, made provision for food service equipment assistance program, prior to repeal by Pub. L. 97–35, § 805(b).

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective Oct. 1, 1981, see section 820(a)(4) of Pub. L. 97–35, set out as an Effective Date of 1981 Amendment note under section 1753 of this title.

### Report to Congress of Needs for Equipment To Be Submitted by June 30, 1973

Pub. L. 92–433, § 6(e), Sept. 26, 1972, 86 Stat. 729, directed Secretary, to assist Congress in determining amounts needed annually, to conduct a survey among States and school districts on unmet needs for equipment in schools eligible for assistance under former section 1774 of this title, results of such survey to be reported to Congress by June 30, 1973.