---
kind: "section"
citation: "42 U.S.C. § 280c–1"
title: "42"
title_heading: "The Public Health and Welfare"
number: "280c–1"
heading: "Limitation on duration of grant and requirement of matching funds"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/280c-1"
units:
  - "Chapter 6A — Public Health Service"
  - "Subchapter II — General Powers and Duties"
  - "Part K — Health Care Services in the Home and Public Health Programs for Dementia"
  - "Subpart i — grants for demonstration projects"
---

# §280c–1. Limitation on duration of grant and requirement of matching funds

- (a) **Limitation on duration of grant—** The period during which payments are made to a [State](/usc/42/201.md?p=f) from a grant under [section 280c(a) of this title](/usc/42/280c.md?p=a) may not exceed 3 years. Such payments shall be subject to annual evaluation by the [Secretary](/usc/42/201.md?p=c).
- (b) **Requirement of matching funds—**
  - (1)
    - (A) For the first year of payments to a [State](/usc/42/201.md?p=f) from a grant under [section 280c(a) of this title](/usc/42/280c.md?p=a), the [Secretary](/usc/42/201.md?p=c) may not make such payments in an amount exceeding 75 percent of the costs of [services](/usc/42/201.md?p=a) to be provided by the [State](/usc/42/201.md?p=f) pursuant to such section.
    - (B) For the second year of such payments to a [State](/usc/42/201.md?p=f), the [Secretary](/usc/42/201.md?p=c) may not make such payments in an amount exceeding 65 percent of the costs of such [services](/usc/42/201.md?p=a).
    - (C) For the third year of such payments to a [State](/usc/42/201.md?p=f), the [Secretary](/usc/42/201.md?p=c) may not make such payments in an amount exceeding 55 percent of the costs of such [services](/usc/42/201.md?p=a).
  - (2) The [Secretary](/usc/42/201.md?p=c) may not make a grant under [section 280c(a) of this title](/usc/42/280c.md?p=a) to a [State](/usc/42/201.md?p=f) unless the [State](/usc/42/201.md?p=f) agrees to make available, directly or through donations from public or private entities, non-Federal contributions toward the costs of [services](/usc/42/201.md?p=a) to be provided pursuant to such section in an amount equal to—
    - (A) for the first year of payments to the [State](/usc/42/201.md?p=f) from the grant, not less than $25 (in cash or in kind under [subsection (c)](#c)) for each $75 of Federal funds provided in the grant;
    - (B) for the second year of such payments to the [State](/usc/42/201.md?p=f), not less than $35 (in cash or in kind under [subsection (c)](#c)) for each $65 of such Federal funds; and
    - (C) for the third year of such payments to the [State](/usc/42/201.md?p=f), not less than $45 (in cash or in kind under [subsection (c)](#c)) for each $55 of such Federal funds.
- (c) **Determination of amount of non-Federal contribution—** Non-Federal contributions required in [subsection (b)](#b) may be in cash or in kind, fairly evaluated, including plant, equipment, or [services](/usc/42/201.md?p=a). Amounts provided by the Federal Government, or [services](/usc/42/201.md?p=a) assisted or subsidized to any significant extent by the Federal Government, may not be included in determining the amount of such non-Federal contributions.

## Source credit

(July 1, 1944, ch. 373, title III, § 396, as added Pub. L. 100–175, title VI, § 602, Nov. 29, 1987, 101 Stat. 979.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 396 of act July 1, 1944, ch. 373, title III, formerly § 398, as added Oct. 22, 1965, Pub. L. 89–291, § 2, 79 Stat. 1065; renumbered § 397 and amended Mar. 13, 1970, Pub. L. 91–212, §§ 2(f), 7, 10(c)(3), (d)(2)(A), 84 Stat. 63, 65, 67; June 18, 1973, Pub. L. 93–45, title I, § 107(e), 87 Stat. 92; renumbered § 396 and amended July 23, 1974, Pub. L. 93–353, title II, §§ 202(e), (f), 203(d), 204, 88 Stat. 372, 373, which related to grants for establishment of regional medical libraries, was classified to section 280b–8 of this title, prior to repeal by Pub. L. 99–158, § 3(b), Nov. 20, 1985, 99 Stat. 879.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective Oct. 1, 1987, see section 701(a) of Pub. L. 100–175, set out as an Effective Date of 1987 Amendment note under section 3001 of this title.