---
kind: "section"
citation: "42 U.S.C. § 291j–2"
title: "42"
title_heading: "The Public Health and Welfare"
number: "291j–2"
heading: "Allocation among States"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/291j-2"
units:
  - "Chapter 6A — Public Health Service"
  - "Subchapter IV — Construction and Modernization of Hospitals and Other Medical Facilities"
  - "Part B — Loan Guarantees and Loans for Modernization and Construction of Hospitals and Other Medical Facilities"
---

# §291j–2. Allocation among States

- (a) **Allotment regulations—** For each fiscal year, the total amount of principal of loans to [nonprofit](/usc/42/300s–3.md?p=3) private [agencies](/usc/42/8262.md?p=1) which may be guaranteed or loans to [public agencies](/usc/42/11851.md?p=8) which may be directly made under this part shall be allotted by the [Secretary](/usc/42/201.md?p=c) among the [States](/usc/42/201.md?p=f), in accordance with [regulations](/usc/42/201.md?p=d), on the basis of each [State](/usc/42/201.md?p=f)’s relative population, financial need, need for [construction](/usc/42/300s–3.md?p=7) of the facilities referred to in [section 291j–1(a) of this title](/usc/42/291j–1.md?p=a), and need for [modernization](/usc/42/300s–3.md?p=9) of such facilities.
- (b) **Reallotment—** Any amount allotted under [subsection (a)](#a) to a [State](/usc/42/201.md?p=f) for a fiscal year ending before July 1, 1973, and remaining unobligated at the end of such year shall remain available to such [State](/usc/42/201.md?p=f), for the purpose for which made, for the next two fiscal years (and for such years only), and any such amount shall be in addition to the amounts allotted to such [State](/usc/42/201.md?p=f) for such purpose for each of such next two fiscal years; except that, with the consent of any such [State](/usc/42/201.md?p=f), any such amount remaining unobligated at the end of the first of such next fiscal year may be reallotted (on such basis as the [Secretary](/usc/42/201.md?p=c) deems equitable and consistent with the purposes of this subchapter) to other [States](/usc/42/201.md?p=f) which have need therefor. Any amounts so reallotted to a [State](/usc/42/201.md?p=f) shall be available for the purposes for which made until the close of the second such next two fiscal years and shall be in addition to the amount allotted and available to such [State](/usc/42/201.md?p=f) for the same period.
- (c) **Time of availability of amounts for subsequent allotment—** Any amount allotted or reallotted to a [State](/usc/42/201.md?p=f) under this section for a fiscal year shall not, until the expiration of the period during which it is available for obligation, be considered as available for allotment for a subsequent fiscal year.
- (d) **Modernization or construction commenced on or after January 1, 1968—** The allotments of any [State](/usc/42/201.md?p=f) under [subsection (a)](#a) for the fiscal year ending June 30, 1971, and the succeeding fiscal year shall also be available to guarantee loans with respect to any [project](/usc/42/13641.md?p=2), for [modernization](/usc/42/300s–3.md?p=9) or [construction](/usc/42/300s–3.md?p=7) of a [nonprofit](/usc/42/300s–3.md?p=3) private [hospital](/usc/42/300s–3.md?p=1) or other health facility referred to in [section 291j–1(a)(1) of this title](/usc/42/291j–1.md?p=a-1), if the [modernization](/usc/42/300s–3.md?p=9) or [construction](/usc/42/300s–3.md?p=7) of such facility was not commenced earlier than January 1, 1968, and if the [State](/usc/42/201.md?p=f) certifies and the [Secretary](/usc/42/201.md?p=c) finds that without such guaranteed loan such facility could not be completed and begin to operate or could not continue to operate, but with such guaranteed loan would be able to do so: Provided, That this subsection shall not apply to more than two [projects](/usc/42/13641.md?p=2) in any one [State](/usc/42/201.md?p=f).

## Source credit

(July 1, 1944, ch. 373, title VI, § 622, as added Pub. L. 91–296, title II, § 201, June 30, 1970, 84 Stat. 345.)