---
kind: "section"
citation: "42 U.S.C. § 300x–5"
title: "42"
title_heading: "The Public Health and Welfare"
number: "300x–5"
heading: "Restrictions on use of payments"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/300x-5"
units:
  - "Chapter 6A — Public Health Service"
  - "Subchapter XVII — Block Grants"
  - "Part B — Block Grants Regarding Mental Health and Substance Use"
  - "Subpart i — block grants for community mental health services"
---

# §300x–5. Restrictions on use of payments

- (a) **In general—** A [funding agreement](/usc/42/300x–8.md?p=2) for a grant under [section 300x of this title](/usc/42/300x.md) is that the [State](/usc/42/201.md?p=f) involved will not expend the grant—
  - (1) to provide inpatient [services](/usc/42/201.md?p=a);
  - (2) to make cash payments to intended recipients of health [services](/usc/42/201.md?p=a);
  - (3) to purchase or improve land, purchase, construct, or permanently improve (other than minor remodeling) any building or other facility, or purchase major medical equipment;
  - (4) to satisfy any requirement for the expenditure of non-Federal funds as a condition for the receipt of Federal funds; or
  - (5) to provide financial assistance to any entity other than a public or [nonprofit](/usc/42/300s–3.md?p=3) private entity.
- (b) **Limitation on administrative expenses—** A [funding agreement](/usc/42/300x–8.md?p=2) for a grant under [section 300x of this title](/usc/42/300x.md) is that the [State](/usc/42/201.md?p=f) involved will not expend more than 5 percent of the grant for administrative expenses with respect to the grant.

## Source credit

(July 1, 1944, ch. 373, title XIX, § 1916, as added Pub. L. 102–321, title II, § 201(2), July 10, 1992, 106 Stat. 384.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 300x–5, act July 1, 1944, ch. 373, title XIX, § 1917, formerly § 1916, as added Aug. 13, 1981, Pub. L. 97–35, title IX, § 901, 95 Stat. 549; renumbered § 1917 and amended Oct. 19, 1984, Pub. L. 98–509, title I, §§ 104, 106(a), (b), (d), (g), 98 Stat. 2357–2359; Oct. 7, 1985, Pub. L. 99–117, § 7(b), 99 Stat. 493; Nov. 18, 1988, Pub. L. 100–690, title II, §§ 2037(a)(1), (b), 2052(b), 102 Stat. 4203, 4208; Aug. 16, 1989, Pub. L. 101–93, § 2(p)(2), 103 Stat. 609, related to reports and audits relative to grants for alcohol, drug abuse, and mental health services, prior to repeal by Pub. L. 102–321, § 201(2).

A prior section 1916 of act July 1, 1944, was classified to section 300x–4 of this title prior to repeal by Pub. L. 102–321.