---
kind: "section"
citation: "42 U.S.C. § 3146"
title: "42"
title_heading: "The Public Health and Welfare"
number: "3146"
heading: "Regulations on relative needs and allocations"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/3146"
units:
  - "Chapter 38 — Public Works and Economic Development"
  - "Subchapter II — Grants for Public Works and Economic Development"
---

# §3146. Regulations on relative needs and allocations


In promulgating rules, regulations, and procedures for assistance under this subchapter, the [Secretary](/usc/42/3122.md?p=13) shall ensure that—

- (1) the relative needs of eligible areas are given adequate consideration by the [Secretary](/usc/42/3122.md?p=13), as determined based on, among other relevant factors—
  - (A) the severity of the rates of unemployment in the eligible areas and the duration of the unemployment;
  - (B) the per capita income levels, the labor force participation rate, and the extent of underemployment in eligible areas; and
  - (C) the outmigration of population from eligible areas and the extent to which the outmigration is causing economic injury in the eligible areas;
- (2) [allocations](/usc/42/2021b.md?p=2) of assistance under this subchapter are prioritized to ensure that the level of economic distress of an area, rather than a preference for a geographic area or a specific type of economic distress, is the primary factor in allocating the assistance;
- (3)
  - (A) rural and urban economically distressed areas are not harmed by the establishment or implementation by the [Secretary](/usc/42/3122.md?p=13) of a private sector leveraging goal for a [project](/usc/42/13641.md?p=2) under this subchapter;
  - (B) any private sector leveraging goal established by the [Secretary](/usc/42/3122.md?p=13) does not prohibit or discourage [grant](/usc/42/3122.md?p=8) applicants under this subchapter from public works in, or economic development of, rural or urban economically distressed areas; and
  - (C) the relevant Committees of Congress are notified prior to making any changes to any private sector leveraging goal; and
- (4) [grants](/usc/42/3122.md?p=8) made under this subchapter promote job creation and retention and will have a high probability of meeting or exceeding applicable performance requirements established in connection with the [grants](/usc/42/3122.md?p=8).

## Source credit

(Pub. L. 89–136, title II, § 206, as added Pub. L. 105–393, title I, § 102(a), Nov. 13, 1998, 112 Stat. 3604; amended Pub. L. 108–373, title II, § 204, Oct. 27, 2004, 118 Stat. 1761; Pub. L. 118–272, div. B, title II, § 2216, Jan. 4, 2025, 138 Stat. 3181.)

## Notes

### Editorial Notes

### Amendments

2025—Par. (1)(B). Pub. L. 118–272, § 2216(1), added subpar. (B) and struck out former subpar. (B) which read as follows: “the income levels and the extent of underemployment in eligible areas; and”.

Par. (4). Pub. L. 118–272, § 2216(2), inserted “and retention” after “creation”.

2004—Pars. (3), (4). Pub. L. 108–373 added pars. (3) and (4).

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective Feb. 11, 1999, see section 105 of Pub. L. 105–393, set out as a note under section 3121 of this title.