---
kind: "section"
citation: "42 U.S.C. § 3154c"
title: "42"
title_heading: "The Public Health and Welfare"
number: "3154c"
heading: "Direct expenditure or redistribution by recipient"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/3154c"
units:
  - "Chapter 38 — Public Works and Economic Development"
  - "Subchapter II — Grants for Public Works and Economic Development"
---

# §3154c. Direct expenditure or redistribution by recipient

- (a) **In general—** Subject to [subsection (b)](#b), a recipient of a [grant](/usc/42/3122.md?p=8) under section [3141](/usc/42/3141.md), [3143](/usc/42/3143.md), or [3147](/usc/42/3147.md) of this title may directly expend the [grant](/usc/42/3122.md?p=8) funds or may redistribute the funds in the form of a subgrant to other [eligible recipients](/usc/42/3122.md?p=6-A) to fund required components of the scope of work approved for the [project](/usc/42/13641.md?p=2).
- (b) **Limitation—** A recipient may not redistribute [grant](/usc/42/3122.md?p=8) funds received under section [3141](/usc/42/3141.md) or [3143](/usc/42/3143.md) of this title to a for-profit entity.
- (c) **Economic adjustment—** Subject to [subsection (d)](#d), a recipient of a [grant](/usc/42/3122.md?p=8) under [section 3149 of this title](/usc/42/3149.md) may directly expend the [grant](/usc/42/3122.md?p=8) funds or may redistribute the funds to public and private entities in the form of a [grant](/usc/42/3122.md?p=8), loan, loan guarantee, payment to reduce interest on a loan guarantee, or other appropriate assistance.
- (d) **Limitation—** Under [subsection (c)](#c), a recipient may not provide any [grant](/usc/42/3122.md?p=8) to a private for-profit entity.

## Source credit

(Pub. L. 89–136, title II, § 217, as added Pub. L. 108–373, title II, § 212(a), Oct. 27, 2004, 118 Stat. 1766.)