---
kind: "section"
citation: "42 U.S.C. § 702"
title: "42"
title_heading: "The Public Health and Welfare"
number: "702"
heading: "Allotment to States and Federal set-aside"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/702"
units:
  - "Chapter 7 — Social Security"
  - "Subchapter V — Maternal and Child Health Services Block Grant"
---

# §702. Allotment to States and Federal set-aside

- (a) **Special projects—**
  - (1) Of the amounts appropriated under [section 701(a) of this title](/usc/42/701.md?p=a) for a [fiscal year](/usc/42/619.md?p=3) that are not in excess of $600,000,000, the [Secretary](/usc/42/1301.md?p=a-6) shall retain an amount equal to 15 percent for the purpose of carrying out activities described in [section 701(a)(2) of this title](/usc/42/701.md?p=a-2). The authority of the [Secretary](/usc/42/1301.md?p=a-6) to enter into any contracts under this subchapter is effective for any [fiscal year](/usc/42/619.md?p=3) only to such extent or in such amounts as are provided in appropriations Acts.
  - (2) For purposes of [paragraph (1)](#a-1)—
    - (A) amounts retained by the [Secretary](/usc/42/1301.md?p=a-6) for training shall be used to make [grants](/usc/42/1397j.md?p=10) to public or [nonprofit](/usc/42/300s–3.md?p=3) private institutions of higher learning for training personnel for health care and related services for mothers and children; and
    - (B) amounts retained by the [Secretary](/usc/42/1301.md?p=a-6) for research shall be used to make [grants](/usc/42/1397j.md?p=10) to, contracts with, or jointly financed cooperative agreements with, public or [nonprofit](/usc/42/300s–3.md?p=3) institutions of higher learning and public or [nonprofit](/usc/42/300s–3.md?p=3) private [agencies](/usc/42/1397n–12.md?p=1) and organizations engaged in research or in maternal and [child](/usc/42/1382c.md?p=c) health or programs for children with special health care needs for research [projects](/usc/42/13641.md?p=2) relating to maternal and [child](/usc/42/1382c.md?p=c) health services or services for children with special health care needs which show promise of substantial contribution to the advancement thereof.
  - (3) No funds may be made available by the [Secretary](/usc/42/1301.md?p=a-6) under this subsection or [subsection (b)](#b) unless an application therefor has been submitted to, and approved by, the [Secretary](/usc/42/1301.md?p=a-6). Such application shall be in such form, be submitted in such manner, and contain and be accompanied by such information as the [Secretary](/usc/42/1301.md?p=a-6) may specify. No such application may be approved unless it contains assurances that the applicant will use the funds provided only for the purposes specified in the approved application and will establish such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement and accounting of Federal funds paid to the applicant under this subchapter.
- (b) **Excess funds; preference—**
  - (1)
    - (A) Of the amounts appropriated under [section 701(a) of this title](/usc/42/701.md?p=a) for a [fiscal year](/usc/42/619.md?p=3) in excess of $600,000,000 the [Secretary](/usc/42/1301.md?p=a-6) shall retain an amount equal to 12¾ percent thereof for the [projects](/usc/42/13641.md?p=2) described in subparagraphs (A) through (F) of [section 701(a)(3) of this title](/usc/42/701.md?p=a-3).
    - (B) Any amount appropriated under [section 701(a) of this title](/usc/42/701.md?p=a) for a [fiscal year](/usc/42/619.md?p=3) in excess of $600,000,000 that remains after the [Secretary](/usc/42/1301.md?p=a-6) has retained the applicable amount (if any) under [subparagraph (A)](#b-1-A) shall be retained by the [Secretary](/usc/42/1301.md?p=a-6) in accordance with [subsection (a)](#a) and allocated to the [States](/usc/42/619.md?p=5) in accordance with [subsection (c)](#c).
  - (2)
    - (A) Of the amounts retained for the purpose of carrying out activities described in [section 701(a)(3)(A)](/usc/42/701.md?p=a-3-A), (B), (C), (D) and (E) of this title, the [Secretary](/usc/42/1301.md?p=a-6) shall provide preference to qualified applicants which demonstrate that the activities to be carried out with such amounts shall be in areas with a high infant mortality rate (relative to the average infant mortality rate in the [United States](/usc/42/1301.md?p=a-2) or in the [State](/usc/42/619.md?p=5) in which the area is located).
    - (B) In carrying out activities described in [section 701(a)(3)(D) of this title](/usc/42/701.md?p=a-3-D), the [Secretary](/usc/42/1301.md?p=a-6) shall not provide for developing or expanding a maternal and [child](/usc/42/1382c.md?p=c) health center unless the [Secretary](/usc/42/1301.md?p=a-6) has received satisfactory assurances that there will be applied, towards the costs of such development or expansion, [non-Federal funds](/usc/42/629a.md?p=a-9) in an amount at least equal to the amount of funds provided under this subchapter toward such development or expansion.
- (c) **Allotments to States—** From the remaining amounts appropriated under [section 701(a) of this title](/usc/42/701.md?p=a) for any [fiscal year](/usc/42/619.md?p=3) that are not in excess of $600,000,000, the [Secretary](/usc/42/1301.md?p=a-6) shall allot to each [State](/usc/42/619.md?p=5) which has transmitted an application for the [fiscal year](/usc/42/619.md?p=3) under [section 705(a) of this title](/usc/42/705.md?p=a), an amount determined as follows:
  - (1) The [Secretary](/usc/42/1301.md?p=a-6) shall determine, for each [State](/usc/42/619.md?p=5)—
    - (A)
      - (i) the amount provided or allotted by the [Secretary](/usc/42/1301.md?p=a-6) to the [State](/usc/42/619.md?p=5) and to entities in the [State](/usc/42/619.md?p=5) under the provisions of the [consolidated health programs](/usc/42/701.md?p=b-1) (as defined in [section 701(b)(1) of this title](/usc/42/701.md?p=b-1)), other than for any of the [projects](/usc/42/13641.md?p=2) or programs described in [subsection (a)](#a), from appropriations for [fiscal year](/usc/42/619.md?p=3) 1981,
      - (ii) the proportion that such amount for that [State](/usc/42/619.md?p=5) bears to the total of such amounts for all the [States](/usc/42/619.md?p=5), and
    - (B)
      - (i) the number of [low income](/usc/42/701.md?p=b-2) children in the [State](/usc/42/619.md?p=5), and
      - (ii) the proportion that such number of children for that [State](/usc/42/619.md?p=5) bears to the total of such numbers of children for all the [States](/usc/42/619.md?p=5).
  - (2) Each such [State](/usc/42/619.md?p=5) shall be allotted for each [fiscal year](/usc/42/619.md?p=3) an amount equal to the sum of—
    - (A) the amount of the allotment to the [State](/usc/42/619.md?p=5) under this subsection in [fiscal year](/usc/42/619.md?p=3) 1983, and
    - (B) the [State](/usc/42/619.md?p=5)’s proportion (determined under [paragraph (1)(B)(ii)](#c-1-B-ii)) of the amount by which the allotment available under this subsection for all the [States](/usc/42/619.md?p=5) for that [fiscal year](/usc/42/619.md?p=3) exceeds the amount that was available under this subsection for allotment for all the [States](/usc/42/619.md?p=5) for [fiscal year](/usc/42/619.md?p=3) 1983.
- (d) **Re-allotment of unallotted funds—**
  - (1) To the extent that all the funds appropriated under this subchapter for a [fiscal year](/usc/42/619.md?p=3) are not otherwise allotted to [States](/usc/42/619.md?p=5) either because all the [States](/usc/42/619.md?p=5) have not qualified for such allotments under [section 705(a) of this title](/usc/42/705.md?p=a) for the [fiscal year](/usc/42/619.md?p=3) or because some [States](/usc/42/619.md?p=5) have indicated in their descriptions of activities under [section 705(a) of this title](/usc/42/705.md?p=a) that they do not intend to use the full amount of such allotments, such excess shall be allotted among the remaining [States](/usc/42/619.md?p=5) in proportion to the amount otherwise allotted to such [States](/usc/42/619.md?p=5) for the [fiscal year](/usc/42/619.md?p=3) without regard to this paragraph.
  - (2) To the extent that all the funds appropriated under this subchapter for a [fiscal year](/usc/42/619.md?p=3) are not otherwise allotted to [States](/usc/42/619.md?p=5) because some [State](/usc/42/619.md?p=5) allotments are offset under [section 706(b)(2) of this title](/usc/42/706.md?p=b-2), such excess shall be allotted among the remaining [States](/usc/42/619.md?p=5) in proportion to the amount otherwise allotted to such [States](/usc/42/619.md?p=5) for the [fiscal year](/usc/42/619.md?p=3) without regard to this paragraph.

## Source credit

(Aug. 14, 1935, ch. 531, title V, § 502, as added Pub. L. 97–35, title XXI, § 2192(a), Aug. 13, 1981, 95 Stat. 819; amended Pub. L. 99–272, title IX, § 9527(d), Apr. 7, 1986, 100 Stat. 219; Pub. L. 99–509, title IX, § 9441(b), Oct. 21, 1986, 100 Stat. 2071; Pub. L. 101–239, title VI, §§ 6502(a), 6503(c)(1), (4), Dec. 19, 1989, 103 Stat. 2275, 2278.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 702, act Aug. 14, 1935, ch. 531, title V, § 502, as added Jan. 2, 1968, Pub. L. 90–248, title III, § 301, 81 Stat. 921; amended July 10, 1972, Pub. L. 92–345, § 1, 86 Stat. 456; July 1, 1973, Pub. L. 93–53, § 4(a)(1), (2), 87 Stat. 135, prescribed purposes for which funds were available, prior to the general revision of this subchapter by section 2192(a) of Pub. L. 97–35. For effective date, savings, and transitional provisions, see section 2194 of Pub. L. 97–35, set out as a note under section 701 of this title.

Another prior section 702, acts Aug. 14, 1935, ch. 531, title V, § 502, 49 Stat. 629; Aug. 10, 1939, ch. 666, title V, § 502, 53 Stat. 1380; 1946 Reorg. Plan No. 2, § 1, eff. July 16, 1946, 11 F.R. 7873, 60 Stat. 1095; Aug. 10, 1946, ch. 951, title IV, § 401(b)(2), (3), 60 Stat. 986; Aug. 28, 1950, ch. 809, title III, pt. 3, § 331(b), pt. 6, § 361(e), 64 Stat. 551, 558; Aug. 28, 1958, Pub. L. 85–840, title VI, § 602(b), (c), 72 Stat. 1055; Sept. 13, 1960, Pub. L. 86–778, title VII, § 707(a)(1)(B), (C), (b)(1)(A), 74 Stat. 995, 996; Oct. 24, 1963, Pub. L. 88–156, § 2(b), (c), 77 Stat. 273, provided for allotment to States for maternal and child health services, prior to the general amendment of title V of the Social Security Act by Pub. L. 90–248, § 301, and was covered by former section 703 of this title.

### Amendments

1989—Subsec. (a)(1). Pub. L. 101–239, § 6502(a)(1), amended first sentence generally. Prior to amendment, first sentence read as follows: “Of the amounts appropriated under section 701(a) of this title for a fiscal year that are not in excess of $478,000,000, the Secretary shall retain an amount equal to 15 percent thereof in the case of fiscal year 1982, and an amount equal to not less than 10, nor more than 15, percent thereof in the case of each fiscal year thereafter, for the purpose of carrying out (through grants, contracts, or otherwise) special projects of regional and national significance, training, and research and for the funding of genetic disease testing, counseling, and information development and dissemination programs and of comprehensive hemophilia diagnostic and treatment centers.”

Subsec. (a)(3). Pub. L. 101–239, § 6502(a)(2), inserted “or subsection (b)” after “this subsection”.

Subsec. (b). Pub. L. 101–239, § 6502(a)(3), added subsec. (b). Former subsec. (b) redesignated (c).

Subsec. (c). Pub. L. 101–239, § 6503(c)(4), which directed amendment of subsec. (b) by substituting “705(a)” for “705”, was executed to subsec. (c) to reflect the probable intent of Congress and the intervening redesignation of former subsec. (b) as (c) by Pub. L. 101–239, § 6502(a)(3), see below.

Pub. L. 101–239, § 6503(c)(1), substituted “an application” for “a description of intended activities and statement of assurances” in introductory provisions.

Pub. L. 101–239, § 6502(a)(4)(A), substituted “$600,000,000” for “$478,000,000” in introductory provisions.

Pub. L. 101–239, § 6502(a)(3), redesignated subsec. (b) as (c) and struck out former subsec. (c) which related to special projects for children.

Subsec. (c)(2). Pub. L. 101–239, § 6502(a)(4)(B), amended par. (2) generally, substituting provisions basing each State’s allotment for each fiscal year upon 1983 amounts for former provisions setting forth formulas for allotments for fiscal years 1982 and 1983 and for each year beginning with fiscal year 1984.

Subsec. (d)(1). Pub. L. 101–239, § 6503(c)(4), substituted “705(a)” for “705” in two places.

1986—Subsec. (a)(1). Pub. L. 99–509, § 9441(b)(1), substituted “amounts appropriated under section 701(a) of this title for a fiscal year that are not in excess of $478,000,000” for “amount appropriated under section 701(a) of this title”.

Subsec. (a)(2)(B). Pub. L. 99–272 substituted “programs for children with special health care needs” for “crippled children’s programs” and “services for children with special health care needs” for “crippled children’s services”.

Subsec. (b). Pub. L. 99–509, § 9441(b)(2), inserted “that are not in excess of $478,000,000” in introductory provisions and struck out par. (3) which read as follows:

“(A) To the extent that all the funds appropriated under this subchapter for a fiscal year are not otherwise allotted to States either because all the States have not qualified for such allotments under section 705 of this title for the fiscal year or because some States have indicated in their descriptions of activities under section 705 of this title that they do not intend to use the full amount of such allotments, such excess shall be allotted among the remaining States in proportion to the amount otherwise allotted to such States for the fiscal year without regard to this subparagraph.

“(B) To the extent that all the funds appropriated under this subchapter for a fiscal year are not otherwise allotted to States because some State allotments are offset under section 706(b)(2) of this title, such excess shall be allotted among the remaining States in proportion to the amount otherwise allotted to such States for the fiscal year without regard to this subparagraph.”

Subsecs. (c), (d). Pub. L. 99–509, § 9441(b)(3), added subsecs. (c) and (d).

### Statutory Notes and Related Subsidiaries

### Effective Date of 1989 Amendment

Amendment by section 6502(a) of Pub. L. 101–239 applicable to appropriations for fiscal years beginning with fiscal year 1990, and amendment by section 6503(c)(1), (4) of Pub. L. 101–239 applicable to payments for allotments for fiscal years beginning with fiscal year 1991, see section 6510(a), (b)(1) of Pub. L. 101–239, set out as a note under section 701 of this title.