---
kind: "section"
citation: "42 U.S.C. § 9874"
title: "42"
title_heading: "The Public Health and Welfare"
number: "9874"
heading: "Use of allotments"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/9874"
units:
  - "Chapter 105 — Community Services Programs"
  - "Subchapter IV — Grants to States for Planning and Development of Dependent Care Programs and for Other Purposes"
---

# §9874. Use of allotments

- (a) **Referral systems; information; contents—**
  - (1) Subject to the provisions of subsections [(c)](#c) and [(d)](#d), amounts paid to a [State](/usc/42/9877.md?p=10) under [section 9873 of this title](/usc/42/9873.md) from its allotment under [section 9872 of this title](/usc/42/9872.md) may be used for the planning, development, establishment, operation, expansion, or improvement by the [States](/usc/42/9877.md?p=10), directly or by grant or contract with public or private entities, of [State](/usc/42/9877.md?p=10) and local resource and referral systems to provide information concerning the availability, types, costs, and locations of [dependent](/usc/42/9877.md?p=2) care services. The information provided by any such system may include—
    - (A) the types of [dependent](/usc/42/9877.md?p=2) care services available, including services provided by individual homes, religious organizations, community organizations, employers, private industry, and public and private institutions;
    - (B) the costs of available [dependent](/usc/42/9877.md?p=2) care services;
    - (C) the locations in which [dependent](/usc/42/9877.md?p=2) care services are provided;
    - (D) the forms of transportation available to such locations;
    - (E) the hours during which such [dependent](/usc/42/9877.md?p=2) care services are available;
    - (F) the [dependents](/usc/42/9877.md?p=2) eligible to enroll for such [dependent](/usc/42/9877.md?p=2) care services; and
    - (G) any resource and referral system planned, developed, established, expanded, or improved with amounts paid to a [State](/usc/42/9877.md?p=10) under this subchapter.
  - (2) The [State](/usc/42/9877.md?p=10), with respect to the uses of funds described in paragraph (1) of this subsection shall—
    - (A) provide assurances that no information will be included with respect to any [dependent](/usc/42/9877.md?p=2) care services which are not provided in compliance with the laws of the [State](/usc/42/9877.md?p=10) and localities in which such services are provided; and
    - (B) provide assurances that the information provided will be the latest information available and will be kept up to date.
- (b) **School-age child care services; assurances; estimates—**
  - (1) Subject to the provisions of subsections [(c)](#c) and [(d)](#d), amounts paid to a [State](/usc/42/9877.md?p=10) under [section 9873 of this title](/usc/42/9873.md) from its allotment under [section 9872 of this title](/usc/42/9872.md) may be used for the planning, development, establishment, operation, expansion, or improvement by the [States](/usc/42/9877.md?p=10), directly, or by grant or contract, with [public agencies](/usc/42/11851.md?p=8) or private [nonprofit](/usc/42/300s–3.md?p=3) organizations of programs to furnish school-age child care services before and after school. Amounts so paid to a [State](/usc/42/9877.md?p=10) and used for the operation of such child care services shall be designed to enable children, whose families lack adequate financial resources, to participate in before or after school child care programs.
  - (2) The [State](/usc/42/9877.md?p=10), with respect to the uses of funds described in paragraph (1) of this subsection shall—
    - (A) provide assurances, in the case of an applicant that is not a [State](/usc/42/9877.md?p=10) or [local educational agency](/usc/42/9877.md?p=6), that the applicant has or will enter into an agreement with the [State](/usc/42/9877.md?p=10) or [local educational agency](/usc/42/9877.md?p=6), [institution of higher education](/usc/42/9877.md?p=5) or [community center](/usc/42/9877.md?p=1) containing provisions for—
      - (i) the use of facilities for the provision of before or after school child care services (including such use during holidays and vacation periods),
      - (ii) the restrictions, if any, on the use of such space, and
      - (iii) the times when the space will be available for the use of the applicant;
    - (B) provide an estimate of the costs of the establishment of the child care service program in the facilities;
    - (C) provide assurances that the parents of [school-age children](/usc/42/9877.md?p=7) will be involved in the development and implementation of the program for which assistance is sought under this Act;[^1]
    - (D) provide assurances that the applicant is able and willing to seek to enroll racially, ethnically, and economically diverse [school-age children](/usc/42/9877.md?p=7), as well as handicapped [school-age children](/usc/42/9877.md?p=7), in the child care service program for which assistance is sought under this Act;[^1]
    - (E) provide assurances that the child care program is in compliance with [State](/usc/42/9877.md?p=10) and local child care licensing laws and regulations governing day care services for [school-age children](/usc/42/9877.md?p=7) to the extent that such regulations are appropriate to the age group served; and
    - (F) provide such other assurances as the chief executive officer of the [State](/usc/42/9877.md?p=10) may reasonably require to carry out this Act.[^1]
- (c) **Percentage of allotment; waiver—**
  - (1) Except as provided in [paragraph (2)](#c-2), of the allotment to each [State](/usc/42/9877.md?p=10) in each fiscal year—
    - (A) 40 percent shall be available for the activities described in [subsection (a)](#a);
    - (B) 60 percent shall be available for the activities described in [subsection (b)](#b).
  - (2) For any fiscal year the [Secretary](/usc/42/9877.md?p=9) may waive the percentage requirements specified in [paragraph (1)](#c-1) on the request of a [State](/usc/42/9877.md?p=10) if such [State](/usc/42/9877.md?p=10) demonstrates to the satisfaction of the [Secretary](/usc/42/9877.md?p=9)—
    - (A) that the amount of funds available as a result of one of such percentage requirements is not needed in such fiscal year for the activities for which such amount is so made available; and
    - (B) the adequacy of the alternative percentages, relative to need, the [State](/usc/42/9877.md?p=10) specifies the [State](/usc/42/9877.md?p=10) will apply with respect to all of the activities referred to in [paragraph (1)](#c-1) if such waiver is granted.
- (d) **Prohibition; use of amounts—** A [State](/usc/42/9877.md?p=10) may not use amounts paid to it under this subchapter to—
  - (1) make cash payments to intended recipients of [dependent](/usc/42/9877.md?p=2) care services including child care services;
  - (2) pay for [construction](/usc/42/300s–3.md?p=7) or renovation; or
  - (3) satisfy any requirement for the expenditure of non-Federal funds as a condition for the receipt of Federal funds.
- (e) **Federal share; cost of administration—**
  - (1) The Federal share of any [project](/usc/42/13641.md?p=2) supported under this subchapter shall be not more than 75 percent.
  - (2) Not more than 10 percent of the allotment of each [State](/usc/42/9877.md?p=10) under this subchapter may be available for the cost of administration.
- (f) **Duplication of services—** [Projects](/usc/42/13641.md?p=2) supported under this section to plan, develop, establish, expand, operate, or improve a [State](/usc/42/9877.md?p=10) or local resource and referral system or before or after school child care program shall not duplicate any services which are provided before October 30, 1984, by the [State](/usc/42/9877.md?p=10) or locality which will be served by such system.
- (g) **Technical assistance to States; planning and operational activities—** The [Secretary](/usc/42/9877.md?p=9) may provide technical assistance to [States](/usc/42/9877.md?p=10) in planning and carrying out activities under this subchapter.

## Footnotes

[^1]: So in original. Probably should be “subchapter”.

## Source credit

(Pub. L. 97–35, title VI, § 670D, as added Pub. L. 98–558, title I, § 109, Oct. 30, 1984, 98 Stat. 2880; amended Pub. L. 99–425, title III, § 302, Sept. 30, 1986, 100 Stat. 967; Pub. L. 101–501, title III, §§ 302, 303, 305(a), Nov. 3, 1990, 104 Stat. 1249, 1250.)

## Notes

### Editorial Notes

### References in Text

This Act, referred to in subsec. (b)(2)(C), (D), (F), is Pub. L. 97–35, known as the Omnibus Budget Reconciliation Act of 1981, but probably should have been “this subchapter”, meaning subchapter E of chapter 8 of subtitle A of title VI of Pub. L. 97–35, known as the State Dependent Care Development Grants Act, which is classified to this subchapter.

### Amendments

1990—Subsec. (a)(1). Pub. L. 101–501, §§ 303(a)(1), 305(a)(1), inserted “operation,” after “establishment,” and struck out “for fiscal year 1985 and fiscal year 1986” before “may be used”.

Subsec. (b)(1). Pub. L. 101–501, §§ 303(a)(2), (3), 305(a)(2), struck out “for fiscal year 1985 and fiscal year 1986” before “may be used”, inserted “operation,” after “establishment,”, struck out “in public or private school facilities or in community centers in communities” after “before and after school”, and inserted at end “Amounts so paid to a State and used for the operation of such child care services shall be designed to enable children, whose families lack adequate financial resources, to participate in before or after school child care programs.”

Subsec. (b)(2)(D). Pub. L. 101–501, § 305(a)(3)(A), inserted “school-age children,” after “diverse” and inserted comma after last reference to “children”.

Subsec. (b)(2)(F). Pub. L. 101–501, § 305(a)(3)(B), substituted “chief executive officer of the State” for “Governor” and struck out “the provisions of” before “this Act”.

Subsec. (c). Pub. L. 101–501, § 302, designated existing provision as par. (1), redesignated pars. (1) and (2) as subpars. (A) and (B), respectively, substituted “Except as provided in paragraph (2), of” for “Of”, and added par. (2).

Subsec. (d). Pub. L. 101–501, § 303(b), redesignated pars. (2), (4), and (5) as (1), (2), and (3), respectively, and struck out former pars. (1) and (3) which read as follows:

“(1) pay the costs of operation of any resource and referral system or before or after school child care program established, expanded, or improved under subsection (a) of this section;

“(3) subsidize the direct provision of dependent care services including child care services;”.

Subsec. (d)(1). Pub. L. 101–501, § 305(a)(4), which directed the substitution of “subsections (a) and (b) of this section” for “subsection (a) of this section”, could not be executed because of the intervening amendment by Pub. L. 101–501, § 303(b), see above.

Subsec. (f). Pub. L. 101–501, §§ 303(a)(4), 305(a)(5), inserted “operate,” after “expand,” and substituted “which are provided before October 30, 1984,” for “, which prior to October 30, 1984, are provided”.

Subsec. (g). Pub. L. 101–501, § 305(a)(6), substituted “carrying out activities” for “operating activities to be carried out”.

1986—Subsec. (a). Pub. L. 99–425, § 302(a), designated existing provisions as par. (1), substituted “system may include” for “system shall include”, redesignated cls. (1) to (7) as (A) to (G), respectively, struck out last sentence which read as follows: “In carrying out clause (7) of the previous sentence, no information shall be included with respect to any dependent care services which are not provided in compliance with the laws of the State and localities in which such services are provided”, and added par. (2).

Subsec. (b)(1). Pub. L. 99–425, § 302(b)(1), struck out “where school facilities are not available” after “centers in communities”.

Subsec. (b)(2)(E). Pub. L. 99–425, § 302(b)(2), inserted “child care” before “licensing laws”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1990 Amendment

Amendment by Pub. L. 101–501 effective Oct. 1, 1990, see section 1001(a) of Pub. L. 101–501, set out as a note under section 8621 of this title.

### Effective Date of 1986 Amendment

Amendment by Pub. L. 99–425 effective Oct. 1, 1986, see section 1001 of Pub. L. 99–425, set out as a note under section 8621 of this title.