---
kind: "section"
citation: "42 U.S.C. § 9921"
title: "42"
title_heading: "The Public Health and Welfare"
number: "9921"
heading: "Discretionary authority of Secretary"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/9921"
units:
  - "Chapter 106 — Community Services Block Grant Program"
---

# §9921. Discretionary authority of Secretary

- (a) **Grants, contracts, arrangements, loans, and guarantees—**
  - (1) **In general—** The [Secretary](/usc/42/9902.md?p=4) shall, from funds reserved under [section 9903(b)(3) of this title](/usc/42/9903.md?p=b-3), make grants, loans, or guarantees to [States](/usc/42/9902.md?p=5) and [public agencies](/usc/42/11851.md?p=8) and [private, nonprofit organizations](/usc/42/9902.md?p=3), or enter into contracts or jointly financed cooperative arrangements with [States](/usc/42/9902.md?p=5) and [public agencies](/usc/42/11851.md?p=8) and [private, nonprofit organizations](/usc/42/9902.md?p=3) (and for-profit organizations, to the extent specified in [paragraph (2)(E)](#a-2-E)) for each of the objectives described in paragraphs [(2)](#a-2) through [(4)](#a-4).
  - (2) **Community economic development—**
    - (A) **Economic development activities—** The [Secretary](/usc/42/9902.md?p=4) shall make grants described in [paragraph (1)](#a-1) on a competitive basis to [private, nonprofit organizations](/usc/42/9902.md?p=3) that are community development [corporations](/usc/42/2297h.md?p=2) to provide technical and financial assistance for economic development activities designed to address the economic needs of low-income individuals and families by creating employment and business development opportunities.
    - (B) **Consultation—** The [Secretary](/usc/42/9902.md?p=4) shall exercise the authority provided under [subparagraph (A)](#a-2-A) after consultation with other relevant Federal officials.
    - (C) **Governing boards—** For a community development [corporation](/usc/42/2297h.md?p=2) to receive funds to carry out this paragraph, the [corporation](/usc/42/2297h.md?p=2) shall be governed by a board that shall consist of residents of the community and business and civic leaders and shall have as a principal purpose planning, developing, or managing low-income housing or community development [projects](/usc/42/13641.md?p=2).
    - (D) **Geographic distribution—** In making grants to carry out this paragraph, the [Secretary](/usc/42/9902.md?p=4) shall take into consideration the geographic distribution of funding among [States](/usc/42/9902.md?p=5) and the relative proportion of funding among rural and urban areas.
    - (E) **Reservation—** Of the amounts made available to carry out this paragraph, the [Secretary](/usc/42/9902.md?p=4) may reserve not more than 1 percent for each fiscal year to make grants to [private, nonprofit organizations](/usc/42/9902.md?p=3) or to enter into contracts with private, [nonprofit](/usc/42/300s–3.md?p=3) or for-profit organizations to provide technical assistance to aid community development [corporations](/usc/42/2297h.md?p=2) in developing or implementing activities funded to carry out this paragraph and to evaluate activities funded to carry out this paragraph.
  - (3) **Rural community development activities—** The [Secretary](/usc/42/9902.md?p=4) shall provide the assistance described in [paragraph (1)](#a-1) for rural community development activities, which shall include providing—
    - (A) grants to private, [nonprofit](/usc/42/300s–3.md?p=3) [corporations](/usc/42/2297h.md?p=2) to enable the [corporations](/usc/42/2297h.md?p=2) to provide assistance concerning home repair to rural low-income families and concerning planning and developing low-income rural rental housing units; and
    - (B) grants to multistate, regional, [private, nonprofit organizations](/usc/42/9902.md?p=3) to enable the organizations to provide training and technical assistance to small, rural communities concerning meeting their community facility needs.
  - (4) **Neighborhood innovation projects—** The [Secretary](/usc/42/9902.md?p=4) shall provide the assistance described in [paragraph (1)](#a-1) for neighborhood innovation [projects](/usc/42/13641.md?p=2), which shall include providing grants to neighborhood-based [private, nonprofit organizations](/usc/42/9902.md?p=3) to test or assist in the development of new approaches or methods that will aid in overcoming special problems identified by communities or neighborhoods or otherwise assist in furthering the purposes of this chapter, and which may include providing assistance for [projects](/usc/42/13641.md?p=2) that are designed to serve low-income individuals and families who are not being effectively served by other programs.
- (b) **Evaluation—** The [Secretary](/usc/42/9902.md?p=4) shall require all activities receiving assistance under this section to be evaluated for their effectiveness. Funding for such evaluations shall be provided as a stated percentage of the assistance or through a separate grant awarded by the [Secretary](/usc/42/9902.md?p=4) specifically for the purpose of evaluation of a particular activity or group of activities.
- (c) **Annual report—** The [Secretary](/usc/42/9902.md?p=4) shall compile an annual report containing a summary of the evaluations required in [subsection (b)](#b) and a listing of all activities assisted under this section. The [Secretary](/usc/42/9902.md?p=4) shall annually submit the report to the Chairperson of the Committee on Education and the Workforce of the House of Representatives and the Chairperson of the Committee on Labor and Human Resources of the Senate.

## Source credit

(Pub. L. 97–35, title VI, § 680, as added Pub. L. 105–285, title II, § 201, Oct. 27, 1998, 112 Stat. 2750.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 680 of Pub. L. 97–35 was classified to section 9909 of this title, prior to the general amendment of this chapter by Pub. L. 105–285.

### Statutory Notes and Related Subsidiaries

### Change of Name

Committee on Labor and Human Resources of Senate changed to Committee on Health, Education, Labor, and Pensions of Senate by Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19, 1999.

### Procedures To Permit Grant Funds or Intangible Property Acquired by Grant Funds To Become Sole Property of Grantees

Pub. L. 119–75, div. B, title II, Feb. 3, 2026, 140 Stat. 277, provided in part: “That the Secretary [of Health and Human Services] shall establish procedures regarding the disposition of intangible assets and program income that permit such assets acquired with, and program income derived from, grant funds authorized under section 680 of the CSBG Act [Community Services Block Grant Act, 42 U.S.C. 9921] to become the sole property of such grantees after a period of not more than 12 years after the end of the grant period for any activity consistent with section 680(a)(2)(A) of the CSBG Act [42 U.S.C. 9921(a)(2)(A)]: Provided further, That intangible assets in the form of loans, equity investments and other debt instruments, and program income may be used by grantees for any eligible purpose consistent with section 680(a)(2)(A) of the CSBG Act: Provided further, That these procedures shall apply to such grant funds made available after November 29, 1999”.

Similar provisions were contained in the following prior appropriation acts:

Pub. L. 118–47, div. D, title II, Mar. 23, 2024, 138 Stat. 666.

Pub. L. 117–328, div. H, title II, Dec. 29, 2022, 136 Stat. 4873.

Pub. L. 117–103, div. H, title II, Mar. 15, 2022, 136 Stat. 460.

Pub. L. 116–260, div. H, title II, Dec. 27, 2020, 134 Stat. 1584.

Pub. L. 116–94, div. A, title II, Dec. 20, 2019, 133 Stat. 2572.

Pub. L. 115–245, div. B, title II, Sept. 28, 2018, 132 Stat. 3084.

Pub. L. 115–141, div. H, title II, Mar. 23, 2018, 132 Stat. 730.

Pub. L. 115–31, div. H, title II, May 5, 2017, 131 Stat. 533.

Pub. L. 114–113, div. H, title II, Dec. 18, 2015, 129 Stat. 2614.

Pub. L. 113–235, div. G, title II, Dec. 16, 2014, 128 Stat. 2481.

Pub. L. 113–76, div. H, title II, Jan. 17, 2014, 128 Stat. 378.

Pub. L. 112–74, div. F, title II, Dec. 23, 2011, 125 Stat. 1078.

Pub. L. 111–117, div. D, title II, Dec. 16, 2009, 123 Stat. 3251.

Pub. L. 111–8, div. F, title II, Mar. 11, 2009, 123 Stat. 775.

Pub. L. 110–161, div. G, title II, Dec. 26, 2007, 121 Stat. 2180.

Pub. L. 109–149, title II, Dec. 30, 2005, 119 Stat. 2855.

Pub. L. 108–447, div. F, title II, Dec. 8, 2004, 118 Stat. 3134.

Pub. L. 108–199, div. E, title II, Jan. 23, 2004, 118 Stat. 249.

Pub. L. 108–7, div. G, title II, Feb. 20, 2003, 117 Stat. 319.

Pub. L. 107–116, title II, Jan. 10, 2002, 115 Stat. 2196.

Pub. L. 106–554, § 1(a)(1) [title II], Dec. 21, 2000, 114 Stat. 2763, 2763A–23.

Pub. L. 106–113, div. B, § 1000(a)(4) [title II], Nov. 29, 1999, 113 Stat. 1535, 1501A–235.