---
kind: "section"
citation: "7 U.S.C. § 2009f"
title: "7"
title_heading: "Agriculture"
number: "2009f"
heading: "Grants to States"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/2009f"
units:
  - "Chapter 50 — Agricultural Credit"
  - "Subchapter V — Rural Community Advancement Program"
---

# §2009f. Grants to States

- (a) **Simple grants—**
  - (1) **Mandatory grant—** The [Secretary](/usc/7/499a.md?p=b-2) shall make a grant to any eligible [State](/usc/7/2009.md?p=1) for any fiscal year for which the [State](/usc/7/2009.md?p=1) requests a grant under this section in an amount equal to 5 percent of the total amount allocated for the [State](/usc/7/2009.md?p=1) under [section 2009d(f) of this title](/usc/7/2009d.md?p=f).
  - (2) **Permissive grant—** Before July 15 of each fiscal year, the [Secretary](/usc/7/499a.md?p=b-2) may make a grant to any [State](/usc/7/2009.md?p=1) to defray the cost of any subsidy associated with a guarantee provided by an eligible public entity of the [State](/usc/7/2009.md?p=1) under [section 2009g of this title](/usc/7/2009g.md) in an amount that does not exceed 5 percent of the total amount allocated for the [State](/usc/7/2009.md?p=1) under [section 2009d(f) of this title](/usc/7/2009d.md?p=f).
  - (3) **Source of funds—** The [Secretary](/usc/7/499a.md?p=b-2) shall make grants to a [State](/usc/7/2009.md?p=1) under paragraphs [(1)](#a-1) and [(2)](#a-2) from amounts allocated for the [State](/usc/7/2009.md?p=1) in the accounts specified in [section 2009d(c) of this title](/usc/7/2009d.md?p=c), by reducing each such allocated amount by the same percentage.
- (b) **Matching grants—**
  - (1) **In general—** Subject to [paragraph (2)](#b-2), the [Secretary](/usc/7/499a.md?p=b-2) shall make a grant to any eligible [State](/usc/7/2009.md?p=1) for any fiscal year for which the [State](/usc/7/2009.md?p=1) requests a grant under this section in an amount equal to 5 percent of the amount allocated for the [State](/usc/7/2009.md?p=1) for the fiscal year under [section 2009d(g) of this title](/usc/7/2009d.md?p=g).
  - (2) **Eligibility—** A [State](/usc/7/2009.md?p=1) shall be eligible for a grant under [paragraph (1)](#b-1) if the [State](/usc/7/2009.md?p=1) makes commitments to the [Secretary](/usc/7/499a.md?p=b-2) to—
    - (A) expend from non-Federal sources in accordance with [subsection (c)](#c) an amount that is not less than 200 percent of the amount of the grant; and
    - (B) maintain the amounts paid to the [State](/usc/7/2009.md?p=1) under this subsection and the amount referred to in [subparagraph (A)](#b-2-A) in an account separate from all other [State](/usc/7/2009.md?p=1) funds until expended in accordance with [subsection (c)](#c).
  - (3) **Source of funds—** If the [Secretary](/usc/7/499a.md?p=b-2) makes a grant under [paragraph (1)](#b-1) before July 15 of the fiscal year, the grant shall be made from amounts allocated for the [State](/usc/7/2009.md?p=1) in the accounts specified in [section 2009d(c) of this title](/usc/7/2009d.md?p=c) for the fiscal year, by reducing each allocated amount by the same percentage.
- (c) **Use of funds—** A [State](/usc/7/2009.md?p=1) to which funds are provided under this section shall use the funds in [rural areas](/usc/7/1991.md?p=a-13-A) for any activity authorized under the authorities described in [section 2009d(d) of this title](/usc/7/2009d.md?p=d) in accordance with the [State](/usc/7/2009.md?p=1) strategic plan referred to in [section 2009c of this title](/usc/7/2009c.md).
- (d) **Maintenance of effort—** The [State](/usc/7/2009.md?p=1) shall provide assurances to the [Secretary](/usc/7/499a.md?p=b-2) that funds provided to the [State](/usc/7/2009.md?p=1) under this section will be used only to supplement, not to supplant, the amount of Federal, [State](/usc/7/2009.md?p=1), and local funds otherwise expended for [rural](/usc/7/1991.md?p=a-13-A) development assistance in the [State](/usc/7/2009.md?p=1).
- (e) **Appeals—** The [Secretary](/usc/7/499a.md?p=b-2) shall provide to a [State](/usc/7/2009.md?p=1) an opportunity to appeal any action taken with respect to the [State](/usc/7/2009.md?p=1) under this section.
- (f) **Administrative costs—** Federal funds shall not be used for any administrative costs incurred by a [State](/usc/7/2009.md?p=1) in carrying out this subchapter.
- (g) **Expenditure of funds by State—**
  - (1) **In general—** Payments to a [State](/usc/7/2009.md?p=1) from a grant under this section for a fiscal year shall be obligated by the [State](/usc/7/2009.md?p=1) in the fiscal year or in the succeeding fiscal year. A [State](/usc/7/2009.md?p=1) shall obligate funds under this section to provide assistance to [rural areas](/usc/7/1991.md?p=a-13-A).
  - (2) **Failure to obligate—** If a [State](/usc/7/2009.md?p=1) fails to obligate payments in accordance with [paragraph (1)](#g-1), the [Secretary](/usc/7/499a.md?p=b-2) shall make an equal reduction in the amount of payments provided to the [State](/usc/7/2009.md?p=1) under this section for the immediately succeeding fiscal year.
  - (3) **Noncompliance—**
    - (A) **Review—** The [Secretary](/usc/7/499a.md?p=b-2) shall review and monitor [State](/usc/7/2009.md?p=1) compliance with this section.
    - (B) **Penalty—** If the [Secretary](/usc/7/499a.md?p=b-2) finds that there has been misuse of grant funds provided under this section, or noncompliance with any of the terms and conditions of a grant, after reasonable notice and opportunity for a hearing—
      - (i) the [Secretary](/usc/7/499a.md?p=b-2) shall notify the [State](/usc/7/2009.md?p=1) of the finding; and
      - (ii) no further payments to the [State](/usc/7/2009.md?p=1) shall be made with respect to the programs funded under this section until the [Secretary](/usc/7/499a.md?p=b-2) is satisfied that there is no longer any failure to comply or that the noncompliance will be promptly corrected.
    - (C) **Other sanctions—** In the case of a finding of noncompliance made pursuant to [subparagraph (B)](#g-3-B), the [Secretary](/usc/7/499a.md?p=b-2) may, in addition to, or in lieu of, imposing the sanctions described in [subparagraph (B)](#g-3-B), impose other appropriate sanctions, including recoupment of money improperly expended for purposes prohibited or not authorized by this section and disqualification from the receipt of financial assistance under this section.
- (h) **No entitlement to contract, grant, or assistance—** Nothing in this subchapter—
  - (1) entitles any [person](/usc/7/499a.md?p=b-1) to assistance or a contract or grant; or
  - (2) limits the right of a [State](/usc/7/2009.md?p=1) to impose additional limitations or conditions on assistance or a contract or grant under this section.

## Source credit

(Pub. L. 87–128, title III, § 381G, as added Pub. L. 104–127, title VII, § 761, Apr. 4, 1996, 110 Stat. 1143; amended Pub. L. 107–171, title VI, § 6026(c), May 13, 2002, 116 Stat. 372.)

## Notes

### Editorial Notes

### Amendments

2002—Subsec. (a)(1), (2). Pub. L. 107–171, § 6026(c)(1), substituted “section 2009d(f) of this title” for “section 2009d(g) of this title”.

Subsec. (b)(1). Pub. L. 107–171, § 6026(c)(2), substituted “section 2009d(g) of this title” for “section 2009d(h) of this title”.