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42 USC § 3154c - Direct expenditure or redistribution by recipient

---
identifier: "/us/usc/t42/s3154c"
source: "usc"
legal_status: "official_prima_facie"
title: "42 USC § 3154c - Direct expenditure or redistribution by recipient"
title_number: 42
title_name: "THE PUBLIC HEALTH AND WELFARE"
section_number: "3154c"
section_name: "Direct expenditure or redistribution by recipient"
chapter_number: 38
chapter_name: "PUBLIC WORKS AND ECONOMIC DEVELOPMENT"
subchapter_number: "II"
subchapter_name: "GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
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.)"
---

# § 3154c. Direct expenditure or redistribution by recipient

**(a)** **In general** Subject to subsection (b), a recipient of a grant under section 3141, 3143, or 3147 of this title may directly expend the grant funds or may redistribute the funds in the form of a subgrant to other eligible recipients to fund required components of the scope of work approved for the project.

**(b)** **Limitation** A recipient may not redistribute grant funds received under section 3141 or 3143 of this title to a for-profit entity.

**(c)** **Economic adjustment** section 3149 of this title

Subject to subsection (d), a recipient of a grant under  may directly expend the grant funds or may redistribute the funds to public and private entities in the form of a grant, loan, loan guarantee, payment to reduce interest on a loan guarantee, or other appropriate assistance.

**(d)** **Limitation** Under subsection (c), a recipient may not provide any grant to a private for-profit entity.

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**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.)