54 U.S.C. § 302902 — Grants to States

(a) In general. The Secretary^* must run a program of matching grants to States to carry out this division.

(b) Conditions. (1) No grant can be made under this division unless: (A) the application matches a comprehensive statewide historic preservation^* plan the Secretary has approved, after checking how it relates to the statewide outdoor recreation plan under chapter 2003 of this title; (B) the recipient has agreed to file reports, in whatever form and with whatever information the Secretary asks for; (C) the recipient has agreed to take on, once the project is done, the full ongoing cost of maintaining, repairing, and administering the property in a way that satisfies the Secretary; and (D) the recipient has met any further terms the Secretary considers necessary or wise.

(2) Waiver. The Secretary may waive the requirements in (1)(A) and (1)(C) for a grant to the National Trust^*.

(3) Amount limit. (A) No grant under this division can cover more than 60 percent of the total cost, in any one fiscal year, of projects and programs the State^* Historic Preservation^* Officer controls under section 302303 of this title. (B) Except where another law allows otherwise, the State's share of that cost must come from non-Federal sources.

(4) Restriction on using real property for the State's share. A State cannot use the value of real property it got before October 15, 1966, to cover its non-Federal share of a grant-funded project's cost.

(c) Apportioning grant amounts. (1) The Secretary divides appropriated grant money among the States: (A) for the general purposes of this division, based on need as the Secretary determines it, and (B) for each fiscal year's specific projects and programs, as the Secretary decides is appropriate. (2) The Secretary must tell each State its apportionment under (1)(B) within 30 days after the law appropriating the funds is enacted. (3) If a State does not spend or commit its apportioned amount within the fiscal year it was notified, or within the two fiscal years after that, the Secretary must reapportion that money under (1)(B), and must review and update the apportionment method as needed, publishing any changes in the Federal Register. (4) Each State must transfer at least 10 percent of its annual apportionment to certified local governments for their own preservation projects and programs. If the total annual apportionment to all States tops $65,000,000, the States must also transfer 50 percent of the amount over that threshold to certified local governments. (5) The Secretary must set guidelines for how States use and distribute funds under (4), to make sure no certified local government^* gets an unfairly large share — the guidelines may set a maximum or minimum amount per local government^*. But the guidelines cannot stop a State from giving certified local governments more than 10 percent, and the Secretary cannot force a State to give more than the 10 percent minimum.

(d) Administrative costs. The combined direct and indirect administrative costs of running a State's projects and programs cannot exceed 25 percent of their total cost — except for grants to the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau.