42 U.S.C. § 1010a — Optional Federal administration of State recognition payments

(a) General rule. The Commissioner of Social Security may make an agreement with a State^* or its political subdivision that regularly provides cash payments to people entitled to benefits under this subchapter. Under the agreement, the Commissioner will make those payments for the State or subdivision. (b) Agreement terms. (1) General rule. The agreement must contain the terms the Commissioner considers necessary for efficient and effective administration^* of both this subchapter and the State program. (2) Financial terms. The agreement must require the State to pay the Commissioner, at the times and in installments the parties specify—(A) an amount equal to what the Commissioner spent under the agreement paying people for the State; and (B) an administrative fee reimbursing the Commissioner’s administrative expenses for making those payments. (c) Special disposition of administration fees. When collected, administrative fees must be credited to a special Treasury fund established for State recognition payments for certain World War II^* veterans. To the extent and in the amounts provided in advance by appropriations Acts, the credited money may be used to pay expenses of carrying out this subchapter.