42 U.S.C. § 300z–4 — Grants for demonstration projects for services

(a) Priorities — In approving applications, the Secretary must give priority to applicants who (1) serve an area with a high incidence of adolescent pregnancy; (2) serve an area with a high proportion of low-income families where care programs for pregnant adolescents and adolescent parents are scarce; (3) show evidence — (A) for care services, of being able to bring together a wide range of core and, as appropriate, supplemental services in one comprehensive site, or to build a well-integrated network of them, suited to the target population and geographic area, including rural needs; or (B) for prevention services, of being able to provide services suited to the target population and area, including rural needs; (4) will make maximum feasible use of existing programs and facilities, such as neighborhood and primary health care centers, maternity homes, family- and youth-serving agencies, licensed adoption agencies, children and youth centers, maternal and infant health centers, rural health facilities, schools and other educational programs, mental health programs, nutrition and recreation programs, and other ongoing pregnancy prevention and care programs; (5) make maximum feasible use of other federal, State, and local funds, programs, contributions, and third-party reimbursements; (6) can demonstrate community commitment by contributing non-federal funds, personnel, and facilities; (7) involved the community to be served — including public and private agencies, adolescents, and families — in planning and implementing the project; and (8) will demonstrate innovative and effective approaches to teen premarital sex, pregnancy, or parenthood, including giving pregnant adolescents adequate information about adoption. (b) Factors to be considered in making grants; special needs of rural areas (1) The Secretary sets the grant amount based on factors such as the incidence of adolescent pregnancy in the area and how adequate existing pregnancy prevention and care programs are there. (2) The Secretary must consider rural areas' special needs and, to the maximum extent practicable, distribute funds considering the relative number of adolescents in those areas who need these services. (c) Duration; Federal share (1) A grantee may not receive funds for a demonstration project under this subchapter for more than 5 years. (2)(A) Subject to paragraph (3), a grant's federal share of project costs may not exceed 70% in the first and second years, 60% in the third year, 50% in the fourth year, and 40% in the fifth year. (2)(B) The required non-federal contribution may be cash or "in kind" — fairly valued plant, equipment, or services. (3) The Secretary may waive the limits in paragraph (2)(A) for any year, following criteria established by regulation.