42 U.S.C. § 806 — Rescission of funds declined by States, territories, or other governmental entities

(a)(1) Subject to paragraphs (2) and (3), if a State^*, territory, or other governmental entity tells the Treasury Secretary^*, in the required manner, that it declines all or part of an award under this subchapter, the Secretary must rescind the unaccepted amount allocated as of that notice. (2) This does not apply to money paid to a State under section 803 for distribution to nonentitlement local governments. (3) This does not prevent a sub-State entity, including such a local government, from notifying the Secretary that it declines all or part of its possible share, and does not allow a State to stop that notice. (b) Rescinded money goes into the Treasury’s general fund solely for deficit reduction. (c) “State, territory, or other governmental entity” means an entity that may receive a direct payment under this subchapter, except a Tribal government defined in sections 801(g), 802(g), or 804(d), or an eligible Tribal government defined in section 805(f).