54 U.S.C. § 200506 — Non-Federal share of project costs

(a) Sources.—
(1) Allowable sources.— The non-federal share of project costs under this chapter can come from general or special state^* or local revenue, state categorical grants, special appropriations from state legislatures, donated land, buildings, or building materials, and in-kind construction, technical, or planning work. If a local government has not already received a recovery action program grant^*, it can also count its reasonable local costs of developing a recovery action program (to meet the requirements of section 200504(a)) toward its share.
(2) Non-allowable sources.— No money from the Land and Water Conservation Fund, or from any other federal grant program besides the community development block grant programs, can be used to match federal grants under this program.
(b) Encouragement of States and Private Interests.— The Secretary^* must encourage states and private interests to contribute as much as possible toward the non-federal share of project costs.