Sec. 396. LIMITATION ON DURATION OF GRANT AND REQUIREMENT OF MATCHING FUNDS

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## SEC. 396 LIMITATION ON DURATION OF GRANT AND REQUIREMENT OF MATCHING FUNDS **[**280c–1**]** ###

(a)Limitation on Duration of Grant The period during which payments are made to a State from a grant under section 395(a) may not exceed 3 years. Such payments shall be subject to annual evaluation by the Secretary. ###

(b)Requirement of Matching Funds ####

(1)#####

(A)For the first year of payments to a State from a grant under section 395(a), the Secretary may not make such payments in an amount exceeding 75 percent of the costs of services to be provided by the State pursuant to such section. #####

(B)For the second year of such payments to a State, the Secretary may not make such payments in an amount exceeding 65 percent of the costs of such services. #####

(C)For the third year of such payments to a State, the Secretary may not make such payments in an amount exceeding 55 percent of the costs of such services. ####

(2)The Secretary may not make a grant under section 395(a) to a State unless the State agrees to make available, directly or through donations from public or private entities, non-Federal contributions toward the costs of services to be provided pursuant to such section in an amount equal to— #####

(A)for the first year of payments to the State from the grant, not less than $25 (in cash or in kind under subsection (c)) for each $75 of Federal funds provided in the grant; #####

(B)for the second year of such payments to the State, not less than $35 (in cash or in kind under subsection (c)) for each $65 of such Federal funds; and #####

(C)for the third year of such payments to the State, not less than $45 (in cash or in kind under subsection (c)) for each $55 of such Federal funds. ###

(c)Determination of Amount of Non-Federal Contribution Non-Federal contributions required in subsection

(b)may be in cash or in kind, fairly evaluated, including plant, equipment, or services. Amounts provided by the Federal Government, or services assisted or subsidized to any significant extent by the Federal Government, may not be included in determining the amount of such non-Federal contributions.