§300x–62. Availability to States of grant payments
(a) In general
Subject to subsection (b) of this section, any amounts paid to a State under the program involved shall be available for obligation until the end of the fiscal year for which the amounts were paid, and if obligated by the end of such year, shall remain available for expenditure until the end of the succeeding fiscal year.
(b) Exception regarding noncompliance of subgrantees
If a State has in accordance with subsection (a) of this section obligated amounts paid to the State under the program involved, in any case in which the Secretary determines that the obligation consists of a grant or contract awarded by the State, and that the State has terminated or reduced the amount of such financial assistance on the basis of the failure of the recipient of the assistance to comply with the terms upon which the assistance was conditioned-
(1) the amounts involved shall be available for reobligation by the State through September 30 of the fiscal year following the fiscal year for which the amounts were paid to the State; and
(2) any of such amounts that are obligated by the State in accordance with paragraph (1) shall be available for expenditure through such date.
(July 1, 1944, ch. 373, title XIX, §1952, as added July 10, 1992,