101 S T A T. 980 . •3. '
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P U B L I C L A W 1 0 0 - 1 7 5 — N O V. 29, 1987 "(1)(A) For the first year of payments to a State from a g r a n t under section 395(a), the Secretary may not m a k e such payments in a n a m o u n t 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 m a k e such payments in a n a m o u n t exceeding 65 percent of the costs of such services. "(C) For the third year of such payments to a State, the Secretary may not m a k e such payments in a n a m o u n t exceeding 55 percent of the costs of such services. "(2) The Secretary may not m a k e a g r a n t under section 395(a) to a State unless the State agrees to m a k e 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 a n a m o u n t 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 A M O U N TO P N O N - FEDERAL CONTRIBU-
TION.—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 b e included in determining the a m o u n t of such non-Federal contributions. 42 USC 280C-2.
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"SEC. 397. GENERAL PROVISIONS. "(a) LIMITATION ON ADMINISTRATIVE EXPENSES.—The Secretary
may not make a grant under section 395(a) to a State unless the State agrees that not more than 10 percent of the grant will be expended for administrative expenses with respect to the grant. "(b) DESCRIPTION OF INTENDED USE OF GRANT.—The Secretary may not make a grant under section 395(a) to a State unless— "(1) the State submits to the Secretary a description of the purposes for which the State intends to expend the grant; and "(2) such description provides information relating to the programs and activities to be supported and services to be provided, including— "(A) the number of individuals who will receive services pursuant to section 395(a) and the average costs of providi ^:•
- ing such services to each such individual; and
"(B) a description of the manner in which such programs and activities will be coordinated with any similar programs and activities of public and private entities. "(c) REQUIREMENT OF APPLICATION.—The Secretary may not make a grant under section 395(a) to a State unless the State has submitted to the Secretary an application for the grant. The application shall— "(1) contain the description of intended expenditures required in subsection (b);
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