 
                CHAPTER 73--ADULT EDUCATION AND LITERACY
 
            SUBCHAPTER I--ADULT EDUCATION AND FAMILY LITERACY
 
              Part A--Adult Education and Literacy Programs
 
                       subpart 2--state provisions
 
Sec. 9222. State distribution of funds; matching requirement


(a) State distribution of funds

    Each eligible agency receiving a grant under this part for a fiscal 
year--
        (1) shall use not less than 82.5 percent of the grant funds to 
    award grants and contracts under section 9241 of this title and to 
    carry out section 9225 of this title, of which not more than 10 
    percent of the 82.5 percent shall be available to carry out section 
    9225 of this title;
        (2) shall use not more than 12.5 percent of the grant funds to 
    carry out State leadership activities under section 9223 of this 
    title; and
        (3) shall use not more than 5 percent of the grant funds, or 
    $65,000, whichever is greater, for the administrative expenses of 
    the eligible agency.

(b) Matching requirement

                           (1) In general

        In order to receive a grant from the Secretary under section 
    9211(b) of this title each eligible agency shall provide, for the 
    costs to be incurred by the eligible agency in carrying out the 
    adult education and literacy activities for which the grant is 
    awarded, a non-Federal contribution in an amount equal to--
            (A) in the case of an eligible agency serving an outlying 
        area, 12 percent of the total amount of funds expended for adult 
        education and literacy activities in the outlying area, except 
        that the Secretary may decrease the amount of funds required 
        under this subparagraph for an eligible agency; and
            (B) in the case of an eligible agency serving a State, 25 
        percent of the total amount of funds expended for adult 
        education and literacy activities in the State.

                    (2) Non-Federal contribution

        An eligible agency's non-Federal contribution required under 
    paragraph (1) may be provided in cash or in kind, fairly evaluated, 
    and shall include only non-Federal funds that are used for adult 
    education and literacy activities in a manner that is consistent 
    with the purpose of this part.

(Pub. L. 105-220, title II, Sec. 222, Aug. 7, 1998, 112 Stat. 1066.)

                  Section Referred to in Other Sections

    This section is referred to in sections 9223, 9225 of this title.
