United States Code (Last Updated: May 24, 2014) |
Title 42. THE PUBLIC HEALTH AND WELFARE |
Chapter 7. SOCIAL SECURITY |
SubChapter IV. GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH CHILDREN AND FOR CHILD-WELFARE SERVICES |
Part A. Block Grants to States for Temporary Assistance for Needy Families |
§ 606. Federal loans for State welfare programs
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(a) Loan authority (1) In general The Secretary shall make loans to any loan-eligible State, for a period to maturity of not more than 3 years.
(2) Loan-eligible State As used in paragraph (1), the term “loan-eligible State” means a State against which a penalty has not been imposed under section 609(a)(1) of this title.
(b) Rate of interest The Secretary shall charge and collect interest on any loan made under this section at a rate equal to the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the period to maturity of the loan.
(c) Use of loan A State shall use a loan made to the State under this section only for any purpose for which grant amounts received by the State under section 603(a) of this title may be used, including— (1) welfare anti-fraud activities; and (2) the provision of assistance under the State program to Indian families that have moved from the service area of an Indian tribe with a tribal family assistance plan approved under section 612 of this title. (d) Limitation on total amount of loans to State The cumulative dollar amount of all loans made to a State under this section during fiscal years 1997 through 2003 shall not exceed 10 percent of the State family assistance grant.
(e) Limitation on total amount of outstanding loans The total dollar amount of loans outstanding under this section may not exceed $1,700,000,000.
(f) Appropriation Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated such sums as may be necessary for the cost of loans under this section.
Prior Provisions
A prior section 606, acts Aug. 14, 1935, ch. 531, title IV, § 406, 49 Stat. 629; Aug. 10, 1939, ch. 666, title IV, § 403, 53 Stat. 1380; Aug. 28, 1950, ch. 809, title III, pt. 2, § 323(a), 64 Stat. 551; Aug. 1, 1956, ch. 836, title III, §§ 321, 322, 351(b), 70 Stat. 850, 855;
Amendments
2003—Subsec. (d). Pub. L. 108–40 substituted “2003” for “2002”.
1997—Pub. L. 105–33 made technical amendment to directory language of Pub. L. 104–193, § 103(a)(1), which enacted this section.
Effective Date Of Amendment
Amendment by Pub. L. 108–40 effective
Amendment by Pub. L. 105–33 effective as if included in the provision of Pub. L. 104–193 amended at the time the provision became law, see section 5518(d) of Pub. L. 105–33, set out as a note under section 862a of Title 21, Food and Drugs.
Effective Date
Section effective