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42 U.S. Code § 300x-31. Restrictions on expenditure of grant
(a) In general
(1) Certain restrictionsA funding agreement for a grant under section 300x–21 of this title is that the State involved will not expend the grant—
(A)
to provide inpatient hospital services, except as provided in subsection (b);
(B)
to make cash payments to intended recipients of health services;
(C)
to purchase or improve land, purchase, construct, or permanently improve (other than minor remodeling) any building or other facility, or purchase major medical equipment;
(D)
to satisfy any requirement for the expenditure of non-Federal funds as a condition for the receipt of Federal funds;
(E)
to provide financial assistance to any entity other than a public or nonprofit private entity; or
(F)
to carry out any program prohibited by section 300ee–5 of this title.
(2) Limitation on administrative expenses
A funding agreement for a grant under section 300x–21 of this title is that the State involved will not expend more than 5 percent of the grant to pay the costs of administering the grant.