(1) Certain restrictions A 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) of this section;
(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.
(3) Limitation regarding penal and correctional institutions A funding agreement for a State for a grant under section
300x–21 of this title is that, in expending the grant for the purpose of providing treatment services in penal or correctional institutions of the State, the State will not expend more than an amount equal to the amount expended for such purpose by the State from the grant made under section
300x–1a1 of this title to the State for fiscal year 1991 (as section
300x–1a1 of this title was in effect for such fiscal year).