(a) In general The Secretary may not make payments under section
300ee–11 (a) of this title for a fiscal year unless the State involved agrees that the payments will not be expended
(1) to provide inpatient services;
(2) to make cash payments to intended recipients of services;
(3) to purchase or improve real property (other than minor remodeling of existing improvements to real property) or to purchase major medical equipment; or
(4) to satisfy any requirement for the expenditure of non-Federal funds as a condition for the receipt of Federal funds.
(b) Limitation on administrative expenses The Secretary may not make payments under section
300ee–11 (a) of this title for a fiscal year unless the State involved agrees that the State will not expend more than 5 percent of the payments for administrative expenses with respect to carrying out the purpose described in section
300ee–11 (b) of this title.
