payments to states

payments to states Sec. 113. Section 137 of the Act, is amended as follows: (1) The heading for such section is amended by inserting “construction,” after “planning,”. (2) Subsection (a) of such section is amended by striking out “(1)” and by striking out paragraph (2). (3) Subsection (b) is amended to read as follows: “(b) (1) Upon certification to the Secretary by the State agency, designated pursuant to section 134(b) (1), based upon inspection by it, that work has been performed upon a construction project, or purchases have been made for such project, in accordance with the approved plans and specifications and that payment of an installment is due to the applicant, such installment, shall be paid to the State with respect to such project, from the applicable allotment of such State, except that (A) if the State is not authorized by law to make payments to the applicant, the payment shall be made directly to the applicant, (B) if the Secretary, after investigation or otherwise, has reason to 89 STAT. 493believe that any act (or failure to act) has occurred requiring action pursuant, to section 136, payment may, after he has given the State agency so designated notice of opportunity for hearing pursuant to such section, be withheld, in whole or in part, pending corrective action or action based on such hearing, and (C) the total of payments under this subsection with respect to such project may not exceed an amount equal to the Federal share of the cost of construction of such project. “(2) In case the estimated cost of a project is revised upward, any additional payment with respect thereto may be made from the applicable allotment of the State for the fiscal year in which such revision is approved.”