RESTRICTIONS ON USE OF GRANT.

SEC. 2504. [300ee–14] RESTRICTIONS ON USE OF GRANT. (a) In General.—The Secretary may not make payments under section 2501(a) 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 2501(a) 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 2501(b).