Grantees can use up to five percent of the allocation for administering the grant.
In the case of State grantees, the grant for administration must be shared with funded recipients. Local governments receiving formula allocations may distribute all or part of their grants to nonprofit recipients to be used for ESG activities. State grantees must distribute ESG funds to local governments, or directly to nonprofit organizations with the approval of the local government. Only local governments and nonprofit organizations may apply for ESG funds directly from States. The territories receive their allocations based on their population size.