126 
shall establish and implement procedures for carrying out section 
302902(c)(1)(A) of this title with respect to tribal programs that assume re-
sponsibilities under section 302702 of this title. 
§ 302704. Contracts and cooperative agreements 
At the request of an Indian tribe whose preservation program has been ap-
proved to assume functions and responsibilities pursuant to section 302702 
of this title, the Secretary shall enter into a contract or cooperative agreement 
with the Indian tribe permitting the assumption by the Indian tribe of any 
part of the responsibilities described in section 302304(b) of this title on tribal 
land, if— 
(1) the Secretary and the Indian tribe agree on additional financial 
assistance, if any, to the Indian tribe for the costs of carrying out those 
authorities; 
(2) the Secretary finds that the tribal historic preservation program 
has been demonstrated to be sufficient to carry out the contract or coop-
erative agreement and this division; and 
(3) the contract or cooperative agreement specifies the continuing re-
sponsibilities of the Secretary or of the appropriate State Historic Pres-
ervation Officers and provides for appropriate participation by— 
(A) the Indian tribe’s traditional cultural authorities; 
(B) representatives of other Indian tribes whose traditional land 
is under the jurisdiction of the Indian tribe assuming responsibil-
ities; and 
(C) the interested public. 
§ 302705. Agreement for review under tribal historic preser-
vation regulations 
The Council may enter into an agreement with an Indian tribe to permit 
undertakings on tribal land to be reviewed under tribal historic preservation 
regulations in place of review under regulations promulgated by the Council 
to govern compliance with section 306108 of this title, if the Council, after 
consultation with the Indian tribe and appropriate State Historic Preserva-
tion Officers, determines that the tribal preservation regulations will afford 
historic property consideration equivalent to that afforded by the Council’s 
regulations. 
§ 302706. Eligibility for inclusion on National Register 
(a) IN GENERAL.—Property of traditional religious and cultural impor-
tance to an Indian tribe or Native Hawaiian organization may be deter-
mined to be eligible for inclusion on the National Register. 
(b) CONSULTATION.—In carrying out its responsibilities under section 
306108 of this title, a Federal agency shall consult with any Indian tribe or 
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Native Hawaiian organization that attaches religious and cultural signifi-
cance to property described in subsection (a). 
(c) HAWAII.—In carrying out responsibilities under section 302303 of this 
title, the State Historic Preservation Officer for Hawaii shall— 
(1) consult with Native Hawaiian organizations in assessing the cul-
tural significance of any property in determining whether to nominate 
the property to the National Register; 
(2) consult with Native Hawaiian organizations in developing the cul-
tural component of a preservation program or plan for the property; and 
(3) enter into a memorandum of understanding or agreement with Na-
tive Hawaiian organizations for the assessment of the cultural signifi-
cance of a property in determining whether to nominate the property to 
the National Register and to carry out the cultural component of the 
preservation program or plan. 
Chapter 3029—Grants 
Sec. 
302901.
Awarding of grants and availability of grant funds. 
302902.
Grants to States. 
302903.
Grants to National Trust. 
302904.
Direct grants for the preservation of properties included on National Register. 
302905.
Religious property. 
302906.
Grants and loans to Indian tribes and nonprofit organizations representing ethnic or 
minority groups. 
302907.
Grants to Indian tribes and Native Hawaiian organizations. 
302908.
Grants to the Federated States of Micronesia, the Republic of the Marshall Islands, and 
the Republic of Palau. 
302909.
Prohibited use of grant amounts. 
302910.
Recordkeeping. 
§ 302901. Awarding of grants and availability of grant funds 
(a) IN GENERAL.—No grant may be made under this division unless appli-
cation for the grant is submitted to the Secretary in accordance with regula-
tions and procedures prescribed by the Secretary. 
(b) GRANT NOT TREATED AS TAXABLE INCOME.—No grant made pursuant 
to this division shall be treated as taxable income for purposes of the Internal 
Revenue Code of 1986 (26 U.S.C. 1 et seq). 
(c) AVAILABILITY.—The Secretary shall make funding available to indi-
vidual States and the National Trust as soon as practicable after execution 
of a grant agreement. For purposes of administration, grants to individual 
States and the National Trust each shall be deemed to be one grant and shall 
be administered by the Service as one grant. 
§ 302902. Grants to States 
(a) IN GENERAL.—The Secretary shall administer a program of matching 
grants to the States for the purposes of carrying out this division. 
(b) CONDITIONS.— 
(1) In general.—No grant may be made under this division— 
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(A) unless the application is in accordance with the comprehen-
sive statewide historic preservation plan that has been approved by 
the Secretary after considering its relationship to the comprehensive 
statewide outdoor recreation plan prepared pursuant to chapter 
2003 of this title; 
(B) unless the grantee has agreed to make reports, in such form 
and containing such information, as the Secretary may from time 
to time require; 
(C) unless the grantee has agreed to assume, after completion of 
the project, the total cost of the continued maintenance, repair, and 
administration of the property in a manner satisfactory to the Sec-
retary; or 
(D) until the grantee has complied with such further terms and 
conditions as the Secretary may consider necessary or advisable. 
(2) WAIVER.—The Secretary may waive the requirements of subpara-
graphs (A) and (C) of paragraph (1) for any grant under this division 
to the National Trust. 
(3) AMOUNT LIMITATION.— 
(A) IN GENERAL.—No grant may be made under this division for 
more than 60 percent of the aggregate costs of carrying out projects 
and programs under the administrative control of the State Historic 
Preservation Officer as specified in section 302303 of this title in 
any one fiscal year. 
(B) SOURCE OF STATE SHARE OF COSTS.—Except as permitted 
by other law, the State share of the costs referred to in subpara-
graph (A) shall be contributed by non-Federal sources. 
(4) RESTRICTION ON USE OF REAL PROPERTY TO MEET NON-FED-
ERAL SHARE OF COST OF PROJECT.—No State shall be permitted to uti-
lize the value of real property obtained before October 15, 1966, in meet-
ing the non-Federal share of the cost of a project for which a grant is 
made under this division. 
(c) APPORTIONMENT OF GRANT AMOUNTS 
(1) BASES
FOR
APPORTIONMENT.—The amounts appropriated and 
made available for grants to the States— 
(A) for the purposes of this division shall be apportioned among 
the States by the Secretary on the basis of needs as determined by 
the Secretary; and 
(B) for projects and programs under this division for each fiscal 
year shall be apportioned among the States as the Secretary deter-
mines to be appropriate. 
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(2) NOTIFICATION.—The Secretary shall notify each State of its appor-
tionment under paragraph (1)(B) within 30 days after the date of enact-
ment of legislation appropriating funds under this division. 
(3) REAPPORTIONMENT.—Any amount of any apportionment that has 
not been paid or obligated by the Secretary during the fiscal year in 
which the notification is given or during the 2 fiscal years after that fis-
cal year shall be reapportioned by the Secretary in accordance with 
paragraph (1)(B). The Secretary shall analyze and revise as necessary 
the method of apportionment. The method and any revision shall be pub-
lished by the Secretary in the Federal Register. 
(4) TRANSFER OF FUNDS TO CERTIFIED LOCAL GOVERNMENTS.—Not 
less than 10 percent of the annual apportionment distributed by the Sec-
retary to each State for the purposes of carrying out this division shall 
be transferred by the State, pursuant to the requirements of this division, 
to certified local governments for historic preservation projects or pro-
grams of the certified local governments. In any year in which the total 
annual apportionment to the States exceeds $65,000,000, 50 percent of 
the excess shall also be transferred by the States to certified local govern-
ments. 
(5) GUIDELINES FOR USE AND DISTRIBUTION OF FUNDS TO CERTIFIED 
LOCAL GOVERNMENTS.—The Secretary shall establish guidelines for the 
use and distribution of funds under paragraph (4) to ensure that no cer-
tified local government receives a disproportionate share of the funds 
available, and may include a maximum or minimum limitation on the 
amount of funds distributed to any single certified local government. The 
guidelines shall not limit the ability of any State to distribute more than 
10 percent of its annual apportionment under paragraph (4), nor shall 
the Secretary require any State to exceed the 10 percent minimum dis-
tribution to certified local governments. 
(d) ADMINISTRATIVE COSTS.—The total direct and indirect administrative 
costs charged for carrying out State projects and programs shall not exceed 
25 percent of the aggregate costs (except in the case of a grant to the Fed-
erated States of Micronesia, the Republic of the Marshall Islands, or the Re-
public of Palau). 
§ 302903. Grants to National Trust 
(a) SECRETARY OF THE INTERIOR.—The Secretary may administer grants 
to the National Trust consistent with the purposes of its charter and this divi-
sion. 
(b) SECRETARY OF HOUSING AND URBAN DEVELOPMENT.—The Secretary 
of Housing and Urban Development may make grants to the National Trust, 
on terms and conditions and in amounts (not exceeding $90,000 with respect 
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