34 CFR §76.50

1. (a)Under a program covered by this part, the Secretary makes a grant:
   1. (1)To the State agency designated by the authorizing statute for the program; or
   2. (2)To the State agency designated by the State in accordance with the authorizing statute.
2. (b)The authorizing statute determines the extent to which a State may:
   1. (1)Use grant funds directly; and
   2. (2)Make subgrants to eligible applicants.
3. (c)The regulations in part 76 on subgrants apply to a program only if subgrants are authorized under that program.
4. (d)The authorizing statute determines the eligibility of an applicant for a subgrant.