42 U.S.C. § 3154c

1. (a)Subject to subsection (b), a recipient of a grant under section 3141, 3143, or 3147 of this title may directly expend the grant funds or may redistribute the funds in the form of a subgrant to other eligible recipients to fund required components of the scope of work approved for the project.
2. (b)A recipient may not redistribute grant funds received under section 3141 or 3143 of this title to a for-profit entity.
3. (c)Subject to subsection (d), a recipient of a grant under section 3149 of this title may directly expend the grant funds or may redistribute the funds to public and private entities in the form of a grant, loan, loan guarantee, payment to reduce interest on a loan guarantee, or other appropriate assistance.
4. (d)Under subsection (c), a recipient may not provide any grant to a private for-profit entity.