Availability of Federal Funds To Pay Local Matching Share in Federal Grant Program under Coastal Zone Management Act

The General Counsel, Department of Commerce, requested a ruling on the proper interpretation and application of provisions of the Coastal Zone Management Act (CZMA) of 1972 and amendments. Federal grant funds received by a state under CZMA may not be used to pay the state's share of another matching grant program authorized by CZMA since there is no specific authority in the act for this use of funds. However, the state could use federal funds from another source to pay its share under two CZMA grant programs if the statutory source of funds authorized such use and it was consistent with the purpose for which the other funds were furnished. The statutory prohibition in CZMA is more strict than this general rule and prohibits the use of federal matching funds for four specifically designated CZMA grants, but since section 308(c) and 315 grants were not named in this prohibition, the general rule applies.