§ 3238. Payments to local governments. The local government assistance
corporation shall not issue obligations for payments to local
governments unless an appropriation or appropriations have been enacted
providing for the determination of the amount and manner of payments to
local governments. Payments to local governments from the net proceeds
of the obligations of the corporation shall be for any or all of the
following purposes:

1. elementary and secondary education, community college aid and
support for tuition assistance programs;

2. payment of the nonfederal share of local medicaid costs; and

3. other local assistance programs, including revenue sharing
assistance, aid for health and the improvement of environmental quality,
housing initiatives, mental health and drug abuse programs, mass
transportation and highway and bridge programs.