(a) In general The Secretary may not make payments under section 300ee–11(a) of this title for a fiscal year unless the State involved agrees that the payments will not be expended— (1) to provide inpatient services ; (2) to make cash payments to intended recipients of services ; (3) to purchase or improve real property (other than minor remodeling of existing improvements to real property) or to purchase major medical equipment; or (4) to satisfy any requirement for the expenditure of non-Federal funds as a condition for the receipt of Federal funds. (b) Limitation on administrative expenses The Secretary may not make payments under section 300ee–11(a) of this title for a fiscal year unless the State involved agrees that the State will not expend more than 5 percent of the payments for administrative expenses with respect to carrying out the purpose described in section 300ee–11(b) of this title . (July 1, 1944, ch. 373, title XXV, formerly title XV, § 2504, as added Pub. L. 100–607, title II, § 221 , Nov. 4, 1988 , 102 Stat. 3095 ; renumbered title XXV, Pub. L. 101–93, § 5(e)(1) , Aug. 16, 1989 , 103 Stat. 612 .) Editorial Notes Prior Provisions A prior section 2504 of act July 1, 1944 , was successively renumbered by subsequent acts, see section 238c of this title .