1.  The Division of Child and Family Services shall provide a categorical grant to each agency which provides child welfare services for each fiscal year for its adoption assistance program to the extent that money has been appropriated to the Division for that purpose. The amount of the grant must be based upon the estimated cost of the projected growth in the adoption assistance program.

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2.  The amount of the grant awarded pursuant to subsection 1 must be determined for 2 years beginning on July 1 of each odd-numbered year and allocated each fiscal year.

3.  Except as otherwise provided in subsection 4:

(a) An agency which provides child welfare services that receives a grant pursuant to subsection 1 must use the money allocated only for costs associated with the adoption assistance program.

(b) Any money from the grant awarded pursuant to subsection 1 that has not been used or committed for expenditure by the agency which provides child welfare services by the end of the fiscal year reverts to the State General Fund.

4.  The portion of any money remaining at the end of a fiscal year from a grant awarded pursuant to subsection 1 that is identified as savings pursuant to the calculation required under 42 U.S.C. § 673(a)(8)(D)(ii) does not revert to the State General Fund and may be carried forward to the next fiscal year and used for any costs of providing child welfare services without restriction. Any such money identified as savings that has not been used or committed for expenditure by the agency which provides child welfare services by the end of the fiscal year to which the money was carried forward reverts to the State General Fund.