State Select

The Department of the Interior disburses mineral leasing revenue to U.S. State governments under the State Select program (CFDA 15.429) through automatic monthly transfers tied to oil and gas production on federally managed public domain lands, with no application process or competitive award cycle.

State Select is a statutory revenue-sharing mechanism, not a traditional grant program. The Office of Natural Resources Revenue collects payments from companies extracting minerals from State-selected public domain tracts, verifies lease revenue against statutory formulas under 43 U.S.C. § 852 and 30 U.S.C. § 191, and directs the Treasury to disburse funds automatically to eligible State governments. Funds flow directly to State governments only; private-sector entities do not receive disbursements under this program. States may use proceeds to plan for mineral development impacts, maintain and improve public facilities, and strengthen essential services in communities affected by mineral extraction activity.

Because State Select operates as an automatic revenue-sharing disbursement rather than a discretionary grant program, there is no application deadline, competitive selection process, grant opportunity posting cycle, or award announcement schedule. Eligibility is limited to U.S. State governments that have selected specific public domain lands under federal law. The program imposes no specific restrictions on the use of funds once received. Disbursements occur only when mineral leasing revenue is generated from the selected tracts; there is no base allocation, guaranteed minimum, or off-year funding floor.

This program differs fundamentally from discretionary federal grant programs in that funding derives directly from actual mineral receipts on designated lands rather than from an annual appropriation or competitive pool. Organizations pursuing federal grants to support public infrastructure, emergency services, or economic development should evaluate whether their target State has lands selected under State Select and whether the timing and magnitude of mineral revenue flows align with project timelines. Eligibility is restricted to State governments; local government entities, tribes, non-profits, and private organizations cannot receive State Select funds directly and must seek alternative federal funding mechanisms.