Section 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.