(1) When federal funds are available for payment of direct financial assistance to displaced persons, the state agency may match such federal funds to the extent provided by federal law and to provide such direct financial assistance in the instances and on the conditions set forth by federal law and regulations.
(2) When federal funds are not available or used for payment of direct financial assistance to persons displaced by the acquisition of property by the state, the state agency may provide direct financial assistance to such persons. Financial assistance authorized by this subsection shall not exceed the total amount that would have been payable under subsection (1) of this section if federal funds had been available or used. The state agency may adopt rules and regulations to carry out the provisions of this subsection.