42 USC 3796ff - Grant authorization

(a) In general 
The Attorney General may make grants under this subchapter to States, for use by States and units of local government for the purpose of
(1) developing and implementing residential substance abuse treatment programs within State correctional facilities, as well as within local correctional and detention facilities in which inmates are incarcerated for a period of time sufficient to permit substance abuse treatment; and
(2) encouraging the establishment and maintenance of drug-free prisons and jails.
(b) Consultation 
The Attorney General shall consult with the Secretary of Health and Human Services to ensure that projects of substance abuse treatment and related services for State prisoners incorporate applicable components of existing comprehensive approaches including relapse prevention and aftercare services.

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(c) Additional use of funds 
States that demonstrate that they have existing in-prison drug treatment programs that are in compliance with Federal requirements may use funds awarded under this subchapter for treatment and sanctions both during incarceration and after release.