“Does the code provide for good/bad behavior distinctions in the distributions”
I’m not sure about the wording, but I would presume that if a municipality refuses to do the work that the Feds would pay them to do, they oughtn’t to accept the money. Alternatively, the Feds should not pay them.
Its up to Congress to clean up a sloppy dole. If it’s only a matter of whose morals the Calvinball is played around, a central problem remains unresolved.