34 U.S.C. § 12261: Authority of Attorney General

(a) In generalWith the funds available to carry out this part for the benefit of Federal prisoners, the Attorney General, acting through the Director of the Bureau of Prisons, shall select eligible prisoners to live in community correctional facilities with their children. (b) General contracting authorityIn implementing this part, the Attorney General may enter into contracts with appropriate public or private agencies to provide housing, sustenance, services, and supervision of inmates eligible for placement in community correctional facilities under this part. (c) Use of State facilitiesAt the discretion of the Attorney General, Federal participants may be placed in State projects as defined in subpart 1. For such participants, the Attorney General shall, with funds available under section 13883(b)(2) 1 of title 42, reimburse the State for all project costs related to the Federal participant’s placement, including administrative costs.