116
(D) in the case of a program under the 
Workforce Investment Act, with respect to any 
requirement the waiver of which would violate 
section 189(i)(4)(A)(i) of such Act; 
(E) in the case of the food stamp program 
(as defined in section 3(h) of the Food Stamp 
Act of 1977 (7 U.S.C. 2012(h)), with respect to 
any requirement under—
(i) section 6 (if waiving a requirement 
under such section would have the effect of 
expanding eligibility for the program), 7(b) 
or 16(c) of the Food Stamp Act of 1977 
(7 U.S.C. 2011 et seq.); or 
(ii) title IV of the Personal Responsi-
bility and Work Opportunity Reconciliation 
Act of 1996 (8 U.S.C. 1601 et seq.); 
(F) with respect to any requirement that a 
State pass through to a sub-State entity part or 
all of an amount paid to the State; 
(G) if the waiver would waive any funding 
restriction or limitation provided in an appro-
priations Act, or would have the effect of trans-
ferring appropriated funds from 1 appropria-
tions account to another; or
117
(H) except as otherwise provided by stat-
ute, if the waiver would waive any funding re-
striction applicable to a program authorized 
under an Act which is not an appropriations 
Act (but not including program requirements 
such as application procedures, performance 
standards, reporting requirements, or eligibility 
standards), or would have the effect of transfer-
ring funds from a program for which there is 
direct spending (as defined in section 250(c)(8) 
of the Balanced Budget and Emergency Deficit 
Control Act of 1985) to another program. 
(3) AGREEMENT OF EACH ADMINISTERING SEC-
RETARY REQUIRED.—
(A) IN GENERAL.—An applicant may not 
conduct a demonstration project under this sec-
tion unless each administering Secretary with 
respect to any program proposed to be included 
in the project has approved the application to 
conduct the project. 
(B) AGREEMENT WITH RESPECT TO FUND-
ING AND IMPLEMENTATION.—Before approving 
an application to conduct a demonstration 
project under this section, an administering 
Secretary shall have in place an agreement with
118
the applicant with respect to the payment of 
funds and responsibilities required of the ad-
ministering Secretary with respect to the 
project. 
(4) COST-NEUTRALITY REQUIREMENT.—
(A) 
GENERAL
RULE.—Notwithstanding 
any other provision of law (except subparagraph 
(B)), the total of the amounts that may be paid 
by the Federal Government for a fiscal year 
with respect to the programs in the State in 
which an entity conducting a demonstration 
project under this section is located that are af-
fected by the project shall not exceed the esti-
mated total amount that the Federal Govern-
ment would have paid for the fiscal year with 
respect to the programs if the project had not 
been conducted, as determined by the Director 
of the Office of Management and Budget. 
(B) SPECIAL RULE.—If an applicant sub-
mits to the Director of the Office of Manage-
ment and Budget a request to apply the rules 
of this subparagraph to the programs in the 
State in which the applicant is located that are 
affected by a demonstration project proposed in 
an application submitted by the applicant pur-
119
suant to this section, during such period of not 
more than 5 consecutive fiscal years in which 
the project is in effect, and the Director deter-
mines, on the basis of supporting information 
provided by the applicant, to grant the request, 
then, notwithstanding any other provision of 
law, the total of the amounts that may be paid 
by the Federal Government for the period with 
respect to the programs shall not exceed the es-
timated total amount that the Federal Govern-
ment would have paid for the period with re-
spect to the programs if the project had not 
been conducted. 
(5) 90-DAY APPROVAL DEADLINE.—
(A) IN
GENERAL.—If an administering 
Secretary receives an application to conduct a 
demonstration project under this section and 
does not disapprove the application within 90 
days after the receipt, then—
(i) the administering Secretary is 
deemed to have approved the application 
for such period as is requested in the ap-
plication, except to the extent inconsistent 
with subsection (e); and