‘‘(4) developing or updating State homeland se-
curity plans, risk assessments, mutual aid agree-
ments, and emergency management plans to enhance 
terrorism preparedness; 
‘‘(5) establishing or enhancing mechanisms for 
sharing terrorism threat information; 
‘‘(6) systems architecture and engineering, pro-
gram planning and management, strategy formula-
tion and strategic planning, life-cycle systems de-
sign, product and technology evaluation, and proto-
type development for terrorism preparedness pur-
poses; 
‘‘(7) additional personnel costs resulting from— 
‘‘(A) elevations in the threat alert level of 
the Homeland Security Advisory System by the 
Secretary, or a similar elevation in threat alert 
level issued by a State, region, or local govern-
ment with the approval of the Secretary; 
‘‘(B) travel to and participation in exer-
cises and training in the use of equipment and 
on prevention activities; and 
‘‘(C) the temporary replacement of per-
sonnel during any period of travel to and par-
ticipation in exercises and training in the use of 
equipment and on prevention activities; 
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‘‘(8) the costs of equipment (including software) 
required to receive, transmit, handle, and store clas-
sified information; 
‘‘(9) protecting critical infrastructure against 
potential attack by the addition of barriers, fences, 
gates, and other such devices, except that the cost 
of such measures may not exceed the greater of— 
‘‘(A) $1,000,000 per project; or 
‘‘(B) such greater amount as may be ap-
proved by the Secretary, which may not exceed 
10 percent of the total amount of the covered 
grant; 
‘‘(10) the costs of commercially available inter-
operable communications equipment (which, where 
applicable, is based on national, voluntary consensus 
standards) that the Secretary, in consultation with 
the Chairman of the Federal Communications Com-
mission, deems best suited to facilitate interoper-
ability, coordination, and integration between and 
among emergency communications systems, and that 
complies with prevailing grant guidance of the De-
partment for interoperable communications; 
‘‘(11) educational curricula development for 
first responders to ensure that they are prepared for 
terrorist attacks; 
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‘‘(12) training and exercises to assist public ele-
mentary and secondary schools in developing and 
implementing programs to instruct students regard-
ing age-appropriate skills to prevent, prepare for, re-
spond to, mitigate against, or recover from an act of 
terrorism; 
‘‘(13) paying of administrative expenses directly 
related to administration of the grant, except that 
such expenses may not exceed 3 percent of the 
amount of the grant; 
‘‘(14) paying for the conduct of any activity 
permitted under the Law Enforcement Terrorism 
Prevention Program, or any such successor to such 
program; and 
‘‘(15) other appropriate activities as determined 
by the Secretary. 
‘‘(b) PROHIBITED USES.—Funds provided as a cov-
ered grant may not be used— 
‘‘(1) to supplant State or local funds; 
‘‘(2) to construct buildings or other physical fa-
cilities; 
‘‘(3) to acquire land; or 
‘‘(4) for any State or local government cost 
sharing contribution. 
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‘‘(c) MULTIPLE-PURPOSE FUNDS.—Nothing in this 
section shall be construed to preclude State and local gov-
ernments from using covered grant funds in a manner 
that also enhances first responder preparedness for emer-
gencies and disasters unrelated to acts of terrorism, if 
such use assists such governments in achieving essential 
capabilities for terrorism preparedness established by the 
Secretary. 
‘‘(d) REIMBURSEMENT OF COSTS.—(1) In addition 
to the activities described in subsection (a), a covered 
grant may be used to provide a reasonable stipend to paid- 
on-call or volunteer first responders who are not otherwise 
compensated for travel to or participation in training cov-
ered by this section. Any such reimbursement shall not 
be considered compensation for purposes of rendering 
such a first responder an employee under the Fair Labor 
Standards Act of 1938 (29 U.S.C. 201 et seq.). 
‘‘(2) An applicant for a covered grant may petition 
the Secretary for the reimbursement of the cost of any 
activity relating to prevention (including detection) of, pre-
paredness for, response to, or recovery from acts of ter-
rorism that is a Federal duty and usually performed by 
a Federal agency, and that is being performed by a State 
or local government (or both) under agreement with a 
Federal agency. 
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‘‘(e) ASSISTANCE REQUIREMENT.—The Secretary 
may not require that equipment paid for, wholly or in part, 
with funds provided as a covered grant be made available 
for responding to emergencies in surrounding States, re-
gions, and localities, unless the Secretary undertakes to 
pay the costs directly attributable to transporting and op-
erating such equipment during such response. 
‘‘(f) FLEXIBILITY IN UNSPENT HOMELAND SECU-
RITY GRANT FUNDS.—Upon request by the recipient of 
a covered grant, the Secretary may authorize the grantee 
to transfer all or part of funds provided as the covered 
grant from uses specified in the grant agreement to other 
uses authorized under this section, if the Secretary deter-
mines that such transfer is in the interests of homeland 
security. 
‘‘(g) STATE, REGIONAL, AND TRIBAL RESPONSIBIL-
ITIES.— 
‘‘(1) PASS-THROUGH.—The Secretary shall re-
quire a recipient of a covered grant that is a State 
to obligate or otherwise make available to local gov-
ernments, first responders, and other local groups, 
to the extent required under the State homeland se-
curity plan or plans specified in the application for 
the grant, not less than 80 percent of the grant 
funds, resources purchased with the grant funds 
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