‘‘(A) are sufficient to permit the preparation of 
reports required by this title; 
‘‘(B) are sufficient to permit the tracing of 
funds to a level of expenditure adequate to ensure 
that the funds have not been spent unlawfully; and 
‘‘(C) contain any other information that the 
Secretary determines to be appropriate. 
‘‘(g) The Secretary shall establish by rule and imple-
ment a process to evaluate, in accordance with section 
513, the performance of projects and services carried out 
under this title. The Secretary shall report to the Con-
gress, and make available to the public, the results of each 
such evaluation and shall use such evaluation to improve 
services delivered by, or the operation of, projects carried 
out under this title. 
‘‘SEC. 504. PARTICIPANTS NOT FEDERAL EMPLOYEES. 
‘‘(a) Eligible individuals who are participants in au-
thorized activities in any project funded under this title 
shall not be considered to be Federal employees as a result 
of such participation and shall not be subject to part III 
of title 5, United States Code. 
‘‘(b) No grant, subgrant, contract or subcontract 
shall be entered into under this title with an entity who 
is, or whose employees are, under State law, exempted 
from operation of the State workers’ compensation law, 
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generally applicable to employees unless the entity shall 
undertake to provide either through insurance by a recog-
nized carrier or by self-insurance, as authorized by State 
law, that the persons employed under the grant, contract, 
subgrant, or subcontract shall enjoy workers’ compensa-
tion coverage equal to that provided by law for covered 
employment. 
‘‘SEC. 505. INTERAGENCY COOPERATION. 
‘‘(a) The Secretary shall consult with and obtain the 
written views of the Assistant Secretary before issuing 
rules and before establishing general policy in the adminis-
tration of this title. 
‘‘(b) The Secretary shall consult and cooperate with 
the Director of the Office of Community Services, the Sec-
retary of Health and Human Services, and the heads of 
other Federal agencies that carry out related programs, 
in order to achieve optimal coordination with such other 
programs. In carrying out this section, the Secretary shall 
promote programs or projects of a similar nature. Each 
Federal agency shall cooperate with the Secretary in dis-
seminating information relating to the availability of as-
sistance under this title and in promoting the identifica-
tion and interests of individuals eligible for employment 
in projects assisted under this title. 
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‘‘(c)(1) The Secretary shall promote and coordinate 
carrying out projects under this title jointly with pro-
grams, projects, or activities carried out under other Acts, 
especially activities provided under the Workforce Invest-
ment Act of 1998 (29 U.S.C. 2801 et seq.), including ac-
tivities provided through One-Stop delivery systems estab-
lished under section 134(c) of such Act (29 U.S.C. 
2864(c)), that provide training and employment opportu-
nities to eligible individuals. 
‘‘(2) The Secretary shall consult with the Secretary 
of Education to promote and coordinate carrying out 
projects under this title jointly with workforce investment 
activities in which eligible individuals may participate that 
are carried out under the Carl D. Perkins Vocational and 
Technical Education Act of 1998. 
‘‘SEC. 506. DISTRIBUTION OF ASSISTANCE. 
‘‘(a) RESERVATIONS.— 
‘‘(1) RESERVATION
FOR
NATIONAL
ACTIVI-
TIES.—Of the funds appropriated to carry out this 
title for each fiscal year, the Secretary may first re-
serve up to 1.5 percent to carry out demonstration 
projects, pilot projects, and evaluation projects 
under section 502(d). 
‘‘(2) RESERVATION FOR TERRITORIES.—Of the 
funds appropriated to carry out this title for each 
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fiscal year, the Secretary shall reserve up to 0.75 
percent, of which— 
‘‘(A) Guam, American Samoa, and the 
United States Virgin Islands shall each receive 
30 percent of the funds so reserved; and 
‘‘(B) the Commonwealth of the Northern 
Mariana Islands shall receive 10 percent of the 
funds so reserved. 
‘‘(3) RESERVATION
FOR
ORGANIZATIONS.—Of 
the funds appropriated to carry out this title for 
each fiscal year, the Secretary shall reserve such 
amount as may be necessary to make national 
grants to public or nonprofit national Indian aging 
organizations with the ability to provide authorized 
activities for eligible individuals who are Indians and 
to national public or nonprofit Pacific Island and 
Asian American aging organizations with the ability 
to provide authorized activities for eligible individ-
uals who are Pacific Island and Asian Americans. 
‘‘(b) STATE ALLOTMENTS.—The allotment for each 
State shall be the sum of the amounts allotted for national 
grants in such State under subsection (d) and for the 
grant to such State under subsection (e). 
‘‘(c) DIVISION BETWEEN NATIONAL GRANTS AND 
GRANTS TO STATES.—The funds appropriated to carry 
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out this title for any fiscal year that remain after amounts 
are reserved under paragraphs (1), (2), and (3) of sub-
section (a), shall be divided by the Secretary between na-
tional grants and grants to States as follows: 
‘‘(1) RESERVATION
OF
FUNDS
FOR
FISCAL 
YEAR 2006 LEVEL OF ACTIVITIES.— 
‘‘(A) The Secretary shall reserve the 
amount of funds necessary to maintain the fis-
cal year 2006 level of activities supported by 
grantees that operate under this title under na-
tional grants from the Secretary, and the fiscal 
year 2006 level of activities supported by State 
grantees under this title, in proportion to their 
respective fiscal year 2006 levels of activities. 
‘‘(B) If in any fiscal year for which the 
funds appropriated to carry out this title are in-
sufficient to satisfy the requirement specified in 
subparagraph (A), then the amount described 
in subparagraph (A) shall be reduced propor-
tionally. 
‘‘(2) FUNDING IN EXCESS OF FISCAL YEAR 2006 
LEVEL OF ACTIVITIES.— 
‘‘(A) UP TO $35,000,000.—The amount of 
funds remaining after the application of para-
graph (1), but not to exceed $35,000,000, shall 
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be divided so that 75 percent shall be provided 
to State grantees and 25 percent shall be pro-
vided to grantees that operate under this title 
under national grants from the Secretary. 
‘‘(B) OVER
$35,000,000.—The amount of 
funds remaining (if any) after the application of 
subparagraph (A) shall be divided so that 50 
percent shall be provided to State grantees and 
50 percent shall be provided to grantees that 
operate under this title under national grants 
from the Secretary. 
‘‘(d) ALLOTMENTS FOR NATIONAL GRANTS.—From 
funds available under subsection (c) for national grants, 
the Secretary shall allot for public and nonprofit private 
agency and organization grantees that operate under this 
title under national grants from the Secretary in each 
State, an amount that bears the same ratio to such funds 
as the product of the number of individuals 55 years of 
age or older in the State and the allotment percentage of 
such State bears to the sum of the corresponding products 
for all States, except as follows: 
‘‘(1) MINIMUM ALLOTMENT.—No State shall be 
provided an amount under this subsection that is 
less than 1⁄2 of 1 percent of the amount provided 
under subsection (c) for public and nonprofit private 
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agency and organization grantees that operate under 
this title under national grants from the Secretary 
in all of the States. 
‘‘(2) HOLD
HARMLESS.—If the amount pro-
vided under subsection (c) is— 
‘‘(A) equal to or less than the amount nec-
essary to maintain the fiscal year 2006 level of 
activities, allotments for grantees that operate 
under this title under national grants from the 
Secretary in each State shall be proportional to 
their fiscal year 2006 level of activities; or 
‘‘(B) greater than the amount necessary to 
maintain the fiscal year 2006 level of activities, 
no State shall be provided a percentage increase 
above the fiscal year 2006 level of activities for 
grantees that operate under this title under na-
tional grants from the Secretary in the State 
that is less than 30 percent of such percentage 
increase above the fiscal year 2006 level of ac-
tivities for public and nonprofit private agency 
and organization grantees that operate under 
this title under national grants from the Sec-
retary in all of the States. 
‘‘(3) REDUCTION.—Allotments for States not 
affected by paragraphs (1) and (2)(B) of this sub-
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