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of the local area for the preceding fiscal
year.
‘‘(ii) MAXIMUM PERCENTAGE.—Subject
to clause (i), the Governor shall ensure that
no local area shall receive an allocation per-
centage under this paragraph for a fiscal
year that is more than 130 percent of the
allocation percentage of the local area for
the preceding fiscal year.
‘‘(C) DEFINITIONS.—In this paragraph:
‘‘(i) ALLOCATION
PERCENTAGE.—The
term ‘allocation percentage’, used with re-
spect to fiscal year 2006 or a subsequent fis-
cal year, means a percentage of the portion
described in paragraph (1)(A) that is re-
ceived by the local area involved through an
allocation made under this paragraph for
the fiscal year. The term, used with respect
to fiscal year 2005, means the percentage of
the amounts allocated to local areas under
this chapter (as in effect on the day before
the date of enactment of the Workforce In-
vestment Act Amendments of 2005) that is
received by the local area involved for fiscal
year 2005.
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‘‘(ii) DISADVANTAGED
YOUTH.—The
term ‘disadvantaged youth’ means an indi-
vidual who—
‘‘(I) is age 16 through 21;
‘‘(II) is not a college student or
member of the Armed Forces; and
‘‘(III) received an income, or is a
member of a family that received a
total family income, that, in relation
to family size, does not exceed the high-
er of—
‘‘(aa) the poverty line; or
‘‘(bb) 70 percent of the lower
living standard income level.
‘‘(3) YOUTH DISCRETIONARY ALLOCATION.—The
Governor may allocate the portion described in para-
graph (1)(B) to local areas where there are a signifi-
cant number of eligible youth, after consultation with
the State board and local boards.
‘‘(4) LOCAL ADMINISTRATIVE COST LIMIT.—
‘‘(A) IN
GENERAL.—Of the amount allo-
cated to a local area under this subsection and
section 133(b) for a fiscal year, not more than 10
percent of the amount may be used by the local
board involved for the administrative costs of
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carrying out local workforce investment activities
under this chapter or chapter 5.
‘‘(B) USE OF FUNDS.—Funds made avail-
able for administrative costs under subparagraph
(A) may be used for the administrative costs of
any of the local workforce investment activities
described in this chapter or chapter 5, regardless
of whether the funds were allocated under this
subsection or section 133(b).’’.
(3) REALLOCATION.—
(A) 
AMENDMENT.—Section 
128(c) 
(29
U.S.C. 2853(c)) is amended—
(i) in paragraph (1), by striking
‘‘paragraph (2)(A) or (3) of’’;
(ii) by striking paragraph (2) and in-
serting the following:
‘‘(2) AMOUNT.—The amount available for re-
allocation for a program year is equal to the amount
by which the unexpended balance at the end of the
program year prior to the program year for which the
determination is made exceeds 30 percent of the total
amount of funds available to the local area under this
section during such prior program year (including
amounts allocated to the local area in all prior pro-
gram years that remained available). For purposes of
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this paragraph, the unexpended balance is the
amount that is the difference between—
‘‘(A) the total amount of funds available to
the local area under this section during the pro-
gram year prior to the program year for which
the determination is made (including amounts
allocated to the local area in all prior program
years that remained available); and
‘‘(B) the accrued expenditures during such
prior program year.’’;
(iii) by amending paragraph (3)—
(I) by striking ‘‘subsection (b)(3)’’
each place it appears and inserting
‘‘subsection (b)’’;
(II) by striking ‘‘for the prior
program year’’ the first place it ap-
pears and inserting ‘‘for the program
year for which the determination is
made’’;
(III) by striking ‘‘such prior pro-
gram year’’ and inserting ‘‘such pro-
gram year’’; and
(IV) by striking the last sentence;
and
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(iv) by striking paragraph (4) and in-
serting the following:
‘‘(4) ELIGIBILITY.—For purposes of this sub-
section, an eligible local area means a local area that
does not have an amount available for reallocation
under paragraph (2) for the program year for which
the determination under paragraph (2) is made.’’.
(B) EFFECTIVE
DATE.—The amendments
made by subparagraph (A) shall take effect for
the later of—
(i) the program year that begins after
the date of enactment of this Act; or
(ii) program year 2006.
(d) 
YOUTH
PARTICIPANT
ELIGIBILITY.—Section
129(a) (29 U.S.C. 2854(a)) is amended to read as follows:
‘‘(a) YOUTH PARTICIPANT ELIGIBILITY.—
‘‘(1) ELIGIBILITY.—
‘‘(A) IN GENERAL.—To be eligible to par-
ticipate in activities carried out under this chap-
ter during any program year an individual
shall, at the time the eligibility determination is
made, be an out-of-school youth or an in-school
youth.