‘‘(A) before the end of the grant year, the 
State submits to the Secretary a written appli-
cation for a waiver of the cancellation, which 
application includes a description of the pur-
poses for which the State intends to expend the 
funds involved; and 
‘‘(B) the Secretary approves the waiver. 
‘‘(2) EXPENDITURE
BY
END
OF
CARRYOVER 
YEAR.—With respect to a waiver under paragraph 
(1) that is approved for a balance that is unobli-
gated as of the end of a grant year for an award: 
‘‘(A) The unobligated funds are available 
for expenditure by the State involved for the 
one-year period beginning upon the expiration 
of the grant year (referred to in this section as 
the ‘carryover year’). 
‘‘(B) If the funds are not expended by the 
end of the carryover year, the Secretary shall 
cancel that unexpended balance of the award, 
and shall require the State to return any 
amounts from such balance that have been dis-
bursed to the State. 
‘‘(3) USE OF CANCELLED BALANCES.—In the 
case of any balance of a grant award that is can-
celled under paragraph (1) or (2)(B), the grant
funds involved shall be made available by the Sec-
retary as additional amounts for grants under sec-
tion 2620 for the first fiscal year beginning after the 
fiscal year in which the Secretary obtains the infor-
mation necessary for determining that the balance is 
required under such paragraph to be canceled, ex-
cept that the availability of the funds for such 
grants is subject to section 2618(a)(2)(H) as applied 
for such year. 
‘‘(4) CORRESPONDING REDUCTION IN FUTURE 
GRANT.—
‘‘(A) IN GENERAL.—In the case of a State 
for which a balance from a grant award made 
pursuant 
to 
section 
2618(a)(1) 
or 
2618(a)(2)(G)(i) is unobligated as of the end of 
the grant year for the award—
‘‘(i) the Secretary shall reduce, by the 
same amount as such unobligated balance, 
the amount of the grant under such sec-
tion for the first fiscal year beginning after 
the fiscal year in which the Secretary ob-
tains the information necessary for deter-
mining that such balance was unobligated 
as of the end of the grant year (which re-
quirement for a reduction applies without
regard to whether a waiver under para-
graph (1) has been approved with respect 
to such balance); and 
‘‘(ii) the grant funds involved in such 
reduction shall be made available by the 
Secretary as additional funds for grants 
under section 2620 for such first fiscal 
year, subject to section 2618(a)(2)(H); 
except that this subparagraph does not apply to 
the State if the amount of the unobligated bal-
ance was 2 percent or less. 
‘‘(B) 
RELATION
TO
INCREASES
IN 
GRANT.—A reduction under subparagraph (A) 
for a State for a fiscal year may not be taken 
into account in applying section 2618(a)(2)(H) 
with respect to the State for the subsequent fis-
cal year. 
‘‘(d) TREATMENT
OF DRUG REBATES.—For pur-
poses of this section, funds that are drug rebates referred 
to in section 2616(g) may not be considered part of any 
grant award referred to in subsection (a).’’. 
SEC. 208. AUTHORIZATION OF APPROPRIATIONS FOR SUB-
PART I OF PART B. 
Subpart I of part B of title XXVI of the Public 
Health Service Act (42 U.S.C. 300ff-21 et seq.), as
amended by section 207, is further amended by adding 
at the end the following: 
‘‘SEC. 2623. AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) IN GENERAL.—For the purpose of carrying out 
this subpart, there are authorized to be appropriated 
$1,195,500,000 for fiscal year 2007, $1,239,500,000 for 
fiscal year 2008, $1,285,200,000 for fiscal year 2009, 
$1,332,600,000 for fiscal year 2010, and $1,381,700,000 
for fiscal year 2011. Amounts appropriated under the pre-
ceding sentence for a fiscal year are available for obliga-
tion by the Secretary until the end of the second suc-
ceeding fiscal year. 
‘‘(b) RESERVATION OF AMOUNTS.—
‘‘(1) EMERGING COMMUNITIES.—Of the amount 
appropriated under subsection (a) for a fiscal year, 
the Secretary shall reserve $5,000,000 for grants 
under section 2621. 
‘‘(2) SUPPLEMENTAL GRANTS.—
‘‘(A) IN GENERAL.—Of the amount appro-
priated under subsection (a) for a fiscal year in 
excess of the 2006 adjusted amount, the Sec-
retary shall reserve 1⁄3 for grants under section 
2620, except that the availability of the re-
served funds for such grants is subject to sec-
tion 2618(a)(2)(H) as applied for such year,
and except that any amount appropriated exclu-
sively for carrying out section 2616 (and, ac-
cordingly, 
distributed 
under 
section 
2618(a)(2)(G)) is not subject to this subpara-
graph. 
‘‘(B) 2006 ADJUSTED AMOUNT.—For pur-
poses of subparagraph (A), the term ‘2006 ad-
justed amount’ means the amount appropriated 
for fiscal year 2006 under section 2677(b) (as 
such section was in effect for such fiscal year), 
excluding any amount appropriated for such 
year exclusively for carrying out section 2616 
(and, accordingly, distributed under section 
2618(a)(2)(I), as so in effect).’’. 
SEC. 209. EARLY DIAGNOSIS GRANT PROGRAM. 
Section 2625 of the Public Health Service Act (42 
U.S.C. 300ff-33) is amended to read as follows: 
‘‘SEC. 2625. EARLY DIAGNOSIS GRANT PROGRAM. 
‘‘(a) IN GENERAL.—In the case of States whose laws 
or regulations are in accordance with subsection (b), the 
Secretary, acting through the Centers for Disease Control 
and Prevention, shall make grants to such States for the 
purposes described in subsection (c). 
‘‘(b) DESCRIPTION
OF COMPLIANT STATES.—For 
purposes of subsection (a), the laws or regulations of a