‘‘(H) Postal and shipping. 
‘‘(I) Public health and health care. 
‘‘(J) Information technology. 
‘‘(K) Telecommunications. 
‘‘(L) Transportation systems. 
‘‘(M) Water. 
‘‘(N) Dams. 
‘‘(O) Commercial facilities. 
‘‘(P) National monuments and icons. 
‘‘(3) CONSIDERATION
OF
ADDITIONAL
FAC-
TORS.—The Secretary shall take into account any 
other specific threat to a population (including a 
transient commuting or tourist population) or crit-
ical infrastructure sector that the Secretary has de-
termined to exist. In evaluating the threat to a pop-
ulation or critical infrastructure sector, the Board 
shall give greater weight to threats of terrorism 
based upon their specificity and credibility, including 
any pattern of repetition. 
‘‘(4) MINIMUM
AMOUNTS.—After evaluating 
and prioritizing State grant applications under para-
graph (1), the Secretary shall ensure that, for each 
fiscal year— 
‘‘(A) except as provided in subparagraph 
(B), each State, other than the Virgin Islands, 
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American Samoa, Guam, and the Northern 
Mariana Islands, that has an approved State 
emergency preparedness plan receives not less 
than 0.25 percent of the total amount of funds 
available for covered grants for that fiscal year 
to be used to implement the homeland security 
plan of that State in accordance with the 
prioritization 
of 
needs 
under 
section 
1804(a)(4); 
‘‘(B) each State, other than the Virgin Is-
lands, American Samoa, Guam, and the North-
ern Mariana Islands, that has an approved 
State emergency preparedness plan and that 
meets an additional high-risk qualifying cri-
terion under paragraph (6) receives not less 
than 0.45 percent of the total amount of funds 
available for covered grants for that fiscal year 
to be used to implement the homeland security 
plan of that State in accordance with the 
prioritization 
of 
needs 
under 
section 
1804(a)(4); 
‘‘(C) each of the Virgin Islands, American 
Samoa, Guam, and the Northern Mariana Is-
lands receives not less than 0.08 percent of the 
total amount of the funds available for covered 
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grants for that fiscal year to be used to imple-
ment an approved homeland security plan in ac-
cordance with the prioritization of needs under 
section 1804(a)(4); and 
‘‘(D) directly eligible tribes collectively re-
ceive not less than 0.08 percent of the total 
amount of funds available for covered grants 
for that fiscal year to be used to address the 
needs identified in the applications of such 
tribes, consistent with the homeland security 
plan of each State within the boundaries of 
which any part of the tribal land of any such 
tribe is located, except that this clause shall not 
apply with respect to funds available for a fiscal 
year if the Secretary receives less than 5 appli-
cations for such fiscal year from such tribes 
under section 1803(c)(5) or does not approve at 
least one such application. 
‘‘(5) ADDITIONAL HIGH-RISK QUALIFYING CRI-
TERIA.—For purposes of paragraph (5)(B), an addi-
tional high-risk qualifying criterion is either of the 
following: 
‘‘(A) Having a significant international 
land border. 
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‘‘(B) Adjoining a body of water within 
North America through which an international 
boundary line extends. 
‘‘(b) EFFECT OF REGIONAL AWARDS ON STATE MIN-
IMUM.—Any regional award, or portion thereof, provided 
to a State under section 1803(c)(4)(C) shall not be consid-
ered in calculating the minimum State award under sub-
section (a)(5). 
‘‘SEC. 1806. PROHIBITED USES OF COVERED GRANT FUNDS 
AND ACCOUNTABILITY REQUIREMENTS. 
‘‘(a) PROHIBITED USES.—A covered 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. 
‘‘(b) 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 enhances emergency response provider preparedness 
for emergencies and disasters unrelated to acts of ter-
rorism, if such use assists such governments in achieving 
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essential capabilities for terrorism preparedness estab-
lished by the Secretary. 
‘‘(c) REIMBURSEMENT OF COSTS.— 
‘‘(1) STIPENDS FOR VOLUNTEER TRAINING.—A 
covered grant may be used to provide a reasonable 
stipend to paid-on-call or volunteer emergency re-
sponse providers who are not otherwise compensated 
for travel to or participation in training covered by 
this section. Any such reimbursement shall not be 
considered compensation for purposes of rendering 
such a emergency response provider an employee 
under the Fair Labor Standards Act of 1938 (29 
U.S.C. 201 et seq.). 
‘‘(2) PERFORMANCE OF FEDERAL DUTIES.—An 
applicant for a covered grant may petition the Sec-
retary for the reimbursement of the cost of any ac-
tivity relating to prevention (including detection) of, 
preparedness for, response to, or recovery from acts 
of terrorism that is a Federal duty that is usually 
performed by a Federal agency and that is being 
performed by a State or local government under an 
agreement with a Federal agency. 
‘‘(d) ASSISTANCE REQUIREMENT.—The Secretary 
may not require that equipment paid for, wholly or in part, 
with funds provided through a covered grant be made 
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available by the grant recipient to another State, region, 
or locality for the purpose of responding to an emergency 
in that State, region, or locality, unless the Secretary pays 
the costs directly attributable to transporting and oper-
ating such equipment during such response. 
‘‘(e) FLEXIBILITY IN UNSPENT HOMELAND SECU-
RITY GRANT FUNDS.—Upon request by the recipient of 
a covered grant, the Secretary may authorize that recipi-
ent to use grant funds for purposes authorized under this 
section that are not specified in the recipient’s grant 
agreement, if the Secretary determines that the use of 
grant funds for such purposes is in the interest of home-
land security. 
‘‘(f) STATE, REGIONAL, AND TRIBAL RESPONSIBIL-
ITIES.— 
‘‘(1) 
AVAILABILITY
OF
FUNDS
AND
RE-
SOURCES.—By not later than the end of the 45-day 
period beginning on the date a recipient of a covered 
grant that is a State receives covered grant funds, 
the Secretary shall require such recipient to obligate 
or otherwise make available to local governments, 
emergency response providers, and other local 
groups, to the extent required under the State emer-
gency preparedness plan or plans specified in the ap-
plication for the grant— 
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‘‘(A) not less than 80 percent of the 
amount of the grant; and 
‘‘(B) resources purchased with the grant 
funds having a value equal to at least 80 per-
cent of the amount of the grant. 
‘‘(2) COST SHARING.— 
‘‘(A) COST SHARING REQUIREMENT.—The 
Federal share of the costs of any activity car-
ried out using a covered grant made to a State, 
region, or directly eligible tribe that is awarded 
after the date that is two years after the date 
of the enactment of this section shall not exceed 
75 percent. 
‘‘(B) TRANSITION
RULE.—The Federal 
share of the costs of an activity carried out with 
a covered grant awarded during the period be-
ginning on the date of the enactment of this 
section and ending on the date that is two years 
after the date of the enactment of this section 
shall be 100 percent. 
‘‘(C) IN-KIND MATCHING.—Each recipient 
of a covered grant may meet the cost sharing 
requirement under subparagraph (A) by making 
in-kind contributions of goods or services that 
are directly linked with the purpose for which 
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the grant is made, including any necessary per-
sonnel overtime, contractor services, administra-
tive costs, equipment fuel and maintenance, and 
rental space. 
‘‘(3) CERTIFICATIONS
REGARDING
DISTRIBU-
TION OF GRANT FUNDS TO LOCAL GOVERNMENTS.— 
Any State that receives a covered grant shall certify 
to the Secretary, by not later than 30 days after the 
expiration of the period described in paragraph (1) 
with respect to the grant, that the State has made 
available for expenditure by local governments, 
emergency response providers, and other local 
groups the required amount of grant funds pursuant 
to paragraph (1). 
‘‘(4) QUARTERLY REPORT ON HOMELAND SECU-
RITY SPENDING.—The Federal share described in 
paragraph (2)(a) may be increased by up to 2 per-
cent for any State, region, or directly eligible tribe 
that, not later than 30 days after the end of each 
fiscal quarter, submits to the Secretary a report on 
the expenditures of the recipient using covered grant 
funds during that fiscal quarter. Each such report 
must include, for each recipient of a covered grant 
and each local government, emergency response pro-
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vider, or other local group to which covered grant 
funds are made available under paragraph (1)— 
‘‘(A) the amount obligated to that recipient 
in that quarter; 
‘‘(B) the amount expended by that recipi-
ent in that quarter; and 
‘‘(C) a summary description of the items 
purchased by the recipient, local government, 
emergency response provider, or other local 
group using such amount. 
‘‘(5) ANNUAL REPORTS ON HOMELAND SECU-
RITY SPENDING.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
require each recipient of a covered grant to sub-
mit an annual report to the Secretary not later 
than 60 days after the end of each fiscal year. 
‘‘(B) REGIONS.—The Secretary shall re-
quire each such recipient that is a region to 
submit the annual report required under sub-
paragraph (A) to each State of which any part 
is included in the region at the same time that 
the recipient submits such report to the Sec-
retary under such subparagraph. 
‘‘(C) DIRECTLY
ELIGIBLE
TRIBES.—The 
Secretary shall require each recipient of a cov-
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ered grant that is a directly eligible tribe to 
submit the annual report required under sub-
paragraph (A) to each State within the bound-
aries of which any part of such tribe tribal land 
is located at the same time that the recipient 
submits such report to the Secretary under 
such subparagraph. 
‘‘(D) CONTENTS OF REPORTS.—Each re-
port submitted under this paragraph shall in-
clude each of the following: 
‘‘(i) The amount, ultimate recipients, 
and dates of receipt of all grant funds dur-
ing the preceding fiscal year. 
‘‘(ii) The amount and the dates of dis-
bursements of all such funds expended in 
compliance with paragraph (1) or pursuant 
to mutual aid agreements or other sharing 
arrangements that apply within the State, 
region, or directly eligible tribe, as applica-
ble, during the preceding fiscal year. 
‘‘(iii) How the funds were utilized by 
each ultimate recipient or beneficiary dur-
ing the preceding fiscal year. 
‘‘(iv) The extent to which essential ca-
pabilities identified in the applicable State 
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emergency preparedness plan or plans were 
achieved, maintained, or enhanced as the 
result of the expenditure of grant funds 
during the preceding fiscal year. 
‘‘(v) The extent to which essential ca-
pabilities identified in the applicable State 
emergency preparedness plan or plans re-
main unmet. 
‘‘(6) INCLUSION OF RESTRICTED ANNEXES.—A 
recipient of a covered grant may submit to the Sec-
retary an annex to the annual report under para-
graph (5) that is subject to appropriate handling re-
strictions, if the recipient believes that discussion in 
the report of unmet needs would reveal sensitive but 
unclassified information. 
‘‘(7) PROVISION OF REPORTS TO APPROPRIATE 
DEPARTMENT OFFICIALS.—The Secretary shall en-
sure that each annual report under paragraph (5) is 
provided to the Under Secretary for Emergency Pre-
paredness and Response and the Director of the Of-
fice for Domestic Preparedness. 
‘‘(g) INCENTIVES FOR EFFICIENT ADMINISTRATION 
OF HOMELAND SECURITY GRANTS.— 
‘‘(1) PENALTIES
FOR
DELAY
IN
PASSING 
THROUGH LOCAL SHARE.—If a recipient of a cov-
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ered grant that is a State fails to distribute funds 
to local governments, emergency response providers, 
and other local groups, as required under subsection 
(f)(1), during the period specified under that sub-
section, the Secretary may— 
‘‘(A) reduce the amount of the grant by 
the amount required to be distributed under 
subsection (f)(1); 
‘‘(B) terminate the award of grant funds 
to the recipient and transfer the amount re-
quired to be distributed under subsection (f)(1) 
directly to the local emergency response pro-
viders local governments, and other local groups 
that were intended to receive funding under 
that grant; or 
‘‘(C) impose additional restrictions or bur-
dens on the recipient’s use of funds under the 
grant, which may include— 
‘‘(i) prohibiting use of such funds to 
pay the grant recipient’s grant-related 
overtime or other expenses; 
‘‘(ii) requiring the grant recipient to 
distribute to local government beneficiaries 
all or a portion of grant funds that are not 
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required to be distributed under subsection 
(f)(1); or 
‘‘(iii) for each day that the grant re-
cipient fails to distribute funds or re-
sources in accordance with subsection 
(f)(1), reducing grant payments to the 
grant recipient from the portion of grant 
funds that is not required to be distributed 
under that subsection, except that the total 
amount of such reduction may not exceed 
20 percent of the total amount of the 
grant. 
‘‘(2) EXTENSION OF PERIOD.—The Governor of 
a State may request in writing that the Secretary 
extend 
the 
45-day 
period 
under 
section 
1803(c)(4)(C)(ii) or subsection (f)(1) for an addi-
tional 15-day period. The Secretary may approve 
such a request, and may extend such period for one 
or more additional 15-day periods, if the Secretary 
determines that the resulting delay will not have a 
significant detrimental impact on terrorism pre-
paredness efforts. 
‘‘(3) PROVISION
OF
NONLOCAL
SHARE
TO 
LOCAL GOVERNMENT.— 
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‘‘(A) IN
GENERAL.—The Secretary may 
pay to a local government, emergency response 
provider, or other local group for which funds 
are required to be obligated or made available 
under subsection (f)(1), at the request of such 
government, provider, or group, a portion of the 
amount of a covered grant awarded to a State 
that is required to obligate or make available 
such funds, if— 
‘‘(i) the local government, emergency 
response provider, or other local group cer-
tifies to the Secretary that it will use the 
amount paid to expedite planned enhance-
ments to the emergency preparedness of 
the government, provider, or group, as de-
scribed in any applicable State emergency 
preparedness plan or plans; 
‘‘(ii) the State has failed to distribute 
funds or resources in accordance with sub-
section (f)(1); and 
‘‘(iii) the local government, emergency 
response provider, or other local group 
complies with subparagraphs (B) and (C). 
‘‘(B) SHOWING
REQUIRED.—Before dis-
tributing funds to a local government, emer-
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gency response provider, or other local group 
under this paragraph, the Secretary shall re-
quire the local government, provider, or group 
to demonstrate that— 
‘‘(i) the local government, emergency 
response provider, or other local group is 
identified explicitly as an ultimate recipient 
or intended beneficiary in the approved 
grant application of the State that has 
failed to distribute funds to such local gov-
ernment, provider, or group; 
‘‘(ii) that State included as part of the 
application for the grant submitted by the 
State a statement that the local govern-
ment, emergency response provider, or 
other local group was intended to receive a 
severable portion of the overall grant for a 
specific purpose that is identified in the 
grant application; 
‘‘(iii) the local government, emergency 
response provider, or other local group pe-
titioned that State for the funds or re-
sources after the expiration of the period 
during which the funds or resources were 
required to be distributed to the local gov-
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ernment, provider, or group under sub-
section (f)(1); and 
‘‘(iv) the local government, emergency 
response provider, or other local group did 
not receive the portion of the grant made 
to that State that was designated in the 
State grant application as being for the 
use or benefit of that local government, 
emergency response provider, or other local 
group. 
‘‘(C) EFFECT OF PAYMENT.—Payment of 
grant funds to a local government, emergency 
response provider, or other local group under 
this paragraph— 
‘‘(i) shall not affect any payment to 
another local government, emergency re-
sponse provider, or other local group under 
this paragraph; and 
‘‘(ii) shall not prejudice consideration 
of a request for payment under this para-
graph that is submitted by another local 
government, emergency response provider, 
or other local group. 
‘‘(D) DEADLINE
FOR
ACTION
BY
SEC-
RETARY.—The Secretary shall approve or dis-
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approve each request for payment under this 
paragraph by not later than 15 days after the 
date the request is received by the Department. 
‘‘(h) REPORTS TO CONGRESS.—Not later than Janu-
ary 31 of each year, the Secretary shall submit to Con-
gress a report on homeland security grants during the pre-
ceding fiscal year. Each such report shall contain, with 
respect to such fiscal year— 
‘‘(1) a detailed description of the amount of 
Federal funds provided as covered grants that were 
awarded to each State, region, and directly eligible 
tribe; 
‘‘(2) information on the use of such grant funds 
by grantees; and 
‘‘(3) a description of the national progress 
made in achieving, maintaining, and enhancing the 
essential capabilities established by the Secretary as 
a result of the expenditure of covered grant funds; 
and 
‘‘(4) an estimate of the amount of funds re-
quired to fulfill such capabilities nationwide. 
‘‘SEC. 1807. EMERGENCY MANAGEMENT PERFORMANCE 
GRANTS PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish the Emergency Management Performance Grants 
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Program. Under the program, the Secretary shall make 
grants to States for emergency management performance 
in accordance with this section. 
‘‘(b) USE OF FUNDS.—A recipient of a grant under 
this section shall use the grant for emergency prepared-
ness, planning, training and administration through fund-
ing costs of— 
‘‘(1) training sessions to ensure accurate com-
pletion of the needs assessment; 
‘‘(2) hiring of full or part-time staff, contrac-
tors, or consultants to assist with the collection of 
the needs assessment data and updating of the State 
strategic plan; 
‘‘(3) travel expenses; 
‘‘(4) meeting-related expenses; 
‘‘(5) implementing and managing programs for 
equipment acquisition, training and exercises; 
‘‘(6) conducting local or regional strategy imple-
mentation meetings; 
‘‘(7) hiring of full or part-time staff, contrac-
tors, or consultants to assist with the implementa-
tion and administration of a State homeland security 
strategic plan; or 
‘‘(8) the acquisition of authorized office equip-
ment. 
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‘‘(c) TECHNICAL ASSISTANCE FOR DEVELOPMENT 
OF PLANS AND PROGRAMS.— 
‘‘(1) PROVISION OF TECHNICAL ASSISTANCE.— 
The Secretary, acting through a regional representa-
tive of the Department, shall provide technical as-
sistance— 
‘‘(A) to States for the purpose of devel-
oping comprehensive plans and practicable pro-
grams for preparation against all-hazards disas-
ters, including hazard reduction, avoidance, and 
mitigation; 
‘‘(B) to individuals, businesses, and State, 
tribal, and local governments to which a State 
has provided grant funds in accordance with 
section 1805 for preparation and response fol-
lowing such disasters; and 
‘‘(C) to such State and local governments 
to plan for recovery of damaged or destroyed 
public and private facilities. 
‘‘(2) ADVISORY
GROUP.—Each regional rep-
resentative of the Department shall bring together a 
group of high level officials, representing multiple 
disciplines from the State, regional, and local levels 
to— 
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‘‘(A) establish expectations and priorities 
for exercise activities; 
‘‘(B) discuss how the State will implement 
its emergency preparedness plan; and 
‘‘(C) define how corrective actions flowing 
from exercises will be addressed and tracked. 
‘‘(d) GRANTS PROGRAM
FOR DEVELOPMENT
OF 
EMERGENCY PREPAREDNESS PLANS AND PROGRAMS.— 
‘‘(1) AUTHORITY.—Upon application by a State 
(including, for purposes of this subsection, an au-
thority created by an interstate compact), the Sec-
retary may make a grant to the State to be used for 
the development of a State emergency preparedness 
plan, program, or capability for disaster prepared-
ness and prevention under section 1804. 
‘‘(2) AMOUNT OF GRANT.—A grant under this 
subsection for a fiscal year shall be in an amount 
not less than 0.25 percent of the total amount of all 
grants awarded under the Emergency Management 
Performance Grants Program for that fiscal year. 
‘‘(3) ELIGIBILITY.—To be eligible for a grant 
under this section, a State shall certify to the Sec-
retary that the State has designated or created an 
agency to plan and administer a State emergency 
preparedness plan. 
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‘‘(4) AWARD OF GRANTS.—The Secretary may 
make a grant to a State for necessary and essential 
State and local emergency management personnel 
and administrative expenses associated with the de-
velopment of the State emergency preparedness 
plan. 
‘‘(e) GRANTS
FOR IMPROVEMENT, MAINTENANCE, 
AND UPDATING OF STATE PLANS.—The Secretary may 
make grants to States for improving, maintaining, and up-
dating State emergency preparedness plans under section 
1804. In addition to the allowable uses of funds under 
subsection (b), a State may use such a grant for the pur-
pose of evaluating natural hazards and developing the pro-
grams and actions required to mitigate such hazards. 
‘‘(f) UTILIZATION OF SERVICES OF OTHER AGEN-
CIES.—In carrying out the program under this section, the 
Secretary shall utilize the services of all appropriate Fed-
eral agencies, including the following services: 
‘‘(1) The preparation of disaster preparedness 
plans for mitigation, warning, emergency operations, 
evacuation, temporary housing, medical treatment 
and quarantine, rehabilitation, and recovery. 
‘‘(2) Training and exercises. 
‘‘(3) Post-disaster critiques and evaluations. 
‘‘(4) The annual review of programs. 
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‘‘(5) The coordination of Federal, State, and 
local preparedness programs. 
‘‘(6) The application of science and technology. 
‘‘(7) Research. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to carry out this section— 
‘‘(1) $700,000,000 for each fiscal years 2007 
through 2009; and 
‘‘(2) such sums as may be necessary for each 
subsequent fiscal year. 
‘‘(h) PRIORITIZATION OF GRANTS.—In addition to 
the requirements under 1805(a), in prioritizing grants to 
States under this section, the Secretary shall take into 
consideration— 
‘‘(1) the criticality of the areas in each State 
that may be affected by all-hazards disasters with 
respect to the development of the total emergency 
preparedness readiness of the Nation; 
‘‘(2) the relative state of development of emer-
gency preparedness readiness of each State; 
‘‘(3) the population of each State; and 
‘‘(4) such other factors as the Secretary shall 
prescribe. 
‘‘(i) REALLOCATION.—If the recipient of a grant 
under this Section does not expend the full amount of the 
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grant before the last day of the fiscal year for which the 
grant is made, and such recipient does not apply to the 
Secretary for an extension under section 1806(g)(2) or 
otherwise receive permission from the Secretary to retain 
the grant funds after the last day of that fiscal year, such 
recipient shall reimburse the Secretary for the amount of 
the unused grant funds. 
‘‘(j) RESTRICTION ON USE OF FUNDS.—Except as 
provided in section 1806(e), grant funds awarded under 
this section may only be expended for a purpose described 
in this section. 
‘‘(k) SUBMISSION OF PLAN.—If a State fails to sub-
mit a plan under section 1804 within 90 days of the avail-
ability of funds, the Secretary may reallocate the grant 
funds allocated to that State, or any portion of such funds, 
among the other States that received grants for that fiscal 
year in such amounts as the Secretary determines best 
assure the adequate development of the emergency pre-
paredness capability of the Nation. 
‘‘SEC. 1808. STATE HOMELAND SECURITY GRANT PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish the State Homeland Security Grant Program to make 
grants to States to fund State homeland security material 
expenses related to all-hazards disaster response and re-
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covery efforts as described in Federally approved State 
emergency preparedness plans under section 1804. 
‘‘(b) STATE ALLOCATION OF FUNDS.—A State that 
receives a grant under this section, shall allocate grant 
funds in accordance with the approved emergency pre-
paredness plan of that State and obligate such funds to 
municipalities local governments, emergency response pro-
viders, and other local groups in accordance with this sec-
tion and section 1805 not later than 45 days after the 
date on which the State receives the grant. 
‘‘(c) USE OF EQUIPMENT ACQUISITION FUNDS.—A 
recipient of a grant under the State Homeland Security 
Grant Program shall use the grant to enhance the capa-
bilities of State and local emergency response providers 
through the acquisition of— 
‘‘(1) personal protective equipment; 
‘‘(2) explosive device mitigation and remedi-
ation equipment; 
‘‘(3) chemical, biological, radiological, nuclear 
and explosive search and rescue equipment, incident 
response vehicles, logistical support, and reference 
materials; 
‘‘(4) interoperable communications equipment; 
‘‘(5) detection equipment; 
‘‘(6) decontamination equipment; 
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