(v) provides accessible resources to 
support job attainment and retention. 
(C) The total projected cost to carry out 
the RECOMPETE plan. 
(D) The total amount of the RECOM-
PETE grant requested, and the justification for 
that amount. 
(E) The roles and responsibilities of each 
recipient and subrecipient carrying out an activ-
ity under the RECOMPETE plan. 
(F) The proposed allocation by the recipi-
ent to subrecipients of any RECOMPETE 
grant amounts. 
(G) An identification of certain benchmark 
criteria for use in benchmark evaluations under 
section 5(a), including reducing the prime-age 
employment gap of the applicable area by cer-
tain percentages at periodic intervals, with the 
goals of— 
(i) reducing the prime-age employ-
ment gap by not less than 50 percent on 
completion of the term of the RECOM-
PETE grant provided to the recipient; and 
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(ii) achieving compliance with such 
other criteria as the Secretary may estab-
lish. 
(3) OPTIONAL INCLUSIONS.—A RECOMPETE 
plan may include strategies— 
(A) to address inequality in the applicable 
area, such as inequality with respect to income, 
opportunity, or employment on the basis of 
race, gender, religion, or sexual orientation; 
(B) to support business development and 
entrepreneurship; and 
(C) to support innovation and businesses, 
job creation, and workforce development in in-
dustries expected to continue or increase in 
force in the applicable area. 
(4) CONSENT
OF
PARTIES
TO
COOPERATION 
AGREEMENT.—If an applicable area is subject to a 
cooperation agreement under section 3(b), the RE-
COMPETE plan for the applicable area shall be— 
(A) developed in accordance with that co-
operation agreement; and 
(B) consented to by each applicant that is 
a party to the cooperation agreement. 
(5) INTEGRATION WITH COMPREHENSIVE ECO-
NOMIC DEVELOPMENT STRATEGY.—If an applicable 
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area is subject to a comprehensive economic develop-
ment strategy approved by the Secretary under sec-
tion 302 of the Public Works and Economic Devel-
opment Act of 1965 (42 U.S.C. 3162), the RECOM-
PETE plan for the applicable area— 
(A) shall be integrated with that strategy, 
to the maximum extent practicable; and 
(B) may be developed and included as a 
supplemental portion of that strategy, rather 
than as an independent plan. 
(6) APPROVAL BY SECRETARY.—The Secretary 
shall approve a RECOMPETE plan that the Sec-
retary determines meets the applicable requirements 
of this subsection. 
(c) PLANNING AND TECHNICAL ASSISTANCE.— 
(1) PLANNING ASSISTANCE.— 
(A) IN GENERAL.—For purposes of assist-
ing a recipient in developing a RECOMPETE 
plan, the Secretary may make an advance pay-
ment of a RECOMPETE grant in accordance 
with subparagraph (B), if the Secretary deter-
mines that— 
(i) the recipient requires such an ad-
vance; and 
(ii) the advance will be used— 
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(I) effectively; and 
(II) for planning purposes. 
(B) MAXIMUM AMOUNT.—The amount of 
an advance payment under subparagraph (A) 
shall be equal to not more than the lesser of— 
(i) an amount equal to 5 percent of 
the 
maximum 
RECOMPETE 
grant 
amount to be provided to the applicable re-
cipient; and 
(ii) $300,000. 
(C) NO COST SHARE.—An advance pay-
ment made under this paragraph shall not be 
subject to any cost-sharing requirement. 
(2) TECHNICAL
ASSISTANCE.—The Secretary 
shall provide technical assistance, if necessary, in 
each applicable area relating to— 
(A) the development of a RECOMPETE 
plan that meets the applicable requirements of 
this subsection with respect to the applicable 
area; and 
(B) implementation of the programs and 
activities included in the RECOMPETE plan 
for the applicable area. 
(d) USE OF FUNDS.— 
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(1) IN GENERAL.—Subject to paragraphs (2) 
and (3), a recipient or subrecipient may use a RE-
COMPETE grant to carry out programs and activi-
ties in the applicable area, in accordance with the 
RECOMPETE plan, including— 
(A) the provision of business advice and 
assistance to small and medium-sized local busi-
nesses and entrepreneurs, including— 
(i) manufacturing extension services; 
(ii) small business development cen-
ters; 
(iii) centers to help businesses bid for 
Federal procurement contracts; 
(iv) entrepreneurial assistance pro-
grams that link entrepreneurs with avail-
able public and private resources; 
(v) legal advice and resources; and 
(vi) assistance in accessing capital; 
(B) land and site development programs, 
such as brownfield redevelopment, research and 
technology parks, business incubators, business 
corridor development, and Main Street redevel-
opment programs; 
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(C) infrastructure and housing activities 
that are directly related to supporting job cre-
ation and employment for residents, such as— 
(i) improvements to transit, roads, 
and broadband access; 
(ii) affordable housing development; 
(iii) land-use and zoning reforms; and 
(iv) transit-oriented development ac-
tivities; 
(D) job training oriented to local employer 
needs, such as customized job training pro-
grams carried out by local community colleges 
in partnership with local businesses; 
(E) workforce outreach programs, such 
as— 
(i) programs located in, and targeted 
to, lower-income and underemployed neigh-
borhoods; and 
(ii) embedding job placement and 
training services in neighborhood institu-
tions such as churches, housing projects, 
and community advocacy programs; 
(F) job retention programs and activities, 
such as the provision of— 
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(i) job coaches, including at locations 
of employment; 
(ii) child care services, including sub-
sidizing the construction, operation, main-
tenance, and labor costs of child care cen-
ters; and 
(iii) transportation support, such as 
support for vehicle repairs to assist in the 
transit of workers to jobs; and 
(G) such other programs and activities as 
the Secretary determines to be appropriate, in-
cluding any proposed programs or activities 
that the recipient demonstrates clearly and sub-
stantially, to the satisfaction of the Secretary, 
will directly advance the goals of the RECOM-
PETE grant program. 
(2) METHOD.—In carrying out programs and 
activities described in paragraph (1), a recipient or 
subrecipient may— 
(A) use amounts provided under a RE-
COMPETE grant to carry out such a program 
or activity directly; or 
(B) enter into a contract or other agree-
ment with a subcontractor or vendor (including 
nongovernmental, nonprofit organizations and 
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for-profit entities) to carry out such a program 
or activity. 
(3) OUTSIDE PROGRAMS AND ACTIVITIES.—A 
recipient acting on behalf of an eligible local commu-
nity that enters into a cooperation agreement under 
section 3(b)(2)(A)(ii)(II) with a local community 
that is not eligible, but is located within the same 
local labor market, may use amounts provided under 
a RECOMPETE grant to carry out a program or 
activity described in paragraph (1) in the ineligible 
local community, if the program or activity would 
provide a benefit to residents of the eligible local 
community. 
(e) REGIONAL COMMISSIONS.— 
(1) DEFINITION OF REGIONAL COMMISSION.— 
In this subsection, the term ‘‘Regional Commission’’ 
means— 
(A) any of the Regional Commissions (as 
defined in section 3 of the Public Works and 
Economic Development Act of 1965 (42 U.S.C. 
3122)); 
(B) the Northern Border Regional Com-
mission; 
(C) the Southeast Crescent Regional Com-
mission; 
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(D) the Southwest Border Regional Com-
mission; and 
(E) any other regional commission estab-
lished under Federal law, subject to the ap-
proval of the Secretary. 
(2) TECHNICAL ASSISTANCE AND SUPPORT.—If 
an applicant (or any portion of the service area of 
an applicant) is located in a region covered by a Re-
gional Commission, the Regional Commission is en-
couraged to provide technical assistance and other 
support relating to applying for a RECOMPETE 
grant and developing and carrying out a RECOM-
PETE plan to— 
(A) the applicant; 
(B) the lead entity, if applicable; and 
(C) any other relevant entities. 
(3) ACTION
BY
SECRETARY.—The Secretary 
shall— 
(A) encourage each recipient to coordinate 
the implementation of a RECOMPETE plan 
with the activities of each Regional Commission 
serving the region in which the applicable area 
is located; and 
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(B) ensure that a copy of the RECOM-
PETE plan for each applicable area is provided 
to each affected Regional Commission. 
SEC. 5. ADMINISTRATION, REPORTING, AND OVERSIGHT. 
(a) BENCHMARK EVALUATIONS.— 
(1) IN GENERAL.—The Secretary shall establish 
a process under which the Secretary shall conduct 
periodic benchmark evaluations of each recipient to 
ensure that the recipient successfully carries out the 
programs and activities described in the RECOM-
PETE plan of the recipient. 
(2) TIMING.—The Secretary shall conduct a 
benchmark evaluation of a recipient under this sub-
section— 
(A) for a recipient of a RECOMPETE 
grant provided during the initial application pe-
riod under section 4(a)(2)(B)(i), by not later 
than 3 years after the date of the initial award 
of the RECOMPETE grant; and 
(B) not less frequently than once every 2 
years thereafter during the term of the RE-
COMPETE grant provided to the recipient. 
(3) CRITERIA.—In conducting a benchmark 
evaluation of a recipient under this subsection, the 
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Secretary shall determine whether the recipient 
has— 
(A) adhered to the timelines and require-
ments of the programs and activities identified 
in the RECOMPETE plan of the recipient; 
(B) 
made 
sufficient 
progress 
toward 
achieving the benchmarks and objectives de-
scribed in that RECOMPETE plan; 
(C) increased the overall employment rate, 
the prime-age employment rate, median house-
hold income, and per capita income in the ap-
plicable area; and 
(D) achieved compliance with such other 
criteria as the Secretary determines to be rel-
evant. 
(b) MODIFICATION OF PLANS.— 
(1) REQUIREMENT FOR RECIPIENTS.—A recipi-
ent shall modify the RECOMPETE plan of the re-
cipient, or any program or activity conducted under 
that RECOMPETE plan, if the Secretary— 
(A) determines that— 
(i) such a program or activity is inef-
fective or underperforming; or 
(ii) with respect to the RECOMPETE 
plan, program, or activity— 
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(I) an applicable performance 
metric or criterion has not been met; 
or 
(II) funds have been misused; 
and 
(B) directs the recipient to modify the RE-
COMPETE plan, program, or activity. 
(2) AUTHORITY OF SECRETARY.— 
(A) ADJUSTMENTS
AND
INCREASES
IN 
FUNDING.—The Secretary may increase the 
amount of the RECOMPETE grant provided to 
the recipient as the Secretary determines to be 
appropriate, taking into consideration any 
modifications made to the RECOMPETE plan 
under paragraph (1), in an amount equal to not 
more than the maximum amount available on 
the date of approval of the RECOMPETE 
grant application for the applicable area and 
subject to the availability of funds, if the Sec-
retary determines that— 
(i) events or other factors beyond the 
control of the recipient significantly— 
(I) altered applicable project cir-
cumstances; or 
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(II) prevented the recipient from 
meeting the objectives and bench-
marks of the RECOMPETE plan; or 
(ii) a labor market, economic, busi-
ness, or technology shift, or any other 
major factor, warrants such a modification 
and increase in funding. 
(B) WITHHOLDING
AND
TERMINATING 
FUNDING.—The Secretary may temporarily 
withhold or terminate any amount scheduled to 
be provided under a RECOMPETE grant if the 
Secretary determines that— 
(i) after a reasonable effort, an agree-
ment cannot be reached with respect to a 
modification to a RECOMPETE plan rec-
ommended or required by the Secretary 
under this subsection; or 
(ii)(I) a gross, intentional misuse of 
RECOMPETE grant funds (including any 
activity subject to a penalty under section 
605 of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 
3215)) has occurred; and 
(II) the individual or entity respon-
sible for the misuse is not removed from all 
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programs and activities carried out under 
the RECOMPETE plan. 
(c) RECIPIENT REPORTING REQUIREMENTS.—Each 
recipient shall be subject to— 
(1) the grant reporting requirements under part 
200 of title 2, Code of Federal Regulations (or suc-
cessor regulations); and 
(2) such additional, clear, annual reporting re-
quirements as the Secretary may establish to gather 
any information necessary to conduct the benchmark 
and final evaluations under this section. 
(d) FINAL EVALUATION.— 
(1) IN GENERAL.—Not later than 1 year after 
the final disbursement of a RECOMPETE grant is 
provided to each recipient, the Secretary, in coopera-
tion with the recipient and each applicable sub-
recipient, shall conduct a final evaluation of the suc-
cess of the programs and activities carried out under 
the RECOMPETE plan of the recipient. 
(2) CRITERIA.—The Secretary shall establish 
criteria for use in conducting final evaluations under 
this subsection— 
(A) in addition to the criteria established 
under subsection (a)(3); and 
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(B) taking into consideration the goal of 
reducing the prime-age employment gap of each 
applicable area by 50 percent. 
(3) REQUIREMENTS
FOR
RECIPIENTS.—Each 
recipient and subrecipient shall— 
(A) cooperate with the Secretary in con-
ducting a final evaluation under this subsection; 
and 
(B) provide to the Secretary any informa-
tion necessary for that evaluation. 
(e) REPORT
TO CONGRESS.—The Secretary shall 
submit to Congress comprehensive and detailed annual re-
ports describing the implementation of this Act, including, 
with respect to the period covered by the report— 
(1)(A) a summary assessment of the overall 
progress of the RECOMPETE grant program; and 
(B) as data become available, an analysis of the 
effectiveness of that program; 
(2) labor market and economic metrics to de-
scribe the impact of the RECOMPETE grant pro-
gram, including any progress made toward— 
(A) 
decreasing 
prime-age 
employment 
gaps; or 
(B) increasing local per capita income; 
(3) detailed demographic analyses of— 
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(A) the populations served by recipients; 
and 
(B) relevant labor market statistics; 
(4) a summary of the benchmark evaluations 
conducted under subsection (a), as available; 
(5) an identification of, and reasons for reject-
ing or deferring, as applicable, each application sub-
mitted under section 4(a)(2), including the applica-
ble annual RECOMPETE grant amount limitation 
established by the Secretary under subparagraph 
(C)(i)(II) of that section, if any; and 
(6) such other details as the Secretary deter-
mines to be appropriate. 
(f) APPLICABILITY OF PWEDA.— 
(1) IN GENERAL.—The following sections of the 
Public Works and Economic Development Act of 
1965 shall apply to this Act (including the RECOM-
PETE grant program): 
(A) Section 211 (42 U.S.C. 3151). 
(B) Section 503 (42 U.S.C. 3193). 
(C) Section 504 (42 U.S.C. 3194). 
(D) Section 602 (42 U.S.C. 3212). 
(E) Section 604 (42 U.S.C. 3214). 
(F) Section 605 (42 U.S.C. 3215). 
(G) Section 608 (42 U.S.C. 3218). 
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(H) Section 610 (42 U.S.C. 3220). 
(2) 
AUTHORITIES
AND
DUTIES
OF
SEC-
RETARY.—The Secretary shall have the authorities 
and duties provided by the sections of the Public 
Works and Economic Development Act of 1965 (42 
U.S.C. 3121 et seq.) referred to in paragraph (1) in 
administering and enforcing this Act (including the 
RECOMPETE grant program). 
SEC. 6. FUNDING. 
(a) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary to carry 
out this Act $175,000,000,000 for fiscal year 2022, to re-
main available until expended. 
(b) ALLOCATION.— 
(1) IN GENERAL.—Subject to paragraph (2), of 
the amounts made available under subsection (a), 
the Secretary shall allocate— 
(A) not less than 70 percent to recipients 
acting on behalf of local labor markets or par-
tial local labor markets; 
(B) not more than 20 percent to recipients 
acting on behalf of local communities; and 
(C) not less than 10 percent to eligible 
Tribal governments. 
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(2) TREATMENT OF CERTAIN AMOUNTS.—The 
amounts allocated pursuant to paragraphs (5) and 
(6)(B) of subsection (c) shall not be taken into con-
sideration for purposes of calculations under para-
graph (1). 
(3) 
ADMINISTRATIVE
COSTS
AND
PER-
SONNEL.— 
(A) IN GENERAL.—Of any amounts made 
available to carry out this Act, the Secretary 
shall transfer not less than 1 percent to the 
Salary and Expenses Account of the Secretary 
for the costs of administration and oversight of 
this Act. 
(B) PERSONNEL.—The Secretary may— 
(i) appoint and fix the compensation 
of such temporary personnel as may be 
necessary to carry out this Act; and 
(ii) effective beginning on the date on 
which an individual appointed under clause 
(i) has served continuously in that appoint-
ment for 2 years, appoint the individual to 
a position in the Economic Development 
Administration in the same manner in 
which competitive service employees with 
competitive status are considered for trans-
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fer, reassignment, or promotion to such a 
position, at which time the individual shall 
become a career-conditional employee, un-
less the individual has completed the serv-
ice requirements for career tenure. 
(c) GRANT FORMULAS.— 
(1) IN
GENERAL.—Subject to subsection (e), 
based on the information relating to projected costs 
contained in applicable RECOMPETE plans under 
subparagraph (C) of section 4(b)(2), and the jus-
tifications described in subparagraph (D) of that 
section, the amount of a RECOMPETE grant pro-
vided to a recipient shall be determined in accord-
ance with this subsection. 
(2) LOCAL LABOR MARKETS.—An eligible local 
labor market may receive not more than the amount 
equal to the product obtained by multiplying— 
(A) the prime-age employment gap of the 
local labor market; 
(B) the prime-age population of the local 
labor market; and 
(C) $70,585. 
(3) LOCAL
COMMUNITIES.—Subject to para-
graph (6), an eligible local community may receive 
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not more than the amount equal to the product ob-
tained by multiplying— 
(A) the prime-age employment gap of the 
local community; 
(B) the prime-age population of the local 
community; and 
(C) $53,600. 
(4) PARTIAL LOCAL LABOR MARKETS.—An eli-
gible partial local labor market may receive not more 
than the amount equal to the product obtained by 
multiplying— 
(A) the population of the partial local labor 
market; 
(B) the lesser of— 
(i) the prime-age employment gap of 
the local labor market within which the 
partial local labor market is located; and 
(ii) the prime-age employment gap of 
the partial local labor market; and 
(C) $70,585. 
(5) TRIBAL GOVERNMENTS.— 
(A) IN GENERAL.—An eligible Tribal gov-
ernment may receive not more than the amount 
equal to the product obtained by multiplying, 
subject to subparagraph (B)— 
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(i) the prime-age employment gap of 
the Tribal government; 
(ii) the prime-age population of the 
Tribal government; and 
(iii) $70,585. 
(B) CALCULATION OF POPULATION.— 
(i) IN
GENERAL.—Subject to clause 
(ii), for purposes of subparagraph (A), the 
population of a Tribal government shall be 
equal to the sum obtained by adding— 
(I) the product obtained by mul-
tiplying— 
(aa) the total number of in-
dividuals residing on the Tribal 
land of the Tribal government; 
and 
(bb) 0.65; and 
(II) the product obtained by mul-
tiplying— 
(aa) the total number of in-
dividuals included on the mem-
bership roll of the Tribal govern-
ment; and 
(bb) 0.35. 
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(ii) USE OF DATA.—Each calculation 
under clause (i) shall be determined based 
on data provided by the applicable Tribal 
government to the Department of the 
Treasury under the Coronavirus State and 
Local Fiscal Recovery Fund programs 
under title VI of the Social Security Act 
(42 U.S.C. 801 et seq.) (as amended by 
subtitle M of title IX of the American Res-
cue Plan Act of 2021 (Public Law 117–2; 
135 Stat. 4)). 
(6) LOCAL COMMUNITIES WITH COOPERATION 
AGREEMENTS.—If an eligible local community elects 
to enter into a cooperation agreement under section 
3(b)(2)(A) with 1 or more local communities that 
are not eligible— 
(A) each eligible local community that is a 
party to the cooperation agreement may receive 
the maximum amount available to the eligible 
local community, as determined under para-
graph (3); and 
(B) the Secretary may award to the lead 
entity an additional amount equal to not more 
than 10 percent of the total amount provided 
under subparagraph (A), for distribution by the 
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lead entity to any local community or other ap-
plicant that is a party to the cooperation agree-
ment, regardless of whether the local commu-
nity or other applicant is eligible, for use in ac-
cordance with the applicable RECOMPETE 
plan. 
(d) OBLIGATION AND DISBURSEMENT OF FUNDS.— 
(1) IN
GENERAL.—On approval by the Sec-
retary of an application under section 4(a)(2)(E), 
the Secretary shall— 
(A) obligate the entire amount of the RE-
COMPETE grant for the applicable recipient; 
and 
(B) disburse that amount to the recipient 
annually for each of the 10 fiscal years begin-
ning after the date of obligation, in accordance 
with this subsection. 
(2) PROPOSALS.—To receive an annual dis-
bursement under paragraph (1), a recipient shall 
submit to the Secretary a proposal describing the in-
tended use by the recipient of the disbursement dur-
ing the applicable fiscal year (including the pro-
grams and activities proposed to be carried out and 
any subcontractor or vendor proposed to be used for 
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those purposes), in accordance with the RECOM-
PETE plan of the recipient. 
(3) PROVISION OF FUNDING.—On approval by 
the Secretary of a proposal submitted by a recipient 
under paragraph (2), the Secretary shall disburse to 
the recipient the amount of the RECOMPETE 
grant due to the recipient for the fiscal year, for use 
in accordance with— 
(A) the proposal; and 
(B) the RECOMPETE plan of the recipi-
ent. 
(e) COST SHARING.— 
(1) FEDERAL SHARE.— 
(A) IN GENERAL.—The Federal share of 
the cost of each program and activity carried 
out using a RECOMPETE grant shall be the 
cost share described in subparagraph (B) for 
the applicable recipient, subject to subpara-
graph (C) and paragraphs (2) through (4). 
(B) DESCRIPTIONS OF COST SHARES.— 
(i) LOCAL LABOR MARKETS.—For an 
eligible local labor market, the cost share 
referred to in subparagraph (A) shall be— 
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(I) 50 percent for an eligible 
local labor market with a prime-age 
employment gap equal to— 
(aa) not less than 2.5 per-
cent; but 
(bb) less than 3 percent; and 
(II) an additional 6.25 percent 
for each prime-age employment gap 
percentage point of 3 percent or more, 
as determined in accordance with the 
following table: 
Local labor market prime-age employment gap 
Federal 
share 
3 percent to less than 4 percent .....................................................
56.25 
percent
4 percent to less than 5 percent .....................................................
62.5 
percent
5 percent to less than 6 percent .....................................................
68.75 
percent
6 percent to less than 7 percent .....................................................
75 percent
7 percent to less than 8 percent .....................................................
81.25 
percent
8 percent to less than 9 percent .....................................................
87.5 
percent
9 percent to less than 10 percent ...................................................
93.75 
percent
10 percent or greater ......................................................................
100 percent. 
(ii) LOCAL COMMUNITIES.—For an el-
igible local community, the cost share re-
ferred to in subparagraph (A) shall be— 
(I) 68.75 percent for an eligible 
local community with a prime-age em-
ployment gap equal to— 
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(aa) not less than 5 percent; 
but 
(bb) less than 6 percent; and 
(II) an additional 6.25 percent 
for each prime-age employment gap 
percentage point of 6 percent or more, 
up to 100 percent, as determined in 
accordance with the following table: 
Local community prime-age employment gap 
Federal 
share 
6 percent to less than 7 percent .....................................................
75 percent
7 percent to less than 8 percent .....................................................
81.25 
percent
8 percent to less than 9 percent .....................................................
87.5 
percent
9 percent to less than 10 percent ...................................................
93.75 
percent
10 percent or greater ......................................................................
100 percent. 
(iii) PARTIAL
LOCAL
LABOR
MAR-
KETS.— 
(I) IN
GENERAL.—Subject to 
subclause (II), for an eligible partial 
local labor market, the cost share re-
ferred to in subparagraph (A) shall 
be— 
(aa) 50 percent for an eligi-
ble partial local labor market 
with a prime-age employment 
gap equal to— 
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(AA) not less than 2.5 
percent; but 
(BB) less than 3 per-
cent; and 
(bb) an additional 6.25 per-
cent for each prime-age employ-
ment gap percentage point of 3 
percent or more, as determined 
in accordance with the following 
table: 
Lesser of partial local labor market, and local labor market, 
prime-age employment gaps 
Federal 
share 
3 percent to less than 4 percent .....................................................
56.25 
percent
4 percent to less than 5 percent .....................................................
62.5 
percent
5 percent to less than 6 percent .....................................................
68.75 
percent
6 percent to less than 7 percent .....................................................
75 percent
7 percent to less than 8 percent .....................................................
81.25 
percent
8 percent to less than 9 percent .....................................................
87.5 
percent
9 percent to less than 10 percent ...................................................
93.75 
percent
10 percent or greater ......................................................................
100 percent. 
(II) CERTAIN LOCAL LABOR MAR-
KETS.—If an eligible partial local 
labor market is located within a local 
labor market with a prime-age em-
ployment gap that is less than the 
prime-age employment gap of the par-
tial local labor market, the prime-age 
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employment gap of the local labor 
market shall be used for purposes of 
calculating the Federal share of the 
partial local labor market under sub-
clause (I). 
(iv) TRIBAL GOVERNMENTS.—For an 
eligible Tribal government, the cost share 
referred to in subparagraph (A) shall be 
100 percent. 
(C) AVAILABLE INCREASES.— 
(i) RELATIVE
NEED.—The Federal 
share determined for a recipient under 
clause (i), (ii), or (iii) of subparagraph (B) 
may be increased, based on the relative 
need of each applicable area and recipient 
and in accordance with such regulations as 
the Secretary may promulgate, to not more 
than 80 percent of the total estimated cost 
of the programs and activities included in 
the RECOMPETE Plan for the applicable 
area. 
(ii) SEVERE
ECONOMIC
NEED.—The 
Federal share determined for a recipient 
under subparagraph (B) may be increased 
to not more than 100 percent of the total 
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estimated cost of the programs and activi-
ties included in the RECOMPETE Plan 
for the applicable area in any case in 
which the Secretary determines that the 
recipient or a subrecipient has— 
(I) exhausted all other reasonable 
financing and funding options; and 
(II) demonstrated severe eco-
nomic need. 
(2) SPECIAL RULE.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the Federal share calculated 
for an eligible local community under paragraph 
(1) shall not be reduced due to an election by 
the eligible local community to enter into a co-
operation agreement under section 3(b)(2)(A). 
(B) EXCEPTION.—If additional amounts 
are provided for an eligible local community for 
distribution to subrecipients under section 
3(b)(2)(A)(iii), the Federal share calculated 
under paragraph (1) for the eligible local com-
munity shall be not more than 50 percent, sub-
ject to any increase in accordance with clause 
(i) or (ii) of paragraph (1)(C), as applicable. 
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(3) NON-FEDERAL CONTRIBUTIONS.—In calcu-
lating the non-Federal share of the cost of a pro-
gram or activity carried out under a RECOMPETE 
plan, the Secretary may provide a credit toward the 
non-Federal share for any non-Federal contribution 
to the program or activity— 
(A) in cash or in-kind; 
(B) fairly evaluated; and 
(C) including any contribution of space, 
equipment, assumption of debt, or service. 
(4) REASSESSMENT.— 
(A) IN GENERAL.—The Federal share and 
non-Federal share determined for a recipient 
under paragraphs (1) and (2) shall apply dur-
ing the period beginning on the date of enact-
ment of this Act and ending on the date on 
which the initial benchmark evaluation relating 
to the recipient is conducted under section 5(a). 
(B) PERIODIC
REEVALUATION.—As soon 
as practicable after the date on which each 
benchmark evaluation relating to a recipient is 
conducted under section 5(a), the Secretary 
shall— 
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(i) reevaluate the Federal share and 
non-Federal share determined for the re-
cipient under this subsection; and 
(ii) determine whether such a cost 
share should be adjusted, subject to sub-
paragraph (C). 
(C) LIMITATION
ON
FEDERAL
SHARE.— 
The Federal share determined for a recipient 
under this subsection— 
(i) shall not be decreased by more 
than— 
(I) 10 percent, as compared to 
the Federal share determined for the 
recipient under this subsection for the 
preceding period; or 
(II) 30 percent, in total; and 
(ii) shall be not less than 50 percent. 
Æ 
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