(B) information about the ability of the or-
ganization to—
(i) assist project participants in
achieving economic self-sufficiency through
the project; and
(ii) administer the project;
(C) a commitment made to the organiza-
tion by the State in which the project is to be
conducted that the State will provide a specified
amount of funds to the organization for the
project, and any similar commitment made to
the organization by any other non-Federal pub-
lic entity or by any private entity; and
(D) a plan to provide the organization
evaluating the project with such information
with respect to the project as may be required
for the evaluation.
(3) CRITERIA.—In considering whether or not
to approve any application to conduct a demonstra-
tion project under this section, the Secretary shall
assess the following:
(A) SUFFICIENCY OF PROJECT.—The de-
gree to which the project described in the appli-
cation appears likely to aid project participants
in achieving economic self-sufficiency through
activities requiring qualified expenses (as de-
fined in section 220(c)(1) of the Internal Reve-
nue Code of 1986). In making such assessment,
the Secretary shall consider the overall quality
of project activities and shall not consider aid
in making any particular kind or combination
of qualified expenses (as so defined) to be an
essential feature of any project.
(B) ADMINISTRATIVE ABILITY.—The abil-
ity of the applicant to responsibly administer
the project.
(C) 
COMMITMENT
OF
NON-FEDERAL
FUNDS.—The aggregate amount of funds from
non-Federal sources that are committed to the
project.
(D) ADEQUACY OF PLAN FOR PROVIDING
INFORMATION
FOR
EVALUATION.—The ade-
quacy of the plan for providing information rel-
evant to an evaluation of the project.
(4) APPROVAL.—Not later than June 1, 1995,
the Secretary shall, on a competitive basis, approve
such applications to conduct demonstration projects
under this section as the Secretary deems appro-
priate, taking into account the assessment required
by paragraph (3).
(c) 
DEMONSTRATION
AUTHORITY; 
ANNUAL
GRANTS.—
(1) DEMONSTRATION AUTHORITY.—If the Sec-
retary approves an application to conduct a dem-
onstration project under this section, the Secretary
shall, not later than July 1, 1996, authorize the ap-
plicant to conduct the project for 5 project years in
accordance with the approved application therefor
and this section.
(2) GRANT AUTHORITY.—For each project year
of a demonstration project conducted under this sec-
tion, the Secretary shall make a grant to the organi-
zation authorized to conduct the project, on the first
day of the project year.
(3) LIMITATIONS ON GRANT AMOUNTS.—
(A) MAXIMUM.—The amount of each grant
under paragraph (2) shall be not more than
$20,000,000.
(B) FIRST
YEAR
GRANT
LEVEL
AS-
SURED.—The amount of each grant to an orga-
nization under paragraph (2) after the first
such grant shall be not less than the amount of
such first grant.
(C) GRANTS REDUCED, IF NECESSARY, IN
PROPORTION TO ANY REDUCTIONS IN APPRO-
PRIATIONS AFTER FIRST YEAR.—If the amount
appropriated to carry out this section for any
particular fiscal year after fiscal year 1996 is
less than the amount so appropriated for fiscal
year 1996, then the limitations of subpara-
graphs (A) and (B) shall each be reduced for
the particular fiscal year in equal proportion to
the reduction of such appropriations, but only
to the extent that the reduction of such limita-
tions is made necessary by the reduction in
such appropriations.
(d) RESERVE FUND.—
(1) ESTABLISHMENT.—Each organization au-
thorized to conduct a demonstration project under
this section shall establish a Reserve Fund which
shall be used in accordance with this subsection.
(2) AMOUNTS IN RESERVE FUND.—
(A) IN GENERAL.—As soon after receipt as
is practicable, the organization shall place in
the Reserve Fund established under paragraph
(1)—
(i) all funds provided to the organiza-
tion by any public or private entity to con-
duct the demonstration project;
(ii) the proceeds of any investment
made under paragraph (3)(B).
(B) INDIVIDUAL DEVELOPMENT ACCOUNT
PENALTIES.—
(i) PENALTY AMOUNTS AUTHORIZED
TO BE APPROPRIATED FOR PAYMENT TO
THE RESERVE FUND.—For payment to the
Reserve Fund established by an organiza-
tion that provides financial assistance
under subsection (g) of this section to any
individual who pays, or from whose individ-
ual development account is paid, a penalty
amount, there is authorized to be appro-
priated to the Secretary, without fiscal
year limitation, an amount equal to the
penalty amount.
(ii) PAYMENT TO RESERVE FUND OF
PENALTY
AMOUNTS
APPROPRIATED
THEREFOR.—The Secretary shall imme-
diately pay to the Reserve Fund any
amount appropriated pursuant to clause (i)
for payment to the Reserve Fund.
(C) 
UNIFORM
ACCOUNTING
REGULA-
TIONS.—The Secretary shall prescribe regula-