tions with respect to accounting for amounts in
Reserve Funds.
(3) USE OF RESERVE FUND.—
(A) IN GENERAL.—The organization shall
use the amounts in the Reserve Fund estab-
lished under paragraph (1) to—
(i) assist participants in the dem-
onstration project in obtaining the skills
and information necessary to achieve eco-
nomic self-sufficiency through activities re-
quiring qualified expenses (as defined in
section 220(c)(1) of the Internal Revenue
Code of 1986);
(ii) provide financial assistance in ac-
cordance with subsection (g) to individuals
selected by the organization to participate
in the project;
(iii) administer the project; and
(iv) provide the organization evaluat-
ing the project under a contract entered
into under subsection (m) with such infor-
mation with respect to the project as may
be required for the evaluation.
(B) AUTHORITY TO INVEST FUNDS.—The
organization shall invest such amounts in the
Reserve Fund as are not immediately needed to
carry out subparagraph (A) of this paragraph,
in accordance with guidelines which shall—
(i) be developed by the panel estab-
lished pursuant to subsection (k); and
(ii) require such investments to be
highly liquid and of low risk.
(C) LIMITATION ON ADMINISTRATIVE EX-
PENSES.—Not more than 10 percent of the
amounts provided to the organization under
subsection (c)(2) may be used to administer, or
notify the public about, the demonstration
project, without the approval of the panel estab-
lished pursuant to subsection (k).
(4) UNUSED FEDERAL GRANT FUNDS TRANS-
FERRED TO THE SECRETARY WHEN PROJECT TERMI-
NATES.—Notwithstanding paragraph (3), upon the
termination of any demonstration project authorized
under this section, the organization conducting the
project shall transfer to the Secretary an amount
equal to—
(A) the amounts in the Reserve Fund at
time of the termination; multiplied by
(B) a percentage equal to—
(i) the aggregate amount of grants
made to the organization under subsection
(c)(2); divided by
(ii) the aggregate of the amounts pro-
vided to the organization by all entities to
conduct the project.
(e) ELIGIBILITY FOR ASSISTANCE.—Any individual
who is a member of a household that meets the following
requirements shall be eligible for assistance under a dem-
onstration project conducted under this section:
(1) INCOME TEST.—The income of the house-
hold for the immediately preceding calendar year is
not more than 200 percent of the poverty threshold
for such period.
(2) NET WORTH TEST.—The net worth of the
household, as of the close of such immediately pre-
ceding calendar year, is not more than $20,000.
(f) SELECTION OF INDIVIDUALS TO RECEIVE ASSIST-
ANCE.—From among the individuals eligible for assistance
under a demonstration project conducted under this sec-
tion, the organization authorized to conduct the project
shall select the individuals—
(1) whom the organization deems to be best
suited to receive such assistance; and
(2) to whom the organization will provide finan-
cial assistance in accordance with subsection (g).
(g) PROVISION OF FINANCIAL ASSISTANCE.—Each
organization to which a grant is made under subsection
(c)(2) of this section for a project year shall, during the
project year, deposit directly into the individual develop-
ment account of any individual selected by the organiza-
tion under subsection (f) of this section an amount deter-
mined in accordance with the following table:
If the income of the in-
dividual for the applica-
ble period is the follow-
ing percentage of the
poverty threshold:
The amount is not to exceed the lesser of:
The following percentage
of the qualified savings of
the individual for the pe-
riod:
OR
The fol-
lowing
dollar
amount:
Not more than 50 per-
cent.
900
or ....
$1,800
More than 50 percent
but not more than 85
percent.
500
or ....
$1,650
More than 85 percent
but not more than
125 percent.
200
or ....
$1,400
More than 125 percent
but not more than
160 percent.
or ....
$700
More than 160 percent
but not more than
200 percent.
or ....
$350.
(h) 
LOCAL
CONTROL
OVER
DEMONSTRATION
PROJECTS.—Each organization authorized to conduct a
demonstration project under this section shall, subject to
subsections (j) and (l), have sole authority over the admin-
istration of the project. The Secretary may prescribe only
such regulations with respect to demonstration projects
under this section as are necessary to ensure compliance
with the approved applications therefor and this section.
(i) SEMIANNUAL PROGRESS REPORTS.—
(1) IN GENERAL.—Each organization author-
ized to conduct a demonstration project under this
section shall prepare 10 semiannual reports on the
progress of the project, including—
(A) information on participation of individ-
uals in the project;
(B) information on amounts in the Reserve
Fund established with respect to the project;
(C) information on amounts in the individ-
ual development accounts of the individuals to
whom assistance is provided under the project;
and
(D) such other information as the panel
established pursuant to subsection (k) may re-
quire to assess the project.
(2) SUBMISSION OF REPORTS.—The organiza-
tion shall submit each report required to be prepared
under paragraph (1) with respect to a demonstration
project to—
(A) the panel established pursuant to sub-
section (k);
(B) the Secretary; and
(C) the Treasurer (or equivalent official) of
the State in which the project is conducted.
(3) TIMING.—The first report required by para-
graph (1) shall be submitted at the end of the 6-
month period beginning on the date the Secretary
authorized the organization to conduct the dem-
onstration project, and subsequent reports shall be
submitted 6 months apart.
(j) OVERSIGHT.—
(1) ESTABLISHMENT
OF
PANEL.—The Sec-
retary shall establish a panel pursuant to subsection
(k) of this section to—
(A) develop guidelines governing the in-
vestment of—
(i) funds in the Reserve Funds estab-
lished under subsection (d) of this section;
and
(ii) funds in individual development
accounts established under section 220 of
the Internal Revenue Code of 1986;
(B) monitor the progress of the projects;
(C) make recommendations with respect to
projects that do not progress adequately or are
not conducted in substantial compliance with