I 
108TH CONGRESS 
1ST SESSION H. R. 1007
To provide for homeland security block grants. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 27, 2003
Mr. MCNULTY (for himself and Ms. LORETTA SANCHEZ of California) intro-
duced the following bill; which was referred to the Committee on Trans-
portation and Infrastructure, and in addition to the Committees on the 
Judiciary, Energy and Commerce, and Select Homeland Security, for a 
period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To provide for homeland security block grants.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Homeland Security Block Grant Act of 2003’’. 
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents. 
Sec. 2. Findings and purpose. 
Sec. 3. Definitions. 
Sec. 4. Grants to States, units of general local government and Indian tribes; 
authorizations. 
Sec. 5. Statement of activities and review.
Sec. 6. Activities eligible for assistance. 
Sec. 7. Allocation and distribution of funds. 
Sec. 8. State and regional planning communication systems. 
Sec. 9. Nondiscrimination in programs and activities. 
Sec. 10. Remedies for noncompliance with requirements. 
Sec. 11. Reporting requirements. 
Sec. 12. Consultation by Secretary. 
Sec. 13. Interstate agreements or compacts; purposes. 
Sec. 14. Matching requirements; suspension of requirements for economically 
distressed areas.
SEC. 2. FINDINGS AND PURPOSE. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) In the wake of the September 11, 2001, ter-
rorist attacks on our country, communities all across 
American now find themselves on the front lines in 
the war against terrorism on United States soil. 
(2) We recognize that these communities will be 
forced to shoulder a significant portion of the bur-
den that goes along with that responsibility. We be-
lieve that local governments should not have to bear 
that responsibility alone. 
(3) Our homeland defense will only be as strong 
as the weakest link at the State and local level. By 
providing our communities with the resources and 
tools they need to bolster emergency response efforts 
and provide for other emergency response initiatives, 
we will have a better-prepared home front and a 
stronger America.
(b) PURPOSE.—The purpose of this Act is to provide 
needed funds to first responders to be used for the purpose 
of bolstering emergency response efforts and other emer-
gency response initiatives in case of terrorist or other at-
tack on our home front. 
SEC. 3. DEFINITIONS. 
(a) DEFINITIONS.—In this Act: 
(1) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Homeland Security. 
(2) CITY.—The term ‘‘city’’ means—
(A) any unit of general local government 
that is classified as a municipality by the 
United States Bureau of the Census; or 
(B) any other unit of general local govern-
ment that is a town or township and which, in 
the determination of the Secretary—
(i) possesses powers and performs 
functions comparable to those associated 
with municipalities; 
(ii) is closely settled; and 
(iii) contains within its boundaries no 
incorporated places as defined by the 
United States Bureau of the Census that 
have not entered into cooperation agree-
ments with such town or township to un-
dertake or to assist in the performance of 
homeland security objectives. 
(3) FEDERAL
GRANT-IN-AID
PROGRAM.—The 
term ‘‘Federal grant-in-aid program’’ means a pro-
gram of Federal financial assistance other than 
loans and other than the assistance provided by this 
Act. 
(4) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
means any Indian tribe, band, group, and nation, in-
cluding Alaska Indians, Aleuts, and Eskimos, and 
any Alaskan Native Village, of the United States, 
which is considered an eligible recipient under the 
Indian Self-Determination and Education Assistance 
Act (Public Law 93–638) or was considered an eligi-
ble recipient under chapter 67 of title 31, United 
States Code, prior to the repeal of such chapter. 
(5) METROPOLITAN AREA.—The term ‘‘metro-
politan area’’ means a standard metropolitan statis-
tical area as established by the Office of Manage-
ment and Budget. 
(6) METROPOLITAN CITY.—
(A) IN GENERAL.—The term ‘‘metropoli-
tan city’’ means—
(i) a city within a metropolitan area 
that is the central city of such area, as de-
fined and used by the Office of Manage-
ment and Budget; or 
(ii) any other city, within a metropoli-
tan area, which has a population of not 
less than 50,000. 
(B) PERIOD
OF
CLASSIFICATION.—Any 
city that was classified as a metropolitan city 
for at least 2 years pursuant to subparagraph 
(A) shall remain classified as a metropolitan 
city. Any unit of general local government that 
becomes eligible to be classified as a metropoli-
tan city, and was not classified as a metropoli-
tan city in the immediately preceding fiscal 
year, may, upon submission of written notifica-
tion to the Secretary, defer its classification as 
a metropolitan city for all purposes under this 
Act, if it elects to have its population included 
in an urban county under subsection (d). 
(C) ELECTION
BY
A
CITY.—Notwith-
standing subparagraph (B), a city may elect not 
to retain its classification as a metropolitan 
city. Any unit of general local government that 
was classified as a metropolitan city in any 
year, may, upon submission of written notifica-
tion to the Secretary, relinquish such classifica-
tion for all purposes under this Act if it elects 
to have its population included with the popu-
lation of a county for purposes of qualifying for 
assistance (for such following fiscal year) under 
section 5(e) as an urban county. 
(7) NONQUALIFYING
COMMUNITY.—The term 
‘‘nonqualifying community’’ means an area that is 
not a metropolitan city or part of an urban county 
and does not include Indian tribes.
(8) 
POPULATION.—The 
term 
‘‘population’’ 
means total resident population based on data com-
piled by the United States Bureau of the Census 
and referable to the same point or period of time. 
(9) STATE.—The term ‘‘State’’ means any 
State of the United States, or any instrumentality 
thereof approved by the Governor; and the Common-
wealth of Puerto Rico, the United States Virgin Is-
lands, American Samoa, Guam, and the Northern 
Mariana Islands. 
(10) UNIT
OF
GENERAL
LOCAL
GOVERN-
MENT.—The term ‘‘unit of general local govern-
ment’’ means any city, county, town, township, par-
ish, village, or other general purpose political sub-
division of a State; a combination of such political
subdivisions is recognized by the Secretary; and the 
District of Columbia. 
(11) URBAN COUNTY.—The term ‘‘urban coun-
ty’’ means any county within a metropolitan area. 
(b) BASIS AND MODIFICATION OF DEFINITIONS.—
Where appropriate, the definitions in subsection (a) shall 
be based, with respect to any fiscal year, on the most re-
cent data compiled by the United States Bureau of the 
Census and the latest published reports of the Office of 
Management and Budget available ninety days prior to the 
beginning of such fiscal year. The Secretary may by regu-
lation change or otherwise modify the meaning of the 
terms defined in subsection (a) in order to reflect any 
technical change or modification thereof made subsequent 
to such date by the United States Bureau of the Census 
or the Office of Management and Budget. 
(c) DESIGNATION OF PUBLIC AGENCIES.—One or 
more public agencies, including existing local public agen-
cies, may be designated by the chief executive officer of 
a State or a unit of general local government to undertake 
activities assisted under this Act. 
(d) LOCAL GOVERNMENTS, INCLUSION IN URBAN 
COUNTY POPULATION.—With respect to program years 
beginning with the program year for which grants are 
made available from amounts appropriated for fiscal year
2003 under section 4, the population of any unit of gen-
eral local government which is included in that of an urban 
county as provided in subsection (a)(11) shall be included 
in the population of such urban county for three program 
years beginning with the program year in which its popu-
lation was first so included and shall not otherwise be eli-
gible for a grant as a separate entity, unless the urban 
county does not receive a grant for any year during such 
three-year period. 
(e) URBAN COUNTY.—Any county seeking qualifica-
tion as an urban county, including any urban county seek-
ing to continue such qualification, shall notify, as provided 
in this subsection, each unit of general local government, 
which is included therein and is eligible to elect to have 
its population excluded from that of an urban county, of 
its opportunity to make such an election. Such notification 
shall, at a time and in a manner prescribed by the Sec-
retary, be provided so as to provide a reasonable period 
for response prior to the period for which such qualifica-
tion is sought. The population of any unit of general local 
government which is provided such notification and which 
does not inform, at a time and in a manner prescribed 
by the Secretary, the county of its election to exclude its 
population from that of the county shall, if the county
qualifies as an urban county, be included in the population 
of such urban county as provided in subsection (d). 
SEC. 4. GRANTS TO STATES, UNITS OF GENERAL LOCAL 
GOVERNMENT AND INDIAN TRIBES; AUTHOR-
IZATIONS. 
(a) AUTHORIZATION.—The Secretary is authorized to 
make grants to States, units of general local government, 
and Indian tribes to carry out activities in accordance with 
the provisions of this Act. 
(b) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be 
appropriated $3,000,000,000 for each of fiscal years 
2003 through 2006, and such sums as may be nec-
essary thereafter, for the purpose of carrying out the 
provisions under section 7. 
(2) STATE, REGIONAL, AND LOCAL PLANNING, 
TRAINING, AND COMMUNICATION SYSTEMS.—There 
are authorized to be appropriated $500,000,000 for 
each of fiscal years 2003 through 2006, and such 
sums as may be necessary thereafter, for the pur-
pose of carrying out the provisions under section 8. 
SEC. 5. STATEMENT OF ACTIVITIES AND REVIEW. 
(a) APPLICATION.—
(1) IN GENERAL.—Prior to the receipt in any 
fiscal year of a grant under section 7(b) by any met-
ropolitan city or urban county, section 7(i) by any 
State, or section 7(i)(3) by any unit of general local 
government, the grantee shall—
(i) indicate its interest in receiving 
funds by preparing a statement of home-
land security objectives and projected use 
of funds; and 
(ii) provide the Secretary with the cer-
tifications required under paragraph (2) 
and, where appropriate, subsection (b). 
(2) GRANTEE STATEMENT.—
(A) CONTENTS.—
(i) LOCAL GOVERNMENT.—In the case 
of metropolitan cities or urban counties re-
ceiving grants under section 7(b) and units 
of general local government receiving 
grants under section 7(i)(3), the statement 
of projected use of funds shall consist of 
proposed homeland security activities. 
(ii) STATES.—In the case of States 
receiving grants under section 7(d), the 
statement of projected use of funds shall 
consist of the method by which the States 
will distribute funds to units of general 
local government.
(B) CONSULTATION.—In preparing the 
statement, the grantee shall consult with appro-
priate law enforcement agencies and emergency 
response authorities. 
(C) FINAL
STATEMENT.—A copy of the 
final statement and the certifications required 
under paragraph (3) and, where appropriate, 
subsection (b) shall be furnished to the Sec-
retary and the Attorney General.
(D) MODIFICATIONS.—Any final statement 
of activities may be modified or amended from 
time to time by the grantee in accordance with 
the same procedures required in this paragraph 
for the preparation and submission of such 
statement. 
(3) CERTIFICATION OF ENUMERATED CRITERIA 
BY GRANTEE TO SECRETARY.—Any grant under sec-
tion 7 shall be made only if the grantee certifies to 
the satisfaction of the Secretary that—
(A) it has developed a homeland security 
plan pursuant to section 6(a)(8) that identifies 
both short- and long-term homeland security 
needs that have been developed in accordance 
with the primary objective and requirements of 
this Act; and
(B) the grantee will comply with the other 
provisions of this Act and with other applicable 
laws. 
(b) SUBMISSION
OF ANNUAL PERFORMANCE RE-
PORTS, AUDITS AND ADJUSTMENTS.—
(1) IN GENERAL.—Each grantee shall submit to 
the Secretary, at a time determined by the Sec-
retary, a performance and evaluation report con-
cerning the use of funds made available under sec-
tion 7, together with an assessment by the grantee 
of the relationship of such use to the objectives iden-
tified in the grantee’s statement under subsection 
(a)(2). 
(2) UNIFORM REPORTING REQUIREMENTS.—
(A) RECOMMENDATIONS BY NATIONAL AS-
SOCIATIONS.—The Secretary shall encourage 
and assist national associations of grantees eli-
gible under section 7, national associations of 
States, and national associations of units of 
general local government in nonqualifying areas 
to develop and recommend to the Secretary, 
within 1 year after the effective date of this 
Act, uniform recordkeeping, performance re-
porting, evaluation reporting, and auditing re-
ment in a timely manner and in conformance to 
the method of distribution described in its 
statement, whether the State has carried out its 
certifications in compliance with the require-
ments of this Act and other applicable laws, 
and whether the State has made such reviews 
and audits of the units of general local govern-
ment as may be necessary or appropriate to de-
termine whether they have satisfied the applica-
ble performance criteria described in subpara-
graph (A). 
(4) ADJUSTMENTS.—The Secretary may make 
appropriate adjustments in the amount of the an-
nual grants in accordance with the Secretary’s find-
ings under this subsection. With respect to assist-
ance made available to units of general local govern-
ment under section 7(i)(3), the Secretary may ad-
just, reduce, or withdraw such assistance, or take 
other action as appropriate in accordance with the 
Secretary’s reviews and audits under this subsection, 
except that funds already expended on eligible activi-
ties under this Act shall not be recaptured or de-
ducted from future assistance to such units of gen-
eral local government.
(c) AUDITS.—Insofar as they relate to funds provided 
under this Act, the financial transactions of recipients of 
such funds may be audited by the General Accounting Of-
fice under such rules and regulations as may be prescribed 
by the Comptroller General of the United States. The rep-
resentatives of the General Accounting Office shall have 
access to all books, accounts, records, reports, files, and 
other papers, things, or property belonging to or in use 
by such recipients pertaining to such financial trans-
actions and necessary to facilitate the audit. 
(d) METROPOLITAN CITY AS PART OF URBAN COUN-
TY.—In any case in which a metropolitan city is located, 
in whole or in part, within an urban county, the Secretary 
may, upon the joint request of such city and county, ap-
prove the inclusion of the metropolitan city as part of the 
urban county for purposes of submitting a statement 
under section 5 and carrying out activities under this Act. 
SEC. 6. ACTIVITIES ELIGIBLE FOR ASSISTANCE. 
(a) IN GENERAL.—Activities assisted under this Act 
may include—
(1) funding additional law enforcement, fire, 
and emergency resources, including covering over-
time expenses; 
(2) purchasing and refurbishing personal pro-
tective equipment for fire, police, and emergency
personnel and acquire state-of-the-art technology to 
improve communication and streamline efforts; 
(3) improving cyber and infrastructure security 
by improving—
(A) security for water treatment plants, 
distribution systems, other water infrastructure, 
nuclear power plants, and other power infra-
structure; 
(B) security for tunnels and bridges;
(C) security for oil and gas pipelines and 
storage facilities; and 
(D) security for chemical plants and trans-
portation of hazardous substances; 
(4) assisting Local Emergency Planning Com-
mittees so that local public agencies can design, re-
view, and improve disaster response systems; 
(5) assisting communities in coordinating their 
efforts and sharing information with all relevant 
agencies involved in responding to terrorist attacks; 
(6) establishing timely notification systems that 
enable communities to communicate with each other 
when a threat emerges; 
(7) improving communication systems to pro-
vide information to the public in a timely manner
about the facts of any threat and the precautions 
the public should take; and 
(8) devising a homeland security plan, including 
determining long-term goals and short-term objec-
tives, evaluating the progress of the plan, and car-
rying out the management, coordination, and moni-
toring of activities necessary for effective planning 
implementation. 
(b) COSTS COVERED.—Grants received under section 
7 may be used to cover any costs related to the eligible 
activities listed in this section that were incurred on or 
after September 11, 2001.
SEC. 7. ALLOCATION AND DISTRIBUTION OF FUNDS. 
(a) SET-ASIDE FOR INDIAN TRIBES.—
(1) IN GENERAL.—For each fiscal year, of the 
amount appropriated for grants pursuant to section 
4(b)(1), the Secretary shall reserve 1 percent of the 
amount so appropriated for grants to Indian tribes. 
(2) SELECTION OF INDIAN TRIBES.—
(A) IN
GENERAL.—The Secretary shall 
provide for distribution of amounts under this 
paragraph to Indian tribes on the basis of a 
competition conducted pursuant to specific cri-
teria for the selection of Indian tribes to receive 
such amounts.
(B) RULEMAKING.—The criteria shall be 
contained in a regulation promulgated by the 
Secretary after notice and public comment. 
(b) ALLOCATION
TO METROPOLITAN CITIES
AND 
URBAN COUNTIES.—
(1) ALLOCATION PERCENTAGE.—Of the amount 
remaining after allocations have been made to In-
dian tribes pursuant to subsection (a), 70 percent 
shall be allocated by the Secretary to metropolitan 
cities and urban counties. 
(2) ENTITLEMENT.—Except as otherwise spe-
cifically authorized, each metropolitan city and 
urban county shall be entitled to an annual grant, 
to the extent authorized, from such allocation in an 
amount not exceeding its basic amount computed 
pursuant to subsections (c) and (d). 
(c) COMPUTATION OF AMOUNT ALLOCATED TO MET-
ROPOLITAN CITIES.—
(1) COMPUTATION
RATIOS.—The Secretary 
shall determine the amount to be allocated to each 
metropolitan city, which shall bear the same ratio to 
the allocation for all metropolitan cities as the 
weighted average of—
(A) the population of the metropolitan city 
divided by the population of all metropolitan 
cities; 
(B) the potential risk, as it pertains to 
chemical security, of the metropolitan city di-
vided by the potential risk, as it pertains to 
chemical security, of all metropolitan cities; 
(C) the proximity of the metropolitan city 
to the nearest operating nuclear power plant 
and the proximity of all metropolitan cities to 
the nearest operating nuclear power plant to 
each such city; 
(D) the proximity of the metropolitan city 
to the nearest United States land or water port 
and the proximity of all metropolitan cities to 
the nearest United States land or water port to 
each such city; 
(E) the proximity of the metropolitan city 
to the nearest international border and the 
proximity of all metropolitan cities to the near-
est international border to each such city; 
(F) the proximity of the metropolitan city 
to the nearest Disaster Medical Assistance 
Team (referred to in this subsection as 
‘‘DMAT’’) and the proximity of all metropolitan
cities to the nearest DMAT to each such city; 
and 
(G) the proximity of the metropolitan city 
to tourist attractions, Federal buildings, con-
vention centers, and other areas and facilities 
that attract large numbers of people at specific 
times. 
(2) CLARIFICATION
OF
COMPUTATION
RA-
TIOS.—
(A) RELATIVE WEIGHT OF FACTORS.—In 
determining the average of the ratios under 
paragraph (1), the ratio involving population 
shall constitute 50 percent of the formula in 
calculating the allocation and the remaining 
factors shall be equally weighted. 
(B) POTENTIAL RISK AS IT PERTAINS TO 
CHEMICAL SECURITY.—If a metropolitan city is 
within the vulnerable zone of a worst-case 
chemical release, as specified in the most recent 
risk management plans filed with the Environ-
mental Protection Agency or another instru-
ment developed by the Environmental Protec-
tion Agency or the Homeland Security Depart-
ment that captures the same information for 
the same facilities, the ratio under paragraph
of metropolitan cities that are located within 50 
miles of a United States land or water port. 
(E) PROXIMITY TO INTERNATIONAL BOR-
DERS.—If a metropolitan city is located within 
50 miles of an international border, the ratio 
under paragraph (1)(E) shall be 1 divided by 
the total number of metropolitan cities that are 
located within 50 miles of an international bor-
der. 
(F) PROXIMITY TO DISASTER MEDICAL AS-
SISTANCE TEAMS.—If a metropolitan city is lo-
cated within 50 miles of a DMAT, as organized 
by the National Disaster Medical System 
through the Department of Public Health, the 
ratio under paragraph (1)(F) shall be 1 divided 
by the total number of metropolitan cities that 
are located within 50 miles of a DMAT. 
(d) COMPUTATION
OF
AMOUNT
ALLOCATED
TO 
URBAN COUNTIES.—
(1) COMPUTATION
RATIOS.—The Secretary 
shall determine the amount to be allocated to each 
urban county, which shall bear the same ratio to the 
allocation for all urban counties as the weighted av-
erage of—
(A) the population of the urban county di-
vided by the population of all urban counties; 
(B) the potential risk, as it pertains to 
chemical security, of the urban county divided 
by the potential risk, as it pertains to chemical 
security, of all urban counties; 
(C) the proximity of the urban county to 
the nearest operating nuclear power plant and 
the proximity of all urban counties to the near-
est operating nuclear power plant to each such 
city; 
(D) the proximity of the urban county to 
the nearest United States land or water port 
and the proximity of all urban counties to the 
nearest United States land or water port to 
each such city; 
(E) the proximity of the urban county to 
the nearest international border and the prox-
imity of all urban counties to the nearest inter-
national border to each such city; and 
(F) the proximity of the urban county to 
the nearest Disaster Medical Assistance Team 
(referred to in this subsection as ‘‘DMAT’’) and 
the proximity of all urban counties to the near-
est DMAT to each such city.
(3) CLARIFICATION
OF
COMPUTATION
RA-
TIOS.—
(A) RELATIVE WEIGHT OF FACTORS.—In 
determining the average of the ratios under 
paragraph (1), the ratio involving population 
shall constitute 50 percent of the formula in 
calculating the allocation and the remaining 
factors shall be equally weighted. 
(B) POTENTIAL RISK AS IT PERTAINS TO 
CHEMICAL
SECURITY.—If a urban county is 
within the vulnerable zone of a worst-case 
chemical release, as specified in the most recent 
risk management plans filed with the Environ-
mental Protection Agency or another instru-
ment developed by the Environmental Protec-
tion Agency or the Homeland Security Depart-
ment that captures the same information for 
the same facilities, the ratio under paragraph 
(1)(B) shall be 1 divided by the total number 
of urban counties that are within such a zone. 
(C) PROXIMITY AS IT PERTAINS TO NU-
CLEAR SECURITY.—If a urban county is located 
within 50 miles of an operating nuclear power 
plant, as identified by the Nuclear Regulatory 
Commission, the ratio under paragraph (1)(C)
shall be 1 divided by the total number of urban 
counties, not to exceed 100, which are located 
within 50 miles of an operating nuclear power 
plant. 
(D) PROXIMITY AS IT PERTAINS TO PORT 
SECURITY.—If a urban county is located within 
50 miles of 1 of the 100 largest United States 
ports, as stated by the Department of Trans-
portation, Bureau of Transportation Statistics, 
United States Port Report by All Land Modes, 
or within 50 miles of one of the 30 largest 
United States water ports by metric tons and 
value, as stated by the Department of Trans-
portation, Maritime Administration, United 
States Foreign Waterborne Transportation Sta-
tistics, the ratio under paragraph (1)(D) shall 
be 1 divided by the total number of urban coun-
ties that are located within 50 miles of a United 
States land or water port. 
(E) PROXIMITY TO INTERNATIONAL BOR-
DERS.—If a urban county is located within 50 
miles of an international border, the ratio under 
paragraph (1)(E) shall be 1 divided by the total 
number of urban counties that are located with-
in 50 miles of an international border.
(F) PROXIMITY TO DISASTER MEDICAL AS-
SISTANCE TEAMS.—If a urban county is located 
within 50 miles of a DMAT, as organized by 
the National Disaster Medical System through 
the Department of Public Health, the ratio 
under paragraph (1)(F) shall be 1 divided by 
the total number of urban counties that are lo-
cated within 50 miles of a DMAT. 
(e) EXCLUSIONS.—
(1) IN
GENERAL.—In computing amounts or 
exclusions under subsection (d) with respect to any 
urban county, there shall be excluded units of gen-
eral local government located in the county the pop-
ulations that are not counted in determining the eli-
gibility of the urban county to receive a grant under 
this subsection, except that there shall be included
any independent city (as defined by the Bureau of 
the Census) which—
(A) is not part of any county; 
(B) is not eligible for a grant; 
(C) is contiguous to the urban county; 
(D) has entered into cooperation agree-
ments with the urban county which provide that 
the urban county is to undertake or to assist in 
the undertaking of essential community devel-
opment and housing assistance activities with 
respect to such independent city; and 
(E) is not included as a part of any other 
unit of general local government for purposes of 
this section. 
(2) INDEPENDENT
CITIES.—Any independent 
city that is included in any fiscal year for purposes 
of computing amounts pursuant to the preceding 
sentence shall not be eligible to receive assistance 
under subsection (i) with respect to such fiscal year. 
(f) INCLUSIONS.—
(1) LOCAL GOVERNMENT STRADDLING COUNTY 
LINE.—In computing amounts under subsection (d) 
with respect to any urban county, there shall be in-
cluded all of the area of any unit of local govern-
ment which is part of, but is not located entirely 
within the boundaries of, such urban county if—
(A) the part of such unit of local govern-
ment that is within the boundaries of such 
urban county would otherwise be included in 
computing the amount for such urban county 
under this section; and 
(B) the part of such unit of local govern-
ment that is not within the boundaries of such 
urban county is not included as a part of any
other unit of local government for the purpose 
of this section. 
(2) USE
OF
GRANT
FUNDS
OUTSIDE
URBAN 
COUNTY.—Any amount received under this section 
by an urban county described under paragraph (1) 
may be used with respect to the part of such unit 
of local government that is outside the boundaries of 
such urban county. 
(g) POPULATION.—
(1) EFFECT OF CONSOLIDATION.—Where data 
are available, the amount to be allocated to a metro-
politan city that has been formed by the consolida-
tion of 1 or more metropolitan cities within an 
urban county shall be equal to the sum of the 
amounts that would have been allocated to the urban 
county or cities and the balance of the consolidated 
government, if such consolidation had not occurred. 
(2) LIMITATION.—Paragraph (1) shall apply 
only to a consolidation that—
(A) included all metropolitan cities that re-
ceived grants under this section for the fiscal 
year preceding such consolidation and that were 
located within the urban county;
(B) included the entire urban county that 
received a grant under this section for the fiscal 
year preceding such consolidation; and 
(C) took place on or after January 1, 
2003. 
(3) GROWTH
RATE.—The population growth 
rate of all metropolitan cities defined in section 
3(a)(6) shall be based on the population of—
(A) metropolitan cities other than consoli-
dated governments the grant for which is deter-
mined under this paragraph; and 
(B) cities that were metropolitan cities be-
fore their incorporation into consolidated gov-
ernments. 
(4) ENTITLEMENT
SHARE.—For purposes of 
calculating the entitlement share for the balance of 
the consolidated government under this subsection, 
the entire balance shall be considered to have been 
an urban county. 
(h) REALLOCATION.—
(1) IN GENERAL.—Except as provided in para-
graph (2), any amounts allocated to a metropolitan 
city or an urban county pursuant to this section that 
are not received by the city or county for a fiscal 
year because of failure to meet the requirements of
subsections (a) and (b) of section 5, or that other-
wise became available, shall be reallocated in the 
succeeding fiscal year to the other metropolitan cit-
ies and urban counties in the same metropolitan 
area that certify to the satisfaction of the Secretary 
that they would be adversely affected by the loss of 
such amounts from the metropolitan area. 
(2) RATIO.—The amount of the share of funds 
reallocated under this paragraph for any metropoli-
tan city or urban county shall bear the same ratio 
to the total of such reallocated funds in the metro-
politan area as the amount of funds awarded to the 
city or county for the fiscal year in which the reallo-
cated funds become available bears to the total 
amount of funds awarded to all metropolitan cities 
and urban counties in the same metropolitan area 
for that fiscal year. 
(3) TRANSFER.—Notwithstanding paragraphs 
(1) and (2), the Secretary may upon request trans-
fer responsibility to any metropolitan city for the ad-
ministration of any amounts received, but not obli-
gated, by the urban county in which such city is lo-
cated if—
(A) such city was an included unit of gen-
eral local government in such county prior to
the qualification of such city as a metropolitan 
city; 
(B) such amounts were designated and re-
ceived by such county for use in such city prior 
to the qualification of such city as a metropoli-
tan city; and 
(C) such city and county agree to such 
transfer of responsibility for the administration 
of such amounts. 
(i) ALLOCATION TO STATES ON BEHALF OF NON-
QUALIFYING COMMUNITIES.—
(1) IN GENERAL.—Of the amount appropriated 
pursuant to section 4 that remains after allocations 
pursuant to subsections (a) and (b), 30 percent shall 
be allocated among the States for use in nonquali-
fying communities. 
(2) ALLOCATION RATIO.—
(A) POPULATION-BASED.—The allocation 
for each State shall be based on the population 
of that State, relative to the populations of all 
States, excluding the population of qualifying 
communities. 
(B) PRO-RATA
REDUCTION.—The Sec-
retary shall make a pro rata reduction of each 
amount allocated to the nonqualifying commu-
nities in each State under subparagraph (A) so 
that the nonqualifying communities in each 
State will receive the same percentage of the 
total amount available under this subsection as 
the percentage that such communities would 
have received if the total amount available had 
equaled the total amount allocated under sub-
paragraph (A). 
(3) DISTRIBUTION.—
(A) 
IN
GENERAL.—Amounts 
allocated 
under this subsection shall be distributed to 
units of general local government located in 
nonqualifying areas of the State to carry out 
activities in accordance with the provisions of 
this Act—
(i) by a State that has elected, in such 
manner and at such time as the Secretary 
shall prescribe, to distribute such amounts 
consistent with the statement submitted 
under section 5(a); or 
(ii) by the Secretary, if the State has 
not elected to distribute such amounts. 
(B) CERTIFICATION.—Before a State may 
receive or distribute amounts allocated under 
this subsection, the State must certify that—
(i) with respect to units of general 
local government in nonqualifying areas, 
the State—
(I) provides, or will provide, tech-
nical assistance to units of general 
local government in connection with 
homeland security initiatives; 
(II) will not refuse to distribute 
such amounts to any unit of general 
local government on the basis of the 
particular eligible activity selected by 
such unit of general local government 
to meet its homeland security objec-
tives, except that this clause may not 
be considered to prevent a State from 
establishing priorities in distributing 
such amounts on the basis of the ac-
tivities selected; and 
(III) has consulted with local 
elected officials from among units of 
general local government located in 
nonqualifying areas of that State in 
determining the method of distribu-
tion of funds required by subpara-
graph (A); and
(ii) each unit of general local govern-
ment to be distributed funds will be re-
quired to identify its homeland security ob-
jectives, and the activities to be undertaken 
to meet such objectives. 
(4) MINIMUM AMOUNT.—Each State shall be 
allocated in each fiscal year authorized under this 
Act and under this section not less than 0.75 per-
cent of the total amount appropriated in one fiscal 
year for grants made available to States under this 
section, except that the American Samoa, Guam, 
and the Northern Mariana Islands shall each be allo-
cated 0.25 percent. 
(5) ADMINISTRATION.—
(A) IN GENERAL.—If a State receives and 
distributes amounts under paragraph (1), the 
State shall be responsible for the administration 
of funds so distributed. The State shall pay for 
all administrative expenses incurred by the 
State in carrying out its responsibilities under 
this Act, except that from the amounts received 
for distribution in nonqualifying areas, the 
State may deduct an amount to cover such ex-
penses and its administrative expenses not to 
exceed the sum of $150,000 plus 50 percent of
any such expenses under this Act in excess of 
$150,000. Amounts deducted in excess of 
$150,000 shall not exceed 2 percent of the 
amount received under paragraph (1). 
(B) DISTRIBUTION.—If the Secretary dis-
tributes amounts under paragraph (1), the dis-
tribution shall be made in accordance with de-
terminations of the Secretary pursuant to state-
ments submitted and the other requirements of 
section 5 (other than subsection (c)) and in ac-
cordance with regulations and procedures pre-
scribed by the Secretary. 
(C) REALLOCATION.—
(i) 
FAILURE
TO
COMPLY.—Any 
amounts allocated for use in a State under 
paragraph (1) that are not received by the 
State for any fiscal year because of failure 
to meet the requirements of subsection (a) 
or (b) of section 5 shall be added to 
amounts allocated to all States under para-
graph (1) for the succeeding fiscal year. 
(ii) CLOSEOUT.—Any amounts allo-
cated for use in a State under paragraph 
(1) that become available as a result of the 
closeout of a grant made by the Secretary
under this section in nonqualifying areas of 
the State shall be added to amounts allo-
cated to the State under paragraph (1) for 
the fiscal year in which such amounts be-
come available. 
(6) SINGLE UNIT.—Any combination of units of 
general local governments may not be required to 
obtain recognition by the Secretary pursuant to sec-
tion 3(2) to be treated as a single unit of general 
local government for purposes of this subsection. 
(7) DEDUCTION.—From the amounts received 
under paragraph (1) for distribution in nonquali-
fying areas, the State may deduct an amount, not to 
exceed 1 percent of the amount so received, to pro-
vide technical assistance to local governments. 
(8) APPLICABILITY.—Any activities conducted 
with amounts received by a unit of general local gov-
ernment under this subsection shall be subject to the 
applicable provisions of this Act and other Federal 
law in the same manner and to the same extent as 
activities conducted with amounts received by a unit 
of general local government under subsection (a). 
(j) QUALIFICATIONS
AND DETERMINATIONS.—The 
Secretary may fix such qualification or submission dates 
as he determines are necessary to permit the computations
cated to States, regional cooperations, and local commu-
nities, in accordance with subsection (b) for—
(1) homeland defense planning within the 
States; 
(2) homeland defense planning within the re-
gions; 
(3) the development and maintenance of State-
wide training facilities and homeland security best-
practices clearinghouses; and 
(4) the development and maintenance of com-
munications systems that can be used between and 
among first responders, including law enforcement, 
fire, and emergency medical personnel. 
(b) USE OF FUNDS.—Of the amount allocated under 
subsection (a)—
(1) $325,000,000 shall be used by the States 
for homeland defense planning and coordination 
within each State; 
(2) $50,000,000 shall be used by regional co-
operations and regional, multistate, or intrastate au-
thorities for homeland defense planning and coordi-
nation within each region; 
(3) $50,000,000 shall be used by the States to 
develop and maintain Statewide training facilities 
and best-practices clearinghouses; and
(4) $75,000,000 shall be used by the States 
and local communities to develop and maintain com-
munications systems that can be used between and 
among first responders at the State and local level, 
including law enforcement, fire, and emergency per-
sonnel. 
(c) ALLOCATIONS TO STATES.—
(1) IN GENERAL.—Funds under this section to 
be awarded to States shall be allocated among the 
States based upon the population for each State rel-
ative to the populations of all States. 
(2) MINIMUM AMOUNT PROVISION.—The provi-
sion in section 7(i)(4) relating to a minimum 
amount shall apply to funds awarded under this sec-
tion to States. 
(3) LOCAL
COMMUNICATIONS
SYSTEMS.—Not 
less than 30 percent of the funds awarded under 
subsection (b)(4) shall be used for the development 
and maintenance of local communications systems. 
(d) ALLOCATIONS TO REGIONAL COOPERATIONS.—
Funds under this section to be awarded to regional cooper-
ations and regional, multistate, or intrastate authorities, 
shall be allocated among the regional cooperations based 
upon the population of the areas covered by the cooper-
ations.
SEC. 9. NONDISCRIMINATION IN PROGRAMS AND ACTIVI-
TIES. 
No person in the United States shall on the ground 
of race, color, national origin, religion, or sex be excluded 
from participation in, be denied the benefits of, or be sub-
jected to discrimination under any program or activity 
funded in whole or in part with funds made available 
under this Act. Any prohibition against discrimination on 
the basis of age under the Age Discrimination Act of 1975 
(42 U.S.C. 6101 et seq.) or with respect to an otherwise 
qualified handicapped individual as provided in section 
504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) 
shall also apply to any such program or activity. 
SEC. 10. REMEDIES FOR NONCOMPLIANCE WITH REQUIRE-
MENTS. 
If the Secretary finds after reasonable notice and op-
portunity for hearing that a recipient of assistance under 
this Act has failed to comply substantially with any provi-
sion of this Act, the Secretary shall—
(1) terminate payments to the recipient under 
this Act; 
(2) reduce payments to the recipient under this 
Act by an amount equal to the amount of such pay-
ments which were not expended in accordance with 
this Act; or
(3) limit the availability of payments under this 
Act to programs, projects, or activities not affected 
by such failure to comply. 
SEC. 11. REPORTING REQUIREMENTS. 
(a) IN GENERAL.—Not later than 180 days after the 
end of each fiscal year in which assistance is awarded 
under this Act, the Secretary shall submit to Congress a 
report which shall contain—
(1) a description of the progress made in ac-
complishing the objectives of this Act; 
(2) a summary of the use of such funds during 
the preceding fiscal year; and 
(3) a description of the activities carried out 
under section 7. 
(b) REPORTS TO SECRETARY.—The Secretary is au-
thorized to require recipients of assistance under this Act 
to submit to such reports and other information as may 
be necessary in order for the Secretary to comply with sub-
section (a). 
SEC. 12. CONSULTATION BY ATTORNEY GENERAL. 
In carrying out the provisions of this Act including 
the issuance of regulations, the Secretary shall consult 
with the Attorney General and other Federal departments 
and agencies administering Federal grant-in-aid pro-
grams.
SEC. 13. INTERSTATE AGREEMENTS OR COMPACTS; PUR-
POSES. 
The consent of the Congress is hereby given to any 
2 or more States to enter into agreements or compacts, 
not in conflict with any law of the United States, for coop-
erative effort and mutual assistance in support of home-
land security planning and programs carried out under 
this Act as they pertain to interstate areas and to localities 
within such States, and to establish such agencies, joint 
or otherwise, as they may deem desirable for making such 
agreements and compacts effective. 
SEC. 14. MATCHING REQUIREMENTS; SUSPENSION OF RE-
QUIREMENTS 
FOR 
ECONOMICALLY 
DIS-
TRESSED AREAS. 
(a) REQUIREMENT.—Grant recipients shall con-
tribute from funds, other than those received under this 
Act, 10 percent of the total funds received under this Act. 
Such funds shall be used in accordance with the grantee’s 
statement of homeland security objectives. 
(b) ECONOMIC DISTRESS.—Grant recipients that are 
deemed economically distressed shall be waived from the 
matching requirement set forth in this section.
Æ