(1) IN GENERAL.—Funds appropriated to the 
State and Community Dynamism Fund shall be allo-
cated to States. 
(2) FORMULA.— 
(A) IN GENERAL.—The Secretary of the 
Treasury shall determine the allocation by allo-
cating Federal funds among the States based 
on the proportion of prime working age adults 
in each State bears to the total of prime work-
ing age adults for all the States. 
(B) MINIMUM
ALLOCATION.—The Sec-
retary shall adjust the allocations under sub-
paragraph (A) for each State to the extent nec-
essary to ensure that no State receives less than 
0.9 percent of the Federal funds. 
(3) REQUIREMENT.—To receive an allocation 
under paragraph (2), a State shall certify that the 
State will use funds to— 
(A) build capacity in high-poverty, under-
banked, rural, and otherwise underserved com-
munities; 
(B) advance investment in minority-, 
women, and veteran-owned businesses; 
(C) address workforce development in stra-
tegic sectors of the State’s economy; and 
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(D) align priorities to support affordably 
priced housing. 
(4) SUBALLOCATION.—A State may spend 
funds allocated under this subsection directly or sub-
allocate the funds to other entities, including units 
of general local government and nonprofits. 
(5) ELIGIBLE
USES.—Funds allocated under 
this subsection shall be used for any eligible use in 
a low-income community, as defined in section 
45D(e) of the Internal Revenue Code of 1986, in-
cluding for— 
(A) operating support and community ca-
pacity building, with priority to given to oper-
ating support and community capacity building 
in qualified opportunity zones, including— 
(i) personnel to support activities, in-
cluding coordination, education, and in-
vestment; 
(ii) community-level capacity building, 
training, and strategic planning; 
(iii) outreach, technical assistance, 
and professional services to underserved 
businesses and underserved opportunity 
zone fund managers; 
(B) high-impact projects, including— 
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(i) predevelopment costs associated 
with individual Qualified Opportunity Zone 
projects; and 
(ii) risk mitigation for qualified oppor-
tunity zone funds; and 
(C) administrative costs, not to exceed 3 
percent of the funds allocated. 
(6) ELIGIBLE
PROJECTS.—Funds used for 
high-impact project activities, as described in para-
graph (5)(B), shall only be used for— 
(A) business with less than 200 employees; 
(B) projects that provide community goods 
or services, including health care, social serv-
ices, healthy food access, education, broadband, 
and culture; or 
(C) affordable housing with at least 50 
percent of the units that are affordable to fami-
lies making less than 80 percent of area median 
family income. 
(7) PRIORITIZATION.—A State that receives 
funds under this section must prioritize activities 
that— 
(A) promote investment in projects that 
substantially support minorities, as defined in 
section 1204(c) of the Financial Institutions 
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Reform, Recovery, and Enforcement Act of 
1989 (12 U.S.C. 1811 note), or other targeted 
populations, as defined in section 103 of the 
Riegle Community Development and Regulatory 
Improvement Act of 1994 (12 U.S.C. 4702); 
and 
(B) have demonstrated meaningful engage-
ment with community stakeholders. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated $1,000,000,000 to carry out 
this section. 
(d) GAO AUDIT.—The Comptroller General of the 
United States shall perform an annual audit of the Fund 
and submit to the appropriate committees of Congress a 
report containing the results of the audit. 
(e) ANNUAL REPORT.—Not later than March 31 of 
each year, each State receiving funds under this title shall 
submit to the Secretary a report on the performance of 
the State and participating entities in the State that in-
cludes— 
(1) an accounting of the expenditure of funds 
received by the State, including on administrative or 
indirect costs; 
(2) information on the number and characteris-
tics of participants served under this title; and 
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(3) a summary describing the training, capac-
ity-building, and technical assistance offered by the 
State and participating entities. 
(f) DEFINITIONS.—In this section: 
(1) PRIME
WORKING
AGE
ADULTS
NOT
EM-
PLOYED.—The term ‘‘prime working age adults not 
employed’’ means, with respect to a State, the share 
of the adult population aged 25 to 54 that was not 
employed for the most recent year for which data is 
available. 
(2) STATE.—The term ‘‘State’’ includes the 
District of Columbia, any territory or possession of 
the United States, and any Indian Tribe. 
Æ 
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