nomic development activities, the Secretary may convene
meetings with Federal agencies, State and local govern-
ments, economic development districts, Indian tribes, and
other appropriate planning and development organiza-
tions.’’.
TITLE II—GRANTS FOR PUBLIC
WORKS AND ECONOMIC DE-
VELOPMENT
SEC. 201. GRANTS FOR PLANNING.
Section 203(d) (42 U.S.C. 3143(d)) is amended—
(1) in paragraph (1) by inserting ‘‘, to the max-
imum extent practicable,’’ after ‘‘developed’’ the sec-
ond place it appears;
(2) by striking paragraph (3) and inserting the
following:
‘‘(3) COORDINATION.—Before providing assist-
ance for a State plan under this section, the Sec-
retary shall consider the extent to which the State
will consider local and economic development district
plans.’’; and
(3) in paragraph (4)—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (C);
(B) by redesignating subparagraph (D) as
subparagraph (E); and
(C) by adding after subparagraph (C) the
following:
‘‘(D) assist in carrying out a State’s work-
force investment strategy; and’’.
SEC. 202. COST SHARING.
(a) FEDERAL SHARE.—Section 204(a) (42 U.S.C.
3144(a)) is amended to read as follows:
‘‘(a) FEDERAL SHARE.—The Secretary shall issue
regulations to establish the Federal share of the cost of
projects carried out under this title based on the relative
needs of the areas in which the projects will be located.
Except as provided in subsection (c), the Federal share
of the cost of any project carried out under this title shall
not exceed 80 percent.’’.
(b) NON-FEDERAL
SHARE.—Section 204(b) (42
U.S.C. 3144(b)) is amended by inserting ‘‘assumptions of
debt,’’ after ‘‘equipment,’’.
(c) INCREASE IN FEDERAL SHARE.—Section 204 (42
U.S.C. 3144) is amended by adding at the end the fol-
lowing:
‘‘(c) INCREASE IN FEDERAL SHARE.—
‘‘(1) INDIAN TRIBES.—In the case of a grant to
an Indian tribe for a project under this title, the
Secretary may increase the Federal share above the
percentage specified in subsection (a) up to 100 per-
cent of the cost of the project.
‘‘(2) CERTAIN
STATES, POLITICAL
SUBDIVI-
SIONS, AND
NONPROFIT
ORGANIZATIONS.—In the
case of a grant to a State, or a political subdivision
of a State, that the Secretary determines has ex-
hausted its effective taxing and borrowing capacity,
or in the case of a grant to a nonprofit organization
that the Secretary determines has exhausted its ef-
fective borrowing capacity, the Secretary may in-
crease the Federal share above the percentage speci-
fied in subsection (a) up to 100 percent of the cost
of the project.’’.
(d) PLANNING GRANTS.—Section 204 (42 U.S.C.
3144) is further amended by adding at the end the fol-
lowing:
‘‘(d) PLANNING
GRANTS.—Notwithstanding sub-
section (a), the Federal share of the costs of planning ac-
tivities under section 203 shall be at least 65 percent and
not more than 80 percent.’’.
SEC. 203. SUPPLEMENTARY GRANTS.
(a) IN
GENERAL.—Section 205(b) (42 U.S.C.
3145(b)) is amended to read as follows:
‘‘(b) SUPPLEMENTARY GRANTS.—Subject to sub-
section (c), in order to assist eligible recipients in taking
advantage of designated Federal grant programs, on the
application of an eligible recipient, the Secretary may
make a supplementary grant for a project for which the
recipient is eligible but for which the recipient cannot pro-
vide the required non-Federal share because of the recipi-
ent’s economic situation.’’.
(b) 
REQUIREMENTS
APPLICABLE
TO
SUPPLE-
MENTARY GRANTS.—Section 205(c) (42 U.S.C. 3145(c))
is amended—
(1) by striking paragraphs (1) and (2) and in-
serting the following:
‘‘(1) AMOUNT OF SUPPLEMENTARY GRANTS.—
The share of the project cost supported by a supple-
mentary grant under this section may not exceed the
applicable Federal share under section 204.
‘‘(2) FORM OF SUPPLEMENTARY GRANTS.—The
Secretary shall make supplementary grants by—
‘‘(A) the payment of funds made available
under this Act to the heads of the Federal
agencies responsible for carrying out the appli-
cable Federal programs; or
‘‘(B) the award of funds under this Act,
which will be combined with funds transferred
from other Federal agencies in projects admin-
istered by the Secretary.’’; and
(2) by striking paragraph (4).
SEC. 204. REGULATIONS ON RELATIVE NEEDS AND ALLOCA-
TIONS.
Section 206 (42 U.S.C. 3146) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(1)(B);
(2) by striking the period at the end of para-
graph (2) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(3) grants made under this title promote job
creation and will have a high probability of meeting
or exceeding applicable performance requirements
established in connection with the grants.’’.
SEC. 205. GRANTS FOR TRAINING, RESEARCH, AND TECH-
NICAL ASSISTANCE.
(a) IN GENERAL.—Section 207(a)(2) (42 U.S.C.
3147(a)(2)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (F);
(2) by redesignating subparagraph (G) as sub-
paragraph (H); and
(3) by inserting after subparagraph (F) the fol-
lowing:
‘‘(G) studies that evaluate the effectiveness
of coordinating projects funded under this Act
with projects funded under other Acts; and’’.
(b) COOPERATION REQUIREMENT.—Section 207(a)
(42 U.S.C. 3147(a)) is amended by adding at the end the
following:
‘‘(4) COOPERATION
REQUIREMENT.—In the
case of a project assisted under this section that is
national or regional in scope, the Secretary may
waive the provision in section 3(4)(A)(vi) requiring
a nonprofit organization or association to act in co-
operation with officials of a political subdivision of
a State.’’.
SEC. 206. PREVENTION OF UNFAIR COMPETITION.
Section 208 (42 U.S.C. 3148), and the item relating
to section 208 in the table of contents contained in section
1(b), are repealed.
SEC. 207. GRANTS FOR ECONOMIC ADJUSTMENT.
(a) DIRECT EXPENDITURE OR REDISTRIBUTION BY
RECIPIENT.—Section 209(d) (42 U.S.C. 3149(d)) is
amended by striking ‘‘an eligible recipient’’ each place it
appears and inserting ‘‘a recipient’’.
(b) SPECIAL PROVISIONS RELATING TO REVOLVING
LOAN FUND GRANTS.—Section 209 (42 U.S.C. 3149) is
amended by adding at the end the following: