(6) An individual employed in a job funded 
under this Act who terminates that employment in 
order to accept other employment, and who subse-
quently is terminated from that other employment 
without fault on the individual’s part, shall be eligi-
ble for immediate reemployment in a job funded 
under this Act. 
(7) In hiring individuals for positions funded 
under this Act, or using funds under this Act to con-
tinue to provide employee compensation for existing 
employees, an employer shall comply with all appli-
cable Federal, State, and local laws, personnel poli-
cies and regulations, and collective bargaining agree-
ments, as if such individual was hired, or such em-
ployee compensation were provided, without assist-
ance under this Act. 
(8) An individual hired for a position funded 
under this Act shall— 
(A) be considered an employee of the em-
ployer, by which such individual was hired; and 
(B) receive the same employee compensa-
tion, have the same rights and responsibilities 
and job classifications, and be subject to the 
same job standards, employer policies, and col-
lective bargaining agreements as if such indi-
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vidual were hired without assistance under this 
Act. 
(g) AWARD OF GRANTS.— 
(1) SELECTION
CRITERIA.—In selecting a 
project to receive funding for employing the individ-
uals described in subsection (f)(4), a grant recipient 
shall consider— 
(A) the input of all participants in a pro-
posed project, including labor organizations, 
community organizations, and employers; 
(B) the needs of the community intended 
to benefit from such project; 
(C) the long-term goals and short-term ob-
jectives to address such needs; and 
(D) any recommendations for programs 
and activities developed to meet such needs. 
(2) PRIORITY GIVEN TO CERTAIN PROJECTS.— 
A grant recipient under this section shall give pri-
ority to projects that— 
(A) serve areas with the greatest level of 
economic need, determined for each such area 
by— 
(i) the unemployment rate; 
(ii) the rate of poverty; 
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(iii) the number of census tracts with 
concentrated poverty; 
(iv) the lowest median income; 
(v) the percentage of vacant and 
abandoned properties; 
(vi) the percentage of home fore-
closures; and 
(vii) the indicators of poor resident 
health, including high rates of chronic dis-
ease, infant mortality, and life expectancy; 
(B) integrate education and job skills 
training, including basic skills instruction and 
secondary education services; 
(C) coordinate to the maximum extent fea-
sible with pre-apprenticeship and apprenticeship 
programs; and 
(D) provide jobs in sectors where job 
growth is most likely, as determined by the Sec-
retary, and in which career advancement oppor-
tunities exist to maximize long-term, sustain-
able employment for individuals after employ-
ment funded under this Act ends. 
(h) ALLOCATION OF GRANTS.— 
(1) GRANTS FOR INDIAN TRIBES AND DEPOSITS 
INTO DISCRETIONARY FUND.—Not more than 5 per-
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cent of the funds available in the Trust Fund for ac-
tivities under this section for any fiscal year shall be 
reserved for grants to Indian tribes and for deposit 
into a discretionary fund established by the Sec-
retary for national demonstration projects and 
multi-jurisdictional projects. 
(2) GRANTS TO STATES.—Not more than 30 
percent of the funds available in the Trust Fund for 
activities under this section for any fiscal year shall 
be allocated to States to distribute to units of gen-
eral local government that do not qualify for funds 
under paragraph (3). 
(3) GRANTS
TO
UNITS
OF
GENERAL
LOCAL 
GOVERNMENT.—Grant funds that are not reserved 
under paragraphs (1) and (2) shall be allocated to 
metropolitan cities and urban counties using the for-
mula under section 106(b) of the Housing and Com-
munity Development Act of 1974 (42 U.S.C. 
5306(b)). 
(i) REPORTS.— 
(1) REPORTS
BY
GRANT
RECIPIENTS.—Not 
later than 90 days after the last day of each fiscal 
year in which assistance under this section is fur-
nished, a recipient of a grant under this section shall 
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submit to the Secretary a report containing the fol-
lowing: 
(A) A description of the progress made in 
accomplishing the objectives of this chapter. 
(B) A summary of the use of the grant 
during the preceding fiscal year. 
(C) For units of general local government, 
a listing of each entity receiving funds and the 
amount of such grants, as well as a brief sum-
mary of the projects funded for each such unit, 
the extent of financial participation by other 
public or private entities, and the impact on 
employment and economic activity of such 
projects during the previous fiscal year. 
(D) For States, a listing of each unit of 
general local government receiving funds and 
the amount of such grants, as well as a brief 
summary of the projects funded for each such 
unit, the extent of financial participation by 
other public or private entities, and the impact 
on employment and economic activity of such 
projects during the previous fiscal year. 
(E) The amount of money received and ex-
pended during the fiscal year. 
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(F) The number of individuals assisted 
under the grant whose household income is low- 
income, very low-income, or extremely low-in-
come (as such terms are used for purposes of 
the Housing Act of 1937 and the regulations 
thereunder (42 U.S.C. 1437 et seq.)). 
(G) The amount expended on administra-
tive costs during the fiscal year. 
(2) REPORT
TO
CONGRESS.—At least once 
every 6 months, the Secretary shall submit to Con-
gress a report on the use of grants awarded under 
this section and any progress in job creation. 
(j) ESTABLISHMENT
OF
ARBITRATION
PROCE-
DURE.— 
(1) IN GENERAL.—Each grant recipient under 
this section shall agree to the arbitration procedure 
described in this subsection to resolve disputes de-
scribed in subsections (k) and (l). 
(2) WRITTEN GRIEVANCES.— 
(A) IN GENERAL.—If an employee (or an 
employee representative) wishes to use the arbi-
tration procedure described in this subsection, 
such party shall file a written grievance within 
the time period required under subsection (k) 
or (l), as applicable, simultaneously with the 
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