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(A) in paragraph (1)—
(i) in subparagraph (A), by striking
‘‘The Secretary’’ and all that follows
through the period and inserting the fol-
lowing: ‘‘After reserving funds under sub-
paragraphs (E) and (F), the Secretary shall
allot the remainder of the sums appro-
priated for each fiscal year under this sec-
tion among the agencies designated under
subsection (c) within the States (referred to
individually in this subsection as a ‘des-
ignated agency’) on the basis of relative
population of each State, except that no
such 
agency 
shall 
receive 
less 
than
$50,000.’’;
(ii) in subparagraph (B), by inserting
‘‘the designated agencies located in’’ after
‘‘each to’’;
(iii) in subparagraph (D)(i)—
(I) by inserting ‘‘the designated
agencies located in’’ after ‘‘$100,000
for’’; and
(II) by inserting ‘‘the designated
agencies located in’’ after ‘‘$45,000
for’’; and
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(iv) by adding at the end the following:
‘‘(E)(i) For any fiscal year for which the amount ap-
propriated to carry out this section equals or exceeds
$13,000,000, the Secretary shall reserve funds appropriated
under this section to make a grant to the protection and
advocacy system serving the American Indian Consortium
to provide client assistance services in accordance with this
section. The amount of such a grant shall be the same
amount as is provided to a territory under subparagraph
(B), as increased under clauses (i) and (ii) of subparagraph
(D).
‘‘(ii) In this subparagraph:
‘‘(I) The term ‘American Indian Consortium’
has the meaning given the term in section 102 of the
Developmental Disabilities Assistance and Bill of
Rights Act of 2000 (42 U.S.C. 15002).
‘‘(II) The term ‘protection and advocacy system’
means a protection and advocacy system established
under subtitle C of title I of the Developmental Dis-
abilities Assistance and Bill of Rights Act of 2000 (42
U.S.C. 15041 et seq.).
‘‘(F) For any fiscal year for which the amount appro-
priated to carry out this section equals or exceeds
$14,000,000, the Secretary shall reserve not less than 1.8
percent and not more than 2.2 percent of such amount to
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provide a grant for training and technical assistance for
the programs established under this section. Such training
and technical assistance shall be coordinated with activities
provided under section 509(c)(1)(A).’’; and
(B) in paragraph (2)—
(i) by striking ‘‘State’’ each place such
term appears and inserting ‘‘designated
agency’’; and
(ii) by striking ‘‘States’’ each place
such term appears and inserting ‘‘des-
ignated agencies’’;
(4) in subsection (f), by striking ‘‘State’’ and in-
serting ‘‘agency designated under subsection (c)’’;
(5) in subsection (g)(1), by striking ‘‘State’’ and
inserting ‘‘State in which the program is located’’;
and
(6) in subsection (h), by striking ‘‘fiscal years
1999 through 2003’’ and inserting ‘‘fiscal years 2006
through 2011’’.
SEC. 421. INCENTIVE GRANTS.
Part B of title I of the Rehabilitation Act of 1973 (29
U.S.C. 730 et seq.) is amended by adding at the end the
following:
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‘‘SEC. 113. INCENTIVE GRANTS.
‘‘(a) AUTHORITY.—The Commissioner is authorized to
make incentive grants to States that, based on the criteria
established under subsection (b)(1), demonstrate—
‘‘(1) a high level of performance; or
‘‘(2) a significantly improved level of perform-
ance in a reporting period as compared to the pre-
vious reporting period or periods.
‘‘(b) CRITERIA.—
‘‘(1) ESTABLISHMENT.—Not later than 180 days
after the date of enactment of this section, the Com-
missioner shall establish, and publish in the Federal
Register, criteria for making grant awards under sub-
section (a).
‘‘(2) DEVELOPMENT
AND
EVALUATION
STAND-
ARDS.—The criteria established under paragraph (1)
shall—
‘‘(A) be developed with input from des-
ignated State agencies and other vocational reha-
bilitation stakeholders, including vocational re-
habilitation consumers and consumer organiza-
tions (including advocacy organizations); and
‘‘(B) be based upon the evaluation stand-
ards and performance indicators established
under section 106 and other performance-related
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measures that the Commissioner determines to be
appropriate.
‘‘(c) USE OF FUNDS.—A State that receives a grant
under subsection (a) shall use the grant funds for any ap-
proved activities in the State’s State plan submitted under
section 101.
‘‘(d) NO NON-FEDERAL SHARE REQUIREMENT.—The
provisions of sections 101(a)(3) and 111(a)(2) shall not
apply to this section.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this section such
sums as may be necessary for each of fiscal years 2006
through 2011.’’.
SEC. 
422. 
VOCATIONAL 
REHABILITATION 
SERVICES
GRANTS.
Section 121 of the Rehabilitation Act of 1973 (29
U.S.C. 741) is amended—
(1) in subsection (a), in the first sentence, by in-
serting ‘‘, consistent with such individuals’ strengths,
resources, priorities, concerns, abilities, capabilities,
interests, and informed choice, so that such individ-
uals may prepare for, and engage in, gainful employ-
ment’’ before the period at the end; and
(2) in subsection (b)—
(A) in paragraph (1)—