‘‘(B) In the case of a city for which the
rate determined under paragraph (1) is more
than 25 cents per dollar of amounts allocated
under subsection (a), then such rate shall be
deemed to be equal to 25 cents per dollar.
‘‘(d) STATE MATCHING FUNDS.—
‘‘(1) IN GENERAL.—Each State in which a city
receiving amounts from a grant under subsection (a)
is located shall provide amounts for each dollar allo-
cated under subsection (a) at a rate in accordance
with the following formula:
.15(R)
1¥.15(R)
‘‘(2) DETERMINATION OF TERM ‘R’.—For pur-
poses of paragraph (1) (and subject to paragraph
(5)), the term ‘R’ (referred to as the ‘State resource
index’) means the number equal to the quotient of—
‘‘(A) the term ‘F’, as determined under
paragraph (3); divided by
‘‘(B) the term ‘V’, as determined under
paragraph (4).
‘‘(3) DETERMINATION OF TERM ‘F’.—
‘‘(A) For purposes of paragraph (2)(A),
the term ‘F’ means the amount equal to the
amount determined in accordance with the fol-
lowing formula:
Y
G
‘‘(B) For purposes of subparagraph (A),
the term ‘G’ means the sum of the respective
terms ‘Y’ determined for the States under sub-
paragraph (C).
‘‘(C) For purposes of subparagraph (A),
the term ‘Y’ means the amount equal to the
quotient of—
‘‘(i) an amount equal to the most re-
cent 3-year average of the total taxable re-
sources of the State, as determined by the
Secretary of the Treasury; divided by
‘‘(ii) the State cost index, as deter-
mined for such State under subparagraph
(D).
‘‘(D) 
For 
purposes 
of 
subparagraph
(C)(ii), the term ‘State cost index’ means the
number equal to the number determined in ac-
cordance with the following formula:
.5 + .5(W)
‘‘(E) For purposes of subparagraph (D),
the term ‘W’ (referred to as the ‘State wage
index’) means the amount equal to the quotient
of—
‘‘(i) an amount equal to the most re-
cent 3-year average of the annual private
industry wages per employee of the State,
as determined by the Secretary of Labor;
divided by
‘‘(ii) an amount equal to the most re-
cent 3-year average of the annual private
industry wages per employee for the Unit-
ed States, as determined by the Secretary
of Labor.
‘‘(4) DETERMINATION OF TERM ‘V’.—For pur-
poses of paragraph (2)(B), the term ‘V’ means the
amount equal to the quotient of—
‘‘(A) the term ‘Z’, which is equal to the
total population of the State, as determined by
the Secretary using the most recent data that
is available from the Secretary of Commerce
pursuant to the decennial census and pursuant
to reasonable estimates by such Secretary of
changes occurring in the data in the ensuing
period; divided by
‘‘(B) an amount equal to the sum of the
respective terms ‘Z’ determined for each of the
States under subparagraph (A).
‘‘(5) SPECIAL RULE.—In the case of a State for
which the rate determined under paragraph 1 is
more than 25¢ per dollar of amounts allocated under
subsection (a), then such rate shall be deemed to be
equal to 25¢ per dollar.
‘‘(e) ELIGIBLE
ACTIVITIES.—A city shall use
amounts from a grant under subsection (a) only to—
‘‘(1) provide financial incentives for business
creation, retention, and expansion in such city;
‘‘(2) provide technical assistance to individuals
seeking to establish small businesses in such city;
and
‘‘(3) make improvements to the infrastructure
of such city, including—
‘‘(A) land clearing activities;
‘‘(B) the establishment of access roads,
parking lots, and industrial parks;
‘‘(C) assistance to demolish or renovate
abandoned buildings;
‘‘(D) improvements to sewage treatment
plants; and
‘‘(E) environmental cleanup of contami-
nated sites with significant potential for eco-
nomic development for commercial, residential,
industrial, or recreational purposes.
‘‘(f) PROHIBITED ACTIVITIES.—A city may not use
amounts from a grant under subsection (a) to—
‘‘(1) provide loans of any kind;
‘‘(2) provide compensation to a city employee;
‘‘(3) pay interest on a debt incurred by the city;
‘‘(4) establish, promote, or retain a gambling
activity;
‘‘(5) repair, maintain, or construct residential
housing;
‘‘(6) provide transportation, meals, accommoda-
tions, petty cash, personal items, and entertainment
expenses to any individual; and
‘‘(7) provide for any other activity incompatible
with the grant program established under this sec-
tion, as determined by the Secretary.
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated $2,500,000,000 for fis-
cal year 1994, $4,000,000,000 for fiscal year 1995, and
$5,000,000,000 for each of the fiscal years 1996 through
1998, for the purpose of making allocations to eligible
cities under subsection (a).’’.