income of the National Health Care Trust Fund 
thereafter, with a view— 
(A) to maintaining as nearly as practicable 
a uniform rate of expenditure for personal 
health-service benefits in successive fiscal years, 
except for appropriated allowance on account of 
anticipated increase in the personnel and facili-
ties available to furnish personal health-service 
benefits and on account of reduction or with-
drawal of restrictions or limitations pursuant to 
section 102(b); and 
(B) to establishing and maintaining a re-
serve in the Trust Fund adequate to meet 
emergency demands in accordance with sub-
section (d) and adequate to maintain the rate 
of expenditure or to permit its gradual reduc-
tion if the income of the Trust Fund should fall 
below the income which had been anticipated. 
(b) INITIAL STATE ALLOTMENTS.— 
(1) IN GENERAL.—In accordance with regula-
tions prescribed after consultation with the State 
agencies, the Board, prior to the beginning of each 
fiscal year shall allot to the several States, for the 
fiscal years 2008, 2009, and 2010, 90 percent, and 
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for each fiscal year thereafter 95 percent of each 
sum determined pursuant to subsection (a). 
(2) BASIS OF ALLOTMENTS.—Such regulations 
shall provide for allotments on the basis of— 
(A) the population in the several States eli-
gible for benefits under this Act; 
(B) professional and other personnel, hos-
pitals, and other facilities, and supplies and 
commodities, to be available in the several 
States in the provision of such benefits; and 
(C) the cost of reasonable and equitable 
compensation to such personnel and facilities 
and for such supplies and commodities. 
(3) OPERATION OF ALLOTMENTS.—Such allot-
ments shall operate, to the maximum extent pos-
sible, both to assure provision to eligible individuals 
of adequate personal health-service benefits in all 
States and all local health-service areas, and also to 
increase the adequacy of services where personnel 
and facilities are below the national average. 
(c) ALLOTMENT OF REMAINDER TO STATES.— 
(1) IN GENERAL.—From time to time during 
each fiscal year, the Board shall allot to the several 
States the remaining 10 percent or the remaining 5 
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percent, as the case may be, of each sum determined 
pursuant to subsection (a). 
(2) CONSIDERATIONS.—In making allotments 
under this subsection, the Board shall take into con-
sideration the factors specified in subsection (b), but 
shall, in addition, give special consideration to the 
extent of which allotments under subsection (b) have 
proved to be insufficient to permit provision of rea-
sonably adequate benefits under this Act. 
(d) EMERGENCY ALLOTMENTS.—In addition to the 
sums determined pursuant to subsection (a) to be avail-
able for the provision of personal health-service benefits, 
the Board, after consultation with the Advisory Council, 
is authorized to make emergency allotments from the Na-
tional Health Care Trust Fund if it finds that a disaster, 
epidemic, or other cause has substantially increased the 
volume of personal health-service benefits required in any 
part of the United States over the volume anticipated 
when the determinations pursuant to subsection (a) were 
made. Allotments pursuant to this subsection shall be 
made to such State or States, for such class or classes 
of personal health-service benefits, and in such amounts, 
as the Board may find necessary to meet the emergency. 
(e) PAYMENT FROM ALLOTMENTS.—The Board shall 
from time to time determine the amounts to be paid to 
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each State from its allotments under this section, and 
shall certify to the Secretary of the Treasury the amounts 
so determined. The Secretary shall thereupon, and prior 
to audit or settlement by the General Accounting Office, 
pay to the State the amounts so certified. 
(f) USE OF FUNDS.— 
(1) IN GENERAL.—Funds paid to a State for 
any class of personal health-service benefits shall be 
used exclusively for the provision of benefits of that 
class, except that the administrative costs of the 
State in administering personal health-service bene-
fits under this Act may be met from the allotments 
to the State. 
(2) LIMITATION ON ADMINISTRATIVE COSTS.— 
Such administrative costs, which in any fiscal year 
shall not exceed 5 percent of the aggregate allot-
ments to the State for such fiscal year, shall be ap-
portioned as between the several allotments in ac-
cordance with the costs of administering the respec-
tive classes of benefits. Such apportionment may be 
made in such manner, and by such sampling, statis-
tical, or other methods, as may be agreed upon be-
tween the Board and the State agency. 
(g) BOARD ASSUMPTION OF RESPONSIBILITY.—In 
any case in which the Board has assumed responsibility 
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for the administration in a State of benefits under this 
Act in accordance with section 402 (d) or (e), all allot-
ments or balances of allotments to such State shall be 
available for expenditure by the Board for the provision 
of personal health-service benefits in that State, and (until 
the Congress shall make funds available therefor pursuant 
to section 801(a)) for the costs of administration of such 
benefits in such State. Expenditures authorized pursuant 
to section 801(a) for such costs of administration shall 
be charged against allotments to such State. 
SEC. 803. GRANTS-IN-AID FOR TRAINING AND EDUCATION. 
(a) AUTHORITY.—For the purpose of increasing the 
availability of training and education for professional and 
technical personnel engaged or undertaking to engage in 
the provision or administration of personal health services 
as benefits under this Act, and to carry out the policies 
of section 209(a), the Board is authorized to make 
grants— 
(1) to public or nonprofit institutions or agen-
cies engaging in undergraduate or postgraduate pro-
fessional, technical, or administration education or 
training, for the cost (in whole or in part) of courses 
or projects which the Board finds, after consultation 
with the Advisory Council and appropriate Federal 
departments and agencies, (A) cannot be carried out 
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