759 
tressed and underdeveloped and have high rates of 
poverty or unemployment; 
‘‘(2) as nondistressed counties, counties in the 
region that are not designated as distressed counties 
under paragraph (1); and 
‘‘(3) as isolated areas of distress, areas located 
in nondistressed counties (as designated under para-
graph (2)) that have high rates of poverty or unem-
ployment. 
‘‘(b) DISTRESSED COUNTIES.— 
‘‘(1) IN GENERAL.—The Authority shall allo-
cate at least 75 percent of the appropriations made 
available under section 3813 for programs and 
projects designed to serve the needs of distressed 
counties and isolated areas of distress in the region. 
‘‘(2) FUNDING LIMITATIONS.—The funding lim-
itations under section 3804(b) shall not apply to a 
project providing transportation or basic public serv-
ices to residents of 1 or more distressed counties or 
isolated areas of distress in the region. 
‘‘(c) NONDISTRESSED COUNTIES.— 
‘‘(1) IN GENERAL.—Except as provided in this 
subsection, no funds shall be provided under this 
chapter for a project located in a county designated 
as a nondistressed county under subsection (a)(2). 
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760 
‘‘(2) EXCEPTIONS.— 
‘‘(A) IN GENERAL.—The funding prohibi-
tion under paragraph (1) shall not apply to 
grants to fund the administrative expenses of 
local 
development 
districts 
under 
section 
3805(b). 
‘‘(B) MULTICOUNTY PROJECTS.—The Au-
thority may waive the application of the fund-
ing prohibition under paragraph (1) to a multi-
county project that includes participation by a 
nondistressed county; or any other type of 
project if the Authority determines that the 
project could bring significant benefits to areas 
of the region outside a nondistressed county. 
‘‘(C) ISOLATED AREAS OF DISTRESS.—For 
a designation of an isolated area of distress for 
assistance to be effective, the designation shall 
be supported— 
‘‘(i) by the most recent Federal data 
available; or 
‘‘(ii) if no recent Federal data are 
available, by the most recent data available 
through the government of the State in 
which the isolated area of distress is lo-
cated. 
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761 
‘‘(d) TRANSPORTATION AND BASIC PUBLIC INFRA-
STRUCTURE.—The Authority shall allocate at least 50 per-
cent of any funds made available under section 3813 for 
transportation and basic public infrastructure projects au-
thorized under paragraphs (1) and (3) of section 3803(a). 
‘‘SEC. 3807. DEVELOPMENT PLANNING PROCESS. 
‘‘(a) STATE DEVELOPMENT PLAN.—In accordance 
with policies established by the Authority, each State 
member shall submit a development plan for the area of 
the region represented by the State member. 
‘‘(b) CONTENT OF PLAN.—A State development plan 
submitted under subsection (a) shall reflect the goals, ob-
jectives, and priorities identified in the regional develop-
ment plan developed under section 3802(d)(2). 
‘‘(c) CONSULTATION WITH INTERESTED LOCAL PAR-
TIES.—In carrying out the development planning process 
(including the selection of programs and projects for as-
sistance), a State may— 
‘‘(1) consult with— 
‘‘(A) local development districts; and 
‘‘(B) local units of government; and 
‘‘(2) take into consideration the goals, objec-
tives, priorities, and recommendations of the entities 
described in paragraph (1). 
‘‘(d) PUBLIC PARTICIPATION.— 
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