‘‘(H) balance physical and human resources
through the management and control of physical
development.
‘‘(4) ANNUAL REPORT.—A State receiving assist-
ance under this subsection shall transmit to the Sec-
retary an annual report on the planning process of
the State.
‘‘SEC. 204. COST SHARING.
‘‘Subject to section 205, the amount of a direct grant
for a project under this title may not exceed 50 percent of
the cost of the project. In determining the amount of the
non-Federal share, the Secretary shall give due consider-
ation to all contributions, both in cash and in kind, fairly
evaluated, including contributions of space, equipment, and
services.
‘‘SEC. 205. SUPPLEMENTARY GRANTS.
‘‘(a) 
AUTHORITY
TO
MAKE
SUPPLEMENTARY
GRANTS.—
‘‘(1) IN GENERAL.—Upon the application of an
eligible recipient, the Secretary may make a supple-
mentary grant for a project for which the applicant
is eligible but, because of the economic situation of the
applicant, for which the applicant cannot supply the
required non-Federal share.
‘‘(2) TYPES
OF
ASSISTANCE.—Supplementary
grants under this section may include grants to en-
able States and other entities within areas described
in section 302(a) to take maximum advantage of des-
ignated Federal grant-in-aid programs (as defined in
subsection (b)(4)), direct grants-in-aid authorized
under this title, Federal grant-in-aid programs au-
thorized by the Watershed Protection and Flood Pre-
vention Act (68 Stat. 666), and the 11 watersheds au-
thorized by the Flood Control Act of December 22,
1944 (58 Stat. 887).
‘‘(b) 
REQUIREMENTS
APPLICABLE
TO
SUPPLE-
MENTARY GRANTS.—
‘‘(1) AMOUNT
OF
GRANTS.—The amount of a
supplementary grant for a project under this section
may not exceed the applicable percentage to be estab-
lished by the Secretary by regulation, but in no event
may the non-Federal share of the aggregate cost of
any such project (including assumptions of debt) be
less than 20 percent of such cost, except as provided
by paragraph (6).
‘‘(2) FORM OF GRANTS.—Supplementary grants
shall be made by the Secretary, in accordance with
regulations to be issued by the Secretary, by increas-
ing the amounts of direct grants authorized under
this title or by the payment of funds appropriated
under this Act to the heads of the departments, agen-
cies, and instrumentalities of the Federal Government
responsible for the administration of the applicable
Federal programs.
‘‘(3) FEDERAL SHARE LIMITATIONS SPECIFIED
IN OTHER LAWS.—Notwithstanding any requirement
as to the amount or sources of non-Federal funds that
may otherwise be applicable to the Federal program
involved, funds provided under this section may be
used for the purpose of increasing the Federal con-
tribution to a project in an area described in section
302(a) under the Federal program above the fixed
maximum portion of the cost of the project otherwise
authorized by the applicable law.
‘‘(4) DESIGNATED FEDERAL GRANT-IN-AID PRO-
GRAMS
DEFINED.—In this section, the term ‘des-
ignated Federal grant-in-aid programs’ means such
existing or future Federal grant-in-aid programs as-
sisting in the construction or equipping of facilities
as the Secretary may, in furtherance of the purposes
of this Act, designate as eligible for allocation of funds
under this section.
‘‘(5) CONSIDERATION OF RELATIVE NEED IN DE-
TERMINING AMOUNT.—In determining the amount of
a supplementary grant available for a project under
this title, the Secretary shall take into consideration
the relative needs of the area and the nature of the
project to be assisted.
‘‘(6) EXCEPTIONS.—
‘‘(A) GRANTS TO INDIAN TRIBES; DISASTER
ASSISTANCE.—In the case of a grant to an In-
dian tribe, or in the case of a grant for assist-
ance authorized by section 209(d), the Secretary
may reduce the non-Federal share below the per-
centage specified in subsection (b)(1) or waive
the non-Federal share.
‘‘(B) GRANTS TO STATES, POLITICAL SUB-
DIVISIONS, AND NON-PROFITS.— In the case of a
grant to a State (or a political subdivision of the
State) that the Secretary determines has ex-
hausted its effective taxing and borrowing capac-
ity, or in the case of a grant to a non-profit or-
ganization that the Secretary determines has ex-
hausted its effective borrowing capacity, the Sec-
retary may reduce the non-Federal share below
the percentage specified in subsection (b)(1) or
may waive the non-Federal share for a project
the nature of which the Secretary determines, in
writing, warrants the reduction or waiver of the
non-Federal share.
‘‘SEC. 206. REGULATIONS TO ENSURE RELATIVE NEEDS ARE
MET.
‘‘The Secretary shall issue rules, regulations, and pro-
cedures to carry out this title to ensure that adequate con-
sideration is given to the relative needs of eligible areas.
In issuing such rules, regulations, and procedures for assist-
ance under section 201, the Secretary shall consider among
other relevant factors—
‘‘(1) the severity of the rates of unemployment in
the eligible areas and the duration of such unemploy-
ment; and
‘‘(2) the income levels of families and the extent
of underemployment in eligible areas.
‘‘SEC. 207. TRAINING, RESEARCH, AND TECHNICAL ASSIST-
ANCE.
‘‘(a) DIRECT GRANTS.—
‘‘(1) IN GENERAL.—Upon the application of an
eligible recipient, the Secretary may make direct
grants for training, research, and technical assistance,
including grants for program evaluation and eco-
nomic impact analyses, that would be useful in alle-
viating or preventing conditions of excessive unem-
ployment or underemployment.
‘‘(2) TYPES
OF
ASSISTANCE.—Direct grants
under this section may include grants for project
planning and feasibility studies, demonstrations of
innovative activities or strategic economic develop-
ment investments, management and operational ac-
tivities or strategic economic development invest-
ments, management and operational assistance, estab-
lishment of university centers, establishment of busi-
ness outreach centers, and studies evaluating the
needs of, and development potentialities for, economic
growth of areas that the Secretary finds have substan-
tial need for such assistance.
‘‘(3) 
AUTHORITY
TO
WAIVE
NON-FEDERAL
SHARE.—The Secretary may waive the non-Federal
share in the case of a project under this section, with-
out regard to section 204 or 205.
‘‘(b) FORMS OF ASSISTANCE.—In carrying out the
Secretary’s duties under this Act, the Secretary may—
‘‘(1) provide research and technical assistance
through members of the staff of the Secretary;
‘‘(2) make payments of funds authorized to carry
out this section to departments or agencies of the Fed-
eral Government;
‘‘(3) provide for the employment of private indi-
viduals, partnerships, firms, corporations, or suitable