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justed by the percentage change in the funds available for
subsection (a) from the immediately preceding fiscal year.
‘‘(ii)(I) A State that is eligible to receive a reallotment
under clause (i) shall receive a portion for a fiscal year
from the amount available for reallotment under paragraph
(1) that is equal to the difference between—
‘‘(aa) the amount such State was allotted under
subsection (a) for such fiscal year; and
‘‘(bb) the amount such State was allotted under
subsection (a) for the immediately preceding fiscal
year adjusted by the percentage change in the funds
available for subsection (a) from the immediately pre-
ceding fiscal year.
‘‘(II) If the amount available for reallotment under
paragraph (1) is insufficient to provide each State eligible
to receive a reallotment with the portion described in sub-
clause (I), the amount reallotted to each eligible State shall
be determined by the Commissioner.
‘‘(C) If there are funds remaining after each State eli-
gible to receive a reallotment under subparagraph (B)(i) re-
ceives the portion described in subparagraph (B)(ii), the
Commissioner shall reallot the remaining funds among the
States requesting a reallotment.
‘‘(3) The Commissioner shall reallot an amount to a
State under this subsection only if the State will be able
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to make sufficient payments from non-Federal sources to
pay for the non-Federal share of the cost of vocational reha-
bilitation services under the State plan for the fiscal year
for which the amount was appropriated.
‘‘(4) For the purposes of this part, any amount made
available to a State for any fiscal year pursuant to this
subsection shall be regarded as an increase of such State’s
allotment (as determined under the preceding provisions of
this section) for such year.’’; and
(2) by striking subsection (c)(2) and inserting
the following:
‘‘(2)(A) In this paragraph:
‘‘(i) The term ‘appropriated amount’ means the
amount appropriated under section 100(b)(1) for al-
lotment under this section.
‘‘(ii) The term ‘covered year’ means a fiscal
year—
‘‘(I) that begins after September 30, 2005;
and
‘‘(II) for which the appropriated amount
exceeds the total of—
‘‘(aa) the appropriated amount for the
preceding fiscal year; and
‘‘(bb) 0.075 percent of the appropriated
amount for the preceding fiscal year.
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‘‘(B) For each covered year, the sum referred to in
paragraph (1) shall be, as determined by the Secretary—
‘‘(i) not more than 1.5 percent of the appro-
priated amount for the covered year; and
‘‘(ii) not less than the total of the sum reserved
under this subsection for the preceding fiscal year and
0.1 percent of the appropriated amount for the cov-
ered year, subject to clause (i).
‘‘(C) For each fiscal year that is not a covered year,
the sum referred to in paragraph (1) shall be, as determined
by the Secretary—
‘‘(i) not more than 1.5 percent of the appro-
priated amount for the fiscal year; and
‘‘(ii) not less than the sum reserved under this
subsection for the preceding fiscal year, subject to
clause (i).’’.
SEC. 419. RESERVATION FOR EXPANDED TRANSITION SERV-
ICES.
The Rehabilitation Act of 1973 is amended by insert-
ing after section 110 (29 U.S.C. 730) the following:
‘‘SEC. 110A. RESERVATION FOR EXPANDED TRANSITION
SERVICES.
‘‘(a) RESERVATION.—From the State allotment under
section 110 in a transition services expansion year, each
State shall reserve an amount calculated by the Commis-
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sioner under subsection (b) to carry out programs and ac-
tivities under sections 101(a)(25)(B) and 103(b)(6).
‘‘(b) CALCULATION.—The Commissioner shall calculate
the amount to be reserved for such programs and activities
for a fiscal year by each State by multiplying $50,000,000
by the percentage determined by dividing—
‘‘(1) the amount allotted to that State under sec-
tion 110 for the prior fiscal year; by
‘‘(2) the total amount allotted to all States under
section 110 for that prior fiscal year.’’.
SEC. 420. CLIENT ASSISTANCE PROGRAM.
Section 112 of the Rehabilitation Act of 1973 (29
U.S.C. 732) is amended—
(1) in subsection (a)—
(A) in the first sentence, by striking
‘‘States’’ and inserting ‘‘agencies designated
under subsection (c)’’; and
(B) in the second sentence, by striking
‘‘State’’ and inserting ‘‘State in which the pro-
gram is located’’;
(2) in subsection (b), by striking ‘‘the State has
in effect not later than October 1, 1984, a client as-
sistance program which’’ and inserting ‘‘the State has
designated under subsection (c) an agency that’’;
(3) in subsection (e)—