amount that was allotted to States for 
fiscal 
year 
2005 
under 
section 
127(b)(1)(C) of this Act (as in effect on 
the day before the date of enactment of 
the Job Training Improvement Act of 
2005) in accordance with the require-
ments of such section 127(b)(1)(C); and 
‘‘(II) the amount of the remain-
der, if any, in excess of the amount re-
ferred to in subclause (I) in accordance 
with clause (ii). 
‘‘(ii) 
FORMULAS
FOR
EXCESS 
FUNDS.—Subject to clauses (iii) and (iv), of 
the amounts described in clause (i)(II)—
‘‘(I) 331⁄3 percent shall be allotted 
on the basis of the relative number of 
individuals in the civilian labor force 
who are ages 16–19 in each State, 
compared to the total number of indi-
viduals in the civilian labor force who 
are ages 16–19 in all States; 
‘‘(II) 331⁄3 percent shall be allot-
ted on the basis of the relative number 
of unemployed individuals in each 
State, compared to the total number of
unemployed individuals in all States; 
and 
‘‘(III) 331⁄3 percent shall be allot-
ted on the basis of the relative number 
of disadvantaged youth who are ages 
16 through 21 in each State, compared 
to the total number of disadvantaged 
youth who are ages 16 through 21 in 
all States. 
‘‘(iii) MINIMUM
AND
MAXIMUM
PER-
CENTAGES.—The Secretary shall ensure that 
no State shall receive an allotment for a fis-
cal year that is less than 90 percent or 
greater than 130 percent of the allotment 
percentage of that State for the preceding 
fiscal year. 
‘‘(iv) SMALL STATE MINIMUM ALLOT-
MENT.—Subject to clause (iii), the Sec-
retary shall ensure that no State shall re-
ceive an allotment under this paragraph 
that is less than 3⁄10 of 1 percent of the 
amount available under subparagraph (A). 
‘‘(2) DEFINITIONS.—For the purposes of para-
graph (1), the following definitions apply:
‘‘(A) ALLOTMENT PERCENTAGE.—The term 
‘allotment percentage’, used with respect to fiscal 
year 2006 or a subsequent fiscal year, means a 
percentage of the remainder described in para-
graph (1)(C)(i) that is received through an allot-
ment made under this subsection for the fiscal 
year. The term, with respect to fiscal year 2005, 
means the percentage of the amounts allotted to 
States under this chapter (as in effect on the day 
before the date of enactment of the Job Training 
Improvement Act of 2005) that is received by the 
State involved for fiscal year 2005. 
‘‘(B) DISADVANTAGED
YOUTH.—The term 
‘disadvantaged youth’ means an individual who 
is age 16 through 21 who received an income, or 
is a member of a family that received a total 
family income, that, in relation to family size, 
does not exceed the poverty line. 
‘‘(3) SPECIAL RULE.—For purposes of the for-
mulas specified in paragraph (1)(C), the Secretary 
shall, as appropriate and to the extent practicable, ex-
clude college students and members of the Armed 
Forces from the determination of the number of dis-
advantaged youth.’’.
(2) REALLOTMENT.—Section 127 (29 U.S.C. 
2552) is further amended—
(A) by striking subsection (b); 
(B) by redesignating subsection (c) as sub-
section (b); 
(C) in subsection (b) (as so redesignated)—
(i) by amending paragraph (2) to read 
as follows: 
‘‘(2) AMOUNT.—The amount available for real-
lotment for a program year is equal to the amount 
by which the unexpended balance at the end of the 
program year prior to the program year for which the 
determination is made exceeds 30 percent of the total 
amount of funds available to the State under this sec-
tion during such prior program year (including 
amounts allotted to the State in all prior program 
years that remained available). For purposes of this 
paragraph, the expended balance is the amount that 
is the difference between—
‘‘(A) the total amount of funds available to 
the State under this section during the program 
year prior to the program year for which the de-
termination is made (including amounts allotted 
to the State in all prior program years that re-
mained available); and
‘‘(B) the accrued expenditures during such 
prior program year.’’; 
(ii) in paragraph (3)—
(I) by striking ‘‘for the prior pro-
gram year’’ and inserting ‘‘for the pro-
gram year in which the determination 
is made’’; and 
(II) by striking ‘‘such prior pro-
gram year’’ and inserting ‘‘such pro-
gram year’’; 
(iii) by amending paragraph (4) to 
read as follows: 
‘‘(4) ELIGIBILITY.—For purposes of this sub-
section, an eligible State means a State which does 
not have an amount available for reallotment under 
paragraph (2) for the program year for which the de-
termination under paragraph (2) is made.’’; and 
(iv) in paragraph (5), by striking ‘‘ob-
ligation’’ and inserting ‘‘accrued expendi-
ture’’. 
(b) WITHIN STATE ALLOCATIONS.—
(1) RESERVATION FOR STATEWIDE ACTIVITIES.—
Section 128(a) is amended to read as follows: 
‘‘(a) RESERVATION FOR STATEWIDE ACTIVITIES.—
‘‘(1) IN
GENERAL.—The Governor of a State 
shall reserve not more than 10 percent of the amount 
allotted to the State under section 127(a)(1)(C) for a 
fiscal year for statewide activities. 
‘‘(2) USE OF FUNDS.—Regardless of whether the 
amounts are allotted under section 127(a)(1)(C) and 
reserved under paragraph (1) or allotted under sec-
tion 132 and reserved under section 133(a), the Gov-
ernor may use the reserved amounts to carry out 
statewide youth activities under section 129(b) or 
statewide employment and training activities under 
section 133.’’. 
(2) 
WITHIN
STATE
ALLOCATIONS.—Section 
128(b) is amended to read as follows: 
‘‘(b) WITHIN STATE ALLOCATION.—
‘‘(1) IN GENERAL.—Of the amounts allotted to 
the State under section 127(a)(1)(C) and not reserved 
under subsection (a)(1)—
‘‘(A) 80 percent of such amounts shall be al-
located by the Governor to local areas in accord-
ance with paragraph (2); and 
‘‘(B) 20 percent of such amounts shall be al-
located by the Governor to local areas in accord-
ance with paragraph (3). 
‘‘(2) ESTABLISHED FORMULA.—
‘‘(A) IN
GENERAL.—Of the amounts de-
scribed in paragraph (1)(A), the Governor shall 
allocate—
‘‘(i) 331⁄3 percent shall be allotted on 
the basis of the relative number of individ-
uals in the civilian labor force who are ages 
16–19 in each local area, compared to the 
total number of individuals in the civilian 
labor force who are ages 16–19 in all local 
areas in the State; 
‘‘(ii) 331⁄3 percent shall be allotted on 
the basis of the relative number of unem-
ployed individuals in each local area, com-
pared to the total number of unemployed 
individuals in all local areas in the State; 
and 
‘‘(iii) 331⁄3 percent on the basis of the 
relative number of disadvantaged youth who 
are ages 16 through 21 in each local area, 
compared to the total number of disadvan-
taged youth who are ages 16 through 21 in 
all local areas in the State. 
‘‘(B) MINIMUM
AND
MAXIMUM
PERCENT-
AGES.—The Governor shall ensure that no local 
area shall receive an allocation for a fiscal year
under this paragraph that is less than 90 percent 
or greater than 130 percent of the allocation per-
centage of the local area for the preceding fiscal 
year. 
‘‘(C) DEFINITIONS.—
‘‘(i) ALLOCATION
PERCENTAGE.—For 
purposes of this paragraph, the term ‘allo-
cation percentage’, used with respect to fis-
cal year 2006 or a subsequent fiscal year, 
means a percentage of the amount described 
in paragraph(1)(A) that is received through 
an allocation made under this paragraph 
for the fiscal year. The term, with respect to 
fiscal year 2005, means the percentage of 
the amounts allocated to local areas under 
this chapter (as in effect on the day before 
the date of enactment of the Job Training 
Improvement Act of 2005) that is received 
by the local area involved for fiscal year 
2005. 
‘‘(ii) DISADVANTAGED
YOUTH.—The 
term ‘disadvantaged youth’ means an indi-
vidual who is age 16 through 21 who re-
ceived an income, or is a member of a fam-
ily that received a total family income,
that, in relation to family size, does not ex-
ceed the poverty line. 
‘‘(3) YOUTH DISCRETIONARY ALLOCATION.—The 
Governor shall allocate to local areas the amounts de-
scribed in paragraph (1)(B) in accordance with such 
demographic and economic factors as the Governor, 
after consultation with the State board and local 
boards, determines are appropriate. 
‘‘(4) LOCAL ADMINISTRATIVE COST LIMIT.—
‘‘(A) IN GENERAL.—Of the amounts allo-
cated to a local area under this subsection and 
section 133(b) for a fiscal year, not more than 10 
percent of the amount may be used by the local 
boards for the administrative costs of carrying 
out local workforce investment activities under 
this chapter or chapter 5. 
‘‘(B) USE OF FUNDS.—Funds made avail-
able for administrative costs under subparagraph 
(A) may be used for the administrative costs of 
any of the local workforce investment activities 
described in this chapter or chapter 5, regardless 
of whether the funds were allocated under this 
subsection or section 133(b).’’. 
(3) REALLOCATION.—Section 128(c) (29 U.S.C. 
2853(c)) is amended—