SEC. 2. PROHIBITION ON REQUIRING USE OF GRANTS 
UNDER URBAN AREA SECURITY INITIATIVE 
AND STATE HOMELAND SECURITY GRANT 
PROGRAM FOR SPECIFIC PURPOSES. 
Section 2008(b)(3) of Homeland Security Act of 
2002 (6 U.S.C. 609(b)(3)) is amended by adding at the 
end the following new subparagraph: 
‘‘(C) PROHIBITION ON REQUIRING USE OF 
GRANTS FOR SPECIFIC PURPOSES.—Unless re-
quired by statute, the Administrator may not 
require the recipient of a grant under section 
2003 or 2004 to use a specific percentage of 
the amount of the grant for any one of the per-
mitted uses described in paragraphs (1) 
through (10) or (12) through (13) of section 
2008(a).’’. 
SEC. 3. STUDY OF PERCENTAGE OF GRANTS FUNDS AU-
THORIZED FOR ADMINISTRATION EXPENSES. 
(a) IN GENERAL.—The Administrator of the Federal 
Emergency Management Agency, in consultation with the 
National Advisory Council established under section 
508(a) of the Homeland Security Act of 2002 (6 U.S.C. 
318(a)), shall— 
(1) study the use by grantees of Federal funds 
provided under the Urban Area Security Initiative 
and the State Homeland Security Grant Program 
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authorized, respectively, by section 2003 and 2004 
of that Act (6 U.S.C. 604, 605), for paying expenses 
related to administration as authorized under section 
2008(a)(11) of the Homeland Security Act of 2002 
(6 U.S.C. 609(a)(11)); and 
(2) evaluate and determine whether the per-
centage authorized under that section is adequate to 
ensure proper oversight, management, and adminis-
tration of grant awards. 
(b) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the Administrator shall report 
to the Committee on Homeland Security of the House of 
Representatives and the Committee on Homeland Security 
and Governmental Affairs of the Senate on the findings 
of the study and evaluation, including recommendations 
on whether the percentage authorized under section 
2008(a)(11) of the Homeland Security Act of 2002 (6 
U.S.C. 609(a)(11)) should be adjusted to better reflect the 
costs to grant recipients of managing and administering 
their grant awards. 
SEC. 4. STUDY OF FEASIBILITY OF MULTI-YEAR GRANT 
PROGRAM GUIDANCE. 
The Administrator of the Federal Emergency Man-
agement Agency shall— 
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(1) in consultation with the National Advisory 
Council established under section 508(a) of the 
Homeland Security Act of 2002 (6 U.S.C. 318(a)) 
and the Chief Financial Officer of the Department 
of Homeland Security, study the feasibility, advan-
tages, and disadvantages of issuing multi-year pro-
gram guidance for grants under the Urban Area Se-
curity Initiative and the State Homeland Security 
Grant Program authorized, respectively, by section 
2003 and 2004 of that Act (6 U.S.C. 604, 605); and 
(2) by not later than 180 days after the date 
of enactment of this Act, the Administrator provide 
the results of the study to the Committee on Home-
land Security of the House of Representatives and 
the Committee on Homeland Security and Govern-
mental Affairs of the Senate. 
Æ 
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