420 
related to critical infrastructure or key resources in nearby juris-
dictions; 
(E) the most current threat assessments available to the De-
partment; 
(F) whether the State has, or the high-risk urban area is lo-
cated at or near, an international border; 
(G) whether it has a coastline bordering an ocean (including the 
Gulf of Mexico) or international waters; 
(H) its likely need to respond to acts of terrorism occurring in 
nearby jurisdictions; 
(I) the extent to which it has unmet target capabilities; 
(J) in the case of a high-risk urban area, the extent to which 
that high-risk urban area includes— 
(i) those incorporated municipalities, counties, parishes, 
and Indian tribes within the relevant eligible metropolitan 
area, the inclusion of which will enhance regional efforts to 
prevent, prepare for, protect against, and respond to acts of 
terrorism; and 
(ii) other local and tribal governments in the surrounding 
area that are likely to be called upon to respond to acts of 
terrorism within the high-risk urban area; and 
(K) such other factors as are specified in writing by the Sec-
retary; and 
(2) the anticipated effectiveness of the proposed use of the grant by 
the State or high-risk urban area in increasing the ability of that State 
or high-risk urban area to prevent, prepare for, protect against, and 
respond to acts of terrorism, to meet its target capabilities, and to oth-
erwise reduce the overall risk to the high-risk urban area, the State, 
or the Nation. 
(b) TYPES OF THREAT.—In assessing threat under this section, the Sec-
retary shall consider the following types of threat to critical infrastructure 
sectors and to populations in all areas of the United States, urban and 
rural: 
(1) Biological. 
(2) Chemical. 
(3) Cyber. 
(4) Explosives. 
(5) Incendiary. 
(6) Nuclear. 
(7) Radiological. 
(8) Suicide bombers. 
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(9) Other types of threat determined relevant by the Secretary. 
§ 12508. Use of funds 
(a) PERMITTED USES.—The Secretary, acting through the Administrator, 
shall permit the recipient of a grant under section 12503 or 12504 of this 
title to use grant funds to achieve target capabilities related to preventing, 
preparing for, protecting against, and responding to acts of terrorism, con-
sistent with a State homeland security plan and relevant local, tribal, and 
regional homeland security plans, including by working in conjunction with 
a National Laboratory (as defined in section 2 of the Energy Policy Act 
of 2005 (42 U.S.C. 15801)), through— 
(1) developing and enhancing homeland security, emergency manage-
ment, or other relevant plans, assessments, or mutual aid agreements; 
(2) designing, conducting, and evaluating training and exercises, in-
cluding training and exercises conducted under section 11112 and 
20508 of this title; 
(3) protecting a system or asset included on the prioritized critical 
infrastructure list established under section 10516(a)(2) of this title; 
(4) purchasing, upgrading, storing, or maintaining equipment, in-
cluding computer hardware and software; 
(5) ensuring operability and achieving interoperability of emergency 
communications; 
(6) responding to an increase in the threat level under the Homeland 
Security Advisory System, or to the needs resulting from a National 
Special Security Event; 
(7) establishing, enhancing, and staffing with appropriately qualified 
personnel, State, local, and regional fusion centers that comply with the 
guidelines established under section 10512(j) of this title; 
(8) enhancing school preparedness; 
(9) enhancing the security and preparedness of secure and nonsecure 
areas of eligible airports and surface transportation systems; 
(10) supporting public safety answering points; 
(11) paying salaries and benefits for personnel, including individuals 
employed by the grant recipient on the date of the relevant grant appli-
cation, to serve as qualified intelligence analysts, regardless of whether 
the analysts are current or new full-time employees or contract employ-
ees; 
(12) paying expenses directly relating to administration of the grant, 
except that expenses may not exceed 3 percent of the amount of the 
grant; 
(13) any activity permitted under the Fiscal Year 2007 Program 
Guidance of the Department for the State Homeland Security Grant 
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Program, the Urban Area Security Initiative (including activities per-
mitted under the full-time counterterrorism staffing pilot), or the Law 
Enforcement Terrorism Prevention Program; and 
(14) any other appropriate activity, as determined by the Secretary. 
(b) LIMITATIONS ON USE OF FUNDS.— 
(1) IN GENERAL.—Funds provided under section 12503 or 12504 of 
this title may not be used— 
(A) to supplant State or local funds, except that nothing in this 
paragraph shall prohibit the use of grant funds provided to a 
State or high-risk urban area for otherwise permissible uses under 
subsection (a) on the basis that a State or high-risk urban area 
has previously used State or local funds to support the same or 
similar uses; or 
(B) for any State or local government cost-sharing contribution. 
(2) PERSONNEL.— 
(A) IN GENERAL.—Not more than 50 percent of the amount 
awarded to a grant recipient under section 12503 or 12504 of this 
title in any fiscal year may be used to pay for personnel, including 
overtime and backfill costs, in support of the permitted uses under 
subsection (a). 
(B) WAIVER.—At the request of the recipient of a grant under 
section 12503 or 12504, the Secretary may grant a waiver of the 
limitation under subparagraph (A). 
(3) LIMITATIONS ON DISCRETION.— 
(A) IN GENERAL.—With respect to the use of amounts awarded 
to a grant recipient under section 12503 or 12504 for personnel 
costs under paragraph (2) of this subsection, the Secretary may 
not— 
(i) impose a limit on the amount of the award that may 
be used to pay for personnel, or personnel-related, costs that 
is higher or lower than the percent limit imposed in para-
graph (2)(A); or 
(ii) impose any additional limitation on the portion of the 
funds of a recipient that may be used for a specific type, pur-
pose, or category of personnel, or personnel-related, costs. 
(B) ANALYSTS.—If amounts awarded to a grant recipient under 
section 12503 or 12504 of this title are used for paying salary or 
benefits of a qualified intelligence analyst under subsection 
(a)(10), the Secretary shall make the amounts available without 
time limitations placed on the period of time that the analyst can 
serve under the grant. 
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(4) CONSTRUCTION.— 
(A) IN GENERAL.—A grant awarded under section 12503 or 
12504 of this title may not be used to acquire land or to construct 
buildings or other physical facilities. 
(B) EXCEPTIONS.— 
(i) IN
GENERAL.—Notwithstanding subparagraph (A), 
nothing in this paragraph shall prohibit the use of a grant 
awarded under section 12503 or 12504 of this title to achieve 
target capabilities related to preventing, preparing for, pro-
tecting against, or responding to acts of terrorism, including 
through the alteration or remodeling of existing buildings for 
the purpose of making the buildings secure against acts of 
terrorism. 
(ii) REQUIREMENTS FOR EXCEPTION.—No grant awarded 
under section 12503 or 12504 of this title may be used for 
a purpose described in clause (i) unless— 
(I) specifically approved by the Secretary; 
(II) any construction work occurs under terms and 
conditions consistent with the requirements under section 
611(j)(9) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5196(j)(9)); and 
(III) the amount allocated for purposes under clause 
(i) does not exceed the greater of $1,000,000 or 15 per-
cent of the grant award. 
(5) RECREATION.—Grants awarded under this chapter may not be 
used for recreational or social purposes. 
(c) MULTIPLE-PURPOSE FUNDS.—Nothing in this chapter shall be con-
strued to prohibit State, local, or tribal governments from using grant funds 
under section 12503 or 12504 of this title in a manner that enhances pre-
paredness for disasters unrelated to acts of terrorism, if the use assists the 
governments in achieving target capabilities related to preventing, preparing 
for, protecting against, or responding to acts of terrorism. 
(d) REIMBURSEMENT OF COSTS.— 
(1) PAID-ON-CALL OR VOLUNTEER REIMBURSEMENT.—In addition to 
the activities described in subsection (a), a grant under section 12503 
or 12504 of this title may be used to provide a reasonable stipend to 
paid-on-call or volunteer emergency response providers who are not oth-
erwise compensated for travel to, or participation in, training or exer-
cises related to the purposes of this chapter. Any reimbursement shall 
not be considered compensation for purposes of rendering an emer-
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