121 
number of minority eligible individuals par-
ticipating in the project will decline if the 
amount available to pay the administrative 
costs is not increased; or 
‘‘(iii) the size of the project is so small 
that the amount of administrative costs in-
curred to carry out the project necessarily 
exceeds 13.5 percent of the grant amount; 
the Secretary shall increase the amount avail-
able for such fiscal year to pay the administra-
tive costs to an amount not to exceed 15 per-
cent of the grant amount. 
‘‘(4) ADMINISTRATIVE COSTS.—For purposes of 
this title, administrative costs are the costs, both 
personnel-related and nonpersonnel-related and both 
direct and indirect, associated with the following: 
‘‘(A) The costs of performing general ad-
ministrative functions and of providing for the 
coordination of functions, such as the costs of— 
‘‘(i) accounting, budgeting, and finan-
cial and cash management; 
‘‘(ii) procurement and purchasing; 
‘‘(iii) property management; 
‘‘(iv) personnel management; 
‘‘(v) payroll functions; 
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‘‘(vi) coordinating the resolution of 
findings arising from audits, reviews, in-
vestigations, and incident reports; 
‘‘(vii) audits; 
‘‘(viii) general legal services; 
‘‘(ix) developing systems and proce-
dures, including information systems, re-
quired for administrative functions; 
‘‘(x) preparing administrative reports; 
and 
‘‘(xi) other activities necessary for the 
general 
administration 
of 
government 
funds and associated programs. 
‘‘(B) The costs of performing oversight 
and monitoring responsibilities related to ad-
ministrative functions. 
‘‘(C) The costs of goods and services re-
quired for administrative functions of the 
project involved, including goods and services 
such as rental or purchase of equipment, utili-
ties, office supplies, postage, and rental and 
maintenance of office space. 
‘‘(D) The travel costs incurred for official 
business in carrying out administrative activi-
ties or overall management. 
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‘‘(E) The costs of information systems re-
lated to administrative functions (such as per-
sonnel, procurement, purchasing, property man-
agement, accounting, and payroll systems), in-
cluding the purchase, systems development, and 
operating costs of such systems. 
‘‘(F) The costs of technical assistance, pro-
fessional organization membership dues, and 
evaluating results obtained by the project in-
volved against stated objectives. 
‘‘(5) NON-FEDERAL SHARE OF ADMINISTRATIVE 
COSTS.—To the extent practicable, an entity that 
carries out a project under this title shall provide for 
the payment of the expenses described in paragraph 
(4) from non-Federal sources. 
‘‘(6) USE OF FUNDS FOR WAGES AND BENE-
FITS AND PROGRAMMATIC ACTIVITY COSTS.— 
‘‘(A) IN GENERAL.—Amounts made avail-
able for a project under this title that are not 
used to pay for the administrative costs shall be 
used to pay for the costs of programmatic ac-
tivities, including the costs of— 
‘‘(i) participant wages, such benefits 
as are required by law (such as workers’ 
compensation or unemployment compensa-
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tion), the costs of physical examinations, 
compensation for scheduled work hours 
during which an employer’s business is 
closed for a Federal holiday, and necessary 
sick leave that is not part of an accumu-
lated sick leave program, except that no 
amounts provided under this title may be 
used to pay the cost of pension benefits, 
annual leave, accumulated sick leave, or 
bonuses; 
‘‘(ii) participant training (including 
the payment of reasonable costs of instruc-
tors, classroom rental, training supplies, 
materials, equipment, and tuition), which 
may be provided prior to or subsequent to 
placement and which may be provided on 
the job, in a classroom setting, or pursuant 
to other appropriate arrangements; 
‘‘(iii) job placement assistance, includ-
ing job development and job search assist-
ance; 
‘‘(iv) participant supportive services to 
enable a participant to successfully partici-
pate in a project under this title, which 
may include the payment of reasonable 
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costs of transportation, health and medical 
services, special job-related or personal 
counseling, incidentals (such as work 
shoes, badges, uniforms, eyeglasses, and 
tools), child and adult care, temporary 
shelter, and follow-up services; and 
‘‘(v) outreach, recruitment and selec-
tion, intake, orientation, and assessments. 
‘‘(B) USE
OF
FUNDS
FOR
WAGES
AND 
BENEFITS.—From the funds made available 
through a grant made under subsection (b), a 
grantee under this title— 
‘‘(i) except as provided in clause (ii), 
shall use not less than 75 percent of the 
grant funds to pay the wages, benefits, and 
other costs described in subparagraph 
(A)(i) for eligible individuals who are em-
ployed under projects carried out under 
this title; or 
‘‘(ii) that obtains approval for a re-
quest described in subparagraph (C) may 
use not less than 65 percent of the grant 
funds to pay the wages, benefits, and other 
costs described in subparagraph (A)(i). 
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‘‘(C) 
REQUEST
TO
USE
ADDITIONAL 
FUNDS FOR PROGRAMMATIC ACTIVITY COSTS.— 
‘‘(i) IN
GENERAL.—A grantee may 
submit to the Secretary a request for ap-
proval— 
‘‘(I) to use not less than 65 per-
cent of the grant funds to pay the 
wages, benefits, and other costs de-
scribed in subparagraph (A)(i); 
‘‘(II) to use the percentage of 
grant funds described in paragraph 
(3) to pay for administrative costs, as 
specified in that paragraph; 
‘‘(III) to use not more than 10 
percent of the grant funds for indi-
vidual participants to provide activi-
ties described in clauses (ii) and (iv) 
of subparagraph (A), in which case 
the grantee shall provide (from the 
funds described in this subclause) the 
subsistence allowance described in 
subsection (b)(1)(I) for those indi-
vidual participants who are receiving 
training described in that subsection 
from the funds described in this sub-
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127 
clause, but may not use the funds de-
scribed in this subclause to pay for 
any administrative costs; and 
‘‘(IV) to use the remaining grant 
funds to provide activities described in 
clauses (ii) through (v) of subpara-
graph (A). 
‘‘(ii) CONTENTS.—In submitting the 
request the grantee shall include in the re-
quest— 
‘‘(I) a description of the activities 
for which the grantee will spend the 
grant funds described in subclauses 
(III) and (IV) of clause (i), consistent 
with those subclauses; 
‘‘(II) an explanation documenting 
how the provision of such activities 
will improve the effectiveness of the 
project, including an explanation con-
cerning whether any displacement of 
eligible individuals or elimination of 
positions for such individuals will 
occur, information on the number of 
such individuals to be displaced and of 
such positions to be eliminated, and 
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128 
an explanation concerning how the ac-
tivities will improve employment out-
comes for individuals served, based on 
the assessment conducted under sub-
section (b)(1)(N); and 
‘‘(III) a proposed budget and 
work plan for the activities, including 
a detailed description of the funds to 
be spent on the activities described in 
subclauses (III) and (IV) of clause (i). 
‘‘(iii) SUBMISSION.—The grantee shall 
submit a request described in clause (i) not 
later than 90 days before the proposed 
date of implementation contained in the re-
quest. Not later than 30 days before the 
proposed date of implementation, the Sec-
retary shall approve, approve as modified, 
or reject the request, on the basis of the 
information included in the request as de-
scribed in clause (ii). 
‘‘(D) REPORT.—Each grantee under sub-
section (b) shall annually prepare and submit to 
the Secretary a report documenting the grant-
ee’s use of funds for activities described in 
clauses (i) through (v) of subparagraph (A). 
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129 
‘‘(d) PROJECT DESCRIPTION.—Whenever a grantee 
conducts a project within a planning and service area in 
a State, such grantee shall conduct such project in con-
sultation with the area agency on aging of the planning 
and service area and shall submit to the State agency and 
the area agency on aging a description of such project to 
be conducted in the State, including the location of the 
project, 90 days prior to undertaking the project, for re-
view and public comment according to guidelines the Sec-
retary shall issue to assure efficient and effective coordina-
tion of projects under this title. 
‘‘(e) PILOT, DEMONSTRATION, AND EVALUATION 
PROJECTS.— 
‘‘(1) IN GENERAL.—The Secretary, in addition 
to exercising any other authority contained in this 
title, shall use funds reserved under section 
506(a)(1) to carry out demonstration projects, pilot 
projects, and evaluation projects, for the purpose of 
developing and implementing techniques and ap-
proaches, and demonstrating the effectiveness of the 
techniques and approaches, in addressing the em-
ployment and training needs of eligible individuals. 
The Secretary shall enter into such agreements with 
States, public agencies, nonprofit private organiza-
tions, or private business concerns, as may be nec-
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130 
essary, to conduct the projects authorized by this 
subsection. To the extent practicable, the Secretary 
shall provide an opportunity, prior to the develop-
ment of a demonstration or pilot project, for the ap-
propriate area agency on aging to submit comments 
on such a project in order to ensure coordination of 
activities under this title. 
‘‘(2) PROJECTS.—Such projects may include— 
‘‘(A) activities linking businesses and eligi-
ble individuals, including activities providing as-
sistance to participants transitioning from sub-
sidized activities to private sector employment; 
‘‘(B) demonstration projects and pilot 
projects designed to— 
‘‘(i) attract more eligible individuals 
into the labor force; 
‘‘(ii) improve the provision of services 
to eligible individuals under one-stop deliv-
ery systems established under title I of the 
Workforce Investment Act of 1998 (29 
U.S.C. 2801 et seq.); 
‘‘(iii) enhance the technological skills 
of eligible individuals; and 
‘‘(iv) provide incentives to grantees 
under this title for exemplary performance 
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131 
and incentives to businesses to promote 
their participation in the program under 
this title; 
‘‘(C) demonstration projects and pilot 
projects, as described in subparagraph (B), for 
workers who are older individuals (but targeted 
to eligible individuals) only if such demonstra-
tion projects and pilot projects are designed to 
assist in developing and implementing tech-
niques and approaches in addressing the em-
ployment and training needs of eligible individ-
uals; 
‘‘(D) provision of training and technical 
assistance to support any project funded under 
this title; 
‘‘(E) dissemination of best practices relat-
ing to employment of eligible individuals; and 
‘‘(F) evaluation of the activities authorized 
under this title. 
‘‘(3) CONSULTATION.—To the extent prac-
ticable, entities carrying out projects under this sub-
section shall consult with appropriate area agencies 
on aging and with other appropriate agencies and 
entities to promote coordination of activities under 
this title. 
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132 
‘‘SEC. 503. ADMINISTRATION. 
‘‘(a) STATE PLAN.— 
‘‘(1) GOVERNOR.—For a State to be eligible to 
receive an allotment under section 506, the Governor 
of the State shall submit to the Secretary for consid-
eration and approval, a single State plan (referred to 
in this title as the ‘State plan’) that outlines a 4- 
year strategy for the statewide provision of commu-
nity service employment and other authorized activi-
ties for eligible individuals under this title. The plan 
shall contain such provisions as the Secretary may 
require, consistent with this title, including a de-
scription of the process used to ensure the participa-
tion of individuals described in paragraph (2). Not 
less often than every 2 years, the Governor shall re-
view the State plan and submit an update to the 
State plan to the Secretary for consideration and ap-
proval. 
‘‘(2) RECOMMENDATIONS.—In developing the 
State plan prior to its submission to the Secretary, 
the Governor shall seek the advice and recommenda-
tions of— 
‘‘(A) individuals representing the State 
agency and the area agencies on aging in the 
State, and the State and local workforce invest-
ment boards established under title I of the 
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133 
Workforce Investment Act of 1998 (29 U.S.C. 
2801 et seq.); 
‘‘(B) individuals representing public and 
nonprofit private agencies and organizations 
providing employment services, including each 
grantee operating a project under this title in 
the State; and 
‘‘(C) individuals representing social service 
organizations providing services to older individ-
uals, grantees under title III of this Act, af-
fected communities, unemployed older individ-
uals, community-based organizations serving 
the needs of older individuals, business organi-
zations, and labor organizations. 
‘‘(3) COMMENTS.—Any State plan submitted by 
the Governor in accordance with paragraph (1) shall 
be accompanied by copies of public comments relat-
ing to the plan received pursuant to paragraph (7), 
and a summary of the comments. 
‘‘(4) PLAN PROVISIONS.—The State plan shall 
identify and address— 
‘‘(A) the relationship that the number of 
eligible individuals in each area bears to the 
total number of eligible individuals, respectively, 
in the State; 
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134 
‘‘(B) the relative distribution of eligible in-
dividuals residing in rural and urban areas in 
the State; and 
‘‘(C) the relative distribution of— 
‘‘(i) eligible individuals who are indi-
viduals with greatest economic need; 
‘‘(ii) eligible individuals who are mi-
nority individuals; 
‘‘(iii) eligible individuals who are lim-
ited English proficient; and 
‘‘(iv) eligible individuals who are indi-
viduals with greatest social need; 
‘‘(D) the current and projected employ-
ment opportunities in the State (such as by 
providing information available under section 
15 of the Wagner-Peyser Act (29 U.S.C. 49l– 
2) by occupation), and the type of skills pos-
sessed by local eligible individuals; 
‘‘(E) the localities and populations for 
which projects of the type authorized by this 
title are most needed; and 
‘‘(F) plans for facilitating the coordination 
of activities of grantees in the State under this 
title with activities carried out in the State 
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135 
under title I of the Workforce Investment Act 
of 1998 (29 U.S.C. 2801 et seq.). 
‘‘(5) GOVERNOR’S RECOMMENDATIONS.—Before 
a proposal for a grant under this title for any fiscal 
year is submitted to the Secretary, the Governor of 
the State in which projects are proposed to be con-
ducted under such grant shall be afforded a reason-
able opportunity to submit to the Secretary— 
‘‘(A) recommendations regarding the an-
ticipated effect of each such proposal upon the 
overall distribution of enrollment positions 
under this title in the State (including such dis-
tribution among urban and rural areas), taking 
into account the total number of positions to be 
provided by all grantees in the State; 
‘‘(B) any recommendations for redistribu-
tion of positions to underserved areas as vacan-
cies occur in previously encumbered positions in 
other areas; and 
‘‘(C) in the case of any increase in funding 
that may be available for use in the State under 
this title for the fiscal year, any recommenda-
tions for distribution of newly available posi-
tions in excess of those available during the pre-
ceding year to underserved areas. 
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136 
‘‘(6) DISRUPTIONS.—In developing a plan or 
considering a recommendation under this subsection, 
the Governor shall avoid disruptions in the provision 
of services for participants to the greatest possible 
extent. 
‘‘(7) DETERMINATION; REVIEW.— 
‘‘(A) DETERMINATION.—In order to effec-
tively carry out this title, each State shall make 
the State plan available for public comment. 
The Secretary, in consultation with the Assist-
ant Secretary, shall review the plan and make 
a written determination with findings and a de-
cision regarding the plan. 
‘‘(B) REVIEW.—The Secretary may review, 
on the Secretary’s own initiative or at the re-
quest of any public or private agency or organi-
zation or of any agency of the State, the dis-
tribution of projects and services under this 
title in the State, including the distribution be-
tween urban and rural areas in the State. For 
each proposed reallocation of projects or serv-
ices in a State, the Secretary shall give notice 
and opportunity for public comment. 
‘‘(8) EXEMPTION.—The grantees that serve eli-
gible individuals who are older Indians or Pacific Is-
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137 
land and Asian Americans with funds reserved under 
section 506(a)(3) may not be required to participate 
in the State planning processes described in this sec-
tion but shall collaborate with the Secretary to de-
velop a plan for projects and services to eligible indi-
viduals who are Indians or Pacific Island and Asian 
Americans, respectively. 
‘‘(b) COORDINATION WITH OTHER FEDERAL PRO-
GRAMS.— 
‘‘(1) IN GENERAL.—The Secretary and the As-
sistant Secretary shall coordinate the program car-
ried out under this title with programs carried out 
under other titles of this Act, to increase employ-
ment opportunities available to older individuals. 
‘‘(2) PROGRAMS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
coordinate programs carried out under this title 
with the program carried out under the Work-
force Investment Act of 1998 (29 U.S.C. 2801 
et seq.), the Community Services Block Grant 
Act (42 U.S.C. 9901 et seq.), the Rehabilitation 
Act of 1973 (29 U.S.C. 701 et seq.), the Carl 
D. Perkins Career and Technical Education Act 
of 2006 (20 U.S.C. 2301 et seq.), the National 
and Community Service Act of 1990 (42 U.S.C. 
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138 
12501 et seq.), and the Domestic Volunteer 
Service Act of 1973 (42 U.S.C. 4950 et seq.). 
The Secretary shall coordinate the administra-
tion of this title with the administration of 
other titles of this Act by the Assistant Sec-
retary to increase the likelihood that eligible in-
dividuals for whom employment opportunities 
under this title are available and who need serv-
ices under such titles receive such services. 
‘‘(B) USE OF FUNDS.— 
‘‘(i) 
PROHIBITION.—Funds 
appro-
priated to carry out this title may not be 
used to carry out any program under the 
Workforce Investment Act of 1998, the 
Community Services Block Grant Act, the 
Rehabilitation Act of 1973, the Carl D. 
Perkins Career and Technical Education 
Act of 2006, the National and Community 
Service Act of 1990, or the Domestic Vol-
unteer Service Act of 1973. 
‘‘(ii) JOINT
ACTIVITIES.—Clause (i) 
shall not be construed to prohibit carrying 
out projects under this title jointly with 
programs, projects, or activities under any 
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139 
Act specified in clause (i), or from carrying 
out section 511. 
‘‘(3) INFORMATIONAL MATERIALS ON AGE DIS-
CRIMINATION.—The Secretary shall distribute to 
grantees under this title, for distribution to program 
participants, and at no cost to grantees or partici-
pants, informational materials developed and sup-
plied by the Equal Employment Opportunity Com-
mission and other appropriate Federal agencies that 
the Secretary determines are designed to help par-
ticipants identify age discrimination and to under-
stand their rights under the Age Discrimination in 
Employment Act of 1967 (29 U.S.C. 621 et seq.). 
‘‘(c) USE OF SERVICES, EQUIPMENT, PERSONNEL, 
AND FACILITIES.—In carrying out this title, the Secretary 
may use the services, equipment, personnel, and facilities 
of Federal and other agencies, with their consent, with or 
without reimbursement, and on a similar basis cooperate 
with other public and nonprofit private agencies and orga-
nizations in the use of services, equipment, and facilities. 
‘‘(d) PAYMENTS.—Payments under this title may be 
made in advance or by way of reimbursement and in such 
installments as the Secretary may determine. 
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140 
‘‘(e) NO DELEGATION OF FUNCTIONS.—The Sec-
retary shall not delegate any function of the Secretary 
under this title to any other Federal officer or entity. 
‘‘(f) COMPLIANCE.— 
‘‘(1) MONITORING.—The Secretary shall mon-
itor projects for which grants are made under this 
title to determine whether the grantees are com-
plying with rules and regulations issued to carry out 
this title (including the statewide planning, consulta-
tion, and coordination requirements of this title). 
‘‘(2) COMPLIANCE WITH UNIFORM COST PRIN-
CIPLES
AND
ADMINISTRATIVE
REQUIREMENTS.— 
Each grantee that receives funds under this title 
shall comply with the applicable uniform cost prin-
ciples and appropriate administrative requirements 
for grants and contracts that are applicable to the 
type of entity that receives funds, as issued as circu-
lars or rules of the Office of Management and Budg-
et. 
‘‘(3) REPORTS.—Each grantee described in 
paragraph (2) shall prepare and submit a report in 
such manner and containing such information as the 
Secretary may require regarding activities carried 
out under this title. 
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141 
‘‘(4) RECORDS.—Each grantee described in 
paragraph (2) shall keep records that— 
‘‘(A) are sufficient to permit the prepara-
tion of reports required by this title; 
‘‘(B) are sufficient to permit the tracing of 
funds to a level of expenditure adequate to en-
sure that the funds have not been spent unlaw-
fully; and 
‘‘(C) contain any other information that 
the Secretary determines to be appropriate. 
‘‘(g) EVALUATIONS.—The Secretary shall establish 
by rule and implement a process to evaluate, in accordance 
with section 513, the performance of projects carried out 
and services provided under this title. The Secretary shall 
report to Congress, and make available to the public, the 
results of each such evaluation and shall use such evalua-
tion to improve services delivered by, or the operation of, 
projects carried out under this title. 
‘‘SEC. 504. PARTICIPANTS NOT FEDERAL EMPLOYEES. 
‘‘(a) INAPPLICABILITY
OF
CERTAIN
PROVISIONS 
COVERING FEDERAL EMPLOYEES.—Eligible individuals 
who are participants in any project funded under this title 
shall not be considered to be Federal employees as a result 
of such participation and shall not be subject to part III 
of title 5, United States Code. 
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142 
‘‘(b) WORKERS’ COMPENSATION.—No grant or 
subgrant shall be made and no contract or subcontract 
shall be entered into under this title with an entity who 
is, or whose employees are, under State law, exempted 
from operation of the State workers’ compensation law, 
generally applicable to employees, unless the entity shall 
undertake to provide either through insurance by a recog-
nized carrier or by self-insurance, as authorized by State 
law, that the persons employed under the grant, subgrant, 
contract, or subcontract shall enjoy workers’ compensation 
coverage equal to that provided by law for covered employ-
ment. 
‘‘SEC. 505. INTERAGENCY COOPERATION. 
‘‘(a) CONSULTATION WITH
THE ASSISTANT SEC-
RETARY.—The Secretary shall consult with and obtain the 
written views of the Assistant Secretary before issuing 
rules and before establishing general policy in the adminis-
tration of this title. 
‘‘(b) CONSULTATION WITH HEADS OF OTHER AGEN-
CIES.—The Secretary shall consult and cooperate with the 
Secretary of Health and Human Services (acting through 
officers including the Director of the Office of Community 
Services), and the heads of other Federal agencies that 
carry out programs related to the program carried out 
under this title, in order to achieve optimal coordination 
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of the program carried out under this title with such re-
lated programs. Each head of a Federal agency shall co-
operate with the Secretary in disseminating information 
relating to the availability of assistance under this title 
and in promoting the identification and interests of indi-
viduals eligible for employment in projects assisted under 
this title. 
‘‘(c) COORDINATION.— 
‘‘(1) IN GENERAL.—The Secretary shall pro-
mote and coordinate efforts to carry out projects 
under this title jointly with programs, projects, or 
activities carried out under other Acts, especially ac-
tivities provided under the Workforce Investment 
Act of 1998 (29 U.S.C. 2801 et seq.), including ac-
tivities provided through one-stop delivery systems 
established under section 134(c)) of such Act (29 
U.S.C. 2864(c)), that provide training and employ-
ment opportunities to eligible individuals. 
‘‘(2) COORDINATION
WITH
CERTAIN
ACTIVI-
TIES.—The Secretary shall consult with the Sec-
retary of Education to promote and coordinate ef-
forts to carry out projects under this title jointly 
with activities in which eligible individuals may par-
ticipate that are carried out under the Carl D. Per-
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kins Career and Technical Education Act of 2006 
(20 U.S.C. 2301 et seq.). 
‘‘SEC. 506. DISTRIBUTION OF ASSISTANCE. 
‘‘(a) RESERVATIONS.— 
‘‘(1) RESERVATION
FOR
PILOT
DEMONSTRA-
TION AND EVALUATION PROJECTS.—Of the funds 
appropriated to carry out this title for each fiscal 
year, the Secretary may first reserve not more than 
1.5 percent to carry out demonstration projects, 
pilot projects, and evaluation projects under section 
502(e). 
‘‘(2) RESERVATION FOR TERRITORIES.—Of the 
funds appropriated to carry out this title for each 
fiscal year, the Secretary shall reserve 0.75 percent, 
of which— 
‘‘(A) Guam, American Samoa, and the 
United States Virgin Islands shall each receive 
30 percent of the funds so reserved; and 
‘‘(B) the Commonwealth of the Northern 
Mariana Islands shall receive 10 percent of the 
funds so reserved. 
‘‘(3) RESERVATION
FOR
ORGANIZATIONS.—Of 
the funds appropriated to carry out this title for 
each fiscal year, the Secretary shall reserve such 
amount as may be necessary to make national 
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grants to public or nonprofit national Indian aging 
organizations with the ability to provide community 
service employment and other authorized activities 
for eligible individuals who are Indians and to na-
tional public or nonprofit Pacific Island and Asian 
American aging organizations with the ability to 
provide community service employment and other 
authorized activities for eligible individuals who are 
Pacific Island and Asian Americans. 
‘‘(b) STATE ALLOTMENTS.—The allotment for each 
State shall be the sum of the amounts allotted for national 
grants in such State under subsection (d) and for the 
grant to such State under subsection (e). 
‘‘(c) DIVISION BETWEEN NATIONAL GRANTS AND 
GRANTS TO STATES.—The funds appropriated to carry 
out this title for any fiscal year that remain after amounts 
are reserved under paragraphs (1), (2), and (3) of sub-
section (a) shall be divided by the Secretary between na-
tional grants and grants to States as follows: 
‘‘(1) RESERVATION
OF
FUNDS
FOR
FISCAL 
YEAR 2000 LEVEL OF ACTIVITIES.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
reserve the amount of funds necessary to main-
tain the fiscal year 2000 level of activities sup-
ported by grantees that operate under this title 
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under national grants from the Secretary, and 
the fiscal year 2000 level of activities supported 
by State grantees under this title, in proportion 
to their respective fiscal year 2000 levels of ac-
tivities. 
‘‘(B) INSUFFICIENT APPROPRIATIONS.—If 
in any fiscal year the funds appropriated to 
carry out this title are insufficient to satisfy the 
requirement specified in subparagraph (A), then 
the amount described in subparagraph (A) shall 
be reduced proportionally. 
‘‘(2) FUNDING IN EXCESS OF FISCAL YEAR 2000 
LEVEL OF ACTIVITIES.— 
‘‘(A) UP TO $35,000,000.—The amount of 
funds remaining (if any) after the application of 
paragraph (1), but not to exceed $35,000,000, 
shall be divided so that 75 percent shall be pro-
vided to State grantees and 25 percent shall be 
provided to grantees that operate under this 
title under national grants from the Secretary. 
‘‘(B) OVER
$35,000,000.—The amount of 
funds remaining (if any) after the application of 
subparagraph (A) shall be divided so that 50 
percent shall be provided to State grantees and 
50 percent shall be provided to grantees that 
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operate under this title under national grants 
from the Secretary. 
‘‘(d) ALLOTMENTS FOR NATIONAL GRANTS.—From 
funds available under subsection (c) for national grants, 
the Secretary shall allot for public and nonprofit private 
agency and organization grantees that operate under this 
title under national grants from the Secretary in each 
State, an amount that bears the same ratio to such funds 
as the product of the number of individuals age 55 or older 
in the State and the allotment percentage of such State 
bears to the sum of the corresponding products for all 
States, except as follows: 
‘‘(1) MINIMUM ALLOTMENT.—No State shall be 
provided an amount under this subsection that is 
less than 1⁄2 of 1 percent of the amount provided 
under subsection (c) for public and nonprofit private 
agency and organization grantees that operate under 
this title under national grants from the Secretary 
in all of the States. 
‘‘(2) HOLD HARMLESS.—If such amount pro-
vided under subsection (c) is— 
‘‘(A) equal to or less than the amount nec-
essary to maintain the fiscal year 2000 level of 
activities, allotments for grantees that operate 
under this title under national grants from the 
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Secretary in each State shall be proportional to 
the amount necessary to maintain their fiscal 
year 2000 level of activities; or 
‘‘(B) greater than the amount necessary to 
maintain the fiscal year 2000 level of activities, 
no State shall be provided a percentage increase 
above the amount necessary to maintain the fis-
cal year 2000 level of activities for grantees 
that operate under this title under national 
grants from the Secretary in the State that is 
less than 30 percent of the percentage increase 
above the amount necessary to maintain the fis-
cal year 2000 level of activities for public and 
private nonprofit agency and organization 
grantees that operate under this title under na-
tional grants from the Secretary in all of the 
States. 
‘‘(3) REDUCTION.—Allotments for States not 
affected by paragraphs (1) and (2)(B) shall be re-
duced proportionally to satisfy the conditions in such 
paragraphs. 
‘‘(e) ALLOTMENTS FOR GRANTS TO STATES.—From 
the amount provided for grants to States under subsection 
(c), the Secretary shall allot for the State grantee in each 
State an amount that bears the same ratio to such amount 
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as the product of the number of individuals age 55 or older 
in the State and the allotment percentage of such State 
bears to the sum of the corresponding products for all 
States, except as follows: 
‘‘(1) MINIMUM ALLOTMENT.—No State shall be 
provided an amount under this subsection that is 
less than 1⁄2 of 1 percent of the amount provided 
under subsection (c) for State grantees in all of the 
States. 
‘‘(2) HOLD HARMLESS.—If such amount pro-
vided under subsection (c) is— 
‘‘(A) equal to or less than the amount nec-
essary to maintain the fiscal year 2000 level of 
activities, allotments for State grantees in each 
State shall be proportional to the amount nec-
essary to maintain their fiscal year 2000 level 
of activities; or 
‘‘(B) greater than the amount necessary to 
maintain the fiscal year 2000 level of activities, 
no State shall be provided a percentage increase 
above the amount necessary to maintain the fis-
cal year 2000 level of activities for State grant-
ees in the State that is less than 30 percent of 
the percentage increase above the amount nec-
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essary to maintain the fiscal year 2000 level of 
activities for State grantees in all of the States. 
‘‘(3) REDUCTION.—Allotments for States not 
affected by paragraphs (1) and (2)(B) shall be re-
duced proportionally to satisfy the conditions in such 
paragraphs. 
‘‘(f) ALLOTMENT PERCENTAGE.—For purposes of 
subsections (d) and (e) and this subsection— 
‘‘(1) the allotment percentage of each State 
shall be 100 percent less that percentage that bears 
the same ratio to 50 percent as the per capita in-
come of such State bears to the per capita income 
of the United States, except that— 
‘‘(A) the allotment percentage shall be not 
more than 75 percent and not less than 33 per-
cent; and 
‘‘(B) the allotment percentage for the Dis-
trict of Columbia and the Commonwealth of 
Puerto Rico shall be 75 percent; 
‘‘(2) the number of individuals age 55 or older 
in any State and in all States, and the per capita 
income in any State and in all States, shall be deter-
mined by the Secretary on the basis of the most sat-
isfactory data available to the Secretary; and 
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