170 
(A) IN
GENERAL.—Section 409(a) (42 
U.S.C. 609(a)) is amended by striking para-
graph (10) and redesignating paragraphs (11) 
through (16) as paragraphs (10) through (15), 
respectively. 
(B) CONFORMING AMENDMENTS.—Section 
409 (42 U.S.C. 609) is amended in each of sub-
sections (b)(2) and (c)(4), by striking ‘‘(10), 
(12), or (13)’’ and inserting ‘‘(11), or (12)’’. 
(3) 
CONFORMING
AMENDMENT.—Section 
409(a)(3)(C) (42 U.S.C. 609(a)(3)(C)) is amended 
by striking ‘‘needy State (as defined in section 
403(b)(6))’’ and inserting ‘‘economically needy enti-
ty (as defined in section 403(b)(3)(A))’’. 
(4) AMOUNTS
PROVIDED
TO
TERRITORIES 
FROM
THE
CONTINGENCY
FUND
TO
BE
DIS-
REGARDED FOR PURPOSES OF LIMITATION ON PAY-
MENTS TO THE TERRITORIES.—Section 1108(a)(2) 
(42 U.S.C. 1308(a)(2)) is amended by inserting 
‘‘403(b),’’ before ‘‘406,’’. 
(d) MATCHING GRANTS FOR SUBSIDIZED EMPLOY-
MENT.— 
(1) IN GENERAL.—Section 403(a) (42 U.S.C. 
603(a)), as amended by subsection (a)(2) of this sec-
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171 
tion, is further amended by inserting after para-
graph (2) the following: 
‘‘(3) MATCHING GRANTS FOR SUBSIDIZED EM-
PLOYMENT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
make a grant— 
‘‘(i) to each eligible State that is 1 of 
the 50 States or the District of Columbia, 
for each fiscal year for which the State is 
an MOE State; and 
‘‘(ii) to each State that is not 1 of the 
50 States or the District of Columbia, and 
to each Indian tribe, for each fiscal year 
for which the State or tribe, as the case 
may be, meets such terms and conditions 
as the Secretary shall, by regulation, estab-
lish, which shall be comparable to the 
terms and conditions under which grants 
are made under clause (i). 
‘‘(B) MOE STATE.—In subparagraph (A), 
the term ‘MOE State’ means a State if the 
qualified expenditures of the State (as defined 
in section 409(a)(7)(B)(i)) for the fiscal year 
exceeds the applicable percentage (as defined in 
clause (ii) of such section) of inflation-adjusted 
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historic State expenditures (as defined in clause 
(iii) of such section) of the State with respect 
to the fiscal year. 
‘‘(C) AMOUNT OF GRANT.— 
‘‘(i) STATES.— 
‘‘(I) IN GENERAL.—The grant to 
be made to a State under subpara-
graph (A)(i) for a fiscal year shall be 
in an amount equal to 50 percent of 
the excess expenditures of the State 
for subsidized employment during the 
fiscal year. 
‘‘(II) EXCESS EXPENDITURES OF 
THE STATE FOR SUBSIDIZED EMPLOY-
MENT.—The term ‘excess expendi-
tures of the State for subsidized em-
ployment’ means, with respect to a 
fiscal year, the lesser of— 
‘‘(aa) the excess described in 
subparagraph (B) with respect to 
the State for the fiscal year; or 
‘‘(bb) an amount equal to 
the total expenditures of the 
State for subsidized employment 
funded under this part or under 
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