Sentence:  The funds recouped by reductions in item 12 above are used : first , to increase the unadjusted allotments to the specified minimum in those States where the unadjusted allotment is less than the minimum allotment ( item 13 above ) ; and second , to increase uniformly the allotments to those States whose allotments are below their maximums , with adjustments to prevent the allotment of any State from <WSD>thereby</WSD> exceeding its maximum . 
Meaning of the word marked with <WSD> tags:  by that means or because of that