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 <WSD>States</WSD> whose allotments are below their maximums , with adjustments to prevent the allotment of any State from thereby exceeding its maximum . 
Meaning of the word marked with <WSD> tags:  the territory occupied by one of the constituent administrative districts of a nation