Sentence:  In order to assist the States in maintaining basic vocational rehabilitation services , Section 2 of the amended Act provides that allotments to States for support of such services be based on ( 1 ) need , as measured by a State 's <WSD>population</WSD> , and ( 2 ) fiscal capacity , as measured by its per capita income . 
Meaning of the word marked with <WSD> tags:  the people who inhabit a territory or state