'""•S^fesi'. PUBLIC LAW 103-382—OCT. 20, 1994 108 STAT. 3943 physical impairment, mental impairment, or a combination of physical ana mental impairments. "SEC. 704. GRANTS TO STATES. -,^ 20 USC 1491c. "(a) IN GENERAL. —The Secretary shall make grants to States on a competitive basis, in accordance with the provisions of this part, to support systems change activities designed to assist States to develop and implement, or expand and enhance, a statewide system or family support for families of children with disabilities that accomplishes the purposes described in section 702. "(b) AWARD PERIOD AND GRANT LIMITATION.— No grant shall be awarded for a period greater than 3 years. A State shall be eligible for not more than one grant. "(c) AMOUNT OF GRANTS.— " (1) GRANTS TO STATES. — "(A) FEDERAL MATCHING SHARE. — From amounts appropriated under section 716(a), the Secretary shall pay to each State that has an application approved under section 705, for each year of the grant period, an amount that is— "(i) equal to 75 percent of the cost of the systems change activities to be carried out by the State; and "(ii) not less than $200,000 and not more than $500,000. "(B) NON-FEDERAL SHARE. —The non-Federal share of payments under this paragraph may be in cash or in kind fairly evaluated, including planned equipment or services. "(2) GRANTS TO TERRITORIES.— From amounts appropriated under section 716(a) for any fiscal year, the Secretary shall pay to each territory that has an application approved under section 705 not more than $100,000. "(3) CALCULATION OF AMOUNTS. —The Secretary shall calculate a grant amount described in paragraph (1) or (2) on the basis of the following: "(A) The amounts available for making grants under this section. "(B) The child population of the State or territory concerned. "(4) DEFINITIONS. — As used in this subsection: "(A) STATE.— The term 'State' means each of the 50 States of the United States, the District of Columbia, and the Commonwealth of Puerto Rico. "(B) TERRiTORY.The term 'territory' means the United States Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, or the Republic of Palau (upon the entry into force and effect of the Compact of Free Association between the United States and the Republic of Palau). "(d) PRIORITY FOR PREVIOUSLY PARTICIPATING STATES.— Amounts appropriated for purposes of carrying out the provisions of this section in each of the 2 fiscal years succeeding the fiscal year in which amounts are first appropriated for such purposes shall first be made available to a State that— "(1) received a grant under this section during the fiscal year preceding the fiscal year concerned; and "(2) is making significant progress in accordance with section 710.