PUBLIC LAW 104-127—APR. 4, 1996 110 STAT. 1143 so transferred by State directors under subsection (a) of this section during the fiscal year exceeds 10 percent of the total amount made available to carry out the authorities described in section 381E(d) for the fiscal year. " (c) EXCEPTIONS.— Subsections (a) and (b) shall not apply to a transfer of funds by a State director if the State director certifies to the Secretary that— "(1) there is an approved application for a project in the function category to which the funds are to be transferred but funds are not available for the project in the function category; and "(2)(A) there is no such approved application in the function category from which the funds are to be transferred; or "(B) the community that would benefit from the project has a smaller population and a lesser per capita income than any community that would benefit from a project in the function category from which the funds are to be transferred. "SEC. 381G. GRANTS TO STATES. 7 USC 2009f. "(a) SIMPLE GRANTS.— "(1) MANDATORY GRANT.— The Secretary shall make a grant to any eligible State for any fiscal year for which the State requests a grant under this section in an amount equal to 5 percent of the total amount allocated for the State under section 381E(g). "(2) PERMISSIVE GRANT. — Before July 15 of each fiscal year, the Secretary may make a grant to any State to defray the cost of any subsidy associated with a guarantee provided by an eligible public entity of the State under section 381H in an amount that does not exceed 5 percent of the total amount allocated for the State under section 381E(g). "(3) SOURCE OF FUNDS.— The Secretary shall make grants to a State under paragraphs (1) and (2) from amounts allocated for the State in the accounts specified in section 381E(c), by reducing each such allocated amount by the same percentage. " (b) MATCHING GRANTS.— "(1) IN GENERAL. —Subject to paragraph (2), the Secretary shall make a grant to any eligible State for any fiscal year for which the State requests a grant under this section in an amount equal to 5 percent of the amount allocated for the State for the fiscal year under section 381E(h). "(2) ELIGIBILITY.— A State shall be eligible for a grant under paragraph (1) if the State makes commitments to the Secretary to— "(A) expend from non-Federal sources in accordance with subsection (c) an amount that is not less than 200 percent of the amount of the grant; and "(B) maintain the amounts paid to the State under this subsection and the amount referred to in subparagraph (A) in an account separate from all other State funds until expended in accordance with subsection (c). "(3) SOURCE OF FUNDS.—I f the Secretary makes a grant under paragraph (1) before July 15 of the fiscal year, the grant shall be made from amounts allocated for the State in the accounts specified in section 381E(c) for the fiscal year, by reducing each allocated amount by the same percentage.
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