118 STAT. 1760 PUBLIC LAW 108–373—OCT. 27, 2004 ‘‘(A) shall not exceed 30 percent; and ‘‘(B) is based on the relative needs of the area in which the project will be located, as determined in accord ance with regulations promulgated by the Secretary.’’. (b) NON FEDERAL SHARE.—Section 204(b) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3144(b)) is amended by inserting ‘‘assumptions of debt,’’ after ‘‘equipment,’’. (c) INCREASE IN FEDERAL SHARE.—Section 204 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3144) is amended by adding at the end the following: ‘‘(c) INCREASE IN FEDERAL SHARE.— ‘‘(1) INDIAN TRIBES.—In the case of a grant to an Indian tribe for a project under this title, the Secretary may increase the Federal share above the percentage specified in subsection (a) up to 100 percent of the cost of the project. ‘‘(2) CERTAIN STATES, POLITICAL SUBDIVISIONS, AND NON PROFIT ORGANIZATIONS.—In the case of a grant to a State, or a political subdivision of a State, that the Secretary deter mines has exhausted the effective taxing and borrowing capacity of the State or political subdivision, or in the case of a grant to a nonprofit organization that the Secretary deter mines has exhausted the effective borrowing capacity of the nonprofit organization, the Secretary may increase the Federal share above the percentage specified in subsection (a) up to 100 percent of the cost of the project. ‘‘(3) TRAINING, RESEARCH, AND TECHNICAL ASSISTANCE.— In the case of a grant provided under section 207, the Secretary may increase the Federal share above the percentage specified in subsection (a) up to 100 percent of the cost of the project if the Secretary determines that the project funded by the grant merits, and is not feasible without, such an increase.’’. SEC. 203. SUPPLEMENTARY GRANTS. (a) IN GENERAL.—Section 205 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3145) is amended by striking subsection (b) and inserting the following: ‘‘(b) SUPPLEMENTARY GRANTS.—Subject to subsection (c), in order to assist eligible recipients in taking advantage of designated Federal grant programs, on the application of an eligible recipient, the Secretary may make a supplementary grant for a project for which the recipient is eligible but for which the recipient cannot provide the required non Federal share because of the economic situation of the recipient.’’. (b) REQUIREMENTS APPLICABLE TO SUPPLEMENTARY GRANTS.— Section 205(c) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3145(c)) is amended— (1) by striking paragraphs (1) and (2) and inserting the following: ‘‘(1) AMOUNT OF SUPPLEMENTARY GRANTS.—The share of the project cost supported by a supplementary grant under this section may not exceed the applicable Federal share under section 204. ‘‘(2) FORM OF SUPPLEMENTARY GRANTS.—The Secretary shall make supplementary grants by— ‘‘(A) the payment of funds made available under this Act to the heads of the Federal agencies responsible for carrying out the applicable Federal programs; or
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