118 STAT. 2762 PUBLIC LAW 108–446—DEC. 3, 2004 ‘‘(2) MINIMUM ALLOTMENTS.—Except as provided in para graph (3), no State shall receive an amount under this section for any fiscal year that is less than the greater of— ‘‘(A) 1 2 of 1 percent of the remaining amount described in paragraph (1); or ‘‘(B) $500,000. ‘‘(3) RATABLE REDUCTION.— ‘‘(A) IN GENERAL.—If the sums made available under this part for any fiscal year are insufficient to pay the full amounts that all States are eligible to receive under this subsection for such year, the Secretary shall ratably reduce the allotments to such States for such year. ‘‘(B) ADDITIONAL FUNDS.—If additional funds become available for making payments under this subsection for a fiscal year, allotments that were reduced under subpara graph (A) shall be increased on the same basis the allot ments were reduced. ‘‘(4) DEFINITIONS.—In this subsection— ‘‘(A) the terms ‘infants’ and ‘toddlers’ mean children under 3 years of age; and ‘‘(B) the term ‘State’ means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico. ‘‘(d) REALLOTMENT OF FUNDS.—If a State elects not to receive its allotment under subsection (c), the Secretary shall reallot, among the remaining States, amounts from such State in accordance with such subsection. ‘‘(e) RESERVATION FOR STATE INCENTIVE GRANTS.— ‘‘(1) IN GENERAL.—For any fiscal year for which the amount appropriated pursuant to the authorization of appropriations under section 644 exceeds $460,000,000, the Secretary shall reserve 15 percent of such appropriated amount to provide grants to States that are carrying out the policy described in section 635(c) in order to facilitate the implementation of such policy. ‘‘(2) AMOUNT OF GRANT.— ‘‘(A) IN GENERAL.—Notwithstanding paragraphs (2) and (3) of subsection (c), the Secretary shall provide a grant to each State under paragraph (1) in an amount that bears the same ratio to the amount reserved under such paragraph as the number of infants and toddlers in the State bears to the number of infants and toddlers in all States receiving grants under such paragraph. ‘‘(B) MAXIMUM AMOUNT.—No State shall receive a grant under paragraph (1) for any fiscal year in an amount that is greater than 20 percent of the amount reserved under such paragraph for the fiscal year. ‘‘(3) CARRYOVER OF AMOUNTS.— ‘‘(A) FIRST SUCCEEDING FISCAL YEAR.—Pursuant to sec tion 421(b) of the General Education Provisions Act, amounts under a grant provided under paragraph (1) that are not obligated and expended prior to the beginning of the first fiscal year succeeding the fiscal year for which such amounts were appropriated shall remain available for obligation and expenditure during such first succeeding fiscal year.
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