123STA T . 2 894PUBLIC LA W 111 – 8 7—O CT. 3 0, 2009 (B)insect i o n 26 22(c)( 4 )( A ) (42 U.S . C . 30 0 f f – 3 1a (c)(4)(A)) , int h e m atte r fo l lo w in g cla u se (ii), by stri k ing ‘ ‘2 p ercent ’ ’an d inserting ‘‘ 5 percent’’. (2) A UTHORI T Y R EGA R D I N GAD M INI S TRATION O FP RO V ISION. —T itle X X VI (42 U.S.C. 300ff–11 et se q .) is amended— (A) in section 2603(c) (42 U.S.C. 300ff–13(c)), by adding at the end the following
‘‘(4) AUTHORITY REGARDING ADMINISTRATION OF PROVI - SIONS.—In administering paragraphs (2) and (3) with respect to the unobligated balance of an eligible area, the Secretary may elect to reduce the amount of future grants to the area under subsection (a) or (b), as applicable, by the amount of any such unobligated balance in lieu of cancelling such amount as pro v ided for in paragraph (2) or (3)(A). In such case, the Secretary may permit the area to use such unobligated balance for purposes of any such future grant. An amount equal to such reduction shall be available for use as additional amounts for grants pursuant to subsection (b), sub j ect to subsection (a)(4) and section 2610(d)(2). N othing in this paragraph shall be construed to affect the authority of the Secretary under paragraphs (2) and (3), including the authority to grant waivers under paragraph (3)(A). The reduction in future grants author- i z ed under this paragraph shall be notwithstanding the penalty required under paragraph (3)( D ) with respect to unobligated funds.’’
(B) in section 2622 (42 U.S.C. 300ff–31a), by adding at the end the following: ‘‘(e) AUTHORITY R EGARDING ADMINISTRATION OF P ROVISIONS.— In administering subsections (b) and (c) with respect to the unobli- gated balance of a State, the Secretary may elect to reduce the amount of future grants to the State under section 261 8 , 2620, or 2621, as applicable, by the amount of any such unobligated balance in lieu of cancelling such amount as provided for in sub- section (b) or (c)(1). In such case, the Secretary may permit the State to use such unobligated balance for purposes of any such future grant. An amount equal to such reduction shall be available for use as additional amounts for grants pursuant to section 2620, subject to section 2618(a)(2)( H ). Nothing in this paragraph shall be construed to affect the authority of the Secretary under sub- sections (b) and (c), including the authority to grant waivers under subsection (c)(1). The reduction in future grants authorized under this subsection shall be notwithstanding the penalty required under subsection (c)(4) with respect to unobligated funds.’’; (C) in section 2603(b)(1)(H) (42 U.S.C. 300ff– 13(b)(1)(H)), by striking ‘‘canceled’’ and inserting ‘‘canceled, offset under subsection (c)(4),’’; and (D) in section 2620(a)(2) (42 U.S.C. 300ff–2 9 a(a)(2)), by striking ‘‘canceled’’ and inserting ‘‘canceled, offset under section 2622(e),’’. (c) CONSIDERATION OF W AIVER AMOUNTS IN DETERMINING UNO BL IGATED BALAN C ES.— (1) PART A GRANTS.—Section 2603(c)(3)(D)(i)(I) (42 U.S.C. 300ff–14(c)(3)(D)(i)(I)) is amended by inserting after ‘‘unobli- gated balance’’ the following: ‘‘(less any amount of such balance that is the subject of a waiver of cancellation under subpara- graph (A))’’. 42USC30 0 f f –1 3 .
