ADMINISTRATIVE COSTS.

SEC. 506. ADMINISTRATIVE COSTS. Part D of title II (42 U.S.C. 5021 et seq.), as amended by section 502(a) of this Act, is amended by adding at the end the following new section: “adjustments to federal financial assistance “Sec. 226. (a)(1)(A) In determining the amount of Federal financial assistance to be provided under this title to applicants, the Director shall consider the impact of changes in the Consumer Price Index For All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor on the administrative costs of operating the projects for which such assistance will be provided. “(B) The Director shall, to the fullest extent practicable, make appropriate adjustments in the amount referred to in subparagraph (A) to ensure the effective administration of such projects. “(2) The Director shall take reasonable actions to inform applicants for such assistance that such adjustments may be available. “(b) (1) The Director shall submit annually, to the Committee on Education and Labor of the House of Representatives and the Committee on Labor and Human Resources of the Senate, a report on the extent to which adjustments are made under subsection (a). “(2) With respect to each of parts A, B, and C, the Director shall include in such report— “(A) a summary of the number of, and purposes for which, such adjustments are requested by the recipients of grants and contracts under parts A, B, and C, respectively; “(B) a description of the extent that such requests are accommodated; and “(C) a statement explaining the decisions made by the Director with respect to the requested adjustments.”.