ALLOTMENTS TO STATE AND FEDERAL SET-ASIDES.

SEC. 6502. ALLOTMENTS TO STATE AND FEDERAL SET-ASIDES. (a) In General.—Section 502 of the Social Security Act (42 U.S.C. 702) is amended— (1) by amending the first sentence of paragraph (1) of subsection (a) to read as follows: “Of the amounts appropriated under section 501(a) for a fiscal year that are not in excess of $600,000,000, the Secretary shall retain an amount equal to 15 percent for the purpose of carrying out activities described in section 501(a)(2).”; (2) in subsection (a)(3), by inserting “or subsection (b)” after “this subsection”; (3) by striking subsection (c), by redesignating subsection (b) as subsection (c), and by inserting after subsection (a) the following new subsection: “(b) (1)(A) Of the amounts appropriated under section 501(a) for a fiscal year in excess of $600,000,000 the Secretary shall retain an amount equal to 12% percent thereof for the projects described in subparagraphs (A) through (F) of section 501(a)(3). “(B) Any amount appropriated under section 501(a) for a fiscal year in excess of $600,000,000 that remains after the Secretary has retained the applicable amount (if any) under subparagraph (A) shall be retained by the Secretary in accordance with subsection (a) and allocated to the States in accordance with subsection (c). “(2)(A) Of the amounts retained for the purpose of carrying out activities described in section 501(a)(3)(A), (B), (C), (D) and (E), the Secretary shall provide preference to qualified applicants which demonstrate that the activities to be carried out with such amounts shall be in areas with a high infant mortality rate (relative to the average infant mortality rate in the United States or in the State in which the area is located). “(B) In carrying out activities described in section 501(a)(3)(D), the Secretary shall not provide for developing or expanding a maternal and child health center unless the Secretary has received satisfactory assurances that there will be applied, towards the costs of such development or expansion, non-Federal funds in an amount at least equal to the amount of funds provided under this title toward such development or expansion.”; and (4) in subsection (c), as redesignated by paragraph (2)— (A) by striking “$478,000,000” and inserting “$600,000,000”, and (B) by amending paragraph (2) to read as follows: “(2) Each such State shall be allotted for each fiscal year an amount equal to the sum of— “(A) the amount of the allotment to the State under this subsection in fiscal year 1983, and 103 STAT. 2276 “(B) the State’s proportion (determined under paragraph (I)(B)(ii)) of the amount by which the allotment available under this subsection for all the States for that fiscal year exceeds the amount that was available under this subsection for allotment for all the States for fiscal year 1983.”. (b) Conforming Amendments.—Sections 503(a) and 508(b) of such Act (42 U.S.C. 703(a), 708(b)) are amended by striking “502(b)” each place it appears and inserting “502(c)”.