WAIVER OF EXISTING PERCENTAGE SET ASIDE OF ALLOTMENTS.

SEC. 302. WAIVER OF EXISTING PERCENTAGE SET ASIDE OF ALLOTMENTS. Section 670D(c) of the State Dependent Care Development Grants Act (42 U.S.C. 9874(c)) is amended— (1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, (2) by striking “Of” and inserting “(1) Except as provided in paragraph (2), of”, and (3) by adding at the end the following: “(2) For any fiscal year the Secretary may waive the percentage requirements specified in paragraph (1) on the request of a State if such State demonstrates to the satisfaction of the Secretary— “(A) that the amount of funds available as a result of one of such percentage requirements is not needed in such fiscal year for the activities for which such amount is so made available; and “(B) the adequacy of the alternative percentages, relative to need, the State specifies the State will apply with respect to all of the activities referred to in paragraph (1) if such waiver is granted.”.