ALLOCATION OF FUNDS.

SEC. 122. ALLOCATION OF FUNDS. (a) Competitive Grant.—The Commission shall award grants under this subtitle on a competitive basis to States or Indian tribes that have submitted applications under section 123. (b) Direct Grants.— (1) In general.—In the case of a State that does not apply for a grant under this subtitle or have an application approved under section 123, the Commission may award grants directly to public or private nonprofit agencies with experience in youth programs within such State. (2) Evaluation.— (A) Application of criteria.—The Commission shall apply the criteria described in section 123 in determining whether to award a grant to a local applicant under this subsection. (B) Equitable allocation.—If more than one local applicant within a State applies for funds, the Commission shall allocate funds among such applicants in such manner as the Commission considers equitable. (3) Indian tribes.—An Indian tribe shall be treated the same as a State for purposes of making grants under this subtitle. (4) Grant to federal agency.—If a State has failed to establish a youth corps program and no local youth corps programs exist within such State, the Commission may make a grant to a Federal agency to directly administer a youth corps program. (c) Limitation.— (1) Capital equipment.—Not to exceed 10 percent of the amount of assistance made available to a program agency under 104 STAT. 3141 this subtitle shall be used for the purchase of major capital equipment. (2) Administrative expenses.— (A) By program agency.—Not to exceed 5 percent of the amount of assistance made available to a program agency under this subtitle shall be used for administrative expenses. (B) By state.—Not to exceed 5 percent of the amount of assistance made available to a State under this subtitle shall be used for administrative expenses. (d) Reservation.— (1) Federal disaster relief.—The Commission shall reserve not to exceed 5 percent of the amounts made available in each fiscal year to make grants under this subtitle for Federal disaster relief programs. (2) Indian tribes.—The Commission shall reserve not to exceed 1 percent of the amounts made available in each fiscal year to make grants under this subtitle to Indiem tribes. (e) Equitable Funding of Conservation and Service Programs.—The Commission shall award an equal number of grants to conservation corps programs and youth corps programs.