DEMONSTRATION PROJECTS.

SEC. 2348. DEMONSTRATION PROJECTS. The Secretary shall establish a program of competitive grants to rural areas to serve as demonstration areas for rural economic development and as models of such development for other areas. In awarding such grants, the Secretary shall favorably consider a request for funds from a rural area that the Secretary determines— (1) demonstrates the ability to supplement the grant funds provided under this section with other funds from State, local, or private sources; (2) demonstrates the ability to use the grant funds to increase employment in the area; and (3) can successfully serve as a demonstration area to share the results of the project to the benefit of other rural areas in the region.