ALLOCATION AMONG STATES.

SEC. 106. ALLOCATION AMONG STATES. (a) In General.— There shall be allocated to each State for each entitlement period, out of amounts appropriated under section 105(b)(1) for that entitlement period, an amount which bears the same ratio to the amount appropriated under that section for that period as the amount allocable to that State under subsection (b) bears to the sum of the amounts allocable to all States under subsection (b). (b) Determination of Allocable Amount.— 86 Stat. 922 (1) In general.— For purposes of subsection (a), the amount allocable to a State under this subsection for any entitlement period shall be determined under paragraph (2), except that such amount shall be determined under paragraph (3) if the amount allocable to it under paragraph (3) is greater than the sum of the amounts allocable to it under paragraph (2) and subsection (c). (2) Three factor formula.— For purposes of paragraph (1), the amount allocable to a State under this paragraph for any entitlement period is the amount which bears the same ratio to $5,300,000,000 as— (A) the population of that State, multiplied by the general tax effort factor of that State, multiplied by the relative income factor of that State, bears to (B) the sum of the products determined under subparagraph (A) for all States. (3) Five factor formula.— For purposes of paragraph (1), the amount allocable to a State under this paragraph for any entitlement period is the amount to which that State would be entitled if— (A) ⅓ of $3,500,000,000 were allocated among the States on the basis of population, (B) ⅓ of $3,500,000,000 were allocated among the States on the basis of urbanized population, (C) ⅓ of $3,500,000,000 were allocated among the States on the basis of population inversely weighted for per capita income, (D) ½ of $1,800,000,000 were allocated among the States on the basis of income tax collections, and (E) ½ of $1,800,000,000 were allocated among the States on the basis of general tax effort. (c) Noncontiguous States Adjustment.— (1) In general.— In addition to amounts allocated among the States under subsection (a), there shall be allocated for each entitlement period, out of amounts appropriated under section 105(b)(2), an additional amount to any State (A) whose allocation under subsection (b) is determined by the formula set forth in paragraph (2) of that subsection and (B) in which civilian employees of the United States Government receive an allowance under section 5941 of title 5, United States Code. (2) Determination of amount.— The additional amount allocable to any State under this subsection for any entitlement period is an amount equal to a percentage of the amount allocable to that State under subsection (b)(2) for that period which is the same as the percentage of basic pay received by such employees stationed in that State as an allowance under such section 5941. If the total amount appropriated under section 105(b)(2) for any entitlement period is not sufficient to pay in full the additional 11 mounts allocable under this subsection for that period, the Secretary shall reduce proportionately the amounts so allocable.