LIMITATIONS ON USES OF FUNDS.

SEC. 302. LIMITATIONS ON USES OF FUNDS. (a) Retraining Services.— Section 315(a)(l) of the Act (29 U.S.C. 1661d(a)(1)) is amended to read as follows: “(a) Retraining Services.— (1) Of the funds allocated to a substate grantee under part A of this title for any program year, not less than 50 percent shall be expended for retraining services specified under section 314(d).”. (b) Needs-Related Payments and Supportive Services.— Section 315(b) of the Act is amended to read as follows: “(b) Of the funds allocated to a substate grantee or to the Governor under part A of this title for any program year, not more than 25 percent may be expended to provide needs-related payments and other supportive services.”. (c) Administrative Cost.— The first sentence of section 315(c) of the Act is amended to read as follows: “Of the funds allocated to a substate grantee or to the Governor under part A of this title for any program year, not more than 15 percent may be expended to cover the administrative cost of programs.”. (d) Combination of Funds.— Section 315 of the Act is further amended by adding at the end the following new subsection: “(d) Combination of Funds.— Substate grantees within a State may combine funds under this title for the provision of services to eligible dislocated workers from 2 or more substate areas.”. (e) Reallotment.— Section 315 of the Act is further amended by adding at the end the following new subsection: 106 STAT. 1074 “(e) Definition.— As used in this section, the term ‘allocated’, means allocated for a program year, as adjusted for reallocations between substate areas, and for reallotments in accordance with section 303.”.