PROMPT ALLOCATION OF FUNDS.

SEC. 141. PROMPT ALLOCATION OF FUNDS. Section 162 of the Act (29 U.S.C. 1572) is amended by adding at the end the following new subsection: “(f) When contracting with nonprofit organizations of demonstrated effectiveness, the Secretary, States, substate areas, and service delivery areas may make advance payments, provided that such payments are based on the financial need of such organization and are not in excess of 20 percent of the total contract amount.”.