STATE BLOCK GRANT PROGRAM.

SEC. 147. STATE BLOCK GRANT PROGRAM. (a) Participating States.— Section 47128 is amended— (1) in subsection (a) by striking “7 qualified States” and inserting “8 qualified States for fiscal year 1997 and 9 qualified States for each fiscal year thereafter”; (2) in subsection (b)(1)— (A) by striking “(1)”; and (B) by redesignating subparagraphs (A) through (E) as paragraphs (1) through (5), respectively; and (3) by striking subsection (b)(2). (b) Use of State Priority System.— Section 47128(c) is amended— (1) by striking “(b)(1)(B) or (C)” and inserting “(b)(2) or (b)(3)”; and (2) by adding at the end the following: “In carrying out this subsection, the Secretary shall permit a State to use the priority system of the State if such system is not inconsistent with the national priority system.”. (c) Repeal of Expiration Date.— (1) In general.— Section 47128 is amended— (A) by striking “pilot” in the section heading; (B) by striking “pilot” in subsection (a); and (C) by striking subsection (d). (2) Conforming amendment.— The table of sections for chapter 471 is amended by striking the item relating to section 47128 and inserting the following: “47128. State block grant program.”.