COST SHARING OF DEMONSTRATION HEALTH PROJECTS.

SEC. 207. COST SHARING OF DEMONSTRATION HEALTH PROJECTS. (a) Operation Costs.—Section 202(c) of the Appalachian Regional Development Act of 1965 (40 U.S.C. App.) is amended by striking “100 per centum of the costs thereof’ in the first sentence and all that follows through the period at the end of the second sentence and inserting “50 percent of the costs of that operation (or 80 percent of those costs in the case of a project to be carried out in a county for which a distressed county designation is in effect under section 226).”. (b) Cost Sharing.—Section 202 of the Appalachian Regional Development Act of 1965 (40 U.S.C. App.) is amended by adding at the end the following: “(f) Maximum Commission Contribution After September 30, 1998.— “(1) In general.—Subject to paragraph (2), after September 30, 1998, a Commission contribution of not more than 50 percent of any project cost eligible for financial assistance under this section may be provided from funds appropriated to carry out this Act. “(2) Distressed counties.—In the case of a project to be carried out in a county for which a distressed county designation is in effect under section 226, the maximum Commission contribution under paragraph (1) may be increased to the lesser of— “(A) 80 percent; or “(B) the maximum Federal contribution percentage authorized by this section.”. (c) Technical Amendments.—Section 202 of the Appalachian Regional Development Act of 1965 (40 U.S.C. App.) is amended— (1) by striking “Secretary of Health, Education, and Welfare” each place it appears and inserting “Secretary of Health and Human Services”; and (2) in subsection (c), by striking the last sentence.