SUPPLEMENTARY GRANTS.

SEC. 203. SUPPLEMENTARY GRANTS. (a) In General.—Section 205 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3145) is amended by striking subsection (b) and inserting the following: “(b) Supplementary Grants.—Subject to subsection (c), in order to assist eligible recipients in taking advantage of designated Federal grant programs, on the application of an eligible recipient, the Secretary may make a supplementary grant for a project for which the recipient is eligible but for which the recipient cannot provide the required non-Federal share because of the economic situation of the recipient.”. (b) Requirements Applicable to Supplementary Grants.—Section 205(c) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3145(c)) is amended—(1) by striking paragraphs (1) and (2) and inserting the following: “(1) Amount of supplementary grants.—The share of the project cost supported by a supplementary grant under this section may not exceed the applicable Federal share under section 204. “(2) Form of supplementary grants.—The Secretary shall make supplementary grants by—“(A) the payment of funds made available under this Act to the heads of the Federal agencies responsible for carrying out the applicable Federal programs; or 118 STAT. 1761“(B) the award of funds under this Act, which will be combined with funds transferred from other Federal agencies in projects administered by the Secretary.”; and (2) by striking paragraph (4).