DIRECT EXPENDITURE OR REDISTRIBUTION BY RECIPIENT.

SEC. 212. DIRECT EXPENDITURE OR REDISTRIBUTION BY RECIPIENT. (a) In General.—Title II of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3141 et seq.) (as amended by section 211) is amended by adding at the end the following: “SEC. 217. DIRECT EXPENDITURE OR REDISTRIBUTION BY RECIPIENT. “(a) In General.—Subject to subsection (b), a recipient of a grant under section 201, 203, or 207 may directly expend the grant funds or may redistribute the funds in the form of a subgrant to other eligible recipients to fund required components of the scope of work approved for the project. “(b) Limitation.—A recipient may not redistribute grant funds received under section 201 or 203 to a for-profit entity. “(c) Economic Adjustment.—Subject to subsection (d), a recipient of a grant under section 209 may directly expend the grant funds or may redistribute the funds to public and private entities in the form of a grant, loan, loan guarantee, payment to reduce interest on a loan guarantee, or other appropriate assistance. “(d) Limitation.—Under subsection (c), a recipient may not provide any grant to a private for-profit entity.” . (b) Conforming Amendment.—The table of contents contained in section 1(b) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3121 note) is amended by inserting after the item relating to section 216 the following: “Sec. 217. Direct expenditure or redistribution by recipient.”.