FORMULA GRANTS FOR RURAL AREAS.

SEC. 30006. FORMULA GRANTS FOR RURAL AREAS. Section 5311 of title 49, United States Code, is amended— (1) in subsection (c)— (A) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; (B) by striking paragraph (1) and inserting the following: “(1) In general.—Of the amounts made available or appropriated for each fiscal year pursuant to section 5338(a)(2)(F) to carry out this section— “(A) an amount equal to 5 percent shall be available to carry out paragraph (2); and “(B) 3 percent shall be available to carry out paragraph (3). “(2) Public transportation on indian reservations.—For each fiscal year, the amounts made available under paragraph (1)(A) shall be apportioned for grants to Indian tribes for any purpose eligible under this section, under such terms and conditions as may be established by the Secretary, of which— “(A) 20 percent shall be distributed by the Secretary on a competitive basis; and “(B) 80 percent shall be apportioned as formula grants as provided in subsection (j).” ; and (2) in subsection (j)(1)(A), in the matter preceding clause (i), by striking “subsection (c)(1)(B)” and inserting “subsection (c)(2)(B)”.