base year amount
(2) Calculation of State grants (A) Base year Except as provided in subparagraphs (B) and (C), the Secretary shall allot to each State and outlying area for a fiscal year an amount that is not less than the amount the State or outlying area received under the grants provided under section 3011 of this title (as in effect on the day before October 25, 2004 ) for fiscal year 2004. (B) Ratable reduction (i) In general If funds made available to carry out this section for any fiscal year are insufficient to make the allotments required for each State and outlying area under subparagraph (A) for such fiscal year, the Secretary shall ratably reduce the allotments for such fiscal year. (ii) Additional funds If, after the Secretary makes the reductions described in clause (i), additional funds become available to carry out this section for the fiscal year, the Secretary shall ratably increase the allotments, until the Secretary has allotted the entire base year amount. (C) Higher appropriation years Except as provided in subparagraph (D), for a fiscal year for which the amount of funds made available to carry out this section is greater than the base year amount, the Secretary shall— (i) make the allotments described in subparagraph (A); (ii) from a portion of the remainder of the funds after the Secretary makes the allotments described in clause (i), the Secretary shall— (I) from 50 percent of the portion, allot to each State or outlying area an equal amount; and (II) from 50 percent of the portion, allot to each State or outlying area an amount that bears the same relationship to such 50 percent as the population of the State or outlying area bears to the population of all States and outlying areas, until each State has received an allotment of not less than $410,000 and each outlying area has received an allotment of $125,000 under clause (i) and this clause; (iii) from the remainder of the funds after the Secretary makes the allotments described in clause (ii), the Secretary shall— (I) from 80 percent of the remainder allot to each State an amount that bears the same relationship to such 80 percent as the population of the State bears to the population of all States; and (II) from 20 percent of the remainder, allot to each State an equal amount. (D) Special rule for fiscal year 2005 Notwithstanding subparagraph (C), if the amount of funds made available to carry out this section for fiscal year 2005 is greater than the base year amount, the Secretary may award grants on a competitive basis for periods of 1 year to States or outlying areas in accordance with the requirements of subchapter III of this chapter (as in effect on the day before October 25, 2004 ) to develop, support, expand, or administer an alternative financing program. (E) Base year amount In this paragraph, the term “base year amount” means the total amount received by all States and outlying areas under the grants described in subparagraph (A) for fiscal year 2004.