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1 such operation commenced, 60 per centum of such costs for 2 the first year thereafter, 45 per centum of such costs for

3 the second year thereafter, and 30 per centum of such costs 4 for the third year thereafter.

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(d) The Secretary is also authorized to make grants 6 upon application approved by the State agency designated 7 under section 101 to administer the State plan, to public or 8 nonprofit agencies, institutions, or organizations to assist them 9 in meeting the costs of planning rehabilitation facilities and 10 the services to be provided thereby.

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VOCATIONAL TRAINING SERVICES FOR HANDICAPPED

INDIVIDUALS

13 SEC. 201. (a) For the purpose of making grants and 14 contracts under this section, there is authorized to be appro15 priated $30,000,000 for the fiscal year ending June 30, 16 1973; $35,000,000 for the fiscal year ending June 30, 17 1974; and $40,000,000 for the fiscal year ending June 30,

18 1975.

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(b) (1) The Secretary is authorized to make grants to 20 States and public and nonprofit organizations and agencies 21 to pay the Federal share of the cost of projects for providing 22 vocational training services to handicapped, especially se23 verely handicapped, individuals in public or nonprofit re24 habilitation facilities.

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(2) (A) Vocational training services for purposes of this

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1 subsection, shall include training with a view toward ca2 reer advancement; training in occupational skills; related 3 services, including work evaluation, work testing, provision 4 of occupational tools and equipment required by the 5 individual to engage in such training, and job tryouts; 6 and payment of weekly allowances to individuals receiving 7 such training and related services.

8 (B) Such allowances may not be paid to any indi9 vidual for any period in excess of two years, and such allow10 ances for any week shall not exceed $30 plus $10 for each 11 of the individual's dependents, or $70, whichever is less. In 12 determining the amount of such allowances for any individual, 13 consideration shall be given to the individual's need for such 14 an allowance, including any expenses reasonably attributable 15 to receipt of training services, the extent to which such an 16 allowance will help assure entry into and satisfactory com17 pletion of training, and such other factors, specified by the 18 Secretary, as will promote such individual's capacity to en19 gage in gainful and suitable employment.

20 (3) The Secretary may make a grant for a project pur21 suant to this subsection only on his determination that (A) 22 the purpose of such project is to prepare handicapped, espec23 ially severely handicapped, individuals for gainful and 24 suitable employment; (B) the individuals to receive 25 training services under such project will include only

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1 individuals who have been determined to be suitable for and 2 in need of such training services by the State agency or 3 agencies designated as provided in section 102 (a) (1) of the 4 State in which the rehabilitation facility is located; (C) the 5 full range of training services will be made available to each 6 such individual, to the extent of his need for such services; 7 and (D) the project, including the participating rehabilita8 tion facility and the training services provided, meet such 9 other requirements as he may prescribe in regulations for 10 carrying out the purposes of this subsection.

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(c) (1) The Secretary is authorized to make grants to 12 public or nonprofit rehabilitation facilities, or to an organiza13 tion or combination of such facilities, to pay the Federal 14 share of the cost of projects to analyze, improve, and increase 15 their professional services to handicapped individuals, their 16 management effectiveness, or any other part of their opera17 tions affecting their capacity to provide employment and

18 services for such individuals.

19 (2) No part of any grant made pursuant to this sub20 section may be used to pay costs of acquiring, constructing,

21 expanding, remodeling, or altering any building.

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LOANS AND LOAN GUARANTEES FOR MODERNIZATION AND

CONSTRUCTION OF REHABILITATION FACILITIES

24 SEC. 202. With respect to the carrying out of the pro25 gram under part B of title VI of the Public Health Service 26 Act (42 U.S.C. 291j-1) to guarantee loans to nonprofit

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1 private agencies and to make loans to public agencies for the 2 modernization or construction of nonprofit rehabilitation 3 facilities, the Secretary shall, with respect to such facilities 4 which are rehabilitation facilities as defined in section 6, 5 assure compliance with all the requirements set forth in 6 section 212.

7 ANNUAL INTEREST GRANTS FOR MORTGAGES FOR RE

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HABILITATION FACILITIES

SEC. 203. (a) To assist States and public and nonprofit 10 agencies to reduce the cost of borrowing from other sources 11 for the construction of rehabilitation facilities, the Secretary 12 may, subject to the provisions of section 212, make annual 13 interest grants to such agencies.

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(b) Annual interest grants under this section with re15 spect to any rehabilitation facility shall be made over a fixed

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period not exceeding forty years, and provision for such

grants shall be embodied in a contract guaranteeing their 18 payment over such period. Each such grant shall be in an 19 amount sufficient to reduce by 3 per centum the net 20 effective interest rate otherwise payable on the loan: Pro

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vided, That the amount on which such grant is based shall

be approved by the Secretary.

(c) (1) There are authorized to be appropriated to

the Secretary such sums as may be necessary for the pay

ment of annual interest grants in accordance with this section.

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(2) Contracts for annual interest grants under this sec

2 tion shall not be entered into in an aggregate amount greater

3 than is authorized in appropriation Acts; and in any event 4 the total amount of annual interest grants which may be paid 5 pursuant to contracts entered into under this section shall 6 not exceed $1,000,000 with respect to contracts entered into 7 prior to June 30, 1973; $2,000,000 with respect to contracts 8 entered into prior to June 30, 1974; and $4,000,000 with 9 respect to contracts entered into prior to June 30, 1975. (3) Not more than 15 per centum of the funds expended 11 under this section may be used within any one State in any

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one fiscal year.

SPECIAL PROJECTS AND DEMONSTRATIONS

SEC. 204. (a) (1) For the purpose of making grants 15 under this section for special projects and demonstrations 16 (and research and evaluation connected therewith), there 17 is authorized to be appropriated $50,000,000 for the fiscal 18 year ending June 30, 1973, $100,000,000 for the fiscal year 19 ending June 30, 1974, and $150,000,000 for the fiscal year 20 ending June 30, 1975.

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(2) Of the amounts appropriated pursuant to paragraph 22 (1) of this subsection, 10 per centum, but in no event more 23 than $10,000,000, in each such fiscal year shall be available 24 only for the purpose of making grants under subsection (c) 25 of this section, and there is authorized to be appropriated in

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