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SEC. 1004. STATE ADMINISTRATION.

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(a) IN GENERAL- Except as provided in subsection (b), to carry out administrative duties assigned under parts A, C, and D of this title, each State may reserve the greater of —

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(1) 1 percent of the amounts received under such parts; or

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(2) $400,000 ($50,000 in the case of each outlying area).

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(b) EXCEPTION- If the sum of the amounts appropriated for parts A, C, and D of this title is equal to or greater than $14,000,000,000, then the reservation described in subsection (a)(1) shall not exceed 1 percent of the amount the State would receive, if $14,000,000,000 were allocated among the States for parts A, C, and D of this title.