Allotments to Indian tribes
(1) If, with respect to any State, the Secretary— (A) receives a request from the governing organization of an Indian tribe within the State that assistance under this subchapter be made directly to such organization; and (B) determines that the members of such tribe would be better served by means of grants made directly to provide benefits under this subchapter; the Secretary shall reserve from amounts which would otherwise be payable to such State from amounts allotted to it under this subchapter for the fiscal year involved the amount determined under paragraph (2).
(2) The amount determined under this paragraph for a fiscal year is the amount which bears the same ratio to the amount which would (but for this subsection) be allotted to such State under this subchapter for such fiscal year (other than by reason of section 8626(b)(2) of this title ) as the number of Indian households described in subparagraphs (A) and (B) of section 8624(b)(2) of this title and residing within the State on the reservation of the tribes or on trust lands adjacent to such reservation bears to the number of all households described in subparagraphs (A) and (B) of section 8624(b)(2) of this title in such State, or such greater amount as the Indian tribe and the State may agree upon. In cases where a tribe has no reservation, the Secretary, in consultation with the tribe and the State, shall define the number of Indian households for the determination under this paragraph.
(3) The sums reserved by the Secretary on the basis of a determination under this subsection shall be granted to— (A) the tribal organization serving the individuals for whom such a determination has been made; or (B) in any case where there is no tribal organization serving an individual for whom such a determination has been made, such other entity as the Secretary determines has the capacity to provide assistance pursuant to this subchapter.
(4) In order for a tribal organization or other entity to be eligible for an amount under this subsection for a fiscal year, it shall submit to the Secretary a plan (in lieu of being under the State’s plan) for such fiscal year which meets such criteria as the Secretary may by regulations prescribe.