Payments to governmental entities

(1) Definition of governmental entity In this subsection, the term “governmental entity” means— (A) the Commonwealth of Puerto Rico; and (B) American Samoa.

(2) Block grants (A) Amount of block grants From the sums appropriated under this chapter, the Secretary shall, subject to this section, pay to governmental entities to pay the expenditures for nutrition assistance programs for needy persons as described in subparagraphs (B) and (C)— (i) for fiscal year 2003, $1,401,000,000; and (ii) subject to the availability of appropriations under section 2027(a) of this title , for each fiscal year thereafter, the amount specified in clause (i), as adjusted by the percentage by which the thrifty food plan has been adjusted under section 2012(u)(3) of this title between June 30, 2002 , and June 30 of the immediately preceding fiscal year. (B) Payments to Commonwealth of Puerto Rico (i) In general For fiscal year 2003 and each fiscal year thereafter, the Secretary shall use 99.6 percent of the funds made available under subparagraph (A) for payment to the Commonwealth of Puerto Rico to pay— (I) 100 percent of the expenditures by the Commonwealth for the fiscal year for the provision of nutrition assistance included in the plan of the Commonwealth approved under subsection (b); and (II) 50 percent of the related administrative expenses. (ii) Exception for expenditures for certain systems Notwithstanding clause (i), the Commonwealth of Puerto Rico may spend in fiscal year 2002 or 2003 not more than $6,000,000 of the amount required to be paid to the Commonwealth for fiscal year 2002 under this paragraph (as in effect on the day before May 13, 2002 ) to pay 100 percent of the costs of— (I) upgrading and modernizing the electronic data processing system used to carry out nutrition assistance programs for needy persons; (II) implementing systems to simplify the determination of eligibility to receive the nutrition assistance; and (III) operating systems to deliver the nutrition assistance through electronic benefit transfers. (C) Payments to American Samoa For fiscal year 2003 and each fiscal year thereafter, the Secretary shall use 0.4 percent of the funds made available under subparagraph (A) for payment to American Samoa to pay 100 percent of the expenditures by American Samoa for a nutrition assistance program extended under section 1469d(c) of title 48 . (D) Carryover of funds For fiscal year 2002 and each fiscal year thereafter, not more than 2 percent of the funds made available under this paragraph for the fiscal year to each governmental entity may be carried over to the following fiscal year.

(3) Time and manner of payments to Commonwealth of Puerto Rico The Secretary shall, subject to the provisions of subsection (b), pay to the Commonwealth for the applicable fiscal year, at such times and in such manner as the Secretary may determine, the amount estimated by the Commonwealth pursuant to subsection (b)(1)(A)(iv), reduced or increased to the extent of any prior overpayment or current underpayment which the Secretary determines has been made under this section and with respect to which adjustment has not already been made under this subsection.