Section 1411 (b) (1) (A)

(A) Funds reservedFrom the amount appropriated for any fiscal year under subsection (i), the Secretary shall reserve not more than 1 percent, which shall be used—

(i)
to provide assistance to the outlying areas in accordance with their respective populations of individuals aged 3 through 21; and
(ii)
to provide each freely associated State a grant in the amount that such freely associated State received for fiscal year 2003 under this subchapter, but only if the freely associated State meets the applicable requirements of this subchapter, as well as the requirements of section 1411(b)(2)(C) of this title as such section was in effect on the day before December 3, 2004.