; and (II) shall not be considered in determining the amount of any such Federal student aid. (vii) Rulemaking The Secretary of Education shall promulgate regulations, through notice and comment rulemaking in compliance with section 553 of title 5, United States Code, to implement the American Dream Account competitive grant program authorized under this subparagraph. The Secretary shall issue a notice of proposed rulemaking in the Federal Register not later than 1 year after the date of the enactment of this subsection. (C) Allocations to states (i) In general Subject to clause (iii), the Secretary of Education, after making the allocations under subparagraphs (A) and (B), shall proportionately allocate the remaining amount deposited into the Promoting American Ingenuity Account in each fiscal year to each State that submits an application under subparagraph (D) in an amount that bears the same relationship to such remaining amount as the amount the State received under subpart 2 of part A of title I of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6331 et seq.) for the preceding fiscal year bears to the amount all States received under that subpart for the preceding fiscal year. (ii) Authorized use of state allocations Of the amount each State receives under clause (i) in each fiscal year, the State shall allocate— (I) 50 percent for the activities described in subparagraphs (A), (B), (C), (D), and (G) of paragraph (2)