; (II) is not participating in a collaboration described in such an application; and (III) is located in an eligible State (as defined in subparagraph (A)(iii)) with respect to the application. (iii) Approval; disapproval Subparagraph (A)(v) shall apply to an application submitted by an eligible applicant pursuant to this subparagraph. (iv) Grant authority The Secretary shall make grants, on a competitive basis, to eligible applicants whose applications are approved under clause (iii). (v) Use of funds Subparagraph (A)(vii) shall apply with respect to a grant made under this subparagraph. (C) Limitation on use of funds Funds made available to carry out this section shall be used to supplement, and not supplant, the Federal, State, and local, or tribal, funds that, in the absence of such availability, would be expended to provide services to individuals receiving assistance under a State or tribal program funded under this part or in support of workforce development activities (as defined in section 3(65) of the WIOA). (D) Appropriation Out of funds in the Treasury of the United States not otherwise appropriated, there are appropriated to carry out this paragraph $1,000,000,000 for each fiscal year, of which— (i) 90 percent shall be available for grants under subparagraph (A); and (ii) 10 percent shall be available for grants under subparagraph (B). (E) WIOA defined In this paragraph, the term WIOA means the Workforce Innovation and Opportunity Act. . (b) Exemption from limitation on payments to territories Section 1108(a)(2) of such Act ( 42 U.S.C. 1308(a)(2) ) is amended by inserting 403(a)(6), before 406 . (c) Effective date The amendments made by this section shall take effect on October 1, 2018.