; and (ii) not more than 15 percent of the funds will be reserved for statewide workforce investment activities referred to in section 128(a)(1) of the Workforce Innovation and Opportunity Act. (4) Exclusion of States excluding the State TANF program as a mandatory one-stop partner under the WIOA The authority provided by this subsection may not be exercised by a State that has provided the notification referred to in section 407(a)(3)(D). . 8. Targeting funds to core purposes (a) Requirement that States reserve 25 percent of grant for spending on core activities Section 408(a) ( 42 U.S.C. 608(a) ) is amended by adding at the end the following: (13) Requirement that States reserve 25 percent of grant for spending on core activities A State to which a grant is made under section 403(a)(1) for a fiscal year shall expend not less than 25 percent of the grant on assistance, case management, work supports and supportive services, work, wage subsidies, work activities (as defined in section 407(d)), and non-recurring short-term benefits. . (b) Requirement that at least 25 percent of qualified State expenditures be for core activities Section 408(a) ( 42 U.S.C. 608(a) ), as amended by subsection (a) of this section, is amended by adding at the end the following: (14) Requirement that at least 25 percent of qualified State expenditures be for core activities Not less than 25 percent of the qualified State expenditures (as defined in section 409(a)(7)(B)(i)) of a State during the fiscal year shall be for assistance, case management, work supports and supportive services, work, wage subsidies, work activities (as defined in section 407(d)), and non-recurring short-term benefits. . (c) Phase-Out of counting of third-Party contributions as qualified State expenditures Section 408(a) ( 42 U.S.C. 608(a) ), as amended by subsections (a) and (b) of this section, is amended by adding at the end the following: (15) Phase-out of counting of third-party contributions as qualified State expenditures (A) In general The qualified State