; and (3) applications submitted by entities that propose to carry out a pilot program, as described in subsection (d)(3). (d) Activities A State shall use amounts received under a grant under this section for one or more of the following: (1) Needs assessments and planning Grant funds may be used to determine possible barriers to the adoption, implementation, and effective use of the transactions described in subsection (a)(1) in section 1, as well as to explore, identify, and plan options, approaches, and resources to address barriers and make improvements. (2) Education, training, and technical assistance Grant funds may be used to develop and make available training and educational materials, forums, and activities as well as technical assistance to effectively implement, use, and benefit from the transactions described in subsection (a)(1). (3) Pilot program Grant funds may be used for pilot projects to test approaches to implement and use the transactions described in subsection (a)(1) in practice under a variety of different settings. With respect to the electronic attachment transaction, priority shall be given to pilot projects that test and evaluate methods and mechanisms to most effectively incorporate patient health data from electronic health records and other electronic sources with the electronic attachment transaction. All such pilot projects shall include plans to be evaluated for impacts and best practices and for reporting findings for broader Statewide and national use. (4) Adoption and use Grant funds may be used to accelerate the adoption, implementation, and effective use of the transactions described in subsection (a)(1) across State programs. (5) Specifications, incentives, requirements, tools, mechanisms, and resources Grant funds may be used for developing, testing, implementing, and assessing additional data exchange specifications, incentives, requirements, tools, mechanisms and resources to accelerate the adoption and effective use of the transactions described in subsection (a)(1).