; multiplied by (II) 1.00, plus (in the case of fiscal year 2018 or any succeeding fiscal year) the percentage (if any) by which the average of the CPI (as defined in section 403(a)(1)(B)(iii)) for the 12-month period ending with June of the preceding fiscal year exceeds the average of the CPI (as so defined) for the 12-month period ending with June 2016, expressed as a decimal. . (c) Modification of contingency fund (1) In general Section 403(b) ( 42 U.S.C. 603(b) ) is amended by striking all that follows paragraph (1) and inserting the following: (2) Grants (A) In general The Secretary shall make a grant to each eligible State and each Indian tribe that is an economically needy entity for a calendar quarter, in an amount equal to 80 percent of the amount (if any) by which the total amount of relevant expenditures of the entity for the quarter exceeds the total amount of the relevant expenditures of the entity for the corresponding quarter in the base year of the entity, subject to paragraph (2). (B) Limitation The total amount payable to an entity under this subsection for a fiscal year shall not exceed an amount equal to 25 percent of the amount payable to the entity— (i) if the entity is a State, under section 403(a)(1) for the fiscal year; or (ii) if the entity is an Indian tribe, under section 412(a)(1) for the fiscal year. (3) Definitions In paragraph (2): (A) Economically needy entity The term economically needy entity means an entity with respect to a calendar quarter— (i) if the seasonally adjusted average unemployment rate with respect to the entity for the quarter or any of the preceding 4 calendar quarters exceeds 6.5 percent