; (II) 1.00, plus the percentage (if any) by which the average of the CPI for the 12-month period ending with June of the preceding fiscal year exceeds the average of the CPI for the 12-month period ending with June 1996, expressed as a decimal; and (III) 1.00, plus the percentage (if any) by which the most recent estimate by the Bureau of the Census of the population of the State that has not attained 18 years of age exceeds the most recent estimate by the Bureau of the Census of that population as of July 1, 1996, expressed as a decimal. (iii) CPI defined In clause (ii), the term CPI means the last Consumer Price Index for All Urban Consumers published by the Department of Labor for the period involved. (C) Appropriation Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated such sums as are necessary for grants under this paragraph for each fiscal year. . (2) Conforming amendment to eliminate supplemental grants for population increases in certain States Section 403(a) ( 42 U.S.C. 603(a) ) is amended by striking paragraph (3). (b) Penalty for failure To maintain effort adjusted for inflation Section 409(a)(7) ( 42 U.S.C. 609(a)(7) ) is amended— (1) in subparagraph (A), by inserting the inflation-adjusted before historic State expenditures ; and (2) in subparagraph (B), by redesignating clauses (iii) through (v) as clauses (iv) through (vi), respectively, and inserting after clause (ii) the following: (iii) Inflation-adjusted historic State expenditures The term inflation-adjusted historic State expenditures means, with respect to a fiscal year— (I) historic State expenditures