; and (2) presume in the absence of a contrary showing, that a similar amount or percentage will be allocated by the State in the next fiscal year. (d) Reduction in indirect costs Upon determining the percentage of Federal funding under a given program provided to a State that is used for administrative costs, the head of each agency shall restrict the use of funds by the State for administrative costs, overhead, and salaries for the following year. Such a restriction shall reduce the amount the State may spend on administrative costs by a percentage equivalent to the State’s reduction in its State minimum wage. (e) Exceptions Where the head of an agency has determined that a reduction in program funding for administrative costs to a State shall constitute a threat to the public health, safety, and welfare of the people of the State, then the head of such agency may withhold from the State for administrative costs a lesser amount than that equivalent to the percentage of the State’s minimum wage reduction. (f) Redirection of funds Where possible, the head of each such agency shall direct any funds withheld from a State under this Act to a municipality located in that State where the municipality is an eligible recipient of the funding program in question, and where the municipality would be otherwise eligible to use such funds for administrative costs. Where no such municipality is eligible to directly receive such funds, such funds shall be available to the Secretary of Housing and Urban Development for use only for grants under title I of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5301 et seq.) for metropolitan cities and urban counties in such State that were eligible to receive grants under such title in the most recent fiscal year for which such grants were made. The amount of the funds allocated pursuant to this subsection for each such metropolitan city or urban county in the State shall bear the same ratio to the total amount of funds for the State allocated under this subsection as the