determines to be appropriate. (iii) States (I) In general The amount of a grant under this paragraph payable for a fiscal year to a qualifying entity that is a State shall be the amount that bears the same ratio to the aggregate amount as the number of individuals residing in the State who have attained 18 years of age but have not attained 67 years of age who are not employed or underemployed (such as involuntarily working part-time), as determined by the Secretary, bears to the total number of such individuals residing in all qualifying entities that are States. (II) Aggregate amount For purposes of this clause, the term aggregate amount means the amount made available for a fiscal year under paragraph (2) that remains after applying clauses (i) and (ii). (iv) Unused funds (I) Reasonable limits on carrying over funds The Secretary shall set reasonable limits on the amount of funds a State receiving a grant under this paragraph may carry over for expenditure in fiscal years after the fiscal year for which the grant is awarded. (II) Redistribution of unused funds Any portion of the amount of a grant made to a State under clause (iii) that the Secretary determines will not be used by the State shall be redistributed among the States that the Secretary determines will not have such an unused amount, using the rules specified in clause (iii). Any amount so redistributed to a State is deemed part of the grant made to the State under the preceding provisions of this paragraph. (D) Use of funds (i) Employment programs (I) Subsidized employment A qualifying entity awarded a grant under this paragraph shall use the grant funds to conduct a subsidized employment program to assist recipients of TANF cash assistance and TANF-eligible individuals who are not recipients of cash assistance in obtaining paid employment. (II) Sectoral skills training A qualifying entity may use not more than 15 percent of funds awarded to the entity under this paragraph for a fiscal year to conduct a sectoral skills training program to provide