; equals (B) the level of funding the participating State and program participants of the participating State would receive for the program year for the covered programs but for obtaining a waiver to carry out the project. (2) Cap on Federal funding (A) In general With respect to any year in which a participating State obtains a waiver of eligibility requirements for a covered program described in subparagraph (B), the total amount that the head of the agency that administers the covered program shall pay to the participating State under the covered program shall not exceed an amount that is equal to the amount that the head of the agency paid to the participating State under the covered program for the previous year, as adjusted to reflect changes in the Consumer Price Index published by the Bureau of Labor Statistics of the Department of Labor. (B) Covered program described A covered program referred to in subparagraph (A) is a covered program under which the amount that the Federal Government provides to a State is dependent on the amount that the State provides to the covered program. (3) Administrative expenses A participating State may use amounts received through a covered program for administrative expenses of carrying out the project in accordance with any requirements of the covered program for the use of amounts for administrative expenses. (i) Existing contracts In the case of a covered program described in subsection (a)(2)(B), a participating State shall fund any contract in effect on the day before the date of commencement of the project for the term of the contract.