; or ; and (III) by adding at the end the following: (iv) fails to show improvement on closing equity gaps for the populations identified in section 113(c)(2)(A) for 3 consecutive years. ; (ii) by redesignating subparagraph (B) as subparagraph (C); and (iii) by inserting after subparagraph (A) the following: (B) Use of funds An eligible agency shall use funds made available under section 112(c) for the purposes described in section 124(b)(10) when the eligible agency— (i) fails to show improvement in closing equity gaps within the first program year of implementation of its improvement plan described in paragraph (1); or (ii) fails to show improvement on closing equity gaps for the populations identified in section 113(c)(2)(A) for 3 consecutive years. ; and (2) in subsection (b)— (A) in paragraph (1), by inserting conduct an equity gap analysis to after shall ; (B) in paragraph (2)— (i) by inserting , or failed to show improvement on the closing of equity gaps identified in section 113(b)(4)(C)(ii)(II), after upon local adjusted level of performance ; and (ii) by striking (with special consideration to performance gaps identified under section 113(b)(4)(C)(ii)(II)) ; and (C) in paragraph (4)— (i) in subparagraph (A)— (I) in clause (ii)— (aa) by inserting in closing equity gaps or after any improvement ; and (bb) by striking or after the semicolon; (II) in clause (iii), by striking the period at the end and inserting ; or ; and (III) by adding at the end the following: (iv) fails to show improvement on closing equity gaps for the populations identified in section 113(b)(4)(C)(ii)(I) for 3 consecutive years.