; and (B) any interest earned on investment of amounts in the Fund. (2) Use of amounts The Secretary shall use amounts in the Fund to make payments to grantees under grants under this section in accordance with paragraph (3). (3) Payments (A) In general The Secretary shall determine the annual amount of a grant under this section based on a formula to be developed by the Secretary. (B) Payments The Secretary shall make payments to grantees under this section in a manner determined appropriate by the Secretary. The Secretary shall not make subsequent payments to a grantee after the initial payment until the grantee certifies to the Secretary that the grantee has expended, transferred, or obligated not less than 80 percent of the most recent payment made under this subsection. (g) Limitations An eligible entity may not use amounts received under a grant under this section to— (1) employ individuals who will replace, or lead to the displacement of, existing employees, positions, or individuals who would otherwise perform similar employment; (2) perform functions otherwise prohibited by Federal, State, or local laws; and (3) carry out other prohibited activities, as determined by the Secretary. (h) Federal provision of jobs in pilot sites (1) Guidance Not later than 30 days after the date on which the Secretary awards the first grant under this section, the Secretary shall— (A) provide guidance to the heads of appropriate Federal agencies to notify such agencies of job guarantee programs established under such grants