; and (C) by striking paragraphs (3), (4), and (5) and inserting the following: (3) Innovation (A) Grant program To identify and support innovative strategies and activities to improve career and technical education and align workforce skills with labor market needs as part of the plan developed under subsection (c) and the requirements of this subsection, the Secretary may award grants to eligible entities to— (i) create, develop, implement, or take to scale evidence-based, field initiated innovations, including through a pay for success initiative to improve student outcomes in career and technical education; and (ii) rigorously evaluate such innovations. (B) Matching funds (i) Matching funds required Except as provided under clause (ii), to receive a grant under this paragraph, an eligible entity shall, through cash or in-kind contributions, provide matching funds from public or private sources in an amount equal to at least 50 percent of the funds provided under such grant. (ii) Exception The Secretary may waive the matching fund requirement under clause (i) if the eligible entity demonstrates exceptional circumstances. (C) Application To receive a grant under this paragraph, an eligible entity shall submit to the Secretary at such a time as the Secretary may require, an application that— (i) identifies and designates the agency, institution, or school responsible for the administration and supervision of the program assisted under this paragraph; (ii) identifies the source and amount of the matching funds required under subparagraph (B)(i); (iii) describes how the eligible entity will use the grant funds, including how such funds will directly benefit students, including special populations, served by the eligible entity; (iv) describes how the program assisted under this paragraph will be coordinated with the activities carried out under section 124 or 135; (v) describes how the program assisted under this paragraph aligns with the single plan described in subsection (c)