(a)(1) with respect to such year. (B) Mandatory reduction For each year after the expiration of the periods referred to in subparagraph (A), the Attorney General shall withhold 5 percent of the amount that would otherwise be allocated to a State for such year under section 505 of the Omnibus Crime Control and Safe Streets Act of 1968 ( 42 U.S.C. 3755 ), if the State is not in compliance with each requirement under subsection (a)(1) with respect to such year. (C) Waiver by Attorney General The Attorney General may waive the applicability of subparagraph (B) to a State with respect to the requirements described in subparagraphs (A), (B), and (C) of subsection (a)(1) if the State provides substantial evidence, as determined by the Attorney General, that the State is making a reasonable effort to comply with such requirements. (3) Reallocation Any funds that are not allocated under section 505 of the Omnibus Crime Control and Safe Streets Act of 1968 ( 42 U.S.C. 3755 ) to a State pursuant to paragraph (2) because of the failure of the State to comply with the requirements of subsection (a)(1) shall be reallocated under such section to States that meet such requirements. 3. Additional Firearms Prohibitions to Federal NICS System Based on State Reporting Systems Section 922 of title 18, United States Code, is amended— (1) in subsection (d)— (A) by amending paragraph (4) to read as follows: (4) has been— (A) adjudicated as a mental defective