; and (ii) the probable benefit of 100 percent Federal financing outweighs the public interest in imposition of the non-Federal share requirement. (C) Exception The Federal share of direct assistance as described in subsection (f)(5)(C)(i)(VIII) shall be equal to 100 percent. (2) Limitations on administrative expenses (A) Federal Not more than 3 percent of the funds available under this section may be used for administrative expenses by the National Oceanographic and Atmospheric Administration. (B) State or tribal governments Of the funds remaining after the use described in subparagraph (B), not more than 5 percent may be used by States, tribal governments, or interstate marine fisheries commissions for administrative expenses. (3) Fishing capacity reduction program (A) In general No funds available under this section may be used as part of a fishing capacity reduction program in a fishery unless the Secretary determines that adequate conservation and management measures are in place in such fishery. (B) Assistance conditions As a condition of providing assistance under this section with respect to a vessel under a fishing capacity reduction program, the Secretary shall— (i) prohibit the vessel from being used for fishing; and (ii) require that the vessel be— (I) scrapped or otherwise disposed of in a manner approved by the Secretary; (II) donated to a nonprofit organization and thereafter used only for purposes of research, education, or training