the tribal FMAP is less than the Federal medical assistance percentage that applies to the State in which the Indian tribe or tribal consortium is located in which case the State Federal medical assistance percentage shall apply. In the case of an Indian tribe or tribal consortium that is located in more than 1 State, the State in which the Indian tribe or tribal consortium is located that has the highest Federal medical assistance percentage shall apply to the preceding sentence. 1308. Direct funding and administration for programs operated by local governments (a) In general The Secretary shall establish procedures under which a local government, or a consortium of local governments within a State, may submit an application to the Secretary to establish a program under this title and directly receive payments for expenditures made to carry out the program (in this section referred to as a local government program application ), if— (1) the State in which the local government or consortium is located has not elected to establish a State program under this title