; and (ii) could be tested through a demonstration project; and (B) a proposal for a demonstration project to test the most promising insurance model described in subparagraph (A). (2) Demonstration project priority for grant recipients In selecting the jurisdiction in which to conduct the demonstration project proposed under paragraph (1)(B), the Secretary shall give priority to jurisdictions served by a recipient of a covered grant. (3) Budget request After submitting the report under subsection (a), the Secretary shall include in the first annual budget request that the Secretary submits to Congress under section 1105 of title 31, United States Code, a request for funds for the demonstration proposal described in paragraph (1)(B).