part A of title IV which (if applied) would prevent a State from carrying out a demonstration project under this section or prevent the State from effectively achieving the purpose of such a project. (2) Cost and budget neutrality The Secretary shall not impose cost or budget neutrality requirement as a condition for approving a demonstration project under this section. (d) Payment to states (1) Treatment as program expenditures The Secretary shall consider the expenditures of any State to conduct a demonstration project under this section to be expenditures under this part. (2) Enhanced FMAP The enhanced FMAP described in the first sentence of section 2105(b) that is applicable to a State for a fiscal year shall apply to payments made to the State for a fiscal year quarter for expenditures to conduct a demonstration project under this section in lieu of the Federal medical assistance percentage applicable to payments made under section 1304(a) to the State for the quarter. If the State is eligible for an increase in the Federal medical assistance percentage applicable to payments under section 1304(a) in accordance with subsection (b) of section 1304, the enhanced FMAP applicable to the State for the fiscal year shall be used to determine the amount of the increase. (e) Duration of demonstration A demonstration project under this section may be conducted for such period of years as the Secretary and a State shall agree, but for not more than 5 years, unless in the judgment of the Secretary, the demonstration project should be allowed to continue. (f) Indian tribes and local governments An Indian tribe or intertribal consortium approved for payments under section 1307 and a local government or a consortium of local governments within a State approved for payments under section 1308 may be considered a State for purposes of conducting a demonstration project under this section. (g) Pro-Worker employer standard (1) Establishment of standard Not later than 2 years after the date of enactment of this part, the