opportunities. (H) Such program shall establish or expand diversity and inclusion opportunities and collect disaggregated data on related efforts. (c) Eligibility To be an eligible youth, an individual shall be an in-school youth or an out-of-school youth. 102. Competitive grants to eligible entities (a) In general From the amounts appropriated under section 103(2), the Secretary shall award grants, on a competitive basis, to eligible entities for activities described in subsection (e). (b) Priority In awarding grants under this section, the Secretary shall give priority to eligible entities that serve eligible youth who are individuals with a barrier to employment, youth of color, opportunity youth or out-of-school youth, low-income youth, and youth impacted by the juvenile or adult criminal justice systems. (c) Requirements on uses of funds In awarding funds under this section the Secretary shall ensure the following: (1) Direct financial assistance Not less than 40 percent of such funds are used to provide direct financial assistance to eligible youth described in section 101(c) to support such youth with financial needs with respect to entering, remaining enrolled in, and completing a subsidized public employment program described in section 101(b) (including related costs of training, supplies, food and nutrition, housing, transportation, child care, mental health and substance abuse services, payment of fines, or other targeted costs determined allowable by the Secretary). (2) In-demand industry sectors or occupations Not less than 40 percent of such funds are used to connect eligible youth described in section 101(c) to employers for in-demand industry sectors or occupations, work-based learning opportunities, registered apprenticeship programs, or to reconnect to a public education entity. (3) Diversity and inclusion activities Not less than 10 percent of such funds are used for promoting, creating, or expanding diversity and inclusion activities for the purposes of diversifying workforce systems. (d)