; or (ii) reviewing records or other information in the covered system as described in subparagraphs (E) and (F). (c) Ineligibility for funds (1) In general A covered government may not receive funds under section 505, 506, 515, or 516 unless the covered government is in compliance with subsection (b) of this section. (2) Reallocation Amounts not allocated under a section referred to in paragraph (1) to a covered government for failure to comply with subsection (b) shall be reallocated to the United States Treasury. (d) One-Time grant (1) In general The Attorney General shall award a grant to each State, using an apportionment formula that reflects the differences between each State, to be used by the State and units of local government within the State to establish covered systems. (2) Amount The amount of a grant awarded to a State under paragraph (1) shall be not less than $1,000,000. (3) Direct appropriations For the purpose of making grants under this subsection, there is authorized to be appropriated $100,000,000, to remain available until expended. (e) Indemnification (1) In general The United States shall indemnify and hold harmless a covered government, and any law enforcement agency thereof, against any claim (including reasonable expenses of litigation or settlement) by any person or entity related to— (A) the retention of records in a covered system as required under subsection (b); or (B) the review of records included in a covered system as required under subsection (b). (2) Limitation Paragraph (1) shall not apply to the release of a record— (A) to a non-law enforcement entity or individual; or (B) for a purpose other than making a decision to hire a law enforcement officer. . (b) Effective date Section 531(c) of title I of the Omnibus Crime Control and Safe Streets Act of 1968, as added by subsection (a), shall take effect on October 1 of the first fiscal year beginning after the date of enactment of this Act.