1. Short title This Act may be cited as the COVID–19 Testing, Reaching, And Contacting Everyone (TRACE) Act . 2. COVID–19 testing and contact tracing using mobile health units (a) In general The Secretary of Health and Human Services, acting through the Director of the Centers for Disease Control and Prevention, may award grants to eligible entities to conduct diagnostic testing for COVID–19, to trace and monitor the contacts of infected individuals, and to support the quarantine of such contacts, through— (1) mobile health units; and (2) as necessary, testing individuals and providing individuals with services related to testing and quarantine at their residences. (b) Permissible uses of funds A grant recipient under this section may use the grant funds, in support of the activities described in subsection (a)— (1) to hire, train, compensate, and pay the expenses of individuals; and (2) to purchase personal protective equipment and other supplies. (c) Priority In selecting grant recipients under this section, the Secretary shall give priority to— (1) applicants proposing to conduct activities funded under this section in hot spots and medically underserved communities; and (2) applicants that agree, in hiring individuals to carry out activities funded under this section, to hire residents of the area or community where the activities will primarily occur, with higher priority among applicants described in this paragraph given based on the percentage of individuals to be hired from such area or community. (d) Distribution In selecting grant recipients under this section, the Secretary shall ensure that grants are distributed across urban and rural areas. (e) Federal privacy requirements Nothing in this section shall be construed to supersede any Federal privacy or confidentiality requirement, including the regulations promulgated under section 264(c) of the Health Insurance Portability and Accountability Act of 1996 ( Public Law 104–191