; State failure to participate If the Secretary reduces or eliminates funding to a State under subparagraph (B) or, if, for a particular fiscal year, a State fails to participate in the block grant program established by this subtitle by failing to submit a plan to the Secretary, submitting a plan that does not meet the Secretary’s requirements, otherwise electing not to receive funding under this subtitle, or failing to obligate or make available funds to any eligible entities for that year as required by section 679(a)(2), the Secretary shall award funding directly, in either the amount by which funding to the State was reduced or eliminated (in the case of the Secretary’s reduction or elimination of such funding under subparagraph (B)) or in the amount the State would have received had it participated in the block grant program established under this subtitle (in the case of a State’s failure to participate as described in this subparagraph), as provided under subparagraphs (C)(ii) and (C)(iii) below. (ii) Direct funding to eligible entities In the event funding specified in section 679(a)(1)(B) is reduced, eliminated, or withheld due to the Secretary’s reduction or elimination of funding under subparagraph (B) or to the State’s failure (as described in subparagraph (C)(i) above) to participate in the block grant program established by this subtitle, the Secretary shall award financial assistance in the amount of such reduced, eliminated, or withheld funding directly (by grant or cooperative agreement) to affected eligible entities (provided that any such entity has not had its funding under this subtitle eliminated or its designation as an eligible entity terminated by the State in accordance with subsections (b) and (c) of section 684) to carry out the activities described in section 679(c)