; and (2) in subsection (c)— (A) by striking paragraph (2) and inserting the following: (2) Certain States, political subdivisions, and nonprofit organizations In the case of a grant to a State, or a political subdivision of a State, that the Secretary determines has exhausted the effective taxing and borrowing capacity of the State or political subdivision or can otherwise document that no local matching funds are reasonably obtainable, or in the case of a grant to a nonprofit organization that the Secretary determines has exhausted the effective borrowing capacity of the nonprofit organization, the Secretary may increase the Federal share above the percentage specified in subsection (a) up to 100 percent of the cost of the project. ; and (B) by adding at the end the following: (4) Small communities In the case of a grant to a political subdivision of a State (as described in section 3(4)(A)(iv)) that has a population of fewer than 10,000 residents, the Secretary may increase the Federal share above the percentage specified in subsection (a) up to 100 percent of the total cost of the project. (5) Communities affected by disasters In the case of a grant under section 209(c)(2), the Federal share of the cost of a project carried out with the grant shall be 100 percent. . 4. Grants for planning and grants for administrative expenses Section 203 of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3143 ) is amended by adding at the end the following: (e) Administrative expenses Administrative expenses described in subsection (a) shall include— (1) expenses related to carrying out the planning process described in subsection (b); (2) expenses related to project predevelopment; and (3) expenses related to hiring professional staff to assist communities in— (A) project predevelopment and the implementation of projects and priorities included in— (i) a comprehensive economic development strategy; or (ii) an economic development planning grant