requirement would result in an inefficient allocation of resources with respect to carrying out the purpose described in subsection (a)(1). (ii) Indian tribes and tribal organizations If an Indian tribe or tribal organization is receiving a grant under subsection (a) and the State in which the tribe or organization is located is receiving a grant under subsection (a), the requirement under subparagraph (A) for the State regarding availability to the tribe or organization is deemed to have been waived under this subparagraph. (2) Relationship to items and services under other programs (A) In general The Secretary may not make a grant under subsection (a) unless the State, Indian tribe, or tribal organization involved agrees that the grant will not be expended to make payment for any item or service to the extent that payment has been made, or can reasonably be expected to be made, with respect to such item or service— (i) except as provided in subparagraph (B), under any State compensation program, under an insurance policy, or under any Federal or State health benefits program