; (B) in paragraph (3)— (i) by striking section 207 and inserting section 203 or 207 ; and (ii) by striking project if and all that follows through the period at the end and inserting project. ; and (C) by adding at the end the following: (4) Disaster assistance In the case of a grant provided under section 209 for a project for economic recovery in response to a major disaster or emergency declared under the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5121 et seq. ), the Secretary may increase the Federal share under paragraph (1) up to 100 percent of the total cost of the project. (5) Small communities In the case of a grant to a political subdivision of a State (as described in section 3(6)(A)(iv)) that has a population of fewer than 10,000 residents and meets 1 or more of the eligibility criteria described in section 301(a), the Secretary may increase the Federal share under paragraph (1) up to 100 percent of the total cost of the project. . (b) Conforming amendment Section 703 of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3233 ) is amended— (1) by striking subsection (b); and (2) by striking the section designation and heading and all that follows through In addition in subsection (a) and inserting the following: 703. Authorization of appropriations for disaster economic recovery activities In addition . 107. Regulations on relative needs and allocations Section 206 of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3146 ) is amended— (1) in paragraph (1), by striking subparagraph (B) and inserting the following: (B) the per capita income levels, the labor force participation rate, and the extent of underemployment in eligible areas; and ; and (2) in paragraph (4), by inserting and retention after creation . 108. Research and technical assistance