; and (B) by giving priority to areas that have higher nonmetropolitan poverty levels and lower population levels, while ensuring that grants under this section are awarded in diverse geographic regions of the United States. (c) Grant allocation (1) In general Except as provided in subsection (b)(4), the Secretary shall allocate funding for grants under subsection (a)— (A) for each State based on a formula determined by the Secretary in accordance with paragraph (2); and (B) for Indian Tribes in such amounts as the Secretary determines to be appropriate, subject to the condition that the total amount allocated to Indian Tribes under this subparagraph shall not be less than 5 percent of the amount appropriated under subsection (j), with Indian Tribes located in areas that have higher poverty levels and lower populations receiving higher levels of funding. (2) Allocation requirements (A) In general The Secretary shall develop a graduated scale to allocate funding for States under paragraph (1)(A) based on the nonmetropolitan poverty and population levels in each State. (B) Limitation The amount allocated to any State under subparagraph (A) shall not exceed 5 percent of the amount appropriated under subsection (j). (3) Small State exception to formula Notwithstanding paragraphs (1)(A) and (2)(A), the Secretary shall ensure that each State is allocated an amount for grants under this subsection that is sufficient to fulfill the purposes of the program established under this section, as determined by the Secretary. (4) Reallocation If a State or Indian Tribe does not use funds allocated to the State or Indian Tribe under this subsection, the Secretary may reallocate the unused funds to 1 or more other States or Indian Tribes, each of which has used all of the funding allocated to the State or Indian Tribe under this subsection. (d) Eligible applicants To be eligible to receive a grant under subsection (a), an applicant shall— (1) propose to serve a rural area