; grants to issuing participating jurisdiction; hardship assistance (1) Taxation of interest paid on guaranteed obligations For purposes of the Internal Revenue Code of 1986, interest paid on an obligation issued by a participating jurisdiction that is guaranteed under this section shall be included in the gross income of the recipient of the interest. (2) Grants to issuing participating jurisdiction of taxable obligations for net interest costs The Secretary may make, or contract to make, grants, in such amounts as may be approved in appropriation Acts, to or on behalf of the issuing participating jurisdiction to cover not to exceed 30 percent of the net interest cost of obligations issued by the participating jurisdiction that are guaranteed under this section. (3) Assistance to issuer in hardship cases The Secretary may, to the extent approved in appropriation Acts, assist the issuer of a note or other obligation guaranteed under this section in the payment of all or a portion of the principal and interest amount due under the note or other obligation, if the Secretary determines that the issuer is unable to pay the amount because of circumstances of extreme hardship beyond the control of the issuer. (i) Limit on outstanding obligations; monitoring use of guarantees (1) Limit on outstanding obligations The total amount of outstanding obligations guaranteed on a cumulative basis by the Secretary under this section may not at any time exceed the greater of— (A) $4,500,000,000