; United States city average) from the last year of the Graduate Nurse Education Demonstration established under section 5509 for which such data is available to the June preceding such first year of the program under this section; and (B) for a subsequent year, the amount determined under this paragraph for the preceding year, increased or decreased by the percentage change in the consumer price index for all urban consumers (all items; United States city average) for the 12-month period ending with June of the previous year. (d) Annual reporting required (1) Reduction in payment for failure to report (A) In general The amount payable under this section to an eligible hospital shall be reduced by 25 percent if the Secretary determines that— (i) the hospital has failed to provide the Secretary the report required under paragraph (2) for the year