(a) Outlying areas
From the amount appropriated to carry out this chapter, the Secretary of Education shall first allocate up to one-half of 1 percent to the outlying areas on the basis of their respective needs, as determined by the Secretary, in consultation with the Secretary of the Interior, for activities consistent with this chapter under such terms and conditions as the Secretary may determine.

(b) Administration and oversight
The Secretary may, in addition, reserve up to $14,000,000 for administration and oversight of this chapter, including for program evaluation.

(c) Reservation for additional programs
After reserving funds under subsections (a) and (b), the Secretary shall reserve $5,000,000,000 for grants under sections 10006 and 10007 of this title.

(d) State allocations
After carrying out subsections (a), (b), and (c), the Secretary shall allocate the remaining funds made available to carry out this chapter to the States as follows:

(1) 61 percent on the basis of their relative population of individuals aged 5 through 24.

(2) 39 percent on the basis of their relative total population.

(e) State grants
From funds allocated under subsection (d), the Secretary shall make grants to the Governor of each State.

(f) Reallocation
The Governor shall return to the Secretary any funds received under subsection (e) that the Governor does not award as subgrants or otherwise commit within two years of receiving such funds, and the Secretary shall reallocate such funds to the remaining States in accordance with subsection (d).