Revises Section 106 by replacing subsection (b) with a new allocation formula for metropolitan cities and urban counties based on averages of specified ratios across four measures and by specified weighting; removes subparagraph (B) of paragraph (6) and redesignates clauses (i)–(iii) as subparagraphs (A)–(C); and replaces the second and third sentences of subsection (d)(1) with a new formula for State allocations for nonentitlement areas using similar average-of-ratios criteria.

Amends subsection (a) (definitions) by replacing the first sentence of paragraph (9), striking paragraphs (11) through (16), and redesignating paragraphs (17) through (24) as paragraphs (11) through (18).

Strikes the last sentence of 42 U.S.C. 5303 and inserts new text (inserted text not provided in this section).