((a)) ** Application required** A State desiring to participate in the grant program established by this chapter shall submit an application to the Secretary in such form as the Secretary may require.

((b)) ** Contents of applications** A State’s application shall contain appropriate assurances that—

((1)) scholarship assistance made available with funds provided under this chapter will be awarded—

((A)) only to eligible individuals;

((B)) on the basis of the financial need of such individuals; and

((C)) in amounts sufficient to cover the cost of application, assessment, and credentialing (including, at the option of the State, any training necessary for credentialing) for the Child Development Associate credential for such individuals;

((2)) not more than 35 percent of the funds received under this chapter by a State may be used to provide scholarship assistance under paragraph (1) to cover the cost of training described in paragraph (1)(C); and

((3)) not more than 10 percent of the funds received by the State under this chapter will be used for the costs of administering the program established in such State to award such assistance.

((c)) ** Equitable distribution** In making grants under this chapter, the Secretary shall—

((1)) distribute such grants equitably among States; and

((2)) ensure that the needs of rural and urban areas are appropriately addressed.