(a) Establishment

There is established in the Treasury of the United States a trust fund which shall be known as the Rural Development Trust Fund (in this subchapter referred to as the ''Trust Fund'').

(b) Accounts

There are established in the Trust Fund the following accounts:

(1)

The rural community facilities account.

(2)

The rural utilities account.

(3)

The rural business and cooperative development account.

(4)

The national reserve account.

(5)

The federally recognized Indian tribe account.

(c) Deposits into accounts

Notwithstanding any other provision of law, each fiscal year -

(1)

all amounts made available to carry out the authorities described in subsection (d)(1) of this section for the fiscal year shall be deposited into the rural community facilities account of the Trust Fund;

(2)

all amounts made available to carry out the authorities described in subsection (d)(2) of this section for the fiscal year shall be deposited into the rural utilities account of the Trust Fund; and

(3)

all amounts made available to carry out the authorities described in subsection (d)(3) of this section for the fiscal year shall be deposited into the rural business and cooperative development account of the Trust Fund.

(d) Function categories

The function categories described in this subsection are the following:

(1) Rural community facilities

The rural community development category consists of all amounts made available for -

(A)

community facility direct and guaranteed loans under section 1926(a)(1) of this title; or

(B)

community facility grants under paragraph (19), (20), or (21) of section 1926(a) of this title.

(2) Rural utilities

The rural utilities category consists of all amounts made available for -

(A)

water or waste disposal grants or direct or guaranteed loans under paragraph (1) or (2) of section 1926(a) of this title;

(B)

rural water or wastewater technical assistance and training grants under section 1926(a)(14) of this title;

(C)

emergency community water assistance grants under section 1926a of this title; or

(D)

solid waste management grants under section 1932(b) of this title.

(3) Rural business and cooperative development

The rural business and cooperative development category consists of all amounts made available for -

(A)

rural business opportunity grants under section 1926(a)(11)(A) of this title;

(B)

business and industry direct and guaranteed loans under section 1932(a)(1) of this title; or

(C)

rural business enterprise grants or rural educational network grants under section 1932(c) of this title.

(e) National reserve account

(1) Transfers into account

(A) Initial transfer

Each fiscal year, the Secretary shall transfer to the national reserve account of the Trust Fund from each account specified in subsection (c) of this section not more than the applicable percentage of the amount deposited in each such account for the fiscal year under subsection (c) of this section.

(B) Repooling of unobligated funds allocated among the States

Not earlier than July 15 of each fiscal year, the Secretary shall transfer to the national reserve account from each account specified in subsection (c) of this section any amount in the account that is allocated for any State, and has not been obligated by the State director or obligated for specific approved projects in the State.

(2) Use

The Secretary may use amounts in the national reserve account of the Trust Fund, pursuant to any authority described in subsection (d) of this section -

(A)

in the case of a fiscal year other than fiscal year 2001 or 2002 -

(i)

to meet situations of exceptional need;

(ii)

to meet emergency situations; or

(iii)

to provide funds to entities whose applications for funds provided under this subchapter have been approved and who have not received funds sufficient to meet the needs of the projects described in the applications; or

(B)

in the case of fiscal years 2001 and 2002 -

(i)

to meet situations of exceptional need; or

(ii)

to meet emergency situations.

(3) ''Applicable percentage'' defined

In paragraph (1), the term ''applicable percentage'' means, with respect to a fiscal year -

(A)

15 percent for fiscal year 1997;

(B)

12.5 percent for fiscal year 1998;

(C)

10 percent for fiscal year 1999;

(D)

7.5 percent for fiscal year 2000;

(E)

5 percent for fiscal year 2001; and

(F)

5 percent for fiscal year 2002.

(f) Federally recognized Indian tribe account

(1) Transfers into account

Each fiscal year, the Secretary shall transfer to the federally recognized Indian tribe account of the Trust Fund 3 percent of the amount deposited into the Trust Fund for the fiscal year under subsection (d) of this section.

(2) Use of funds

The Secretary shall make available to federally recognized Indian tribes the amounts in the federally recognized Indian tribe account for use pursuant to any authority described in subsection (d) of this section.

(g) Allocation among States

The Secretary shall allocate the amounts in each account specified in subsection (c) of this section among the States in a fair, reasonable, and appropriate manner that takes into consideration rural population, levels of income, unemployment, and other relevant factors, as determined by the Secretary.

(h) Availability of funds allocated for States

The Secretary shall make available to each State the total amount allocated for the State under subsection (g) of this section that remains after applying section 2009f of this title