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(a) IN GENERAL- The State agency for higher education for a State that receives a grant under section 2111, working in conjunction with the State educational agency (if such agencies are separate), shall use the funds reserved under section 2113(a)(2) to make subgrants, on a competitive basis, to eligible partnerships to enable such partnerships to carry out the activities described in section 2134.

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(b) DISTRIBUTION- The State agency for higher education shall ensure that —

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(1) such subgrants are equitably distributed by geographic area within a State; or

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(2) eligible partnerships in all geographic areas within the State are served through the subgrants.

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(c) SPECIAL RULE- No single participant in an eligible partnership may use more than 50 percent of the funds made available to the partnership under this section.