If the amount available for allocation to States under § 300.807 for a fiscal year is equal to or greater than the amount allocated to the States under section 619 of the Act for the preceding fiscal year, those allocations are calculated as follows:

1. (a) Except as provided in § 300.809, the Secretary—

   1. (1) Allocates to each State the amount the State received under section 619 of the Act for fiscal year 1997;
   2. (2) Allocates 85 percent of any remaining funds to States on the basis of the States' relative populations of children aged three through five; and
   3. (3) Allocates 15 percent of those remaining funds to States on the basis of the States' relative populations of all children aged three through five who are living in poverty.

2. (b) For the purpose of making grants under this section, the Secretary uses the most recent population data, including data on children living in poverty, that are available and satisfactory to the Secretary.

   (Authority: 20 U.S.C. 1419(c)(2)(A))