(a) If a Territory receives Matching Grant funds under section 1108(b) of the Act, it must:

1. (1) Contribute 25 percent of the expenditures funded under the Matching Grant for title IV-A or title IV-E expenditures;
2. (2) Expend 100 percent of the amount of historic expenditures for FY 1995 for the AFDC program (including administrative costs and FAMIS), the EA program, and the JOBS program; and
3. (3) Expend 100 percent of the amount of the Family Assistance Grant annual allocation using Federal TANF, title IV-E funds and/or Territory-only funds, without regard to any penalties applied in accordance with section 409 of the Act.