SEC. 501. TREATMENT OF AMOUNTS TRANSFERRED FROM CONSERVATION AND REINVESTMENT ACT FUND.

• Section 108 of the National Historic Preservation Act (16 U.S.C. 470h) is amended--

• • (1) by inserting `(a)' before the first sentence;

• • (2) in subsection (a) (as designated by paragraph (1) of this section) by striking all after the first sentence; and

• • (3) by adding at the end the following:

• `(b) Amounts transferred to the Secretary under section 5(b)(5) of the Conservation and Reinvestment Act of 1999 in a fiscal year shall be deposited into the Fund and shall be available without further appropriation, in that fiscal year, to carry out this Act.

• `(c) At least 1/2 of the funds obligated or expended each fiscal year under this Act shall be used in accordance with this Act for preservation projects on historic properties. In making such funds available, the Secretary shall give priority to the preservation of endangered historic properties.'.

SEC. 502. STATE USE OF HISTORIC PRESERVATION ASSISTANCE FOR NATIONAL HERITAGE AREAS AND CORRIDORS.

• Title I of the National Historic Preservation Act (16 U.S.C. 470a et seq.) is amended by adding at the end the following:

`SEC. 114. STATE USE OF ASSISTANCE FOR NATIONAL HERITAGE AREAS AND CORRIDORS.

• `In addition to other uses authorized by this Act, amounts provided to a State under this title may be used by the State to provide financial assistance to the management entity for any national heritage area or national heritage corridor established under the laws of the United States, to support cooperative historic preservation planning and development.'.