In any fiscal year in which a State does not submit an application under section
12525 of this title, for an allotment under subsection (a) or (b)(2) of section
12524 of this title, that meets the requirements of section
12525 of this title and such other requirements as the Chief Executive Officer may determine to be appropriate, the Corporation may use the allotment of that State to make direct grants to pay for the Federal share of the cost of—
that is located in the State.