100 STAT. 1330
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PUBLIC LAW 99-498—OCT. 17, 1986
provide that funds granted to an institution of higher education may be used only to make payments to students participating in a grant program authorized under this subpart, except that an institution may use a portion of the sums allocated to it under this subpart to meet administrative expenses in accordance with section 489 of this title, and may transfer such funds in accordance with the provisions of section 488. "ALLOCATION OF FUNDS
20 USC i070b-3.
"SEC. 413D. (a) ALLOCATION BASED ON PREVIOUS ALLOCATION.—(1)
From the amount appropriated pursuant to section 413A(b) for each fiscal year, the Secretary shall first allocate to each eligible institution an amount equal to 100 percent of the amount such institution received and used under this subpart for fiscal year 1985. "(2)(A) From the amount so appropriated, the Secretary shall next allocate to each eligible institution that began participation in the program under this subpart after fiscal year 1985 but is not a first or second time participant, an amount equal to the greater of— "(i) $5,000; or "(ii) 90 percent of the amount received and used under this subpart for the first year it participated in the program. "(B) From the amount so appropriated, the Secretary shall next allocate to each eligible institution that began participation in the program under this subpart after fiscal year 1985 and is a first or second time participant, an amount equal to the greatest of— "(i) $5,000; "(ii) an amount equal to (I) 90 percent of the amount received and used under this subpart in the second preceding fiscal year by eligible institutions offering comparable programs of instruction, divided by (II) the number of students enrolled at such comparable institutions in such fiscal year, multiplied by (III) the number of students enrolled at the applicant institution in such fiscal year; or "(iii) 90 percent of the institution's allocation under this part for the preceding fiscal year. "(C) Notwithstanding subparagraphs (A) and (B) of this paragraph, the Secretary shall allocate to each eligible institution which— "(i) was a first-time participant in the program in fiscal year 1986 or any subsequent fiscal year, and "(ii) received a larger amount under this subsection in the second year of participation, an amount equal to 90 percent of the amount it received under this subsection in its second year of participation. "(3)(A) If the amount appropriated for any fiscal year is less than the amount required to be allocated to all institutions under paragraph (1) of this subsection, then the amount of the allocation to each such institution shall be ratably reduced. "(B) If the amount appropriated for any fiscal year is more than the amount required to be allocated to all institutions under paragraph (1) but less than the amount required to be allocated to all institutions under paragraph (2), then— "(i) the Secretary shall allot the amount required to be allocated to all institutions under paragraph (1), and "(ii) the amount of the allocation to each institution under paragraph (2) shall be ratably reduced.
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