105 STAT. 360 PUBLIC LAW 102-73—JULY 25, 1991 (c) TREATMENT OP TERRITORIES AND TERRITORIAL STUDENT ASSIST- ANCE.— Section 1204 of the Act (20 U.S.C. 1144a) is amended by adding at the end thereof the following new subsection: "(d) Notwithstanding any other provision of law, an institution of higher education that is located in any of the freely associated states, rather than a State, shall be eligible, if otherwise qualified, for assistance under subpart 4 of part A of title IV of this Act,". SEC. 802. TREATMENT OF TERRITORIES AND FREELY ASSOCIATED STATES. (a) ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965.— Subsection (a) of section 1005 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 2711) is amended— (1) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and (2) by inserting after paragraph (2) the following: "(3) COMPETITIVE GRANTS. —(A) From amounts appropriated for purposes of carrying out this section, the Secretary shall reserve an amount equ£d to the amount described in subparagraph (B) for purposes of making competitive grants to local educational agencies in Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands. The Secretary shall make such grants according to the recommendations of the Pacific Regional Laboratory in Honolulu, Hawaii, which shall conduct a competition for such grants. "(B) The amount described in this subparagraph is the portion of the aggregate amount reserved in the fiscal year 1989 under sections 1005(a), 1291, 1404, 1405(a)(2)(A), and 1405(a)(2)(B) for the Trust Territory of the Pacific Islands that was attributable to the Republic of the Marshall Islands and the Federated States of Micronesia. "(C) Subject to subparagraph (D), grants awarded under this paragraph may only be used for— "(i) activities consistent with the purposes of— "a) title I; "ai) the Adult Education Act; •?' "(Ill) the Education of the Handicapped Act; "(TV) the Library Services and Construction Act; or "(V) the Dwight D. Eisenhower Mathematics and Science Education Act; "(ii) teacher training; "(iii) curriculum development; "(iv) instructional materisds; or "(v) general school improvement and reform. "(D) Grants awarded under this paragraph may only be used to provide direct educational services. "(E) The Secretary shall provide 5 percent of amounts made available for grants under this paragraph to pay the administrative costs of the Pacific Regioned Laboratory with respect to the program under this paragraph.".