§2506 Payment of grants; investment of funds

Summary

The Secretary must pay grantees in two yearly payments. The first payment is due by July 1 and must equal 80% of what the grantee received in the prior academic year. The second payment, covering the rest, is due by December 1. If the first payment is later found to be too large, the grantee must return the extra within 30 days after the final overpayment decision. Returned money is split equally among all schools in the system. If a school got no Bureau payment the prior year, its full first-year amount must be paid by December 1 of that academic year. If funds become available on October 1 of the fiscal year, payments must be made by December 1 of that fiscal year. The rules in chapter 39 of title 31 apply, and payments must follow any limits in continuing resolutions or other appropriations laws. Any interest earned on these funds after they are given to an Indian tribe or tribal organization belongs to that tribe or organization and must be used for the school. Federal officials may not count that interest when deciding whether to give other federal help or how much to give. Tribes or tribal organizations may invest the funds before spending them only in U.S. government obligations, U.S.-guaranteed or -insured obligations or securities, SEC-registered funds that hold only such U.S. obligations, or in accounts insured by a U.S. agency or fully protected by collateral. Funds under this chapter must not be counted when federal agencies make underrecovery or overrecovery calculations for other funds.