§325 State to replace funds misapplied, etc.; restrictions on use of funds; reports by colleges

Summary

If any federal endowment money given to a State or Territory for supporting its colleges, including institutions for colored students, is lost, reduced, or used wrongly, the State or Territory must replace it. No more federal payments will be made to that State or Territory until it is replaced. The money may not be used to buy, build, or repair any buildings. Each college president must send one annual report to the Secretary of Agriculture about the college’s condition and progress. The report must cover finances, the library, numbers of students and professors, experiment station work with costs and results, and other useful industrial and economic statistics. One copy must be mailed free to each other college receiving the same federal support.