Title 20 › CHAPTER 28 — HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE › SUBCHAPTER III — INSTITUTIONAL AID › Part A — Strengthening Institutions › § 1059e
The law gives federal grants to Predominantly Black Institutions so they can help more Black American students, especially low-income and first-generation students, get and finish college. An eligible institution is a college that serves many needy undergraduates, spends less per student than similar schools, has at least 40% Black undergraduates, awards associate or bachelor’s degrees, and is accredited. “Enrollment of needy students” means at least 50% of undergrads meet tests like being Pell Grant recipients, coming from families on means-tested benefits, attending high-poverty secondary schools, or being first-generation college students. A Predominantly Black Institution must have at least 1,000 undergraduates, at least 50% of undergrads who are low-income or first-generation students, and at least 50% enrolled in degree programs the school is licensed to award. “State” means the 50 States and D.C. The Secretary of Education awards grants and must give extra priority to schools with many needy students, and a lower priority to schools with many Black students; the needy-student priority is twice the Black-student priority. Grant money must be used to plan and run programs that expand access for low- and middle-income Black students, support college preparation and persistence, and strengthen the school’s finances. Grants may also fund other approved activities like teaching programs, outreach, and instruction in fields where Black Americans are underrepresented. Up to 20% of a grant may go to an endowment, but the school must match those endowment funds with equal non‑Federal money. No more than 50% of funds may be used for building or maintaining instructional facilities. Funding is split each year so one-half is allotted by each school’s share of Pell recipients, one-fourth by each school’s share of graduates, and one-fourth by the share of graduates who enter higher-degree programs in underrepresented fields within two years. Each school gets at least $250,000 unless appropriations are too small, in which case the minimum is cut proportionally. Schools must apply for grants. Any grant money not spent within 10 years must be returned to the Treasury. A school that gets these grants cannot get other funds under the same parts of the law at the same time.
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Legislative History
Reference
Citation
20 U.S.C. § 1059e
Title 20, Education
Last Updated
Sep 23, 2026
Release point: 119-110