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Title 20 — EducationRelease 119-73not60

§1066c Limitations on Federal Insurance for Bonds Issued by Designated Bonding Authority

Title 20 › Chapter 28— HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE › Subchapter III— INSTITUTIONAL AID › Part D— Historically Black College and University Capital Financing › § 1066c

Last updated Apr 5, 2026|Official source

Summary

Limits the total amount of bonds the federal government can insure under this program to $1,100,000,000. No more than $733,333,333 of that can support loans to private historically Black colleges and universities, and no more than $366,666,667 can support loans to public historically Black colleges and universities. The Secretary may only provide letters of credit or insurance when Congress has first approved the money. Loans cannot pay for religious teaching, worship, divinity schools, or institutions whose main work is religious. Loans also cannot go to schools that discriminate by race, color, religion, national origin, sex (as covered by Title IX), or disability, except that a religiously controlled school may be treated differently on religion if following the rule would conflict with its religious beliefs.

Full Legal Text

Title 20, §1066c

Education — Source: USLM XML via OLRC

(a)At no time shall the aggregate principal amount of outstanding bonds insured under this part together with any accrued unpaid interest thereon exceed $1,100,000,000, of which—
(1)not more than $733,333,333 shall be used for loans to eligible institutions that are private historically Black colleges and universities; and
(2)not more than $366,666,667 shall be used for loans to eligible institutions which are historically Black public colleges and universities.
(b)The authority of the Secretary to issue letters of credit and insurance under this part is effective only to the extent provided in advance by appropriations Acts.
(c)No loan may be made under this part for any educational program, activity or service related to sectarian instruction or religious worship or provided by a school or department of divinity or to an institution in which a substantial portion of its functions is subsumed in a religious mission.
(d)No loan may be made to an institution under this part if the institution discriminates on account of race, color, religion, national origin, sex (to the extent provided in title IX of the Education Amendments of 1972 [20 U.S.C. 1681 et seq.]), or disabling condition; except that the prohibition with respect to religion shall not apply to an institution which is controlled by or which is closely identified with the tenets of a particular religious organization if the application of this section would not be consistent with the religious tenets of such organization.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Education

Amendments

of 1972, referred to in subsec. (d), is Pub. L. 92–318, June 23, 1972, 86 Stat. 235. Title IX of the Act, known as the Patsy Takemoto Mink Equal Opportunity in Education Act, is classified principally to chapter 38 (§ 1681 et seq.) of this title. For complete classification of title IX to the Code, see

Short Title

note set out under section 1681 of this title and Tables. Codification Section was formerly classified to section 1132c–3 of this title prior to renumbering by Pub. L. 105–244.

Prior Provisions

A prior section 344 of Pub. L. 89–329 was classified to section 1069 of this title prior to the general amendment of this subchapter by Pub. L. 99–498.

Amendments

2008—Subsec. (a). Pub. L. 110–315, § 314(c)(1), substituted “$1,100,000,000” for “$375,000,000” in introductory provisions. Subsec. (a)(1). Pub. L. 110–315, § 314(c)(2), substituted “$733,333,333” for “$250,000,000”. Subsec. (a)(2). Pub. L. 110–315, § 314(c)(3), substituted “$366,666,667” for “$125,000,000”.

Reference

Citations & Metadata

Citation

20 U.S.C. § 1066c

Title 20 — Education

Last Updated

Apr 5, 2026

Release point: 119-73not60