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Title 20, EducationRelease 119-110

§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 Sep 22, 2026|Official source

Summary

Limits federal insurance and credit for bonds used to make loans to historically Black colleges and universities. The total amount insured at any time cannot be more than $1,100,000,000. Of that, up to $733,333,333 can go to private HBCUs and up to $366,666,667 can go to public HBCUs. Lincoln University of Pennsylvania counts as a public HBCU. Any school that already got help under section 123 of this law cannot get help here. The Secretary can only issue letters of credit or insurance if Congress first provides the money. Loans must not pay for religious worship, sectarian instruction, or divinity schools, or for institutions whose main work is religious. Loans also must not go to schools that discriminate by race, color, religion, national origin, sex (under Title IX), or disability, except a religious school may be treated differently on religion matters if following its own faith rules.

Full Legal Text

Title 20, §1066c

Education, Source: USLM XML via OLRC

(a)Limit on amount
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.
For purposes of paragraphs (1) and (2), Lincoln University of Pennsylvania is an historically Black public institution. No institution of higher education that has received assistance under section 123 of this title shall be eligible to receive assistance under this part.
(b)Limitation on credit authority
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)Religious activity prohibition
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)Discrimination prohibition
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

Sep 22, 2026

Release point: 119-110