§2352 Distribution of Funds for Postsecondary Education Programs

Summary

State agencies must give their share of the federal postsecondary education money to eligible colleges or groups of colleges in the state each year, unless special rules apply. Each college or group gets an amount based on how many students who got Federal Pell Grants or Bureau of Indian Affairs aid were enrolled in qualifying programs last year, compared to the total of those students in the state. Groups of colleges must run joint projects that serve all members and be large and strong enough to work. Money for a group can only pay for programs that benefit every member and are allowed under the law. A state can drop the "serve all" rule for schools in very rural, sparsely populated places. The federal Secretary can allow a state to use a different funding formula if the state shows the usual formula does not send money to the institutions with the most economically disadvantaged students and proposes a better formula. No college or group can get less than $50,000. Any funds left because of that rule must be reallocated to other eligible colleges under the same rules.