Title 20, EducationRelease 119-110
§4425 Endowment Programs
Title 20 › CHAPTER 56 — AMERICAN INDIAN, ALASKA NATIVE, AND NATIVE HAWAIIAN CULTURE AND ART DEVELOPMENT › SUBCHAPTER I — AMERICAN INDIANS AND ALASKA NATIVES › § 4425
Summary
Allows the Institute to create two separate trust funds and explains how federal and nonfederal money must be matched and used. One trust is a program enhancement endowment. Money reserved under section 4451(a) can be put in a federally insured trust. For every federal payment, the Institute must put in the same amount as a capital contribution and add any earnings. The Institute may also use in-kind gifts of real or personal property as its match, following Treasury valuation rules. If the Institute withdraws its matched money or uses the property for other than the Institute’s sole benefit, an equal federal amount must be returned to the Treasury. Interest from the program endowment can be used to pay operating costs like maintenance, staff, student and community services, and technical help. Contributions held as of November 29, 1990 that were received after June 2, 1988 can be matched, and funds transferred after June 2, 1988 are treated as properly transferred as of July 23, 1992. The second trust is a capital endowment for site work, design, construction, renovation, equipment, and related building costs. The Institute must match each federal contribution dollar for dollar and any earnings. Matched funds must remain in the capital fund at least two years; if withdrawn sooner the equal federal share must be returned. After two years the full principal and interest, including the federal match, belong to the Institute and may be used for capital projects. Funds may come from private, nonfederal governmental, or tribal sources and may include in-kind property (with the same date rules). Both trusts must be invested under the same rules as section 1065(c)(2). Earnings cannot benefit private persons. Trust funds can secure loans. The Institute president must set rules and keep records so the Treasury can audit and protect the United States’ financial interest.
Full Legal Text
Title 20, §4425
Education, Source: USLM XML via OLRC
(a)Program enhancement endowment
(1)(A)From the total amount appropriated for this subsection pursuant to section 4451(a) of this title, funds may be deposited into a trust fund maintained by the Institute at a federally insured banking or savings institution.
(B)The President of the Institute shall provide—
(i)for the deposit into the trust fund referred to in subparagraph (A)—
(I)of a capital contribution by the Institute in an amount equal to the amount of each Federal contribution; and
(II)any earnings on the funds deposited under this paragraph; or
(ii)for the reservation for the sole use of the Institute of any noncash, in-kind contributions of real or personal property, which property may at any time be converted to cash, which shall be deposited as a capital contribution into the trust fund referred to in subparagraph (A).
(C)If at any time the Institute withdraws any capital contribution (as described in subparagraph (B)(i)) made by the Institute to the trust fund referred to in subparagraph (A) or puts any property (as described in subparagraph (B)(ii)) to a use which is not for the sole benefit of the Institute, an amount equal to the value of the Federal contribution shall be withdrawn from such trust fund and returned to the Treasury as miscellaneous receipts.
(2)Interest deposited into the trust fund pursuant to paragraph (1)(B)(ii) may be periodically withdrawn and used, at the direction of the Board or its designee, to defray any expense associated with the operation of the Institute, including the expense of operations and maintenance, administration, academic and support personnel, community and student services programs, and technical assistance.
(3)For the purpose of complying with the contribution requirement of paragraph (1)(B), the Institute may use funds or in-kind contributions of real or personal property fairly valued which are made available from any private or tribal source, including interest earned by the funds invested under this subsection. In-kind contributions shall be other than fully depreciable property or property which is designated for addition to the permanent collection of the Museum and shall be valued according to the procedures established for such purpose by the Secretary of the Treasury. For purposes of this paragraph, all contributions, including in-kind and real estate, which are on-hand as of November 29, 1990 and which have been received after June 2, 1988, but which have not been included in computations under this provision shall be eligible for matching with Federal funds appropriated in any fiscal year. All funds transferred to the Institute by the Secretary of the Treasury after June 2, 1988, shall be deemed to have been properly transferred as of July 23, 1992.
(4)Amounts appropriated under section 4451(a) of this title for use under this subsection shall be paid by the Secretary of the Treasury to the Institute as a Federal capital contribution equal to the amount of funds or the value of the in-kind contributions which the Institute demonstrates have been placed within the control of, or irrevocably committed to the use of, the Institute as a capital contribution of the Institute in accordance with this subsection.
(b)Capital improvement endowment
(1)In addition to the trust fund established under subsection (a), funds may be deposited into a trust fund maintained by the Institute at a federally insured banking or savings institution from the amount reserved for this subsection pursuant to section 4451(a) of this title for the purpose of establishing a separate special endowment for capital improvement (hereafter in this subsection referred to as the “capital endowment fund”) to pay expenses associated with site selection and preparation, site planning and architectural design and planning, new construction, materials and equipment procurement, renovation, alteration, repair, and other building and expansion costs of the Institute.
(2)The President of the Institute shall provide for the deposit into the capital endowment fund of a capital contribution by the Institute in an amount equal to the amount of each Federal contribution and any earnings on amounts in the capital endowment fund.
(3)Funds deposited by the Institute as a match for Federal contributions under paragraph (5) shall remain in the capital endowment fund for a period of not less than two years. If at any time the Institute withdraws any capital contribution to the capital endowment fund before the funds have been deposited for this two-year period, an equal amount of the Federal contribution shall be withdrawn from the capital endowment fund and returned to the Treasury as miscellaneous receipts. At the end of the two-year period, the entire principal and interest of the funds deposited for this period, including the Federal matching portion, shall accrue, without reservation, to the Institute and may be withdrawn, in whole or in part, to defray expenses associated with capital acquisition and improvement of the Institute referred to in paragraph (1).
(4)For the purpose of complying with the contribution requirement of paragraph (2), the Institute may use funds which are available from any private, non-Federal governmental, or tribal source.
(5)Subject to paragraph (3), amounts appropriated under section 4451(a) of this title for use under this subsection shall be paid by the Secretary of the Treasury to the Institute as a Federal capital contribution equal to the amount which the Institute demonstrates has been placed within the control of, or irrevocably committed to the use of, the Institute and is available for deposit as a capital contribution of the Institute in accordance with this subsection.
(6)For the purpose of complying with the contribution requirement in this subsection, the Institute may use funds or in-kind contributions of real or personal property. For the purposes of this paragraph, all contributions, in-kind and real estate, which are held by the Institute beginning on November 29, 1990, and which were received after June 2, 1988, but which have not been included in their entirety in computations under this section shall be eligible for matching Federal funds appropriated in any year.
(c)General administrative provisions
(1)Funds in the trust funds described in subsections (a) and (b) shall be invested under the same conditions and limitations as funds are invested under section 1065(c)(2) of this title and the regulations implementing such section (as such regulations were in effect at the time the funds are invested).
(2)No part of the net earnings of the trust funds established under this section shall inure to the benefit of any private person.
(3)Any amounts deposited in a trust fund authorized under subsection (a) may be used to secure loans procured for the purposes of constructing or improving Institute facilities.
(4)The President of the Institute shall provide for such other provisions governing the trust funds established under this section as may be necessary to protect the financial interest of the United States and to promote the purpose of this chapter as agreed to by the Secretary of the Treasury and the Board or its designee, including recordkeeping procedures for the investment of funds received under the trust fund established under subsection (b) and such other recordkeeping procedures for the expenditure of accumulated interest for the trust fund under subsection (a) as will allow the Secretary of the Treasury to audit and monitor activities under this section.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1994—Subsec. (b)(6). Pub. L. 103–382, § 386(b)(1), added par. (6). Subsec. (c)(1). Pub. L. 103–382, § 386(b)(2), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “Funds in the trust funds described in subsections (a) and (b) of this section shall be invested at a rate not less than that generally available for similar funds deposited at the same banking institution for the same period or periods of time.” 1992—Subsec. (a)(3). Pub. L. 102–325, § 1331(j)(1)(A), substituted “
November 29, 1990” for “the date of enactment of this Act”. Pub. L. 102–325, § 1331(j)(1)(B), inserted at end “All funds transferred to the Institute by the Secretary of the Treasury after
June 2, 1988, shall be deemed to have been properly transferred as of
July 23, 1992.” Subsec. (b)(4). Pub. L. 102–325, § 1331(j)(2), inserted “, non-Federal governmental,” after “any private”. Subsec. (c)(3), (4). Pub. L. 102–325, § 1331(j)(3), added par. (3) and redesignated former par. (3) as (4). 1990—Pub. L. 101–644 amended section generally, substituting present provisions consisting of subsecs. (a) to (c) for former text which provided: in subsec. (a), establishment of program; in subsec. (b), use of funds; in subsec. (c), compliance with matching requirement; and in subsec. (d), payment of Federal contribution. 1988—Subsec. (a)(1). Pub. L. 100–297, § 5406(b)(1), substituted “From amounts appropriated under section 4451(a) of this title, not more than $500,000” for “From the amount appropriated pursuant to section 4441(a) of this title, the Secretary shall make available to the Institute not more than $500,000 which”. Subsec. (d). Pub. L. 100–297, § 5406(b)(2), in subsec. heading substituted “Payment of Federal contribution” for “Allocation of funds”, and in text substituted “Amounts appropriated under section 4451(a) of this title for use under this section shall be paid by the Secretary of the Treasury to the Institute as” for “From the amount appropriated pursuant to section 4441(a) of this title, the Secretary shall allocate to the Institute an amount for”.
Statutory Notes and Related Subsidiaries
Effective Date
of 1992 AmendmentAmendment by Pub. L. 102–325 effective Oct. 1, 1992, see section 2 of Pub. L. 102–325, set out as a note under section 1001 of this title.
Effective Date
of 1988 AmendmentFor
Effective Date
and applicability of amendment by Pub. L. 100–297, see section 6303 of Pub. L. 100–297, set out as a note under section 1071 of this title.
Reference
Citations & Metadata
Citation
20 U.S.C. § 4425
Title 20, Education
Last Updated
Sep 22, 2026
Release point: 119-110