Title 25, IndiansRelease 119-110

§2007 Allotment Formula

Title 25 › CHAPTER 22 — BUREAU OF INDIAN AFFAIRS PROGRAMS › § 2007

Last updated Sep 23, 2026|Official source

Summary

The Secretary must write a rule that uses a formula to figure out the minimum money each Bureau-funded school needs each year. The formula must count how many eligible Indian students and total students the school has, special cost issues (like isolation, extra staff or transportation, food and housing, building repairs, dorm costs, longer teacher service, therapy programs, and costs for gifted students), the cost to give academic services equal to the State public schools, whether the money will let the school meet accreditation rules, and any other relevant factors. After the education standards from section 2002 are set, the Secretary must update the formula to cover the costs of those standards. By January 1, 2003, the Secretary had to review the formula and take action to increase counseling and therapeutic programs in off-reservation dormitories and other Bureau residential places, and make sure parents are notified and give consent for those programs. Federal funds for regular school operations must be split pro rata using that formula. Starting in fiscal year 2003 and every year after, the formula must be adjusted so that each 7th and 8th grade eligible student counts as 1.2 units, any school with fewer than 50 eligible students is treated as having 50 average daily attendance for small-school funding, residential services less than 9 months are counted when the school board and supervisor agree, each full-time gifted eligible student counts as 2.0 units, and each eligible student in a year-long Indian or Native language credit course counts as 0.25 units (after the school board certifies the curriculum and the appropriation Act sets aside funds so other schools are not reduced). From each school’s allotment, the local school board may reserve either $8,000 or, if larger, up to the lesser of $15,000 or 1 percent of the allotment for board activities. New board members must get 40 hours of training within their first year; this training is recommended (not required) for tribal governing bodies that act as school boards. The Secretary must set aside 1 percent of available funds each year for emergencies; those funds can only pay for education services or emergency repairs at a schoolsite, stay available without year limit until spent (but the total held across years cannot exceed 1 percent of the current year funds), and their use must be reported to Congress in the annual budget. Supplemental pay-raise appropriations must be distributed here. An “eligible Indian student” is one who (1) is a tribal member or at least one-fourth Indian blood descendant of a member of a tribe eligible for Bureau services, (2) lives on or near a reservation or qualifies for off-reservation dormitory attendance, and (3) is enrolled in a Bureau-funded school. Eligible Indian students (and certain others attending under specified rules) cannot be charged tuition. The Secretary may allow non-eligible students to attend if it won’t hurt the school’s program, the school board agrees, the student is a dependent of a Bureau, Indian Health Service, or tribal employee who lives on or near the school, or tuition is paid at no more than the nearby public district’s out-of-district rate and is added on top of the school’s allotment. Contract and grant schools may also admit non-eligible students and keep any tuition in addition to their funding. A school board may choose to keep up to 15 percent of its yearly allocation without fiscal year limits. For the Richfield, Utah dormitory, tuition for out-of-State Indian students who attend Sevier County high schools must be paid from these funds at no more than the weighted per-student amount, and no extra administrative funds are provided for those students.

Full Legal Text

Title 25, §2007

Indians, Source: USLM XML via OLRC

(a)Factors considered; revision to reflect standards
(1)Formula
The Secretary shall establish, by regulation adopted in accordance with section 2017 of this title, a formula for determining the minimum annual amount of funds necessary to sustain each Bureau-funded school. In establishing such formula, the Secretary shall consider—
(A)the number of eligible Indian students served and total student population of the school;
(B)special cost factors, such as—
(i)the isolation of the school;
(ii)the need for special staffing, transportation, or educational programs;
(iii)food and housing costs;
(iv)maintenance and repair costs associated with the physical condition of the educational facilities;
(v)special transportation and other costs of isolated and small schools;
(vi)the costs of home-living (dormitory) arrangements, where determined necessary by a tribal governing body or designated school board;
(vii)costs associated with greater lengths of service by education personnel;
(viii)the costs of therapeutic programs for students requiring such programs; and
(ix)special costs for gifted and talented students;
(C)the cost of providing academic services which are at least equivalent to those provided by public schools in the State in which the school is located;
(D)whether the available funding will enable the school involved to comply with the accreditation standards applicable to the school under section 2001 of this title; and
(E)such other relevant factors as the Secretary determines are appropriate.
(2)Revision of formula
(A)In general
Upon the establishment of the standards required in section 2002 of this title, the Secretary shall revise the formula established under this subsection to reflect the cost of funding such standards.
(B)Review of formula
Not later than January 1, 2003, the Secretary shall review the formula established under this section and shall take such steps as are necessary to increase the availability of counseling and therapeutic programs for students in off-reservation home-living (dormitory) schools and other Bureau-operated residential facilities.
(C)Review of standards
Concurrent with such action, the Secretary shall review the standards established under section 2002 of this title to be certain that adequate provision is made for parental notification regarding, and consent for, such counseling and therapeutic programs.
(b)Pro rata allotment
Notwithstanding any other provision of law, Federal funds appropriated for the general local operation of Bureau-funded schools shall be allotted pro rata in accordance with the formula established under subsection (a).
(c)Annual adjustment; reservation of amount for school board activities
(1)Annual adjustment
For fiscal year 2003, and for each subsequent fiscal year, the Secretary shall adjust the formula established under subsection (a) to ensure that the formula does the following:
(A)Uses a weighted unit of 1.2 for each eligible Indian student enrolled in the seventh and eighth grades of the school in considering the number of eligible Indian students served by the school.
(B)Considers a school with an enrollment of less than 50 eligible Indian students as having an average daily attendance of 50 eligible Indian students for purposes of implementing the adjustment factor for small schools.
(C)Takes into account the provision of residential services on less than a 9-month basis at a school when the school board and supervisor of the school determine that a less than 9-month basis will be implemented for the school year involved.
(D)Uses a weighted unit of 2.0 for each eligible Indian student that—
(i)is gifted and talented; and
(ii)is enrolled in the school on a full-time basis,
in considering the number of eligible Indian students served by the school.
(E)Uses a weighted unit of 0.25 for each eligible Indian student who is enrolled in a year-long credit course in an Indian or Native language as part of the regular curriculum of a school, in considering the number of eligible Indian students served by such school. The adjustment required under this subparagraph shall be used for such school after—
(i)the certification of the Indian or Native language curriculum by the school board of such school to the Secretary, together with an estimate of the number of full-time students expected to be enrolled in the curriculum in the second school year for which the certification is made; and
(ii)the funds appropriated for allotment under this section are designated by the appropriations Act appropriating such funds as the amount necessary to implement such adjustment at such school without reducing allotments made under this section to any school by virtue of such adjustment.
(2)Reservation of amount
(A)In general
From the funds allotted in accordance with the formula established under subsection (a) for each Bureau school, the local school board of such school may reserve an amount which does not exceed the greater of— (i)
(ii)the lesser of—
(I)$15,000; or
(II)1 percent of such allotted funds,
for school board activities for such school, including (notwithstanding any other provision of law) meeting expenses and the cost of membership in, and support of, organizations engaged in activities on behalf of Indian education.
(B)Training
(i)In general
Each local school board, and any agency school board that serves as a local school board for any grant or contract school, shall ensure that each individual who is a new member of the school board receives, within 1 year after the individual becomes a member of the school board, 40 hours of training relevant to that individual’s service on the board.
(ii)Types of training
Such training may include training concerning legal issues pertaining to Bureau-funded schools, legal issues pertaining to school boards, ethics, and other topics determined to be appropriate by the school board.
(iii)Recommendation
The training described in this subparagraph shall not be required, but is recommended, for a tribal governing body that serves in the capacity of a school board.
(d)Reservation of amount for emergencies
(1)In general
The Secretary shall reserve from the funds available for distribution for each fiscal year under this section an amount that, in the aggregate, equals 1 percent of the funds available for such purpose for that fiscal year, to be used, at the discretion of the Director of the Office of Indian Education Programs, to meet emergencies and unforeseen contingencies affecting the education programs funded under this section.
(2)Use of funds
Funds reserved under this subsection may be expended only for education services or programs, including emergency repairs of educational facilities, at a schoolsite (as defined by section 2503(c)(2) of this title).
(3)Availability of funds
Funds reserved under this subsection shall remain available without fiscal year limitation until expended. However, the aggregate amount available from all fiscal years may not exceed 1 percent of the current year funds.
(4)Report
When the Secretary makes funds available under this subsection, the Secretary shall report such action to the appropriate committees of Congress within the annual budget submission.
(e)Supplemental appropriations
Supplemental appropriations enacted to meet increased pay costs attributable to school level personnel shall be distributed under this section.
(f)Eligible Indian student defined
In this section, the term “eligible Indian student” means a student who—
(1)is a member of, or is at least one-fourth degree Indian blood descendant of a member of, a tribe that is eligible for the special programs and services provided by the United States through the Bureau to Indians because of their status as Indians;
(2)resides on or near a reservation or meets the criteria for attendance at a Bureau off-reservation home-living school; and
(3)is enrolled in a Bureau-funded school.
(g)Tuition
(1)In general
No eligible Indian student or a student attending a Bureau school under paragraph (2)(C) may be charged tuition for attendance at a Bureau school or contract or grant school.
(2)Attendance of non-Indian students at Bureau schools
The Secretary may permit the attendance at a Bureau school of a student who is not an eligible Indian student if—
(A)the Secretary determines that the student’s attendance will not adversely affect the school’s program for eligible Indian students because of cost, overcrowding, or violation of standards or accreditation;
(B)the school board consents;
(C)the student is a dependent of a Bureau, Indian Health Service, or tribal government employee who lives on or near the school site; or
(D)tuition is paid for the student that is not more than the tuition charged by the nearest public school district for out-of-district students and shall be in addition to the school’s allocation under this section.
(3)Attendance of non-Indian students at contract and grant schools
The school board of a contract or grant school may permit students who are not eligible Indian students under this subsection to attend its contract school or grant school. Any tuition collected for those students shall be in addition to funding received under this section.
(h)Funds available without fiscal year limitation
Notwithstanding any other provision of law, at the election of the school board of a Bureau school made at any time during the fiscal year, a portion equal to not more than 15 percent of the funds allocated with respect to a school under this section for any fiscal year shall remain available to the school for expenditure without fiscal year limitation. The Assistant Secretary shall take such steps as are necessary to implement this subsection.
(i)Students at Richfield dormitory, Richfield, Utah
(1)In general
Tuition for the instruction of each out-of-State Indian student in a home-living situation at the Richfield dormitory in Richfield, Utah, who attends Sevier County high schools in Richfield, Utah, for an academic year, shall be paid from Indian school equalization program funds authorized in this section and section 2009 2 of this title, at a rate not to exceed the weighted amount provided for under subsection (b) for a student for that year.
(2)No administrative cost funds
No additional administrative cost funds shall be provided under this chapter to pay for administrative costs relating to the instruction of the students.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 2007, Pub. L. 95–561, title XI, § 1127, as added Pub. L. 103–382, title III, § 381, Oct. 20, 1994, 108 Stat. 3989, related to allotment formula, prior to the general amendment of this chapter by Pub. L. 107–110. Another prior section 2007, Pub. L. 95–561, title XI, § 1127, Nov. 1, 1978, 92 Stat. 2320, related to policies and procedures for implementation of transferred administrative functions, prior to the general amendment of this chapter by Pub. L. 103–382.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Jan. 8, 2002, except with respect to certain noncompetitive programs and competitive programs, see section 5 of Pub. L. 107–110, set out as a note under section 6301 of Title 20, Education.

Reference

Citations & Metadata

Citation

25 U.S.C. § 2007

Title 25, Indians

Last Updated

Sep 23, 2026

Release point: 119-110