Title 25, IndiansRelease 119-110

§2502 Grants Authorized

Title 25 › CHAPTER 27 — TRIBALLY CONTROLLED SCHOOL GRANTS › § 2502

Last updated Sep 23, 2026|Official source

Summary

The Secretary must give grants to Indian tribes and tribal groups that run or choose to run eligible tribal schools. Eligible groups include those that operate contract schools and switch to this grant program, those that run other tribally controlled schools and send in a tribal-approved application, and those that choose to take over Bureau-funded schools with a tribal-approved application. Grant money goes into the school’s general operating fund. Schools may use the money for things like running the school, academic and residential programs, counseling, administration, and support services such as transportation. If the school already gets money for operations and maintenance under the laws listed in section 2504(a), the grant may also pay operations and maintenance. Only one grant is allowed per tribe or tribal organization each fiscal year. Grant funds cannot be used for religious worship or sectarian instruction. Administrative spending from the grant cannot exceed the amount generated for administrative costs under section 1128 of the Education Amendments of 1978. If a grantee runs more than one school location, it may move to any site no more than the lesser of 10 percent of another site’s allocation under section 1128 or $400,000. A “school site” means the physical school and facilities counted separately in the funding formula in section 1127. Tribes do not have to apply for or accept a grant, and no one may force them to. These grants do not change the Federal Government’s duty to provide programs. Grants may not be ended or cut just for the convenience of the agency. A tribe may ask to return (retrocede) a program it runs under this grant. Retrocession takes effect on a date set by the Secretary no later than 120 days after the tribe’s request, unless both agree to a later date. After retrocession, the Secretary must provide at least the same level of services the program had before. The tribe must say whether the program will become Bureau-operated or a contract school under the Indian Self-Determination and Education Assistance Act. Unless the Secretary decides otherwise, equipment and materials bought with grant help, or brought in when a Bureau-funded school became grant-supported, must be transferred back to the Secretary or to the new operator.

Full Legal Text

Title 25, §2502

Indians, Source: USLM XML via OLRC

(a)In general
(1)Eligibility
The Secretary shall provide grants to Indian tribes, and tribal organizations that—
(A)operate contract schools under title XI of the Education Amendments of 1978 [25 U.S.C. 2000 et seq.] and notify the Secretary of their election to operate the schools with assistance under this chapter rather than continuing the schools as contract schools;
(B)operate other tribally controlled schools eligible for assistance under this chapter and submit applications (which are approved by their tribal governing bodies) to the Secretary for such grants; or
(C)elect to assume operation of Bureau-funded schools with the assistance under this chapter and submit applications (which are approved by their tribal governing bodies) to the Secretary for such grants.
(2)Deposit of funds
Grants provided under this chapter shall be deposited into the general operating fund of the tribally controlled school with respect to which the grant is made.
(3)Use of funds
(A)In general
Except as otherwise provided in this paragraph, grants provided under this chapter shall be used to defray, at the discretion of the school board of the tribally controlled school with respect to which the grant is provided, any expenditures for education related activities for which any funds that compose the grant may be used under the laws described in section 2504(a) of this title, including expenditures for— (i)
(ii)support services for the school, including transportation.
(B)Exception
Grants provided under this chapter may, at the discretion of the school board of the tribally controlled school with respect to which such grant is provided, be used to defray operations and maintenance expenditures for the school if any funds for the operation and maintenance of the school are allocated to the school under the provisions of any of the laws described in section 2504(a) of this title.
(b)Limitations
(1)One grant per tribe or organization per fiscal year
Not more than one grant may be provided under this chapter with respect to any Indian tribe or tribal organization for any fiscal year.
(2)Nonsectarian use
Funds provided under any grant made under this chapter may not be used in connection with religious worship or sectarian instruction.
(3)Administrative costs limitation
Funds provided under any grant under this chapter may not be expended for administrative costs (as defined in section 1128(h)(1) of the Education Amendments of 1978 [25 U.S.C. 2008(h)(1)]) in excess of the amount generated for such costs under section 1128 of such Act.
(c)Limitation on transfer of funds among school sites
(1)In general
In the case of a grantee that operates schools at more than one school site, the grantee may expend at any school site operated by the grantee not more than the lesser of— (A)
(B)$400,000 of the funds allocated for another school site.
(2)Definition of school site
For purposes of this subsection, the term “school site” means the physical location and the facilities of an elementary or secondary educational or residential program operated by, or under contract or grant with, the Bureau for which a discreet student count is identified under the funding formula established under section 1127 of the Education Amendments of 1978 [25 U.S.C. 2007].
(d)No requirement to accept grants
Nothing in this chapter may be construed—
(1)to require a tribe or tribal organization to apply for or accept; or
(2)to allow any person to coerce any tribe or tribal organization to apply for, or accept,
a grant under this chapter to plan, conduct, and administer all of, or any portion of, any Bureau program. Such applications and the timing of such applications shall be strictly voluntary. Nothing in this chapter may be construed as allowing or requiring any grant with any entity other than the entity to which the grant is provided.
(e)No effect on Federal responsibility
Grants provided under this chapter shall not terminate, modify, suspend, or reduce the responsibility of the Federal Government to provide a program.
(f)Retrocession
(1)In general
Whenever a tribal governing body requests retrocession of any program for which assistance is provided under this chapter, such retrocession shall become effective upon a date specified by the Secretary that is not later than 120 days after the date on which the tribal governing body requests the retrocession. A later date may be specified if mutually agreed upon by the Secretary and the tribal governing body. If such a program is retroceded, the Secretary shall provide to any Indian tribe served by such program at least the same quantity and quality of services that would have been provided under such program at the level of funding provided under this chapter prior to the retrocession.
(2)Status after retrocession
The tribe requesting retrocession shall specify whether the retrocession is to status as a Bureau-operated school or as a school operated under contract under the Indian Self-Determination and Education Assistance Act [25 U.S.C. 5301 et seq.].
(3)Transfer of equipment and materials
Except as otherwise determined by the Secretary, the tribe or tribal organization operating the program to be retroceded must transfer to the Secretary (or to the tribe or tribal organization which will operate the program as a contract school) the existing equipment and materials which were acquired—
(A)with assistance under this chapter; or
(B)upon assumption of operation of the program under this chapter, if the school was a Bureau-funded school under title XI of the Education Amendments of 1978 [25 U.S.C. 2000 et seq.] before receiving assistance under this chapter.
(g)Prohibition of termination for administrative convenience
Grants provided under this chapter may not be terminated, modified, suspended, or reduced solely for the convenience of the administering agency.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Education

Amendments

of 1978, referred to in subsecs. (a)(1)(A) and (f)(3)(B), is Pub. L. 95–561, Nov. 1, 1978, 92 Stat. 2143. Title XI of the Act is classified principally to chapter 22 (§ 2000 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

of 1978 Amendment note set out under section 6301 of Title 20, Education, and Tables. The Indian Self-Determination and Education Assistance Act, referred to in subsec. (f)(2), is Pub. L. 93–638, Jan. 4, 1975, 88 Stat. 2203, which is classified principally to chapter 46 (§ 5301 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 5301 of this title and Tables.

Prior Provisions

A prior section 2502, Pub. L. 100–297, title V, § 5203, Apr. 28, 1988, 102 Stat. 385, set forth declaration of policy, prior to repeal by Pub. L. 107–110, title X, § 1043, Jan. 8, 2002, 115 Stat. 2063. See section 2501 of this title.

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. § 2502

Title 25, Indians

Last Updated

Sep 23, 2026

Release point: 119-110