Title 25, IndiansRelease 119-110
§2503 Composition of Grants
Title 25 › CHAPTER 27 — TRIBALLY CONTROLLED SCHOOL GRANTS › § 2503
Summary
Grants to a tribe or tribal group for its tribally controlled schools must include three kinds of money for each year: all funds the schools get under the Education Amendments (including transportation money), any operations, maintenance, or facilities funds if the tribe asks for them, and all amounts the schools receive under Title I, the Individuals with Disabilities Education Act, and other federal education laws. Money added from the first two kinds is governed by this grant program and cannot have extra Bureau limits that would apply only because the money comes from Title I, IDEA, or other federal education laws. Facilities money (repair, renovation, health and safety, or new building) must be kept in a separate account. When the work is done, the tribe must give the Secretary a report showing the work and how the money was spent. Those funds can only be used for the purpose the money was given for. Projects over $100,000 follow certain federal administrative and audit rules, but not one specific rule in that set, and payment schedules are negotiated. A tribe can use grant funds for new construction only if the tribe adds at least 25% of the project cost. If no time period is set for the work, the tribe and the Secretary agree on one before money moves and can extend it by mutual agreement. If the Secretary does not include requested facilities funds within 180 days, the request is treated as approved and the grant must be amended. Tribes may use the program’s dispute process to enforce these rights.
Full Legal Text
Title 25, §2503
Indians, Source: USLM XML via OLRC
(a)In general
The grant provided under this chapter to an Indian tribe or tribal organization for any fiscal year shall consist of— (1)
(2)to the extent requested by such Indian tribe or tribal organization, the total amount of funds provided from operations and maintenance accounts and, notwithstanding section 5324 of this title, or any other provision of law, other facilities accounts for such schools for such fiscal year (including but not limited to those referenced under section 1126(d) of the Education Amendments of 1978 [25 U.S.C. 2006(d)] or any other law); and
(3)the total amount of funds that are allocated to such schools for such fiscal year under—
(A)title I of the Elementary and Secondary Education Act of 1965 [20 U.S.C. 6301 et seq.];
(B)the Individuals with Disabilities Education Act [20 U.S.C. 1400 et seq.]; and
(C)any other Federal education law, that are allocated to such schools for such fiscal year.
(b)Special rules
(1)In general
(A)Applicability of certain laws
Funds allocated to a tribally controlled school by reason of paragraph (1) or (2) of subsection (a) shall be subject to the provisions of this chapter and shall not be subject to any additional restriction, priority, or limitation that is imposed by the Bureau with respect to funds provided under—
(i)title I of the Elementary and Secondary Education Act of 1965 [20 U.S.C. 6301 et seq.];
(ii)the Individuals with Disabilities Education Act [20 U.S.C. 1400 et seq.]; or
(iii)any Federal education law other than title XI of the Education Amendments of 1978 [25 U.S.C. 2000 et seq.].
(B)Applicability of Bureau provisions
Indian tribes and tribal organizations to which grants are provided under this chapter, and tribally controlled schools for which such grants are provided, shall not be subject to any requirements, obligations, restrictions, or limitations imposed by the Bureau that would otherwise apply solely by reason of the receipt of funds provided under any law referred to in clause (i), (ii), or (iii) of subparagraph (A).
(2)Schools considered contract schools
Tribally controlled schools for which grants are provided under this chapter shall be treated as contract schools for the purposes of allocation of funds under section 1126(e), 1127, and 1128 of the Education Amendments of 1978 [25 U.S.C. 2006(e), 2007, 2008].
(3)Schools considered Bureau schools
Tribally controlled schools for which grants are provided under this chapter shall be treated as Bureau schools for the purposes of allocation of funds provided under—
(A)title I of the Elementary and Secondary Education Act of 1965 [20 U.S.C. 6301 et seq.];
(B)the Individuals with Disabilities Education Act [20 U.S.C. 1400 et seq.]; and
(C)any other Federal education law, that are distributed through the Bureau.
(4)Accounts; use of certain funds
(A)Separate account
(i)In general
Notwithstanding section 2503(a)(2) of this title, with respect to funds from facilities improvement and repair, alteration and renovation (major or minor), health and safety, or new construction accounts included in the grant provided under section 2503(a) of this title, the grant recipient shall maintain a separate account for such funds.
(ii)Submission of accounting
At the end of the period designated for the work covered by the funds received, the grant recipient shall submit to the Secretary a separate accounting of the work done and the funds expended.
(iii)Use of funds
Funds received from those accounts may only be used for the purpose for which the funds were appropriated and for the work encompassed by the application or submission for which the funds were received.
(iv)Completion of project
Upon completion of a project for which a separate account is established under this paragraph, the portion of the grant related to such project may be closed out upon agreement by the grantee and the Secretary.
(B)Requirements for projects
(i)Regulatory requirements
With respect to a grant to a tribally controlled school under this chapter for new construction or facilities improvements and repair in excess of $100,000, such grant shall be subject to the Administrative and Audit Requirements and Cost Principles for Assistance Programs contained in part 12 of title 43, Code of Federal Regulations.
(ii)Exception
Notwithstanding clause (i), grants described in such clause shall not be subject to section 12.61 of title 43, Code of Federal Regulations. The Secretary and the grantee shall negotiate and determine a schedule of payments for the work to be performed.
(iii)Applications
In considering applications for a grant described in clause (i), the Secretary shall consider whether the Indian tribe or tribal organization involved would be deficient in ensuring that the construction projects under the proposed grant conform to applicable building standards and codes and Federal, tribal, or State health and safety standards as required under section 1124 of the Education Amendments of 1978 (25 U.S.C. 2005(a)) with respect to organizational and financial management capabilities.
(iv)Disputes
Any disputes between the Secretary and any grantee concerning a grant described in clause (i) shall be subject to the dispute provisions contained in section 2508(e) of this title.
(C)New construction
Notwithstanding subparagraph (A), a school receiving a grant under this chapter for facilities improvement and repair may use such grant funds for new construction if the tribal governing body or tribal organization that submits the application for the grant provides funding for the new construction equal to at least 25 percent of the total cost of such new construction.
(D)Period
In a case in which the appropriations measure under which the funds described in subparagraph (A) are made available or the application submitted for the funds does not stipulate a period for the work covered by the funds, the Secretary and the grant recipient shall consult and determine such a period prior to the transfer of the funds. A period so determined may be extended upon mutual agreement of the Secretary and the grant recipient.
(5)Enforcement of request to include funds
(A)In general
If the Secretary fails to carry out a request filed by an Indian tribe or tribal organization to include in such tribe or organization’s grant under this chapter the funds described in subsection (a)(2) within 180 days after the filing of the request, the Secretary shall—
(i)be deemed to have approved such request; and
(ii)immediately upon the expiration of such 180-day period amend the grant accordingly.
(B)Rights
A tribe or organization described in subparagraph (A) may enforce its rights under subsection (a)(2) and this paragraph, including rights relating to any denial or failure to act on such tribe’s or organization’s request, pursuant to the dispute authority described in section 2508(e) 5 of this title.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
The Elementary and Secondary Education Act of 1965, referred to in subsecs. (a)(3)(A) and (b)(1)(A)(i), (3)(A), is Pub. L. 89–10, Apr. 11, 1965, 79 Stat. 27. Title I of the Act is classified generally to subchapter I (§ 6301 et seq.) of chapter 70 of Title 20, Education. For complete classification of this Act to the Code, see
Short Title
note set out under section 6301 of Title 20 and Tables. The Individuals with Disabilities Education Act, referred to in subsecs. (a)(3)(B) and (b)(1)(A)(ii), (3)(B), is title VI of Pub. L. 91–230, Apr. 13, 1970, 84 Stat. 175, which is classified generally to chapter 33 (§ 1400 et seq.) of Title 20, Education. For complete classification of this Act to the Code, see section 1400 of Title 20 and Tables. The Education
Amendments
of 1978, referred to in subsec. (b)(1)(A)(iii), 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
note set out under section 6301 of Title 20, Education, and Tables. section 1124 of the Education
Amendments
of 1978 (25 U.S.C. 2005(a)), referred to in subsec. (b)(4)(B)(iii), probably should be section 1125 of the Education
Amendments
of 1978, Pub. L. 95–561, which is classified to section 2005 of this title and requires, in subsec. (b), compliance with health and safety standards. section 1124 of Pub. L. 95–561, which is classified to section 2004 of this title, relates to school boundaries.
Prior Provisions
A prior section 2503, Pub. L. 100–297, title V, § 5204, Apr. 28, 1988, 102 Stat. 386; Pub. L. 100–427, § 10(a), (b), Sept. 9, 1988, 102 Stat. 1607; Pub. L. 102–119, § 26(f), Oct. 7, 1991, 105 Stat. 607; Pub. L. 103–382, title III, § 394(m)(1), Oct. 20, 1994, 108 Stat. 4029, authorized grants, prior to repeal by Pub. L. 107–110, title X, § 1043, Jan. 8, 2002, 115 Stat. 2063. See section 2502 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. § 2503
Title 25, Indians
Last Updated
Sep 23, 2026
Release point: 119-110