25 USC 2506 - Payment of grants; investment of funds

Collapse to view only § 2506. Payment of grants; investment of funds

§ 2501. Declaration of policy
§ 2502. Grants authorized
§ 2502a. Retrocession or re-assumption of Indian education funds
§ 2503. Composition of grants
§ 2504. Eligibility for grants
§ 2505. Duration of eligibility determination
§ 2506. Payment of grants; investment of funds
§ 2507. Application with respect to Indian Self-Determination and Education Assistance Act
§ 2508. Role of the Director
§ 2509. Regulations
§ 2510. The tribally controlled grant school endowment program
§ 2511. Definitions

§ 2501. Declaration of policy

(a) Recognition

(b) Commitment

Congress declares that a national goal of the United States is to provide the resources, processes, and structure that will enable tribes and local communities to obtain the quantity and quality of educational services and opportunities that will permit Indian children—

(1) to compete and excel in areas of their choice; and

(2) to achieve the measure of self-determination essential to their social and economic well-being.

(d) Educational needs

Congress affirms—

(1) true self-determination in any society of people is dependent upon an educational process that will ensure the development of qualified people to fulfill meaningful leadership roles;

(2) that Indian people have special and unique educational needs, including the need for programs to meet the linguistic and cultural aspirations of Indian tribes and communities; and

(3) that those needs may best be met through a grant process.

(e) Federal relations

(f) Termination

(Pub. L. 100–297, title V, § 5202, as added Pub. L. 107–110, title X, § 1043, Jan. 8, 2002, 115 Stat. 2063.)

§ 2502. Grants authorized

(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

(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) school operations, academic, educational, residential, guidance and counseling, and administrative purposes; and

(ii) support services for the school, including transportation.

(B) Exception

(b) Limitations

(1) One grant per tribe or organization per fiscal year

(2) Nonsectarian use

(3) Administrative costs limitation

(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) 10 percent of the funds allocated for another school site under section 1128 of the Education Amendments of 1978 [25 U.S.C. 2008]; or

(B) $400,000 of the funds allocated for another school site.

(2) Definition of school site

(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

(f) Retrocession

(1) In general

(2) Status after retrocession

(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

(Pub. L. 100–297, title V, § 5203, as added Pub. L. 107–110, title X, § 1043, Jan. 8, 2002, 115 Stat. 2064.)

§ 2502a. Retrocession or re-assumption of Indian education funds

Beginning July 1, 2008, and thereafter, any funds (including investments and interest earned, except for construction funds) held by a Public Law 100–297 grant or a Public Law 93–638 contract school shall, upon retrocession to or re-assumption by the Bureau of Indian Education, remain available to the Bureau of Indian Education for a period of 5 years from the date of retrocession or re-assumption for the benefit of the programs approved for the school on October 1, 1995.

(Pub. L. 113–76, div. G, title I, § 110, Jan. 17, 2014, 128 Stat. 312.)

§ 2503. Composition of grants

(a) In generalThe grant provided under this chapter to an Indian tribe or tribal organization for any fiscal year shall consist of—

(1) the total amount of funds allocated for such fiscal year under sections 1127 and 1128 of the Education Amendments of 1978 [25 U.S.C. 2007, 2008] with respect to the tribally controlled schools eligible for assistance under this chapter which are operated by such Indian tribe or tribal organization, including, but not limited to, funds provided under such sections, or under any other provision of law, for transportation costs;

(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

1 So in original. The words “, that are allocated to such schools for such fiscal year” probably should not appear.

(b) Special rules

(1) In general

(A) Applicability of certain lawsFunds 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

(2) Schools considered contract schools

(3) Schools considered Bureau schoolsTribally 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

(4) Accounts; use of certain funds

(A) Separate account

(i) In general

(ii) Submission of accounting

(iii) Use of funds

(iv) Completion of project

(B) Requirements for projects

(i)

(ii) Exception

(iii) Applications

(iv) Disputes

(D) Period

(5) Enforcement of request to include funds

(A) In generalIf the Secretary fails to carry out a request filed by an Indian tribe or tribal organization to include in such tribe 6

6 So in original. Probably should be “tribe’s”.

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

(Pub. L. 100–297, title V, § 5204, as added Pub. L. 107–110, title X, § 1043, Jan. 8, 2002, 115 Stat. 2066.)

§ 2504. Eligibility for grants

(a) Rules

(1) In generalA tribally controlled school is eligible for assistance under this chapter if the school—

(A) on April 28, 1988, was a contract school under title XI of the Education Amendments of 1978 [25 U.S.C. 2000 et seq.] and the tribe or tribal organization operating the school submits to the Secretary a written notice of election to receive a grant under this chapter;

(B) was a Bureau-operated school under title XI of the Education Amendments of 1978 [25 U.S.C. 2000 et seq.] and has met the requirements of subsection (b);

(D) is a school with respect to which an election has been made under paragraph (2) and which has met the requirements of subsection (b).

(2) New schools

(b) Additional requirements for Bureau-funded schools and certain electing schools

(1) Bureau-funded schoolsA school that was a Bureau-funded school under title XI of the Education Amendments of 1978 [25 U.S.C. 2000 et seq.] on January 8, 2002, and any school with respect to which an election is made under subsection (a)(2), meets the requirements of this subsection if—

(A) the Indian tribe or tribal organization that operates, or desires to operate, the school submits to the Secretary an application requesting that the Secretary—

(i) transfer operation of the school to the Indian tribe or tribal organization, if the Indian tribe or tribal organization is not already operating the school; and

(ii) make a determination as to whether the school is eligible for assistance under this chapter; and

(B) the Secretary makes a determination that the school is eligible for assistance under this chapter.

(2) Certain electing schools

(A) In generalBy not later than the date that is 120 days after the date on which an application is submitted to the Secretary under paragraph (1)(A), the Secretary shall determine—

(i) in the case of a school which is not being operated by the Indian tribe or tribal organization, whether to transfer operation of the school to the Indian tribe or tribal organization; and

(ii) whether the school is eligible for assistance under this chapter.

(B) Other determinationsIn considering applications submitted under paragraph (1)(A), the Secretary—

(i) shall transfer operation of the school to the Indian tribe or tribal organization, if the tribe or tribal organization is not already operating the school; and

(ii) shall determine that the school is eligible for assistance under this chapter, unless the Secretary finds by clear and convincing evidence that the services to be provided by the Indian tribe or tribal organization will be deleterious to the welfare of the Indians served by the school.

(C) ConsiderationsIn considering applications submitted under paragraph (1)(A), the Secretary shall consider whether the Indian tribe or tribal organization would be deficient in operating the school with respect to—

(i) equipment;

(ii) bookkeeping and accounting procedures;

(iii) ability to adequately manage a school; or

(iv) adequately trained personnel.

(1) In generalA school which is not a Bureau-funded school under title XI of the Education Amendments of 1978 [25 U.S.C. 2000 et seq.] meets the requirements of this subsection if—

(A) the Indian tribe or tribal organization that operates, or desires to operate, the school submits to the Secretary an application requesting a determination by the Secretary as to whether the school is eligible for assistance under this chapter; and

(B) the Secretary makes a determination that a school is eligible for assistance under this chapter.

(2) Deadline for determination by Secretary

(A) In general

(B) ConsiderationsIn making the determination under subparagraph (A), the Secretary shall give equal consideration to each of the following factors:

(i) With respect to the applicant’s proposal—(I) the adequacy of facilities or the potential to obtain or provide adequate facilities;(II) geographic and demographic factors in the affected areas;(III) adequacy of the applicant’s program plans;(IV) geographic proximity of comparable public education; and(V) the needs as expressed by all affected parties, including but not limited to students, families, tribal governments at both the central and local levels, and school organizations.

(ii) With respect to all education services already available—(I) geographic and demographic factors in the affected areas;(II) adequacy and comparability of programs already available;(III) consistency of available programs with tribal education codes or tribal legislation on education; and(IV) the history and success of these services for the proposed population to be served, as determined from all factors including, if relevant, standardized examination performance.

(D) Other information

(E) Deadline

(d) Filing of applications and reports

(1) In general

(2) Supporting documentation

(e) Effective date for approved applications

(f) Denial of applications

(1) In generalWhenever the Secretary refuses to approve a grant under this chapter, to transfer operation of a Bureau school under subsection (b), or determines that a school is not eligible for assistance under this chapter, the Secretary shall—

(A) state the objections in writing to the tribe or tribal organization within the allotted time;

(B) provide assistance to the tribe or tribal organization to overcome all stated objections;

(C) at the request of the tribe or tribal organization, provide the tribe or tribal organization a hearing on the record under the same rules and regulations that apply under the Indian Self-Determination and Education Assistance Act [25 U.S.C. 5301 et seq.]; and

(D) provide an opportunity to appeal the objection raised.

(2) Timeline for reconsideration of amended applications

(g) Report

(Pub. L. 100–297, title V, § 5205, as added Pub. L. 107–110, title X, § 1043, Jan. 8, 2002, 115 Stat. 2068.)

§ 2505. Duration of eligibility determination

(a) In general

(b) Annual reports

(1) In generalEach recipient of a grant provided under this chapter shall complete an annual report which shall be limited to—

(A) an annual financial statement reporting revenue and expenditures as defined by the cost accounting established by the grantee;

(B) an annual financial audit conducted pursuant to the standards of the Single Audit Act of 1984 [31 U.S.C. 7501 et seq.];

(C) a biennial compliance audit of the procurement of personal property during the period for which the report is being prepared that shall be in compliance with written procurement standards that are developed by the local school board;

(D) an annual submission to the Secretary of the number of students served and a brief description of programs offered under the grant; and

(E) a program evaluation conducted by an impartial evaluation review team, to be based on the standards established for purposes of subsection (c)(1)(A)(ii).1

1 So in original. Probably should be subsection “(c)(1)(B)(ii).”

(2) Evaluation review teams

(3) Evaluations

(4) Submission of report

(A) To tribal governing body

(B) To Secretary

(1) Determination of eligibility for assistanceThe Secretary shall not revoke a determination that a school is eligible for assistance under this chapter if—

(A) the Indian tribe or tribal organization submits the reports required under subsection (b) with respect to the school; and

(B) at least one of the following clauses applies with respect to the school:

(i) The school is certified or accredited by a State or regional accrediting association or is a candidate in good standing for such accreditation under the rules of the State or regional accrediting association, showing that credits achieved by the students within the education programs are, or will be, accepted at grade level by a State certified or regionally accredited institution.

(ii) The Secretary determines that there is a reasonable expectation that the certification or accreditation described in clause (i), or candidacy in good standing for such certification or accreditation, will be achieved by the school within 3 years. The school seeking accreditation shall remain under the standards of the Bureau in effect on January 8, 2002, until such time as the school is accredited, except that if the Bureau standards are in conflict with the standards of the accrediting agency, the standards of such agency shall apply in such case.

(iii) The school is accredited by a tribal department of education if such accreditation is accepted by a generally recognized regional or State accreditation agency.

(iv)(I) With respect to a school that lacks accreditation, or that is not a candidate for accreditation, based on circumstances that are not beyond the control of the school board, every 3 years an impartial evaluator agreed upon by the Secretary and the grant recipient conducts evaluations of the school, and the school receives a positive assessment under such evaluations. The evaluations are conducted under standards adopted by a contractor under a contract for the school entered into under the Indian Self-Determination and Education Assistance Act [25 U.S.C. 5301 et seq.] (or revisions of such standards agreed to by the Secretary and the grant recipient) prior to January 8, 2002.(II) If the Secretary and a grant recipient other than a tribal governing body fail to agree on such an evaluator, the tribal governing body shall choose the evaluator or perform the evaluation. If the Secretary and a grant recipient that is a tribal governing body fail to agree on such an evaluator, subclause (I) shall not apply.(III) A positive assessment by an impartial evaluator under this clause shall not affect the revocation of a determination of eligibility by the Secretary where such revocation is based on circumstances that were within the control of the school board.

(2) Notice requirements for revocationThe Secretary shall not revoke a determination that a school is eligible for assistance under this chapter, or reassume control of a school that was a Bureau school prior to approval of an application submitted under section 2505(b)(1)(A) 2

2 So in original. Probably should be section “2504(b)(1)(A)”.

of this title until the Secretary—

(A) provides notice to the tribally controlled school and the tribal governing body (within the meaning of section 2021 of this title) of the tribally controlled school which states—

(i) the specific deficiencies that led to the revocation or resumption determination; and

(ii) the actions that are needed to remedy such deficiencies; and

(B) affords such authority an opportunity to effect the remedial actions.

(3) Technical assistance

(4) Hearing and appealIn addition to notice and technical assistance under this subsection, the Secretary shall provide to the school and governing body—

(A) at the request of the school or governing body, a hearing on the record regarding the revocation or reassumption determination, to be conducted under the rules and regulations described in section 2505(f)(1)(C) 3

3 So in original. Probably should be section “2504(f)(1)(C)”.

of this title; and

(B) an opportunity to appeal the decision resulting from the hearing.

(d) Applicability of section pursuant to election under section 2507(b)With respect to a tribally controlled school that receives assistance under this chapter pursuant to an election made under section 2507(b) of this title—

(1) subsection (b) of this section shall apply; and

(2) the Secretary may not revoke eligibility for assistance under this chapter except in conformance with subsection (c) of this section.

(Pub. L. 100–297, title V, § 5206, as added Pub. L. 107–110, title X, § 1043, Jan. 8, 2002, 115 Stat. 2072.)

§ 2506. Payment of grants; investment of funds

(a) Payments

(1) In general

Except as otherwise provided in this subsection, the Secretary shall make payments to grantees under this chapter in two payments, of which—

(A) the first payment shall be made not later than July 1 of each year in an amount equal to 80 percent of the amount which the grantee was entitled to receive during the preceding academic year; and

(B) the second payment, consisting of the remainder to which the grantee is entitled for the academic year, shall be made not later than December 1 of each year.

(2) Excess funding

(3) Newly funded schools

(4) Late funding

(5) Applicability of certain title 31 provisions

(6) Restrictions

(b) Investment of funds

(1) Treatment of interest and investment income

(2) Permissible investments

Funds provided under this chapter may be invested by the Indian tribe or tribal organization before such funds are expended for the purposes of this chapter so long as such funds are—

(A) invested by the Indian tribe or tribal organization only in obligations of the United States, or in obligations or securities that are guaranteed or insured by the United States, or mutual (or other) funds registered with the Securities and Exchange Commission and which only invest in obligations of the United States, or securities that are guaranteed or insured by the United States; or

(B) deposited only into accounts that are insure by and 1

1 So in original. Probably should be “insured by an”.

agency or instrumentality of the United States, or are fully collateralized to ensure protection of the funds, even in the event of a bank failure.

(Pub. L. 100–297, title V, § 5207, as added

§ 2507. Application with respect to Indian Self-Determination and Education Assistance Act

(a) Certain provisions to apply to grants

The following provisions of the Indian Self-Determination and Education Assistance Act [25 U.S.C. 5301 et seq.] (and any subsequent revisions thereto or renumbering thereof), shall apply to grants provided under this chapter:

(1) Section 5(f) [25 U.S.C. 5305(f)] (relating to single agency audit).

(2) Section 6 [25 U.S.C. 5306] (relating to criminal activities; penalties).

(3) Section 7 [25 U.S.C. 5307] (relating to wage and labor standards).

(4) Section 104 [25 U.S.C. 5323] (relating to retention of Federal employee coverage).

(5) Section 105(f) [25 U.S.C. 5324(f)] (relating to Federal property).

(6) Section 105(k) [25 U.S.C. 5324(k)] (relating to access to Federal sources of supply).

(7) Section 105(l) [25 U.S.C. 5324(l)] (relating to lease of facility used for administration and delivery of services).

(8) Section 106(f) [25 U.S.C. 5325(f)] (relating to limitation on remedies relating to cost allowances).

(9) Section 106(j) [25 U.S.C. 5325(j)] (relating to use of funds for matching or cost participation requirements).

(10) Section 106(k) [25 U.S.C. 5325(k)] (relating to allowable uses of funds).

(11) Section 108(c) [25 U.S.C. 5329(c)] (Model Agreements provisions (1)(a)(5) 1

1 So in original. Probably should be “1(b)(5)”.

(relating to limitations of costs), (1)(a)(7) 2

2 So in original. Probably should be “1(b)(7)”.

(relating to records and monitoring), (1)(a)(8) 3

3 So in original. Probably should be “1(b)(8)”.

(relating to property), and (a)(1)(9) 4

4 So in original. Probably should be “1(b)(9)”.

(relating to availability of funds).5

5 So in original. There probably should be a second closing parenthesis.

(12) Section 109 [25 U.S.C. 5330] (relating to reassumption).

(13) Section 111 [25 U.S.C. 5332] (relating to sovereign immunity and trusteeship rights unaffected).

(b) Election for grant in lieu of contract

(1) In general

(2) Effective date of election

(3) Exception

(d) Transfers and carryovers

(1) Buildings, equipment, supplies, materials

A tribe or tribal organization assuming the operation of—

(A) a Bureau school with assistance under this chapter shall be entitled to the transfer or use of buildings, equipment, supplies, and materials to the same extent as if it were contracting under the Indian Self-Determination and Education Assistance Act [25 U.S.C. 5301 et seq.]; or

(B) a contract school with assistance under this chapter shall be entitled to the transfer or use of buildings, equipment, supplies, and materials that were used in the operation of the contract school to the same extent as if it were contracting under the Indian Self-Determination and Education Assistance Act.

(2) Funds

(3) Funding for school improvement

(e) Exceptions, problems, and disputes

(Pub. L. 100–297, title V, § 5208, as added Pub. L. 107–110, title X, § 1043, Jan. 8, 2002, 115 Stat. 2076.)

§ 2508. Role of the Director

Applications for grants under this chapter, and all application modifications, shall be reviewed and approved by personnel under the direction and control of the Director of the Office of Indian Education Programs. Required reports shall be submitted to education personnel under the direction and control of the Director of such Office.

(Pub. L. 100–297, title V, § 5209, as added Pub. L. 107–110, title X, § 1043, Jan. 8, 2002, 115 Stat. 2077.)

§ 2509. Regulations

The Secretary is authorized to issue regulations relating to the discharge of duties specifically assigned to the Secretary in this chapter. For all other matters relating to the details of planning, developing, implementing, and evaluating grants under this chapter, the Secretary shall not issue regulations.

(Pub. L. 100–297, title V, § 5210, as added Pub. L. 107–110, title X, § 1043, Jan. 8, 2002, 115 Stat. 2077.)

§ 2510. The tribally controlled grant school endowment program

(a) In general

(1) Establishment

(2) Deposits and use

The school may provide—

(A) for deposit into the trust fund, only funds from non-Federal sources, except that the interest on funds received from grants provided under this chapter may be used for that purpose;

(B) for deposit into the trust fund, any earnings on funds deposited in the fund; and

(C) for the sole use of the school any noncash, in-kind contributions of real or personal property, which may at any time be used, sold, or otherwise disposed of.

(b) Interest

(Pub. L. 100–297, title V, § 5211, as added Pub. L. 107–110, title X, § 1043, Jan. 8, 2002, 115 Stat. 2078.)

§ 2511. DefinitionsIn this chapter:

(1) Bureau

(2) Eligible Indian student

(3) Indian

(4) Indian tribe

(5) Local educational agency

(6) Secretary

(7) Tribal governing body

(8) Tribal organization

(A) In generalThe term “tribal organization” means—

(i) the recognized governing body of any Indian tribe; or

(ii) any legally established organization of Indians that—(I) is controlled, sanctioned, or chartered by such governing body or is democratically elected by the adult members of the Indian community to be served by such organization; and(II) includes the maximum participation of Indians in all phases of the organization’s activities.

(B) Authorization

(9) Tribally controlled schoolThe term “tribally controlled school” means a school that—

(A) is operated by an Indian tribe or a tribal organization, enrolling students in kindergarten through grade 12, including a preschool;

(B) is not a local educational agency; and

(Pub. L. 100–297, title V, § 5212, as added Pub. L. 107–110, title X, § 1043, Jan. 8, 2002, 115 Stat. 2078.)