Page:United States Statutes at Large Volume 114 Part 5.djvu/88

 114 STAT. 2763A-48 PUBLIC LAW 106-554—APPENDIX A assistance for fiscal year 1999 (including any such assistance provided under this subpart). " (g) USE OF FUNDS FOR ADMINISTRATIVE COSTS PROHIBITED.— A State receiving a grant under this section shall not use any of the grant funds to pay administrative costs associated with any of the authorized activities described in subsection (c).". SEC. 317. (a) Section 402D of the Higher Education Act of 1965 (20 U.S.C. 1070a-14) is amended— (1) by redesignating subsection (c) as subsection (d); and (2) by inserting after subsection (b) the following new subsection: "(c) SPECIAL RULE. — "(1) USE FOR STUDENT AID. —^A recipient of a grant that undertakes any of the permissible services identified in subsection (b) may, in addition, use such funds to provide grant aid to students. A grant provided under this paragraph shall not exceed the maximum appropriated Pell Grant or, be less than the minimum appropriated Pell Grant, for the current academic year. In making grants to students under this subsection, an institution shall ensure that adequate consultation takes place between the student support service program office and the institution's financial aid office. "(2) ELIGIBLE STUDENTS. — For purposes of receiving grant aid under this subsection, eligible students shall be current participants in the student support services program offered by the institution and be— "(A) students who are in their first 2 years of postsecondary education and who are receiving Federal Pell Grants under subpart 1; or "(B) students who have completed their first 2 years of postsecondary education and who are receiving Federal Pell Grants under subpart 1 if the institution demonstrates to the satisfaction of the Secretary that— "(i) these students are at high risk of dropping out; and "(ii) it will first meet the needs of all its eligible first- and second-year students for services under this paragraph. "(3) DETERMINATION OF NEED.—^A grant provided to a student under paragraph (1) shall not be considered in determining that student's need for grant or work assistance under this title, except that in no case shall the total amount of student financial assistance awarded to a student under this title exceed that student's cost of attendance, as defined in section 472. "(4) MATCHING REQUIRED. —^A recipient of a grant who uses such funds for the purpose described in paragraph (1) shall match the funds used for such purpose, in cash, from non- Federal funds, in an amount that is not less than 33 percent of the total amount of funds used for that purpose. This paragraph shall not apply to any grant recipient that is an institution of higher education eligible to receive funds under part AorBoftitleIIIortitleV. "(5) RESERVATION.— In no event may a recipient use more than 20 percent of the funds received under this section for grant aid. "(6) SUPPLEMENT, NOT SUPPLANT.— Funds received by a grant recipient that are used under this subsection shall be

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