the percentage change in the higher education price 
index for such year; and 
‘‘(2) for such academic year, provides the guar-
antee required by paragraph (2) or (3) of section 
401A(b). 
‘‘(c) DEFINITIONS.— 
‘‘(1) COOPERATIVE EDUCATION.—For the pur-
pose of this title the term ‘cooperative education’ 
means the provision of alternating or parallel periods 
of academic study and public or private employment 
in order to give students work experiences related to 
their academic or occupational objectives and an op-
portunity to earn the funds necessary for continuing 
and completing their education. 
‘‘(2) HIGHER
EDUCATION
PRICE
INDEX
AND 
NET TUITION PRICE.—The terms ‘higher education 
price index’ and ‘net tuition price’ have the same 
meaning as provided in section 133(f). 
‘‘SEC. 802. AUTHORIZATION OF APPROPRIATIONS; RES-
ERVATIONS. 
‘‘(a) APPROPRIATIONS AUTHORIZED.—There are au-
thorized to be appropriated to carry out this title 
$30,000,000 for fiscal year 2006 and such sums as may 
be necessary for each of the 5 succeeding fiscal years.
‘‘(b) RESERVATIONS.—Of the amount appropriated 
in each fiscal year— 
‘‘(1) not less than 50 percent shall be available 
for carrying out grants to institutions of higher edu-
cation and combinations of such institutions de-
scribed in section 803(a)(1)(A) for cooperative edu-
cation under section 803; 
‘‘(2) not less than 25 percent shall be available 
for carrying out grants to institutions of higher edu-
cation described in section 803(a)(1)(B) for coopera-
tive education under section 803; 
‘‘(3) not to exceed 11 percent shall be available 
for demonstration projects under paragraph (1) of 
section 804(a); 
‘‘(4) not to exceed 11 percent shall be available 
for training and resource centers under paragraph 
(2) of section 804(a); and 
‘‘(5) not to exceed 3 percent shall be available 
for research under paragraph (3) of section 804(a). 
‘‘(c) AVAILABILITY
OF APPROPRIATIONS.—Appro-
priations under this title shall not be available for the pay-
ment of compensation of students for employment by em-
ployers under arrangements pursuant to this title. 
‘‘SEC. 803. GRANTS FOR COOPERATIVE EDUCATION. 
‘‘(a) GRANTS AUTHORIZED.—
‘‘(1) IN GENERAL.—The Secretary is author-
ized— 
‘‘(A) from the amount available under sec-
tion 802(b)(1) in each fiscal year and in accord-
ance with the provisions of this title, to make 
grants to institutions of higher education or 
combinations of such institutions that have not 
received a grant under this paragraph in the 
10-year period preceding the date for which a 
grant under this section is requested to pay the 
Federal share of the cost of planning, estab-
lishing, expanding, or carrying out programs of 
cooperative education by such institutions or 
combinations of institutions; and 
‘‘(B) from the amount available under sec-
tion 802(b)(2) in each fiscal year and in accord-
ance with the provisions of this title, to make 
grants to institutions of higher education that 
are operating an existing cooperative education 
program as determined by the Secretary to pay 
the cost of planning, establishing, expanding, or 
carrying out programs of cooperative education 
by such institutions. 
‘‘(2) PROGRAM
REQUIREMENT.—Cooperative 
education programs assisted under this section shall
provide alternating or parallel periods of academic 
study and of public or private employment, giving 
students work experience related to their academic 
or occupational objectives and the opportunity to 
earn the funds necessary for continuing and com-
pleting their education. 
‘‘(3) AMOUNT OF GRANTS.— 
‘‘(A) The amount of each grant awarded 
pursuant to paragraph (1)(A) to any institution 
of higher education or combination of such in-
stitutions in any fiscal year shall not exceed 
$500,000. 
‘‘(B)(i) Except as provided in clauses (ii) 
and (iii), the Secretary shall award grants in 
each fiscal year to each institution of higher 
education described in paragraph (1)(B) that 
has an application approved under subsection 
(b) in an amount which bears the same ratio to 
the amount reserved pursuant to section 
802(b)(2) for such fiscal year as the number of 
unduplicated students placed in cooperative 
education jobs during the preceding fiscal year 
(other than cooperative education jobs under 
section 804 and as determined by the Sec-
retary) by such institution of higher education