cation in the first year the applicant receives a 
grant under this section; 
‘‘(B) 70 percent of such cost in the second 
such year; 
‘‘(C) 55 percent of such cost in the third 
such year; 
‘‘(D) 40 percent of such cost in the fourth 
such year; and 
‘‘(E) 25 percent of such cost in the fifth 
such year. 
‘‘(3) SPECIAL RULE.—Any provision of law to 
the contrary notwithstanding, the Secretary shall not 
waive the provisions of this subsection. 
‘‘(d) MAINTENANCE OF EFFORT.—If the Secretary 
determines that a recipient of funds under this section has 
failed to maintain the fiscal effort described in subsection 
(b)(3), then the Secretary may elect not to make grant 
payments under this section to such recipient. 
‘‘(e) FACTORS FOR SPECIAL CONSIDERATION OF AP-
PLICATIONS.— 
‘‘(1) IN GENERAL.—In approving applications 
under this section, the Secretary shall give special 
consideration to applications from institutions of 
higher education or combinations of such institu-
tions for programs which show the greatest promise 
of success because of— 
‘‘(A) the extent to which programs in the 
academic discipline with respect to which the 
application is made have had a favorable recep-
tion by public and private sector employers; 
‘‘(B) the strength of the commitment of 
the institution of higher education or combina-
tion of such institutions to cooperative edu-
cation as demonstrated by the plans and for-
malized institutional commitment statement 
which such institution or combination has made 
to continue the program after the termination 
of Federal financial assistance, 
‘‘(C) the extent to which the institution or 
combination is committed to extending coopera-
tive education for all students who can benefit, 
and 
‘‘(D) such other factors as are consistent 
with the purposes of this section. 
‘‘(2) ADDITIONAL SPECIAL CONSIDERATION.— 
The Secretary shall also give special consideration to 
applications from institutions of higher education or 
combinations of such institutions which demonstrate
a commitment to serving all underserved popu-
lations. 
‘‘SEC. 804. DEMONSTRATION AND INNOVATION PROJECTS; 
TRAINING AND RESOURCE CENTERS; AND RE-
SEARCH. 
‘‘(a) AUTHORIZATION.—The Secretary is authorized, 
in accordance with the provisions of this section, to make 
grants and enter into contracts for— 
‘‘(1) the conduct of demonstration projects de-
signed to demonstrate or determine the feasibility or 
value of innovative methods of cooperative education 
from the amounts available in each fiscal year under 
section 802(b)(3); 
‘‘(2) the conduct of training and resource cen-
ters designed to— 
‘‘(A) train personnel in the field of cooper-
ative education; 
‘‘(B) improve materials used in cooperative 
education programs if such improvement is con-
ducted in conjunction with other activities de-
scribed in this paragraph; 
‘‘(C) furnish technical assistance to institu-
tions of higher education to increase the poten-
tial of the institution to continue to conduct a
cooperative education program without Federal 
assistance; 
‘‘(D) encourage model cooperative edu-
cation programs which furnish education and 
training in occupations in which there is a na-
tional need; 
‘‘(E) support partnerships under which an 
institution carrying out a comprehensive cooper-
ative education program joins with one or more 
institutions of higher education in order to (i) 
assist the institution other than the comprehen-
sive cooperative education institution to develop 
and expand an existing program of cooperative 
education, or (ii) establish and improve or ex-
pand comprehensive cooperative education pro-
grams; and 
‘‘(F) encourage model cooperative edu-
cation programs in the fields of science and 
mathematics for women and minorities who are 
underrepresented in such fields 
from the amounts available in each fiscal year under 
section 802(b)(4); and 
‘‘(3) the conduct of research relating to cooper-
ative education, from the amounts available in each 
fiscal year under section 802(b)(5).