(B) graduated from a secondary school in 
such outlying area, or received the recognized 
equivalent of a secondary school diploma while 
domiciled in such outlying area, on or after 
January 1, 2017; 
(C) begins the individual’s undergraduate 
course of study within the 3 calendar years (ex-
cluding any period of service on active duty in 
the Armed Forces, or service under the Peace 
Corps Act (22 U.S.C. 2501 et seq.) or subtitle 
C of title I of the National and Community 
Service Act of 1990 (42 U.S.C. 12571 et seq.)) 
of graduation from a secondary school, or ob-
taining the recognized equivalent of a secondary 
school diploma; 
(D) is enrolled or accepted for enrollment, 
on at least a half-time basis, in a baccalaureate 
degree or other program (including a program 
of study abroad approved for credit by the eligi-
ble institution at which such student is en-
rolled) leading to a recognized educational cre-
dential at an eligible institution; 
(E) if enrolled in an eligible institution, is 
maintaining satisfactory progress in the course 
of study the student is pursuing in accordance 
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with section 484(c) of the Higher Education 
Act of 1965 (20 U.S.C. 1091(c)); 
(F) while enrolled in an eligible institution, 
maintains the outlying area where the applicant 
was domiciled pursuant to subparagraph (A) as 
the individual’s principal place of residence for 
purposes of the laws of such outlying area; and 
(G) has not completed the individual’s first 
undergraduate baccalaureate degree course of 
study. 
(4) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘‘institution of higher education’’ has the 
meaning given the term in section 101 of the Higher 
Education Act of 1965 (20 U.S.C. 1001). 
(5) 
GOVERNOR.—The 
term 
‘‘Governor’’ 
means— 
(A) the Governor of the United States Vir-
gin Islands, with respect to the grants author-
ized to be made by such Governor under sub-
section (a); 
(B) the Governor of the Commonwealth of 
the Northern Mariana Islands, with respect to 
the grants authorized to be made by such Gov-
ernor under subsection (a); 
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(C) the Governor of Guam, with respect to 
the grants authorized to be made by such Gov-
ernor under subsection (a); and 
(D) the Governor of American Samoa, with 
respect to the grants authorized to be made by 
such Governor under subsection (a). 
(6) OUTLYING
AREA.—The term ‘‘outlying 
area’’ means any of the four insular areas specified 
under section 8101(36)(A) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 
7801(36)(A)). 
(7) SECONDARY
SCHOOL.—The term ‘‘sec-
ondary school’’ has the meaning given the term in 
section 8101 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7801). 
(8) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Education. 
(9) STATE.—Except as used in paragraph 
(2)(A), the term ‘‘State’’ has the meaning given the 
term in section 103 of the Higher Education Act of 
1965 (20 U.S.C. 1003). 
(m) EFFECTIVE DATE.—This section shall take ef-
fect with respect to payments for periods of instruction 
that begin on or after January 1, 2021. 
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(n) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$40,000,000 for each of the fiscal years 2022 through 
2027, and such sums as may be necessary for each of the 
succeeding fiscal years. Such funds shall remain available 
until expended. 
Æ 
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