H. R. 3863—2
(B) waive the allocation reduction for award year 2006–
2007 for an institution returning more than 10 percent 
of its allocation under any of those sections. 
(2) ELIGIBLE INSTITUTIONS FOR REALLOCATION.—An institu-
tion of higher education may receive a reallocation of excess 
allocations under this subsection if the institution—
(A) participates in the program for which excess alloca-
tions are being reallocated; and 
(B)(i) is located in an area affected by a Gulf hurricane 
disaster; or 
(ii) has accepted for enrollment any affected students 
in academic year 2005–2006. 
(3) BASIS OF REALLOCATION.—The Secretary shall deter-
mine the manner in which excess allocations shall be reallo-
cated to institutions under paragraph (1), and shall give addi-
tional consideration to the needs of institutions located in an 
area affected by a Gulf hurricane disaster. 
(4) ADDITIONAL WAIVER AUTHORITY.—Notwithstanding any 
other provision of law, in order to carry out this subsection, 
the Secretary may waive or modify any statutory or regulatory 
provision relating to the reallocation of excess allocations under 
subpart 3 of part A, part C, or part E of title IV of the 
Act in order to ensure that assistance is received by affected 
institutions for affected students. 
(c) AVAILABILITY OF FUNDS DATE EXTENSION.—Notwithstanding 
any other provision of law—
(1) any funds available to the Secretary under sections 
413A, 441, and 461 of the Act (20 U.S.C. 1070b; 42 U.S.C. 
2751; 20 U.S.C. 1087aa) for which the period of availability 
would otherwise expire on September 30, 2005, shall be avail-
able for obligation by the Secretary until September 30, 2006 
for the purposes of the programs authorized pursuant to sub-
part 3 of part A, part C, and part E of title IV of the Act, 
respectively; and 
(2) the Secretary may recall any funds allocated to an 
institution of higher education for award year 2004–2005 under 
section 413D, 442, or 462 of the Act that, if not returned 
to the Secretary as excess allocations pursuant to any of those 
sections, would otherwise lapse on September 30, 2005, and 
reallocate those funds in accordance with subsection (b)(1). 
SEC. 3. EMERGENCY DESIGNATION. 
Section 2 of this Act is designated as an emergency requirement 
pursuant to section 402 of H. Con. Res. 95 (109th Congress). 
SEC. 4. TERMINATION OF AUTHORITY. 
The provisions of this Act shall cease to be effective one year 
after the date of the enactment of this Act. 
SEC. 5. DEFINITIONS. 
In this Act: 
(1) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 
of Education. 
(2) AFFECTED
STUDENT.—The term ‘‘affected student’’ 
means an individual who has applied for or received student 
financial assistance under title IV of the Act, and who—
H. R. 3863—3
(A) was enrolled or accepted for enrollment, as of 
August 29, 2005, at an institution of higher education 
in an area affected by a Gulf hurricane disaster; 
(B) was a dependent student enrolled or accepted for 
enrollment at an institution of higher education that is 
not in an area affected by a Gulf hurricane disaster, but 
whose parents resided or were employed, as of August 
29, 2005, in an area affected by a Gulf hurricane disaster; 
or 
(C) suffered direct economic hardship as a direct result 
of a Gulf hurricane disaster, as determined by the Secretary 
using consistent and objective criteria. 
(3) GULF HURRICANE DISASTER.—The term ‘‘Gulf hurricane 
disaster’’ means a major disaster that the President declared 
to exist, in accordance with section 401 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170), 
and that was caused by Hurricane Katrina or Hurricane Rita. 
(4) AREA AFFECTED BY A GULF HURRICANE DISASTER.—The 
term ‘‘area affected by a Gulf hurricane disaster’’ means a 
county or parish, in an affected State, that has been designated 
by the Federal Emergency Management Agency for disaster 
assistance for individuals and households as a result of Hurri-
cane Katrina or Hurricane Rita. 
(5) AFFECTED STATE.—The term ‘‘affected State’’ means the 
State of Alabama, Louisiana, Mississippi, or Texas. 
(6) INSTITUTION OF HIGHER EDUCATION.—The term ‘‘institu-
tion of higher education’’ has the meaning given that term 
in section 102 of the Higher Education Act of 1965 (20 U.S.C. 
1002).
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.