Education Amendments of 1972
PL 92-318 (S.659), enacted 06/23/1972

86 
STAT.] 
PUBLIC LAW 92-318-JUNE 23, 1972 
235 
SEC. 3. (a) The Act entitled ''An Act to establisli the Xationnl 
Bureau of Standards'", approved March 3. 1901 (31 Stat. 1449), as 
amended, is further amended by adding the following section: 
"SEC. 18. Appropriations to carry out the provisions of this Ad 
luay remain available for obligation and exp»enditure for such period 
or periods as may be specified in the Acts making such appropriations." 
(b) Such Act is further amended by striking the pei'iod at the 
end of paragraph (19) of section 2, by inserting a comma m lien 
thereof and by adding the following: "and including the use of 
National Bureau of Standards scientific or technical personnel foi-
part-time or intermittent teaching and training acti^'ities at educa-
tional institutions of liigher If'arning as part of and incidental to their 
official duties and withont additional compensation other than that 
provided by law."* 
(c) Such Act is further amended by revising the hrst sentence of 
section 3 to read as follows: ''The Bureau is authorized to exercise its 
functions for the Government of the United States and foi- interna-
ti(mal organizations of which the Ignited States is a member; for 
governments of friendly countries; for any State or municipal govern-
ment within the United States; or for any scientific society, educatiotial 
institution, firm, corporation, or individual within the ITnited States 
or friendly countries engaged in manufacturing or other pursuits 
requiring the use of standards or standard measuring instruments: 
Provided., That the exercise of these functions for international orga-
nizations, governments of friendly countries and scientific societies, 
educational institutions, firms, corporations, or individuals therein 
shall be in coordination with other agencies of the Ignited States 
(xovernment. in ])articnlar the Department of State in i-espect to 
foreign entities.'" 
(d) Such Act is further amended by deleting in section 14 the fignre 
••$4(>,0()0"" and snbstitnting in lien tlieieof tlie fignre "$75,000"". 
(e) Such Act is further amended by revising sexjtion 15(1)) to i-ead 
as follows: 
of 
3. equipment, and 
"(b) the care, maintenance, protection, repair, and alteration 
Bureau buildings and other plant facilities, eq 
property." 
(f) That portion of the Act of April 29, 1926 (44 Stat. 35«: 40 
IJ.S.C. 14a) which relates to the National Bureau of Standards is 
hereby repealed. 
Approved June 22, 1972. 
82 Stat. 35. 
15 u s e 271 et 
seg. 
Teaching au-
thority. 
64 Stat. 371. 
15 u s e 272. 
International 
organizations, 
service. 
15 use 273. 
72 Stat. 1711. 
15 use 278d. 
15 use 278e. 
Repeal. 
Public Law 92-318 
AN ACT 
To amend the Higher Education Act of 1965, the Vocational Education Act of 
1963, the General Education Provisions Act (creating a National Foundation 
for Postsecondary Education and a National Institute of Education), the 
p:iementary and Secondary Education Act of 1965, Public Law 874, Eighty-first 
Congress, and related Acts, and for other i>uri>oses. 
June 23, 1972 
[S. 659] 
Be it enacted by the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That this Act may be A
m
^
^
d
m 
cited as the "Education Amendments of 1972". 
ation 
ents of 
1972. 
236 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
GENERAL 
PROVISIONS 
SEC. 2. (a) As used in this Act— 
"Secretary," 
(1) the temi "Secretary" means the Secretary of Health, Edu-
cation, and Welfare; and 
"Commissioner." 
(2) the term "Commissioner" means the Commissioner of 
Education ; 
iniless the context requires another meaning. 
(b) Unless otherwise specified, the redesignation of a section, subsec-
tion, or other'designation by any amendment in this Act shall include 
the redesignation of any reference to such section, subsection, or other 
designation in any Act or regulation, however styled. 
Effective 
(c)(1) Unlcss othcrwisc specified, each provision of this Act and 
**°***' 
each amendment made by this Act shall be effective after June 30,1972, 
and with respect to appropriations for the fiscal year ending June 30, 
1973, and succeeding fiscal years. 
(2) Unless otherwise specified, in any case where an amendment 
made by this Act is to become effective after a date set herein, it shall 
be effective with the beginning of the day which immediately follows 
the date after which such amendment is effective. 
(3) In any case where the effective date for an amendment made by 
this Act is expressly stated to be effective after June 30, 1971, such 
amendment shall be deemed to have been enacted on July 1,1971. 
TITLE I—HIGHER EDUCATION 
PART A—COMMUNITY SERVICE AND CONTINUING EDUCATION 
, J 
PROGRAMS 
» ,,.- ^ 
EXTENSION OF AUTHORIZATION OF APPROPRIATIONS 
82lta!ri03s!^' 
S^^- 1^1- (*) .Section 101 of the Higher Education Act of 1965 is 
20 use 1001. 
amended by striking out all that follows "authorized to be appro-
priated" and inserting in lieu thereof the following: "$10,000,000 for 
the fiscal year ending June 30,1972, $30,000,000 for the fiscal year end-
ing June 30,1973, $40,000,000 for the fiscal year ending June 30,1974, 
and $50,000,000 for the fiscal year ending June 30, 1975.". 
Effective date. 
(jj^ The amendment made by subsection (a) shall be effective after 
June 30,1971. 
SPECIAL PROGRAMS AND PROJECTS RELATING TO NATIONAL AND REGIONAL 
PROBLEMS 
SEC. 102. (a)(1) Sections 106, 107, 108, 109, 110, and 111 of the 
101? "^^ ^°°^" 
Higher Education Act of 1965, and all references thereto, are redesig-
nated as sections 107, 108, 109, 110, 111, and 112, respectively. Title I 
20 use 1005. 
Qf gy(.]^ ^f,^ jg amended by inserting after section 105 the following 
new section: 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
237 
"SPECIAL PROGRAMS AND PROJECTS RELATING TO NATIONAL AND REGIONAL 
PROBLEMS 
"SEC. 106. (a) The Commissioner is authorized to reserve from the 
sums appropriated pursuant to section 101 for any fiscal year an amount 
not in excess of 10 per centum of the sums so appropriated for that 
fiscal year for grants pursuant to subsection (b). 
"(b) (1) From the sums reserved under subsection (a-), the Commis-
sioner is authorized to make grants to, and contracts with, institutions 
of higher education (and combinations thereof) to assist them in carry-
ing out special programs and projects, consistent with the purposes of 
this title, which are designed to seek solutions to national and regional 
problems relating to technological and social changes and environ-
mental pollution. 
"(2) No grant or contract under this section shall exceed 90 per 
centum of the cost of the program or project for which application is 
made.". 
(2) Section 103(a) of such title I is amended by striking out that 
part of the language which precedes ", the Commissioner" and by 
inserting in lieu thereof "From the sums appropriated pursuant to 
section 101 for any fiscal year which are not reserved under section 
106(a)". 
(b) The amendments made by the second sentence of paragraph (1) 
of subsection (a) and by paragraph (2) of such subsection shall be 
effective after June 30, 1972, and then— 
(1) only with respect to appropriations for title I of the Higher 
Education Act of 1965 for fiscal years beginning after June 30, 
1972; and 
(2) only to the extent that the allotment to any State under 
section 103(a) of such title is not less for any fiscal year than 
the allotment to that State under such section 103(a) for the 
fiscal year ending June 30, 1972. 
Ante, p. 236. 
Limitation. 
79 Stat. 1219. 
20 u s e 1003. 
Effective date 
provisions. 
20 u s e 1001. 
EVALUATION OF ACTIVITIES 
SEC. 103. (a) During the period beginning with the date of enact- vifo^y°coi,fc1i, 
ment of this Act and ending July 1, 1974, the National Advisory authority. 
Council on Extension and Continuing Education, hereafter in this 
section referred to as the National Advisory Council, shall conduct 
a review of the programs and projects carried out with assistance 
under title I of the Higher Education Act of 1965 prior to July 1,1973. 
Such review shall include an evaluation of specific programs and 
projects with a view toward ascertaining which of them show, or have 
, ,.hato'; • 
shown, (1) the greatest promise in achieving the purposes of such title, 
" «;ri 
and (2) the greatest return for the resources devoted to them. Such 
review shall be carried out by direct evaluations by the National 
Advisory Council, by the use of other agencies, institutions, and 
groups, and by the use of independent appraisal units. 
(b) Not later than March 31,1973, and March 31,1975, the National 
Advisory Council shall submit to the Committee on Labor and Public mutVes'. 
Welfare of the Senate and the Committee on Education and Labor 
of the House of Representatives a report on the review conducted 
IDursuant to subsection (a). Such report shall include (1) an evalua-
tion of the program authorized by title I of the Higher Education 
Act of 1965 and of specific programs and projects assisted through 
l^ayments under such title, (2) a description and an analysis of pro-
grams and projects which are determined to be most successful, and 
(3) recommendations with respect to the means by which the most 
successful programs and projects can be expanded and replicated. 
Report to con-
gressional com-
238 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Post, p. 326. 
(c) Sums appropriated pursuant to section 401 (c) of the General 
Education Provisions Act for the purposes of section 402 of such Act 
shall be available to carry out the purposes of this section. 
PART B—COLLEGE LIBRARY PROGRAMS 
79 Stat. 1224; 
82 Stat. 1036. 
20 u s e 1021. 
20 u s e 1031. 
79 Stat. 1224. 
20 u s e 1021. 
Infra. 
Post, p. 239. 
Appropriations. 
"Library re-
sources." 
"Librarian-
ship." 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 111. (a) (1) Section 201 of the Higher Education Act of 1965 is 
amended by striking out "and" after "1970," and inserting in lieu 
thereof "and $18,000,000 for the fiscal year ending June 30, 1972,". 
(2) Section 221 of such Act is amended by striking out "and" after 
"1970," and inserting in lieu thereof "and $12,000,000 for the fiscal 
year ending June 30,1972,". 
(b) (1) Title I I of the Higher Education Act of 1965 is amended by 
striking out "PART A—COLLEGE LIBRARY RESOURCES" and by striking 
out all of section 201 and inserting in lieu thereof the following: 
a COLLEGE LIBRARY PROGRAMS; TRAINING; RESEARCH 
"SEC. 201. (a) The Commissioner shall carry out a program of finan-
cial assistance— 
"(1) to assist and encourage institutions of higher education 
in the acquisition of library resources, including law library 
resources, in accordance with part A; and 
"(2) to assist with and encourage research and training persons 
in librarianship, including law librarianship, in accordance with 
part B. 
" (b) For the purpose of making grants under parts A and B, there 
are authorized to be appropriated $75,000,000 for the fiscal year ending-
June 30, 1973, $85,000,000 for the fiscal year ending June 30, 1974. 
and $100,000,000 for the fiscal year ending June 30,1975. Of the sums 
appropriated pursuant to the preceding sentence for any fiscal year. 
70 j)er centum shall be used for the purposes of part A and 30 per 
centum shall be used for the purposes of part B, except that the 
amount available for the purposes of part B for any fiscal year shall 
not be less than the amount appropriated for such purposes for the 
fiscal year ending June 30,1972. 
"(c) For the purposes of this title— 
" (1) the term 'library resources' means books, periodicals, docu-
ments, magnetic tapes, phonograph records, audiovisual materials, 
and other related library materials, including necessary binding; 
and 
" (2) the term 'librarianship' means the principles and practices 
of the library and information sciences, including the acquisition, 
organization, storage, retrieval and dissemination of information, 
and reference and research use of library and information 
resources. 
Basic grants. 
20 u s e 1022. 
"PART A—^COLLEGE LIBRARY RESOURCES". 
(2) (A) The first sentence of section 202 of such title I I is amended 
to read as follows: "From the amount available for grants under this 
part pursuant to section 201 for any fiscal year, the Commissioner shall 
make basic grants for the purposes set forth in section 201(a) (1) to 
institutions of higher educa/tion, to combinations of such institutions, 
to new institutions of higher education in the fiscal year preceding 
the fiscal year in which students are to be enrolled (in accordance with 
criteria prescribed by regulation), and other public and private non-
86 
STAT.] 
PUBLIC LAW 92-318-JUNE 23, 1972 
239 
profit library institutions Avhose primary function is to provide library 
and information services to institutions of higher education on a 
formal, cooperative basis.". 
(B) Section 203 of such title I I is amended by striking out that part 
of the first sentence which precedes "supplemental grants" and insert-
ing in lieu thereof the following: "From that part of the sums 
appropriated pursuant to section 201 for the purposes of this part for 
any fiscal year which remains after making basic grants pursuant to 
section 202, and which is not reserved for the purposes of section 204, 
the Commissioner shall make", and by striking out "section 201" where 
it appears after "set forth in" and inserting in lieu thereof "section 
201(a)(1)". 
(C) (i) Section 204(a) (1) of such title I I is amended to read as 
follows: 
"(1) From the sums appropriated pursuant to section 201 for the 
purposes of this part for any fiscal year, the Commissioner is authorized 
to reserve not to exceed 25 per centum thereof for the purposes of this 
section.". 
(ii) Section 204(a) (2) of such title II is amended by striking out 
that part of the first sentence which precedes "may be used to make" 
and inserting in lieu thereof "Sums reserved pursuant to paragraph 
(iii) Section 204(a) (2) of such title II is further amended by strik-
ing out "and" immediately preceding "(C)", and inserting before the 
period at the end of the first sentence the following:", and (D) to other 
public and private nonprofit library institutions which provide library 
and information services to institutions of higher education on a for-
mal, cooperative basis". 
(iv) Section 204(a) of such title II is amended by striking out para-
graph (3). 
(3) (A) Part B of such title I I is amended by striking out sections 
221 and 222 and inserting in lieu thereof the following : 
a 
79 Stat. 1225. 
20 u s e 1023. 
Ante, 
p. 238. 
Special pur-
pose grants. 
79 Stat. 1226. 
2 0 u s e 1024. 
TRAINING AND RESEARCH 
PROGRAMS 
"SEC. 221. From the amount available for grants under this part pur-
suant to section 201 for any fiscal year, the Commissioner shall carry 
out a program of making grants in accordance with sections 222 and 
223. Of such amount, 66% per centum shall be available for the pur-
poses of section 222 and 33% per centum shall be available for the pur-
poses of section 223.". 
(B) Section 223(a) of such Act is amended to read as follows: 
"SEC. 223. (a) The Commissioner is authorized to make grants to 
institutions of higher education and library organizations or agencies 
to assist them in training persons in librarianship. Such grants may 
be used by such institutions, library organizations or agencies (1) to 
assist in covering the cost of courses of training or study (including 
short term or regular session institutes) for such persons, (2) for 
establishing and maintaining fellowships or traineeships with stipends 
(including allowances for traveling, subsistence, and other expenses) 
for fellows and others undergoing training and their dependents, not 
in excess of such maximum amounts as may be prescribed by the Com-
missioner, and (3) for establishing, developing, or expanding programs 
of library and information science. Not less than 50 per centum of the 
grants made under this subsection shall be for the purpose of establish-
ing and maintaining fellowships or traineeships under clause (2).". 
(C) Section 223 (b) of such Act is amended by inserting after "insti-
tution of higher education" the following: "and library organizations 
or agencies". 
20 u s e 1031, 
1032. 
20 u s e 1033. 
240 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
79 Stat. 1228. 
20 u s e 591 
note. 
Ante, p. 239. 
20 u s e 1034. 
Effective date. 
(D) Such part B is further amended by striking out section 225; 
and sections 223 and 224 of such part, and all references thereto (except 
those references thereto in section 221 of such part, as amended by 
subparagraph (A)), are redesignated as sections 222 and 223, respec-
tively. 
(b) The amendments made by subsection (a) shall be effective after 
June 30, 1972, and only with respect to appropriations for the fiscal 
year ending June 30, 1973, and succeeding fiscal years. 
79 Stat. 1224. 
20 u s e 1022. 
Ante,p. 
239. 
Effective date. 
WAIVER OF MAINTENANCE OF EFFORT REQUIREMENT 
SEC. 112. (a) Section 202 of title I I of the Higher Education Act of 
1965 is amended by redesignating clauses (c) and (d), and all refer-
ences thereto, as clauses (2) and (3), respectively, and by striking out 
clauses (a) and (b) and inserting in lieu thereof the following: 
"(1) provides satisfactory assurance that the applicant will 
expend during the fiscal year for which the basic grant is sought, 
from funds other than funds received under this part— 
"(A) for all library purposes (exclusive of construction), 
an amount not less than the average annual amount it 
expended for such purposes during the two fiscal years pre-
ceding the fiscal year for which assistance is sought under this 
part, and 
"(B) for library resources, an amount not less than the 
average amount it expended for such resources during the two 
fiscal years preceding the fiscal year for which assistance is 
sought under this part, 
except that, if the Commissioner determines, in accordance with 
regulations, that there are special and unusual circumstances 
which prevent the applicant from making the assurances required 
by this clause (1), he may waive that requirement for one or botli 
of such assurances;". 
(b) (1) The second sentence of such section 202 is amended by strik-
ing out "not exceed" and inserting in lieu thereof the following: ", for 
any fiscal year, be equal to the amount expended by the applicant for 
library resources during that year from funds other than funds 
received under this part, except that no basic grant shall exceed". 
(2) Clause (1) of section 203(a) of such title I I is amended by 
striking out that part thereof which follows "section 202" and inserting 
in lieu thereof a semicolon. 
(c) The amendments made by this section shall be effective after, 
and only with respect to appropriations for fiscal years beginning 
after, June 30,1971. 
20 u s e 1023. 
Effective date. 
INCREASE I N MAXIMUM AMOUNT OF SUPPLEMENTAL GRANTS 
SEC. 113. (a) Section 203(a) of the Higher Education Act of 1965 is 
amended by striking out "$10" and inserting in lieu thereof "$20". 
(b) The amendment made by subsection (a) shall be effective after, 
and only with respect to appropriations for fiscal years beginning 
after, June 30,1972. 
79 Stat. 1228; 
82 Stat. 103 7. 
20 u s e 1041. 
Effective date. 
AUTHORIZATION OF APPROPRIATIONS FOR COLLEGE AND RESEARCH 
LIBRARY RESOURCES 
SEC 114. (a) Section 231 of the Higher Education Act of 1965 is 
amended by striking out "and the succeeding fiscal year" and inserting 
in lieu thereof "and $9,000,000 for the fiscal year ending June 30,1972, 
$12,000,000 for the fiscal year ending June 30,1973, $15,000,000 for the 
fiscal year ending June 30,1974, and $9,000,000 for the fiscal year end-
ing June 30,1975". 
(b) The amendments made by subsection (a) shall be effective after 
June 30,1971. 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
EVALUATION AND REPORT 
241 
79 Stat. 1228. 
20 u s e 1041. 
Report to con-
gressional com-
mittees. 
SEC. 115. (a) Part C of title I I of the Higher Education Act of 
1965 is amended by adding at the end thereof the following new sec-
tion : 
"EVALUATION AND REPORT 
"SEC. 232. No later than March 31 of each calendar year the 
Librarian of the Congress shall transmit to the respective committees of 
the Congress having legislative jurisdiction over this part and to the 
respective Committees on Appropriations of the Congress a report 
evaluating the results and effectiveness of acquisition and cataloging 
work done under this part, based to the maximum extent practicable 
on objective measurements, including costs, together with recommen-
dations as to proposed legislative action.". 
(b) The amendment made by subsection (a) shall be effective after 
June 30,1972. 
PART C—DEVELOPING INSTITUTIONS; EMERGENCY ASSISTANCE TO 
> 
INSTITUTIONS OF HIGHER EDUCATION 
R E V I S I O N 
O F 
T I T L E III (STRENGTHENING DEVELOPING 
INSTITUTIONS) 
SEC. 121. (a) Title I I I of the Higher Education Act of 1965 is 
20 use losi. 
amended to read as follows: 
Effective date. 
^TITLE III—STKENGTHENING DEVELOPING 
INSTITUTIONS 
"AUTHORIZATION 
"SEC. 301. (a) The Commissioner shall cany out a program of 
special assistance to strengthen the academic quality of developing 
institutions which have the desire and potential to make a substantial 
contribution to the higher education resources of the Nation but which 
are struggling for survival and are isolated from the main currents 
of academic life. 
"(b)(1) For the purpose of carrying out this title, there are author-
ized to be appropriated $120,000,000 for the fiscal year ending June 
30, 1973, and for each of the succeeding fiscal years ending prior to 
July 1,1975. 
"(2) Of the sums appropriated pursuant to this subsection for any 
fiscal year, 76 per centum shall be available only for carrying out the 
provisions of this title with respect to developing institutions which 
plan to award one or more bachelor's degrees during such year. 
"(3) The remainder of the sums so appropriated shall be available 
only for carrying out the provisions of this title with respect to devel-
oping institutions which do not plan to award such a degree during 
such year. 
" E L I G I B I L I T Y 
F O R 
S P E C I A L 
ASSISTANCE 
"SEC. 302. (a) (1) For the purposes of this title, the term 'developing 
institution' means an institution of higher education in any State 
which— 
"(A) is legally authorized to provide, and provides within the 
State, an educational program for which it awards a bachelor's 
degree, or is a junior or communitj^ college; 
"(B) is accredited by a nationally recognized accrediting 
agency or association determined by the Commissioner to be 
Special assist-
Approprlation. 
'•Developing 
institution." 
242 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Waiver. 
Application. 
"Junior or com-
munity college." 
reliable authority as to the quality of training offered or is, accord-
ing to such an agency or association, making reasonable progress 
toward accreditation; 
"(C) except as is proAdded in paragraph (2), has met the 
requirement of clauses (A) and (B) during the five academic 
years preceding the academic year for which it seeks assistance 
under this title; and 
"(D) meets such other requirements as the Commissioner shall 
prescribe by regulation, which requirements shall include at least 
a determination that the institution— 
"(i) is making a reasonable effort to improve the quality 
of its teaching and administrative staffs and of its student 
services; and 
"(ii) is, for financial or other reasons, struggling for sur-
vival and isolated from the main currents of academic life. 
"(2) The Commissioner is authorized to waive the requirements 
set forth in clause (C) of paragraph (1) in the case of applications 
for grants under this title by institutions located on or near an 
Indian reservation or a substantial population of Indians if the Com-
missioner determines such action will increase higher education for 
Indians, except that such grants may not involve an expenditure 
of funds in excess of 1.4 per centum of the sums appropriated pur-
suant to this title for any fiscal year. 
"(b) Any institution desiring special assistance under the provisions 
of this title shall submit an application for eligibility to the Commis-
sioner at such time, in such form, and containing such information, as 
may be necessary to enable the Commissioner to evaluate the need of the 
applicant for such assistance and to determine its eligibility to be a 
developing institution for the purposes of this title. The Commis-
sioner shall approve any application for eligibility under this subsec-
tion which indicates that the applicant is a developing institution 
meeting the requirements set forth in subsection (a). 
"(c) For the purposes of clause (A) of paragraph (1) of subsection 
(a) of this section, the term 'junior or community college' means an 
institution of higher education— 
" (1) which does not provide an educational program for which 
it awards a bachelor's degree (or an equivalent degree) ; 
"(2) which admits as regular students only persons having a 
certificate of graduation from a school providing secondary educa-
tion (or the recognized equivalent of such a certificate); and 
"(3) which does— 
"(A) provide an educational program of not less than two 
years which is acceptable for full credit toward such a degree, 
or 
"(B) offer a two-year program in engineering, mathemat-
ics, or the physical or biological sciences, which program is 
designed to prepare a student to work as a technician and at 
the semiprofessional level in engineering, scientific, or other 
technological fields, which fields require the understanding 
and application of basic engineering, scientific, or mathemati-
cal principles of knowledge. 
(( 
Establishment. 
ADVISORY COUNCIL ON DEVELOPING INSTITUTIONS 
"SEC. 303. (a) There is hereby established an Advisory Council 
on Developing Institutions (in this title referred to as the 'Council') 
consisting of nine members appointed by the Commissioner with the 
approval of the Secretary. 
86 
STAT.] 
PUBLIC LAW 92-318-JUNE 23, 1972 
243 
"(b) The Council shall, with respect to the program authorized by 
this title, carry out the duties and functions specified by part C of tlie 
General Education Provisions Act and, in particular, it shall assist the 
Commissioner—• 
"(1) in identifying developing institutions through which the 
purposes of this title may be achieved; and 
"(2) in establishing the priorities and criteria to be used in 
making grants under section 304(a). 
Post. p. 326. 
'"USES OF FUNDS : COOPERATIVE ARRANGEMENTS, NATIONAL TEACHING 
FELLOWSHIPS, AND PROFESSORS EMERIli: S 
"SEC. 304. (a) The Commissioner is authorized to make grants and 
awards, in accordance with the provisions of this title, for the purpose 
of strengthening developing institutions. Such grants and aAvards shall 
be used solely for the purposes set forth in subsection (b). 
"(b) Funds appropriated pursuant to section 301(b) shall be 
available for— 
" (1) grants to institutions of higher education to pay part of 
the cost of planning, developing, and carrying out cooperative 
arrangements between developing institutions and other institu-
tions of higher education, and between dcA^eloping institutions and 
other organizations, agencies, and business entities, which show 
promise as effective measures for strengthening the academic pro-
gram and the administrative caj)acity of developing institutions, 
including such projects and activities as— 
"(A) exchange of faculty or students, including arrange-
ments for bringing visiting scholars to developing institutions, 
"(B) faculty and administration improvement programs, 
utilizing training, education (including fellowships leading 
to advanced degrees), internships, research participation, and 
other means, 
"(C) introduction of new curricula and curricular mate-
rials. 
"(D) development and operation of cooperative education 
programs involving alternate periods of academic study and 
business or public employment, and 
"(E) joint use of facilities such as libraries or laboratories, 
including necessary books, materials, and equipment; 
" (2) National Teaching Fellowships to be awarded by the Com-
missioner to highly qualified graduate students and junior faculty 
members of institutions of higher education for teaching at 
developing institutions; and 
"(3) Professors Emeritus Grants to be awarded by the Com-
missioner to professors retired from active service at institutions 
of higher education to encourage them to teach or to conduct 
lesearch at developing institutions. 
"(c) (1) An application for assistance for the purposes described in 
subsection (b)(1) shall be approved only if it— 
"(A) sets forth a program for carrying out one or more of the 
activities described in subsection (b)(1), and sets forth such 
policies and procedures for the administration of the program as 
will insure the proper and efficient operation of the jirogram and 
the accomplishment of the purposes of this title; 
"(B) sets forth such policies and procedures as will insure that 
Federal funds made available under this section for any fiscal year 
will be so used as to supplement and, to the extent practical, 
increase the level of funds that would, in the absence of such Fed-
eral funds be made available for the purposes of the activities 
described in subsection (b)(1), and m no case supplant such 
funds; 
Grants and 
awards. 
Ante, p. 241. 
National Teach-
ing Fellowships. 
Professors Emer-
itus Grants. 
Application ap-
proval conditions. 
244 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Stipend and de-
pendent allowance. 
Limitation. 
"(C) sets forth policies and procedures for the evaluation of 
the effectiveness of the project or activity in accomplishing its 
purpose; 
"(D) provides for such fiscal control and fund accounting pro-
cedures as may be necessary to insure proper disbursement of 
and accounting for funds made available under this title to the 
applicant; and 
"(E) provides for making such reports, in such form and con-
taining such information, as the Commissioner may require to 
carry out his functions under this title, and for keeping such rec-
ords and affording such access thereto, as he may find necessary 
to assure the correctness and verification of such i-eports. 
rhe Commissioner shall, after consultation with the Council, establisli 
by regulation criteria as to eligible expenditures for which funds fi-om 
grants for cooperative arrangements under clause (1) of subsection (b) 
may be used, Avhich criteria shall be so designed as to prevent the 
use of such funds for purposes not necessary to the achievement of the 
purposes for which the grant is made. 
"(2) (A) Applications for awards described in clauses (2) and (3) 
of subsection (b) may be approved only upon a finding by the Com-
missioner that the program of teaching or research set forth therein 
is reasonable in the light of the qualifications of the applicant and of 
the educational needs of the institution at which the applicant intends 
to teach. 
"(B) No application for a National Teaching Fellowship or a Pro-
fessors Emeritus Grant shall be approved for an award of such a 
fellow^ship or grant for a period exceeding two academic years, except 
that the award of a Professors Emeritus Grant may be for such period, 
in addition to such two-year period of award, as the Commissioner, 
upon the advice of the Council, may determine in accordance with 
policies of the Commissioner set forth in regulations. 
"(C) Each person awarded a National Teaching Fellowship or a 
Professors Emeritus Grant shall receive a stipend for each academic 
year of teaching (or, in the case of a recipient of a Professoi-s Emeritus 
Grant, research) as determined by the Commissioner upon the advice 
of the Council, plus an additional allowance for ea,ch such year for each 
dependent of such person. In the case of National Teaching Fellow-
ships, such allowance may not exceed $7,500, plus $400 for each 
dependent. 
Waivers, eligi-
bility. 
Ante, 
p. 238; 
Post, 
pp. 247, 288. 
Non-Federal 
share requirement. 
"ASSISTANCE TO DEVPXOPING INSTrrUTIONS UNDER OTHER PRtKJRAMS 
"SEC. 305. (a) Each institution which the Commissioner determines 
meets the criteria set forth in section 302(a) shall be eligible for 
waivers in accordance with subsection (b). 
"(b)(1) Subject to, and in accordance with, regulations promul-
gated for the purpose of this section, in the case of any application by 
A developing institution for assistance under any program specified in 
paragraph (2), the Commissioner is authorized, if such application 
is otherwise approvable, to waive any requirement for a non-Federal 
share of the cost of the program or project, or, to the extent not incon-
sistent with other law, to give, or require to be given, priority consider-
ation of the application in relation to applications from institutions 
which are not developing institutions. 
"(2) The provisions of this section shall apply to anv program 
authorized by title II, IV, VI, or VII of this Act. 
"(c) The Commissioner shall not waive, under subsection (b), the 
non-Federal share requirement for any program for applications 
which, if approved, would require the expenditure of more than 1
(
> 
per centum of the appropriations for that program for any fiscal year. 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
245 
"LIMITATION 
"SEC. 306. None of the funds appropriated pursuant to section 301 
(b) (1) shall be used for a school or department of divinity or for any 
religious worship or sectarian activity.". 
(b) The amendment made by subsection (a) shall be effective after, 
Effective date. 
and only with respect to appropriations made for fiscal yeai-s begin-
ning after, June 30,1972. 
EMERGENCY ASSISTANCE FOR INSTITUTIONS OF HIGHER 
EDUCATION 
SEC. 122. (a)(1) The Congress hereby finds and declares that—• 
(A) the Nation's institutions of higher education constitute a 
national resource which significantly contributes to the security, 
general welfare, and economy of the United States; 
(B) considerable evidence has been advanced which indicates 
that many institutions of higher education are in financial distress 
resulting from many causes, including, among others, efforts on 
the part of such institutions to increase enrollments, to improve 
the quality of education and training, and to enlarge educational 
opportunities; and 
(C) various proposals have been presented to the Congress, in 
response to such condition of financial distress, for providing 
financial assistance to the Nation's institutions of higher education 
but, except for that necessary to justify payments provided for 
i-eimbursement for part of the cost of instruction as provided in 
title X of this Act, insufficient information is available on the 
Post, p. 375. 
basis of which the Congress can determine, with any degree of 
certainty, the nature and causes of such financial distress or the 
most appropriate means with which present and future condi-
tions of financial distress may be dealt. 
(2) It is the purpose of this section to provide to institutions of 
higher education, which are determined in accordance with this sec-
tion to be in serious financial distress, interim emergency assistance 
to enable them to determine the nature and causes of such distress 
and the means by which such distress may be alleviated, and to 
improve their capabilities for dealing with financial problems using, to 
the extent appropriate, assistance authorized under the Higher Educa-
tion Act of 1965 and all other sources of financial assistance. 
79 stat. 1219. 
(b)(1) There is authorized to be appropriated for the period 
20 use 1001 
beginning with the date of enactment of this Act, and ending June 30, ""Appropriation. 
1974, $40,000,000 for the purpose of making grants under this section. 
Sums so appropriated shall remain available for obligation and 
expenditure until expended. 
(2) (A) The Commissioner is authorized to make grants to institu- 
Grants, 
tions of higher education which are in serious financial distress, as 
such term is defined in regulations of the Commissioner, in accordance 
with the provisions of this section. 
(B) A grant under this subsection may be made only upon applica- 
Applications, 
tion therefor to the Commissioner. Such applications shall be sub-
mitted at such time, in such form, and containing such information, 
assurances, policies, and procedures as the Commissioner may require 
in order to enable him to carry out his functions under this section. The 
Approval condi-
Commissioner shall not approve any such application unless he finds "ons. 
that— 
(i) in the case of a public institution of higher education, the 
institution has submitted its application for emergency assistance 
under this subsection to the appropriate State agency, as provided 
by the law of the State in which it is located and in accordance 
with regulations of the Commissioner, if any such agency exists 
246 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
with respect to such State, and such State agency has made a 
finding, m accordance with criteria established by the Commis-
sioner, that such institution is in serious financial distress and (I) 
is in need of financial assistance under this section to continue its 
operation, or (II) will have to discontinue or substantially cur-
tail its academic programs to the detriment of the quality of edu-
cation available to its students; 
(ii) in the case of a nonpublic institution of higher education, 
the institution either has complied with the procedure set forth in 
clause (i) for public institutions, or has submitted an application 
directly to the Commissioner and the Commissioner has deter-
mined that the institution meets the condition set forth in either 
clause (i) (I) or (i) (II), and has submitted a copy to the appro-
priate State agency, as determined under the law of the State in 
which it is located and in accordance with regulations of the 
Commissioner, for comment; 
(iii) such institution has developed, adopted, and submitted a 
plan which the Commissioner determines provides reasonable 
assurance that, if the institution receives the grant for which it is 
applying, such institution will be able, during and after the period 
covered by such grant, to continue the educational services, pro-
grams, and activities with respect to which such grant is sought ; 
(iv) such institution is making a major contribution to the over-
all higher educational system of the area of the State in which it is 
located, or of the Nation; and 
(v) -such institution has included in such application such 
policies and procedures for the use of funds received under the 
grant as will insure that such funds will not be used for a school 
or department of divinity or for any religious worship or sectarian 
activity, and as will insure that such funds will be solely used 
for the purposes for which the grant is made. 
(C) An application shall be approved under this subsection only if 
it includes such information, terms, and conditions as the Commis-
sioner finds necessary and reasonable to enable him to carry out his 
functions under this section, and as he determines will be in the finan-
cial interest of the United States, and the applicant agrees— 
(i) to disclose such financial information as the Commissioner 
determines to be necessary to determine the sources or causes of its 
financial distress and other information relating to its use of its 
financial resources; 
(ii) to conduct a comprehensive cost analysis study of its opera-
tion, including income-cost comparisons and cost per credit hour 
of instruction for each department, in accordance with uniform 
standards prescribed by the Commissioner; and 
(iii) to consider, and either implement or give adequate reasons 
in writing for not doing so, any financial or operational reform 
recommended by the Commissioner for the improvement of its 
financial condition. 
(D) The Commissioner shall not approve an application for a grant 
under this section without first obtaining the advice and recommenda-
tions of a panel of specialists who are not regular, full-time employees 
of the Federal Government and who are competent to evaluate the 
applications as to the relative degree of financial distress of the 
applying institutions. 
Definitions. 
(c) As used in this section— 
(1) the term "institution of higher education'" means an edu-
cational institution in any State which (A) admits as regular 
students only persons having a certificate of graduation from a 
school providing secondary education, or the recognized equiva-
lent of such a certificate, (B) is legally authorized within such 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
247 
State to provide a program of education beyond secondary edu-
cation, (C) has been in existence for at least five years prior to 
the date upon which it makes application under this section, (D) 
provides an educational program for which it awards a bachelor's 
degree or provides not less than a two-year program which is 
acceptable for full credit towards such a degree, (E) is a public 
• 
or other nonprofit institution, and (F) is accredited by a nation-
ally recognized accrediting agency or association or, if not so 
accredited, (i) is an institution with respect to w^iich the Com-
missioner has determined that there is satisfactory assurance, con-
sidering the resources available to the institution, the period of 
time, if any, during which it has operated, the effort it is making 
to meet accreditation standards, and the purpose for which this 
determination is being made, that the institution will meet the 
accreditation standards of such an agency or association within 
a reasonable time, or (ii) is an institution w^iose credits are 
accepted, on transfer, by not less than three institutions which 
are so accredited, for credit on the same basis as if transferred 
from an institution which is accredited, and, for the purpose of 
this clause, the Commissioner shall publish a list of nationally 
recognized accrediting agencies or associations which he deter-
mines to be reliable authority as to the quality of training offered; 
(2) the term "State''includes the fifty States, the District of 
Columbia, the Commonwealth of Puerto Rico, Guam, and the 
Virgin Islands; and 
(3) the term "school or department of divinity" means an insti-
tution or a department or a branch of an institution the program 
of instruction of which is designed for the education of students 
(A) to prepare them to become ministers of religion or to enter 
upon some other religious vocation (or to provide continuing 
training for any such vocation), or (B) to prepare them to teach 
theological subjects. 
PART D—STUDENT ASSISTANCE 
REVISION OF PART A OF TITLE IV (EDUCATIONAL OPPORTUNITY GRANTS) 
SEC. 131. (a)(1)(A) The first sentence of section 401(b) of the 
Higher Education Act of 1965 is amended by striking out that part 83^statf*i43^^^' 
Avhich precedes "to enable the Commissioner" and inserting in lieu 
20 use loei. 
thereof: "There are hereby authorized to be appropriated $170,000,000 Appropriation, 
for the fiscal year ending June 30, 1972, and $200,000,000 for each of 
the succeeding fiscal years ending prior to July 1,1975,". 
(B) Section 408 of such Act is amended by striking out "for the 
82 stat. 10is. 
fiscal year ending June 30, 1971" and inserting in lieu thereof "for 
^° "^^ ^^^*' 
each of the succeeding fiscal years ending prior to June 30,1975". 
(2) The amendments made by paragraph (1) shall be effective after 
Effective date. 
June 30, 1971. 
(b) (1) Part A of title IV of such Act is amended to read as follows: 
79 stat, 1232. 
20 use 1061. 
"PART A—GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF 
HIGHER EDUCATION 
"STATEMENT OF PURPOSE; PROGRAM AUTHORIZATION 
"SEC. 401. (a) It is the purpose of this part, to assist in making avail-
able the benefits of postsecondary education to qualified students in 
institutions of higher education by— 
"(1) providing basic educational opportunity grants (herein-
after referred to as 'basic grants') to all eligible students; 
-081 O - 73 - 19 
248 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Basic grant 
formula. 
Reductions, 
schedule. 
Publication in 
Federal Register. 
Limitations. 
"(2) providing supplemental educational opportunity grants 
(hereinafter referred to as 'supplemental grants ) to those students 
of exceptional need who, for lack of such a grant, would be unable 
to obtain the benefits of a postsecondary education; 
"(3) providing for payments to the States to assist them in 
making financial aid available to such students; and 
"(4) providing for special programs and projects designed (A) 
to identify and encourage qualified youths with financial or cul-
tural need with a potential for postsecondary education, (B) to 
prepare students from low-income families for postsecondary edu-
cation, and (C) to provide remedial (including remedial language 
study) and other services to students. 
"(b) The Commissioner shall, in accordance with subparts 1, 2, 3, 
and 4, carry out programs to achieve the purposes of this part. 
"Subpart 1—Basic Educational Opportunity Grants 
" B A S I C E D U C A T I O N A L O P P O R T U N I T Y G R A N T S : AMOUNT 
AND 
DETERMINATIONS; APPLICATIONS 
"SEC. 411. (a) (1) The Commissioner shall, during the period begin-
ning July 1,1972, and ending June 30,1975, pay to each student who has 
been accepted for enrollment in, or is in good standing at, an institu-
tion of higher education (according to the prescribed standards, regula-
tions, and practices of that institution) for each academic year during 
which that student is in attendance at that institution, as an under-
graduate, a basic grant in the amount for which that student is eligible, 
as determined pursuant to paragraph (2). 
"(2)(A)(i) The amount of the basic grant for a student eligible 
under this subpart for any academic year shall be $1,400, less an amount 
equal to the amount determined under paragraph (3) to be the expected 
family contribution with respect to that student for that year. 
"(ii) In any case where a student attends an institution of higher 
education on less than a full-time basis during any academic year, the 
amount of the basic grant to which that student is entitled shall be 
reduced in proportion to the degree to which that student is not so 
attending on a full-time basis, in accordance with a schedule of reduc-
tions established by the Commissioner for the purposes of this division. 
Such schedule of reductions shall be established by regulation and 
published in the Federal Eegister not later than February 1 of each 
year. 
" (B) (i) The amount of a basic grant to which a student is entitled 
under this subpart for any academic year shall not exceed 50 per centum 
of the actual cost of attendance at the institution at which the student 
is in attendance for that year. 
"(ii) No basic grant under this subpart shall exceed the difference 
between the expected family contribution for a student and the actual 
cost of attendance at the institution at which that student is in 
attendance. If with respect to any student, it is determined that the 
amount of a basic grant plus the amount of the expected family con-
tribution for that student exceeds the actual cost of attendance for 
that year, the amount of the basic grant shall be reduced until the 
combination of expected family contribution and the amount of the 
basic grant does not exceed the actual cost of attendance at such 
institution. 
"(iii) No basic grant shall be awarded to a student under this sub-
part if the amount of that grant for that student as determined under 
this paragraph for any academic year is less than $200. Pursuant to 
criteria established by the Commissioner by regulation, the institution 
of higher education at which a student is in attendance may award a 
86 STAT.] 
PUBLIC LAW 92-318-JUNE 23, 1972 
249 
basic grant of less than $200 upon a determination that the amount 
of the basic grant for that student is less than $200 because of the 
requirement of division (i) and that, due to exceptional circumstances, 
this reduced grant should be made in order to enable the student to 
benefit from postsecondary education. 
"(iv) For the purpose of this subparagraph and subsection (b) the 
term 'actual cost of attendance' means, subject to regulations of the 
Commissioner, the actual per-student charges for tuition, fees, room 
and board (or expenses related to reasonable commuting), books, and 
an allowance for such other expenses as the Commissioner determines 
by regulation to be reasonably related to attendance at the institution 
at which the student is in attendance. 
"(3) (A) (i) Not later than February 1 of each year the Commis-
sioner shall publish in the Federal Register a schedule of expected 
family contributions for the succeeding academic year for various 
levels of family income, which, except as is otherwise provided in divi-
sion (ii), together with any amendments thereto, shall become effective 
July 1 of that year. During the thirty-day period following such publi-
cation the Commissioner shall provide interested parties with an 
opportunity to present their views and make recommendations with 
respect to such schedule. 
"(ii) The schedule of expected family contributions required by 
division (i) for each academic year shall be submitted to the President 
of the Senate and the Speaker of the House of Representatives not 
later than February 1 of that year. If either the Senate or the House 
of Representatives adopts, prior to May 1 of such year, a resolution of 
disapproval of such schedule, the Commissioner shall publish a new 
schedule of expected family contributions in the Federal Register not 
later than fifteen days after the adoption of such resolution of dis-
approval. Such new schedule shall take into consideration such recom-
mendations as may be made in connection with such resolution and 
shall become effective, together with any amendments thereto, on 
July 1 of that year. 
" (B) (i) For the purposes of this paragraph and subsection (b), the 
term 'family contribution' with respect to any student means the 
amount which the family of that student may be reasonably expected 
to contribute toward his postsecondary education for the academic 
year for which the determination under subparagraph (A) of para-
graph (2) is made, as determined in accordance with regulations. In 
promulgating such reflations, the Commissioner shall follow the 
basic criteria set forth m division (ii) of this subparagraph. 
"(ii) The basic criteria to be followed in promulgating regulations 
with respect to expected family contribution are as follows: 
"(I) The amount of the effective income of the student or the 
effective family income of the student's family. 
"(II) The number of dependents of the family of the student, 
"(III) The number of dependents of the student's family who 
are in attendance in a program of postsecondary education and for 
whom the family may be reasonably expected to contribute for 
their postsecondary education. 
" (IV) The amount of the assets of the student and those of the 
student's family. 
"(V) Any unusual expenses of the student or his family, such 
as unusual medical expenses, and those which may arise irom a 
catastrophe. 
"(iii) For the purposes of clause (I) of division (ii), the term 
'effective family income' with resj)ect to a student means the annual 
adjusted family income, as determined in accordance with regulations 
prescribed by the Commissioner, received by the parents or guardian 
"Actual cost 
of attendance." 
Schedule, pub-
lication In Federal 
Register. 
Submittal to 
Congress. 
Publication in 
Federal Register. 
"Family contri-
bution." 
Regulations, 
criteria. 
"Effective 
family income." 
250 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
49 Stat. 620. 
42 u s e 1305. 
80 Stat. 12; 
82 Stat. 1331. 
38 u s e 1651, 
1700. 
Regulations. 
"Noncredlt 
remedial course 
of study." 
Payments. 
Insufficient 
funds, percentage 
of entitlement due. 
Excess funds. 
of that student (or the person or persons having an equivalent relation-
ship to such student) minus Federal income tax paid or payable with 
respect to such income. 
"(iv) In determining the expected family contribution with respect 
to any student, any amount paid under the Social Security Act to, or on 
account of, the student which would not be paid if he were not a stu-
dent, and one-half any amount paid the student under chapters 34 
and 35 of title 38, United States Code, shall be considered as effective 
income for such student. 
"(C) The Commissioner shall promulgate special regulations for 
determining the expected family contribution and effective family 
income of a student who is determined (pursuant to regulations of the 
Commissioner) to be independent of his parents or guardians (or the 
person or persons having an equivalent relationship to such student). 
Such special regulations shall be consistent with the basic criteria set 
forth in division (ii) of subparagraph (B). 
" (4) (A) The period during which a student may receive basic grants 
shall be the period required for the completion of the undergraduate 
course of study being pursued by that student at the institution at which 
the student is in attendance, except that such period may not exceed 
four academic years unless— 
" (i) the student is pursuing a course of study leading to a first 
degree in a program of study which is designed by the institution 
offering it to extend over five academic years; or 
"(ii) the student is, or will be, unable to complete a course of 
study within four academic years because of a requirement of the 
institution of such course of study that the student enroll in a 
noncredit remedial course of study; 
in either which case such period may be extended for not more than one 
additional academic year. 
"(B) For the purposes of clause (ii) of subparagraph (A), a 'non-
credit remedial course of study' is a coiirse of study for which no credit 
is given toward an academic degree, and which is designed to increase 
the ability of the student to engage in an undergraduate course of study 
leading to such a degree. 
"(b)(1) The Commissioner shall from time to time set dates by 
which students must file applications for basic grants under this 
subpart. 
"(2) Each student desiring a basic grant for any year must file an 
application therefor containing such information and assurances as 
the Commissioner may deem necessary to enable him to carry out his 
functions and responsibilities under this subpart. 
"(3) (A) Payments under this section shall be made in accordance 
with regulations promulgated by the Commissioner for such purpose, 
in such manner as will best accomplish the purposes of this section. 
" (B) (i) If, during any period of any fiscal year, the funds available 
for payments under this subpart are insufficient to satisfy fully all 
entitlements under this subpart, the amount paid with respect to each 
such entitlement shall be— 
" (I) in the case of any entitlement which exceeds $1,000,75 per 
centum thereof; 
" (II) in the case of any entitlement which exceeds $800 but does 
not exceed $1,000,70 per centum thereof; 
" ( I I I ) in the case of any entitlement which exceeds $600 but 
does not exceed $800,65 per centum thereof; and 
" (IV) in the case of any entitlement which does not exceed $600, 
50 per centum thereof, 
"(ii) If, during any period of any fiscal year, funds available for 
making payments under this subpart exceed the amount necessary to 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
251 
make the payments prescribed in division (i), such excess shall be 
paid with respect to each entitlement under this subpart in proportion 
to the degree to which that entitlement is unsatisfied, after payments 
are made pursuant to division (i). 
" (iii) In the event that, at the time when payments are to be made 
pursuant to this subparagraph (B), funds available therefor are 
insufficient to pay the amounts set forth in division (i), the Comrnis- 
: , 
sioner shall pay with respect to each entitlement an amount which 
bears the same ratio to the appropriate amount set forth in division 
(i) as the total amount of funds so available at such time for such 
payments bears to the amount necessary to pay the amounts indicated 
in division (i) in full. 
"(iv) No method of computing or manner of distribution of pay-
ments under this subpart shall be used which is not consistent with 
this subparagraph. 
" (v) In no case shall a payment under this subparagraph be made if 
the amount of such payment after application of the provisions of this 
subparagraph is less than $50. 
"(C) (i) During any fiscal year in which the provisions of sub- 
Limitations. 
paragraph (B) apply, a basic grant to any student shall not exceed 
.50 per centum of the difference between the expected family contribu-
tion for that student and the actual cost of attendance at the institution 
in which the student is enrolled, unless sums available for making 
payments under this subsection for any fiscal year equal more than 75 
[)er centum of the total amount to which all students are entitled 
under this subpart for that fiscal year, in which case no basic grant 
shall exceed 60 per centum of such difference. 
"(ii) The limitation set forth in division (i) shall, when applicable, 
be in lieu of the limitation set forth in subparagraph (B) (i) of sub-
section (a)(2). 
"'(4) No payments may be made on the basis of entitlements estab-
lished under this subpart during any fiscal year ending prior to 
July 1,1975, in which— 
-
"(A) the appropriation for making grants under subpart 2 of 
this part does not at least equal $130,093,000; and 
. , 
" (B) the appropriation for work-study payments under section 
441 of this title does not at least equal $237,400,000; and 
"(C) the appropriation for capital contributions to student 
loan funds under part p] of this title does not at Irast equal 
^°®'' P- 2^3-
$286,000,000. 
"Subpart 2—Suppleniental Educational Opportunity Grants 
"PURPOSE; APPROPRIATIONS AUTHORIZED 
/ 
"SEC. 413A. (a) It is the purpose of this subpart to provide, through 
institutions of higher education, supplemental grants to assist in mak-
ing available the benefits of postsecondar-y education to qualified stu-
dents who, for lack of financial means, would be unable to obtain such 
benefits without such a grant. 
"(b)(1) For the purpose of enabling the Commissioner to make 
payments to institutions of higher education which have made agree-
ments with the Commissioner in accordance with section 413C(b), 
for use by such institutions for payments to undergraduate students 
for the initial academic year of a supplemental grant awarded to them 
under this subpart, there are authorized to be appropriated $200,000,000 
for the fiscal year ending June 30,1973, and for each of the succeeding 
fiscal years ending prior to July 1, 1975. Funds appropriated pursuant 
to this paragraph shall be appropriated separate from any funds 
appropriated pursuant to paragraph (2). 
252 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Initial year pay-
ment provisions. 
Limitation. 
"Student fi-
nancial aid." 
Ante, p. 248; 
Post, pp. 271, 
273. 
Basic criteria 
and schedules. 
"(2) In addition to the sums authorized to be appropriated by 
paragraph (1), there are authorized to be appropriated such sums 
as may be necessary for payment to institutions of higher education 
for use by such institutions for making continuing supplemental grants 
under this subpart, except that no appropriation may be made pur-
suant to this paragraph for any fiscal year beginning more than three 
years after the last fiscal year for which an appropriation is authorized 
under paragraph (1). Funds appropriated pursuant to this paragraph 
shall be appropriated separate from any funds appropriated pursuant 
to paragraph (1). 
"(3) Sums appropriated pursuant to this subsection for any fiscal 
year shall be available for payments to institutions until the end of the 
fiscal year succeeding the fiscal year for which they were appropriated. 
"(4) For the purposes of this subsection, payment for the first year 
of a supplemental grant shall not be considered as an initial year 
payment if the grant was awarded for the continuing education of a 
student who— 
" (A) had been previously awarded a supplemental grant under 
this subpart (whether by another institution or otherwise), and 
"(B) had received payment for any year of that supplemental 
irrant. 
''AMOUNT AND DURATION OF GRANTS 
"SEC. 413B. (a) (1) From the funds received by it for such pur-
pose under this subpart, an institution which aAvards a supplemental 
grant to a student for an academic year under this subpart shall, for 
such year, pay to that student an amount determined pursuant to para-
graph (2). 
"(2) (A) (i) The amount of the payment to any student pursuant to 
paragraph (1) shall be equal to the amount determined by the institu-
tion to be needed by that student to enable him to pursue a course of 
study at the institution, except that such amount shall not exceed—• 
"(I) $1,500, or 
"(II) one-half the sum of the total amount of student financial 
aid provided to such student by such institution, 
whichever is the lesser. 
"(ii) No student shall be paid during all the academic years he is 
pursuing his undergraduate course of study at one or more institutions 
of higher education in excess of $4,000 or in the case of any student to 
whom the provisions of subsection (b) (1) (B) apply, $5,000. 
"(iii) For the purposes of clause (II) of division (i), the term 'stu-
dent financial aid' includes assistance payments to the student under 
subpart 1 of this part and parts C and E of this title, and any assist-
ance provided to a student under any scholarship program established 
by a State or a private institution or organization, as determined in 
accordance with regulations, shall be deemed to be aid provided such 
student by the institution. 
"(B) If the amount determined under division (i) of subparagraph 
(A) with respect to a student for any academic year is less than $200, 
no payment shall be made to that student for that year. 
"(C) Subject to subparagraphs (A) and (B), the Commissioner 
shall prescribe, for the guidance of institutions, basic criteria and 
schedules for the determination of the amount of need to be determined 
under division (i) of subparagraph (A). Such criteria and schedules 
shall take into consideration the objective of limiting assistance under 
this subpart to students of financial need, and such other factors 
related to determining the need of students for financial assistance as 
the Commissioner deems relevant but such criteria or schedules shall 
not disqualify an applicant on account of his earned income if income 
from other sources in the amount of such earned income would not 
disqualify him. 
86 
STAT.] 
PUBLIC LAW 92-318-JUNE 23, 1972 
253 
''(b)(1)(A) A student eligible for a supplemental grant may be 
awarded such a grant under this subpart for each academic year of 
the period required for completion by the recipient of his under-
graduate course of study in the institution of higher education from 
which he received such grant. 
"(B) A student may not receive supplemental grants under this 
subpart for a period of more than four academic years, except that in 
the case of a student— 
"(i) who is pursuing a course of study leading to a hrst degree 
in a program of study which is designed by the institution offering 
it to extend over five academic years, or 
"(ii) who is because of his particular circumstances determined 
by the institution to need an additional year to complete a course 
of study normally requiring four academic years, 
such period may be extended for not more than one additional academic 
year. 
"(2) A supplemental grant awarded under this subpart shall entitle 
the student to whom it is awarded to payments pursuant to such grant ards" 
only if— 
"(A) that student is maintaining satisfactory progress in the 
course of study he is pursuing, according to the standards and 
practices of the institution awarding the grant, and 
"(B) that student is devoting at least half-time to that course 
of study, during the academic year, in attendance at that institu-
tion. 
Failure to be in attendance at the institution during vacation periods 
or periods of military service, or during other periods during which 
the Commissioner determines, in accordance with regulations, that 
there is good cause for his nonattendance, shall not render a student 
ineligible for a supplemental grant; but no payments may be made to 
a student during any such period of failure to be in attendance or 
period of nonattendance. 
Five-year 
programs. 
Academic and 
attendance stand-
Nonattendance. 
"SELECTION or RECIPIENTS ; AGREEMENTS WITH INSTITUTIONS 
"SEC. 413C. (a) (1) An individual shall be eligible for the award of 
a supplemental grant under this subpart by an institution of highei-
education which has made an agreement with the Commissioner pur-
suant to subsection (b), if the individual makes application at the time 
and in the manner prescribed by that institution, in accordance with 
regulations of the Commissioner. 
"(2) From among those who are eligible for supplemental grants 
through an institution which has an agreement with the Commissioner 
under subsection (b) for each fiscal year, the institution shall, in 
accordance with such agreement under subsection (b), and within the 
amount allocated to the institution for that purpose for that year 
under section 413D(b) select individuals who are to be awarded such 
grants and determine, in accordance with section 413B, the amounts to 
be paid to them. An institution shall not award a supplemental grant 
to an individual unless it determines that— 
"(A) he has been accepted for enrollment as an undergraduate 
student at such institution or, in the case of a student already 
attending such institution, is in good standing there as an 
undergraduate; 
"(B) he shows evidence of academic or creative promise and 
capability of maintaining good standing in this course of study; 
"(C) he is of exceptional financial need; and 
"(D) he would not, but for a supplemental grant, be financially 
able to pursue a course of study at such institution. 
Eligibility re-
quirements. 
Post, p. 274. 
254 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
For the purposes of clause (C) of this paragraph, in determining 
financial need, the expected family contribution shall be considered to 
be the contribution expected in the specific circumstances of the 
student as determined by the student financial aid officer at the institu-
tion in accordance with criteria promulgated by the Commissioner. 
Any calculation of the ability of a family to contribute shall include 
consideration of (i) family assets which should reasonably be available 
for such purpose, (ii) the number of children in the family, (iii) the 
number of children attending institutions of higher education, (iv) 
any catastrophic illness in the family, (v) any educational expenses 
of other dependent children in the family, and (vi) other circum-
stances affecting the student's financial need. 
agreeme"ntTro- 
"(b) Au Institutiou of higher educatiou which desires to obtain 
visions. 
funds for supplemental grants under this subpart shall enter into 
an agreement with the Commissioner. Such agreement shall— 
"(1) provide that funds received by the institution under this 
subpart will be used by it solely for the purposes specified in, and 
in accordance with, the provisions of this subpart and of section 
463; 
"(2) provide that, in determining whether an individual meets 
the requirements of clause (C) of paragraph (2) of subsection 
(a), the institution will—• 
"(A) consider the source of such individual's income and 
that of any individual or individuals upon Avhom he relies 
primarily for support, and 
"(B) make appropriate review of the assets of the student 
and of such individuals; 
" (3) provide that the institution, in cooperation with other eligi-
ble institutions where appropriate, will make vigorous efforts to 
identify qualified youths of exceptional financial need, and to 
encourage them to continue their education beyond secondary 
school through such programs and activities as— 
"(A) establishing or strengthening close working relation-
ships with secondary school principals and guidance and coun-
seling personnel, with a view toward motivating students to 
complete secondary school and to pursue postsecondary school 
educational opportunities, and 
"(B) making, to the extent feasible, conditional commit-
ments for student financial aid by such institution to qualified 
secondary school students, who but for such grants would be 
unable to obtain the benefits of higher education, with special 
emphasis on students enrolled in grade 11 or lower grades who 
show evidences of academic or creative promise; 
"(4) provide that the institution will meet the requirements of 
Post, p. 275. 
section 464; 
" (5) include provisions designed to make grants under this sub-
part reasonably available, to the extent of available funds, to all 
eligible students in attendance at the institution; 
" (6) include such other provisions as may be necessary to protect 
the financial interest of the United States and promote the pur-
poses of this subpart. 
"APPORTIONMENT AND ALLOCATION or FUNDS 
"SEC. 413D. (a) (1^ (A) From 90 per centum of the sums appropri-
ated pursuant to section 413A(b) (1) for any fiscal year, the Commis-
sioner shall apportion to each State an amount which bears the same 
ratio to such sums as the number of persons enrolled full-time and the 
full-time equivalent of the number of persons enrolled part time in 
institutions of higher education in such State bears to the total number 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
255 
of such persons in all the States. The remainder of the sums so appro-
priated shall be apportioned among the States by the Commissioner 
in accordance with equitable criteria which he shall establish and 
which shall be designed to achieve a disti'ibution of the sums so 
appropriated among the States which will most effectively carry out 
the purpose of this subpart, except that where any State's apportion-
ment under the first sentence for a fiscal year is less than its allotment 
under the first sentence of section 401(b) of this Act for the fiscal ^"'®' P* '^'^'^• 
year ending June 30, 1972, before he makes any other apportionments 
under this sentence, the Commissionei" shall apportion sufficient addi-
tional sums to such State under this sentence to make the State's 
apportionment for that year under this paragraph equal to its allot-
ment for the fiscal year ending June 30,1972, under such first sentence. 
Sums apportioned to a State under the preceding sentence shall be 
consolidation, 
consolidated with, and become a part of, its apportionment from the 
same appropriation under the first sentence of this paragraph. 
"(B) If the Commissioner determines that the sums apportioned to 
Excess, re-
any State under subparagraph (A) for any fiscal year exceed the ^ppo'^onmem. 
aggregate of the amounts that he determines to be required under 
subsection (b) for that fiscal year for institutions of higher education 
in that State, the Commissioner shall reapportion such excess, from 
time to time, on such date or dates as he shall fix, to other States in 
such manner as the Commissioner determines will best assist in achiev-
ing the purposes of this subpart. 
"(2) Sums appropriated pursuant to section 413A(b) (2) for any 
fiscal year shall be apportioned among the States in such manner as 
the Commissioner determines will best achieve the purposes for which 
such sums were appropriated. 
"(b) (1) (A) The Commissioner shall, from time to time, set dates 
before which institutions in any State must file applications for alloca-
tion, to such institutions, of supplemental grant funds from the 
apportionment to that State (including any reapportionment thereto) 
for any fiscal year pursuant to subsection (a) (1). 
"(B) (i) From the sums apportioned (or reapportioned) to any 
State, the Commissioner shall allocate amounts to institutions which 
have submitted applications pursuant to subparagraph (A). 
"(ii) Allocations under division (i) by the Commissioner to such 
institutions shall be made in accordance with equitable criteria estab-
lished by the Commissioner by regulation. Such criteria shall be 
designed to achieve such distribution of supplemental grant funds 
among such institutions within a State as will most effectively carry 
out the purposes of this subpart. 
"(2) The Commissioner shall, in accordance with regulations, allo-
cate to such institutions in any State, from funds apportioned or reap-
portioned pursuant to subsection (a)(2), funds to be used as the 
supplemental grants specified in section 413A(b)(2). 
" (3) Payments shall be made from allocations under this subsection 
as needed. 
"Subpart 3—Grants to States for State Student Incentives 
"PURPOSE; APPROPRTATIOXS AUTHORIZED 
"SEC. 415A. (a) It is the purpose of this subpart to make incentive 
grants available to the States to assist them in providing grants to 
eligible students in attendance at institutions of higher education. 
" (b) (1) There are hereby authorized to be appropriated $50,000,000 
for the fiscal year ending June 30,1973, and for each of the succeeding 
fiscal years ending prior to July 1, 1975, for payments to the States 
for giants to students who have not pieviously been awarded such 
grants. 
256 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
"(2) In addition to the sums authorized to be appropriated pur-
suant to paragraph (1), there is authorized to be appropriated such 
sums as may be necessary for making payments to States to continue 
their grants to students made with incentive grants received by such 
States for previous years pursuant to paragraph (1). 
"(3) Sums appropriated pursuant to paragraph (1) for any fiscal 
3'ear shall remain available for payments to States for the award of 
student grants under this subpart until the end of the fiscal year suc-
ceeding the fiscal year for which such sums were appropriated. 
"(4) For the purposes of this subsection, a payment on the first 
year of a student grant with respect to any student who has not been 
awarded a grant from appropriations pursuant to paragraph (1) 
during any previous year shall be considered, subject to regulations 
of the Commissioner, an initial award to be paid from appropriations 
pursuant to paragraph (1). 
"ALLOTMENT AMONG STATES 
"SEC. 4:15B. (a) (1) (A) From the sums appropriated pursuant to 
section 415A(b) (1) for any fiscal year, the Commissioner shall allot 
to each State an amount which bears the same ratio to such sums as 
the number of students in attendance at institutions of higher educa-
tion in such State bears to the total number of such students in sucli 
attendance in all the States. 
"(B) For the purposes of this paragraph, the number of students in 
attendance at institutions of higher education in a State and in all the 
States shall be determined by the Commissioner for the most recent 
year for which satisfactory data are available to him. 
"(2) The amount of any State's allotment under paragraph (1) for 
any fiscal year which the Commissioner determines will not be required 
for such fiscal year for the State student grant incentive program of 
that State shall be available for reallotment from time to time, on such 
dates during such year as the Commissioner may fix, to other States in 
proportion to the original allotments to such States under such part 
for such year, but with such proportionate amount for any of such 
States being reduced to the extent it exceeds the sum the Commissionei-
estimates such State needs and will be able to use for such year for 
carrying out the State plan; and the total of such reductions shall be 
similarly reallotted among the States whose proportionate amounts 
were not so reduced. Any amount reallotted to a State under this part 
during a year from funds appropriated pursuant to section 415A(b) 
(1) shall be deemed part of its allotment under paragraph (1) for 
such year. 
"(b) Sums appropriated pursuant to section 415A(b) (2) for any 
fiscal year shall be allotted among the States in such manner as the 
Commissioner determines will best achieve the purposes for which such 
sums were appropriated. 
"(c) The Commissioner shall make payments for continuing incen-
tive grants only to those States which continue to meet the require-
ments of section 415C(b) (1), (2), (3), and (5). 
(( 
APPLICATIONS FOR STATE STUDENT INCENTIVE GRANT PROGRAMS 
"SEC. 416C. (a) A State which desires to obtain a payment under 
this subpart for any fiscal year shall submit an application therefor 
through the State agency administering its progiam of student grants, 
at such time or times, and containing such information as may be 
required by, or pursuant to, regulation for the purpose of enabling 
the Commissioner to make the determinations required under this 
subpart. 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
257 
"(b) From a State's allotment under this subpart for any fiscal year 
the Commissioner is authorized to make payments to such State for 
paying 50 per centum of the amount of student grants pursuant to a 
State program which— 
"(1) is administered by a single State agency; 
"(2) provides that such grants will be in amounts not in excess 
of $1,500 per academic year for attendance on a full-time basis 
as an undergraduate at an institution of higher education; 
"(3) provides for the selection of recipients of such grants on 
the basis of substantial financial need determined annually on the 
basis of criteria established by the State and approved by the 
Commissioner; 
"(4) provides for the payment of the non-Federal portion of 
such grants from funds supplied by such State which represent 
an additional expenditure for such year by such State for grants 
for students attending institutions of higher education over the 
amount expended by such State for such grants, if any, during 
the second fiscal year preceding the fiscal year in which such State 
initially received funds under this subpart; and 
"(5) provides (A) for such fiscal control and fund accounting 
procedures as may be necessary to assure proper disbursement of 
?«t: : : 
and accounting for Federal funds paid to the State agency under 
this subpart, and (B) for the making of such reports, in such 
form and containing such information, as may be reasonably 
necessary to enable the Commissioner to perform his functions 
under this subpart. 
"(c) Upon his ai:)proval of any application for a payment under 
this subpart, the Commissioner shall reserve from the applicable 
allotment (including any applicable reallotment) available therefor, 
the amount of such payment, which (subject to the limits of such 
jillotment or reallotment) shall be equal to the Federal share of the 
cost of the student incentive grants covered by such application. The 
Commissioner shall pay such reserved amount, in advance or by way 
of reimbursement, and in such installments as he may determine. The 
Commissioner's reservation of any amount under this section may be 
amended by him, either upon approval of an amendment of the appli-
cation or upon revision of the estimated cost of the student grants with 
respect to which such reservation was made, and in the event of an 
upward revision of such estimated cost approved by him he may 
reserve the Federal share of the added cost only from the applicable 
allotment (or reallotment) available at the time of such approval. 
"ADMINISTRATION or STATT. PROGRAMS; JTHHCIAL REVIEAV 
"SEC. -IISD. (a) (1) The Commissioner shall not finally disapprove 
any application for a State program submitted under section 415C, 
or any modification thereof, without first affording the State agency 
submitting the program reasonable notice and oppoitunity for a 
hearing. 
"(2) Whenever the Commissioner, after reasonable notice and 
NoncompUance, 
opportunity for hearing to the State agency administering a State ^ 
' 
program approved under this subpart, finds— 
"(A) that the State program has been so changed that it no 
longer complies with the provisions of this subpart, or 
"(B) that in the administration of the program there is a 
failure to comply substantially with any such provisions, 
the Commissioner shall notify such State agency that the State will 
not be regarded as eligible to participate in the program under this 
subpart until he is satisfied that thei-e is no longer any such faihire to 
(•omply. 
notification. 
258 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Appeal. 
Fact findings, 
modification. 
Jurisdiction. 
62 Stat. 928. 
"(b) (1) If any State is dissatisfied with the Commissioner's final 
action with respect to the approval of its State program submitted 
under this subpart or with his final action under subsection (a), such 
State may appeal to the United States court of appeals for the circuit 
in which such State is located. The summons and notice of appeal may 
be served at any place in the United States. The Commissioner shall 
forthwith certify and file in the court the transcript of the proceedings 
and the record on which he based his action. 
" (2) The findings of fact by the Commissioner, if supported by sub-
stantial evidence, shall be conclusive; but the court, for good cause 
shown, may remand the case to the Commissioner to take further evi-
dence, and the Commissioner may thereupon make new or modified 
findings of fact and may modify his previous action, and shall certify 
to the court the transcript and record of the further proceedings. Such 
new or modified findings of fact shall likewise be conclusive' if sup-
ported by substantial evidence. 
"(3) The court shall have jurisdiction to affirm the action of the 
Commissioner or to set it aside, in whole or in part. The judgment of the 
court shall be subject to review by the Supreme Court of the United 
States upon certiorari or certification as provided in title 28, United 
States Code, section 1254. 
"Subpart 4—Special Programs for Students From Disadvantaged 
Backgrounds 
Appropriation. 
Grants and con-
tracts. 
"Talent 
Search." 
"PROGIL\M AUTHORIZATION 
"SEC. 417A. (a) The Commissioner shall, in accordance with the pro-
visions of this subpart, carry out a program designed to identify quali-
fied students from low-income families, to prepare them for a program 
of postsecondary education, and to provide special services for such 
students who are pursuing programs of postsecondary education. 
"(b) For the purpose of enabling the Commissioner to carry out 
this subpart, there are authorized to be appropriated $100,000,000 for 
the fiscal year ending June 30, 1973, and for each of the succeeding 
fiscal years ending prior to July 1,1975. 
"AUTHORIZED ACTIVITIES 
"SEC. 417B. (a) The Commissioner is authorized (without i-egard 
to section 3709 of the Revised Statutes (41 U.S.C. 5)) to make grants 
to, and contracts with, institutions of higher education, including 
institutions with vocational and career education programs, com-
binations of such institutions, public and private agencies and orga-
nizations (including professional and scholarly associations), and, 
in exceptional cases, secondary schools and secondarv vocational 
schools, for planning, developing, or carrying out withm the States 
one or more of the services described in section 417A(a). 
"(b) Services provided through grants and contracts under this 
subpart shall be specifically designed to assist in enabling youths 
from low-income families who have academic potential, but who may 
lack adequate secondary school preparation or who may be physically 
handicapped, to enter, continue, or resume a program of postsecond-
ary education, including— 
"(1) programs, to be known as 'Talent Search', designed to— 
"(A) identify qualified youths of financial or cultural 
need with an exceptional potential for postsecondary educa-
tional training and encourage them to complete secondary 
school and undertake postsecondary educational training, 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
259 
"(B) publicize existing forms of student financial aid, 
including aid furnished under this title, and 
"(C) encourage secondary-school or college dropouts of 
demonstrated aptitude to reenter educational programs, 
including postsecondary-school programs; 
"(2) programs, to be known as 'Upward Bound', (A) which 
are designed to generate skills and motivation necessary for suc-
cess in education beyond high school and (B) in which enrollees 
from low-income backgrounds and with inadequate secondary-
school preparation participate on a substantially full-time basis 
during all or part of the program; 
"(3) programs, to be known as 'Special Services for Disadvan-
taged Students', of remedial and other special services for stu-
dents with academic potential (A) who are enrolled or accepted 
for enrollment at the institution which is the beneficiary of the 
grant or contract, and (B) who, by reason of deprived educa-
tional, cultural, or economic background, or physical handicap, are 
in need of such services to assist them to initiate, continue, or 
resume their postsecondary education; and 
"(4) a program of paying up to 75 per centum of the cost of 
establishing and operating Educational Opportunity Centers 
which— 
"(A) 
serve areas with major concentrations of low-
income populations by providing, in coordination with other 
applicable programs and services— 
" (i) information with respect to financial and academic 
assistance available for persons in such areas desiring 
to pursue a program of postsecondary education; 
" (ii) assistance to such persons in applying for admis-
sion to institutions, at which a program of postsec-
ondary 
education 
is 
offered, 
including 
preparing 
necessary applications for use by admission and financial 
aid officers; and 
"(iii) counseling services and tutorial and other nec-
essary assistance to such persons while attending such 
institutions; and 
•'(B) serve as recruiting and counseling pools to coordinate 
resources and staff efforts of institutions of higher education 
and of other institutions offering programs of post^condary 
education, in admitting educationally disadvantagea persons. 
The portion of the cost of any project assisted under clause (4) in the 
preceding sentence which is borne by the applicant shall represent an 
increase in expenditure by such applicant for the purposes of such 
project. 
"(c) Enrollees who are participating on an essentially full-time 
basis m one or more services being provided under this section may be 
paid stipends, but not in excess of $30 per month except in exceptional 
cases as determined by the Commissioner.". 
(2) The amendment made by paragraph (1) shall be effective after 
June 30,1972. 
(c) Section 461 of the Higher Education Act of 1965 is amended by 
striking out subsection (b) thereof and inserting in lieu thereof the 
following: 
"(b) (1) For the purposes of this title, except part B, the term 
'institution of higher education' includes any school of nursing; and 
any proprietary institution of higher education which has an agree-
ment with the Commissioner containing such terms and conditions 
"Upward 
Bound.»• 
"Special Serv-
ices for Disadvan-
taged Students." 
Educational Op-
portunity Centers. 
Enrollees, sti-
pend, limitation. 
Effective date. 
82 Stat. 1032; 
Post, 
p. 272. 
20 u s e 1088. 
"Institution of 
higher education.»» 
260 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Definitions. 
79 Stat. 1269; 
82 Stat. 1049. 
20 u s e 1141. 
84 Stat. 192. 
"School or de-
partment of divin-
ity." 
20 u s e 
note. 
20 u s e 
20 u s e 
20 u s e 
82 Stat. 
20 u s e 
1001 
1027. 
1116. 
1129. 
1046. 
1134j 
as the Commissioner determines to be necessary to insure that the 
availability of assistance to students at the school under this title has 
not resulted, and will not result, in an increase in the tuition, fees, or 
other charges to such students. 
•'(2) For the purposes of this subsection: 
"(A) The term 'school of nursing' means a public or other 
nonprofit collegiate or associate degree school of nursing. 
"(B) 
The term 'collegiate school of nursing' means a 
department, division, or other administrative unit in a college oi-
university which provides primarily or exclusively an accredited 
program of education in professional nursing and allied subjects 
leading to the degree of bachelor of arts, bachelor of science, 
bachelor of nursing, or to an equivalent degree, or to a graduate 
degree in nursing. 
"(C) The term 'associate degree school of nursing' means a 
department, division, or other administrative unit in a junior 
college, community college, college, or university which provides 
primarily or exclusively an accredited two-year program of 
education in professional nursing and allied subjects leading to 
an associate degree in nursing or to an equivalent degree. 
"(D) The term 'accredited' when applied to any program of 
nurse education means a program accredited by a recognized body 
or bodies approved for such purpose by the Commissioner. 
" (3) For the purposes of this subsection, the term 'proprietary insti-
tution of higher education' means a school (A) which provides not less 
than a six-month program of training to prepare students for gainful 
employment in a recognized occupation, (B) which meets the require-
ments of clauses (1) and (2) of section 1201(a), (C) which does not 
meet the requirement of section clause (4) of section 1201(a), (D) 
which is accredited by a nationally recognized accrediting agency or 
association approved by the Commissioner for this purpose, and (E) 
which has been in existence for at least two years. For purposes of this 
paragraph, the Commissioner shall publish a list of nationally recog-
nized accrediting agencies or associations which he determines to be 
reliable authority as to the quality of training offered. 
"(c) For the purposes of this title— 
" (1) the term 'academic year' shall be defined by the Commis-
sioner by regulations; and 
" (2) the term 'in attendance', when applied to a student, means 
a student who attends an institution of higher education at least 
on a half-time basis, as defined by the (Xmmissioner by regu-
lation.", 
(d) (1) Section 1201 of the Higher Education Act of 1965 is amended 
by adding at the end thereof the following new paragraph: 
"(1) The term 'school or department of divinity' means an institu-
tion or a department or a branch of an institution the program of 
instruction of which is designed for the education of students (A) to 
prepare them to become ministers of religion or to enter upon some 
other religious vocation (or to provide continuing training for any 
such vocation), or (B) to prepare them to teach theological subjects.". 
(2) The Higher Education Act of 1965 is amended oy striking out 
the following provisions: 
(A) The second sentence of section 113; 
(B) The second sentence of section 207; 
(C) The second sentence of section 526 ; 
(D) The second sentence of section 609; and 
(E) The second sentence of section 923. 
86 
STAT.] 
PUBLIC LAW 92-318-JUNE 23, 1972 
261 
INSURED STUDENT LOANS—EXTENSION OF PKOGRA.Ar 
SEC. 132. (a) (1) The first sentence of section 424(a) of the Higher 
Education Act of 1965 is amended to read as follows: "The total princi-
pal amount of new loans made and installments paid pursuant to lines 
of credit (as defined in section 435) to students covered by Federal loan 
insurance under this part shall not exceed $1,400,000,00<) for the fiscal 
year ending June 30,1972, $1,600,000,000 for the fiscal year ending June 
30, 1973, $1,800,000,000 for the fiscal year ending June 30, 1974. and 
$2,000,000,000 for the fiscal year ending June 30,1975.'; 
(2) Such section 424(a) is further amended by striking out "June 30, 
1975" and inserting in lieu thereof "June 30,1979". 
(b) Paragraph (4) of section 428(a) of such Act is amended (1) by 
striking out "June 30, 1971" and inserting in lieu thereof "June 30, 
1975" and (2) by striking out "shall end at the close of June 30, 1975" 
and inserting in lieu thereof "shall end at the close of June 30, 1979". 
(c) Section 433(c) of such Act is amended by striking out "two suc-
ceeding fiscal years" and inserting in lieu thereof "succeeding fiscal 
years ending prior to July 1,1975". 
(d) The amendments made by this section shall be effective after 
June 30,1971. 
79 Stat. 1237; 
$2 Stat. 1020. 
20 u s e 1074. 
20 u s e 1085. 
20 use 1078. 
82 Stat. 1024. 
20 u s e 1083. 
Effective date. 
INCREASE IN LOAN LIMITATION IN EXCEPTIONAL (\\SES 
SEC. 132A. (a) (1) Section 425(a) of the Higher Education Act of 
1965 is amended by striking out "$1,500" and inserting in lieu thereof 
the following: "$2,500, except in cases where the Commissioner deter-
mines, pursuant to regulations prescribed by him, that a higher amount 
is warranted in order to carry out the purposes of this part with respect 
to students engaged in specialized training requiring exceptionally 
high costs of education". 
(2) The second sentence of section 425(a) of such Act is amended 
by inserting before the period a comma and the following: "in the case 
of any student who has not successfully completed a program of under-
graduate education, and $10,000 in the case of any graduate or profes-
sional student (as defined by regulations of the Commissioner and 
including any loans which are insured by the Commissioner under this 
part or by a State or nonprofit institution or organization with which 
the Commissioner has an agreement under section 428(b) made to 
such person before he became a graduate or professional student)". 
(b) (1) Section 428(b) (1) (A) of such Act is amended (1) by strik-
ing out "$1,500" and inserting in lieu thereof the following: "$2,500. 
except in those cases where the Commissioner determines, pursuant to 
regulations prescribed by him, that a higher amount is warranted in 
order to carry out the purposes of this part with respect to students 
engaged in specialized training requiring exceptionally high costs of 
education)". 
(2) Section 428(b) (1) (a) of such Act is further amended by insert-
ing before the semicolon the following: "in the case of any student who 
has successfully completed a program of undergraduate education, and 
$10,000 in the case of any graduate or professional student (as defined 
by regulations of the Commissioner and including any loans which are 
insured by the Commissioner under this part or by a State or nonprofit 
institution or organization with which the Commissioner has an agree-
ment under this part made to such person before he became a graduate 
or professional student).". 
(c) The amendments made by subsections (a) and (b) shall be 
effective with respect to loans made after the enactment of this Act, 
79 Stat. 1238. 
20 u s e 1075. 
82 Stat. 1027. 
79 Stat. 1240. 
20 u s e 1078. 
82 Stat. 1027. 
Effective date. 
262 
, 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
79 Stat. 1236. 
20 u s e 1071. 
Ante, 
p. 261. 
and insured by the Commissioner under part B of title IV of the 
Higher Education Act of 1965, or by a State or nonprofit private insti-
tution or organization with which the Commissioner has an agreement 
under section 428 (b) of such part. 
INSUEANCE LIABILITY 
20 use lo75: 
SEC. 132B. (a) Section 425 (b) of the Higher Education Act of 1965 
is amended to read as follows: 
"(b) The insurance liability on any loan insured by the Commis-
sioner under this part shall be 100 per centum of the unpaid balance of 
the principal amount of the loan plus interest. The full faith and 
credit of the United States is pledged to the payment of all amounts 
which may be required to be paid under the provisions of section 430 
^^20 use 1080, 
Q
j
^
. 437 ^f ^j^jg ^ ^ ^ „ ^ 
20 use 1077. 
(b) Section 427(a) (2) (D) of such Act is amended by striking^ out 
the following: " (but without thereby increasing the insurance liability 
under this part)". 
20 use 1080. 
^Q-^ -j^jjg ]g^g^ sentence of section 430(a) of such Act is amended by 
striking out "of the loan (otlier than interest added to principal)" and 
inserting in lieu thereof the following: "and interest". 
AMENDMENTS TO INTEREST SUBSIDY 
PROVISIONS 
SEC. 132C. (a) Section 428(a) (1) of the Higher Education Act of 
20 use 1078. 
2965 is amended to read as follows : 
"(1) Each student who has received a loan for study at an eligible 
institution—• 
"(A) which is insured by the Commissioner under this part; 
"(B) which was made under a State student loan program 
(meeting criteria prescribed by the Commissioner), and which 
was contracted for, and paid to the student, within the period 
specified by paragraph (4) ; or 
"(C) which is insured under a program of a State or of a 
nonprofit private institution or organization which was contracted 
for, and paid to the student, within the period specified in para-
graph (4), and which— 
"(i) in the case of a loan insured prior to July 1, 1967, 
was made by an eligible lender and is insured under a pro-
gram which meets the requirements of subparagraph (E) of 
subsection (b) (1) and provides that repayment of such loan 
shall be in installments beginning not earlier than sixty days 
after the student ceases to pursue a course of study (as 
described in subparagraph (D) of subsection (b)(1)) at 
an eligible institution, or 
"(ii) in the case of a loan insured after June 30, 1967, is 
insured under a program covered by an agreement made 
pursuant to subsection (b), 
shall be entitled to have paid on his behalf and for his account to the 
holder of the loan a portion of the interest on such loan (in accordance 
with paragraph (2) of this subsection) only if at the time of execution 
of the note or written agreement evidencing such loan his adjusted 
family income is— 
"(I) less than $15,000 and the eligible institution at which he 
has been accepted for enrollment or, in the case of a student who is 
attending such an institution, at which he is in good standing (as 
determined by such institution)— 
"(a) has determined the amount of need for such loan by 
subtracting from the estimated cost of his attendance at sucli 
Ante, 
p. 261. 
cost allowance, 
payment. 
86 STAT.] 
PUBLIC LAW 9 2 - 3 1 8 - J U N E 23, 1972 
263 
institution (which, for purposes of this paragraph, means the 
cost, for the period for which the loan is sought, of tuition, 
fees, room and board, and reasonable commuting costs) the 
expected family contribution with respect to such student plus 
any other resources or student aid reasonably available to such 
student, and 
"(/3) has provided the lender with a statement evidencing 
the determination made under clause (I) (a) of this para-
graph and recommending a loan in the amount of such need; 
or 
"(II) equal to or more than $15,000 and the eligible institution 
at which he has been accepted for enrollment or, in the case of a 
student who is attending such an institution, at which he is in good 
standing (as determined by such institution)— 
" (a) has determined that he is in need of a loan to attend 
such institution, 
"(^) has determined the amount of such need by subtract-
ing from the estimated cost of attendance at such institution 
the expected family contribution with respect to such student 
plus any other resources or student aid reasonably available to 
such student, and 
"(y) has provided the lender with a statement evidencing 
the determination made under clause (II) (/?) of this para-
graph and recommending a loan in the amount of such need. 
In addition, the Commissioner shall pay an administrative cost allow- 
Administrative 
ance in the amount established by paragraph (2) (B) of this subsection 
with respect to loans to any student without regard to the borrower's 
need. For the purposes of this paragraph, the adjusted family income 
of a student shall be determined pursuant to regulations of the Com-
missioner in effect at the time of the execution of the note or written 
agreement evidencing the loan. Such regulations shall provide for 
taking into account such factors, including family size, as the Com-
missioner deems appropriate. In the absence of fraud by the lender, 
such determination of the need of a student under this paragraph 
shall be final insofar as it concerns the obligation of the Commissioner 
to pay the holder of a loan a portion of the interest on the loan.". 
(b) Section 428(b)(1)(H) of such Act is amended to read as 
79 stat. 1242. 
j» n 
20 u s e 1078. 
follows: 
"(H) provides that the benefits of the loan insurance program 
will not be denied any student who has been determined (pur-
suant to section 428(a) (1)) to be in need of a loan except in the 
Ante, p. 262. 
case of loans made by an instrumentality of a State or eligible 
institution;". 
(c) Section 427(a) (1) of such Act is amended by striking out", and 
20 use 1077. 
(C) has provided the lender with a statement of the institution which 
sets forth a schedule of the tuition and fees applicable to that student 
and its estimate of the cost of board and room for such a student". 
TECHNICAL 
AMENDMENTS 
SEC. 132D. Section 437 of such Act is amended to i-ead as follows: 
82 stat. 1020. 
20 u s e 1087. 
••REPAYMENT BY T H E COMMISSIONER OF LOANS OF DECEASED OK DISABLED 
BORROWERS 
"SEC. 437. If a student borrower who has received a loan described 
in clause (A), (B), or (C) of section 428(a) (1) dies or becomes per- 
"*"'*' P- ^^2-
manently and totally disabled (as determined in accordance with 
82-081 0 - 7 3 - 2 0 
264 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 
STAT. 
79 Stat. 1242; 
82 Stat. 1027. 
20 u s e 1078. 
81 Stat. 722. 
42 u s e 2991. 
Repeal. 
82 Stat. 1025. 
82 Stat. 636. 
20 u s e 1078. 
79 Stat. 1247; 
52 Stat. 1024. 
20 u s e 1084. 
regulations of the Commissioner), then the Commissioner sliall dis-
charge the borrower's liability on the loan by repaying the amount 
owed on the loan.". 
(b) Paragraph (1) of section 428(b) is amended (1) by striking out 
"and" at the end of clause (J) thereof, (2) by striking out the period 
at the end of clause (K) and inserting "•; and" in lieu thereof, and (3) 
by adding at the end of such paragraph the following new clause: 
"(L) provides that periodic installments of principal need not 
be paid, but interest shall accrue and be paid during any period 
(i) during'which the borrower is pursuing a full-time course of 
study at an eligible institution, (ii) not in excess of three years 
during which the boi'rower is a member of the Armed Forces of 
the United States, (iii) not in excess of three years during which 
the borrower is in service as a volunteer under the Peace Corps 
Act, or (iv) not in excess of three years during which the bor-
rower is in service as a full-time volunteer under title VIII of the 
Economic Opportunity Act of 1964." 
(c) Section 428(e) of such Act is repealed. 
(d) Paragraph (1) of subsection (c) of such section 428 is amended 
by striking out "adjusted family income of the borrower" and inserting 
in lieu thereof "the borrower's lack of need". 
(e) Section 434 of such Act is amended by striking out "up to 15 
per centum of their assets,". 
79 Stat. 1236; 
!2 Stat. 1020. 
20 u s e 1071. 
Regulations. 
Audit. 
Ante, pp. 261, 
263; 
Supra. 
List of state 
agencies, publi-
cation. 
Effective date. 
ELiGiBiLrrY or INSTITUTIONS 
SEC. 132E. (a) Part B of title IV of the Higher Education Act of 
1965 is amended by adding at the end thereof the following new 
section: 
"ELIGIBILITY OF INSTITUTIONS 
"SEC. 438. (a) Notwithstanding any other provision of this part, the 
Commissioner is authorized to prescribe such regulations as may be 
necessary to provide for— 
"(1) a fiscal audit of an eligible institution with regard to any 
funds obtained from a student who has receiA'ed a loan insured 
under this part, or insured by a State or nonprofit private institu-
tion or organization wnth which the Commissioner has an agree-
ment imder section 428(b) ; 
"(2) the establishment of reasonable standards of financial 
responsibility and appropriate institutional capability for the 
administration by an eligible institution of a program of student 
financial aid with respect to funds obtained from a student who 
has received a loan insured under this part, or insured by a State 
or nonprofit private institution or organization with which the 
Commissioner has an agreement under section 428 (b); 
"(3) the limitation, suspension, or termination of the eligibility 
under this part of any otherwise eligible institution, whenever the 
Commissioner has determined, after notice and affording an 
opportunity for hearing, that such institution has violated or failed 
to carry out any regulation prescribed under this part. 
"(b) The Commissioner shall publish a list of State agencies which 
he determines to be reliable authority as to the quality of public 
postsecondary vocational education in their respective States foi- the 
purpose of determining eligibility for all Federal student assistance 
programs.". 
(b) The amendment made by subsection (a) shall be effective on 
and after the sixtieth day following the enactment of this Act. 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
265 
SAVINGS PROVISION 
SEC. 132F. The amendments made by sections 132,132A, 132B, 132C, 
and 132D, sliall not be effective with respect to any loan made after 
the date of enactment of this Act, in wliole or in part, to consolidate 
or convert a loan made or contracted for prior to its eti'ective date. 
STFDENT LOAN MARKETING 
ASSOCIATION 
SEC. 133. (a) Part B of title IV of the Higher Education Act of 
1965 is further amended by adding at the end thereof the following new 
^"'e, p. 264. 
section: 
"STI'DENT LOAN MARKETING 
ASSOCIATION 
"'SEC. 430. (a) The Congress hereby declares that it is the purpose of 
this section to establish a Government-sponsored private corporation 
Avhich will be financed by private capital and which will serve as a 
secondary market and warehousing facility for insured student loans, 
insured by the Connnissioner under this part or by a State or nonprofit 
private institution or organization with which the Commissioner lias an 
agreement under section •128(b), and which will provide liquidity for 
^"'e, pp. 26i, 
student loan investments. 
'"•(b)(1) There is hereby created a body corporate to be known as the 
EstabUshment, 
Student Loan Marketing Asscx-iation (hereinafter referred to as the 
'Association'). The Association shall have succession until dissolved. It 
shall uiaintain its principal office in the District of Columbia and shall 
be deemed, for purposes of venue in civil actions, to be a resident 
thereof. Offices may be established by the Association in such other 
place or places as it may deem necessai-y or approi)riate for the conduct 
of its business. 
"•(2) The Association, including its franchise, capital, reserves, sur- 
Tax exemption. 
l)lus, mortgages, or other security holdings, and income shall be exempt 
from all taxation now or hereafter imposed by any State, territory, pos-
session. Commonwealth, or dependency of the L^nited States, or by the 
District of Columbia, or by any county, municipality, or local taxing 
authority, except that any i-eal property of the Association shall be sub-
ject to State, territorial, county, municipal, or local taxation to the same 
extent according to its value as other real property is taxed. 
''(3) There is hereby authorized to be appropriated to the Secretary 
Appropriation. 
of Health, Education, and "Welfare $5,000,000 for making advances for 
the purpose of helping to establish the Association. Such advances shall 
he. repaid Avithin such period as the Secretary may deem to be appropri-
ate in light of the maturity and solvency of the Association. Such 
Advances, 
advances shall bear interest at a rate not less than (A) a rate determined ^"'^'•^^'^• 
by the Secretary of the Treasury taking into consideration the current 
average market yield on outstanding marketable obligations of the 
I^'nited States with remaining periods to maturity comparable to the 
maturity of such advances, adjusted to the nearest one-eighth of 1 per 
centum, plus (B) an allowance adequate in the judgment of the Sec-
retary to cover administrative costs and probable losses. Repayments 
of such advances shall be deposited into miscellaneous recei])ts of the 
Treasury. 
" (c) (1) The Association shall have a Board of Directors Avhich shall ^.Board o
f 
• 
Directors. 
consist of twenty-one persons, one of Avhom shall be designated Chair-
man by the President. 
"(2) An interim Board of Directors shall be appointed by the Presi-
dent, one of whom he shall designate as interim Chairman, The interim 
Board shall consist of twenty-one membei'S, seven of whom shall be rep-
resentative of banks or other financial institutions Avhich are insured 
266 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Insured student 
loans, servicing. 
Ante, 
pp. 261, 
263, 264. 
Limitation. 
Nondiscrimi-
nation. 
lenders pursuant to this section, seven of whom shall be representative 
of educational institutions, and seven of whom shall be representative 
of the general public. The interim Board shall arrange for an initial 
offering of common and preferred stocks and take whatever other 
actions are necessary to proceed with the operations of the Association. 
"(3) When in the judgment of the President, sufficient common 
stock of the Association has been purchased by educational institution:^ 
and banks or other financial institutions, the holders of common stock 
which are educational institutions shall elect seven members of the 
Board of Directors and the holders of common stock which are banks or 
other financial institutions shall elect seven members of the Board of 
Directors. The President shall appoint the remaining seven director's, 
who shall be representative of the general public. 
"(4) At the time the events described in paragraph (3) have 
occurred, the interim Board shall turn over the affairs of the Associa-
tion to the regular Board so chosen or appointed. 
"(5) The directors appointed by the President shall serve at the 
pleasure of the President and until their successors have been appointed 
and have qualified. The remaining directors shall each be elected for a 
term ending on the date of the next annual meeting of the common 
stockholders of the Association, and shall serve until their successors 
have been elected and have qualified. Any appointive seat on the Board 
which becomes vacant shall be filled by appointment of the President. 
Any elective seat on the Board which becomes vacant after the annual 
election of the directors shall be filled by the Boar-d, but only for the 
unexpired portion of the term. 
"(6) The Board of Directors shall meet at the call of its Chairman, 
but at least semiannually. The Board shall determine the general poli-
cies which shall govern the operations of the Association. The Chair-
man of the Board shall, with the approval of the Board, select, appoint, 
and compensate qualified persons to fill the offices as may be provided 
for in the bylaws, with such executive functions, powers, and duties 
as may be prescribed by the bylaws or by the Board of Directors, and 
such persons shall be the executive officers of the Association and shall 
discharge all such executive functions, powers, and duties. 
"(d) (1) The Association is authorized, subject to the provisions of 
this section, pursuant to commitments or otherwise, to make advances 
on the security of, purchase, service, sell, or otherwise deal in, at prices 
and on terms and conditions determined by the Association, student 
loans which are insured by the Commissioner under this part or by 
a State or nonprofit private institution or organization with which the 
Commissioner has an agreement under section 428 (b). 
"(2) Any warehousing advance made under paragraph (1) of this 
subsectiicm shall not exceed 80 per centum of the face amount of an 
insured loan. The proceeds from any such advance shall be invested 
in additional insured student loans. 
"(e) The Association, pursuant to such criteria as the Board of 
Directors may prescribe, shall make advances on security or purchase 
student loans pursuant to subsection (d) only after the Association is 
assured that the lender (A) does not discriminate by pattern or practice 
against any particular class or category of students by requiring that, 
as a condition to the receipt of a loan, the student or his family main-
tain a business relationship with the lender, except that this clause 
shall not apply in the case of a loan made by a credit union, savings and 
loan association, mutual savings bank, institution of higher education 
or any other lender with less than $50,000,000 in deposits, and (B) does 
not discriminate on the basis of race, sex, color, creed, or national 
origin. 
86 
STAT.] 
PUBLIC LAW 92-318-JUNE 23, 1972 
267 
"(f)(1) The Association shall have conmioii stock haviii«i' a par 
value of $100 per share \Yhich may be issued only to lenders under this 
part, pertaining to guaranteed student loans, who are qualified as 
insured lenders under this part or who are eligible institutions as 
defined in section 435(a) (other than an institution outside the United 
States). 
"(2) Each share of common stock shall be entitled to one vote with 
rights of cumulative voting at all elections of directors. Voting shall be 
by classes as described in subsection (c) (3). 
"(3) The common stock of the Association shall be transferable 
only as may be prescribed by regulations of the Secretary of Health. 
Education, and Welfare, and, as to the Association, only on the books 
of the Association. The Secretary of Health, Education, and Welfare 
shall prescribe the maximum number of shares of common stock the 
Association may issue and have outstanding at any one time. 
"(4) To the extent that net income is earned and realized, subject 
to subsection (g) (2), dividends may be declared on common stock by 
the Board of Directors. Such dividends as may be declared by the 
Board shall be paid to the holders of outstanding shares of common 
stock, except that no such dividends shall be payable with respect to 
any share which has been called for redemption past the effective date 
of such call. 
"(g)(1) The Association is authorized, with the approval of the 
Secretary of Health, Education, and Welfare, to issue nonvoting pre-
ferred stock with a par value of $100 per share. Any preferred share 
issued shall be freely transferable, except that, as to tiie Association, 
it shall be transferred only on the books of the Association. 
"(2) The holders of the preferred shares shall be entitled to such 
rate of cumulative dividends and such shares shall be subject to such 
redemption or other conversion provisions, as may be provided for 
at the time of issuance. No dividends shall be payable on any share 
of common stock at any time when any dividend is due on any sliare 
of preferred stock and has not been paid. 
"(3) In the event of any liquid'ation, dissolution, or winding up of 
the Association's business, the holders of the preferred shares shall be 
paid in full at par value thereof, plus all accrued dividends, before 
the holders of the common shares receive any payment. 
"(h)(1) The Association is authorized with the approval of the 
Secretary of Health, Education, and Welfare and the Secretary of the 
Treasury to issue and have outstanding obligations having such 
maturities and bearing such rate or rates of interest as may be deter-
mined by the Association. Such obligations may be redeemable at the 
option of the Association before maturity in such manner as may be 
stipulated therein. 
" (2) The Secretary of Health, Education, and Welfare is authorized, 
prior to July 1,1982, to guarantee payment when due of principal and 
interest on obligations issued by the Association in an aggregate 
amount determined by the Secretary in consultation with the Secre-
tary of the Treasury. 
"(3) To enable the Secretary of Health, Education, and Welfare 
to discharge his responsibilities under guarantees issued by him, he is 
authorized to issue to the Secretary of the Treasury notes or other 
obligations in such forms and denominations, bearing such maturities, 
and subject to such terms and conditions, as may be prescribed by 
the Secretary of Health, Education, and Welfare with the approval 
of the Secretary of the Treasury. Such notes or other obligations shall 
bear interest at a rate determined by the Secretary of the Treasury, 
Common stock 
issuance. 
82 Stat. 1023. 
20 u s e 1085. 
Nonvoting pre-
ferred stock, 
issuance. 
Outstanding 
obligations. 
268 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
40 Stat. 288. 
31 u s e 774. 
Appropriation. 
Association 
powers. 
Annual audit. 
taking into consideration the current average market yield on outstand-
ing marketable obligations of the United States of comparable matur-
ities during the months preceding the issuance of the notes or other 
obligations. The Secretary of the Treasury is authorized and directed 
to purchase any notes and other obligations issued hereunder and for 
that purpose he is authorized to use as a public debt transaction the 
proceeds from the sale of any securities issued under the Second Lib-
erty Bond Act, as amended, and the purposes for which securities 
may be issued under that Act, as amended, are extended to include 
any purchase of such notes and obligations. The Secretary of the 
Treasury may at any time sell any of the notes or other obligations 
acquired by him under this subsection. All redemptions, purchases, 
and sales by the Secretary of the Treasury of such notes or other 
obligations shall be treated as public debt transactions of the United 
States. There is authorized to be appropriated to the Secretary of 
Health, Education, and Welfare such sums as may be necessary to 
pay the principal and interest on the notes or obligations issued by 
liim to the Secretary of the Treasury. 
•' (i) The Association shall have power— 
"(1) to sue and be sued, complain and defend, in its corporate 
name and through its own counsel; 
"(2) to adopt, alter, and use the corporate seal, which shall be 
judicially noticed; 
"(3) to adopt, amend, and repeal by its Board of Directors, 
bylaws, rules, and regulations as may be necessary for the conduct 
of its business; 
"(4) to conduct its business, carry on its operations, and have 
officers and exercise the power granted by this section in any State 
without regard to any qualification or similar statute in any State; 
" (5) to lease, purchase, or otherwise acquire, own, hold, improve. 
use, or otherwise deal in and with any property, real, personal, or 
mixed, or any interest therein, wherever situated; 
" (6) to accept gifts or donations of services, or of property, real, 
personal, or mixed, tangible or intangible, in aid of any of the 
purposes of the Association; 
"(7) to sell, convey, mortgage, pledge, lease, exchange, and 
otherwise dispose of its property and assets; 
" (8) to appoint such officers, attorneys, employees, and agents as 
may be required, to determine their qualifications, to define their 
duties, to fix their salaries, require bonds for them and fix the 
penalty thereof; and 
"(9) to enter into contracts, to execute instruments, to incur 
liabilities, and to do all things as are necessary or incidental to the 
proper management of its affairs and the proper conduct of its 
business, 
"(j) The accounts of the Association shall be audited annually. 
Such audits shall be conducted in accordance with generally accepted 
auditing standards by independent certified public accountants or by 
independent licensed public accountants, licensed on or before Decem-
ber 31,1970, who are certified or licensed by a regulatory authority of a 
State or other political subdivision of the United States, except that 
independent public accountants licensed to practice by such regulatory 
authority after December 31, 1970, and persons who, although not so 
certified or licensed, meet, in the opinion of the Secretary, standards 
of education and experience representative of the highest standards 
prescribed by the licensing authorities of the several States which pro-
vide for the continuing licensing of public accountants and which are 
prescribed by the Secretary in appropriate regulations may perform 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
269 
sucli audits until December 31, 1975. A report of each such audit 
shall be furnished to the Secretary of the Treasury. The audit shall 
be conducted at the place or places where the accounts are normally 
kept. The representatives of the Secretary shall have access to all 
books, accounts, financial records, reports, files, and all other papers, 
things, or property belonging to or in use by the Association and nec-
essary to facilitate the audit, and they shall be afforded full facilities 
for vei'ifying transactions with the balances or securities held by 
depositaries, fiscal agents, and custodians. 
"(k) A report of each such audit for a fiscal year shall be made by 
rhe Secretary of the Treasury to the President and to the Congress not 
later than six months following the close of such fiscal year. The report 
shall set forth the scope of the audit and shall include a statement 
(showing intercorporate relations) of assets and liabilities, capital and 
>urplr.s or deficit; a statement of surplus or deficit analysis; a state-
ment of income and expense; a statement of sources and application of 
funds; and such comments and information as may be deemed neces-
sary to keep the President and the Congress informed of the operations 
and financial condition of the Association, together with such recom-
mendations with respect thereto as the Secretary may deem advisable, 
including a report of any impairment of capital or lack of sufficient 
capital noted in the audit. A copy of each repor-t shall be furnished to 
the Secretai'v of Health. Education, and Welfare and to the 
Association. 
'
•
* (1) All obligations issued by the Association shall be lawful invest-
ments, and may be accepted as security for all fiduciaiy, trust, and 
public funds, the investment or deposit of which shall be under author-
ity or control of the United States or of any officer or ofRcei*s thereof. 
All stock and obligations issued by the Association pursuant to this 
section shall be deemed to be exempt securities within the meaning of 
laws administered by the Securities and Exchange Commission, to 
the same extent as securities which are direct obligations of. or obliga-
tions guaranteed as to principal or interest by, the United States. The 
Association shall, for the purposes of section 14(b) (2) of the Federal 
Reserve Act, be deemed to be an agency of the LTnited States. 
" (m) In order to furnish obligations for delivery by the Association, 
the Secretary of the Treasury is authorized to prepare such obligations 
in such form as the Board of Directors may approA^e, such obligations 
when prepared to be held in the Treasury subject to delivei-y upon 
•irder by the Association. The engraved plates, dies, bed j^ieces. and so 
forth, executed in connection therewith shall remain in the custody 
of the Secretary of the Treasury. The Association shall reimburse the 
.Secretary of the Treasury for any expenditures made in the prepara-
tion, custody, and delivery of such obligations. 
"(n) The Association shall, as soon as practicable after the end of 
each fiscal year, transmit to the President and tlie Congress a report of 
its operations and activities during each year.''. 
(b) If any provision of the amendment made by subsection (a) of 
this section or the application thereof to any person or circumstance 
is held invalid, the validity of the remainder of the amendment, and 
the application of such provisions to other i)ersons or circumstances, 
shall not be affected. 
(c) (1) The sixth sentence of the seventh paragraph of section 513f) 
of the Revised Statutes, as amended (12 L^.S.C. 24), is amended by 
inserting "or obligations or other instruments or securities of the 
Student Loan Marketing Association," immediately after "or obli-
gations, participation, or other instruments of or issued by the Federal 
Xational Mortgage Association or the Government National Mortgage 
Association,''. 
Report to 
Treasury. 
Reports to 
President and 
Congress. 
Lawful invest-
ments. 
80 Stat. 825. 
12 u s e 355. 
Preparation and 
delivery. 
Reimbursement. 
Report to Presi-
dent and Con-
gress. 
Separability. 
270 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
(2) Section 5200 of the Revised Statutes, as amended (12 U.S.C. 
84), is amended by adding at the end thereof the following new 
paragraph: 
"(14) Obligations of the Student Loan Marketing Association shall 
not 'be subject to any limitation based upon such capital and surplus.". 
(3) The first paragraph of section 5(c) of the Home Owners' Loan 
82'stat! s/s'leos. M «* 1^^^ (12 U.S.C. 1464(c)), is amended by inserting "or in obli-
^tions or other instruments or securities of the Student Loan Market-
ing Association;'' in the second proviso immediately after "any 
political subdivision thereof'. 
(4) Section 8(8) (E) of the Federal Credit Union Act, amended (12 
si^staK \'io^^' 
U.S.C. 1Y57(8) ( E ) ) , is amended by inserting before the semicolon at 
85 Stat. 545! 
the end thereof the following: "or in obligations or other insti'uments 
or securities of the Student Loan Marketing: Association''. 
EXTENSION OF T H E EMERGENCY INSURED STUDENT U)AN AC"r OF 1 9()9 
SEC. 134. (a) Section 2(a)(7) of the Emergency Insured Student 
20us^ciV78a 
^^°^" ^^^^ ^^ ^^^^ ^^ amended by striking out "July 1. 1971'' and 
inserting in lieu thereof "July 1,1974". 
Effective date. 
(^j^^ 'pj-^g amendment made bv subsection (a) shall be effective on 
andafterJuly 1,1971. 
STATEMENT OF PURPOSE OF T H E WORK-STUDY PROGRAM 
42us^c27'5f' 
^^^' 1^^- Section 441(a) of the Higher Education Act of 1965 is 
and note. 
amended by striking out "from low^-income families"' and inserting in 
lieu thereof "with great financial need''. 
EXTENSION OF COLLEGE WORK-SIT'DY 
P R ( H ; R A M 
83 Stat. 143. 
Effective date. 
SEC. 135A. (a) Section 441(b) of the Higher Education Act of 
1965 is amended by striking out the word "and" after "June 30,1970," 
and by adding after "June 30, 1971," the following: "$330,000,000 for 
the fiscal year ending June 30, 1972, $360,000,000 for the fiscal year 
ending June 30, 1973, $390,000,000 for the fiscal year ending June 30, 
1974, and $420,000,000 for the fiscal year ending June 30, 1975,''. 
(b) The amendment made bv subsection (a) shall be effective aftei' 
June 30,1971. 
ALLOTMENTS FOR WORK-STUDY 
PROGRAM 
SEC. 135B. (a) (1). The first sentence of section 442(a) of the High-
8/513^*726^'*' 
^^ Education Act of 1965 is amended by striking out "The remainder" 
82 Stat! 1028, 
and inserting in lieu thereof "Ninety per centum of the remainder". 
1029. 
(2) Subsections (c), (d), and (e) of such section are redesignated 
as subsections (d), (e), and (f), respectively, and such section is 
amended by inserting after subsection (b) the following new sub-
section : 
"(c) Sums remaining after making the allotments provided for in 
other provisions of this section shall be allotted among the States by 
the Commissioner in accordance with equitable ciiteria established 
by him which shall be designed to achieve a distribution of the sums 
appropriated to carry out this part among the States which will most 
effectively carry out the purpose of this part, except that where a 
State's allotment under subsection (b) for a fiscal year is less than its 
allotment under that subsection for the fiscal year ending June 30, 
1972, before he makes any other allotments under this subsection, the 
Commissioner shall allot sufficient additional sums to such State under 
1029. 
42 u s e 2754 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
271 
this sentence to make the State's allotment for that year under- sub-
section (b) equal to its allotment under such subsection for the fiscal 
year ending June 30, 1972. Sums allotted to a State under this sub-
section shall be consolidated with, and become a part of, its allotment 
from the same appropriation under subsection (b),*'. 
• 
WORK-STUDY PROGRAM 
SELECTION OF 
STUDENTS 
SEC. 135C. (a)(1) Clause (3) (A) of section 4M(a) of the Higher 
Education Act of 1965 is amended by inserting immediately after 
^^82 stat. 1028, 
"such institution"" the following: " (taking into consideration the actual 
tost of attendance at such institution)". 
and note. 
(2) The amendment made by subsection (a) shall be effective on 
Effective date. 
and after July 1, 1971, with respect to appropriations for fiscal years 
lieginning on and after July 1,1971. 
AUTHORIZING PARTICIPATION OF HALF-TIME STUDENTS IN 
WORK-STUDY PROGRAM 
SEC. 1351). Section 444(a) (3) (C) of the Higher Education Act of 
1965 is amended (1) by striking out "full time" both times it appeare, 
and (2) by inserting after "student at the institution" and after 
'•attendance there" the following: "on at least a half-time basis". 
CONDITIONS o r 
A G R E E M E N T 
SEC. 135E. (a) Section 444(a) (3) of the Higher Education Act of 
1965 is amended (1) by striking out "from low-income families"' and 
inserting in lieu thereof the following: "with the greatest financial 
need, taking into account grant assistance provided such student from 
any public or private sources", and (2) by amending clause (B) to 
read as follows: "(B) shows evidence of academic or creative promise 
and capability of maintaining good standing in such course of study 
while employed under the program covered by the agreement, and". 
(b) Section 444(a) of such Act is amended by striking out clause 
WORK-SIT'DY FOR COMMUNITY SERVICE LEARNING PROGRAM 
SEC. 135F. Part C of title IV of the Higher Education Act of 1965 
42 use 2751. 
is amended by adding at the end thereof the following new section: 
" W O R K - S T U D Y 
F O R COMMUNITY SERVICE LEARNING PROGRAM 
"SE( . 447. (a) The purpose of this section is to enable students in 
(eligible institutions who are in need of additional financial support to 
attend institutions of higher education, with preference given to vet-
erans who served in the Armed Forces in Indochina or Korea after 
August 5, 1964, to obtain earnings from employment which offers the 
maximum potential both for effective service to the community and for 
enhancement of the educational development of such students. 
"(b) There are authorized to be appropriated $25,000,000 for the 
Appropriation. 
fiscal year ending June 30,1972, and $50,000,000 each succeeding fiscal 
year ending prior to July 1, 1975, to carry out this section through 
local project grants, without regard to the pi-ovisions of section 442. 
^"'®' P- 270. 
"(c) The (Commissioner is authorized to enter into agreements with 
Non-profit 
public or private nonprofit agencies under which the Commissioner 
will make grants to such agencies to pay the compensation of students 
who are employed by such agencies in jobs providing needed com-
munity services and which are of educational value. 
Ante, 
p. 271, 
service. 
272 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
"(d) An agreement entered into under subsection (c) above shall— 
"(1) provide for the part-time employment of college students 
in projects designed to improve community services or solve par-
ticular problems in the community; 
"(2) provide assurances that preference will be given to vet-
erans who served in the Armed Forces in Indochina or Korea 
after August 5, 1964, in recruiting students in eligible institu-
tions for jobs under this section, and that the agency, in coopera-
tion with the institution of higher education which the student 
attends, will make an effort to relate the projects performed by 
students to their general academic program and to a comprehen-
sive program for college student services to the community; 
"(3) conform with the provisions of clauses (1) (A), 
(1) (B) 
102^9^*°*' ^°^^' 
^^^ ^^^ ^^) ^^ section 444(a), and provide for the selection of 
42 use 2754 
studcuts who meet the requirements of clauses (3) (A), (3) (B) 
«"^ji°te^ 071 
^^^ (^) (C) of section 444(a); and 
"(4) include such other provisions as the Commissioner shall 
deem necessary or appropriate to carry out the purposes of this 
section, including provisions for oversight by the institution of 
higher education which the student participating in such a pro-
gram attends. 
erwcr"^""^*^ 
" (^) ^^^ purposes of this section, the term 'community service-
includes, but is not limited to, work in such fields as environmental 
([uality, health care, education, welfare, public safety, crime prevention 
and control, transportation, recreation, housing and neighborhood 
improvement, rural development, conservation, beautification, and 
other fields of human betterment and community improvement.". 
COOPERATIVE EDUCATION 
SEC. 136. (a) (1) Section 451(a) of the Higher Education Act of 
1965 is amended by striking out "the fiscal year ending June 30,1971" 
and inserting in lieu thereof "each of the succeeding fiscal years ending 
prior to July 1,1975". 
(2) Section 451(b) of such Act is amended by striking out "two 
succeeding fiscal years" and inserting in lieu thereof "succeeding fiscal 
vears ending prior to July 1,1975". 
(b)(1) Section 451(1)) of the Higher Education Act of 1965 is 
amended by inserting after "training" the following: ", demonstra-
tion,". 
20 use 1087c. 
^2) Section 453 of such Act is amended by inserting immediately 
before "or for research" the following: "for projects demonstrating 
or exploring the feasibilit}^ or value of innovative methods of coopera-
tive education,". 
(c) The amendments made by subsection (a) shall be effective after 
June 30,1971. 
DIRECT LOANS TO STUDENTS I N INSTITUTIONS OF HIGHER EDUCATION 
82 Stat. 1031. 
20 u s e 1087a. 
Effective date. 
83 Stat. 143. 
20 u s e 421. 
Effective date. 
SEC. 137. (a) (1) Section 201 of the National Defense Education Act 
of 1958, is amended by inserting "each" after "$375,000,000", and by 
inserting after "June 30,1971," the following: "and for the fiscal year 
ending June 30,1972,". 
(2) The amendments made by paragraph (1) shall be effective after 
.rune 30, 1971. 
(b) Title IV of the Higher Education Act of 1965 is amended by 
82 Stat. 1030, 
striking out part F. Part E and sections 461, 462, 463, 464, and 469 
^°2o use 1088- 
of such title IV, and all references thereto are redesignated as part F 
1089. 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
273 
and sections 491, 492, 493, 494, and 499, respectively. Such title IV is 
further amended by insertina: after part D the folio 
wing- new parts: 
82 stat. 1031. 
•
^ 
*
= 
^ 
*
= 
-
^ 
20 use 1087a. 
''PART E—DIRECT LOANS TO STIDEXTS ix IXSTITT'TTOXS OF HIGHER 
EDUCATION 
u 
APPROPRIATIOXS AUTHORIZED 
"SEC. 461. (a) The Commissioner shall carry out a program of stimu-
lating and assisting in the establishment and maintenance of funds at 
institutions of higher education for the making of low-interest loans to 
students in need thereof to pui^ue their courses of study in such insti-
tutions. 
"(b)(1) For the purpose of enabling the Commissioner to make con-
tributions to student loan funds established under this part, there are 
hereby authorized to be appropriated $375,000,000 for the fiscal year 
ending June 30, 1972, and $400,000,000 for the fiscal year ending June 
30, 1973, and for each of the succeeding fiscal years ending prior to 
July 1,1975. 
"(2) In addition there are hereby authorized to be appropriated 
such sums for the fiscal year ending June 30, 1976, and each of the 
three succeeding fiscal years as may be necessary to enable students 
who have received loans for academic years ending prior to July i, 
1975, to continue or complete courses of study. 
"(c) Any sums appropriated pursuant to subsection (b) for any 
fiscal year shall be available for apportionment pursuant to section 
462 and for payments of Federal capital contributions therefrom to 
institutions of higher education which have agreements with the Com-
missioner under section 463. Such Federal capital contributions and 
all contributions from such institutions shall be used for the establish-
ment, expansion, and maintenance of student loan funds. 
u 
APPORTIONMEXT OF APPR0PRLA.TI0XS 
"SEC. 462. (a) (1) From 90 per centum of the sums appropriated 
pursuant to section 461(b) (1) for any fiscal year, the Commissioner 
shall apportion to each State an amount which bears the same ratio 
to the amount so appropriated as the number of persons enrolled on 
- ;,i . i 
a full-time basis in institutions of higher education, as determined 
by the Commissioner for the most recent year for which satisfactory 
data are available to him, in Such State, bears to the total number 
of persons so enrolled in all the States. The remainder of the sums 
so appropriated shall be apportioned among the States by the Com-
missioner in accordance with equitable criteria which he shall establish 
and which shall be designed to achieve a distribution of the sums 
so appropriated among the States which will most effectively carry 
out the purpose of this part, except that where any State's apportion-
ment under the first sentence for a fiscal year is less than its allotment 
under section 202(a) of the National Defense Education Act of 1958 g/stal^'ioa?^' 
for the fiscal year ending June 30, 1972, before he makes any other 
20 use 422. 
apportionments under this sentence, the Commissioner shall appor-
tion sufficient additional sums to such State under this sentence to 
make the State's apportionment for that year under this paragraph 
equal to its allotment for the fiscal year ending June 30, 1972, under 
such section 202(a). Sums apportioned to a State under the preceding 
sentence shall be consolidated with, and become a part of, its appor-
tionment from the same appropriation under the first sentence of this 
paragraph. 
274 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
"(2) Any sums appropriated pursuant to section 461(b) (2) for any 
fiscal year shall be apportioned among institutions of higher education 
in such a. manner as tlie Commissioner determines will best accomplish 
the purpose for which they were appropriated. 
Application. 
^ (h) (1) Any institution of higher education desiring to receive pay-
ments of Federal capital contributions from the apportionment of the 
State in which it is located for any fiscal year shall make an agree-
ment under section 463 and shall submit an application therefor to 
the Commissioner, in accordance with the provisions of this part. The 
Commissioner shall, from time to time, set dates before which such 
institutions must file applications under this section. 
"(2) The Commissioner shall pay to each applicant under this sub-
section which has an agreement with him under section 463, from 
the amount apportioned to the State in which it is located, the amount 
requested in such application. Such payment may be made in such 
installments as the Commissioner determines will not result in unnec-
essary accumulations of capital in the student loan fund of the appli-
cant established under its agreement under section 463. 
''(c)(1)(A) If the total amount of Federal capital contributions 
requested in the applications from a State for any fiscal year exceeds 
the amount apportioned to that State, the request from each institu-
tion shall be reduced ratably. 
"(B) In case additional amounts become available for payments to 
student loan funds in a State in which requests have been ratably 
reduced under subparagraph (A), such requests shall be increased 
on the same basis as they were reduced, except that no request shall 
be increased above the request submitted under subsection (b) (1). 
"(2) If the amount of an ap^wrtionment to "a State for any fiscal 
year exceeds the total amount of Federal capital contributions 
requested in applications from tliat State, such excess shall be avail-
able for reapportionment from time to time on such date or dates as 
the Commissioner shall fix. From the aggregate of such excess for any 
dscal year, the Commissioner shall reapportion to each State in which 
requests were reduced under subparagraph (A) of paragraph (1) 
an amount which bears the same ratio to such aggregate as the total 
amount of such reduction in that State bears to the total amount of 
such reductions in all the States. 
Limitation. 
" (d) The aggregate of the amounts of Federal capital contributions 
paid under this section for any fiscal year to proprietary institutions of 
higher education may not exceed the amount by which the sums 
appropriated pursuant to section 461(b)(1) for that fiscal year 
exceed $190,000,000. 
"AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION 
"SEC. 463. (a) An agreement with any institution of higher educa-
tion for the payment of Federal capital contributions under this part 
shall— 
" (1) provide for the establishment and maintenance of a student 
loan fund for the purposes of this part; 
"(2) provide for the deposit in such fund of— 
"(A) the Federal capital contributions, 
"(B) a capital contribution by such institution in an 
amount equal to not less than one-ninth of the amount of such 
Federal contributions, 
"(C) collections of principal and interest on student loans 
made from such fund, 
"(D) charges collected pursuant to regulations under sec-
tion 464(c) (1) (G), and 
Post, 
p. 278. 
86 STAT.] 
PUBLIC LAW 9 2 - 3 1 8 - J U N E 23, 1972 
/; 
275 
"(E) iiiiy otJiei- earnings of the funds; 
"(o) provide that such student loan fund shall be used only for— 
•"(A) loans to students, in accordance with the provisions 
of this part, 
"(B) administrative expenses, as provided in subsection 
• 
^^)' 
. . . 
"(C) capital distributions, as provided m section 466, and 
•'(D) costs of litigation, and other collection costs agreed 
to by the Commissioner in connection with the collection of 
a loan from the fund (and interest thereon) or a charge 
assessed pursuant to regulations under section 461 (c) (1) (G); 
"(4) provide that where a note or written agreement evidenc-
ing a loan has been in default for at least 2 years despite due dili-
gence on the part of the institution in making collection thereon, 
the institution may assign its rights under such note or agree-
ment to the United States, without recompense, and that in that 
event any sums collected on such a loan shall be deposited in the 
general fund of the Treasury; and 
"(5) include such other provisions as may be necessary to pro-
tect the financial interest of the United States and promote the 
purposes of this part as are agreed to by the Commissioner and 
the institution. 
"(b) An institution which has entered into an agreement under sub-
section (a) shall be entitled, for each fiscal year during which it makes 
student loans from a student loan fund established under such agree-
ment, to a payment in lieu of reimbursement for its expenses in admin-
istering its student loan program under this part during such year. 
Such payment shall be made in accordance with section 498. 
Ante, p. 272. 
"TERMS OF LOAXS 
"SP:C. 464. (a)(1) Loans from any student loan fund established 
pursuant to an agreement under section 468 to any student by any 
institution shall, subject to such conditions, limitations, and require-
ments as the Commissioner shall prescribe by regulation, be made on 
such terms and conditions as the institution may determine. 
"(2) The aggregate of the loans for all years made by institutions of 
higher education from loan funds established pursuant to agreements 
under this part may not exceed— 
" (A) $10,000 in the case of any graduate or professional student 
(as defined by regulations of the Commissioner, and including any 
loans from such funds made to such person before he became a 
graduate or professional student) ; 
"(B) $5,000 in the case of a student who has successfully com-
pleted two years of a program of education leading to a bachelor's 
degree, but who has not completed the work necessary for such a 
degree (determined under regulations of the Commissioner, and 
including any loans from such funds made to such pei'son before 
he became such a student) ; and 
"(C) $2,500 in the case of any other student. 
"(3) Regulations of the Commissioner under paragraph (1) shall be 
designed to prevent the impairment of the capital of student loan funds 
to the maximum extent practicable and with a view toward the objec-
tive of enabling the student to complete his coui-se of study. 
" (b) A loan from a student loan fund assisted under this par-t may be 
made only to a student who— 
"(1) is in need of the amount of the loan to pursue a course of 
study at such institution: 
276 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
''('2) is capable, in the opinion of the institution, of maintainino-
good standing in such course of study; 
"(3) has been accepted for enrollment as an undergraduate, 
graduate, or professional student in such institution, or, in the case 
of a student already in attendance at such institution, is in good 
standing; and 
" (4) is carrying at least one-half the normal academic AA'orkload, 
as determined by the institution. 
Ill an}' case.in which a student has been determined to be eligible for a 
loan under the preceding sentence, and such student thereafter fails to 
maintain good standing, the eligibility of such student shall, upon 
notice to the Commissioner, be suspended, and further payments to, or 
on behalf of. such student shall not be made until such student regains 
good standing. 
"'(c)(1) Any agreement between an institution and a student for 
:i loan from a student loan fund assisted under this part— 
"(A) shall be evidenced by note or other written instnunent 
which, except as provided in paragraph (2), provides for repay-
ment of the principal amount of the loan, together with interest 
thereon, in equal installments (or, if the borrower so requests, in 
graduated periodic installments determined in accordance with 
such schedules as may be approved by the Commissioner) payable 
quarterly, bimonthly, or monthly, at the option of the institution, 
over a period beginning nine months after the date on which the 
student ceases to carry, at an institution of higher education or a 
comparable institution outside the United States approved for this 
purpose by the Commissioner, at least one-half the normal full-
time academic workload, and ending ten yeai-s and nine months 
after such date; 
"(B) shall include provision for acceleration of repayment of 
the whole, or any part, of such loan, at the option of the borrower; 
"(C) may provide, at the option.of the institution in accordance 
with regulations of the Commissioner, that during the repayment 
period of the loan, payments of principal and interest by the bor-
rower with respect to all outstanding loans made to him from 
student loan funds assisted under this part shall be at a rate equal 
to not less than $30 per month; 
"(D) shall provide that the loan shall bear interest, on the 
unpaid balance of the loan, at the rate of 3 per centum per annum, 
except that no interest shall accrue (i) prior to the beginning date 
of repayment determined under clause (A) (i) or (ii) during any 
l)eriod in which repayment is suspended bv reason of paragraph 
(2); 
"(E) unless the borrower is a minor and the note or other evi-
dence of obligation executed by him would not, under applicable 
law, create a binding obligation, shall provide that the loan shall 
be made Avithout security and without endorsement; 
"(F) shall provide that no note or evidence of obligation may 
be assigned by the lender, except upon the transfer of the borroAver 
to another institution participating under this part (or, if not so 
participating, is eligible to do so and is approved by the Commis-
sioner for such purpose), to such institution; and 
"(G) may, pursuant to regulations of the Commissioner, provide 
for an assessment of a charge with respect to the loan for failure of 
the borrower (i) to pay all or part of an installment when it is due 
or (ii) to file timely and satisfactory evidence of an entitlement of 
the borrower to a deferment of repayment benefit or a cancellation 
benefit provided under this part. 
86 STAT.] 
PUBLIC LAW 92-318-JUNE 23, 1972 
277 
" (2) (A) No repayment of principal of, or interest on, any loan from 
a student loan fund assisted under this part shall be required during 
any period in which the borrower— 
"(i) is carrying at least one-half the normal full-time academic 
workload at an institution of higher education or at a comparable 
institution outside the United States which is approved for this 
purpose by the Commissioner; 
"(ii) is a member of the Armed Forces of the United States; 
"(iii) is in service as a volunteer under the Peace Corps Act; or 
"(iv) is in service as a volunteer under title VIII of the 
Economic Opportunity Act of 1964. 
The period during which repayment may be deferred by reason of 
clause (ii), (iii), or (iv) shall not exceed three years. 
"(B) Any period during which repayment is deferred under sub-
paragraph (A) shall not be included in computing the ten-year maxi-
mum period provided for in clause (A) of paragraph (1). 
"(3) The Commissioner is authorized, when good cause is shown, to 
extend, in accordance with regulations, the ten-year maximum repay-
ment period provided for in clause (A) of paragraph (1) with respect 
to individual loans. 
••(4) The amount of any charge under clause (G) of paragraph (1) 
shall not exceed— 
" (A) in the case of a loan which is repayable in monthly install-
ments, $1 for the first month or part of a month by which such 
installment or evidence is late and $2 for each such month or part 
of a month thereafter; and 
"(B) in the case of a loan which has a bimonthly oi* quaiterly 
repayment interval, $3 and $6, respectively, for each such interval 
or part thereof by which such installment or evidence is late. 
The institution may elect to add the amount of any such charge to the 
principal amount of the loan as of the fir'st day after the day on whicli 
such installment or evidence was due, or to make the amount of the 
••harge payable to the institution not later than the due date of the 
next installment after receipt by the borrower of notice of the assess-
ment of the charge. 
•'(d) An agreement under this part for payment of Federal capital 
contributions shall include provisions designed to make loans from the 
student loan fund established pursuant to such agreement reasonably 
available (to the extent of the available funds in such fund) to all 
eligible students in such institutions in need thereof. 
"(e) In determining, for purposes of clause (1) of subsection (b) 
of this section, whether a student who is a veteran (as that term is 
tletined in section 101(2) of title 38, Ignited States Code) is in need, 
an institution shall not take into account the income and assets of his 
parents. 
Repayment, 
deferral. 
75 Stat. 612. 
22 u s e 2501 
note. 
81 Stat. 722. 
42 u s e 2991. 
72 Stat. 1106. 
"CAXCELLATIOX OF LOANS FOR CERTAIN PUBLIC SERVICE 
"SEC. 465. (a)(1) The per centum specified in paragraph (3) of this 
.subsection of the total amount of any loan made after June 30, 1972. 
from a student loan fund assisted under this part shall be canceled 
for each complete year of service after such date by the borrower under 
circumstances described in paragraph (2). 
"(2) Loans shall be canceled under paragraph (1) for service— 
" (A) as a full-time teacher for service in an academic year in a 
public or other nonprofit private elementary or secondary school 
which is in the school district of a local educational agency which is 
eligible in such year for assistance pursuant to title I of the Ele-
mentary and Secondary Education Act of 1965, and which for the 
20 u s e 24la 
note. 
278 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
purposes of this paragraph and for that year lias been determined 
by the Commissioner (pursuant to regulations and after consul-
tation with the State educational agency of the State in which the 
school is located) to be a school in which the enrollment of children 
described in clause (A), (B),or (C) of section 103 (a) (2) of title I 
si^stat^'ray^^' 
^^ '^^^ Elementary and Secondary Education Act of 1965 (using 
20 use 241 c. 
'^ 
low-income factor of $3,000) exceeds 30 per centum of the total 
enrollment of that school and such determination shall not be 
made with respect to more than 50 per centum of the total number 
of schools in the State receiving assistance under such title I; 
"(B) as a full-time staif member in a preschool program car-
ried on under section 222(a)(1) of the Economic Opportunity 
8j Stat. 698; 
\ct of 1964 wliich is operated for a period which is comparable 
42 use 2809. 
to a full school year in the locality: Provided, That the salary of 
such staff member is not more than the salary of a comparable 
employee of the local educational agency, or 
''(C) as a full-time teacher of handicapped children in rt public 
or other nonprofit elementary or secondary school system; or 
"(D) as a member of the Armed Forces of the United States, 
for service that qualifies for special pay under section 310 of 
77 Stat. 216; 
title 37, L^uited States C^ode, as an area of hostilities. 
"Handicapped 
t'or the purposes of this paragraph, the term 'handicapped children' 
children." 
meaus children who are mentally retarded, hard of hearing, deaf, 
speech-impaired, visually handicapped, seriously emotionally dis-
turbed, or other health-impaired children who by reason thereof 
require special education. 
^^Loan per cen- 
"(3) (A) The per ceutum of a loan which shall be canceled under 
paragraph (1) of this subsection is— 
•'(i) in the case of service described in clause (A), or (C), of 
paragraph (2), at the rate of 15 per centum for the first or second 
year of such service, 20 per centum foi- the third or fourth year of 
such service, and 30 per centum for the fifth year of such service; 
"(ii) in the case of service described in clause (B) of para-
graph (2) at the rate of 15 per centum for each year of such 
service; 
- 
"(iii) ill the case of service described in clause (D) of para-
graph (2), not to exceed a total of 50 per centum of such loan at 
the rate of 12i/^ per centum for each year of qualifying service. 
'• (B) If a portion of a loan is canceled under this subsection for any 
year, the entire amount of interest on such loan which accrues for such 
year shall be canceled. 
"(C) Nothing in this subsection shall be construed to authorize 
refunding any repayment of a loan. 
"Year." 
"(4) For th© purposes of this subsection^ the term 'year' where 
applied to service as a teacher means academic year as defined by the 
Commissioner. 
"(b) The Commissioner shall pay to each institution for each fiscal 
year an amount equal to the aggregate of the amounts of loans from 
its student loan fund which are canceled pursuant to this section for 
Ante, p. 273. 
such year. Xone of the funds appropriated pursuant to section 461 (b) 
shall be available for payments pursuant to this subsection, 
"DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS 
"SEO. 466. (a) After June 30, 1980, and not later than December 31, 
1980, there shall be a capital distribution of the balance of the student 
loan fund established under this part by each institution of higher 
education as follows: 
"(1) The Commissioner shall first be paid an amount which 
bears the same ratio to the balance in such fund at the close of 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
279 
June :M). IDSO. as tlie total anioiiiit of tlie Fedei'al capital contri-
butions to such fund by the Commissioner under this part bears 
to the sum of such Federal contributions and the institution's 
capital contributions to such fund. 
"(2) The i-emainder of such balance shall be paid to the 
institution. 
•'(b) After December 81, 1980, each institution with which the 
(commissioner has made an agreement under this part, sliall pay to 
the (Commissioner the same pi'oportionate share of amounts received 
by the institution after June 30. 1974, in payment of principal and 
interest on student loans made from the student loan fund established 
pursuant to such agreement (whicli amount shall be determined after 
deduction of any costs of litigation incurred in collection of the 
principal or interest on loans from the fund and not already reimbursed 
from the fund or from such payments of principal or interest), as 
was determined for the Commissioner under subsection (a). 
. , 
''(c) Upon a finding by the institution or- the Commissioner prior- 
~ 
to July 1, 1980, that the liquid assets of a student loan fund established 
pursuant to an agreement under this pari exceed the amount r-equired 
for loans or otherwise in the foreseeable future, and upon notice to 
such institution or to the Commissioner, as the case may be, ther-e shall 
be, subject to such limitations as may be included in r-egulations of 
the Commissioner or in such agreement, a capital distribution from 
such fund. Such capital distribution shall be made as follows: 
"(1) The Commissioner shall first be paid an amount which 
l>ears the same ratio to the total to be distributed as the Federal 
capital contributions by the Commissioner to the student loan 
fund prior to such distribution bear to the sum of such Feder-al 
(•apital contributions and the capital contributions to the fund 
made by the institution. 
"(2) The remainder of the capital distribution shall be paid to 
, 
v >. 
the institution.", 
(c) In the case of a loan made befor-e July 1, 1972, under title II of 
the National Defense Education Act of 1958 not to exceed 50 per 
72 stat. i583; 
centum of such loan (1) shall be canceled for- service by the borrower 
"20 u^c^42i. 
as a full-time teacher in a public or- other nonprofit elementary 
or secondary school in a State, in an institution of higher education, 
. ,.,. 
or in an elementary or- secondary school overseas of the Armed Forces 
of the United States at the rate of 10 per centum of the total amount 
of such loan for each complete academic j^ear of such service, except 
that (A) such rate shall be 15 per centum for- each complete academic 
year of service as a full-time teacher in a public or other nonprofit 
elementary or secondary school which is in the school district of a 
local educational agency which is eligible in such year for assistance 
pirrsuant to title I of the Elementary and Secondary Education Act 
of 1965, as amended, and which for purposes of this paragraph and 
79 stat. 27; 
for that year has been determined by the Commissioner (pur-suant to 
regulations and after consultation with the State educational agency 
of the State in which the school is located) to be a school in which there 
is a high concentration of students from low-income families, except 
that (imless all of the schools so deter-mirred ar-e schools in which the 
enrollment of children described in clause (A), (B), or (C) of section 
i03(a) (2) of such title (using a low-income factor of $3,000) exceeds gi^stawsa^^s?. 
50 per- centum of the total enrollment of the school) the Commissioner 
20 use 24ic. 
shall not make such deter-mination with r-espect to mor-e than 25 per 
centum of the total of the public and other nonpr-ofit elementar-y and 
secondar-y schools in any one State for any one year-, (B) such rate 
82-081 0 - 7 3 - 2 1 
80 Stat. 1198. 
20 u s e 241a 
note. 
280 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
shall be 15 per centum for each complete academic year of service as a 
full-time teacher of handicapped children 
(including mentally 
retarded, hard of hearing, deaf, speech impaired, visually handicapped, 
/ 
seriously emotionally disturbed, or other health impaired children 
who by reason thereof require special education) in a public or other 
nonprofit elementary or secondary school system, and (C) for the 
purposes of any cancellation pursuant to clause (A) or (B), an addi-
tional 50 per centum of any such loan may be canceled, and (2) shall 
be canceled for service by the borrower after June 30, 1970, as a 
member of the Armed Forces of the United States at the rate of 121/2 
per centum of the total amount of such loan for each year of consecu-
tive service, but only if such loan was made after April 13, 1970. 
(d) (1) Upon enactment of this Act, the program authorized by 
part E of title IV of the Higher Education Act of 1965 as added by 
Ante, p. 272. 
subsectiou (b) is, and shall be deemed to be, a continuation of the 
program authorized by title I I of the National Defense Education 
20 u*sc 42f.^' 
Act of 1958. In accordance with regulations of the Commissioner, 
except as provided in subsection (c), all rights, privileges, duties, 
functions, and obligations under such title I I prior to the enactment 
of this Act shall be deemed to be vested, as the Commissioner deter-
mines to be appropriate, under such part E. Any student loan fund 
established under an agreement under such title II shall, in accordance 
with regulations, be deemed to have been established under such part 
E ; and any assets of such student loan fund of any institution shall 
be deemed to be the assets of a student loan fund established under an 
agreement of that institution with the Commissioner under such part E. 
Effective date. 
(£) Upon enactmcut of this Act, title I I of the National Defense 
20 use 426. 
Education Act of 1958 is amended by striking out section 206. 
WAIVER OF MAINTENANCE 
OF EFFORT REQUIREMENTS 
I N CERTAIN 
CASES 
Ante. p. 27 2. 
g^^^ -^gg^ ^^^ Sectiou 494(a) of the Higher Education Act of 1965 
is amended by inserting before the period at the end thereof a comma 
: 
and the following: "except that under special and unusual circum-
- ,::••' 
stances, pursuant to regulations, the Commissioner is authorized to 
''' ' ' ' '"" 
waive the application of any provision of such an agreement which is 
required by this section." 
Effective date. 
(b) ^he amendment made by subsection (a) shall be deemed to be 
effective from the date of enactment of the Higher Education Act 
79 Stat. 1219. 
o f 
1 9 6 5 . 
20 u s e 1001 
„Qjg 
F U R N I S H I N G 
GUIDELINES 
SEC 139. Part F of title IV of the Higher Education Act of 1965 
Ante, p. 27 2. 
-g amended by adding after section 494, as added by this Act, the 
following new section: 
, 
' 
" F U R N I S H I N G GUIDELINES 
" S E C 495. Copies of all rules, regulations, guidelines, instructions, 
and application forms published or promulgated pursuant to this 
title shall be provided to the Committee on Labor and Public Welfare 
of the Senate and the Committee on Education and Labor of the 
House of Representatives at least thirty days prior to their effective 
r 
date.". 
TRANSFER 
OF FUNDS BETWEEN 
PROGRAMS 
SEC. 139A. (a) Part F of title IV of the Higher Education Act of 
Si^ra. 
1965 is further amended by adding after section 495, as added by this 
Act, the following new section: 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
281 
"TRAXSFERS BETWEEN I'RCKiR.VMS 
"SEC. 496. Up to 10 per centum of the allotment of an institution of 
higher education for a fiscal year under section 413D or 442 of this Act, 270"'*' ^^' ^^*' 
may be transferred to, and used for the purposes of, the institution's 
allotment under the other section witiiin the discretion of such 
institution in order to offer an arrangement of types of aid. including 
institutional and State aid, which best fits the needs of each individual 
student. The Commissioner shall have no control over such transfer, 
except as specifically authorized, except for the collection and dissemi-
nation of information.". 
(b) The amendment made by subsection (a) of this section shall 
Effective date. 
l)ecome effective with respect to fiscal years ending after June 80, 1972. 
ELIGIBILITY FOR STUDENT ASSISTANCE 
SEC. 139B. (a) Part F of title IV of the Higher Education Act of 
1965 is further amended by inserting after section 496, the following-
new section: 
"ELIGIBILITY FOR STUDENT 
ASSISTANCE 
"SEC. 497. (a) If an institution of higher education determines, after 
affording notice and opportunity for hearing to an individual attend-
ing, or employed by, such institution, that such individual has been 
convicted by any court of record of any crime which was committed 
after June 30, 1972, and which involved the use of (or assistance to 
others in the use of) force, disruption, or the seizure of property under 
control of any institution of higher education to prevent officials or 
students in such institution from engaging in their duties or pursuing 
their studies, and that such crime was of a serious nature and con-
tributed to a substantial disruption of the administration of the insti-
tution with respect to which such crime Avas committed, then the 
institution which such individual attends, or is employed by, shall deny 
for a period of two yeare any further payment to, or for the direct ben-
efit of, such individual under any of the programs authorized under 
this title. If an institution denies an individual assistance under the 
authority of the preceding sentence of this subsection, then any institu-
tion which such individual subsequently attends shall deny for the 
remainder of the two-year period any further payment to, or for 
the direct benefit of, such individual under any program authorized 
by this title. 
"(b) If an institution of higher education determines, after afford-
ing notice and opportunity for hearing to an individual attending, or 
employed by, such institution, that such individual has willfully 
refused to obey a lawful regulation or order of such institution after 
June 30, 1972, and that such refusal was of a serious nature and con-
tributed to a substantia] disruption of the administration of such 
institution, then such institution shall deny, for a period of two 
years, any further payments to, or for the direct benefit of, such 
individual under any program authorized by this title. 
"(c) (1) Nothing in this section shall be construed to prohibit any 
institution of higher education from refusing to award, continue, or 
extend any financial assistance under this title to any individual 
because of any misconduct which in its judgment bears adversely on 
liis fitness for such assistance. 
"(2) Nothing in this section shall be construed as limiting or 
prejudicing the rights and prerogatives of any institution of higher 
education to institute and carry out an independent, disciplinary pro-
ceeding pursuant to existing authority, practice, and law. 
. 
282 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Repeal. 
82 Stat. 1062. 
20 u s e 1060. 
Ante, 
p. 281. 
Effective date. 
"(3) Nothing in this section shall be construed to limit the free-
dom of any student to verbal expression of individual views or 
opinions.". 
(b) Effective July 1, 1972, section 504 of Public Law 90-575 is 
repealed. 
AFFIDAVIT OF EDUCATIONAL PURPOSE REQUIRED 
SEC. 139C. (a) Part F of title IV of the Higher Education Act of 
1965 is amended by inserting after section 497 the following new 
section: 
" A F F I D A V I T O F EDUCATIONAL PURPOSE REQUIRED 
"SEC. 498. (a) Notwithstanding any other provision of law, no 
grant, loan, or loan guarantee authorized under this title may be made 
unless the student to whom the grant, loan, or loan guarantee is made 
has filed with the institution of higher education which he intends to 
attend, or is attending (or in the case of a loan or loan guarantee with 
the lender), an affidavit stating that the money attributable to such 
grant, loan, or loan guarantee will be used solely for expenses related 
to attendance or continued attendance at such institution. 
"(b) Nothing in this section shall be construed to invalidate any 
loan guarantee made under this title.". 
(b) The amendment made by subsection (a) of this section shall 
become effective after the sixtieth clay after the date of enactment of 
this Act. 
National Com-
mission on the 
Financing of 
Postsecondary 
Education, estab-
lishment. 
Termination. 
STUDY OF T H E FINANCING OF POSTSECONDARY EDUCATION 
SEC 140. (a)(1) It is the purpose of this section to authorize a study 
of the impact of past, present, and anticipated private, local, State, 
and Federal support for postsecondary education, the appropriate role 
for the States in support of higher education (including the applica-
tion of State law upon postsecondary educational opportunities), 
alternative student assistance programs, and the potential Federal, 
State, and private participation in such programs. 
(2) In order to give the States and the Nation the information 
needed to assess the dimensions of, and extent of, the financial crisis 
confronting the Nation's postsecondary institutions such study shall 
determine the need, the desirability, the form, and the level of addi-
tional governmental and private assistance. Such study shall include 
at least (A) an analysis of the existing programs of aid to institutions 
of higher education, various alternative proposals presented to the 
Congress to provide assistance to institutions of higher education, 
as well as other viable alternatives which, in the judgment of the 
Commission, merit inclusion in such a study; (B) the Costs, advantages 
and disadvantages, and the extent to which each proposal would 
preserv^e the diversity and independence of such institutions; and 
(C) the extent to which each would advance the national goal of 
making postsecondary education accessible to all individuals, includ-
ing returning veterans, having the desire and ability to continue their 
education. 
(b)(1) There is hereby established, as an independent agency 
within the executive branch, a National Cominission on the Financing 
of Postsecondary Education (referred to in this section as the 
"Commission"), LTpon the submission of its final report required by 
subsection (d) the Commission shall cease to exist. 
(2) The Department of Health, Education, and Welfare shall pro-
vide the Commission with necessary administrative services (including 
those related to budgeting, accounting, financial reporting, personnel 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
2{J3 
and procurement) for Avhic'li payment shall be made in advance, or 
by reimbursement, from funds of the Commission and such amounts 
as may be agreed upon by the Commission and the Secretary of 
Health, Education, and Welfare. 
(3) The Commission shall have authority to accept in the name of 
the United States, grants, gifts, or bequests of money for immediate 
disbursement in furtherance of the functions of the Commission. Such 
grants, gifts or bequests, after acceptance by the Commission, shall 
be paid by the donor or his representative to the Treasurer of the 
United States whose receipts shall be their acquittance. The Treas-
urer of the United States shall enter them in a special account to the 
credit of the Commission for the purposes in each case specified. 
(c) In conducting such a study, the Commission shall consider— 
(1) the nature and causes of serious financial distress facing 
institutions of postsecondary education; and 
(2) alternative models for the long range solutions to the 
problems of financing postsecondary education with special atten-
tion to the potential Federal, State, local, and private par-
ticipation in such programs, including, at least— 
(A) 
the assessment of previous related private and 
governmental studies and their recommendations; 
(B) existing State and local programs of aid to postsec-
ondary institutions; 
(C) the level of endowment, private sector support and 
other incomes of postsecondary institutions and the feasibil-
ity of Federal and State income tax credits for charitable 
contributions to postsecondary institutions; 
(D) the level of Federal support of postsecondary insti-
tutions through such programs as research grants, and other 
general and categorical programs; 
(E) alternative forms of student assistance, including at 
least loan programs based on income contingent lending, loan 
programs which utilize fixed, graduated repayment sched-
ules, loan programs which provide for cancellation or defer-
ment of all or part of repayment in any given year based on 
a certain level of a borrower's income; and existing student 
assistance programs including those administered |>y the 
Office of Education, the Social Security Administration, the 
Public Health Service, the National Science Foundation, and 
the Veterans Administration; and 
(F) suggested national uniform standards for determin- 
• 
; -
* 
ing the annual per student costs of providing postsecondary 
education for students in attendance at A-arious types and 
classes of institutions of higher education. 
(d) No later than April 30,1973, the Commission shall make a final jent^and cor're^s^s. 
report to the President and Congress on the results of the investigation 
and study authorized by this section, together with such findings and 
recommendations, including recommendations for legislation, as it 
deems appropriate, including suggested national uniform standards 
referred to in subsection (c)(2)(F) and any related recommendations 
for legislation. No later than 60 days after the final report the Com- 
Report to Con-
missioner shall make a report to the Congress commenting on the Com- ^'•^^^• 
mission's suggested national uniform standards, and incorporating 
his recommendations with respect to national uniform standards 
together with any related recommendations for legislation. 
(e) In order to carry out the provisions of this part, the Commission 
is authorized to— 
(1) enter into contracts with institutions of postsecondary edu- ^j^""'"'^''* author-
cation and other appropriate individuals, public agencies and 
private organizations; 
284 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Federal coop-
eration. 
Members. 
(2) appoint and fix the compensation of such personnel as may 
be necessary; 
(3) employ experts and consultants in accordance with section 
80 Stat .416. 
3109 of title 5, United States Code; 
(4) utilize, with their consent, the services, personnel, informa-
tion and facilities of other Federal, State, local, and private agen-
cies with or without reimbursement; and 
(5) consult with the heads of such Federal agencies as it deems 
appropriate. 
(f) (1) The Commission is further authorized to conduct such hear-
ings at such times and places as it deems appropriate for carrying 
out the purposes of this section. 
(2) The heads of all Federal agencies are, to the extent not pro-
hibited by law, directed to cooperate with the Commission in carrying 
out this section. 
(g) (1) The Commission shall be composed of— 
(A) two members of the Senate who shall be members of the 
different political parties and who shall be appointed by the Presi-
dent of the Senate; 
' 
(B) two Members of the House of Representatives who shall be 
members of different political parties and who shall be appointed 
• by the Speaker of the House of Eepresentatives; and 
(C) not to exceed thirteen members appointed by the President 
' 
not later than ninety days after the date of enactment of this Act. 
Such members shall be appointed from— 
(i) members of State and local educational agencies; 
(ii) State and local government officials; 
(iii) education administrators from private and public 
higher education institutions and community colleges; 
(iv) teaching faculty; 
• ' 
(v) financial experts from the private sector; 
(vi) students; 
(vii) the Office of Education; and 
(viii) other appropriate fields. 
(2) The President shall designate one of the members to serve as 
Chairman and one to serve as Vice Chairman of the Commission. 
(3) The majority of the members of the Commission shall constitute 
a quorum, but a lesser number may conduct hearings. 
(4) The terms of office of the appointive members of the Com-
mission shall expire after submission of the final report. 
Appropriation. 
(h) There are hereby authorized to be appropriated $1,500,000 for 
the period beginning on the date of enactment of this Act and ending 
July 1, 1973, for the purpose of carrying out the provisions of this 
section. 
P A R T E — E D U C A T I O N PROFESSIONS DEVELorMENT 
79 Stat. 1254; 
81 Stat. 82. 
2 0 u s e 1091. 
2 0 u s e 1101. 
20 u s e 1091c, 
1108,1118, 
111 9a, 111 9b-2 . 
Effective date. 
EXTENSION OF AUTHORIZATION OF APPROPRIATIONS 
SE€. 141. (a) (1) Title V of the Higher Education Act of 1965 is 
amended— 
(A) in section 511(b), by striking out "for the fiscal year 
ending June 30, 1971" and inserting in lieu thereof "each for the 
fiscal years ending June 30, 1971, and June 30, 1972"; 
(B) in sections 504(b), 518(b), 528, 532, and 543, by striking 
out "July 1, 1971" and inserting in lieu thereof "July 1, 1972" 
in each instance. 
(2) The amendments made by paragraph (1) shall be effective after 
June 30,1971. 
20 use 1091c. 
20 use 1101. 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
.- 
285 
(b) (1) Section 501 of the Higher Education Act of 1965 is amended 
fo S c fo9i. 
!)y inserting " ( a ) " after "SEC. 501." and by adding at the end thereof 
the following new subsection: 
"(b) For the purpose of carrying out the provisions of this title, 
there are authorized to be appropriated $200,000,000 for the fiscal year 
ending June 30, 1973, $300,000,000 for the fiscal year ending June 30, 
1974, and $450,000,000 for the fiscal year ending June 30, 1975, of 
which— 
"(1) not less than $500,000 shall be for the purposes of section 
504; 
"(2) not less than 25 per centum or $37,500,000, whichever i?: 
greater, shall be for the purposes of subpart 1 of part B; 
"(3) not less than 5 per centum shall be for the purposes of pai-t 
r . 
20 use nil. 
" (4) not less than 5 per centum shall be for the purposes of part 
Y). 
2 0 use 1119. 
"(5) not less than 5 per centum shall be for the purposes of part 
^ . 
20 use 1119b. 
" (6) not less than 10 per centum shall be for the purposes of part 
F ; a n d 
20 use in9c. 
" (7) not less than 5 per centum of the amounts available for the 
purposes of part C or part D shall be used for the training of 
teachers for service in programs for children with limited English 
speaking ability.". 
(2) The amendments made by paragraph (1) shall be effective after, 
Effective date. 
;nid only with respect to appropriations for fiscal years beginning after, 
.hme30,1972. 
(c) (1) Effective on and after July 1, 1972, title V of the Higher 
Kducation Act of 1965 is amended by striking out the following 
20 use' fo9i 
provisions: 
(A) Section 502(f); 
20 use 1091a. 
(B) Section 604(b) ; 
(C) Section 511(b) and " ( a ) " where it appears after "SEC. 
20 use 1101. 
oil."* 
(b] 
Section 518(b) and " ( a ) " where it appears after "SEC. 
20 use iios. 
518 "• 
(E) Section 528; 
20 use ins. 
(F) Section 532; 
20 use 1119a. 
(G) Section 543; and 
20useiii9b-2 
(H) Section 555. 
20 use iii9c-4. 
(2) (A) (i) The caption head of section 518 of such title V is 
amended to read as follows: "PROGRAM AUTHORIZED". 
(ii) Such section 518 is amended by striking out "during the fiscal 
year ending June 30, 1969, and the succeeding fiscal year,". 
(B) Effective on and after July 1, 1972, section 519(a) of such 
Effective date. 
title V is amended by striking out that part of the first sentence which 
si stat. ss. 
precedes ", the Commissioner" and inserting in lieu thereof the 
20 use 1109. 
following: "From the amount available for grants under this subpart 
for any fiscal year". 
(3) Section 525(b) of such Act is amended by striking out all that 
^J J'|^- j
i
^
'
^
j
'
^
^
o
-
follows "federally supported programs" and inserting in lieu thereof 
1
1 period. 
(4) The Department of Health, Education, and Welfare shall, 
^^P°'* '° ^°"-
imder the authority of section 401(c) and of part C of the General ^''^^^• 
Education Provisions Act, submit to the Congress an estimate of the 
20 use 1221. 
sums necessary to carry out section 502 of such title V. 
ro^usc /
o
^
9
T
a 
286 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
DELEGATION OF FUNCTIONS OF T H E DIRECTOR OF T H E TEACHER CORPS 
79 Stat. 1255. 
SEC. 142. The third sentence of such section 512 is amended by 
20 use 1102. 
inserting before the period at the end thereof the following: ", except 
that (1) the Commissioner may delegate his functions under this sub-
part only to the Director, and (2) the Director and Deputy Director 
shall not be given any function authorized by law other than that 
granted by this subpart". 
,, 
., ,, 
RETRAINING OF TEACHERS AND EMPLOYMENT OF TUTORS AND 
INSTRUCTIONAL ASSISTANTS 
Ante, p. 285. 
SEC. 143. (a) (1) Sectlou 518 of the Higher Education Act of 1965 is 
amended (1) by striking out "to (1)" and inserting in lieu thereof " (1) 
to", (2) by striking out "and (2) "and inserting in lieu thereof "(2) to", 
and (3) and by adding the following before the period: ", (3) to 
encourage volunteers (including high school and college students) 
for service as part-time tutors or full-time instructional assistants for 
educationally disadvantaged children, (4) to compensate such tutors 
and instructional assistants at such rates as the Commissioner may 
determine to be consistent with prevailing practices under comparable 
federally supported work-study programs, and (5) to provide neces-
sary training to teachers to enable them to teach other grades or other 
subjects in which such agencies have a teacher shortage". 
81 Stat. 87. 
(2) Section 520(a) (2) of such Act is amended (A) by striking out 
20 use 1110. 
"and (C)" and inserting in lieu thereof "(C) programs of such agen-
cies to employ high school and college students as tutors or instruc-
tional assistants for educationally disadvantaged children, 
(D) 
programs of such agencies to compensate such tutors and instructional 
assistants at such rates as the Commissioner may determine to be con-
sistent with prevailing practices under comparable federally supported 
work-study programs, (E) programs of such agencies to provide 
necessary training to teachers to enable them to teach other grades or 
other subjects in which sucli agencies have a teacher shortage, and 
(F)". 
82 Stat. 1039. 
^3^ Sectiou 520(a) (3) of such Act is amended by inserting "or for 
the retraining of teachers" immediately before the semicolon at the 
end thereof. 
Effective date. 
(b) The amendments made by subsection (a) shall be effective after, 
and only wnth respect to appropriations for fiscal years beginning 
after, June 30,1972. 
PROVISION FOR ADMINISTRATIVE EXPENSES FOR OPERATION OF STAl'E PLAN 
SEC. 144. (a) Section 520(a) (2) of the Higher Education Act of 
Supra. 
1965 is amended, in clause (F) thereof, by (1) striking out " 3 " and 
inserting in lieu thereof "5", ana (2) by inserting before the semicolon: 
"or, $20,000, whichever is greater". 
Effective date. 
(b) The amendments made by subsectiou (a) shall be effective after, 
and only with respect to appropriations for fiscal years beginning 
after, June 30,1972. 
ELIMINATION OF CEILING ON EXPENDITURES FOR TEACHING AIDES 
81 Stat. 88; 
SEC. 145. (a) Sectiou 520(a) of the Higher Educatiou Act of 1965 
82 Stat. 103 9. 
-^ amended by striking out clause (5) thereof. Clauses (6) through (9) 
of such section 520(a), and all references thereto, are redesignated as 
clauses (5) through (8),respectively. 
Effective date. 
^|^^ rpj^g amendments made by subsection (a) shall be effective after, 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
and only with resi)ect to api)i'Opiiations for fiscal veais beginning-
after, June 30,1972. 
287 
TRAINIXG FOR TEACHERS AND AIDEKS IN RRIVATE SCHOOl^S 
SEC. 1J:H. (a) Clause (5) of section 520(a) of the Hijrher Education 
Act of 1965 is amended by inseiting "is teaching, or" after "because 
^nte, p. 286. 
he-'. 
(b) The amendment made by subsection (a) shall be effective after, 
and only with respect to appropriations for fiscal year's beginning 
after, June 30,1972. 
Effective date. 
FELLOWSHIPS I N SCHOOL NURSIXG 
SEC. 146. A. Section 521 of the Higher Education Act of 1965 is 
amended by insei-ting "school nursing," after "such as library science,". 
79 Stat. 1258. 
20 use nil. 
LMPROVINO TRAINING PROGRAMS FOR T H E rJ)UCATI0N OF TEACHERS 
AND REI^\TED EDUCATIONAL PERSONNEL 
SEC. 147. (a)(1) Section 531(b) of the Higher Education Act of 
1965 is amended by striking out the period at the end thei-eof and 
inserting in lieu thereof "; and", and by adding at the end thereof the 
following new clause: 
"(11) programs or projects (including cooperative arrange-
ments or consortia between institutions of higher education, junior 
and community colleges, or between such institutions and State 
or local educational agencies and nonprofit education associations) 
for the improvement of undergraduate programs for preparing 
educational personnel, including design, development and evalua-
tion of exemplary undergraduate training progi'ams, introduc-
tion of high quality and more effective curricula and curricular 
materials, and the provision of increased opportunities for prac-
tical teaching experience for pi-ospective teachei-s in elementary 
and secondary schools.". 
(2) Section 531(c) of such Act is amended by striking out the "or" 
at the end of clause (1) and the period at the end of clause (2), by 
inserting a semicolon and "or" at the end of clause (2), and by adding 
the following new clause: 
"(3) projects or programs to improve undergraduate or other 
programs for training educational personnel.". 
(b) The amendments made by subsection (a) shall be eff'ective after, 
and only w^ith respect to appropriations for fiscal years beginning 
after, June 30,1972. 
81 Stat. 91, 820. 
20 u s e 1119. 
Effective date. 
PROGRAMS FOR TEACHERS OF MIGRANT CHILDREN 
SEC. 148. (a)(1) Section 531(b) of the Higher Education Act of 
1965 is further amended by striking out the period at the end of clause 
(11) and inserting in lieu thereof a semicolon and the word "and", and 
by adding at the end thereof the following new clause: 
"(12) programs and projects designed to meet the need for the 
training of teacher's for participation in education programs for 
migratory children of migratory agricultural wor-kers, including 
teacher exchange programs.". 
(2) Section 531 (c) of such Act is amended by striking out "or" at 
the end of clause (2), and inser-ting in lieu ther-eof a semicolon and the 
word "or", and by adding at the end ther-eof the following new 
clause (4) : 
Supra. 
288 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
li^ 
"(4) such activities as may be necessary to carry out the pur-
poses of clause (12) of subsection (b), to the extent that such 
activities are not inconsistent with the other provisions of this 
part.". 
Effective date. 
(b) The amendments made by subsection (a) shall be effective after 
June 30,1972. 
,.Hh •
,
v « -^'^ 
PART F—INSTRUCTIONAL EQUIPMENT 
; ' 
EXTENSION OF AUTHORIZATION OF APPROPRIATIONS 
SEC. 151. (a) Subsections (b) and (c) of section 601 of the Higher 
82'stf/*i'o4i^^* 
Education Act of 1965 are each amended by striking out "two succeed-
2oVsc 1121. 
ing fiscal years" and inserting in lieu thereof "succeeding fiscal years 
ending prior to July 1,1975". 
(b) The amendments made by subsection (a) of this section shall be 
effective after June 30,1971. 
Effective date. 
PART G—ACADEMIC FACILITIES 
TRANSFER OF THE PROVISIONS OF THE HIGHER EDUCATION FACILITIES 
ACT OF 1963 
Infro^'Jli^^^- 
S E C 161. (a) Title VII of the Higher Education Act of 1965 is 
2 0 u s e 716. 
i i i 
1 
P I T 
amended to read as lollows: 
"TITLE VII—COXSTRUCTIOX OF ACADEMIC FACILITIES 
"PART A—GRANTS FOR THE CONSTRUCTION OF UNDERGRADUATE 
ACADEMIC FACILITIES 
"AUTHORIZATION OF APPROPRIATIONS 
"SEC. 701. (a) The Commissioner shall carry out a program of grants 
to institutions of higher education for the construction of academic 
facilities in accordance with this part. 
"(b) For the purpose of making grants under this part, there are 
hereby authorized to be appropriated $50,000,000, for the fiscal year 
ending June 30, 1972, $200,000,000 for the fiscal year ending June 30, 
1973, and $300,000,000 for each of the fiscal years ending June 30,1974, 
and June 30,1975. 
r, 
. 
>ia 
"(c) Of the sums appropriated pursuant to section 701(b), 24 per 
centum shall be reserved by the Commissioner and allotted among the 
States under section 702. The remainder of such sums shall be available 
for allotment among the States under section 703. 
"PUBLIC COMMUNITY COLLEGES AND PUBLIC TECHNICAL INSTITUTES 
:v,, ;t.a 
"SEC. 702. (a) Sums reserved pursuant to the first sentence of section 
701(c) shall be available for allotments to States for providing aca-
demic facilities for public community colleges and public technical 
institutes. 
State allotments, 
"(jj) From the sums available for any fiscal year for the purposes 
of this section, the Commissioner shall allot to each State an amount 
which bears the same ratio to such sums as the product of— 
"(1) the number of high school graduates of the State, and 
" (2) the State's allotment ratio, 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
289 
bears to the sum of the corresponding products for all the States. The 
amount allotted to any State under the preceding sentence for any 
fiscal year which is less than $50,000 shall be increased to $50,000, the 
total of increases thereby required being derived by proportionately 
reducing the amount allotted to each of the remaining States under 
the preceding sentence, but with such adjustments as may be necessary 
to prevent tne allotment of any such remaining States from being 
thereby reduced to less than $50,000. 
., ^^.,. 
"(c)(1) From the sums available for any fiscal year for amount 
allotted to a State under this section shall be available for the pay-
ment of the Federal share of the development cost of approved projects 
for the construction of academic facilities within such State for public 
community colleges and public technical institutes. 
"(2) Any portion of a State's allotment under this section for any 
fiscal year for which applications from an institution qualified to 
receive grants under this section have not been received prior to 
Januai-y 1 of such fiscal year by the State Commission created or desig-
nated pursuant to section 1202 shall, if the State Commission so go's !l^ 10^2^°' 
requests, be available for payment of the Federal share of the develop- 
20 use 114*2. 
ment cost of approved projects under section 703. 
" (d) All amounts allotted under this section for any fiscal year which 
Reaiiotment. 
are not reserved as provided in section 701(c) by the close of the fiscal 
year for which they are allotted shall "be reallotted by the Commis-
sioner, on the basis of such factors as he determines to be equitable 
and reasonable, among the States which, as determined by the Commis-
sioner, are able to use w^ithout delay any amounts so reallotted for the 
purpose set forth in subsection (c) (1). Amounts reallotted under this 
subsection shall be available for reservation until the close of the fiscal 
year next succeeding the fiscal year for w^hich they were originally 
allotted. 
"(e) For the purposes of clause (2) of subsection (b), the 'allotment j.^^!"^"""™*"* 
ratio' for any State shall be 1.00 less the product of (A) 0.50 and (B) 
the quotient obtained by dividing the income per person for the State 
by the income per person for all the States (not including Puerto Rico, 
the Virgin Islands, American Samoa, the Trust Territory of the 
Pacific Islands, and Guam), except that (i) the allotment ratio shall 
in no case be less than 0.331/^ or more than 0.66%, (ii) the allotment 
ratio for Puerto Rico, the Virgin Islands, American Samoa, the Trust 
Territory of the Pacific Islands, and Guam shall be 0.66%, and (iii) 
the allotment ratio of any State shall be 0.50 for any fiscal year if 
the Commissioner finds that the cost of school construction in such 
State exceeds twice the median of such costs in all the States as deter-
mined by him on the basis of statistics and data as the Commissioner 
shall deem adequate and appropriate. The allotment ratios shall be 
iiSTtoa: .
w 
promulgated by the Commissioner as soon as possible after June 30, 
1972, and annually thereafter, on the basis of the average of the incomes 
per person of the State and of all the States for the three most recent 
consecutive calendar years for which satisfactory data are available 
from the Department of Commerce. 
"(f) For the purpose of this section, the term 'high school graduate' 
"High school 
means a person who has received formal recognition (by diploma, 8»^aduate." 
certificate, or similar means) from an approved school for successful 
completion of four years of education beyond the first eight years of 
school 
work, or for demonstration of equivalent achievement. For the 
purposes of this section the number of high school graduates shall be 
limited to the number who graduated in the most recent school year 
for which satisfactory data are available from the Department of 
Health, Education, and Welfare, The interpretation of the defini-
tion of 'high school graduate' shall fall within the authority of the 
Commissioner. 
290 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
State allotments. 
Limitation. 
Reallotment. 
"IXSTITI TIONS OF HIGHER EDUCATION OTHER THAN PUBLIC C03IMUN1TY 
COLLEGES AND PUBLIC TECHNICAL INSTITUTES 
"SEC. 703. (a) Sums appropriated pursuant to section 701 (b) which 
remain after the reservation provided for in the first sentence of sec-
tion 701(c) for any fiscal year shall be available for allotments to 
States for providing academic facilities for institutions of higher 
education other than institutions eligible for grants under section 702. 
"(b) Sums available for the purposes of this section for any fiscal 
year shall be allotted among the States as follows: 
"(1) The Commissioner shall allot to each State an amount 
which bears the same ratio to 50 per centum of such sums as the 
number of students enrolled in institutions of higher education 
in such States bears to the number of students so enrolled in all 
the States; and 
"(2) The Commissioner shall allot to each State an amount 
which beai-s the same ratio to 50 per centum of such sums as the 
number of students enrolled in grades nine thi'ough twelve (both 
inclusive) of schools in such State bears to the total number of 
students so enrolled in all the States, For the purposes of this 
subsection (A) the number- of students enrolled in institutions 
of higher education shall be deemed to be equal to the sum of 
(i) the number of full-time students and (ii) the full-time equiva-
lent of the number of part-time students as determined by the 
Commissioner in accordance with regulations; and (B) determi-
nations as to enrollment under either clause (1) or clause (2) 
shall be made by the Commissioner on the basis of data for the 
most recent year for which satisfactory data with respect to such 
enrollment are available to him. 
The amount allotted to any State under the preceding sentence for 
any fiscal yeai- shall not be less than $50,00(). 
"(c) (1) Any amount allotted to a State under this section for any 
fiscal year shall, except as provided in paragraph (2), be available, 
in accordance with the provisions of this title, for payment of the 
Federal share of the development cost of approved projects for the 
construction of academic facilities within such State for institutions 
of higher education which are not eligible for grants under section 702. 
"(2) Any portion of a State's allotment under this section for any 
fiscal year for which applications from an institution qualified to 
receive grants under this section have not been received by the State 
Commission prior to January 1 of such fiscal year, shall, if the State 
Commission so requests, be available for- payment of the Federal shai*e 
of the development cost of approved projects under section 702, 
"(d) All amounts allotted under this section for any fiscal year, 
which are not reserved by the close of the fiscal year for which they are 
allotted, shall be reallotted by the Commissioner, on the basis of such 
factors as he determines to be equitable and reasonable, among the 
States which, as determined by the Commissioner, are able to use 
without delay any amounts so reallotted for the purposes of this sec-
tion. Amounts reallotted under this subsection shall be available for 
reservation until the close of the fiscal year- next succeeding the fiscal 
year for which they were or-iginally allotted. 
"STATE PLANS 
"SEC. 704. (a) Any State desiring to participate in the grant i^ro-
gram authorized by this part for any fiscal year shall submit for that 
year to the Commissioner through the State Commission a State plan 
for such participation. Such plan shall be submitted at such time, in 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
291 
such manner, and containing such information as may be necessary to 
enable the Commissioner to carry out his functions under this part 
and shall— 
"(1) provide that it shall be administered by the State Com-
mission ; 
"(2) set forth objective standards and methods which are con-
sistent with basic criteria prescribed by regulations pursuant to 
section 706, for— 
"(A) determining the relative priorities of eligible proj-
ects submitted by institutions of higher education within the 
State for the construction of academic facilities, and 
"(B) determining the Federal share of the development 
cost of each such project; 
"(3) provide that the funds apportioned for any fiscal year 
under section 702 or 703 shall be used only for the purposes set 
forth therein; 
"(4) provide for— 
"(A) assigning priorities solely on the basis of such cri-
teria, standards, and methods to eligible projects submitted to 
the State Commission and found by it otherwise approvable 
under the provisions of this part, and 
"(B) approving and recommending to the Commissioner, 
in the order of such priority, applications covering such eligi-
ble projects, and for cei-tifying to the Commissioner the 
Federal share of the development cost of the project involved; 
"(5) provide for affording to every applicant Avhich has sub-
mitted a project to the State Commission an opportunity for a fair 
heai'ing before the State Commission as to the priority assigned 
to such project, or as to any other determination of the State 
Commission adversely affecting such applicant; and 
"(6) provide for— 
"(A) sucli fiscal control and fund accounting procedures as 
may be necessary to assure proper disbursement of, and 
accounting for. Federal funds paid to the State Commission 
under this part, and 
"(B) making such reports, in such form and containing 
such information, as may be reasonably necessary to enable the 
Commissioner to perform his functions under this part. 
"(b) The Commissioner shall approve any State plan submitted 
under this section if lie determines that it complies with the provisions 
of thissection and otlier appropriate provisions of this title. 
"ELIGIBILITY FOK GRANTS 
'-''*' ' 
"
^ 
"SEC. 705. (a) Except as is provided in subsection (b), an institution 
of higher education shall be eligible for a grant under this part only if 
the State Commission determines, in accoi'dance with criteria pre-
scribed by regulation, that the construction project for which assist-
ance is sought will, either alone or together with otlier constniction 
to be undertaken within a reasonable time, result in— 
" (1) a substantial expansion of, or 
" (2) in the case of a new institution, the creation of, 
urgently needed (A) enrollment capacity, (B) the capacity to provide 
health care for students and institutional pereonnel, or (C) capacity 
to carry out extension and continuing education programs on the 
campus of such institution. 
"(b) If the Commissioner determines, in accordance with criteria 
established by regulation, that the student enrollment capacity of an 
institution of higher education would decrease if an urgently needed 
292 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
academic facility is not constructed, the construction of such a facility 
may be considei-ed, for the purposes of this section, to result in an 
expansion of the institution's student enrollment capacity. 
a 
BASIC CRITERIA FOR DETERMINING PRIORITIES AND FEDERAL SHARE 
"SEC. 706. (a) (1) The Commissioner shall, by regulation, prescribe 
basic criteria to which the provisions of State plans, setting forth 
standards and methods for determining relative priorities of eligible 
construction projects, and the application of such standards and meth-
ods to such projects under such plans, shall be subject. 
"(2) Such basic criteria shall, at least^— 
" (A) be such as will best tend to achieve the objectives of this 
part, while leaving opportunity and flexibility to State Commis-
sions for the development of State plan standards and methods 
that will best accommodate the varied needs of institutions in the 
several States; 
"(B) give special consideration to the expansion of under-
graduate enrollment capacity; and 
"(C) give consideration to the expansion of capacity to provide 
needed health care to students and institutional personnel. 
"(3) Subject to paragraph (2), such regulations may establish addi-
tional and appropriate basic criteriaj including— 
"(A) provision for considering the degree to which applicant 
institutions are effectively utilizing existing facilities; 
"(B) provision for allowing State plans to group, or to allow 
grouping, in a reasonable manner, facilities or institutions accord-
ing to functional or educational type for priority purposes; and 
"(C) in view of the national objectives of this title, provision 
for considering the degree to which applicant institutions serve 
students from two or more States or from outside the United 
States. 
"(4) In no event shall such basic criteria permit the readiness of 
an institution to admit out-of-State students to be considered as a 
priority adverse to such institution. 
"(b)(1) The Commissioner shall prescribe, by regulation, the base 
criteria for determining the Federal share of the development cost of 
any eligible project under this part within a State, to which criteria 
the applicable standards and methods set forth in the State plan for 
such State shall conform. 
Limitation. 
" (2) In uo case shall such basic criteria permit the Federal share to 
exceed 50 per centum of the development cost of a project, 
80 Stat. 383. 
"(c) Section 653 of title 5, United States Code, shall apply to the 
prescription of regulations under this section, notwithstanding clause 
(2) of subsection (a) thereof. 
"APrLICAlTONS FOR (JRANTS; AMOIN'J' OK (J){.\NJ'S 
"SEC. 707. (a) (1) Any institution of higher education which desires 
to receive a grant under this part shall submit an application therefor 
at such time or times, in such manner, and containing such information 
as the Commissioner shall prescribe by regulation. 
"(2) The Commissioner shall approve an application for a con-
.«;truction project under this part if he determines that— 
"(A) it meets the requirements prescribed under paragraph (1); 
"(B) the project for which assistance is sought is an eligible 
]iroject under section 705; 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
293 
"(C) such project has been submitted through, and been 
approved and recommended by, the appropriate State Commis-
sion; 
"(D) such State Commission has certified to the Commissioner, 
in accordance with the State plan, the Federal share of the devel-
opment cost of the project, and sufficient funds to pay such Federal 
share are available from the applicable apportionment of the 
State; 
"(E) suchprojecthas, pursuant to the State plan, been assigned 
a priority that is higher than that assigned to all other projects 
within the State which are chargeable to the same apportion-
ment, and meet the requirements of this section, and for which 
Federal funds have not yet been reserved; 
"(F) the construction to be carried out under the application 
will be undertaken in a timely and economic manner and will not 
be of elaborate or extravagant design or materials; 
" (G) in the case of a student health care facility, no assistance 
will be provided for such facility under title IV of the Housing 
Act of 1950; and 
64 stat. 77. 
"(H) the application contains assurances or is supported by 1
7
4
^
9 noti.'"**' 
satisfactory assurances— 
"(i) that title to the site is in accordance with regulations 
of the Commissioner relating thereto, 
"(ii) that Federal funds received by the applicant will be 
solely used for defraying the development cost of the project 
covered by the apj)lication, 
" (iii) that sufficient funds will be available to meet the non-
Federal portion of such cost and to provide for the effective 
use of the academic facility upon completion, and 
' '* '**"' "'• 
"(iv) that the facility will be used as an academic facility 
for at least the period of the Federal interest therein, as pro-
vided in section 781. 
Post. p. 300. 
" (b) Amendments to applications submitted under this section shall, 
except as the Commissioner may otherwise provide by regulations, be 
subject to approval in the same manner as original applications. 
"(c)(1) Upon his approval of any application under this section, the 
Commissioner shall reserve from the applicable allotment available 
therefor, the amount of such grant, which shall be equal to the Federal 
share of the development cost of the project covered by the application. 
The Commissioner shall pay such reserved amount, in advance or by 
way of reimbursement, and in such installments consistent with con-
struction progress, as he may determine. 
"(2) Upon approval of an amendment of an application, or revision 
of the estimated development cost of a project, for which there has been 
a reservation made under paragraph (1), the Commissioner may adjust 
the amount so reserved, accordingly. If an adjustment under the first 
sentence of this paragraph results in a greater amount being reserved, 
he may reserve the Federal share of the added cost only from the 
ajjplicable allotment available at the time of such approval. 
"ADMINISTRATION or STATE PLANS; JUDICIAL REVIEW 
"SEC. 708. (a)(1) The Commissioner shall not finally disapprove 
any State plan submitted under this part, or any modification thereof, 
without first affording the State Commission submitting the plan rea-
sonable notice and opportunity for a hearing. 
"(2) Whenever the Commissioner, after reasonable notice and 
opportunity for hearing to the State Commission administering a 
State plan approved under this part, finds— 
294 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
"(A) that the State plan has been so changed that it no longer 
complies with the provisions of section 704, or 
"(B) that in the administration of the plan there is a failure 
to comply substantially with any such provision, 
the Commissioner shall notify such State Commission that the State 
will not be regarded as eligible to participate in the program under 
this part until he is satisfied that there is no longer any such failure to 
comply. 
"(b)(1) If any State is dissatisfied with the Commissioner's final 
action with respect to the approval of its State plan submitted under 
section 704, or with his final action under subsection (a), such State 
may appeal to the United States court of appeals for the circuit in 
Avhich such State is located. The summons and notice of appeal may 
be served at any place in the United States. The Commissioner shall 
forthwith certify and file in the court the transcript of the proceedings 
and the record on which he based his action. 
"(2) The findings of fact by the Commissioner if supported by sub-
stantial evidence, shall be conclusive; but the court, for good cause 
shown, may remand the case to the Commissioner to take further evi-
dence, and the Commissioner may thereupon make new or modified 
findings of fact and may modify his previous action, and shall certify 
to the court the transcript and record of the further proceedings. Such 
new or modified findings of fact shall likewise be conclusive if sup-
ported by substantial evidence. 
" (3) The court shall have jurisdiction to affirm the action of the Com-
missioner or to set it aside, in whole or in part. The judgment of the 
court shall be subject to review by the Supreme Court of the United 
States upon certiorari or certification as provided in title 28, United 
62 Stat. 928. 
^^^ates Code, section 1254. 
"PART B—GRANTS FOR CONSTRUCTION OF GRADUATE ACADEMIC 
FACILITIES 
a AUTHORIZATION 
"SEC. 721. (a) The Commissioner shall carry out a program of mak-
ing grants to institutions of higher education to assist them in improv-
ing existing graduate schools and cooperative graduate centers, and in 
establishing graduate schools and cooperative graduate centers of 
excellence, in order to increase the supply of highly qualified personnel 
needed by communities, industries, and governments and for teaching 
and research. 
"(b) For the purpose of making grants under this part, there are 
authorized to be appropriated $20,000,000 for the fiscal year ending 
June 80, 1972, $40,000,000 for the fiscal year ending June 30, 1973, 
$60,000,000 for the fiscal year ending June 30, 1974, and $80,000,000 
for the fiscal year ending June 30, 1975. 
"APPLICATION FOR, AND AMOUNT OF, GRANTS 
"SEC. 722. (a) (1) Any institution of higher education desiring to 
receive a grant under this part shall submit an application therefor at 
such time, in such manner, and containing such information as the 
Commissioner may require. 
"(2) In determining whether to approve applications under this 
section, the order in which to approve such applications, and the 
amount of grants, the Commissioner shall give consideration to the 
extent to which the projects for which assistance is sought will con-
tribute toward achieving the objectives of this part, and the extent to 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
295 
which they will aid in attaining a wider distribution of graduate 
schools and cooperative graduate centers throughout the States. In 
no case shall the total of the payments from appropriations for any 
fiscal year pursuant to section 721 made with respect to projects in 
any State exceed an amount equal to 121/^ per centum of such appro-
priations. 
" (3) For the purposes of this section, the term 'institution of higher 
education' includes cooperative graduate center boards. 
"(b) The Commissioner shall not approve any application under 
this section until he has obtained the advice and recommendations of 
a panel of specialists who are not regular full-time employees of the 
Federal Government and who are competent to evaluate such 
application. 
"(c) No grant under this part may be in an amount in excess of 50 
per centum of the development cost of the project covered by the 
application. 
"PART C—LOAXS FOR CONSTRUCTIOX OF ACADEMIC FACILITIES 
"AUTHORIZATIOX 
"SEC. 741. (a) (1) The Commissioner shall carry out a program of 
making and insuring loans, in accordance with the provisions of this 
part. 
"(2) The Commissioner is authorized to make loans to institutions 
of higher education and to higher education building agencies for the 
construction of academic facilities and to insure loans. 
"(b) For the purpose of making payments into the fund established 
under section 744, there are hereby authorized to be appropriated 
$50,000,000 for the fiscal year ending June 30, 1972, $100,000,000 for 
the fiscal year ending June 30, 1973, $150,000,000 for the fiscal year 
ending June 30,1974, and $200,000,000 for the jfiscal year ending June 
30, 1975. Sums appropriated pursuant to this subsection for any fiscal 
year shall be available without fiscal year limitations. 
"Institution of 
higher education.' 
Limitation. 
"ELIGIBILITY CONDITIONS, AMOUNTS, AND TERMS OF LOAXS 
"SEC. 742. (a) No loan pursuant to this part shall be made unless the 
Commissioner finds (1) that not less than 20 per centum of the develop-
ment cost of the facility will be financed from non-Federal sources, (2) 
that the applicant is unable to secure the amount of such loan from 
other sources upon terms and conditions equally as favorable as the 
terms and conditions applicable to loans under this part, (3) that the 
construction will be undertaken in an economical manner and that it 
will not be of elaborate or extravagant design or materials, and (4) 
that, in the case of a project to construct an infirmary or other facility 
designed to provide primarily for outpatient care of students and 
institutional personnel, no financial assistance will be provided such 
project under title IV of the Housing Act of 1950. 
"(b) A loan pursuant to this part shall be secured in such manner 
and shall be repaid within such period not exceeding fifty years, as may 
be determined by the Commissioner; and it shall bear interest at (1) a 
rate determined by the Commissioner which shall not be less than a per 
annum rate that is one-quarter of 1 percentage point above the average 
annual interest rate on all interest-bearing obligations of the United 
States forming a part of the public debt as computed at the end of the 
preceding fiscal year, adjusted to the nearest one-eighth of X per cen-
tum, or (2) the rate of 3 per centum per annum, whichever is the lesser. 
64 Stat. 77. 
12 u s e prec. 
174 9 note. 
82-081 O - 73 - 22 
296 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
''•GP:XERAL PROVISIOX FOR LOAX TROGRAM 
acfioM^ ''""* 
"SEC. 743. (a) Financial transactions of the Commissioner under this 
part, except with respect to administrative expenses, shall be final and 
conclusive on all officers of the Government and shall not be reviewable 
by any court. 
"(b) In the performance of, and with respect to, the functions, 
powers, and duties vested in him by this part, the Connnissioner may— 
Rules and 
"(1) prescHbe such rules and regulations as may be necessai-y 
regulations. 
^^ carry out the purposes of this part; 
"(2) sue and be sued in any court of record of a State having 
general jurisdiction or in any district court of the I'^nited States, 
and such district courts shall have jurisdiction of civil actions 
arising under this part without regard to the amount in con-
' ' * * ' ' " 
troversy, and any action instituted under this subsection by or 
against the Commissioner shall survive notwithstanding any 
change in the person occupying the office of the Commissioner or 
any vacancy in such office; but no attachment, injunction, garnish-
ment, or other similar process, mesne or final, shall be issued 
against the Commissioner or property under his control, and noth-
ing herein shall be construed to except litigation arising out of 
activities under this part from the application of sections 507(b) 
^^80 Stat. 612, 
and 517 and 2679 of title 28, United States Code: 
6
2 Stat. 984; 
"(3) forcclose ou ally property or commence any action to pro-
75 Stat. 53 9; 
tect Or euforce any right conferred upon him by any law, contract, 
80 tat. 307. 
Qj, other agreement, and bid for and purchase at any foreclosure 
or any other sale any property in connection with which he has 
made a loan pursuant to this part; and, in the event of any such 
acquisition (and notwithstanding any other provisions of law 
relating to the ac(iuisition, handling, or disposal of real property 
hj the United States), complete, administer, remodel and convert, 
dispose of, lease, and otherwise deal with, such property; except 
that (1) such action shall not preclude any other action by him 
to recover anv deficiency in the amounts loaned and (2) any such 
acquisition of real property shall not deprive any State or political 
subdivision thereof of its civil or criminal jurisdiction in and 
over such property or impair the civil rights under the State or 
, 
local laws of the inhabitants on such property; 
"(4) sell or exchange at public or private sale, or lease, real or 
personal property, and sell or exchange any securities or obliga-
tions, upon such terms as he may fix; 
"(5) subject to the specific limitations in tliis part, consent to 
the modification, with respect to the rate of interest, time of pay-
ment of any installment of principal or interest, security, or any 
other term of any contract or agreement to which he is a party or 
which has been transferred to him pursuant to this section; and 
"(6) include in any contract or instrument made pursuant to 
this part such other covenants, conditions, or provisions (includ-
,;> 
ing provisions designed to assure against use of the facility, 
constructed with the aid of a loan under this part, for purposes 
Posf, p. 3 01. 
described in section 782(1)), as he may deem necessary to assure 
that the purpose of this part will be achieved. 
"REVOLVIXG L O A N F U N D A N D INSURAX^CE FUND 
"SEC. 744. (a) There is hereby created within the Treasury a sepa-
rate fund for higher education academic facilities loans and loan 
insurance (hereafter in this section called the 'fund') which shall be 
available to the Commissioner without fiscal year limitation as a 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
fevolving fund for the purposes of making loans and insuring loans 
• • ' 
' 
under this i^art. The total of any loans made from the fund in any 
fiscal year- shall not exceed limitations specified in appropriation 
acts. 
"('b)(l) The Commissioner shall transfer to the fund available 
appropriations provided under section 741(b) to provide capital for 
the fund. All amounts received by the Commissioner as interest pay-
ments or repayments of principal on loans, and any other moneys, 
property, or assets derived by him from his operations in connection 
with this part, including any moneys derived directly or indirexjtly 
from the sale of assets, or beneficial interests or participations in assets 
of the fund, shall be deposited in the fund. 
"(2) All loans, expenses, and payments pursuant to operations of 
the Commissioner mider this part shall be paid from the fund, includ-
ing (but not limited to) expenses and payments of the Commissioner 
in connection with sale, under section 302(c) of the Federal National 
Moi'tgage Association Charter Act, of participations in obligations 
^s stat. soo; 
acquired under this part. From time to time, and at least at the close of *'\2'usc ni7. 
each fiscal year, the Commissioner' shall pay from the fund into the 
interest pay-
Treasury as miscellaneous receipts interest on the cumulative amount '"*"'*• 
of appropriations paid out for loans imder this part or available as 
capital to the fund, less the avei-age undisbursed cash balance in the 
fund duT'ing the year. The I'ate of such interest shall be detei-mined by 
the Secretary of the Treasury, taking into consideration the average 
market yield during the month preceding each fiscal year on out-
standing Treasury obligations of maturity comparable to the average 
inaturitv of loans macle from the fund. Interest payments may be 
Deferral. 
deferred with the approval of the Secretary of the Treasury, but any 
interest payments so deferred shall themselves beai- interest. If at any 
time the Commissionei' determines that moneys in the fund exceed the 
present and any reasonably prospective future requirements of the 
fund, such excess may be transferred to the genei'al fund of the 
Treasury. 
•' • ' 
"ANNUAL INTEREST GRANTS 
•'SEC. 745. (a) To assist institutions of higher education and highei-
education building agencies to reduce the cost of borrowing from other 
sources for the construction of academic facilities, the Commissioner 
may make annual interest grants to such institutions and agencies. 
''(b) Annual interest grants to an institution of higher education or 
higher education building agency with respect to any academic facility 
shall be made over a fixed period not exceeding forty years, and provi-
sion for such grants shall be embodied in a contract guaranteeing their 
payment over such period. Each such grant shall be in an amount 
not gi-eater than the difference between (1) the average annual debt 
service which would be required to be paid, during the life of the loan, 
on the amount borrowed from other sources for the construction of 
such facilities, and (2) the average annual debt service which the 
institution would have been req^uired to pay, during the life of the loan, 
with respect to such amounts if the applicable interest rate were the 
luaxinium rate specified in section 744(b) (2). The amount on which 
such grant is based shall be approved by the Secretary. 
"(c)(1) There are hei'eby authorized to be appropriated to the Com- 
Appropriation. 
missioner such sums as may be necessary for the payment of annual 
interest grants to institutions of higher education and higher educa-
tion building agencies in accordance with this section. 
298 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Limitations. 
" (^) CoiitrHcts foi' Huiiual interest g-rants under this section shall not 
be entered into in an aggregate amount greater than is authorized in 
appropriation Acts; and in any event the total amount of annual 
interest gi-ants which may be paid to institutions of higher education 
and higher education building agencies in any year pursuant to con-
tracts entered into under this section shall not exceed $5,0(K),()()() 
which amount shall be increased by $6,750,(X)() on July 1, 19B9, and by 
$13,50(),()()() on July 1. 1970 and on July 1 of each of the four succeed-
ing yeai'S. 
'(d) Not more than 121/^ per centum of the funds provided for in 
this section for grants may he used within any one State. 
'' (e) No annual interest grant pursuant to this section shall be made 
unless the (Commissioner finds (1) that not less than 10 per centum of 
the development costs of the facility will be financed from non-Federal 
sourcies, (2) that the applicant is unable to secure a loan in the amount 
of the loan with respect to which the annual interest grant is to be 
made, fix>m other sources upon terms and conditions equally as favor-
able as the terms and conditions applicable to loans under this title, 
and (3) that the construction will be undertaken in an economical 
manner and that it will not be of ela;borat« or extravagant design or 
materials. For purposes of this section, a loan with respect to which an 
interest grant is made under this section shall not be considered financ-
ing from a non-Federal source. For purposes of the other provisions 
of this title, such a loan shall be considered financing from a non-
Federal source. 
••'"•'- 
" A C A D K M I C 
F A C I L I T I E S L O A N 
IXSFKAIfCE 
"SEC. 746. (a) (1) In order to assist nonprofit pr-ivate institutions of 
higher education and nonprofit private higher education building 
agencies to procure loans for the construction of academic facilities, 
the Commissioner may insure the payment of interest and principal 
on such loans if such institutions and agencies meet, with respect to 
such loans, critei'ia prescribed by or under section 745 for the making 
of annual interest grants under such section. 
''(2) No loan insurance under paragraph (1) may apply to so much 
of the principal amount of any loan as exceeds 90 per centum of the 
development cost of the academic facility with respect to which such 
loan was made. 
''(b)(1) The United States shall be entitled to recover from any 
institution or agency to which loan insurance has been issued under 
this sect'on the amount of any payment made pursuant to that 
insurance, unless the Commissioner for good cause waives its right of 
recovery. T^'^pon making any such payment, the Ignited States shall be 
subrogated to all of the rights of the recipient of the payment with 
respect to which the payment was made. 
"(2) Any insurance issued by the Commissioner pursuant to sub-
section (a) shall be incontestable in the hands of the institution or 
agency on whose behalf such insurance is issued, and as to any agency, 
organization, or individual who makes or contracts to make a loan 
to such institution or agency in reliance thereon, except for fraud or 
misrepresentation on the part of such institution or agency or on the 
ft< ahr^ii .q4 
pai-t of the agency, oi-ganization. or individual who makes or- contracts 
to make such loan. 
"(c) Insurance may be issued by the Conunissioner under subsection 
(a) only if he determines that the terms, conditions, maturity, security 
(if any), and schedule and amounts of repayments with respect to 
the loan are sufficient to protect the financial interests of the ITnited 
States and are othei'wise reasonable and in accord with regulations, 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
299 
including a determination that the rate of interest does not exceed such 
per centum per annum on the principal obligation outstanding as the 
Commissioner determines to be reasonable, taking into account the 
range of interest rates prevailing in the private market for similar 
loans and the risks assumed by the United States. The Commissioner 
may charge a premium for such insurance in an amount reasonably 
determined by him to be necessary to cover administrative expenses 
and probable losses under subsections (a) and (b). Such insurance 
shall be subject to such further terms and conditions as the Commis-
sioner determines to be necessaiy. 
"PART D—ASSISTANCE IN MAJOR DISASTER AREAS 
•'AUTHORIZATION 
"SEC. 761. (a) The (Commissioner shall carry out a program of 
financial assistance to public institutions of higher education, in 
accordance Avith the provisions of this part. 
"(b) There are authorized to be appropriated for each fiscal year 
such sums as may be necessary to carry out the provisions of this 
pai-t. 
"ASSISTANCE FOR CONSTRUCTION OF ACADEMIC FACILITIES 
"SEC. 762. (a) If the Director of the Office of Emergency Planning 
determines that a public institution of higher education is, in whole 
or in part, within an area which, after June 30, 1971, and before 
July 1, 1975, has suffered a disaster which is a major disaster, and if 
the Commissioner determines with respect to such institution that— 
"(1) the academic facilities of such institution have been 
destroyed or seriously damaged as a result of the disaster; 
"(2) such institution is exercising due diligence in availing 
itself of State and other financial assistance available for restora-
tion or replacement of such facilities; and 
"(3) the institution does not have sufficient funds available 
from such other sources, including proceeds of insurance on the 
facilities, to provide for the restoration or replacement of such 
facilities; 
the Commissioner is authorized to provide such assistance to such 
institution as is provided in subsection (b). 
"(b) (1) Assistance under this section shall be a grant to an eligible 
institution, as determined under subsection (a), of an amount neces-
sary to enable the institution to carry out the construction necessary 
to restore or replace the academic facilities determined under clause 
' , 
, 
(1) of subsection (a) to be damaged or destroyed. 
"(2) The maximum amount of a grant under this section shall not 
exceed the cost of construction incident to the restoration or replace-
ment of the facilities determined to be damaged or destroyed under 
clause (1) of subsection (a) less the amount of additional assistance 
determined under clause (3) of subsection (a) to be available. 
"(c)(1) Assistance under this section may include a grant of an 
amount necessary to enable the institution to lease, or otherwise 
obtain the use of, such facilities as are needed to replace, temporarily, 
facilities which have been made unavailable as a result of a major 
disastei-. 
"(2) An institution shall be eligible for assistance under this sub-
section if it qualifies for assistance under subsection (a), whether or 
not it receives assistance under subsection (b). 
300 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
'"EQUIPMENT AND SUPPLIES 
"SEC. 763. If an institution is eligible for assistance under section 
762(a), the Commissioner is authorized, whether or not such institu-
tion receives assistance under section 762(b), to make a grant to such 
institution of not in excess of an amount he determines necessary 
to replace equipment, maintenance supplies, and instructional sup-
plies (including books, and curricular and program materials) 
destroyed or seriously damaged as a result of the major disaster. 
"REPAYABLE ASSISTANCE IN LIEU OF A GRANT 
"SEC. 764. If the Commissioner's determinations under clauses (2) 
and (3) of section 762(a) indicate that financial resources will become 
available to an institution otherwise qualified for assistance under 
section 762 at some future date or dates, he is authorized, subject to 
such terms and conditions as may be in the public interest, to extend 
assistance to such institution under section 762(b). 762(c), or 768 (or 
all such sections) with an agreement with such institution which pro-
vides that the institution will repay part or all of the funds received 
by it under this pait. 
"APPLICATIONS 
* ^ "i"^! 
"SEC. 765. Xo payment may be made to a public institution of higher 
education for academic facilities under section 762 or for assistance 
under section 763 unless an application therefor is submitted through 
the appropriate State Commission and is filed with the Commissioner 
in accordance with regulations prescribed by him. In determining the 
order in which such applications shall be approved, the Commissioner 
shall consider the relative educational and financial needs of the 
institutions which have submitted approvable applications. Xo pay-
ment may be made under section 762(b) unless the Commissioner hiids 
after' consultation with the State Commission, that the project or 
projects with res^^ect to which it is made are noi: inconsistent with 
overall State plans, submitted under section 704(a), for the construc-
tion of academic facilities. All determinations made by the Commis-
sioner under this part shall be made only after consultation with the 
appropriate State Commission. 
- • 
- 
. — 
n:Mm iii 'rji}-n'i>.ii^i, ,u H».. •?; "DEFINITIONS 
*.'*\/'" 
' 
; "SEC. 766. For the purposes of this part— 
"(1) the term 'major disaster' means a disaster determined to be 
a major disaster as defined in section 2(a) of the Act of September 
84'stari759^'' 
30,1950 (42 U.S.C. 1855a(a)); and 
"(2) an institution of higher education shall be deemed to be a 
'public institution of higher education' if such institution is found 
by the Commissioner to be under public supervision and control. 
"PART E—GENERAL 
"RECOVERY OF PAYMENTS 
"SEC. 781. (a) The Congress hereby finds and declares that, if a 
facility constructed with the aid of a grant or grants under part A or 
B of this title is used as an academic facility for twenty years follow-
ing completion of such construction, the public benefit accruing to the 
United States from such use will equal in value the amount of such 
grant or grants. The period of twenty years after completion of such 
construction shall therefore be deemed to be the period of Federal 
interest in such facility for the purposes of this title. 
86 
STAT.] 
PUBLIC LAW 92-318-JUNE 23, 1972 
301 
"(b) If. within twenty years after completion of construction of an 
academic facility which has been constructed in part with a grant or 
grants under part A or B of this title— 
" (1) the applicant (or its successor in title or possession) ceases 
or fails to be a public or nonprofit institution, or 
•'(2) the facility ceases to be used as an academic facility, or 
the facility is used as a facility excluded from the term 'academic 
facility", unless the Secretary determines that there is good cause 
for releasing the institution from its obligation, 
the United States shall be entitled to recover from such applicant (or 
successor) an amount which bears to the then value of the facility (or 
so much thereof as constituted an approved project or projects) the 
same ratio as the amount of such Federal grant or grants bore to the 
development cost of the facility financed with the aid of such grant 
or grants. Such value shall be determined by agreement of the parties 
or by action brought in the United States district court for the district 
in which such facility is situated. 
"(c) Notwithstanding the provisions of subsections (a) and (b), 
no facility constructed with assistance under this title shall ever be 
used for religious worship or a sectarian activity or for a school or 
department of divinity. 
"DEFINITIONS 
"SEC. 782. The following definitions apply to terms used in this 
title: 
"(1) (A) Except as provided in subparagraph (B) of this para-
graph, the term 'academic facilities' means structures suitable for 
use as classrooms, laboratories, libraries, and related facilities nec-
essary or appropriate for instruction of students, or for research, or 
for administration of the educational or research programs, of an 
institution of higher education, and maintenance, storage, or utility 
facilities essential to operation of the foregoing facilities. For purposes 
of parts A, C, and D, such term includes infirmaries or other facilities 
designed to provide primarily for outpatient care of student and 
instructional personnel. Plans for such facilities shall be in compliance 
with such standards as the Secretary of Health, Education, and Wel-
fare may prescribe or approve in order to insure that facilities con-
structed with the use of Federal funds under this title shall be, to the 
extent appropriate in view of the uses to be made of the facilities, 
accessible to and usable by handicapped persons. 
"(B) The term "academic facilities' shall not include (i) any facility 
intended primarily for e_vents for which admission is to be charged to 
the general public, or (ii) any gymnasium or other facility specially 
designed for athletic or recreational activities, other than for an 
academic course in physical education or where the Commissioner 
finds that the physical integration of such facilities with other 
academic facilities included under this title is required to carry out 
the objectives of this title, or (iii) any facility used or to be used for 
sectarian instruction or as a place for religious worship, or (iv) any 
facility w^iich (although not a facility described in the preceding 
clause) is used or to be used primarily in connection with any part of 
the program of a school or department of divinity, or (v) any facility 
used or to be used by a school of medicine, school of dentistry, school 
of osteopathy, school of pharmacy, school of optometry, school of 
podiatry, or school of public health as these terms are defined in 
section 724 of the Public Health Service Act, or a school of nursing 
as defined in section 843 of that Act. 
Prohibition. 
42 u s e 293d. 
42 u s e 298b. 
302 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
"(2) The term 'construction' means (A) erection of new or expan-
sion of existing structures, and the acquisition and installation of 
initial equipment therefor; or (B) acquisition of existing structures 
not owned by the institution involved; or (C) rehabilitation, altera-
tion, conversion, or improvement (including the acquisition and 
installation of initial equipment, or modernization or replacement of 
built-in equipment) of existing structures; or (D) a combination of 
any two or more of the foregoing. For the purposes of the preceding 
sentence, the term 'equipment' includes, in addition to machinery, 
utilities, and built-in equipment and any necessary enclosures or 
structures to house them, all other items necessary for the functioning 
of a particular facility as an academic facility, including necessary 
furniture, except books, curricular and program materials, and items 
of current operating expense such as fuel, supplies, and the like; the 
term 'initial equipment' means equipment acquired and installed in 
connection with construction as defined in paragraph (2) (A) or (B) 
: J 
; 
or, in cases referred to in paragraph (2) (C), equipment acquired and 
installed as part of the rehabilitation, alteration, conversion, or 
improvement of an existing structure, which structure would otherwise 
not be adequate for use as an academic facility; and the terms 
'equipment', 'initial equipment', and 'built-in equipment' shall be more 
particularly defined by the Commissioner by regulation. For the pur-
poses of clause (C) in the first sentence of this paragraph, the term 
'rehabilitation, alteration, conversion, or improvement' includes such 
action as may be necessary to provide for the architectural needs of, 
or to remove architectural barriers to, handicapped persons with a 
view toward increasing the accessibility to, and use of, academic facili-
ties by such persons. 
"(3) (A) The term 'development cost', with respect to an academic 
facility, means the amount found by the Commissioner to be the cost, 
to the applicant for a grant or loan under this title, of the construction 
involved and the cost of necessary acquisition of the land on which the 
facility is located and of necessary site improvements to permit its use 
for such facility. There shall be excluded from the development cost— 
"(i) in determining the amount of any grant under part A or 
B, an amount equal to the sum of (I) any Federal grant which 
the institution has obtained, or is assured of obtaining, under any 
law other than this title, with respect to the construction that is to 
be financed with the aid of a grant under part A or B, and (II) 
the amount of any non-Federal funds required to be expended as 
a condition of such other Federal grant; and 
"(ii) in determining the amount of any loan under part C, an 
amount equal to the amount of any Federal financial assistance 
which the institution has obtained, or is assured of obtaining, 
under any law other than this title, with respect to the construction 
that is to be financed with the aid of a loan under part C. 
"(B) In determining the development cost with respect to an aca-
demic facility, the Commissioner may include expenditures for works 
of art for the facility of not to exceed 1 per centum of the total cost 
(including such expenditures) to the applicant of construction of, and 
land acquisition and site improvements for, such facility. 
"(4) The term 'Federal share' means, except as provided in section 
706(b)(2), in the case of any project a percentage (as determined 
under the applicable State plan) not in excess of 50 per centum of its 
development cost. 
"(5) The term 'higher education building agency' means (A) an 
agency, public authority, or other instrumentality of a State author-
ized U) provide, or finance the construction of, academic facilities for 
86 STAT.] 
PUBLIC LAW 92-318-JUNE 23, 1972 
303 
institutions of higher education (whether or not also authorized to 
provide or finance other facilities for such or other educational insti-
tutions, or for their students or faculty), or (B) any corporation 
(no part of the net earnings of which inures or may lawfully inure 
to the benefit of any private shareholder or individual) (I) established 
by an institution of higher education for the sole purpose of providing 
academic facilities for the use of such institution, and (II) upon 
dissolution of w^hich, all title to any property purchased or built from 
the proceeds of any loan made under part C will pass to such 
institution. 
" (6) The term 'public comnmnity college and public technical insti-
tute' means an institution of higher education which is under public 
super-vision and control, and is organized and administered principally 
to provide a two-year program which is acceptable for full credit 
toward a bachelor's degree, or a two-year program in engineering, 
, 
mathematics, or the physical or biological sciences which is designed 
to prepare the student to work as a technician and at a semiprofes-
sional level in engineering, scientific, or other technological fields 
which require the understanding and application of basic engineering, 
scientific, or mathematical principles or knowledge; and the term 
includes a branch of an institution of higher education offering four 
or more year's of higher education which is located in a comnmnity 
. . ,,; 
different f 
r-om that in which its parent institution is located. 
"(T) The term'cooperative graduate center'means an institution or 
program created by two or more institutions of higher education which, 
will offer to the students of the participating institutions of higher 
education graduate work which could not be offered with the same 
proficiency or economy (or both) at the individual institution of higher 
education. The center may be located or the program carried out on the 
campus of any of the participating institutions or at a separate 
location. 
" (8) The term'cooperative graduate center board'means a duly con-
stituted board established to construct and maintain the cooperative 
graduate center and coordinate academic programs. The board shall be 
composed of representatives of each of the institutions of higher educa-
tion participating in the center and of the community involved. At 
least one-third of the board's members shall be community representa-
tives. The board shall elect by a majority vote a chairman from among 
its membership. 
"(9) The term 'public educational institution' does not include a 
school or institution of any agency of the United States. 
"(10) The term 'State' includes, in addition to the several States of 
the Union, the Commonwealth of Puerto Eico, the District of Colum-
bia, Guam, American Samoa, the Virgin Islands, and the Trust Terri-
tory of the Pacific Islands.". 
(b) (1) The programs authorized by title VII of the Higher Edu-
cation Act of 1965 shall be deemed to be a continuation of the com- 
^"'®' P- ^^^• 
parable programs authorized by the Higher Education Facilities Act 
of 1963. 
(2) Effective July 1, 1972, the Higher Education Facilities Act of 
1963 is amended by striking out titles I and I I thereof. 
(3) Effective July 1, 1972, such Act is amended by striking out 
section 306 thereof. 
(4) The revolving fund created by section 744 of the Higher Edu-
cation Act of 1965 shall be deemed to be a continuation of the revolving 
fund created by section 305 of the Higher Education Facilities Act of 
1963. Any sums in the fund for higher education academic facilities 
created by such section 305 on the date of enactment of this Act shall be 
transferred to the fund created by section 744 of the Higher Education 
77 Stat. 
20 use 
note. 
363. 
701 
Effective dates 
20 use 
731. 
20 use 
Ante, 
p 
80 Stat. 
20 use 
711, 
746. 
296. 
166. 
745. 
77 Stat. 372; 
82 Stat. 1059 
304 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Ante, p. 296. 
s^^^^ of 1965, aiid all such funds shall be deemed to have been made 
available for such fund. Notwithstanding any other provision of law, 
unless enacted in specific limitation of the provisions of this sentence, 
any sums appropriated pursuant to section 303 (c) of the Higher Edu-
cation Facilities Act of 1963 for any fiscal year ending prior to July 1, 
2o'usc 743*. 
1973, which have not been loaned under title I I I of that Act of 1963 
20 use 741. 
shall be deemed to have been appropriated pursuant to section 741 (b) 
Ante, p. 295. 
of tho Higher Education Act of 1965 for the fiscal year ending ,Tune 30. 
1973. 
PART H—NETWORKS FOR KNOWLEDGE EXTENSION-
EXTENSION OF AUTHORIZATION OF APPROPRIATIONS 
SEC. 171. Effective after June 30, 1971, section 802 of the Higher 
90 V^r iit^' 
Education Act of 1965 is amended by inserting before the period at 
the end thereof "$5,000,000 for the fiscal year ending June 30, 1972, 
$10,000,000 for the fiscal year ending June 30, 1973, and $15,000,000 
for earn of the fiscal years ending June 30,1974., and June 30,1975". 
INCLUSION o r LAW AND GRADUATE PROFESSIONAL SCHOOLS 
20 u s e 1133. 
SEC. 172 (a) (1) Section 801 (a) of the Higher Education Act of 
1965 is amended by striking out the first sentence thereof and inserting 
in lieu thereof the following: "The Commissioner shall carry out a 
program of encouraging institutions of higher education (including 
law and other graduate professional schools) to share, to the optimal 
extent, through cooperative arrangements, their technical and other 
educational and administrative facilities and resources, and to test and 
demonstrate the effectiveness and efficiency of a variety of such 
arrangements, in accordance with this title. The Commissioner is 
authorized to make grants to, and contracts with, institutions of 
higher education to pay all or part of the cost of cooperative arrange-
ments and of pilot or demonstration projects designed to accomplish 
tlie purpose set forth in the first sentence of this subsection.". 
(2) Clause (1) (A) of section 801(b) of such Act is amended by 
inserting after "libraries" a comma and "including law libraries", 
and by inserting after "collections" a comma and "including law 
library collections,". 
Effective date. 
(j^^ ^\^Q amendments made by subsection (a) shall be effective after 
June 30,1972. 
PART I—GRADUATE PROGRAMS 
N E W T I T L E IX OF T H E HIGHER EDUCATION ACT OF 1!)G5 
(GRADUATE 
PROGRAMS) 
SEC. 181. (a) The Higher Education Act of 1965 is amended by 
20 u*sc / m ' 
striking out title I X and inserting in lieu thereof the following: 
"TITLE IX—GRADUATE PROGRAMS 
"PART A—GRANTS TO INSTITUTIONS OF HIGHER EDI'CATION 
"PURPOSES ; AUTHORIZATION 
"SEC. 901. (a) It is the purpose of this part to make financial assist-
ance available to institutions of higher education— 
"(1) to strengthen, improve and where necessary expand the 
quality of graduate and professional programs leading to an 
advanced degree (other than a medical degree) in such institu-
tions; 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
H i 
"(2) to establish, strengthen, and improve programs desired 
to prepare graduate and professional students for public service; 
and 
"(3) to assist in strengthening undergraduate programs of 
instruction in the areas described in clauses (2), (3), and (4), 
whenever the Commissioner determines that strengthened under-
graduate programs of instruction will contribute to the purposes 
of such clauses. 
, 
"(b) The Commissioner shall carry out a program of making 
grants to institutions of higher education to carry out the purposes 
set forth in subsection (a). 
"(c) There are authorized to be appropriated $30,000,000 for the 
fiscal year ending June 30,1973, $40,000,000 for the fiscal year ending 
June 30,1974, and $50,000,000 for the fiscal year ending June 30,1975, 
for the purposes of this part. 
a 
APPLICATIONS FOR GRAXT8 
"SEC. 902. (a) The Commissioner is authorized to make grants to 
institutions of higher education in accordance with the provisions of 
this part. An institution of higher education desiring to receive a grant 
under this part shall submit to the Commissioner an application there-
for at such time or times, in such manner, and containing such infor-
mation as the Commissioner may prescribe by regulation. Such, 
application shall set forth a program of activities for carrying out one 
or more of the purposes set forth in section 901(a) in such detail as 
will enable the Commissioner to determine the degree to which such 
program will accomplish such purpose or purposes, and such other 
policies, procedures, and assurances as the Commissioner may require 
by regulation. 
"(b) The Commissioner shall approve an application only if he 
determines that the application sets forth a program of activities 
which are likely to make substantial progress toward achieving the 
purposes of this part. 
u 
AUTHORIZED ACTIVITIES 
"SEC. 903. (a) The funds appropriated pursuant to section 901(c) 
may be used for such purposes as the Commissioner determines will best 
accomplish the purposes of this part. 
"(b) Such funds may be used solely for the purposes set forth in an 
application approved under section 902 and solely for the purpose of 
accomplishing the purposes stated in section 901(a), and to that end 
such funds may be used for— 
" Q) faculty improvement; 
"(2) the expansion of graduate and professional programs of 
study; 
" (3 ^ the acquisition of appropriate instructional equipment and 
materials; 
"(4) cooperative arrangements among graduate and profes-
sional schools; and 
"(5) the strengthening of graduate and professional school 
administration. 
"(c) No sums granted under this part may be used— 
"(1) for payment in excess of 66% per centum of the total 
cost of such project or activity; 
"(2) for payment in excess of 50 per centum of the cost of the 
purchase or rental of books, audiovisual aids, scientific apparatus, 
or other materials or equipment, less any per centum of such cost. 
Prohibitions. 
306 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
as determined by the ('oniiiiissioner, that is paid from sums 
received (other than under this part) as Federal financial assist-
ance; or 
'"(B) for sectarian instruction or religious woi-ship, or primarily 
in connection with any pait of the program of a school or de]>art-
ment of divinity. 
"KKSEAKCH AND STVDIES 
"SKC. 904. The Commissioner is authorized, directly or by contract, 
ro conduct studies and research activities in coioiection witli the need 
for, and improvement of, graduate programs in various fields of study 
in institutions of higher education throughout the United States. 
"PART 1^—(TKADI AJT-: FELLOWSHIPS FOR (3ARF:ERS IN P(>S'J\SE('()XI)ARY 
EDUCATION 
"AITROPRIATIONS AVTJIORIZED 
•'SEC. 921. There are hereby authorized to be appropriated such sums 
as may be necessary to carry out the provisions of this pait. 
•'NUMBER or FELLOWSHIPS 
••SEC. 922. (a) During the fiscal year ending June 80, 1973, and 
each of the two succeeding fiscal years, the Commissioner is authorized 
C
O award not to exceed seven thousand five hundred fellowships to be 
used for study in graduate programs at institutions of higher" educa-
tion. Such fellowships may be aw^arded for such period of study as 
the Commissioner may determine, but not in excess of three academic 
years, except (1) that where a fellowship holder pursues his studies 
as a i-egularly enrolled student at the institution during pei'iods out-
side the reg'ular sessions of the graduate program of the institution, 
a fellowship may be aw^arded for a period not in excess of three 
calendar years, and (2) that the Commissioner may provide by regula-
tion for- the gi-anting of such fellowships for a period of study not to 
exceed one academic year (or one calendar year in the case of fellow-
ships to which clause (1) applies) in addition to the maximum period 
otherwise applicable, under special circumstances in which the pur-
poses of this part would most effectively be served thereby. 
"(b) In addition to the number of fellowships authorized to be 
awarded by subsection (a) of this section, the Commissioner is au-
thorized to award fellowships equal to the number previously aw^arded 
during any fiscal year under this section but vacated prior to the end 
of the period for which they were awarded; except that each fellow-
ship awar-ded under- this subsection shall be for such period of study, 
not in excess of the remainder of the period for which tlie fellowship 
which it replaces w^as awarded, as the Commissioner may determine. 
•'AWARD OF F E L L O W S H I P S A N D APPROVAL OF INSTITUTIONS 
•'C-. 
'SEC. 923. (a) Of the total number of fellowships authorized by sec-
tion 922(a) to be awarded during a fiscal year (1) not less than one-
third shall be awarded to individuals accepted for study in graduate 
programs approved by the Commissioner under this section, and (2) 
the remainder shall be awarded on such bases as he may detei'mine, sub-
ject to the provisions of subsection (c). The Commissioner shall 
approve a graduate program of an institution of liigher education only 
upon application by the institution and only upon his finding that the 
86 STAT.] 
PUBLIC LAW 9 2 - 3 1 8 - J U N E 23, 1972 
307 
application contains satisfactory assurance that the institution will 
provide special orientation and practical experiences designed to pre-
pare its fellowship recipients for academic careers at some level of 
education beyond the high school. 
" (b) In determining priorities and procedures for the award of fel-
lowships under this section, the Commissioner shall— 
"(1) take into account present and projected needs for highly 
trained teachers in all areas of education beyond the high school, 
"(2) give special attention to those institutions which have 
developed new doctoral-level programs especially tailored to pre- , 
pare classroom teachers, 
"(3) consider the need to prepare a larger number of teachers 
and other academic leaders from minority groups, but nothing-
contained in this clause shall be interpreted to require any educa-
tional institution to grant preference or disparate treatment to the 
members of one minority group on account of an imbalance which 
may exist with respect to the total number or percentage of per-
sons of that group participating in or receiving the benefits of 
this program, in comparison with the total number or percentage 
of persons of that group in any community. State, section, or 
other area, 
"(4) assure that at least one-half of all new fellowship recipi-
ents have demonstrated their competence outside of a higher edu-
cation setting for at least two years subsequent to the completion 
of their undergraduate studies, 
"(5) allow a fellowship recipient to interrupt his studies for up 
to one year for the purpose of work, travel, or independent study 
away from the campus, except that no stipend or travel expenses 
may be paid for such period, and 
"(6) seek to achieve a reasonably equitable geographical dis-
tribution of graduate programs approved under this section, 
based upon such factors as student enrollments in institutions of 
higher education and population. 
"(c) Recipients of fellowships under this part shall be persons who 
are interested in an academic career in educational programs beyond 
the high school level and are pursuing, or intend to pursue, a course 
of study leading to a degree of doctor of philosophy, doctor of arts, 
oi- an equivalent degree. 
*'(d) No fellowship shall be awarded under this part for study at a 
P'-ohibition. 
school or department of divinity. 
''FELLOWSHIP STIPENDS 
"SEC. 924. (a) The Commissioner shall pay to persons awarded 
fellowships under this part such stipends (including such allowances 
for subsistence and other expenses for such persons and their depend-
ents) as he may determine to be consistent with prevailing practices 
under comparable federally supported programs. 
•'(b) The Commissioner shall (in addition to the stipends paid to 
persons under subsection (a)) pay to the institution of higher educa-
tion at which such person is pursuing his course, of study, in lieu of 
tuition charged such person, such amounts as the Commissioner may 
determine to be consistent with prevailing practices under comparable 
federally supported programs, except that such amount shall not 
exceed $4,000 per academic year for any such person. 
"FELLOWSHIP CONDITIONS 
"SEC. 925. (a) A person awarded a fellowship under the provisions 
of this part shall continue to receive the payments provided in section 
308 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
20 u*sc /oe^^" 
^^'^ V^^^y during sucli periods as the Coiiiinissioner finds that lie is main-
taining satisfactory proficiency in, and devoting essentially full time 
to, study or research in the field in which such fellowship was awarded, 
in an institution of higher education, and is not engaging in gainful 
employment other than part-time employment by such institution in 
teaching, research, or similar activities, approved by the Commissioner. 
^^p°'-^^- 
"(b) The Commissioner is authorized to require reports containing 
such information in such form and to be filed at such times as he 
determines necessary from any person awarded a fellowship under 
the provisions of this part. Such reports shall be accompanied by a 
certificate from an appropriate official at the institution of higher 
education, library, archive, or other research center approved by the 
Commissioner, stating that such person is making satisfactory progress 
in, and is devoting essentially full time to, the program for Avnich the 
fellowship was awarded. 
"PART C—PujiLic SERVICE FELLOWSHIPS 
"AWARD OF PL'BLIC SERVICE FELLOWSHIPS 
"SEC. 941. (a) During the fiscal year ending June 30,1973, and each 
of the two succeeding fiscal years, the Commissioner is authorized to 
award not to exceed five hundred fellowships in accordance with the 
provisions of this part for graduate or professional study for j^ersons 
who plan to pursue a career in public service. Such fellowships shall 
be awarded for such periods as the Commissioner may determine but 
not to exceed three academic years. 
Appropriation. 
a ^^^ Thcrc are hereby authorized to be appropriated such sums as 
may be necessary to carry out the provisions of this part. 
"ALLOCATIOX or FELLOWSHIPS 
^ "SEC. 942. The Commissioner shall allocate fellowships under this 
pait among institutions of higher education with programs approved 
under the provisions of this part for the use of individuals accepted 
into such programs, in such manner and according to such plan as will 
insofar as practicable— 
"'(l) provide an equitable distribution of such fellowships 
throughout the LTnited States; and 
" (2) attract recent college graduates to pursue a career in public 
service. 
"APPROVAL or PROGRAMS 
"SEC. 943. The Connnissioner shall approve a graduate or profes-
sional program of an institution of higher education only upon 
application by the institution and only upon his findings— 
"(1) that such program has as a principal or significant objec-
tive the education of persons for the public service, or the education 
of persons in a profession or vocation for whose practitioners there 
is a significant continuing need in the public service as determined 
by the Commissioner after such consultation with other agencies 
as may be appropriate; 
"(2) that such program is in effect and of high quality, or can 
readily be put into effect and may reasonably be expected to be of 
< 
high quality; 
"(3) that the application describes the relation of such pro-
gram to any progr-am, activity, research, or development set forth 
by the appUcant in an application, if any, submitted pursuant to 
section 901(a) (2); and 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
"(4) that the application contains satisfactory assurance that 
(A) the institution will recommend to the Commissioner, for the 
award of fellowships under this part, for study in such program, 
only persons of superior promise who have demonstrated to the 
satisfaction of the institution a serious intent to enter the public 
service upon completing the program, and (B) the institution will 
make reasonable continuing efforts to encourage recipients of fel-
lowships under this part, enrolled in such programs, to enter the 
public service upon completing the program. 
"STIPENDS 
"SEC. 944. (a) The Commissioner shall pay to persons awarded 
fellowships under this part such stipends (including such allowances 
for subsistence and other expenses for such persons and their depend-
ents) as he may determine to be consistent with prevailing practices 
under comparable federally supported programs. 
"(b) The Commissioner shall (in addition to the stipends paid to 
persons under subsection (a)) pay to the institution of higher educa-
tion at which such person is pursuing his course of study such amount 
as the Commissioner may determine to be consistent with prevailing 
practices under comparable federally supported programs. 
"FELLOWSHIP CONDITIOXS 
"SEC. 945. (a) A person awarded a fellowship under the provisions 
of this part shall continue to receive the payments provided in this 
part only during such periods as the Commissioner finds that he is 
maintaining satisfactory proficiency and devoting full time to study 
or research in the field in which such fellowship was awarded in an 
institution of higher education, and is not engaging in gainful 
employment other than employment approved by the Commissioner by 
or pursuant to regulation. 
"(b) The Commissioner is authorized to require reports containing 
such information in such form and to be filed at such times as he 
determines necessary from any person awarded a fellowship under 
the provisions of this part. Such reports shall be accompanied by a 
certificate from an appropriate official at the institution of higher edu-
cation, library, archive, or other research center approved by the Com-
missioner, stating that such person is making satisfactory progress in, 
and is devoting essentially full time to, the program for which the 
fellowship was awarded. 
"(c) No fellowship shall be awarded under this part for study at a 
school or department of divinity. 
"PART D—FELLOWSHIPS FOR OTHER PURPOSES 
Reports. 
Prohibition. 
"PROGRAM 
AUTHORIZED 
"SEC. 961. (a) It is the purpose of this part to provide fellowships— 
"(1) to assist graduate students of exceptional albility who dem-
onstrate a financial need for advanced study in domestic mining 
and mineral and mineral fuel conservation including oil, gas, coal, 
oil shale, and uranium; and 
"(2) for persons of ability from disadvantaged backgrounds, as 
determined by the Commissioner, undertaking graduate or pro-
fessional study. 
The demonstration of financial need shall be determined in accordance 
with regulations prescribed by the Commissioner. 
Regulations. 
310 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Limitation. 
Post, p. 311. 
Travel allow-
ance. 
"(b) (1) The Commissioner is authorized to award mider tlie pro-
visions of this part not to exceed five hmidred fellowships for the 
fiscal year ending June 30, 1973, and for each of the two succeeding 
fiscal years. Appropriations made pursuant to section 965 for fellow-
ships awarded under clause (2) of subsection (a) of this section may 
not exceed $1,000,000 in any fiscal year. 
"(2) In addition to the number of fellowships authorized to be 
awarded under paragraph (1), the Commissioner is authorized to 
aAvard fellowships equal to the number previously awarded during 
any fiscal year under this part but vacated prior to the end of the 
period for- which they were awarded except that each fellowship 
awarded under this paragraph shall be for such period of gi'aduate or 
professional work or research not in excess of the remainder of the 
period for which the fellow-ship it replaces was awarded as the Com-
missioner may determine. 
"(c) Fellowships awarded under this part shall be for graduate and 
professional study leading to an advanced degree or research incident 
to the presentation of a doctoral dissertation. Such fellowships may be 
awarded for graduate and professional study and research at any 
institution of higher education or any other research center approved 
for such purpose by the Commissioner. Such fellowships shall be 
awarded for such periods as the Commissioner may determine but not 
to exceed three years. 
" A W A R D o r FELLOWSHIPS 
"SEC. 962. Recipients of fellowships under this part shall be— 
" (1) persons who have been accepted by an institution of higher 
education for graduate study leading to an advanced degree or for 
a professional degree, or 
"(2) persons who have completed all course work required for 
granting of a doctoral degree or an equivalent degree (except such 
course work credited on the dissertation) and comprehensive exam-
inations where appropriate, and w^hose doctoral dissertation (or 
other equivalent dissertation) proposal has been approved by 
appropriate officials of an institution of higher education. 
u 
STIPENDS AND INSTITUTION OF HIGHER EDUCATION ALLOWANCES 
"SEC. 963. (a) The Commissioner shall pay to persons awarded fel-
lowships under this part such stipends as he may determine to be 
consistent with prevailing practices under comparable federally sup-
ported programs, except that the stipend shall not be less than $2,800 
for each academic year study. An additional amount of $300 for each 
such year shall be paid to each such person on account of each of his 
dependents, not to exceed the amount of $1,500 per academic year. 
"(b) In addition to the amount paid to persons pursuant to subsec-
tion (a) there shall be paid to the institution of higher education at 
which each such person is pursuing his course of study an amount 
equal to 150 per centum of the amount paid to such person, less the 
amount paid on account of each of such person's dependents, to such 
person, less any amount charged such person for tuition. 
"(c) The Commissioner shall reimburse any person awarded a fel-
lowship pursuant to this part for actual and necessary traveling 
expenses of such person and his dependents from his ordinary place of 
residence to the institution of higher education, library, archive, or 
other research center where he will pursue his studies under such fel-
lowship, and to return to such residence. 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
"FELLOWSHIP CONDITIONS 
"SEC. 964. (a) A person awarded a fellowship under the provisions 
of this part shall continue to receive the payments provided in this part 
only during such periods as the Commissioner finds that he is maintain-
ing satisfactory proficiency and devoting full time to study or research 
in the field in which such fellowship was awarded in an institution of 
higher education, and is not engaging in gainful employment other 
than employment approved by the Commissioner by or pursuant to 
regulation. 
"(b) The Commissioner is authorized to require reports containing 
such information in such form and to be filed at such times as he deter-
mines necessary from any person awarded a fellowship under the pro-
visions of this part. Such reports shall be accompanied by a certificate 
from an appropriate official at the institution of higher education, 
library, archive, or other research center approved by the Commis-
sioner, stating that such person is making satisfactory progress in, and 
is devoting essentially full time to, the program for which the fellow-
ship was awarded. 
"(c) No fellowship shall be awarded under this title for study at a 
school or department of divinity. 
"APPROPBIATIONS AUTHORIZED 
"SEC. 965. There are authorized to be appropriated such sums as may 
be necessary for the purposes of this part.". 
EXTENSION AND EXPANSION OF TITLE VI OF T H E NATIONAL 
DEFENSE EDUCATION ACT 
SEC. 182. (a) Section 601 of the National Defense Education Act of 
1958 is amended to read as follows: 
" L A N G U A G E 
A N D AREA CENTERS xVND PROGRAMS 
"SEC. 601. (a) The Secretary is authorized to make grants to or con-
tracts with institutions of higher education for the purposes of estab-
lishing, equipping, and operating graduate and undergraduate centers 
and programs for the teaching of any modern foreign language, for 
instruction in other fields needed to provide a full understanding of the 
areas, regions, or countries in which such language is commonly used, 
or for research and training in international studies and the interna-
tional aspects of professional and other fields of study. Any such grant 
or contract may cover all or part of the cost of the establishment or 
operation of a center or program, including the costs of faculty, stafi', 
and student travel in foreign areas, regions, or countries, and the costs 
of travel of foreign scholars to teach or conduct research, and shall be 
made on such conditions as the Secretary finds necessary to carry out 
the purposes of this section. 
"(b) The Secretary is also authorized to pay stipends to individuals 
undergoing advanced training in any center or under any program 
receiving Federal financial assistance under this title, including allow-
ances for dependents and for travel for research and study here and 
abroad, but only upon reasonable assurance that the recipients of such 
stipends will, on completion of their training, be available for teaching 
service in an institution of higher education or elementary or secondary 
school, or such other service of a public nature as may be permitted in 
the regulations of the Secretary. 
311 
Reports. 
Prohibition. 
72 Stat. 1593. 
20 u s e 511. 
Contract 
authority. 
82-081 O - 73 - 23 
312 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Restriction. 
"(e) Xo fuiids luay be expended under this title for undergraduate 
travel except in accordance with rules prescribed by the Secretary 
settinj>- foith policies and procedures to assure that Federal funds 
made available for such travel are expended as part of a foraial prx)-
gram of supervised study.". 
sa^stat^VoV?"^' 
^^) Section 603 of such Act is amended by striking out "and 
20 use 513. 
$38,500,000 for the fiscal year ending June 30, 1971," and by inserting 
in lieu thereof the following: "$38,500,000 for each of the fiscal years 
ending June 30,1971, and June 30,1972, $50,000,000 for the fiscal year 
ending June 30,1973, and $75,000,000 for each of the fiscal years ending 
June 30,1974, and June 30,1975,". 
KXTEXSION OF THE INTERNATIONAL EDUCATION ACT OF 1»()6 
82*stat^Vo62^^' 
SEC. 183. Sectiou 105(a) of the International Education Act of 1966 
2 0 use 1176. 
is amended by inserting after the second sentence thereof the following 
new sentence: "There are authorized to be appropriated $20,000,000 
for the fiscal year ending June 30, 1973, $30,000,000 for the fiscal year 
ending June 30, 1974, and $40,000,000 for the fiscal year ending 
June 30, 1975, for the purpose of carrying out the provisions of this 
title.". 
iii'il('A-''^i. 
PART J—IMPROVEMENT OF COMMUNITY COLLEGES AND OCCUPATIONAL 
EDUCATION 
AMENDMENT TO T H E TITLE X OF T H E HIGHER EDUCATION ACT or 1965 
82 Stat. 1047. 
SEC. 186. (a) (1) Title X of the Higher Education Act of 1965 is 
20 use 1135. 
amended to read as follows; 
. 
> 
,• 
• 
- 
"TITLE X—COMMUNITY COLLEGES AND 
'a-e ^V; 
OCCUPATIONAL EDUCATION 
"PART A—ESTABLISHMENT AND EXPANSION OF COMMUNITY COLLEGES 
.H.odtis 
"Subpart 1—Statewide Plans 
"SEC. 1001. (a) Each State Commission (established or designated 
Post. p. 324. 
under section 1202) of each State which desires to receive assistance 
under this subpart shall develop a statewide plan for the expansion or 
improvement of postsecondary education programs in community col-
leges or both. Such plan shall among other things— 
"(1) designate areas, if any, of the State in which residents do 
not have access to at least two years of tuition-free or low-tuition 
postsecondary education within reasonable distance; 
"(2) set forth a comprehensive statewide plan for the establish-
ment, or expansion, and improvement of community colleges, or 
both, which would achieve the goal of making available, to all 
residents of the State an opportunity to attend a community col-
Post, p. 315. 
lege (as defined in section 1018); 
" (3) establish priorities for the use of Federal and non-Federal 
financial and other resources which would be necessary to achieve 
the goal set forth in clause (2) ; 
"(4) make recommendations with respect to adequate State and 
local financial support, within the priorities set forth pursuant to 
cl ause (3), f 
or community colleges; 
"(5) set forth a statement analyzing the duplications of post-
secondary educational programs and make recommendations for 
the coordination of such programs in order to eliminate unneces-
sary or excessive duplications; and 
_ ^
, 
86 STAT.] 
PUBLIC LAW 92-318-JUNE 23, 1972 
313 
" (6) set forth a plan for the use of existing and new educational 
resources in the State in order to achieve the goal set forth in 
clause (2), including recommendations for the modification of 
State plans for federally assisted vocational education, commu-
nity services, and academic facilities as they may affect commu-
nity colleges. 
In carrying out its responsibilities under this subsection, each State 
Commission shall establish an advisory council on community colleges 
which shall— 
"(A) be composed of— 
"(i) a substantial number of persons in the State (includ-
ing representatives of State and local agencies) having 
responsibility for the operation of community colleges; 
"(ii) representatives of State agencies having responsi-
bility for or an interest in postsecondary education; and 
" (iii) the general public; 
"(B) have responsibility for assisting and making recommen-
dations to the State Commission in developing the statewide plan 
required under this section; 
"(C) conduct such hearings as the State Commission may deem 
advisable; and 
"(D) pursuant to requirements established by the State Com-
mission, provide each State and local agency within the State 
responsible for postsecondary education an opportunity to review 
and make recommendations with respect to such plan. 
"(b) (1) There is hereby authorized to be appropriated $15,700,000 
during the period beginning July 1, 1972, and ending June 30, 1974, 
to carry out the provisions of this section. 
"(2) Sums appropriated pursuant to paraarraph (1) shall be 
allotted by the (Jommissioner equally among the States, except that 
the amount allotted to Guam, American Samoa, and the Virgin Islands 
shall not exceed $100,000 each. Such sums shall remain available until 
expended. 
"(c) Each plan developed and adopted pursuant to subsection (a) 
shall be submitted to the Commissioner for his approval. The Com-
missioner shall not approve any plan unless he determines that it 
fulfills the requirements of this section. 
"Subpart 2—Establishment and Expansion of Community Colleges 
Advisory coun-
cils on c ommunit y 
colleges. 
Appropriation. 
U PROGRAM 
AUTHORIZATION 
"SEC. 1011. (a) In order to encourage and assist those States and 
localities which so desire in establishing or expanding community 
colleges, or both, the Commissioner shall carry out a program as 
provided in this subpart for making grants to community colleges 
in order to improve educational opportunities available through com-
munity colleges in such States. 
"(b) For the purpose of carrying out this subpart, there are 
authorized to be appropriated $50,000,000 for the fiscal year ending 
June 30.1973, $75,000,000 for the fiscal year ending June 30.1974, and 
S150,000,000 for the fiscal year ending June 30,1975. 
Appropriations . 
ii APPORTIONMENTS 
"SEC. 1012. (a) From the sums appropriated pursuant to section 
1011 (b) for each fiscal year the Commissioner shall apportion not more 
than 5 per centum thereof among Puerto Rico, Guam, American Samoa 
and the Virgin Islands according to their respective needs. From the 
"State." 
314 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
remainder of sucli sums the Commissioner shall apportion to each 
State aji amount which bears the same ratio to such remainder as the 
population aged eighteen and over in such State bears to the total of 
such population in all States. For the purpose of the second sentence 
of this subsection, the term 'State' does not include Puerto Rico, Guam, 
American Samoa and the Virgin Islands. 
"(b) The portion of any State's apportionment under subsection (a) 
for a fiscal year which the Commissioner determines will not be 
required, for the period such apportionment is available, for carrying 
out the purposes of this subpart shall be available for reapportionment 
from time to time, on such dates during such period as the Commis-
sioner shall fix, to other States in proportion to the original apportion-
ments to such States under subsection (a) for such year but with such 
proportionate amount for any of such other States being reduced to the 
extent it exceeds the sum w^hich the Commissioner estimates such State 
needs and will be able to use for such period for carrying out such por-
tion of its State plan referred to in section 1001(a)(2) approved 
under this subpart, and the total of such reductions shall be similarly 
reapportioned among the States whose proportionate amounts are not 
so reduced. Any amount reapportioned to a State under this subsec-
tion during a year shall be deemed part of its apportionment under 
subsection (a) for such year. 
•'ESTABLISHMENT GRANTS 
"SEC. 1013. (a) The Commissioner is authorized to make grants to 
new community colleges to assist them in planning, developing, estab-
lishing, and conducting initial operations of new xjommunity colleges 
in areas of the States in which there are no existing community col-
leges or in which existing community colleges cannot adequately pro-
vide postsecondary educational opportunities for all of the residents 
thereof who desire and can benefit from postsecondary education. 
"New com- ^
^ 
" (jj) FoT the purposes of subsectlou (a), the term'uew commuulty 
lum yco ege. 
(.Qllege' meaus a board of trustees or other governing board (or its 
equivalent) which is established by, or pursuant to, the law of a State, 
or local government, for the purpose of establishing a community col-
Posf, p. 315. 
lege, as defined in section 1018, or any existing board so established 
which has the authority to create, and is in the process of establishing, 
a new community college. 
" E X P A N S I O N GRANTS 
"SEC. 1014. The Commissioner is authorized to make grants to exist-
ing community colleges to assist them— 
"(1) in expanding their enrollment capacities, 
"(2) in establishing new campuses, and 
" (3) in altering or modifying their educational programs, 
in order that they may (A) more adequately meet the needs, interests, 
- ' 
' 
and potential benefits of the communities they serve, or (B) provide 
educational programs especially suited to the needs of educationally 
disadvantaged persons residing in such communities. 
(( 
LEASE OF FACILITIES 
"SEC. 1015. (a) The Commissioner is authorized to make grants 
to community colleges to enable them to lease facilities, for a period 
of not to exceed five years, in connection with activities carried out by 
them under section 1013 or section 1014. 
86 
STAT.] 
PUBLIC LAW 92-318-JUNE 23, 1972 
315 
"(b) The Federal sliare of carrying out a project through a grant 
under this section shall not exceed— 
" (1) 70 per centum of the cost of such project for the fii-st year 
of assistance under this section; 
"(2) 50 per centum thereof for the second such year; 
"(3) 30 per centum thereof for the third such year; and 
"(4) 10 per centum thereof for the fourth such year. 
•'APPLICATIONS ; FEDERAL SHARE 
"SEC. 1016. (a)(1) Grants under sections 1013 and 1014 may be 
made only upon application to the Commissioner. Applications for 
assistance under such sections shall be submitted at such time, in such 
manner and form, and containing such information as the Commis-
sioner shall require by regulation. 
"(2) Xo application submitted pursuant to paragraph (1) shall be 
approved unless the Commissioner determines that it is consistent 
with the plan approved by him under section 1001 from the State in 
which the applicant is located. 
"(b) (1) Xo application for assistance under section 1013 or 1014 
shall be approved for a period of assistance in excess of four years. 
''(2) The Federal share of the cost of carrying out the project for 
which assistance is sought in an application submitted pursuant to 
this section shall not exceed— 
" (A) 40 per centum of such cost for the first year of assistance: 
"(B) 30 per centum thereof for the second year of assistance; 
" (C) 20 per centum thereof for the third year of assistance; and 
•'(D) 10 per centum thereof for the fourth year of assistance. 
"(c) (1) Funds appropriated pui-suant to section 1011 and granted 
luider section 1013 or 1014 shall, subject to paragraph (2), be avail-
able for those activities the Commissioner determines to be necessary 
to carry out the purposes of such sections. 
"(2) Such funds may be used (A) to remodel or i-enovate existing 
facilities, or (B) to equip new and existing facilities, but such funds 
may not be used for the construction of new facilities or the acquisition 
of existing facilities. 
"PAYMENTS 
"SEC. 1017. From the amount apportioned to each State pureuant 
to section 1012, the Commissioner shall pay to each applicant from 
that State which has had an application for assistance approved under 
this subpart the Federal share of the amount expended under such 
application. 
"DEFINITIONS 
"SEC. 1018. As used in this title, the term 'community college' means 
any junior college, postsecondary vocational school, technical institute. 
or any other educational institution (which may include a four-year 
institution of higher education or a branch thereof) in any State 
which— 
"(1) is legally authorized within such State to provide a pro-
gram of education beyond secondary education; 
"(2) admits as regular students persons who are high school 
graduates or the equivalent, or at least 18 years of age; 
"(3) provides a two-year postsecondary educational program 
leading to an associate degree, or acceptable for credit toward a 
bachelor's degree, and also provides programs of postsecondary 
vocational, technical, occupational, and specialized education ; 
" (4) is a public or other nonprofit institution; 
Federal share, 
limitations. 
Limitations. 
Post, p. 318. 
316 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
"(5) is accredited as an institution by a nationally recognized 
accreaiting agency or association, or if not so accredited— 
" (A) is an institution that has obtained recognized pre-
accreditation status from a nationally recognized accrediting 
body, or 
''(B) is an institution whose credits are accepted on trans-
fer, by not less than three accredited institutions, for credit 
on the same basis as if transferred from an institution so 
accredited. 
"PART B—OCCUPATIONAL EDUCATION PROGRAMS; 
' 
" 
"AUTHORIZATION OF APPROPRIATIONS 
"SEC. 1051. For the purpose of carrying out this part, there are 
hereby authorized to be appropriated $100,000,000 for the fiscal year 
ending June 30,1973, $250,000,000 for the fiscal year ending June 30. 
1974, and $500,000,000 for the fiscal year ending June 30,1975. Eighty 
per centum of the funds appropriated for the first year for which funds 
are appropriated under this section shall be available for the purposes 
of establishing administrative arrangements under section 1055, mak-
ing planning grants under section 1056, and for initiating programs 
Post, p. 319. 
under section 1057 in those States which have complied with the 
planning requirements of section 1056; and 20 per centum shall be 
Post. p. 321. 
available only for technical assistance under section 1059 (a). From the 
amount appropriated for each succeeding fiscal year 15 per centum 
shall be reserved to the Commissioner for grants and contracts pursu-
ant to section 1059 (b). 
" A L L O T M E N T S A N D R E A L L O T M E N T S A M O N G STATES 
"SEC. 1052. (a) From the sums appropriated under section 1051 for 
the first year for which funds are appropriated under that section 
(other than funds available only for technical assistance), the Com-
missioner shall first allot such sums as they may require (but not to 
exceed $50,000 each) to American Samoa and the Trust Territory of 
the Pacific Islands. From the remainder of such sums he shall allot to 
each State an amount which bears the same ratio to such remainder as 
the number of persons sixteen years of age or older in such State bears 
to the number of such persons in all the States, except that the amount 
allotted to each State shall not be less than $100,000. 
"(b) From the sums appropriated for any succeeding fiscal year 
under such section (other than funds reserved to the Commissioner), 
the Commissioner shall first allot such sums as they may require (but 
not to exceed $500,000 each) to American Samoa and the Trust Ter-
ritory of the Pacific Islands. From the remainder of such sums he shall 
allot to each State an amount which bears the same ratio to such 
remainder as the number of persons sixteen years of age or older in 
such State bears to the number of such persons in all the States, except 
that the amount allotted to each State shall not be less than $500,000. 
"(c) The portion of any State's allotment under subsection (a) or 
(b) for a fiscal year which the Commissioner determines will not be 
required, for the period such allotment is available, for carrying out 
the purposes of this part shall be available for reallotment from time 
to time, on such date or dates during such periods as the Commissioner 
may fix, to other States in proportion to the original allotments to such 
States under subsection (a) or (b) for such year, but with such propor-
tionate amount for any of such other States being reduced to the extent 
it exceeds the sum which the Commissioner estimates such States need 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
317 
and will be able to use for such period, and the total of such reductions 
shall be similarly reallotted among the States whose proportionate 
amounts are not so reduced. Any amount reallotted to a State under 
this subsection dui'ing a year shall be deemed pai-t of its allotment 
under subsection (a) or (b) for such year. 
"FEDERAL ADMINISTRATION 
''SEC. 1058. The Secretary shall develop and carry out a program 
designed to promote and encourage occupational education, which pro-
gram shall— 
"(1) provide for the administration b}^ the Commissioner of 
Education of grants to the States authorized by this part; 
. s-j 
"(2) assure that manpower needs in subprofessional occupa-
tions in education, health, rehabilitation, and community and wel-
fare services are adequately considered in the development of 
programs under this part ; 
"(3) promote and encourage the coordination of programs 
developed under this part with those supported under part A of 
this title, the Vocational Education Act of 1963, the Manpower 
20 use 1241 
Development and Training Act of 1962, title I of the Economic "°42usc 2571 
Opportunity Act of 1964, the Public Health Service Act, and note. 
related activities administered by various departments and agen- 
'^^ ^^^ ^ru, 
cies of the Federal Government; and 
"(4) proA^de for the continuous assessment of needs in occupa-
tional education and for the continuous evaluation of programs 
supported under the authority of this part and of related provi-
sions of law. 
201 note. 
"GENERAL RESPONSIBILITIES OF COMMISSIONER OF EDUCATION 
"SEC. 1054. The Commissioner shall, in addition to the specific 
responsibilities imposed by this part, develop and carry out a program 
•)f occupational education that will— 
"(1) coordinate all programs administei-ed by the Commissioner 
which specifically relate to the provisions of this part so as to 
provide the maximum practicable support for the objectives of 
this part; 
"(2) promote and encourage occupational preparation, counsel-
ing and guidance, and job placement or placement in postsecond-
ary occupational education programs as a responsibility of 
elementary and secondary schools ; 
"(3) utilize research and demonstr-ation programs administer-ed 
by him to assist in the development of new and improved instruc-
tional methods and technology for occupational education and in 
the design and testing of models of schools or school systems which 
place occupational education on an equal footing with academic 
education; 
"(4) assure that the Education Professions Development Act 
and similar programs of general application will be so adminis-
tered as to provide a degree of support for vocational, technical, 
and occupational education commensurate Avith national needs and 
more nearly representative of the relative size of the population 
to be served; and 
"(5) develop and disseminate accurate information on the status 
of occupational education in all parts of the Nation, at all levels 
of education, and in all types of institutions, together with infor-
mation on occupational oppoi-tunities available to persons of all 
ag-es. 
79 Stat. 1254; 
81 Stat. 93. 
20 u s e 1091 
note. 
note 
318 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
''STATE ADMINISTRATION-
'"SEC. 1055. (a) Any State desiring to participate in the [)rograni 
authorized by this part shall in accordance with State hnv establish a 
State agency or designate an existing State agency which will have 
sole responsibility for fiscal management and administration of the 
program, in accordance with the plan approved under this part, and 
which adopts administrative arrangements which will provide assur-
ances satisfactory to the Commissioner that— 
"(1) the State Advisory Council on Vocational Education will 
be charged with the same responsibilities with respect to the pro-
gram authorized by this part as it has with respect to programs 
82 Stat. 1064. 
authoHzed under the Vocational Education Act of 1963; 
2 0 use 1241 
"(2) there is adequate provision for individual institutions or 
groups of institutions and for local educational agencies to appeal 
and obtain a hearing from the State administrative agency with 
respect to policies, procedures, programs, or allocation of resources 
under this part with which such institution or institutions or 
such agencies disagree. 
"(b) The Commissioner shall approve any administrative arrange-
ments which meet the requirements of subsection (a), and shall not 
finally disapprove any such arrangements without affording the State 
administrative agency a reasonable opportunity for a hearing. Upon 
the final disapproval of any arrangement, the provisions for judicial 
Post, p. 320. 
review set forth in section 1058 (b) shall be applicable. 
" P L A N N I N G GRANTS FOR STATE OCCUPATIONAL EDUCATION PROGRAMS 
"SEC. 1056. (a) Upon the application of a State Commission (estab-
Post, p. 324. 
lished or designated pursuant to section 1202), the Commissioner shall 
make available to the State the amount of its allotment under section 
1052 for the following purposes— 
" (1) to stren^hen the State Advisory Council on Vocational 
Education in order that it may effecti^-ely carry out the additional 
functions imposed by this part; and 
"(2) to enable the State Commission to initiate and conduct a 
comprehensive program of planning for the establishment of the 
program authorized by this part. 
"(b) (1) Planning activities initiated under clause (2) of subsection 
(a) shall include— 
"(A) an assessment of the existing capabilities and facilities for 
the provision of postsecondary occupational education, together 
with existing needs and projected needs for such education in all 
parts of the State; 
"(B) thorough consideration of the most effective means of 
utilizing all existing institutions within the State capable of pro-
viding the kinds of programs assisted under this part, including 
(but not limited to) both private and public community and junior 
colleges, area vocational schools, accredited private proprietary 
institutions, technical institutes, manpower skill centers, branch 
institutions of State colleges or universities, and public and pri-
vate colleges and universities; 
"(C) the development of an administrative procedure which 
provides reasonable promise for resolving differences between 
vocational educators, community and junior college educators, col-
lege and university educators, elementary and secondary educa-
tors, and other interested groups with respect to the administration 
of the program authorized under this part; and 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
319 
"(D) the development of a long-range stnitegy for infusing 
occupational education (including general orientation, counsel-
ing and guidance, and placement either in a job or in postsec-
ondary occupational programs) into elementary and secondary 
schools on an equal footing with traditional academic education, 
to the end that every child who leaves secondary school is prepared 
either to enter productive employment or to undertake additional 
education at the postsecondary level, but without being forced 
prematurely to make an irrevocable commitment to a particular 
educational or occupational choice; and 
"(E) the development of procedures to insure continuous pLan-
ning and evaluation, including the regular collection of data 
which would be readily available to the State administrative 
agency, the State Advisory Council on Vocational Education, 
individual educational institutions, and other interested parties 
(including concerned private citizens). 
"(2) Planning activities carried on by the State Commission under 
this section shall involve the active participation of— 
"(A) the State board for vocational education; 
"(B) the State agency having responsibility for community 
and junior colleges; 
"(C) the State agency having responsibility for higher educa-
tion institutions or programs; 
"(D) the State agency responsible for administering public 
elementary and secondary education; 
"(E) the State agency responsible for progi-ams of adult basic 
education; 
"(F) repi-esentatives of all types of institutions in the State 
which are conducting or which have the capability and desire to 
conduct programs of postsecondary occupational education; 
"(G) representatives of private, nonprofit elementary and sec-
ondary schools: 
"(H) the State employment security agency, the State agency 
responsible for apprenticeship })rograms. and other agencies 
within the State having responsibility for administering man-
power development and training programs; 
"(I) the State agency responsible for economic and industrial 
development; 
"(J) persons familiar with the occupational education needs 
of the disadvantaged, of the handicapped, and of minority 
groups; and 
"(K) representatives of business, industry, organized labor, 
agriculture, and the general public. 
"(c) The Commissioner shall not approve any application for a 
grant under section 1057 of this part unless he is reasonably satisfied 
that the planning described in this section (whether or not assisted by 
a grant under this section) has been carried out. 
"PROGRAM GRANTS FOR STATE OCCUPATIONAL EDUCATION PR06RA3IS 
"SEC. 1057. (a) From the allotments available to the States under 
section 1052(b) (upon application by the State administrative agency 
designated or established under section 1055), the Commissioner shall 
make grants to any State which has satisfied the requirements of sec-
tion 1058. Such grants may be used for the following purposes— 
"(1) assist the State administrative agency designated or estab-
lished under section 1055; 
320 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
" (2) the design^ establishment, and conduct of programs of 
postsecondary occupational education (or the expansion and im-
provement of existing programs) as defined by section 1060 of 
this part; 
" (3) the design, establishment, and conduct of programs to carry 
out the long-range strategy developed pursuant to section 1056 (b) 
(1) (D) for infusing into elementary and secondaiy education 
occupational preparation, which shall include methods of involv-
ing secondary schools in occupational placement and methods of 
providing followup services and career counseling and guidance 
for persons of all ages as a regular function of the educational 
system; 
"(4) the design of high-quality instructional programs to meet 
the needs for postsecondary occupational education and the devel-
opment of an order of priorities for placing these programs in 
operation; 
- ' 
"' (5) special training and preparation of persons to equip them 
to teach, administer, or otherwise assist in carrying out the pro-
gram authorized under this part (such as programs to prepare 
'J 
journeymen in the skilled trades or occupations for teaching 
positions); and 
^' 
" (6) the leasing, renting, or remodeling of facilities required to 
carry out the program authorized by this part. 
••(b) Programs authorized by this part may be carried out through 
••ontractual arrangements with private organizations and institutions 
organized for profit where such arrangements can make a contribution 
to achieving the purposes of this part by providing substantially 
equivalent education, training, or services more readily or more eco-
nomically, or by preventing needless duplication of expensive physical 
plant and equipment, or by providing needed education or training 
of the types authorized by this part which would not otherwise be 
available. 
"ASSURANCES; JUDICIAL REVIEW 
"SEC. 1058. (a) Before making any program grant under this part 
the Commissioner shall receive from the State Commission an assur-
ance satisfactory to him. that the planning requirements of section 
1056 have been met and from the State administrative agency assur-
V 
ances satisfactory to him that— 
"(1) the State Advisory Council on Vocational Education has 
had a reasonable opportunity to review and make recommenda-
.•,t 
tions concerning the design of the programs for which the grant 
is requested; 
''(2) Federal funds made available under this part will result 
in improved occupational education programs, and in no case 
i 
supplant State, local, or private funds; 
"(3) adequate provision has been made by such agency for pro-
grams described in section 1057 (a) (3) ; 
"(4) provision has been made for such fiscal control and fund 
accounting procedures as may be necessary to assure proper dis-
bursement of, and accounting for, Federal funds paid to the State 
under this part; 
"(5) to the extent consistent with the number of students 
enrolled in nonprofit private schools in the area to be served by 
an elementary or secondary school program funded under this 
»
5 part, provision has been made for the effective participation of 
such students; and 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
321 
"(6) reports will be made in such form and containing such 
Reports. 
information as the Commissioner may reasonably require to 
carry out his functions under this part. 
"(b) (1) Whenever the Commissioner, after reasonable notice and 
opportunity for a hearing to the State administrative agency, finds 
that any of the assurances required by subsection (a) are unsatisfac-
tory, or that in the administration of the program there is a failure 
to comply with such assurances or with other requirements of the 
part, the Commissioner shall notify the administrative agency that 
no further payments will be made to the State under this part until 
he is satisfied there has been or will be compliance with the require-
ments of the part. 
" (2) A State administrative agency which is dissatisfied with a final 
action of the Commissioner under this section or under section 1055 
(with respect to approval of State administration) may appeal to the 
United States court of appeals for the circuit in which the State is 
located, by filing a petition with such court within sixty days after such 
final action. A copy of the petition shall be forthwith transmitted by 
the clerk of the court to the Commissioner, or any officer designated by 
him for that purpose. The Commissioner thereupon shall file in the 
court the record of the proceedings on which he based his action, as 
provided in section 2112 of title 28, United States Code. Upon the filing go^sta^t^^lal^!' 
of such petition, the court shall have jurisdiction to affirm the action 
of the Commissioner or to set it aside, m whole or in part, temporarily 
or permanently but until the filing of the record the Commissioner may 
modify or set aside his action. The findings of the Commissioner as to 
the facts, if supported by substantial evidence, shall be conclusive, but 
the court, for good cause shown, may remand the case to the Commis-
sioner to take further evidence, and the Commissioner may thereupon 
make new or modified findings of fact and may modify his previous 
action, and shall file in the court the record of the further proceedings. 
^ 
Such new or modified findings of fact shall likewise be conclusive if 
supported by substantial evidence. The judgment of the court affirm-
ing or setting aside, in whole or in part, any action of the Commissioner 
shall be final, subject to review by the Supreme Court of the United 
States upon certiorari or certification as provided in section 1254 of title 
28, United States Code. The commencement of proceedings under this 
62 stat. 928. 
subsection shall not, unless so specifically ordered by the court, operate 
as a stay of the Commissioner's action. 
"TECHNICAL ASSISTANCE ; MODEL PROGRAMS 
"SEC. 1059. (a) The Commissioner shall make available (to the 
extent practicable) technical assistance to the States in planning, de-
signing, and carrying out the program authorized by this part upon 
the request of the appropriate State agency designated or established 
pursuant to section 1055 or section 1202 and the Commissioner shall 
Post. p. 324. 
take affirmative steps to acquaint all interested organizations, agen-
cies, and institutions with the provision of this part and to enlist 
broad public understanding of its purposes. 
"(b) From the sums reserved to the Commissioner under section 
1051, he shall by grant or contract provide assistance— 
" (1) for the establishment and conduct of model or demonstra-
tion programs which in his judgment will promote the achieve-
ment of one or more purposes of this part and which might 
otherwise not be carried out (or not be carried out soon enough or 
in such a way as to have the desirable impact upon the purposes of 
the part); 
322 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
"(2) as an incentive or supplemental grant to any State admin-
istrative agency which makes a proposal for advancing the pur-
poses of this part which he feels holds special promise for 
meeting occupational education needs of particular groups or 
classes of persons who are disadvantaged or who have special 
needs, when such proposal could not reasonably be expected to 
be carried out under the regular State program; and 
"(3) for particular programs or projects eligible for support 
under this part which he believes have a special potential for 
helping to find solutions to problems on a regional or national 
basis. 
"(c) In providing support under subsection (b) the Commissioner 
may as appropriate make grants to or contracts with public or private 
agencies, organizations, and institutions, but he shall give first prefer-
ence to applications for projects or programs which are administered 
by or approved by State administrative agencies, and he shall in no 
case make a grant or contract within any State without first having 
afforded the State administrative agency reasonable notice and oppor-
tunity for comment and for making recommendations. 
(( 
DEFINITIONS 
"SEC. 1060, For the purposes of this part— 
"(1) The term 'State' includes the District of Columbia, the 
Commonwealth of Puerto Rico, Guam, the Virgin Islands, and 
(except for the purposes of subsections (a) and (b) of section 
1052) American Samoa and the Trust Territory of the Pacific 
Islands. 
"(2) The term 'postsecondary occupational education' means 
education, training, or retraining (and including guidance, coun-
seling, and placement services) for persons sixteen years of age or 
older who have graduated from or left elementary or secondary 
school, conducted by an institution legally authorized to provide 
postsecondary education within a State, which is designed to 
prepare individuals for gainful employment as semi-skilled or 
skilled workers or technicians or subprofessionals in recognized 
occupations (including new and emerging occupations), or to 
prepare individuals for enrollment in advanced technical educa-
tion programs, but excluding any program to prepare individuals 
for employment in occupations which the Commissioner deter-
mines, and specifies by regulation, to be generally considered 
professional or which require a baccalaureate or advanced degree. 
"PART C—ESTABLISHMENT OF AGENCIES 
"ESTABLISHMENT OF BUREAU OF OCCUPATIONAL AND ADULT EDUCATION 
"SEC. 1071. (a) There is hereby established in the United States 
Office of Education a Bureau of Occupational and Adult Education 
hereinafter referred to as the Bureau, which shall be responsible for 
82 Stat. 1064. 
the administration of this title, the Vocational Education Act of 1963. 
note."^^ *^^^ 
including parts C and I thereof, the Adult Education Act, functions of 
20 use 1281, 
the Office of Education relating to manpower training and develop-
*\^4 Stat. 159 
ment, functions of the Office relating to vocational, technical, and 
20 use 1201 
occupational training in community and junior colleges, and any other 
"°**- 
Act vesting authority in the Commissioner for vocational, occupa-
tional, adult and continuing education and for those portions of any 
legislation for career education which are relevant to the purposes of 
other Acts administered by the Bureau. 
note. 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
323 
"(b)(1) The Bureau shall be headed by a person (appointed or 
designated by the Commissioner) who is highly qualified in the fields 
of vocational, technical, and occupational education, who is accorded 
the rank of Deputy Commissioner, and who shall be compensated at 
the rate specified for grade 18 of the General Schedule set forth in sec-
tion 5332 of title 5, United States Code. 
s use 5332 
" (2) Additional positions are created for, and shall be assigned to, 
the Bureau as follows: 
'' (A) Three positions to be placed in grade 17 of such General 
Schedule, one of which shall be filled by a person with broad expe-
rience in the field of junior and community college education, 
"(B) Seven positions to be placed in grade 16 of such General 
Schedule, at least two of which shall be filled by persons with 
broad experience in the field of postsecondary-occupational edu-
cation in community and junior colleges, at least one of which 
shall be filled by a person with broad experience in education in 
private proprietary institutions, and at least one of which shall be 
filled by a person with professional experience in occupatijonal 
guidance and counseling, and 
"(C) Three positions which shall be filled by persons at least one 
of whom is a skilled worker in a recognized occupation, another is 
a subprof 
essional technician in one of the branches of engineering, 
and the other is a subprof essional worker in one of the branchcis of 
social or medical services, who shall serve as senior advisers in the 
implementation of this title. 
u 
20 use 1241 
note. 
COMMUNITY COLLEGE UNIT 
"SEC. 1072. (a) There is established, in the Office of Education, a 
Community College Unit (in this section referred to as the 'Unit') 
which shall have the responsibility for coordinating all programs 
administered by the Commissioner which affect, or can benefit, com-
munity colleges, including such programs assisted under this Act, and 
the Vocational Education Act of 1963. 
82 stat. 1064 
"(b) The Unit shall be headed by a Director who shall be placed 
in grade 17 of the General Schedule under section 5332 of title 5, 
LTnited States Code.". 
(2) The positions created by section 1071 and sectio;i 1072 of the 
Higher Education Act of 1965 shall be in addition to the number of 
^nte. p. 322. 
positions placed in the appropriate grades under section 5108, title 5, 
United States Code. 
^"<e, P. 112. 
(b) The amendments made by subsection (a) shall be effective after 
Effective date 
June 30,1972. 
PART K — L A W SCHOOL CLINICAL EXPERIENCE PROGRAMS 
AMENDMENTS TO TITLE XI OF THE HIGHER EDUCATION ACT OF 1 9 6 -
T 
SEC. 191. (a) Title X I of the Higher Education Act of 1965 is 
82Stat. io48. 
amended by inserting "grant or" before "contract", and "grants or" 
^° ^^^ ^^^^' 
before "contracts" wherever they appear. 
(b) Clause (5) of section 1101 (b) of such Act is amended to read as 
follows: 
" (5) equipment and library resources; and". 
(c) Section 1103 of such Act is amended by striking out "$340,000 for 
the fiscal year ending June 30,1969", and by striking out "fiscal years 
20 use 1 i36b. 
ending June 30,1970, and June 30,1971", and inserting in lieu thereof 
"succeeding fiscal years ending prior to July 1, 1975". Such section is 
further amended by striking out the second sentence. 
324 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Effective 
(f|) j h e amendments made by this section sliall be effective after 
Jmie:30,197L 
PART L—POSTSECONDARY EDUCATION COMMISSION, COMPRKHEXSIVE 
PLANNING, AND COST OF EDUCATION DATA 
' 
AMENDMENTS TO TITLE XII or THE HIGHER EDUCATION ACT OF 1965 
SEC. 196..Title X I I of the Higher Education Act of 1965 is amended 
Ante, p. 260. 
j^y adding after section 1201 the following two new sections: 
"STATE POSTSECONDARY EDUCATION COMMISSIONS 
"SEC. 1202. (a) Any State which desires to receive assistance under 
Post, p. 325. 
section 1203 or title X shall establish a State Commission or designate 
Ante, p. 312. 
^^^ existiug State agency or State Commission (to be known as the State 
Commission) which is broadly and equitably representative of the 
general public and public and private nonprofit and proprietary 
institutions of postsecondary education in the State including com-
munity colleges (as defined in title X ) , junior colleges, postsecondary 
vocational schools, area vocational schools, technical institutes, four-
year institutions of higher education and branches thereof. 
"(b) Such State Commission may establish committees or task 
forces, not necessarily consisting of Commission members, and utilize 
existing agencies or organizations, to make studies, conduct surveys, 
submit recommendations, or otherwise contribute the best available 
expertise from the institutions, interest groups, and segments of the 
society most concerned with a particular aspect of the Commission's 
work. 
"(c) (1) At any time after July 1, 1973, a State may designate the 
State Commission established under subsection (a) as the State agency 
79 Stat. 122 0, 
QY iustitutioii required under section 10.5,603, or 704. In such a case, the 
^
^
2
^
0 use 1005, 
State Commission established under this section shall be deemed to 
1123. 
' 
meet the requirements of such sections for State agencies or 
Ante, p. 2 90. 
institutioiis. 
"(2) If a State makes a designation referred to in paragraph (1)— 
"(A) the Commissioner shall pay the State Commission the 
amount necessary for the proper and efficient administration of 
;• . .; 3 n' 
the Commission of the functions transferred to it by reason of 
the designation; and 
. ' ft . » 
"(B) the State Commission shall be considered the successor 
• ' 
• • -'"' 
i' 
agency to the State agency or institution with respect to which the 
designation is made, and action theretofore taken by the State 
agency or institution shall continue to be effective until changed 
by the State Commission. 
2 0 use 1121. 
"(d) Any State which desires to receive assistance under title VI 
Ante, p. 2 88. 
or uiider title VII but which does not desire, after June 30, 1973, 
ro place the functions of State Commissions under such titles under 
the authority of the State Commission established pursuant to sub-
' ' ' " 
.section (a) shall establish for the purposes of such titles a State Com-
mission which is broadly representative of the public and of institutions 
of higher education (including junior colleges and technical institutes) 
in the State. Such State Commissions shall have the sole responsibility 
for the administration of State plans under such titles VI and V U 
within such State. 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
325 
'COMPREHENSIVE STATEWIDE PLANNING 
(>. 
"SEC. 1203. (a) The Commissioner is authorized to make grants to 
any State Commission established pursuant to section 1202(a) to 
enable it to expand the scop)e of the studies and planning required in 
title X through comprehensive inventories of, and studies with respect 
Ante, p. 312. 
to, all public and private postsecondary educational resources in the 
State, including planning necessary for such resources to be better 
coordinated, improved, expanded, or altered so that all persons within 
the State who desire, and who can benefit from, postsecondary educa-
tion may have an opportunity to do so. 
"(b) The Commissioner shall make technical assistance available to 
State Commissions, if so requested, to assist them in achieving the 
purposes of this section. 
"(c) There are authorized to be appropriated such sums as may be 
Appropriation. 
necessary to carry out this section.". 
F U R N I S H I N G COST OF EDUCATION DATA 
SEC. 197. Title X I I of the Higher Education Act of 1965 is further 
^"'^' P- 224. 
amended by adding at the end thereof the following new section: 
(( 
COST OF EDUCATION DATA 
f>J^^, ';2:j fiS; 
" S E C 1206. The Commissioner may require as a condition of eligi-
bility of any institution of higher education— 
"(1) for institutional aid, at the earliest practical date, or 
" (2) for student aid, after June 30,1973, 
that such institution supply such cost-of-education data as may be in 
the possession of such institution.". 
-Tt; >ea cc 
TITLE II—VOCATIONAL EDUCATION 
. 
SPECIAL PROGRAMS FOR T H E 
DISADVANTAGED 
SEC 201. Section 102(b) of the Vocational Education Act of 1963 is 
^^ stat. io64; 
amended by inserting after "1972," the following: "and for the sue- ^'^20 usc%42. 
ceeding fiscal years ending prior to July 1,1975,". 
CLARIFICATION 
OF DEFINITION 
OF 
VOCATIONAL EDUCATION 
W I T H 
RE-
SPECT 
TO 
INDIVIDUAL 
ARTS 
PROGRAMS; 
INCLUSION 
OF 
VOLUNTEER 
FIREMEN 
. !-t£l Og^J 
SEC. 202. (a) Section 108(1) of the Vocational Education Act of 
1963 is amended by inserting at the end thereof the following new 
20 use 1248. 
sentence: "Such term includes industrial arts education programs in 
cases where the Commissioner determines by regulation that such 
programs will accomplish or facilitate one or more of the purposes 
of the first sentence of this paragraph.". 
(b) Such section 108(1) is further amended by inserting immedi-
ately after the word "employment" the first time it appears in such 
section the following: "(including volunteer 
firemen)". 
EXEMPLARY PROGRAMS AND PROJECTS 
S E C 203. Section 142(a) of the Vocational Education Act of 1963 is 
20 use 1302. 
amended by striking out "two" and inserting in lieu thereof "five". 
326 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
KESIDENTIAL VOCATIONAL 
SCHOOLS 
SEC. 204. (a) Section 151(b) of the Vocational Education Act of 
20 u'sc 1
3
2
^
^ 
1963 is amended by striking out "the succeeding fiscal year" and 
inserting in lieu thereof "each of the succeeding fiscal years ending-
prior to July 1,1975". 
' 
/ 
84 Stat. ^189. 
(^^ Sectiou 152(a)(1) of such Act is amended by striking out 
"July 1, 1972" and inserting in lieu thereof "July 1, 1975". 
20 use 1323. 
((.^ Section 153(d) (2) of such Act is amended by striking out "July 
1, 1971" and inserting in lieu thereof "July 1 of each of the four suc-
ceeding fiscal years". 
CONSUMER 
AND HOMEMAKIN(; 
EDUCATION 
SEC. 205. (a) Section 161(a) (1) of the Vocational Education Act 
20 use 1341. 
of ;[9(};^ ^g amended by striking out "the fiscal year ending June 30, 
1972" and inserting in lieu thereof "each of the succeeding fiscal years 
ending prior to July 1,1975". 
(b) Section 161 (c) of such Act is amended by striking out "and the 
two succeeding" and inserting in lieu thereof "and the five succeed-
20 u s e 1391, 
2 0 u s e 1244. 
ing". 
( ( X > P E R A T I V E 
V O C A T I O N A L 
EDUCATION 
20 use 1352. 
SEC. 206. Section 172(a) of the Vocational Education Act of 1963 
is amended by striking out "the fiscal year ending June 30, 1972" and 
inserting in lieu thereof "each of the succeeding fiscal years ending 
prior to July 1,1975". 
Vi^ORK-STUDY PROGRAMS 
20 use 1371. 
SEC. 207. Section 181(a) of the Vocational Education Act of 1963 
is amended by inserting after "June 30, 1972," the following: "and 
for each of the succeeding fiscal years ending prior to July 1, 1975,". 
CURRICULUM 
DEVELOPMENT 
SEC. 208. Section 191(b) of the Vocational Education Act of 1963 
is amended by striking out "July 1,1972" and inserting in lieu thereof 
"July 1, 1975". 
NATIONAL ADVISORY COUNCIL 
SEC. 209. Section 104(a) (4) of the Vocational Education Act of 
1963 is amended by striking out "two" and inserting in lieu thereof 
"five". 
TITLE ill—AMENDMENTS RELATING TO 
T H E 
ADMINISTRATION OF EDUCATION PROGRAMS 
AMENDMENT TO T H E GENERAL EDUCATION PROVISIONS ACT 
SEC. 301. (a) The General Education Provisions Act (title IV of 
s^%,ll^\o%\V 
^"^^i^ ^^^w 90-247) is amended— 
84 Stat. 164.' 
(1) by redesignating parts A, B, and C thereof, and all refer^ 
20 use 1221 
ences thereto, as parts B, C, and D and redesignating sections 401, 
"°20use 1221, 
402, 4a3, 4<)4, 405, 406, 411, 412, 413, 414, 415, 416, 417, 421, 422, 
1231, 1233. 
423, 424, 425, 426, 431, 432, 433, 434, 435, 436, 437, 438, and all 
i233g"^^ ^^^^' 
references thereto, as sections 400, 411, 412, 413, 414, 415, 421, 
422, 423, 424, 425, 426, 427, 431, 432, 433, 434, 435, 436, 441, 442, 
443,444,445,446,447, and 448, respectively; and 
(2) by inserting after section 400 (as redesignated by clause 
(1)) the following new part: 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
327 
"PART A—EDUCATION DIVISION OF THE DEPARTMENT OF HEALTH, 
EDUCATION, AND WELFARE 
"THE 
EDUCATION DIVISION 
"SEC. 401. There shall be, within the Department of Health, 
Education, and Welfare, an Education Division which shall be com-
posed of the Office of Education and the National Institute of Edu-
cation, and shall be headed by the Assistant Secretary for Education. 
"ASSISTANT SECRETARY FOR EDUCATION 
"SEC. 402. (a) There shall be in the Department of Health, Educa-
tion, and Welfare an Assistant Secretary for Education, who shall be 
appointed by the President by and with the advice and consent of the 
Senate. The Assistant Secretary for Education shall be compensated at 
the rate specified for level IV of the Executive Schedule under section 
5315 of title 5, United States Code. 
83 stat^864. ' 
"(b) The Assistant Secretary shall be the principal officer in the 
Department to whom the Secretary shall assign responsibility for the 
direction and supervision of the Education Division. He shall not serve 
as Commissioner of Education or as Director of the National Institute 
of Education on either a temporary or permanent basis. 
"THE 
OFFICE OF EDUCATION 
"SEC. 403. (a) The purpose and duties of the Office of Education 
shall be to collect statistics and facts showing the condition and prog-
ress of education in the United States, and to disseminate such informa-
tion respecting the organization and management of schools and school 
systems, and methods of teaching, as shall aid the people of the 
United States in the establishment and maintenance of efficient school 
systems, and otherwise promote the cause of education throughout 
the country. The Office of Education shall not have authority which 
is not expressly provided for by statute or implied therein. 
"(b) (1) The management of the Office of Education, shall, subject 
C
O the direction and supervision of the Secretary, be entrusted to a 
Commissioner of Education, who shall be appointed by the President 
by and with the advice and consent of the Senate, and who shall serve 
at the pleasure of the President. 
"(2) The Commissioner may not engage in any other business, voca-
tion, or employment while serving in any such position; nor may he, 
. 
. 
except with the express approval of the President in writing, hold any 
office in, or act in any capacity for, or have a financial interest in, any 
organization, agency, or institution to which the Office of Education 
makes a grant or with which it makes a contract or other financial 
arrangement. 
a SUPPORT FOR I M P R O V E M E N T OF POSTSECONDARY EDUCATION 
"SEC. 404. (a) Subject to the provisions of subsection (b), the Sec-
retary is authorized to make grants to, and contracts with, institutions 
of postsecondary education (including combinations of such institu-
tions^ and other public and private educational institutions and agen-
cies (except that no grant shall be made to an educational institution 
or agency other than a nonprofit institution or agency) to improve 
postsecondary educational opportunities by providing assistance to 
such educational institutions and agencies for— 
2-081 O - 73 - 24 
328 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
"(1) encouraging the reform, innovation, and improvement of 
postsecondary education, and providing equal educational oppor-
tunity for all ; 
, • 
"(2) the creation of institutions and programs involving new 
patns to career and professional training, and new combinations 
of academic and experimental learning; 
"(3) the establishment of institutions and programs based on 
the technology of communications; 
''(4) the carrying out in postsecondary educational institutions 
of changes in internal structure and operations designed to clarify 
institutional priorities and purposes; 
"(5) the design and introduction of cost-effective methods of 
instruction and operation; 
"(6) the introduction of institutional reforms designed to 
expand individual opportunities for entering and reentering 
institutions and pursuing programs of study tailored to individual 
IX't.^^. 
needs: 
"(7) the introduction of reforms in graduate education, in the 
structure of academic professions, and in the recruitment and 
retention of faculties; and 
" (8) the creation of new institutions and programs for examin-
ing and awarding credentials to individuals, and the introduction 
of reforms in current institutional practices related thereto. 
"(b) No grant shall be made or contract entered into under sub-
section (a) for a project or program with any institution of postsec-
ondary education unless it has been submitted to each appropriati' 
State Commission established under section 1202 of the Higher Educa-
tion Act of 1965, and an opportunity afforded such Commission to sub-
mit its comments and recommendations to the Secretary. 
"(c) For the purposes of this section, the authority granted to tht? 
Commissioner in part D of this Act shall apply to the Secretary. 
" (d) The Secretary may appoint, for terms not to exceed three years, 
without regard to the provisions of title 5 of the United States Code 
governing appointments in the competitive service, not more than five 
. technical employees to administer this section who may be paid without 
regard to the provisions of chapter 51 and subchapter III of chapter 5H 
5
3
3
1
^
^
5
3
3
^
2 note 
^^ ^^^ ^^^^^ relating to classification and General Schedule pay rates. 
AppropriauonV. 
*' (G) There are authorized to be appropriated $10,000,000 for the fis-
cal year ending June 30, 1973, $50,000,000 for the fiscal year ending 
June 30,1974, and $75,000,000 for the fiscal year ending June 30,1975, 
for the purposes of this section. 
Ante, p. 324. 
Ante, p. 326. 
5 use 101 
et seq. 
'i-KT 
NATIONAL INSTITUTE OF EDUCATION 
"SEC. 405. (a)(1) The Congress hereby declares it to be the policy of 
the United States to provide to every person an equal opportunity to 
receive an education of high quality regardless of his race, color, reli-
gion, sex, national origin, or social class. Although the American 
educational system has pursued this objective, it has not yet attained 
that objective. Inequalities of opportunity to receive high quality edu-
cation remain pronounced. To achieve quality will require far more 
dependable knowledge about the processes of learning and education 
than now exists or can be expected from present research and experi-
mentation in this field. While the direction of the education system 
remains primarily the responsibility of State and local governments, 
the Federal Government has a clear responsibility to provide leader-
ship in the conduct and support of scientific inquiry into the educa-
tional process. 
i 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
329 
" (2) The Congi-ess further declares it to be the policy of the United 
States to— 
"(i) help to solve or to alleviate the problems of, and promote 
the reform and renewal of American education; 
"(ii) advance tihe practice of education, as an art, science, and 
profession; 
. ^Vj. .C,, 
"(iii) strengthen the scientific and technological foundations of 
education; and 
"(iv) build an effective educational research and development 
system. 
"(b)(1) In order to carry out the policy set forth in subsection (a), 
Establishment. 
tliere is established the National Institute of Education (hereinafter 
referred to as the 'Institute') which shall consist of a National Council 
on Educational Research (referred to in this section as the 'Coimcil') 
and a Director of the Institute (hereinafter referred to as the 'Direc-
tor'). The Institute shall have only such authority as may be vested 
therein by this section. 
':'* 
"(2) The Institute shall, in accordance with the provisions of this 
section, seek to improve education, induding career education, in the 
L'nited States through— 
,, 
"(A) helping to solve or to alleviate the problems of, and 
I.^ ' i ; 
achieve the objectives of American education; 
"(B) advancing the practice of education, as an art, science, and 
profession; 
"(C) the strengthening of the scientific and technological 
foundations of education; and 
"(D) building an effective educational research and develop-
ment system. 
= "(c)(1) The Council shall consist of fifteen member's appointed by 
Members. 
the President, by and with the advice and consent of the Senate, the 
Director, and such other ex officio members who are officers of the 
United States as the President may designate. Eight members of the 
Council (excluding ex officio members) shall constitute a quorum. 
The Chairman of the Council shall be designated from among its 
' 
' 
, 
appointed members by the President. Ex officio members shall not 
have a vote on the Council. 
"(2) The term of office of the members of the Council (other than 
ex officio members) shall be three years, except that (A) the members 
" 
'
^
" 
first taking office shall serve as designated by the President, five for 
terms of three years, five for terms of tM-o years, and five for terms of 
one year, and (B) any member appointed to fill a vacancy shall serve 
for the remainder of the term for which his predecessor w^as appointed. 
Any appointed member who has been a member of the Council for 
six consecutive years sliall thereafter be ineligible for appointment to 
the Council during the two-year period following the expiration of 
such sixth year. 
"(3) The Council shall— 
"(A) establish general policies for, and review the conduct of, 
the Institute; 
"(B) advise the Assistant Secretary and the Director of the 
Institute on development of programs to be carried out by the 
Institute; 
"(C) present to the Assistant Secretary and the Director such 
recommendations as it may deem appropriate for the strengthen-
ing of educational research, the improvement of methods of col-
lecting and disseminating the findings of educational research and 
of insuring the implementation of educational renewal and reform 
based upon the findings of educational research; 
80 Stat. 463; 
83 Stat. 864. 
330 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
" (D) conduct such studies as may be necessary to fulfill its func-
tions under this section; 
" (E) prepare an annual report to the Assistant Secretary on the 
current status and needs of educational research in the United 
States; 
Report to Presi- 
"(F) submit an annual report to the President on the activities 
ongress. 
^^ ^j^^ Instltute, and on education and educational research in 
general, (i) which shall include such recommendations and com-
ments as the Council may deem appropriate, and (ii) shall be sub-
mitted to the Congress not later than March 31 of each year; and 
"(G) meet at the call of the Chairman, except that it shall meet 
(i) at least four times during each fiscal year, or (ii) whenever 
one-third of the members request in writing that a meeting be held. 
The Director shall make available to the Council such information and 
assistance as may be necessary to enable the Council to carry out its 
functions. 
°^'"^^*°'"- 
*'(d)(1) The Director of the Institute shall be appointed by the 
President, by and with the advice and consent of the Senate, and shall 
serve at the pleasure of the President. The Director shall be compen-
sated at the rate provided for level V of the Executive Schedule under 
section 5316 of title 5, L'nited States Code, and shall perform such 
duties and exercise such powers and authorities as the Council, sub-
ject to the general supervision of the Assistant Secretary, may pre-
scribe. The Director shall be responsible to the Assistant Secretary 
and shall report to the Secretary through the Assistant Secretary and 
not to or through any other officer of the Department of Health, Edu-
cation, and Welfare. The Director shall not delegate any of his func-
tions to any other officer who is not directly responsible to him. 
"(2) There shall be a Deputy Director of the Institute (referred 
to in this section as the 'Deputy Director') who shall be appointed 
by the President and shall serve at the pleasure of the President. The 
Deputy Director shall be compensated at the rate provided for grade 
18 of the General Schedule set forth in section 5332 of title 5, United 
States Code, and shall act for the Director during the absence or dis-
ability of the Director and exercise such powers and authorities as the 
Director may prescribe. The position created by this paragraph shall 
be in addition to the number of positions placed in grade 18 of the Gen-
eral Schedule under section 5108 of title 5, United States Code. 
"(e) (1) In order to carry out the objectives of the Institute, the 
Director is authorized, through the Institute, to conduct educational 
research; collect and disseminate the findings of educational research; 
train individuals in educational research; assist and foster such 
research, collection, dissemination, or training through grants, or tech-
nical assistance to, or jointly financed cooperative arrangements with, 
public or private organizations, institutions, agencies, or individuals; 
promote the coordination of such research and research support within 
the Federal Government; and may construct or provide (by grant or 
otherwise) for such facilities as he determines may be required to 
accomplish such purposes. As used in this subsection, the term 'educa-
tional research' includes research (basic and applied), planning, sur-
veys, evaluations, investigations, experiments, developments, and 
demonstrations in the field of education (including career education). 
" (2) Not less than 90 per centum of the funds appropriated pursuant 
to subsection (h) for any fiscal year shall be expended to carry out this 
section through grants or contracts with qualified public or private 
agencies and individuals. 
5 u s e 5332 
note. 
Ante, 
p. 112. 
Research. 
5 use 5101, 
5331, 5332 note. 
lations. 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
331 
" (3) The Director may appoint, for terms not to exceed three years, 
without regard to the provisions of title 5 of the United States Code 
s use loi ef 
ooveming appointment in the competitive service and may compensate ®
^
'
^
" 
without regard to the provisions of chapter 51 and subchapter I I I of 
chapter 53 of such title relating to classification and General Schedule 
pay rates, such technical or professional employees of the Institute as 
he deems necessary to accomplish its functions and also appoint and 
compensate without regard to such provisions not to exceed one-fifth 
of the number of full-time, regular technical or professional employees 
of the Institute. 
^ 
"(f) (1) The Director, in order to carry out the provisions of this 
section, is authorized— 
"(A) to make, promulgate, issue, rescind, aiid amend rules and 
^"les and regu-
regulations governing the manner of operation of the Institute; 
"(B) to accept unconditional gifts or donations of services, 
money or property, real, personal or mixed, tangible or intan-
gible; 
"(C) without regard to section 3648 of the Eevised Statutes of 
the United States (31 U.S.C. 529), United States Code, to enter 
into and perform such contracts, leases, cooperative agreements 
or other transactions as may be necessary for the conduct of the 
Institute's work and on such terms as he may deem appropriate 
with any agency or instrumentality of the United States, or with 
any State, territory or possession, or with any political subdivi-
sion thereof, or with any international organization oi' agency, or 
with any firm, association, corporation or educational institution, 
or with any person, without regard to statutory provisions pro-
hibiting payment of compensation to aliens; 
"(D) to acquire (by purchase, lease, condemnation or other-
wise), construct, improve, repair, operate and maintain labora-
tories, research 
and 
testing 
facilities, 
computing 
devices, 
communications networks and machinery, and such other real and 
personal property or interest therein as deemed necessary; 
"(E) to acquire (by purchase, lease, condemnation or otherwise) 
and to lease to others or to sell such property in accordance wdth 
the provisions of the Federal Property and Administrative 
Services Act, patents, copyrights, computing programs, theatrical 
and broadcast performance rights or any form of property w^hat-
soever or any rights thereunder; and 
"(F) to use the services, computation capacity, communications 
networks, equipment, personnel, and facilities of Federal and 
other agencies with their consent, with or without reimbursement. 
Each department and agency of the Federal Government shall 
cooperate fully with the Director in making its services, equip-
ment, personnel and facilities available to the Institute. 
"(2) All laborers and mechanics employed by contractors or sub-
contractors on all construction projects assisted under this title shall 
be paid wages at rates not less than those prevailing on similar 
construction in the locality as determined by the Secretary of Labor 
in accordance with the Davis-Bacon Act, as amended (40 TT.S.C. 
276a—276a-5). The Secretary of Labor shall have with respect to 
49Stat.ioii. 
the labor standards specified in this section the authority and functions 
set forth in Eeorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 
5 U.S.C. 133z-15) and section 2 of the Act of June 13, 1934, as 
64 stat. i267. 
amended (40U.S.C.276(c)). 
' 
Ll^auToa. 
"(g) Where funds are advanced for a single project by more than 
one Federal agency for the purposes of this section, the National 
Institute of Education may act for all in administering the funds 
advanced. 
63 Stat. 
4 0 use 
note 
377. 
471 
332 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Appropriation. 
Effective date. 
Repeals. 
Ante, 
p. 326. 
"Conso 
tion.' 
lida-
.VoSI 
. Hi': 
!f,:^ Cfr 
" (h) There are hereby authorized to be appropriated, without fiscal 
year limitations, $550,000,000, in the aggregate, for the period begin-
ning July 1,1972, and ending June 30,1975, to carry out the functions 
of the Institute. Sums so appropriated shall, notwithstanding any 
other provision of law unless enacted in express limitation of this sub-
section, remain available for the purposes of this subsection until 
expended.". 
(b) (1) The amendments made by subsection (a) shall be effective 
after June 30,1972. 
(2) (A) Effective July 1, 1972, sections 516 and 517 of the Revised 
Statutes of the United States (20 U.S.C. 1,2) are repealed. 
(B) Effective July 1, 1972, section 422 of the General Education 
Provisions Act is amended by striking out " (as set forth in section 516 
of the Revised Statutes (20 U.S.C. 1))" and inserting in lieu thereof 
•• (as set forth in section 403 (a) of this Act) •'. 
i'rn 
LIMITATIONS ON AUTHORITY 
SEC. 302. (a) Section 421 of the General Education Provisions Act 
(as so redesignated by section 301 (a) (1)) is amended by adding at the 
end thereof the following: 
"(c) (1) (A) Except in the case of a law which— 
'' (i) authorizes appropriations for carrying out, or controls the 
administration of, an applicable program, or 
(; 
*'(ii) is enacted in express limitation of the provisions of this 
paragraph, 
no provision of any law shall be construed to authorize the consolida-
tion of any applicable program with any other program. Where the 
provisions of law governing the administration of an applicable pro-
gram permit the packaging or consolidation of applications for grants; 
or contracts to attain simplicity or effectiveness of administration, 
nothing in this subparagraph shall be deemed to interfere with such 
packaging or consolidation. 
"(B) No provision of any law which authorizes an appropriation 
for carrying out, or controls the administration of, an applicable pro-
gram shall be construed to authorize the consolidation of any such 
program with any other program unless provision for such a consoli-
dation is expressly made thereby. 
•'(C) For the purposes of this subsection, the term 'consolidation* 
means any agreement, arrangement, or the other procedure which re-
sults in— 
"(i) the commingling of funds derived from one appropriation 
with those derived from another appropriation, 
,' 
''(ii) the transfer of funds derived from an appropriation to 
the use of an activity not authorized by the law authorizing such 
appropriation, 
" (iii) the use of practices or procedures which have the effect of 
requiring, or providing for, the approval of an application for 
funds derived from different appropriations according to any 
criteria other than those for which provision is made (either 
expressly or implicitly) in the law which authorizes the appro-
priation of such funds, or this title, or 
"(iv) as a matter of policy the making of a grant or contract 
involving the use of funds derived from one appropriation 
dependent upon the receipt of a grant or contract involving the 
use of funds derived from another appropriation. 
•'(2) (A) No requirement or condition imposed by a law authorizing 
appropriations for carrying out any applicable program, or con-
trolling the administration thereof, shall be waived or modified, unless 
86 STAT.] 
PUBLIC LAW 92-318-JUNE 23, 1972 
such a waiver or modification is expressly authorized by such law or 
by a provision of this title or by a law expressly limiting the applica-
bility of this paragraph. 
"(B) There shall be no limitation on the use of funds appropriated 
to carry out any applicable program other than limitations imposed 
by the law authorizing the appropriation or a law controlling the 
administration of such program; nor shall any funds appropriated to 
carry out an applicable program be allotted, apportioned, allocated, 
or otherwise distributed in any manner or by any method different 
from that specified in the law authorizing the appropriation. 
" (3) No person holding office in the executive branch of the Govern-
ment shall exercise any authority which would authorize or effect any 
activity prohibited by paragraph (1) or (2). 
"(4) The transfer of any responsibility, authority, power, duty, or 
obligation subject to this title, from the Commissioner to any other 
officer in the executive branch of the Government, shall not affect the 
applicability of this title with respect to any applicable program." 
(b) The heading of such section 421 is amended to read as follows: 
?5 
' 
ADMINISTRATIOX OF EDUCATION 
PROGRAMS 
(c) The provisions of section 421(c) of the General Education Pro-
\'isions Act shall be effective upon the date of enactment of this Act. 
Xo provision of any law which is inconsistent with such section 
421(c) shall be effective nor shall any such provision control to the 
extent of such inconsistency, unless such a law is enacted after the date 
of enactment of this Act. 
Effective date. 
Ante, 
p. 332. 
AMENDMENTS TO T H E COOPERATIVE RESEARCH ACT 
SEC. 303. (a) Effective July 1, 1972, the Cooperative Kesearch Act 
is amended— 
(1) in section 2 by striking out paragraph (3) of subsection (a) 
and subsections (b) and (c) and by amending paragraph (1) 
of subsection (a) to read as follows: 
•'SEC. 2. (a) (1). In order to assist the Commissioner in carrying out 
the purpose and duties of the Office of Education, the Commissioner 
is authorized, during the period beginning July 1, 1972, and ending-
June 30, 1976, to make grants to, and contracts with, public and pri-
\ ate institutions, agencies, and organizations for the dissemination of 
information, for surveys, for exemplary projects in the field of educa-
tion, and for the conduct of studies related to the management of the 
Office of Education, except that no such grant may be made to a pri-
vate agency, organization, or institution other than a nonprofit one.": 
and 
(2) by striking out section 3 of such Act and inserting in lien 
thereof the following; 
"SEC. 3. There are authorized to be appropriated for purposes of 
section 2, $58,000,000 for the fiscal year ending June 30, 1973. 
$68,000,000 for the fiscal year ending June 30,1974, and $78,000,000 for 
the fiscal year ending June 30,1975.". 
(b) Nothing contained in the amendments made by subsection (a) 
shall be construed to grant the Commissioner of Education any 
nuthority which he did not have under the Cooperative Research Act 
prior to July 1,1972. 
EVALUATION 
SEG. 304. Part B of the General Education ProA isions Act is amended 
by adding at the end thereof the following new section: 
Effective date. 
68 Stat. 533; 
79 Stat. 44. 
20 u s e 331 
note. 
20 u s e 332. 
Appropriations. 
Ante, 
p. 326. 
gres 
334 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
"EVALUATIONS BY THE COMPTKOLLER (iENEKAL 
"SEC. 417. (a) The Comptroller General of the United States shall 
review, audit, and evaluate any Federal education program upon 
request by a committee of the Congress having jurisdiction of the 
statute authorizing such program or, to the extent personnel are avail-
able, upon request by a member of such committee. Upon such request, 
he shall (1) conduct studies of statutes and regulations governing 
such program; (2) review the policies and practices of Federal agen-
cies administering such program; (3) review the evaluation proce-
dures adopted by such agencies carrying out such program; and (4) 
fsT"*^* *° ^°"" 
evaluate particular projects or programs. The Comptroller General 
shall compile such data as are necessary to carry out the preceding 
functions and shall report to the Congress at such times as he deems 
appropriate his findings with respect to such program and his recom-
mendations for such modifications in existing laws, regulations, proce-
dures and practices as will in his judgment best serve to carry out 
eifectively and without duplication the policies set forth in education 
legislation relative to such program. 
"(b) In carrying out his responsibilities as provided in subsection 
(a), the Comptroller General shall give particular attention to the 
practice of Federal agencies of contracting with private fiiTns, orga-
nizations and individuals for the provision of a wide range of studies 
and services (such as personnel recruitment and training, program 
evaluation, and program administration) with respect to Federal 
education programs, and shall report to the heads of the agencies 
concerned and to the Congress his findings with respect to the neces-
sity for such contracts and their effectiveness in serving the objectives 
established in education legislation. 
"<^c) In addition to the sums authorized to be appropriated under 
Ante, p. 326. 
sectiou 400(c), there are authorized to be appropriated such sums as 
may be necessary to carry out the purposes of this section.". 
TITLE IV—IXDIAN EDUCATKTX 
SHORT TITLE 
* 
SEC. 401. This title may be cited as the "Indian Education Act." 
1*ART A 
K E V I S I O N 
O F IMPACTED A R E A S P R O G R A M AS IT RELATES TO 
I N W A N 
(^ITILDREX 
AMENDMENTS IX) PUliLIC LAW 874, EIGimf-FIRST CONGRESS 
SEC. 411. (a) The Act of September 30, 1950 (Public Law 874, 
Eighty-first Congi'ess), is amended by redesignating title I I I as title 
79 staT. Vs"* 
TV, by redesignating sections 301 through 303 and references thereto 
20 use 242. 
.^g sections 401 through 403, respectively, and by adding after title II 
the following new title: 
"TITLE III—FINANCIAL ASSISTANCE TO LOCAL EDUCA-
TIONAL AGENCIES FOR TLIE EDUCATION OF INDIAN 
CHILDREN 
" S H O R T 
TITLE 
"SEC. 301. This title may be cited as the 'Indian Elementary and 
isE- .
-
T .
s
H
>
A 
Secondary Scli(X)l Assistance Act'. 
• , ? 
. i 
64 Stat. 1100 
20 use 236. 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
335 
"DECLARATIOX OF POLICY 
"SEC. 302. (a) In recognition of the special educational needs of 
Indian students in the United States, Congress hereby dechires it to 
be the policy of the United States to pr'o\dde financial assistance to 
local educational agencies to develop and carry out elementary and 
secondary school programs specially designed to meet these special 
educational needs. 
"(b) The Commissioner shall, in order to effectuate the policy set 
forth in subsection (a), carry out a program of making grants to local 
educational agencies which are entitled to payments under this title 
and which have submitted, and had approved, applications therefor, in 
accordance with the provisions of this title. 
"GRANTS TO LOCAL EDUCATIONAL AGENCIES 
"SEC. 303. (a)(1) For the purpose of computing the amount to yfat^^JT'"^"*''°'"" 
which a local educational agency is entitled under this title for any 
fiscal year ending prior to July 1, 1975, the Commissioner shall deter-
mine the number of Indian children who M^ere enrolled in the schools 
of a local educational agency, and for whom such agency provided 
free public education, during such fiscal year. 
"(2) (A) The amount of the grant to which a local educational 
agency is entitled under this title for any fiscal year shall be an 
tXmount equal to (i) the average per pupil expenditure for such agency 
(as determined under subparagraph (C)) multiplied by (ii) the sum 
of the number of children determined under paragraph (1). 
"(B) A local educational agency shall not be entitled to receive a 
grant under this title for any fiscal year unless the number of children 
under this subsection, with respect to such agency, is at least ten or con-
stitutes at least 50 per centum of its total enrollment. The requirements 
of this subparagraph shall not apply to any such agencies serving 
Indian children in Alaska, California, and Oklahoma or located on, or 
in proximity to, an Indian reservation. 
"(C) For the purposes of this subsection, the average per pupil ^..^n^^^^^^^HH 
expenditure for a local educational agency shall be the aggregate cur-
rent expenditures, during the second fiscal year preceding the fiscal 
year for which the computation is made, of all of the local educational 
agencies in the State in which such agency is located, plus any direct 
current expenditures by such State for the operation of such agencies 
(without regard to the sources of funds from which either of such 
expenditures are made), divided by the aggregate number of children 
who were in average daily enrollment for whom such agencies provided 
free public education during such preceding fiscal year. 
"(b) In addition to the sums appropriated for any fiscal year for 
grants to local educational agencies under this title, there is hereby 
authorized to be appropriated for any fiscal year an amount not in 
excess of 5 per centum of the amount appropriated for payments on the 
basis of entitlements computed under subsection (a) for that fiscal year, 
for the purpose of enabling the Commissioner to provide financial 
assistance to schools on or near reservations whicli are not local educa-
tional agencies or have not been local educational agencies for more 
than three years, in accordance with the appropriate provisions of this 
title. 
"I'SES OF FEDERAL FUNDS 
"SEC. 304. Grants under this title may be used, in accordance with 
applications approved under section 805, for— 
" (1) planning for and taking other steps leading to the develop-
ment of programs specifically designed to meet the special educa-
pupil expenditure. 
Non-local edu-
cational agencies. 
336 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
tioiial needs of Indian children, including pilot projects designed 
to test the effectiveness of plans so developed; and 
'; 
"(2) the establishment, maintenance, and operation of pro-
grams, including, in accordance with special regulations of the 
Commissioner, minor remodeling of classroom or other space used 
for such programs and acquisition of necessary equipment, 
specially designed to meet the special educational needs of Indian 
children. 
"APPLICATIONS FOR GRANTS; CONDITIONS FOR APPROVAL 
"SEC. 805. (a) A grant under this title, except as provided in section 
803(b), may be made only to a local educational agency or agencies, 
and only upon application to the Commissioner at such time or times, 
in such manner, and containing or accompanied by such information 
T
j
r jiK !e - . 
f^s the Commissioner deems necessary. Such application shall— 
" • * 
" (1) provide that the activities and services for which assistance 
; 
under this title is sought will be administered by or under the 
supervision of the applicant; 
"(2) set forth a program for carrying out the purposes of sec-
tion 304, and provide for such methods of administration as are 
I . 
necessary for the proper and efficient operation of the program; 
.'' 
"(3) in the case of an application for payments for planning, 
.
'
^ 
provide that (A) the planning was or will be directly related to 
J, 
programs or projects to be carried out under this title and has 
resulted, or is reasonably likely to result, in a program or project 
J. 
which will be carried out under this title, and (B) the planning 
.'^, 
funds are needed because of the innovative nature of the pro-
,j 
gram or project or because the local educational agency lacks the 
resources necessary to plan adequately for programs and projects 
to be carried out under this title; 
!.:. 
''(4) provide that effective procedures, including provisions for 
ai^propriate objective measurement of educational achievement 
. ,., 
/ 
•, 
will be adopted for evaluating at least annually the effectiveness 
•laa::.! . 
of the programs and projects in meeting the special educational 
needs of Indian students; 
; ' 
"(5) set forth policies and procedures which assure that Fed-
eral funds made available under this title for any fiscal year will 
,j 
be so used as to supplement and, to the extent practical, increase 
the level of funds that would, in the absence of such Federal funds, 
J 
be made available by the applicant for the education of Indian 
I 
children and in no case supplant such funds; 
"(6) provide for such fiscal control and fund accounting pro-
-uj, 
•.!>»" 
cedures as may be necessary to assure proper disbursement of, and 
* ^ • -
~ 
• 
accounting for, Federal funds paid to the applicant under this 
title; and 
Reports, 
'^(7) provide for making an annual report and such other 
! 
reports, in such form and containing such information, as the 
Commissioner may reasonably require to carry out his functions 
under this title and to determine the extent to which funds 
; 
provided under this title have been effective in improving the 
educational opportunities of Indian students in the area served, 
and for keeping such r-ecord and for affording such access thereto 
as the Commissioner may find necessary to assure the correctness 
and verification of such reports. 
'^ "(b) An application by a local educational agency or agencies for a 
grant under this title may be approved only if it is consistent with the 
applicable provisions of this title and— 
_
;
> 
"(1) meets the requirements set forth in subsection (a); 
86 
STAT.] 
PUBLIC LAW 92-318-JUNE 23, 1972 
337 
'• (2) provides that the program or project for which application 
is made— 
•'(A) will utilize the best available talents and resources 
(including persons from the Indian community) and will 
substantially increase the educational opportunities of Indian 
children in the area to be served by the applicant; and 
"(B) has been developed— 
"(i) in open consultation with parents of Indian chil-
dren, teachers, and, where applicable, secondary school 
students, including public hearings at which such persons 
have had a full opportunity to understand the program 
for which assistance is being sought and to oifer 
recommendations thereon, and 
" (ii) with the participation and approval of a commit-
tee composed of, and selected by, parents of children par-
ticipating in the program for which assistance is sought, 
teachers, and, where applicable, secondary school stu-
dents of which at least half the members shall be such 
parents; 
"(C) sets forth such policies and procedures as will insure 
that the program for which assistance is sought will be oper-
ated and evaluated in consultation with, and the involvement 
of, parents of the children and representatives of the area to 
be served, including the committee established for the pur-
poses of clause (2) (B) (ii). 
"(c) Amendments of applications shall, except as the Commissioner 
may otherwise provide by or pursuant to regulations, be subject to 
approval in the same manner as original applications. 
Application 
amendments. 
ii PAYMENTS 
"SEC. 306. (a) The Commissioner shall, subject to the provisions of 
section 307, from time to time pay to each local educational agency 
which has had an application approved under section 305, an amount 
equal to the amount expended by such agency in carrying out activities 
under such application. 
"(b) (1) No payments shall be made under this title for any fiscal 
year to any local educational agency in a State which has taken into 
consideration payments under this title in determining the eligibility 
of such local educational agency in that State for State aid, or the 
amount of that aid, with respect to the free public education of chil-
dren during that year or the preceding fiscal year. 
"(2) Xo payments shall be made under this title to any local educa-
tional agency for any fiscal year unless the State educational agency 
finds that the combined fiscal effort (as determined in accordance with 
regulations of the Commissioner) of that agency and the State with 
respect to the provision of free public education by that agency for 
the preceding fiscal year was not less than such combined fiscal effort 
for that purpose for the second preceding fiscal year. 
Limitations. 
"ADJUSTMENTS WHERE NECESSITATED BY APPROPRIATIONS 
"SEC. 307. (a) If the sums appropriated for any fiscal year for mak-
ing payments under this title are not sufiicient to pay in full the total 
amounts which all local educational agencies are eligible to receive 
under this title for that fiscal year, the maximum amounts which all 
such agencies are eligible to receive under this title for such fiscal 
year shall be ratably reduced. In case additional funds become avail-
able for making such payments for any fiscal year, during which the 
o'rt'i 
338 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
80 Stat. 1191; 
81 Stat. 787; 
84 Stat. 121. 
20 u s e 241c. 
Supra, 
79 Stat. 30; 
81 Stat. 787; 
84 Stat. 126. 
20 u s e 241e. 
Effective date. 
64 Stat. 1106. 
20 u s e 240. 
first sentence of this subsection is applicable, such reduced amounts 
shall be increased on the same basis as they were reduced. 
"(b) In the case of any fiscal year in which the maximum amounts 
for which local educational agencies are eligible have been reduced 
under the first sentence of subsection (a), and in which additional 
funds have not been made available to pay in full the total of such 
maximum amounts under the second sentence of such subsection, the 
Commissioner shall fix dates prior to which each local educational 
agency shall report to him on the amount of funds available to it, 
under the terms of section 306(a) and subsection (a) of this section, 
which it estimates, in accordance with regulations of the Commis-
sioner, that it will expend under approved applications. The amounts 
so available to any local educational agency, or any amount which 
would be available to any other local education agency if it were to 
submit an approvable application therefor, which the Commissioner 
determines will not be used for the period of its availability, shall be 
available for allocation to those local educational agencies, in the man-
ner provided in the second sentence of subsection (a), which the Com-
missioner determines will need additional funds to carry out approved 
applications, except that no local educational agency shall receive an 
amount under this sentence which, when added to the amount available 
to it under subsection (a), exceeds its entitlement under section 303.''. 
(b) (1) The third sentence of section 103(a) (1) (A) of title I of 
the Elementary and Secondary Education Act of 1965 is amended 
to read as follows: "In addition, he shall aljot from such amount to 
the Secretary of the Interior— 
"(i) the amount necessary to make payments pursuant to sub-
paragraph ( B ) ; a n d 
"(ii) in the case of fiscal years ending prior to July 1, 1973, 
the amount necessary to make payments pursuant to subpara-
graph (C).". 
(2) (A) Section 103(a)(1) of such title I is amended by adding 
at the end thereof the following new subparagraph: 
"(C) The maximum amount allotted for payments to the Secre-
tary of the Interior under clause (ii) in the third sentence of sub-
paragraph (A) for any fiscal year shall be the amount necessary to 
meet the special educational needs of educationally deprived Indian 
children on reservations serviced by elementary and secondary schools 
operated for Indian children by the Department of the Interior, as 
determined pursuant to criteria established by the Commissioner. 
Such payments shall be made pursuant to an agreement between the 
Commissioner and the Secretary containing such assurances and terms 
as the Commissioner determines will best achieve the purposes of this 
part. Such agreement shall contain (1) an assurance that payments 
made pursuant to this subparagraph will be used solely for programs 
and projects approved by the Secretary of the Interior which meet the 
applicable requirements of section 141(a) and that the Department 
of the Interior will comply in all other respects with the requirements 
of this title, and (2) provision for carrying out the applicable pro-
visions of sections 141(a) and 142(a)(3).". 
(B) The fourth sentence of section 103(a) (1) (A) of such title I is 
amended by striking out "and the terms upon which payment shall be 
made to the Department of the Interior.". 
(3) The amendments made by this subsection shall be effective on 
and after July 1,1972. 
(c)(1) Subsection (a) of section 5 of Public Law 874, 81st Con-
gress, as amended, is amended by inserting "(1)" after " ( a ) " and by 
inserting at the end thereof the following new paragraph (2) : 
Ante, p. 334. 
86 STAT.] 
PUBLIC LAW 9 2 - 3 1 8 - J U N E 23, 1972 
339 
"(2) (A) Applications for payment on the basis of children deter-
mined mider section 3(a) or 3(b) who reside, or reside with a parent 
20 use 238. 
employed, on Indian lands shall set forth adequate assurance that 
Indian children will participate on an equitable basis in the school 
program of the local educational agency. 
"(B) For the purposes of this paragraph, Indian lands means that 
property included within the definition of Federal pi-operty under 
clause (A) of section 403 (1).". 
(2) (A) The Commissioner shall exercise his authority under sec-
tion 425 of the General Education Provisions Act, to encourage local 
Ante, p. 326. 
parental participation with respect to financial assistance under title I 
of Public Law 874, 81st Congress, based upon children who reside on, 7/313^27^^°°' 
or reside with a parent employed on, Indian lands. 
si stat! s n, 
(B) For the purposes of this paragraph, the term "Indian lands" 
2^ use 236. 
means that property included within the definition of Federal prop- 
"^"dian lands. 
erty under clause (A) of section 403(1) of Public Law 874, 81st 
Congress. 
PART B—SPKCIAL PROGRAMS AND PROJECTS TO IMPROVE EDICATIONAL 
OPPORTUNITIES FOR INDIAN CHILDREN 
AMENDMENT TO TITLE VIII OF THE ELEMENTARY AND KFX'ONDARY 
E D U C A T I O N 
ACT 
OF 
1965 
SEC. 421. (a) Title VIII of the P^lementary and Secondary Educa-
tion Act of 1965 is amended by adding to the end thereof the following „„^L^!^Von^/ 
>J 
^^ 
'
=
^ 00 Stat. 12U4; 
new section: 
si stat. 8I6; 
84 Stat. 153. 
20 use SSI. 
IMPROVEMENT OF EDICATIONAL OPPORTUNITIES FOR INDIAN CHILDREN 
''SEC. 810. (a) The (commissioner shall carry out a program of mak-
ing grants for the improvement of educational opportunities for Indian 
children— 
"(1) to support planning, pilot, and demonstration projects, 
in accordance with subsection (b), which are designed to test and 
demonstrate the effectiveness of programs for improving educa-
tional opportunities for Indian children; 
"(2) to assist in the establishment and operation of programs, 
in accordance with subsection (c), which ai-e designed to stimulate 
(A) the provision of educational services not available to Indian 
children in sufficient quantity or quality, and (B) the develop- 
-
ment and establishment of exemplai-y educational programs to 
. 
serve as models for regular school programs in which Indian 
children are educated; 
"(3) to assist in the establishment and operation of preservice 
and inservice training programs, in accordance with subsection 
(d), for persons serving Indian children as educational per-sonnel : 
and 
"(4) to encourage the dissemination of infoi'mation and ma-
terials relating to, and the evaluation of the effectiveness of, 
education programs which may offer educational o}>portunities 
to Indian children. 
In the case of activities of the type desci'ibed in clause (3) preference 
ra^s^'^^ndlan's"" 
shall be given to the training of Indians. 
preference!^"^' 
"(b) The Commissioner is authorized to make grants to State and 
local educational agencies, federally supported elementary and sec-
ondary schools for Indian children and to Indian tribes, organizations, 
and institutions to support planning, pilot, and demonstration projects 
340 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
.^F,f-, 
Educational 
enrichment pro-
grams and serv-
ices. 
Education per-
sonnel. 
Indians, pref-
erence. 
which are designed to plan for, and test and demonstrate the effective-
ness of, programs for improving educational oppoitunities for Indian 
children, including— 
"(1) innovative programs related to the educational needs of 
educationally deprived children; 
V. 
" (2^ bilingual and bicultural education programs and projects; 
"(3) special health and nutrition services, and other related 
activities, which meet the special health, social, and psychological 
problems of Indian children; and 
• 
"(4) coordinating the operation of other federally assisted 
' 
programs which may be used to assist in meeting the needs of 
such children. 
"(c) The Commissioner is also authorized to make grants to State 
and local educational agencies and to tribal and other Indian com-
munitv organizations to assist and stimulate them in developing and 
establishing educational services and programs specifically designed 
to improve educational opportunities for Indian children, (jrants may 
be used— 
"(1) to provide educational services not available to such chil-
dren in sufficient quantity or quality, including— 
"(A) remedial and compensatory instruction, school health, 
I i/ 
physical education, psychological, and other services designed 
to assist and encourage Indian children to enter, remain in, or 
reenter elementary or secondary school; 
^; 
''(B) comprehensive academic and vocational instruction; 
:;:< 
"(C) instructional materials (such as library books, text-
books, and other printed or published or audiovisual mate-
rials) and equipment; 
I . M •! • 
" ( D ) comprehensive guidance, counseling, and testing 
services; 
ilj;= 
"(E) special education programs for handicapped; 
iijjw n 
"(F) preschool programs; 
"(G) bilingual and bicultural education programs; and 
' 
"(H) other services which meet the purposes of this subsec-
tion ; and 
i; 
U|^2) for the establishment and operation of exemplary and 
innovative educational programs and centers, involving new 
-*'' 
educational approaches, methods, and techniques designed to 
enrich programs of elementary and secondary education for 
Indian children. 
"(d) The Commissioner is also authorized to make grants to insti-
tutions of higher education and to State and local educational agencies, 
in combination with institutions of higher education, for carrying out 
programs and projects— 
"(1) to prepare persons to serve Indian children as teachers, 
teacher aides, social workers, and ancillary educational personnel; 
and 
"(2) to improve the (qualifications of such persons who are 
serving Indian children in such capacities. 
Grants for the purposes of this subsection may be used for the 
establishment of fellowship programs leading to an advanced degree, 
for institutes and, as part of a continuing program, for seminars, 
symposia, workshops, and conferences. In carrying out the programs 
authorized by this subsection, preference shall be giA'en to the training 
of Indians. 
"(e) The Commissioner is also authorized to make grants to and 
contracts with, public agencies, and institutions and Indian tribes, 
institutions, and organizations for— 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
341 
"(1) tlie disseiiiination of infomiatioii concerning education 
informationdis-
programs, services, and resources available to Indian children, ^^'"'"^ti""-
including evaluations thereof; and 
''(2) the evaluation of the effectiveness of federally assisted 
Program evaiu-
programs in which Indian children may participate in achieving ^''°"* 
the purposes of such programs with respect to such children. 
"(f) Applications for a grant under this section shall be submitted 
Grants, appu-
at such time, in such manner, and shall contain such information, ''^*^°"* 
and shall be consistent with such criteria, as may be established as 
requirements in regulations promulgated by the Commissioner. Such 
applications shall— 
"(1) set forth a statement describing the activities for which 
assistance is sought; 
"(2) in the case of an application for the purposes of subsection 
(c), subject to such criteria as the Commissioner shall prescribe, 
provide for the use of funds available under this section, and for 
the coordination of other resources available to the applicant, in 
order to insure that, within the scope of the purpose of the proj-
ect, there will be a comprehensive program to achieve the pur-
poses of this section; 
" (3) in the case of an application for the purposes of subsection 
(c), make adequate provision for the training of the personnel 
participating in the project; and 
" (4) provide for an evaluation of the ell'ectiveness of the project 
in achieving its purposes and those of this section. 
The Commissioner shall not approve an application for a grant under 
Parental partici-
siibsection (b) or (c) unless he is satisfied that such application, and ^^*^°"* 
any documents submitted with respect thereto, show that there has 
been adequate participation by the parents of the children to be served 
and tribal communities in the planning and development of the proj-
ect, and that there will be such a participation in the operation and 
evaluation of the project. In approving applications under this section, 
the Commissioner shall give priority to applications from Indian 
educational agencies, organizations, and institutions. 
"(g) For the purpose of making grants under this section there are 
Appropriation, 
hereby authorized to be appropriated $25,000,000 for the fiscal year 
ending June 30, 1973, and $35,000,000 for each of the two succeeding 
fiscal years.". 
(b)(1)(A) The third sentence of section 202(a)(1) of the Ele-
mentary and Secondary Education Act of 1965 is amended by striking 
84 stat, 130. 
out "July 1, 1972," and inserting in lieu thereof "July 1, 1973,". 
^° "^^ *"' 
(B) The third sentence of section 302(a) (1) of the Elementary and 
Secondary Education Act of 1965 is amended by striking out "July 1, 
^^ fr'ifA'iio' 
1972," and inserting in lieu thereof "July 1, 1973,". 
(C) Clause (B) of section 612(a)(1) of Public Law 91-230 is 
sSusciVu. 
amended by striking out "July 1, 1972," and inserting in lieu thereof 
"July 1,1973,". 
(2) For the purposes of titles II and I I I of the Elementary and 
Secondary Education Act of 1965 and part B of title VI of Public 
20 use 821, 
Law 91-230, the Secretary of the Interior shall have the same duties 
20 use 1411 
and responsibilities with respect to funds paid to him under such titles, 
as lie would have if the Department of the Interior were a State educa-
tional agency having responsibility for the administration of a State 
plan under such titles. 
342 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
PART C—SPECIAL PROGRAMS KELATING TO ADULT EDUCATION FOR 
INDIANS 
'• ' 
AMENDMENT TO THE ADULT EDUCATION ACT 
SEC. 431. Title I I I of the Elementary and Secondary Education 
2ous^cnoi 
Amendments of 1966 (the Adult Education Act) is amended by 
note. 
redesignating sections 314 and 315, and all references thereto, as 
sections 315 and 316, respectively, and by adding after section 313 the 
following new section: 
"IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR ADULT INDIANS 
"SEC. 314. (a) The Commissioner shall carry out a program of 
making grants to State and local educational agencies, and to Indian 
tribes, institutions, and organizations, to support planning, pilot, and 
demonstration projects which are designed to plan for, and test and 
demonstrate the effectiveness of, programs for providing adult educa-
(ion for Indians—• 
"(1) to support planning, pilot, and demonstration projects 
which are designed to test and demonstrate the effectiveness of 
programs for improving employment and educational opportuni-
ties for adult Indians; 
"(2) to assist in the establishment and operation of programs 
which are designed to stimulate (A) the provision of basic literacy 
,-, ,, 
opportunities to all nonliterate Indian adults, and (B) the pro-
vision of opportunities to all Indian adults to qualify for a high 
school equivalency certificate in the shortest period of time feasi-
ble; 
"(3) to support a major research and development program to 
develop more innovative and effective techniques for achieving 
the literacy and high school equivalency goals; 
"(4) to provide for basic surveys and evaluations thereof to 
define accurately the extent of the problems of illiteracy and 
, 
lack of high school completion on Indian reservations; 
"(5) to encourage the dissemination of information and ma-
terials relating to, and the evaluation of the effectiveness of. 
education programs which may offer educational opportunities 
to Indian adults. 
, ; , 
''(b) The Commissioner is also authorized to make grants to, and 
contracts with, public agencies, and institutions, and Indian tribes, 
institutions, and organizations for— 
"(1) the dissemination of information concerning educational 
programs, services, and resources available to Indian adults, 
including evaluations thereof; and 
"(2) the evaluation of the effectiveness of federally assisted 
programs in which Indian adults may participate in achieving the 
purposes of such programs with respect to such adults. 
•' (c) Applications for a grant under this section shall be submitted 
at such time, in such manner, and contain such information, and shall 
be consistent with such criteria, as may be established as requirements 
in regulations promulgated by the Commissioner. Such applications 
shall— 
"(1) set forth a statement describing the activities for which 
assistance is sought; 
" (^2) provide for an evaluation of the effectiveness of the proj-
ect in achieving its purposes and those of this section. 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
343 
The Commissioner shall not approve an application for a grant under 
Tribal partici-
subsection (a) unless he is satisfied that such application, and any doc- priority." '^"^' 
uments submitted with respect thereto, indicate that there has been 
adequate participation by the individuals to be served and tribal 
communities in the planning and development of the project, and 
that there will be such a participation in the operation and evaluation 
of the project. In approving applications under subsection (a), the 
Commissioner shall give priority to applications from Indian educa-
tional agencies, organizations, and institutions. 
" (d) For the purpose of making grants under this section there are 
Appropriation. 
hereby authorized to be appropriated $5,000,000 for the fiscal year 
ending June 30, 1973, and $8,000,000 for each of the two succeeding 
fiscal years.". 
PART D—OFFICE OF INDIAN EDUCATION 
OFFICE OF INDIAN EDUCATION 
SEC. Ml. (a) There is hereby established, in the Office of Education, 
Establishment. 
a bureau to be known as the "Office of Indian Education" which, under 
the direction of the Commissioner, shall have the responsibility for 
administering the provisions of title I I I of the Act of September 30, 
1950 (Public Law 874, Eighty-first Congress), as added by this Act, 
Ante, p. 334. 
section 810 of title VIII of the Elementary and Secondary Education 
Act of 1965, as added by this Act, and section 314 of title I I I of the 
Ante, p. 339. 
Elementary and Secondary Education Amendments of 1966, as added 
^"'^' P- ^'^'^• 
by this Act. The Office shall be headed by a Deputy Commissioner of 
Indian Education, who shall be appointed by the Commissioner of 
Education from a list of nominees submitted to him by the National 
Advisory Council on Indian Education. 
(b) The Deputy Commissioner of Indian Education shall be com- n,i^sf"ngr*^ofTd . 
pensated at the rate prescribed for, and shall be placed in, grade 18 of ™
a
\
T
o
^
n
.
"
^
'
^ ° 
the General Schedule set forth in section 5332 of title 5,1'nited States 
Code, and shall perform such duties as are delegated or assigned to him ^^^^^^ ^^^^ 
by the Commissioner. The position created by this subsection shall be 
in addition to the number of positions placed in grade 18 of such Gen-
eral Schedule under section 5108 of title 5, LTnited States Code. 
, ^"^ ^'^*; /r*^^' 
' 
Ante, 
p. 112. 
NATIONAL ADVISORY COUNCIL ON INDIAN 
EDUCATION 
SEC. 442. (a) There is hereby established the National Advisory 
Council on Indian Education (referred to in this title as the "National 
Council"), which shall consist of fifteen members who are Indians and 
Alaska Natives appointed by the President of the Laiited States. Such 
appointments shall be made by the President from lists of nominees 
furnished, from time to time, by Indian tribes and organizations, and 
shall represent diverse geographic areas of the country, 
(b) The National Council shall— 
(1) advise the Commissioner of Education with respect to the 
administration (including the development of regulations and of 
administrative practices and policies) of any program in which 
Indian children or adults participate from Avhich they can bene-
fit, including title I I I of the Act of September 30, 1950 (Public 
Law 874, Eighty-first Congress), as added by this Act, and section 
810, title V I I I of the Elementary and Secondary Education Act of 
1965, as added by this Act and with respect to adequate funding 
thereof: 
Establishment. 
-081 O - 73 - 25 
344 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 
STAT. 
Ante, p. 334. 
Ante, p. 339. 
Ante, p. 342. 
Ante, p. 335. 
Annual report 
to Congress. 
Contract 
authority. 
Ante, p. 326. 
(2) review applications for assistance under title I I I of the 
Act of September 30, 1950 (Public Law 874, Eighty-first Con-
gress), as added by this Act, section 810 of title VIII of the Ele-
mentary and Secondary Education Act of 1965, as added by this 
Act, and section 314 of the Adult Education Act, as added by this 
Act, and make recommendations to the Commissioner with respect 
to their approval; 
(3) evaluate program and projects carried out under any pro-
gram of the Department of Health, Education, and Welfare in 
which Indian children or adults can participate or from which 
they can benefit, and disseminate the results of such evaluations; 
(4) provide technical assistance to local educational agencies 
and to Indian educational agencies, institutions, and organiza-
tions to assist them in improving the education of Indian children; 
(5) assist the Commissioner in developing criteria and regu-
hitions for the administration and evaluation of grants made under 
section 303(b) of the Act of September 30, 1950 (Public Law 
874, Eighty-first Congress) ; and 
(6) to submit to the Congress not later than March 31 of each 
year a report on its activities, which shall include any recom-
mendations it may deem necessary for the improvement of Fed-
eral education programs in which Indian children and adults 
participate, or from which they can benefit, which report shall 
include statement of the Xational Council's recommendations to 
the Commissioner with respect to the funding of any such pro-
grams. 
(c) With respect to functions of the National Council stated in 
clauses (2), (3). and (4) of subsection (b), the National Council is 
authorized to contract with any public or private nonprofit agency, 
institution, or organization for assistance in carrying out such 
functions. 
(d) From the sums appropriated pursuant to section 400(c) of the 
General Education Provisions Act which ate available for the pur-
poses of section 411 of such Act and for part D of such Act, the Com-
missioner shall make available such sums as may be necessary to enable 
the National Council to carry out its functions under this section. 
PART E—MISCELLANEOUS PROVISIONS 
81 Stat. 83, 
20 u s e 1091b. 
81 Stat. 91; 
82 Stat. 1040; 
Ante, p. 285. 
20 u s e 1119. 
Indians, pref-
erence. 
AMENDMENT TO TITLE V OF HIGHER EDUCATION ACT OF 1 9 6 5 
SEC. 451. (a) Section 503(a) of the Higher Education Act of 1965 
is amended by inserting after "and higher education," the following: 
"including the need to provide such programs and education to 
Indians,'-. 
(b) Part D of title V of the Higher Education Act of 1965 is 
amended by adding after section 531 the following new section: 
'" 
i- 1 ; , ' 
''TEACHERS FOR INDIAN CHILDREN 
•'SEC 532. Of the sums made available for the purposes of this part, 
not less than 5 per centum shall be used for grants to, and contracts 
with, institutions of higher education and other public and private 
nonprofit agencies and organizations for the purpose of preparing 
persons to serve as teachers of children living on reservations serviced 
by elementary and secondary schools for Indian children operated or 
supported by the Department of the Interior, including public and 
private schools operated by Indian tribes and by nonprofit institutions 
and organizations of Indian tribes. In carrying out the provisions of 
this section preference shall be given to the training of Indians.". 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
345 
AMENDMENT TO T H E ELEMENTARY AND SECONDARY EDUCATION ACT OF 19G5 
SEC. 452. Section 706(a) of the Elementary and Secondary Educa-
tion Act of 1965 is amended to read as follows: 
84 stat. 152. 
" S E C 706. (a) For the purpose of carrying out programs pursuant 
LoJil^educal^^* 
to this title for individuals on or from reservations serviced by elemen- tionai agency 
tary and secondary schools operated on or near such reservations for st^'"^. 
Indian children, a nonprofit institution or organization of the Indian 
tribe concerned which operates any such school and which is ap-
proved by the Commissioner for the purpose of this section, may be 
considered to be a local educational agency, as such term is used in 
. 
^ 
this title.". 
< .. —^-
DEFINITION 
SEC. 453. For the purposes of this title, the term "Indian" means 
"Indian." 
any individual who (1) is a member of a tribe, band, or other orga-
nized group of Indians, including those tribes, bands, or groups ter-
minated since 1940 and those recognized now or in the future by the 
State in which they reside, or who is a descendant, in the first or sec-
ond degree, of any such member, or (2) is considered by the Secretary 
of the Interior to be an Indian for any purpose, or (3) is an Eskimo 
or Aleut or other Alaska Native, or (4) is determined to be an Indian 
under regulations promulgated by the Commissioner, after consulta-
tion with the National Advisory Council on Indian Education, which 
regulations shall further define the term "Indian". 
TITLE V—MISCELLANEOUS 
ADMINISTRATION OF PROGRAMS AND PROJECTS 
SEC 501. Section 434 of the General Education Provisions Act is 
^"'^' "' ^^^• 
amended by— 
(1) amending the caption head thereof to read "ADMINISTRATION 
OF EDUCATION PROGRAMS AND P R O J E C T S " ; 
(2) striking out " ( a ) " after " S E C 434." and inserting in lieu 
thereof "(a)(1)" and striking out " ( b ) " and inserting in lieu 
thereof "(2)"; 
(3) adding at the end thereof the following new subsection: 
" (b) Each application for assistance under any applicable program, 
with respect to which the Commissioner determines that this subsection 
should apply, whether such application is approved by the Commis-
sioner or by an agency administering a State plan approved by him 
and each State plan submitted to the Commissioner under any appli-
cable program shall, as a precondition for approval— 
" (1) provide for such methods of administration as are neces-
sary for the proper and efficient administration of the program or 
project for which application is made ; 
" (2) make provision for such fiscal control and fund accounting 
procedures as may be necessary to assure proper disbursement of, 
and accounting for, Federal funds paid to the applicant under 
the application; and 
" (3) provide for making such reports as the Commissioner may 
require to carry out his functions.". 
EXTENSION OF AUTHORIZATION OF APPROPRIATIONS OF TITLE I I I OF T H E 
NATIONAL DEFENSE EDUCATION ACT OF 
1 9 o 8 
SEC. 502. (a) The first sentence of section 301 of the National 
Defense Education Act of 1958 is amended by striking out "for the g/stat^Vga"^^' 
fiscal year ending June 30, 1971" and inserting in lieu thereof "for 
20 use 44*1. 
each of the succeeding fiscal years ending prior to July 1, 1975". 
346 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
82 Stat. 1052. 
20 use 441. 
Ante, p. 326. 
Report to con-
gressional com-
mittees. 
Publication in 
Federal Register. 
Report to con-
gressional com-
mittees. 
Publication in 
Federal Register; 
effective date. 
79 Stat. 27; 
Ante, p. 339. 
20 use 821 
note. 
(b) The second sentence of such section 301 is amended by striking 
out "July 1. 1971*' and inserting in lieu thereof "July 1, 1975". 
STUDY AXD REPORT ON RULES AND REGULATIONS 
SEC. 503. (a) The Commissioner shall conduct a study of all rules, 
regulations, guidelines, or other published interpretations or orders 
issued by him or by the Secretary of Health, Education, and Welfare 
(or any of their delegates) in connection with, or affecting, the admin-
istration of any program to which the General Education Provisions 
Act applies, which have been issued after June 30, 1965. Such study 
shall include a review of each such rule, regulation, guideline, inter-
pretation, or order as it relates to the statutoiy or other legal authority 
upon which it is based, and to committee reports relating to such statu-
tory authority. 
(b) No later than one year after the enactment of this Act, the Com-
missioner shall submit a report on the study conducted pursuant to 
subsection (a) to the Committee on Labor and Public Welfare of the 
Senate and the Committee on Education and Labor of the House of 
Representatives which report shall include the specific legal authority 
of each section, or other division, of each rule, regulation, guideline, 
interpretation, or other order to which this section applies. 
(c) Not later than sixtj days after the date of submission of the 
report required by subsection (b) of this section, all rules, regulations, 
guidelines, interpretations, or other orders to which this section applies 
shall be published in the Federal Register. During'the sixty-day period 
follow^ing such publication, the Commissioner shall provide interested 
parties an opportunity for a public hearing on the matters so 
published. 
(d) After a study of comments and recommendations offered to the 
Commissioner during the sixty-day period specified in subsection (c), 
he shall submit a report to the Committee on Labor and Public Welfare 
of the Senate and the Committee on Education and Labor of the House 
of Representatives on such comments and recommendations, and any 
action he has taken as a result thereof, and he shall, not later than sixty 
days after the period specified in subsection (c), republish all rules, 
regulations, guidelines, interpretations and orders in the Federal 
Register, which shall supersede all preceding rules, regulations, guide-
lines, interpretations and orders issued in connection with, or affecting, 
any program to which the General Education Provisions Act applies, 
and become effective thirty days after such republication. 
ETHNIC HERITAGE STUDIES PROGRAM 
SEC. 504. (a) The Elementary and Secondary Education Act of 
1965 is amended by adding at the end thereof the following new title: 
"TITLE IX—ETHNIC HERITAGE PROGRAM 
"STATEMENT OF POLICY 
"SEC. 901. In recognition of the heterogeneous composition of the 
Nation and of the fact that in a multiethnic society a greater under-
standing of the contributions of one's own heritage and those of one's 
fellow citizens can contribute to a more harmonious, patriotic, and 
committed populace, and in recognition of the principle that all 
persons in the educational institutions of the Nation should have an 
opportunity to learn about the differing and unique contributions to 
the national heritage made by each ethnic group, it is the purpose of 
this title to provide assistance designed to afford to students oppor-
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
347 
tunities to learn about the nature of their own cultural heritage, and 
to study the contributions of the cultural heritages of the other ethnic 
groups of the Nation. 
a 
E T H N I C HERITAGE STUDIES PROGRAMS 
"SEC. 902. The Commissioner is authorized to make grants to, and 
contracts with, public and private nonprofit educational agencies, 
institutions, and organizations to assist them in planning, developing, 
establishing, and operating ethnic heritage studies programs, as 
provided in this title. 
Grants, con-
tract authority. 
ii AUTHORIZED ACTIVITIES 
"SEC. 903. Each program assisted under this title shall— 
"(1) develop curriculum materials for use in elementary and 
secondary schools and institutions of higher education relating 
to the history, geography, society, economy, literature, art, music, 
drama, language, and general culture of the group or groups with 
which the program is concerned, and the contributions of that 
ethnic group or groups to the American heritage; 
"(2) disseminate curriculum materials to permit their use in 
elementary and secondary schools and institutions of higher 
education throughout the Nation; 
"(3) provide training for persons using, or preparing to use, 
curriculum materials developed under this title; and 
"(4) cooperate with persons and organizations with a special 
interest in the ethnic group or groups with which the program is 
concerned to assist them in promoting, encouraging, developing, 
or producing programs or other activities which relate to the 
history, culture, or traditions of that ethnic group or groups. 
a 
APPLICATIONS 
"SEC. 904. (a) Any public or private nonj)roJEit agency, institution, 
or organization desiring assistance under this title shall make appli- 
>
• ; 
cation therefor in accordance with the provisions of this title and 
other applicable law and with regulations of the Commissioner pro-
mulgated for the purposes of this title. The Commissioner shall 
Approval, condi-
approve an application under this title only if he determines that— 
*'°"^' 
"(1) the program for which the application seeks assistance 
will be operated by the applicant and that the applicant will carry 
out such program m accordance with this title; 
. 
" 
"(2) such program will involve the activities described in sec-
tion 903; and 
"(3) such program has been planned, and will be carried out, 
in consultation with an advisory council which is representative 
of the ethnic group or groups with which the program is con-
cerned and which is appointed in a manner prescribed by regu-
lation. 
"(b) In approving applications under this title, the Commissioner coordfnauon. 
shall insure that there is cooperation and coordination of efforts among 
the programs assisted under this title, including the exchange of mate-
rials and information and joint programs where appropriate. 
"ADMINISTRATIVE PROVISIONS 
"SEC. 905. (a) In carrying out this title, the Commissioner shall 
make arrangements which will utilize (1) the research facilities and 
personnel of institutions of higher education, (2) the special knowl-
Ante, 
p. 326. 
348 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
edge of ethnic groups in local communities and of foi'eign students 
pursuing their education in this country, (3) the expertise of teachei"S 
in elementary and secondary schools and institutions of higher edu-
cation, and (4) the talents and experience of any other groups such 
as foundations, civic groups, and fraternal organizations wliich would 
further the goals of the programs. 
Funds, use. 
" (^^ Fuuds appropriated to carry out this title nuiy be used to cover 
all or part of the cost of establishing and carrying out the programs, 
including the cost of research materials and resources, academic con-
sultants, and the cost of training of staif for the purpose of carrying 
out the purposes of this title. Such funds may also be used to provide 
stipends (in such amounts as may be determined in accordance with 
regulations of the Commissioner) to individuals receiving ti-aining as 
part of such programs, including allowances for dependents. 
''NATIONAL ADVISORY COUNCIL 
"SEC. 906. (a) There is hereby established a National Advisory 
Council on Ethnic Heritage Studies consisting of fifteen members 
appointed by the Secretary who shall be appointed, serve, and be com-
pensated as provided in part D of the General Education Provisions 
Act. 
"(b) Such Council shall, with respect to the pi'ogi'am authorized by 
this title, carry out the duties and functions specified in part D of the 
General Education Provisions Act. 
- 
• 
''APPROPRIATIONS AUTHORIZED 
"SEC. 907. For the purpose of carrying out this title, there are 
authorized to be appropriated $15,000,000 for the fiscal year ending-
June 80, 1973. Sums appropriated pursuant to this section shall, not-
withstanding any other provision of law unless enacted in express 
limitation of this sentence, remain available for expenditure and 
obligation until the end of the fiscal year succeeding the fiscal year for 
which they were appropriated.". 
(b) The amendment made by subsection (a) shall be ett'ective after 
June 30, 1972. 
CONSUMERS* EDUCATION 
SEC. 505. (a) (1) The Congress of the United States finds that there 
do not exist adequate resources for educating and informing consumer's 
nbout their role as participants in the marketplace. 
(2) It is the purpose of the amendment made by this section to 
encourage and support the development of new improved curricula to 
prepare consumers for participation in the marketplace to demonstrate 
the use of such curriculums in model educatiorral programs and to eval-
uate the effectiveness thereof; to provide support for the initiation and 
maintenance of programs in consumer education at the elemerrtary and 
secondary and higher education levels; to disseminate curricular mate-
rials and other information for use in educational programs throughout 
the Nation; to provide training programs for teachers, other educa-
tional personnel, public service personnel, and community and labor 
leaders and employees, and government employees at State, Federal, 
and local levels; to provide for Community Consumer education pro-
grams ; and to provide for the preparation and distribution of materials 
by mass media in dealing with consumer education. 
(3) Title VIII of the Elementary and Secondary Education Act of 
Ante, p. 339. 
IQQ^ is amended by adding at the end thereof the following new 
section: 
Effective date. 
86 STAT.] 
PUBLIC LA\V 92-318-JUNE 23, 1972 
349 
"CONSUMERS' EDUCATION PROGRAMS 
"Sec. 811. (a) There shall be within the Office of Education, a Direc-
tor of Consumers' Education (hereafter in this section referred to as 
the 'Director') who, subject to the management of the Commissioner, 
shall have primary responsibility for carrying out the provisions of 
this section. 
"(b)(1)(A) The Director shall carry out a program of making 
grants to, and contracts with, institutions of higher education, State 
and local educational agencies, and other public and private agencies, 
organizations, and institutions 
(includmg libraries) 
to support 
research, demonstration, and pilot projects designed to provide con-
sumer education to the public except that no grant may be made other 
than to a nonprofit agency, organization, or institution. 
"(B) Funds appropriated for grants and contracts under this sec-
tion shall be available for such activities as— 
"(i) the development of curricula (including interdisciplinary 
curricula) in consumer education; 
"(ii) dissemination of information relating to such curricula; 
"(iii) in the case of grants to State and local educational 
agencies and institutions of higher education, for the support of 
education programs at the elementary and secondary and higher 
education levels; and 
"(iv) preservice and inservice training programs and projects 
(including fellowship programs, institutes, workshops, sympo-
siums, and seminars) for educational personnel to prepare them 
to teach in subject matter areas associated with consumer edu-
cation. 
In addition to the activities specified in the first sentence of this para-
graph, such funds may be used for projects designed to demonstrate, 
test, and evaluate the effectiveness of any such activities, whether or 
not assisted under this section. Activities pursuant to this section shall 
provide bilingual assistance when appropriate. 
"(C) Financial assistance under this subsection may be made avail-
able only upon application to the Director. Applications under this 
subsection sliall be submitted at such time, in such form, and containing 
such information as the Director shall prescribe by regulation and 
shall be approved only if it— 
" (i) provides that the activities and service for which assistance 
is sou8:ht will be administered by, or under the supervision of, the 
applicant; 
"(ii) describes a pro.QTam for carrying out one or more of the 
purposes set forth in the first sentence of paragraph (2) which 
holds promise of making a substantial contribution toward 
attaining the purposes of this section; 
"(iii) sets forth such policies and procedures as will insure 
adequate evaluation of the activities intended to be carried out 
under the application; 
" (iv) sets forth policies and procedures which assure that Fed-
eral funds made available under this section for any fiscal year 
will be so used as to supplement and, to the extent practical, 
increase the level of funds that would, in the absence of such 
Federal funds, be made available by the applicant for the purposes 
described in this section, and in no case supplant such funds; 
"(v) provides for such fiscal control and fund accounting 
procedures as may be necessary to assure proper disbursement 
of an accounting for Federal funds paid to tlie applicant under 
this section: and 
Director of 
Consumers' Edu-
cation. 
Grants, con-
tract authority. 
Prohibition. 
Funds, use. 
Bilingual as-
sistance. 
Applications. 
350 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Reports, record-
keeping. 
State educa-
tional agency, 
notification. 
Program costs, 
Federal share. 
Reports; evalu-
ations. 
Appropriations. 
Effective date. 
"(vi) provides for making an annual report and such other 
reports, in such form and containing- such information, as the 
Commissioner may reasonably require and for keeping such 
records, and for affording such access thereto as the Commissioner 
may find necessary to assure the correctness and verification of 
such reports. 
Applications from local educational agencies for financial assistance 
under this section may be approved by the Director only if the State 
educational agency has been notified of the application and been given 
the opportunity to offer recommendations. 
"(2) Federal assistance to any program or project under this sub-
section, other than those involving curriculum development, dissemina-
tion of curricular materials, and evaluation, shall support up to 100 
per centum of the cost of such program including costs of administra-
tion ; contributions in kind are acceptable as local contributions to pro-
gram costs. 
"(c) Each recipient of Federal funds under this section shall make 
such reports and evaluations as the Commissioner shall prescribe by 
regulation. 
"(d) There is authorized to be appropriated $20,000,000 for the fiscal 
vear ending June 30, 1973; $25,000,000 for the fiscal year ending 
June 30, 1974; and $35,000,000 for the year ending June 30, 1975, for 
carrying out the purposes of this section.". 
(b) The amendment made by this section shall be effective after 
June 30, 1972. 
Appropriation. 
7 use 321-326, 
328. 
74 Stat. 525; 
82 Stat. 241. 
LAND-GRANT STATUS FOR THE COLLEGE OF THE VIRGIN ISLANDS AND THE 
UNIVERSITY OF GUAM 
SEC. 506. (a) The College of the Virgin Islands and the University 
of Guam shall be considered land-grant colleges established for the 
benefit of agriculture and mechanic arts in accordance with the provi-
sions of the Act of July 2, 1862, as amended (12 Stat. 503; 7 U.S.C. 
301-305,307,308). 
(b) In lieu of extending to the Virgin Islands and Guam thope pro-
visions of the Act of July 2,1862, as amended, relating to donations of 
public land or land scrip for the endowment and maintenance of col-
leges for the benefit of agriculture and the mechanic arts, there is 
authorized to be appropriated $3,000,000 to the Virgin Islands and 
$3,000,000 to Guam. Amounts appropriated pursuant to this section 
shall be held and considered to have been granted to the Virgin Islands 
and Guam subject to the provisions of that Act applicable to the 
proceeds from the sale of land or land scrip. 
(c) The Act of August 30,1890 (26 Stat. 417; 7 U.S.C. 3-22-326) is 
amended by adding at the end thereof the following new section: 
"SEC. 5. There is authorized to be appropriated annually for pay-
ment to the Virgin Islands and Guam the amount they would receive 
under this Act if they were States. Sums appropriated under this sec-
tion shall be treated in the same manner and be subject to the same 
provisions of law, as would be the case if they had been appropriated 
by the first sentence of this Act.". 
(d) Section 22 of the Act of June 29,1935, as amended (49 Stat. 439; 
7 U.S.C. 329), is further amended— 
(1) by striking out "and Puerto Rico" wherever it appears and 
inserting in lieu thereof the following: ", Puerto Rico, the Virgin 
Islands, and Guam"; 
(2) by striking out "$7,800,000" and inserting in lieu thereof the 
figure "$8,100,000"; and 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
351 
(3) by striking out "$4,320,000" and inserting in lieu thereof 
the figure "$4,360,000". 
(e) The Act of March 4, 1940 (54 Stat. 39; 7 U.S,C. 331) is 
amended— 
(1) by striking out "and Territories'' wherever it appears and 
inserting in lieu thereof the following: ", Puerto Kico, the Virgin 
Islands, and Guam"; 
(2) by striking out "or Territories" w^herever it appears and 
inserting in lieu thereof the following: ", Puerto Rico, the Virgin 
Islands, or Guam"; and 
(3) by striking out "State" wherever it appears in the third 
proviso of that Act and inserting in lieu thereof the folloAving: 
"State, Puerto Rico, the Virgin Islands, or Guam". 
(f) Section 207 of the Agricultural Marketing Act of 1946 (60 Stat. 
1091; 7 U.S.C. 1626), is amended by striking out the period at the end 
of the section and inserting in lieu thereof the following: ", and the 
term 'State' when used in this chapter shall include the Virgin Islands 
and Guam.". 
(g) Section 3 of the Act of May 8,1914, as amended (38 Stat. 373; 7 
T'.S.C. 343), is further amended by inserting "(1)" immediately after 
^7 stat. 84; 
the designation of subsection (b) thereof and by adding at the end of 
subsection (b) thereof a new paragraph (2) as follows; 
"(2) There is authorized to be appropriated for the fiscal year end- 
Appropriation. 
ing June 30, 1971, and for each fiscal year thereafter, for payment 
to the Virgin Islands and Guam, $100,000 each, which sums shall be in 
addition to the sums appropriated for the several States of the United 
States and Puerto Rico under the provisions of this section. The 
amount paid by the Federal Government to the Virgin Islands and 
Guam pursuant to this paragraph shall not exceed during any fiscal 
year, except the fiscal years ending June 30, 1971, and June 30, 1972, 
when such amount maj be used to pay the total cost of providing 
services pursuant to this Act, the amount available and budgeted for 
expenditure by the Virgin Islands and Guam for the purposes of this 
Act.". 
(h) Section 10 of the Act of May 8, 1914, is amended by striking 
^ use 349. 
out "and Puerto Rico" and inserting in lieu thereof the following: 
", Puerto Rico, the Virgin Islands, and Guam". 
(i) Section 4 of the Act of October 10, 1962 (76 Stat. 806; 16 
U.S.C. 582a-3), is amended by striking out the period at the end of the 
first sentence thereof and inserting in lieu thereof the following: 
", except that for the fiscal years ending June 30, 1971, and June 30, 
1972, the matching funds requirement hereof shall not be applicable to 
the Virgin Islands and Guam, and sums authorized for such years for 
the Virgin Islands and Guam may be used to pay the total cost of pro-
grams for forestrv research.". 
(j) Section^8 of the Act of October 10, 1962 (76 Stat. 807; 16 
U.S.C. 582a-7), is amended by striking out the period at the end 
? o i 
thereof and inserting in lieu thereof the following: ", the Virgin 
Islands, and Guam.". 
(k) Section 1 of the Act of August 11, 1955 (7 U.S.C. 361a-361i), is 
^^ ^tat. 671. 
amended by striking out the period at the end of the second sentence 
and inserting in lieu thereof the following: "Guam and the Virgin 
Islands," and striking out "and" between the words "Hawaii and 
Puerto Rico.". 
(1) Section 3 of the Act of August 11,1955 (7 U.S.C. 361a-361i) is 
amended by redesignating subsection (b) as paragraph (1) of subsec-
tion (b), and adding a new paragraph (2) to subsection (b) to read as 
follows: 
352 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Effective date. 
"(2) There is authorized to be appropriated for the fiscal year end-
ing June 30,1973, and for each fiscal year thereafter, for payment to 
the Virgin Islands and Guam, $100,000 each, which sums shall be in 
addition to the sums appropriated for the several States of the LTnited 
States and Puerto Rico under the provisions of this section. The amount 
paid by the Federal Government to the Virgin Islands and Guam pur-
suant to this paragraph shall not exceed during any fiscal year, except 
the fiscal years ending June 30, 1971, and June 30, 1972, when such 
amount may be used to pay the total cost of providing services pursuant 
to this Act, the amount available and budgeted for expenditure by the 
Virgin Islands and Guam for the purposes of this Act." 
(m) With respect to the Virgin Islands and Guam, the enactment of 
this section shall be deemed to satisfy any requirement of State con-
sent contained in laws or provisions of law referred to in this section. 
(n) The amendments made by this section shall be effective after 
June30,1970. 
80 Stat. 1192; 
81 Stat. 787; 
84 Stat. 126. 
20 u s e 241e. 
Study. 
79 Stat. 27; 
80 Stat. 1198; 
81 Stat. 787. 
20 u s e 241a. 
Report. 
. I?3 ,)«.j8.. 
AMENDMENTS TO T H E ELEMENTARY AND SECONDARY EDUCATION ACT OF 
1 9 6 5 W I T H RESPECT TO MIGRATORY CHILDREN OF MIGRATORY AGRICUL-
. 
TURAL WORKERS 
SEC. 507. (a) Section 141(c) (1) of title I of the Elementary and Sec-
ondary Education Act of 1965 is amended by striking out the word 
"and" at the end of clause (B) of such section, by redesignating clause 
(C) of such section as clause (D), and by inserting immediately after 
clause (B) the following new clause (C): 
"(C) that, effective after June 30, 1972, in planning and carry-
ing out programs and projects, there has been adequate assurance 
that provision will be made for the preschool educational needs of 
migratory children of migratory agricultural workers, whenever 
such agency determines that compliance with this clause will not 
detract from the operation of programs and projects described in 
clause (A) of this paragraph after considering the funds avail-
able for this purpose; and". 
(b) Section 141(c) (3) of such title I is amended by adding at the 
end thereof the following new sentence: "Such children who are 
presently migrant, as determined pursuant to regulations of the Com-
missioner, shall be given priority in the consideration of programs and 
activities contained in applications submitted under this subsection.". 
(c) (1) The Commissioner shall conduct a study of the operation of 
title I of the Elementary and Secondary Education Act of 1965 as such 
title affects the education of migratory children of migratory agricul-
tural workers. Such study shall include an evaluation of the specific 
programs and projects assisted under such title I for such children, 
with a view toward the assessment of their effectiveness, and shall 
include a review of the administration of such programs and projects 
by the States. 
(2) Not later than December 31, 1973, the Commissioner shall sub-
mit a report on the study required by paragraph (1), which report shall 
contain a statement with respect to the effectiveness of individual pro-
grams and projects assisted under such title I with respect to migrant 
children, an evaluation of State administration of such programs and 
projects, and make recommendations for the improvement of such 
programs and projects. 
80 Stat. 1194; 
81 Stat. 787. 
20 u s e 241c. 
TECHNICAL AMENDMENT W I T H RESPECT TO NEGLECTED OR DELINQUENT 
CHILDREN 
U' 
SEC. 508. Section 103 (a) (7) of title I of the Elementary and Second-
ary Education Act of 1965, is amended by striking out "for children 
79 Stat. 49. 
20 use 863. 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
353 
in institutions for neglected or delinquent children" and inserting in 
lieu thereof the following: "for children in institutions for neglected 
or delinquent children or in adult correctional institutions, if such 
funds are used solely for children". 
CONFORMING AMENDMENTS WITH RESPECT TO OCCUPATIONAL EDUCATION 
SEC. 509. (a) (1) Section 203(a) (3) of the Elementary and Second-
ary Education Act of 1965 is amended by striking out "and" at the end 
so stat. 1200. 
of clause (B), striking out the semicolon at the end of clause (C) 
^° "^^ ®^^' 
and inserting in lieu thereof ", and", and by inserting a new clause as 
-
follows: 
" (D) provide assurance that equal consideration shall be given 
to the needs of elementary and secondary schools for library 
resources, textbooks, and other printed and published materials 
utilized for instruction, orientation, or guidance and counseling in 
occupational education.". 
(2) Section 303(b)(3) of such Act is amended by redesignating 
^n f^fr'if^' 
clauses (C), (D), (E), (F), (G), (H), (I), and (J), respectively, as 
'° "^^ »^^-
clauses (D), (E), (F), (G), (H), (I), (J), and (K), and by inserting 
a new clause as follows: 
"(C) proOTams designed to encourage the development in ele-
mentary and secondary schools of occupational information and 
counseling and guidance, and instruction in occupational educa-
tion on an equal footing with traditional academic education;". 
(3) Section 503(4) of such Act is amended by redesignating clauses 
(A), (B),and (C), respectively, as clauses (B), (C),and (D), and by 
inserting a new clause as follows: 
"(A) the development in elementary and secondary schools of 
programs of occupatix)nal information, counseling and guidance, 
and instruction in occupational education on an equal footing with 
traditional academic education,", 
(b) (1) Section 104(a) (2) of the Vocational Education Act of 1963 
(relating to the duties of the National Advisory Council on Voca-
tional Education) is amended by inserting after "under this title" 
each time it appears ", and under part B of title X of the Higher 
Education Act of 1965,". 
^"'^' "' ^i^. 
(2) Section 104 of such Act is further amended by redesignating 
subsection (c) as subsection (d) and by inserting a new subsection as 
follows: 
"(c) State advisory councils also shall perform with respect to the 
programs carried out under part B of title X of the Higher Educa-
tion Act of 1965 functions identical with or analogous to those 
assigned under this title, and the Commissioner shall assure that 
adequate funds are made available to such Councils from funds appro-
priated to carry out part B of that title (without regard to whether 
such funds have been allt>tted to States) to enable them to perform 
such functions.". 
P O L I C Y STATEMENT CONCERNING STUDENTS ON BOARDS OF TRUSTEES 
SEC. 510. It is the sense of the Congress that the governing boards 
of institutions of higher education should give consideration to student 
participation on such boards. 
TITLE VI—INVESTIGATION OF YOUTH CAMP SAFETY 
SEC. 601. The Secretary of Health, Education, and Welfare shall 
make a full and complete investigation and study to determine (1) 
82 Stat. 1066. 
20 u s e 1244. 
354 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Report to Con-
gress. 
the extent of preventable accidents and illnesses currently occurring 
in youth camps throughout the Nation, (2) the contribution to youth 
camp safety now being made hj State and local public agencies and 
private groups, (3) whether existing State and local laws adequately 
deal with the safety of campers in youth camps, (4) whether existing 
State and local laws relating to youth camp safety are being effectively 
enforced, and (5) the need for Federal laws in this field. 
EEPORT 
SEC. 602. The Secretai-y of Health, Education, and Welfare shall 
make a report to the Congress before March 1, 1973, on the results 
of his investigation and study under this title. Such report shall in-
clude his recommendations for such legislation as may be necessary 
or desirable. 
AUTHORIZATION OF FUNDS 
SEC. 603. There is authorized to be appropriated $300,000 for carry-
ing out the purposes of this title. 
TITLE VII—EMEEGENCY SCHOOL AID 
SHORT TITLE 
SEC. 701. This title may be cited as the "Emergency School Aid 
Act". 
FINDINGS AND PURPOSE 
SEC. 702. (a) The Congress finds that the process of eliminating or 
preventing minority group isolation and improving the quality of 
education for all children often involves the expenditure of additional 
funds to which local educational agencies do not have access. 
(b) The purpose of this title is to provide financial assistance— 
(1) to meet the special needs incident to the elimination of 
minority group segregation and discrimination among students 
and faculty in elementary and secondary schools; 
(2) to encourage the voluntary elimination, reduction, or pre-
vention of minority group isolation in elementary and secondary 
schools with substantial proportions of minority group students: 
and 
(3) to aid school children in overcoming the educational dis-
advantages of minority group isolation. 
78 Stat. 252. 
42 u s e 2000d. 
80 Stat. 1209; 
81 Stat. 787. 
42 u s e 2000d-5 
POLICY W I T H R E S P E C T TO T H E APPLICATION OF CERTAIN PROVISIONS OF 
FEDERAL LAW 
SEC. 703. (a) It is the policy of the United States that guidelines and 
criteria established pursuant to this title shall be applied uniformly in 
all regions of the United States in dealing with conditions of segrega-
tion by race in the schools of the local educational agencies of any 
State without regard to the ori^^in or cause of such segregation. 
(b) It is the policy of the LTnited States that guidelines and criteria 
established pursuant to title VI of the Civil Rights Act of 1964 and 
section 182 of the Elementary and Secondary Education Amendments 
of 1966 shall be applied uniformly in all regions of the United States 
in dealin|>; with conditions of segregation by race whether de jure or 
de facto in the schools of the local educational agencies of any State 
without regard to the origin or cause of such segregation. 
86 STAT.] 
PUBLIC LAW 9 2 - 3 1 8 - J U N E 23, 1972 
355 
APPROPRIATIONS 
SEC. 704. (a) The Assistant Secretary shall, in accordance with the 
provisions of this title, carry out a program designed to achieve the 
purpose set forth in section 702(b). There are authorized to be appro-
priated for the purpose of carrying out this title, $1,000,000,000 for the 
fiscal year ending June 30, 1973, and $1,000,000,000 for the fiscal year 
ending June 30, 1974. Funds so appropriated shall remain available 
for obligation and expenditure during the fiscal year succeeding the 
fiscal year for which they are appropriated. 
(b) (1) From the sums appropriated pursuant to subsection (a) for 
any fiscal year, the Assistant Secretary shall reserve an amount equal 
to 5 per centum thereof for the purposes of section 709. 
(2) From the sums appropriated pursuant to subsection (a) for any 
fiscal year, the Assistant Secretary shall reserve an amount equal to 
13 per centum thereof for the purposes of sections 708 (a) and (c), 
711, and 713, of which— 
(A) not less than an amount equal to 4 per centum of such sums;; 
shall be for the purposes of section 708 (c) ; and 
(B) not less than an amount equal to 3 per centum of such 
sums shall be for the purposes of section 711. 
APPORTIONMENT AMON(} STATES 
SEC. 705. (a) (1) From the sums appropriated pursuant to section 
704(a) which are not reserved under section 704(b) for any fiscal 
year, the Assistant Secretary shall apportion to each State for grants 
and contracts within that State $75,000 plus an amount which bears 
the same ratio to such sums as to the number of minority group chil-
dren aged 5-17, inclusive, in that State bears to the number of such 
children in all States except that the amount apportioned to any State 
shall not be less than $100,000. The number of such children in each 
State and in all of the States shall be determined by the Assistant 
Secretary on the basis of the most recent available data satisfactory 
r 
-J 
to him. 
(2) The Assistant Secretary shall, in accordance with criteria estab-
lished by regulation, reserve not in excess of 15 per centum of the sums 
appropriated pursuant to subsection 704(a) for grants to, and con-
tracts with, local educational agencies in each State pui'suant to 
section 706(b) to be apportioned to each State in accordance with 
pai-agraph (1) of this subsection. 
(3) The Assistant Secretary shall reserve 8 per centum of the sums 
appropriated pursuant to subsection 704(a) for the purpose of sec-
tion 708(b) to be apportioned to each State in accordance with para-
graph (1) of this subsection. 
(b) (1) The amount by which any apportionment to a State for a 
fiscal year under subsection (a) exceeds the amount which the Assistant 
Secretary determines will be required for such fiscal year for pro-
grams or projects within such State shall be available for reapportion-
ment to other States in proportion to the original apportionments to 
such States under subsection (a) for that year, but with such propor-
tionate amount for any such State being reduced to the extent it exceeds 
the sum the Assistant Secretary estimates such State needs and will be 
able to use for such year; and the total of such reductions shall be 
similarly reapportioned among the States whose 
proportionate 
amounts w^ere not so reduced. Any amounts reapportioned to a State 
under this subsection during a fiscal year shall be deemed part of 
its apportionment under subsection (a) for such year. 
356 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
(2) In order to afford ample opportunity for all eligible applicants 
in a State to submit applications for assistance under this title, the 
Assistant Secretary shall not fix a date for reapportionment, pursuant 
to this subsection, of any portion of any apportionment to a State 
for a fiscal year which date is earlier than sixty days prior to the end 
of such fiscal year. 
(3) Notwithstanding the provisions of paragraph (1) of this sub-
section, no portion of any apportionment to a State for a fiscal year 
shall be available for reapportionment pursuant to this subsection 
unless the Assistant Secretary determines that the applications for 
assistance under this title which have been filed by eligible applicants 
in that State for which a portion of such apportionment has not been 
reserved (but which would necessitate use of that portion) are appli-
cations which do not meet the requirements of this title, as set forth 
in sections 706, 707, and 710, or wnich set forth programs or projects 
of such insufficient promise for achieving the purpose of this title 
stated in section 702(b) that their approval is not warranted. 
ELIGIBILITY FOR ASSISTANCE 
SEC. 706. (a) (1) The Assistant Secretary is authorized to make a 
grant to, or a contract with, a local educational agency— 
(A) which is implementing a plan— 
;, 
(i) which has been undertaken pursuant to a final order 
issued by a court of the United States, or a court of any State, 
or any other State agency or official of competent jurisdic-
tion, and which requires the desegregation of minority group 
segregated children or faculty in the elementary and second-
ary schools of such agency, or dthel-wise requires the elimina-
,; 
tion or reduction of minority group isolation in such schools; 
or 
(ii) which has been approved by the Secretary as adequate 
78 stau 2
5
^
2
^
^ 
uuder title VI of the Civil Rights Act of 1964 for the desegre-
-o TTo/- oAAAj 
gation of minority group segregated children or faculty in 
such schools; or 
(B) which, without having been required to do so, has adopted 
and is implementing, or will, if assistance is made available to it 
under this title, adopt and implement, a plan for the complete 
elimination of minority group isolation in all the minority group 
isolated schools of such agency; or 
(C) which has adopted and is implementing, or will, if assist-
ance is made available to it under this Act, adopt and implement, 
a plan— 
(i) to eliminate or reduce minority group isolation in one 
f
j
y
i
^ 
or more of the minority group isolated schools of such agency, 
(ii) to reduce the total number of minority group children 
who are in minority group isolated schools of such agency, 
or 
(iii) to prevent minority group isolation reasonably likely 
to occur (in the absence of assistance under this title) in any 
school in such district in which school at least 20 per centum 
but not more than 50 per centum, of the enrollment consists 
of such children, or 
(D) which, without having been required to do so, has adopted 
and is implementing, or will, if assistance is made available to 
it under this title, adopt and implement a plan to enroll and 
educate in the schools of such agency children who would not 
otherwise be eligible for enrollment because of nonresidence in 
the school district of such agency, where such enrollment would 
make a significant contribution toward reducing minority group 
42 use 2000d. 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
3S7 
isolation in one or more of the school districts to -which such plan 
relates. 
(2) (A) The Assistant Secretary is authorized, in accordance with 
special eligibility criteria established by regulation for the purposes 
of this paragraph, to make grants to, and contracts with, local educa-
tional agencies for the purposes of section 709(a)(1). 
(B) A local educational agency shall be eligible for assistance under 
this paragraph only if— 
(i) such agency is located within, or adjacent to, a Standard 
Metropolitan Statistical Area; 
(ii) the schools of such agency are not attended by minority 
group children in a significant number or proportion; and 
(iii) such local educational agency has made joint arrangements 
with a local educational agency, located within that Standard 
Metropolitan Statistical Area, and the schools of which are 
attended by minority group children in a significant proportion, 
for the establishment or maintenance of one or more integrated 
schools as provided in section 720 (6). 
(3) Upon a determination by the Assistant Secretary— 
(i) that more than 50 per centum of the number of children in 
attendance at the schools of a local educational agency is minority 
group children; and 
(ii) that such local educational agency has applied for and wdll 
receive at least an equal amount of assistance under subsection (b); 
the Assistant Secretary is authorized to make a grant to, or contract 
with, such local educational agency for the establishment or mainte-
nance of one or more integrated schools as defined in section 720(7). 
(b) The Assistant Secretary is authorized to make grants to, or con-
tracts with, local educational agencies, which are eligible under sub-
section (a), for unusually promising pilot programs or projects 
designed to overcome the adverse effects of minority group isolation 
by improving the academic achievement of children in one or more 
minority group isolated schools, if he determines that the local educa-
tional agency had a number of minority group children eni'olled in 
its schools, for the fiscal year preceding the fiscal year for which assist-
ance is to be provided, which (1) is at least 15,000, or (2) constitutes 
more than 50 per centum of the total number of children enrolled in 
such schools. 
(c) No local educational agency making application under this sec-
tion shall be eligible to receive a grant or contract in an amount in 
excess of the amount determined by the Assistant Secretary, in accord-
ance with regulations setting forth criteria established for such pur-
pose, to be the additional cost to the applicant arising out of activities 
authorized under this title, above that of the activities normally car-
ried out by the local educational agency. 
(d) (1) No educational agency shall be eligible for assistance under 
this title if it has, after the date of enactment of this title— 
(A) transferred (directly or indirectly by gift, lease, loan, sale, 
or other means) real or personal property to, or made any services 
available to, any transferee w^hich it knew or reasonably should 
have known to be a nonpublic school or school system (or any 
organization controlling, or intending to establish, such a school or 
school system) without prior determination that such nonpublic 
school or school system (i) is not operated on a racially segregated 
basis as an alternative for children seeking to avoid attendance in 
desegregated public schools, and (ii) does not otherwise practice, 
or permit to be practiced, discrimination on the basis of race, color, 
or national origin in the operation of any school activity; 
Grants, con-
tract authority. 
Limitation. 
358 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Ineligibility, 
waiver. 
Waiver applica-
tion, approval. 
Notice to con-
gressional com-
mittees. 
(B) had ill effect any practice, policy, or procedure which 
rvsults in the disproportionate demotion or dismissal of instruc-
tional or other personnel from minority groups in conjunction 
with desegregation or the implementation of any plan or the con-
duct of any activity described in this section, or otherwise engaged 
in discrimination based upon race, color, or national origin in the 
hiring, promotion, or assignment of employees of the agency (or 
other personnel for whom the agency has any administrative 
responsibility) ; 
(C) in conjunction with desegregation or the conduct of an 
activity described in this section, had in effect any procedure for 
the assignment of children to or within classes which results in 
the separation of minority group from nonminority group chil-
dren for a substantial portion of the school day, except that this 
clause does not prohibit the use of bona fide ability grouping by 
a local educational agency as a standard pedagogical practice; or 
(D) had in effect any other practice, policy, or procedure, such 
as limiting curricular or extracurricular activities (or participa-
tion therein by children) in order to avoid the participation of 
minority group children in such activities, which discriminates 
among children on the basis of race, color, or national origin; 
except that, in the case of any local educational agency Avhich is ineligi-
ble for assistance by reason of clause (A), (B), (C), or (D), such 
agency may make application for a waiver of ineligibility, which 
application shall specify the reason for its ineligibility, contain such 
information and assurances as the Secretary shall require by regula-
tion in order to insure that any practice, policy, or procedure, or other 
activity resulting in the ineligibility has ceased to exist or occur and 
include such provisions as are necessary to insure that such activities 
do not reoccur after the submission of the application. 
(2) Applications for waivers under paragraph (1) may be approved 
only by the Secretary. The Secretary's functions under this paragraph 
shall, notwithstanding any other provision of law, not be delegated. 
(;3) Applications for waiver shall be granted by t;he Secretary upon 
determination that any practice, policy, procedure or other activity 
resulting in ineligibility has ceased to exist, and that the applicant has 
given satisfactory assurance that the activities prohibited in this sub-
section will not reoccur. 
(4) No application for assistance under this title shall be approved 
prior to a determination by the Secretary that the applicant is not 
ineligible by reason of this subsection. 
(5) All determinations pursuant to this subsection shall be carried 
out in accordance with criteria and investigative procedures established 
by regulations of the Secretary for the purpose of compliance witli this 
subsection. 
(6) All determinations and waivers pursuant to this subsection 
shall be in writing. The Committee on Labor and Public Welfare of 
the Senate and the Committee on Education and Labor of the House 
of Representatives shall each be given notice of an intention to grant 
any waiver under this subsection, which notice shall be accompanied 
by a copy of the proposed waiver for which notice is given and copies 
of all determinations relating to such waiver. The Assistant Secretary 
shall not approve an application by a local educational agency which 
requires a waiver under this subsection prior to 15 days after receipt 
of the notice required by the preceding sentence by the chairman of 
the Committee on Labor and Public Welfare of the Senate and the 
chairman of the Committee on Education and Labor of the House of 
Representatives. 
86 STAT.] 
PUBLIC LAW 92-318-JUNE 23, 1972 
359 
AUTHORIZED ACTIVITIES 
SEC. 707. (a) Financial assistance under this title (except as pro-
^•ided by sections 708, 709, and 711) shall be available for programs 
and projects which would not otherwise be funded and which involve 
activities designed to carry out the purpose of this title stated in sec-
tion 702(b) : 
(1) Remedial services, beyond those provided under the regular 
school program conducted by the local educational agency, includ-
ing student to student tutoring, to meet the special needs of chil-
dren (including gifted and talented children) in schools which 
are affected by a plan or activity described in section 706 or a pro-
gram described in section 708, when such services are deemed 
necessary to the success of such plan, activity, or program. 
(2) The provision of additional professional or other staff mem-
bers (including staff' members specially trained in problems 
incident to desegregation or the elimination, reduction, or preven-
tion of minority group isolation) and the training and retraining 
of staff for such schools. 
(3) Recruiting, hiring, and training of teacher aides, provided 
that in recruiting teacher aides, preference shall be given to 
parents of children attending schools assisted under this title. 
(4) Inservice teacher training designed to enhance the success 
of schools assisted under this title through contracts with institu-
tions of higher education, or other institutions, agencies, and 
organizations individually determined by the Assistant Secretary 
to have special competence for such purpose. 
(5) Comprehensive guidance, counseling, and other personal 
services for such children. 
(6) The development and use of new curricula and instruc-
tional methods, practices, and techniques (and tlie acquisition of 
instructional materials relating thereto) to support a program 
of instruction for cliildren from all racial, ethnic, and economic 
backgrounds, including instruction in the language and cultural 
heritage of minority grouj^s. 
(7) Educational programs using shared facilities for career 
education and other specialized activities. 
(8) Innovative interracial educational programs or projects 
involving the joint participation of minority group children and 
other children attending different schools, including extracurric-
ular activities and cooperative exchanges or other arrangements 
between schools within the same or different school districts. 
(9) Community activities, including public information efforts, 
in support of a plan, program, project, or activity described in 
this title. 
(10) Administrative and auxiliary services to facilitate the suc-
cess of the program, project, or activity. 
(11) Planning programs, projects, or activities under this title, 
the evaluation of such programs, projects, or activities, and dis-
semination of information with respect to such programs, projects, 
or activities, 
(12) Repair or minor remodeling or alteration of existing 
school facilities (including the acquisition, installation, moderni-
zation, or replacement of instructional equipment) and the lease 
or purchase of mobile classroom units or other mobile education 
facilities. 
In the case of programs, projects, or activities involvinsr activities 
described in paragraph (12), the inclusion of such activities must be 
found to be a necessary component of, or necessary to facilitate, a 
Special remedial 
services. 
Professional 
staff. 
Teacher aides. 
Inservice 
teacher training. 
Counseling. 
New curricula, 
minority language 
Career educa-
tion. 
Innovative in-
terracial programs! 
Community 
activities. 
Administrative 
services. 
Planning and 
evaluation. 
Facility re-
modeling; mobile 
units. 
Restriction. 
82-081 O - 73 - 26 
360 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Definition by 
regulation. 
program or project involving other activities described in this sub-
section or subsection (b), and in no case involve an expenditure in 
excess of 10 per centum of the amount made available to the applicant 
to carry out the program, project, or activity. The Assistant Secretary 
shall by regulation define the term "repair or minor remodeling or 
alteration". 
(b) Sums reserved under section 705(a)(2) with respect to any 
State shall be available for grants to, and contracts with, local educa-
tional agencies in that State making application for assistance under 
section 706(b) to carry out innovative pilot programs and projects 
which are specifically designed to assist in overcoming the adverse 
effects of minority group isolation, by improving the educational 
achievement of children in minority group isolated schools, including 
only the activities described in paragraphs (^1) through (12) of sub-
section (a), as they may be used to accomplish such purpose. 
Grants, con-
tract authority. 
Bilingual edu-
cation. 
SPECIAL PROGRAMS AND PROJECTS 
SEC. 708. (a)(1) Amounts reserved by the Assistant Secretary 
pursuant to section 704(b) (2), which are not designated for the pur-
poses of clause (A) or (B) thereof, or for section 713 shall be available 
to him for grants and contracts under this subsection. 
(2) The Assistant Secretary is authorized to make grants to, and 
contracts with, State and local educational agencies, and other public 
agencies and organizations (or a combination of such agencies and 
organizations) for the purpose of conducting special programs and 
projects carrying out activities otherwise authorized by this title, which 
the Assistant Secretary determines will make substantial progress 
toward achieving the purposes of this title. 
(b) (1) From not more than one-half of the sums reserved pursuant 
to section 705 (a) (3), the Assistant Secretary, in cases in which he finds 
that it would effectively carry out the purpose of this title stated in 
section 702(b), may assist by grant or contract any public or private 
nonprofit agency, institution, or organization (other than a local educa-
tional agency) to carry out programs or projects designed to support 
the development or implementation of a plan, program, or activity 
described in section 706 (a). 
(2) From the remainder of the sums reserved pursuant to section 
705 (a)(3), the Assistant Secretary is authorized to make grants to, and 
contracts with, public and private nonprofit agencies, institutions, and 
organizations (other than local educational agencies and nonpublic 
elementary and secondary schools) to carry out programs or projects 
designed to support the development or implementation of a plan, 
program,or activity described in section 706 (a). 
(c) (1) The Assistant Secretary shall carry out a program to meet 
the needs of minority group children who are from an environment in 
which a dominant language is other than English and who, because of 
language barriers and cultural differences, do not have equality of 
educational opportunity. From the amount reserved pursuant to section 
704(b) (2) (A), the Assistant Secretary is authorized to make grants 
to, and contracts with— 
(A) private nonprofit agencies, institutions, and organizations 
to develop curricula, at the request of one or more educational 
agencies which are eligible for assistance under section 706, 
designed to meet the special educational needs of minority group 
children who are from environments in which a dominant lan-
guage is other than English, for the development of reading, writ-
ing, and speaking skills, in the English language and in the lan-
^' 
guage of their parents or grandparents, and to meet the educa-
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
361 
tional needs of such children and their classmates to understand 
the history and cultural background of the minority groups of 
which such children are members; 
(B) local educational agencies eligible for assistance under sec-
tion 706 for the purpose of engaging in such activities; or 
(C) local educational agencies which are eligible to receive 
assistance under section 706, for the purpose of carrying out activi-
ties authorized under section 707(a) of this title to implement 
curricula developed under clauses (A) and (B) or curricula other-
wise developed which the Assistant Secretary determines meets 
v
, 
the purposes stated in clause (A). 
In making grants and contracts under this paragraph, the Assistant 
Secretary shall assure that sufficient funds from the amount reserved 
pui-suant to section 704(b)(2)(A) remain available to provide for 
grants and contracts under clause (C) of this paragraph for imple-
mentation of such curricula as the Assistant Secretary determines 
meet the purposes stated in clause (A) of this paragraph. In making 
a grant or contract under clause (C) of this paragraph, the Assistant 
Secretary shall take whatever action is necessary to assure that the 
implementation plan includes provisions adequate to insure training of 
teachers and other ancillary educational personnel. 
(2) (A) In order to be eligible for a grant or contract under this 
Eligibility; pro-
,^ ' ;. 
' 
" 
^ 
gram committee. 
subsection— 
(i) a local educational agency must establish a program or 
project committee meeting the requirements of subparagraph (B), 
which will fully participate in the preparation of the application 
under this subsection and in the implementation of the program 
or project and join in submitting such application; and 
(ii) a private nonprofit agency, institution, or organization 
must (I) establish a program or project board of not less than 
ten members which meets the requirements of subparagi'aph (B) 
and which shall exercise policymaking authority with respect to 
the program or project and (II) have demonstrated to the Assist-
ant Secretary that it has the capacity to obtain the services of 
adequately trained and qualified staff. 
(B) A program or project committee or board, established pursuant 
to subparagraph (A) must be broadly representative of parents, school 
officials, teachers, and interested members of the community or com-
munities to be served, not less than half of the members of which shall 
be parents and not less than half of the members of which shall be 
members of the minority group the educational needs of which the 
program or project is intended to meet. 
(3) All programs or projects assisted under this subsection shall be 
specifically designed to complement any programs or projects carried 
out by the local educational agency under section 706. The Assistant 
Secretary shall insure that programs of Federal financial assistance 
related to the purposes of this subsection are coordinated and carried 
out in a manner consistent with the provisions of this subsection, to 
t he extent consistent with other law. 
METROPOLITAN AREA PROJECTS 
SEC. 709. (a) Sums reserved pursuant to section 704(b) (1) shall be 
available for the following purposes: 
(1) A program of grante to, and contracts with, local educational 
agencies which are eligible under section 706(a) (2) in order to assist 
them in establishing and maintaining integrated schools as defined in 
section 720(6). 
362 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Restriction. 
"Education 
park." 
(2) A program of any grant to groups of local educational agencies 
located in a Standard Metropolitan Statistical Area for the joint 
development of a plan to reduce and eliminate minority group isola-
tion, to the maximum extent possible, in the public elementary and 
secondary schools in the Standard Metropolitan Statistical Area, 
which shall, as a minimum, provide that by a date certain, but in no 
event later than July 1, 1983, the percentage of minority group chil-
dren enrolled in each school in the Standard Metropolitan Statisitical 
Area shall be at least 50 per centum of the percentage of minority 
group children enrolled in all the schools in the Standard Metropolitan 
Statistical Area. No grant may be made under this paragraph unless— 
(A) two-thirds or more of the local educational agencies in 
the Standard Metropolitan Statistical Ar-ea have approved the 
application, and 
(B) the number of students in the schools of the local educa-
tional agencies which have approved the application constitutes 
two-thirds or more of the number of students in the schools of all 
the local educational agencies in the Standard Metropolitan 
Statistical Area. 
(3) A program of grants to local educational agencies to pay all 
or part of the cost of planning and constructing integrated education 
parks. For the purpose of this paragraph, the term "education park'* 
means a school or cluster of such schools located on a common site, 
within a Standard Metropolitan Statistical Area, of sufficient size to 
achieve maximum economy of scale consistent with sound educational 
practice, providing secondary education, with an enrollment in which 
a substantial proportion of the children is from educationally advan-
taged backgrounds, and which is representative of the minority group 
and nonminority group children in attendance at the schools of the 
local educational agencies in the Standard Metropolitan Statistical 
Area, or, if the applicant is a single local educational agency, repre-
sentative of that of the local educational agency, and a faculty and 
administrative staff with substantial representation of minority group 
persons. 
(b) In making grants and contracts under this section, the Assistant 
Secretary shall insure that at least one grant shall be for the purposes 
of paragraph (2) of subsection (a). 
APPLICATIONS 
Public informa-
tion. 
Approval, con-
ditions. 
SEC. 710. (a) Any local educational agency desiring to r-eceive assist-
ance under this title for any fiscal year shall submit to the Assistant 
Secretary an application therefor for that fiscal year at such time, in 
such form, and containing such information as the Assistant Secretary 
shall require by regulation. Such application, together with all cor-
respondence and other written materials relating thereto, shall be 
made readily available to the public by the applicant and by the Assist-
ant Secretary. The Assistant Secretary may approve such an appli-
cation only if he determines that such application— 
(1) in the case of applications under section 706, sets forth a 
program under which, and such policies and procedures as will 
assure that, (A) the applicant will use the fvmds received under 
this title only for the activities set forth in section 707 and (B) 
in the case of an application under section 706(b), the appli-
cant will initiate or expand an innovative program specifically 
designed to meet the educational needs of children attending one 
or more minority group isolated schools; 
86 
STAT.] 
PUBLIC LAW 92-318-JUNE 23, 1972 
363 
(2) has been developed— 
(A) in open consultation with parents, teachers, and, where 
applicable, secondary school students, including public hear-
ings at which such persons have had a full opportunity to 
understand the program for which assistance is being sought 
and to offer recommendations thereon, and 
(B) except in the case of applications under section 708 (c), 
with the participation of a committee composed of parents of 
children participating in the program for which assistance is 
sought, teachers, and, where applicable, secondary school' 
students, of which at least half the members shall be such 
parents, and at least half shall be persons from minority 
groups; 
(8) sets forth such policies and procedures as will insure that 
the program for which assistance is sought will be operated in con-
sultation with, and with the involvement of, parents of the chil-
dren and representatives of the area to be served, including the 
committee established for the purposes of clause (2) (B) ; 
(4) sets forth such policies and procedures, and contains such 
information, as will insure that funds paid to the applicant under 
the application will be used solely to pay the additional cost to 
the applicant in carrying out the plan, program, and activity 
described in the application; 
(5) contains such assurances and other information as will 
insure that the program for which assistance is sought will be 
administered by the applicant, and that any funds received by 
the applicant, and any property derived therefrom, will remain 
under the administration and control of the applicant; 
(6) sets forth assurances that the applicant is not reasonably 
able to provide, out of non-Federal sources, the assistance for 
which the application is made ; 
(7) provides that the plan with respect to which such agency is 
seeking assistance (as specified in section 706(a) (1) (A) does not 
involve freedom of choice as a means of desegregation, unless the 
Assistant Secretary determines that freedom of choice has 
achieved, or will achieve, the complete elimination of a dual school 
system in the school district of such agency; 
(8) provides assurances that for each academic year for which 
assistance is made available to the applicant under this title such 
agencj^ has taken or is in the process of taking all practicable steps 
to avail itself of all assistance for which it is eligible under any 
program administered by the Commissioner; 
(9) provides assurances that such agency will carry out, and 
comply with, all provisions, terms, and conditions of any plan, 
program, or activity as described in section 706 or section 708(c) 
upon w'hich a determination of its eligibility for assistance under 
this title is based; 
(10) sets forth such policies and procedures, and contains such 
information, as will insure that funds made available to the appli-
cant (A) under this title will be so used (i) as to supplement and, 
to the extent practicable, increase the level of funds that would, in 
the absence of such funds, be made available from non-Federal 
sources for the purposes of the program for which assistance is 
sought, and for promoting the integration of the schools of the 
applicant, and for the education of children participating in such 
program, and (ii) in no case, as to supplant such funds from non-
Federal sources, and (B) under any other law of the United States 
will, in accordance wit.li standards established by regulation, be 
used in coordination with such programs to the extent consistent 
with such other law; 
Public hearings. 
Parental com-
mittee. 
Freedom of 
choice. 
Non-Federal 
funds, supplanta-
tion, prohibition. 
364 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Private schools. 
Reports. 
(11) in the case of an application for assistance under section 
706, provides that the program, project, or activity to be assisted 
will involve an additional expenditure per pupil to be served, 
determined in accordance with regulations prescribed by the 
Assistant Secretary, of sufficient magnitude to provide reasonable 
assurance that the desired funds under this title will not be dis-
persed in such a way as to undermine their effectiveness; 
(12) provides that (A) to the extent consistent with the number 
of minority group children in the area to be served who are 
enrolled in private nonprofit elementary and secondary schools 
which are operated in a manner free from discrimination on the 
basis of race, color, or national origin, and which do not serve as 
alternatives for children seeking to avoid attendance in desegre-
gated or integrated public schools, whose participation would 
assist in achieving the purpose of this title stated in section 702(b) 
provides assurance that such agency (after consultation with the 
appropriate private school officials) has made provision for their 
participation on an equitable basis, and (B) to the extent consist-
ent with the number of children, teachers, and other educational 
staff in the school district of such agency enrolled or employed 
in private nonprofit elementary and secondary schools whose par-
ticipation would assist in achieving the purpose of this title stated 
in section 702(b) or, in the case of an application under section 
708(c), would assist in meeting the needs described in that sub-
section, such agency (after consultation with the appropriate 
private school officials) has made provisions for their participa-
tion on an equitable basis; 
(13) provides that the applicant has not reduced its fiscal effort 
for the provision of free public education for children in attend-
ance at the schools of such agency for the fiscal year for which 
assistance is sought under this title to less than that of the second 
preceding fiscal year, and that the current expenditure per pupil 
which such agency makes from revenues derived from its local 
sources for the fiscal year for which assistance under this title will 
be made available to such agency is not less than such expendi-
ture per pupil which such agency made from such revenue 
for (A) the fiscal year preceding the fiscal year during which 
the implementation of a plan described in section 706(a) (1) (A) 
was commenced, or (B) the third fiscal year preceding the fiscal 
year for which such assistance will be made available under this 
title, whichever is later; 
(14) provides that the appropriate State educational agency 
has been given reasonable opportunity to offer recommendations 
to the applicant and to submit comments to the Assistant Secre-
*^9^5 
. 
.
.
.
. 
(15) sets forth effective procedures, including provisions for 
objective measurement of change in educational achievement and 
other change to be effected by programs conducted under this 
title, for the continuing evaluation of programs, projects, or 
activities under this title, including their effectiveness m achieving 
clearly stated program goals, their impact on related programs 
and upon the community served, and their structure and mecha-
nisms for the delivery of services, and including, where appro-
priate, comparisons with proper control groups composed of per-
sons who have not participated in such programs or projects; and 
(16) provides (A) that the applicant will make periodic reports 
at such time, in such form, and containing such information 
as the Assistant Secretary may require by regulation, which regu-
lation may require at least— 
Records, acces-
Committee com-
ments, hearing 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
365 
(i) in the case of reports relating to performance, that the 
reports be consistent with specific criteria related to the pro-
gram objectives, and 
(ii) that the reports include information relating to educa-
tional achievement of children in the schools of the applicant, 
and (B) that the applicant will keep such records and afford such 
Recor 
^ .4 
. 
^^ 
^ 
sibility 
access thereto as— 
(i) will be necessary to assure the correctness of such 
reports and to verify them, and 
(ii) will be necessary to assure the public adequate access to 
such reports and other written materials. 
(b) No application under this section may be approved which is 
not accompanied by the written comments of a committee established opportunity 
pursuant to clause (2) (B) of subsection (a). The Assistant Secretary 
shall not approve an application without first affording the committee 
an opportunity for an informal hearing if the committee requests such 
a hearing. 
(c) In approving applications submitted under this title (except 
for those submitted under sections 708 (b) and (c) and 711), the 
Assistant Secretary shall apply only the following criteria: 
(1) the need for assistance, taking into account such factors as— 
(A) the extent of minority group isolation (including the 
number of minority group isolated children and the relative 
concentration of such children) in the school district to be 
served as compared to other school districts in the State, 
(B) the financial need of such school district as compared 
to other school districts in the State, 
(C) the expense and difficulty of effectively carrying out 
a plan or activity described in section 706 or a program 
described in section 708(a) in such school district as com-
pared to other school districts in the State, and 
(D) the degree to which measurable deficiencies in the 
quality of pumic education afforded in such school district 
exceed those of other school districts within the State; 
(2) the degree to which the plan or activity described in sec-
tion 706(a), and the program or project to be assisted, or the 
program described in section 708(a) are likely to effect a decrease 
m minority group isolation in minority group isolated schools, 
or in the case of applications submitted under section 706 
(a)(l)(C)(iii), the degree to which the plan and the program 
or project, are likely to prevent minority group isolation from 
occurring or increasing (in the absence of assistance under this 
title); 
(3) the extent to which the plan or activity described in section 
706 constitutes a comprehensive districtwide approach to the 
elimination of minority groups isolation, to the maximum extent 
practicable, in the schools of such school district; 
(4) the degree to which the program, project, or activity to be 
assisted affords promise of achieving the purpose of this title 
stated in section 702(b); 
(5) that (except in the case of an application submitted under 
section 708(a)) the amount necessary to carrv out effectivelv the 
project or activity does not exceed the amount available for assist-
ance in the State under this title in relation to the other applica-
tions from the State pending before him; and 
(6) the degree to which the plan or activity described in section 
706 involves to the fullest extent practicable the total educational 
resources, both public and private, of the community to be served. 
(d) (1) The Assistant Secretary shall not give less favorable con-
366 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
sideration to the application of a local educational agency (including 
an agency currently classified as legally desegregated by the Secre-
tary) which has voluntarily adopted a plan qualified for assistance 
under this title (due only to the voluntary nature of the action) than 
to the application of a local educational agency which has been legally 
required to adopt such a plan. 
(2) The Assistant Secretary shall not finally disapprove in whole 
or in part any application for funds submitted by a local educational 
agency without first notifying the local educational agency of the 
specific reasons for his disapproval and without affording the agency 
an appropriate opportunity to modify its application. 
(e) The Assistant Secretary may, from time to time, set dates by 
which applications shall be filed. 
(f) In the case of an application by a combination of local educa-
tional agencies for jointly carrying out a program or project under this 
title, at least one such agency shall be a local educational agency 
described in section 706(a) or section 708 (a) or (c) and any one or 
more of such agencies joining in such application may be authorized 
to administer such program Or proj ect. 
(g) Xo State shall reduce the amount of State aid with resx)ect to 
the provision of free public education in any school district of any 
local educational agency within such State because of assistance made 
or to be made aCvailable to such agency under this title. 
EDUCATIONAL 
TELEVISION 
SEC. 711. (a) The sums reserved pursuant to section 704(b) (2) (B) 
for the purpose of carrying out tnis section shall be available for 
grants and contracts in accordance with subsection (b). 
(b) (1) The Assistant Secretai-y shall carry out a program of making 
grants to, or contracts with, not more than ten public or private non-
profit agencies, institutions, or organizations with the capability of 
providing expertise in the development of television programing, in 
sufficient number to assure diversity, to pav the cost of development 
and production of integrated children's television programs of cog-
nitive and effective educational value. 
(2) Television programs developed in whole or in part with assist-
ance provided under this title shall be made reasonably available for 
transmission, free of charge, and shall not be transmitted under com-
mercial sponsorship. 
(3) The Assistant Secretary may approve an application under 
this section only if he determines that the applicant— 
(A) will employ members of minority groups in responsible 
positions in development, production, and administrative staffs; 
(B) will use modem television techniques of research and pro-
duction; and 
(C) has adopted effective procedures for evaluating education 
and other change achieved by children viewing the program. 
PAYMENTS 
SEC. 712. (a) Upon his approval of an application for assistance 
under this title, the Assistant Secretary shall reserve from the appli-
cable apportionment (including any applicable reapportionment) 
available therefor the amount fixed for such application. 
(b) The Assistant Secretary shall pay to the applicant such reserved 
amount, in advance or by way of reimbursement, and in such install-
ments consistent with established practice, as he may determine. 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
367 
(c) (1) If a local educational agency in a State is prohibited by law 
waiver, 
from providing for the participation of children and staff enrolled 
or employed in private nonprofit elementary and secondary schools as 
required by j)aragraph (12) of section 710(a), the Assistant Secre-
tary may waive such requirement with respect to local educational 
agencies in such State and, upon the approval of an application from 
a local educational agency within such State, shall arrange for the 
provision of services to such children enrolled in, or teachers or other-
educational staff' of, any nonprofit private elementary or secondary 
school located within the school district of such agency if the participa-
tion of such children and staff would assist in achieving the purpose 
of this title stated in section 702(b) or in the case of an application 
under section 708(c) would assist in meeting the needs described in 
that subsection. The services to be provided through arrangements 
made by the Assistant Secretary under this paragraph shall be com-
parable to the services to be provided by such local educational agency 
* 
under such application. The Assistant Secretary shall pay the cost of 
such arrangements from such State's allotment or, in the case of an 
application under section 708 (c), from the funds reserved under section 
704(b)(2)(A), or in case of an application mider section 708(a), 
from the sums available to the Assistant Secretary under section 
704(b) (2) for the purpose of that subsection. 
(2) In determining the amount to be paid pursuant to paragraph 
(1), the Assistant Secretary shall take into account the number of 
children and teachers and other educational staff who, except for 
provisions of State law, might reasonably be expected to participate 
in the program carried out under this title by such local educational 
agency. 
(3) If the Assistant Secretary determines that a local educational 
agency has substantially failed to provide for the participation on 
an equitable basis of children and staff enrolled or employed in private 
nonprofit elementary -and secondary schools as required by paragraph 
(12) of section 710(a) he shall arrange for the provision of services 
to children enrolled in, or teachers or other educational staff' of, the 
nonprofit private elementary or secondary school or schools located 
within the school district of such local educational agency, which serv-
ices shall, to the maximum extent feasible, be identical with the serv-
ices which would have been provided such children or staff had the 
local educational agency carried out such assurance. The Assistant Sec-
retary shall pay the cost of such services from the grant to such local 
educational agency and shall have the authority for this purpose of 
recovering from such agency any funds paid to it under such grant. 
(d) After making a grant or contract under this title, the Assistant 
Secretary shall notify the appropriate State educational agency of the 
name of the approved applicant and of the amount approved. 
EVALUATIONS 
SEC. 713. The Assistant Secretary is authorized to reserve not in 
excess of 1 per centum of the sums appropriated under this title, and 
reserved pursuant to section 704 (b) (2), for any fiscal year for the pur-
poses of this section. From such reservation, the Assistant Secretary is 
authorized to make grants to, and contracts with. State e.ducational 
agencies, institutions of higher education and private organizations, 
institutions, and agencies, including committees established pursuant 
to section 710(a) (2) for the purpose of evaluating specific programs 
and projects assisted under this title. 
368 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
84 Stat. 803. 
Report to Presi-
dent and congres-
sional committees. 
Waiver. 
REPORTS 
SEC. 714, The Assistant Secretary shall make periodic detailed 
reports concerning his activities in connection with the program 
authorized by this title and the program carried out with appropria-
tions under the paragraph headed "Emergency School Assistance" in 
the Office of Education Appropriations Act, 1971 (Public Law 91-
380), and the effectiveness of programs and projects assisted under this 
title in achieving the purpose of this title stated in section 702 (b). Such 
reports shall contain such information as may be necessary to permit 
adequate evaluation of the program authorized by this title, and shall 
include application forms, regulations, program guides, and guidelines 
used in the administration of the program. The report shall be sub-
mitted to the President and to the Committee on Labor and Public 
Welfare of the Senate and the Committee on Education and Labor of 
the House of Representatives. The first report submitted pursuant to 
this section shall be submitted no later than ninety days after the enact-
ment of this title. Subsequent reports shall be submitted no less often 
than two times annually. 
J O I N T 
FUNDING 
SEC. 715. Pursuant to regulations prescribed by the President, where 
funds are advanced under this title, and by one or more other Federal 
agencies for any project or activity funded in whole or in part under 
this title, any one of such Federal agencies may be designated to act 
for all in administering the funds advanced. In such cases, any such 
agency may waive any technical grant or contract requirement (as 
defined by regulations) which is inconsistent with the similar require-
ments of the administering agency or which the administering agenc}^ 
does not impose. Nothing in this section shall be construed to author-
ize (1) the use of any funds appropriated under this title for anv pur-
pose not authorized herein, (2) a variance of any reservation or 
apportionment under section 704 or 705, or (3) waiver of any require-
ment set forth in sections 706 through 711. 
Establishment. 
Report to Con-
gress. 
Ante, p. 326. 
NATIONAL ADVISORY COUNCIL 
. 
SEC. 716. (a) There is hereby established a National Advisory Coun-
cil on Equality of Educational Opportunity, consisting of fifteen mem-
bers, at least one-half of whom shall be representative of minority 
groups, appointed by the President, which shall— 
(1) advise the Assistant Secretary with respect to the operation 
of the program authorized by this title, including the preparation 
of regulations and the development of criteria for the approval of 
applications; 
(2) review the operation of the program (A) with respect to its 
effectiveness in achieving its purpose as stated in section 702(b), 
and (B) with respect to the Assistant Secretary's conduct in the 
administration of the program; 
(3) meet not less than four times in the period during which the 
program is authorized, and submit through the Secretary, to the 
Congress at least two interim reports, which reports shall include 
a statement of its activities and of any recommendations it may 
have with respect to the operation of the program; and 
(4) not later than December 1, 1973, submit to the Congress 
a final report on the operation of the program. 
(b) The Assistant Secretary shall submit an estimate in the same 
manner provided under section 400(c) and part D of the General 
Education Provisions Act to the Congress for the appropriations neces-
sary for the Council created by subsection (a) to carry out its functions. 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
369 
GENERAL PROVISIONS 
Ante, p. 326. 
SEC. 717. (a) The provisions of parts C and D of the General Edu-
cation Provisions Act shall apply to the program of Federal assistance 
authorized under this title as if such program were an applicable 
program under such General Education Provisions Act, and the 
Assistant Secretary shall have the authority vested in the Commis-
sioner of Education by such parts with respect to such j)rogram. 
(b) Section 422 of such General Education Provisions Act is 
amended by inserting "the Emergency School Aid Act;" after "the 
^"'®' P- ^^'*-
International Education Act of 1966;". 
so sta^ ^loee. 
note. 
ATTORNEY FEES 
SEC. 718. Upon the entry of a final order by a court of the United 
States against a local educational agency, a State (or any agency 
thereof), or the United States (or any agency thereof), for failure to 
comply with any provision of this title or for discrimination on the 
basis of race, color, or national origin in violation of title VI of the 
Civil Eights Act of 1964, or the fourteenth amendment to the Con- 
^s sta^ ^
2
^
5
^
2
^
^ 
stitution of the United States as they pertain to elementary and 
use prec. title i. 
secondary education, the court, in its discretion, upon a finding that 
the proceedings were necessary to bring about compliance, may allow 
the prevailing party, other than the United States, a reasonable 
attorney's fee as part of the costs. 
NEIGHBORHOOD SCHOOLS 
SEC. 719. Nothing in this title shall be construed as requiring any 
local educational agency which assigns students to schools on the 
basis of geographic attendance areas drawn on a racially nondis-
criminatory basis to adopt any other method of student assignment. 
DEFINITIONS 
SEC. 720. Except as otherwise specified, the following definitions 
shall apply to the terms used in this title: 
(1) The term "Assistant Secretary" means the Assistant Secretary 
of Health, Education, and Welfare for Education. 
(2) The term "current expenditure per pupil" for a local educa-
tional agency means (1) the expenditures for free public education, 
including expenditures for administration, instruction, attendance 
and health services, pupil transportation services, operation and main-
tenance of plant, fixed charges, and net expenditures to cover deficits 
for food services and student body activities, but not including expen-
ditures for community services, capital outlay and debt service, or any 
expenditure made from funds granted under such Federal program 
of assistance as the Secretary may prescribe, divided by (2) the num-
ber of children in average daily attendance to whom such agency 
provided free public education during the year for which the computa-
tion is made. 
(.3) The term "elementary school" means a day or residential school 
which provides elementary education, as determined under State law. 
(4) The term "equipment" includes machinery, utilities and built-in 
equipment and any necessary enclosures or structures to house them, 
and includes all other items necessary for the provision of educational 
services, such as instructional equipment and necessary furniture, 
printed, published, and audiovisual instructional materials, and other 
related material. 
370 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
(5) The term "institution of higher education" means an educa-
tional institution in any State which— 
(A) admits as regular students only individuals having a cer-
tificate of graduation from a high school, or the recognized equiva-
lent of such a certificate; 
(B) is legally authorized within such State to provide a 
program of education beyond high school; 
(C) provides an educational program for which it awards a 
bachelor's degree; or provides not less than a two-year program 
which is acceptable for full credit toward such a degree, or offers a 
two-year program in engineering, mathematics, or the physical or 
biological sciences which is designed to prepare the student to work 
as a technician and at a semiprofessional level in engineering, 
scientific, or other technological fields which require the under-
standing and application of basic engineering, scientific, or mathe-
matical principles or knowledge; 
(D) is a public or other nonprofit institution; and 
(E) is accredited by a nationally recognized accrediting agency 
or association listed by the Commissioner for the purposes of this 
paragraph. 
(6) For the purpose of section 706 (a) (2) and section 709 (a)(1), the 
term "integrated school" means a school with an enrollment in which a 
substantial proportion of the children is from educationally advan-
taged backgrounds, in which the proportion of minority group children 
is at least 50 per centum of the proportion of minority group children 
enrolled in all schools of the local educational agencies within the 
Standard Metropolitan Statistical Area, and which has a faculty and 
administrative staff with substantial representation of minority group 
persons. 
(7) For the purpose of section 706(a)(3), the term "integrated 
school" means a school with (i) an enrollment in which a substantial 
proportion of the children is from educationally advantaged back-
grounds, and in which the Assistant Secretary determines that the 
number of nonminority group children constitutes that proportion 
of the enrollment which will achieve stability, in no event more than 65 
per centum thereof, and (ii) a faculty which is representative of the 
minority group and nonminority group population of the larger 
community in which it is located, or, whenever the Assistant Secretary 
determines that the local educational agency concerned is attempting 
to increase the proportions of minority group teachers, supervisors, 
and administrators in its employ^ a faculty which is representative 
of the minority group and nonminority group faculty employed by 
the local educational agency. 
(8) The term "local educational agency" means a public board of 
education or other public authority legally constituted within a State 
for either administrative control or direction of, public elementary or 
secondary schools in a city, county, township, school district, or other 
political subdivision of a State, or a federally recognized Indian reser-
vation, or such combination of school districts, or counties as are 
recognized in a State as an administrative agency for its public ele-
mentary or secondary schools, or a combination of local educational 
agencies; and includes any other public institution or agency having 
administrative control and direction of a public elementary or sec-
ondary school and where responsibility for the control and direction 
of the activities in such schools which are to be assisted under this title 
is vested in an agency subordinate to such a board or other authority, 
the Assistant Secretary may consider such subordinate agency as a 
local educational agency for purpose of this title. 
86 STAT.] 
PUBLIC LAW 92-318-JUNE 23, 1972 
371 
(9) (A) The term "minority group" refers to (i) persons who are 
Negro, American Indian, Spanish-sumamed American, Portuguese, 
Oriental, Alaskan natives, and Hawaiian natives and (ii) (except for 
the purposes of section 705), as determined by the Assistant Secretary, 
persons who are from environments in which a dominant language is 
other than English and who, as a result of language barriers and cul-
tural differences, do not have an equal educational opportunity, and 
(B) the term "Spanish-surnamed American" includes persons of 
Mexican, Puerto Rican, Cuban, or Spanish origin or ancestry. 
(10) The terms "minority group isolated school" and "minority 
group isolation" in reference to a school mean a school and condition, 
respectively, in which minority group children constitute more than 
50 per centum of the enrollment of a school. 
(11) The term "nonprofit" as applied to a school, agency, organiza-
tion, or institution means a school, agency, organization, or institution 
owned and operated by one or more nonprofit corporations or associa-
tions no part of the net earnings of which inures, or may lawfully 
inure, to the benefit of any private shareholder or individual. 
(12) The term "secondary school" means a day or residential school 
which provides secondary education, as determined under State law, 
except that it does not include any education provided beyond grade 12. 
(13) The term "Standard Metropolitan Statistical Area" means the 
area in and around a city of fifty thousand inhabitants or more as 
defined by the Office of Management and Budget. 
(14) The term "State" means one of the fifty States or the District 
of Columbia, and for purposes of section 708(a), Puerto Rico, Guam, 
American Samoa, the Virgin Islands, and the Trust Territory of the 
Pacific Islands shall be deemed to be States. 
(15) The term "State educational agency" means the State board of 
education or other agency or officer primarily responsible for the State 
supervision of public elementary and secondary schools, or, if there 
is no such officer or agency, an officer or agency designated by the 
Governor or by State law for this purpose. 
TITLE VIII—GENERAL PROVISIONS RELATING TO T H E 
ASSIGNMENT OR TRANSPORTATION OF STUDENTS 
PROHIBITION' AGAINST ASSIGNMENT OR TRANSPORTATION OF STUDENTS TO 
OVERCOME RACIAL IMBALANCE 
SEC. 801. No provision of this Act shall be construed to require the 
assignment or transportation of students or teachers in order to over- 
w. 
come racial imbalance. 
PROHIBITION AGAINST USE OF APPROPRIATED FUNDS FOR BUSING 
SEC. 802(a). No funds appropriated for the purpose of carrying out 
any applicable program may be used for the transportation of students 
or teachers (or for the purchase of equipment for such transportation) 
in order to overcome racial imbalance in any school or school system, or 
for the transportation of students or teachers (or for the purchase of 
equipment for such transportation) in order to carry out a plan of 
racial desegregation of any school or school system, except on the 
express written voluntary request of appropriate local school officials. 
No such funds shall be made available for transportation when the time 
or distance of travel is so great as to risk the health of the children or 
significantly impinge on the educational process of such children, or 
where the educational opportunities available at the school to which it 
is proposed that any such student be transported will be substantially 
372 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
inferior to those opportunities offered at the school to which such stu-
dent would otherwise be assigned under a nondiscriminatory system of 
school assignments based on geographic zones established without dis-
crimination on account of race, religion, color, or national origin. 
(b) No officer, agent, or employee of the Department of Health, 
Education, and Welfare (including the Office of Education), the 
Department of Justice, or any other Federal agency shall, by rule, 
regulation, order, guideline, or otherwise (1) urge, persuade, induce, 
or require any local education agency, or any private nonprofit agency, 
institution, or organization to use any funds derived from any State 
or local sources for any purpose, unless constitutionally reo[uired, foi-
which Federal funds appropriated to carry out any applicable pro-
gram may not be used, as provided in this section, or (2) condition 
the receipt of Federal funds under any Federal program upon any 
action by any State or local public officer or employee which would 
be prohibited by clause (1) on the part of a Federal officer or employee. 
No officer, agent, or employee of the Department of Health, Education, 
and Welfare (including the Office of Education) or any other Federal 
agency shall urge, persuade, induce, or require any local education 
agency to undertake transportation of any student where the time or 
distance of travel is so great as to risk th^ health of the child or sig-
nificantly impinge on his or her educational process; or where the 
educational opportunities available at the school to which it is proposed 
that such student be transported will be substantially inferior to those 
offered at the school to which such student would otherwise be 
assigned under a nondiscriminatory system of school assignments based 
on geographic zones established without discrimination on account of 
race, religion, color, or national origin. 
(c) An applicable program means a program to which the General 
Education Provisions Act applies. 
Ante, p. 326. 
PROVISION RELATING TO COURT APPEALS 
SEC. 803. Notwithstanding any other law or provision of law, in 
the case of any order on the part of any United States district court 
which requires the transfer or transportation of any student or students 
from any school attendance area prescribed by competent State or 
local authority for the purposes of achieving a balance among students 
with respect to race, sex, religion, or socioeconomic status, the effective-
ness of such order shall be postponed until all appeals in connection 
with such order have been exlhausted or, in the event no appeals are 
Expiration date, taken, uutil the time for such appeals has expired. This section shall 
expire at midnight on January 1, 1974. 
^ . 
,, 
PROVISION AUTHORIZING INTERVENTION I N COURT ORDERS 
SEC. 804. A parent or guardian of a child, or parents or guardians 
of children similarly situated, transported to a public school in accord-
ance with a court order, may seek to reopen or intervene in the further 
implementation of such court order, currently in effect, if the time or 
distance of travel is so great as to risk the health of the student or 
significantly impinge on his or her educational process. 
PROVISION R E Q U I R I N G THAT RULES OF EVIDENCE BE UNIFORM 
SEC. 805. The rules of evidence required to prove that State or local 
authorities are practicing racial discrimination in assigning students 
to public schools shall be uniform throughout the United States. 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
373 
APPLICATION OF PROVISO O r SECTION 4 0 7 ( a ) OF T H E CIVIL RIGHTS ACT OF 
1 9 6 4 TO T H E ENTIRE UNITED 
STATES 
SEC. 806. The proviso of section 407(a) of the Civil Eights Act of 
1964 providing in substance that no court or official of the United 
States shall be empowered to issue any order seeking to achieve a racial 
balance in any school by requiring the transportation of pupils or stu-
dents from one school to another or one school district to another in 
order to achieve such racial balance, or otherwise enlarge the existing 
power of the court to insure compliance with constitutional standards 
shall apply to all public school pupils and to every public school sys-
tem, public school and public school board, as defined by title IV, 
under all circumstances and conditions and at all times in every State, 
district, territory, Commonwealth, or possession of the United States 
regardless of whether the residence of such public school pupils or the 
principal offices of such public school system, public school or public 
school board is situated in the northern, eastern, western, or southern 
part of the United States. 
TITLE IX—PKOHIBITION OF S E X DISCRIMINATION 
78 Stat. 248. 
42 u s e 2000c-€., 
42 u s e 2000c. 
SEX DISCRIMINATION 
PROHIBITED 
SEC. 901. (a) No person in the United States shall, on the basis of 
sex, be excluded from participation in, be denied the benefits of, or be 
subjected to discrimination under any education program or activity 
receiving Federal financial assistance, except that: 
(1) in regard to admissions to educational institutions, this 
section shall apply only to institutions of vocational education, 
professional education, and graduate higher education, and to 
public institutions of undergraduate higher education; 
(2) in regard to admissions to educational institutions, this 
section shall not apply (A) for one year from the date of enact-
ment of this Act, nor for six years after such date in the case of an 
educational institution which has begun the process of changing 
from being an institution which admits only students of one sex 
to being an institution which admits students of both sexes, but 
only if it is carrying out a plan for such a change which is 
approved by the Commissioner of Education or (B) for seven 
years from the date an educational institution begins the process of 
changing from being an institution which admits only students 
of only one sex to being an institution which admits students of 
both sexes, but only if it is carrying out a plan for such a change 
which is approved by the Commissioner of Education, whichever 
is the later; 
(3) this section shall not apply to an educational institution 
which is controlled by a religious organization if the application 
of this subsection would not be consistent with the religious tenets 
of such organization; 
(4) this section shall not apply to an educational institution 
whose primary purpose is the training of individuals for the mili-
tary services of the United States, or the merchant marine; and 
(5) in regard to admissions this section shall not apply to any 
public institution of undergraduate higher education which is an 
institution that traditionally and continually from its establish-
ment has had a policy of admitting only students of one sex. 
(b) Nothing contained in Subsection (a) of this section shall be 
interpreted to require any educational institution to grant preferential 
or disparate treatment to the members of one sex on account "of an 
Exceptions. 
374 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
imbalance wliicli may exist with respect to the total number or percent-
age of persons of that sex participating in or receiving the benefits 
of any federally supported program or activity, in comparison with 
the total number or percentage of persons of that sex in any commu-
nity, State, section, or other area: Provided^ That thife subsection shall 
not be construed to prevent the consideration in any hearing or pro-
ceeding under this title of statistical evidence tending to show that 
such an imbalance exists with respect to the participation in, or receipt 
of the benefits of, any such program or activity by the members of 
one sex. 
(c) For purposes of this title an educational institution means any 
public or private j)reschool, elementary, or secondary school, or any 
institution of vocational, professional, or higher education, except that 
in the case of an educational institution composed of more than one 
school, college, or department which are administratively separate 
units, such term means each such school, college, or department. 
Report to con-
gressional com-
mittees. 
FEDERAL ADMINISTRATIVE ENFORCEMENT 
SEC. 902. Each Federal department and agency which is empowered 
to extend Federal financial assistance to any education program or 
activity, by way of grant, loan, or contract other than a contract of 
insurance or^uaranty, is authorized and directed to effectuate the 
provisions of section 901 with respect to such program or activity by 
issuing rules, regulations, or orders of general applicability which 
shall be consistent with achievement of the objectives of the statute 
authorizing the financial assistance in connection with which the 
action is taten. No such rule, regulation, or order shall become effective 
unless and until approved by the President. Compliance with any 
requirement adopted pursuant to this section may be effected (1) by 
the termination of or refusal to grant or to continue assistance under 
such program or activity to any recipient as to whom there has been 
an express finding on the record, after opportunity for hearing, of a 
failure to comply with such requirement, but such termination or 
refusal shall be limited to the particular political entity, or part 
thereof, or other recipient as to whom such a finding has been made, 
and shall be limited in its effect to the particular program, or part 
thereof, in which such noncompliance has been so found, or (2) by 
any other means authorized by law: Provided^ however^ That no such 
action shall be taken until the department or agency concerned has 
advised the appropriate person or persons of the failure to comply 
with the requirement and has determined that compliance cannot be 
secured by voluntary means. In the case of any action terminating, or 
refusing to grant or continue, assistance because of failure to comply 
with a requirement imposed pursuant to this section, the head of the 
Federal department or agency shall file with the committees of the 
House and Senate having legislative jurisdiction over the propTam 
or activity involved a full written report of the circumstances and the 
grounds for such action. No such action shall become effective until 
thirty days have elapsed after the filing of such report. 
JUDICIAL REVIEW 
SEC. 903. Any department or agency action taken pursuant to 
section 1002 shall be subject to such judicial review as may otherwise 
be provided by law for similar action taken by such department or 
agency on other grounds. In the case of action, not otherwise subject 
to judicial review, terminating or refusing to grant or to continue 
financial assistance upon a finding of failure to comply with any 
requirement imposed pursuant to section 902, any person aggrieved 
(including any State or political subdivision thereof and any agency 
of either) may obtain judicial review of such action in accordance 
78 Stat. 
266. 
75 Stat. 
246 
71; 
80 Stat. 833. 
77 Stat. 
29 use 
56. 
206. 
86 STAT. ] 
PUBLIC L
A
W 92-318-JUNE 23, 1972 
375 
with chapter 7 of title 5, United States Code, and such action shall 
f°usc*7o\^.^' 
not be deemed committed to unreviewable agency discretion within 
the meaning of section 701 of that title. 
PROHIBITION AGAINST DISCRIMINATION AGAINST THE BLIND 
SEC. 904. No person in. the United States shall, on the ground of 
blindness or severely impaired vision, be denied admission in any 
course of study by a recipient of Federal financial assistance for any 
education program or activity, but nothing herein shall be construed 
to require any such institution to provide any special services to such 
person because of his blindness or visual impairment. 
ETFECT ON OTHER LAWS 
SEC. 905. Nothing in this title shall add to or detract from any 
existing authority with respect to any program or activity under 
which Federal financial assistance is extended by way of a contract of 
insurance or guaranty. 
AMENDMENTS TO OTHER LAWS 
SEC. 906. (a) Sections 401(b), 407(a) (2), 410, and 902 of the Civil 
Rights Act of 1964 (42 U.S.C. 2000c(b), 2000c-6(a) (2), 2000c-9, and 
2000h-2) are each amended by inserting the word "sex" after the word 
"religion". 
(b) (1) Section 13(a) of the Fair Labor Standards Act of 1938 (29 
U.S.C. 213(a)) is amended by inserting after the words "the provi-
sions of section 6" the following: "(except section 6(d) in the case of 
paragraph (1) of this subsection)". 
(2) Paragraph (1) of subsection 3(r) of such Act (29 U.S.C. 203 
(r) (1)) is amended by deleting "an elementary or secondary school" 
and inserting in lieu thereof ''a preschool, elementary or secondary 
school". 
(3) Section 3 (s) (4) of such Act (29 U.S.C. 203(s) (4)) is amended 
by deleting "an elementary or secondary school" and inserting in 
lieu thereof "a preschool, elementary or secondary school". 
INTERPRETATION WITH RESPECT TO LIVING FACILITIES 
SEC. 907. Notwithstanding anything to the contrary contained in 
this title, nothing contained herein shall be construed to prohibit any 
educational institution receiving funds under this Act, from main-
taining separate living facilities for the different sexes. 
TITLE X—ASSISTANCE TO INSTITUTIONS OF HIGHER 
EDUCATION 
ASSISTANCE TO INSTITUTIONS OF HIGHER EDUCATION 
•Sec. 1001. (a) Part A of Title IV of the Higher Education Act of 
1965 is amended by inserting at the end thereof the following new ^"^^' P- ^47. 
subpart: 
"Subpart 5—^Assistance to Institutions of Higher Education 
" P A Y M E N T S TO INSTITUTIONS OF HIGHER EDUCATION 
"SEC. 419. (a) Each institution of higher education shall be entitled 
for each fiscal year to a cost-of-education payment in accordance with 
the provisions of this section. 
82-081 O - 73 - 27 
80 Stat. 831. 
Ante, p. 248. 
376 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
• . •;'; 
"(b) (1) The amount of the cost-of-education payment to which an 
institution shall be entitled under this section for a fiscal year shall be, 
subject to subsection (d), the amount determined under paragraph 
(2) (A) plus the amount determined under paragraph (2) (B). 
"(2)(A)(i) The Commissioner shall determine the amount to which 
an institution is entitled under this subparagraph on the basis of the 
total number of undergraduate students who are in attendance at the 
institution and the number of students who are also recipients of basic 
grants under subpart 1, in accordance with the following table: 
"If the total number of students in 
attendance is— 
Tlie amount of the grant is^— 
Not over 1,000 
$500 for each recipient 
Over 1,000 but not over 2,500 
$500 for each of 100 recipients; plus $400 
for each recipient in excess of 100. 
Over 2,500 but not over 5,000 
$500 for each of 100 recipients; plus $400 
for each of 150 recipients in excess of 100; 
plus $300 for each recipient in excess of 
250. 
Over 5,000 but not over 10,000 
$500 for each 100 recipients; plus $400 
for each of 150 recipients in excess of 100; 
plus $300 for each of 250 recipients in 
excess of 250; plus $200 for each recipient 
in Excess of 500. 
Over 10,000 
$500 for each of the 100 recipients; plus 
$400 for each of 150 recipients in excess of 
100; plus $300 for each of 250 recipients 
in excess of 250; plus $200 for each of 500 
;,.,.., 
., 
, . _ : 
recipients in excess of 500; plus $100 for 
each recipient in excess of 1,000. 
" (ii) In any case where a recipient of a basic grant under subpart 1 
attends an institution receiving a cost-of-education payment under 
this subpart on less than a full-time basis, the amount determined under 
this subparagraph with respect to that student shall be reduced in 
proportion to the degree to which that student is not attending on a 
full-time basis. 
" (iii) If during any period of any fiscal year the funds available for 
miaking payments on the basis of entitlements established under this 
subparagraph are insufficient to satisfy fully all such entitlements, the 
amount paid with respect to each such entitlement shall be ratably 
reduced. When additional funds become available for such purpose, 
the amount of payment from such additional funds shall be in propor-
tion to the degree to which each such entitlement is unsatisfied by the 
payments made under the first sentence of this division. 
"(B) (i) The Commissioner shall determine with respect to each 
institution an amount equal to the appropriate per centum (specified 
on the table below) of the aggregate of— 
"(I) supplemental educational opportunity grants under sub-
part 2; 
Ante, p. 271. 
«(jj) 'work-study payments under part C; and 
Ante, p. 273. 
" (HI) loaus to students under part E ; 
made for such year to students who are in attendance at such institu-
tion. The Commissioner shall determine such amounts on the basis of 
percentages of such aggregate, and the number of students in attend-
ance at institutions during the most recent academic year ending prior 
to such fiscal year, in accordance with the following table: 
"If the number of students in attendance at the insti- 
The percentage of such aggregate 
tution is— 
shall be— 
Not over 1,000 
50 per centum. 
Over 1,000 but not over 3,000 
4G per centum. 
Over 3,000 but not over 10,000 
42 per centum. 
Over 10,000 
38 per centum. 
Ante, p. 251. 
;|..f ,q .jii'-.n-
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
377 
" (ii) If during any period of any fiscal year the funds available for 
making payments on the basis of entitlements established under this 
subparagraph are insufficient to satisfy fully all such entitlements, the 
amount paid with respect to each such entitlement shall be ratably 
reduced. When additional funds become available for such purpose, 
the amount of payment from such additional funds shall be in propor-
tion to the degree to which each such entitlement is unsatisfied by the 
payments made under the first sentence of this division. 
" (3) (A) In determining the number of students in attendance at in-
stitutions of higher education under this subsection, the Commissioner 
shall compute the full-time equivalent of part-time students. 
"(B) The Commissioner shall make a separate determination of 
the number of students in attendance at an institution of higher edu-
cation and the number of recipients of basic grants at any such insti-
tution at each branch or separate campus of that institution located 
in a different community from the principal campus of that institution 
pursuant to criteria established by him. 
"(c) (1) An institution of higner education may receive a cost-of-
education payment in accordance with this section only upon appli- 
, ^ ,,. j , 
cation therefor. An application under this section shall be submitted 
at such time or times, m such manner, and containing such informa-
tion as the Commissioner determines necessary to carry out his func-
tions under this title, and shall— 
" (A) set forth such policies, assurances, and procedures as will 
insure that— 
"(i) the funds received by the institution under this sec-
tion will be used solely to defray instructional expenses in 
academically related programs of the applicant; 
"(ii) the funds received by the institution under this sec-
tion will not be used for a school or department of divinity 
or for any religious worship or sectarian activity; 
"(iii) the applicant will expend, during the academic year 
for which a payment is sought, for all academically related 
programs of the institution, an amount equal to at least the 
average amount so expended during the three years preceding 
the year for which the grant is sought; and 
"(iv) the applicant will submit to the Commissioner such 
reports as the Commissioner may require by regulation; and 
"(B) contain such other statement of policies, assurances, and 
procedures as the Commissioner may require by regulation in order 
to protect the financial interests of the United States. 
"(d)(1) The Commissioner shall pay to each institution of higher 
education for each fiscal year the amount to which it is entitled under 
this section. 
" (2) Of the total sums appropriated to make payments on the basis 
of entitlements established under this section and on the basis of enti-
tlements established under part F of title IX— 
P°^^' P- ^SO. 
" (A) 45 per centum shall be available for making payments on 
the basis of entitlements established under paragraph (2) (A) of 
subsection (a); 
"(B) 45 per centum shall be available for making payments on 
the basis of entitlements established under paragraph (2) (B) of 
subsection (a); and 
"(C) 10 per centum shall be available for making payments on 
the basis of entitlements established under part F of title IX. 
"(3) No payments on the basis of entitlements established under 
paragraph (2) (A) of subsection (a) may be made during any fiscal 
year for which the appropriations for making grants under subpart 1 
does not equal at least 50 per centum of the appropriation necessary 
378 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
for satisfying the total of all entitlements established under such sub-
part. In no event shall, during any fiscal year, the aggregate of the 
payments to which this paragraph applies exceed that percentage 
of the total entitlements established under such paragraph (2) (A) 
which equals the percentage of the total entitlements established under 
subpart 1 which are satisfied by appropriations for such purpose for 
that fiscal year. 
"VETERANS' COST-OF-INSTRUCTION PAYMENTS TO INSTITUTIONS OF 
HIGHER EDUCATION 
"SEC. 420. (a) (1) During the period beginning July 1, 1972 and 
ending June 30, 1975, each institution of higher education shall be 
entitled to a payment under, and in accordance with, this section dur-
ing any fiscal year, if the number of persons who are veterans receiving 
vocational rehabilitation under chapter 31 of title 38, United States 
38 use' 1501.' 
Code, or veterans receiving educational assistance under chapter 34 of 
80 Stat. 12; 
such title, and who are in attendance as undergraduate students at such 
^'^sl^uscVesi. 
institution during any academic year, equals at least 110 per centum 
of the number of such recipients who were in attendance at such insti-
tution during the preceding academic year. 
"(2) During the period specified in paragraph (1), each institution 
which has qualified for a payment under this section for any year shall 
be entitled during the succeeding year, notwithstanding paragraph 
(1), to a payment under and in accordance with this section, if the 
number of persons referred to in such paragraph (1) equals at least 
the number of such persons who were in attendance at such institution 
during the preceding academic year. Each institution which is entitled 
to a payment for any fiscal year by reason of the preceding sentence 
shall be deemed, for the purposes of any such year succeeding the year 
for which it is so entitled, to have been entitled to a payment under 
paragraph (1) during the preceding fiscal year. 
"(b) (1) The amount of the payment to which any institution shall 
be entitled under this section for any fiscal year shall be— 
"(A) $300 for each person who is a veteran receiving voca-
tional rehabilitation under chapter 31 of title 38, United States 
Code, or a veteran receiving educational assistance under chapter 
34 of such title 38, and who is in attendance at such institution as 
an undergraduate student during such year; and 
"(B) in addition, $150, except in the case of persons on behalf 
of whom the institution has received a payment in excess of $150 
under section 419, for each person who has been the recipient of 
educational assistance under subchapter V or subchapter VI of 
chapter 34 of such title 38, and who is in attendance at such insti-
tution as an undergraduate student during such year. 
"(2) In any case where a person on behalf of whom a payment is 
, vu ,.! .-, 
made under this section attends an institution on less than a full-time 
basis, the amount of the payment on behalf of that person shall be. 
reduced in proportion to the degree to which that person is not attend-
ing on a full-time basis. 
"(c)(1) An institution of higher education shall be eligible to receive 
the payment to which it is entitled under this section only if it makes 
application therefor to the Commissioner. An application under this 
section shall be submitted at such time or times, in such manner, in 
such form, and containing such information as the Commissioner 
determines necessary to carry out his functions under this title, and 
shall— 
" (A) meet the requirements set forth in clauses (A) and (B) of 
section 419(c)(1); 
86 STAT. ] 
PUBLIC LAW 92-318-JUNE 23, 1972 
379 
"(B) set forth such plans, policies, assurances, and procedures 
as will insure that the applicant will make an adequate eifort— 
" (i) to maintain a full-time office of veterans' affairs which 
has responsibility for veterans' outreach, recruitment, and 
special education programs, including the provision of edu-
cational, vocational, and pei*sonal counseling for veterans, 
"(ii) to carry out programs designed to prepare educa-
tionally disadvantaged veterans for postsecondary education 
(I) under subchapter V of chapter 34 of title 38, United 
States Code, and (II) in the case of any institution located 
^^ ?^*|*- ^^• 
near a military installation, under subchapter VI of such 
chapter 34, 
as use i695. 
"(iii) to carry out active outreach, recruiting, and counsel-
ing activities through the use of funds availaole under fed-
erally assisted work-study programs, and 
"(iv) to carry out an active tutorial assistance program 
(including dissemination of information regarding such pro-
gram) in order to make maximum use of the benefits avail-
able under section 1692 of such title 38, 
except that an institution with less than 2,500 students in attendance 
(I) which the Commissioner determines, in accordance with regula-
tions jointly prescribed by the Commissioner and the Administrator 
of Veterans' Affairs (hereinafter referred to as the 'Administrator'), 
cannot feasibly itself carry out any or all of the programs set forth in 
subclauses (i) through (iv) of this clause, may carry out such program 
oi' programs through a consortium agreement with one or more other 
institutions of higher education, and (II) shall be required to carry 
out such programs only to the extent that the Commissioner deter-
mines, in accordance with regulations jointly prescribed by the Com-
missioner and the Administrator, is appropriate in terms of the number 
of veterans in attendance at such institution. The adequacy of efforts 
to meet the requirements of clause (B) in the preceding sentence shall 
be determined by the Commissioner, based upon the recommendation 
of the Administrator, in accordance with criteria established in regu-
lations jointly prescribed by the Commissioner and the Administrator. 
"(2) The Commissioner shall not approve an application under this 
subsection unless he determines that the applicant will implement the 
requirements of clause (B) of paragraph (1) within the first academic 
. 
, 
year during which it receives a payment under this section. 
"(d) The Commissioner shall pay to each institution of higher edu-
cation which has had an application approved under subsection (c) the 
amount to which it is entitled under this section. Payments under this 
subsection shall be made in not less than three installments during each 
academic year and shall be based on the actual number of persons on 
behalf of whom such payments are made in attendance at the institution 
at the time of the payment. 
"(e) No less than 50 per centum of the amount of payments received 
by any institution under subsection (d) of this section in each academic 
year shall be applied by such institution to implement the requirement 
of subclause (i) of clause (B) of paragraph (1) of subsection (c) of 
this section, and, to the extent that such 50 per centum amount is not 
exhausted, the requirements of subclauses (ii), (iii), and (iv) of such 
clause, except that the Commissioner may, in accordance with criteria 
waiver, 
established in regulations jointly prescribed by the Commissioner with 
the Administrator, waive the requirement of this subsection to the 
extent that he finds that such institution is adequately carrying out all 
such requirements without the necessity for such application of such 
amount of the payments received under this subsection.". 
380 
Ante, p. 304. 
PUBLIC LAW 92-318-JUNE 23, 1972 
[86 STAT. 
Waiver. 
Prohibition. 
Report to Con-
gress. 
(b) Title I X of the Higher Education Act of 1965 is amended by 
adding at the end thereof the following new part: 
"PART F—GENERAL ASSISTANCE TO GRADUATE SCHOOLS 
(( 
GENERAL ASSISTANCE GRANTS 
"SEC. 981. (a) Each institution of higher education shall, during the 
period beginning July 1, 1972 and ending June 30, 1975, be entitled 
to a general assistance grant (hereinafter m this section referred to as 
'grant') in accordance with the provisions of this section. 
"(b) The amount of a grant to which an institution shall be entitled 
for any fiscal year shall be $200 multiplied by the number of students 
in full-time enrollment (including the full-time equivalent of the part-
time enrollment for credit) at such institution who are pursuing a pro-
gram of post-baccalaureate study. 
"(c) In order to be eligible for the grant to which it is entitled, an 
institution shall make application therefor to the Commissioner. Such 
application shall be submitted at such time or times and in such manner 
as the Commissioner shall prescribe by regulation. Such application 
shall be approved if the Commissioner determines that it— 
"(1) describes general educational ^oals and specific objectives 
of the graduate programs of the institution, and the amount of 
institutional income needed to meet such goals and objectives; 
"(2) provides satisfactory assurance that— 
" (A) the proceeds of the grant will be used for programs 
of the applicant consistent with such goals and objectives, 
"(B) current operating support from non-Federal sources 
for educationally related graduate programs of the applicant 
has not been reduced in anticipation of funds to be received 
under this section, and 
"(C) the applicant will make such reports as the Commis-
sioner may require including a summary report describing 
how the grant was expended and an evaluation of its effective-
ness in achieving such goals and objectives; and 
" (3) contains such provisions as the Commissioner may require 
by regulation in order to protect the financial interests of the 
United States. 
The Commissioner may waiv^ the requirement set forth in clause (2) 
(B) in the preceding sentence for any fiscal year if he determines, in 
accordance with criteria prescribed by regulation, that such waiver 
would promote the purposes of this section. 
"(d) (1) The Commissioner shall pay to each applicant the amount 
for which it is eligible under this section. 
" (2) If, during any period, the funds available for making payments 
pursuant to paragraph (1) are insufficient to satisfy fully the amounts 
for which all institutions are eligible imder this section, the amounts 
for which all applicants are eligible shall be ratably reduced. 
"(e) None of the proceeds from a grant may be used to support a 
school or department of divinity or for religious worship or sectarian 
instruction. 
"(f) The Commissioner shall report to Congress not later than 120 
days after the end of each fiscal year regarding the effectiveness of 
assistance under this section in achieving the goals and objectives of 
institutions of higher education and in encouraging diversity and 
autonomy among such institutions of higher education. The Commis-
sioner, in such report, shall include sueh recommendations as may be 
appropriate regarding the continuation, modification, or extension of 
assistance under this section.". 
86 STAT. ] 
PUBLIC LAW 92-319-JUNE 23, 1972 
381 
(c)(1) Section 401(a) of the Higher Education Act of 1965 is 
amended (A) by striking out the word "and" at the end of paragraph 
(3) of such section; (B) by strikinff out the period at the end of para-
graph (4) and inserting in lieu mereof a semicolon and the word 
''and"; and (C) by adding at the end thereof the following new para-
graph: 
"(5) providing assistance to institutions of higher educa-
tion.". 
(2) Section 401(b) of such Act is amended by striking out "and 4" 
and inserting in lieu thereof "4 and 5". 
(3) Section 491(b) (1) of such Act is amended by inserting after 
"For the purposes of this title," the following "except subpart 5 of 
part A,". 
(d) The total of the payments made under subpart 5 of part A of 
title IV, of the Higher Education Act of 1965 (except section 420) 
and under part F of title I X of such Act may not exceed $1,000,000,000 
during any fiscal year. 
Approved June 23, 1972. 
Ante, p. 247. 
Ante, p. 272. 
Anto, p. 375. 
Limitation. 
Ante, p. 380. 
Public Law 92-319 
AN ACT 
'!'(» direct the Se<-i'Kiir.v of .\4?ricultiu*e to release on lielinlf of tlie Inited 
1
1 condition in H deed conveying <'ertflin lands to the Arl\ans«s (Janie ai 
Conimissioii, and for other purposes. 
Inited States 
id Kisli 
June 23, 1972 
[H. R. S404] 
56 Stat. 725. 
/^e it enacted by the ISeimte and Home of RepremntathieH of the 
l.nited States of America in Congresa assemMed. That, notwithstaiul- 
Land"use"condi-
ing the provisions of subsection (c) of section 32 of the Bankhead- tion, release. 
Jones Farm Tenant Act, as amended (7 L^.S.C. 1011 (c)), the Secretary 
so stat. 525; 
of Agriculture is authorized and directed to release on behalf of tlie 
ITnited States with respect to lands designated pursuant to sectioM 
•
2 hereof the condition in a deed dated Ootooer 2,1969, conveying lands 
in the State of Arkansas to the Arkansas State Game and Fisli 
(Commission, which requires that the lands so conveyed be used for 
public purposes and provides for a reversion of such lands to the 
I "nited States if at any time they cease to be so used. 
SEC. 2. The Secretai'y shall release the condition refei'red to in the 
Hrst section of this Act only with respect to lands covered by and 
described in an agi'eement or agreements entered into between the 
Secretary and the Arkansas State Game and Fish Gommission in 
which such State agency, in consideration of the release of such 
conditions as to such lands, agrees: 
(a) that if lands with respect to which the condition is released 
are exchanged, they shall be exchanged for lands or other prop-
eity of approximately comparable value and that the lands so 
acquired by exchange shall be used for public purposes: and 
(b) that proceeds from a sale, lease, exchange, or other- dis-
position of lands with respect to which the condition is released 
shall be held in a separate fund open to inspection by the Secre-
tary of Agricultui-e and shall be used by the (Commission for the 
acquisition of lands to be held or used for public purposes. 
SKC, 8. Fpon application all the undivided mineral interests of 
the United States ni any parcel or tract of land released pursuant to 
this Act from the condition as to such lands shall be conveyed to the 
Arkansas State Game and Fish ("Commission for- the use and benefit of 
the Gommission by.the Secretary of the Interior. In areas where the 
Secretary of the Interior determines that there is no active mineral 
Mineral 
interests.