An Act to amend the Public Health Service Act to increase the opportunities for training of medical technologists and personnel In other allied health professions, to improve the educational quality of the schools training such allied health professions personnel, and to strengthen and improve the existing student loan programs for medical osteopathic, dental, podiatry, pharmacy, optometric, and nursing students, and for other purposes.
PL 89-751 (H.R.13196), enacted 11/03/1966

1222 
PUBLIC LAW 89-751-NOV. 3, 1966 
[80 STAT. 
lished by State and local administrators of the programs to assure that 
the local program is meeting the needs of the community. 
LIMITATION 
SEC. 313. No grant may be made under this title for any educational 
program, activity, or service related to sectarian instruction or reli-
gious worship, or provided by a school or department of divinity. 
For 
purposes of this section, the term "school or department of divinity" 
means an institution or a department or branch of an institution whose 
program is specifically for the education of students to prepare them 
to become ministers of religion or to enter upon some other religious 
vocation, or to prepare them to teach theological subjects. 
APPROPRIATIONS 
AUTHORIZED 
SEC. 314. There is authorized to be appropriated $40,0(X>,(X)0 for the 
fiscal year ending June 30, 1967, and $60,000,000 for the fiscal year 
ending June 30, 1968, for the purposes of this title. 
78 Stat. 520. 
42 u s e 280 1-
280 7. 
REPEALER 
SEC. 315. Part B of title I I of the Economic Opportunity Act of 
1964 is repealed. 
Approved November 3, 1966. 
November 3, 1966 
[H. R.13196] 
Public Law 89-751 
AN ACT 
To amend the Public Health Service Act to increase the opportunities for train-
ing of medical technologists and personnel in other allied health professions, 
to improve the educational quality of the schools training such allied health 
professions personnel, and to strengthen and improve the existing student 
loan programs for medical, osteopathic, dental, podiatry, pharmacy, opto-
metric, and nursing students, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
p Allied Health 
United States of America in Congress assembled, That this Act may 
p^rsonn^rTrain- 
be cited as tliB "Allied Health Professions Personnel Training Act 
ing Act of 19 66. 
o f 1 9 6 6 " . 
70 Stat. 717. 
42 u s e 29 2-
295g. 
ADDITION OF PART G TO TITLE VII OF T H E PUBLIC H E A L T H SERVICE ACT 
SEC. 2. Title VII of the Public Health Service Act is amended by 
adding at the end thereof the following new part: 
"PART G—TRAINING IN THE ALLIED HEALTH PROFESSIONS 
"GRANTS FOR CONSTOUCTION OF TEACHING FACILITIES FOR ALLIED H E A L T H 
PROFESSIONS 
PERSONNEL 
"Authorization of Appropriations 
"SEC. 791. (a)(1) There are authorized to be appropriated for grants 
to assist in the construction of new facilities for training centers for 
80 STAT. ] 
PUBLIC LAW 89-751-NOV. 3, 1966 
1223 
allied health professions, or replacement or rehabilitation of existing 
facilities for such centers, $3,000,000 for the fiscal year ending June 
30, 1967; $9,000,000 for the fiscal year ending June 30, 1968; and 
$13,500,000 for the fiscal year ending June 30, 1969. 
"(2) Sums appropriated pursuant to paragraph (1) for a fiscal 
year shall remain available for grants under this section until the 
close of the next fiscal year. 
"Approval of Applications for Construction Grants 
"(b) (1) No application for a grant under this section may be ap-
proved unless it is submitted to the Surgeon General prior to July 1, 
1968. The Surgeon General may from time to time set dates (not 
earlier than the fiscal year preceding the year for which a grant is 
sought) by which applications for grants under this section for any 
fiscal year must be filed. 
"(2) A grant under this section may be made only if the applica-
tion therefor is approved by the Surgeon General upon his deter-
mination that— 
"(A) the applicant is a public or nonprofit private training 
center for allied health professions; 
"(B) the application contains or is supported by reasonable 
assurances tliat (i) for not less than ten years after completion of 
construction, the facility will be used for the purposes of the train-
ing for which it is to be constructed, and will not be used for 
sectarian instruction or as a place for religious worship, (ii) suffi-
cient funds will be available to meet the non-Federal share of the 
cost of constructing the facility, (iii) sufficient funds will be avail-
able, when construction is completed, for effective use of the 
facility for the training for which it is being constructed, and 
(iv) in the case of an application for a grant for construction to 
expand the training capacity of a training center for allied health 
professions, for the first full school year after the completion 
of the construction and for each of the nine years therieafter, the 
enrollment of full-time students at such center will exceed the 
highest enrollment of such students at such school for any of the 
five full school years preceding the year in which the application 
is made by at least 5 per centum of such highest enrollment, and 
the requirements of this clause (iv) shall be in addition to the 
requirements of section 792(b) (2), where applicable; 
"(C) (i) in the case of an application for a grant for construc-
tion of a new facility, such application is for aid in the construc-
tion of a new training center for allied health professions, or 
construction which will expand the training capacity of an exist-
ing center, or (ii) in the case of an application for a grant for 
replacement or rehabilitation of existing facilities, such applica-
tion is for aid in construction which will replace or rehabilitate 
facilities of an existing training center for allied health profes-
sions which are so obsolete as to require the center to curtail sub-
stantially either its enrollment or the quality of the training 
provided; 
1224 
PUBLIC LAW 89-751-NOV. 3, 1966 
[80 STAT. 
"(D) the plans and specifications are in accordance with regu-
lations relating to minimum standards of construction and equip-
ment; and 
"(E) the application contains or is supported by adequate as-
surance that any laborer or mechanic employed by any contractor 
or subcontractor in the performance of work on the construction 
of the facility will be paid wages at rates not less than those pre-
vailing on similar construction in the locality as determined by 
the Secretary of Labor in accordance with the Davis-Bacon Act, 
7«'*t^*^*;,«°''' 
as amended (40 U.S.C. 276a-276a5). The Secretary of Labor 
shall have, with respect to the labor standards specified m this 
subparagraph (E), the authority and functions set forth in Re-
organization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 
1267), and section 2 of the Act of June 13,1934, as amended (40 
63 Stat. 108. 
U.S.C. 276c). 
"(3) Notwithstanding paragraph (2), in the case of an affiliated 
hospital, an application wnich is approved by the training center for 
allied health professions with which the hospital is affiliated and 
which otherwise complies with the requirements of this section, may be 
filed by any public or other nonprofit agency qualified to file an appli-
42 use 2
*
9 u 
cation under section 605. 
"(4) In the case of any application, whether filed by a training 
center or, in the case of an affiliated hospital, by any other public or 
other nonprofit agency, for a grant under this section to assist in the 
construction of a facility Avhich is a hospital or part of a hospital, as 
42 use 2
9 lo. 
defined in section 625, only that portion of the project which the Sur-
geon General determines to be reasonably attributable to the need of 
such training center for the project for teaching purposes or in order 
to expand its training capacities or in order to prevent curtailment 
of enrollment or quality of training, as the case may be, shall be 
regarded as the project with respect to which payments may be made 
under this section. 
"(5) In considering applications for grants, the Surgeon General 
shall take into account— 
"(A) the extent to which the project for which the grant is 
sought will aid in increasing the number of training centers for 
allied health professions providing training in three or more of 
the curriculums which are specified in or pursuant to paragraph 
(1) (A) of section 795 and are related to each other to the extent 
prescribed in regulations; 
"(B) (i) in the case of a project for a new training center for 
allied health professions or for expansion of the facilities of an 
existing center, the relative effectiveness of the proposed facilities 
in expanding the capacity for the training of students in the allied 
health professions involved and in promoting an equitable geo-
graphical distribution of opportunities for such training (giving 
due consideration to population, relative unavailability of allied 
health professions personnel of the kinds to be^ trained by such 
center, and available resources in various areas of the Nation for 
training such personnel) ; or 
80 STAT. ] 
PUBLIC LAW 89-751-NOV. 3, 1966 
"(ii) in the case of a project for replaceiiient or reliabilitation 
of existing facilities of a training center for allied health profes-
sions, the relative need for such replacement or rehabilitation to 
prevent curtailment of the center's enrollment or deterioration 
of the quality of the training provided by the center, and the 
relative size of any such curtailment and its effect on the geo-
graphical distribution of opportunities for training in the allied 
health professions involved (giving consideration to the factors 
mentioned above in subparagraph (i)) ; and 
"(C) in the case of an applicant in a State which has in exist-
ence a State or local area agency involved in planning for facili-
ties for the training of allied health professions personnel, or 
which participates in a regional or other interstate agency 
involved in planning for such facilities, the relationship of the 
application to the construction or training program which is 
being developed by such agency or agencies and, if such agency oi* 
agencies have reviewed such ap})lication, any comment thereon 
submitted by them. 
"Amount of Construction (jrant; Payments 
•'(c) (1) The amount of any grant for a construction ])roject under 
this section shall be such amount as the Surgeon General determines 
to be Appropriate; except that (A) in the case of a grant for a pi-oject 
for a new training center for allied health professions, and in the case 
of a grant for a project for new facilities for an existing center where 
such facilities are of particular importance in providing n major 
expansion of the training capacity of such center, as determined in 
ac^'.ordance with regulations, such amount may not exceed 66% per 
centum of the necessary cost of construction, as determined by the 
Surgeon General, of such project; and (B) in the case of any other 
grant, such amount may not exceed 50 per centum of the necessary 
cost of construction, as so determined, of the project with reR])ect to 
which the grant is made. 
"(2) Upon approval of any application for a grant under this 
section, the Surgeon General shall reserve, from any appropriation 
available therefor, the amount of such grant as detennined under para-
graph (1) ; the amount so reserved may be paid in advance or by way 
of reimbursement, and in such installments consistent with construc-
tion progress, as the Surgeon General may determine. The Surgeon 
General's reservation of any amount under this subsection may be 
amended by him, either upon approval of an amendment of the appli-
cation or upon revision of the estimated cost of constniction of the 
facility. 
"(3) In determining the amount of any grant ujuier this section, 
there shall be excluded from the cost of construction an amount equal 
to the sum of (A) the amount of any other Federal grant which the 
applicant has obtained, or is assured of obtaining, with respex;t to the 
construction which is to }ye, financed in part by the grant undei' this 
1226 
PUBLIC LAW 89-751-NOV. 3, 1966 
[80 STAT. 
section, and (B) the amount of any non-Federal funds required to be 
expended as a condition of such other Federal grant. 
"Recapture of Payments 
"(d) If, within ten years after completion of any construction for 
which funds have been paid under this section— 
"(1) the applicant or other owner of the facility shall cease 
to be a public or nonprofit private training center for allied health 
professions, or 
"(2) the facility shall cease to be used for the training pur-
poses for which it was constructed (unless the Surgeon General 
determines, in accordance with regulations, that there is good 
cause for releasing the applicant or other owner from the obliga-
tion to do so), or 
"(3) the facility is used for sectarian instruction or as a place 
for religious worship, 
the United States shall be entitled to recover from the applicant or 
other owner of the facility the amount bearing the same ratio to the 
then value (as 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) of the facility, as the amount of the Federal 
participation bore to the cost of construction of such facility. 
"GRANTS TO IMPROVE THE QUALITY OF TRAINING CENTERS FOR ALLIED 
HEALTH PROFESSIONS 
"Authorization of Appropriations 
"SEC. 792. (a) There are authorized to be appropriated $9,000,000 
for the fiscal year ending June 30,1967; $13,000,000 for the fiscal year 
ending June 30, 1968; and $17,000,000 for the fiscal year ending June 
30, 1969; for grants under this section to assist training centers for 
allied health professions to develop new or improved curriculums for 
training allied health professions personnel and otherwise improve 
the quality of their educational programs. 
"Basic Improvement Grants 
"(b) (1) Subject to the provisions of paragraph (2), the Surgeon 
General may, for each fiscal year in the period beginning July 1,1966, 
and ending June 30, 1969, make to each training center tor allied 
health professions whose application for a basic improvement grant 
has been approved by him a grant equal to the product obtained by 
multiplying $5,000 by the number of curriculums specified in or pur-
suant to paragraph (1) (A) of section 795 in which such center pro-
vides training during such year, plus the product obtained by multi-
plying $500 by the number of full-time students in such center 
receiving training in such curriculums. 
"(2) The Surgeon General shall not make a grant under this sub-
section to any center unless the application for such grant contains 
or is supported by reasonable assurances that for the first school year 
beginning after the fiscal year for which such grant is made and each 
school year thereafter during which such a grant is made the enroll-
ment 01 full-time students at such center will exceed the highest enroll-
ment of such students in such center for any of the five school years 
during the period July 1, 1961, through July 1, 1966, by at least 2i/^ 
per centum of such highest enrollment, or by three students whichever 
IS greater. 
The requirements of this paragraph shall be in addition 
80 STAT. ] 
PUBLIC LAW 89-751-NOV. 3, 1966 
to the requirements of section 791 (b) (2) (B) (iv) of this Act, where 
applicable. 
The Sur^eoii General is authorized to waive (in whole 
or in part) the provisions of this paragraph if he determines that the 
required increase in enrollment of full-time students in a center cannot, 
because of limitations of physical facilities available to the center for 
training, be accomplished without lowering the quality of training for 
such students. 
''Special Improvement Grants 
"(c) (1) From the sums appropriated under subsection (a) for any 
fiscal year and not required for making grants under subsection (b), 
the Surgeon General may make an additional grant for such year to 
any training center for allied health professions which has an 
approved application therefor and for which an application has been 
approved under subsection (b), if he determines that the requirements 
of paragraph (2) are satisfied in the case of such applicant. 
"(2) No special improvement grant shall be made under this sec-
tion unless (A) the Surgeon General determines that such grant will 
be utilized by the recipient training center to contribute toward pro-
vision, maintenance, or improvement of specialized function which 
the center serves, and (B) such center provides or will, with the aid 
of grants under this part, within a reasonable time provide training 
in not less than three of the curriculums which are specified in or 
pursuant to paragraph (1) (A) of section 795 and are related to each 
other to the extent prescribed in regulations. 
"(3) No grant to any center under this subsection may exceed 
$100,000 for any fiscal year. 
"Application for Grants 
"(d)(1) The Surgeon General may from time to time set dates 
(not earlier than in the fiscal year preceding the year for which a 
grant is sought) by which applications for basic or special improve-
jnent grants under this section for any fiscal year must be filed, 
"(2) A grant under this section may be made only if the applica-
tion therefor is approved by the Surgeon General upon his determi-
nation that— 
"(A) it contains or is supported by assurances satisfactory to 
the Surgeon General that the applicant is a public or nonprofit 
private training center for allied health professions and will ex-
pend in carrying out its functions as such a center, during the fiscal 
year for which such grant is sought, an amount of funds (other 
than funds for construction as determined by the Surgeon Gen-
eral) from non-Federal sources which are at least as great as the 
average amount of funds expended by such applicant for such 
purpose in the three fiscal years immediately preceding the fiscal 
year for which such grant is sought; 
"(B) it contains such additional information as the Surgeon 
General may require to make the determinations required of him 
under this section and such assurances as he may find necessary to 
carry out the purposes of this section; and 
"(C) it provides for such fiscal control and accounting pro-
cedures and reports, and access to the records of the applicant, as 
the Surgeon General may require to assure proper disbursement 
of and accounting for Federal funds paid to the applicant under 
this section. 
"(3) In considering applications for grants under subsection (c), 
the Surgeon General shall take into consideration the relative financial 
need of the applicant for such a grant and the relative effectiveness 
1228 
PUBLIC LAW 89-751-NOV. 3, 1966 
[sO STAT. 
of the applicant's plan in carrying out the purposes of such grants, 
and in contributing to an equitable geographical distribution of train-
ing centers offering high-quality training of allied health professions 
personnel. 
" T R A T N E E S H I P S FOR ADVANCED T R A I N I N G o r ALLIED HEALTH PROFESSIONS 
PERSONNEL 
"SEC. 793. (a) There are authorized to be appropriated $1,500,000 
for the fiscal year ending June 30,1967; $2,500,000 for the fiscal year 
ending June 30,1968; and $3,500,000 for the fiscal year ending June 30, 
1969; to cover the cost of traineeships for the training of allied health 
professions personnel to teach health services technicians or in any 
of the allied health professions, to serve in any of such professions in 
administrative or supervisory capacities, or to serve in allied health 
professions specialties determined by the Surgeon General to require 
advanced training. 
"(b) Traineeships under this section shall be awarded by the Sur-
geon General through grants to public or nonprofit private training 
centers for allied health professions. 
"(c) Payments to centers under this section may be made in 
advance or by way of reimbursement, and at such intervals and on 
such conditions, as the Surgeon General finds necessary. 
Such pay-
ments may be used only for traineeships and shall be limited to such 
amounts as the Surgeon General finds necessary to cover the costs of 
tuition and fees, and a stipend and allowances (including travel and 
subsistence expenses) for the trainees. 
"DEVELOPMENT OF NEW METHODS 
"SEC. 794. There are authorized to be appropriated $750,000 for the 
fiscal year ending June 30, 1967; $2,250,000 for the fiscal year ending 
June 30,1968; and $3,000,000 for the fiscal year ending June 30, 1969; 
for grants to public or nonprofit private training centers for allied 
health professions for projects to develop, demonstrate, or evaluate 
curriculums for the training of new types of health technologists. 
"DEFINITIONS 
"SEC. 795. For purposes of this part— 
"(1) The term 'training center for allied health professions' means 
a junior college, college, or university— 
"(A) which provides, or can provide, programs of education 
leading to a baccalaureate or associate degree or to the equivalent 
of either or to a higher degree in the medical technology, opto-
metric technology, dental hygiene, or any of such other of the 
allied health professions curriculums as are specified by regula-
tions, or which, if in a junior college provides a program (i) 
leading to an associate or an equivalent degree, (ii) of education 
in medical technology, optometric technology, dental hygiene, or 
any of such other of the allied health technical or professional 
curriculums as are specified by regula;tion, and (iii) acceptable 
for full credit toward a baccalaureate or equivalent degree m the 
allied health professions or designed to prepare the student to 
work as a technician in a health occupation specified by regulations 
of the Surgeon General, 
"(B) which provides training for not less than a total of twenty 
persons in such curriculums, 
77 Stat. 169. 
42 u s e 29 3d, 
80 STAT. ] 
PUBLIC LAW 89-751-NOV. 3, 1966 
1229 
"(C) which, if in a college or university which does not include 
a teaching hospital or in a junior college, is affiliated (to the extent 
and in the manner determined in accordance with regulations) 
with such a hospital, 
"(D) which is (or is in a college or university, which is) 
accredited by a recognized body or bodies approved for such pur-
pose by the Commissioner of education, or which is in a junior 
college which is accredited by the regional accrediting agency for 
the region in which it is located or there is satisfactory assurance 
afforded by such accrediting agency to the Surgeon General that 
reasonable progress is being made toward accreditation by such 
junior college, and 
"(E) in the case of an applicant for a grant under section 793, 
which, if the college or university does not include a school of 
medicine, a school of osteopathy, school of optometry, or school of 
dentistry, as defined in paragraph (4) of section 724, as may be 
appropriate in the light of the trainmg for which the grant is 
to be made, is affiliated (to the extent and in the manner deter-
mined in accordance with regulations) with such a school, 
except that an applicant for a grant for a construction project under 
section 791 which does not at the time of application meet the require-
ment of clause (B) shall be deemed to meet such requirement if the 
Surgeon General finds there is reasonable assurance that the unit will 
meet the requirement of clause (B) prior to the beginning of the 
academic year following the normal graduation date ot the first enter-
ing class in such unit, or, if later, upon completion of the project for 
which assistance is requested and other projects (if any) under con-
struction or planned and to be commenced within a reasonable time. 
"(2) The term 'full-time student' means a student pursuing a full-
time course of study, in one of the curriculums specified in or pursuant 
to paragraph (1)(A) of this section, leading to a baccalaureate or 
associate degree or to the equivalent of either, or to a higher degree, 
in a training center for allied health professions; regulations of the 
Surgeon General shall include provisions relating to determination of 
the number of students enrolled at a training center on the basis of 
estimates, or on the basis of the number of students enrolled in a train-
ing center in an earlier year, or on such basis as he deems appropriate 
for making such determination, and shall include methods of making 
such determinations when a training center was not in existence in an 
earlier year. 
"(3) The term 'nonprofit' as applied to any training center for 
allied health professions means one which is a corporation or associ-
ation, or is owned and operated by one or more corporations or asso-
ciations, no part of the net earnings of which inures, or may lawfully 
inure, to the benefit of any private shareholder or individual. 
"(4) The terms 'construction' and 'cost of construction' include (A) 
the construction of new buildings, and the acquisition, expansion, re-
modeling, replacement, and alteration of existing buildings, including 
architects' fees, but not including the cost of acquisition of land (except 
in the case of acquisition of an existing building), off-site improve-
ments, living quarters, or patient-care facilities, and (B) equipping 
new buildings and existing buildings, whether or not expanded, re-
modeled, or altered. 
"(5) The term 'affiliated hospital' means a hospital, as defined in 
section 625, which is not owned by, but is affiliated (to the extent and 
^^ ^*^'- "^^o. 
in the manner determmed in accordance with regulations) with, one 
or more training centers for allied health professions. 
65-300 0-67—80 
42 u s e 291o. 
1230 
PUBLIC LAW 89-751-NOV. 3, 1966 
[80 STAT. 
a 
77 Stat. 169. 
42 u s e 293e. 
78 Stat. 917. 
42 u s e 298. 
RECORDS AND AUDIT 
"SEC. 796. (a) Each recipient of a grant under this part shall keep 
such records as the Surgeon General may prescribe, including records 
which fully disclose the amount and disposition by such recipient of 
the proceeds of such grant, the total cost of the project or undertaking 
in connection with which such grant is made or used, and the amount 
of that portion of the cost of the project or undertaking supplied by 
other sources, and such records as will facilitate an effective audit. 
"(b) The Secretary of Health, Education, and Welfare and the 
Comptroller General of the United States, or any of their duly au-
thorized representatives, shall have access for the purpose of audit and 
examination to any books, documents, papers, and records of the 
recipient of any grant under this part which are pertinent to any 
such grant." 
PER DIEM FOR ADVISORY COUNCILS 
SEC. 3. (a) Section 725(d) of the Public Health Service Act is 
amended by striking out "$50" and inserting in lieu thereof "$100". 
(b) Section 841 (c) of such Act is amended by striking out "$75" and 
inserting in lieu thereof "$100". 
79 Stat. 1057. 
42 u s e 294a. 
ADDITIONAL LOAN CANCELLATION FOR H E A L T H PERSONNEL PRACTICING 
I N LOW-INCOME RURAL AREAS 
SEC. 4. (a) Section 741(f) of the Public Health Service Act is 
amended by adding at the end thereof the following new sentence: 
"In the case of a physician, dentist, or optometrist, the rate shall be 
15 per centum (rather than 10 per centum) for each year of such 
practice in an area in a State which for purposes of this subsection 
and for that year has been determined by the Secretary, pursuant to 
regulations and after consultation with the appropriate State health 
authority, to be a rural area characterized by low family income; and, 
for the purpose of any cancellation pursuant to this sentence, an 
amount equal to an additional 50 per centum of the total amount of 
such loans plus interest may be canceled." 
77 Stat. 173. 
42 u s e 294d. 
ESTABLISHING A REVOLVING FUND FROM W H I C H SCHOOLS MAY OBTAIN 
LOANS TO CAPITALIZE HEALTH PROFESSIONS STUDENT LOAN FUNDS UNDER 
TITLE VII-C OF T H E PUBLIC HEALTH SERVICE ACT 
SEC. 5. (a) Section 744 of the Public Health Service Act (relating 
to loans to schools) is amended to read as follows: 
42 u s e 294. 
42 u s e 293a. 
''LOANS TO SCHOOLS; REVOLVING 
FUND 
"Loans to Schools 
"SEC. 744. (a)(1) During the fiscal years ending June 30,1967, and 
June 30,1968, the Secretary may make loans, from the revolving fund 
established b^ subsection (d), to any public or other nonprofit school 
referred to in section 740(a) which is located in a State and is 
accredited as provided in section 721(b)(1)(B), to provide all or 
part of the capital needed by any such school for making loans to 
students under this section (other than capital needed to finance the 
institutional contributions required by section 740(b) (2) (B)). Loans 
to students from such borrowed sums shall be subject to the terms, 
conditions, and limitations set forth in section 741. The requirement 
in section 740(b) (2) (B) with respect to institutional contributions 
80 STAT. ] 
PUBLIC LAW 89-751-NOV. 3, 1966 
1231 
to student loan funds shall not apply to loans made to schools under 
tills section. 
"(2) A loan to a school under this section maj^ be upon such 
terms and conditions, consistent with applicable provisions of section 
740, as the Secretary deems appropriate. 
If the Secretary deems it 
^^ ^*|*- ijo-
to be necessary to assure that the purposes of this section will be 
achieved, these terms and conditions may include provisions making 
the school's obligation to the Secretary on such a loan payable solely 
from such revenues or other assets or security (including collections 
on loans to students) as the Secretary may approve. 
Such a loan shall 
bear interest at a rate which the Secretary determines to be adequate 
to cover (A) the cost of the funds to the Treasury as determined by 
the Secretary of the Treasury, taking into consideration the current 
average yields of outstanding marketable obligations of the United 
States having maturities comparable to the maturities of loans made 
by the Secretary under this section, and (B) probable losses. 
"Payments to Schools To Cover Certain Costs Incurred in Making 
Student Loans From Borrowed Funds 
"(b) If a school borrows any sums under this section, the Secretary 
shall agree to pay to the school (1) an amount equal to 90 per centum 
of the loss to the school from defaults on student loans made from 
such sums, (2) the amount by which the interest payable by the school 
on such sums exceeds the interest received by it on student loans 
made from such sums, (3) an amount equal to the collection expenses 
authorized by section 740(b) (3) to be paid out of a student loan fund 
with respect to such sums, and (4) the amount of principal which is 
canceled pursuant to section 741 (d) or (f) w4th respect to student 
loans made from such funds. 
There are authorized to be appropriated 
without fiscal year limitation such sums as may be necessary to carry 
out the purposes of this subsection. 
"Limitation on Loans From Revolving Fund 
"(c) The total of the loans made in any fiscal year under this section 
may not exceed the lesser of (1) such limitations as may be specified 
in appropriation Acts, and (2) the difference between $35,000,000 and 
the amount of Federal funds (other than loans under this section) 
deposited in student loan funds under this part for that year. 
"Revolving Fund 
"(d) (1) There is hereby created within the Treasury a health pro-
fessions education fund (hereinafter in this section called 'the fund') 
which shall be available to the Secretary without fiscal-year limitation 
as a revolving fund for the purposes of this section. A business-type 
budget for the fund shall be prepared, transmitted to the Congress, 
considered, and enacted in the manner prescribed by law (sections 
102, 103, and 104 of the Government Corporation Control Act, 31 
U.S.C. 847-849) for wholly owned Government Corporations. 
e/stat^ss"^' 
"(2) The fund shall consist of appropriations paid into the fund 
2)ursuant to section 742(a), appropriations made pursuant to this sub- 
43 use 2
9
^
4
b
. 
section, all amounts received by the Secretary as mterost payments or 
repayments of principal on loans under this section, and any other 
moneys, property, or assets derived by him from his operations in 
connection with this section (other than subsection (b)), including 
any moneys derived directly or indirectly from the sale of assets, or 
beneficial interests or participations in assets, of the fund. 
79 Stat. 1057. 
42 u s e 294a. 
1232 
PUBLIC LAW 89-751-NOV. 3, 1966 
[80 STAT. 
"(3) All loans, expenses 
(other than normal 
administrative 
expenses), and payments pursuant to operations of the Secretary 
under this section (other than subsection (b)) shall be paid from the 
fund, including (but not limited to) expenses and payments of the 
Secretary in connection with the sale, under section 302(c) of the 
1
2 us^c f?!*? 
Federal National Mortgage Association Charter Act, of participa-
Ante, p. 164. 
tlons iu obligations acquired under this section. 
From time to time, 
and at least at the close of each fiscal year, the Secretary shall pay 
from the fund into the Treasury as miscellaneous receipts interest on 
the cumulative amount of appropriations paid out for loans under 
this section, less the average undisbursed cash balance in the fund 
during the year. 
The rate of such interest shall be determined by the 
Secretary of the Treasury, taking into consideration the average mar-
ket yield during the month preceding each fiscal year on outstanding 
Treasury obligations of maturity comparable to the average maturity 
of loans made from the fund. 
Interest payments may be deferred 
with approval of the Secretary of the Treasury, but any interest pay-
ments so deferred shall themselves bear interest. 
If at any time the 
Secretary 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 general fund of the Treasury. 
"(4) In addition to the sums authorized to be appropriated by sec-
tion 742 (a), there are authorized to be appropriated to the fund estab-
lished by this subsection $10,000,000 for the fiscal year ending June 30, 
1967." 
Allotment Among Schools of Fimds for Federal Capital Deposits 
and Loans to Schools 
(b) (1) Subsection (a) of section 742 of the Public Health Service 
42 us^c 2
9
4
^
b 
^^^ ^^ amended by striking out everything after "appropriated" in 
t he last sentence and substituting therefor the following: "under this 
section for the fiscal year ending June 30, 1967, or any subsequent 
fiscal year shall be available to the Secretary (1) for payments into 
the fund established by section 744(d), and (2) for making Federal 
capital contributions into loan funds at schools which have established 
loan funds under this part. 
(2) Subsection (b) (1) of such section 742 is amended to read as 
follows: "The Secretary shall from time to time set dates by which 
schools must file applications for Federal capital contributions, .and 
for loans pursuant to section 744." 
(3) That part of the first sentence of subsection (b) (2) of such 
section 742 which precedes clause (A) is amended by substituting 
"section" for "part". 
(4) Such subsection (b) of such section 742 is further amended 
by redesignating paragraph (3) as paragraph (4) and by inserting 
after paragraph (2) the following: 
"(3) Funds available in any fiscal year for payment to schools 
under this part (whether as Federal capital contributions or as loans 
to schools under section 744) which are in excess of the amount appro-
priated pursuant to this section for that year shall be allotted among 
schools in such manner as the Secretary determines will best carry 
out the purposes of this part." 
Conforming Changes 
(c) (1) Clauses (A) and (B) of subsection (b) (2) of section 740 
42 use 294. 
^f such Act are amended to read: " (A) the Federal capital contribu-
tions to the fund, (B) an amount equal to not less than one-ninth of 
such Federal capital contributions, contributed by such institution,". 
Ante, p. 1230. 
80 STAT. ] 
PUBLIC LAW 89-751-NOV. 3, 1966 
1233 
(2) (A) So much of section 74S(a) of such Act as precedes para- 
42 us^c 294c. 
graph (1) is amended by striking out "this part" and inserting in lieu 
thereof "an agreement pursuant to section 740(b)". 
(B) Paragraph (1) of such section 743(a) is amended by striking 
out "total amount of the allotments to such fund by the Secretary under 
this part bears to the total amounts in such fund derived from such 
allotments" and inserting in lieu thereof "total amount of the Federal 
capital contributions to such fund by the Secretary pursuant to section 
740(b) (2) (A) bears to the total amount in such fund derived from 
^'^' P- ^232. 
such Federal capital contributions" and by striking out "the balance" 
and inserting in lieu thereof "such balance". 
(3) Subsection (b) of such section 743 is amended by inserting 
"(other than so much of such fund as relates to payments from the 
revolving fund established by section 744(d))" after "loan fund es-
tablished pursuant to such agreement". 
Ante, p. 1231. 
Effective Date 
(d) (1) The amendments made by this section shall be effective in 
the case of payments to student loan funds made after the enactment 
of this Act, except in the case of payments pursuant to commitments 
(made prior to enactment of this Act) to make loans under section 744 
of the Public Health Service Act as in effect prior to the enactment 
of this Act. 
(2) The Secretary of Health, Education, and Welfare is authorized, 
at the request of any institution, to take such steps as are necessary 
to convert a Federal capital contribution (which shall include the 
amount allocated to it under section 740(b)(2)(A) of the Public 
Health Service Act) to a student loan fund of such institution, made 
under title VII of the Public Health Service Act from funds appro-
priated pursuant thereto for the fiscal year ending June 30, 1967, to 
a loan under section 744 of such Act as amended by this Act. 
ESTABLISHING A REVOLVING FUND FROM W H I C H SCHOOLS OF NURSING MAY 
OBTAIN LOANS TO CAPITALIZE STUDENT LOAN FUNDS UNDER TITLE VIII-B 
OF T H E PUBLIC HEALTH SERVICE ACT 
SEC. 6. (a) Section 827 of the Public Health Service Act (relating 
to loans to schools of nursing) is amended to read as follows: 
"LOANS TO SCHOOLS; REVOLVING FUND 
"Loans to Schools 
"SEC. 827. (a) (1) During the fiscal years ending June 30,1967, and 
June 30,1968, the Secretary may make loans, from the revolving fund 
established by subsection (d), to any public or nonprofit private school 
of nursing which is located in a State, to provide all or part of the 
capital needed by any such school for making loans to students under 
this section (other than capital needed to make the institutional con-
tributions required of schools by section 822(b)(2)(B)). 
Loans to 
^
^
2 use 297a. 
students from such borrowed sums shall be subject to the terms, con-
ditions, and limitations set forth in section 823. The requirement in 
section 822(b)(2)(B) with respect to institutional contributions by 
schools to student loan funds shall not apply to loans made to schools 
under this section. 
"(2) A loan to a school under this section may be upon such terms 
and conditions, consistent with applicable provisions of section 822, 
as the Secretary deems appropriate. If the Secretary deems it to be 
78 Stat. 917. 
42 u s e 297f. 
42 u s e 297b. 
78 Stat. 913. 
42 use 297a. 
1234 
PUBLIC LAW 89-751-NOV. 3, 1966 
[sO STAT. 
necessary to assure that tlie purposes of rliis section will be achieved, 
these terms and conditions may include provisions making the school's 
obligation to the Secretary on such a loan payable solely from such 
revenues or other assets or security (including collections on loans to 
students) as the Secretary may approve. 
Such a loan shall bear 
interest at a rate which the Secretary determines to be adequate to 
cover (A) the cost of the funds to the Treasury as determined by the 
Secretary of the Treasury, taking into consideration the current aver-
age yields of outstanding marketable obligations of the United States 
having maturities comparable to the maturities of loans made by the 
Secretary under this section, and (B) probable losses. 
"Payments to Schools To Cover Certain Costs Incurred in Making 
Student Loans From Borrowed Funds 
"(b) If a school of nursing borrows any sums mider this section, 
the Secretary shall agree to pay to the school (1) an amount equal 
to 90 per centum of the loss to the school from defaults on student 
loans made from such sums, (2) the amount by which the interest 
payable by the school on such sums exceeds the interest received by it 
on student loans made from such sums, (3) an amount equal to the 
amount of collection expenses authorized by section 822(b) (3) to be 
paid out of a student loan fund with respect to such sums and (4) 
the amount of principal which is canceled pursuant to section 823(b) 
42 use 297b. 
^3^ Qj. ^^^ with respect to student loans made from such sums. 
Tliere 
are authorized to be appropriated without fiscal-year limitation such 
sums as may be necessary to carry out the purposes of this subsection. 
"Limitation on I^oans 
" (c) The total of the loans made in any fiscal year under this section 
shall not exceed the lesser of (1) such limitations as may be specified 
in appropriation Acts, and (2) the difference between $35,000,000 and 
the amount of Federal capital contributions paid under this title for 
that year. 
"Revolving Fund 
, 
: 
j , 
" (d) (1) There is hereby created within the Tre{\sury a nurse train-
ing fund (hereinafter in this section called 'the fund') which shall be 
available to the Secretary without fiscal-year limitation as a revolving 
fund for the purposes of this section. A business-type budget for the 
fund shall be prepared, transmitted to the Congress, considered, and 
enacted in the manner prescribed by law (sections 102, 103, and 104 
6i'stat.''584^^' 
^^ ^he Govemment Corporation Control Act, 31 U.S.C. 847-849) for 
wholly owned Govemment corporations. 
"(2) The fund shall consist of appropriations paid into the fund 
42 use 297c. 
pursuant to section 824, appropriations made pursuant to this subsec-
tion, all amounts received by the Secretary as interest payments or 
repayments of principal on loans under this section, and any other 
moneys, property, or assets derived by him from his operations in 
connection with this section (other than subsection (b)), including 
any moneys derived directly or indirectly from the sale of assets, or 
beneficial interests or participations in assets, of the fund. 
"(3) All loans, expenses (other than normal administrative ex-
penses), and payments pursuant to operations of the Secretary under 
this section (other than subsection (b)) shall be paid from the fund, 
including (but not limited to) expenses and payments of the Secretary 
in connection with the sale, under section 302(c) of the Federal 
Ante, p. 164. 
I^atioual Mortgage Association Charter Act, of participations in obli-
gations acquired under this section. From time to time, and at least 
80 STAT. ] 
PUBLIC LAW 89-751-NOV. 3, 1966 
1235 
at the close of each fiscal year, the Secretary shall pay from the fund 
into the Treasury as miscellaneous receipts interest on the cumulative 
amount of approprations paid out for loans under this section, less the 
average undisbursed cash balance in the fund during the year. 
The 
rate of such interest shall be determined by the Secretary of the 
Treasury, taking into consideration the average market yield during 
the month preceding each fiscal year on outstanding Treasury obliga-
tions of maturity comparable to the average maturity of loans made 
from the fund. Interest payments may be deferred with approval of 
the Secretary of the Treasury, but any interest payments so deferred 
shall themselves bear interest. If at any time the Secretary determines 
that moneys in the fund exceed the present and any reasonably pro-
spective future requirements of the fund, such excess may be 
transferred to the general fund of the Treasury. 
"(4) In addition to the sums authorized to be appropriated by sec-
tion 824, there are authorized to be appropriated to the fund estab-
lished by this subsection $2,000,000 for the fiscal year ending June 30, 
1967." 
(b) Section 824 of the Public Health Service Act is amended by 
striking out the last sentence and substituting therefor the following: 
"Sums appropriated pursuant to this section for the fiscal year ending 
June 30, 1967, or any subsequent fiscal year shall be available to the 
Secretary (1) for payments into the fund established by section 
827(d), and (2) in accordance with agreements under this part, for 
Federal capital contributions to schools with which such agreements 
have been made, to be used, together with deposits in such funds pur-
suant to section 822(b) (2) (B), for establishment and maintenance of 
student loan funds." 
78 Stat, 915. 
42 u s e 297c. 
Ante, p. 1234. 
42 use 297a. 
Allotment of Funds for Federal Capital Contributions and Loans to 
Schools 
(c) (1) Section 825 (a)_ of the Public Health Service Act (relating 
^2 use 297d. 
to allotments of appropriations among States) is amended by insert-
ing "for payment as Federal capital contributions or as loans to 
schools under section 827)" after "shall be allotted" in the first sen-
tence, and by adding at the end of subsection (a) the following new 
sentence "Funds available in any fiscal year for payment to schools 
under this part (whether as Federal capital contributions or as loans 
to schools under section 827) which are in excess of the amount appro-
priated pursuant to section 824 for that year shall be allotted among 
States and among schools within States in such manner as the Secre-
tary determines will best carry out the purposes of this part." 
(2) Section 825(b)(1) of such Act (relating to the allocation of 
Federal capital contributions to schools) is amended to read as 
follows: 
"(b) (1) The Secretary shall from time to time set dates by which 
schools of nursing in a State must file applications for Federal capital 
contributions, and for loans pursuant to section 827, from the allot-
ment of such State under the first two sentences of subsection (a) of 
this section." 
Conforming Amendment 
(d) (1) So much of section 826(a) of such Act as precedes para-
graph (1) is amended by striking out "this part" and inserting in lieu 
thereof "an agreement pursuant to section 822(b)". 
(2) Paragraph (1) of such section 826(a) is amended by striking 
out "the balance" and inserting in lieu thereof "such balance". 
(3) Subsection (b) of such section 826 is amended by inserting 
"(other than so much of such fund as relates to payments from the 
42 u s e 297e. 
1236 
PUBLIC LAW 89-751-NOV. 3, 1966 
[80 STAT. 
Ante, p. 1234. 
revolvmg fund established by section 827(d))" after "loan fund 
established pursuant to such agreement". 
Effective Date 
(e) (1) The amendments made by this section shall be effective in 
the case of payments to student loan funds made after the enactment 
of this Act, except in the case of payments pursuant to commitments 
(made prior to enactment of this Act) to make loans under section 
827 of the Public Health Service Act as in effect prior to the enact-
ment of this Act. 
(2) The Secretary of Health, Education, and Welfare is authorized, 
at the request of any institution, to take such steps as are necessary 
to convert a Federal capital contribution (which shall include the 
amount allocated to it under section 822(b)(2)(A) of the Public 
42 us^c 297^1 
Health Service Act) to a student loan fund of such institution, made 
under title VIII of the Public Health Service Act from funds appro-
priated pursuant thereto for the fiscal year ending June 30, 1967, to 
a loan under section 827 of such Act as amended by this Act. 
CONFORMING AMENDMENT TO T H E FEDERAL NATIONAL MORTGAGE 
ASSOCIATION CHARTER ACT 
SEC. 7. Section 302(c) (2) (B) of the Federal National Mortgage 
f2 use' 17X7 
Association Act is amended to read as follows: 
"(B) The Department of Health, Education, and Welfare, but 
only with respect to loans made by the Commissioner of Educa-
tion for construction of academic facilities, and loans to help 
finance student loan programs." 
TRANSFERABILITY OF CONSTRUCTION GRANTS: OPPORTUNITY GRANTS FOR 
NURSING EDUCATION 
78 Stat. 908. 
42 u s e 29 6. 
SEC. 8. (a) Section 801 of the Public Health Service Act is amended 
by adding at the end thereof the following new sentence: "Notwith-
standing any other provision of this title, whenever the Surgeon 
General determines that any part of any amount appropriated, for any 
fiscal year, to carry out the purposes of either paragraph (1) or par-
agraph (2) of subsection (a) will not likely be utilized for such pur-
poses during such year, he shall transfer such part to the amounts 
which are appropriated to carry out the purposes of the other such 
paragraph, if he has reason to believe that such part can be used for 
such purposes." 
2
g
4
g
2 use 296- 
(^y rp-^jg y j j j ^f ^j^^ PubHc Health Service Act is further amend-
ed by adding at the end thereof the following: 
"PART D—OPPORTUNITY GRANTS FOR NURSING EDUCATION 
"STATEMENT OF PURPOSE AND APPROPRIATIONS AUTHORIZED 
"SEC. 861. (a) It is the purpose of this part to provide, through 
schools of nursing (as defined in section 843(b)), nursing educational 
opportunity grants to assist in making available the benefits of nursmg 
education to qualified high school graduates of exceptional financial 
need, who for lack of financial means of their own or of their families 
would be unable to obtain such benefits without such aid. 
"(b) There are hereby authorized to be appropriated $3,000,000 for 
the fiscal year ending June 30, 1967, $5,000,000 for the fiscal year end-
ing June 30, 1968, and $7,000,000 for the fiscal year ending June 30, 
1969, to enable the Secretary to make payments to schools of nursing 
80 STAT. ] 
PUBLIC LAW 89-751-NOV. 3, 1966 
1237 
that have agreements with him entered into under section 867, for use 
by such schools for payments to undergraduate students for tlie nursing 
educational opportunity grants awarded to them under this part. 
Sums appropriated pursuant to this subsection for any fiscal year 
shall be available for payment to institutions until the close of the 
fiscal year succeeding the fiscal year for which they were appropriated. 
" A M O U N T o r NURSING EDUCATIONAL OPrORTUNITY GRANT 
ANNUAL 
DETERMINATION 
"SEC. 862. From the funds received by it for such purpose under 
this part, a school of nursing which awards a nursing educational 
opportunity grant to a student under this part shall, for the duration 
of the grant, pay to that student for each academic year during which 
he is in need of grant aid to pursue a course of study at such school, an 
amount determined by the institution for such student with respect to 
that year, which amount shall not exceed— 
"(1) the lesser of $800 or one-half of the sum of the amount 
of student financial aid (including assistance under title IV of 
the Higher Education Act of 1965,hut excluding assistance under 
^o us^c mi^-
work-study programs) provided such student by such school and loss. 
any assistance provided such student under any scholarship pro-
gram established by a State or a private institution or organiza-
tion, as determined in accordance with regulations of the Secre-
tary, or 
"(2) in the case of a student who during the preceding aca-
demic year at a school of nursing received grades placing him in 
the upper half of his class, the amount determined under para-
graph (1) plus $200. 
If the amount of the payment, determined pursuant to this section, 
for an academic year is less than $200 for any student, no payment 
shall be made under this part to such student for such year. 
The 
Secretary shall, subject to the foregoing limitation, prescribe for the 
guidance of participating institutions basic criteria or schedules (or 
both) for the determination of the amount of any such nursing educa-
tional opportunity grant, taking into account the objective of limiting 
grant aid under this part to students of exceptional financial need and 
such other factors, including the number of dependents in the family, 
as the Secretary may deem relevant. 
a 
DURATION OF NURSING EDUCATIONAL OPrORTUNlTT GRANT 
"SEC. 863. The duration of a nursing educa-tional opportunity grant 
awarded under this part shall be the period required for completion 
by the recipient of his undergraduate course of study in the nursing 
school from which he received such grant, except that such period shall 
not exceed four academic years less any such period with respect to 
which the recipient has previously received payments under this part 
pursuant to a prior nursing educational opportunity grant (whether 
made by the same or another school of nursing). 
An educational 
oi^portunity grant awarded under this part shall entitle the recipient 
to payments only if he (1) is maintaming satisfactory progress in 
the course of nurse training which he is pursuing, according to the 
regularly prescribed standards and practices of the school of nursing 
from which he received the grant, and (2) is devoting essentially 
full time to such course of study, during the academic year, in attend-
ance at such school. Failure to be in attendance at the school of 
nursing during vacation periods or periods of military service, or 
during other periods during which the Secretary determines in accord-
ance with regulations that there is good cause for his nonattendance 
1238 
PUBLIC LAW 89-751-NOV. 3, 1966 
[SO STAT. 
(during which periods he shall receive no payments) shall not be 
deemed contrary to clause (2) of the preceding sentence. 
"SELECTION OF RECIPIENTS OF NURSING EDUCATIONAL OPPORTUNITY 
GRANTS 
"SEC. 864. (a) An individual shall be eligible for the award of a 
nursing educational opportunity grant under this part at any school 
of nursing which has made an agreement with the Secretary pursuant 
to section 867 (which school is hereinafter in this part referred to as an 
'eligible school'), if the individual makes application at the time and 
in the manner prescribed by such school. 
"(b) From among those eligible for nursing educational oppor-
tunity grants from a school of nursing for each fiscal year, such school 
shall, in accordance with the provisions of its agreement with the 
Secretary under section 867 and within the amounts allocated to the 
school for that purpose for such year under section 866, select individ-
uals who are to be awarded such grants and determine, pursuant to 
section 862, the amounts to be paid to them. A school of nursing shall 
not award a nursing educational opportunity grant to an individual 
unless it determines that— 
" (1) he has been accepted for enrollment as a full-time student 
at such school or, in the case of a student already attending such 
school, is in good standing and in full-time attendance there as an 
undergraduate student; 
"(2) he shows evidence of academic or creative promise and 
capability of maintaining good standing in his course of study; 
"(3) he is of exceptional financial need; and 
"(4) he would not, but for a nursing educational opportunity 
grant, be financially able to pursue a course of study at such 
school. 
" A L I X ) T M E N T O F N U R S I N G E D U C A T I O N A L OPPORTUNII'y GRANT FUNDS 
AMONG STATES 
"SEC. 865. (a) From the sums appropriated pursuant to the first 
sentence of section 861(b) for any fiscal year, the Secretary shall allot 
to each State an amount which bears the same ratio to the amount so 
appropriated as the number of persons enrolled on a full-time basis in 
schools of nursing in such State bears to the total number of persons 
enrolled on a full-time basis in schools of nursing in all the States. 
The number of persons enrolled on a full-time basis in schools of 
nursing for purposes of this section shall be determined by the Secre-
tary for the most recent year for which satisfactory data are available 
to him. 
"(b) If the total of the sums determined by the Secretary to be 
required under section 866 for any fiscal year for eligible schools of 
nursing in a State is less than the amount of the allotment to that 
State under paragraph (1) for that year, the Secretary may reallot 
the remaining amount from time to time, on such date or dates as he 
may fix, to other States in such manner as he determines will best assist 
in achieving the purposes of this part. 
a ALliOCATION OF ALLOTTED FUNDS TO SCHOOLS OF NURSING 
"SEC. 866. (a) The Secretary shall from time to time set dates by 
which eligible schools of nursing in any State must file applications 
for allocation to such schools of nursing educational opportunity grant 
funds from the allotment to that State (including any reallotment 
thereto) for any fiscal year pursuant to section 865(a), to be used for 
80 STAT. ] 
PUBLIC LAW 89-751-NOV. 3, 1966 
1239 
the purposes specified in the first sentence of section 861(b). 
Such 
allocations shall be made in accordance with equitable criteria which 
the Secretary shall establish and which shall be designed to achieve 
such distribution of such funds among eligible schools of nursing 
within a State as will most effectively carry out the purposes of this 
part. 
"(b) Payment shall be made from allocations under this section to 
schools of nursing as needed. 
u 
AGREEMENTS WITH SCHOOLS OF NURSING 
CONDITIONS 
"SEC. 867. A school of nursing, w^hich desires to obtain funds for 
nursing education opportunity grants under this part, shall enter into 
an agreement with the Secretary. 
Such agreement shall— 
" (1) provide that funds received by the school under this part 
will be used by it only for the purposes specified in, and in accord-
ance with, the provisions of this part ; 
"(2) provide that in determining w^hether an individual meets 
the requirements of section 864(b)(3) the school will (A) con-
sider the source of such individual's income and that of any indi-
vidual or individuals upon whom the student relies primarily for 
support, and (B) make an appropriate review of the assets of 
the student and of such individuals; 
"(8) provide that the school, in cooperation with other schools 
of nursing where appropriate, wnll make vigorous efforts to 
identify qualified youth of exceptional financial need and to 
encourage them to continue their education in the field of nursing 
beyond the secondary school through programs and activities 
such as— 
"(A) establishing or strengthening close working relation-
ships with secondary-school principals and guidance coun-
seling personnel with a view tow^ard motivating studies to 
complete secondary school and pursue post-secondary-school 
nursing educational opportunities, and 
"(B) making, to the extent feasible, conditional commit-
ments for nursing educational opportunity grants to qualified 
secondary school students with special emphasis on students 
enrolled in grade 11 or lower grades who show evidences of 
academic or creative promise; 
"(4) provide assurance that the school wnll continue to spend 
in its own scholarship and student-aid program, from sources 
other than funds received under this part, not less than the 
average expenditure per year made for that purpose during the 
most recent period of three fiscal years preceding the effective 
date of the agreement; 
"(5) include provisions designed to make nursing educational 
opportunity grants under this part reasonably available (to the 
extent of available funds) to all eligible students in the school 
in need thereof; and 
"(6) include such other provisions as may be necessary to 
protect the financial interest of the United States and promote 
the purposes of this part. 
" C O N T R A C T S TO E N C O U R A G E F U L L UTILIZATION OF NURSING EDUCATIONAL 
TALENT 
"SEC. 868. (a) To assist in achieving the purposes of this part the 
Secretary is authorized (without regard to section 3709 of the Revised 
Statutes (41 U.S.C. 5)) to enter into contracts, not to exceed $100,000 
1240 
PUBLIC LAW 89-752-NOV. 3, 1966 
[80 STAT. 
Post, 
p. 1610. 
per year, with State and local educational agencies and other public 
or nonprofit organizations and institutions for the purpose of— 
" (1) identifying qualified youths of exceptional financial need 
and encouraging them to complete secondary school and undertake 
post-secondary educational training in the field of nursing, or 
"(2) publicizing existing forms of financial aid for nursing 
students, including aid furnished under this part. 
" (b) There are her^y authorized to be appropriated such sums as 
may be necessary to carry out this section. 
u 
DEFINITION OF ACADEMIC YEAR 
"SEC. 869. As used in this part, the term 'academic year' means an 
academic year or its equivalent as defined in regulations of the 
Secretary." 
REORGANIZATION PLAN NUMBERED 3 OF 1 9 6 6 
SEC. 9. The amendments made by this Act shall be subject to the 
provisions of Reorganization Plan Numbered 3 of 1966. 
Approved November 3, 1966, 12:19 p.m. 
November 3, 1966 
[H. R. 14644] 
Higher Educa-
tion Amendments 
of 1966. 
Public Law 89-752 
AN ACT 
To amend the Higher Education Facilities Act of 1963, the Higher Education 
Act of 1965, and the National Defense Education Act of 1958. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That this Act may 
be cited ,as the "Higher Education Amendments of 1966". 
77 Stat. 364. 
20 u s e 711. 
EXTENSION OF GRANTS FOR CONSTRUCTION OF UNDERGRADUATE 
ACADEMIC FACILITIES 
SEC. 2. (a) Section 101(a) of the Higher Education Facilities Act 
of 1963 is amended by striking out "four succeeding fiscal years" and 
inserting in lieu thereof "seven succeeding fiscal years". 
(b) Section 101(b) of such Act is amended to read as follows: 
"(b) For the purpose of making grants under this title, there is 
hereby authorized to be appropriated the sum of $230,000,000 for the 
fiscal year ending June 30, 1964, and for the succeeding fiscal year, 
$460,000,000 for the fiscal year ending June 30, 1966, $475,000,000 for 
the fiscal year ending June 30, 1967, $728,000,000 for the fiscal year 
ending June 30, 1968, and $936,000,000 for the fiscal year ending 
June 30, 1969; but for the fiscal year ending June 30, 1970, and the 
succeeding fiscal year, only such sums may be appropriated as Con-
gress may hereafter authorize by law. 
In addition to the sums author-
ized to be appropriated for each fiscal year for which an appropriation 
is authorized by the preceding sentence, there is hereby authorized 
to be appropriated for that fiscal year for making such grants the 
difference (if any) between any specific sums authorized to be appro-