 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER III--INSTITUTIONAL AID
 
                   Part A--Strengthening Institutions
 
Sec. 1057. Program purpose


(a) General authorization

    The Secretary shall carry out a program, in accordance with this 
part, to improve the academic quality, institutional management, and 
fiscal stability of eligible institutions, in order to increase their 
self-sufficiency and strengthen their capacity to make a substantial 
contribution to the higher education resources of the Nation.

(b) Grants awarded; special consideration

    (1) From the sums available for this part under section 1068h(a)(1) 
of this title, the Secretary may award grants to any eligible 
institution with an application approved under section 1068 \1\ of this 
title in order to assist such an institution to plan, develop, or 
implement activities that promise to strengthen the institution.
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    \1\ See References in Text note below.
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    (2) Special consideration shall be given to any eligible 
institution--
        (A) which has endowment funds (other than any endowment fund 
    built under section 1065 of this title as in effect on September 30, 
    1986, and under part B of this subchapter) the market value of 
    which, per full-time equivalent student, is less than the average 
    current market value of the endowment funds, per full-time 
    equivalent student (other than any endowment fund built under 
    section 1065 of this title as in effect on September 30, 1986, and 
    under part B of this subchapter) at similar institutions; or
        (B) which has expenditures per full-time equivalent student for 
    library materials which is less than the average of the expenditures 
    for library materials per full-time equivalent student by other 
    similarly situated institutions.

    (3) Special consideration shall be given to applications which 
propose, pursuant to the institution's plan, to engage in--
        (A) faculty development;
        (B) funds and administrative management;
        (C) development and improvement of academic programs;
        (D) acquisition of equipment for use in strengthening funds 
    management and academic programs;
        (E) joint use of facilities such as libraries and laboratories; 
    and
        (F) student services.

(c) Authorized activities

    Grants awarded under this section shall be used for 1 or more of the 
following activities:
        (1) Purchase, rental, or lease of scientific or laboratory 
    equipment for educational purposes, including instructional and 
    research purposes.
        (2) Construction, maintenance, renovation, and improvement in 
    classrooms, libraries, laboratories, and other instructional 
    facilities, including the integration of computer technology into 
    institutional facilities to create smart buildings.
        (3) Support of faculty exchanges, faculty development, and 
    faculty fellowships to assist in attaining advanced degrees in the 
    field of instruction of the faculty.
        (4) Development and improvement of academic programs.
        (5) Purchase of library books, periodicals, and other 
    educational materials, including telecommunications program 
    material.
        (6) Tutoring, counseling, and student service programs designed 
    to improve academic success.
        (7) Funds management, administrative management, and acquisition 
    of equipment for use in strengthening funds management.
        (8) Joint use of facilities, such as laboratories and libraries.
        (9) Establishing or improving a development office to strengthen 
    or improve contributions from alumni and the private sector.
        (10) Establishing or improving an endowment fund.
        (11) Creating or improving facilities for Internet or other 
    distance learning academic instruction capabilities, including 
    purchase or rental of telecommunications technology equipment or 
    services.
        (12) Other activities proposed in the application submitted 
    pursuant to subsection (c) \2\ that--
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    \2\ So in original.
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            (A) contribute to carrying out the purposes of the program 
        assisted under this part; and
            (B) are approved by the Secretary as part of the review and 
        acceptance of such application.

(d) Endowment fund

                           (1) In general

        An eligible institution may use not more than 20 percent of the 
    grant funds provided under this part to establish or increase an 
    endowment fund at such institution.

                      (2) Matching requirement

        In order to be eligible to use grant funds in accordance with 
    paragraph (1), the eligible institution shall provide matching funds 
    from non-Federal sources, in an amount equal to or greater than the 
    Federal funds used in accordance with paragraph (1), for the 
    establishment or increase of the endowment fund.

                          (3) Comparability

        The provisions of part C of this subchapter, regarding the 
    establishment or increase of an endowment fund, that the Secretary 
    determines are not inconsistent with this subsection, shall apply to 
    funds used under paragraph (1).

(Pub. L. 89-329, title III, Sec. 311, as added Pub. L. 99-498, title 
III, Sec. 301(a), Oct. 17, 1986, 100 Stat. 1291; amended Pub. L. 100-50, 
Sec. 2(a)(1), June 3, 1987, 101 Stat. 335; Pub. L. 105-244, title III, 
Secs. 301(c)(1), 303(a), Oct. 7, 1998, 112 Stat. 1636, 1638.)

                       References in Text

    Section 1068 of this title, referred to in subsec. (b)(1), was in 
the original a reference to section 351 of Pub. L. 89-329 which was 
translated as if it referred to section 391 of Pub. L. 89-329 to reflect 
the probable intent of Congress. Pub. L. 105-244, title III, 
Sec. 301(a)(2), (7), Oct. 7, 1998, 112 Stat. 1636, renumbered sections 
351 and 1021 of Pub. L. 89-329 as sections 391 and 351, respectively, of 
Pub. L. 89-329, and those sections are classified to sections 1067a and 
1068, respectively, of this title.


                            Prior Provisions

    A prior section 1057, Pub. L. 89-329, title III, Sec. 311, as added 
Pub. L. 96-374, title III, Sec. 301, Oct. 3, 1980, 94 Stat. 1391, 
enumerated purposes and established grant authority for program to 
strengthen eligible institutions, prior to the general revision of this 
subchapter by Pub. L. 99-498.


                               Amendments

    1998--Subsec. (b)(1). Pub. L. 105-244, Sec. 301(c)(1), substituted 
``section 1068h(a)(1)'' for ``section 1069f(a)(1)''.
    Subsecs. (c), (d). Pub. L. 105-244, Sec. 303(a), added subsecs. (c) 
and (d).
    1987--Subsec. (b)(1). Pub. L. 100-50 substituted ``section 
1069f(a)(1) of this title'' for ``section 1069d(a)(1) of this title''.


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-244 effective Oct. 1, 1998, except as 
otherwise provided in Pub. L. 105-244, see section 3 of Pub. L. 105-244, 
set out as a note under section 1001 of this title.


                    Effective Date of 1987 Amendment

    Amendment by Pub. L. 100-50 effective as if enacted as part of the 
Higher Education Amendments of 1986, Pub. L. 99-498, see section 27 of 
Pub. L. 100-50, set out as a note under section 1001 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1068, 1068b, 1068c of this 
title.
