 
      CHAPTER 28--HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE
 
                    SUBCHAPTER IV--STUDENT ASSISTANCE
 
   Part A--Grants to Students in Attendance at Institutions of Higher 
                                Education
 
    subpart 4--leveraging educational assistance partnership program
 
Sec. 1070c-3a. Special leveraging educational assistance 
        partnership program
        

(a) In general

    From amounts reserved under section 1070c(b)(2) of this title for 
each fiscal year, the Secretary shall--
        (1) make allotments among States in the same manner as the 
    Secretary makes allotments among States under section 1070c-1 of 
    this title; and
        (2) award grants to States, from allotments under paragraph (1), 
    to enable the States to pay the Federal share of the cost of the 
    authorized activities described in subsection (c) of this section.

(b) Applicability rule

    The provisions of this subpart which are not inconsistent with this 
section shall apply to the program authorized by this section.

(c) Authorized activities

    Each State receiving a grant under this section may use the grant 
funds for--
        (1) making awards that--
            (A) supplement grants received under section 1070c-2(b)(2) 
        of this title by eligible students who demonstrate financial 
        need; or
            (B) provide grants under section 1070c-2(b)(2) of this title 
        to additional eligible students who demonstrate financial need;

        (2) providing scholarships for eligible students--
            (A) who demonstrate financial need; and
            (B) who--
                (i) desire to enter a program of study leading to a 
            career in--
                    (I) information technology;
                    (II) mathematics, computer science, or engineering;
                    (III) teaching; or
                    (IV) another field determined by the State to be 
                critical to the State's workforce needs; or

                (ii) demonstrate merit or academic achievement; and

        (3) making awards that--
            (A) supplement community service work-study awards received 
        under section 1070c-2(b)(2) of this title by eligible students 
        who demonstrate financial need; or
            (B) provide community service work-study awards under 
        section 1070c-2(b)(2) of this title to additional eligible 
        students who demonstrate financial need.

(d) Maintenance of effort requirement

    Each State receiving a grant under this section for a fiscal year 
shall provide the Secretary an assurance that the aggregate amount 
expended per student or the aggregate expenditures by the State, from 
funds derived from non-Federal sources, for the authorized activities 
described in subsection (c) of this section for the preceding fiscal 
year were not less than the amount expended per student or the aggregate 
expenditures by the State for the activities for the second preceding 
fiscal year.

(e) Federal share

    The Federal share of the cost of the authorized activities described 
in subsection (c) of this section for any fiscal year shall be not more 
than 33\1/3\ percent.

(f) Special rule

    Notwithstanding subsection (d) of this section, for purposes of 
determining a State's share of the cost of the authorized activities 
described in subsection (c) of this section, the State shall consider 
only those expenditures from non-Federal sources that exceed its total 
expenditures for need-based grants, scholarships, and work-study 
assistance for fiscal year 1999 (including any such assistance provided 
under this subpart).

(g) Use of funds for administrative costs prohibited

    A State receiving a grant under this section shall not use any of 
the grant funds to pay administrative costs associated with any of the 
authorized activities described in subsection (c) of this section.

(Pub. L. 89-329, title IV, Sec. 415E, as added Pub. L. 105-244, title 
IV, Sec. 407(c)(2), Oct. 7, 1998, 112 Stat. 1666; amended Pub. L. 106-
554, Sec. 1(a)(1) [title III, Sec. 316(2), (3)], Dec. 21, 2000, 114 
Stat. 2763, 2763A-47.)


                            Prior Provisions

    A prior section 415E of Pub. L. 89-329 was renumbered section 415F 
and is classified to section 1070c-4 of this title.
    Another prior section 415E of Pub. L. 89-329 was classified to 
section 1070c-4 of this title prior to repeal by Pub. L. 96-374.


                               Amendments

    2000--Subsec. (c). Pub. L. 106-554, Sec. 1(a)(1) [title III, 
Sec. 316(2)], which directed amendment of section 415 of the Higher 
Education Act of 1965 in section 415E by adding subsec. (c) and striking 
out former subsec. (c), was executed to this section, which is section 
415E of the Higher Education Act of 1965, to reflect the probable intent 
of Congress. Prior to amendment, subsec. (c) listed the activities for 
which States receiving a grant under this section were authorized to use 
the grant funds.
    Subsecs. (f), (g). Pub. L. 106-554, Sec. 1(a)(1) [title III, 
Sec. 316(3)], which directed amendment of section 415 of the Higher 
Education Act of 1965 in section 415E by adding subsecs. (f) and (g), 
was executed by adding subsecs. (f) and (g) to this section, which is 
section 415E of the Higher Education Act of 1965, to reflect the 
probable intent of Congress.


                             Effective Date

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

                  Section Referred to in Other Sections

    This section is referred to in section 1070c of this title.
