 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
   SUBCHAPTER IX--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION
 
                        Part A--Indian Education
 
         subpart 1--formula grants to local educational agencies
 
Sec. 7813. Amount of grants


(a) Amount of grant awards

                           (1) In general

        Except as provided in subsection (b) of this section and 
    paragraph (2), the Secretary shall allocate to each local 
    educational agency which has an approved application under this 
    subpart an amount equal to the product of--
            (A) the number of Indian children who are eligible under 
        section 7816 of this title and served by such agency; and
            (B) the greater of--
                (i) the average per-pupil expenditure of the State in 
            which such agency is located; or
                (ii) 80 percent of the average per-pupil expenditure in 
            the United States.

                            (2) Reduction

        The Secretary shall reduce the amount of each allocation 
    determined under paragraph (1) in accordance with subsection (e) of 
    this section.

(b) Minimum grant

                           (1) In general

        Notwithstanding subsection (e) of this section, a local 
    educational agency or an Indian tribe (as authorized under section 
    7812(b) of this title) that is eligible for a grant under section 
    7812 of this title, and a school that is operated or supported by 
    the Bureau of Indian Affairs that is eligible for a grant under 
    subsection (d) of this section, that submits an application that is 
    approved by the Secretary, shall, subject to appropriations, receive 
    a grant under this subpart in an amount that is not less than 
    $3,000.

                            (2) Consortia

        Local educational agencies may form a consortium for the purpose 
    of obtaining grants under this chapter.

                            (3) Increase

        The Secretary may increase the minimum grant under paragraph (1) 
    to not more than $4,000 for all grantees if the Secretary determines 
    such increase is necessary to ensure quality programs.

(c) ``Average per-pupil expenditure of a State'' defined

    For the purpose of this section, the term ``average per-pupil 
expenditure of a State'' means an amount equal to--
        (1) the sum of the aggregate current expenditures of all the 
    local educational agencies in the State, plus any direct current 
    expenditures by the State for the operation of such agencies, 
    without regard to the sources of funds from which such local or 
    State expenditures were made, during the second fiscal year 
    preceding the fiscal year for which the computation is made; divided 
    by
        (2) the aggregate number of children who were included in 
    average daily attendance for whom such agencies provided free public 
    education during such preceding fiscal year.

(d) Schools operated or supported by Bureau of Indian Affairs

    In addition to the grants awarded under subsection (a) of this 
section, and subject to paragraph (2), the Secretary shall allocate to 
the Secretary of the Interior an amount equal to the product of--
        (1) the total number of Indian children enrolled in schools that 
    are operated by--
            (A) the Bureau of Indian Affairs; or
            (B) an Indian tribe, or an organization controlled or 
        sanctioned by an Indian tribal government, for the children of 
        such tribe under a contract with, or grant from, the Department 
        of the Interior under the Indian Self-Determination Act [25 
        U.S.C. 450f et seq.] or the Tribally Controlled Schools Act of 
        1988 (part B of title V of the Augustus F. Hawkins-Robert T. 
        Stafford Elementary and Secondary School Improvement Amendments 
        of 1988) [25 U.S.C. 2501 et seq.]; and

        (2) the greater of--
            (A) the average per-pupil expenditure of the State in which 
        the school is located; or
            (B) 80 percent of the average per-pupil expenditure in the 
        United States.

(e) Ratable reductions

    If the sums appropriated for any fiscal year under section 7882(a) 
of this title are insufficient to pay in full the amounts determined for 
local educational agencies under subsection (a)(1) of this section and 
for the Secretary of the Interior under subsection (d) of this section, 
each of those amounts shall be ratably reduced.

(Pub. L. 89-10, title IX, Sec. 9113, as added Pub. L. 103-382, title I, 
Sec. 101, Oct. 20, 1994, 108 Stat. 3775.)

                       References in Text

    The Indian Self-Determination Act, referred to in subsec. (d)(1)(B), 
is title I of Pub. L. 93-638, Jan. 4, 1975, 88 Stat. 2206, as amended, 
which is classified principally to part A (Sec. 450f et seq.) of 
subchapter II of chapter 14 of Title 25, Indians. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 450 of Title 25 and Tables.
    The Tribally Controlled Schools Act of 1988, referred to in subsec. 
(d)(1)(B), is part B (Secs. 5201-5212) of title V of Pub. L. 100-297, 
Apr. 28, 1988, 102 Stat. 385, as amended, which is classified generally 
to chapter 27 (Sec. 2501 et seq.) of Title 25. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 2501 of Title 25 and Tables.

                  Section Referred to in Other Sections

    This section is referred to in sections 7816, 7817 of this title.
