AMENDMENTS TO PART C.

SEC. 304. AMENDMENTS TO PART C. (a) Program Consolidation.— Part C of title III of the Act (20 U.S.C. 1064 et seq.) is amended— (1) by amending the heading of such part to read as follows: “Part C— Endowment Challenge Grants for Institutions Eligible for Assistance Under Part A or Part B”; (2) by striking section 331; and (3) by redesignating section 332 as section 331. (b) Endowment Challenge Grants.— Section 331 of the Act (20 U.S.C. 1065) (as redesignated in subsection (a)(3)) is amended— 106 STAT. 477 (1) in subsection (a)— (A) in paragraph (1), by striking “of higher education”; and (B) in paragraph (2), by inserting at the end thereof the following new subparagraph: “(D) (i) The term ‘eligible institution’ means an institution that is an— “(I) eligible institution under part A or would be considered to be such an institution if section 312(b)(1)(C) referred to a postgraduate degree rather than a bachelor’s degree; “(II) institution eligible for assistance under part B or would be considered to be such an institution if section 324 referred to a postgraduate degree rather than a baccalaureate degree; or “(III) institution of higher education that makes a substantial contribution to postgraduate medical educational opportunities for minorities and the economically disadvantaged. (ii) The Secretary may waive the requirements of subclauses (I) and (II) of clause (i) with respect to a post-graduate degree in the case of any institution otherwise eligible under clause (i) for an endowment challenge grant upon determining that the institution makes a substantial contribution to medical education opportunities for minorities and the economically disadvantaged.”; (2) in subsection (b)(1)— (A) by inserting “endowment” before “challenge grants”; and (B) by striking “of higher education”; and (3) in subsection (b)(2), by amending subparagraphs (B) and (C) to read as follows: “(B) The Secretary may make a grant under this part to an eligible institution under the following circumstances: “(i) In any fiscal year in which the amount appropriated to carry out this part is less than $15,000,000, the institution— “(I) may apply for a grant in an amount not exceeding $500,000; and “(II) shall have deposited in its endowment fund established under this section an amount which is equal to one-half of the amount of such grant. “(ii) In any fiscal year in which the amount appropriated to carry out this part is equal to or greater than $15,000,000 but less than $25,000,000, the institution— “(I) may apply for a grant in an amount not exceeding $1,000,000; and “(II) shall have deposited in its endowment fund established under this section an amount which is equal to one-half of the amount of such grant. “(iii) In any fiscal year in which the amount appropriated to carry out this part is equal to or greater than $25,000,000, the institution may apply for a grant in an amount not to exceed $1,500,000 if such institution has deposited in its endowment fund established 106 STAT. 478under this section an amount which is equal to one-half of the amount of such grant. “(C) (i) Except as provided in clause (ii), if the appropriation for this part in a fiscal year is $20,000,000 or less, an eligible institution of higher education that is awarded a grant under subsection (b)(2)(B) of this section shall not be eligible to reapply for a grant under subsection (b)(2)(B) of this section during the 10 years immediately following the period that such institution received such a grant. “(ii) If the appropriation for this part in any fiscal year is greater than $20,000,000, an eligible institution of higher education that is awarded a grant under subsection (b)(2)(B) of this section shall not be eligible to reapply for a grant under subsection (b)(2)(B) of this section during the 5 years immediately following the period that such institution received such a grant. This provision shall apply for the fiscal year in which the appropriation is greater than $20,000,000 and subsequent fiscal years, regardless of the appropriation in those fiscal years.”; (4) in subsection (b)(4)(A), by striking “section 331(a)(1)” and inserting “subsection (a)(2)(D) of this section”; (5) in subsection (b)(4)(B), by striking “a challenge grant under this section” and inserting “an endowment challenge grant under this section”; (6) by amending paragraph (5) of subsection (b) to read as follows: “(5) an endowment challenge grant awarded under this section to an eligible institution shall be in an amount which is not less than $50,000 in any fiscal year.”. (7) by amending paragraph (1) of subsection (f) to read as follows: “(1) give priority to an applicant that is receiving assistance under part A or part B or has received a grant under part A or part B of this title within the 5 fiscal years preceding the fiscal year in which the applicant is applying for a grant under this section;”; and (8) in subsection (g), by inserting before the period at the end of the first sentence the following: “, including a description of the long- and short-term plans for raising and using the funds under this part”.