GRANTS AUTHORIZED.

SEC. 5204. GRANTS AUTHORIZED. (a) In General.— (1) The Secretary shall provide grants to Indian tribes, and tribal organizations, that— (A) operate tribally controlled schools which are eligible for assistance under this part, and (B) submit to the Secretary applications for such grants. (2) Grants provided under this part shall be deposited into the general operating fund of the tribally controlled school with respect to which the grant is provided. (3)(A) Except as otherwise provided in this paragraph, grants provided under this part shall be used to defray, at the discretion of the school board of the tribally controlled school with respect to which the grant is provided, any expenditures for educat ion-related activities for which any funds that compose the grant may be used under the laws described in section 5205(a), including but not limited to, expenditures for— (i) school operations, academic, educational, residential, guidance and counseling, and administrative purposes, and (ii) support services for the school, including transportation. (B) Grants provided under this part may, at the discretion of the school board of the tribally controlled school with respect to which such grant is provided, be used to defray operation and maintenance expenditures for the school if any funds for the operation and maintenance of the school are allocated to the school under the provisions of any of the laws described in section 5205(a). (C) If funds allocated to a tribally controlled school under chapter 1 of title 1 of the Elementary and Secondary Education Act of 1965, the Education of the Handicapped Act, or any Federal education law other than title XI of the Education Amendments of 1978 are included in a grant provided under this part, a portion of the grant equal to the amount of the funds allocated under such law shall be expended only for those activities for which funds provided under such law may be expended under the terms of such law. (b) Limitations.— (1) No more than one grant may be provided under this part with respect to any Indian tribe or tribal organization for any fiscal year. (2) Funds provided under any grant made under this part may not be used in connection with religious worship or sectarian instruction. 102 STAT. 387 (3) Funds provided under any grant made under this part may not be expended for administrative costs (as defined under section 1128A(e)(1) of the Education Amendments of 1978) in excess of the amount generated for such costs under section 1128A of such Act. (c) Limitation on Transfer of Funds Among Schoolsites.— (1) In the case of a grantee which operates schools at more than one schoolsite, the grantee may expend no more than the lesser of— (A) 10 percent of the funds allocated for a schoolsite under section 1128 of the Education Amendments of 1978, or (B) $400,000 of such funds, at any other schoolsite. (2) For purposes of this subsection, the term “schoolsite” means the physical location and the facilities of an elementary or secondary educational or residential program operated by, or under contract with, the Bureau for which a discreet student count is identified under the funding formula established under section 1128 of the Education Amendments of 1978. (d) No Requirement To Accept Grants.—Nothing in this part may be construed— (1) to require a tribe or tribal organization to apply for or accept, or (2) to allow any person to coerce any tribe or tribal organization into applying for, or accepting, a grant under this part to plan, conduct, and administer all of, or any portion of, any Bureau program. Such applications, and the timing of such applications, shall be strictly voluntary. Nothing in this part may be construed as allowing or requiring any grant with any entity other than the entity to which the grant is provided. (e) No Effect on Federal Responsibility.—Grants provided under this part shall not terminate, modify, suspend, or reduce the responsibility of the Federal Government to provide a program. (f) Retrocession.—Whenever an Indian tribe requests retrocession of any program for which assistance is provided under this part, such retrocession shall become effective upon a date specified by the Secretary not more than 120 days after the date on which the tribe requests the retrocession, or such later date as may be mutually agreed upon by the Secretary and the tribe. If such a program is retroceded, the Secretary shall provide to any Indian tribe served by such program at least the same quantity and quality of services that would have been provided under such program at the level of funding provided under this part prior to the retrocession. (g) No Termination for Administrative Convenience.—Grants provided under this Act may not be terminated, modified, suspended, or reduced only for the convenience of the administering agency.