TREATMENT OF TERRITORIES AND FREELY ASSOCIATED STATES.

SEC. 802. TREATMENT OF TERRITORIES AND FREELY ASSOCIATED STATES. (a) Elementary and Secondary Education Act of 1965.— Subsection (a) of section 1005 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 2711) is amended— (1) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and (2) by inserting after paragraph (2) the following: “(3) Competitive Grants.— (A) From amounts appropriated for purposes of carrying out this section, the Secretary shall reserve an amount equal to the amount described in subparagraph (B) for purposes of making competitive grants to local educational agencies in Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands. The Secretary shall make such grants according to the recommendations of the Pacific Regional Laboratory in Honolulu, Hawaii, which shall conduct a competition for such grants. “(B) The amount described in this subparagraph is the portion of the aggregate amount reserved in the fiscal year 1989 under sections 1005(a), 1291, 1404, 1405(a)(2)(A), and 1405(a)(2)(B) for the Trust Territory of the Pacific Islands that was attributable to the Republic of the Marshall Islands and the Federated States of Micronesia. “(C) Subject to subparagraph (D), grants awarded under this paragraph may only be used for— “(i) activities consistent with the purposes of— “(I) title I; “(II) the Adult Education Act; “(III) the Education of the Handicapped Act; “(IV) the Library Services and Construction Act; or “(V) the Dwight D. Eisenhower Mathematics and Science Education Act; “(ii) teacher training; “(iii) curriculum development; “(iv) instructional materials; or “(v) general school improvement and reform. “(D) Grants awarded under this paragraph may only be used to provide direct educational services. “(E) The Secretary shall provide 5 percent of amounts made available for grants under this paragraph to pay the administrative costs of the Pacific Regional Laboratory with respect to the program under this paragraph.”. 105 STAT. 361 (b) Adult Education Act.— The Adult Education Act is amended— (1) in sections 312(7) and 371(b)(7)(B)(i) (20 U.S.C. 1201a(7) and 1211(b)(7)(B)(i)) by striking “the Trust Territory of the Pacific Islands” and inserting “Palau (until the Compact of Free Association with Palau takes effect pursuant to section 101(a) of Public Law 99–658)”; and (2) in sections 313(b) and 361(a) (20 U.S.C. 1201b(b) and 1209a(a)) by striking “and the Trust Territory of the Pacific Islands” and inserting “the Federated States of Micronesia, the Republic of the Marshall Islands, and Palau”. (c) Star Schools Program.— Section 907(8) of the Star Schools Program Assistance Act (20 U.S.C. 4086(7)) is amended by striking “the Trust Territory of the Pacific Islands” and inserting “the Federated States of Micronesia, the Republic of the Marshall Islands, Palau”. (d) Education of the Handicapped.— The Education of the Handicapped Act is amended in— (1) section 602(a)(6) (20 U.S.C. 1401(a)(6)) by striking “or the Trust Territory of the Pacific Islands” and inserting “or Palau (until the Compact of Free Association with Palau takes effect pursuant to section 101(a) of Public Law 99–658)”; (2) section 611(a)(2) (20 U.S.C. 1411(a)(2)) by striking “and the Trust Territory of the Pacific Islands” and inserting “the Federated States of Micronesia, the Republic of the Marshall Islands, and Palau”; and (3) section 611(e)(1) (20 U.S.C. 1411(e)(1)) by striking “and the Trust Territory of the Pacific Islands” and inserting “the Federated States of Micronesia, the Republic of the Marshall Islands, and Palau (until the Compact of Free Association with Palau takes effect pursuant to section 101(a) of Public Law 99–658)”. (e) Library Services and Construction Act.— The Library Services and Construction Act is amended in— (1) section 3(g) (20 U.S.C. 351a(g)) by striking “or the Trust Territory of the Pacific Islands” and inserting “Palau (until the Compact of Free Association with Palau takes effect pursuant to section 101(a) of Public Law 99–658)”; (2) section 5(a)(3) (20 U.S.C. 351c(a)(3)) by striking “and the Trust Territory of the Pacific Islands” each place such term appears and inserting “Palau (until the Compact of Free Association with Palau takes effect pursuant to section 101(a) of Public Law 99–658)”; (3) section 7(a) (20 U.S.C. 351e(a)) by striking “the Trust Territory of the Pacific Islands” and inserting “Palau (until the Compact of Free Association with Palau takes effect pursuant to section 101(a) of Public Law 99–658)”; and 105 STAT. 362 (4) section 7(b) (20 U.S.C. 351e(b)) by striking “and the Trust Territory of the Pacific Islands” each place such term appears and inserting “the Commonwealth of the Northern Mariana Islands and Palau (until the Compact of Free Association with Palau takes effect pursuant to section 101(a) of Public Law 99- 658)”.