ENDOWMENT CHALLENGE GRANTS.

SEC. 305. ENDOWMENT CHALLENGE GRANTS. Section 331(b) (20 U.S.C. 1065(b)) is amended— (1) in paragraph (1), by striking “360” and inserting “399”; and (2) in paragraph (2), by striking subparagraphs (B) and(C) and inserting the following: “(B) The Secretary may make a grant under this part to an eligible institution in any fiscal year if the institution— “(i) applies for a grant in an amount not exceeding $500,000; and “(ii) has deposited in the eligible institution’s endowment fund established under this section an amount which is equal to ½ of the amount of such grant. “(C) An eligible institution of higher education that is awarded a grant under subparagraph (B) shall not be eligible to receive an additional grant under subparagraph (B) until 10 years after the date on which the grant period terminates.”.