USE OF FUNDS.

SEC. 307. USE OF FUNDS.(a) Scholarships.—(1) In general.—Subject to paragraphs (2) and (3), a grantee shall use the grant funds to provide eligible students with scholarships to pay the tuition, fees, and transportation expenses, if any, to enable them to attend the District of Columbia private elementary school or secondary school of their choice. Each grantee shall ensure that the amount of any tuition or fees charged by a school participating in the grantee’s program under this title to an eligible student participating in the program does not exceed the amount of tuition or fees that the school customarily charges to students who do not participate in the program.(2) Payments to parents.—A grantee shall make scholarship payments under the program under this title to the parent of the eligible student participating in the program, in a manner which ensures that such payments will be used for the payment of tuition, fees, and transportation expenses (if any), in accordance with this title.(3) Amount of assistance.—(A) Varying amounts permitted.—Subject to the other requirements of this section, a grantee may award scholarships in larger amounts to those eligible students with the greatest need.(B) Annual limit on amount.—The amount of assistance provided to any eligible student by a grantee under a program under this title may not exceed $7,500 for any academic year.(4) Continuation of scholarships.—Notwithstanding section 312(3)(B), an eligible entity receiving a grant under this title may award a scholarship, for the second or any 118 STAT. 130 succeeding year of an eligible student’s participation in a program under this title, to a student who comes from a household whose income does not exceed 200 percent of the poverty line.(b) Administrative Expenses.—A grantee may use not more than 3 percent of the amount provided under the grant each year for the administrative expenses of carrying out its program under this title during the year, including—(1) determining the eligibility of students to participate;(2) providing information about the program and the schools involved to parents of eligible students;(3) selecting students to receive scholarships;(4) determining the amount of scholarships and issuing the scholarships to eligible students;(5) compiling and maintaining financial and programmatic records; and(6) providing funds to assist parents in meeting expenses that might otherwise preclude the participation of their child in the program.