FLEXIBLE USE OF FUNDS.

SEC. 444. FLEXIBLE USE OF FUNDS. Section 445 (42 U.S.C. 2755) is amended by adding at the end the following new subsection:“(d) Flexibility in the Event of a Major Disaster.—“(1) In general.—In the event of a major disaster, an eligible institution located in any area affected by such major disaster, as determined by the Secretary, may make payments under this part to disaster-affected students, for the period of time (not to exceed one academic year) in which the disaster-affected students were prevented from fulfilling the students’ work-study obligations as described in paragraph (2)(A)(iii), as follows:“(A) Payments may be made under this part to disaster-affected students in an amount equal to or less than the amount of wages such students would have been paid under this part had the students been able to complete the work obligation necessary to receive work study funds.“(B) Payments shall not be made to any student who was not eligible for work study or was not completing the work obligation necessary to receive work study funds under this part prior to the occurrence of the major disaster.“(C) Any payments made to disaster-affected students under this subsection shall meet the matching requirements of section 443, unless such matching requirements are waived by the Secretary.“(2) Definitions.—In this subsection:“(A) The term ‘disaster-affected student’ means a student enrolled at an eligible institution who—122 STAT. 3260“(i) received a work-study award under this section for the academic year during which a major disaster occurred;“(ii) earned Federal work-study wages from such eligible institution for such academic year;“(iii) was prevented from fulfilling the student’s work-study obligation for all or part of such academic year due to such major disaster; and“(iv) was unable to be reassigned to another work-study job.“(B) The term ‘major disaster’ has the meaning given such term in section 102(2) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122(2)).”.