(a) In general From amounts reserved under section
1070c (b)(2) of this title for each fiscal year, the Secretary shall
(1) make allotments among States in the same manner as the Secretary makes allotments among States under section
1070c–1 of this title; and
(2) award grants to States, from allotments under paragraph (1), to enable the States to pay the Federal share of the cost of the authorized activities described in subsection (c) of this section.
(b) Applicability rule
The provisions of this subpart which are not inconsistent with this section shall apply to the program authorized by this section.
(c) Authorized activities Each State receiving a grant under this section may use the grant funds for
(1) making awards that
(A) supplement grants received under section
1070c–2 (b)(2) of this title by eligible students who demonstrate financial need; or
(B) provide grants under section
1070c–2 (b)(2) of this title to additional eligible students who demonstrate financial need;
(2) providing scholarships for eligible students
(A) who demonstrate financial need; and
(B) who
(i) desire to enter a program of study leading to a career in
(I) information technology;
(II) mathematics, computer science, or engineering;
(III) teaching; or
(IV) another field determined by the State to be critical to the States workforce needs; or
(ii) demonstrate merit or academic achievement; and
(3) making awards that
(A) supplement community service work-study awards received under section
1070c–2 (b)(2) of this title by eligible students who demonstrate financial need; or
(B) provide community service work-study awards under section
1070c–2 (b)(2) of this title to additional eligible students who demonstrate financial need.
(d) Maintenance of effort requirement Each State receiving a grant under this section for a fiscal year shall provide the Secretary an assurance that the aggregate amount expended per
student or the aggregate expenditures by the State, from funds derived from non-Federal sources, for the authorized activities described in subsection (c) of this section for the preceding fiscal year were not less than the amount expended per
student or the aggregate expenditures by the State for the activities for the second preceding fiscal year.
(e) Federal share
The Federal share of the cost of the authorized activities described in subsection (c) of this section for any fiscal year shall be not more than 331/3 percent.
(f) Special rule
Notwithstanding subsection (d) of this section, for purposes of determining a States share of the cost of the authorized activities described in subsection (c) of this section, the State shall consider only those expenditures from non-Federal sources that exceed its total expenditures for need-based grants, scholarships, and work-study assistance for fiscal year 1999 (including any such assistance provided under this subpart).
(g) Use of funds for administrative costs prohibited
A State receiving a grant under this section shall not use any of the grant funds to pay administrative costs associated with any of the authorized activities described in subsection (c) of this section.
