20 USC 1062 - Grants to institutions

(a) General authorization; uses of funds 
From amounts available under section 1069f (a)(2)1 of this title in any fiscal year the Secretary shall make grants (under section 1063 of this title) to institutions which have applications approved by the Secretary (under section 1063a of this title) for any of the following uses:
(1) Purchase, rental, or lease of scientific or laboratory equipment for educational purposes, including instructional and research purposes.
(2) Construction, maintenance, renovation, and improvement in classroom, library, laboratory, and other instructional facilities, including purchase or rental of telecommunications technology equipment or services.
(3) Support of faculty exchanges, and faculty development and faculty fellowships to assist in attaining advanced degrees in their field of instruction.

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(4) Academic instruction in disciplines in which Black Americans are underrepresented.
(5) Purchase of library books, periodicals, microfilm, and other educational materials, including telecommunications program materials.
(6) Tutoring, counseling, and student service programs designed to improve academic success.
(7) Funds and administrative management, and acquisition of equipment for use in strengthening funds management.
(8) Joint use of facilities, such as laboratories and libraries.
(9) Establishing or improving a development office to strengthen or improve contributions from alumni and the private sector.
(10) Establishing or enhancing a program of teacher education designed to qualify students to teach in a public elementary or secondary school in the State that shall include, as part of such program, preparation for teacher certification.
(11) Establishing community outreach programs which will encourage elementary and secondary students to develop the academic skills and the interest to pursue postsecondary education.
(12) Other activities proposed in the application submitted pursuant to section 1063a of this title that
(A) contribute to carrying out the purposes of this part; and

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(B) are approved by the Secretary as part of the review and acceptance of such application.
(b) Endowment fund 

(1) In general 
An institution may use not more than 20 percent of the grant funds provided under this part to establish or increase an endowment fund at the institution.
(2) Matching requirement 
In order to be eligible to use grant funds in accordance with paragraph (1), the eligible institution shall provide matching funds from non-Federal sources, in an amount equal to or greater than the Federal funds used in accordance with paragraph (1), for the establishment or increase of the endowment fund.
(3) Comparability 
The provisions of part C of this subchapter regarding the establishment or increase of an endowment fund, that the Secretary determines are not inconsistent with this subsection, shall apply to funds used under paragraph (1).
(c) Limitations 

(1) No grant may be made under this chapter for any educational program, activity, or service related to sectarian instruction or religious worship, or provided by a school or department of divinity. For the purpose of this subsection, the term school or department of divinity means an institution whose program is specifically for the education of students to prepare them to become ministers of religion or to enter upon some other religious vocation, or to prepare them to teach theological subjects.
(2) Not more than 50 percent of the allotment of any institution may be available for the purpose of constructing or maintaining a classroom, library, laboratory, or other instructional facility.
[1] See References in Text note below.