(1) In general 
Except as provided in paragraph (2), the amount of a scholarship awarded under this division for any academic year shall be equal to 100 percent of the amount of the Federal Pell Grant for which the recipient is eligible for the academic year.

(2) Adjustment for insufficient appropriations 
If, after the Secretary determines the total number of eligible applicants for an academic year in accordance with section 1070a–33 of this title, funds available to carry out this division for the academic year are insufficient to fully fund all awards under this division for the academic year, the amount of the scholarship paid to each student under this division shall be reduced proportionately.