20 U.S.C. § 130aa–3 — Withdrawals and expenditures

(a) Howard University can withdraw and spend its endowment fund income to cover expenses necessary to run the school — things like operations and maintenance, administration, academic and support staff, construction and renovation, community and student services, technical assistance, and research. None of the endowment income or corpus can go toward supporting the University's executive officers, or toward any commercial venture started after January 1, 1981. Except as allowed under subsection (b), Howard can't, in total, withdraw or spend more than 50 percent of all the endowment income it has earned up to that point. (b) The Secretary can let Howard withdraw or spend more than that 50 percent limit whenever Howard shows the extra spending is necessary because of (A) a financial emergency, like a possible insolvency or a temporary cash shortage; (B) a life-threatening situation caused by a natural disaster or arson; or (C) another unusual or urgent circumstance. (c) (1) If Howard withdraws or spends more endowment income than this section allows, it must repay the Secretary an amount equal to 50 percent of the excess — representing the federal government's share. (2) Howard can never withdraw or spend the endowment fund corpus at all. If it does, it must repay the Secretary 50 percent of the amount taken (the federal share), plus any income that money earned.