25 U.S.C. § 2502 — Grants authorized

(a) In general. (1) Eligibility. The Secretary^* must provide grants to Indian^* tribes and tribal organizations that—(A) operate contract schools under title XI of the Education Amendments of 1978 and notify the Secretary that they elect to operate the schools with assistance under this chapter instead of continuing the schools as contract schools; (B) operate other tribally controlled schools eligible for assistance under this chapter and submit applications for grants to the Secretary that their tribal governing bodies approve; or (C) elect to assume operation of Bureau^*-funded schools with assistance under this chapter and submit applications for grants to the Secretary that their tribal governing bodies approve. (2) Deposit of funds. Grants must be deposited into the general operating fund of the tribally controlled school^* for which the grant is made. (3) Use of funds. (A) In general. Unless this paragraph provides otherwise, the school board may use a grant, at its discretion, to pay for education-related activities for which the laws described in section 2504(a) allow the grant’s funds to be used. This includes spending for (i) school operations and academic, educational, residential, guidance and counseling, and administrative purposes; and (ii) support services for the school, including transportation. (B) Exception. At the school board’s discretion, the grant may pay the school’s operations and maintenance expenses if funds for operating and maintaining the school are allocated to it under one of the laws described in section 2504(a). (b) Limitations. (1) One grant per tribe or organization per fiscal year. No more than one grant may be provided under this chapter for an Indian tribe^* or tribal organization^* in any fiscal year. (2) Nonsectarian use. Grant funds may not be used for religious worship or sectarian instruction. (3) Administrative costs limitation. Grant funds may not be spent on administrative costs, as defined in section 1128(h)(1) of the Education Amendments of 1978, above the amount generated for those costs under section 1128 of that Act. (c) Limitation on transfer of funds among school sites. (1) In general. If a grantee operates schools at more than one school site, it may spend at any one site no more than the lesser of (A) 10 percent of the funds allocated for another school site under section 1128 of the Education Amendments of 1978; or (B) $400,000 of the funds allocated for another school site. (2) Definition of school site. For this subsection, “school site” means the physical location and facilities of an elementary or secondary educational or residential program operated by, or under contract or grant with, the Bureau, for which a discreet student count is identified under the funding formula established under section 1127 of the Education Amendments of 1978. This section does not define “discreet.” (d) No requirement to accept grants. Nothing in this chapter may be interpreted (1) to require a tribe or tribal organization to apply for or accept, or (2) to allow any person to coerce a tribe or tribal organization to apply for or accept, a grant under this chapter to plan, conduct, and administer all or any part of a Bureau program. Applying and deciding when to apply must be strictly voluntary. Nothing in this chapter may be interpreted to allow or require a grant with an entity other than the entity receiving the grant. (e) No effect on Federal responsibility. Grants must not terminate, modify, suspend, or reduce the Federal Government’s responsibility to provide a program. (f) Retrocession. (1) In general. Whenever a tribal governing body^* requests retrocession of a program receiving assistance under this chapter, the retrocession must take effect on a date specified by the Secretary no later than 120 days after the request. A later date may be specified if the Secretary and the tribal governing body mutually agree. If the program is retroceded, the Secretary must provide each Indian tribe served by the program at least the same quantity and quality of services that would have been provided under the program at the funding level provided under this chapter before retrocession. (2) Status after retrocession. The tribe requesting retrocession must specify whether the retrocession is to status as a Bureau-operated school or as a school operated under contract under the Indian Self-Determination and Education Assistance Act. (3) Transfer of equipment and materials. Unless the Secretary decides otherwise, the tribe or tribal organization operating the program to be retroceded must transfer the existing equipment and materials to the Secretary, or to the tribe or tribal organization that will operate the program as a contract school, if the equipment and materials were acquired (A) with assistance under this chapter; or (B) when the tribe or organization assumed operation of the program under this chapter, if the school was a Bureau-funded school under title XI of the Education Amendments of 1978 before receiving assistance under this chapter. (g) Prohibition of termination for administrative convenience. Grants may not be terminated, modified, suspended, or reduced solely for the convenience of the administering agency.