25 U.S.C. § 3306 — Limitations on use of funds

(a) Use for religious purposes. Funds made available under this subchapter may not be used for study at a school or department of divinity, religious worship, or sectarian activity.

(b) Interest on funds. Interest or other income earned on these funds may be used only for purposes for which the funds themselves may be used.

(c) Payments. (1) Unless this subsection provides otherwise, the Secretary^* must pay a grantee in two installments. The first must be paid by October 1 of each fiscal year and must equal one-half of the amount paid in the preceding fiscal year to the grantee or to a contractor that elected to have this subchapter apply. The second payment is the rest of the amount the grantee or contractor is entitled to for that fiscal year, and must be paid by January 1.

(2) New grantees. If a tribe received no payment under this subchapter in the preceding fiscal year, the full amount calculated for the fiscal year must be paid by January 1.

(d) Investment of funds. (1) Interest or investment income earned after funds are paid to an Indian tribe^* or tribal organization and before they are spent for the required purpose belongs to the tribe or organization. Federal officers and employees may not count that income when deciding whether, or how much, Federal assistance to provide under another Federal law.

(2) A tribe or tribal organization may invest the funds only in United States obligations or in obligations or securities guaranteed or insured by the United States. It may deposit the funds only in accounts insured by a United States agency or instrumentality.

(e) Recoveries. When a Federal agency determines under-recovery or over-recovery for other funds, it may not count funds received under this subchapter, regardless of their source.