25 U.S.C. § 1812 — Grant adjustments

**(a) Formula for allocation** (1) If the sums appropriated for any fiscal year pursuant to [section 1810(a)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title25-section1810/a/2&num=0&edition=prelim) for grants under [section 1807 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title25-section1807&num=0&edition=prelim) are not sufficient to pay in full the total amount which approved applicants are eligible to receive under such section for such fiscal year— (A) the Secretary shall first allocate to each such applicant which received funds under [section 1807 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title25-section1807&num=0&edition=prelim) for the preceding fiscal year an amount equal to 95 percent of the payment received by such applicant under [section 1808 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title25-section1808&num=0&edition=prelim); (B) the Secretary shall next allocate to applicants who did not receive funds under such section for the preceding fiscal year an amount equal to 100 per centum of the product of— (i) the per capita payment for the preceding fiscal year; and (ii) the applicant’s projected Indian student count for the academic year for which payment is being made; in the order in which such applicants have qualified for assistance in accordance with such section so that no amount shall be allocated to a later qualified applicant until each earlier qualified applicant is allocated an amount equal to such product; and (C) if additional funds remain after making the allocations required by subparagraphs (A) and (B), the Secretary shall allocate such funds by— (i) ratably increasing the amounts of the grants determined under subparagraph (A) until such grants are equal to 100 per centum of the product described in such subparagraph; and (ii) then ratably increasing the amounts of both (I) the grants determined under subparagraph (A), as increased under clause (i) of this subparagraph, and (II) the grants determined under subparagraph (B). (2) For purposes of paragraph (1) of this subsection, the term “per capita payment” for any fiscal year shall be determined by dividing the amount available for grants to tribally controlled colleges or universities under [section 1807 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title25-section1807&num=0&edition=prelim) for such fiscal year by the sum of the Indian student counts of such colleges or universities for such fiscal year. The Secretary shall, on the basis of the most satisfactory data available, compute the Indian student count for any fiscal year for which such count was not used for the purpose of making allocations under this subchapter. **(b) Ratable reduction or increase in funds available for existing schools; excess funds; definition** (1) If the sums appropriated for any fiscal year for grants under [section 1807 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title25-section1807&num=0&edition=prelim) are not sufficient to pay in full the total amount of the grants determined pursuant to subsection (a)(1)(A), the amount which applicants described in such subsection are eligible to receive under [section 1807 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title25-section1807&num=0&edition=prelim) for such fiscal year shall be ratably reduced. (2) If any additional funds become available for making payments under [section 1807 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title25-section1807&num=0&edition=prelim) for any fiscal year to which subsection (a) or paragraph (1) of this subsection applies, such additional amounts shall be allocated by first increasing grants reduced under paragraph (1) of this subsection on the same basis as they were reduced and by then allocating the remainder in accordance with subsection (a). Sums appropriated in excess of the amount necessary to pay in full the total amounts for which applicants are eligible under [section 1807 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title25-section1807&num=0&edition=prelim) shall be allocated by ratably increasing such total amounts. (3) References in this subsection and subsection (a) to [section 1807 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title25-section1807&num=0&edition=prelim) shall, with respect to fiscal year 1983, be deemed to refer to [section 1806 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title25-section1806&num=0&edition=prelim) as in effect at the beginning of such fiscal year. **(c) Reallocation of funds** In any fiscal year in which the amounts for which grant recipients are eligible to receive have been reduced under the first sentence of subsection (a) of this section, and in which additional funds have not been made available to pay in full the total of such amounts under the second sentence of such subsection, each grantee shall report to the Secretary any unused portion of received funds ninety days prior to the grant expiration date. The amounts so reported by any grant recipient shall be made available for reallocation to eligible grantees on a basis proportionate to the amount which is unfunded as a result of the ratable reduction, but no grant recipient shall receive, as a result of such reallocation, more than the amount provided for under [section 1807(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title25-section1807/a&num=0&edition=prelim).