respective needs for assistance under this part. The remainder of the sums so reserved shall be allotted among the States as provided in subsection (b).

(b) Of the sums being allotted under this subsection

(1) one-third shall be allotted by the Commissioner among the States so that the allotment to each State under this clause will be an amount which bears the same ratio to such one-third as the number of persons enrolled on a full-time basis in institutions of higher education in such State bears to the total number of persons enrolled on a full-time basis in institutions of higher education in all the States. (2) one-third shall be allotted by the Commissioner among the States so that the allotment to each State under this clause will be an amount which bears the same ratio to such one-third as the number of high school graduates (as defined in section 103 (d)(3) of the Higher Education Facilities Act of 1963) of such State bears to the total number of such high school graduates of all the States, and

(3) one-third shall be allotted by him among the States so that the allotment to each State under this clause will be an amount which bears the same ratio to such one-third as the number of related children under eighteen years of age living in families with annual incomes of less than $3,000 in such State bears to the number of related children under eighteen years of age living in families with annual incomes of less than $3,000 in all the States.

(c) The amount of any State's allotment which has not been granted to an institution of higher education under section 123 at the end of the fiscal year for which appropriated shall be reallotted by the Commissioner, in such manner as he determines will best assist in achieving the purposes of this Act. Amounts reallotted under this subsection shall be available for making grants under section 123 until the close of the fiscal year next succeeding the fiscal year for which appropriated.

(d) For purposes of this section, the term "State" does not include Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, and the Virgin Islands.

GRANTS FOR WORK-STUDY PROGRAMS

SEC. 123. (a) The Commissioner is authorized to enter into agreements with institutions of higher education under which the Commissioner will make grants to such institutions to assist in the operation of work-study programs as hereinafter provided.

(b) For the purposes of this part—

(1) The term "institution of higher education" means an educational institution in any State which (A) admits as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such certificate, (B) is legally authorized within such State to provide a program

1 Sec. 441 of the Higher Education Act of 1965, Public Law 89-329, November 8, 1965, 79 Stat. 1249, amended this section to read as set forth in the text. Prior to this amendment, sec. 123 read as follows: "The Director is authorized to enter into agreements with institutions of higher education (as defined by section 401 (f) of the Higher Education Facilities Act of 1963 (P.L. 88-204)) under which the Director will make grants to such institutions to assist in the operation of work-study programs as hereinafter provided."

of education beyond secondary education, (C) provides an educational program for which it awards a bachelor's degree or provides not less than a two-year program which is acceptable for full credit toward such a degree, (D) is a public or other nonprofit institution, and (E) is accredited by a nationally recognized accrediting agency or association approved by the Commissioner for this purpose or, if not so accredited, (i) is an institution with respect to which the Commissioner has determined that there is satisfactory assurance, considering the resources available to the institution, the period of time, if any, during which it has operated, the effort it is making to meet accreditation standards, and the purpose for which this determination is being made, that the institution will meet the accreditation standards of such an agency or association within a reasonable time, or (ii) is an institution whose credits are accepted on transfer by not less than three institutions which are so accredited, for credit on the same basis as if transferred from an institution so accredited. Such term also includes any public or other nonprofit collegiate or associate degree school of nursing and any school which provides not less than a one-year program of training to prepare students for gainful employment in a recognized occupation and which meets the provisions of clauses (A), (B), (D), and (E). If the Commissioner determines that a particular category of such schools does not meet the requirements of clause (E) because there is no nationally recognized accrediting agency or association qualified to accredit schools in such category, he shall, pending the establishment of such an accrediting agency or association, appoint an advisory committee, composed of persons specially qualified to evaluate training provided by schools in such category, which shall (I) prescribe the standards of content, scope, and quality which must be met in order to qualify schools in such category to participate in the program pursuant to this part, and (II) determine whether particular schools not meeting the requirements of clause (E) meet those standards. For purposes of this subsection, the Commissioner shall publish a list of nationally recognized accrediting agencies or associations which he determines to be reliable authority as to the quality of training offered.

(2) The term "collegiate school of nursing" means a department, division, or other administrative unit in a college or university which provides primarily or exclusively an accredited program of education in professional nursing and allied subjects leading to the degree of bachelor of arts, bachelor of science, bachelor of nursing, or to an equivalent degree, or to a graduate degree in nursing.

(3) The term "associate degree school of nursing" means a department, division, or other administrative unit in a junior college, community college, college, or university which provides primarily or exclusively an accredited two-year program of education in professional nursing and allied subjects leading to an associate degree in nursing or to an equivalent degree.

(4) The term "accredited" when applied to any program of nurse education means a program accredited by a recognized body or bodies approved for such purpose by the Commissioner.

1

CONDITIONS OF AGREEMENTS

SEC. 124. An agreement entered into pursuant to section 123 shall(a) provide for the operation by the institution of a program for the part-time employment of its students in work for the institution itself or work in the public interest for a public or private nonprofit organization under an arrangement between the institution and such organization, and such work—

(1) will not result in the displacement of employed workers or impair existing contracts for services.

(2) will be governed by such conditions of employment as will be appropriate and reasonable in light of such factors as type of work performed, geographical region, and proficiency of the employee, and

(3) does not involve the construction, operation, or maintenance of so much of any facility as is used or is to be used for sectarian instruction or as a place for religious worship;

(b) provide that funds granted an institution of higher education, pursuant to section 123 may be used only to make payments to students participating in work-study programs, except that an institution may use a portion of the sums granted to it to meet administrative expenses, but the amount so used may not exceed 5 per centum of the payments made by the Commissioner to such institution for that part of the work-study program in which students are working for public or nonprofit organizations other than the institution itself;

(c) 2 provide that in the selection of students for employment under such work-study program preference shall be given to students from low-income families and that employment under such work-study program shall be furnished only to a student who (1) is in need of the earnings from such employment in order to pursue a course of study at such institution, (2) is capable, in the opinion of the institution, of maintaining good standing in such course of study while employed under the program covered by the agreement, and (3) has been accepted for enrollment as a full-time student at the institution or, in the case of a student already enrolled in and attending the institution, is in good standing and in full-time attendance there either as an undergraduate, graduate, or professional student;

1 Sec. 441 of the Higher Education Act of 1965, Public Law 89-329, November 8, 1965, 79 Stat. 1250, amended paragraph (a) to read as set forth in the text. Prior to this amendment, paragraph (a) read as follows:

"(a) provide for the operation by the institution of a program for the part-time employment of its students in work

(1) for the institution itself, or

(2) for a public or private nonprofit organization when the position is obtained through an arrangement between the institution and such an organization and

(A) the work is related to the student's educational objective, or

(B) such work (i) will be in the public interest and is work which would not otherwise be provided, (ii) will not result in the displacement of employed workers or impair existing contracts for services, and (iii) will be governed by such conditions of employment as will be appropriate and reasonable in light of such factors as the type of work performed, geographical region, and proficiency of the employee: Provided, however, That no such work shall involve the construction, operation, or maintenance of so much of any facility used or to be used for sectarian instruction or as a place for religious worship;" 2 Sec. 441 of the Higher Education Act of 1965, Public Law 89-329, November 8, 1965, 79 Stat. 1250, amended that part of paragraph (c) which proceeds clause (1). Before the amendment, clauses (1), (2), and (3) were designated (2), (3), and (4), and that part of the paragraph preceding these clauses read as follows:

"(c) provide that employment under such work-study program shall be furnished only to a student who (1) is from a low-income family,"

(d) provide that no student shall be employed under such workstudy program for more than fifteen hours in any week in which classes in which he is enrolled are in session;

(e) provide that in each fiscal year during which the agreement remains in effect, the institution shall expend (from sources other than payments under this part) for the employment of its students (whether or not in employment eligible for assistance under this part) an amount that is not less than its average annual expenditure for such employment during the three fiscal years preceding the fiscal year in which the agreement is entered into;

(f) provide that the Federal share of the compensation of students employed in the work-study program in accordance with the agreement will not exceed 90 per centum of such compensation for work performed during the period ending1 three years after the date of enactment of this Act and 75 per centum thereafter;

(g) include provisions designed to make employment under such work-study program, or equivalent employment offered or arranged for by the institution, reasonably available (to the extent of available funds) to all eligible students in the institution in need thereof; and (h) include such other provisions as the Commissioner shall deem necessary or appropriate to carry out the purposes of this part.

SOURCES OF MATCHING FUNDS

SEC. 125. Nothing in this part shall be construed as restricting the source (other than this part) from which the institution may pay its share of the compensation of a student employed under a work-study program covered by an agreement under this part, and such share may be paid to such student in the form of services and equipment (including tuition, room, board, and books) furnished by such institution.

EQUITABLE DISTRIBUTION OF ASSISTANCE

SEC. 126. The Commissioner shall establish criteria designed to achieve such distribution of assistance under this part among institutions of higher education within a State as will most effectively carry out the purposes of this Act.

ᏢᎪᎡᎢ ᎠᏰ SPECIAL IMPACT PROGRAMS

ESTABLISHMENT OF PROGRAMS

SEC. 131. (a) The purpose of this part is to establish special programs which (1) are directed to the solution of the critical problems

1 Sec. 10 of the Economic Opportunity Amendments of 1965, 79 Stat. 974, amended this sentence with respect to the period during which Federal Assistance will not exceed 90 per centum of costs. Prior to this amendment, sec. 124(f) provided that the period should end "two" years after the date of enactment of the Economic Opportunity Act of 1964 "or June 30, 1966, whichever is later".

2 Sec. 441 of the Higher Education Act of 1965, Public Law 89-329, November 8, 1965, 79 Stat. 1250, added these words at the end of sec. 125, immediately following the word "part".

3 This part D, added by sec. 113 of the Economic Opportunity Amendments of 1966, 80 Stat. 1455

existing in particular communities and neighborhoods (defined without regard to political or other subdivisions or boundaries) within those urban areas of the Nation having, in the judgment of the Director, especially large concentrations of low-income persons; (2) are of sufficient size and scope to have an appreciable impact in such communities and neighborhoods in arresting tendencies toward dependency, chronic unemployment, and rising community tensions; and (3) where feasible and appropriate, are part of a citywide plan for the reorganization of local or State agencies in order to coordinate effectively all relevant programs of social development.

(b) In order to carry out the purposes of this part, the Director is authorized to make grants to public or private nonprofit organizations, or to enter into contracts with other private organizations, for the payment of all or part of the cost of programs described in sections 205 (d) and (e) of this Act. The Director shall assure that the work training and employment opportunities created under these special programs are filled by the residents of the communities or neighborhoods served, and that the activities pursued are carried out in the communities and neighborhoods described in subsection (a). For the purposes of this section, the Director may include youths aged sixteen to twenty-one who are unemployed, underemployed, or below the poverty level as established for the programs described in sections 205 (d) and (e).

(c) The Director shall establish such criteria, and impose such conditions, as may be necessary or appropriate to assure that no program assistance under this part will result in the displacement of employed workers or impair existing contracts for services and to assure that the rates of pay and other conditions of employment will be appropriate and reasonable in the light of such factors as the type of work performed, geographical region, and proficiency of the employee.

(d) In carrying out the provisions of this part, the Director shall establish such procedures or impose such requirements as may be necessary or appropriate to assure maximum coordination with community action programs approved pursuant to part A of title II of this Act.

FEDERAL SHARE OF PROGRAM COSTS

SEC. 132. Federal grants to any program carried out pursuant to this part shall not exceed 90 per centum of the cost of such program, including costs of administration, unless the Director determines, pursuant to regulations adopted and promulgated by him establishing objective criteria for such determinations, that assistance in excess of such percentages is required in furtherance of the purposes of this part. Non-Federal contributions may be in cash or in kind, fairly evaluated, including but not limited to plant, equipment, and services: Provided, That where capital investment is required under a contract with a private organization (other than a nonprofit organization), the Federal share thereof shall not exceed 90 per centum of such capital investment and the non-Federal share shall be as defined above.

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