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(a) IN GENERAL-
(1) ELIGIBILITY- The Secretary shall provide grants to Indian tribes, and tribal organizations that —

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(A) operate contract schools under title XI of the Education Amendments of 1978 and notify the Secretary of their election to operate the schools with assistance under this part rather than continuing the schools as contract schools;

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(B) operate other tribally controlled schools eligible for assistance under this part and submit applications (which are approved by their tribal governing bodies) to the Secretary for such grants; or

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(C) elect to assume operation of Bureau-funded schools with the assistance under this part and submit applications (which are approved by their tribal governing bodies) to the Secretary for such grants.

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(2) DEPOSIT OF FUNDS- Grants provided under this part shall be deposited into the general operating fund of the tribally controlled school with respect to which the grant is made.

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(3) USE OF FUNDS-
(A) IN GENERAL- Except as otherwise provided in this paragraph, grants provided under this part shall be used to defray, at the discretion of the school board of the tribally controlled school with respect to which the grant is provided, any expenditures for education related activities for which any funds that compose the grant may be used under the laws described in section 5205(a), including expenditures for —

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(i) school operations, academic, educational, residential, guidance and counseling, and administrative purposes; and

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(ii) support services for the school, including transportation.

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(B) EXCEPTION- Grants provided under this part may, at the discretion of the school board of the tribally controlled school with respect to which such grant is provided, be used to defray operations and maintenance expenditures for the school if any funds for the operation and maintenance of the school are allocated to the school under the provisions of any of the laws described in section 5205(a).

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(b) LIMITATIONS-
(1) ONE GRANT PER TRIBE OR ORGANIZATION PER FISCAL YEAR- Not more than one grant may be provided under this part with respect to any Indian tribe or tribal organization for any fiscal year.

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(2) NONSECTARIAN USE- Funds provided under any grant made under this part may not be used in connection with religious worship or sectarian instruction.

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(3) ADMINISTRATIVE COSTS LIMITATION- Funds provided under any grant under this part may not be expended for administrative costs (as defined in section 1128(h)(1) of the Education Amendments of 1978) in excess of the amount generated for such costs under section 1128 of such Act.

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(c) LIMITATION ON TRANSFER OF FUNDS AMONG SCHOOL SITES-
(1) IN GENERAL- In the case of a grantee that operates schools at more than one school site, the grantee may expend at any school site operated by the grantee not more than the lesser of —

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(A) 10 percent of the funds allocated for another school site under section 1128 of the Education Amendments of 1978; or

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(B) $400,000 of the funds allocated for another school site.

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(2) DEFINITION OF SCHOOL SITE- For purposes of this subsection, the term school site means the physical location and the 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.

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(d) NO REQUIREMENT TO ACCEPT GRANTS- Nothing in this part may be construed —

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(1) to require a tribe or tribal organization to apply for or accept; or

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(2) to allow any person to coerce any tribe or tribal organization to apply for, or accept, a grant under this part to plan, conduct, and administer all of, or any portion of, any Bureau program. Such applications and the timing of such applications shall be strictly voluntary. Nothing in this part may be construed as allowing or requiring any grant with any entity other than the entity to which the grant is provided.

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(e) NO EFFECT ON FEDERAL RESPONSIBILITY- Grants provided under this part shall not terminate, modify, suspend, or reduce the responsibility of the Federal Government to provide a program.

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(f) RETROCESSION-
(1) IN GENERAL- Whenever a tribal governing body requests retrocession of any program for which assistance is provided under this part, such retrocession shall become effective upon a date specified by the Secretary that is not later than 120 days after the date on which the tribal governing body requests the retrocession. A later date may be specified if mutually agreed upon by the Secretary and the tribal governing body. If such a program is retroceded, the Secretary shall provide to any Indian tribe served by such program at least the same quantity and quality of services that would have been provided under such program at the level of funding provided under this part prior to the retrocession.

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(2) STATUS AFTER RETROCESSION- The tribe requesting retrocession shall 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.

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(3) TRANSFER OF EQUIPMENT AND MATERIALS- Except as otherwise determined by the Secretary, the tribe or tribal organization operating the program to be retroceded must transfer to the Secretary (or to the tribe or tribal organization which will operate the program as a contract school) the existing equipment and materials which were acquired —

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(A) with assistance under this part; or
(B) upon assumption of operation of the program under this part, if the school was a Bureau-funded school under title XI of the Education Amendments of 1978 before receiving assistance under this part.

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(g) PROHIBITION OF TERMINATION FOR ADMINISTRATIVE CONVENIENCE- Grants provided under this part may not be terminated, modified, suspended, or reduced solely for the convenience of the administering agency.