20 U.S. Code § 10004 - Uses of funds by institutions of higher education

(a) In general

A public institution of higher education that receives funds under this chapter shall use the funds for education and general expenditures, and in such a way as to mitigate the need to raise tuition and fees for in-State students, or for modernization, renovation, or repair of institution of higher education facilities that are primarily used for instruction, research, or student housing, including modernization, renovation, and repairs that are consistent with a recognized green building rating system.

(b) Prohibition

An institution of higher education may not use funds received under this chapter to increase its endowment.

(c) Additional prohibitionNo funds awarded under this chapter may be used for—
(1)
the maintenance of systems, equipment, or facilities;
(2)
modernization, renovation, or repair of stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public; or
(3) modernization, renovation, or repair of facilities—
(A)
used for sectarian instruction or religious worship; or
(B)
in which a substantial portion of the functions of the facilities are subsumed in a religious mission.