25 C.F.R. § 39.500
What emergency and contingency funds are available?
The Secretary:
(a) Must reserve 1 percent of funds from the allotment formula to meet emergencies and unforeseen contingencies affecting educational programs;
(b) Can carry over to the next fiscal year a maximum of 1 percent the current year funds; and
(c) May distribute all funds in excess of 1 percent equally to all schools or distribute excess as a part of ISEP.