U.S. Code » Title 25 » Chapter CHAPTER 27— TRIBALLY CONTROLLED SCHOOL GRANTS

25 U.S.C. § 2502

Grants authorized

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(a) In general(1) EligibilityThe Secretary shall provide grants to Indian tribes, and tribal organizations that—(A) operate contract schools under title XI of the Education Amendments of 1978 [25 U.S.C. 2000 et seq.] and notify the Secretary of their election to operate the schools with assistance under this chapter rather than continuing the schools as contract schools;(B) operate other tribally controlled schools eligible for assistance under this chapter and submit applications (which are approved by their tribal governing bodies) to the Secretary for such grants; or(C) elect to assume operation of Bureau-funded schools with the assistance under this chapter and submit applications (which are approved by their tribal governing bodies) to the Secretary for such grants.(2) Deposit of funds

Grants provided under this chapter shall be deposited into the general operating fund of the tribally controlled school with respect to which the grant is made.

(3) Use of funds(A) In generalExcept as otherwise provided in this paragraph, grants provided under this chapter 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 2504(a) of this title, including expenditures for—(i) school operations, academic, educational, residential, guidance and counseling, and administrative purposes; and(ii) support services for the school, including transportation.(B) Exception

Grants provided under this chapter 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 2504(a) of this title.

(b) Limitations(1) One grant per tribe or organization per fiscal year

Not more than one grant may be provided under this chapter with respect to any Indian tribe or tribal organization for any fiscal year.

(2) Nonsectarian use

Funds provided under any grant made under this chapter may not be used in connection with religious worship or sectarian instruction.

(3) Administrative costs limitation

Funds provided under any grant under this chapter may not be expended for administrative costs (as defined in section 1128(h)(1) of the Education Amendments of 1978 [25 U.S.C. 2008(h)(1)]) in excess of the amount generated for such costs under section 1128 of such Act.

(c) Limitation on transfer of funds among school sites(1) In generalIn 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—(A) 10 percent of the funds allocated for another school site under section 1128 of the Education Amendments of 1978 [25 U.S.C. 2008]; or(B) $400,000 of the funds allocated for another school site.(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 11 So in original. Probably should be “discrete”. student count is identified under the funding formula established under section 1127 of the Education Amendments of 1978 [25 U.S.C. 2007].

(d) No requirement to accept grantsNothing in this chapter may be construed—(1) to require a tribe or tribal organization to apply for or accept; or(2) to allow any person to coerce any tribe or tribal organization to apply for, or accept,a grant under this chapter 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 chapter may be construed as allowing or requiring any grant with any entity other than the entity to which the grant is provided.(e) No effect on Federal responsibility

Grants provided under this chapter shall not terminate, modify, suspend, or reduce the responsibility of the Federal Government to provide a program.

(f) Retrocession(1) In general

Whenever a tribal governing body requests retrocession of any program for which assistance is provided under this chapter, 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 chapter prior to the retrocession.

(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 [25 U.S.C. 5301 et seq.].

(3) Transfer of equipment and materialsExcept 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—(A) with assistance under this chapter; or(B) upon assumption of operation of the program under this chapter, if the school was a Bureau-funded school under title XI of the Education Amendments of 1978 [25 U.S.C. 2000 et seq.] before receiving assistance under this chapter.(g) Prohibition of termination for administrative convenience

Grants provided under this chapter may not be terminated, modified, suspended, or reduced solely for the convenience of the administering agency.

(Pub. L. 100–297, title V, § 5203, as added Pub. L. 107–110, title X, § 1043, Jan. 8, 2002, 115 Stat. 2064.)Editorial NotesReferences in Text

The Education Amendments of 1978, referred to in subsecs. (a)(1)(A) and (f)(3)(B), is Pub. L. 95–561, Nov. 1, 1978, 92 Stat. 2143. Title XI of the Act is classified principally to chapter 22 (§ 2000 et seq.) of this title. For complete classification of this Act to the Code, see Short Title of 1978 Amendment note set out under section 6301 of Title 20, Education, and Tables.

The Indian Self-Determination and Education Assistance Act, referred to in subsec. (f)(2), is Pub. L. 93–638, Jan. 4, 1975, 88 Stat. 2203, which is classified principally to chapter 46 (§ 5301 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of this title and Tables.

Prior Provisions

A prior section 2502, Pub. L. 100–297, title V, § 5203, Apr. 28, 1988, 102 Stat. 385, set forth declaration of policy, prior to repeal by Pub. L. 107–110, title X, § 1043, Jan. 8, 2002, 115 Stat. 2063. See section 2501 of this title.

Statutory Notes and Related SubsidiariesEffective Date

Section effective Jan. 8, 2002, except with respect to certain noncompetitive programs and competitive programs, see section 5 of Pub. L. 107–110, set out as a note under section 6301 of Title 20, Education.

Notes of Decisions
Cited in 13 cases (4 in the last 5 years), 1997–2025 · leading case: Shiprock Associated Schs., Inc. v. United States, 934 F. Supp. 2d 1311 (D.N.M. 2013).
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Shiprock Associated Schs., Inc. v. United States, 934 F. Supp. 2d 1311 (D.N.M. 2013). · cites it 7× “25 U.S.C. § 2502 (a)(3)(B). Section 2502(b) sets forth “Limitations” on the grants authorized under the TCSA.”
Big Owl v. United States, 961 F. Supp. 1304 (D.S.D. 1997). · cites it 2× “25 U.S.C. § 2502 (a). The Act is designed to supplant federal domination of services to Indians with effective and meaningful participation by the Indian people in the planning, conduct, and administration of those services and is an enhancement of these concepts made manifest…”
Horse v. United States, 49 Fed. Cl. 419 (Fed. Cl. 2001). “25 U.S.C. § 2502 . Under the unique statutory scheme set up by Congress for the educational needs of Native-Americans by this statute, Native-American tribes are allowed, *422 by request for permission from the BIA, to operate and control their own schools with funds provided by…”
Clean Air Council v. Mallory, 226 F. Supp. 2d 705 (E.D. Pa. 2002). “The Court in Seminole Tribe examined the remedial scheme of the Indian Gaming and Regulatory Act (the “IGRA”)' — an Act that provides a statutory basis for the operation and regulation of gaming by Indian tribes, see 25 U.S.C. § 2502 — and concluded that Congress’ decision to…”
Bitsilly Ex Rel. Denet-Yazzie v. Bureau of Indian Affairs, 253 F. Supp. 2d 1257 (D.N.M. 2003). “§ 2501 (b), and it did not “terminate, modify, suspend, or reduce the responsibility of the Federal Government to provide a program,” 25 U.S.C. § 2502 (e). Congress’s stated goal was “to provide the resources, processes, and structures that will enable tribes and local…”
Reed v. Chase Home Fin., LLC, 893 F. Supp. 2d 1250 (S.D. Ala. 2012). “Similarly, Congress has prohibited the termination or reduction of certain tribal grants based on the administrative convenience of the administering agency, 25 U.S.C. §§ 2502 (g), 3303(d), yet grant decisions cannot be viewed as ministerial.”
Jim v. Shiprock Associated Schs. (10th Cir. 2020). “” 25 U.S.C. § 2502 (a)(1)(B). And a school is considered “tribally controlled” only if it is “operated by an Indian tribe or a tribal organization.”
Kansas, State of v. United States Dep't of Interior (D. Kan. 2020). “There are some exceptions to that general rule. Relevant here is the exception that gaming is permitted on lands taken into trust as part of a “settlement of a land claim.”
Stathis v. Marty Indian Sch. Bd. Inc. (D.S.D. 2021). “8-1 at 13-14; 25 U.S.C. § 2502 (a)(3) (explaining how school boards of tribally controlled schools may use federal grants).”
Lower Brule Sioux Tribe v. Haaland (D.S.D. 2022). “25 U.S.C. § 2502 . The TCSA requires a tribal grant recipient to complete an annual report and financial audit pursuant to the Single Audit Act of 1984 on the tribe’s use of federal funds, which the BIA reviews to ensure the tribe’s compliance with the provisions of the TCSA.”
Lower Brule Sioux Tribe v. Haaland (D.S.D. 2024). “25 U.S.C. § 2502 . When granting in large part the Defendants’ motion to dismiss the original complaint, this Court observed that the Tribe was challenging decisions rendered more than one year before the complaint’s filing on October 8, 2021.”
Lower Brule Sioux Tribe v. Haaland (D.S.D. 2025). “25 U.S.C. § 2502 . The TCSA requires a tribal grant recipient to complete an annual report.”
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