(a) Except as provided in paragraph (c) of this section, for each fiscal year, the Secretary determines the amount of a grant under this part by-

1. (1) Multiplying fifty percent of the amount appropriated for the HBCU Program by the following fraction:

   Number of Pell Grant recipients at the applicant institution during the school year immediately preceding that fiscal year. Number of Pell Grant recipients at all applicant institutions during the school year immediately preceding that fiscal year.

2. (2) Multiplying twenty-five percent of the amount appropriated for the HBCU Program by the following fraction:

   Number of graduates of the applicant institution during the school year immediately preceding that fiscal year. Number of graduates of all applicant institutions during the school year immediately preceding that fiscal year.

3. (3) Multiplying twenty-five percent of the amount appropriated for the HBCU Program by the following fraction:

   The percentage of graduates of an applicant institution who, within five years of graduating with baccalaureate degrees, are in attendance at graduate or professional schools and enrolled in degree programs in disciplines in which Blacks are underrepresented The sum of the percentages of those graduates of all applicant institutions.

4. (4) Adding the amounts obtained in paragraphs (a)(1), (a)(2), and (a)(3) of this section.

(b)

1. (1) For each fiscal year, the numerator in paragraph (a)(3) of this section is calculated by—

   1. (i) Determining the number of graduates of an applicant institution who, within five years of graduating with baccalaureate degrees, attended graduate or professional schools and enrolled in degree programs in disciplines in which Blacks are underrepresented during the school year immediately preceding that fiscal year; and
   2. (ii) Dividing the number obtained in paragraph (b)(1)(i) of this section by the number of graduates of an applicant institution who graduated with baccalaureate degrees during the five school years immediately preceding the school year described in paragraph (b)(1)(i) of this section.

2. (2) For purposes of this section, the Secretary—

   1. (i) Considers that Blacks are underrepresented in a professional or academic discipline if the percentage of Blacks in that discipline is less than the percentage of Blacks in the general population of the United States; and
   2. (ii) Notifies applicants of the disciplines in which Blacks are underrepresented through a notice in the Federal Register, after consulting with the Commissioner of the Bureau of Labor Statistics.

(c) Notwithstanding the formula in paragraph (a) of this section—

1. (1) For each fiscal year, each eligible institution with an approved application must receive at least $500,000; and
2. (2) If the amount appropriated for a fiscal year for the HBCU Program is insufficient to provide $500,000 to each eligible institution with an approved application, each grant is ratably reduced. If additional funds become available for the HBCU Program during a fiscal year, each grant is increased on the same basis as it was decreased until the grant amount reaches $500,000.

(d) The amount of any grant that the Secretary determines will not be required by a grantee for the period for which the grant was made is available for reallotment by the Secretary during that period to other eligible institutions under the formula contained in paragraph (a) of this section.

(Authority: 20 U.S.C. 1063)