1. (a) The Secretary sets the amount of a grant on the basis of—

   1. (1) 34 CFR 75.232 and 75.233, for new grants; and
   2. (2) 34 CFR 75.253, for the second and subsequent years of a project period.

2. (b) If the circumstances described in section 402A(b)(3) of the HEA exist, the Secretary uses the available funds to set the amount of the grant at the lesser of—

   1. (1) $200,000; or

   2. (2) The amount requested by the applicant.

      (Authority: 20 U.S.C. 1070a-11)

[59 FR 2658, Jan. 18, 1994, as amended at 75 FR 65782, Oct. 26, 2010]