34 C.F.R. § 648.3 – What activities may the Secretary fund?

(a) The Secretary awards grants to institutions of higher education to fund fellowships in one or more areas of national need.
(b)
1. (1) For the purposes of this part, the Secretary designates areas of national need from the academic areas listed in the appendix to this part or from the resulting inter-disciplines.
2. (2) The Secretary announces these areas of national need in a notice published in the Federal Register.
  (Authority: 20 U.S.C. 1135, 1135a)