Challenge Grant Amendments of 1983

Challenge Grant Amendments of 1983 - Amends the Higher Education Act of 1965 (HEA) to establish a program to provide matching endowment grants to institutions of higher education which are eligible for assistance under the challenge grant program (part C of title III of HEA).

Authorizes the Secretary of Education to award such matching endowment grants from sums available under the challenge grant program.

Limits the endowment grant period to not more than 20 years, during which time the institution may not withdraw or expend the endowment fund corpus (the amount of the grant plus the matching amount deposited by the institution). Permits the institution, after grant period termination, to use the endowment fund corpus plus any endowment fund income for any educational purpose.

Provides that institutions may receive more than one such grant, but may only receive such a grant for two fiscal years out of any period of five consecutive fiscal years.

Limits the amount of an endowment grant to an institution to: (1) not less than $50,000 for any fiscal year; and (2) not more than $250,000 for FY 1984 or $500,000 for FY 1985 or any succeeding fiscal year.

Permits an eligible institution to designate a foundation, which was established to raise money for the institution, as the recipient of the endowment grant. Sets forth requirements which the foundation and the institution must meet for such an award.

Sets forth requirements for investment of the endowment fund corpus and income. Permits an institution to withdraw and expend the endowment fund income to defray any expenses necessary to the operation of the college. Prohibits an institution from spending more than 50 percent of the total aggregate endowment fund income earned prior to the time of expenditure. Authorizes the Secretary to permit an institution to spend more than the 50-percent limit under specified emergency circumstances.

Provides for repayment by an institution of funds withdrawn prematurely from the endowment fund corpus or improperly expended from endowment fund income.

Set forth auditing requirements.

Directs the Secretary, in selecting eligible institutions for endowment grants, to: (1) give priority to an applicant which is a recipient of an institutional aid (title III) grant under provisions for strengthening institutions (part A) or for aid to institutions with special needs (part B), during the academic year in which the endowment grant is applied for; (2) give priority to an applicant with a greater need for such grant, based on the current market value of the applicant's existing endowment in relation to the number of full-time equivalent students enrolled at such institution; and (3) consider the effort made by the applicant to build or maintain its existing endowment fund and the degree to which an applicant proposes to match the grant with nongovernmental funds.

Sets forth provisions for endowment grant applications and approval.

Authorizes the Secretary to terminate and recover an endowment grant, after notice and opportunity for a hearing, if the grantee institution fails to properly expend, invest, or account for endowment funds.

Provides that, of the amounts appropriated for the challenge grant program (part C), the following amounts shall be available for endowment grants: (1) 20 percent in FY 1984; and (2) 100 percent in FY 1985. Authorizes the Secretary, for each fiscal year, to: (1) reserve from the appropriation for aid to institutions with special needs (part B) not more than an amount equal to the aggregate amount grantees receiving part B grants would contribute to the cost of such grants, assuming the grant amounts remain the same as those received in the prior fiscal year; and (2) use those funds to award endowment grants to eligible institutions. Directs the Secretary, in reserving and awarding such funds, to continue to set aside funds in specified amounts for junior and community colleges, institutions planning to award a bachelor's degree, and institutions with special needs that historically serve substantial numbers of black students.

Amends the Omnibus Education Reconciliation Act of 1981 "Omnibus Act" to increase the total amount which may be appropriated for FY 1984 to carry out title III (Institutional Aid) of HEA. Increases the total amount which may be appropriated for FY 1984 to carry out a specified Federal law relating to Howard University. Authorizes appropriations, notwithstanding specified provisions of the Omnibus Act, of sums necessary to carry out provisions for grants for the construction, reconstruction, and renovation of academic facilities under parts A (undergraduate) and B (graduate) of title VII of HEA. Sets forth provisions for the use and distribution of funds appropriated by Public Law 98-63 for part B of title VII of HEA (grants for construction, reconstruction, and renovation of graduate academic facilities).