Authority

10 U.S.C. § 2191 : US Code - Section 2191: Graduate fellowships
(a) The Secretary of Defense shall prescribe regulations providing for the award of
fellowships to citizens and nationals of the United States who agree to pursue graduate
degrees in science, engineering, or other fields of study designated by the Secretary to be
of priority interest to the Department of Defense.
(b) A fellowship awarded pursuant to regulations prescribed under subsection (a) shall be
known as a "National Defense Science and Engineering Graduate Fellowship".
(c) National Defense Science and Engineering Graduate Fellowships shall be awarded solely
on the basis of academic ability. The Secretary shall take all appropriate actions to
encourage applications for such fellowships of persons who are members of groups
(including minority groups, women, and disabled persons) which historically have been
underrepresented in science and technology fields. Recipients shall be selected on the
basis of a nationwide competition. The award of a fellowship under this section may not
be predicated on the geographic region in which the recipient lives or the geographic
region in which the recipient will pursue an advanced degree.
(d) The regulations prescribed under this section shall include (1) the criteria for award of fellowships;
(2) the procedures for selecting recipients;
(3) the basis for determining the amount of a fellowship; and
(4) the maximum amount that may be awarded to an individual during an academic year.

From http://codes.lp.findlaw.com/uscode/10/A/III/111/2191