25 USC 5341 et seq

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25 USC CHAPTER 46, SUBCHAPTER II: CONTRACTS WITH STATES
From Title 25—INDIANS
CHAPTER 46—INDIAN SELF-DETERMINATION AND EDUCATION ASSISTANCE

SUBCHAPTER II—CONTRACTS WITH STATES

CODIFICATION
Subchapter, consisting of sections 5341 to 5347 of this title, was not enacted as part of the
Indian Self-Determination and Education Assistance Act which comprises this chapter.

§5341. Donations for Indians; use of gifts; annual report to Congress
The Secretary of the Interior may accept donations of funds or other property for the advancement of the
Indian race, and he may use the donated property in accordance with the terms of the donation in
furtherance of any program authorized by other provision of law for the benefit of Indians. An annual report
shall be made to the Congress on donations received and allocations made from such donations. This report
shall include administrative costs and other pertinent data.
(Feb. 14, 1931, ch. 171, 46 Stat. 1106; Pub. L. 90–333, June 8, 1968, 82 Stat. 171.)

CODIFICATION
Section was not enacted as part of the Johnson-O'Malley Act which comprises this
subchapter, nor as part of the Indian Self-Determination and Education Assistance Act which
comprises this chapter.
Section was formerly classified to section 451 of this title prior to editorial reclassification and
renumbering as this section.

AMENDMENTS
1968—Pub. L. 90–333 expanded area of permissible uses to which Secretary may put
donated property by substituting provisions allowing inclusion of programs otherwise authorized
by law intended to benefit Indians for provisions limiting permissible uses to programs otherwise
authorized by law only if it could be shown that property would benefit a particular Indian
institution or individual, and inserted provisions for an annual report to Congress on donations
received and allocations made from such donations.

TERMINATION OF REPORTING REQUIREMENTS
For termination, effective May 15, 2000, of provisions in this section relating to making an
annual report to Congress, see section 3003 of Pub. L. 104–66, as amended, set out as a note
under section 1113 of Title 31, Money and Finance, and page 113 of House Document No.
103–7.
§5342. Contracts for education, medical attention, relief and social welfare
of Indians
The Secretary of the Interior is authorized, in his discretion, to enter into a contract or contracts with any
State or Territory, or political subdivision thereof, or with any State university, college, or school, or with any
appropriate State or private corporation, agency, or institution, for the education, medical attention,
agricultural assistance, and social welfare, including relief of distress, of Indians in such State or Territory,
through the agencies of the State or Territory or of the corporations and organizations hereinbefore named,
and to expend under such contract or contracts, moneys appropriated by Congress for the education,
medical attention, agricultural assistance, and social welfare, including relief of distress, of Indians in such

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State or Territory.
(Apr. 16, 1934, ch. 147, §1, 48 Stat. 596; June 4, 1936, ch. 490, §1, 49 Stat. 1458.)

CODIFICATION
Section was formerly classified to section 452 of this title prior to editorial reclassification and
renumbering as this section.

AMENDMENTS
1936—Act June 4, 1936, substituted "with any State or Territory, or political subdivision
thereof, or with any State university, college, or school, or with any appropriate State or private
corporation, agency, or institution", "through the agencies of the State or Territory or of the
corporations and organizations hereinbefore named,", and "such State or Territory" for "any
State or Territory having legal authority so to do,", "through the qualified agencies of such State
or Territory,", and "such State", respectively.

SHORT TITLE
Sections 5342 to 5348 of this title popularly known as the "Johnson-O'Malley Act", see note
under section 5301 of this title.

DISTRIBUTION OF PUBLIC SCHOOL ASSISTANCE
Pub. L. 100–446, title I, Sept. 27, 1988, 102 Stat. 1795, provided that: "notwithstanding any
other provision of law, the amounts available for assistance to public schools under the Act of
April 16, 1934 (48 Stat. 596), as amended (25 U.S.C. 452 et seq.) [now 25 U.S.C. 5342 et seq.],
shall be distributed on the basis of the formula recommended by the Assistant Secretary of
Indian Affairs in a letter to the Committees on Appropriations dated June 27, 1988, except that
for the fiscal year ending September 30, 1989, the minimum weight factor shall be 1.1 rather
than 1.3 and for the fiscal year ending September 30, 1990, the minimum weight factor shall be
1.2 rather than 1.3".
Similar provisions were contained in the following prior appropriation act:
Pub. L. 100–202, §101(g) [title I], Dec. 22, 1987, 101 Stat. 1329–213, 1329-228.

LIMITATION ON CONTRACT AUTHORITY
Pub. L. 99–190, §101(d) [title I], Dec. 19, 1985, 99 Stat. 1224, 1235, provided that:
"notwithstanding any law or regulation, in allocating funds for aid to public schools under the Act
of April 16, 1934, as amended [25 U.S.C. 5342 et seq.], the Secretary shall enter into contracts
only for the provision of supplementary educational services for Indian children".

§5343. Use of Government property by States and Territories
The Secretary of the Interior, in making any contract authorized by sections 5342 to 5348 of this title, may
permit such contracting party to utilize, for the purposes of said sections, existing school buildings, hospitals,
and other facilities, and all equipment therein or appertaining thereto, including livestock and other personal
property owned by the Government, under such terms and conditions as may be agreed upon for their use
and maintenance.
(Apr. 16, 1934, ch. 147, §2, 48 Stat. 596; June 4, 1936, ch. 490, §2, 49 Stat. 1459.)

CODIFICATION
Section was formerly classified to section 453 of this title prior to editorial reclassification and
renumbering as this section.

AMENDMENTS
1936—Act June 4, 1936, substituted ", may permit such contracting party" for "with any State
or Territory, may permit such State or Territory".

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§5344. Rules and regulations; minimum standards of service
The Secretary of the Interior is authorized to perform any and all acts and to make such rules and
regulations, including minimum standards of service, as may be necessary and proper for the purpose of
carrying the provisions of sections 5342 to 5348 of this title into effect: Provided, That such minimum
standards of service are not less than the highest maintained by the States or Territories within which said
contract or contracts, as herein provided, are to be effective.
(Apr. 16, 1934, ch. 147, §3, 48 Stat. 596; June 4, 1936, ch. 490, §3, 49 Stat. 1459.)

CODIFICATION
Section was formerly classified to section 454 of this title prior to editorial reclassification and
renumbering as this section.
AMENDMENTS
1936—Act June 4, 1936, substituted "within which" for "with which".

§5345. Contracts for education in public schools; submission of education
plan by contractor as prerequisite; criteria for approval of plan by
Secretary of the Interior; participation by non-Indian students
The Secretary of the Interior shall not enter into any contract for the education of Indians unless the
prospective contractor has submitted to, and has had approved by the Secretary of the Interior, an education
plan, which plan, in the determination of the Secretary, contains educational objectives which adequately
address the educational needs of the Indian students who are to be beneficiaries of the contract and
assures that the contract is capable of meeting such objectives: Provided, That where students other than
Indian students participate in such programs, money expended under such contract shall be prorated to
cover the participation of only the Indian students.
(Apr. 16, 1934, ch. 147, §4, as added Pub. L. 93–638, title II, §202, Jan. 4, 1975, 88 Stat. 2213.)

CODIFICATION
Section was formerly classified to section 455 of this title prior to editorial reclassification and
renumbering as this section.

PRIOR PROVISIONS
A prior section 4 of act Apr. 16, 1934, ch. 147, 48 Stat. 596; June 4, 1936, ch. 490, 49 Stat.
1458, directed Secretary of the Interior to report to Congress any contracts made under
provisions of sections 5342 to 5344 of this title, prior to repeal by Pub. L. 86–533, §1(15), June
29, 1960, 74 Stat. 248.

§5346. Local committee of Indian parents in school districts having school
boards composed of non-Indian majority
(a) Election; functions
Whenever a school district affected by a contract or contracts for the education of Indians pursuant to
sections 5342 to 5348 of this title has a local school board not composed of a majority of Indians, the
parents of the Indian children enrolled in the school or schools affected by such contract or contracts shall
elect a local committee from among their number. Such committee shall fully participate in the development
of, and shall have the authority to approve or disapprove programs to be conducted under such contract or
contracts, and shall carry out such other duties, and be so structured, as the Secretary of the Interior shall
by regulation provide: Provided, however, That, whenever a local Indian committee or committees
established pursuant to section 7424(c)(4) of title 20 or an Indian advisory school board or boards
established pursuant to sections 5342 to 5348 of this title prior to January 4, 1975, exists in such school
district, such committee or board may, in the discretion of the affected tribal governing body or bodies, be

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utilized for the purposes of this section.
(b) Revocation of contracts
The Secretary of the Interior may, in his discretion, revoke any contract if the contractor fails to permit a
local committee to perform its duties pursuant to subsection (a) of this section.
(Apr. 16, 1934, ch. 147, §5, as added Pub. L. 93–638, title II, §202, Jan. 4, 1975, 88 Stat. 2213; amended
Pub. L. 103–382, title III, §393(d), Oct. 20, 1994, 108 Stat. 4027; Pub. L. 107–110, title VII, §702(e), Jan. 8,
2002, 115 Stat. 1947; Pub. L. 114–95, title IX, §9215(a), Dec. 10, 2015, 129 Stat. 2166.)

CODIFICATION
Section was formerly classified to section 456 of this title prior to editorial reclassification and
renumbering as this section.

PRIOR PROVISIONS
A prior section 5 of act Apr. 16, 1934, ch. 147, 48 Stat. 596, which excluded Oklahoma from
the application of contract provisions, was omitted in the general amendment of act Apr. 16,
1934, by act June 4, 1936, ch. 490, 49 Stat. 1458.

AMENDMENTS
2015—Subsec. (a). Pub. L. 114–95 made technical amendment to reference in original act
which appears in text as reference to section 7424(c)(4) of title 20.
2002—Subsec. (a). Pub. L. 107–110 substituted reference to section 7424(c)(4) of title 20 for
reference to section 7814(c)(4) of title 20.
1994—Subsec. (a). Pub. L. 103–382 substituted reference to section 7814(c)(4) of title 20 for
reference to section 241dd(b)(2)(B)(ii) of title 20.

EFFECTIVE DATE OF 2002 AMENDMENT
Amendment by Pub. L. 107–110 effective Jan. 8, 2002, except with respect to certain
noncompetitive programs and competitive programs, see section 5 of Pub. L. 107–110, set out
as an Effective Date note under section 6301 of Title 20, Education.
§5347. Reimbursement to school districts for educating non-resident
students
Any school district educating Indian students who are members of recognized Indian tribes, who do not
normally reside in the State in which such school district is located, and who are residing in Federal boarding
facilities for the purposes of attending public schools within such district may, in the discretion of the
Secretary of the Interior, be reimbursed by him for the full per capita costs of educating such Indian
students.
(Apr. 16, 1934, ch. 147, §6, as added Pub. L. 93–638, title II, §202, Jan. 4, 1975, 88 Stat. 2214.)

CODIFICATION
Section was formerly classified to section 457 of this title prior to editorial reclassification and
renumbering as this section.

§5348. Computation of student count
(a) Definitions
For the purposes of sections 5342 to 5348 of this title, the following definitions apply:
(1) Contracting party
The term "contracting party" means an entity that has a contract through a program authorized under
sections 5342 to 5348 of this title.
(2) Eligible entity

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The term "eligible entity" means an entity that is eligible to apply for a contract for a supplemental or
operational support program under sections 5342 to 5348 of this title, as outlined in section 5342 of this
title.
(3) Existing contracting party
The term "existing contracting party" means a contracting party that has a contract under sections 5342
to 5348 of this title that is in effect on December 31, 2018.
(4) JOM Modernization Act
The term "JOM Modernization Act" means the Johnson-O'Malley Supplemental Indian Education
Program Modernization Act.
(5) New contracting party
The term "new contracting party" means an entity that enters into a contract under sections 5342 to
5348 of this title after December 31, 2018.
(6) Secretary
The term "Secretary" means the Secretary of the Interior.
(b) Determination of the number of eligible Indian students
(1) Initial determinations
(A) In general
The Secretary shall make an initial determination of the number of eligible Indian students served or
potentially served by each eligible entity in accordance with subparagraph (B).
(B) Process for making the initial determination
(i) Preliminary report
Not later than 180 days after December 31, 2018, the Secretary shall publish a preliminary report
describing the number of eligible Indian students served or potentially served by each eligible entity,
using the most applicable and accurate data (as determined by the Secretary in consultation with
eligible entities) from the fiscal year preceding the fiscal year for which the initial determination is to
be made from—
(I) the Bureau of the Census;
(II) the National Center for Education Statistics; or
(III) the Office of Indian Education of the Department of Education.
(ii) Data reconciliation
To improve the accuracy of the preliminary report described in clause (i) prior to publishing, the
Secretary shall reconcile the data described in the preliminary report with—
(I) each existing contracting party's data regarding the number of eligible Indian students served
by the existing contracting party for the fiscal year preceding the fiscal year for which the initial
determination is made; and
(II) identifiable tribal enrollment information.
(iii) Comment period
After publishing the preliminary report under clause (i) in accordance with clause (ii), the Secretary
shall establish a 60-day comment period to gain feedback about the preliminary report from eligible
entities, which the Secretary shall take into consideration in preparing the final report described in
clause (iv).
(iv) Final report
Not later than 120 days after concluding the consultation described in clause (iii), the Secretary
shall publish a final report on the initial determination of the number of eligible Indian students served
or potentially served by each eligible entity, including justification for not including any feedback
gained during such consultation, if applicable.
(2) Subsequent academic years
For each academic year following the fiscal year for which an initial determination is made under
paragraph (1) to determine the number of eligible Indian students served or potentially served by a
contracting party, the Secretary shall determine the number of eligible Indian students served by the
contracting party based on the reported eligible Indian student count numbers identified through the
reporting process described in subsection (c).

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(c) Contracting party student count reporting compliance
(1) In general
For each academic year following the fiscal year for which an initial determination is made under
subsection (b) to determine the number of eligible Indian students served or potentially served by a
contracting party, the contracting party shall submit to the Secretary a report describing the number of
eligible Indian students who were served using amounts allocated to such party under sections 5342 to
5348 of this title during the previous fiscal year. The report shall also include an accounting of the
amounts and purposes for which the contract funds were expended.
(2) Failure to comply
A contracting party that fails to submit a report under paragraph (1) shall receive no amounts under
sections 5342 to 5348 of this title for the fiscal year following the academic year for which the report
should have been submitted.
(3) Notice
The Secretary shall provide contracting parties with timely information relating to—
(A) initial and final reporting deadlines; and
(B) the consequences of failure to comply outlined in paragraph (2).
(4) Technical assistance
The Secretary, acting through the Director of the Bureau of Indian Education, shall provide technical
assistance and training on compliance with the reporting requirements of this subsection to contracting
parties.
(d) Annual report
(1) In general
The Secretary shall prepare an annual report, including the most recent determination of the number of
eligible Indian students served by each contracting party, recommendations on appropriate funding levels
for the program based on such determination, and an assessment of the contracts under sections 5342 to
5348 of this title that the Secretary—
(A) may include in the budget request of the Department of the Interior for each fiscal year;
(B) shall submit to—
(i) the Committee on Indian Affairs of the Senate;
(ii) the Subcommittee on Interior, Environment, and Related Agencies of the Committee on
Appropriations of the Senate;
(iii) the Committee on Education and the Workforce of the House of Representatives; and
(iv) the Subcommittee on Interior, Environment, and Related Agencies of the Committee on
Appropriations of the House of Representatives; and
(C) shall make publicly available.
(2) Manner of preparation
The Secretary shall prepare the report under paragraph (1) in a manner so as to prevent or minimize
new administrative burdens on contracting parties receiving funds under sections 5342 to 5348 of this title.
(e) Hold harmless
(1) Initial hold harmless
(A) In general
Except as provided under subparagraph (B) and subject to subparagraphs (C) and (D), for a fiscal
year, an existing contracting party shall not receive an amount under sections 5342 to 5348 of this title
that is less than the amount that such existing contracting party received under sections 5342 to 5348 of
this title for the fiscal year preceding December 31, 2018.
(B) Exceptions
(i) In general
An existing contracting party shall receive an amount under sections 5342 to 5348 of this title for a
fiscal year that is less than the amount that the existing contracting party received under sections
5342 to 5348 of this title for the fiscal year preceding December 31, 2018, if one or more of the
following conditions is met:

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(I) Failure to report
The existing contracting party failed to submit a complete report described in subsection (c) that
was most recently due from the date of the determination.
(II) Violations of contract or law
The Secretary has found that the existing contracting party has violated the terms of a contract
entered into under sections 5342 to 5348 of this title or has otherwise violated Federal law.
(III) Student count decrease
The number of eligible Indian students reported by such existing contracting party under
subsection (c) has decreased below the number of eligible Indian students served by the existing
contracting party in the fiscal year preceding December 31, 2018.
(ii) Amount of funding reduction for existing contracting parties reporting decreased student
counts
A reduction in an amount pursuant to clause (i)(III) shall not be done in such a manner that the
existing contracting party receives an amount of funding per eligible Indian student that is less than
the amount of funding per eligible Indian student such party received for the fiscal year preceding
December 31, 2018.
(C) Ratable reductions in appropriations
If the funds available under sections 5342 to 5348 of this title for a fiscal year are insufficient to pay
the full amounts that all existing contracting parties are eligible to receive under subparagraph (A) for
the fiscal year, the Secretary shall ratably reduce those amounts for the fiscal year.
(D) Sunset
This paragraph shall cease to be effective 4 years after December 31, 2018.
(2) Maximum decrease after 4 years
Beginning 4 years after December 31, 2018, no contracting party shall receive for a fiscal year more
than a 10 percent decrease in funding per eligible Indian student from the previous fiscal year.
(f) Funding allocation and reform
(1) Funding reform
The Secretary may make recommendations for legislation to increase the amount of funds available per
eligible Indian student through contracts under sections 5342 to 5348 of this title to equal to or greater
than the amount of funds that were available per eligible Indian student through contracts under sections
5342 to 5348 of this title for fiscal year 1995, and attempt to identify additional sources of funding that do
not reallocate existing funds otherwise utilized by Indian students served—
(A) by the Bureau of Indian Education; or
(B) under title VI of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7401 et seq.).
(2) Increases in program funding
(A) In general
Subject to subsection (e) and subparagraph (B), for any fiscal year for which the amount appropriated
to carry out sections 5342 to 5348 of this title exceeds the amount appropriated to carry out sections
5342 to 5348 of this title for the preceding fiscal year, the excess amounts shall—
(i) be allocated only to those contracting parties that did not receive their full per student funding
allocation for the previous fiscal year; and
(ii) be allocated first to new contracting parties that did not receive their full per student funding
allocation for the previous fiscal year.
(B) Parity in funding
Subparagraph (A) shall have no effect after the first fiscal year for which each contracting party
receives their full per student funding allocation.
(g) Increased geographical and tribal participation in the Johnson-O'Malley supplementary education
program
To the maximum extent practicable, the Secretary shall consult with Indian tribes and contact State
educational agencies, local educational agencies, and Alaska Native organizations that have not previously
entered into a contract under sections 5342 to 5348 of this title—
(1) to determine the interest of the Indian tribes, State educational agencies, local educational agencies,

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and Alaska Native organizations, in entering into such contracts; and
(2) to share information relating to the process for entering into a contract under sections 5342 to 5348
of this title.
(h) Rulemaking
(1) In general
Not later than 1 year after December 31, 2018, the Secretary, acting through the Director of the Bureau
of Indian Education, shall undertake and complete a rulemaking process, following the provisions of
subchapter II of chapter 5 of title 5, to—
(A) determine how the regulatory definition of "eligible Indian student" may be revised to clarify
eligibility requirements for contracting parties under sections 5342 to 5348 of this title;
(B) determine, as necessary, how the funding formula described in section 273.31 of title 25, Code of
Federal Regulations (as in effect on the day before December 31, 2018) may be clarified and revised to
ensure full participation of contracting parties and provide clarity on the funding process under sections
5342 to 5348 of this title; and
(C) otherwise reconcile and modernize the rules to comport with the activities of the contracting
parties under sections 5342 to 5348 of this title as of December 31, 2018.
(2) Report
Not later than 30 days after the date the rulemaking under paragraph (1) is complete, the Secretary
shall submit a report to Congress describing the results of such rulemaking and necessary
recommendations to ensure the full implementation of such rulemaking.
(i) Student privacy
The Secretary shall ensure that data is collected and each report is prepared under this section in a
manner that protects the rights of eligible Indian students in accordance with section 1232g of title 20
(commonly referred to as the Family Educational Rights and Privacy Act of 1974).
(j) GAO Report
Not later than 18 months after the final report described in subsection (b)(1)(B)(iv) is published, the
Comptroller General shall—
(1) conduct a review of the implementation of this section during the preceding 2-year period, including
any factors impacting—
(A) the accuracy of the determinations of the number of eligible Indian students under this section;
(B) the communication between the Bureau of Indian Education and contracting parties; and
(C) the efforts by the Bureau of Indian Education to ensure accurate and sufficient distribution of
funding for Indian students;
(2) submit a report describing the results of the review under paragraph (1) to—
(A) the Committee on Indian Affairs of the Senate;
(B) the Subcommittee on Interior, Environment, and Related Agencies of the Committee on
Appropriations of the Senate;
(C) the Subcommittee on Indian, Insular and Alaska Native Affairs of the Committee on Natural
Resources of the House of Representatives; and
(D) the Subcommittee on Interior, Environment, and Related Agencies of the Committee on
Appropriations of the House of Representatives; and
(3) make such report publicly available.
(k) Effect
Nothing in this section—
(1) creates a new program or duplicates program activities under sections 5342 to 5348 of this title; or
(2) replaces or diminishes the effect of regulations to carry out sections 5342 to 5348 of this title existing
on the day before December 31, 2018, unless expressly provided in this section.
(Apr. 16, 1934, ch. 147, §7, as added Pub. L. 115–404, §2, Dec. 31, 2018, 132 Stat. 5349.)

REFERENCES IN TEXT
The Johnson-O'Malley Supplemental Indian Education Program Modernization Act, referred
to subsec. (a)(4), is Pub. L. 115–404, Dec. 31, 2018, 132 Stat. 5349, which enacted this section
and provisions set out as a note under section 5301 of this title. For complete classification of
this Act to the Code, see Short Title of 2018 Amendment note set out under section 5301 of this

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title and Tables.
The Elementary and Secondary Education Act of 1965, referred to in subsec. (f)(1)(B), is Pub.
L. 89–10, Apr. 11, 1965, 79 Stat. 27. Title VI of the Act is classified generally to subchapter VI
(§7401 et seq.) of chapter 70 of Title 20, Education. For complete classification of this Act to the
Code, see Short Title note set out under section 6301 of Title 20 and Tables.

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