20 U.S.C. § 1161n–3

(a) Authorization From the amounts appropriated under section 1161n–4 of this title , the Secretary is authorized, in accordance with the provisions of this section, to make grants and enter into contracts— (1) from the amounts available in each fiscal year under section 1161n–1(a)(3) of this title , for the conduct of demonstration projects designed to demonstrate or determine the effectiveness of innovative methods of cooperative education; (2) from the amounts available in each fiscal year under section 1161n–1(a)(4) of this title , for the conduct of training and resource centers designed to— (A) train personnel in the field of cooperative education; (B) improve materials used in cooperative education programs if such improvement is conducted in conjunction with other activities described in this paragraph; (C) provide technical assistance to institutions of higher education to increase the potential of the institution to continue to conduct a cooperative education program without Federal assistance; (D) encourage model cooperative education programs that furnish education and training in occupations in which there is a national need; (E) support partnerships under which an institution carrying out a comprehensive cooperative education program joins with one or more institutions of higher education in order to— (i) assist the institution that is not the institution carrying out the cooperative education program to develop and expand an existing program of cooperative education; or (ii) establish and improve or expand comprehensive cooperative education programs; and (F) encourage model cooperative education programs in the fields of science and mathematics for women and minorities who are underrepresented in such fields; and (3) from the amounts available in each fiscal year under section 1161n–1(a)(5) of this title , for the conduct of research relating to cooperative education. (b) Administrative provision (1) In general To carry out this section, the Secretary may— (A) make grants to or contracts with institutions of higher education or consortia of such institutions; and (B) make grants to or contracts with other public or private nonprofit agencies or organizations, whenever such grants or contracts will contribute to the objectives of this section. (2) Limitation (A) Contracts with institutions of higher education The Secretary may use not more than three percent of the amount appropriated to carry out this section in each fiscal year to enter into contracts described in paragraph (1)(A). (B) Contracts with other agencies or organizations The Secretary may use not more than three percent of the amount appropriated to carry out this section in each fiscal year to enter into contracts described in paragraph (1)(B). (c) Supplement not supplant A recipient of a grant or contract under this section may use the funds provided only to supplement funds made available from non-Federal sources to carry out the activities supported by such grant or contract, and in no case to supplant such funds from non-Federal sources.