#aae? ,,congress  #b;d ,session  ,9 !   
,h\se ( ,repres5tatives1 ,u4 ,s41       
,decemb] #aa1 #bjah  ,,am5dm5t3  ,t !   
bill f ! ,s5ate 7,s4 #idc7 entitl$ ,an  
,act to direct ! ,secret>y ( ! ,int]ior 
to conduct an accurate compreh5sive     
/ud5t c\nt = ! purposes ( calculat+     
=mula allocations = programs "u !       
,johnson-,o',malley ,act1 & = o!r       
purposes41 d pass ) ! foll[+ ,/rike out 
all aft] ! enact+ clause & ins]t3  #a4  
,%ort title ,?is ,act may be cit$ z !   
,johnson-,o',malley ,supplem5tal ,indian
 ,education ,program ,mod]nization ,act4
  #b4 ,indian education program /ud5t   
c\nt update ,! ,act ( ,april #af1 #aicd 
7#be ,u4,s4,c4 #ecdb et seq47 7commonly 
ref]r$ to z ! ,johnson-,o',malley ,act7 
is am5d$ by add+ at ! end ! foll[+3  #g4
 ,computation ( /ud5t c\nt  7a7         
,def9itions ,= ! purposes ( ?is ,act1 ! 
foll[+ def9itions apply3 7#a7 ,contract+
 p>ty ,! t]m contract+ p>ty means an    
entity t has a contract ?r\gh a program 
au?oriz$ "u ?is ,act4  7#b7 ,eligible   

entity ,! t]m eligible entity means an  
entity t is eligible to apply = a       
contract = a supplem5tal or op]ational  
support program "u ?is ,act1 z outl9$ 9 
section #a4  7#c7 ,exi/+ contract+ p>ty 
,! t]m exi/+ contract+ p>ty means a     
contract+ p>ty t has a contract "u ?is  
,act t is 9 effect on ! date ( enactm5t 
( ! ,,jom ,mod]nization ,act4  7#d7     
,,jom ,mod]nization ,act ,! t]m ,,jom   
,mod]nization ,act means !              
,johnson-,o',malley ,supplem5tal ,indian
 ,education ,program ,mod]nization ,act4
  7#e7 ,new contract+ p>ty ,! t]m new   
contract+ p>ty means an entity t ent]s  
into a contract "u ?is ,act aft] ! date 
( enactm5t ( ! ,,jom ,mod]nization ,act4
  7#f7 ,secret>y ,! t]m ,secret>y means 
! ,secret>y ( ! ,int]ior4  7b7          
,det]m9ation ( ! numb] ( eligible       
,indian /ud5ts  7#a7 ,initial           
det]m9ations  7,a7 ,9 g5]al ,! ,secret>y
 %all make an initial det]m9ation ( !   
numb] ( eligible ,indian /ud5ts s]v$ or 
pot5tially s]v$ by ea* eligible entity 9

 accordance ) subp>agraph 7,b74  7,b7   
,process = mak+ ! initial det]m9ation   
7i7 ,prelim9>y report ,n lat] ?an #ahj  
days aft] ! date ( enactm5t ( ! ,,jom   
,mod]nization ,act1 ! ,secret>y %all    
publi% a prelim9>y report describ+ !    
numb] ( eligible ,indian /ud5ts s]v$ or 
pot5tially s]v$ by ea* eligible entity1 
us+ ! mo/ applicable & accurate data 7z 
det]m9$ by ! ,secret>y 9 consultation ) 
eligible entities7 f ! fiscal ye> prec$+
 ! fiscal ye> = :i* ! initial           
det]m9ation is to be made f-- 7,i7 !    
,bureau ( ! ,c5sus2  7,,ii7 ! ,national 
,c5t] = ,education ,/ati/ics2 or        
7,,iii7 ! ,(fice ( ,indian ,education ( 
! ,dep>tm5t ( ,education4  7ii7 ,data   
reconciliation ,to improve ! accuracy ( 
! prelim9>y report describ$ 9 clause 7i7
 prior to publi%+1 ! ,secret>y %all     
reconcile ! data describ$ 9 ! prelim9>y 
report )-- 7,i7 ea* exi/+ contract+     
p>ty's data reg>d+ ! numb] ( eligible   
,indian /ud5ts s]v$ by ! exi/+ contract+
 p>ty = ! fiscal ye> prec$+ ! fiscal ye>

 = :i* ! initial det]m9ation is made2 & 
7,,ii7 id5tifiable tribal enrollm5t     
in=mation4  7iii7 ,comm5t p]iod ,aft]   
publi%+ ! prelim9>y report "u clause 7i7
 9 accordance ) clause 7ii71 ! ,secret>y
 %all e/abli% a #fj-;day comm5t p]iod to
 ga9 fe$back ab\t ! prelim9>y report f  
eligible entities1 :i* ! ,secret>y %all 
take into consid]ation 9 prep>+ ! f9al  
report describ$ 9 clause 7iv74  7iv7    
,f9al report ,n lat] ?an #abj days aft] 
conclud+ ! consultation describ$ 9      
clause 7iii71 ! ,secret>y %all publi% a 
f9al report on ! initial det]m9ation ( !
 numb] ( eligible ,indian /ud5ts s]v$ or
 pot5tially s]v$ by ea* eligible entity1
 includ+ ju/ification = n includ+ any   
fe$back ga9$ dur+ su* consultation1 if  
applicable4  7#b7 ,subsequ5t academic   
ye>s ,= ea* academic ye> foll[+ ! fiscal
 ye> = :i* an initial det]m9ation is    
made "u p>agraph 7#a7 to det]m9e ! numb]
 ( eligible ,indian /ud5ts s]v$ or      
pot5tially s]v$ by a contract+ p>ty1 !  
,secret>y %all det]m9e ! numb] (        

eligible ,indian /ud5ts s]v$ by !       
contract+ p>ty bas$ on ! report$        
eligible ,indian /ud5t c\nt numb]s      
id5tifi$ ?r\gh ! report+ process        
describ$ 9 subsection 7c74  7c7         
,contract+ p>ty /ud5t c\nt report+      
compliance  7#a7 ,9 g5]al ,= ea*        
academic ye> foll[+ ! fiscal ye> = :i*  
an initial det]m9ation is made "u       
subsection 7b7 to det]m9e ! numb] (     
eligible ,indian /ud5ts s]v$ or         
pot5tially s]v$ by a contract+ p>ty1 !  
contract+ p>ty %all submit to !         
,secret>y a report describ+ ! numb] (   
eligible ,indian /ud5ts :o 7 s]v$ us+   
am\nts allocat$ to su* p>ty "u ?is ,act 
dur+ ! previ\s fiscal ye>4 ,! report    
%all also include an acc\nt+ ( ! am\nts 
& purposes = :i* ! contract funds 7     
exp5d$4  7#b7 ,failure to comply ,a     
contract+ p>ty t fails to submit a      
report "u p>agraph 7#a7 %all receive no 
am\nts "u ?is ,act = ! fiscal ye> foll[+
 ! academic ye> = :i* ! report %\ld h   
be5 submitt$4  7#c7 ,notice ,! ,secret>y

 %all provide contract+ p>ties ) timely 
in=mation relat+ to-- 7,a7 initial &    
f9al report+ deadl9es2 &  7,b7 !        
consequ5ces ( failure to comply outl9$ 9
 p>agraph 7#b74  7#d7 ,te*nical         
assi/ance ,! ,secret>y1 act+ ?r\gh !    
,director ( ! ,bureau ( ,indian         
,education1 %all provide te*nical       
assi/ance & tra9+ on compliance ) !     
report+ requirem5ts ( ?is subsection to 
contract+ p>ties4  7d7 ,annual report   
7#a7 ,9 g5]al ,! ,secret>y %all prep>e  
an annual report1 includ+ ! mo/ rec5t   
det]m9ation ( ! numb] ( eligible ,indian
 /ud5ts s]v$ by ea* contract+ p>ty1     
recomm5dations on appropriate fund+     
levels = ! program bas$ on su*          
det]m9ation1 & an assessm5t ( !         
contracts "u ?is ,act t ! ,secret>y--   
7,a7 may include 9 ! budget reque/ ( !  
,dep>tm5t ( ! ,int]ior = ea* fiscal ye>2
  7,b7 %all submit to-- 7i7 ! ,committee
 on ,indian ,affairs ( ! ,s5ate2  7ii7 !
 ,subcommittee on ,int]ior1 ,environm5t1
 & ,relat$ ,ag5cies ( ! ,committee on   

,appropriations ( ! ,s5ate2  7iii7 !    
,committee on ,education & ! ,work=ce ( 
! ,h\se ( ,repres5tatives2 &  7iv7 !    
,subcommittee on ,int]ior1 ,environm5t1 
& ,relat$ ,ag5cies ( ! ,committee on    
,appropriations ( ! ,h\se (             
,repres5tatives2 &  7,c7 %all make      
publicly available4  7#b7 ,mann] (      
prep>ation ,! ,secret>y %all prep>e !   
report "u p>agraph 7#a7 9 a mann] s z to
 prev5t or m9imize new adm9i/rative     
burd5s on contract+ p>ties receiv+ funds
 "u ?is ,act4  7e7 ,hold h>mless  7#a7  
,initial hold h>mless  7,a7 ,9 g5]al    
,except z provid$ "u subp>agraph 7,b7 & 
subject to subp>agraphs 7,c7 & 7,d71 = a
 fiscal ye>1 an exi/+ contract+ p>ty    
%all n receive an am\nt "u ?is ,act t is
 less ?an ! am\nt t su* exi/+ contract+ 
p>ty receiv$ "u ?is ,act = ! fiscal ye> 
prec$+ ! date ( enactm5t ( ! ,,jom      
,mod]nization ,act4  7,b7 ,exceptions   
7i7 ,9 g5]al ,an exi/+ contract+ p>ty   
%all receive an am\nt "u ?is ,act = a   
fiscal ye> t is less ?an ! am\nt t !    

exi/+ contract+ p>ty receiv$ "u ?is ,act
 = ! fiscal ye> prec$+ ! date ( enactm5t
 ( ! ,,jom ,mod]nization ,act1 if "o or 
m ( ! foll[+ conditions is met3 7,i7    
,failure to report ,! exi/+ contract+   
p>ty fail$ to submit a complete report  
describ$ 9 subsection 7c7 t 0 mo/       
rec5tly due f ! date ( ! det]m9ation4   
7,,ii7 ,violations ( contract or law ,! 
,secret>y has f\nd t ! exi/+ contract+  
p>ty has violat$ ! t]ms ( a contract    
ent]$ into "u ?is ,act or has o!rwise   
violat$ ,f$]al law4  7,,iii7 ,/ud5t c\nt
 decrease ,! numb] ( eligible ,indian   
/ud5ts report$ by su* exi/+ contract+   
p>ty "u subsection 7c7 has decreas$ bel[
 ! numb] ( eligible ,indian /ud5ts s]v$ 
by ! exi/+ contract+ p>ty 9 ! fiscal ye>
 prec$+ ! date ( enactm5t ( ! ,,jom     
,mod]nization ,act4  7ii7 ,am\nt ( fund+
 r$uction = exi/+ contract+ p>ties      
report+ decreas$ /ud5t c\nts ,a r$uction
 9 an am\nt pursuant to clause          
7i77,,iii7 %all n be done 9 su* a mann] 
t ! exi/+ contract+ p>ty receives an    

am\nt ( fund+ p] eligible ,indian /ud5t 
t is less ?an ! am\nt ( fund+ p]        
eligible ,indian /ud5t su* p>ty receiv$ 
= ! fiscal ye> prec$+ ! date ( enactm5t 
( ! ,,jom ,mod]nization ,act4  7,c7     
,ratable r$uctions 9 appropriations ,if 
! funds available "u ?is ,act = a fiscal
 ye> are insuffici5t to pay ! full      
am\nts t all exi/+ contract+ p>ties are 
eligible to receive "u subp>agraph 7,a7 
= ! fiscal ye>1 ! ,secret>y %all ratably
 r$uce ^? am\nts = ! fiscal ye>4  7,d7  
,sunset ,?is p>agraph %all cease to be  
effective #d ye>s aft] ! date ( enactm5t
 ( ! ,,jom ,mod]nization ,act4  7#b7    
,maximum decrease aft] #d ye>s ,beg9n+  
#d ye>s aft] ! date ( enactm5t ( ! ,,jom
 ,mod]nization ,act1 no contract+ p>ty  
%all receive = a fiscal ye> m ?an a #aj 
p]c5t decrease 9 fund+ p] eligible      
,indian /ud5t f ! previ\s fiscal ye>4   
7f7 ,fund+ allocation & re=m  7#a7      
,fund+ re=m ,! ,secret>y may make       
recomm5dations = legislation to increase
 ! am\nt ( funds available p] eligible  

,indian /ud5t ?r\gh contracts "u ?is    
,act to equal to or great] ?an ! am\nt (
 funds t 7 available p] eligible ,indian
 /ud5t ?r\gh contracts "u ?is ,act =    
fiscal ye> #aiie1 & attempt to id5tify  
additional s\rces ( fund+ t d n         
reallocate exi/+ funds o!rwise utiliz$  
by ,indian /ud5ts s]v$-- 7,a7 by !      
,bureau ( ,indian ,education2 or  7,b7  
"u title ,,vi ( ! ,elem5t>y & ,second>y 
,education ,act ( #aife 7#bj ,u4,s4,c4  
#gdja et seq474  7#b7 ,increases 9      
program fund+  7,a7 ,9 g5]al ,subject to
 subsection 7e7 & subp>agraph 7,b71 =   
any fiscal ye> = :i* ! am\nt appropriat$
 to c>ry out ?is ,act exce$s ! am\nt    
appropriat$ to c>ry out ?is ,act = !    
prec$+ fiscal ye>1 ! excess am\nts      
%all--  7i7 be allocat$ only to ^?      
contract+ p>ties t did n receive _! full
 p] /ud5t fund+ allocation = ! previ\s  
fiscal ye>2 &  7ii7 be allocat$ fir/ to 
new contract+ p>ties t did n receive _! 
full p] /ud5t fund+ allocation = !      
previ\s fiscal ye>4  7,b7 ,p>ity 9 fund+

 ,subp>agraph 7,a7 %all h no effect aft]
 ! fir/ fiscal ye> = :i* ea* contract+  
p>ty receives _! full p] /ud5t fund+    
allocation4  7g7 ,increas$ geographical 
& tribal p>ticipation 9 !               
,johnson-,o',malley ,supplem5t>y        
,education ,program ,to ! maximum ext5t 
practicable1 ! ,secret>y %all consult ) 
,indian tribes & contact ,/ate          
educational ag5cies1 local educational  
ag5cies1 & ,alaska ,native organizations
 t h n previ\sly ent]$ into a contract  
"u ?is ,act--  7#a7 to det]m9e ! int]e/ 
( ! ,indian tribes1 ,/ate educational   
ag5cies1 local educational ag5cies1 &   
,alaska ,native organizations1 9 ent]+  
into su* contracts2 &  7#b7 to %>e      
in=mation relat+ to ! process = ent]+   
into a contract "u ?is ,act4  7h7       
,rulemak+  7#a7 ,9 g5]al ,n lat] ?an #a 
ye> aft] ! date ( enactm5t ( ! ,,jom    
,mod]nization ,act1 ! ,secret>y1 act+   
?r\gh ! ,director ( ! ,bureau ( ,indian 
,education1 %all und]take & complete a  
rulemak+ process1 foll[+ ! provisions ( 

sub*apt] ,,ii ( *apt] #e ( title #e1    
,unit$ ,/ates ,code1 to-- 7,a7 det]m9e  
h[ ! regulatory def9ition ( eligible    
,indian /ud5t may be revis$ to cl>ify   
eligibility requirem5ts = contract+     
p>ties "u ?is ,act2  7,b7 det]m9e1 z    
necess>y1 h[ ! fund+ =mula describ$ 9   
section #bgc4ca ( title #be1 ,code (    
,f$]al ,regulations 7z 9 effect on ! day
 be=e ! date ( enactm5t ( ! ,,jom       
,mod]nization ,act7 may be cl>ifi$ &    
revis$ to ensure full p>ticipation (    
contract+ p>ties & provide cl>ity on !  
fund+ process "u ?is ,act2 &  7,c7      
o!rwise reconcile & mod]nize ! rules to 
comport ) ! activities ( ! contract+    
p>ties "u ?is ,act z ( ! date ( enactm5t
 ( ! ,,jom ,mod]nization ,act4  7#b7    
,report ,n lat] ?an #cj days aft] ! date
 ! rulemak+ "u p>agraph 7#a7 is         
complete1 ! ,secret>y %all submit a     
report to ,congress describ+ ! results (
 su* rulemak+ & necess>y recomm5dations 
to ensure ! full implem5tation ( su*    
rulemak+4  7i7 ,/ud5t privacy ,!        

,secret>y %all ensure t data is collect$
 & ea* report is prep>$ "u ?is section 9
 a mann] t protects ! rights ( eligible 
,indian /ud5ts 9 accordance ) section   
#ddd ( ! ,g5]al ,education ,provisions  
,act 7commonly ref]r$ to z ! ,family    
,educational ,rights & ,privacy ,act (  
#aigd7 7#bj ,u4,s4,c4 #abcb;g74  7j7    
,,gao report ,n lat] ?an #ah mon?s aft] 
! f9al report describ$ 9 subsection     
7b77#a77;,b77iv7 is publi%$1 !          
,comptroll] ,g5]al %all-- 7#a7 conduct a
 review ( ! implem5tation ( ?is section 
dur+ ! prec$+ #b-ye> p]iod1 includ+ any 
factors impact+--  7,a7 ! accuracy ( !  
det]m9ations ( ! numb] ( eligible       
,indian /ud5ts "u ?is section2  7,b7 !  
communication betwe5 ! ,bureau ( ,indian
 ,education & contract+ p>ties2 &  7,c7 
! ef=ts by ! ,bureau ( ,indian          
,education to ensure accurate &         
suffici5t di/ribution ( fund+ = ,indian 
/ud5ts2  7#b7 submit a report describ+ !
 results ( ! review "u p>agraph 7#a7    
to--  7,a7 ! ,committee on ,indian      

,affairs ( ! ,s5ate2  7,b7 !            
,subcommittee on ,int]ior1 ,environm5t1 
& ,relat$ ,ag5cies ( ! ,committee on    
,appropriations ( ! ,s5ate2  7,c7 !     
,subcommittee on ,indian1 ,insul> &     
,alaska ,native ,affairs ( ! ,committee 
on ,natural ,res\rces ( ! ,h\se (       
,repres5tatives2 &  7,d7 ! ,subcommittee
 on ,int]ior1 ,environm5t1 & ,relat$    
,ag5cies ( ! ,committee on              
,appropriations ( ! ,h\se (             
,repres5tatives2 &  7#c7 make su* report
 publicly available4  7k7 ,effect ,no?+ 
9 ?is section--  7#a7 creates a new     
program or duplicates program activities
 "u ?is ,act2 or  7#b7 replaces or      
dim9i%es ! effect ( regulations to c>ry 
out ?is ,act exi/+ on ! day be=e ! date 
( enactm5t ( ! ,,jom ,mod]nization ,act1
 unless expressly provid$ 9 ?is section4
  4  ,cl]k4