---
kind: "section"
citation: "20 U.S.C. § 10004"
title: "20"
title_heading: "Education"
number: "10004"
heading: "Uses of funds by institutions of higher education"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/10004"
units:
  - "Chapter 80 — State Fiscal Stabilization Fund"
---

# §10004. Uses of funds by institutions of higher education

- (a) **In general—** A public [institution of higher education](/usc/20/10013.md?p=3) that receives funds under this chapter shall use the funds for education and general expenditures, and in such a way as to mitigate the need to raise tuition and fees for in-[State](/usc/20/10013.md?p=5) students, or for modernization, renovation, or repair of [institution of higher education](/usc/20/10013.md?p=3) facilities that are primarily used for instruction, research, or student housing, including modernization, renovation, and repairs that are consistent with a recognized green building rating system.
- (b) **Prohibition—** An [institution of higher education](/usc/20/10013.md?p=3) may not use funds received under this chapter to increase its endowment.
- (c) **Additional prohibition—** No funds awarded under this chapter may be used for—
  - (1) the maintenance of systems, equipment, or facilities;
  - (2) modernization, renovation, or repair of stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public; or
  - (3) modernization, renovation, or repair of facilities—
    - (A) used for sectarian instruction or religious worship; or
    - (B) in which a substantial portion of the functions of the facilities are subsumed in a religious mission.

## Source credit

(Pub. L. 111–5, div. A, title XIV, § 14004, Feb. 17, 2009, 123 Stat. 281.)