---
kind: "section"
citation: "20 U.S.C. § 130aa–3"
title: "20"
title_heading: "Education"
number: "130aa–3"
heading: "Withdrawals and expenditures"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/130aa-3"
units:
  - "Chapter 8 — Howard University"
  - "Subchapter II — Endowment"
---

# §130aa–3. Withdrawals and expenditures

- (a) **Defrayment of expenses; restrictions on use of income or corpus; limits on withdrawals or expenditures—** The [University](/usc/20/130aa.md?p=5) may withdraw and expend its [endowment fund income](/usc/20/130aa.md?p=3) to defray any expenses necessary to its operation, including expenses of operations and maintenance, administration, academic and support personnel, construction and renovation, community and student services programs, technical assistance, and research. No [endowment fund income](/usc/20/130aa.md?p=3) or corpus may be used for any type of support of the executive officers of the [University](/usc/20/130aa.md?p=5) or for any commercial enterprise or endeavor entered into after January 1, 1981. Except as provided in [subsection (b)](#b), the [University](/usc/20/130aa.md?p=5) shall not, in the aggregate, withdraw or expend more than 50 per centum of the total aggregate [endowment fund income](/usc/20/130aa.md?p=3) earned prior to the time of withdrawal or expenditure.
- (b) **Authority of Secretary; withdrawal or expenditure beyond limits; circumstances demonstrating necessity—** The [Secretary](/usc/20/130aa.md?p=4) is authorized to permit the [University](/usc/20/130aa.md?p=5) to withdraw or expend more than 50 per centum of its total aggregate endowment income whenever the [University](/usc/20/130aa.md?p=5) demonstrates such withdrawal or expenditure is necessary because of—
  - (A) a financial emergency, such as a pending insolvency or temporary liquidity problem;
  - (B) a life-threatening situation occasioned by a natural disaster or arson; or
  - (C) another unusual occurrence or exigent circumstance.
- (c) **Repayment of Federal share of amounts improperly expended or withdrawn; endowment fund corpus; income—**
  - (1) If the [University](/usc/20/130aa.md?p=5) withdraws or expends more than the [endowment fund income](/usc/20/130aa.md?p=3) authorized by this section, the [University](/usc/20/130aa.md?p=5) shall repay the [Secretary](/usc/20/130aa.md?p=4) an amount equal to 50 per centum of the amount improperly expended (representing the Federal share thereof).
  - (2) The [University](/usc/20/130aa.md?p=5) shall not withdraw or expend any [endowment fund corpus](/usc/20/130aa.md?p=2). If the [University](/usc/20/130aa.md?p=5) withdraws or expends any [endowment fund corpus](/usc/20/130aa.md?p=2), the [University](/usc/20/130aa.md?p=5) shall repay the [Secretary](/usc/20/130aa.md?p=4) an amount equal to 50 per centum of the amount withdrawn or expended (representing the Federal share thereof) plus any income earned thereon.

## Source credit

(Pub. L. 98–480, title II, § 205, Oct. 17, 1984, 98 Stat. 2246.)