{"data":{"id":"us-dc/d.c.-code-38-2402.07a","jurisdiction":"us-dc","citation":"D.C. Code § 38-2402.07a","heading":"Federal endowment programs for Gallaudet University and the National Technical Institute for the Deaf.","body":"(a)\n(1)\nThe Secretary and the Board of Trustees of Gallaudet University are authorized to establish the Gallaudet University Federal Endowment Fund as a permanent endowment fund, in accordance with this section, for the purpose of promoting the financial independence of the University. The Secretary and the Board of Trustees may enter into such agreements as may be necessary to carry out the purposes of this section with respect to the University.\n(2)\nThe Secretary and the Board of Trustees or other governing body of the institution of higher education with which the Secretary has an agreement under § 38-2401.12 are authorized to establish the National Technical Institute for the Deaf Federal Endowment Fund as a permanent endowment fund, in accordance with this section, for the purpose of promoting the financial independence of NTID. The Secretary and the Board or other governing body may enter into such agreements as may be necessary to carry out the purposes of this section with respect to NTID.\n\n(b)\n(1)\nThe Secretary shall, consistent with this section, make payments to the Federal endowment funds established under subsection (a) of this section from amounts appropriated under subsection (h) of this section for the fund involved.\n(2)\nSubject to the availability of appropriations and the nonfederal matching requirements of paragraph (3) of this subsection, the Secretary shall make payments to each Federal endowment fund in amounts equal to sums contributed to the fund from nonfederal sources (excluding transfers from other endowment funds of the institution involved).\n(3)\nEffective for fiscal year 1993 and each succeeding fiscal year, for any fiscal year in which the sums contributed to the federal endowment fund of the institution involved from nonfederal sources exceed $1,000,000, the nonfederal contribution to the federal endowment shall be $2 for each federal dollar provided in excess of $1,000,000 (excluding transfers from other endowment funds of the institution involved).\n\n(c)\n(1)\nExcept as provided in subsection (e) of this section, the University and NTID, respectively, shall invest its federal endowment fund corpus and income in instruments and securities offered through one or more cooperative service organizations of operating educational organizations under section 501(f) of the Internal Revenue Code of 1986, or in low-risk instruments and securities in which a regulated insurance company may invest under the laws of the State in which the institution involved is located.\n(2)\nIn managing the investment of its federal endowment fund, the University or NTID shall exercise the judgment and care, under the prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of that person’s own business affairs.\n(3)\nNeither the University nor NTID may invest its federal endowment fund corpus or income in real estate, or in instruments or securities issued by an organization in which an executive officer, a member of the Board of Trustees of the University or of the host institution, or a member of the advisory group established under § 38-2401.12 is a controlling shareholder, director, or owner within the meaning of federal securities laws and other applicable laws. Neither the University nor NTID may assign, hypothecate, encumber, or create a lien on the federal endowment fund corpus without specific written authorization of the Secretary.\n\n(d)\n(1)\nExcept as provided in paragraph (3)(B) of this subsection, neither the University nor NTID may withdraw or expend any of the corpus of its federal endowment fund.\n(2)\n(A)\nThe University and NTID, respectively, may withdraw or expend the income of its federal endowment fund only for expenses necessary to the operation of that institution, including expenses of operations and maintenance, administration, academic and support personnel, construction and renovation, community and student services programs, technical assistance, and research.\n(B)\nNeither the University nor NTID may withdraw or expend the income of its federal endowment fund for any commercial purpose.\n(C)\nBeginning on October 1, 1992, the University and NTID shall maintain records of the income generated from its respective federal endowment fund for the prior fiscal year.\n(3)\n(A)\nExcept as provided in subparagraph (B) of this paragraph, the University and NTID, respectively, may, on an annual basis, withdraw or expend not more than 50 percent of the income generated from its federal endowment fund from the prior fiscal year.\n(B)\nThe Secretary may permit the University or NTID to withdraw or expend a portion of its federal endowment fund corpus or more than 50 percent of the income generated from its federal endowment fund from the prior fiscal year if the institution involved demonstrates, to the Secretary’s satisfaction, that such withdrawal or expenditure is necessary because of:\n(i)\nA financial emergency, such as a pending insolvency or temporary liquidity problem;\n(ii)\nA life-threatening situation occasioned by natural disaster or arson; or\n(iii)\nAnother unusual occurrence or exigent circumstance.\n\n(e)\nThe corpus associated with a federal payment (and its nonfederal match) made to the federal endowment fund of the University or NTID shall not be subject to the investment limitations of subsection (c)(1) of this section after 10 fiscal years following the fiscal year in which the funds are matched, and the income generated from such corpus after the tenth fiscal year described in this subsection shall not be subject to such investment limitations or to the withdrawal and expenditure limitations of subsection (d)(3) of this section.\n\n(f)\nAfter notice and an opportunity for a hearing, the Secretary is authorized to recover any federal payments under this section if the University or NTID:\n(1)\nMakes a withdrawal or expenditure of the corpus or income of its federal endowment fund that is not consistent with this section;\n(2)\nFails to comply with the investment standards and limitations under this section; or\n(3)\nFails to account properly to the Secretary concerning the investment of or expenditures from the federal endowment fund corpus or income.\n\n(g)\nAs used in this section:\n(1)\nThe term “corpus”, with respect to a federal endowment fund under this section, means an amount equal to the federal payments to such fund, amounts contributed to the fund from nonfederal sources, and appreciation from capital gains and reinvestment of income.\n(2)\nThe term “federal endowment fund” means a fund, or a tax-exempt foundation, established and maintained pursuant to this section by the University or NTID, as the case may be, for the purpose of generating income for the support of the institution involved.\n(3)\nThe term “income”, with respect to a federal endowment fund under this section, means an amount equal to the dividends and interest accruing from investments of the corpus of such fund.\n(4)\nThe term “institution involved” means the University or NTID, as the case may be.\n\n(h)\n(1)\nIn the case of the University, there are authorized to be appropriated for the purposes of this section such sums as may be necessary for each of the fiscal years 1993 through 1997.\n(2)\nIn the case of NTID, there are authorized to be appropriated for the purposes of this section such sums as may be necessary for each of the fiscal years 1993 through 1997.\n(3)\nAmounts appropriated under paragraph (1) or (2) shall remain available until expended.\n\n(i)\nThe provisions of this section shall take effect as if included in this Act as enacted on August 4, 1986.","path":["Title 38. Educational Institutions.","Chapter 24. Education for the Deaf.","Subchapter II. General Provisions."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/38-2402.07a","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"9371e9a238e616c593514c2311b953868901ed15fdda1f6a93c2892e4c4c2033","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-38-2402.07","next":"us-dc/d.c.-code-38-2402.08"},"notice":"GroundRules: Original legal text. Not legal advice."}