a Federal Pell Grant under section 401. (6) Public 4-year institution of higher education The term public 4-year institution of higher education has the meaning given the term in section 901. (b) Authorization of grant program (1) In general From amounts appropriated under subsection (e), the Secretary shall award grants, from allotments under paragraph (2), to eligible institutions having applications approved under subsection (c), to enable the eligible institutions to eliminate or significantly reduce tuition and required fees for eligible students. (2) Allotments Subject to paragraph (3), the Secretary shall allot, for each award year, to each eligible institution having an application approved under subsection (c), an amount that is equal to the product of— (A) tuition and required fees for eligible students at the eligible institution for the award year, and (B) the number of full-time equivalent eligible students projected to enroll in the eligible institution for the award year. (3) Limitations (A) Limitations on institutional allotments In making allotments under paragraph (2) for an award year, the Secretary shall not award an allotment that is— (i) with respect to an eligible institution that operates in a State that has eliminated tuition and required fees as described in paragraphs (2) and (3) of section 901(d) for the preceding award year, more than the amount equal to the product of— (I) the number of projected full-time equivalent eligible students for the award year