; and (B) after making reductions under subparagraph (A) , ratably reduce the amount of the tuition and fee payments made on behalf of all other eligible students. (2) Adjustments The Governor, in consultation with the Secretary of Education, may adjust the amount of tuition and fee payments made under paragraph (1) based on— (A) the financial need of the eligible students to avoid undue hardship to the eligible students; or (B) undue administrative burdens on the Governor. (3) Further adjustments Notwithstanding paragraphs (1) and (2), the Governor may prioritize the making or amount of tuition and fee payments under this subsection based on the income and need of eligible students. (c) Definitions In this section: (1) Eligible institution The term eligible institution means an institution that— (A) is a public four-year institution of higher education located in one of the several States, the District of Columbia, Puerto Rico, or Guam; (B) is eligible to participate in the student financial assistance programs under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq. ); and (C) enters into an agreement with the Governor containing such terms and conditions as the Governor and institution may jointly specify, including a requirement that the institution use the funds made available under this section to supplement and not supplant assistance that otherwise would be provided to eligible students from the United States Virgin Islands. (2) Eligible student The term eligible student means an individual who— (A) was domiciled in the United States Virgin Islands for not less than the 12 consecutive months preceding the commencement of the freshman year at an institution of higher education; (B) graduated from a secondary school in the United States Virgin Islands, or received the recognized equivalent of a secondary school diploma while domiciled in the United States Virgin Islands, on or after January 1, 2013