; and (B) by striking equal to or greater than the Federal funds and inserting equal to 50 percent of the Federal funds ; and (2) by inserting after paragraph (3) the following: (4) Scholarships An eligible institution that uses grant funds provided under this section to establish or increase an endowment fund may use the interest proceeds from such endowment to provide scholarships to students for the purposes of attending such institution. . (c) Allotments and application process (1) Allotments Section 324 of the Higher Education Act of 1965 ( 20 U.S.C. 1063 ) is amended— (A) in subsection (c), by striking 5 and inserting 6 ; (B) in subsection (d)(1), by striking subparagraphs (A) and (B) and inserting the following: (A) less than $500,000 for a part B institution which has received a grant under this part, the Secretary shall award the part B institution an allotment in the amount of $500,000; and (B) less than $250,000 for a part B institution which has not received a grant under this part for a fiscal year prior to fiscal year 2017, the Secretary shall award the part B institution an allotment in the amount of $250,000. ; and (C) in subsection (h)— (i) in paragraphs (1)(C) and (2)(C), by striking within 5 years each time it appears and inserting within 6 years ; and (ii) by adding at the end the following: (3) Limitation for new institutions Notwithstanding any other provision of this section, no part B institution that would otherwise be eligible for funds under this part shall receive an allotment under this part for a fiscal year, unless— (A) such institution received an allotment under this part for fiscal year 2017