; and (ii) shall not be disbursed for the year until the Partnership Office created under section 499A–4(a) reviews and approves the annual update submitted by the institution pursuant to subsection (f). (B) Ratable reduction If the amount appropriated to carry out this section for a fiscal year is insufficient to award each eligible institution the institution's full grant amount pursuant to subparagraph (A), the Secretary shall establish procedures for ratably reducing each institution's award amount for such fiscal year. (2) Waivers (A) In general Subject to subparagraph (B), if the percentage of students eligible to receive a Federal Pell Grant who are enrolled at an eligible institution that receives a grant under this section decreases to less than 35 percent after the first year of the grant award, such institution may apply to the Secretary for a waiver of the requirement that an institution to be eligible to receive a grant under this section have not less than 35 percent of the students enrolled at the institution eligible to receive a Federal Pell Grant. (B) Restrictions on waiver The Secretary shall grant a waiver under subparagraph (A)— (i) only if the decrease in percentage is— (I) small relative to the size of the student body; or (II) the result of unexpected or uncontrollable circumstances; and (ii) not more than 2 times during the 5-year grant period. (e) Use of grant funds (1) In general An eligible institution that receives a grant under this section shall use the grant funds as follows: (A) 95 percent of the grant funds shall be— (i) used to cover the unmet need for financial assistance to attend the institution of students who have not yet earned a bachelor’s degree