; (B) to invest under section 105; (C) to make distributions in accordance with this title; (D) to pay the administrative expenses of carrying out this title; and (E) to purchase insurance as provided in section 107(c)(2). (2) Exclusive purposes The sums in the American Opportunity Fund shall not be appropriated for any purpose other than the purposes specified in this section and may not be used for any other purpose. (d) Transfers to American Opportunity Fund The Secretary shall make transfers from the general fund of the Treasury to the American Opportunity Fund as follows: (1) Initial contribution for eligible individuals born after December 31, 2018 Upon receipt of a certification under section 103(b)(2) with respect to an individual born after December 31, 2018, the Secretary shall transfer $1,000 to the AO account of the individual. (2) Annual contributions (A) In general Each year which occurs after the year in which an AO account is established for an eligible individual and before the year the eligible individual attains the age of 18, the Secretary shall transfer the annual contribution amount to the AO account of the individual. (B) Annual contribution amount The annual contribution amount shall be the amount such that the annual contribution amount for any taxpayer whose household income is within an income tier specified in the following table shall decrease, on a sliding scale in a linear manner, from the initial amount to the final amount specified in such table for such income tier: In the case of household income (expressed as a percent of the poverty line) within the following income tier: The initial amount is— The final amount is— Up to 100 percent $2,000 $2,000 100 percent up to 125 percent 2,000 1,500 125 percent up to 175 percent 1,500 1,000 175 percent up to 225 percent 1,000 500 225 percent up to 325 percent 500 250 325 percent up to 500 percent 250 0 500 percent or more 0 0 (C) Applicable household income