; and (B) at current or former centers of excellence under section 464z–4. . XII Education 1201. Grants for schools of medicine in diverse and underserved areas Subpart II of part C of title VII of the Public Health Service Act is amended by inserting after section 749B of such Act ( 42 U.S.C. 293m ) the following: 749C. Schools of medicine in underserved areas (a) Grants The Secretary, acting through the Administrator of the Health Resources and Services Administration, may award grants to institutions of higher education (including multiple institutions of higher education applying jointly) for the establishment, improvement, and expansion of an allopathic or osteopathic school of medicine, or a branch campus of an allopathic or osteopathic school of medicine. (b) Priority In selecting grant recipients under this section, the Secretary shall give priority to institutions of higher education that— (1) propose to use the grant for an allopathic or osteopathic school of medicine, or a branch campus of an allopathic or osteopathic school of medicine, in a combined statistical area with fewer than 200 actively practicing physicians per 100,000 residents according to the medical board (or boards) of the State (or States) involved; (2) have a curriculum that emphasizes care for diverse and underserved populations; or (3) are minority-serving institutions described in the list in section 371(a) of the Higher Education Act of 1965. (c) Use of funds The activities for which a grant under this section may be used include— (1) planning and constructing— (A) a new allopathic or osteopathic school of medicine in an area in which no other school is based; or (B) a branch campus of an allopathic or osteopathic school of medicine in an area in which no such school is based; (2) accreditation and planning activities for an allopathic or osteopathic school of medicine or branch campus; (3) hiring faculty and other staff to serve at an allopathic or osteopathic school of medicine or branch campus