the preceding fiscal year bears to the total amount of Federal Pell Grant funds awarded at all institutions participating under this part for the preceding fiscal year. (B) An amount equal to 50 percent of the amount that bears the same proportion to the available appropriated amount for such fiscal year as the total amount of the undergraduate student need at the institution for the preceding fiscal year bears to the total amount of undergraduate student need at all institutions participating under this part for the preceding fiscal year. (3) Eligibility for fair share amount The Secretary may not allocate funds under this subpart to any institution that, for 2 or more fiscal years during any 3 fiscal year period beginning not earlier than the first day of the first fiscal year that is 2 years after the date of the enactment of this paragraph, has a student population with less than 7 percent of undergraduate students who are recipients of Federal Pell Grants. (d) Definitions In this section: (1) Average cost of attendance The term average cost of attendance has the meaning given the term in section 4202(e)(5)(B). (2) Undergraduate student need The term undergraduate student need means, with respect to an undergraduate student for an award year, the lesser of the following: (A) The total of the amount equal to (except the amount computed by this clause shall not be less than zero)— (i) the average cost of attendance for the award year, minus (ii) such undergraduate student’s expected family contribution (computed in accordance with part F of this title) for the preceding award year. (B) The total loan annual limit for a Federal Direct Unsubsidized Stafford Loan and a Federal Direct Loan. . 4044. Emergency financial aid grant program Part A of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070b et seq.) is amended by adding at the end the following: 11 Emergency Financial Aid Grants 440D. Emergency financial aid grant program (a) Emergency financial aid grant programs authorized The Secretary shall