; and (II) by striking 1 percent and inserting 2 percent ; (ii) in subparagraph (B)(ii), by striking subsection (g) and inserting subsection (h) ; and (iii) by adding at the end the following: (C) Performance bonus (i) In general Notwithstanding subparagraph (A), for any fiscal year for which the amount appropriated under subsection (h) is not less than $140,000,000, the Secretary may pay a performance bonus to an eligible institution of higher education. (ii) Maximum amount A bonus paid to an eligible institution of higher education under clause (i) for a fiscal year shall not exceed an amount equal to 20 percent of the amount of the annual grant payment received by the institution under paragraph (3)(B) for the fiscal year preceding the fiscal year for which the bonus is paid. (iii) Use of bonus A bonus received by an institution under clause (i) shall be used by the institution in the same manner as a grant under this section and shall be treated as grant funds for purposes of the application of paragraph (5), except that the Secretary may extend the grant period as necessary for the institution to use such bonus. (iv) Eligible institution of higher education In this subparagraph, the term eligible institution of higher education means an institution of higher education that— (I) has received a grant under this section for not less than the period of three consecutive fiscal years preceding the fiscal year in which the bonus is paid under clause (i); (II) for each such preceding fiscal year, has met or exceeded the performance levels established by the institution for such year under subsection (e)(1)(B)(v); and (III) has demonstrated the need for such bonus. ; and (B) in paragraph (3)— (i) in subparagraph (A), by striking 4 years and inserting 5 years ; and (ii) in subparagraph (B), by striking subsection (e)(2) and inserting subsection (e)(3)