(a) Amount of grant awards (1) In general Except as provided in subsection (b) of this section and paragraph (2), the Secretary shall allocate to each local educational agency that has an approved application under this subpart an amount equal to the product of - (A) the number of Indian children who are eligible under section 7427 of this title and served by such agency; and (B) the greater of - (i) the average per pupil expenditure of the State in which such agency is located; or (ii) 80 percent of the average per pupil expenditure of all the States. (2) Reduction The Secretary shall reduce the amount of each allocation otherwise determined under this section in accordance with subsection (e) of this section. (b) Minimum grant (1) In general Notwithstanding subsection (e) of this section, an entity that is eligible for a grant under section 7422 of this title, and a school that is operated or supported by the Bureau of Indian Affairs that is eligible for a grant under subsection (d) of this section, that submits an application that is approved by the Secretary, shall, subject to appropriations, receive a grant under this subpart in an amount that is not less than $3,000. (2) Consortia Local educational agencies may form a consortium for the purpose of obtaining grants under this subpart. (3) Increase The Secretary may increase the minimum grant under paragraph (1) to not more than $4,000 for all grantees if the Secretary determines such increase is necessary to ensure the quality of the programs provided. (c) Definition For the purpose of this section, the term "average per pupil expenditure", used with respect to a State, means an amount equal to - (1) the sum of the aggregate current expenditures of all the local educational agencies in the State, plus any direct current expenditures by the State for the operation of such agencies, without regard to the sources of funds from which such local or State expenditures were made, during the second fiscal year preceding the fiscal year for which the computation is made; divided by (2) the aggregate number of children who were included in average daily attendance for whom such agencies provided free public education during such preceding fiscal year. (d) Schools operated or supported by the Bureau of Indian Affairs (1) In general Subject to subsection (e) of this section, in addition to the grants awarded under subsection (a) of this section, the Secretary shall allocate to the Secretary of the Interior an amount equal to the product of - (A) the total number of Indian children enrolled in schools that are operated by - (i) the Bureau of Indian Affairs; or (ii) an Indian tribe, or an organization controlled or sanctioned by an Indian tribal government, for the children of that tribe under a contract with, or grant from, the Department of the Interior under the Indian Self-Determination Act [25 U.S.C. 450f et seq.] or the Tribally Controlled Schools Act of 1988 [25 U.S.C. 2501 et seq.]; and (B) the greater of - (i) the average per pupil expenditure of the State in which the school is located; or (ii) 80 percent of the average per pupil expenditure of all the States. (2) Special rule Any school described in paragraph (1)(A) that wishes to receive an allocation under this subpart shall submit an application in accordance with section 7424 of this title, and shall otherwise be treated as a local educational agency for the purpose of this subpart, except that such school shall not be subject to section 7424(c)(4) of this title, section 7428(c) of this title, or section 7429 of this title. (e) Ratable reductions If the sums appropriated for any fiscal year under section 7492(a) of this title are insufficient to pay in full the amounts determined for local educational agencies under subsection (a)(1) of this section and for the Secretary of the Interior under subsection (d) of this section, each of those amounts shall be ratably reduced.