(a) Subject to subsection (b) of this section, the Secretary may enter into an agreement to provide to any college or university which is primarily supported by the State in which it is located (hereinafter in this subchapter referred to as “institution”) the following assistance to enable such institution to establish a new medical school:(1) The extension, alteration, remodeling, improvement, or repair of buildings and structures (including, as part of a lease made under paragraph (1), the provision of equipment) provided under paragraph (1) to the extent necessary to make them suitable for use as medical school facilities. (2) The making of grants to assist the institution to pay the cost of the salaries of the faculty of such school during the initial 12-month period of operation of the school and the next six such 12-month periods, but payment under this paragraph may not exceed an amount equal to—(A) 90 percent of the cost of faculty salaries during the first 12-month period of operation, (B) 90 percent of such cost during the second such period, (C) 90 percent of such cost during the third such period, (D) 80 percent of such cost during the fourth such period, (E) 70 percent of such cost during the fifth such period, (F) 60 percent of such cost during the sixth such period, and (G) 50 percent of such cost during the seventh and eighth such periods.
(b)(1) The Secretary may not enter into any agreement under subsection (a) of this section unless the Secretary finds, and the agreement includes satisfactory assurances, that—(A) there will be adequate State or other financial support for the proposed school; (B) the overall plans for the school meet such professional and other standards as the Secretary deems appropriate; (C) the school will maintain such arrangements with the Department medical facility with which it is associated (including but not limited to such arrangements as may be made under subchapter IV of chapter 81 of this title) as will be mutually beneficial in the carrying out of the mission of the medical facility and the school; and (D) on the basis of consultation with the appropriate accreditation body or bodies approved for such purpose by the Secretary of Education, there is reasonable assurance that, with the aid of an agreement under subsection (a) of this section, such school will meet the accreditation standards of such body or bodies within a reasonable time. (2) Any agreement entered into by the Secretary under this subchapter shall contain such terms and conditions (in addition to those imposed pursuant to section 8201(e) of this title and subsection (b)(1) of this section) as the Secretary deems necessary and appropriate to protect the interest of the United States.
(c) If the Secretary, in accordance with such regulations as the Secretary shall prescribe, determines that any school established with assistance under this chapter—(1) is not accredited and fails to gain appropriate accreditation within a reasonable period of time; (2) is accredited but fails substantially to carry out the terms of the agreement entered into under this chapter; or (3) is no longer operated for the purpose for which such assistance was granted, the Secretary shall be entitled to recover from the recipient of assistance under this chapter the facilities of such school which were established with assistance under this chapter. In order to recover such facilities the Secretary may bring an action in the district court of the United States for the district in which such facilities are situated.
