(a) The institutional matching contribution may be used to--
(1) Provide additional fellowships to graduate students who are not already receiving fellowships under this part and who satisfy the requirements of Sec. 648.40;
(2) Pay for tuition, fees, and the costs listed in Sec. 648.62(b);
(3) Pay for costs of providing a fellow's instruction that are not included in the tuition or fees paid to the institution in which the fellow is enrolled; and
(4) Supplement the stipend received by a fellow under Sec. 648.51 in an amount not to exceed a fellow's financial need.
(b) An institution may not use its institutional matching contribution to fund fellowships that were funded by the institution prior to the award of the grant. (Authority: 20 U.S.C. 1135, 1135b, 1135c)