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This rule would correct section 273.12 of the regulations regarding when students are eligible for benefits of education contracts under the Johnson-O’Malley Act (JOM), by deleting the requirement for Indian students to have 1/4 or more degree of Indian blood.  The JOM authorizes the Secretary of the Interior to enter into contracts with States, schools, and private organizations and to expend appropriated funds in support of Indian students under those contracts.  Currently, the regulations state that Indian students are eligible for benefits of a JOM contract if they are of 1/4 or more degree Indian blood and are recognized by the Secretary as being eligible for Bureau services.  In 1990, a U.S. District Court stated that this regulatory requirement was too restrictive.  Since that Court ruling, the Department has required only membership in a federally recognized Tribe; the Department does not require a certain degree of Indian blood.  As such, this rule would delete the requirement for a blood degree quantum to make the regulations consistent with past practice and court order.