Developing Institutions Amendments of 1979

Developing Institutions Amendments of 1979 - Amends title III of the Higher Education Act of 1965 to direct the Secretary of Health and Human Services (formerly, the Secretary of Health, Education, and Welfare) to carry out a program to improve the academic quality, institutional management, and fiscal stability of developing institutions. Defines "developing institution" as an institution of higher education of which: (1) the enrollment includes a substantial percentage of students from low-income families; and (2) the average educational and general expenditures are low, per full-time equivalent student, in comparison with institutions that offer similar instruction. Allows the Secretary to waive such expenditure criterion, if the institution submits persuasive evidence that its failure to meet such criterion is due to distorting factors and that its designation as a developing institution would be consistent with the purposes of this Act. Directs the Secretary to submit an annual report to Congress on such institutions receiving such waiver.

Authorizes appropriations in specified amounts to carry out such program for fiscal years 1981 through 1985. Directs the Secretary to make available: (1) at least 24 percent of such sums appropriated in any fiscal year to junior or community colleges and the remainder to institutions planning to award a bachelor's degree during such year; and (2) at least 25 percent of such sums for four-to-seven year grants to institutions.

Authorizes appropriations in specified amounts for challenge grants for fiscal years 1982 through 1985.

Sets forth conditions of eligibility for grants for developing institutions. Authorizes the Secretary to waive such requirements if such waiver will increase higher education opportunities appropriate to the needs of: (1) American Indians (and the institution is located on or near an Indian reservation or a substantial population of Indians); (2) Spanish-speaking people; or (3) low-income people.

Sets forth: (1) allowable purposes and durations of grants; (2) requirements for applications for assistance; (3) requirements for challenge grants; (4) provisions for assistance to developing institutions under other programs under such Act; and (5) limitations on the use of funds appropriated to carry out this Act.