(1) The state board of education may take any necessary action consistent with state law to comply with the provisions of Public Law 85-864 (1958), as amended, being 20 U.S.C. sections 401 et seq., and known as the “federal national defense education act of 1958”, and to accept and expend federal funds available under that act for the extension and improvement of the state’s educational program, as outlined in state plans approved by the United States commissioner of education.

    (2) The state board of education may take any necessary action consistent with state law to comply with the provisions of Public Law 89-329 (1965), as amended, being 20 U.S.C. sections 1001 et seq., and known as the “higher education act of 1965” to strengthen the educational resources of Michigan colleges and universities and to provide financial assistance for students in post-secondary and higher education through a program of administration, research, and consultation. The state board of education may accept and expend federal funds available under such provisions and promulgate rules necessary for the conduct of this program. The state board of education shall submit to the legislature on or before April 1 of each year a report of projects conducted during the preceding year under the federal higher education act of 1965, as amended.

    (3) This shall not be construed as authorization to expend nor to incur any obligation to expend any state funds in excess of any amount which may be appropriated by the legislature for programs under subsections (1) and (2). Any funds appropriated shall be paid out of the state treasury in accordance with any fund accounting procedures necessary to assure proper distribution of and accounting for federal funds paid to the state for these programs.