[Federal Register Volume 59, Number 5 (Friday, January 7, 1994)]
[Proposed Rules]
[Pages 1194-1236]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-322]


[[Page Unknown]]

[Federal Register: January 7, 1994]


_______________________________________________________________________

Part III

_______________________________________________________________________





Corporation for National and Community Service





_______________________________________________________________________



45 CFR Part 2510, et al.




Corporation Grant Programs and Support and Investment Activities; 
Proposed Rule
CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 2510, 2513, 2515, 2516, 2517, 2518, 2519, 2520, 2521, 
2522, 2523, 2524, 2530, 2531, 2532, 2533, and 2540

 
Corporation Grant Programs and Support and Investment Activities

AGENCY: Corporation for National and Community Service.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Corporation for National and Community Service (the 
Corporation) is issuing this rule concerning the Corporation's 
grantmaking programs and various support and investment activities as 
authorized by the National and Community Service Act of 1990, as 
amended by the National and Community Service Trust Act of 1993 (the 
Act). The activities and grants described in this rule are designed to 
help address the Nation's human, educational, environmental, and public 
safety needs through national and community service. This rulemaking 
describes the different types of national and community service 
programs the Corporation may support, funding available for those 
programs, processes by which grants will be awarded, training and 
technical support services available for program development and 
applications, and Corporation plans to invest in service 
infrastructure.

DATES: Comments on the proposed rule, as well as the draft 
applications, must be received no later than February 7, 1994.

ADDRESSES: Comments may be mailed to the Corporation for National and 
Community Service, P.O. Box 34680, Washington, DC 20043-4680. Comments 
received may also be inspected at the Corporation for National and 
Community Service, Office of the General Counsel, Room 9200, 1100 
Vermont Avenue, Washington, DC 20525, between 9 a.m. and 5 p.m.
    The Corporation also will make available copies of drafts of 
applications for programs described in these regulations. These 
applications may be obtained by writing to the above address.

FOR FURTHER INFORMATION CONTACT: Terry Russell, (202) 606-4949 (Voice) 
or (202) 606-5256 (TDD), between the hours of 9 a.m. and 6 p.m. Eastern 
Standard Time. For individuals with disabilities, information will be 
made available in alternative formats, upon request.

SUPPLEMENTARY INFORMATION: The Supplementary Information section 
explains the basis and purpose of the proposed regulations--providing a 
context for understanding the policy decisions that underly them--and 
provides information on the Corporation's plans for fiscal year 1994. 
This Supplementary Information section should not be viewed as 
comprehensive. Congress made numerous policy decisions that went into 
the writing of the Act. These decisions, along with minor decisions 
made by the Corporation in interpreting the Act, are not discussed.

Invitation to Comment

Regulations

    The Corporation invites written comments on the text of the 
proposed regulations and requests that the comments identify the 
specific regulatory provisions to which they relate. However, comments 
on the Supplementary Information section should focus on policy issues 
rather than specific language or construction.

Applications

    Interested parties may obtain copies of drafts of the various grant 
applications from the Corporation as they become available. These 
applications will be in draft form, however, and should not be used to 
apply for funds. The forms are being reviewed by the Office of 
Management and Budget. We estimate that, on average, it will take 
approximately ten hours to fill out each of the forms. Any comments on 
the forms should be sent as soon as possible to the Corporation at the 
above address, as well as to the U.S. Office of Management and Budget, 
Attention: Steve Semenuk, New Executive Office Building, room 3001, 
Washington, DC 20503.

The Corporation's Mission and the Purpose of This Rule

Overall Mission

    The Corporation's mission is to engage Americans of all ages and 
backgrounds in community-based service. This service will address the 
Nation's educational, public safety, human, and environmental needs to 
achieve direct and demonstrable results. In doing so, the Corporation 
will foster civic responsibility, strengthen the ties that bind us 
together as a people, and provide educational opportunity for those who 
make a substantial commitment to service.

Purpose of this Rule

    The purpose of this rule is to establish policies and procedures 
for the activities the Corporation will undertake to achieve the goals 
described above. This rule should serve as a guide to explain the 
eligibility requirements, application processes, selection criteria, 
program requirements, and other relevant information for individuals, 
programs, public and private nonprofits, institutions of higher 
education, States, Indian tribes, and other entities wishing to 
participate.

Impact of Programs

    All programs under the National and Community Service Act have in 
common the goal of achieving three types of impact: ``getting things 
done,'' improving the lives of participants, and strengthening the ties 
that bind communities together. All programs, whether they involve 
elementary school children or senior citizens, are equally able to 
achieve the last ``community-building'' impact--by involving people of 
different backgrounds together in a common effort, by promoting civic 
responsibility so that every member of a community feels responsibility 
for its stewardship, and by breaking down barriers of mistrust and 
misunderstanding. The other two impacts are weighted differently for 
different program types based on the age and experience of the 
participants.
    At the one extreme, the service-learning programs for school-age 
youth may indeed help to solve the pressing problems of communities, 
but their primary impact will be and should be on the lives of the 
participants. They should improve their educational motivation and 
achievement, citizenship skills, teamwork, and problem solving 
abilities. At the other extreme, for a professional corps of adults who 
are highly educated and highly skilled, the primary impact must be on 
getting things done in communities, with the receipt of an educational 
award for loan repayment as the main participant impact. Given the 
higher costs of these programs and the advanced education level of the 
participants, it is imperative that the work they do be highly valued 
by communities and the Nation. Programs like youth corps, which lie 
somewhere in the middle in terms of age and education level of 
participants, should achieve a balance of impacts. By keeping this 
calculus in mind, potential applicants can appropriately gauge the 
amount of program resources that should be dedicated to participant 
education, life skills training, and other types of participant 
support.

STATE PLAN ISSUES

(1) General Purpose

    Section 178(e) of the Act requires every State Commission to 
prepare a national service plan (the ``State Plan'') for submission to 
the Corporation for approval. The law requires that the State Plan (a) 
be developed through an open and public process that ensures outreach 
to diverse community-based agencies that serve underrepresented 
populations, and (b) cover a three year period and be updated annually. 
With the exception of section 122(c) of the Act, which requires each 
State to establish State-based priorities through the State Plan, the 
law is silent as to the overall purpose and content of the plan itself.
    In part 2513 of this rule, the Corporation has clarified the 
purpose of the State Plan, indicating the information it must contain 
and the criteria by which it will be evaluated. In general, the 
Corporation intends for the State Plan to be an essential component of 
a State's overall application; it should indicate a State's strategy 
for supporting national and community service activities--including 
proposed programs and other volunteer activities--within the State. The 
State Plan is intended to bring diverse constituencies within the State 
together for the purpose of promoting and supporting national and 
community service, and it will be a factor in the Corporation's 
evaluation of State applications.

(2) Development of the State Plan

    The State Plan should be developed through an open, public and 
inclusive process (such as through regional forums, hearings, or other 
means) that provides for maximum participation and input from national 
and community service programs within the State and other interested 
individuals, including representatives of the private sector, 
organizations involved in meeting educational, public safety, human, 
and environmental needs, community-based organizations, and 
constituencies that might not otherwise be formally involved with 
national and community service programs. The State Plan should also be 
developed in a non-partisan, non-political manner.

(3) Required Components

    Section 2513.30 of this rule details the required components of the 
State Plan. The following information is provided as supplemental 
information on three aspects of the Plan:
    (a) Overview of State experience and ``historical context'' for 
service programming. The State Plan, especially in the first year, 
should provide a context for understanding the development of national 
and community service activities within the State, including the extent 
to which the State has been involved in the development or support of 
such activities. It should also provide an overview of the broad array 
of organized service activities within the State, including, to the 
extent practicable, activities not funded by the Corporation. The 
primary goal for this section is to gain a ``snapshot'' of service 
within the State, and to determine the extent to which States have an 
established infrastructure to support high quality national and 
community service programs, including the capacity to provide technical 
assistance to prospective applicants and funded programs. In this 
regard, the Plan will provide a baseline against which the Corporation 
may assess future progress and activities.
    (b) Establishment of goals and priorities. This section of the plan 
should detail the goals and strategies identified by the State to 
achieve the purposes of the Plan set forth above. In addition, any 
State priorities that will govern the programs proposed for support 
with formula funding should be clearly identified and explained, 
including if appropriate a description of why the priorities were 
established and how they relate to the national priorities established 
by the Corporation.
    (c) Description of process. The State Plan must specifically 
describe the manner in which the State has conducted an open and 
inclusive process to develop the State Plan and the priorities.

(4) Evaluation Criteria

    The State Plan will be evaluated on two principal criteria: quality 
and sustainability. These criteria are described in part 2513.40. In 
addition, the quality of the State Plan itself will also be factored 
into the Corporations overall evaluation of a State Commission's 
application. Specifically, the submission of a State Plan that meets 
the quality criteria established by the Corporation is an eligibility 
requirement for States seeking formula funding under the national and 
community service grant program. The quality of the State Plan will 
also be factored into the Corporation's selection of programs for 
competitive State funding. Finally, the Corporation may consider the 
quality of the State Plan in determining whether to renew State 
Commission administrative support under part 2550 of this rule.

SERVICE-LEARNING ISSUES

    The K-12 service-learning programs--i.e., the school- and 
community-based programs described in parts 2516 and 2517 of this 
rule--as well as the Higher Education service-learning programs 
described in part 2519 of this rule, aim to engage school-age youth and 
students of all ages in activities to help meet the educational, public 
safety, human, and environmental needs of America's communities. 
Service-learning programs provide participants with structured, 
sometimes curriculum-based opportunities to reflect on and learn from 
their service experiences, often enhancing their academic skills, their 
sense of civic responsibility, their ability to solve community 
problems, and their understanding of important concepts such as 
community, diversity, and citizenship.
    In similar ways, the higher education programs strive to develop 
the academic and civic skills of students by supporting efforts of 
colleges and universities to help meet community needs.

(A) K-12 SERVICE-LEARNING ISSUES

(1) Coordination With State Plans

    Any State or grantmaking entity that applies for school-or 
community-based K-12 service-learning support must coordinate its 
service-learning activities with the development of the comprehensive 
State Plan described in part 2513 of this rule. This requirement is 
designed to facilitate the integration of K-12 service-learning 
programs into the overall national service efforts of each State.
    The Corporation will consider the extent and quality of 
coordination with the development of the State Plan in assessing the 
merits of applications submitted by States or grantmaking entities. 
However, because State Plans will be in different stages of 
development, any applicant that makes a good faith effort at 
coordination will not be disadvantaged in the selection process.

(2) Terms of Grants

    The Corporation has set the maximum term of most grants at three 
years, subject to satisfactory performance and annual appropriations. 
In addition to facilitating coordination with the State Plan, the three 
year term (a) allows programs to evolve and improve over time, learning 
from mistakes and making adjustments to ensure quality, and (b) allows 
the Corporation to track and learn from the development of programs 
over time.
    A one-year term will be set for planning grants made to school-
based program applicants, as well as grants to local partnerships 
States not participating. This policy reflects the purpose of a 
planning grant: to move programs from a sound program concept to the 
brink of implementing a fully operational program. These grants thus 
should be used for such activities as seeking community input, building 
partnerships, developing curricula and materials, recruiting staff, 
etc.

(3) Treatment of ACTION Student Community Service Program and 
Commission on National and Community Service Grantees

    High quality programs that received ACTION Student Community or 
Commission funds are encouraged to seek Corporation grants.

(4) Stipends

    The Act prohibits using school-based service-learning funds to 
provide stipends to participants. With this rule, the Corporation 
extends this restriction to Corporation funds awarded to community-
based service-learning programs in order to conserve and focus the 
relatively small amount of funds available for community-based 
programs.

(B) HIGHER EDUCATION SERVICE-LEARNING ISSUES

(1) Coordination With State Commissions

    The Act is silent on the extent to which Higher Education service-
learning programs should be coordinated with State Commissions. In 
considering this issue, the Corporation sought to balance (1) a desire 
to promote coordination among national and community service programs 
within each State, with (2) the concerns that programs not be unduly 
burdened with bureaucratic procedures and that the Corporation, as the 
direct funder of Higher Education service-learning programs, retain 
control of selection, monitoring, and evaluation.
    As a result, in fiscal year 1994 the Corporation is requiring an 
assurance that, prior to submitting a Higher Education service-learning 
application, applicants will send one copy of the final proposal to the 
State Commission in each State where the program will operate. The 
State will have no part in selecting programs to be funded. However, as 
stated in the selection criteria of the application, evidence of 
support from a State Commission or consistency with a State 
comprehensive plan may improve the competitiveness of a program in the 
review process.

(2) Educational Awards

    Section 119(f) of the Act states that ``a participant in a program 
funded under this part shall be eligible for the national service 
educational award if the participant served in an approved national 
service position.'' However, the Act provides no guidance on what kinds 
of Higher Education service-learning programs involve participants in 
positions eligible to be approved AmeriCorps positions.
    Since institutions of higher education are eligible to apply for 
AmeriCorps program support, campus-based programs fitting one or more 
of the AmeriCorps program types described in Sec. 2522.110 should apply 
as AmeriCorps programs rather than as Higher Education service-learning 
programs. This reflects the idea that Higher Education service-learning 
programs should have a distinctive service-learning emphasis; it was 
not intended to be a grant program that merely supplements the 
AmeriCorps funds.
    The Corporation examined whether certain other types of positions 
in a Higher Education service-learning programs should be provided 
AmeriCorps educational awards. In Sec. 2519.320 of this rule, the 
Corporation retains flexibility on this issue. In the fiscal year 1994 
application, the Corporation expects to provide AmeriCorps educational 
awards only to programs with positions designed to increase 
participation in community service on campus, to develop projects and 
partnerships in the community, or to facilitate service-learning in 
campus-based programs. They are similar to other AmeriCorps positions 
such as service-learning coordinators for school-based service-learning 
programs or crew leaders in youth corps. Positions of this type are 
essential for the longevity and progress of the service movement.
    Any Higher Education service-learning program whose participants 
receive educational awards must meet the minimum AmeriCorps program 
requirements described in Section 2522.100 of this rule. As Higher 
Education service-learning programs, however, they will be reviewed 
according to selection criteria and priorities that apply to all Higher 
Education service-learning applicants.

(3) Treatment of Existing Grantees of the ACTION Student Community 
Service Program and the Commission on National and Community Service

    ACTION and Commission grantees may seek funds to continue and build 
on activities carried out under their current grants. In the fiscal 
year 1994 application, the Corporation requires these grantees to 
submit an application that will be reviewed on a competitive basis 
according to the selection criteria applicable to all Higher Education 
service-learning applicants. However, the Corporation will give 
preference to applicants that offer evidence of positive performance 
relative to stated objectives under their existing grants. This policy 
is consistent with the Corporation's intent to select among all Higher 
Education service-learning applicants on the basis of quality, while 
giving existing grantees in good standing sufficient opportunity to 
develop and become self-sustaining.
    Applicants for renewal funding are expected to reduce their 
dependence on Federal funds and to demonstrate clearly their potential 
for sustainability, in accordance with the guidelines in the 
application.

(4) Priorities

    This rule gives priority to proposals that (among other 
characteristics) demonstrate the commitment of the higher education 
institution as a whole and specify how grant funds will be used to 
strengthen the capacity of institutions of higher education to support 
service.
    The Corporation aims to fund programs supported not only by 
students but also by the college or university presidents, faculty 
members, and even trustees. An institutional commitment, beginning with 
the institution's top leadership, enhances program quality and 
sustainability by making resources from diverse areas of the 
institution available to the program, by ensuring continuity of the 
program as students come and go, and by signaling to the community that 
the institution views the program as an integral part of--not an ``add-
on'' to--its core functions.
    Moreover, as colleges and universities across the Nation develop 
more model programs, the Corporation aims to fund efforts to link 
individual initiatives within a campus or across several campuses in 
supportive networks that facilitate replication of effective models, 
delivery of training and technical assistance, access to information 
and resources, development and dissemination of materials, and 
evaluation of impacts. These activities, which build the capacity of 
higher education institutions to improve the quality of community 
service and service-learning programs, require strong infrastructures 
within and across institutions.

AMERICORPS PROGRAM ISSUES

Section I: Programmatic Issues

(A) Overview and Purpose of Grant Program: ``Getting Things Done''

    AmeriCorps is about getting things done. It will engage the energy 
and idealism of the American people, especially young people, in 
addressing the most critical educational, public safety, human, and 
environmental needs of our communities. It will strengthen communities 
and the civic character of our people through service, and reward those 
who answer the call to service with enhanced educational opportunity. 
The purpose of the AmeriCorps grant program, therefore, is to support 
locally driven programs that meet rigorous national standards. This 
strategy will enable communities across the Nation to channel the 
unique talents and creativity of America toward effectively addressing 
these most important needs. For these efforts to be successful, 
however, it is essential to ensure that they provide direct and 
demonstrable benefits that are valued by communities.
    To achieve this outcome, the Corporation has attempted through 
these regulations to provide clear guidance to programs seeking 
assistance under the grant program. First, the regulations clarify the 
nature of service activities eligible for support under the Act. 
Second, to enhance the collective impact that all programs will have 
within the four broad issue areas specified by law, the Corporation has 
also exercised its authority to establish national priorities. Third, 
to ensure that each of the diverse programs supported through the grant 
program is of the highest possible quality, the Corporation has also 
specified minimum program requirements that all programs must address. 
And finally, the Corporation has clarified issues pertaining to 
participant eligibility and benefits.

(B) Eligible Service Activities

(1) Description of Eligible Service Activities
    There are numerous pressing needs throughout our communities that 
may be appropriately addressed by AmeriCorps programs. But given the 
realities of limited resources and the extent to which other public, 
private and non-profit responses to many of these needs already exist, 
it is important that an AmeriCorps program undertake activities that 
are appropriate to the program's overall mission and capacity and that 
achieve the greatest positive impact possible. To this end, the 
Corporation has provided a framework for eligible service activities 
that builds on the parameters specified in the law.
    The Corporation's proposed regulation (as set forth in part 2520) 
limits service to activities that provide a direct benefit to the 
community where they are performed or that involve the supervision of 
participants or volunteers whose service provides a direct benefit to 
the community where it is performed. The Corporation determined, based 
upon the inclusion in the Act of several program types involving such 
supervision, such as service-learning coordinator programs, that 
Congress intended for supervision of participants or others performing 
service to be included as an eligible service activity, provided that 
the service of those supervised would itself qualify.
    In determining whether service ``provides a direct benefit to the 
community where it is performed,'' the Corporation will take into 
consideration several factors, including whether the service must be 
performed physically in the community to be effective and whether the 
service brings participants face-to-face with residents of the 
community served or in contact with the physical environment that is 
the ``beneficiary'' of the service. Direct service includes physical 
projects like renovating low-income housing or creating a playground in 
a vacant lot, as well as less tangible projects like tutoring, 
mentoring and conflict resolution.
    To further define what constitutes a ``direct benefit,'' the 
Corporation's proposed regulation offers several examples of activities 
that would not meet this test: fundraising, clerical work, and 
research. This list is not intended to be limiting; other activities 
may also fail the ``direct benefit'' test. However, if an activity does 
not provide a direct benefit, it is not necessarily altogether 
prohibited. Rather, unless it falls into one of the ``prohibited'' 
categories discussed below, the activity may be performed if it is 
incidental to the direct service. For example, a team whose project 
involves providing meals, transportation, and health services to the 
homebound might conduct a door to door survey of community residents to 
help locate those in need of services; if they then went on to provide 
those services, this kind of research would be an appropriate activity 
for the team.
(2) Prohibited Activities
    Prohibited activities (specified in Sec. 2520.30) may not be 
performed by participants in the course of their duties, at the request 
of program staff, or in a manner that would associate the activities 
with the AmeriCorps program or the Corporation. These activities 
include: influencing legislation, as defined in the section of the IRS 
code relating to non-profit organizations; organizing protests, 
petitions, boycotts, or strikes; assisting, promoting or deterring 
union organizing; participating in partisan political activities; and 
performing religious activities, such as conducting worship services or 
engaging in religious proselytization. Of course, participants may 
engage in any of these activities at their own initiative, on their own 
time, and in a manner that is not associated with their participation 
in the program.
(3) General Guidance
    In all cases, service activities must result in a specific 
identifiable service or improvement that otherwise would not be 
provided with existing funds or volunteers and that does not duplicate 
the routine functions of workers or displace paid employees. Further, 
service opportunities should be appropriate to the skill levels of 
participants, and they should provide a long-lasting, identifiable, and 
demonstrable benefit that is valued by the community.
    While the Corporation reserves the right to further restrict 
eligible service, it has not done so because it recognizes that the 
character of service often depends on its content and context. For 
example, distributing leaflets may provide a ``direct benefit'' if the 
leaflets inform readers about the availability of free immunizations or 
how to conserve energy in the home. Conversely, distributing leaflets 
supporting a political candidate, or urge individuals to write their 
legislators about an issue, would be prohibited. Given the great 
educational, public safety, human, and environmental needs of our 
communities, it should not be difficult for programs to identify 
projects that clearly provide a direct benefit.

(C) Establishment of State and National Priorities

(1) State Priorities
    As discussed earlier, States must establish and, through the State 
planning process, periodically alter priorities in the areas of 
educational, public safety, human, and environmental needs. These 
priorities apply to programs that receive assistance (funding or 
AmeriCorps educational awards) provided on a formula basis as described 
in Sec. 2521.30(a)(1). The State priorities will be subject to 
Corporation review as part of the AmeriCorps application process under 
Subpart C of part 2522 of this rule.
(2) National Priorities
    In order to concentrate national efforts on addressing certain 
educational, public safety, human, and environmental needs, the 
Corporation will establish and, after review of the strategic plan 
approved by the Corporation's Board of Directors, periodically alter 
priorities regarding the AmeriCorps programs that will receive 
assistance (funding or AmeriCorps educational awards) and the purposes 
for which such assistance may be used. These priorities apply to 
assistance provided on a competitive basis as described in 
Sec. 2521.30(a)(2) and (b)(3), and to any assistance provided through a 
subgrant of such funds.
    (a) National Priorities for Fiscal Year 1994. For fiscal year 1994, 
the Corporation has established the following national priorities 
within each of the four broad issue areas:
    (i) Education. (A) School Readiness: Furthering early childhood 
development; and
    (B) School Success: Improving the educational achievement of 
school-age children.
    (ii) Public safety. (A) Crime Prevention: Reducing the incidence of 
violence; and
    (B) Crime Control: Improving criminal justice services, law 
enforcement, and victim services.
    (iii) Human needs. (A) Health: Providing independent living 
assistance and home-and community-based health care; and
    (B) Home: Rebuilding neighborhoods and helping people who are 
homeless.
    (iv) Environment. (A) Neighborhood Environment: Reducing community 
environmental hazards; and
    (B) Natural Environment: Conserving, restoring, and sustaining 
natural habitats.
    (b) Application of Priorities to Programs. The National priorities 
established by the Corporation apply to programs seeking State 
competitive and national direct grants from the Corporation, as 
specified in Sec. 2521.30 of this rule. Programs included in the State 
formula application are not governed by these priorities, but rather by 
priorities established by the State consistent with part 2513 of this 
rule. A more thorough description of how these National priorities will 
affect program selection in each of the major grant areas is described 
in Section II, Subsection B, Number 3 of this Supplementary Information 
section, below.

(D) Minimum Program Requirements To Ensure Quality

    In an effort to ensure that all programs supported by the 
Corporation are high quality, the Corporation has specified a number of 
minimum requirements (in addition to those already provided in the law) 
that all programs must satisfy. These provisions, specified in 
Sec. 2522.100 of this rule, seek not only to enhance the quality of 
individual programs, but to further the ability of each program to 
contribute to the achievement of the overall goals and purposes of 
AmeriCorps as set forth by the Corporation.
    Because the minimum program requirements represent elements 
essential to the success of any AmeriCorps program, every program 
receiving assistance from the Corporation through part 2522 of this 
rule is required to address each requirement. The following sections 
discuss the most salient of these requirements:
(1) Getting Things Done
    First and foremost, every AmeriCorps program that receives funding 
or AmeriCorps educational awards from the Corporation must address 
educational, public safety, human, and environmental needs, and provide 
a direct and demonstrable benefit that is valued by the community. This 
requirement reflects the Corporation's intent to make efficient use of 
limited funds--to have every grant made to an AmeriCorps program in 
some way help to address our Nation's most pressing needs.
(2) Strengthening Communities
    In addition to addressing the Nation's most pressing community 
needs, the Corporation also seeks to strengthen the communities in 
which we live through AmeriCorps programs. As social and economic 
forces continually drive people apart, the need arises to promote 
opportunities for diverse Americans to enjoy common experiences and 
share common values that, in the words of the President, ``strengthen 
the cords that bind us together as a people.'' Thus, the Corporation 
has established the requirement that each program must seek ``to 
strengthen communities and encourage mutual respect and cooperation 
among citizens of different races, ethnicities, socioeconomic 
backgrounds, educational levels, among both men and women and 
individuals with disabilities.''
    This requirement reinforces several of the Corporation's goals for 
AmeriCorps. First, it affirms that a necessary ingredient of active, 
productive citizenship is the ability of diverse citizens to live and 
work together, notwithstanding differences in race, class, gender, 
physical or mental ability, etc. Second, the requirement supports the 
objective of strengthening not just individual relationships among 
people, but the collective relationships among all Americans as 
expressed in the spirit of community and in citizens' sense of personal 
responsibility to that community. Third, it acknowledges that diversity 
within programs can be an effective resource for community problem-
solving. Finally, the requirement supports a number of legislative 
objectives and requirements found within the Act.
    For example, an initial finding of the statute is that ``Americans 
desire to affirm common responsibilities and shared values, and join 
together in positive experiences, that transcend race, religion, 
gender, age, disability, region, income, and education.'' Furthermore, 
section 179 of the Act instructs the Corporation to evaluate programs 
based on their effectiveness in ``recruiting and enrolling diverse 
participants * * * based on economic background, race, ethnicity, age, 
marital status, education levels, and disability.'' These legislative 
provisions thus reinforce the Corporation's objective.
    One way in which this important objective may be accomplished is to 
involve diverse participants in programs. Therefore, the Corporation 
requires each program to seek actively to engage participants from 
diverse backgrounds in AmeriCorps, including individuals from the 
community served. It also recognizes that in practice, it is not always 
possible (or in some cases desirable) for this objective to be realized 
in every case. Specifically, the Corporation recognizes two instances 
in which programs may lack diversity in one or more ways:
    First, despite its best efforts, a program simply may be unable to 
recruit the participants necessary to achieve diversity in some 
respect. In recognition of this the Corporation requires that programs 
``seek to achieve'' rather than ``ensure'' diversity. However, programs 
will be required to specify the specific strategy or activities to be 
undertaken to recruit participants in accordance with this provision.
    Second, some programs may have legitimate, substantive or 
philosophical reasons to involve individuals who share a particular 
characteristic. Examples of such programs include, but are not limited 
to the following: (1) A youth corps or other program might be designed 
to impart specific job skills and provide basic education through 
service-learning and thus might lack educational or economic diversity 
by design; (2) a professional corps that requires participants to 
possess specific post-secondary training necessarily would lack 
educational diversity.
    Although such programs would thus lack diversity in one or more of 
the required aspects, they nevertheless must strive for diversity in 
other areas. For instance, a professional corps enlisting participants 
of a common educational background would still be required to seek to 
include a racially and ethnically diverse group of individuals, 
individuals with disabilities, and both men and women. Equally 
important, all programs should undertake activities that will provide 
opportunities for citizens who might not otherwise serve, work or learn 
together to do so, regardless of what the overall composition of the 
program might be.
    While the Corporation is committed to making AmeriCorps 
opportunities available to Americans of all backgrounds, it will also 
ensure, consistent with the Act, that at least 50 percent of 
Corporation funds provided to States will go to programs that operate 
in areas of greatest need and that place a priority on recruiting 
participants who are residents in these high need areas (as specified 
in Sec. 2521.30(a)(3)(iii) of this rule), or on Federal or other public 
lands. The Corporation does not consider this requirement, which 
affects the overall national composition of programs and participants, 
at odds with its goals of encouraging the participation of citizens of 
all backgrounds.
    The Corporation recognizes that recruiting and retaining diverse 
participants requires special efforts. This is particularly true for 
qualified individuals with disabilities, including people with mental 
disabilities . Because the Corporation intends to assist programs in 
achieving the goal of diversity, the Corporation anticipates making 
technical and other assistance available to programs to assist in the 
attainment of recruitment goals. In addition to program development 
assistance for strengthening recruitment or outreach components of 
individual programs, the Corporation will make other resources 
available to programs, including financial support for programs seeking 
to involve qualified individuals with disabilities (as described in 
Sec. 2524.50 of this rule), as well as referral information on 
participants identified through the national recruiting system 
described in Sec. 2522.210 of this rule and in section (E)(3), below.
(3) Participant Selection Requirements
    Through this rule, the Corporation offers guidance to programs 
regarding participant selection. First, the proposed regulation 
encourages programs to select participants who possess leadership 
potential and a commitment to the goals of the AmeriCorps program. This 
guidance is not intended to discourage the enrollment of individuals 
who have not attained educational or job success; rather, it 
acknowledges that within every social strata, there are people who 
possess leadership ability that has not been tapped or directed at 
productive activities. Second, the regulation calls for programs to 
select participants in a non-political, non-partisan, and non-
discriminatory manner. The third participant selection rule is found in 
the Act itself--the requirement that programs establish minimum 
qualifications for participants. Among other things, this provision 
prohibits AmeriCorps participants from performing service that (1) is 
or was recently performed by paid employees (2) would infringe upon the 
promotional opportunities of paid employees (3) would supplant the 
hiring of employees or (4) would reduce the hours, wages, or benefits 
of paid employees.
    Finally, although the Corporation expects that most programs will 
involve young adults or recent college graduates as participants, the 
regulations encourage programs to consider intergenerational approaches 
because of the natural mentoring relationships that arise in these 
programs. For example, a youth corps might involve seniors on each crew 
or a corps of young attorneys might include retired lawyers 
volunteering on a part-time basis.
    In addition, the Corporation may require programs to establish pre-
service orientation and training periods for participants. The goal of 
such periods would be to establish a common orientation process for all 
programs and participants that would be tied to the efforts to create a 
national identity. The Corporation might specify, for example, that the 
official AmeriCorps logo may not be worn until participants have 
satisfactorily completed the orientation period and have been 
officially enrolled in the program through the administration of a 
national oath. These efforts, among other things, may reduce 
prospective attrition rates and contribute to a positive esprit de 
corps across programs.
    The statute also directs the Corporation to establish a national 
leadership pool and a national system for the recruitment of 
participants; States also must establish recruitment systems. National 
and State recruitment will contribute to the diversity of the overall 
participant pool by supplementing local recruitment with participants 
from across the Nation and with participants who possess specialized 
skills or training. The national and State recruitment efforts will 
also facilitate the participation of individuals who desire to serve 
but live in areas where there are few or no AmeriCorps programs 
available. The Corporation may therefore require programs to select a 
small percentage of participants from the national recruitment pool. In 
addition, as specified in the application materials, the Corporation 
may provide for the coverage of certain relocation expenses for a 
limited number of participants who are recruited through the national 
referral system. While the Corporation will not require programs to 
select any participants through the national system in fiscal year 
1994, programs are strongly encouraged to do so.
(4) AmeriCorps Identification
    In addition to those activities noted in paragraph (3) above, the 
Corporation will also require programs to agree to identify themselves 
as part of a larger national effort and to participate in such 
AmeriCorps activities as the Corporation may specify. Examples might 
include the use of a national logo or common application and 
informational materials as well as participation in special activities 
such as a national service day, a conference or common training, or the 
use of a common orientation component. This provision would not 
preclude an AmeriCorps program from developing its own training or 
materials, or from using its own name as the primary identification for 
the program. These efforts not only will enhance the visibility of the 
AmeriCorps programs but will contribute to a national recognition of 
the value and importance of the work being undertaken by the programs.
(5) Promoting Active, Productive Citizenship
    In addition to ``Getting Things Done'' in communities throughout 
the Nation, another central goal for all AmeriCorps programs is to 
promote active, productive citizenship on the part of all participants, 
which may include fostering a sense of personal responsibility and a 
life-long ethic of service. To this end, programs are encouraged to 
design projects that employ service-learning methods to enhance 
participants understanding of the relationship between the activities 
undertaken to address needs and the larger social context in which the 
efforts are made. In addition, programs must provide participants with 
appropriate training and support to carry out assignments, including 
background information on the community in which the service will be 
performed and on why the particular project is needed. Finally, because 
AmeriCorps programs seek to promote active citizenship, and because 
voting is a critical component of citizenship in any democracy, every 
program must encourage, in a non-partisan manner, each participant 
eligible to do so to register to vote.
(6) Start of Operations
    To further the goal of creating a national identity for programs, 
this rule requires all programs to agree to begin operations at such 
times as the Corporation may reasonably require. Creating ``classes'' 
of participants who all begin and ``graduate'' from their terms of 
service during the same time period will foster a greater sense of 
national identity. The Corporation's current policy requires 
participants to begin service in June, September, or January. The 
Corporation may waive this requirement for programs that can 
demonstrate compelling reasons for alternative starting dates.
    This requirement should also contribute toward the achievement of 
other programmatic goals. For example, common schedules and operating 
timelines will enable the Corporation to support, where appropriate, 
staff and participant training. In addition, this provision will enable 
many programs' term of service to track the traditional school year, 
making the recruitment of college and college-bound participants 
easier. For example, a program that begins in January and ends in 
October would require participants to miss two years of school, whereas 
a program that begins in September and ends in June would only require 
participants to miss one year of school.
    In addition, this rule states that programs must agree to comply 
with any policy the Corporation may implement regarding filling 
approved AmeriCorps positions left vacant by attrition. The Corporation 
is currently considering a policy which would allow programs to fill 
such vacant positions only within the first month of the enrollment of 
a given class of participants. The Corporation encourages interested 
parties to comment on this proposed policy. This provision is aimed at 
providing a sense of cohesion within each AmeriCorps program. 
Experience shows, especially in team- or crew-based programs, that the 
process of continually filling positions left vacant by attrition tends 
to erode the sense of teamwork and identity among participants and can 
interrupt an efficient flow of operations, thereby affecting the 
quality of service provided in the community. Through this provision, 
the Corporation would require programs to wait until the next approved 
intake period before enrolling additional participants.
(7) Allocation of Educational Awards Within Programs
    Because of the limited amount of funding available for program 
assistance, the Corporation anticipates that in some cases programs 
(especially existing programs) may not apply for or receive adequate 
support for all participants enrolled in the program, and the potential 
may thus arise for some participants (who are serving in approved 
AmeriCorps positions) to receive AmeriCorps educational awards while 
others do not. The Corporation is therefore requiring every applicant 
to describe the rationale for its distribution of educational awards to 
program participants in those cases where distinctions among 
participants are necessary. In general, this distribution should treat 
equally all participants doing the same or essentially similar work. 
This reflects a matter of principle as well as a pragmatic concern for 
the equal treatment of participants within a single program.
    The Corporation recognizes that equal treatment may not be feasible 
or desirable in some instances. For example, an intergenerational 
program or a program with a specialized component or division assigned 
special projects may make distinctions among participants that justify 
the provision of educational awards to some but not to others. 
Similarly, a program may choose to offer alternative post-service 
benefits to participants in lieu of the AmeriCorps educational awards 
provided by the Corporation. AmeriCorps programs are strongly 
encouraged to offer alternative post-service benefits to participants 
who will not receive AmeriCorps educational awards. The Corporation 
will evaluate on a case-by-case basis the rationales of programs that 
do not plan to provide all participants with educational awards. 
However, the Corporation anticipates that it will not approve 
rationales based solely on a determination of economic need of 
participants.
(8) Evaluation Requirements
    In order to ensure that only high quality programs continue to 
receive Corporation support, AmeriCorps programs must perform 
continuous monitoring and evaluation. The provisions of this rule 
emphasize the importance of monitoring and evaluation at all levels--by 
individual programs, States or grantmaking entities, and the 
Corporation.
    This rule allows programs to conduct internal rather than 
independent evaluations. The Corporation will conduct independent 
evaluations at the national level because, due to economies of scale, 
that is where they will be most cost-effective. Each program, State, 
and grantmaking entity must collect data and cooperate fully in all of 
the Corporation's monitoring and evaluation activities.
    A key provision of the Corporation's evaluation strategy requires 
all programs to set annual objectives in concert with the Corporation 
and applicable grant-making entity. Programs will be required to track, 
and report to the Corporation, progress towards these objectives. 
Programs will be evaluated annually, in part, based on their success at 
achieving their objectives.
    Finally, this rule promotes continuous quality improvement and 
provides examples of techniques available to programs.

(E) Program Types and Size

(1) Program Types
    Section 2522.110 of this rule lists fourteen discrete types of 
service programs that may qualify for AmeriCorps program funding. These 
types, while sharing the goal of meeting our Nation's pressing needs, 
differ in terms of which need is addressed, how the participants are 
organized, the age and background of the participants, and the nature 
of the sponsoring organization.
    After careful and thorough consideration, the Corporation decided 
not to include in the regulations any program types not listed in the 
Act. This decision is not an attempt to restrict the types of eligible 
AmeriCorps programs. On the contrary, it was specifically intended to 
leave open-ended the types of programs that may be eligible.
    The Act states that the Corporation may designate other AmeriCorps 
types aside from those listed to qualify for AmeriCorps grants. The 
Corporation decided that instead of attempting to list additional types 
of programs, it would interpret this provision broadly, allowing for 
the eligibility of any program type that meets the criteria applicable 
to all programs.
    The fourteen program types listed are clearly eligible for support, 
and they may serve as guidelines for developing programs. However, 
programs that meet the Corporation's eligibility and quality criteria 
but that do not fit one of these types will not be disadvantaged in the 
selection process. Conversely, because the Corporation wishes to fund 
the highest quality programs that meet the Nation's most pressing 
needs, the Corporation will not give priority to a program simply 
because it fits the description of one of the listed program types.
    Finally, any organization considering applying should determine 
whether they are more appropriately a project sponsor than a program. A 
program is responsible for recruiting, selecting, and training 
participants, providing them benefits and support services, engaging 
them in regular group activities, and placing them in projects. While 
the program may also serve as the project sponsor by supervising the 
day-to-day service of participants, the program may instead place 
participants in projects overseen by another organization.
    For example, a local police department could apply for funds to run 
a community policing support program. It would recruit and select 
participants, train them, and supervise them in a variety of projects. 
In this case, the police department would be both the program and the 
project sponsor. Alternatively, an organization that runs a program may 
work in collaboration with one or more other organizations that will 
serve as project sponsors. For example, a community-based organization 
(CBO) may apply for funds to operate an early childhood development 
corps. The CBO, as the program, would recruit and select participants, 
provide them with specialized training in child development, and bring 
them back together regularly for additional training and other 
activities. The participants would be assigned individually or in small 
groups to child care, Head Start, and preschool programs in the 
community, which would serve as project sponsors.
    In general, organizations who can engage productively no more than 
four participants or that lack the capacity to perform the duties, 
required of programs should consider becoming project sponsors. Such an 
organization may form a partnership with another organization in the 
community with a shared vision and mission that is interested in 
becoming a program sponsor. Together, the organizations in the 
partnership should be able to present a coherent program, including 
common training and ongoing group activities, rather than a loosely 
federated consortia with unrelated elements. Such an organization may 
also contact the State Commission for information about funded programs 
in the area that might place participants with the organization, or 
contact the State ACTION office about the possibility of a VISTA being 
assigned there.
(2) Minimum Program Size
    It is extremely important for all programs, regardless of type, to 
be large enough to achieve a demonstrable impact on the community 
served. Thus, while the actual size of each program may vary depending 
on the size of the community in which it operates, the design of the 
program, and other factors, in general the Corporation encourages 
programs to enroll at least twenty full-time equivalent participants, 
regardless of whether participants are placed individually or in teams. 
And while the Corporation will likely fund programs that exceed this 
preferred minimum size, any applicant seeking support for a program 
that does not intend to enroll at least twenty participants should 
demonstrate why a smaller program is necessary or appropriate to a 
specific circumstance.
    This guideline should not only enhance the impact that programs 
will have on a particular issue or within specific communities, but it 
should also increase the ability of the Corporation and State 
Commissions to ensure the delivery of high quality programming and 
compliance with legislative and regulatory requirements. Accomplishing 
these outcomes would be significantly more difficult with many small 
groups of participants dispersed throughout a State or region.
    It is important to note that this requirement relates to programs, 
not to project sponsors. Thus, while programs should enroll at least 
twenty participants, there is no minimum requirement for the number of 
AmeriCorps participants which may be placed in an approved service site 
or organization.

(F) Participant Eligibility and Benefits

(1) Terms of Service
    Section 2522.220 specifies appropriate definitions and guidance 
pertaining to terms of service. This rule clarifies that participants 
shall receive benefits, including AmeriCorps educational awards, only 
for their first two terms of service, regardless of whether those terms 
of service are full-time, part-time, or a combination of both. It also 
establishes that admission to a second or further term of service is 
contingent upon successful completion and a positive performance review 
of the first term. (Sec. 2522.220(c)(i) of this rule explains the 
performance review.)
    Participants and programs have substantial latitude in mixing 
different types of terms of service. For example, a high school 
graduate could participate full-time in a youth corps for one year, use 
his or her educational award to pay for two years of community college, 
participate in a part-time AmeriCorps program during college, and earn 
another award to help pay the costs of attending a four-year 
university. Alternatively, a participant could serve two consecutive 
1\1/2\ year part-time terms of service while attending college; such a 
participant would thus, in total, serve 1800 hours and earn two part-
time educational awards. A good example of this type of mixing of terms 
of service would be a during-college program analogous to the Reserve 
Officer Training Corps program, which engages participants in part-time 
service during college, followed by a full-time placement after 
graduation.
(2) Release from Terms of Service
    Generally, participants can be released for two reasons: (i) they 
want to be released due to compelling personal circumstances; or (ii) 
they are released from the program for cause. In both cases, this rule 
puts primary responsibility for determining when to release a 
participant in the hands of the programs. Programs should be aware that 
participants released due to compelling personal circumstances may 
receive prorated educational awards whereas those released for cause 
may not.
    In addition, this rule requires programs to establish in writing 
clear guidelines that establish the circumstances under which 
participants will be released for cause. These documents must be signed 
by the participant and by a representative of the program. The 
Corporation encourages programs to establish attainable but high 
standards for participant conduct. The Corporation requires programs to 
release participants for cause if they are convicted of a felony. If 
participants are charged with a violent felony or the sale or 
distribution of a controlled substance, or if they are convicted of the 
possession of a controlled substance, programs must suspend their 
service without a living allowance and without receiving credit for 
hours missed.
    A participant who is wrongly released or suspended for cause will 
receive credit for any service missed and reimbursement for missed 
stipends. This rule further describes the conditions under which 
participants whose service has been suspended may be reinstated, the 
impact of release for cause, and the grievance procedure available to 
participants. (See Sec. 2522.230)
(3) Living Allowances
    In general, the Act requires that all programs receiving 
Corporation assistance provide living allowances to full-time 
participants. The amount of the living allowance must be at least the 
average annual amount provided to VISTA volunteers (approximately 
$7,440 for FY 1994 or about $4.40 per hour assuming a total of 1700 
hours served) but not more than twice that amount. Of this, the 
Corporation's share may not exceed 85% of the basic VISTA allowance (or 
approximately $6,375). Programs must therefore provide a cash match for 
their share of the stipend.
    There are a number of exceptions to these requirements: a program 
that was in existence prior to September 21, 1993, is by law exempt 
from meeting the minimum stipend requirement; programs may, but are not 
required to, provide living allowances to part-time participants; and 
the Corporation may waive or reduce the minimum requirement at its 
discretion (see Sec. 2522.240(b)(4) of this rule).
    With this rule the Corporation also clarifies that the 
Corporation's share will not exceed 85% of the living allowance, 
regardless of whether the allowance has been reduced or prorated from 
the minimum full-time allowance. Thus, if a program provides part-time 
participants who serve 900 hours per year with an annualized stipend of 
$3,960, the Corporations share would not exceed $3,366 (85% of the 
part-time allowance).
    Finally, the Corporation will pay no share of participant stipends 
for a professional corps described in Sec. 2522.110(b)(3) that provides 
stipends to participants in excess of the maximum allowance. However, a 
program involving professionals that wishes to seek Corporation support 
for participant stipends or benefits while not technically a 
``professional corps'' may do so by applying under the general 
provision (Sec. 2522.110(g)). Such a program would be subject to the 
same restrictions on stipends as other AmeriCorps programs.
(4) Child Care
    The Act requires that programs provide child care or a child care 
allowance to any full-time participant who needs such assistance in 
order to participate. The regulations define need based on three 
factors: total family income of the participant must be less than 75 
percent of the State median income; the participant must reside with 
and be a parent or guardian of a child under the age of 13; and the 
participant must not be receiving child care assistance from another 
source at the time of acceptance into the program, unless the 
participant would become ineligible for child care by virtue of 
enrollment in the program. These requirements were selected to be 
consistent with the Child Care and Development Block Grant Act of 1990, 
the major program through which the Federal government provides child 
care to low- and middle-income families. To ensure that funded care 
meets minimum health and safety standards, the regulations also tie 
eligible providers and the amount of the child care allowance to the 
Child Care and Development Block Grant of 1990. In implementing this 
provision, the Corporation expects to reserve program funds for child 
care benefits. Programs are asked in their applications to indicate how 
many participants they expect to require such benefits. This will help 
the Corporation determine the amount of funds that should be reserved.
(5) Health Insurance
    The legislation requires the provision of health care benefits to 
full-time AmeriCorps participants who are not otherwise insured. The 
regulations provide for the Corporation to establish a minimum benefits 
package and to tie the amount of funding for health care policies to an 
affordable policy that provides these minimum benefits. The Corporation 
welcomes comments on the contents of the minimum benefits package. Any 
program wishing to provide alternative benefits may do so with approval 
from the Corporation, provided that the policy has a fair market value 
equal to or greater than the minimum benefits package.

Section II: Available Grants and Distribution of Funds

(A) Types of Grants Available

    Eligible applicants may apply for planning, operating, or 
replication grants. Applicants seeking operating or replication grants 
also may apply for AmeriCorps educational awards. In addition, an 
applicant may seek AmeriCorps educational awards only.
(1) Planning Grants
    The purpose of a planning grant is to bring a program to the verge 
of implementation so that it may compete successfully for operating 
assistance in the following grant cycle. The Corporation will make 
planning grants available to eligible applicants that already have 
identified a sound concept for an AmeriCorps program, but that require 
resources in order to plan, develop, and prepare the program for 
implementation. (In this sense, planning grants more accurately may be 
called ``development grants.'')
    For example, a planning grant might be appropriate for an applicant 
that has already identified the type of program to be developed, 
including key design elements such as the specific need(s) to be 
addressed, types of projects to be conducted, and kinds of participants 
to be recruited. The program might lack, however, a specific training 
or education curriculum, or it might need to build additional community 
partnerships to identify specific service projects and activities to be 
conducted. It might also lack a specific staffing or recruitment plan 
and materials, or it might need to raise additional matching funds. 
Thus, while the specific elements of the program might require 
developmental assistance, the program design is nevertheless clear 
enough to enable the Corporation to evaluate fully the nature of the 
program and the prospective activities that it will undertake 
(including the expected impact it will have on a particular issue or 
problem). While the average size of grants awarded for planning and 
development will vary by circumstance and need, in general, grants will 
range from $50,000 to $250,000, depending on the size of the 
prospective full-time program, and may cover a period of between six 
months and one year, depending on the expected timing of the next grant 
cycle.
(2) Operating Grants
    The purpose of an operating grant is to support an applicant that 
is ready to implement a fully developed new or expanded program. 
Operating grants may include a short planning phase to complete the 
final stages of program development before implementation. The 
Corporation may award operating grants for a term of up to three years, 
with annual renewal funding subject to periodic assessment of program 
quality, successful performance against stated objectives, and 
availability of appropriations. In general, the size of an operating 
grant will reflect the size and costs of the proposed program. However, 
the Corporation anticipates making few operating grants in excess of $4 
million. While there are no absolute limitations on the number of 
AmeriCorps educational awards an applicant may seek, the Corporation 
will apportion these positions in a manner consistent with the 
reasonable needs of programs. Moreover, programs are encouraged to take 
a cost-effective approach based on per-participant costs. The 
Corporation also encourages new or start-up programs to start 
relatively small (generally between 20 and 50 participants, depending 
on the needs of the program) in order to ensure high quality operations 
in the first year. For new programs proposing multi-State or multi-site 
operations, the Corporation also encourages piloting efforts in a 
limited number of communities or locations to ensure quality before 
undertaking significant expansion.
(3) Replication Grants
    The purpose of a replication grant is to support the replication to 
other sites or programs of a program model or component that has a 
track record of success, identifiable core elements that account for 
its effectiveness, and sufficient adaptability to local circumstances. 
In its first year, the Corporation will evaluate proposals for 
replication against criteria similar to those that apply to operating 
grants. In future years, the Corporation may establish criteria that 
are specific to replication grants, including a requirement for 
independent evaluation results demonstrating the quality and 
effectiveness of the program seeking replication.
    The terms and size of replication grants, as well as the allotment 
of AmeriCorps educational awards, are the same as for operating grants 
as described in paragraph 2 above.
(4) Educational Awards Only
    For programs that have adequate resources to cover program costs 
and that meet all the requirements for an AmeriCorps program set forth 
in part 2522 of this rule, the Corporation may make grants consisting 
only of AmeriCorps educational awards. This rule clarifies that these 
grants may be made either to programs that do not apply for program 
assistance or to programs that apply for but do not receive program 
assistance (see Sec. 2521.30(c)).
    These types of grants are integral to the overall success of 
AmeriCorps: they are an efficient use of limited resources; and they 
allow for the inclusion of high-quality programs that might otherwise 
be excluded due to the supplantation rule (which states that 
Corporation assistance cannot supplant State, local or private funds). 
However, programs that receive this type of grant must be of at least 
as high-quality as programs that receive program assistance.
(5) Other Assistance
    (a) Program development, training and technical assistance. The 
Corporation will make grants to provide program development, training, 
and technical assistance to improve the quality of service projects, 
assist in the recruitment of diverse participants, improve educational 
or other materials, and for other purposes (see Sec. 2524.40 of this 
rule; also see part 2532, which describes other grants available for 
training and technical assistance).
    (b) Challenge grants. Section 2524.40 of this rule allows the 
Corporation to make challenge grants to programs already receiving 
Corporation assistance. With these challenge grants the Corporation may 
provide up to $1 in assistance for every dollar raised by a program in 
excess of the matching funds required for its existing Corporation 
grant. More details concerning the specifics of this program are 
provided in Sec. 2524.40 of this rule.
    The Corporation views the challenge grant program as an important 
component of its efforts to support AmeriCorps. It allows the 
Corporation to leverage funds and expand the scope and reach of the 
highest-quality AmeriCorps programs. However, because programs 
generally will not receive AmeriCorps program grants until three-
quarters of the way through the fiscal year, the Corporation 
anticipates making only a limited number of challenge grants in fiscal 
year 1994 .
    (c) Grants for outreach to qualified individuals with disabilities. 
The Act authorizes the Corporation to make grants:
    (i) To assist AmeriCorps grantees in placing applicants who require 
reasonable accommodation (as defined in Sec. 101(9) of the Americans 
with Disabilities Act of 1990) (42 U.S.C. 12111(9)) or auxiliary aids 
and services (as defined in section 3(1) of such Act) (42 U.S.C. 
12102(1)) in an AmeriCorps program; and
    (ii) To conduct outreach activities to qualified individuals with 
mental or physical disabilities to recruit them for participation in 
AmeriCorps programs.
    (d) Disaster relief. With this rule, the Corporation has determined 
that in light of limited resources for this grant program, disaster 
relief grants will only be made available to enable national and 
community service programs to respond quickly and effectively to a 
Presidentially-declared disaster.
    The Corporation has also clarified eligibility requirements by 
specifying that any AmeriCorps program (including youth corps, the 
National Civilian Community Corps, VISTA, and other programs authorized 
under the Domestic Volunteer Services Act) or grant making entity (such 
as a State or Federal agency) that is supported by the Corporation may 
apply to the Corporation for disaster relief grants.
    Finally, the Corporation has specified that due to the limited 
duration of disaster relief activities, it may waive certain matching 
or program requirements if appropriate.

(B) Distribution of AmeriCorps Funds and Educational Awards

(1) State Formula Allotment and Corresponding Educational Awards
    The Act specifies that of amounts available for allocation under 
the grant program, the Corporation will make one-third available to 
eligible State applicants through a population-based formula. For 
fiscal year 1994, the Corporation expects that $51,833,333 will be 
available for award by formula allotment. Because the Corporation is 
committed to supporting only high quality AmeriCorps programs, this 
formula distribution is not and will not be treated as an entitlement 
for states. These regulations specify that only those applicants that 
submit high quality applications consistent with the requirements 
contained in part 2522 of this rule and have an approved State Plan 
under part 2513 will receive their formula allotment. The Corporation 
is committed to working with States to ensure that the programs funded 
through their formula allotment will meet the quality standards 
established in this rule. For fiscal year 1994, all States must submit 
to the Corporation a notice of intent to apply for formula funds by 
March 31, 1994. The formula allotment for States not intending to apply 
(or that do not submit a notice of intent to apply by the required 
date) will be made available to eligible local applicants within the 
State consistent with Sec. 2521.30(d) of this rule.
    In addition, the Act instructs the Corporation to distribute to 
States receiving their formula allotment a ``corresponding allotment'' 
of AmeriCorps educational awards; however, the statute does not clarify 
what ``corresponding allotment'' means. The Corporation has therefore 
determined that the appropriate interpretation of the legal meaning of 
the expression ``corresponding allotment'' is the number of educational 
awards that directly corresponds with the expected number of approved 
AmeriCorps positions to be supported with program assistance.
    Because a direct correlation does not exist between program dollars 
and educational awards, the Corporation determined that it needed to 
establish a plausible monetary relationship between the total value of 
a State's formula award and the number of educational awards it would 
receive. This relationship was determined by dividing each State's 
formula award by the anticipated average Federal share of the cost of 
an AmeriCorps position, calculated at $13,800 per participant (Program 
Money$13,800=Educational Awards).\1\ Basing the definition of 
``corresponding allotment'' on a relationship between program dollars 
and educational awards reflects the Corporation's intent to ensure that 
any State receiving program assistance for the support of AmeriCorps 
participants would be ensured of receiving the requisite number of 
educational awards for those participants. Thus, according to the above 
calculus, Ohio, for example, will receive $2,228,498 through its 
formula allotment and will also receive 161 AmeriCorps educational 
awards. The overall expected distribution of formula grants and 
educational awards is provided by State in the table below.
---------------------------------------------------------------------------

    \1\This amount is exclusive of the national service educational 
award, which is provided separately through the National Service 
Trust Fund. This award represents an average estimated cost per 
participant for start-up programs based on the experience of the 
national service model programs funded by the Commission on National 
and Community Service. Average costs for established programs, 
including youth corps programs, are generally significantly lower. 
Because the Corporation anticipates funding start-up programs as 
well as programs that build on the infrastructure of existing 
programs and organizations, and because the Corporation will 
strongly encourage programs to exceed the minimum matching 
requirements, it is expected that many programs will achieve 
significantly lower average costs per position.

Formula Allocation of Program Funds and AmeriCorps Educational Awards to
                                States\1\                               
------------------------------------------------------------------------
                                                  Program    Educational
                     State                         funds        awards  
------------------------------------------------------------------------
Alabama.......................................     $831,565           60
Alaska........................................      112,977            8
Arkansas......................................      483,521           35
Arizona.......................................      752,837           55
California....................................    6,107,718          443
Colorado......................................      677,088           49
Connecticut...................................      674,582           49
Delaware......................................      136,874           10
District of Columbia..........................      124,841            9
Florida.......................................    2,661,624          193
Georgia.......................................    1,332,191           97
Hawaii........................................      228,283           17
Idaho.........................................      207,141           15
Illinois......................................    2,347,085          170
Indiana.......................................    1,138,927           83
Iowa..........................................      570,551           41
Kansas........................................      508,771           37
Kentucky......................................      757,132           55
Louisiana.....................................      867,509           63
Maine.........................................      252,425           18
Maryland......................................      982,217           71
Massachusetts.................................    1,234,071           89
Michigan......................................    1,909,484          138
Minnesota.....................................      897,970           65
Mississippi...................................      529,412           38
Missouri......................................    1,051,644           76
Montana.......................................      164,498           12
Nebraska......................................      324,351           24
Nevada........................................      246,884           18
New Hampshire.................................      228,004           17
New Jersey....................................    1,586,048          115
New Mexico....................................      311,489           23
New York......................................    3,693,483          268
North Carolina................................    1,362,733           99
North Dakota..................................      131,279           10
Ohio..........................................    2,228,498          161
Oklahoma......................................      646,322           47
Oregon........................................      584,123           42
Pennsylvania..................................    2,440,838          177
Puerto Rico...................................      736,670           53
Rhode Island..................................      205,912           15
South Carolina................................      717,574           52
South Dakota..................................      143,281           10
Tennessee.....................................    1,002,281           73
Texas.........................................    3,491,927          253
Utah..........................................      353,656           26
Vermont.......................................      115,641            8
Virginia......................................    1,272,453           92
Washington....................................    1,000,500           72
West Virginia.................................      368,770           27
Wisconsin.....................................    1,004,349           73
Wyoming.......................................       93,332            7
                                               -------------------------
  Totals......................................   51,833,333        3,756
------------------------------------------------------------------------
\1\The actual amount of each State's grant will be proportionally       
  reduced if the Corporation chooses to set aside money for participant 
  health and/or child care costs. In addition, numbers are based on the 
  1990 census but will be updated to incorporate the latest census      
  estimates from the Census Bureau.                                     


    The Corporation will consider the number of educational awards that 
corresponds to a State's formula allotment as a minimum, and not as a 
maximum, number of educational awards potentially provided to a State. 
Thus, a State's ``minimum'' formula and award allotments should not 
necessarily drive the design or size of programs applying for 
assistance through State applications. Indeed, insofar as the formula 
application includes high quality, cost-effective programs that request 
more educational awards than would otherwise be provided through the 
minimum allotment, those programs would be eligible to receive 
additional awards from the Corporation on a competitive basis.
    This mechanism for distributing educational awards not only 
satisfies the legislative requirement but also makes sense for policy 
and programmatic reasons. In making this determination, the Corporation 
did, however, consider other alternatives. For example, the Corporation 
considered the possibility of distributing the awards on a basis 
proportional to the distribution of formula grants. Thus a State 
receiving 12% of the total amount of funding available by formula 
allocation would also receive the same percentage of educational 
awards. The Corporation did not choose this option for several reasons.
    First, from a legal standpoint, if the Congress had intended for 
there to be a direct, proportional correlation between the overall 
distribution of program funds and the overall distribution of 
AmeriCorps educational awards, it would not have created educational 
award set-asides for VISTA and CCC volunteers; nor would it have 
allowed for the distribution of educational awards to programs the 
Corporation does not fund or programs, such as professional corps, that 
necessitate different levels of Federal support than other programs.
    Second, from a programmatic standpoint, the distribution of 
educational awards on a strict proportional basis would have resulted, 
in some cases, in the unfortunate consequence of leaving some States 
with insufficient programmatic funds to support the number of 
participants for whom they would have received educational awards. 
Finally, this approach also would have resulted in a lack of 
flexibility on the part of the Corporation to provide support to 
programs on the basis of quality and need, rather than on the basis of 
an arbitrary proportional rule that, as noted above, bears no 
relationship to anticipated or real program costs.
    In short, the Corporation's need to support quality programs, to 
ensure adequate financial support for all approved AmeriCorps positions 
and educational awards within those programs, and the need to retain 
flexibility to respond to individual State and program needs are 
addressed through this distributive scheme.
(2) State Competition
    In order to receive consideration for competitive funds, a State 
must receive its formula allotment. In addition to the grants made 
available to States by formula allocation, the Corporation will make at 
least one-third of program funds, as well as an appropriate number of 
educational awards as determined by the Corporation, available to 
States on a competitive basis. For fiscal year 1994, the Corporation 
expects that $51,833,333 will be available for this competition. The 
following priorities will govern the competitive distribution of 
AmeriCorps funds and educational awards to States:
    (a) Priority for small states. The Corporation is committed to 
ensuring that every State is able to participate in a meaningful way in 
the AmeriCorps grant program. Specifically, the Corporation seeks to 
enable every State that so desires to support at least one high quality 
AmeriCorps program that meets the preferred minimum size guidelines of 
20 full-time equivalent participants as stipulated in section I(D)(2), 
above. Thus, for fiscal year 1994 the Corporation has established a 
priority for small States, whereby any State that: (i) Does not 
otherwise receive through the legislatively required formula allocation 
adequate funding to support at least 20 full-time AmeriCorps positions, 
and the same number of educational awards, and (ii) which can 
demonstrate the existence of a high quality program(s), will receive 
priority consideration for assistance through competitive State 
funding.
    In essence, this priority effectively establishes a small State 
floor in the amounts of $276,100\2\ and 20 AmeriCorps educational 
awards for those affected States (indicated in the table in section 
II(B)(1)) that meet the quality and need criteria indicated above. This 
priority does not, however, constitute a guarantee of assistance to any 
State. Although the priority for small States will result in programs 
otherwise supported through a State's formula allotment receiving 
limited competitive funding, these programs will not be required to 
address the national priorities established by the Corporation, 
notwithstanding the provision specified in Sec. 2522.410(b)(1)(ii) of 
this rule. Thus, every State meeting the guidelines will be able to 
support at least one program of the minimum preferred size that 
addresses State-based priorities.
---------------------------------------------------------------------------

    \2\This figure was calculated by multiplying the preferred 
minimum number of national service participants per state (20) by 
the average Federal cost per participant ($13,800)
---------------------------------------------------------------------------

    (b) National issue priorities. All programs, except those affected 
by paragraph (a) above, that are submitted through State applications 
for competitive funding should address the national issue priorities 
explained in section I(C)(2) of this supplementary section. In general, 
most activities conducted by programs should substantially address one 
or more of the national priorities. However, the Corporation may grant 
waivers if a program demonstrates that its proposed activities are (i) 
more essential for their communities and (ii) not being met in any 
other way.
    (c) Priority for existing grantees. In fiscal year 1994, the 
Corporation will give priority to National Service Demonstration 
Programs and American Conservation and Youth Service Corps Programs 
that received funding from the Commission on National and Community 
Service. While this one-year priority does not constitute a guarantee 
for renewal funding, the Corporation expects that those programs that 
meet the minimum requirements and quality standards stipulated in this 
rule will receive support. In addition, States should give priority to 
these programs as well.
(3) Direct National Competition
    (a) Allocation. After funds have been allotted to the States and 
set aside for Indian tribes and U.S. territories, any remaining 
AmeriCorps program funds will be distributed directly by the 
Corporation on a competitive basis. In fiscal year 1994, the 
Corporation anticipates making $48.8 million available for award in 
this category. In general, subdivisions of States, Indian tribes, 
public or private nonprofit organizations (including labor 
organizations), institutions of higher education, and Federal agencies 
may apply for these funds, although no more than one-third may go to 
Federal agencies. Unless a program has a clear and compelling reason 
not to do so, programs funded through this competition should address 
any national priorities established pursuant to Sec. 2522.410(b)(1)(ii) 
of this rule.
    (b) Limitations for fiscal year 1994. The Corporation will limit 
this category of funding in fiscal year 1994 to the following:
    (i) Programs operated or funded by Federal agencies.
    (ii) Programs operated or funded by national nonprofit 
organizations.
    (iii) Professional corps programs.
    (iv) Programs operated in more than one State.
    The Corporation intends to use this category of funding primarily 
to support programs that are national or regional in scope.
    In general, programs that are operated locally by nonprofits, 
subdivisions of States or institutions of higher education can and 
should apply through their respective States; doing so will increase 
the chances that the programs are part of a comprehensive State plan, 
which will enable the Corporation to ensure that all local programs are 
appropriately monitored and receive technical assistance necessary to 
support high-quality programs.
    To clarify the eligibility of applicants in fiscal year 1994, the 
Corporation will consider a national nonprofit organization to be one 
whose membership, activities, constituencies, or mission is national in 
scope. In addition, although programs operated or funded by States are 
not otherwise eligible to receive direct national competitive funds, 
those National Service Demonstration Programs supported by the 
Commission on National and Community Service that operate in more than 
one State may compete for support in fiscal year 1994.
     (c) Agreements with Federal agencies. Technically, when a Federal 
agency competes for and receives program funds under this category, the 
Corporation will not give that agency a grant but rather will enter 
into a contract or cooperative agreement that includes the transfer of 
funds. Federal agencies may either subgrant to other nonprofits or 
other eligible entities, or operate programs directly. Through this 
rule the Corporation has clarified the scope and purposes of the 
prospective awards to Federal Agencies as follows:
    (i) AmeriCorps grants should serve as ``seed money'' to leverage 
agencies' existing resources and grant-making capacity toward the goal 
of integrating service more fully into agencies' programs and 
activities. Agencies should plan, ultimately, to support independently 
service initiatives developed or expanded with Corporation assistance.
    (ii) Only Cabinet level departments and independent agencies may 
apply. Bureaus, division, and local and regional offices of such 
departments and agencies can only apply through the central department 
or agency. An application may, however, include proposals for more than 
one program. The primary purpose of this restriction is to ensure that 
all national and community service efforts within a department or 
agency are centrally coordinated and are part of a coherent strategy.
    The Corporation also expects that many programs supported by 
Federal agencies with Corporation assistance will be sub-granted or 
operated in partnership with community-based organizations.

(C) Application Requirements/Issues

(1) Content and Degree of Specificity
    In Secs. 2522.300-320 of this rule, the Corporation specifies the 
application requirements for all applicants seeking AmeriCorps program 
assistance, including national service educational awards. While the 
Corporation will provide applicants with additional guidance through 
approved application materials, the Corporation will require every 
applicant--regardless of whether the applicant is a State or other 
eligible entity applying directly to the Corporation--to include a 
complete, detailed description of the proposed program(s) to be funded.
    In essence, applicants will not be able to apply to the Corporation 
for assistance for the purpose of subgranting awards to programs or 
organizations that are not yet known at the time of application. 
Especially in the case of States or other subgranting entities, 
applicants will therefore need to know the specific programs to be 
proposed and will need to provide required information on such programs 
at the time of application. This requirement will ensure that the 
Corporation will have complete information with which to select the 
highest quality programs.
    In general, this requirement will apply to States for both formula 
and competitive applications, although the degree of specificity about 
programs may vary slightly. In fiscal year 1994, the Corporation--
through the application materials--will require States to summarize in 
the narrative of the proposal information on programs proposed under 
the formula allotment (although States will be required to provide a 
complete application for each program in the appendix to the State's 
application). Specific, detailed information will be required for each 
individual program included in any application for competitive funding.
    In addition, the statute requires that the Corporation obtain 
certain information on all programs prior to making any award. This 
information includes:
    (a) A description of service placements. The Act requires that an 
application for AmeriCorps program funds and/or educational awards 
include a description of the positions into which participants will be 
placed, as well as a description of the minimum qualifications that 
individuals must meet to be placed in those positions.
    With this rule, the Corporation requires that such descriptions 
describe the nature of specific tasks to be performed by participants. 
Although individual ``job descriptions'' are not required for every 
participant, applicants should clearly identify the specific nature of 
assignments to be performed by participants within service projects. 
This provision not only addresses a legislative requirement but also 
provides additional information that will enable the Corporation to 
assess the expected impact the program will achieve.
    (b) Coordination with State Plan. The Corporation proposes to 
require all applicants that are not States coordinate their activities 
with the application of the State, including the State Plan, so as to 
build upon existing programs and not duplicate efforts. Applicants 
applying directly to the Corporation in fiscal year 1994 will be 
required to coordinate their planned efforts with the State in which 
the program(s) will operate, notwithstanding the fact that the 
application of the State will be due to the Commission after the 
applications of applicants other than States. The application should 
identify efforts undertaken to this effect, including documentation of 
meetings or correspondence.
(2) Special Requirements for State Applicants
    (a) Number of programs in the competitive portion of a State 
application. To ensure that States submit only the highest quality 
programs for funding, the Corporation has limited the number of 
programs a State may include in its application for competitive funding 
as indicated in the table below. Every State may include at least three 
programs, and each State may include an additional program for each 
full percentage point of the population that State contains. New York, 
for example, will receive the initial three, plus an additional seven 
corresponding to the 7% of the total population New York contains, for 
a total of ten.

 Maximum Number of Programs That May Be Included in States' Applications
                         for Competitive Funding                        
------------------------------------------------------------------------
                                                                Maximum 
                            State                              number of
                                                               programs 
------------------------------------------------------------------------
Alabama.....................................................           5
Alaska......................................................           3
Arkansas....................................................           4
Arizona.....................................................           4
California..................................................          15
Colorado....................................................           4
Connecticut.................................................           4
Delaware....................................................           3
District of Columbia........................................           3
Florida.....................................................           8
Georgia.....................................................           6
Hawaii......................................................           3
Idaho.......................................................           3
Illinois....................................................           8
Indiana.....................................................           5
Iowa........................................................           4
Kansas......................................................           4
Kentucky....................................................           4
Louisiana...................................................           5
Maine.......................................................           3
Maryland....................................................           5
Massachusetts...............................................           5
Michigan....................................................           7
Minnesota...................................................           5
Mississippi.................................................           4
Missouri....................................................           5
Montana.....................................................           3
Nebraska....................................................           4
Nevada......................................................           3
New Hampshire...............................................           3
New Jersey..................................................           6
New Mexico..................................................           4
New York....................................................          10
North Carolina..............................................           6
North Dakota................................................           3
Ohio........................................................           7
Oklahoma....................................................           4
Oregon......................................................           4
Pennsylvania................................................           8
Puerto Rico.................................................           4
Rhode Island................................................           3
South Carolina..............................................           4
South Dakota................................................           3
Tennessee...................................................           5
Texas.......................................................          10
Utah........................................................           4
Vermont.....................................................           3
Virginia....................................................           5
Washington..................................................           5
West Virginia...............................................           4
Wisconsin...................................................           5
Wyoming.....................................................           3
                                                             -----------
      Totals................................................         256
------------------------------------------------------------------------


    Because of the limited amount of funding available, the selection 
process will be very competitive, with only about one in five proposed 
programs likely to receive support. Furthermore, the Corporation does 
not anticipate that any one State will receive more than a third of the 
available funds, and most States will receive considerably less. States 
are advised to submit applications proposing only coherent, high 
quality programs that: address the program and size requirements 
explained in part 2522 of this rule; are consistent with the State 
plan; and are cost-effective. States will not increase the chances of 
their programs receiving funding by increasing the total number of 
programs they submit.
    (b) Use of competitive funds to support programs included in the 
formula portion of a State application. The cost of programs included 
in the formula application may not exceed a State's formula allotment. 
However, from the competitive State funds, States may request 
additional funds and educational awards for programs listed in the 
formula section of the applications if either (i) the State receives 
small State priority consideration (as explained in Sec. II(B)(2), 
above), or (ii) programs listed in the formula portion of the 
application meet the national priorities explained in Sec. I(C)(2), 
above. Nevertheless, States should clearly indicate which programs will 
be supported with formula assistance if competitive funding is not 
received.
    (c) Limitation on State-run programs. The Act requires an assurance 
that at least sixty percent of Corporation assistance provided to a 
State will be used to support programs that are not operated by the 
State or State agency. However, the Corporation may waive this 
requirement if a State demonstrates that it did not receive an adequate 
number of acceptable applications from applicants other than States 
during the competitive selection process.
    The Corporation recognizes that this provision may be problematic 
for some States with large existing AmeriCorps programs previously 
supported by the Commission on National and Community Service, 
especially if the programs are operated by the State (through a 
department or agency). Such States should not attempt to comply with 
the 60% requirement if doing so would necessitate submission of more 
than five program proposals for competitive funding, proposals with 
inflated budgets, or proposals for programs that are not of high 
quality. In order to ensure that States with large existing grantees 
may participate, the Corporation will consider such States unable to 
comply.

(D) Selection Criteria Issues

    In order to preserve maximum flexibility from year to year to 
respond to changing priorities, the proposed regulations do not 
substantively add to or modify the selection criteria listed in the 
statute, except that, for State applicants, the quality of the State 
plan will be a criterion in the selection of programs. As explained in 
the ``State Plan'' section of this Supplementary Section above, the 
quality of the State plan will be one factor in determining whether a 
State's application for its formula allotment is accepted or rejected, 
and insofar as a State has a high-quality State plan it will benefit 
those programs in the competitive selection process as well. Other 
changes or additions to the selection criteria will be provided 
annually in the Corporation's application materials.

Investment for Quality and Innovation Issues

(1) Purpose
    The Investment for Quality and Innovation activities are a 
relatively small but nevertheless critical component of the 
Corporation's overall national and community service efforts. 
Activities funded under this part aim to build service infrastructure, 
and include training, technical assistance, fellowships, service 
awards, clearinghouses, research, recruitment, and innovative and 
demonstration programs.
    The Investment for Quality and Innovation activities apply to a 
broad spectrum of service areas, including, but not limited to, the 
service-learning and AmeriCorps programs described in parts 2515-2524 
of this rule. (Conversely, the training and technical assistance 
activities described in part 2524 of this rule target strictly the 
AmeriCorps programs described in parts 2520-2523.) All of these 
activities, however, are aimed at improving the quality of the service 
field and, ultimately, at finding the best ways to meet the Nation's 
needs through service.
(2) Priorities
    This rule divides these activities into three groups: Innovative 
and Special Demonstration Programs; Technical Assistance, Training, and 
Other Service Infrastructure-building Activities; and Special 
Activities. The precise activities that are allowable under each area 
are specified in parts 2531-2533. Given the limited resources that will 
be allotted to these activities (the Corporation anticipates the 
availability of $15 million in fiscal year 1994), the Corporation may 
exercise its statutory authority to set priorities that will limit the 
categories of activities that will be eligible for funding. If the 
Corporation chooses to establish such priorities for fiscal year 1994, 
it will seek to concentrate funds on those activities that will be most 
effective and efficient in building service infrastructure.

Miscellaneous Requirements

    Interested parties should be advised that because the assistance 
provided under the authority of this rule constitutes Federal financial 
assistance for the purposes of title VI of the Civil Rights Act of 1964 
(which bars discrimination based on race, color, or national origin), 
title IX of the Education Amendments of 1972 (which bars discrimination 
on the basis of gender), the Rehabilitation Act of 1973 (which bars 
discrimination on the basis of disability), and the Age Discrimination 
Act of 1975 (which bars discrimination on the basis of age), grantees 
will be required to comply with the aforementioned provisions of 
Federal law.
    Grant recipients will be expected to expend Corporation grants in a 
judicious and reasonable manner, consistent with pertinent provisions 
of Federal law and regulations. Grantees must keep records according to 
Corporation guidelines, including records that fully disclose the 
amount and disposition of the proceeds of a Corporation grant. The 
Inspector General of the Corporation (or other authorized official) 
shall have access, for the purpose of audit and examination, to the 
books and records of grantees that may be related or pertinent to the 
Corporation grant.
    Grantees should further be advised that Uniform Administrative 
Requirements for Grants and Cooperative Agreements to State and Local 
Governments, and Administrative Requirements for Grants and Cooperative 
Agreements to other than State and Local Governments, as well as 
regulations for the Privacy Act, Freedom of Information Act, Sunshine 
Act, Government-wide Debarment and Suspension, and Government-wide 
Requirements for Drug-Free Workplace will also be published prior to 
awarding grants.
    As required by the Regulatory Flexibility Act, it is hereby 
certified that this rule will not have a significant impact on small 
business entities.
    The Corporation has separately submitted to the Office of 
Management and Budget, under the terms of the Paperwork Reduction Act, 
application packages to be used by applicants when applying for 
Corporation grants. To request copies of the applications, please 
contact the Corporation for National and Community Service at the 
address listed above.
    As required by the Paperwork Reduction Act of 1980, the Corporation 
will submit the information collection requirements contained in this 
rule to the Office of Management and Budget for its review (44 U.S.C. 
3504(h)). The information collection requirements are needed in order 
to provide assistance to parties affected by these regulations, in 
accordance with statutory mandates.

(Catalog of Federal Domestic Assistance Numbers: 94.003 for State 
Commissions, Alternative Administrative Entities, and Transitional 
Entities; 94.004 for K-12 Service-Learning Programs; 94.005 for 
Higher Education Service-Learning Programs; 94.006 for AmeriCorps 
Programs; 94.007 for Investment for Quality and Innovation Programs)

List of Subjects

45 CFR Part 2510

    Grant programs--social programs, Volunteers.

45 CFR Part 2513

    Grant programs--social programs, Reporting and recordkeeping 
requirements, Volunteers.

45 CFR Part 2515

    Grant programs--social programs, Nonprofit organizations, 
Volunteers.

45 CFR Part 2516

    Elementary and secondary education, Grant programs--social 
programs, Indians, Nonprofit organizations, Reporting and recordkeeping 
requirements, Volunteers.

45 CFR Part 2517

    Community development, Grant programs--social programs, Nonprofit 
organizations, Reporting and recordkeeping requirements, Volunteers.

45 CFR Part 2518

    Grant programs--social programs, Nonprofit organizations, Reporting 
and recordkeeping requirements, Volunteers.

45 CFR Part 2519

    Colleges and universities, Grant programs--social programs, 
Nonprofit organizations, Reporting and recordkeeping requirements, 
Volunteers.

45 CFR Part 2520

    AmeriCorps, Grant programs--social programs, Volunteers.

45 CFR Part 2521

    AmeriCorps, Grant programs--social programs, Volunteers.

45 CFR Part 2522

    AmeriCorps, Grant programs--social programs, Reporting and 
recordkeeping requirements, Volunteers.

45 CFR Part 2523

    AmeriCorps, Grant programs--social programs, Volunteers.

45 CFR Part 2524

    AmeriCorps, Grant programs--social programs, Technical assistance, 
Volunteers.

45 CFR Part 2530

    Grant programs--social programs, Volunteers.

45 CFR Part 2531

    Grant programs--social programs, Volunteers.

45 CFR Part 2532

    Grant programs--social programs, Volunteers, Technical assistance.

45 CFR Part 2533

    Decorations, Medals, Awards, Scholarships and fellowships, 
Volunteers.

45 CFR Part 2540

    Administrative practice and procedure, Grant programs--social 
programs, Reporting and recordkeeping requirements, Volunteers.

    Dated: January 3, 1994.
Catherine Milton,
Vice President and Director of National and Community Service Programs.

    Accordingly, the Corporation amends title 45, chapter XXV of the 
Code of Federal Regulations by adding parts 2510, 2513, 2515 through 
2524, 2530 through 2533, and 2540 to read as follows:

PART 2510--OVERALL PURPOSES AND DEFINITIONS

Sec.
2510.10  What are the purposes of the programs and activities of the 
Corporation for National and Community Service?
2510.20  Definitions.

    Authority: 42 U.S.C. 12501 et seq.


Sec. 2510.10  What are the purposes of the programs and activities of 
the Corporation for National and Community Service?

    The National and Community Service Trust Act of 1993 established 
the Corporation for National and Community Service (the Corporation). 
The Corporation's mission is to engage Americans of all ages and 
backgrounds in community-based service. This service will address the 
Nation's educational, public safety, human, and environmental needs to 
achieve direct and demonstrable results. In doing so, the Corporation 
will foster civic responsibility, strengthen the ties that bind us 
together as a people, and provide educational opportunity for those who 
make a substantial commitment to service. The Corporation will 
undertake activities and provide assistance to States and other 
eligible entities to support national and community service programs 
and to achieve other purposes consistent with its mission.


Sec. 2510.20  Definitions.

    The following definitions apply to terms used in 45 CFR parts 2510 
through 2550:
    Act. The term Act means the National and Community Service Act of 
1990, as amended (42 U.S.C. 12501 et seq.).
    Administrative costs. The term administrative costs means costs 
associated with the overall administration of a Corporation program.
    (1) Administrative costs include such costs as the following:
    (i) Indirect costs (i.e., costs identified with two or more cost 
objectives but not identified with a particular cost objective) as 
described in applicable provisions of Office of Management and Budget 
Circulars that relate to indirect costs.
    (ii) Costs for financial, accounting, or contracting functions.
    (iii) Costs for insurance that protects the entity that operates 
the program.
    (iv) Costs for salaries and benefits of the director and any other 
administrative staff of the program.
    (2) Administrative costs do not include allowable costs directly 
related to program operations. These program costs include such costs 
as the following:
    (i) Costs for living allowances and training of participants.
    (ii) Costs for staff training.
    (iii) Costs for travel.
    (iv) Costs related to the evaluation of the program.
    (v) Costs for salaries and benefits of staff who recruit, train, 
place, or supervise participants.
    (3) Particular costs such as those associated with staff who 
perform both administrative and program functions may be prorated 
between administrative costs and costs directly related to program 
operations.
    Adult volunteer. The term adult volunteer means an individual, such 
as an older adult, an individual with a disability, a parent, or an 
employee of a business or public or private nonprofit organization, 
who--
    (1) Works without financial remuneration in an educational 
institution to assist students or out-of-school youth; and
    (2) Is beyond the age of compulsory school attendance in the State 
in which the educational institution is located.
    AmeriCorps. The term AmeriCorps means the combination of all 
AmeriCorps programs and participants.
    AmeriCorps educational award. The term AmeriCorps educational award 
means a national service educational award described in section 147 of 
the Act.
    AmeriCorps participant. The term AmeriCorps participant means any 
individual who is serving in--
    (1) An AmeriCorps program;
    (2) An approved AmeriCorps position; or
    (3) Both.
    AmeriCorps program. The term AmeriCorps program means--
    (1) Any program that receives approved AmeriCorps positions;
    (2) Any program that receives Corporation funds under section 121 
of the Act; or
    (3) Both.
    Approved AmeriCorps position. The term approved AmeriCorps position 
means an AmeriCorps position for which the Corporation has approved the 
provision of an AmeriCorps educational award as one of the benefits to 
be provided for successful service in the position.
    Carry out. The term carry out, when used in connection with an 
AmeriCorps program described in section 122 of the Act, means the 
planning, establishment, operation, expansion, or replication of the 
program.
    Chief Executive Officer. The term Chief Executive Officer, except 
when used to refer to the chief executive officer of a State, means the 
Chief Executive Officer of the Corporation appointed under section 193 
of the Act.
    Community-based agency. The term community-based agency means a 
private nonprofit organization (including a church or other religious 
entity) that--
    (1) Is representative of a community or a significant segment of a 
community; and
    (2) Is engaged in meeting educational, public safety, human, or 
environmental community needs.
    Corporation. The term Corporation means the Corporation for 
National and Community Service established under section 191 of the 
Act.
    Economically disadvantaged. The term economically disadvantaged 
means, with respect to an individual, an individual who is determined 
by the Chief Executive Officer to be low-income according to the latest 
available data from the Department of Commerce.
    Elementary school. The term elementary school has the same meaning 
given the term in section 1471(8) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 2891(8)).
    Indian. The term Indian means a person who is a member of an Indian 
tribe, or is a `Native', as defined in section 3(b) of the Alaska 
Native Claims Settlement Act (43 U.S.C. 1602(b)).
    Indian lands. The term Indian lands means any real property owned 
by an Indian tribe, any real property held in trust by the United 
States for an Indian or Indian tribe, and any real property held by an 
Indian or Indian tribe that is subject to restrictions on alienation 
imposed by the United States.
    Indian tribe. The term Indian tribe means--
    (1) An Indian tribe, band, nation, or other organized group or 
community, including--
    (i) Any Native village, as defined in section 3(c) of the Alaska 
Native Claims Settlement Act (43 U.S.C. 1602(c)), whether organized 
traditionally or pursuant to the Act of June 18, 1934 (commonly known 
as the `Indian Reorganization Act', 25 U.S. C. 461 et seq.); and
    (ii) Any Regional Corporation or Village Corporation, as defined in 
subsection (g) or (j), respectively, of section 3 of the Alaska Native 
Claims Settlement Act (43 U.S.C. 1602 (g) or (j)), that is recognized 
as eligible for the special programs and services provided by the 
United States under Federal law to Indians because of their status as 
Indians; and
    (2) Any tribal organization controlled, sanctioned, or chartered by 
an entity described in paragraph (1) of this definition.
    Individual with a disability. Except as provided in section 175(a) 
of the Act, the term individual with a disability has the meaning given 
the term in section 7(8)(B) of the Rehabilitation Act of 1973 (29 
U.S.C. 706(8)(B)), and includes an individual with a physical or mental 
impairment.
    Infrastructure-building activities. The term infrastructure-
building activities refers to activities that increase the capacity of 
organizations, programs and individuals to provide high quality service 
to communities.
    Institution of higher education. The term institution of higher 
education has the same meaning given the term in section 1201(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1141(a)).
    Local educational agency (LEA). The term local educational agency 
has the same meaning given the term in section 1471(12) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 2891(12)).
    National nonprofit. The term national nonprofit means any nonprofit 
organization whose mission, membership, activities, or constituencies 
are national in scope.
    National service laws. The term national service laws means the Act 
and the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4950 et 
seq.).
    Objective. The term objective means a desired accomplishment of a 
program.
    Out-of-school youth. The term out-of-school youth means an 
individual who--
    (1) Has not attained the age of 27;
    (2) Has not completed college or its equivalent; and
    (3) Is not enrolled in an elementary or secondary school or 
institution of higher education.
    Participant. (1) The term participant means an individual enrolled 
in a program that receives assistance under the Act.
    (2) A participant may not be considered to be an employee of the 
program in which the participant is enrolled.
    Partnership program. The term partnership program means a program 
through which an adult volunteer, a public or private nonprofit 
organization, an institution of higher education, or a business assists 
a local educational agency.
    Program. The term program, unless the context otherwise requires, 
and except when used as part of the term academic program, means a 
program described in section 111(a) (other than a program referred to 
in paragraph (3)(B) of that section), 117A(a), 119(b)(1), or 122(a) of 
the Act, or in paragraph (1) or (2) of section 152(b) of the Act, or an 
activity that could be funded under sections 198, 198C, or 198D of the 
Act.
    Program sponsor. The term program sponsor means an entity 
responsible for recruiting, selecting, and training participants, 
providing them benefits and support services, engaging them in regular 
group activities, and placing them in projects.
    Project. The term project means an activity, carried out through a 
program that receives assistance under the Act, that results in a 
specific identifiable service or improvement that otherwise would not 
be done with existing funds, and that does not duplicate the routine 
services or functions of the employer to whom participants are 
assigned.
    Project sponsor. The term project sponsor means an organization, or 
other entity, that has been selected to provide a placement for a 
participant.
    Qualified individual with a disability. The term qualified 
individual with a disability has the meaning given the term in section 
101(8) of the Americans with Disabilities Act of 1990 (42 U.S.C. 
12111(8)).
    School-age youth. The term school-age youth means--
    (1) Individuals between the ages of 5 and 17, inclusive; and
    (2) Children with disabilities, as defined in section 602(a)(1) of 
the Individuals with Disabilities Education Act (20 U.S.C. 1401(a)(1)), 
who receive services under part B of that Act.
    Secondary school. The term secondary school has the same meaning 
given the term in section 1471(21) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 2891(21)).
    Service-learning. The term service-learning means a method under 
which students or participants learn and develop through active 
participation in thoughtfully organized service that--
    (1) Is conducted in and meets the needs of a community and is 
coordinated with an elementary school, secondary school, institution of 
higher education, or community service program, and with the community;
    (2) Helps foster civic responsibility;
    (3) Is integrated into and enhances the academic curriculum of the 
students or the educational components of the community service program 
in which the participants are enrolled; and
    (4) Includes structured time for the students and participants to 
reflect on the service experience.
    Service-learning coordinator. The term service-learning coordinator 
means an individual trained in service-learning who identifies 
community partners for LEAs; assists in designing and implementing 
local partnerships service-learning programs; provides technical 
assistance and information to, and facilitates the training of, 
teachers; and provides other services for an LEA.
    State. The term State means each of the several States, the 
District of Columbia, the Commonwealth of Puerto Rico, the United 
States Virgin Islands, Guam, American Samoa, and the Commonwealth of 
the Northern Mariana Islands. The term also includes Palau, until the 
Compact of Free Association is ratified.
    State Commission. The term State Commission means a State 
Commission on National and Community Service maintained by a State 
pursuant to section 178 of the Act. Except when used in section 178, 
the term includes an alternative administrative entity for a State 
approved by the Corporation under that section to act in lieu of a 
State Commission.
    State educational agency (SEA). The term State educational agency 
has the same meaning given that term in section 1471(23) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 2891(23)).
    Student. The term student means an individual who is enrolled in an 
elementary or secondary school or institution of higher education on a 
full-time or part-time basis.
    Subdivision of a State. The term subdivision of a State means a 
governmental unit within a State other than a unit with Statewide 
responsibilities.

PART 2513--STATE PLAN: PURPOSE, APPLICATION REQUIREMENTS AND 
SELECTION CRITERIA

Sec.
2513.10  Who must submit a State Plan?
2513.20  What are the purposes of a State Plan?
2513.30  What information must a State Plan contain?
2513.40  How will the State Plans be evaluated?

    Authority: 42 U.S.C. 12501 et seq.


Sec. 2513.10  Who must submit a State Plan?

    The fifty States, the District of Columbia and Puerto Rico, through 
a Corporation-approved State Commission, Alternative Administrative 
Entity, or Transitional Entity must submit a comprehensive national and 
community service plan (``State Plan'') in order to apply to the 
Corporation for support under parts 2515 through 2524 of this chapter.


Sec. 2513.20  What are the purposes of a State Plan?

    The purposes of the State Plan are:
    (a) To set forth the State's plan for promoting national and 
community service and strengthening its service infrastructure, 
including how Corporation-funded programs fit into the plan;
    (b) To establish specific priorities and goals that advance the 
State's plan for strengthening its service program infrastructure and 
to specify strategies for achieving the stated goals;
    (c) To inform the Corporation of the relevant historical background 
of the State's infrastructure for supporting national and community 
service and other volunteer opportunities, as well as the current 
status of such infrastructure;
    (d) To assist the Corporation in making decisions on applications 
to receive formula and competitive funding under Sec. 2521.30 of this 
chapter and to assist the Corporation in assessing a State's 
application for renewal funding for State administrative funds as 
provided in part 2550 of this chapter; and
    (e) To serve as a working document that forms the basis of on-going 
dialogue between the State and the Corporation and which is subject to 
modifications as circumstances require.


Sec. 2513.30  What information must a State Plan contain?

    The State Plan must include the following information: 
    (a) An overview of a State's experience in coordinating and 
supporting the network of service programs within the State that 
address educational, public safety, human, and environmental needs, 
including, where appropriate, a description of specific service 
programs. This overview should encompass programs that have operated 
independently of and/or without financial support from the State;
    (b) A description of the State's priorities and vision for 
strengthening the service program infrastructure, including how 
programs proposed for Corporation funding fit into this vision. The 
plan should also describe how State priorities relate to any national 
priorities established by the Corporation;
    (c) A description of the goals established to advance the State's 
plan, including the strategies for achieving such goals. With respect 
to technical assistance activities (if any) and programs proposed to be 
funded by the Corporation, the plan should describe how such activities 
and programs will be coordinated with other service programs within the 
State. The plan should also describe the manner and extent to which the 
proposed programs will build on existing programs, including 
Corporation programs such as Serve-America, Higher Education, and 
programs funded under the Domestic Volunteer Service Act and other 
programs;
    (d) A description of the extent to which the State entity has 
coordinated its efforts with the State educational agency (SEA) in the 
SEA's application for school-based service learning funds;
    (e) A description of how the State reached out to a broad cross-
section of individuals and organizations to obtain their participation 
in the development of the State plan, including a discussion of the 
types of organizations and individuals who were actually involved in 
the process and the manner and extent of their involvement; and
    (f) Such other information as the Corporation may reasonably 
require.


Sec. 2513.40  How will the State Plans be evaluated?

    State plans will be evaluated on the basis of the following 
criteria:
    (a) The quality of the plan as evidenced by:
    (1) The development and quality of realistic goals and objectives 
for moving service ahead in the State;
    (2) The extent to which proposed strategies can reasonably be 
expected to accomplish stated goals;
    (3) The extent of input in the development of the State plan from a 
broad cross-section of individuals and organizations including 
community-based agencies; organizations with a demonstrated record of 
providing educational, public safety, human, or environmental services; 
residents of the State, including youth and other prospective 
participants, State Education Agencies; traditional service 
organizations; and labor unions;
    (b) The sustainability of the national service efforts outlined in 
the plan, as evidenced by the extent to which they are supported by:
    (1) The State, through financial, in-kind and bi-partisan political 
support, including the existence of supportive legislation; and
    (2) Other support, including the financial, in-kind and other 
support of the private sector, foundations, and other entities and 
individuals; and
    (c) Such other criteria as the Corporation deems necessary.

PART 2515--SERVICE-LEARNING PROGRAM PURPOSES AND DEFINITIONS

Sec.
2515.10 What are the service-learning programs of the Corporation 
for National and Community Service?
2515.20 What definitions apply to service-learning programs?

    Authority: 42 U.S.C. 12501 et seq.


Sec. 2515.10  What are the service-learning programs of the Corporation 
for National and Community Service?

    (a) There are three service-learning programs:
    (1) School-based programs, described in part 2516 of this chapter.
    (2) Community-based programs, described in part 2517 of this 
chapter.
    (3) Higher education programs, described in part 2519 of this 
chapter.
    (b) Each program gives participants the opportunity to learn and 
develop their own capabilities through service-learning, while 
addressing needs in the community.


Sec. 2515.20  What definitions apply to service-learning programs?

    In addition to the definitions in Sec. 2510.20 of this chapter, the 
following definitions apply to terms used in parts 2515 through 2519 of 
this chapter.
    Grantmaking entity. (1) For school-based programs, the term 
grantmaking entity means a public or private nonprofit organization 
experienced in service-learning that--
    (i) Submits an application to make grants for school-based service-
learning programs; and
    (ii) Was in existence at least one year before the date on which 
the organization submitted the application.
    (2) For community-based programs, the term grantmaking entity means 
a qualified organization that--
    (i) Submits an application to make grants to qualified 
organizations to implement, operate, expand, or replicate community-
based service programs that provide for educational, public safety, 
human, or environmental service by school-age youth in two or more 
States; and
    (ii) Was in existence at least one year before the date on which 
the organization submitted the application.
    Partnership. The term partnership means an organization comprised 
of two or more entities that have entered into a written agreement 
specifying the responsibilities of each partner with respect to a 
service-learning program.
    Qualified organization. The term qualified organization means a 
public or private nonprofit organization, other than a grantmaking 
entity, that--
    (1) Has experience in working with school-age youth; and
    (2) Was in existence at least one year before the date on which the 
organization submitted an application for a service-learning program.
    U.S. Territory. The term U.S. Territory means the Virgin Islands, 
Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, 
and Palua, until the Compact of Free Association with Palau is 
ratified.

PART 2516--SCHOOL-BASED SERVICE-LEARNING PROGRAMS

Subpart A--Eligibility to Apply

Sec.
2516.100  Who may apply for a direct grant from the Corporation?
2516.110  Who may apply for a subgrant from a Corporation grantee?

Subpart B--Use of Grant Funds

2516.200  How may grant funds be used?

Subpart C--Eligibility to Participate

2516.300  Who may participate in a school-based service-learning 
program?
2516.310  May private school students participate?

Subpart D--Application Contents

2516.400  What must a State or Indian tribe include in an 
application for a grant?
2516.410  What must a grantmaking entity, local partnership, or LEA 
include in an application for a grant?
2516.420  What must an LEA, local partnership, or qualified 
organization include in an application for a subgrant?

Subpart E--Application Review

2516.500  How does the Corporation review the merits of an 
application?
2516.510  What happens if the Corporation rejects a State's 
application for an allotment grant?
2516.520  How does a State, Indian tribe, or grantmaking entity 
review the merits of an application?

Subpart F--Distribution of Funds

2516.600  How are funds for school-based service-learning programs 
distributed?

Subpart G--Funding Requirements

2516.700  Are matching funds required?
2516.710  Are there limits on the use of funds?
2516.720  What is the length of each type of grant?
2516.730  May an applicant submit multiple applications for the same 
project?

Subpart H--Monitoring and Evaluation Requirements

2516.800  What are the purposes of monitoring and evaluation?
2516.810  By what standards will service-learning programs be 
evaluated?
2516.820  What must grantees and subgrantees do to monitor and 
evaluate the effectiveness of their programs?
2516.830  What must a Corporation grantee do to monitor and evaluate 
the effectiveness of the programs of its subgrantees?
2516.840  Must grantees or subgrantees perform independent 
evaluations?
2516.850  What will the Corporation do to evaluate the overall 
success of the service-learning program?
2516.860  Will information on individual participants be kept 
confidential?

    Authority: 42 U.S.C. 12501 et seq.

Subpart A--Eligibility to Apply


Sec. 2516.100  Who may apply for a direct grant from the Corporation?

    (a) The following entities may apply for a direct grant from the 
Corporation:
    (1) A State, through a State educational agency (SEA) as defined in 
Sec. 2510.20 of this chapter. For the purpose of this part, ``State'' 
means one of the 50 States, the District of Columbia, the Commonwealth 
of Puerto Rico, and, except for the purpose of Sec. 2516.600 (b), U.S. 
Territories.
    (2) An Indian tribe.
    (3) A U.S. Territory as defined in Sec. 2515.20 of this chapter.
    (4) A grantmaking entity as defined in Sec. 2515.20 of this 
chapter.
    (5) For activities in a nonparticipating State, a local educational 
agency (LEA) as defined in Sec. 2510.20 of this chapter or a local 
partnership as described in Sec. 2516.110.
    (b) The types of grants for which each entity is eligible are 
described in Sec. 2516.200.


Sec. 2516.110  Who may apply for a subgrant from a Corporation grantee?

    Entities that may apply for a subgrant from a State, Indian tribe, 
or grantmaking entity are:
    (a) An LEA, for a grant from a State for planning school-based 
service-learning programs.
    (b) A local partnership, for a grant from a State or a grantmaking 
entity to implement, operate, or expand a school-based service learning 
program.
    (1) The partnership must include an LEA and one or more community 
partners. The partnership may include a private for-profit business or 
private elementary or secondary school.
    (2) The community partners must include a public or private 
nonprofit organization that has demonstrated expertise in the provision 
of services to meet educational, public safety, human, or environmental 
needs; was in existence at least one year before the date on which the 
organization submitted an application under this part; and will make 
projects available for participants, who must be students.
    (c) A local partnership, for a grant from a State or a grantmaking 
entity to implement, operate, or expand an adult volunteer program. The 
partnership must include an LEA and one or more public or private 
nonprofit organizations, other educational agencies, or private for-
profit businesses.
    (d) A qualified organization as defined in Sec. 2515.20 of this 
chapter, for a grant from a State or Indian tribe for planning or 
building the capacity of the State or Indian tribe.

Subpart B--Use of Grant Funds


Sec. 2516.200  How may grant funds be used?

    Funds under a school-based service-learning grant may be used for 
the purposes described in this section.
    (a) Planning and capacity-building for States and Indian tribes. 
(1) A State or Indian tribe may use funds to pay for planning and 
building its capacity to implement school-based service-learning 
programs. These entities may use funds either directly or through 
subgrants or contracts with qualified organizations.
    (2) Authorized activities include the following:
    (i) Providing training for teachers, supervisors, personnel from 
community-based agencies (particularly with regard to the utilization 
of participants) and trainers, conducted by qualified individuals or 
organizations experienced in service-learning.
    (ii) Developing service-learning curricula to be integrated into 
academic programs, including the age-appropriate learning components 
for students to analyze and apply their service experiences.
    (iii) Forming local partnerships described in Sec. 2516.110 to 
develop school-based service-learning programs in accordance with this 
part.
    (iv) Devising appropriate methods for research and evaluation of 
the educational value of service-learning and the effect of service-
learning activities on communities.
    (v) Establishing effective outreach and dissemination of 
information to ensure the broadest possible involvement of community-
based agencies with demonstrated effectiveness in working with school-
age youth in their communities.
    (b) Implementing, operating, and expanding programs. (1) A State or 
grantmaking entity may use funds to make subgrants to local 
partnerships described in Sec. 2516.110(b) to implement, operate, or 
expand school-based service-learning programs.
    (2) If a State does not submit an application that meets the 
requirements for an allotment grant under Sec. 2516.400, the 
Corporation may use the allotment to fund applications from those local 
partnerships for programs in that State.
    (3) A grantmaking entity may use funds to provide technical 
assistance and training to appropriate persons relating to its 
subgrants.
    (c) Planning programs. (1) A State may use funds to make subgrants 
to LEAs for planning school-based service-learning programs.
    (2) If a State does not submit an application that meets the 
requirements for an allotment grant under Sec. 2516.400, the 
Corporation may use the allotment to fund applications from LEAs for 
planning programs in that State.
    (3) Authorized activities include paying the costs of--
    (i) The salaries and benefits of service-learning coordinators as 
defined in Sec. 2510.20 of this chapter; and
    (ii) The recruitment, training, supervision, and placement of 
service-learning coordinators who are participants in an AmeriCorps 
program described in parts 2520 through 2524 of this chapter or who 
receive AmeriCorps educational awards.
    (d) Adult volunteer programs. (1) A State, Indian tribe, U.S. 
territory, or grantmaking entity may use funds to make subgrants to 
local partnerships described in Sec. 2516.110(c) to implement, operate, 
or expand school-based programs involving adult volunteers to utilize 
service-learning to improve the education of students.
    (2) If a State does not submit an application that meets the 
requirements for an allotment grant under Sec. 2516.400, the 
Corporation may use the allotment to fund applications from those local 
partnerships for adult volunteer programs in that State.
    (e) Planning by Indian tribes and U.S. Territories. If the 
Corporation makes a grant to an Indian tribe or a U.S. Territory to 
plan school-based service-learning programs, the grantee may use the 
funds for that purpose.
    (f) Allowable expenses. An LEA, local partnership, or qualified 
organization may use funds under this part for the Corporation share of 
reasonable costs related to the supervision of participants, program 
administration, transportation, insurance, evaluations, and other 
reasonable expenses related to the funded activities.

Subpart C--Eligibility To Participate


Sec. 2516.300  Who may participate in a school-based service-learning 
program?

    Students who are enrolled in elementary or secondary schools on a 
full-time or part-time basis may participate in school-based programs.


Sec. 2516.310  May private school students participate?

    (a) Yes. To the extent consistent with the number of students in 
the State or Indian tribe or in the school district of the LEA involved 
who are enrolled in private nonprofit elementary or secondary schools, 
the State, Indian tribe, or LEA must (after consultation with 
appropriate private school representatives) make provision--
    (1) For the inclusion of services and arrangements for the benefit 
of those students so as to allow for the equitable participation of the 
students in the programs under this part; and
    (2) For the training of the teachers of those students so as to 
allow for the equitable participation of those teachers in the programs 
under this part.
    (b)(1) If a State, Indian tribe, or LEA is prohibited by law from 
providing for the participation of students or teachers from private 
nonprofit schools as required by paragraph (a) of this section, or if 
the Corporation determines that a State, Indian tribe, or LEA 
substantially fails or is unwilling to provide for their participation 
on an equitable basis, the Corporation will waive those requirements 
and arrange for the provision of services to the students and teachers.
    (2) Waivers will be subject to the consultation, withholding, 
notice, and judicial review requirements of section 1017(b) (3) and (4) 
of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
2727(b)).

Subpart D--Application Contents


Sec. 2516.400  What must a State or Indian tribe include in an 
application for a grant?

    In order to apply for a grant from the Corporation under this part, 
a State (SEA) or Indian tribe must submit the following:
    (a) A three-year strategic plan, or a revision of a previously 
approved three-year strategic plan, for promoting service-learning 
through programs under this part. The application of a SEA must include 
a description of how the SEA will coordinate its service-learning plan 
with the State Plan under part 2513 of this chapter and with other 
federally-assisted activities.
    (b) A proposal containing the specific program, budget, and other 
information specified by the Corporation in the grant application 
package.
    (c) Assurances that the applicant will--
    (1) Keep such records and provide such information to the 
Corporation with respect to the programs as may be required for fiscal 
audits and program evaluation; and
    (2) Comply with the nonduplication, nondisplacement, and grievance 
procedure requirements of part 2540 of this chapter.


Sec. 2516.410  What must a grantmaking entity, local partnership, or 
LEA include in an application for a grant?

    In order to apply to the Corporation for a grant, a grantmaking 
entity, local partnership, or LEA must submit the following:
    (a) A detailed description of the proposed program goals and 
activities. The application of a grantmaking entity must include--
    (1) A description of how the applicant will coordinate its 
activities with the State Plan under part 2513 of this chapter and with 
other federally-assisted activities; and
    (2) A description of how the program will be carried out in more 
than one State.
    (b) The specific program, budget, and other information specified 
by the Corporation in the grant application package.
    (c) Assurances that the applicant will--
    (1) Keep such records and provide such information to the 
Corporation with respect to the program as may be required for fiscal 
audits and program evaluation;
    (2) Prior to the placement of a participant, consult with the 
appropriate local labor organization, if any, representing employees in 
the area who are engaged in the same or similar work as that proposed 
to be carried out by the program, to prevent the displacement and 
protect the rights of those employees;
    (3) Develop an age-appropriate learning component for participants 
in the program that includes a chance for participants to analyze and 
apply their service experiences; and
    (4) Comply with the nonduplication, nondisplacement, and grievance 
procedure requirements of part 2540 of this chapter.
    (d) For a local partnership, an assurance that the LEA will serve 
as the partnerships fiscal agent.


Sec. 2516.420  What must an LEA, local partnership, or qualified 
organization include in an application for a subgrant?

    In order to apply for a subgrant from an SEA, Indian tribe, or 
grantmaking entity under this part, an applicant must include the 
information required by the Corporation grantee.

Subpart E--Application Review


Sec. 2516.500  How does the Corporation review the merits of an 
application?

    (a) In reviewing the merits of an application submitted to the 
Corporation under this part, the Corporation evaluates the quality, 
innovation, replicability, and sustainability of the proposal on the 
basis of the following criteria:
    (1) Quality, as indicated by the extent to which--
    (i) The program will provide productive meaningful, educational 
experiences that incorporate service-learning methods;
    (ii) The program will meet community needs and involve individuals 
from diverse backgrounds (including economically disadvantaged youth) 
who will serve together to explore the root causes of community 
problems;
    (iii) The principal leaders of the program will be well qualified 
for their responsibilities;
    (iv) The program has sound plans and processes for training, 
technical assistance, supervision, quality control, evaluation, 
administration, and other key activities; and
    (v) The program will advance knowledge about how to do effective 
and innovative community service and service-learning and enhance the 
broader elementary and secondary education field.
    (2) Replicability, as indicated by the extent to which the program 
will assist others in learning from experience and replicating the 
approach of the program.
    (3) Sustainability, as indicated by the extent to which--
    (i) An SEA or grantmaking entity applicant demonstrates the ability 
and willingness to coordinate its activities with the State Plan under 
part 2513 of this chapter and with other federally assisted activities;
    (ii) The program will foster collaborative efforts among local 
educational agencies, local government agencies, community based 
agencies, businesses, and State agencies;
    (iii) The program will enjoy strong, broad-based community support; 
and
    (iv) There is evidence that financial resources will be available 
to continue the program after the expiration of the grant.
    (b) The Corporation also gives priority to proposals that--
    (1) Involve participants in the design and operation of the 
program;
    (2) Reflect the greatest need for assistance, such as programs 
targeting low-income areas;
    (3) Involve students from public and private schools serving 
together;
    (4) Involve students of different ages, races, genders, 
ethnicities, abilities and disabilities, or economic backgrounds, 
serving together;
    (5) Are integrated into the academic program of the participants;
    (6) Best represent the potential of service-learning as a vehicle 
for education reform and school-to-work transition;
    (7) Develop civic responsibility and leadership skills and 
qualities in participants;
    (8) Demonstrate the ability to achieve the goals of this part on 
the basis of the proposal's quality, innovation, replicability, and 
sustainability; or
    (9) Address any other priority established by the Corporation for a 
particular period.
    (c) In reviewing applications submitted by Indian tribes and U.S. 
Territories, the Corporation--
    (1) May decide to approve only planning of school-based service-
learning programs; and
    (2) Will set the amounts of grants in accordance with the 
respective needs of applicants.


Sec. 2516.510  What happens if the Corporation rejects a State's 
application for an allotment grant?

    If the Corporation rejects a State's application for an allotment 
grant under Sec. 2516.600 (b)(2) the Corporation will--
    (a) Promptly notify the State of the reasons for the rejection;
    (b) Provide the State with a reasonable opportunity to revise and 
resubmit the application;
    (c) Provide technical assistance, if necessary; and
    (d) Promptly reconsider the resubmitted application and make a 
decision.


Sec. 2516.520  How does a State, Indian tribe, or grantmaking entity 
review the merits of an application?

    In reviewing the merits of an application for a subgrant under this 
part, a Corporation grantee must use the criteria and priorities in 
Sec. 2516.500.

 Subpart F--Distribution of Funds


Sec. 2516.600  How are funds for school-based service-learning programs 
distributed?

    (a) Of the amounts appropriated to carry out this part for any 
fiscal year, the Corporation will reserve not more than three percent 
for grants to Indian tribes and U.S. Territories to be allotted in 
accordance with their respective needs.
    (b) The Corporation will use the remainder of the funds 
appropriated as follows:
    (1) Competitive Grants. From 25 percent of the remainder, the 
Corporation may make grants on a competitive basis to States, Indian 
tribes, or grantmaking entities.
    (2) Allotments to States. (i) From 37.5 percent of the remainder, 
the Corporation will allot to each State an amount that bears the same 
ratio to 37.5 percent of the remainder as the number of school-age 
youth in the State bears to the total number of school-age youth of all 
States.
    (ii) From 37.5 percent of the remainder, the Corporation will allot 
to each State an amount that bears the same ratio to 37.5 percent of 
the remainder as the allocation to the State for the previous fiscal 
year under Chapter 1 of Title I of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 2711 et seq.) bears to the allocations 
to all States.
    (iii) Notwithstanding other provisions of paragraph (b)(2) of this 
section, no State will receive an allotment that is less than the 
allotment the State received for fiscal year 1993 from the Commission 
on National and Community Service. If the amount of funds made 
available in a fiscal year is insufficient to make those allotments, 
the Corporation will make additional funds available from the 25 
percent described in paragraph (b)(1) of this section for that fiscal 
year to make those allotments.
    (3) For the purpose of paragraph (b) of this section, ``State'' 
means one of the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico.
    (c) If a State or Indian tribe does not submit an application that 
meets the requirements for approval under this part, the Corporation 
(after making any grants to local partnerships or LEAs for activities 
in nonparticipating States) may use its allotment for States and Indian 
tribes with approved applications, as the Corporation determines 
appropriate.
    (d) Notwithstanding other provisions of this section, if less than 
$20,000,000 is made available in any fiscal year to carry out this 
part, the Corporation will make all grants to States and Indian tribes 
on a competitive basis.

Subpart G--Funding Requirements


Sec. 2516.700  Are matching funds required?

    (a) Yes. The Corporation share of the cost of carrying out a 
program funded under this part may not exceed--
    (1) Ninety percent of the total cost for the first year for which 
the program receives assistance;
    (2) Eighty percent of the total cost for the second year;
    (3) Seventy percent of the total cost for the third year; and
    (4) Fifty percent of the total cost for the fourth year and any 
subsequent year.
    (b) In providing for the remaining share of the cost of carrying 
out a program, each recipient of assistance must provide for that share 
through a payment in cash or in kind, fairly evaluated, including 
facilities, equipment, or services, and may provide for that share 
through State sources, local sources, or Federal sources (other than 
funds made available under the national service laws).
    (c) However, the Corporation may waive the requirements of 
paragraph (b) of this section in whole or in part with respect to any 
program in any fiscal year if the Corporation determines that the 
waiver would be equitable due to a lack of available financial 
resources at the local level.


Sec. 2516.710  Are there limits on the use of funds?

    Yes. The following limits apply to funds made available under this 
part:
    (a)(1) The recipient of a direct grant from the Corporation may 
spend no more than five percent of the grant funds on administrative 
costs for any fiscal year.
    (2) If a Corporation grantee makes a subgrant to an entity to carry 
out a service-learning program, the Corporation grantee may determine 
how the allowable administrative costs will be distributed between 
itself and the subgrantee.
    (b)(1) An SEA or Indian tribe must spend between ten and 15 percent 
of the grant to build capacity through training, technical assistance, 
curriculum development, and coordination activities.
    (2) However, the Corporation may waive this requirement in order to 
permit an SEA or a tribe to use between ten percent and 20 percent of 
the grant funds to build capacity. To be eligible to receive the 
waiver, the SEA or tribe must submit an application to the Corporation.
    (c) Funds made available under this part may not be used to pay any 
stipend, allowance, or other financial support to any participant in a 
service-learning program under this part or part 2517 or 2519 of this 
chapter except reimbursement for transportation, meals, and other 
reasonable out-of-pocket expenses directly related to participation in 
a program assisted under this part.


Sec. 2516.720  What is the length of each type of grant?

    (a) One year is the maximum length of--
    (1) A planning grant under Sec. 2516.200 (a), (c) or (f); and
    (2) A grant to a local partnership for activities in a 
nonparticipating State under Sec. 2516.200 (b) and (d).
    (b) All other grants are for a period of up to three years, subject 
to satisfactory performance and annual appropriations.


Sec. 2516.730  May an applicant submit multiple applications for the 
same project?

    No. The Corporation will reject an application if the application 
describes a project proposed to be conducted using assistance requested 
by the applicant and the project is already described in another 
application pending before the Corporation.

Subpart H--Monitoring and Evaluation Requirements


Sec. 2516.800  What are the purposes of monitoring and evaluation?

    (a) Monitoring is a continuous effort to assess performance and 
improve quality. Evaluation is an assessment of program effectiveness 
and outcomes at the end of a given period of time.
    (b) Every monitoring and evaluation requirement serves one or more 
of the following purposes:
    (1) Ensuring quality programs.
    (2) Examining the benefits of national and community service.
    (3) Fulfilling legislative requirements.


Sec. 2516.810  By what standards will service-learning programs be 
evaluated?

    The Corporation will evaluate programs based on the following:
    (a) The extent to which the program meets the objectives 
established and agreed to by the grantee and the Corporation before the 
grant award.
    (b) The extent to which the program is cost-effective.
    (c) Other criteria as determined and published by the Corporation.


Sec. 2516.820  What must grantees and subgrantees do to monitor and 
evaluate the effectiveness of their programs?

    Grantees and subgrantees must undertake the following activities:
    (a) Monitor management effectiveness, the quality of services 
provided, and the satisfaction of both participants and service 
recipients. Monitoring should be a continuous process, allowing for 
frequent feedback and quick correction of weaknesses. Monitoring 
approaches such as community advisory councils, participant advisory 
councils, peer reviews, quality control inspections, and service 
recipient and participant surveys are encouraged.
    (b) Track progress toward pre-established objectives. Objectives 
must be established by programs and approved by the Corporation. 
Programs must submit to the Corporation (or the Corporation grantee as 
applicable) periodic performance reports and, as part of an annual 
report, an annual performance report.
    (c) Collect and submit to the Corporation (through the Corporation 
grantee as applicable) the following data:
    (1) The total number of participants in each program and basic 
demographic characteristics of the participants including sex, age, 
economic background, education level, ethnic group, disability 
classification, and geographic region.
    (2) Other information as required by the Corporation.


Sec. 2516.830  What must a Corporation grantee do to monitor and 
evaluate the effectiveness of the programs of its subgrantees?

    A Corporation grantee that makes subgrants must undertake the 
following activities:
    (a) Ensure that subgrantees comply with the requirements of 
Sec. 2516.820.
    (b) Track program performance in terms of progress toward pre-
established objectives; ensure that corrective action is taken when 
necessary; and submit to the Corporation periodic performance reports 
and, as part of an annual report, an annual performance report for each 
subgrantee.
    (c) Collect from programs and submit to the Corporation the 
descriptive information required in Sec. 2516.820(c)(1).


Sec. 2516.840  Must grantees or subgrantees perform independent 
evaluations?

    No. An independent evaluation is not required but is permissible.


Sec. 2516.850  What will the Corporation do to evaluate the overall 
success of the service-learning program?

    (a) The Corporation will conduct independent evaluations. These 
evaluations will consider the opinions of participants and members of 
the communities where services are delivered. If appropriate, these 
evaluations will compare participants with individuals who have not 
participated in service-learning programs. These evaluations will--
    (1) Study the extent to which service-learning programs as a whole 
affect the involved communities;
    (2) Determine the extent to which service-learning programs as a 
whole increase academic learning of participants, enhance civic 
education, and foster continued community involvement; and
    (3) Determine the effectiveness of different program models.
    (b) The Corporation will also determine by June 30, 1995, whether 
outcomes of service-learning programs are defined and measured 
appropriately, and the implications of the results from such a study 
for authorized funding levels.


Sec. 2516.860  Will information on individual participants be kept 
confidential?

    (a) Yes. The Corporation will maintain the confidentiality of 
information regarding individual participants that is acquired for the 
purpose of the evaluations described in Sec. 2516.850. The Corporation 
will disclose individual participant information only with the prior 
written consent of the participant. However, the Corporation may 
disclose aggregate participant information.
    (b) Grantees and subgrantees under this part must comply with the 
provisions of paragraph (a) of this section.

PART 2517--COMMUNITY-BASED SERVICE-LEARNING PROGRAMS

Subpart A--Grant Applications

Sec.
2517.100  Who may apply for a direct grant from the Corporation?
2517.110  Who may apply for a subgrant from a Corporation grantee?

Subpart B--Use of Grant Funds

2517.200  How may grant funds be used?

Subpart C--Eligibility to Participate

2517.300  Who may participate in a community-based service-learning 
program?

Subpart D--Application Contents

2517.400  What must a State Commission or grantmaking entity include 
in an application for a grant?
2517.410  What must a qualified organization include in an 
application for a grant or a subgrant?

Subpart E--Application Review

2517.500  How is an application evaluated?

Subpart F--Distribution of Funds

2517.600  How are funds for community-based service-learning 
programs distributed?

Subpart G--Funding Requirements

2517.700  Are matching funds required?
2517.710  Are there limits on the use of funds?
2517.720  What is the length of a grant?
2517.730  May an applicant submit multiple applications for the same 
project?

Subpart H--Evaluation and Monitoring Requirements

2517.800  What are the evaluation and monitoring requirements for 
community-based programs?

    Authority: 42 U.S.C. 12501 et seq.

Subpart A--Grant Applications


Sec. 2517.100  Who may apply for a direct grant from the Corporation?

    (a) The following entities may apply for a direct grant from the 
Corporation:
    (1) A State Commission established under part 2550 of this chapter.
    (2) A grantmaking entity as defined in Sec. 2515.20 of this 
chapter.
    (3) A qualified organization as defined in Sec. 2515.20 of this 
chapter.
    (b) The types of grants for which each entity is eligible are 
described in Sec. 2517.200 of this chapter.


Sec. 2517.110  Who may apply for a subgrant from a Corporation grantee?

    Entities that may apply for a subgrant from a State Commission or 
grantmaking entity are qualified organizations that have entered into a 
partnership with one or more--
    (a) Local educational agencies (LEAs);
    (b) Other qualified organizations; or
    (c) Both.

Subpart B--Use of Grant Funds


Sec. 2517.200  How may grant funds be used?

    Funds under a community-based service-learning grant may be used 
for the purposes described in this section.
    (a) A State Commission or grantmaking entity may use funds--
    (1) To make subgrants to qualified organizations described in 
Sec. 2517.110 to implement, operate, expand, or replicate a community-
based service program that provides direct and demonstrable 
educational, public safety, human, or environmental service by 
participants, who must be school-age youth; and
    (2) To provide training and technical assistance to qualified 
organizations.
    (b)(1) A qualified organization may use funds under a direct grant 
or a subgrant to implement, operate, expand, or replicate a community-
based service program.
    (2) If a qualified organization receives a direct grant, its 
program must be carried out at sites in two or more States or be 
particularly innovative.

Subpart C--Eligibility to Participate


Sec. 2517.300  Who may participate in a community-based service-
learning program?

    School-age youth as defined in Sec. 2510.20 of this chapter may 
participate in a community-based program.

Subpart D--Application Contents


Sec. 2517.400  What must a State Commission or grantmaking entity 
include in an application for a grant?

    (a) In order to apply for a grant from the Corporation under this 
part, a State Commission or a grantmaking entity must submit the 
following:
    (1) A three-year strategic plan for promoting service-learning 
through programs under this part. The plan must identify and describe 
the community-based programs proposed to be carried out during the 
first year.
    (2) A proposal containing the specific program, budget, and other 
information specified by the Corporation in the grant application 
package.
    (3) A description of how activities under the grant will be 
coordinated with the State Plan under part 2513 of this chapter and 
with other federally-assisted activities.
    (4) Assurances that the applicant will--
    (i) Keep such records and provide such information to the 
Corporation with respect to the programs as may be required for fiscal 
audits and program evaluation;
    (ii) Comply with the nonduplication, nondisplacement, and grievance 
procedure requirements of part 2540 of this chapter; and
    (iii) Ensure that, prior to placing a participant in a program, the 
entity carrying out the program will consult with the appropriate local 
labor organization, if any, representing employees in the area in which 
the program will be carried out that are engaged in the same or similar 
work as the work proposed to be carried out by the program, to prevent 
the displacement of those employees.
    (b) In addition, a grantmaking entity must submit information 
demonstrating that the entity will make grants for a program--
    (1) To carry out activities in two or more States, under 
circumstances in which those activities can be carried out more 
efficiently through one program than through two or more programs; and
    (2) To carry out the same activities, such as training activities 
or activities related to exchanging information on service experiences, 
through each of the projects assisted through the program.


Sec. 2517.410  What must a qualified organization include in an 
application for a grant or a subgrant?

    (a) In order to apply to the Corporation for a direct grant, a 
qualified organization must submit the following:
    (1) A three-year plan describing the goals and activities of the 
proposed program;
    (2) The specific program, budget, and other information specified 
by the Corporation in the grant application package; and
    (3) Assurances that the applicant will--
    (i) Keep such records and provide such information to the 
Corporation with respect to the program as may be required for fiscal 
audits and program evaluation;
    (ii) Comply with the nonduplication, nondisplacement, and grievance 
procedure requirements of part 2540 of this chapter; and
    (iii) Prior to placing a participant in the program, consult with 
the appropriate local labor organization, if any, representing 
employees in the area in which the program will be carried out who are 
engaged in the same or similar work as the work proposed to be carried 
out by the program, to prevent the displacement of those employees.
    (b) In order to apply to a State Commission or a grantmaking entity 
for a subgrant, a qualified organization must submit the following:
    (1) A plan describing the goals and activities of the proposed 
program; and
    (2) Such specific program, budget, and other information as the 
Commission or entity reasonably requires.

Subpart E--Application Review


Sec. 2517.500  How is an application evaluated?

    In evaluating an application for a grant or a subgrant, the 
Corporation, a State Commission, or a grantmaking entity will apply the 
following criteria:
    (a) The quality of the program proposed.
    (b) The innovation of, and feasibility of replicating, the program.
    (c) The sustainability of the program, based on--
    (1) Strong and broad-based community support;
    (2) Multiple funding sources or private funding; and
    (3) Coordination with the State Plan under part 2513 of this 
chapter and other federally-assisted activities.
    (d) The quality of the leadership of the program, past performance 
of the program, and the extent to which the program builds on existing 
programs.
    (e) The applicant's efforts--
    (1) To recruit participants from among residents of the communities 
in which projects would be conducted;
    (2) To ensure that the projects are open to participants of 
different ages, races, genders, ethnicities, abilities and 
disabilities, and economic backgrounds; and
    (3) To involve participants and community residents in the design, 
leadership, and operation of the program.
    (f) The extent to which projects would be located in areas that 
are--
    (1) Empowerment zones, redevelopment areas, or other areas with 
high concentrations of low-income people; or
    (2) Environmentally distressed.

Subpart F--Distribution of Funds


Sec. 2517.600  How are funds for community-based service-learning 
programs distributed?

    All funds are distributed by the Corporation through competitive 
grants.

Subpart G--Funding Requirements


Sec. 2517.700  Are matching funds required?

    (a) Yes. The Corporation share of the cost of carrying out a 
program funded under this part may not exceed--
    (1) Ninety percent of the total cost for the first year for which 
the program receives assistance;
    (2) Eighty percent of the total cost for the second year;
    (3) Seventy percent of the total cost for the third year; and
    (4) Fifty percent of the total cost for the fourth year and any 
subsequent year.
    (b) In providing for the remaining share of the cost of carrying 
out a program, each recipient of assistance must provide for that share 
through a payment in cash or in kind, fairly evaluated, including 
facilities, equipment, or services, and may provide for that share 
through State sources, local sources, or Federal sources (other than 
funds made available under the national service laws).
    (c) However, the Corporation may waive the requirements of 
paragraph (b) of this section in whole or in part with respect to any 
program in any fiscal year if the Corporation determines that the 
waiver would be equitable due to lack of available financial resources 
at the local level.


Sec. 2517.710  Are there limits on the use of funds?

    Yes. The following limits apply to funds made available under this 
part:
    (a)(1) The recipient of a direct grant from the Corporation may 
spend no more than five percent of the grant funds on administrative 
costs for any fiscal year.
    (2) If a Corporation grantee makes a subgrant to an entity to carry 
out a service-learning program, the Corporation grantee may determine 
how the allowable administrative costs will be distributed between 
itself and the subgrantee.
    (b) Funds made available under this part may not be used to pay any 
stipend, allowance, or other financial support to any participant in a 
service-learning program under this part or part 2516 or 2519 of this 
chapter except reimbursement for transportation, meals, and other 
reasonable out-of-pocket expenses directly related to participation in 
a program assisted under this part.


Sec. 2517.720  What is the length of a grant?

    A grant under this part is for a period of up to three years, 
subject to satisfactory performance and annual appropriations.


Sec. 2517.730  May an applicant submit multiple applications for the 
same project?

    No. The Corporation will reject an application if the application 
describes a project proposed to be conducted using assistance requested 
by the applicant and the project is already described in another 
application pending before the Corporation.

Subpart H--Evaluation and Monitoring Requirements


Sec. 2517.800  What are the evaluation and monitoring requirements for 
community-based programs?

    The monitoring and evaluation requirements for recipients of grants 
and subgrants under part 2516 of this chapter, relating to school-based 
service-learning programs, apply to recipients under this part.

PART 2518--SERVICE-LEARNING CLEARINGHOUSE

Sec.
2518.100  What is the purpose of a Service-Learning Clearinghouse?
2518.110  What are the functions of a Service-Learning 
Clearinghouse?

    Authority: 42 U.S.C. 12501 et seq.


Sec. 2518.100  What is the purpose of a Service-Learning Clearinghouse?

    The Corporation will provide financial assistance, from funds 
appropriated to carry out the activities listed under parts 2530 
through 2533 of this chapter, to public or private nonprofit 
organizations that have extensive experience with service-learning, 
including use of adult volunteers to foster service-learning, to 
establish a clearinghouse, which will carry out activities, either 
directly or by arrangement with another such organization, with respect 
to information about service-learning.


Sec. 2518.110  What are the functions of a Service-Learning 
Clearinghouse?

    An organization that receives assistance from funds appropriated to 
carry out the activities listed under parts 2530 through 2533 of this 
chapter may--
    (a) Assist entities carrying out State or local service-learning 
programs with needs assessments and planning;
    (b) Conduct research and evaluations concerning service-learning;
    (c)(1) Provide leadership development and training to State and 
local service-learning program administrators, supervisors, project 
sponsors, and participants; and
    (2) Provide training to persons who can provide the leadership 
development and training described in paragraph (c)(1) of this section;
    (d) Facilitate communication among entities carrying out service-
learning programs and participants in such programs;
    (e) Provide information, curriculum materials, and technical 
assistance relating to planning and operation of service-learning 
programs, to States and local entities eligible to receive financial 
assistance under this title;
    (f) Provide information regarding methods to make service-learning 
programs accessible to individuals with disabilities;
    (g)(1) Gather and disseminate information on successful service-
learning programs, components of such successful programs, innovative 
youth skills curricula related to service-learning, and service-
learning projects; and
    (2) Coordinate the activities of the Clearinghouse with appropriate 
entities to avoid duplication of effort;
    (h) Make recommendations to State and local entities on quality 
controls to improve the quality of service-learning programs;
    (i) Assist organizations in recruiting, screening, and placing 
service-learning coordinators; and
    (j) Carry out such other activities as the Chief Executive Officer 
determines to be appropriate.

PART 2519--HIGHER EDUCATION INNOVATIVE PROGRAMS FOR COMMUNITY 
SERVICE

Subpart A--Purpose and Eligibility to Apply

Sec.
2519.100  What is the purpose of the Higher Education programs?
2519.110  Who may apply for a grant?

Subpart B--Use of Grant Funds

2519.200  How may grant funds be used?

Subpart C--Participant Requirements and Benefits

2519.300  Who may participate in a Higher Education program?
2519.310  Is a participant eligible to receive an AmeriCorps 
educational award?
2519.320  May a program provide a stipend to a participant?

Subpart D--Application Contents

2519.400  What must an applicant include in an application for a 
grant?
2519.410  Are there any limitations on the use of funds?
2519.420  How many years of assistance may an eligible applicant 
seek?

Subpart E--Application Review

2519.500  How does the Corporation review the merits of an 
application?

Subpart F--Distribution of Funds

2519.600  How are funds for Higher Education programs distributed?

Subpart G--Funding Requirements

2519.700  Are matching funds required?
2519.710  Are there limits on the use of funds?
2519.720  What is the length of a grant?
2519.730  May an applicant submit multiple applications for the same 
project?

Subpart H--Monitoring and Evaluation Requirements

2519.800  What are the monitoring and evaluation requirements for 
Higher Education programs?

    Authority: 42 U.S.C. 12501 et seq.

Subpart A--Purpose and Eligibility to Apply


Sec. 2519.100  What is the purpose of the Higher Education programs?

    The purpose of the higher education innovative programs for 
community service is to expand participation in community service by 
supporting high-quality, sustainable community service programs carried 
out through institutions of higher education, acting as civic 
institutions helping to meet the educational, public safety, human, and 
environmental needs of neighboring communities.


Sec. 2519.110  Who may apply for a grant?

    The following entities may apply for a grant from the Corporation:
    (a) An institution of higher education.
    (b) A consortium of institutions of higher education.
    (c) A partnership comprised of one or more public or private 
nonprofit organizations and one or more institutions of higher 
education.

Subpart B--Use of Grant Funds


Sec. 2519.200  How may grant funds be used?

    Funds under a higher education program grant may be used for the 
following activities:
    (a) Enabling an institution of higher education or partnership to 
create or expand an organized community service program that--
    (1) Engenders a sense of social responsibility and commitment to 
the community in which the institution is located; and
    (2) Provides projects for participants, as described in 
Sec. 2519.300.
    (b) Supporting student-initiated and student-designed community 
service projects.
    (c) Strengthening the leadership and instructional capacity of 
teachers at the elementary, secondary, and postsecondary levels with 
respect to service-learning by--
    (1) Including service-learning as a key component of the preservice 
teacher education of the institution; and
    (2) Encouraging the faculty of the institution to use service-
learning methods throughout the curriculum.
    (d) Facilitating the integration of community service carried out 
under the grant into academic curricula, including integration of 
clinical programs into the curriculum for students in professional 
schools, so that students may obtain credit for their community service 
projects.
    (e) Supplementing the funds available to carry out work-study 
programs under part C of title IV of the Higher Education Act of 1965 
(42 U.S.C. 2751 et seq.) to support service-learning and community 
service.
    (f) Strengthening the service infrastructure within institutions of 
higher education in the United States that supports service-learning 
and community service.
    (g) Providing for the training of teachers, prospective teachers, 
related education personnel, and community leaders in the skills 
necessary to develop, supervise, and organize service-learning.

Subpart C--Participant Requirements and Benefits


Sec. 2519.300  Who may participate in a Higher Education program?

    Students, faculty, administration and staff of an institution, as 
well as residents of the community may participate. For the purpose of 
this part, the term ``student'' means an individual who is enrolled in 
an institution of higher education on a full-time or part-time basis.


Sec. 2519.310  Is a participant eligible to receive an AmeriCorps 
educational award?

    In general, no. However, certain positions in programs funded under 
this part may qualify as approved AmeriCorps positions. The Corporation 
will establish eligibility requirements for these positions as a part 
of the application package.


Sec. 2519.320  May a program provide a stipend to a participant?

    (a) A program may provide a stipend for service activities for a 
participant who is a student if the provision of stipends is reasonable 
in the context of a program's design and objectives.
    (1) A program may not provide a stipend to a student who is 
receiving academic credit for service activities unless the service 
activities require a substantial time commitment beyond that expected 
for the credit earned.
    (2) A participant who is earning money for service activities under 
the work-study program described in Sec. 2519.200(e) may not receive an 
additional stipend from funds under this part.
    (b) Consistent with the AmeriCorps program requirements in 
Sec. 2522.100 of this chapter, a program with participants serving in 
approved full-time AmeriCorps positions must ensure the provision of a 
living allowance and, if necessary, health care and child care to those 
participants.

Subpart D--Application Contents


Sec. 2519.400  What must an applicant include in an application for a 
grant?

    In order to apply to the Corporation for a grant, an applicant must 
submit the following:
    (a) A plan describing the goals and activities of the proposed 
program.
    (b) The specific program, budget, and other information and 
assurances specified by the Corporation in the grant application 
package.
    (c) Assurances that the applicant will--
    (1) Keep such records and provide such information to the 
Corporation with respect to the program as may be required for fiscal 
audits and program evaluation;
    (2) Comply with the nonduplication, nondisplacement, and grievance 
procedure requirements of part 2540 of this chapter;
    (3) Prior to the placement of a participant in the program, consult 
with the appropriate local labor organization, if any, representing 
employees in the area who are engaged in the same or similar work as 
the work proposed to be carried out by the program, to prevent the 
displacement and protect the rights of those employees; and
    (4) Comply with any other assurances that the Corporation deems 
necessary.


Sec. 2519.410  Are there any limitations on the use of funds?

    Not more that five percent of funds awarded under this part in any 
fiscal year may be used for administrative costs.


Sec. 2519.420  How many years of assistance may an eligible applicant 
seek?

    Grants may be for up to three years, subject to satisfactory 
performance and annual appropriations.

Subpart E--Application Review


Sec. 2519.500  How does the Corporation review the merits of an 
application?

    (a) The Corporation will evaluate the merits of an application 
submitted under this part on the basis of the quality, innovation, 
replicability, and sustainability of the proposed program and such 
other criteria as the Corporation establishes in an application 
package.
    (b) In addition, in reviewing an application submitted under this 
part, the Corporation will give a proposed program increased priority 
for each characteristic described in paragraphs (b)(1) through (7) of 
this section. Priority programs--
    (1) Demonstrate the commitment of the institution of higher 
education, other than by demonstrating the commitment of its students, 
to supporting the community service projects carried out under the 
program;
    (2) Specify how the institution will promote faculty, 
administration, and staff participation in the community service 
projects;
    (3) Specify the manner in which the institution will provide 
service to the community through organized programs, including, where 
appropriate, clinical programs for students in professional schools;
    (4) Describe any partnership that will participate in the community 
service projects, such as a partnership comprised of the institution, a 
student organization, a community-based agency, a local government 
agency, or a nonprofit entity that serves or involves school-age youth 
or older adults;
    (5) Demonstrate community involvement in the development of the 
proposal;
    (6) Specify that the institution will use funds under this part to 
strengthen the infrastructure in institutions of higher education; or
    (7) With respect to projects involving delivery of service, specify 
projects that involve leadership development of school-age youth.
    (c) In addition, the Corporation may designate additional 
priorities in an application package that will be used in selecting 
programs.

Subpart F--Distribution of Funds


Sec. 2519.600  How are funds for Higher Education programs distributed?

    All funds under this part are distributed by the Corporation 
through grants.

Subpart G--Funding Requirements


Sec. 2519.700  Are matching funds required?

    (a) Yes. The Corporation share of the cost of carrying out a 
program funded under this part may not exceed 50 percent.
    (b) In providing for the remaining share of the cost of carrying 
out a program, each recipient of assistance must provide for that share 
through a payment in cash or in kind, fairly evaluated, including 
facilities, equipment, or services, and may provide for that share 
through State sources, local sources, or Federal sources (other than 
funds made available under the national service laws).
    (c) However, the Corporation may waive the requirements of 
paragraph (b) of this section in whole or in part with respect to any 
program in any fiscal year if the Corporation determines that the 
waiver would be equitable due to lack of available financial resources 
at the local level.


Sec. 2519.710  Are there limits on the use of funds?

    Yes. The recipient of a grant under this part may spend no more 
than five percent of the grant funds for any fiscal year on 
administrative costs.


Sec. 2519.720  What is the length of a grant?

    A grant under this part is for a period of up to three years, 
subject to satisfactory performance and annual appropriations.


Sec. 2519.730  May an applicant submit multiple applications for the 
same project?

    No. The Corporation will reject an application if the application 
describes a project proposed to be conducted using assistance requested 
by the applicant and the project is already described in another 
application pending before the Corporation.

Subpart H--Monitoring and Evaluation Requirements


Sec. 2519.800  What are the monitoring and evaluation requirements for 
Higher Education programs?

    The monitoring and evaluation requirements for recipients of grants 
and subgrants under part 2516 of this chapter, relating to school-based 
service-learning programs, apply to recipients under this part.

PART 2520--PURPOSES AND DEFINITIONS: AMERICORPS PROGRAMS

Sec.
2520.10  What is the purpose of this part?
2520.20  What types of service activities are allowable for programs 
supported under parts 2521 through 2524 of this chapter?
2520.30  Are there any activities that are prohibited?
2520.40  Definitions.

    Authority: 42 U.S.C. 12501 et seq.


Sec. 2520.10  What is the purpose of this part?

    The purpose of this part is to describe the AmeriCorps grant 
program, including the manner in which eligible applicants may apply 
for funding. AmeriCorps programs must address educational, public 
safety, human, or environmental needs and provide AmeriCorps 
educational awards to eligible participants.


Sec. 2520.20  What types of service activities are allowable for 
programs supported under parts 2521 through 2524 of this chapter?

    (a) The service must either provide a direct benefit to the 
community where it is performed, or involve the supervision of 
participants or volunteers whose service provides a direct benefit to 
the community where it is performed. Moreover, the approved AmeriCorps 
activities must result in a specific identifiable service or 
improvement that otherwise would not be provided with existing funds or 
volunteers and that does not duplicate the routine functions of workers 
or displace paid employees. Programs must develop service opportunities 
that are appropriate to the skill levels of participants and that 
provide a demonstrable, identifiable benefit that is valued by the 
community.
    (b) In certain circumstances, some activities may not provide a 
direct benefit to the communities in which service is performed. Such 
activities may include, but are not limited to, clerical work and 
research. However, a participant may engage in such activities on his 
or her own time or if the performance of the activity is incidental to 
the participant's provision of service that does provide a direct 
benefit to the community in which the service is performed.


Sec. 2520.30  Are there any activities that are prohibited?

    Yes. Some activities are prohibited altogether. Prohibited 
activities may not be performed by participants in the course of their 
duties, at the request of program staff, or in a manner that would 
associate the activities with the AmeriCorps program or the 
Corporation. These activities include:
    (a) Any effort to influence legislation, as prohibited under 
section 501(c) of the Internal Revenue Code of 1986 (26 U.S.C. 501(c));
    (b) Organizing protests, petitions, boycotts, or strikes;
    (c) Assisting, promoting or deterring union organizing;
    (d) Engaging in partisan political activities, or other activities 
designed to influence the outcome of an election to any public office;
    (e) Engaging in religious instruction, conducting worship services, 
providing instruction as part of a program that includes mandatory 
religious education or worship, constructing or operating facilities 
devoted to religious instruction or worship, maintaining facilities 
primarily or inherently devoted to religious instruction or worship, or 
engaging in any form of religious proselytization;
    (f) Providing a direct benefit to--
    (1) A business organized for profit;
    (2) A labor union;
    (3) A partisan political organization;
    (4) A nonprofit organization that fails to comply with the 
restrictions contained in section 501(c) of the Internal Revenue Code 
of 1986; and
    (5) An organization engaged in the religious activities described 
in paragraph (e) of this section, unless Corporation assistance is not 
used to support those religious activities; and
    (g) Such other activities as the Corporation may prohibit.


Sec. 2520.40  Definitions.

    AmeriCorps Program. The term AmeriCorps program means any program, 
including VISTA and the National Civilian Community Corps, that 
provides AmeriCorps educational awards in exchange for substantial 
full-or part-time service.

PART 2521--ELIGIBLE AMERICORPS PROGRAM APPLICANTS AND TYPES OF 
GRANTS AVAILABLE FOR AWARD

Sec.
2521.10  Who may apply to receive an AmeriCorps grant?
2521.20  What types of AmeriCorps program grants are available for 
award?
2521.30  How will AmeriCorps program grants be awarded?

    Authority: 42 U.S.C. 12501 et seq.


Sec. 2521.10  Who may apply to receive an AmeriCorps grant?

    (a) States (including Territories), subdivisions of States, Indian 
tribes, public or private nonprofit organizations (including labor 
organizations), and institutions of higher education are eligible to 
apply for AmeriCorps grants. The Corporation may also enter into 
agreements with other Federal agencies as described in part 2523 of 
this chapter.
    (b) In addition, eligible applicants must meet the following 
specific requirements:
    (1) The fifty States, the District of Columbia and Puerto Rico must 
first receive Corporation authorization for the use of a State 
Commission or alternative administrative or transitional entity 
pursuant to 45 CFR part 2550; and
    (2) Only Federal agencies that are cabinet-level departments or 
independent agencies are eligible to receive an AmeriCorps grant; 
bureaus, divisions, and local and regional offices of such departments 
and agencies may only apply through the central department or agency.


Sec. 2521.20  What types of AmeriCorps program grants are available for 
award?

    The Corporation may make the following types of grants to eligible 
applicants. The requirements of this section will also apply to any 
State or other applicant receiving assistance under this part that 
proposes to conduct a grant program using the assistance to support 
other national or community service programs.
    (a) Planning grants.--(1) Purpose. The purpose of a planning grant 
is to assist an applicant in completing the planning necessary to 
implement a sound concept that has already been developed.
    (2) Eligibility. (i) States, Territories, and Federal agencies may 
apply to the Corporation for planning grants.
    (ii) Subdivisions of States, Indian Tribes, public or private 
nonprofit organizations (including labor organizations), and 
institutions of higher education may apply either to a State or 
directly to the Corporation for planning grants.
    (3) Duration. A planning grant will be negotiated for a term not to 
exceed one year.
    (b) Operational grants.--(1) Purpose. The purpose of an operational 
grant is to fund an organization that is ready to implement a fully 
developed plan for a new or expanded program. An operational grant may 
include a short planning period if necessary to implement a program.
    (2) Eligibility. (i) States, Territories and Federal agencies may 
apply to the Corporation for operational grants, including AmeriCorps 
educational awards.
    (ii) Subdivisions of States, Indian Tribes, public or private 
nonprofit organizations (including labor organizations), and 
institutions of higher education may apply either to a State or 
directly to the Corporation for operational grants including AmeriCorps 
educational awards. The Corporation may limit the categories of 
applicants eligible to apply directly to the Corporation for assistance 
under this subsection consistent with its National priorities.
    (3) Duration. An operational grant will be negotiated for a term 
not to exceed three years. Within a three-year term, renewal funding 
will be contingent upon periodic assessment of program quality, 
progress to date, and availability of Congressional appropriations.
    (c) AmeriCorps educational awards only.--(1) Purpose. The purpose 
of these awards is to provide AmeriCorps educational awards to programs 
that are not receiving or applying to the Corporation for program 
assistance but that meet the criteria for approved AmeriCorps 
positions, and desire to provide an AmeriCorps educational award to 
participants serving in approved positions.
    (2) Eligibility. (i) States and Territories may apply to the 
Corporation for AmeriCorps educational awards only.
    (ii) Subdivisions of States, Indian Tribes, public or private 
nonprofit organizations (including labor organizations), institutions 
of higher education, and Federal agencies may apply directly to the 
Corporation for AmeriCorps educational awards only.
    (d) Training, technical assistance and other special grants.--(1) 
Purpose. The purpose of these grants is to ensure broad access to 
AmeriCorps programs for all Americans, including those with 
disabilities; support disaster relief efforts; assist efforts to secure 
private support for programs through challenge grants; and ensure 
program quality by supporting technical assistance and training 
programs.
    (2) Eligibility. Eligibility varies and is detailed under 
``Technical Assistance and Other Special Grants.''
    (3) Duration. Grants will be negotiated for a renewable term of up 
to three years.


Sec. 2521.30  How will AmeriCorps program grants be awarded?

    In any fiscal year, the Corporation will award AmeriCorps program 
grants as follows:
    (a) Grants to State applicants. (1) One-third of the funds 
available under this part and a corresponding allotment of AmeriCorps 
educational awards, as specified by the Corporation, will be 
distributed according to a population-based formula to States 
(including Puerto Rico and the District of Columbia) that have 
applications approved by the Corporation.
    (2) At least one-third of funds available under this part and an 
appropriate number of AmeriCorps awards, as determined by the 
Corporation, will be awarded to States on a competitive basis. In order 
to receive these funds, a State must receive funds under paragraph 
(a)(1) of this section in the same fiscal year.
    (3) In making subgrants with funds awarded by formula or 
competition under paragraphs (a) (1) or (2) of this section, a State 
must:
    (i) Provide a description of the process used to select programs 
for funding including a certification that the State or other entity 
used a competitive process and criteria that were consistent with the 
selection criteria in Sec. 2522.410 of this chapter. In making such 
competitive selections, the State must ensure the equitable allocation 
within the State of assistance and approved AmeriCorps positions 
provided under this subtitle to the State taking into consideration 
such factors as the location of the programs applying to the State, 
population density, and economic distress;
    (ii) Provide a written assurance that not less than 60 percent of 
the assistance provided to the State will be used to make grants in 
support of AmeriCorps programs other than AmeriCorps programs supported 
by the State or a State agency. The Corporation may permit a State to 
deviate from this percentage if the State demonstrates that it did not 
receive a sufficient number of acceptable applications; and
    (iii) Ensure that a minimum of 50 percent of funds going to the 
State will be used for programs that operate in the areas of need and 
that place a priority on recruiting participants who are residents in 
high need areas, or on Federal or other public lands. The Corporation 
may waive this requirement for an individual State if at least 50 
percent of the total amount of assistance to all States will be used 
for such programs.
    (b) Grants to applicants other than States. (1) One percent of 
available funds will be distributed to the U.S. Territories\1\ that 
have applications approved by the Corporation according to a 
population-based formula.\2\
---------------------------------------------------------------------------

    \1\The United States Virgin Islands, Guam, American Samoa, the 
Commonwealth of the Northern Mariana Islands, and Palau (until such 
time as the Compact of Free Association with Palau is ratified).
    \2\The amount allotted as a grant to each such territory or 
possession is equal to the ratio of each such Territory's population 
to the population of all such territories multiplied by the amount 
of the one percent set-aside.
---------------------------------------------------------------------------

    (2) One percent of available funds will be reserved for 
distribution to Indian tribes on a competitive basis.
    (3) The Corporation will use any funds available under this part 
remaining after the award of the grants described in paragraphs (a) and 
(b) (1) and (2) of this section to make direct competitive grants to 
subdivisions of States, Indian tribes, public or private nonprofit 
organizations (including labor organizations), institutions of higher 
education, and Federal agencies. No more than one-third of these 
remaining funds may be awarded to Federal agencies.
    (c) Allocation of AmeriCorps educational awards only. The 
Corporation will determine on an annual basis the appropriate number of 
educational awards to provide eligible applicants who have not applied 
for program assistance.
    (d) Effect States' or Territories' failure to apply. If a State or 
U.S. Territory does not apply for or fails to give adequate notice of 
its intent to apply for a formula-based grant as announced by the 
Corporation and published in applications and the Notice of Funds 
Availability, the Corporation will use the amount of that State's 
allotment to make grants to eligible entities within that State or 
Territory to carry out AmeriCorps programs in that State or Territory. 
Any funds remaining from that State's allotment after making such 
grants will be reallocated to the States, Territories, and Indian 
tribes with approved AmeriCorps applications at the Corporation's 
discretion.
    (e) Effect of rejection of State application. If a State's 
application for a formula-based grant is ultimately rejected by the 
Corporation pursuant to Sec. 2522.320 of this chapter, the State's 
allotment will be available for redistribution by the Corporation to 
the States, Territories, and Indian Tribes with approved AmeriCorps 
applications as the Corporation deems appropriate.
    (f) The Corporation will make grants for training, technical 
assistance and other special programs described in part 2524 of this 
chapter at the Corporation's discretion.
    (g) Matching funds.--(1) Requirements. In addition the matching 
requirements for participant benefits specified in Sec. 2522.240(b)(5) 
of this chapter, the Federal share of the cost of carrying out an 
AmeriCorps program that receives the assistance under parts 2521 
through 2524 of this chapter, whether the assistance is provided 
directly or as a subgrant from the original recipient of the 
assistance, may not exceed 75 percent of such cost.
    (2) Calculation. In providing for the remaining share of the cost 
of carrying out an AmeriCorps program, the program--
    (i) Must provide for its share through a payment in cash or in 
kind, fairly evaluated, including facilities, equipment, or services; 
and
    (ii) May provide for its share through State sources, local 
sources, or other Federal sources (other than funds made available by 
the Corporation).
    (3) Waiver. The Corporation reserves the right to waive, in whole 
or in part, the requirements of paragraph (g)(1) of this section.
    (h) Administrative costs. (1) Grants or transfers of funds made 
under this part are subject to the five percent limitation on 
administrative costs specified in Sec. 2540.110 of this chapter.
    (2) Rules on use. States or other grantmaking entities that make 
subgrants to programs may retain no more than one-half of the five 
percent maximum administrative costs allowed for each Corporation 
grant.

PART 2522--AMERICORPS PARTICIPANTS, PROGRAMS, AND APPLICANTS

Subpart A--Minimum Requirements and Program Types

Sec.
2522.100  What are the minimum requirements that every AmeriCorps 
program, regardless of type, must meet?
2522.110  What types of AmeriCorps programs are eligible to compete 
for AmeriCorps grants?

Subpart B--Participant Eligibility, Requirements and Benefits

2522.200  What are the eligibility requirements for AmeriCorps 
participants?
2522.210  How are AmeriCorps participants recruited and selected?
2522.220  What are the required terms of service for AmeriCorps 
participants, and may they serve for more than one term?
2522.230  Under what circumstances may AmeriCorps participants be 
released from completing a term of service, and what are the 
consequences?
2522.240  What benefits do AmeriCorps participants serving in 
approved AmeriCorps positions receive?
2522.250  What other benefits do AmeriCorps participants serving in 
approved AmeriCorps positions receive?

Subpart C--Application Requirements

2522.300  What are the application requirements for AmeriCorps 
program grants?
2522.310  What are the application requirements for AmeriCorps 
educational awards only?
2522.320  May an applicant submit more than one application to the 
Corporation for the same program at the same time?

Subpart D--Selection of AmeriCorps Programs

2522.400  How will the basic selection criteria be applied?
2522.410  What are the basic selection criteria for AmeriCorps 
programs?
2522.420  Can a State's application for formula funds be rejected?

Subpart E--Monitoring and Evaluation Requirements

2522.500  What are the purposes of monitoring and evaluation?
2522.510  How will individual AmeriCorps programs be evaluated?
2522.520  What types of activities will programs be required to 
undertake in order to monitor and evaluate their effectiveness?
2522.530  What types of activities will States or grantmaking 
entities be required to undertake in order to monitor and evaluate 
the effectiveness of their subgrantees?
2522.540  Are programs or States/grantmaking entities required to 
perform independent evaluations?
2522.550  What types of activities will the Corporation be required 
to undertake in order to evaluate the overall success of the 
AmeriCorps programs?
2522.560  Will information on individual participants be kept 
confidential?

    Authority: 42 U.S.C. 12501 et seq.

Subpart A--Minimum Requirements and Program Types


Sec. 2522.100  What are the minimum requirements that every AmeriCorps 
program, regardless of type, must meet?

    Although a wide range of programs may be eligible to apply for and 
receive support from the Corporation, all AmeriCorps programs must meet 
certain minimum program requirements. These requirements apply 
regardless of whether a program is supported directly by the 
Corporation or through a subgrant. All AmeriCorps programs must:
    (a) Address educational, public safety, human, or environmental 
needs, and provide a direct and demonstrable benefit that is valued by 
the community in which the service is performed;
    (b) Perform projects that are designed, implemented, and evaluated 
with extensive and broad-based local input, including consultation with 
representatives from the community served, participants (or potential 
participants) in the program, community-based agencies with a 
demonstrated record of experience in providing services, and local 
labor organizations representing employees of project sponsors (if such 
entities exist in the area to be served by the program);
    (c) Obtain, in the case of a program that also proposes to serve as 
the sponsor, the written concurrence of any local labor organization 
representing employees of the project sponsors who are engaged in the 
same or substantially similar work as that proposed to be carried out 
by the AmeriCorps participant;
    (d) Establish and provide outcome objectives, including a strategy 
for achieving these objectives, upon which self-assessment and 
Corporation- assessment of progress can rest. Such assessment will be 
used to help determine the extent to which the program has had a 
positive impact:
    (1) On communities and persons served by the projects performed by 
the program;
    (2) On participants who take part in the projects; and
    (3) In such other areas as the program or Corporation may specify;
    (e) Strengthen communities and encourage mutual respect and 
cooperation among citizens of different races, ethnicities, 
socioeconomic backgrounds, educational levels, both men and women and 
individuals with disabilities;
    (f) Agree to seek actively to include participants from the 
communities in which projects are conducted, as well as individuals of 
different races and ethnicities, socioeconomic backgrounds, educational 
levels, both men and women as well as individuals with disabilities 
unless a program design requires emphasizing the recruitment of 
participants who share a specific characteristic or background. In no 
case may a program violate the nondiscrimination, nonduplication and 
nondisplacement rules governing participant selection described in part 
2540 of this chapter. In addition, programs are encouraged to 
establish, if consistent with the purposes of the program, an 
intergenerational component that combines students, out-of-school 
youths, and older adults as participants;
    (g)(1) Determine the projects in which participants will serve and 
establish minimum qualifications that individuals must meet to be 
eligible to participate in the program; these qualifications may vary 
based on the specific tasks to be performed by participants. Regardless 
of the educational level or background of participants sought, programs 
are encouraged to select individuals who posses leadership potential 
and a commitment to the goals of the AmeriCorps program. In any case, 
programs must select participants in a non-partisan, non-political, 
non-discriminatory manner, ensuring fair access to participation. In 
addition, programs are required to ensure that they do not displace any 
existing paid employees as provided in part 2540 of this chapter. To 
this end, programs may not select any prospective participant who is or 
was previously employed by a prospective project sponsors within six 
months of the time of enrollment in the program.
    (2) In addition, all programs are required to comply with any pre-
service orientation or training period requirements established by the 
Corporation to assist in the selection of motivated participants. 
Finally, all programs must agree to select a percentage (to be 
determined by the Corporation) of the participants for the program from 
among prospective participants recruited by the Corporation or State 
Commissions under part 2532 of this chapter. The Corporation may also 
specify a minimum percentage of participants to be selected from the 
national leadership pool established under Sec. 2522.120. The 
Corporation may vary either percentage for different types of 
AmeriCorps programs;
    (h) Provide reasonable accommodation, including auxiliary aids and 
services (as defined in section 3(1) of the Americans with Disabilities 
Act of 1990 (42 U.S.C. 12102(1))) based on the individualized need of a 
participant who is a qualified individual with a disability (as defined 
in section 101(8) of such Act (42 U.S.C. 12111(8)). For the purpose of 
complying with this provision, AmeriCorps programs may apply for 
additional financial assistance from the Corporation pursuant to 
Sec. 2524.50 of this chapter;
    (i) Use service experiences to help participants achieve the skills 
and education needed for productive, active citizenship, including the 
provision, if appropriate, of structured opportunities for participants 
to reflect on their service experiences. In addition, all programs must 
encourage every participant who is eligible to vote to register prior 
to completing a term of service;
    (j) Provide participants in the program with the training, skills, 
and knowledge necessary to perform the tasks required in their 
respective projects, including, if appropriate, specific training in a 
particular field and background information on the community, including 
why the service projects are needed;
    (k) Provide support services--
    (1) To participants who are completing a term of service and making 
the transition to other educational and career opportunities; and
    (2) To those participants who are school dropouts in order to 
assist them in earning the equivalent of a high school diploma;
    (l) Ensure that participants serving in approved AmeriCorps 
positions receive the living allowance and other benefits described in 
Secs. 2521.240 through 2521.250 of this chapter, including a living 
allowance and other benefits;
    (m) Describe the manner in which the AmeriCorps educational awards 
will be apportioned among individuals serving in the program. If a 
program proposes to provide such benefits to less than 100 percent of 
the participants in the program, the program must provide a compelling 
rationale for determining which participants will receive the benefits 
and which participants will not. AmeriCorps programs are strongly 
encouraged to offer alternative post-service benefits to participants 
who will not receive AmeriCorps educational awards;
    (n) Agree to identify the program, through the use of logos, common 
application materials, and other means, as part of a larger national 
effort (to be specified by the Corporation) and to participate in other 
activities such as common opening ceremonies (including the 
administration of a national oath or affirmation), service days, and 
conferences designed to promote a national identity for all AmeriCorps 
programs and participants, including those participants not receiving 
AmeriCorps educational awards. This provision does not preclude an 
AmeriCorps program from continuing to use its own name as the primary 
identification, or from using its name, logo, or other identifying 
materials on uniforms or other items;
    (o) Agree to begin operations at such times as the Corporation may 
reasonably require and to comply with any restrictions the Corporation 
may establish as to the length of time (subsequent to the starting 
date(s) of a program) that the program may take to fill an approved 
AmeriCorps position left vacant due to attrition;
    (p) Prior to receiving Corporation support, comply with all 
evaluation procedures specified by the Corporation, as explained in 
Secs. 2522.500 through 2522.560;
    (q) In the case of a program receiving funding directly from the 
Corporation, consult with and coordinate activities with the State 
Commission for the State in which the program operates; and
    (r) Address any other requirements as specified by the Corporation.


Sec. 2522.110  What types of AmeriCorps programs are eligible to 
compete for AmeriCorps grants?

    Types of AmeriCorps programs eligible to compete for AmeriCorps 
grants include the following:
    (a) Specialized skills programs. (1) A service program that is 
targeted to address specific educational, public safety, human, or 
environmental needs and that--
    (i) Recruits individuals with special skills or provides 
specialized pre-service training to enable participants to be placed 
individually or in teams in positions in which the participants can 
meet such needs; and
    (ii) If consistent with the purposes of the program, brings 
participants together for additional training and other activities 
designed to foster civic responsibility, increase the skills of 
participants, and improve the quality of the service provided.
    (2) A preprofessional training program in which students enrolled 
in an institution of higher education--
    (i) Receive training in specified fields, which may include classes 
containing service-learning;
    (ii) Perform service related to such training outside the classroom 
during the school term and during summer or other vacation periods; and
    (iii) Agree to provide service upon graduation to meet educational, 
public safety, human, or environmental needs related to such training.
    (3) A professional corps program that recruits and places qualified 
participants in positions--
    (i) As teachers, nurses and other health care providers, police 
officers, early childhood development staff, engineers, or other 
professionals providing service to meet educational, public safety, 
human, or environmental needs in communities with an inadequate number 
of such professionals;
    (ii) That may include a salary in excess of the maximum living 
allowance authorized in Sec. 2522.240(b)(2); and
    (iii) That are sponsored by public or private nonprofit employers 
who agree to pay 100 percent of the salaries and benefits (other than 
any AmeriCorps educational award from the National Service Trust) of 
the participants.
    (b) Specialized service programs. (1) A community service program 
designed to meet the needs of rural communities, using teams or 
individual placements to address the development needs of rural 
communities and to combat rural poverty, including health care, 
education, and job training.
    (2) A program that seeks to eliminate hunger in communities and 
rural areas through service in projects--
    (i) Involving food banks, food pantries, and nonprofit 
organizations that provide food during emergencies;
    (ii) Involving the gleaning of prepared and unprepared food that 
would otherwise be discarded as unusable so that the usable portion of 
such food may be donated to food banks, food pantries, and other 
nonprofit organizations;
    (iii) Seeking to address the long-term causes of hunger through 
education and the delivery of appropriate services; or
    (iv) Providing training in basic health, nutrition, and life skills 
necessary to alleviate hunger in communities and rural areas.
    (3) A program in which economically disadvantaged individuals who 
are between the ages of 16 and 24 years of age, inclusive, are provided 
with opportunities to perform service that, while enabling such 
individuals to obtain the education and employment skills necessary to 
achieve economic self-sufficiency, will help their communities meet--
    (i) The housing needs of low-income families and the homeless; and
    (ii) The need for community facilities in low-income areas.
    (c) Community-development programs. (1) A community corps program 
that meets educational, public safety, human, or environmental needs 
and promotes greater community unity through the use of organized teams 
of participants of varied social and economic backgrounds, skill 
levels, physical and developmental capabilities, ages, ethnic 
backgrounds, or genders.
    (2) A program that is administered by a combination of nonprofit 
organizations located in a low-income area, provides a broad range of 
services to residents of such an area, is governed by a board composed 
in significant part of low-income individuals, and is intended to 
provide opportunities for individuals or teams of individuals to engage 
in community projects in such an area that meet unaddressed community 
and individual needs, including projects that would--
    (i) Meet the needs of low-income children and youth aged 18 and 
younger, such as providing after-school ``safe-places,'' including 
schools, with opportunities for learning and recreation; or
    (ii) Be directed to other important unaddressed needs in such an 
area.
    (d) Programs that expand service program capacity. (1) A program 
that provides specialized training to individuals in service-learning 
and places the individuals after such training in positions, including 
positions as service-learning coordinators, to facilitate service-
learning in programs eligible for funding under Serve-America.
    (2) An AmeriCorps entrepreneur program that identifies, recruits, 
and trains gifted young adults of all backgrounds and assists them in 
designing solutions to community problems.
    (e) Campus-based programs. A campus-based program that is designed 
to provide substantial service in a community during the school term 
and during summer or other vacation periods through the use of--
    (1) Students who are attending an institution of higher education, 
including students participating in a work-study program assisted under 
part C of title IV of the Higher Education Act of 1965 (42 U.S.C. 2751 
et seq.);
    (2) Teams composed of such students; or
    (3) Teams composed of a combination of such students and community 
residents.
    (f) Intergenerational programs. An intergenerational program that 
combines students, out-of-school youths, and older adults as 
participants to provide needed community services, including an 
intergenerational component for other AmeriCorps programs described in 
this subsection.
    (g) Youth development programs. A full-time, year-round youth corps 
program or full-time summer youth corps program, such as a conservation 
corps or youth service corps (including youth corps programs under 
subtitle I, the Public Lands Corps established under the Public Lands 
Corps Act of 1993, the Urban Youth Corps established under section 106 
of the National and Community Service Trust Act of 1993, and other 
conservation corps or youth service corps that perform service on 
Federal or other public lands or on Indian lands or Hawaiian home 
lands), that:
    (1) Undertakes meaningful service projects with visible public 
benefits, including natural resource, urban renovation, or human 
services projects;
    (2) Includes as participants youths and young adults between the 
ages of 16 and 25, inclusive, including out-of-school youths and other 
disadvantaged youths (such as youths with limited basic skills, youths 
in foster care who are becoming too old for foster care, youths of 
limited English proficiency, homeless youths, and youths who are 
individuals with disabilities) who are between those ages; and
    (3) Provides those participants who are youths and young adults 
with--
    (i) Crew-based, highly structured, and adult-supervised work 
experience, life skills, education, career guidance and counseling, 
employment training, and support services; and
    (ii) The opportunity to develop citizenship values and skills 
through service to their community and the United States.
    (h) Individualized placement programs. An individualized placement 
program that includes regular group activities, such as leadership 
training and special service projects.
    (i) Other programs. Such other AmeriCorps programs addressing 
educational, public safety, human, or environmental needs as the 
Corporation may designate.

Subpart B--Participant Eligibility, Requirements and Benefits


Sec. 2522.200  What are the eligibility requirements for AmeriCorps 
participants?

    (a) An AmeriCorps participant must be 17 years of age or older at 
the commencement of service (unless the participant is in a youth corps 
described in Sec. 2522.110(a)(1)(ii), in which case the participant 
must be between the ages of 16 and 25, inclusive).
    (b) An AmeriCorps participant must either have a high school 
diploma or its equivalent (including an alternative diploma or 
certificate for those individuals with disabilities for whom such an 
alternative diploma or certificate is appropriate) or agree to obtain a 
high school diploma or its equivalent. However, if the program in which 
the individual seeks to become a participant conducts an independent 
evaluation demonstrating that an individual is incapable of obtaining a 
high school diploma or its equivalent, the Corporation may waive this 
requirement.
    (c) Unless an individual is enrolled in an institution of higher 
education on an ability to benefit basis and is considered eligible for 
funds under section 484 of the Higher Education Act of 1965 (20 U.S.C. 
1091), he or she may not have dropped out of elementary or secondary 
school in order to enroll as an AmeriCorps participant.
    (d) An AmeriCorps participant must be a citizen or national of the 
United States or lawful permanent resident alien of the United States.


Sec. 2522.210  How are AmeriCorps participants recruited and selected?

    (a) Local recruitment and selection. In general, AmeriCorps 
participants will be selected locally by an approved AmeriCorps 
program, and the selection criteria will vary widely among the 
different programs. Nevertheless, AmeriCorps programs must select their 
participants in a fair and non-discriminatory manner which complies 
with part 2542 of this chapter. In selecting participants, programs 
must also comply with the recruitment and selection requirements 
specified in this section.
    (b)(1) National and State recruitment and selection. The 
Corporation and each State Commission will establish a system to 
recruit individuals who desire to perform national service and to 
assist the placement of these individuals in approved AmeriCorps 
positions, which may include positions available under titles I and II 
of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.). 
The national and State recruitment and placement system will be 
designed and operated according to Corporation guidelines.
    (2) Dissemination of information. The Corporation and State 
Commissions will disseminate information regarding available approved 
AmeriCorps positions through cooperation with secondary schools, 
institutions of higher education, employment service offices, State 
vocational rehabilitation agencies within the meaning of the 
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) and other State 
agencies that primarily serve qualified individuals with disabilities, 
and other appropriate entities, particularly those organizations that 
provide outreach to disadvantaged youths and youths who are qualified 
individuals with disabilities.
    (c) National leadership pool. (1) Selection and training. From 
among individuals recruited under paragraph (b) of this section, the 
Corporation may select individuals with significant leadership 
potential, as determined by the Corporation, to receive special 
training to enhance their leadership ability. The leadership training 
will be provided by the Corporation directly or through a grant or 
contract as the Corporation determines.
    (2) Emphasis on certain individuals. In selecting individuals to 
receive leadership training under this provision, the Corporation will 
make special efforts to select individuals who have served--
    (i) In the Peace Corps;
    (ii) As VISTA volunteers;
    (iii) As participants in AmeriCorps programs receiving assistance 
under parts 2520 through 2524 of this chapter;
    (iv) As participants in National Service Demonstration programs 
that received assistance from the Commission on National and Community 
Service; or
    (v) As members of the Armed Forces of the United States and who 
were honorably discharged from such service.
    (3) Assignment. At the request of a program that receives 
assistance, the Corporation may assign an individual who receives 
leadership training under paragraph (c)(1) of this section to work with 
the program in a leadership position and carry out assignments not 
otherwise performed by regular participants. An individual assigned to 
a program will be considered to be a participant of the program.


Sec. 2522.220  What are the required terms of service for AmeriCorps 
participants, and may they serve for more than one term?

    (a) Term of service. In order to be eligible for the educational 
award described in Sec. 2522.240(a), participants serving in approved 
AmeriCorps positions must complete a term of service as defined in this 
section:
    (1) Full-time service. 1,700 hours of service during a period of 
not less than nine months and not more than one year.
    (2) Part-time service. 900 hours of service during a period of not 
more than two years, or, if the individual is enrolled in an 
institution of higher education while performing all or a portion of 
the service, not more than three years.
    (3) Reduced part-time term of service. The Corporation may reduce 
the number of hours required to be served in order to receive an 
educational award for certain part-time participants serving in 
approved AmeriCorps positions. In such cases, the educational award 
will be reduced in direct proportion to the reduction in required hours 
of service. These reductions may be made for summer programs, for 
categories of participants in certain approved AmeriCorps programs and 
on a case-by-case, individual basis as the Corporation deems prudent.
    (b) Restriction on multiple terms. While there is no limit on the 
number of terms an individual may serve in one or more AmeriCorps 
program, an AmeriCorps participant may only receive the benefits 
described in Secs. 2522.240 through 2522.250 for the first two 
successfully-completed terms of service, regardless of whether those 
terms were served on a full-, part-, or reduced part-time basis.
    (c) Eligibility for second term. A participant will only be 
eligible to serve a second or additional term of service if that 
individual has received satisfactory performance review(s) for any 
previous term(s) of service. Mere eligibility for a second or further 
term of service in no way guarantees a participant selection or 
placement.
    (d) Participant performance review. For the purposes of determining 
a participant's eligibility for a second or additional term of service 
and/or for an AmeriCorps educational award, each AmeriCorps program 
will evaluate the performance of a participant mid-term and upon 
completion of a participants term of service. The end-of-term 
performance evaluation will assess the following:
    (1) Whether the participant has completed the required number of 
hours described in paragraph (a) of this section;
    (2) Whether the participant has satisfactorily completed 
assignments, tasks or projects; and
    (3) Whether the participant has met any other performance criteria 
which had been clearly communicated both orally and in writing at the 
beginning of the term of service.
    (e) Grievance procedure. Any AmeriCorps participant wishing to 
contest a program's ruling of unsatisfactory performance may file a 
grievance according to the procedures set forth in part 2540 of this 
chapter. If that grievance procedure or subsequent binding arbitration 
procedure finds that the participant did in fact satisfactorily 
complete a term of service, then that individual will be eligible to 
receive an educational award and/or be eligible to serve a second term 
of service.


Sec. 2522.230  Under what circumstances may AmeriCorps participants be 
released from completing a term of service, and what are the 
consequences?

    In general, AmeriCorps programs have the authority to release 
participants serving in approved AmeriCorps positions from completing a 
term of service for two reasons: for compelling personal circumstances 
as demonstrated by the participant or for cause.
    (a) Release for compelling personal circumstances. In general, 
AmeriCorps programs have the authority to define the circumstances by 
which a participant may be released for compelling personal 
circumstances. Programs wishing to release participants serving in 
approved AmeriCorps positions may elect either--
    (1) To grant the release and provide a portion of the educational 
award equal to the portion of the term served; or
    (2) To permit the participant to temporarily suspend performance of 
the term of service for a period of up to two years (and such 
additional period as the Corporation may allow for extenuating 
circumstances) and, upon completion of such period, to allow the 
participant to return to the program with which he or she was serving 
or to a similar AmeriCorps program with the assistance of the 
Corporation, in order to complete the remainder of the term of service 
and obtain the entire AmeriCorps educational award.
    (b) Release for cause. AmeriCorps programs have the authority to 
define the circumstances by which a participant may be released for 
cause, except as specified in paragraph (b)(1) of this section. 
AmeriCorps programs must establish a written policy to be signed both 
by the participant and the program directors that clearly states the 
circumstances under which participants may be released for cause. 
Examples of conduct which programs may decide constitutes grounds for 
release for cause include chronic truancy, consistent failure to follow 
directions, and failure to adhere to program rules and guidelines. 
Under no circumstances may a participant's disability constitute 
grounds for release for cause.
    (1) Circumstances requiring release for cause. AmeriCorps programs 
are required to release for cause any participant who is convicted of a 
felony during a term of service. Any participant who is officially 
charged with a violent felony (e.g., rape or homicide), or sale or 
distribution of a controlled substance, or any participant convicted of 
the possession of a controlled substance, will have his or her service 
suspended without a living allowance and without receiving credit for 
hours missed. Any individual whose service was suspended because of 
being charged with a violent felony or sale or distribution of a 
controlled substance may resume service if he or she is found not 
guilty or if such charge is dismissed. Any individual whose service was 
suspended because of being convicted of a first offense of the 
possession of a controlled substance may resume service by 
demonstrating that he or she has enrolled in an approved drug 
rehabilitation program. A person convicted of a second or third 
possession of a controlled substance may resume service by 
demonstrating successful completion of a rehabilitation program.
    (2) Impact of release for cause. A participant released for cause 
may not receive any portion of the AmeriCorps educational award. In 
addition, any individual released for cause who wishes to reapply to 
the program from which he or she was released or to any other 
AmeriCorps program is required to disclose the release to that program. 
Failure to disclose to an AmeriCorps program any history of having been 
released for cause from another AmeriCorps program will render an 
individual ineligible to receive the AmeriCorps educational award, 
notwithstanding whether or not that individual successfully completes 
the term of service.
    (3) Grievance procedure. Any AmeriCorps participant wishing to 
contest a program decision to release that participant for cause may 
file a grievance according to the procedures set forth in part 2540 of 
this chapter. Pending the resolution of such grievance procedure, a 
program may suspend the service of that participant. If the initial 
grievance procedure or subsequent binding arbitration proceedings find 
that there was not cause for release, the AmeriCorps program must 
reinstate the participant; moreover, the program must credit the 
participant with any service hours missed and pay the participant the 
full amount of any living allowance the participant did not receive as 
a result of such suspension. The Corporation retains the discretion to 
determine whether Corporation funds may be used to pay the living 
allowance withheld during a participant's suspension.


Sec. 2522.240  What benefits do AmeriCorps participants serving in 
approved AmeriCorps positions receive?

    (a) AmeriCorps Educational Awards. An individual serving in an 
approved AmeriCorps position will receive an educational award from the 
National Service Trust upon successful completion of each of up to two 
terms of service as defined in Sec. 2522.220.
    (b) Living allowances--(1) Amount. Subject to the provisions of 
this part, any individual who participates on a full-time basis in an 
AmeriCorps program carried out using assistance provided under 
Sec. 2521.30 of this chapter will receive a living allowance in an 
amount equal to or greater than the average annual subsistence 
allowance provided to VISTA volunteers under section 105 of the 
Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955). This 
requirement will not apply to any program that was in existence prior 
to September 21, 1993 (the date of the enactment of the National and 
Community Service Trust Act of 1993) or to any program which receives 
only educational awards from the Corporation.
    (2) Maximum living allowance. With the exception of a professional 
corps described in Sec. 2521.110(b)(3) of this chapter, the AmeriCorps 
living allowances may not exceed 200 percent of the average annual 
subsistence allowance provided to VISTA volunteers under section 105 of 
the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4955). A 
professional corps AmeriCorps program may provide a stipend in excess 
of the maximum, subject to the following conditions:
    (i) Corporation assistance may not be used to pay for any portion 
of the allowance; and
    (ii) The program must be operated directly by the applicant, 
selected on a competitive basis by submitting an application directly 
to the Corporation, and may not be included in a State's application 
for the AmeriCorps program funds distributed by formula, or competition 
described in Sec. 2521.30 (a)(1) and (a)(2) of this chapter.
    (3) Living allowances for part-time participants. Programs may, but 
are not required to, provide living allowances to individuals 
participating on a part-time basis (or a reduced term of part-time 
service authorized under Sec. 2522.220(a)(3). Such living allowances 
should be prorated to the living allowance authorized in paragraph 
(b)(1) of this section and will comply with such restrictions therein.
    (4) Waiver or reduction of living allowance. The Corporation may, 
at its discretion, waive or reduce the living allowance requirements if 
a program can demonstrate to the satisfaction of the Corporation that 
such requirements are inconsistent with the objectives of the program, 
and that participants will be able to meet the necessary and reasonable 
costs of living (including food, housing, and transportation) in the 
area in which the program is located.
    (5) Limitation on Federal share. Excepting the provision concerning 
professional corps in paragraph (b)(2)(i) of this section, the Federal 
share, including Corporation and other Federal funds, may not exceed 
85% of the total amount provided to an AmeriCorps participant for a 
living allowance and may not exceed 85% of the minimum required living 
allowance enumerated in paragraph (b)(1) of this section.


Sec. 2522.250  What other benefits do AmeriCorps participants serving 
in approved AmeriCorps positions receive?

    (a) Child care. Grantees must provide child care through an 
eligible provider or a child care allowance in an amount determined by 
the Corporation to those full-time participants who need child care in 
order to participate.
    (1) Need. A participant is considered to need child care in order 
to participate in the program if he or she:
    (i) Is the parent or legal guardian of, or is acting in loco 
parentis for, a child under 13 who resides with the participant;
    (ii) Has a family income that does not exceed 75 percent of the 
State's median income for a family of the same size;
    (iii) At the time of acceptance into the program, is not currently 
receiving child care assistance from another source, including a parent 
or guardian, which would continue to be provided while the participant 
serves in the program; and
    (iv) Certifies that he or she needs child care in order to 
participate in the program.
    (2) Provider eligibility. Eligible child care providers are those 
who are eligible child care providers as defined in the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858n(5)).
     (3) Child care allowance. The amount of the child care allowance 
will be determined by the Corporation based on payment rates for the 
Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
9858c(4)(A)).
    (4) Federal share. The Corporation will pay 100 percent of the 
child care allowance, or, if the program provides child care through an 
eligible provider, the actual cost of the care or the amount of the 
allowance, whichever is less.
    (b) Health care. In general, grantees must provide a health care 
policy meeting the minimum or alternative benefits determined by the 
Corporation, to any full-time participant who is eligible for health 
care benefits.
    (1) Participant eligibility. A full-time participant is eligible 
for health care benefits if he or she is not otherwise covered by a 
health care policy providing minimum benefits established by the 
Corporation at the time he or she is accepted into a program. If, as a 
result of participation, or if, during the term of service, a 
participant demonstrates loss of coverage through no deliberate act of 
his or her own, such as parental or spousal job loss or 
disqualification from Medicaid, the participant will be eligible for 
health care benefits.
    (2) Minimum benefits. The Corporation will determine the minimum 
benefits that must be included in the policy provided to eligible 
participants.
    (3) Alternative benefits. A grantee may provide a health care 
policy that does not include the minimum benefits if the fair market 
value, as determined by the Corporation, of the proposed plan is equal 
to or greater than a plan that includes the minimum benefits.
    (4) Federal share. The Corporation will pay 85% of the cost of the 
most affordable policy for any policy that provides minimum benefits. 
The most affordable policy will be determined by the Corporation. The 
Corporation will not pay any share of the cost of a policy that does 
not include the minimum benefits.

Subpart C--Application Requirements


Sec. 2522.300  What are the application requirements for AmeriCorps 
program grants?

    All eligible applicants seeking AmeriCorps program grants must--
    (a) Provide a description of the specific program(s) being 
proposed, including the type of program and of how it meets the minimum 
program requirements described in Sec. 2522.100; and
    (b) Comply with any additional requirements as specified by the 
Corporation in the application package.


Sec. 2522.310  What are the application requirements for AmeriCorps 
educational awards only?

    (a) Eligible applicants may apply for AmeriCorps educational awards 
only for one of the following eligible service positions:
    (1) A position for a participant in an AmeriCorps program that:
    (i) Is carried out by an entity eligible to receive support under 
part 2521 of this chapter;
    (ii) Would be eligible to receive assistance under this rule, based 
on criteria established by the Corporation, but has not applied for 
such assistance;
    (2) A position facilitating service-learning in a program described 
in parts 2515 through 2519 of this chapter;
    (3) A position involving service as a crew leader in a youth corps 
program or a similar position supporting an AmeriCorps program; and
    (4) Such other AmeriCorps positions as the Corporation considers to 
be appropriate.
    (b) Because programs applying only for AmeriCorps educational 
awards must, by definition, meet the same basic requirements as other 
approved AmeriCorps programs, applicants must comply with the same 
application requirements specified in Sec. 2522.300.


Sec. 2522.320  May an applicant submit more than one application to the 
Corporation for the same program at the same time?

    No. The Corporation will reject a second or subsequent application 
submitted if a project proposed to be conducted using assistance 
requested by the applicant is included in another application already 
pending before the Corporation.

Subpart D--Selection of AmeriCorps Programs


Sec. 2522.400  How will the basic selection criteria be applied?

    From among the eligible programs that meet the minimum program 
requirements and that have submitted applications to the Corporation, 
the Corporation must select the best ones to receive funding. Although 
there is a wide range of factors that must be taken into account during 
the selection process, there are certain fundamental selection criteria 
that apply to all programs in each grant competition, regardless of 
whether they receive funding or educational awards directly or through 
subgrants. States and other subgranting applicants are required to use 
these criteria during the competitive selection of subgrantees. The 
Corporation may adjust the relative weight given to each criterion. 
(Additional and more specific criteria will be published in the 
applications.)


Sec. 2522.410  What are the basic selection criteria for AmeriCorps 
programs?

    The Corporation will consider elements relating to the program 
design and the capacity of the organization to carry it out; factors 
relating to need; and whether the program contributes to meeting the 
Corporation's overall goals relating to geographic, program and 
participant mix. These criteria are discussed in this section. 
Additional detail relating to these criteria may be published in any 
notice of availability of funding.
    (a) Program criteria. The Corporation will consider four factors 
relating to the program design: the quality of the program proposed to 
be carried out directly by the applicant or supported by a grant from 
the applicant; the innovative aspects of the AmeriCorps program; the 
feasibility of replicating the program; and the sustainability of the 
program, based on evidence such as the existence of strong and broad-
based community support for the program and of multiple funding sources 
or private funding. The Corporation will also consider an 
organization's capacity to carry out the program based on--
    (1) The quality of the leadership of the AmeriCorps program;
    (2) The past performance of the organization or program; and
    (3) The extent to which the program builds on existing programs.
    (b) Need criteria. In selecting programs, the Corporation will take 
into consideration the extent to which projects address State-
identified issue priorities (if the program will be funded out of 
formula funds) or national priorities (if the program will be funded 
out of competitive funds), and whether projects would be conducted in 
areas of need.
    (1) Issue priorities. In order to concentrate national efforts on 
meeting certain educational, public safety, human, or environmental 
needs, and to achieve the other purposes of this Act, the Corporation 
will establish, and after review of the strategic plan approved by the 
Board, periodically alter priorities regarding the AmeriCorps programs 
that will receive assistance (funding or approved AmeriCorps positions) 
and the purposes for which such assistance may be used. These 
priorities will be applied to assistance provided on a competitive 
basis as described in Sec. 2521.30 of this chapter, and to any 
assistance provided through a subgrant of such funds.
    (i) States must establish, and through the national service plan 
process described in part 2513 of this chapter, periodically alter 
priorities regarding the programs that will receive assistance (funding 
or approved AmeriCorps positions) provided on a formula basis as 
described in Sec. 2521.30(a)(1) of this chapter. The State priorities 
will be subject to Corporation review as part of the application 
process under part 2521 of this chapter.
    (ii) The Corporation will provide advance notice to potential 
applicants of any AmeriCorps priorities to be in effect for a fiscal 
year. The notice will describe any alternation made in the priorities 
since the previous notice. If a program receives multi-year funding 
based on conformance to national or state priorities and such 
priorities are altered after the first year of funding, the program 
will not be adversely affected due to the change in priorities until 
the term of the grant is ended.
    (2) Areas of need. Areas of need are:
    (i) Communities designated by the Federal government or states as 
empowerment zones or redevelopment areas, targeted for special economic 
incentives, or otherwise identifiable as having high concentrations of 
low-income people;
    (ii) Areas that are environmentally distressed;
    (iii) Areas adversely affected by Federal actions related to the 
management of Federal lands that result in significant regional job 
losses and economic dislocation;
    (iv) Areas adversely affected by reductions in defense spending or 
the closure or realignment of military installations; and
    (v) Areas that have an unemployment rate greater than the national 
average unemployment rate for the most recent 12 months for which 
satisfactory data are available.
    (c) Program and participant mix criteria. The Corporation will 
select programs that will help achieve participant, program type, and 
geographic diversity across programs.
    (d) Additional considerations. The Corporation may publish in any 
notice of availability of funding additional factors that it may take 
into consideration in selecting programs, including any additional 
priorities applicable to any or all funds.


Sec. 2522.420  Can a State's application for formula funds be rejected?

    Yes. Formula funds are not an entitlement.
    (a) Notification. If the Corporation rejects an application 
submitted by a State Commission under part 2550 of this chapter for 
funds described in Sec. 2521.30 of this chapter, the Corporation will 
promptly notify the State Commission of the reasons for the rejection 
of the application.
    (b) Revision. The Corporation will provide a State Commission 
notified under paragraph (a) of this section with a reasonable 
opportunity to revise and resubmit the application. At the request of 
the State Commission, the Corporation will provide technical assistance 
to the State Commission as part of the resubmission process. The 
Corporation will promptly reconsider an application resubmitted under 
this paragraph.
    (c) Redistribution. The amount of any State's allotment under 
Sec. 2521.30(a) of this chapter for a fiscal year that the Corporation 
determines will not be provided for that fiscal year will be available 
for redistribution by the Corporation to the States, Territories and 
Indian Tribes with approved AmeriCorps applications as the Corporation 
deems appropriate.

Subpart E--Monitoring and Evaluation Requirements


Sec. 2522.500  What are the purposes of monitoring and evaluation?

    Monitoring is a continuous effort to assess performance and improve 
quality. Evaluation is an assessment of program effectiveness and 
outcomes at the end of given period of time. Every monitoring and 
evaluation requirement serves one or more of the following purposes:
    (a) Ensuring quality programs;
    (b) Examining the benefits of national and community service; or
    (c) Fulfilling legislative requirements.


Sec. 2522.510   How will individual AmeriCorps programs be evaluated?

    The Corporation will evaluate programs based on the following:
    (a) The extent to which the program meets the objectives 
established and agreed to by the grantee and the Corporation before the 
grant award;
    (b) The extent to which the program is cost-effective; and
    (c) The effectiveness of the program in meeting the following 
legislative objectives:
    (1) Providing direct and demonstrable services and projects that 
benefit the community by addressing educational, public safety, human, 
or environmental needs;
    (2) Recruiting and enrolling diverse participants consistent with 
the requirements of part 2540 of this chapter, based on economic 
background, race, ethnicity, age, gender, marital status, education 
levels, and disability;
    (3) Promoting the educational achievement of each participant based 
on earning a high school diploma or its equivalent and future 
enrollment in and completion of increasingly higher levels of 
education;
    (4) Encouraging each participant to engage in public and community 
service after completion of the program based on career choices and 
participation in other service programs;
    (5) Promoting an ethic of active and productive citizenship among 
participants;
    (6) Supplying additional volunteer assistance to community agencies 
without providing more volunteers than can be effectively utilized;
    (7) Providing services and activities that could not otherwise be 
performed by employed workers and that will not supplant the hiring of, 
or result in the displacement of, employed workers; and
    (8) Other criteria determined and published by the Corporation.


Sec. 2522.520  What types of activities will programs be required to 
undertake in order to monitor and evaluate their effectiveness?

    Programs will be required to:
    (a) Monitor management effectiveness, the quality of services 
provided, and the satisfaction of both participants and persons served. 
Monitoring should be a continuous process, allowing for frequent 
feedback and quick correction of weaknesses. Monitoring approaches such 
as community advisory councils, participant advisory councils, peer 
reviews, quality control inspections, and customer and participant 
surveys are encouraged;
    (b) Track progress toward objectives. Objectives will be 
established by programs and approved by the Corporation. Programs must 
submit to the Corporation (or State or grantmaking entity as 
applicable) periodic performance reports and, as part of an annual 
report, an annual performance report; and
    (c) Collect and submit to the Corporation (through the State or 
grantmaking entity as applicable) the following data:
    (1) Information on participants including the total number of 
participants in the program, and the number of participants by race, 
ethnicity, age, gender, economic background, education level, ethnic 
group, disability classification, geographic region, and marital 
status;
    (2) Information on services conducted in areas classified as 
empowerment zones (or redevelopment areas), in areas that are 
environmentally distressed, in areas that are adversely affected by 
Federal actions related to the management of Federal lands, in areas 
that are adversely affected by reductions in defense spending, or in 
areas that have an unemployment rate greater than the national average 
unemployment rate; and
    (3) Other information as required by the Corporation.


Sec. 2522.530  What types of activities will States or grantmaking 
entities be required to undertake in order to monitor and evaluate the 
effectiveness of their subgrantees?

    In cases where a State or grantmaking entity is the direct grantee 
they will be required to:
    (a) Ensure that subgrantees comply with the requirements of this 
subpart;
    (b) Track program performance in terms of progress towards pre-
established objectives and ensure that corrective action is taken when 
necessary. Submit periodic performance reports and, as part of an 
annual report, an annual performance report to the Corporation for each 
subgrantee; and
    (c) Collect from programs and submit to the Corporation the 
descriptive information required in this subpart.


Sec. 2522.540  Are programs or State/grantmaking entities required to 
perform independent evaluations?

    No. An independent evaluation is not required but is permissible.


Sec. 2522.550  What types of activities will the Corporation be 
required to undertake in order to evaluate the overall success of the 
AmeriCorps programs?

    (a) The Corporation will conduct independent evaluations of 
programs, including in-depth studies of selected programs. These 
evaluations will consider the opinions of participants and members of 
the community where services are delivered. Where appropriate these 
studies will compare participants with individuals who have not 
participated in service programs. These evaluations will:
    (1) Study the extent to which the national service impacts involved 
communities;
    (2) Study the extent to which national service increases positive 
attitudes among participants regarding the responsibilities of citizens 
and their role in solving community problems;
    (3) Determine the costs and effectiveness of different program 
models in meeting program objectives including full- and part-time 
programs, programs involving different types of national service, 
programs using different recruitment methods, programs offering 
alternative non-federally funded vouchers or post-service benefits, and 
programs utilizing individual placements and teams;
    (4) Determine the impact of programs in each State on the ability 
of VISTA and National Senior Volunteer Corps, each regular and reserve 
component of the Armed Forces, and the Peace Corps to recruit 
individuals residing in that State; and
    (5) Determine the levels of living allowances paid in all 
AmeriCorps programs and American Conservation and Youth Corps, 
individually, by State, and by region and determine the effects that 
such living allowances have had on the ability of individuals to 
participate in such programs.
    (b) The Corporation will also determine by June 30, 1995:
    (1) Whether the State and national priorities designed to meet 
educational, public safety, human, or environmental needs are being 
addressed;
    (2) Whether the outcomes of both stipended and nonstipended service 
programs are defined and measured appropriately;
    (3) Whether stipended service programs, and service programs 
providing educational benefits in return for service, should focus on 
economically disadvantaged individuals or at risk youth, or whether 
such programs should include a mix of individuals, including 
individuals from middle and upper income families;
    (4) The role and importance of stipends and educational benefits in 
achieving desired outcomes in the service programs;
    (5) The income distribution of AmeriCorps participants, to 
determine the level of participation of economically disadvantaged 
individuals. The total income of participants will be determined as of 
the date the participant was first selected to participate in a program 
and will include family total income unless the evaluating entity 
determines that the participant was independent at the time of 
selection. Definitions for ``independent'' and ``total income'' are 
those used in section 480(a) of the Higher Education Act of 1965;
    (6) The amount of assistance provided under the AmeriCorps programs 
that has been expended for projects conducted in areas classified as 
empowerment zones (or redevelopment areas), in areas that are 
environmentally distresses or adversely affected by Federal actions 
related to the management of Federal lands, in areas that are adversely 
affected by reductions in defense spending, or in areas that have an 
unemployment rate greater than the national average unemployment rate 
for the most recent 12 months for which satisfactory data are 
available; and
    (7) The implications of the results of these studies as appropriate 
for authorized funding levels.


Sec. 2522.560  Will information on individual participants be kept 
confidential?

    (a) Yes. The Corporation will maintain the confidentiality of 
information regarding individual participants that is acquired for the 
purpose of the evaluations described in this Sec. 2522.550. The 
Corporation will disclose individual participant information only with 
the prior written consent of the participant. However, the Corporation 
may disclose aggregate participant information.
    (b) Grantees and subgrantees that receive assistance under this 
chapter must comply with the provisions of paragraph (a) of this 
section.

PART 2523--AGREEMENTS WITH OTHER FEDERAL AGENCIES FOR THE PROVISION 
OF AMERICORPS PROGRAM ASSISTANCE

Sec.
2523.10  Are Federal agencies eligible to apply for AmeriCorps 
program grants?
2523.20  Which Federal agencies may apply for such grants?
2523.30  Must Federal agencies meet the requirements imposed on 
other grantees?
2523.40  For what purposes should Federal agencies use AmeriCorps 
programs grants?
2523.50  What types of grants are Federal agencies eligible to 
receive?
2523.60  May Federal agencies enter into partnerships or participate 
in consortia?
2523.70  Will the Corporation give special consideration to Federal 
agency applications that address certain needs?
2523.80  Are there restrictions on the use of Corporation funds?
2523.90  Is there a matching requirement for Federal agencies?
2523.100  Are participants in programs operated by Federal agencies 
Federal employees?
2523.110  Can Federal agencies submit multiple applications?
2523.120  Must Federal agencies consult with State Commissions?

    Authority: 42 U.S.C. 12501 et seq.


Sec. 2523.10  Are Federal agencies eligible to apply for AmeriCorps 
program grants?

    Yes. Federal agencies may apply for and receive AmeriCorps grants 
under parts 2521 and 2522 of this chapter, and they are eligible to 
receive up to one-third of the funds available for competitive 
distribution under Sec. 2521.30(b)(3) of this chapter. The Corporation 
may also enter into a contract or cooperative agreement with another 
Federal agency to support an AmeriCorps program carried out by the 
agency. The Corporation may transfer funds available to it to other 
Federal agencies.


Sec. 2523.20  Which Federal agencies may apply for such grants?

    The Corporation will consider applications only from Cabinet level 
departments and independent agencies. Bureaus, divisions, and local and 
regional offices of such departments and agencies can only apply 
through the central department or agency; however, it is possible for 
the department or agency to submit an application proposing more than 
one program.


Sec. 2523.30  Must Federal agencies meet the requirements imposed on 
other grantees?

    Yes. Federal agency programs must meet the same requirements and 
serve the same purposes as all other applicants seeking support under 
part 2522 of this chapter.


Sec. 2523.40  For what purposes should Federal agencies use AmeriCorps 
program grants?

    AmeriCorps grants should enable Federal agencies to establish 
programs that leverage agencies' existing resources and grant-making 
powers toward the goal of integrating service more fully into agencies' 
programs and activities. Agencies should plan to ultimately support new 
service initiatives out of their own budgets and appropriations.


Sec. 2523.50  What types of grants are Federal agencies eligible to 
receive?

    Federal agencies may apply for planning and operating grants 
subject to the terms established by the Corporation in Sec. 2521.20 of 
this chapter, except that operating grants will be awarded with the 
expectation that the Federal agencies will support the proposed 
programs from their own budgets once the Corporation grant(s) expire.


Sec. 2523.60  May Federal agencies enter into partnerships or 
participate in consortia?

    Yes. Such partnerships or consortia may consist of other Federal 
agencies, Indian Tribes, subdivisions of States, community based 
organizations, institutions of higher education, or other non-profit 
organizations.


Sec. 2523.70  Will the Corporation give special consideration to 
Federal agency applications that address certain needs?

    Yes. The Corporation will give special consideration to those 
applications that address the national priorities established by the 
Corporation. The Corporation may also give special consideration to 
those applications that demonstrate the agency's intent to leverage its 
own funds through an approved partnership or consortium, by raising 
other funds from Federal or non-Federal sources, by giving grantees 
incentives to build service opportunities into their programs, by 
committing appropriate in-kind resources, or by other means.


Sec. 2523.80  Are there restrictions on the use of Corporation funds?

    Yes. The supplantation and nondisplacement provisions specified in 
part 2540 of this chapter apply to the Federal AmeriCorps programs 
supported with such assistance.


Sec. 2523.90  Is there a matching requirement for Federal agencies?

    No. In general, a Federal agency is not required to match funds in 
programs that receive support under this chapter.


Sec. 2523.100  Are participants in programs operated by Federal 
agencies Federal employees?

    No. Participants in these programs follow the same employee status 
as participants in other approved AmeriCorps programs, and are not 
considered Federal employees, except for the purposes of the Family and 
Medical Leave Act as specified in Sec. 2540.220(b) of this chapter.


Sec. 2523.110  Can Federal agencies submit multiple applications?

    No. The Corporation will only consider one application per agency. 
The application may propose more than one program, however, and the 
Corporation may choose to fund any or all of those programs.


Sec. 2523.120  Must Federal agencies consult with State Commissions?

    Yes. Federal agencies must provide a description of the manner in 
which the proposed AmeriCorps program(s) is coordinated with the 
application of the State in which the projects will be conducted. 
Agencies must also describe proposed efforts to coordinate AmeriCorps 
activities with State Commissions and other funded AmeriCorps programs 
within the State in order to build upon existing programs and not 
duplicate efforts.

PART 2524--AMERICORPS TECHNICAL ASSISTANCE AND OTHER SPECIAL GRANTS

Sec.
2524.10  For what purposes will technical assistance and training 
funds be made available?
2524.20  What are the guidelines for program development assistance 
and training grants?
2524.30  What are the guidelines for challenge grants?
2524.40  What are the guidelines for grants to involve persons with 
disabilities?
2524.50  What are the guidelines for assistance with disaster 
relief?

    Authority: 42 U.S.C. 12501 et seq.


Sec. 2524.10  For what purposes will technical assistance and training 
funds be made available?

    (a) To the extent appropriate and necessary, the Corporation may 
make technical assistance available to States, Indian tribes, labor 
organizations, organizations operated by young adults, organizations 
serving economically disadvantaged individuals, and other entities 
eligible to apply for assistance under parts 2521 and 2522 of this 
chapter that desire--
    (1) To develop AmeriCorps programs; or
    (2) To apply for assistance under parts 2521 and 2522 of this 
chapter or under a grant program conducted using such assistance.
    (b) In addition, the Corporation may provide program development 
assistance and conduct, directly or by grant or contract, appropriate 
training programs regarding AmeriCorps in order to--
    (1) Improve the ability of AmeriCorps programs assisted under parts 
2521 and 2522 of this chapter to meet educational, public safety, 
human, or environmental needs in communities--
    (i) Where services are needed most; and
    (ii) Where programs do not exist, or are too limited to meet 
community needs, as of the date on which the Corporation makes the 
grant or enters into the contract;
    (2) Promote leadership development in such programs;
    (3) Improve the instructional and programmatic quality of such 
programs to build an ethic of civic responsibility;
    (4) Develop the management and budgetary skills of program 
operators;
    (5) Provide for or improve the training provided to the 
participants in such programs;
    (6) Encourage AmeriCorps programs to adhere to risk management 
procedures, including the training of participants in appropriate risk 
management practices; and
    (7) Assist in such other manner as the Corporation may specify.


Sec. 2524.20  What are the guidelines for program development 
assistance and training grants?

    (a) Eligibility. States, Federal agencies, Indian tribes, public or 
private nonprofit agencies, institutions of higher education, for-
profit businesses, and individuals may apply for assistance under this 
section.
    (b) Duration. A grant made under this section will be for a term of 
up to one year and is renewable.
    (c) Application requirements. Eligible applicants must comply with 
the requirements specified in the Corporation's application package.


Sec. 2524.30  What are the guidelines for challenge grants?

    (a) Purpose. The purpose of these grants is to challenge high 
quality AmeriCorps programs to diversify their funding base by matching 
private dollars they have raised with Corporation support. The 
Corporation will provide not more than $1 for each $1 raised in cash by 
the program from private sources in excess of amounts otherwise 
required to be provided by the program to satisfy the matching funds 
requirements specified under Sec. 2521.30(g) of this chapter.
    (b) Eligibility. Only Corporation grantees that meet all of the 
following eligibility criteria may apply for challenge grants:
    (1) They are funded under parts 2520 through 2523 of this chapter.
    (2) They are high quality programs with demonstrated experience in 
establishing and implementing projects that provide benefits to 
participants and communities.
    (3) They have operated with Corporation funds for at least six 
months.
    (4) They have secured the matching funds required described in 
Secs. 2521.30(g), 2522.240(b)(5), 2522.250(a)(4), and 2522.250(b)(4) of 
this chapter.
    (c) Allowable program activities. Challenge grants are intended to 
provide special opportunities for national and community service 
programs to enroll additional participants or undertake other 
activities specified by the Corporation.
    (d) Application procedures. Eligible applicants must comply with 
the requirements specified in the Corporation's application materials.
    (e) Limitation on use of the funds. Each year the Corporation will 
establish a maximum award that a program may receive as a challenge 
grant.
    (f) Allocation of funds. The Corporation will determine annually 
how much funding will be allocated to challenge grants from funds 
appropriated for AmeriCorps programs.


Sec. 2524.40  What are the guidelines for grants to involve persons 
with disabilities?

    (a) Purpose. There are two general purposes for these grants:
    (1) To assist AmeriCorps grantees in placing applicants who require 
reasonable accommodation (as defined in section 101(9) of the Americans 
with Disabilities Act of 1990, 42 U.S.C. 12111(9)) or auxiliary aids 
and services (as defined in section 3(1) of such Act, 42 U.S.C. 
12102(1)) in an AmeriCorps program; and
    (2) To conduct outreach activities to individuals with disabilities 
to recruit them for participation in AmeriCorps programs.
    (b) Eligibility--(1) Placement, accommodation, and auxiliary 
services. Eligibility for assistance under this part is limited to 
AmeriCorps programs that:
    (i) Receive competitive funding from the Corporation under 
Secs. 2521.30(a)(2) or 2521.30(b)(3) of this chapter; and
    (ii) Demonstrate that the program has received a substantial number 
of applications for placement from persons who are individuals with a 
disability and who require a reasonable accommodation (as defined in 
section 101(9) of the Americans with Disabilities Act of 1990, or 
auxiliary aids and services (as defined in section 3(1) of such Act) in 
order to perform national service; and
    (iii) Demonstrate that additional funding would assist the program 
in placing a substantial number of such individuals with a disability 
as participants in projects carried out through the program.
    (2) Outreach. Corporation grantees and any public or private 
nonprofit organization may apply for funds to conduct outreach to 
individuals with disabilities to recruit them for participation in 
AmeriCorps programs. Outreach funds can also be used by any 
organization to assist AmeriCorps programs in adapting their programs 
to encourage greater participation by individuals with disabilities.
    (c) Application procedures. Eligible applicants must comply with 
the requirements specified in the Corporation's application materials.


Sec. 2524.50  What are the guidelines for assistance with disaster 
relief?

    (a) Purpose. Disaster relief funds are intended to provide 
emergency assistance not otherwise available to enable national and 
community service programs to respond quickly and effectively to a 
Presidentially-declared disaster.
    (b) Eligibility. Any AmeriCorps program (including youth corps, the 
National Civilian Community Corps, VISTA, and other programs authorized 
under the Domestic Volunteer Services Act) or grant making entity (such 
as a State or Federal agency) that is supported by the Corporation may 
apply for disaster relief grants.
    (c) Application process. Eligible applicants must comply with the 
requirements specified in the Corporation's application materials.
    (d) Waivers. In appropriate cases, due to the limited nature of 
disaster activities, the Corporation may waive specific program 
requirements such as matching requirements and the provision of 
AmeriCorps educational awards for participants supported with disaster 
relief funds.

PART 2530--PURPOSES, DEFINITIONS, AND AVAILABILITY OF GRANTS

Sec.
2530.10  What are the purposes of the Investment for Quality and 
Innovation activities?
2530.20  Funding priorities.

    Authority: 42 U.S.C. 12501 et seq.


2530.10  What are the purposes of the Investment for Quality and 
Innovation activities?

    Investment for Quality and Innovation activities are designed to 
develop service infrastructure and improve the overall quality of 
national and community service efforts. Specifically, the Corporation 
will support innovative and model programs that otherwise may not be 
eligible for funding; and support other activities, such as training 
and technical assistance, summer programs, leadership training, 
research, promotion and recruitment, and special fellowships and 
awards. The Corporation may conduct these activities either directly or 
through grants to or contracts with qualified organizations.


Sec. 2530.20  Funding priorities.

    The Corporation may choose to set priorities (and to periodically 
revise such priorities) that limit the types of innovative and model 
programs and support activities it will undertake or fund in a given 
fiscal year. In setting these priorities, the Corporation will seek to 
concentrate funds on those activities that will be most effective and 
efficient in fulfilling the purposes of this part.

PART 2531--INNOVATIVE AND SPECIAL DEMONSTRATION PROGRAMS

Sec.
2531.10  Military Installation Conversion Demonstration programs.
2531.20  Special Demonstration Project for the Yukon-Kuskokwim Delta 
of Alaska.
2531.30  Other innovative and model programs.

    Authority: 42 U.S.C. 12501 et seq.


Sec. 2531.10  Military Installation Conversion Demonstration programs.

    (a) Purposes. The purposes of this section are to:
    (1) Provide meaningful service opportunities for economically 
disadvantaged youth;
    (2) Fully utilize military installations affected by closures or 
realignments;
    (3) Encourage communities affected by such closures or realignments 
to convert the installations to community use; and
    (4) Foster a sense of community pride in the youth in the 
community.
    (b) Definitions. As used in this section:
    (1) Affected military installation. The term affected military 
installation means a military installation described in section 
325(e)(1) of the Job Training Partnership Act (29 U.S.C. 1662d(e)(1)).
    (2) Community. The term community includes a county.
    (3) Convert to community use. The term convert to community use, 
used with respect to an affected military installation, includes--
    (i) Conversion of the installation or a part of the installation 
to--
    (A) A park;
    (B) A community center;
    (C) A recreational facility; or
    (D) A facility for a Head Start program under the Head Start Act 
(42 U.S.C. 9831 et seq.); and
    (ii) Carrying out, at the installation, a construction or economic 
development project that is of substantial benefit, as determined by 
the Corporation, to--
    (A) The community in which the installation is located; or
    (B) A community located within such distance of the installation as 
the Chief Executive Officer may determine by regulation to be 
appropriate.
    (4) Demonstration program. The term demonstration program means a 
program described in paragraph (c) of this section.
    (c) Demonstration programs--(1) Grants.--The Corporation may make 
grants to communities and community-based agencies to pay for the 
Federal share of establishing and carrying out military installation 
conversion demonstration programs, to assist in converting to community 
use affected military installations located--
    (i) Within the community; or
    (ii) Within such distance from the community as the Chief Executive 
Officer may by regulation determine to be appropriate.
    (2) Duration. In carrying out such a demonstration program, the 
community or community-based agency may carry out--
    (i) A program of not less than 6 months in duration; or
    (ii) A full-time summer program.
    (d) Use of Funds--(1) Stipend.--A community or community-based 
agency that receives a grant under paragraph (c) of this section to 
establish and carry out a project through a demonstration program may 
use the funds made available through such grant to pay for a portion of 
a stipend for the participants in the project.
    (2) Limitation on amount of stipend. The amount of the stipend 
provided to a participant under paragraph (d)(1) of this section that 
may be paid using assistance provided under this section and using any 
other Federal funds may not exceed the lesser of--
    (i) 85 percent of the total average annual subsistence allowance 
provided to VISTA volunteers under section 105 of the Domestic 
Volunteer Service Act of 1973 (42 U.S.C. 4955); and
    (ii) 85 percent of the stipend established by the demonstration 
program involved.
    (e) Participants--(1) Eligibility. A person will be eligible to be 
selected as a participant in a project carried out through a 
demonstration program if the person is--
    (i) Economically disadvantaged and between the ages of 16 and 24, 
inclusive;
    (ii) In the case of a full-time summer program, economically 
disadvantaged and between the ages of 14 and 24; or
    (iii) An eligible youth as described in section 423 of the Job 
Training Partnership Act (29 U.S.C. 1693).
    (2) Participation. Persons desiring to participate in such a 
project must enter into an agreement with the sponsor of the project to 
participate--
    (i) On a full-time or a part-time basis; and
    (ii) For the duration referred to in paragraph (f)(2)(iii) of this 
section.
    (f) Application--(1) In general.--To be eligible to receive a grant 
under paragraph (c) of this section, a community or community-based 
agency must submit an application to the Corporation at such time, in 
such manner, and containing such information as the Chief Executive 
Officer may require.
    (2) Contents. At a minimum, such application must contain--
    (i) A description of the demonstration program proposed to be 
conducted by the applicant;
    (ii) A proposal for carrying out the program that describes the 
manner in which the applicant will--
    (A) Provide preservice and inservice training, for supervisors and 
participants, that will be conducted by qualified individuals or 
qualified organizations;
    (B) Conduct an appropriate evaluation of the program; and
    (C) Provide for appropriate community involvement in the program;
    (iii) Information indicating the duration of the program; and
    (iv) An assurance that the applicant will comply with the 
nonduplication, nondisplacement and grievance procedure provisions of 
part 2540 of this chapter.
    (g) Limitation on grant. In making a grant under paragraph (c) of 
this section with respect to a demonstration program to assist in 
converting an affected military installation, the Corporation will not 
make a grant for more than 25 percent of the total cost of the 
conversion.


Sec. 2531.20  Special Demonstration Project for the Yukon-Kuskokwim 
Delta of Alaska.

    (a) Special Demonstration Project for the Yukon-Kuskokwim Delta of 
Alaska. The Corporation may award grants to, and enter into contracts 
with, organizations to carry out programs that address significant 
human needs in the Yukon-Kuskokwim delta region of Alaska.
    (b) Application--(1) General requirements. To be eligible to 
receive a grant or enter into a contract under paragraph (a) of this 
section with respect to a program, an organization must submit an 
application to the Corporation at such time, in such manner, and 
containing such information as the President may require.
    (2) Contents. The application submitted by the organization must, 
at a minimum--
    (i) Include information describing the manner in which the program 
will utilize VISTA volunteers, individuals who have served in the Peace 
Corps, and other qualified persons, in partnership with the local 
nonprofit organizations known as the Yukon-Kuskokwim Health Corporation 
and the Alaska Village Council Presidents;
    (ii) Take into consideration--
    (A) The primarily noncash economy of the region; and
    (B) The needs and desires of residents of the local communities in 
the region; and
    (iii) Include specific strategies, developed in cooperation with 
the Yupi'k speaking population that resides in such communities, for 
comprehensive and intensive community development for communities in 
the Yukon-Kuskokwim delta region.


Sec. 2531.30  Other innovative and model programs.

    (a) The Corporation may support other innovative and model programs 
such as the following:
    (1) Programs, including programs for rural youth, described in 
parts 2515 through 2524 of this chapter;
    (2) Employer-based retiree programs;
    (3) Intergenerational programs;
    (4) Programs involving individuals with disabilities providing 
service;
    (5) Programs sponsored by Governors; and
    (6) Summer programs carried out between May 1 and October 1 (which 
may also contain a year-round components).
    (b) The Corporation will support innovative service-learning 
programs.

PART 2532--TECHNICAL ASSISTANCE, TRAINING, AND OTHER SERVICE 
INFRASTRUCTURE-BUILDING ACTIVITIES

Sec.
2532.10 Eligible activities.

    Authority: 42 U.S.C. 12501 et seq.


Sec. 2532.20  Eligible activities.

    The Corporation may support--either directly or through a grant, 
contract or agreement--any activity designed to meet the purposes 
described in part 2530 of this chapter. These activities include, but 
are not limited to, the following:
    (a) Community-based agencies. The Corporation may provide training 
and technical assistance and other assistance to project sponsors and 
other community-based agencies that provide volunteer placements in 
order to improve the ability of such agencies to use participants and 
other volunteers in a manner that results in high-quality service and a 
positive service experience for the participants and volunteers.
    (b) Improve ability to apply for assistance. The Corporation will 
provide training and technical assistance, where necessary, to 
individuals, programs, local labor organizations, State educational 
agencies, State Commissions, local educational agencies, local 
governments, community-based agencies, and other entities to enable 
them to apply for funding under one of the national service laws, to 
conduct high-quality programs, to evaluate such programs, and for other 
purposes.
    (c) Conferences and materials. The Corporation may organize and 
hold conferences, and prepare and publish materials, to disseminate 
information and promote the sharing of information among programs for 
the purpose of improving the quality of programs and projects.
    (d) Peace Corps and VISTA training. The Corporation may provide 
training assistance to selected individuals who volunteer to serve in 
the Peace Corps or a program authorized under title I of the Domestic 
Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.). The training 
will be provided as part of the course of study of the individual at an 
institution of higher education, involve service-learning, and cover 
appropriate skills that the individual will use in the Peace Corps or 
VISTA.
    (e) Promotion and recruitment. The Corporation may conduct a 
campaign to solicit funds for the National Service Trust and other 
programs and activities authorized under the national service laws and 
to promote and recruit participants for programs that receive 
assistance under the national service laws.
    (f) Training. The Corporation may support national and regional 
participant and supervisor training, including leadership training and 
training in specific types of service and in building the ethic of 
civic responsibility.
    (g) Research. The Corporation may support research on national 
service, including service-learning.
    (h) Intergenerational support. The Corporation may assist programs 
in developing a service component that combines students, out-of-school 
youths, and older adults as participants to provide needed community 
services.
    (i) Planning coordination. The Corporation may coordinate 
community-wide planning among programs and projects.
    (j) Youth leadership. The Corporation may support activities to 
enhance the ability of youth and young adults to play leadership roles 
in national service.
    (k) National program identity. The Corporation may support the 
development and dissemination of materials, including training 
materials, and arrange for uniforms and insignia, designed to promote 
unity and shared features among programs that receive assistance under 
the national service laws.
    (l) Service-learning. The Corporation will support innovative 
programs and activities that promote service-learning.
    (m) National Youth Service Day.--(1) Designation. April 19, 1994, 
and April 18, 1995 are each designated as ``National Youth Service 
Day''. The President is authorized and directed to issue a proclamation 
calling on the people of the United States to observe the day with 
appropriate ceremonies and activities.
    (2) Federal activities. In order to observe National Youth Service 
Day at the Federal level, the Corporation may organize and carry out 
appropriate ceremonies and activities.
    (3) Activities. The Corporation may make grants to public or 
private nonprofit organizations with demonstrated ability to carry out 
appropriate activities, in order to support such activities on National 
Youth Service Day.
    (n) Clearinghouses.--(1) Authority. The Corporation may establish 
clearinghouses, either directly or through a grant or contract. The 
service-learning clearinghouse to be established pursuant to part 2518 
of this chapter is eligible to apply for a grant under this section. In 
addition, public or private nonprofit organizations are eligible to 
apply for clearinghouse grants; however, such organizations must have 
extensive experience in training, technical assistance and service and/
or volunteer program development, and management and evaluation.
    (2) Function. A Clearinghouse may perform the following activities:
    (i) Assist entities carrying out State or local community service 
programs with needs assessments and planning;
    (ii) Conduct research and evaluations concerning community service;
    (iii) Provide leadership development and training to State and 
local community service program administrators, supervisors, and 
participants; and provide training to persons who can provide such 
leadership development and training;
    (iv) Facilitate communication among entities carrying out community 
service programs and participants;
    (v) Provide information, curriculum materials, and technical 
assistance relating to planning and operation of community service 
programs, to States and local entities eligible to receive funds under 
this chapter;
    (vi) Gather and disseminate information on successful community 
service programs, components of such successful programs, innovative 
youth skills curriculum, and community service projects;
    (vii) Coordinate the activities of the clearinghouse with 
appropriate entities to avoid duplication of effort;
    (viii) Make recommendations to State and local entities on quality 
controls to improve the delivery of community service programs and on 
changes in the programs under this chapter; and
    (ix) Carry out such other activities as the Chief Executive Officer 
determines to be appropriate.
    (o) Assistance for Head Start. The Corporation may make grants to, 
and enter into contracts and cooperative agreements with, public or 
nonprofit private agencies and organizations that receive grants or 
contracts under the Foster Grandparent Program (part B of title II of 
the Domestic Volunteer Service Act of 1973 (29 U.S.C. 5011 et seq.)), 
for projects of the type described in section 211(a) of such Act (29 
U.S.C. 5011) operating under memoranda of agreement with the ACTION 
Agency, for the purpose of increasing the number of low-income 
individuals who provide services under such program to children who 
participate in Head Start programs under the Head Start Act (42 U.S.C 
9831 et seq).
    (p) Other assistance. The Corporation may support other activities 
that are consistent with the purposes described in part 2530 of this 
chapter.

PART 2533--SPECIAL ACTIVITIES

Sec.
2533.10  National service fellowships.
2533.20  Presidential awards for service.

    Authority: 42 U.S.C. 12501 et seq.


Sec. 2533.10  National service fellowships.

    The Corporation may award national service fellowships in such a 
manner, in such amounts, for such periods, and at such times as it 
deems appropriate. National service fellowships, however, will only be 
awarded on a competitive basis.


Sec. 2533.20  Presidential awards for service.

    The President, acting through the Corporation, may make 
Presidential awards for service to individuals providing significant 
service, and to outstanding programs. Information about recipients of 
such awards will be widely disseminated. The President may provide such 
awards to any deserving individual or program, regardless of whether 
the individual is serving in a program authorized by this chapter or 
whether the program is itself authorized by this chapter. In no 
instance, however, may the award be a cash award.

PART 2540--GENERAL ADMINISTRATIVE PROVISIONS

Subpart A--Requirements Concerning the Distribution and Use of 
Corporation Assistance
Sec.
2540.100  What restrictions govern the use of Corporation 
assistance?
2540.110  Limitation on use of Corporation funds for administrative 
costs.
Subpart B--Requirements Directly Affecting the Selection and Treatment 
of Participants
2540.200  Under what circumstances may participants be engaged?
2540.210  What provisions exist to ensure that Corporation-supported 
programs do not discriminate in the selection of participants and 
staff?
2540.220  Under what circumstances and subject to what conditions 
are participants in Corporation-assisted projects eligible for 
family and medical leave?
2540.230  What grievance procedures must recipients of Corporation 
assistance establish?

Subpart C--Other Requirements for Recipients of Corporation Assistance

2540.300  What must be included in State reports to the Commission?
2540.310  Must programs that receive Corporation assistance 
establish standards of conduct?
2540.320  How are participant benefits treated?

Subpart D--Suspension and Termination of Corporation Assistance

2540.400  Under what circumstances will the Corporation suspend or 
terminate a grant or contract?

    Authority: 42 U.S.C. 12501 et seq.

Subpart A--Requirements Concerning the Distribution and Use of 
Corporation Assistance


Sec. 2540.100  What restrictions govern the use of Corporation 
assistance?

    (a) Supplantation. Corporation assistance may not be used to 
replace State and local funding streams that had been used to support 
programs of the type eligible to receive Corporation support. For any 
given program, this condition will be satisfied if the aggregate non-
Federal expenditure for that program in the fiscal year that support is 
to be provided is not less than the previous fiscal year.
    (b) Religious use. Corporation assistance may not be used to 
provide religious instruction, conduct worship services, or engage in 
any form of proslytization.
    (c) Political activity. Corporation assistance may not be used by 
program participants or staff to assist, promote, or deter union 
organizing; or finance, directly or indirectly, any activity designed 
to influence the outcome of a Federal, State or local election to 
public office.
    (d) Contracts or collective bargaining agreements. Corporation 
assistance may not be used to impair existing contracts for services or 
collective bargaining agreements.
    (e) Nonduplication. Corporation assistance may not be used to 
duplicate an activity that is already available in the locality of a 
program. And, unless the requirements of paragraph (f) of this section 
are met, Corporation assistance will not be provided to a private 
nonprofit entity to conduct activities that are the same or 
substantially equivalent to activities provided by a State or local 
government agency that such entity resides in.
    (f) Nondisplacement. (1) An employer may not displace an employee 
or position, including partial displacement such as reduction in hours, 
wages, or employment benefits, as a result of the use by such employer 
of a participant in a program receiving Corporation assistance.
    (2) A service opportunity will not be created under this title that 
will infringe in any manner on the promotional opportunity of an 
employed individual.
    (3) A participant in a program receiving Corporation assistance may 
not perform any services or duties or engage in activities that would 
otherwise be performed by an employee as part of the assigned duties of 
such employee.
    (4) A participant in any program receiving assistance under this 
chapter may not perform any services or duties, or engage in 
activities, that--
    (i) will supplant the hiring of employed workers; or
    (ii) are services, duties, or activities with respect to which an 
individual has recall rights pursuant to a collective bargaining 
agreement or applicable personnel procedures.
    (5) A participant in any program receiving assistance under this 
title may not perform services or duties that have been performed by or 
were assigned to any--
    (i) presently employed worker;
    (ii) employee who recently resigned or was discharged;
    (iii) employee who is subject to a reduction in force or who has 
recall rights pursuant to a collective bargaining agreement or 
applicable personnel procedures;
    (iv) employee who is on leave (terminal, temporary, vacation, 
emergency, or sick); or
    (v) employee who is on strike or who is being locked out.


Sec. 2540.110  Limitation on use of Corporation funds for 
administrative costs.

    Not more than five percent of the amount of assistance provided to 
the original recipient of any grant or any transfer of assistance from 
the Corporation in any fiscal year may be used to pay for 
administrative costs incurred by--
    (a) The original recipient of assistance; and
    (b) Any subgrantee of that recipient.

Subpart B--Requirements Directly Affecting the Selection and 
Treatment of Participants


Sec. 2540.200  Under what circumstances may participants be engaged?

    A State may not engage a participant to serve in any program that 
receives Corporation assistance unless and until amounts have been 
appropriated under section 501 of the Act (42 U.S.C. 12681) for the 
provision of AmeriCorps educational awards and for the payment of other 
necessary expenses and costs associated with such participant.


Sec. 2540.210  What provisions exist to ensure that Corporation-
supported programs do not discriminate in the selection of participants 
and staff?

    (a) An individual with responsibility for the operation of a 
project that receives Corporation assistance may not discriminate 
against a participant in, or member of the staff of, such project on 
the basis of race, color, national origin, sex, age, or political 
affiliation of such participant or member, or on the basis of 
disability, if the participant or member is a qualified individual with 
a disability.
    (b) Any Corporation assistance constitutes Federal financial 
assistance for purposes of title VI of the Civil Rights Act of 1964 (42 
U.S.C. 2000d et seq.), title IX of the Education Amendments of 1972 (20 
U.S.C. 1681 et seq.), section 504 of the Rehabilitation Act of 1973 (29 
U.S.C. 794), and the Age Discrimination Act of 1975 (42 U.S.C. 6101 et 
seq.), and constitutes Federal financial assistance to an education 
program or activity for purposes of the Education Amendments of 1972 
(20 U.S.C. 1681 et seq.).
    (c) An individual with responsibility for the operation of a 
project that receives Corporation assistance may not discriminate on 
the basis of religion against a participant in such project or a member 
of the staff of such project who is paid with Corporation funds. This 
provision does not apply to the employment (with Corporation 
assistance) of any staff member of a Corporation-supported project who 
was employed with the organization operating the project on the date 
the Corporation grant was awarded.


Sec. 2540.220  Under what circumstances and subject to what conditions 
are participants in Corporation-assisted programs eligible for family 
and medical leave?

    (a) Participants in State, local, or private nonprofits programs. A 
participant in a State, local, or private nonprofit program receiving 
support from the Corporation is considered an eligible employee of the 
program's project sponsor under the Family and Medical Leave Act if--
    (1) The participant has served for at least 12 months and 1,250 
hours during the year preceding the start of the leave; and
    (2) The program's project sponsors engages in commerce or any 
industry or activity affecting commerce, and employs at least 50 
employees for each working day during 20 or more calendar workweeks in 
the current or preceding calendar year.
    (b) Participants in Federal programs. Participants in Federal 
programs operated by the Corporation or by another Federal agency will 
be considered Federal employees for the purposes of the Family and 
Medical Leave Act if the participants have completed 12 months of 
service and the project sponsor is an employing agency as defined in 5 
U.S.C. 6381 et seq.; such participants therefore will be eligible for 
the same family and medical leave benefits afforded to such Federal 
employees.
    (c) General terms and conditions. Participants that qualify as 
eligible employees under paragraphs (a) or (b) of this section are 
entitled to take up to 12 weeks of unpaid leave during a 12 month 
period for any of the following reasons (in the cases of both 
paragraphs (c) (1) and (2) of this section. The entitlement to leave 
expires 12 months after the birth or placement of such child):
    (1) The birth of a child to a participant;
    (2) The placement of a child with a participant for adoption or 
foster care;
    (3) The serious illness of a participant's spouse, child or parent; 
or
    (4) A participant's serious health condition that makes that 
participant unable to perform his or her essential service duties (a 
serious health condition is an illness or condition that requires 
either inpatient care or continuing treatment by a health care 
provider).
    (d) Intermittent leave or reduced service. The program, serving as 
the project sponsor, may allow a participant to take intermittent leave 
or reduce his or her service hours due to the birth of or placement of 
a child for adoption or foster care. The participant may also take 
leave to care for a seriously ill immediate family member or may take 
leave due to his or her own serious illness whenever it is medically 
necessary.
    (e) Alternate placement. If a participant requests intermittent 
leave or a reduced service hours due to a serious illness or a family 
member's sickness, and the need for leave is foreseeable based on 
planned medical treatment, the program, or project sponsor may 
temporarily transfer the participant to an alternative service position 
if the participant:
    (1) Is qualified for the position; and
    (2) Receives the same benefits such as stipend or living allowance 
and the position better accommodates the participants recurring periods 
of leave.
    (f) Certification of cause. A program, or project sponsor may 
require that the participant support a leave request with a 
certification from the health care provider of the participant or the 
participant's family member. If a program sponsor requests a 
certification, the participant must provide it in a timely manner.
    (g) Continuance of coverage. (1) If a State, local or private 
program provides for health insurance for the full-time participant, 
the sponsor must continue to provide comparable health coverage at the 
same level and conditions that coverage would have been provided for 
the duration of the participant's leave.
    (2) If the Federal program provides health insurance coverage for 
the full-time participant, the sponsor must also continue to provide 
the same health care coverage for the duration of the participant's 
leave.
    (h) Failure to return. If the participant fails to return to the 
program at the end of leave for any reason other than continuation, 
recurrence or onset of a serious health condition or other 
circumstances beyond his or her control, the program may recover the 
premium that he or she paid during any period of unpaid leave.
    (i) Applicability to term of service. Any absence, due to family 
and medical leave, will not be counted towards the participant's term 
of service.


Sec. 2540.230  What grievance procedures must recipients of Corporation 
assistance establish?

    State and local applicants that receive assistance from the 
Corporation must establish and maintain a procedure for the filing and 
adjudication of grievances from participants, labor organizations, and 
other interested individuals concerning programs that receive 
assistance from the Corporation. A grievance procedure may include 
dispute resolution programs such as mediation, facilitation, assisted 
negotiation and neutral evaluation.
    (a) Alternative dispute resolution. (1) The aggrieved party may 
seek resolution through alternative means of dispute resolution such as 
mediation or facilitation. Dispute resolution proceedings must be 
initiated within 45 calendar days from the date of the alleged 
occurrence. At the initial session of the dispute resolution 
proceedings, the party must be advised in writing of his or her right 
to file a grievance and right to arbitration. If the matter is 
resolved, and a written agreement is reached, the party will agree to 
forego filing a grievance in the matter under consideration.
    (2) If mediation, facilitation, or other dispute resolution 
processes are selected, the process must be aided by a neutral party 
who, with respect to an issue in controversy, functions specifically to 
aid the parties in resolving the matter through a mutually achieved and 
acceptable written agreement. The neutral party may not compel a 
resolution. Proceedings before the neutral party must be informal, and 
the rules of evidence will not apply. With the exception of a written 
and agreed upon dispute resolution agreement, the proceeding must be 
confidential.
    (b) Grievance procedure for unresolved complaints. If the matter is 
not resolved within 30 calendar days from the date the informal dispute 
resolution process began, the neutral party must again inform the 
aggrieving party of his or her right to file a formal grievance. In the 
event an aggrieving party files a grievance, the neutral may not 
participate in the formal complaint process. In addition, no 
communication or proceedings of the informal dispute resolution process 
may be referred to or introduced into evidence at the grievance and 
arbitration hearing. The advisory decision may not be binding unless 
both parties agree. Grievances that allege fraud or criminal activity 
must immediately be brought to the attention of the Corporation's 
inspector general.
    (c) Time limitations. Except for a grievance that alleges fraud or 
criminal activity, a grievance must be made no later than one year 
after the date of the alleged occurrence. If a hearing is held on a 
grievance, it must be conducted no later than 30 calendar days after 
the filing of such grievance. A decision on any such grievance must be 
made no later than 60 calendar days after the filing of the grievance.
    (d) Arbitration. If there is an adverse decision against the party 
who filed the grievance, or 60 calendar days after the filing of a 
grievance no decision has been reached, the filing party may submit the 
grievance to binding arbitration before a qualified arbitrator who is 
jointly selected and independent of the interested parties. If the 
parties cannot agree on an arbitrator within 15 calendar days after 
receiving a request from one of the grievance parties, the Corporations 
Chief Executive Officer will appoint an arbitrator from a list of 
qualified arbitrators. An arbitration proceeding must be held no later 
than 45 calendar days after the request for arbitration. If the 
arbitrator is appointed by the Chief Executive Officer, the proceeding 
must occur no later than 30 calendar days after the arbitrators 
appointment. A decision must be made by the arbitrator no later than 30 
calendar days after the date the arbitration proceeding begins. The 
cost of the arbitration proceeding must be divided evenly between the 
parties to the arbitration. If, however, a participant, labor 
organization, or other interested individual prevails under a binding 
arbitration proceeding, the State or local applicant that is a party to 
the grievance must pay the total cost of the proceeding and the 
attorneys fees of the prevailing party.
    (e) Suspension of placement. If a grievance is filed regarding a 
proposed placement of a participant in a program that receives 
assistance under this chapter, such placement must not be made unless 
the placement is consistent with the resolution of the grievance.
    (f) Remedies. In general, remedies for a grievance filed include 
suspension or termination of payments for assistance under this 
chapter, and prohibition of a placement of a participant, and in 
grievance cases where there is a violation of nonduplication or 
nondisplacement requirements and the employer of the displaced employee 
is the recipient of Corporation assistance, the displaced employee 
must--
    (1) Be reinstated to the position he or she held prior to the 
displacement;
    (2) Be paid lost wages and benefits;
    (3) Regain any other relevant terms, conditions and privileges of 
employment; and
    (4) Obtain any equitable relief that is necessary to correct any 
violation of the nonduplication or nondisplacement requirements or to 
make the displaced employee whole.
    (g) Suspension or termination of assistance. The Corporation may 
suspend or terminate payments for assistance under this chapter.
    (h) Effect of noncompliance with arbitration. A suit to enforce 
arbitration awards may be brought in any Federal district court having 
jurisdiction over the parties without regard to the amount in 
controversy or the parties' citizenship.

Subpart C--Other Requirements for Recipients of Corporation 
Assistance


Sec. 2540.300  What must be included in State reports to the 
Commission?

    (a) In general. Each State receiving assistance under this title 
must prepare and submit, to the Corporation, an annual report 
concerning the use of assistance provided under this title and the 
status of the national and community service programs that receive 
assistance under such title in such State.
    (b) Local grantees. Each State may require local grantees that 
receive assistance under this title to supply such information to the 
State as is necessary to enable the State to complete the report 
required under paragraph (a) of this section, including a comparison of 
actual accomplishments with the goals established for the program, the 
number of participants in the program, the number of service hours 
generated, and the existence of any problems, delays or adverse 
conditions that have affected or will affect the attainment of program 
goals.
    (c) Report demonstrating compliance--(1) In general. Each State 
receiving assistance under this title must include information in the 
report required under paragraph (a) of this section that demonstrates 
the compliance of the State with the provisions of this chapter.
    (2) Local grantees. Each State may require local grantees to supply 
such information to the State as is necessary to enable the State to 
comply with the requirement of paragraph (a) of this section.
    (d) Availability of report. Reports submitted under paragraph (a) 
of this section must be made available to the public on request.


Sec. 2540.310  Must programs that receive Corporation assistance 
establish standards of conduct?

    Yes. Programs that receive assistance under this title must 
establish and stringently enforce standards of conduct at the program 
site to promote proper moral and disciplinary conditions.


Sec. 2540.320  How are participant benefits treated?

    Section 142(b) of the Job Training Partnership Act (29 U.S.C. 
1552(b)) shall apply to the programs conducted under this chapter as if 
such programs were conducted under the Job Training Partnership Act (29 
U.S.C. 1501 et seq.).

Subpart D--Suspension and Termination of Corporation Assistance


Sec. 2540.400  Under what circumstances will the Corporation suspend or 
terminate a grant or contract?

    (a) Suspension of a grant or contract. In emergency situations, the 
Corporation may suspend a grant or contract for not more than 30 
calendar days. Examples of such situations may include, but are not 
limited to:
    (1) Serious risk to persons or property;
    (2) Violations of Federal, State or local criminal statutes; and
    (3) Material violation(s) of the grant or contract that are 
sufficiently serious that they outweigh the general policy in favor of 
advance notice and opportunity to show cause.
    (b) Termination of a grant or contract. The Corporation may 
terminate or revoke assistance for failure to comply with applicable 
terms and conditions of this chapter. However, the Corporation must 
provide the recipient reasonable notice and opportunity for a full and 
fair hearing, subject to the following conditions:
    (1) The Corporation will notify a recipient of assistance by letter 
or telegram that the Corporation intends to terminate or revoke 
assistance, either in whole or in part, unless the recipient shows good 
cause why such assistance should not be terminated or revoked. In this 
communication, the grounds and the effective date for the proposed 
termination or revocation will be described. The recipient will be 
given at least 7 calendar days to submit written material in opposition 
to the proposed action.
    (2) The recipient may request a hearing on a proposed termination 
or revocation. Providing five days notice to the recipient, the 
Corporation may authorize the conduct of a hearing or other meetings at 
a location convenient to the recipient to consider the proposed 
suspension or termination. A transcript or recording must be made of a 
hearing conducted under this section and be available for inspection by 
any individual.

[FR Doc. 94-322 Filed 1-6-94; 8:45 am]
BILLING CODE 6820-BA-P