[Federal Register Volume 59, Number 56 (Wednesday, March 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6580]


[[Page Unknown]]

[Federal Register: March 23, 1994]


_______________________________________________________________________

Part II





Corporation for National and Community Service





_______________________________________________________________________



45 CFR Parts 2510, 2513, et al.




Corporation Grant Programs and Support and Investment Activities; Final 
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: Final rule.

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

SUMMARY: The Corporation for National and Community Service (the 
Corporation) is issuing this final 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 Nations education, public safety, human, and 
environmental needs through national and community service. This rule 
describes the different types of national and community service 
programs the Corporation may support, the funding available for those 
programs, the processes by which grants will be awarded, the training 
and technical support services available for program development and 
applications, and the Corporation's plans to invest in service 
infrastructure.

EFFECTIVE DATE: March 23, 1994.

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:

Background Information

The Corporation's Mission

    The Corporation's mission is to engage Americans of all ages and 
backgrounds in community-based National service. This service will 
address the Nations education, 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 Purpose of This Rule

    The purpose of this rule is to establish policies and procedures 
for the activities that 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'' through direct and demonstrable service, strengthening 
communities, and developing the leadership and other skills of 
participants. All programs, whether they involve elementary school 
children or senior citizens, are equally able to achieve the goal of 
strengthening communities `` 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. 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 getting things done and meeting the 
educational or training needs of participants. By keeping this calculus 
in mind, potential applicants can gauge the appropriate amount of 
program resources that should be dedicated to participant education, 
life skills training, and other types of participant support.

Proposed Regulations

    On January 7, 1994, the Corporation for National and Community 
Service published in the Federal Register (59 FR 1194) a proposed rule 
implementing the National and Community Service Act of 1990, as 
amended. In response to the proposed rule, the Corporation received 
over 280 comments from, among others, States, Indian tribes, schools, 
institutions of higher education, community-based organizations, public 
and private nonprofit organizations, volunteer organizations, and 
individuals.

Summary and Analysis of Public Comment

    Many comments suggested changes to Corporation policies that were 
discussed in the preamble to the Notice of Proposed Rulemaking but that 
were not addressed by the rule itself. Although the Corporation is not 
required to discuss these comments here, they have been considered 
carefully and some changes have been made. The most salient of these 
issues, along with updates to other non-regulatory Corporation 
policies, are discussed separately in the section on Preamble Issues.
    The Regulations Issues section summarizes substantive comments 
received on the regulatory provisions of the Corporation's proposed 
rule. Each issue that was raised in the comments is identified and 
discussed, and, where appropriate, any changes to the regulations are 
noted with regulatory citations.
    Finally, the Corporation received a significant number of comments 
that suggested changes to regulatory provisions that reflect statutory 
requirements. None of these is discussed here. Also not discussed are 
any technical, non-policy changes that were made either in response to 
comments or as a result of internal review.

I. Preamble Issues: Comments on and Updates to Non-Regulatory 
Corporation Policies

(A) Comments on Non-Regulatory Corporation Policies

Application Deadlines and Availability
    A number of commenters requested that the Corporation move back the 
deadlines for its various applications. The Corporation has done so. 
The new deadlines for the announced competitions are as follows (please 
note that the applications must be received by the Corporation by 6 
p.m. Eastern time of the announced due dates):

------------------------------------------------------------------------
                    Program                       Application due dates 
------------------------------------------------------------------------
Summer of Safety...............................  March 14, March 21     
Learn & Serve K-12, School-based...............  April 22               
Learn & Serve, Higher Education................  April 25               
AmeriCorps National Direct.....................  April 29               
Innovative and Demonstration...................  May 16                 
Learn and Serve K-12, Community-based..........  May 27                 
AmeriCorps State...............................  June 22                
------------------------------------------------------------------------

    Applications may be obtained by writing the Corporation at 1100 
Vermont Avenue, NW., Washington, DC 20525; by sending a fascimile 
request to (202) 606-4871; or by calling (202) 606-4949. Applications 
are also available on Internet. To retrieve applications via Internet, 
please send a blank electronic message to: [email protected]. There 
should be no text in the body of the message. An automatic response 
will be sent back with information on how to retrieve the applications 
through electronic mail, gopher and anonymous file transfer protocol 
(ftp).
    Since most local Americorps applicants (other than professional 
corps) will be applying through their respective States, they should 
contact their State Commissions to obtain applications.
National Priorities
    The statute and regulations give the Corporation the authority to 
establish priorities governing the competitive distribution of funds--
both directly and through the States. The Corporation received a number 
of comments suggesting changes to and clarifications of both the 
applicability and content of the national priorities. (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.) The national priorities, which have been 
slightly revised, are as follows:
    Education. School Readiness: Furthering early childhood 
development; and
    School Success: Improving the educational achievement of school-age 
youth and adults who lack basic academic skills.
    Public safety. Crime Prevention: Reducing the incidence of 
violence; and
    Crime Control: Improving criminal justice services, law 
enforcement, and victim services.
    Human needs. Health: Providing independent living assistance and 
home- and community-based health care; and
    Home: Rebuilding neighborhoods and helping people who are homeless 
or hungry.
    Environment. Neighborhood Environment: Reducing community 
environmental hazards; and
    Natural Environment: Conserving, restoring, and sustaining natural 
habitats.
    Two changes were made to the priorities. Within the education 
priority, the former priority, ``School success: improving the 
educational achievement of school-age children,'' was changed to 
``School success: improving the educational achievement of school-age 
youth and adults who lack basic academic skills.'' Within the human 
needs priority, ``Home: Rebuilding neighborhoods and helping people who 
are homeless,'' was changed to ``Home: Rebuilding neighborhoods and 
helping people who are homeless or hungry.'' This amendment was made to 
clarify that, as commenters suggested, programs designed to provide 
basic academic skills to adults and hunger programs are included.
    There were many suggestions for further changes to the priorities, 
including the following: within Education, add priorities for English 
as a Second Language, school-to-work transition, and programs targeting 
out-of-school youth; within Public Safety, add programs that include as 
participants former gang members and other troubled youth, as well as 
fire-safety programs; within Environment, there were suggestions for 
specific language changes. Similarly, there were suggestions for 
additional priority categories: One commenter suggested adding programs 
that target individuals with disabilities, and another suggested making 
economic development a national priority.
    After careful consideration, the Corporation did not make 
additional changes to the national priorities. Most suggested changes 
would have narrowed the priorities by delineating subcategories of 
programs that already fit under the priorities as drafted. For example, 
programs that include gang members as participants might apply under 
the education priority as programs that prepare youth for school 
success, under the public safety priority as programs that reduce 
violence, or, depending on the activities of the participants, under 
the human needs or environmental priorities. Indeed, quality programs 
often involve an holistic approach to meeting local needs and thus 
often address more than one national priority. The priorities are 
designed to allow programs maximum flexibility to respond to unique 
local needs but, concomitantly, to focus the investment of limited 
Corporation funds to achieve demonstrable impact. To further narrow the 
priorities would undermine these objectives. Programs should be aware 
that the priorities are intended to provide parameters within which to 
focus their efforts; more specific activities within these parameters 
are allowable.
    Several commenters expressed concern about whether every 
participant or every project in a given program had to address one or 
more of the priority areas in order for the program as a whole to 
qualify. Every project and every participant in a program do not have 
to be working in a priority area in order for the program to be 
considered to meet a national priority; rather, the program as a whole 
must substantially address one or more priority areas. The Corporation 
intentionally has not attempted to quantify the definition of 
``substantially address.'' Instead, the Corporation will make this 
judgment on a case-by-case basis to allow for flexibility.
AmeriCorps State Applications
    The Corporation has changed the State AmeriCorps application 
process. The Corporation's previous plan considered the formula and 
competitive components of a State's application to be discrete. 
Programs had to be placed in one component or the other, and States did 
not have the flexibility to rearrange the components of their 
applications once submitted.
    There were a number of reasons behind this policy. First, it is the 
Corporation's policy to distribute competitive funds only to States 
that receive their formula allocations; this suggests evaluating the 
formula component of the applications prior to the competitive 
component. Second, programs should know up front which component of the 
State application they are in to be able to estimate accurately their 
chances of receiving funding. Third, because State priorities may 
differ from national priorities, some programs may not be eligible for 
both formula and competitive funding. Fourth, it gives autonomy to the 
States, allowing them to decide where to place programs. Finally, from 
a logistical standpoint, the review process is kept relatively simple 
by keeping the two components of the State application separate; 
therefore, the Corporation would be able to finish the reviews quickly 
and meet its goal of distributing funds to programs in the field on a 
timely basis.
    The major drawback of this policy is that it unnecessarily would 
require States to make difficult decisions that, ultimately, may not 
lead to the best programs being funded. Specifically, a State would 
have to decide--for every program for which it wants to seek funding--
whether that program should go into the formula or competitive 
component of its application. A State would have to decide whether to 
take a risk and put its best programs into the competitive pool, or to 
play it safe and place those programs in the formula portion of its 
application. If the State gambled, put its best programs in the 
competition, and those programs did not receive funding, then the best 
programs in that State would go unfunded. That is not a desirable 
outcome either for the States or for the Corporation.
    For the above reasons, the Corporation has revised the application 
process so that States will have the opportunity to replace programs 
included in the formula portion of their application with programs that 
were unsuccessful in obtaining competitive funding. The application and 
simultaneous review processes will be as follows: (a) States will 
submit applications consisting of the State Plan, formula programs, 
and, at the State's discretion, competitive programs and a request for 
program development assistance;
    (b) If the State Plan is approved, and if a State's formula 
programs meet a minimum quality threshold, that State's competitive 
programs will be entered into the State competition;\1\
---------------------------------------------------------------------------

    \1\Those States that do not submit programs for competitive 
funding, as well as those States that notify the Corporation in 
advance that they will not want to revise their formula application 
regardless of whether any or all programs they have submitted for 
competitive funding receive funding, will have the formula 
components of their applications processed before other States.
---------------------------------------------------------------------------

    (c) Through a peer and staff review process, the competitive 
programs will be selected;
    (d) States will be notified of which programs were selected in the 
competition and given an opportunity to revise their formula 
applications to include programs that were not selected in the 
competition. (The Corporation will be neutral here--neither encouraging 
nor discouraging States to put rejected competitive programs into the 
revised formula list. This is the States' choice completely, although 
at the request of the States the Corporation may provide review forms, 
etc. which may aid States in assessing the quality of those programs); 
and
    (e) The formula portions of the State applications will receive 
final approval from the Corporation.
    It is the Corporation's view that this revision to the State 
application process will leave most decisions in the hands of the 
States, allow for the best programs to be funded, and still get 
programs up and running quickly.
Eligibility of U.S. Territories for State Competitive Funds
    At the request of one commenter, the regulations (Sec. 2521.30) 
have been amended to clarify that U.S. Territories are eligible to 
apply for State Competitive funds and educational awards if they 
receive their formula allotments. Each eligible Territory may include 
up to three programs in its application for State competitive funds.
Timeline
    One commenter objected to the timelines established for the 
completion of the State Plan and State applications. In particular, the 
commenter stated that the tight timelines would make it difficult to 
coordinate State grant applications with the State Plan. Several 
commenters noted that the timing of notification of funding will make 
it difficult to hire staff, which usually happens in the spring.
    The Corporation agrees that the timeline is very tight and regrets 
any inconveniences it will cause. In future years, programs will have 
significantly longer to prepare applications. However, in fiscal year 
1994, the current timeline is necessary in order for Corporation-funded 
programs to be up and running by the Fall.
Starting Dates and Attrition Policies
    One commenter suggested that all participants should not be 
required to start at the same time and that vacancies be filled on a 
rolling basis. Another commenter suggested the option of a mid-year 
starting date to fill vacant positions.
    The regulations allow for policies to change over time if 
experience demands a revision. The current policy allows programs to 
begin terms of service in June, September or January. All participants 
in a program need not start simultaneously--thus one class could serve 
September-September, another January-January, thereby allowing the 
option of a mid-year starting date to fill vacancies. In addition, if a 
program can demonstrate a compelling reason for alternative starting 
dates, including the need for rolling admissions, the Corporation may 
waive this requirement.
Allocation of Educational Awards Within Programs
    One commenter expressed concern that not treating all participants 
the same in terms of educational awards might be a disadvantage in the 
selection process. The commenter suggested that it should not be a 
selection criterion.
    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 
thus may arise for some participants (who are serving in approved 
AmeriCorps positions) to receive AmeriCorps educational awards while 
other similar participants 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. An 
example of the latter of these is a corps where team leaders receive 
AmeriCorps education awards whereas regular corps participants do not. 
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 from non-
Corporation funds 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 will not 
approve rationales based solely on a determination of economic need of 
participants.
    The existence of a reasonable method of allocating educational 
awards will still be a selection criterion; however, in cases where 
programs have legitimate reasons for not offering educational awards to 
all participants, those programs will not be disadvantaged in any way 
in the selection process.
AmeriCorps Priorities for Existing Grantees and for Programs Targeting 
Participants with College Experience
    Some commenters suggested that programs involving college-educated 
participants should not be given priority for funding in the national 
direct competition.
    Although current grantees of the Commission on National and 
Community Service--which have a high percentage of participants without 
college experience--are not guaranteed funding, they receive a priority 
for funding. The special consideration for programs involving 
individuals with college experience was provided in order to achieve 
the overall goal of diversity across programs based on many factors. An 
alternative would be to drop both the priority for existing grantees 
and the special consideration for programs involving individuals with 
college experience. However, given the need to include a base of 
experienced programs and the advisability of completing the third year 
of programs that received three-year grants from the Commission, the 
applications retain the first alternative.
    Potential applicants should be aware that special consideration is 
not the same as an absolute preference. Nor does it mean that every 
participant must be college-educated in order for a program to receive 
special consideration, or that no programs involving youth who have not 
attended college will be funded in the national direct competition. 
Rather, the purpose of the special consideration is to ensure that 
participants with and without college experience are both represented 
in National service.
Small State Priority in the AmeriCorps State Competition
    Several commenters requested that the regulations be revised to 
increase from 20 to 50 both the recommended minimum number of 
participants in a program and the priority for small states in the 
State competition.
    After careful consideration, the Corporation has not changed these 
policies. Because there are many high-quality programs with between 20 
and 50 participants, and because the Corporation does not want to send 
the message that these programs should consider expanding to 50 
participants, the recommended minimum size of a program has not been 
raised to 50. Similarly, the Corporation chose not to raise the small 
State priority to 50 participants because it would have resulted in 
approximately half the States receiving the priority. States with 
widely disparate populations thus would be treated equally. This is not 
only unfair to the larger of these States but undermines Congress' 
intent of distributing these AmeriCorps funds in proportion to 
population.
Relocation Expenses
    In the preamble to the January 7 notice of proposed rulemaking, the 
Corporation stated that it would pay for the relocation expenses of 
participants who are recruited by the Corporation or the State 
Commissions and need to move in order to participate. One commenter 
argued that this is a poor use of scarce resources.
    The Corporation has revised this policy such that the Corporation 
will only pay reasonable relocation expenses in instances where 
participants would not be able to participate without this support.

(B) New and Updated AmeriCorps Tables

Maximum Number of Programs in the AmeriCorps Competitive State 
Applications
    One commenter suggested that the Corporation revisit whether any 
restrictions should be placed on how many AmeriCorps programs may be 
submitted in a State competitive application. The Corporation has 
limited the number of programs a State may include in its application 
for competitive funding to three plus an additional program for each 
full percentage point of the total State population (rounded to the 
nearest full percentage point) that State contains.
    The Corporation is not changing this policy for a number of 
reasons. First, from a purely pragmatic standpoint, some sort of 
limitation must be placed on the overall number of applications. If the 
Corporation is inundated with applications it will be difficult to 
ensure that each application is properly reviewed. Second, the 
Corporation wants to encourage States to submit only their very best 
programs. Finally, it is likely that with the restriction now in place 
only about one in five programs submitted will actually be funded. It 
would be unfair to programs to allow a significantly larger number of 
submissions.
    The table providing the number of programs that may be included in 
the competitive component of each State application has been updated as 
follows to incorporate the latest population estimates (July 1, 1993) 
from the Bureau of the Census. 

 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....................................................            5
California.................................................           15
Colorado...................................................            4
Connecticut................................................            4
Delaware...................................................            3
D.C........................................................            3
Florida....................................................            8
Georgia....................................................            6
Hawaii.....................................................            3
Idaho......................................................            3
Illinois...................................................            7
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 
------------------------------------------------------------------------

Formula Allocation of AmeriCorps Program Funds and Educational Awards 
to States
    The following table has been updated based on the latest estimates 
(July 1, 1993) from the Bureau of the Census: 

Formula Allocation of Program Funds and Americorps Educational Awards to
                                 States                                 
------------------------------------------------------------------------
                                                            Educational 
                 State                    Program funds       awards    
------------------------------------------------------------------------
Alabama.................................        $830,163              60
Alaska..................................         118,765               9
Arkansas................................         480,610              35
Arizona.................................         780,397              57
California..............................       6,188,252             448
Colorado................................         707,036              51
Connecticut.............................         649,736              47
Delaware................................         138,790              10
D.C.....................................         114,601               8
Florida.................................       2,712,156             197
Georgia.................................       1,371,444              99
Hawaii..................................         232,374              17
Idaho...................................         217,900              16
Illinois................................       2,319,182             168
Indiana.................................       1,132,725              82
Iowa....................................         557,936              40
Kansas..................................         501,825              36
Kentucky................................         751,251              54
Louisiana...............................         851,576              62
Maine...................................         245,658              18
Maryland................................         984,418              71
Massachusetts...........................       1,192,008              86
Michigan................................       1,879,217             136
Minnesota...............................         895,592              65
Mississippi.............................         524,032              38
Missouri................................       1,037,753              75
Montana.................................         166,350              12
Nebraska................................         318,622              23
Nevada..................................         275,399              20
New Hampshire...........................         223,055              16
New Jersey..............................       1,562,181             113
New Mexico..............................         320,407              23
New York................................       3,607,947             261
North Carolina..........................       1,376,996             100
North Dakota............................         125,902               9
Ohio....................................       2,199,029             159
Oklahoma................................         640,615              46
Oregon..................................         601,159              44
Pennsylvania............................       2,388,775             173
Puerto Rico.............................         698,320              51
Rhode Island............................         198,272              14
South Carolina..........................         722,303              52
South Dakota............................         141,764              10
Tennessee...............................       1,010,986              73
Texas...................................       3,575,033             259
Utah....................................         368,785              27
Vermont.................................         114,204               8
Virginia................................       1,286,980              93
Washington..............................       1,041,917              76
West Virginia...........................         360,854              26
Wisconsin...............................         998,892              72
Wyoming.................................          93,188               7
                                         -------------------------------
    Totals..............................      51,833,333           3,756
------------------------------------------------------------------------

Formula Allocation of AmeriCorps Program Funds and Educational Awards 
to Territories
    In fiscal year 1994, the Corporation has set aside $1,550,000 and 
up to 112 educational awards to be distributed to U.S. Territories on a 
formula basis. The amount of a Territory's program funds allocation is 
determined by multiplying the total amount of money available by the 
ratio of that Territory's population to the population of all the 
Territories. (Population figures are taken from the 1990 Census, the 
most recent official figures available.) The maximum number of 
educational awards for which a Territory may apply is determined by 
dividing that Territory's formula funds allocation by the expected 
average Federal share of program costs per participant ($13,800).

Formula Allocation of AmeriCorps Program Funds and Educational Awards to
                              Territories                               
------------------------------------------------------------------------
                                                            Educational 
               Territory                  Program funds       awards    
------------------------------------------------------------------------
American Samoa..........................        $213,104              15
Commonwealth of the Northern Mariana                                    
 Islands................................         197,485              14
Guam....................................         606,685              44
Palau...................................          68,898               5
Virgin Islands..........................         463,855              34
------------------------------------------------------------------------

Competitive Distribution of AmeriCorps Program Funds and Educational 
Awards to Indian Tribes
    The Corporation has set aside $1,550,000 and up to 112 educational 
awards for competitive distribution to Indian tribes.

II. Regulations Issues

General Comments

    (1) Multiple applications. Several commenters asked for 
clarification of the multiple applications rule.
    This rule states that the Corporation will reject any application 
for a project if an application requesting funding for that project is 
already pending before the Corporation. In other words, a program can 
only submit one application at a time for Corporation funds (either 
directly or indirectly) for a given project.
    Confusion sometimes arises over the difference between a program 
and a project. For the Corporation's purposes, a program recruits and 
selects participants, trains them, and places them in projects; a 
project is a specific set of related activities carried out by a 
program. A program may conduct or undertake more than one project and 
receive Corporation funding from different pools for those projects. A 
program is allowed, for example, to propose one project in a national 
direct application and another project in a State formula application. 
However, an applicant may not propose the same project for funding in 
more than one application at the same time. Thus if a program submits 
an application for a project in the national direct competition, that 
project may not also be included in a State application. (Once an 
applicant is notified that a proposal has been rejected, however, the 
applicant is free, if time permits, to resubmit the proposal in a 
different Corporation grant competition.)

    Change: Secs. 2516.730, 2517.730, 2519.730 and 2522.320 have been 
revised.

    (2) Reinventing government. One commenter urged the Corporation to 
include regulatory provisions that would encourage States to minimize 
administrative burdens on grantees by streamlining reimbursement and 
contracting procedures, as well as by providing cash advances to 
grantees when possible.
    The Corporation will issue separate administrative regulations that 
will require States and other grantmaking entities receiving grants 
from the Corporation to provide cash advances and prompt expense 
reimbursements to subgrantees. Contracting procedures for supplies and 
services are governed primarily by State regulations and OMB Circulars 
102 and 110.

Part 2510--Overall Purposes and Definitions

    Definition of administrative costs (Sec. 2510.20). A number of 
commenters requested clarification of and suggested changes for the 
definition of administrative costs. One commenter stated that insurance 
costs should not count as administrative costs in certain instances; 
another argued that costs such as rent, utilities, travel, supplies, 
etc. should be allocated through an approved joint cost allocation 
plan; another stated that indirect costs that directly support programs 
should not be treated as administrative costs.
    The Corporation agrees that the definition of administrative costs 
was not sufficiently clear and it has been rewritten in response to 
these comments.
    Change: Sec. 2510.20 has been revised.

Part 2513--State Plan

    (1) Coordination. Some commenters recommended including a 
requirement that States include in their State Plans a description of 
how their activities will be coordinated with those of the State agency 
responsible for administering the Community Service Block Grant Act and 
with other State agencies.
    The Corporation encourages each State to develop a truly 
comprehensive and coordinated national and community service effort. 
However, the Corporation declines to require such coordination.
    (2) Consideration of State Plan. One commenter requested that the 
Corporation state in the regulations what weight the State Plan will 
have in the evaluation of State applications.
    The Corporation agrees that this is an important piece of 
information for States as they put together applications. The 
applications will indicate the extent to which the State Plan will be 
considered. However, because the Corporation wishes to maintain 
flexibility on this issue, it has not been incorporated into the 
regulations.
    (3) Consolidation. One commenter suggested consolidating the SEA 
and State Commission plans into one.
    Again, the Corporation encourages coordination of efforts, and a 
consolidated plan perhaps would be a good means for a State to 
accomplish this. However, due to the separation between State Education 
Departments and other agencies in many States, this will not be 
established as a requirement.

Parts 2515-2517--K-12 Learn and Serve Programs

    (1) Training investment. Several commenters recommended that the 
Corporation require 5-10% of a program's Learn and Serve grant to be 
spent on training.
    The Corporation agrees that adequate training--for both staff and 
participants--is a critical component of any high-quality program. In 
general, States and Indian tribes that receive K-12 school-based grants 
must spend a total of between 10% and 15% of those funds on training 
and capacity building. Moreover, in order to receive a grant, a program 
will have to demonstrate the existence of an appropriate training 
program. Because the training and capacity-building needs of the 
various other entities eligible to apply for school and community-based 
Learn and Serve America grants vary widely, the Corporation is not 
setting regulatory guidelines on what percentage of those grants must 
be spent on training and capacity building. However, the Corporation 
reserves the right to set such guidelines in the applications.
    (2) Partnerships. Several commenters suggested that the definition 
of ``partnership'' be revised to require that the written agreement 
specify the partnership's goals and activities, as well as the 
responsibilities of each partner.
    The Corporation has made this change.
    Change: Sec. 2510.20 has been revised.
    (3) Coordination. Some commenters suggested that the meaning of 
coordination should be clarified so that nonprofits and grant-making 
entities are required to communicate with State Commissions, but not to 
receive their approval to go ahead with the program.
    Coordination is not a program requirement for K-12 programs. 
Rather, programs must describe in their applications the extent to 
which they have coordinated with State Commissions. The regulations 
have been revised to indicate that while coordination should include 
meeting and consulting with State Commissions, it does not imply that 
those State Commissions have the power to approve or disapprove a 
program.
    Change: Secs. 2516.410(a)(1) and 2517.400(a)(3) have been revised.
    (4) Preselection of community-based programs. One commenter 
objected to the regulatory requirements for pre-selection of programs 
(Sec. 2517.400). Some commenters noted that the competitive process is 
likely to be circumvented if the Corporation requires preselection 
because of the tightness of the timeline.
    The regulations have been revised to not require preselection. 
Under the final regulations, State Commissions and grantmaking entities 
applying for Learn and Serve America community-based service-learning 
grants are not required to preselect their proposed subgrantees. 
However, State Commissions and grantmaking entities are expected to 
describe in detail the types of models that would be funded through 
grants to local partnerships.
    Change: Sec. 2517.400 has been revised.
    (5) Components of School-based application. Several commenters 
recommended that the regulations be revised to more specifically 
identify the application requirements and selection criteria. For 
example, one commenter suggested that the application described in 
Sec. 2516.400(a) include descriptions of the following items: The 
relationship between the program goals and strategic plans of the State 
Plan and SEA Plan; the relationship of the SEA Plan and the strategic 
goals of the SEA's systemic education reform efforts; the relationship 
of the SEA Plan and the program development plan of the State 
Commission's K-12 Community-based program; and the relationship of the 
SEA plan and specific systemic reform and school improvement efforts in 
the State or among targeted LEAs. The same commenter suggested that 
under Sec. 2516.410(c) applicants be required to ensure that a 
mechanism is provided by which school and community needs will guide 
the integration of service-learning into existing curriculum in order 
to meet those needs. Another commenter recommended a number of 
additions to Sec. 2516.500.
    Many of these recommendations are in fact incorporated into the 
applications; however, in order to maintain flexibility in the 
application and selection process, the Corporation has elected not to 
include them in the regulations.
    (6) Educational award eligibility. One commenter recommended 
including a provision for the K-12 Learn and Serve programs analogous 
to the higher education provision in Sec. 2519.310 which states that, 
in general, participants are not eligible to receive educational 
awards.
    This recommendation has been adopted.
    Change: a Sec. 2516.320 has been added to the regulations.
    (7) Monitoring and evaluation. Several commenters suggested 
additions to and requested clarification of the monitoring and 
evaluation Secs. 2516.800-850.
    In response, the Corporation has made three changes: First, because 
monitoring activities go beyond those included in the proposed sections 
on ``monitoring and Evaluation,'' the word monitoring has been removed 
from Subparts E and H. The Corporation now refers to monitoring 
functions that fall within the purview of evaluation as internal 
evaluation. Second, the Corporation has added the requirement for 
programs, States and grantmaking entities to cooperate fully with all 
Corporation evaluation activities. Third, the Corporation has added the 
requirement for the Corporation to ``study the extent to which national 
service models enable participants to afford post-secondary education 
with fewer student loans'' when evaluating the overall success of 
AmeriCorps.
    Change: Secs. 2516.800-850 have been revised.

Part 2519--Higher Education Learn and Serve Programs

    (1) Application review. One commenter suggested that the review 
process in Sec. 2519.500 be more specific and include peer review, 
rankings and reviewer comments, and that there be a written protocol 
for the CEO to cover situations where a highly ranked application is 
not funded.
    These are good ideas, and many of them may in fact be included in 
the review process. Specifically, in fiscal year 1994 programs will 
definitely be subject to peer review. However, since the Corporation 
may want to improve the review process from year to year, these 
provisions are not incorporated into the regulations.
    (2) Where can higher education programs operate? One commenter 
expressed concern that the neighboring communities language in 2519.100 
would not allow a program to operate across State lines.
    The Corporation's intent was that higher education programs should 
address needs in the communities where the programs operate, regardless 
of where the institution of higher education is located. The 
regulations have been revised to make this clear.
    Change: Sec. 2519.100 has been revised.

Parts 2520-2524--AmeriCorps

    (1) Living Allowance Match. Under the proposed regulations, 
programs receiving educational awards only grants were exempt from the 
living allowance requirement. One commenter suggested that they should 
not be, arguing that it would make it more difficult for low-income 
individuals to participate.
    The Corporation has revised its regulations to not allow this 
exemption.
    Change: Sec. 2522.240 has been revised.
    Another commenter requested that grantees be able to provide their 
15% match for living allowances on an in-kind basis.
    In general, the Corporation wants to ensure that every AmeriCorps 
participant receives a living allowance sufficient to meet reasonable 
expenses while participating. By definition, a living allowance match 
must be in cash. However, in certain instances where a program has 
received a waiver from providing the minimum living allowance, the 
Corporation will consider on a case-by-case basis waiving or reducing 
the matching requirement. For example, a program that houses its 
participants may not count that housing as an in-kind match, but it may 
be eligible to apply to have the 15% matching requirement waived or 
reduced.
    Change: A section (5)(iii), allowing for waivers of the 15% 
matching requirement, has been added to Sec. 2522.240(b).
    (2) Preselection of programs. Commenters objected to the 
requirement that applicants for AmeriCorps preselect and specifically 
identify in their applications the subgrantees they will fund. Some 
commenters argued that because of the tightness of the timeline, the 
competitive process is likely to be circumvented if preselection is 
required.
    Although the Corporation appreciates the difficulties preselection 
raises in light of the timeline, for both legal and policy reasons this 
requirement has not been changed. The statute requires a State 
applicant to describe the ``jobs or positions into which participants 
will be placed'' (section 130(c)(1)). It is the Corporation's view that 
such a description would be inadequate without a corresponding 
description of the programs in which those jobs or positions would be 
located. Moreover, section 130(b)(2) of the statute requires 
``description of the process and criteria by which the programs were 
selected.'' From a policy standpoint, preselection is required in order 
to ensure that the Corporation funds only high-quality programs.
    (3) Diversity. Several commenters recommended modifications to the 
participant diversity provisions contained in Sec. 2522.100. One 
commenter stated that programs that are unable to achieve racial and 
gender diversity should not receive Federal funds. Conversely, other 
commenters expressed concern that the racial diversity requirement may 
exclude eligibility minority agencies that would have predominantly 
minority participants. A number of commenters suggested that the 
Corporation require diversity of program staff and include that as an 
evaluation criterion. One commenter suggested that the Corporation 
encourage programs to engage in joint activities with organizations 
involving participants of different backgrounds to enhance community-
building.
    The Corporation declines to make the achievement of diversity a 
requirement or to establish regulatory exceptions to the mandate that 
every program seek diversity. The Corporation, in establishing the 
requirement that every program actively seek to be diverse in a number 
of important areas, attempted to strike a balance between competing 
concerns. On the one hand, diverse programs will help strengthen 
communities. On the other hand, there are some very good programs that, 
for legitimate substantive reasons, will not to be able to achieve 
diversity in one or more ways. The requirement, as written, will lead 
to diverse programs except in cases where diversity does not make sense 
or is not attainable (e.g., a professional corps program requiring 
specific skills or education should not be required to include as 
participants individuals who do not have such skills or education).
    The Corporation agrees with the suggestion that programs also 
should seek actively to establish a diverse staff. In many cases where 
a program's staff is very small, it may not always be possible to have 
a staff that is diverse in all ways. Within these constraints, however, 
programs should seek to establish a staff that is as diverse as 
possible.
    Finally, the Corporation agrees that--especially for programs that 
lack diversity in one or more ways--it is a good idea for programs to 
engage in joint activities with organizations involving participants of 
different backgrounds to help build communities; programs are 
encouraged to do so where possible.
    Change: Sec. 2522.100(f) has been modified to include staff 
diversity.
    (4) 50% rule. One commenter recommended that the Corporation drop 
the waiver provision from the requirement that at least 50% of funds 
going to each State go to high-need areas. (Sec. 2521.30(b)(3)(iii))
    In principle, the Corporation believes strongly that each State 
should in fact do everything possible to comply with the 50% 
requirement. Thus in order to attain a waiver from this provision, a 
State will have to demonstrate in an extremely compelling manner not 
only that there are not enough viable high-quality programs operating 
in areas of need within the State to meet the 50% requirement, but that 
it has made a good-faith effort to locate such programs. Finally, no 
waivers will be granted to individual States if it would necessitate 
not complying with the 50% rule in the aggregate.
    The Corporation is statutorily required to ensure that a minimum of 
50% of the total funds going to States go to high-need areas. And 
although the Corporation is committed to meeting this requirement in 
the aggregate, it may not always be possible to meet the requirement on 
a State-by-State basis. For example, the Corporation's review process 
may result in the selection in a given State of a high-quality program 
that does not operate in an area of need. If there were not other high-
quality programs within that State that did operate in high-need areas, 
without the waiver provision the Corporation would be unable to fund 
the high-quality program. For this reason, the waiver provision has 
been retained.
    (5) Participant eligibility. (2522.200(b)) One commenter stated 
that the regulations state that a participant must have a high-school 
diploma to participate, whereas in fact a diploma is only required to 
receive the educational award.
    This section has not been changed. The regulations state that in 
order to participate an individual must either have a high school 
diploma or its equivalent, commit to obtaining one, or be deemed unable 
to obtain one.
    (6) National Leadership Pool and Recruitment. (2522.210(b)(1)(c)) 
The Corporation received a number of comments on the national 
leadership pool and recruitment requirements. One commenter suggested 
that the regulations allow anyone recruited to the national leadership 
pool to be placed back into his or her original program. The same 
commenter argued that programs should not be required to accept 
national leadership pool participants; instead, the Corporation should 
operate a pilot leadership program. Other commenters suggested that the 
Sec. 2522.100 requirement that AmeriCorps programs agree to select a 
certain percentage of participants from the national and state 
recruiting pools be eliminated.
    In order to maintain regulatory flexibility, these requirements 
have not been amended. To the extent that these comments are 
incorporated into Corporation policy it will not be done in regulations 
but rather in application materials and other guidelines. However, two 
items should be noted: (a) Although programs must agree to accept a 
certain percentage of nationally recruited participants, the 
Corporation may not require every program to do so, and will likely 
consider exceptions on a case-by-case basis; and (b) programs will not 
be required to accept leadership pool participants.
    (7) Child Care. (2522.250(a)) One commenter argued that child care 
benefits should go to prospective participants who have undependable 
child care as well as to participants who don't have child care at all.
    This regulation has not been changed; as written, it closely tracks 
the statute. Programs will provide child care assistance to 
participants who need it in order to participate; they will determine 
on a case-by-case basis whether individuals are eligible. A prospective 
participant with extremely undependable child care could certainly 
argue that he or she would not be able to participate without child 
care benefits.
    (8) Health Care. (2522.250(b)) One commenter stated that the 
regulations should clarify that AmeriCorps participants should not be 
asked to pay premiums or deductibles, that the health care plan should 
include preventive and pregnancy care, as well as eye and dental care 
and workers compensation, and that there should be a 1-2 month delay in 
eligibility, since attrition is highest during this period.
    The Corporation will issue written guidelines setting forth the 
required specifications of the AmeriCorps health care package. These 
comments will be taken into consideration in the development of 
policies at that time. In addition, the health care section of the 
regulations has been rewritten to provide greater clarity.
    Change: Sec. 2522.250 has been revised.
    (9) State Priorities. (2522.410(b)(1)(i)) One commenter argued that 
States should be encouraged to adopt priorities that fit within the 
national priorities. The commenter felt that this would facilitate a 
comprehensive, focused national service effort.
    The Corporation agrees that requiring States to adopt national 
priorities might create a more focused national effort, but this change 
was not made because the Corporation strongly believes that it was 
Congress' intent to maintain a large degree of State autonomy with 
formula funds. States are in the best position to judge which needs are 
most pressing within a State and thus what the State priorities should 
be.
    (10) Program types. One commenter recommended for inclusion in the 
regulations additional provisions relating to the needs of inner 
cities. Specifically, the commenter recommended adding an example to 
Sec. 2522.110(b)(1) of a community service program in a high 
unemployment, high need urban area. The commenter also suggested that 
the provision describing a program for economically disadvantaged 
individuals (Sec. 2522.110(b)(3)) be expanded to add a requirement that 
it meet the employment needs of low income people and the business 
development needs of inner city neighborhoods.
    These changes have not been made. The program types included in the 
regulations are all taken directly from the statute. More importantly, 
as discussed in the January 7 preamble, a program does not necessarily 
have to be listed as a program type in Sec. 2522.110 in order to 
receive a grant. The Corporation has designated any program that meets 
the minimum program requirements listed in Sec. 2522.100 as eligible to 
apply for a grant.
    (11) Higher education cap. Several commenters argued that the 
regulations should restrict to 10% the percentage of a State's 
educational award formula allotment that institutions of higher 
education may receive.
    The Corporation declines to regulate on this issue. Which programs 
are proposed for funding in the State formula allotment, and how any 
available educational awards are distributed among them, is up to the 
States.
    (12) Ineligible service activities. (Sec. 2520.30) A number of 
commenters suggested that the Corporation revise the treatment of 
provisions prohibiting lobbying by participants in the course of their 
service. A number of commenters argued that the list of prohibited 
activities was too large and went beyond the statute. Some commenters 
stated that the proposed regulations would have an overly restrictive 
impact on programs and participants.
    The Corporation believes the service activity restrictions will not 
have a negative impact on programs or participants and that the list 
will keep programs focused on service that has direct and demonstrable 
results. However, the Corporation does not intend to limit the right of 
individuals to engage in any of the prohibited activities voluntarily 
and on their own time. Accordingly, the regulations have been amended.
    Change: Sec. 2520.30 has been revised.
    (13) Selection criteria. One commenter suggested rewriting the 
AmeriCorps selection criteria so that replicability and sustainability 
are more closely linked with innovation, rather than listing 
innovation, replicability and sustainability as separate criteria. 
Another commenter suggested adding a selection criterion which would 
consider the extent to which programs promote diversity, community-
building and citizenship.
    The regulatory selection criteria have been drafted broadly to 
allow for flexibility from year to year and therefore are not being 
changed. The fiscal year 1994 selection criteria contained in the 
applications will stress the extent to which programs are likely to 
achieve the three desired impacts: ``getting things done,'' improving 
the lives of participants, and strengthening the ties that bind 
communities together.
    (14) Federal agency eligibility. One commenter requested 
clarification in Sec. 2523.20 on whether ``cabinet-level department'' 
would include an executive agency.
    Executive agencies are eligible. The regulations have been revised, 
replacing ``cabinet-level department'' with ``Executive Branch Agency 
or Department.''
    Change: Sec. 2523.20 has been amended.
    (15) Approved partnerships. One commenter asked for clarification 
of the term ``approved partnership or consortium'' as used in 
Sec. 2523.60. Specifically, the commenter asked for an explanation of 
how a partnership or consortium is approved.
    Partnerships will be approved by the Corporation as part of the 
application process.
    Change: Sec. 2523.60 has been amended.
    (16) Program requirements addition. (Sec. 2522.100) One commenter 
suggested that the Corporation add a requirement that AmeriCorps 
programs provide career counseling to participants.
    The Corporation did not add this as a program requirement because 
programs are already required under Sec. 2522.100(k)(1) to provide 
support services to participants who are making the transition to 
careers.
    (17) National nonprofit eligibility. One commenter requested 
clarification of the eligibility of national nonprofit organizations to 
apply for funding through subgrants, as well as directly from the 
Corporation.
    Because national nonprofits are by definition nonprofit 
organizations, they are eligible to apply as subgrantees to States, 
Federal agencies, and other grantmaking organizations. In addition, in 
fiscal year 1994 they are eligible to apply for national direct 
funding.
    (18) Operating grant definition. One commenter noted that the 
description of operating grants in Sec. 2521.20 of the regulations 
refers only to new or expanded programs. The commenter suggested adding 
on-going support for existing high-quality programs.
    The Corporation agrees that the statute authorizes on-going support 
to operate programs.
    Change: Sec. 2521.20 has been revised.
    (19) National direct coordination. Several commenters were 
concerned that the requirement that programs coordinate with the State 
commissions places too much power in the State Commissions. One 
commenter suggested that the regulations be revised to require national 
program applicants to meet and consult with State Commissions and to 
encourage, but not require, coordination of their efforts.
    The Corporation did not intend the coordination requirement to 
require State Commission approval. The regulations have been revised to 
clarify the extent of coordination that is required.
    Change: Sec. 2522.100 has been revised.
    (20) Dissemination of information. (Sec. 2522.210) The regulations 
list a number of entities through which the Corporation will 
disseminate information regarding available AmeriCorps positions. 
Several commenters suggested adding community-based organizations to 
this list.
    This change has been made.
    Change: Sec. 2522.210 has been revised.
    (21) Training investment. One commenter suggested that the 
Corporation require the grantees to spend between 5 and 10% of any 
grant on staff and participant training activities.
    The Corporation agrees that adequate training--for both staff and 
participants--is a critical component of any high-quality program. In 
order to receive a grant, a program will have to demonstrate the 
existence of an appropriate training program. But because the training 
and capacity-building needs of the various other entities eligible to 
apply for AmeriCorps grants vary widely, the Corporation is not setting 
regulatory guidelines on what percentage of those grants must be spent 
on training and capacity building. However, the Corporation reserves 
the right to set such guidelines in the applications.
    (22) Disaster Grants. Sec. 2524.50. One commenter suggested that we 
require disaster relief grants to go through the State Commissions. The 
commenter argued that this would better ensure the coordination of 
activities.
    The Corporation wishes to maintain flexibility on this issue and 
thus is not changing the regulations. For a given disaster, disaster 
grants may in fact flow through a State Commission. However, there also 
may be instances during a disaster when the Corporation would wish to 
distribute disaster funds directly to programs.
    (23) Replication grants. One commenter wondered why the term 
``replication'' does not occur in the regulations although it occurred 
in the preamble.
    Replication grants are allowable and they have been added to the 
regulations.
    Change: Sec. 2521.20 has been amended.
    (24) Matching requirements. One commenter requested clarification 
as to whether the general 25% match was inclusive or exclusive of the 
15% living allowance and health care match.
    The corporation agrees that the matching guidelines require further 
clarification, and the regulations have been amended to provide 
clarification. For the purposes of calculating matching requirements, 
there are two broad budget categories: participant support costs and 
other costs.
    Participant support costs are comprised of living allowances, 
health care benefits, and child care costs, each of which has a 
different matching requirement as specified below:
    Health Care: Corporation funds may be used to pay for no more than 
85% of total health care costs.
    Child Care: Corporation funds may be used to pay for 100% of child 
care costs.
    Living Allowances: Corporation and other Federal funds may be used 
to pay for no more than 85% of living allowance costs.
    ``Other Costs'' are comprised of all costs attributable to the 
program exclusive of the participant support costs detailed above. 
Corporation funds may be used to pay for no more than 75% of the total 
of these other costs. In order to avoid confusion, readers should note 
that the requirement that Corporation funds not exceed 75% of the total 
other costs of a program is not synonymous with a 25% matching 
requirement on a grant. The 75% restriction applies to the total other 
costs of a program (including non-Corporation funds). Thus, if a 
program's total other costs were $100,000, then the Corporation would 
provide a grant of no more than $75,000 for those costs, and the 
program would have to provide for the remaining $25,000.
    Changes: Sec. 2521.30 has been revised.
    (25) Ineligibility. One commenter suggested that the Corporation 
further clarify that a person who committed a crime prior to a term of 
service is not automatically ineligible for service.
    Individuals with criminal records are not, in fact, automatically 
ineligible to participate in programs. Programs are responsible for 
determining who shall participate. In selecting participants, programs 
providing service in particularly sensitive areas, such as working with 
young children, should consider whether the participation of 
individuals with certain criminal backgrounds would have a significant 
negative impact on the physical or psychological health of either other 
participants or individuals served.
    (26) Federal Agency matching requirements. One commenter requested 
clarification of how Federal agencies are treated in terms of the 
matching requirements. The regulations have been revised to clarify 
that Federal agencies do not have to meet matching requirements if they 
operate programs directly, but that if they subgrant, the subgrantees 
do have to meet the matching requirements.
    Change: Sec. 2523.90 has been revised.
    (27) Education and Training. One commenter asked how much of a term 
of service could be spent on education and training.
    The proposed rule did not address this issue. Therefore, the terms 
of service section of the regulations has been revised to indicate that 
the Corporation may set a minimum or maximum number of hours in a given 
term of service that may be spent on training, education, or similar 
approved activities. Thus, the Corporation reserves the right to 
establish such guidelines in the application materials.

Parts 2530-2533--Investment for Quality and Innovation

    Clearinghouse eligibility. One commenter suggested that the 
regulations go too far in Sec. 2532.20(n) by requiring that to be 
eligible to apply as a clearinghouse, an organization must have 
extensive experience in training, technical assistance, service and/or 
volunteer development, management, and evaluation. The commenter argued 
that the law only lists these as activities a clearinghouse could do, 
not as requirements for eligibility.
    The regulations have been amended to conform to the statute.
    Change: Sec. 2532.20(n) has been revised.

Part 2540--Administrative Provisions

    (1) Nondisplacement (Sec. 2540.100(f)(4)(i)). Once commenter 
suggested that we include examples of what constitutes displacement as 
described in this section. Several commenters urged that the proposed 
restriction not be interpreted too strictly. One commenter pointed out 
that it seems to contradict Sec. 2522.110(3), which states that 
professional corps programs that recruit and place qualified 
participants in positions as teachers and nurses qualify as AmeriCorps 
programs. The commenter suggested that the regulations be revised to 
clarify that those programs qualify because the participants don't 
replace qualified and certified people.
    The Corporation declines to put examples or further clarifications 
of this issue in the regulations. However, it will disseminate 
information clarifying these issues to all grantees.
    (2) Supplantation rule. One commenter raised several concerns 
regarding the supplantation requirement in the AmeriCorps regulations. 
The commenter pointed out that the preamble specifically included 
private sector funds in the requirement and that the proposed 
regulations were unclear. The commenter suggested not extending the 
rule to the private sector. Not allowing the supplantation of private 
funds could create a disincentive for programs to raise private funds 
because, if they lose those funds in a subsequent year, they may not be 
able to maintain the same level of non-federal funds and would thus be 
ineligible for AmeriCorps assistance. The commenter was also concerned 
that a program could have difficulty meeting the requirement for 
maintaining aggregate non-federal funding if the size of the program is 
reduced. The commenter recommended that the regulations be revised to 
add a sentence stating that the supplantation rule is satisfied if 
funding from private sources continues to exceed the matching 
requirements. The commenter also recommended that the required non-
federal expenditures be measured per capita instead of on a lump-sum 
basis.
    The statutory supplantation provision states that the level of 
State and local public funding for a given program cannot drop below 
the level of the previous year. The regulations stated this incorrectly 
and have been revised to indicate that the restriction applies only to 
public State and local funds. The Corporation does not have the 
regulatory authority to measure the level of State and local support on 
a per participant basis.
    Change: Sec. 2540.100 has been revised.

Part 2550--State Commission Regulations

    One commenter suggested that the State Commission regulations 
(published in the November 17, 1993 Federal Register as an interim 
final rule) be amended to add individuals with expertise in the field 
of mental retardation/cognitive disabilities to the list of possible 
members of the State Commissions.
    This addition will be incorporated into the final State Commission 
regulations when they are published.

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.
    As required by the Regulatory Flexibility Act, it is hereby 
certified that this rule will not have a significant impact on small 
business entities.
    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: March 16, 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 
Nations 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 expenses 
associated with the overall administration of a Corporation funded 
program. These costs relate to the support of a programs general 
operations and not to expenses identified with a specific program or 
project.
    (1) Administrative costs include, but are not limited to, 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 Office of Management and Budget Circulars A-21 (Cost 
Principles for Educational Institutions), A-87 (Cost Principles for 
State and local Governments), and A-122 (Cost Principles for Nonprofit 
Organizations) that provide guidance on indirect costs to Federal 
agencies. Copies of Office of Management and Budget Circulars are 
available from the Executive Office of the President Publications, 725 
17th Street, NW., room 2200, New Executive Office Building, Washington, 
DC 20503.
    (ii) Costs for financial, accounting, auditing, internal 
evaluations (except as in paragraph (2)(iii) of this definition), and 
contracting functions.
    (iii) Costs for insurance that protects the entity that operates 
the program.
    (iv) The portion of the salaries and benefits of the director and 
any other program administrative staff equal to the portion of time 
that is not spent in support of specific project objectives. Specific 
project objectives means recruiting, training, placing, or supervising 
participants.
    (2) Administrative costs do not include allowable costs directly 
related to program or project operations. These program costs include 
the following: (i) Costs for participants, including living allowances, 
insurance payments, and expense for training and travel.
    (ii) Costs for staff who recruit, train, place, or supervise 
participants, including costs for staff salaries, benefits, training, 
and travel, if the purpose is for a specific program or project 
objective.
    (iii) Costs for independent evaluations and internal evaluations--
the latter to the extent that the evaluations cover only the funded 
program or project and are specifically related to creative methods of 
quality improvement. (Overall organizational management improvement 
costs are administrative costs.) (See Sec. 2516.810 and Sec. 2522.510 
for definition of independent and internal evaluations.)
    (3) Particular costs, such as those associated with staff who 
perform both administrative and program functions, may be prorated 
between administrative and program costs if included in the budget and 
approved by the Corporation grants officer.
    Adult Volunteer. (1) The term adult volunteer means an individual, 
such as an older adult, an individual with disability, a parent, or an 
employee of a business of public or private nonprofit organization, 
who--
    (i) Works without financial remuneration in an educational 
institution to assist students of 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, 
with respect to an individual, has the same meaning as such term as 
defined in the Job Training Partnership Act (29 U.S.C. 1503(8)).
    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)).
    Empowerment zone. The term empowerment zone means an area 
designated as an empowerment zone by the Secretary of the Department of 
Housing and Urban Development or the Secretary of the Department of 
Agriculture.
    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 in two or more States; 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.
    Higher Education partnerships. The term higher education 
partnership means one or more public or private nonprofit 
organizations, or public agencies, including States, and one or more 
institutions of higher education that have entered into a written 
agreement specifying the responsibilities of each partner.
    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 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, 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)); 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)), which includes individuals with cognitive and other 
mental impairments, as well as individuals with physical impairments, 
who meet the criteria in that definition.
    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)).
    Local partnership. The term local partnership means a partnership, 
as defined in Sec. 2510.20 of this chapter, that meets the eligibility 
requirements to apply for subgrants under Sec. 2516.110 or 
Sec. 2517.110 of this chapter.
    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. The term partnership means two or more entities that 
have entered into a written agreement specifying the partnership's 
goals and activities as well as the responsibilities, goals, and 
activities of each partner.
    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, or a set of 
activities, 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)).
    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.
    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;
    (2) Is coordinated with an elementary school, secondary school, 
institution of higher education, or community service program, and with 
the community;
    (3) Helps foster civic responsibility;
    (4) 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
    (5) 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 an 
governmental unit within a State other than a unit with Statewide 
responsibilities.
    U.S. Territory. The term U.S. Territory means the Virgin Islands, 
Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, 
and Palau, until the Compact of Free Association with Palau is 
ratified.

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 States 
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 both the K-12 and Higher Education 
components of the Learn and Serve America program, 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

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

    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.

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?
2516.320  Is a participant eligible to receive an AmeriCorps 
educational award?

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 States 
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 more than one application to the 
Corporation for the same project at the same time?

Subpart H--Evaluation Requirements

2516.800  What are the purposes of an evaluation?
2516.810  What types of evaluations are grantees and subgrantees 
required to perform?
2516.820  What types of internal evaluation activities are required 
of programs?
2516.830  What types of activities are required of Corporation 
grantees to evaluate the effectiveness of their subgrantees?
2516.840  By what standards will the Corporation evaluate individual 
Learn and Serve America programs?
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 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 grantmaking entity as defined in Sec. 2515.20 of this 
chapter.
    (4) 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 local partnership must include an LEA and one or more 
community partners. The local 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 
local partnership must include an LEA and one or more public or private 
nonprofit organizations, other educational agencies, or private for-
profit businesses that coordinate and operate projects for participants 
who must be students.
    (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 school-based programs. 
(1) A State, Indian Tribe, 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) Authorized activities include paying the costs of the 
recruitment, training, supervision, placement, salaries and benefits of 
service learning coordinators.
    (4) A grantmaking entity may also 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 may be 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, 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.

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 Corporation procedures that are 
consistent with 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)).


Sec. 2516.320  Is a participant eligible to receive an AmeriCorps 
educational award?

    No. However, service-learning coordinators who are approved 
AmeriCorps positions are eligible for AmeriCorps educational awards.

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 for promoting service-learning through programs 
under this part, or a revision of a previously approved three-year 
strategic plan. 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, 
including a description of plans to meet and consult with the State 
Commission, if possible, and to provide a copy of the program 
application to the State Commission 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 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, Indian tribe 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 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 (e); and
    (2) A grant to a local partnership for activities in a 
nonparticipating State under Sec. 2516.200 (b)(2) and (d)(2).
    (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 more than one application to the 
Corporation for the same project at the same time?

    No. The Corporation will reject an application for a project if an 
application for funding or educational awards for the same project is 
already pending before the Corporation.

Subpart H--Evaluation Requirements


Sec. 2516.800  What are the purposes of an evaluation?

    Every evaluation effort should serve to improve program quality, 
examine benefits of service, or fulfill legislative requirements.


Sec. 2516.810  What types of evaluations are grantees and subgrantees 
required to perform?

    All grantees and subgrantees are required to perform internal 
evaluations which are ongoing efforts to assess performance and improve 
quality. Grantees and subgrantees may, but are not required to, arrange 
for independent evaluations which are assessments of program 
effectiveness by individuals who are not directly involved in the 
administration of the program. The cost of independent evaluations is 
allowable.


Sec. 2516.820  What types of internal evaluation activities are 
required of programs?

    Programs are required to: (a) Continuously assess management 
effectiveness, the quality of services provided, and the satisfaction 
of both participants and service recipients. Internal evaluations 
should seek frequent feedback and provide for quick correction of 
weakness. The Corporation encourages programs to use internal 
evaluation methods, such as community advisory councils, participant 
advisory councils, peer reviews, quality control inspections, and 
service recipient and participant surveys.
    (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.
    (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.
    (d) Cooperate fully with all Corporation evaluation activities.


Sec. 2516.830  What types of activities are required of Corporation 
grantees to evaluate the effectiveness of their subgrantees?

    A Corporation grantee that makes subgrants must do the following: 
(a) Ensure that subgrantees comply with the requirements of 
Sec. 2516.840.
    (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.
    (c) Collect from programs and submit to the Corporation the 
descriptive information required in Sec. 2516.820(c)(1).
    (d) Cooperate fully with all Corporation evaluation activities.


Sec. 2516.840  By what standards will the Corporation evaluate 
individual Learn and Serve America programs?

    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. 2516.850  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. 2516.840. 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--Eligibility to Apply

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 reviewed?

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 more than one application to the 
Corporation for the same project at the same time?

Subpart H--Evaluation Requirements

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

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

Subpart A--Eligibility to Apply


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. 2510.20 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.


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 
local 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 Learn and Serve 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 multiple sites 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 plan for promoting service-learning through 
programs under this part. The plan must describe the types of 
community-based program models 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 the applicant will coordinate its 
activities with the State Plan under part 2513 of this chapter and with 
other federally-assisted activities, including a description of plans 
to meet and consult with the State Commission, if possible, and to 
provide a copy of the program application to the State Commission.
    (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 plan describing 
the goals and activities of the proposed program;
    (2) A proposal containing 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 reviewed?

    In reviewing 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 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 more than one application to the 
Corporation for the same project at the same time?

    No. The Corporation will reject an application for a project if an 
application for funding or educational awards for the same project is 
already pending before the Corporation.

Subpart H--Evaluation Requirements


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

    The 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 Eligibility 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?

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 more than one application to the 
Corporation for the same project at the same time?

Subpart H--Evaluation Requirements

2519.800  What are the 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 the communities in which the programs operate.


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 higher education partnership, as defined in Sec. 2510.20 of 
this chapter.

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, 
a higher education partnership or a consortium 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 the participants 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 Eligibility 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 in 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. A program may, but is not required to, provide a prorated 
living allowance to individuals participating in approved AmeriCorps 
positions on a part-time basis, consistent with the AmeriCorps program 
requirements in Sec. 2522.240 of this chapter.

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.

Subpart E--Application Review


Sec. 2519.500  How does the Corporation review an application?

    (a) The Corporation will review 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 higher education partnership that will participate 
in the community service projects, such as a higher education 
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 or by contract.

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, of 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 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 more than one application to the 
Corporation for the same project at the same time?

    No. The Corporation will reject an application for a project if an 
application for funding or educational awards for the same project is 
already pending before the Corporation.

Subpart H--Evaluation Requirements


Sec. 2519.800  What are the 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--GENERAL PROVISIONS: AMERICORPS PROGRAMS

Sec.
2520.10  What is the purpose of the AmeriCorps program described in 
parts 2520 through 2524 of this chapter?
2520.20  What types of service activities are allowable for programs 
supported under parts 2520 through 2524 of this chapter?
2520.30  Are there any activities that are prohibited?

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


Sec. 2520.10  What is the purpose of the AmeriCorps program described 
in parts 2520 through 2524 of this chapter?

    The purpose of the AmeriCorps grant program is to provide financial 
assistance to support AmeriCorps programs that address educational, 
public safety, human, or environmental needs through national and 
community service to provide AmeriCorps education awards to 
participants in such progams.


Sec. 2520.20  What types of service activities are allowable for 
programs supported under parts 2520 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 
opportuntities 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 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. Although all 
prohibited activities may be performed voluntarily by participants on 
their own time, they 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) Impairing existing contracts for services or collective 
bargaining agreements;
    (e) Engaging in partisan political activities, or other activities 
designed to influence the outcome of an election to any public office;
    (f) Engaging in religious instruction, conducting worship services, 
providing instruction as part of a program that includes mandatory 
religious instruction 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;
    (g) 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 except that nothing in this section shall be construed to 
prevent participants from engaging in advocacy activities undertaken at 
their own initiative; 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
    (h) Such other activities as the Corporation may prohibit.

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. However, 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 part 2550 of this chapter in order to 
be eligible for an AmeriCorps grant.
    (b) The Corporation may also enter into contracts or cooperative 
agreements for AmeriCorps assistance with Federal agencies that are 
Executive Branch agencies or departments. Bureaus, divisions, and local 
and regional offices of such departments and agencies may only receive 
assistance pursuant to a contract or agreement with the central 
department or agency. The requirements relating to Federal agencies are 
described in part 2523 of this chapter.


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 may apply directly 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 establish, operate, 
or expand an AmeriCorps program. An operational grant may include 
AmeriCorps educational awards. An operational grant may also include a 
short planning period of up to six months, if necessary, to implement a 
program.
    (2) Eligibility. (i) States may apply directly to the Corporation 
for operational 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 operational grants. The Corporation may 
limit the categories of applicants eligible to apply directly to the 
Corporation for assistance under this section 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. States, subdivisions of States, Indian Tribes, 
Federal agencies, public or private nonprofit organizations (including 
labor organizations), and institutions of higher education may apply 
directly to the Corporation for AmeriCorps educational awards only.
    (d) Replication Grants. The Corporation may provide assistance for 
the replication of an existing national service program to another 
geographical location.
    (e) 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 45 CFR 
part 2524, ``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) For the purposes of this 
section, the term ``State'' means the fifty States, Puerto Rico, and 
the District of Columbia.
    (2) 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 the 50 States, Puerto Rico and the District of Columbia if 
they have applications approved by the Corporation.
    (3) 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 paragraphs 
(a)(2) or (b)(1) of this section in the same fiscal year.
    (4) In making subgrants with funds awarded by formula or 
competition under paragraphs (a) (2) or (3) 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 carried 
out 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 States 
will be used for programs that operate in the areas of need or on 
Federal or other public lands, 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 multipled 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 the 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 make available for eligible applicants who have 
not applied for program assistance.
    (d) Effect of 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 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. (i) The matching 
requirements for participant benefits are specified in 
Sec. 2522.240(b)(5) of this chapter.
    (ii) The Corporation share of other AmeriCorps program costs may 
not exceed 75 percent, whether the assistance is provided directly or 
as a subgrant from the original recipient of the assistance.
    (iii) These matching requirements apply only to programs receiving 
assistance under parts 2521 through 2524 of this chapter.
    (2) Calculation. In providing for the remaining share of other 
AmeriCorps program costs, 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) Limitation on cost of health care. A program may not count more 
than 85 percent of a cash payment for the cost of providing a health 
care policy toward its 15 percent remaining share under paragraph 
(g)(2)(i) of this section.
    (4) Waiver. The Corporation reserves the right to waive, in whole 
or in part, the requirements of paragraph (g)(1) of this section if the 
Corporation determines that a waiver would be equitable due to a lack 
of available financial resources at the local level.
    (h) Administrative costs. (1) The recipient of a direct grant or 
transfer of funds from the Corporation may spend no more than five 
percent of the grant or transferred funds on administrative costs.
    (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 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 financial 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 project 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--Evaluation Requirements

2522.500  What are the purposes of an evaluation?
2522.510  What types of evaluations are States, grant-making 
entities, and programs required to perform?
2522.520  What types of internal evaluation activities are required 
of programs?
2522.530  What types of activities are required of States or 
grantmaking entities to evaluate the effectiveness of their 
subgrantees?
2522.540  How will the Corporation evaluate individual AmeriCorps 
programs?
2522.550  What will the Corporation do 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 project sponsor, the written concurrence of any local labor 
organization representing employees of the project sponsor 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 and staff from 
the communities in which projects are conducted, and agree to seek 
program staff and participants of different races and ethnicities, 
socioeconomic backgrounds, educational levels, and genders as well as 
individuals with disabilities unless a program design requires 
emphasizing the recruitment of staff and 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. 2522.210(c). 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. 2524.40 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. 2522.240 through 2522.250 of this chapter;
    (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, however AmeriCorps 
grant funds may not be used to provide such benefits;
    (n) Agree to identify the program, through the use of logos, common 
application materials, and other means (to be specified by the 
Corporation), as part of a larger national effort 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 terms of service at such times as the 
Corporation may reasonably require and to comply with any restrictions 
the Corporation may establish as to when the program may take to fill 
an approved AmeriCorps position left vacant due to attrition;
    (p) 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, meet and consult with the State Commission for the State 
in which the program operates, if possible, and submit a copy of the 
program application to the State Commission; and
    (r) Address any other requirements as specified by the Corporation.


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

    Types of 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 in the application.

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 program 
described in Sec. 2522.110(g), in which case the participant must be 
between the ages of 16 and 25, inclusive, or in a program described in 
Sec. 2522.110(b)(3), in which case the participant must be between the 
ages of 16 and 24).
    (b) In general, 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 prior to using the educational 
award. 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), that individual 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 2540 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, 
community-based organizations, 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 or 
nominated by service programs, 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, contract, or cooperative agreement 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 determined by the Corporation.
    (4) Summer programs. A summer program, in which less than 1700 
hours of service are performed, are part-time programs.
    (b) Restriction on multiple terms. 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 in accordance with the requirements of 
paragraph (d) of this section. 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 participant's 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) Limitation. The Corporation may set a minimum or maximum 
percentage of hours of a full-time, part-time, or reduced term of 
service described in paragraphs (a)(1),(a)(2), and (a)(3) of this 
section that a participant may engage in training, education, or other 
similar approved activities
    (f) 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 participants 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. Any 
person that drops out of an AmeriCorps program without obtaining a 
release for compelling personal circumstances is considered to have 
been released for cause.
    (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 financial 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 pursuant to 
Sec. 2521.30 of this chapter, including an AmeriCorps program that 
receives educational awards only pursuant to Sec. 2521.30(c) 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 Sec. 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).
    (2) Maximum living allowance. With the exception of a professional 
corps described in Sec. 2522.110(a)(3), 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 Secs. 2521.30 (a)(2) and (a)(3) 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. The Federal share, including 
Corporation and other Federal funds, of the total amount provided to an 
AmeriCorps participant for a living allowance is limited as follows: 
(i) In no case may the Federal share exceed 85% of the minimum required 
living allowance enumerated in paragraph (b)(1) of this section.
    (ii) For professional corps described in paragraph (b)(2)(i) of 
this section, Corporation and other Federal funds may be used to pay 
for no portion of the living allowance.
    (iii) If the minimum living allowance requirements has been waived 
or reduced pursuant to paragraph (b)(4) of this section and the amount 
of the living allowance provided to a participant has been reduced 
correspondingly--
    (A) In general, the Federal share may not exceed 85% of the reduced 
living allowance; however,
    (B) If a participant is serving in a program that provides room or 
board, the Corporation will consider on a case-by-case basis allowing 
the portion of that living allowance that may be paid using Corporation 
and other Federal funds to be between 85% and 100%.


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) Corporation 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. (1) Grantees must provide to all eligible 
participants who meet the requirements of paragraph (b)(2) of this 
section health care coverage that--
    (i) Provides the minimum benefits determined by the Corporation;
    (ii) Provides the alternative minimum benefits determined by the 
Corporation; or
    (iii) Does not provide all of either the minimum or the alternative 
minimum benefits but that has a fair market value equal to or greater 
than the fair market value of a policy that provides the minimum 
benefits.
    (2) Participant eligibility. A full-time participant is eligible 
for health care benefits if he or she is not otherwise covered by a 
health benefits package 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.
    (3) Corporation share. (i) Except as provided in paragraph 
(b)(3)(ii) of this section, the Corporation will pay up to 85% of the 
cost of health care coverage that includes the minimum or alternative 
minimum benefits and is not excessive in cost.
    (ii) The Corporation will pay no share of the cost of a policy that 
does not provide the minimum or alternative minimum benefits described 
in paragraphs (b)(1)(i) and (b)(1)(ii) of this section.

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 part, 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 project at the same time?

    No. The Corporation will reject an application for a project if an 
application for funding or educational awards for the same project is 
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 how well the program will be able to 
achieve the three impacts mentioned in paragraph (a) of this section as 
demonstrated by the program design, the capacity of the organization to 
carry it out and other factors relating to need. The Corporation will 
also consider the extent to which the program promotes the 
Corporation's goals; and the extent to which the program contributes to 
the overall diversity of programs desired by the Corporation. 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 impacts. The Corporation will consider the extent to 
which the program: (1) Achieves direct and demonstrable results;
    (2) Strengthens communities; and
    (3) Promotes citizenship and increases educational opportunities 
for participants.
    (b) Program Criteria.--(1) Program design. The Corporation will 
consider four factors relating to the program design: (i) The quality 
of the program proposed to be carried out directly by the applicant or 
supported by a grant from the applicant;
    (ii) The innovative aspects of the AmeriCorps program;
    (iii) The feasibility of replicating the program; and
    (iv) 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.
    (2) Organizational capacity. The Corporation will also consider an 
organization's capacity to carry out the program based on--
    (i) The quality of the leadership of the AmeriCorps program;
    (ii) The past performance of the organization or program; and
    (iii) The extent to which the program builds on existing programs.
    (c) 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)(2) 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.
    (d) Contribution to overall diversity of programs funded by the 
Corporation. The Corporation will select programs that will help to 
achieve participant, program type, and geographic diversity across 
programs.
    (e) 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--Evaluation Requirements


Sec. 2522.500  What are the purposes of an evaluation?

    Every evaluation effort should serve to improve program quality, 
examine benefits of service, or fulfill legislative requirements.


Sec. 2522.510  What types of evaluations are States, grant-making 
entities, and programs required to perform?

    All grantees and subgrantees are required to perform internal 
evaluations which are ongoing efforts to assess performance and improve 
quality. Grantees and subgrantees may, but are not required to, arrange 
for independent evaluation which are assessments of program 
effectiveness by individuals who are not directly involved in the 
administration of the program. The cost of independent evaluations is 
allowable.


Sec. 2522.520  What types of internal evaluation activities are 
required of programs?

    Programs are required to: (a) Continuously assess management 
effectiveness, the quality of services provided, and the satisfaction 
of both participants and persons served. Internal evaluation activities 
should seek frequent feedback and provide for quick correction of 
weaknesses. The Corporation encourages programs to use internal 
evaluation methods such as community advisory councils, participant 
advisory councils, peer reviews, quality control inspections, and 
customer and participant surveys;
    (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;
    (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 targeted 
for special economic incentives or otherwise identifiable as having 
high concentrations of low-income people, 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;
    (3) Other information as required by the Corporation; and
    (d) Cooperate fully with all Corporation evaluation activities.


Sec. 2522.530  What types of activities are required of States or 
grantmaking entities to 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;
    (c) Collect from programs and submit to the Corporation the 
descriptive information required in this subpart; and
    (d) Cooperate fully with all Corporation evaluation activities.


Sec. 2522.540  How will the Corporation evaluate individual AmeriCorps 
programs?

    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. 2522.550  What will the Corporation do 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) Study the extent to which national service enables participants 
to afford post-secondary education with fewer student loans;
    (4) 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;
    (5) 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
    (6) 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 targeted 
for special economic incentives or are otherwise identifiable as having 
high concentrations of low-income people, in areas that are 
environmentally distressed 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 Sec. 2522.540. 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 funds?
2523.20  Which Federal agencies may apply for such funds?
2523.30  Must Federal agencies meet the requirements imposed on 
grantees under parts 2521 and 2522 of this chapter?
2523.40  For what purposes should Federal agencies use AmeriCorps 
program funds?
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 funds?

    Yes. Federal agencies may apply for and receive AmeriCorps funds 
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 enter into a grant, 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 funds?

    The Corporation will consider applications only from Executive 
Branch agencies or departments. 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 
grantees under parts 2521 and 2522 of this chapter?

    Yes, except as provided in Sec. 2523.90. 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 funds?

    AmeriCorps funds 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 funds are Federal agencies eligible to 
receive?

    Federal agencies may apply for planning and operating funds 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. Partnerships and consortia must be approved by the 
Corporation.


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 a Corporation-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. A Federal agency is not required to match funds in programs 
that receive support under this chapter. However, Federal agency 
subgrantees are required to match funds in accordance with the 
requirements of Sec. 2521.30(g) and Sec. 2522.240(b)(5) of this 
chapter.


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

    No. Participants in these programs have 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 from a 
Federal agency for each AmeriCorps competition. 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 minimum matching funds required by 
Secs. 2521.30(g), 2522.240(b)(5), 2522.250(a)(4), and 2522.250(b)(2) 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 Sec. 2521.30(a)(3) 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 AND AVAILABILITY OF GRANTS FOR INVESTMENT FOR 
QUALITY AND INNOVATION ACTIVITIES

Sec.
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 
direct and demonstrable 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 Chief Executive Officer, to--
    (A) The community in which the installation is located; or
    (B) A community located within 50 miles of the installation or such 
further distance as the Chief Executive Officer may deem appropriate on 
a case-by-case basis.
    (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 50 miles of the community.
    (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 Chief Executive Officer 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 President 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 President at such time, in such manner, and 
containing such information as required.
    (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 component).
    (b) The Corporation will support innovative service-learning 
programs.
    (c) Application procedures, selection criteria, timing, and other 
requirements will be announced in the Federal Register.

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. 2532.10  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. Any 
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.
    (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 on a 
competitive basis. Application procedures, selection criteria, timing 
and other requirements will be announced in the Federal Register.


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 annual State reports to the 
Corporation?
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 public funds 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 public 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 proselytization.
    (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 in which such entity resides.
    (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 chapter 
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 
chapter 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 must 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 of 
1993 (29 CFR part 825) 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 participants 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. If the grievance alleges fraud or 
criminal activity, it must immediately be brought to the attention of 
the Corporation's inspector general.
    (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. Any decision by the neutral party is advisory and 
is not binding unless both parties agree.
    (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--(1) Arbitrator--(i) Joint selection by parties. 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.
    (ii) Appointment by Corporation. 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.
    (2) Time Limits--(i) Proceedings. An arbitration proceeding must be 
held no later than 45 calendar days after the request for arbitration, 
or, if the arbitrator is appointed by the Chief Executive Officer, the 
proceeding must occur no later than 30 calendar days after the 
arbitrator's appointment.
    (ii) Decision. A decision must be made by the arbitrator no later 
than 30 calendar days after the date the arbitration proceeding begins.
    (3) The cost. 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 attorney's 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. Remedies for a grievance filed under a procedure 
established by a recipient of Corporation assistance may include--
    (1) Prohibition of a placement of a participant; and
    (2) 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--
    (i) Reinstatement of the employee to the position he or she held 
prior to the displacement;
    (ii) Payment of lost wages and benefits;
    (iii) Re-establishment of other relevant terms, conditions and 
privileges of employment; and
    (iv) Any other 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 annual State reports to the 
Corporation?

    (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 chapter and the 
status of the national and community service programs in the State that 
receive assistance under this chapter. A State's annual report must 
include information that demonstrates the State's compliance with the 
requirements of this chapter.
    (b) Local grantees. Each State may require local grantees that 
receive assistance under this chapter 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) 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 calendar 
30 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. 94-6580 Filed 3-22-94; 8:45 am]
BILLING CODE 6820-BA-P