[Federal Register Volume 86, Number 57 (Friday, March 26, 2021)]
[Proposed Rules]
[Pages 16165-16171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05721]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 38

RIN 2900-AR00


Veterans Legacy Grants Program

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: The Department of Veterans Affairs (VA) proposes regulations 
to establish the Veterans Legacy Grants Program (VLGP). VA would 
establish grant application procedures and evaluative criteria for 
determining whether to issue funding to eligible entities to conduct 
cemetery research and produce VLGP educational materials. Educational 
materials would relate the histories of Veterans interred in national, 
State, or Tribal Veterans' cemeteries and would promote community 
engagement with those histories.

DATES: Comments must be received on or before May 25, 2021.

ADDRESSES: Comments may be submitted through www.Regulations.gov or 
mailed to: Director, Legislative and Regulatory Service (42E), 
Department of Veterans Affairs, 810 Vermont Avenue NW, Washington, DC 
20420. Comments should indicate that they are submitted in response to 
``RIN 2900-AR00--Veterans Legacy Grants Program.'' Comments received 
will be available at regulations.gov for public viewing, inspection, or 
copies.

FOR FURTHER INFORMATION CONTACT: Bryce Carpenter, Educational Outreach 
Programs Officer, National Cemetery Administration, Department of 
Veterans Affairs, 810 Vermont Avenue NW, Washington, DC 20420, (202) 
461-5362. (This is not a toll-free telephone number.)

SUPPLEMENTARY INFORMATION: In Public Law 116-107, sec. 1 (Jan. 17, 
2020) (codified at 38 U.S.C. 2400 note), Congress authorized VA to 
establish a grant program to conduct cemetery research and produce 
educational materials for the VLGP. VA proposes to add new 38 CFR 
38.710 through 38.785 to implement this new grant authority.
    The mission of the National Cemetery Administration (NCA) is to 
honor Veterans and their eligible family members with final resting 
places and lasting tributes, thus ensuring that ``No Veteran Ever 
Dies.'' In 2016, the Veterans Legacy Program (VLP) was established to 
support NCA's mission to ensure ``No Veteran Ever Dies'' through 
contract awards to educational entities to conduct cemetery research 
and produce educational tools for the public to utilize and learn about 
the histories of Veterans interred in VA national cemeteries, as well 
as VA grant-funded State and Tribal Veterans' cemeteries. By engaging 
educators, students, researchers, and the public, VLP enabled NCA to 
share the stories of those who served and build an understanding and 
appreciation of the reasons national cemeteries are considered national 
shrines. Through contract awards from 2016 to 2020, VLP funded research 
for 19 projects, which produced more than 573 Veteran biographies, 17 
documentary films about Veterans, and 6 Veterans' cemetery walking 
tours. Additionally, under VLP contracts issued to date, VLP will have 
engaged almost 9,000 kindergarten through high school students, more 
than 200 undergraduate students, nearly 40 graduate students, more than 
50 scholars, and more than 300 teachers.
    As the VLP program grew, VA sought authority to award grants to 
entities rather than request contract proposals from educational 
institutions to carry out this mission-critical function. Public Law 
116-107, sec. 1 (codified at 38 U.S.C. 2400 note), enacted in early 
2020, authorizes VA to make such grants. Under that authority, this 
proposed rule would establish regulations to govern VA's funding of VLP 
projects through more effective and efficient grant awards that would 
be administered by the VLGP. The proposed regulations address the 
purpose and use of grant funds and set out the general process for 
awarding a grant, as well as criteria for evaluating grant 
applications, priorities related to the award of a grant, and other 
general requirements and guidance for administering the VLGP.
    Section 38.710 sets forth the purpose of the VLGP, which is to fund 
projects for research related to national, State, or Tribal Veterans' 
cemeteries, to present such research through site hosting and other 
digital technologies, and to produce educational materials that teach 
about the history of Veterans interred in those cemeteries. Grants may 
also fund projects that promote community engagement with the histories 
of Veterans interred in those locations.

[[Page 16166]]

    Because this is a new VA authority, we propose to define terms in 
Sec.  38.715 that would be referenced in Sec. Sec.  38.710 through 
38.785. For the ``Notice of Funding Availability (NOFA)'' definition, 
we propose to cite to Sec.  38.725, which would include information 
such as application requirements and filing deadlines, as well as basic 
scoring information, timeframes for grant awards and payments, and a 
provision for other requirements that give VA flexibility to determine 
and target areas of focus, according to agency need. We also propose to 
cite to 2 CFR 200.203, which provides guidance for all Federal grants. 
We define generic administrative terms such as ``applicant'' and 
``grantee'' to reflect change in status as an entity moves through the 
grant review process.
    Additionally, in Sec.  38.715, we propose to define the term 
``eligible recipient'' as set forth in Public Law 116-107, sec. 
1(a)(2); define the term ``institution of higher learning'' similar to 
the definition of that term in 38 U.S.C. 3452(f); and define the term 
``local educational agency'' similar to the definition of that term in 
20 U.S.C. 7801(30). Because the definition of ``local educational 
agency'' in sec. 7801(30) also includes the term ``State educational 
agency,'' VA proposes to include it as an eligible recipient for 
Veterans Legacy grants. The public law specifies that an eligible 
recipient can be a ``non-profit entity'' that has a demonstrated 
history of community engagement but did not define that term. We would 
limit the definition of ``non-profit entity'' to mean an organization 
chartered under 26 U.S.C. 501(c)(3). VA proposes to require each non-
profit entity to provide information about its history of community 
engagement as it pertains to projects described in the NOFA publication 
for that year. Flexibility is needed for VA's annual publication of the 
NOFA's based on VA's analysis of grant project needs, emerging trends 
in Veteran histories, and other significant milestone events related to 
military service.
    The statute also allows VA to determine other recipients that may 
be eligible to receive a Veterans Legacy grant, so VA proposes to 
include ``educational institutions'' as defined in 38 U.S.C. 3452(c). 
This term is commonly used to capture the full spectrum of school 
systems that fall outside the scope of institutions of higher learning, 
such as public or private elementary and secondary schools, as well as 
vocational schools and other trade, professional, and scientific 
schools. The inclusion of ``educational institutions,'' as defined in 
38 U.S.C. 3452(c), is necessary given NCA's previous contracting 
experience for Veterans Legacy projects with these entities. VA intends 
to continue the practice of recognizing educational institution 
recipients, which include elementary and secondary schools, as eligible 
entities for Veterans Legacy grant purposes.
    Further, we propose to define terms such as ``educational 
materials'' to clarify one of the purposes of the VLGP, which is to 
utilize the research conducted by grantees to develop instructional 
materials, such as lesson plans and other teaching aids. While these 
teaching aids are contemplated for students from kindergarten through 
the 12th grade, these materials may also be used for outreach events at 
VA national cemeteries. Additionally, we propose to define ``community 
engagement'' to describe the strategic interaction with certain groups 
of people to identify and address issues related to the legacy of 
Veterans.
    VA proposes to annually publish in the Federal Register a NOFA that 
would set out the grant application and other requirements. The Office 
of Management and Budget (OMB) requires the issuance of a NOFA and 
publication of this information to ensure that eligible entities have 
the information required to apply for grants. Proposed Sec.  38.725 
sets out certain provisions that would be included in a NOFA, including 
instructions on how interested parties could apply for a grant. At a 
minimum, we propose the NOFA include application filing requirements, 
deadlines for submission, estimates of the total available funding, and 
the maximum funding availability to a single eligible recipient. For 
example, eligibility for a Veterans Legacy grant may require an entity 
to be accredited to ensure that an educational institution has the 
operational capacity to manage a Federal grant. This type of 
requirement would minimize the risk of default recovery actions posed 
by awarding grants to non-accredited institutions. These components are 
consistent with 2 CFR 200.203, which requires the issuance of a NOFA 
that includes information describing the funding opportunity, eligible 
entities, application submission, application review, and Federal award 
administration. Other information we propose to be imparted in a NOFA 
includes minimum scores that an applicant must receive for VA review, 
timeframes and manner of grant payments, and other information VA deems 
necessary for the application process that is commonly utilized in 
similar Federal educational and research grant programs.
    In Sec.  38.720, we would provide general information about grant 
requirements that limit VLGP grants to eligible entities to the maximum 
funding availability specified in the NOFA. We would clarify that like 
most other educational grants, the VLGP grant is not a course buyout 
for teachers to use as a substitute for course instruction during an 
academic year. The expectation for these grants is to provide maximum 
resources to enable student research on Veterans and to produce that 
research into publicly-accessible formats. Additionally, we would 
clarify that the VLGP grant is not a Veterans' benefit and that 
decisions on grant applications are not subject to appellate review. In 
this section, we would inform applicants that if VA requires a grantee 
to provide matching funds as a condition for receiving a VLGP grant, 
those criteria will be included in the NOFA published in that year.
    In Sec.  38.730, we would provide general information about the 
minimum requirements for grant applications that applicants must 
address to be considered for a VLGP grant. To apply for a VLGP grant, 
applicants would be required to submit a complete grant application 
package through Grants.gov (http://www.grants.gov). Use of this portal 
is a familiar and efficient means for applicants to submit grant 
applications. Applicants would need to provide a project description 
that demonstrates the best approach to accomplish the required results 
set out in the NOFA. The description would have to identify any project 
team partner entities, provide a detailed plan of projected milestones, 
and demonstrate the applicant's ability and capacity to administer the 
grant project. VA would consider an applicant's past experience with 
similar projects as defined by the NOFA or related work in that 
particular field or subject matter. Applicants would need to propose a 
budget of costs and proposed expenditures, to include compensation and 
honoraria. Other budgetary requirements may be included in the NOFA for 
that year. These disclosures would help VA assess the extent to which 
an applicant has considered all aspects of planning and the likelihood 
of successful completion of grant objectives. Further, if matching 
funds are required by the NOFA, the applicant would have to provide 
evidence of secured cash matching in a 1-to-1 ratio or an explanation 
of the applicant's ability to secure commitments to receive such 
funding. In this section, VA also proposes a catch-all provision to 
allow

[[Page 16167]]

for flexibility in setting grant application requirements that would be 
published in the NOFA to tailor projects as needed.
    As proposed under Sec.  38.740, VA would review completed grant 
applications to ensure they meet the minimum criteria proposed in Sec.  
38.730 and score them as specified in the NOFA as published under Sec.  
38.725. Applications would have to be timely submitted and meet the 
minimum application and NOFA requirements, which VA would publish 
annually for grant projects contemplated for that year. The NOFA would 
include information about the scoring process and clarify the minimum 
point totals per scoring category that an applicant must receive to be 
considered for a grant. VA would rate all grant applications against 
each other to determine the likelihood of successful implementation of 
the grant projects published in that year's NOFA and would consider 
other factors to qualify for the grant award, as explained in proposed 
Sec.  38.735. Factors such as an applicant's past performance on a 
prior award, an applicant's fiscal integrity, or risk assessments are 
examples of other considerations that would affect VA's scoring of 
grant applications.
    As proposed under Sec.  38.745, VA may approve VLGP grant 
applications in whole or in part subject to conditions VA deems 
necessary to ensure full flexibility in meeting Departmental or 
programmatic goals. VA may also disapprove an application because it 
does not rank sufficiently high in relation to other applications. 
Further, VA may defer action on applications for reasons that require 
further review or additional time to meet grant requirements, such as 
lack of funds. In all instances, VA would convey decisions in writing 
to applicants on all grant submissions.
    For grant awards, VA proposes in Sec.  38.755 to memorialize the 
awards in an agreement, in accordance with the terms set out in 
Sec. Sec.  38.755 and 38.760 and in the NOFA published for that year. 
As a condition of receiving a VLGP grant, grantees and grantee 
subrecipients (e.g., contractors and other entities utilized by a 
grantee to execute grant requirements) would have to agree to operate 
their programs in accordance with VA regulations in proposed Sec. Sec.  
38.710 through 38.785, Federal regulations in 2 CFR part 200, and the 
information provided in the grant application. Part 200 provides 
uniform guidance and government-wide terms and conditions for the 
management of awards and the administration of Federal grants, and this 
rulemaking provides additional guidance and conditions for the 
administration of VLGP grants in particular. Adherence to the 
government-wide rules would be mandatory, and compliance with the 
additional rules specific to VLGP grants would ensure program integrity 
across all VLGP grants VA awards. Included among those terms would be 
the grantees' compliance with recordkeeping and reporting requirements, 
provided in proposed Sec. Sec.  38.765, 38.775, 38.780, and 38.785 and 
as specified in the Terms and Conditions of the grant agreement. Under 
proposed Sec.  38.765, within 60 days after the last day of the grant 
period, grantees would have to submit a final report to VA that meets 
the requirements set forth in the NOFA.
    Additionally, under proposed Sec.  38.755, upon execution of the 
grant agreement, VA would obligate grant funds and in some cases, as 
provided in proposed Sec.  38.760, would reimburse grantees for costs 
incurred before the effective date of the grant, to the extent such 
costs are authorized by VA in the NOFA or the grant agreement or 
authorized subsequently by VA in writing should the need arise.
    VA also proposes to include withdrawal provisions in Sec.  38.750. 
Applicants would be able to submit a request in writing to the VA point 
of contact specified in the NOFA published for that year to withdraw 
their application from consideration. Applicants would be required to 
provide a rationale for the withdrawal request. VA recognizes that the 
potential pool of grant applicants usually operates with limited 
funding and that schools, non-profit organizations, and institutions of 
higher learning may be subject to competing interests, especially 
during times of unforeseen crisis.
    As proposed in Sec.  38.770, if VA determines that recovery of 
funds is necessary for violations of the grant agreement or 
unauthorized uses of grant funds, VA would notify grantees in writing 
of the intent to recover grant funds. Grantees would have 30 days to 
submit documentation refuting the proposed recovery, which VA would 
review for a final determination. If VA makes a final decision that 
action would be taken to recover grant funds from the grantee, VA would 
stop further payments of grant funds under this part until the grant 
funds are recovered and the condition that led to the decision to 
recover grant funds has been resolved. We believe these measures would 
help safeguard Federal funds and ensure appropriate use of the VLGP 
grant funds awarded.
    As part of VA's duty to ensure fiscal responsibility, we propose in 
Sec.  38.775 to conduct site visits to grantee locations to review 
grantee accomplishments and management control systems. In addition, VA 
may conduct as needed inspections of grantee records to determine 
compliance with the provisions of this part. All visits and evaluations 
would be performed with minimal disruption to the grantee to the extent 
practicable. Further, as proposed in Sec.  38.780, VA would enforce 2 
CFR part 200 regulations to ensure all VLGP grant recipients comply 
with requirements of the Single Audit Act of 1996 and use a compliant 
financial management system based on OMB cost principles. As proposed 
in Sec.  38.785, grantees would have to produce upon VA's request 
records maintained in accordance with 2 CFR 200.333.

Executive Orders 12866, 13563

    Executive Orders 12866 and 13563 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, when 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, and other advantages; distributive impacts; 
and equity). Executive Order 13563 (Improving Regulation and Regulatory 
Review) emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
The Office of Information and Regulatory Affairs has determined that 
this proposed rule is not a significant regulatory action under 
Executive Order 12866.
    VA's impact analysis can be found as a supporting document at 
http://www.regulations.gov, usually within 48 hours after the 
rulemaking document is published. Additionally, a copy of the 
rulemaking and its Regulatory Impact Analysis are available on VA's 
website at http://www.va.gov/orpm/, by following the link for ``VA 
Regulations Published From FY 2004 Through Fiscal Year to Date.''

Paperwork Reduction Act

    This proposed rule contains provisions constituting collections of 
information under the provisions of the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501-3521) that require approval by OMB. Accordingly, under 
44 U.S.C. 3507(d), VA has submitted a copy of this rulemaking action to 
OMB for review.
    OMB assigns control numbers to collections of information it 
approves. VA may not conduct or sponsor, and a

[[Page 16168]]

person is not required to respond to, a collection of information 
unless it displays a currently valid OMB control number. Proposed 38 
CFR 38.730 contains collections of information under the Paperwork 
Reduction Act of 1995. If OMB does not approve the collections of 
information as requested, VA will immediately remove the provisions 
containing collections of information or take such other action as is 
directed by OMB.
    Comments on the collections of information contained in this 
proposed rule should be submitted to the Office of Management and 
Budget, Attention: Desk Officer for the Department of Veterans Affairs, 
Office of Information and Regulatory Affairs, Washington, DC 20503. 
Send your comments and suggestions on this information collection by 
the date indicated in the DATES section to the Desk Officer for the 
Department of the Veterans Affairs at OMB-OIRA at (202) 395-5806 (fax) 
or [email protected] (email). Please indicate ``Attention: 
This is a new OMB Control Number request.'' Comments should indicate 
that they are submitted in response to ``RIN 2900-AR00.''
    OMB is required to make a decision concerning the collections of 
information contained in this proposed rule between 30 and 60 days 
after publication of this document in the Federal Register. Therefore, 
a comment to OMB is best assured of having its full effect if OMB 
receives it within 30 days of publication. This does not affect the 
deadline for the public to comment on the proposed rule. Notice of OMB 
approval for this information collection will be published in a future 
Federal Register document.
    The Department considers comments by the public on proposed 
collections of information in--
     Evaluating whether the proposed collections of information 
are necessary for the proper performance of the functions of the 
Department, including whether the information will have practical 
utility;
     Evaluating the accuracy of the Department's estimate of 
the burden of the proposed collections of information, including the 
validity of the methodology and assumptions used;
     Enhancing the quality, usefulness, and clarity of the 
information to be collected; and
     Minimizing the burden of the collections of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submission of responses.
    The collections of information contained in 38 CFR 38.730 are 
described immediately following this paragraph.
    Title: SF-424 Application for Federal Assistance.
     Summary of collection of information: The new collection 
of information in proposed 38 CFR 38.730 would require VLGP grant 
applicants to submit the SF-424 as a minimum requirement to qualify for 
a VLGP grant.
     Description of the need for information and proposed use 
of information: The collection of information is necessary to determine 
applicant eligibility for a VLGP grant. VA will use this information to 
score completed grant applications.
     Description of likely respondents: Members of the public, 
institutions, and non-profits that are interested in applying for VA 
grants.
     Estimated number of respondents: 20 per year.
     Estimated frequency of responses: Annually.
     Estimated average burden per response: 1 hour.
     Estimated annual cost to respondents for the hour burdens 
for collections of information: According to the U.S. Bureau of Labor 
Statistics Mean Hourly Earnings, the cost to each respondent is $25.72, 
making the total cost for respondents an estimated $514.40 (20 burden 
hours x $25.72 per hour). (Source: May 2019 BLS National Occupational 
Employment and Wage Estimates, Code: 00-0000, All Occupations: https://www.bls.gov/oes/current/oes_nat.htm#00-0000)
     Estimated total annual reporting and recordkeeping burden: 
There is no anticipated recordkeeping burden.
     Estimated cost to the Federal Government: There is no 
projected incremental increase in the cost burden to the Federal 
Government with the requirement of the SF-424, Application for Federal 
Assistance. NCA currently has existing personnel, systems, and 
processes (or other resources) in place to receive and review their 
grant applications. Any additional cost for agency system development, 
maintenance, and enhancements should not be attributed to use of SF-
424, and therefore its use is not expected to alter annualized Federal 
costs.

Regulatory Flexibility Act

    The Secretary hereby certifies that this proposed rule would not 
have a significant economic impact on a substantial number of small 
entities as they are defined in the Regulatory Flexibility Act, 5 
U.S.C. 601-612. Receiving or not receiving a grant is unlikely to have 
a significant economic impact on small entity applicants, specifically 
non-profit institutions. Therefore, pursuant to 5 U.S.C. 605(b), the 
initial and final regulatory flexibility analysis requirements of 5 
U.S.C. 603 and 604 do not apply.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and Tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any 1 year. This proposed rule would have no such effect 
on State, local, and Tribal governments, or on the private sector.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance number and title for the 
program affected by this document is 64.204, Veterans Legacy Grant 
Program.

List of Subjects in 38 CFR Part 38

    Administrative practice and procedure, Cemeteries, Veterans.

Signing Authority

    Denis McDonough, Secretary of Veterans Affairs, approved this 
document on March 12, 2021 and authorized the undersigned to sign and 
submit the document to the Office of the Federal Register for 
publication electronically as an official document of the Department of 
Veterans Affairs.

Luvenia Potts,
Regulation Development Coordinator, Office of Regulation Policy & 
Management, Office of the Secretary, Department of Veterans Affairs.

    For the reasons set out in the preamble, VA proposes to amend 38 
CFR part 38 as follows:

PART 38--NATIONAL CEMETERIES OF THE DEPARTMENT OF VETERANS AFFAIRS

0
1. The authority citation for part 38 is revised to read as follows:

    Authority:  38 U.S.C. 107, 501, 512, 2306, 2400, 2402, 2403, 
2404, 2407, 2408, 2411, 7105.


0
2. Add an undesignated center heading, ''Veterans Legacy Grants 
Program,'' and Sec. Sec.  38.710 through 38.785 to read as follows:
* * * * *

Veterans Legacy Grants Program

Sec.

[[Page 16169]]

38.710 Purpose and use of grant funds.
38.715 Definitions.
38.720 Grants--general.
38.725 Notice of Funding Availability (NOFA).
38.730 Applications.
38.735 Additional factors for deciding applications.
38.740 Scoring and selection.
38.745 Disposition of applications.
38.750 Withdrawal of grant application.
38.755 Grant agreement.
38.760 Payments under the grant.
38.765 Grantee reporting requirements.
38.770 Recovery of funds by VA.
38.775 Compliance review requirements.
38.780 Financial management.
38.785 Recordkeeping.

Veterans Legacy Grants Program


Sec.  38.710   Purpose and use of grant funds.

    Sections 38.710 through 38.785 establish the Veterans Legacy Grants 
Program (VLGP). Under this program, VA may provide grants to eligible 
entities defined in Sec.  38.715 to:
    (a) Conduct research related to national, State, or Tribal 
Veterans' cemeteries;
    (b) Produce educational materials that teach about the history of 
Veterans interred in national, State, or Tribal Veterans' cemeteries;
    (c) Contribute to the extended memorialization of Veterans interred 
in national, State, or Tribal Veterans' cemeteries by presenting 
grantee research on national, State, or Tribal Veterans' cemeteries 
through site hosting and other digital technologies; and,
    (d) Promote community engagement with the histories of Veterans 
interred in national, State, or Tribal Veterans' cemeteries.

(Authority: 38 U.S.C. 501(d), 2400 note)


Sec.  38.715   Definitions.

    For purposes of this part and any Notice of Funding Availability 
(NOFA) issued pursuant to this part:
    (a) Applicant means an eligible entity that submits a VLGP grant 
application that is announced in a NOFA.
    (b) Community engagement means strategic interaction with 
identified groups of people, whether they are connected by geographic 
location, special interest, or affiliation, to identify and address 
issues related to the legacy of Veterans.
    (c) Eligible recipient (or entity) means one of the following:
    (1) An institution of higher learning;
    (2) A local educational agency;
    (3) A non-profit entity that the Secretary determines has a 
demonstrated history of community engagement that pertains to the 
projects described in the relevant NOFA;
    (4) An educational institution; or
    (5) Another recipient (or entity) the Secretary deems appropriate.
    (d) Institution of higher learning (IHL) means a college, 
university, or similar institution, including a technical or business 
school, offering postsecondary level academic instruction that leads to 
an associate or higher degree if the school is empowered by the 
appropriate State education authority under State law to grant an 
associate or higher degree.
    (e) Educational institution means any public or private elementary 
school, secondary school, vocational school, correspondence school, 
business school, junior college, teachers' college, college, normal 
school, professional school, university, or scientific or technical 
institution, or other institution furnishing education for adults.
    (f) Local educational agency (LEA) means any public agency or 
authority, including a state educational agency, that has 
administrative control or direction over public elementary or secondary 
schools under 20 U.S.C. 7801(30). The term would also include any 
Bureau of Indian Education school, as covered in 20 U.S.C. 7801(30)(C).
    (g) State educational agency (SEA) means the agency primarily 
responsible for the State supervision of public elementary schools and 
secondary schools.
    (h) Non-profit entity means any organization chartered under 26 
U.S.C. 501(c)(3).
    (i) Educational materials means a framework of digital 
instructional materials relevant to the grade level of K-12 students 
involved (e.g., lesson plans) that can be used for outreach and other 
purposes.
    (j) Grantee means an eligible recipient that is awarded a VLGP 
grant under this part.
    (k) Notice of Funding Availability (NOFA) means a Notice of Funding 
Availability published in the OMB-designated government-wide website in 
accordance with Sec.  38.725 and 2 CFR 200.203 regulations.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.720   Grants--general.

    (a) Grants. VA may award VLGP grants to eligible recipients 
selected under Sec.  38.730 of this part.
    (b) Maximum amounts. The maximum grant amount to be awarded to each 
grantee and the total maximum amount for all grants will be specified 
in the annually published NOFA.
    (c) Number of grants awarded. The number of grants VA will award 
will depend on the total amount of grant funding available at VA's 
discretion and the funding amount awarded to each grantee, which is 
based on each grantee's proposal.
    (d) Grant is not a course buyout. The grant funds shall not be used 
to substitute a class that an instructor is required to teach during an 
academic year.
    (e) Matching requirement. VA will determine whether a grantee must 
provide matching funds as a condition of receiving a VLGP grant as set 
forth in the NOFA.
    (f) Grant is not Veterans' benefit. The VLGP grant is not a 
Veterans' benefit. VA decisions on VLGP applications are final and not 
subject to the same appeal rights as Veterans' benefits decisions.

(Authority: 38 U.S.C. 501(d), 2400 note)


Sec.  38.725  Notice of Funding Availability (NOFA).

    When funds are available for VLGP grants, VA will publish a NOFA in 
the Federal Register and in Grants.gov (http://www.grants.gov). The 
NOFA will identify:
    (a) The location for obtaining VLGP grant applications, including 
the specific forms that will be required;
    (b) The date, time, and place for submitting completed VLGP grant 
applications;
    (c) The estimated total amount of funds available and the maximum 
funds available to a single grantee;
    (d) The minimum number of total points and points per category that 
an applicant must receive to be considered for a grant and information 
regarding the scoring process;
    (e) Any timeframes and manner for payments under the VLGP grant;
    (f) A description of eligible entities or other eligibility 
requirements necessary to receive the grant; and
    (g) Other information necessary for the VLGP grant application 
process, as determined by VA, including contact information for the 
office that will oversee the VLGP within VA.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.730   Applications.

    To apply for a grant, an eligible entity must submit to VA a 
complete application package, as described in the NOFA. Applications 
will be accepted only through Grants.gov (http://www.grants.gov). A 
complete grant application, as further described in the NOFA, includes 
standard forms specified in the NOFA and the following:
    (a) Project Description. Each project must serve a minimum of one 
VA national cemetery, State Veterans'

[[Page 16170]]

cemetery, or Tribal Veterans' cemetery. The applicant must provide a 
narrative project description that demonstrates the best approach for 
attaining required results as set forth in the NOFA;
    (b) Project Team. If applicable, the applicant must provide a 
narrative description of anticipated project team and any work 
partner(s), including the responsibilities of the principal 
investigator, the co-principal investigators, and any extramural 
partner entity;
    (c) Project plan. The applicant must include a detailed timeline 
for the tasks outlined in the project description and proposed 
milestones;
    (d) Expertise and capacity. The applicant must provide a 
description of the applicant's ability and capacity to administer the 
project. This may include evidence of past experience with projects 
similar in scope as defined by the NOFA, to include descriptions of the 
engagement model, examples of successful leadership and management of a 
project of similar scale and budget (or greater), or related work in 
this field;
    (e) Match. If specified as a requirement in the NOFA, the applicant 
must provide evidence of secured cash matching (1:1) funds or of its 
ability to secure commitments to receive such funds;
    (f) Proposed Budget. The applicant's proposed budget should 
identify all costs and proposed expenditures, to include additional 
compensation and honoraria (and to whom); equipment costs; production 
costs; and travel costs. The applicant must provide a budget that 
specifies costs and payments, as well as indirect and other relevant 
costs. The budget will be submitted in a format specified in the NOFA; 
and
    (g) Additional information. Any additional information as deemed 
appropriate by VA and set forth in the NOFA.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.735   Additional factors for deciding applications.

    (a) Applicant's performance on prior award. VA may consider the 
applicant's noncompliance with requirements applicable to prior VA or 
other Federal agency awards as reflected in past written evaluation 
reports and memoranda on performance and the completeness of required 
prior submissions.
    (b) Applicant's fiscal integrity. Applicants must meet and maintain 
standards of fiscal integrity for participation in Federal grant 
programs as reflected in 2 CFR 200.205.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.740   Scoring and selection.

    (a) Scoring. VA will only score complete applications received from 
eligible applicants by the deadline established in the NOFA. The 
applications must meet the minimum criteria set forth in Sec.  38.730 
and will be scored as specified in the NOFA, as set forth in Sec.  
38.725.
    (b) Selection of recipients. All complete applications will be 
scored using the criteria in paragraph (a) of this section and ranked 
in order of highest to lowest total score. NOFA announcements may also 
clarify the selection criteria in paragraph (a). The relative weight 
(point value) for each selection will be specified in the NOFA. VA will 
award any VLGP grant on the primary basis of the scores but will also 
consider a risk assessment evaluation.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.745   Disposition of applications.

    (a) Disposition of applications. Upon review of an application and 
dependent on availability of funds, VA will:
    (1) Approve the application for funding, in whole or in part, for 
such amount of funds, and subject to such conditions that VA deems 
necessary or desirable;
    (2) Determine that the application is of acceptable quality for 
funding, in that it meets minimum criteria, but disapprove the 
application for funding because it does not rank sufficiently high in 
relation to other applications to qualify for an award based on the 
level of funding available, or for another reason as provided in the 
decision document; or
    (3) Defer action on the application for such reasons as lack of 
funds or a need for further review.
    (b) Notification of disposition. VA will notify the applicant in 
writing of the disposition of the application. A signed grant agreement 
form, as defined in Sec.  38.755, will be issued to the applicant of an 
approved application.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.750   Withdrawal of grant application.

    Applicants may withdraw a VLGP application submitted through 
Grants.gov by writing the specified VA point of contact and including 
rationale for the withdrawal request within a certain number of days as 
determined in the NOFA.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.755   Grant agreement.

    After a grant is approved for award, VA will draft a grant 
agreement to be executed by VA and the grantee. Upon execution of the 
grant agreement, VA will obligate the grant amount. The grant agreement 
will provide that the recipient agrees, and will ensure that each 
subrecipient (if applicable) agrees, to:
    (a) Operate the program in accordance with the provisions of 
Sec. Sec.  38.710 through 38.785, 2 CFR part 200, and the applicant's 
VLGP application;
    (b) Comply with such other terms and conditions, including 
recordkeeping and reports for program monitoring and evaluation 
purposes, as VA may establish in the Terms and Conditions of the grant 
agreement for purposes of carrying out the VLGP project in an effective 
and efficient manner; and
    (c) Provide additional information that VA requests with respect 
to:
    (1) Program effectiveness, as defined in the Terms and Conditions 
of the grant agreement;
    (2) Compliance with the Terms and Conditions of the grant 
agreement; and
    (3) Criteria for evaluation, as defined in the Terms and Conditions 
of the grant agreement.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.760   Payments under the grant.

    (a) Grantees are to be paid in accordance with the timeframes and 
manner set forth in the NOFA.
    (b) Availability of grant funds. Federal financial assistance will 
become available subsequent to the effective date of the grant as set 
forth in the grant agreement. Recipients may be reimbursed for costs 
resulting from obligations incurred before the effective date of the 
grant, if such costs are authorized by VA in the NOFA or the grant 
agreement or authorized subsequently by VA in writing, and otherwise 
would be allowable as costs of the grant under applicable guidelines, 
regulations, and terms and conditions of the grant agreement.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.765   Grantee reporting requirements.

    (a) Final report. All grantees must submit to VA, not later than 60 
days after the last day of grant period for which a grant is provided 
under this part, a final report that meets the requirement set forth in 
the NOFA.
    (b) Additional reporting. Additional reporting requirements may be 
requested by VA to allow VA to assess program effectiveness.


[[Page 16171]]


(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.770   Recovery of funds by VA.

    (a) Recovery of funds. VA may recover from the grantee any funds 
that are not used in accordance with a grant agreement. If VA decides 
to recover such funds, VA will issue to the grantee a notice of intent 
to recover grant funds, and the grantee will then have 30 days to 
return the grant funds or submit documentation demonstrating why the 
grant funds should not be returned. After review of all submitted 
documentation, VA will determine whether action will be taken to 
recover the grant funds.
    (b) Prohibition of additional VLGP payments. When VA makes a final 
decision to recover grant funds from the grantee, VA must stop further 
payments of grant funds under this part until the grant funds are 
recovered and the condition that led to the decision to recover grant 
funds has been resolved.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.775   Compliance review requirements.

    (a) Site visits. VA may conduct, as needed, site visits to grantee 
locations to review grantee accomplishments and management control 
systems.
    (b) Inspections. VA may conduct, as needed, inspections of grantee 
records to determine compliance with the provisions of this part. All 
visits and evaluations will be performed with minimal disruption to the 
grantee to the extent practicable.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.203)


Sec.  38.780   Financial management.

    (a) Compliance. All recipients will comply with applicable 
requirements of the Single Audit Act Amendments of 1996, as implemented 
by 2 CFR part 200.
    (b) Financial Management. All grantees must use a financial 
management system that complies with 2 CFR part 200. Grantees must meet 
the applicable requirements of the Office of Management and Budget's 
regulations on Cost Principles at 2 CFR 200.400-200.475.

 (Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.400-200.475)


Sec.  38.785  Recordkeeping.

    Grantees must ensure that records are maintained in accordance with 
2 CFR 200.333. Grantees must produce such records at VA's request.

(Authority: 38 U.S.C. 501(d), 2400 note and 2 CFR 200.333)

[FR Doc. 2021-05721 Filed 3-25-21; 8:45 am]
BILLING CODE 8320-01-P