[Federal Register Volume 89, Number 93 (Monday, May 13, 2024)]
[Rules and Regulations]
[Pages 41312-41319]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-09862]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 80

RIN 2900-AR68


Veteran and Spouse Transitional Assistance Grant Program

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: The Department of Veterans Affairs (VA) is implementing 
provisions in the Johnny Isakson and David P. Roe, M.D. Veterans Health 
Care and Benefits Improvement Act to establish the Veteran and Spouse 
Transitional Assistance Grant Program (VSTAGP). This final rule 
addresses general grant application procedures and requirements to 
apply for VSTAGP grant funding and adopts the proposed rule with some 
corrections and clarifying changes.

DATES: This rule is effective June 12, 2024.

FOR FURTHER INFORMATION CONTACT: Lillian Miesemer, Senior Management 
and Program Analyst, Outreach, Transition and Economic Development, 
Veterans Benefits Administration, 1800 G Street SW, Washington, DC 
20006; 202-461-9558 (this is not a toll-free telephone number). If you 
use a telecommunications device for the deaf (TDD) or a text telephone 
(TTY), call the Federal Relay Service (FRS) toll-free at 1-800-877-
8339.

SUPPLEMENTARY INFORMATION: On July 5, 2023, VA published a proposed 
rule in the Federal Register (88 FR 42891) that would establish the 
VSTAGP program in 38 CFR 80.1 through 80.17 pursuant to section 4304 of 
Public Law 116-315, the Johnny Isakson and David P. Roe, M.D. Veterans 
Health Care and Benefits Improvement Act of 2020, which was enacted on 
January 5, 2021.
    VA provided a 30-day comment period, which ended on August 4, 2023. 
VA received four comments on the proposed rule. One of the four 
comments was strongly in favor of the rule. We thank the commenter for 
their support and do not make any changes based on that comment.
    The second of the four comments suggested grant recipients must 
have access to separating Service members and recently separated 
Service members. More specifically, the commenter advocated in favor of 
a means by which grant recipients can identify the geographical areas 
where separating Service members have relocated. Additionally, the 
commenter suggested that the Department of Defense (DoD) and VA should 
collaborate to encourage those enrolled in the DoD Transition 
Assistance Program (TAP) to take advantage of opportunities provided by 
recipients of grants under VA's VSTAGP program.
    As noted in the proposed rule, a Notice of Funding Opportunity 
(NOFO) will be posted at Grants.gov (https://www.grants.gov) in 
accordance with Sec.  80.4 of the proposed rule. The NOFO will require 
applicants for grant funding to submit proposals addressing detailed 
outreach strategies appropriate and tailored to the specific service 
delivery area served by the applicant. To meet this requirement, VA 
will recommend in the NOFO that applicants conduct an environmental 
scan as a component or means of strategic planning to gather 
information about available supports and services within the proposed 
geographic area to be served. Furthermore, the NOFO will require 
applicants for grant funding to demonstrate how their proposed program 
will promote active outreach to, recruitment of, and engagement with 
former members of the U.S. Armed Forces who are separated, retired, or 
discharged, as well as their spouses. Applicants for grant funding must 
design, develop, and execute program promotion and awareness activities 
as a part of their outreach. The NOFO will require applicants for grant 
funding to submit proposals explaining how their program will reach out 
to potentially eligible individuals, and how they will collaborate with 
local entities that may serve former members of the U.S. Armed Forces 
as well as their spouses (e.g., local military bases, VA Regional 
Offices, Veterans Service Organizations (VSO), faith-based 
organizations, social service agencies, community-based clinics, other 
job-training organizations), within their proposed geographic service 
delivery area to introduce the program to eligible participants. VA 
will encourage applicants to reach out to unique sub-groups of veterans 
and/or spouses who are likely experiencing inequitable access to jobs, 
job training programs, and/or other employment services in the proposed 
service area.
    Thus, VA will not be providing information regarding the 
geographical areas where separating Service members have relocated. 
Grant applicants will have to design, develop, and execute program 
promotion and awareness activities as part of their proposal, to 
include strategies for reaching the relevant population within their 
proposed geographic service delivery area. VA has no specific plans to 
address opportunities provided by VSTAGP grant recipients as part of 
the TAP curriculum but, as noted above, intends that grant applicants 
will be responsible for developing strategies for promotion and 
awareness of such services. In any event, the comments relating to how 
applicants are supposed to identify certain areas or populations to 
serve, as well as the comments relating to encouraging TAP participants 
to take advantage of opportunities resulting from VSTAGP grants, are 
beyond the scope of the rulemaking. We do not make any changes based on 
these comments.
    The third and fourth comments were supportive of the proposed rule. 
The comments advocated for widespread accessibility of applications and 
establishment of clear evaluation criteria. VA agrees with both 
comments. To address the comment regarding the accessibility of 
applications, as required in Sec.  80.4 of the proposed rule, and in 
accordance with 2 CFR 200.204, VA will publish a NOFO at Grants.gov 
(https://www.grants.gov). The NOFO will provide clear application 
procedures including detailed guidance and resources to help applicants 
apply for funding and navigate the application process.
    Additionally, to address the comment regarding clear application 
criteria the NOFO will include detailed scoring criteria as required in 
Sec.  80.7, with clearly identified point values for each evaluation 
criterion. VA will establish procedures to assess the technical merit 
of applications to ensure an objective review of applications. The NOFO 
will contain information regarding the evaluative criteria that will be 
used by the review panel to evaluate submitted applications to help 
applicants understand the standards against which an application will 
be scored. VA will execute a merit review process for all responsive 
applications, with the objective of selecting recipients most likely to 
be successful in delivering results based on the program objectives. 
See 2 CFR 200.205. This will ensure that: (1) applicants for grant 
funding have the opportunity to submit

[[Page 41313]]

proposals responsive to the solicitation, and (2) the application 
review process is clear and transparent to applicants. Applicants will 
be able to view all application requirements in the NOFO once published 
to Grants.gov (https://www.grants.gov). We do not make any changes 
based on these comments.
    VA is clarifying the definition of the term ``institution of higher 
education (IHE),'' as that term was defined in Sec.  80.2(f) of the 
proposed rule as one of the various listed entities that would be 
eligible to receive a VSTAGP grant. In the proposed rule, VA had 
defined the term ``IHE'' in a general manner that referred to certain 
``public or private educational institution[s].'' In the final rule, VA 
is clarifying that private educational institutions must be nonprofit. 
Specifically, VA adopts the established definition of IHE specified in 
20 U.S.C. 1001 (``General definition of institution of higher 
education''), which provides that, to qualify, an educational 
institution must be ``a public or other nonprofit institution,'' id. 
1001(a)(4); see id. 1001(b)(1). Clarifying that ``IHE'' refers to only 
public or other nonprofit educational institutions ensures that the IHE 
definition is aligned with the definitions of other possible grant 
recipients, which include government entities, nonprofit organizations, 
and nonprofit faith-based organizations. VA believes that applying 
standards to IHEs that are similar to those applied to other possible 
grant recipients will promote greater consistency in carrying out the 
purposes of this grant program in different locations nationwide.
    In the heading for new part 80 and in Sec.  80.1, we are correcting 
the erroneous reference to ``Veteran Transitional Assistance Grant 
Program'' in the proposed rule to ``Veteran and Spouse Transitional 
Assistance Grant Program''. In Sec. Sec.  80.2(h)(3), 80.7(b), 80.9 and 
80.14, we are changing the use of ``may'' to ``will'' or ``must'' to be 
more definitive in those provisions. In Sec.  80.5, we are also 
clarifying that there will be a limit of one application per submitting 
organization serving the same participant population and in the same 
geographic service area. In the third sentence of Sec.  80.7(b), we are 
correcting the erroneous reference to ``each selection'' in the 
proposed rule to ``each criterion''.
    We also note that the proposed rule included two provisions which 
we inadvertently did not address in the preamble. In Sec.  80.2(k), we 
define the term ``In-demand industry sector or occupation'' because the 
term is likely to be used in NOFOs. In Sec.  80.3(f), we explain that a 
grant must be in an amount that does not exceed 50 percent of the 
amount required by the grantee to provide the required services.
    We are making technical changes in Sec.  80.12(c) as proposed to 
remove material that is precatory, informational, or more appropriate 
for inclusion in the NOFO. We are thus removing the second sentence of 
the introductory text, paragraphs (1) and (2), and the second sentence 
of paragraph (3), and we are moving the first sentence of paragraph 
(c)(3), requiring grantees to participate in a VA-led evaluation, to 
the introductory text of paragraph (c).
    VA adopts the proposed rule as final, with changes as discussed 
above.

Executive Orders 12866, 13563 and 14094

    Executive Order 12866 (Regulatory Planning and Review) directs 
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. Executive Order 14094 (Modernizing 
Regulatory Review) supplements and reaffirms the principles, 
structures, and definitions governing contemporary regulatory review 
established in Executive Orders 12866 and 13563. The Office of 
Information and Regulatory Affairs has determined that this rulemaking 
is a significant regulatory action under Executive Order 12866, as 
amended by Executive Order 14094. The Regulatory Impact Analysis 
associated with this rulemaking can be found as a supporting document 
at www.regulations.gov.

Regulatory Flexibility Act

    The Secretary hereby certifies that this final rule will 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. Therefore, 
pursuant to 5 U.S.C. 605(b), the initial and final regulatory 
flexibility analysis requirements of 5 U.S.C. 603-604 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 one year. This final rule will have no such effect on State, local 
and Tribal governments or on the private sector.

Paperwork Reduction Act

    This final rule contains provisions constituting three new 
collections of information and revisions to several current/valid 
collections of information under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501-3521). Both the new and revised collections of 
information require approval by the Office of Management and Budget 
(OMB). Accordingly, under 44 U.S.C. 3507(d), VA has submitted a copy of 
this rulemaking action to OMB for review and approval. VA received no 
comments on the revised collections of information.
    OMB has received the revised collections of information. OMB's 
receipt of the revised collections of information is not an approval to 
conduct or sponsor an information collection under the Paperwork 
Reduction Act of 1995. In accordance with 5 CFR 1320, the revised 
collections of information associated with this rulemaking are not 
approved by OMB at this time. OMB's approval of the revised collections 
of information will occur within 30 days after the final rulemaking 
publishes. If OMB does not approve the new collections of information 
as requested, VA will immediately remove the provision containing the 
new collections of information or take such other action as is directed 
by OMB.
    This final rule also includes a provision constituting three new 
collections of information under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501-3521). The new collections of information require 
approval by the Office of Management and Budget (OMB) and the 
assignment of a new OMB Control Number. Accordingly, under 44 U.S.C. 
3507(d), VA has submitted a copy of this rulemaking to OMB for review 
and approval. VA received no comments on the new collections of 
information.
    OMB Control Numbers 2900-0928, 2900-0929, and 2900-0930 have been 
assigned to the new collections of information associated with this 
final

[[Page 41314]]

rule. Assignment of these new OMB control numbers is not an approval to 
conduct or sponsor an information collection under the Paperwork 
Reduction Act of 1995. In accordance with 5 CFR 1320, the new 
collections of information associated with this rulemaking are not 
approved by OMB at this time. OMB's approval of the new collections of 
information will occur within 30 days after the final rulemaking 
publishes. If OMB does not approve the new collections of information 
as requested, VA will immediately remove the provision containing new 
collections of information or take such other action as is directed by 
OMB.
    The collections of information contained in 38 CFR 80.5, 80.12 and 
80.16 are described immediately following this paragraph.

    Title: SF-424 Application for Federal Assistance.
    OMB Control No: 4040-0004.
     Summary of collection of information: The new collection 
of information in proposed 38 CFR 80.5 would require VSTAGP grant 
applicants to submit the SF-424 as a minimum requirement to qualify for 
a VSTAGP grant.
     Description of the need for information and proposed use 
of information: The collection of information would be necessary to 
determine applicant eligibility for a VSTAGP grant. VA would use this 
information to score completed grant applications.
     Description of likely respondents: Eligible recipients, as 
defined in proposed Sec.  80.2, that are interested in applying for a 
VSTAGP grant.
     Estimated number of respondents: 200 per year.
     Estimated frequency of responses: Annually.
     Estimated average burden per response: 1 hour.
     Estimated total annual reporting and recordkeeping burden: 
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 would be 
$28.01, making the total cost for respondents an estimated $5,602.00 
(200 respondents x 1 burden hour x $28.01 per hour). (Source: May 2021 
BLS National Occupational Employment and Wage Estimates, Code: 00-0000, 
All Occupations: https://www.bls.gov/oes/current/oes_nat.htm#00-0000).
     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. OTED 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 the use of 
SF-424, and therefore its use is not expected to alter annualized 
Federal costs.

    Title: SF-424A Budget Information--Non-Construction Programs.
    OMB Control No: 4040-0006.
     Summary of collection of information: The new collection 
of information in proposed 38 CFR 80.5 would require VSTAGP grant 
applicants to submit the SF-424A as a minimum requirement to qualify 
for a VSTAGP grant.
     Description of the need for information and proposed use 
of information: The collection of information would be necessary to 
determine applicant eligibility for a VSTAGP grant, to document 
proposed costs, and to determine allowability of proposed costs. VA 
would use this information to score completed grant applications and 
for general management of VSTAGP awards.
     Description of likely respondents: Eligible recipients, as 
defined in proposed Sec.  80.2, that are interested in applying for a 
VSTAGP grant.
     Estimated number of respondents: 200 per year.
     Estimated frequency of responses: Annually.
     Estimated average burden per response: 3 hours.
     Estimated total annual reporting and recordkeeping burden: 
3 hours.
     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 would be 
$84.03, making the total cost for respondents an estimated $16,806.00 
(200 respondents x 3 burden hours x $28.01 per hour). (Source: May 2021 
BLS National Occupational Employment and Wage Estimates, Code: 00-0000, 
All Occupations: https://www.bls.gov/oes/current/oes_nat.htm#00-0000)
     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-424A, Budget Information--
Non-Construction Programs. OTED 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 
the use of the SF-424A, and therefore its use is not expected to alter 
annualized Federal costs.

    Title: 4040-0010 Project/Performance Site Location(s).
    OMB Control No: 4040-0010.
     Summary of collection of information: The new collection 
of information in proposed 38 CFR 80.5 would require VSTAGP grantees to 
submit the primary location and any other locations where project 
activity would occur.
     Description of the need for information and proposed use 
of information: The collection of information would be necessary to 
ensure adequate geographic coverage.
     Description of likely respondents: Eligible recipients, as 
defined in proposed Sec.  80.2, that are interested in applying for a 
VSTAGP grant.
     Estimated number of respondents: 200 per year.
     Estimated frequency of responses: Annually.
     Estimated average burden per response: 5 minutes.
     Estimated total annual reporting and recordkeeping burden: 
5 minutes.
     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 would be 
$2.33, making the total cost for respondents an estimated $466.83 (200 
respondents x ((5 burden minutes x $28.01 per hour)/60 minutes)). 
(Source: May 2021 BLS National Occupational Employment and Wage 
Estimates, Code: 00-0000, All Occupations: https://www.bls.gov/oes/current/oes_nat.htm#00-0000)
     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 4040-0010 Project/Performance 
Site Location(s). OTED 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 the use of 
form 4040-0010 Project/Performance Site Location(s), and therefore its 
use is not expected to alter annualized Federal costs.

    Title: 4040-0013 Certification Regarding Lobbying.

[[Page 41315]]

    OMB Control No: 4040-0013.
     Summary of collection of information: The new collection 
of information in proposed 38 CFR 80.5 would require VSTAGP applicants 
to submit the Certification Regarding Lobbying form if requesting an 
award greater than $100,000.
     Description of the need for information and proposed use 
of information: The collection of information would be necessary for 
applicants to attest to the certifications regarding lobbying. This 
collection may not be required of every applicant.
     Description of likely respondents: Eligible recipients, as 
defined in proposed Sec.  80.2, that are interested in applying for a 
VSTAGP grant.
     Estimated number of respondents: 198 per year.
     Estimated frequency of responses: Annually.
     Estimated average burden per response: 15 minutes.
     Estimated total annual reporting and recordkeeping burden: 
15 minutes.
     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 would be 
$7.00, making the total cost for respondents an estimated $1,386.49 
(198 respondents x ((15 burden minutes x $28.01 per hour)/60 minutes)). 
(Source: May 2021 BLS National Occupational Employment and Wage 
Estimates, Code: 00-0000, All Occupations: https://www.bls.gov/oes/current/oes_nat.htm#00-0000)
     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 4040-0013 Certification 
Regarding Lobbying. OTED currently has existing personnel, systems, and 
processes (or other resources) in place to receive and review grant 
applications. Any additional cost for agency system development, 
maintenance, and enhancements should not be attributed to the use of 
4040-0013 Certification Regarding Lobbying, and therefore its use is 
not expected to alter annualized Federal costs.

    Title: Quarterly Performance Reports (IT instrument).
    OMB Control No: 2900-0928.
     Summary of collection of information: The new collection 
of information in proposed 38 CFR 80.12 would require VSTAGP grantees 
to submit quarterly performance reports.
     Description of the need for information and proposed use 
of information: The collection of information would be necessary to 
monitor grantee performance and document the success of the program.
     Description of likely respondents: Grantees.
     Estimated number of respondents: 10 per year.
     Estimated frequency of responses: Quarterly.
     Estimated average burden per response: 1 hour per quarter.
     Estimated total annual reporting and recordkeeping burden: 
4 hours.
     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 would be 
$112.04, making the total cost for respondents an estimated $1,120.40 
(10 respondents x 4 burden hours x $28.01 per hour). (Source: May 2021 
BLS National Occupational Employment and Wage Estimates, Code: 00-0000, 
All Occupations: https://www.bls.gov/oes/current/oes_nat.htm#00-0000)
     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 Quarterly Performance Reports 
(IT instrument). OTED currently has existing personnel, systems, and 
processes (or other resources) in place to receive and review grant 
applications. Any additional cost for agency system development, 
maintenance, and enhancements should not be attributed to the use of 
Quarterly Performance Reports (IT instrument), and therefore its use is 
not expected to alter annualized Federal costs.

    Title: SF-425 Federal Financial Report.
    OMB Control No: 4040-0014.
     Summary of collection of information: The new collection 
of information in proposed 38 CFR 80.12 would require VSTAGP grantees 
to submit quarterly financial reports to assess financial expenditure 
compliance under this grant program.
     Description of the need for information and proposed use 
of information: The collection of information would be necessary to 
monitor grantee compliance with financial requirements.
     Description of likely respondents: Grantees.
     Estimated number of respondents: 10 per year.
     Estimated frequency of responses: Quarterly.
     Estimated average burden per response: 1 hour per quarter.
     Estimated total annual reporting and recordkeeping burden: 
4 hours.
     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 would be 
$112.04, making the total cost for respondents an estimated $1,120.40 
(10 respondents x 4 burden hours x $28.01 per hour). (Source: May 2021 
BLS National Occupational Employment and Wage Estimates, Code: 00-0000, 
All Occupations: https://www.bls.gov/oes/current/oes_nat.htm#00-0000)
     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-425 Federal Financial Report. 
OTED currently has existing personnel, systems, and processes (or other 
resources) in place to receive and review grant applications. Any 
additional cost for agency system development, maintenance, and 
enhancements should not be attributed to the use of SF-425 Federal 
Financial Report, and therefore its use is not expected to alter 
annualized Federal costs.

    Title: Additional Reports (IT instrument).
    OMB Control No: 2900-0929.
     Summary of collection of information: The new collection 
of information in proposed 38 CFR 80.12 would require VSTAGP grantees 
to provide additional performance reports, as needed, to assess the 
provisions of services under this grant program.
     Description of the need for information and proposed use 
of information: The collection of information would be necessary to 
assess project accountability and effectiveness.
     Description of likely respondents: Grantees.
     Estimated number of respondents: 10.
     Estimated frequency of responses: Once.
     Estimated average burden per response: 1 hour.
     Estimated total annual reporting and recordkeeping burden: 
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 would be 
$28.01, making the total cost for respondents an estimated $280.10 (10 
respondents x 1 burden hour x $28.01 per hour). (Source: May 2021 BLS 
National

[[Page 41316]]

Occupational Employment and Wage Estimates, Code: 00-0000, All 
Occupations: https://www.bls.gov/oes/current/oes_nat.htm#00-0000)
     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 Additional Reports (IT 
instrument). OTED currently has existing personnel, systems, and 
processes (or other resources) in place to receive and review grant 
applications. Any additional cost for agency system development, 
maintenance, and enhancements should not be attributed to the use of 
Additional Reports (IT instrument), and therefore its use is not 
expected to alter annualized Federal costs.

    Title: Recordkeeping.
    OMB Control No: 2900-0930.
     Summary of collection of information: The new collection 
of information in proposed 38 CFR 80.16 would require VSTAGP records to 
be maintained. VA officials are entitled access to any documents, 
papers, or other records which are pertinent to the VSTAGP award for 
audits, examinations, excerpts, and transcripts. This also includes 
timely and reasonable access to VSTAGP personnel for interviews and 
discussions related to such documents.
     Description of the need for information and proposed use 
of information: The collection of information would be necessary to 
access project records.
     Description of likely respondents: Grantees.
     Estimated number of respondents: 10.
     Estimated frequency of responses: Annually.
     Estimated average burden per response: 1 hour.
     Estimated total annual reporting and recordkeeping burden: 
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 would be 
$28.01, making the total cost for respondents an estimated $280.10 (10 
respondents x 1 burden hour x $28.01 per hour). (Source: May 2021 BLS 
National Occupational Employment and Wage Estimates, Code: 00-0000, All 
Occupations: https://www.bls.gov/oes/current/oes_nat.htm#00-0000)
     Estimated cost to the Federal Government: There is no 
projected incremental increase in the cost burden to the Federal 
Government as a result of this requirement. OTED 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 Recordkeeping, and therefore its use is not expected to 
alter annualized Federal costs.

Assistance Listing

    The Assistance Listing number and title for the program affected by 
this document is 64.058, Veteran and Spouse Transitional Assistance 
Grant Program.

Congressional Review Act

    Pursuant to Subtitle E of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (known as the Congressional Review Act) (5 U.S.C. 
801 et seq.), the Office of Information and Regulatory Affairs 
designated this rule as not satisfying the criteria under 5 U.S.C. 
804(2).

List of Subjects in 38 CFR Part 80

    Administrative practice and procedure, Armed forces, Employment, 
Grant programs--veterans, Reporting and recordkeeping requirements, 
Transition, Veterans.

Signing Authority

    Denis McDonough, Secretary of Veterans Affairs, approved and signed 
this document on April 30, 2024, 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 General Counsel, Department of Veterans Affairs.


0
For the reasons stated in the preamble, VA amends 38 CFR chapter I by 
adding part 80 to read as follows:

PART 80--VETERAN AND SPOUSE TRANSITIONAL ASSISTANCE GRANT PROGRAM

Sec.
80.1 Purpose and use of grant funds.
80.2 Definitions.
80.3 Grants--general.
80.4 Notice of Funding Opportunity (NOFO).
80.5 Applications.
80.6 Additional factors for selecting applications.
80.7 Scoring and selection.
80.8 Disposition of applications.
80.9 Withdrawal of grant application.
80.10 Grant agreement.
80.11 Payments under the grant.
80.12 Grantee reporting requirements.
80.13 Termination of grant; recovery of funds.
80.14 Compliance review requirements.
80.15 Financial management.
80.16 Recordkeeping.
80.17 Non-appealability of grant award decisions.

    Authority: 38 U.S.C. 501, 512; Pub. L. 116-315, sec. 4304.


Sec.  80.1  Purpose and use of grant funds.

    Sections 80.1 through 80.17 establish the Veteran and Spouse 
Transitional Assistance Grant Program (VSTAGP). Under this program, VA 
may provide grants to eligible organizations defined in Sec.  80.2 to 
provide transition services and intensive client centered case 
management services tailored to the unique employment needs of program 
participants to include, but not limited to such services, such as 
resume assistance, interview training, job recruitment training and 
related services, that will help in a successful transition from 
military to civilian life.

(Authority: Pub. L. 116-315, sec. 4304)


Sec.  80.2  Definitions.

    For purposes of this part and any Notice of Funding Opportunity 
(NOFO) issued pursuant to this part:
    (a) Applicant means an organization that submits an application for 
a VSTAGP grant as announced in a NOFO.
    (b) Eligible recipient (organization) means one of the following:
    (1) State government;
    (2) County government;
    (3) Local government;
    (4) Institution of Higher Education;
    (5) Indian/Native American Tribal government (federally 
recognized);
    (6) Nonprofit organization; or
    (7) Faith-based organization;
    (c) State government means any of the fifty States of the United 
States, the District of Columbia, the Commonwealth of Puerto Rico, any 
territory or possession of the United States, or any agency or 
instrumentality of a State government.
    (d) County government means a county government entity or any 
corresponding unit of government under any other name in States that do 
not have county organizations and, in those States in which the county 
government does not have jurisdiction over highways, any local 
government unit vested with jurisdiction over local highways.
    (e) Local government means a government entity for a county; 
borough; municipality; city; town; township; parish; local public 
authority

[[Page 41317]]

(including any public housing agency under the United States Housing 
Act of 1937); special district; school district; intrastate district; 
council of governments, whether or not incorporated as a nonprofit 
corporation under state law; and any other agency or instrumentality of 
a multi-regional, intra-State or local government.
    (f) Institution of Higher Education (IHE) means--
    (1) An educational institution in any State that--
    (i) Admits as regular students only persons having a certificate of 
graduation from a school providing secondary education, or the 
recognized equivalent of such a certificate, or persons who meet the 
requirements of 20 U.S.C. 1091(d);
    (ii) Is legally authorized within such State to provide a program 
of education beyond secondary education;
    (iii) Provides an educational program for which the institution 
awards a bachelor's degree or provides not less than a 2-year program 
that is acceptable for full credit toward such a degree, or awards a 
degree that is acceptable for admission to a graduate or professional 
degree program, subject to review and approval by the Secretary of 
Education;
    (iv) Is a public or other nonprofit institution; and
    (v) Is accredited by a nationally recognized accrediting agency or 
association, or if not so accredited, is an institution that has been 
granted pre-accreditation status by such an agency or association that 
has been recognized by the Secretary of Education for the granting of 
pre-accreditation status, and such Secretary has determined that there 
is satisfactory assurance that the institution will meet the 
accreditation standards of such an agency or association within a 
reasonable time;
    (2) Any school that provides not less than a 1-year program of 
training to prepare students for gainful employment in a recognized 
occupation and that meets the provision of paragraphs (f)(1)(i), (ii), 
(iv) and (v) of this section; and
    (3) A public or nonprofit private educational institution in any 
State that, in lieu of the requirement in paragraph (f)(1)(i) of this 
section, admits as regular students individuals--
    (i) Who are beyond the age of compulsory school attendance in the 
State in which the institution is located; or
    (ii) Who will be dually or concurrently enrolled in the institution 
and a secondary school.
    (g) Indian/Native American Tribal government (federally recognized) 
means a governing body of a tribe, band, pueblo, community, village, or 
group of native American Indians, or Alaska Natives, that qualifies as 
an Indian tribal government upon a determination by the Internal 
Revenue Service that the governing body exercises governmental 
functions.
    (h) Nonprofit organization means any corporation, trust, 
association, cooperative, or other organization, not including IHEs, 
that:
    (1) Is operated primarily for scientific, educational, service, 
charitable, or similar purposes in the public interest;
    (2) Is not organized primarily for profit; and
    (3) Uses net proceeds to maintain, improve, or expand the 
operations of the organization. In accordance with section 18 of the 
Lobbying Disclosure Act of 1995 (Pub. L. 104-65) (codified at 2 U.S.C. 
1611), non-profit entities incorporated under section 501(c)(4) of the 
Internal Revenue Code that engage in lobbying activities are not 
eligible to receive Federal funds or grants. (Note: After receiving a 
grant, such organization must not engage in any activities, including 
awareness-raising or advocacy activities, that include fundraising for, 
or lobbying of, U.S. Federal, State, or local governments (see 2 CFR 
200.450 for more information).)
    (i) Faith-based organization means a nonprofit organization that is 
affiliated with, supported by, or based on a religion or religious 
group.
    (j) Grantee means an applicant that is awarded a grant under this 
part.
    (k) In-demand industry sector or occupation means:
    (1) An industry sector that has a substantial current or potential 
impact (including through jobs that lead to economic self-sufficiency 
and opportunities for advancement) on the State, regional, or local 
economy, as appropriate, and that contributes to the growth or 
stability of other supporting businesses, or the growth of other 
industry sectors; or
    (2) An occupation that currently has or is projected to have a 
number of positions (including positions that lead to economic self-
sufficiency and opportunities for advancement) in an industry sector so 
as to have a significant impact on the State, regional, or local 
economy, as appropriate.
    (l) Notice of Funding Opportunity (NOFO) means a Notice of Funding 
Opportunity published by VA at Grants.gov (https://www.grants.gov) 
alerting eligible entities of the availability of VSTAGP grants and 
containing information about the VSTAGP grant application process in 
accordance with Sec.  80.4.
    (m) Grant agreement means a legal instrument of financial 
assistance between a Federal awarding agency or pass-through entity and 
a non-Federal entity that is consistent with 31 U.S.C. 6302 and 6304.
    (n) Participant means a former member of the U.S. Armed Forces who 
was separated, retired, or discharged from the U.S. Armed Forces, or 
spouse of such former member, who receives services for which a VSTAGP 
grant is awarded.
    (o) Spouse means an individual lawfully married to a former member 
of the U.S. Armed Forces who was separated, retired, or discharged from 
the U.S. Armed Forces.
    (p) Covered public health emergency means an emergency with respect 
to COVID-19 declared by a Federal, State, or local authority in 
accordance with Public Law 117-4, sec. 2(e)(3).

(Authority: Pub. L. 116-315, sec. 4304)


Sec.  80.3  Grants--general.

    (a) Grants. VA will award VSTAGP grants to eligible applicants 
selected under Sec.  80.8(a)(1).
    (b) Maximum amounts. The maximum amount to be awarded to each 
grantee and the total maximum amount for all grants will be specified 
in the annually published NOFO.
    (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 award limitation. An eligible entity may receive only one 
VSTAGP grant, and only one VSTAGP grant will be awarded in any one 
location as specified in the NOFO.
    (e) Period of performance. VSTAGP grants will be awarded for a 
maximum period of 5 years, beginning on the date on which the VSTAGP 
grants are awarded. They will not be extended or renewed.
    (f) Amount of grant. A grant under this section shall be in an 
amount that does not exceed 50% of the amount required by the 
organization to provide the services described in Sec.  80.1.
    (g) No participant charges. A grantee may not charge any 
participants a fee for services provided by the grantee or require any 
participants to participate in other activities sponsored by the 
grantee as a condition of receiving services for which the VSTAGP grant 
is made.

(Authority: Pub. L. 116-315, sec. 4304)

[[Page 41318]]

Sec.  80.4  Notice of Funding Opportunity (NOFO).

    When funds are available for VSTAGP grants, VA will publish a NOFO 
at Grants.gov (https://www.grants.gov). The NOFO will identify:
    (a) The location for obtaining VSTAGP grant applications, including 
the specific forms that will be required;
    (b) The date, time, and place for submitting completed VSTAGP grant 
applications;
    (c) Priority population categories;
    (d) The estimated total amount of funds available and the maximum 
funds available to a single grantee;
    (e) Matching funds requirements;
    (f) 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;
    (g) Any timeframes and manner for payments under the VSTAGP grant;
    (h) A description of eligible entities or other eligibility 
requirements necessary to receive the grant; and
    (i) Other information necessary for the VSTAGP grant application 
process, as determined by VA, including contact information for the 
office that will oversee the VSTAGP within VA.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.5  Applications.

    To apply for a grant, an eligible entity must submit a complete 
application package to VA, as described in the NOFO. There will be a 
limit of one application per submitting organization serving the same 
participant population and in the same geographic service area. 
Applications will be accepted only through www.grants.gov.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)

(Approved by the Office of Management and Budget under control 
numbers 2900-8080, 4040-0006, 4040-0010, and 4040-0013.)


Sec.  80.6  Additional factors for selecting applications.

    (a) Applicant's performance on prior award. VA may consider the 
applicant's noncompliance with requirements applicable to prior VA or 
other 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.
    (c) Priority preference. Priority preference will be given to 
organizations that either provide multiple forms of services or are 
located in a State with:
    (1) A high rate of unemployment among Veterans;
    (2) A high rate of usage of unemployment benefits for recently 
separated members of the Armed Forces; or
    (3) A labor force or economy that has been significantly impacted 
by a covered public health emergency.
    (d) Risk assessment evaluation. VA will conduct a formal 
assessment, prior to award, of the applicant's financial capability, 
adequacy of accounting system, and internal controls to assess the risk 
posed by each applicant.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.7  Scoring and selection.

    (a) Scoring. VA will only score complete applications received from 
eligible applicants by the deadline established in the NOFO. The 
applications must meet the minimum criteria set forth in the NOFO and 
will be scored as specified in the NOFO, as set forth in Sec.  80.4.
    (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. NOFO announcements may also 
clarify the selection criteria in paragraph (a) of this section. The 
relative weight (point value) for each criterion will be specified in 
the NOFO. VA will award VSTAGP grants on the primary basis of the 
scores but will also consider additional factors listed in Sec.  80.6.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.8  Disposition of applications.

    (a) Disposition of applications. Upon review of an application and 
dependent on the 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.  80.10, will be issued to the applicant of an 
approved application.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.9  Withdrawal of grant application.

    Applicants may withdraw a VSTAGP application submitted through 
Grants.gov by writing to the specified VA point of contact. An 
applicant must provide a rationale for the withdrawal request as 
specified in the NOFO.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.10  Grant agreement.

    (a) VA will draft a VSTAGP grant agreement to be executed by VA and 
the grantee.
    (b) The VSTAGP grant agreement will provide that the grantee agrees 
to, and will ensure that each subgrantee (if applicable) agrees to:
    (1) Operate the project in accordance with this part and the terms 
of the agreement.
    (2) Abide by the Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards under 2 CFR parts 
25, 170, and 200 if applicable.
    (3) Comply with such other terms and conditions, including 
recordkeeping and reports for project monitoring and evaluation 
purposes, as VA may establish for purposes of carrying out the VSTAGP 
effectively and efficiently and as described in the NOFO; and
    (4) Provide any necessary additional information requested by VA in 
the manner and timeframe specified by VA.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.11  Payments under the grant.

    (a) Payments. Grantees are to be paid in accordance with the 
timeframes and manner set forth in the NOFO.
    (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 will not be reimbursed for 
costs resulting from obligations incurred before the effective date of 
the grant.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.12  Grantee reporting requirements.

    (a) Quarterly reports. All grantees must submit to VA quarterly 
reports, as required in the NOFO, within 30 days after the last day of 
each quarter based on the Federal fiscal year--with the first report 
due not later than 30 days after the last day of the quarter for which 
a grant is paid under this part--which includes the following 
information:

[[Page 41319]]

    (1) Record of time and resources expended in outreach activities 
and the methods used;
    (2) The number of participants served, including demographics of 
this population;
    (3) Types of assistance provided;
    (4) A full accounting of VSTAGP grant funds received from VA and 
used or unused funds during the quarter; and
    (5) Results of routine monitoring and any project variations.
    (b) Final report. Per 2 CFR 200.344, all grantees must submit to 
VA, not later than 120 days after the last day of the grant period (as 
defined in the NOFO) for which a grant is awarded under this part, a 
final report that meets the requirement set forth in the NOFO. The last 
quarterly performance and financial report received will be recorded as 
the final report. The financial report shall be noted as ``Final'' on 
the SF-425 Federal Financial Report.
    (c) Additional reports. VA may request additional reports to allow 
VA to assess project accountability and effectiveness. In addition, 
recipients are required to participate in a VA-led evaluation if 
selected, which may be carried out by a third-party on behalf of VA.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)

(Approved by the Office of Management and Budget under control 
number 2900-0928 (Quarterly Performance Reports), 4040-0014, and 
2900-0929 (Additional Reports).)


Sec.  80.13  Termination of grant; recovery of funds.

    (a) Termination of grant. VA may terminate a grant agreement with 
any VSTAGP grantee that does not comply with the terms of the VSTAGP 
agreement.
    (b) Recovery of funds. VA may recover from the grantee any funds 
paid if the grantee violates the grant agreement or may recover any 
funds that have not been used in accordance with a VSTAGP grant 
agreement. If VA decides to recover funds, VA will issue the grantee a 
notice of intent to recover VSTAGP grant funds. The grantee will then 
have 30 days from the date of the notice to submit documentation 
demonstrating why the VSTAGP grant funds should not be recovered. If 
the VSTAGP grantee does not respond or if the grantee responds, but VA 
determines the documentation is insufficient to establish compliance, 
VA will make a final determination to recover the VSTAGP grant funds. 
If VA determines that the grantee did not violate the grant agreement, 
VA will make a final determination not to recover the grant funds.
    (c) Prohibition of further payment of grant funds. When VA 
determines that action will be taken to recover grant funds from a 
grantee, the grantee will be prohibited from receiving any further 
VSTAGP grant funds under this part until the grant funds are recovered 
and the condition that led to the recovery of the grant funds is 
resolved, unless the grant agreement has been terminated. If the grant 
agreement has been terminated, no future payments would be issued upon 
recovery.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.14  Compliance review requirements.

    (a) Site visits. VA will conduct, as needed, site visits to grantee 
locations to review grantee accomplishments and management control 
systems.
    (b) Inspections. VA will 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: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.15  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 through 200.475.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.400 through 
200.475)


Sec.  80.16  Recordkeeping.

    Grantees must ensure that records are maintained in accordance with 
2 CFR 200.337. Grantees must produce such records at VA's request.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.337)

(Approved by the Office of Management and Budget under control 
number 2900-0930 (Recordkeeping).)


Sec.  80.17  Non-appealability of grant award decisions.

    Grant award decisions are discretionary and are not subject to 
appeal to any VA official or board.

[FR Doc. 2024-09862 Filed 5-10-24; 8:45 am]
BILLING CODE 8320-01-P