Corporation Grant Programs and Support and Investment Activities

Federal RegisterJan 7, 1994

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SUMMARY: The Corporation for National and Community Service (the

Corporation) is issuing this rule concerning the Corporation's

grantmaking programs and various support and investment activities as

authorized by the National and Community Service Act of 1990, as

amended by the National and Community Service Trust Act of 1993 (the

Act). The activities and grants described in this rule are designed to

help address the Nation's human, educational, environmental, and public

safety needs through national and community service. This rulemaking

describes the different types of national and community service

programs the Corporation may support, funding available for those

programs, processes by which grants will be awarded, training and

technical support services available for program development and

applications, and Corporation plans to invest in service

infrastructure.

DATES: Comments on the proposed rule, as well as the draft

applications, must be received no later than February 7, 1994.

ADDRESSES: Comments may be mailed to the Corporation for National and

Community Service, P.O. Box 34680, Washington, DC 20043-4680. Comments

received may also be inspected at the Corporation for National and

Community Service, Office of the General Counsel, Room 9200, 1100

Vermont Avenue, Washington, DC 20525, between 9 a.m. and 5 p.m.

The Corporation also will make available copies of drafts of

applications for programs described in these regulations. These

applications may be obtained by writing to the above address.

FOR FURTHER INFORMATION CONTACT: Terry Russell, (202) 606-4949 (Voice)

or (202) 606-5256 (TDD), between the hours of 9 a.m. and 6 p.m. Eastern

Standard Time. For individuals with disabilities, information will be

made available in alternative formats, upon request.

SUPPLEMENTARY INFORMATION: The Supplementary Information section

explains the basis and purpose of the proposed regulations--providing a

context for understanding the policy decisions that underly them--and

provides information on the Corporation's plans for fiscal year 1994.

This Supplementary Information section should not be viewed as

comprehensive. Congress made numerous policy decisions that went into

the writing of the Act. These decisions, along with minor decisions

made by the Corporation in interpreting the Act, are not discussed.

Invitation to Comment

Regulations

The Corporation invites written comments on the text of the

proposed regulations and requests that the comments identify the

specific regulatory provisions to which they relate. However, comments

on the Supplementary Information section should focus on policy issues

rather than specific language or construction.

Applications

Interested parties may obtain copies of drafts of the various grant

applications from the Corporation as they become available. These

applications will be in draft form, however, and should not be used to

apply for funds. The forms are being reviewed by the Office of

Management and Budget. We estimate that, on average, it will take

approximately ten hours to fill out each of the forms. Any comments on

the forms should be sent as soon as possible to the Corporation at the

above address, as well as to the U.S. Office of Management and Budget,

Attention: Steve Semenuk, New Executive Office Building, room 3001,

Washington, DC 20503.

The Corporation's Mission and the Purpose of This Rule

Overall Mission

The Corporation's mission is to engage Americans of all ages and

backgrounds in community-based service. This service will address the

Nation's educational, public safety, human, and environmental needs to

achieve direct and demonstrable results. In doing so, the Corporation

will foster civic responsibility, strengthen the ties that bind us

together as a people, and provide educational opportunity for those who

make a substantial commitment to service.

Purpose of this Rule

The purpose of this rule is to establish policies and procedures

for the activities the Corporation will undertake to achieve the goals

described above. This rule should serve as a guide to explain the

eligibility requirements, application processes, selection criteria,

program requirements, and other relevant information for individuals,

programs, public and private nonprofits, institutions of higher

education, States, Indian tribes, and other entities wishing to

participate.

Impact of Programs

All programs under the National and Community Service Act have in

common the goal of achieving three types of impact: ``getting things

done,'' improving the lives of participants, and strengthening the ties

that bind communities together. All programs, whether they involve

elementary school children or senior citizens, are equally able to

achieve the last ``community-building'' impact--by involving people of

different backgrounds together in a common effort, by promoting civic

responsibility so that every member of a community feels responsibility

for its stewardship, and by breaking down barriers of mistrust and

misunderstanding. The other two impacts are weighted differently for

different program types based on the age and experience of the

participants.

At the one extreme, the service-learning programs for school-age

youth may indeed help to solve the pressing problems of communities,

but their primary impact will be and should be on the lives of the

participants. They should improve their educational motivation and

achievement, citizenship skills, teamwork, and problem solving

abilities. At the other extreme, for a professional corps of adults who

are highly educated and highly skilled, the primary impact must be on

getting things done in communities, with the receipt of an educational

award for loan repayment as the main participant impact. Given the

higher costs of these programs and the advanced education level of the

participants, it is imperative that the work they do be highly valued

by communities and the Nation. Programs like youth corps, which lie

somewhere in the middle in terms of age and education level of

participants, should achieve a balance of impacts. By keeping this

calculus in mind, potential applicants can appropriately gauge the

amount of program resources that should be dedicated to participant

education, life skills training, and other types of participant

support.

STATE PLAN ISSUES

(1) General Purpose

Section 178(e) of the Act requires every State Commission to

prepare a national service plan (the ``State Plan'') for submission to

the Corporation for approval. The law requires that the State Plan (a)

be developed through an open and public process that ensures outreach

to diverse community-based agencies that serve underrepresented

populations, and (b) cover a three year period and be updated annually.

With the exception of section 122(c) of the Act, which requires each

State to establish State-based priorities through the State Plan, the

law is silent as to the overall purpose and content of the plan itself.

In part 2513 of this rule, the Corporation has clarified the

purpose of the State Plan, indicating the information it must contain

and the criteria by which it will be evaluated. In general, the

Corporation intends for the State Plan to be an essential component of

a State's overall application; it should indicate a State's strategy

for supporting national and community service activities--including

proposed programs and other volunteer activities--within the State. The

State Plan is intended to bring diverse constituencies within the State

together for the purpose of promoting and supporting national and

community service, and it will be a factor in the Corporation's

evaluation of State applications.

(2) Development of the State Plan

The State Plan should be developed through an open, public and

inclusive process (such as through regional forums, hearings, or other

means) that provides for maximum participation and input from national

and community service programs within the State and other interested

individuals, including representatives of the private sector,

organizations involved in meeting educational, public safety, human,

and environmental needs, community-based organizations, and

constituencies that might not otherwise be formally involved with

national and community service programs. The State Plan should also be

developed in a non-partisan, non-political manner.

(3) Required Components

Section 2513.30 of this rule details the required components of the

State Plan. The following information is provided as supplemental

information on three aspects of the Plan:

(a) Overview of State experience and ``historical context'' for

service programming. The State Plan, especially in the first year,

should provide a context for understanding the development of national

and community service activities within the State, including the extent

to which the State has been involved in the development or support of

such activities. It should also provide an overview of the broad array

of organized service activities within the State, including, to the

extent practicable, activities not funded by the Corporation. The

primary goal for this section is to gain a ``snapshot'' of service

within the State, and to determine the extent to which States have an

established infrastructure to support high quality national and

community service programs, including the capacity to provide technical

assistance to prospective applicants and funded programs. In this

regard, the Plan will provide a baseline against which the Corporation

may assess future progress and activities.

(b) Establishment of goals and priorities. This section of the plan

should detail the goals and strategies identified by the State to

achieve the purposes of the Plan set forth above. In addition, any

State priorities that will govern the programs proposed for support

with formula funding should be clearly identified and explained,

including if appropriate a description of why the priorities were

established and how they relate to the national priorities established

by the Corporation.

(c) Description of process. The State Plan must specifically

describe the manner in which the State has conducted an open and

inclusive process to develop the State Plan and the priorities.

(4) Evaluation Criteria

The State Plan will be evaluated on two principal criteria: quality

and sustainability. These criteria are described in part 2513.40. In

addition, the quality of the State Plan itself will also be factored

into the Corporations overall evaluation of a State Commission's

application. Specifically, the submission of a State Plan that meets

the quality criteria established by the Corporation is an eligibility

requirement for States seeking formula funding under the national and

community service grant program. The quality of the State Plan will

also be factored into the Corporation's selection of programs for

competitive State funding. Finally, the Corporation may consider the

quality of the State Plan in determining whether to renew State

Commission administrative support under part 2550 of this rule.

SERVICE-LEARNING ISSUES

The K-12 service-learning programs--i.e., the school- and

community-based programs described in parts 2516 and 2517 of this

rule--as well as the Higher Education service-learning programs

described in part 2519 of this rule, aim to engage school-age youth and

students of all ages in activities to help meet the educational, public

safety, human, and environmental needs of America's communities.

Service-learning programs provide participants with structured,

sometimes curriculum-based opportunities to reflect on and learn from

their service experiences, often enhancing their academic skills, their

sense of civic responsibility, their ability to solve community

problems, and their understanding of important concepts such as

community, diversity, and citizenship.

In similar ways, the higher education programs strive to develop

the academic and civic skills of students by supporting efforts of

colleges and universities to help meet community needs.

(A) K-12 SERVICE-LEARNING ISSUES

(1) Coordination With State Plans

Any State or grantmaking entity that applies for school-or

community-based K-12 service-learning support must coordinate its

service-learning activities with the development of the comprehensive

State Plan described in part 2513 of this rule. This requirement is

designed to facilitate the integration of K-12 service-learning

programs into the overall national service efforts of each State.

The Corporation will consider the extent and quality of

coordination with the development of the State Plan in assessing the

merits of applications submitted by States or grantmaking entities.

However, because State Plans will be in different stages of

development, any applicant that makes a good faith effort at

coordination will not be disadvantaged in the selection process.

(2) Terms of Grants

The Corporation has set the maximum term of most grants at three

years, subject to satisfactory performance and annual appropriations.

In addition to facilitating coordination with the State Plan, the three

year term (a) allows programs to evolve and improve over time, learning

from mistakes and making adjustments to ensure quality, and (b) allows

the Corporation to track and learn from the development of programs

over time.

A one-year term will be set for planning grants made to school-

based program applicants, as well as grants to local partnerships

States not participating. This policy reflects the purpose of a

planning grant: to move programs from a sound program concept to the

brink of implementing a fully operational program. These grants thus

should be used for such activities as seeking community input, building

partnerships, developing curricula and materials, recruiting staff,

etc.

(3) Treatment of ACTION Student Community Service Program and

Commission on National and Community Service Grantees

High quality programs that received ACTION Student Community or

Commission funds are encouraged to seek Corporation grants.

(4) Stipends

The Act prohibits using school-based service-learning funds to

provide stipends to participants. With this rule, the Corporation

extends this restriction to Corporation funds awarded to community-

based service-learning programs in order to conserve and focus the

relatively small amount of funds available for community-based

programs.

(B) HIGHER EDUCATION SERVICE-LEARNING ISSUES

(1) Coordination With State Commissions

The Act is silent on the extent to which Higher Education service-

learning programs should be coordinated with State Commissions. In

considering this issue, the Corporation sought to balance (1) a desire

to promote coordination among national and community service programs

within each State, with (2) the concerns that programs not be unduly

burdened with bureaucratic procedures and that the Corporation, as the

direct funder of Higher Education service-learning programs, retain

control of selection, monitoring, and evaluation.

As a result, in fiscal year 1994 the Corporation is requiring an

assurance that, prior to submitting a Higher Education service-learning

application, applicants will send one copy of the final proposal to the

State Commission in each State where the program will operate. The

State will have no part in selecting programs to be funded. However, as

stated in the selection criteria of the application, evidence of

support from a State Commission or consistency with a State

comprehensive plan may improve the competitiveness of a program in the

review process.

(2) Educational Awards

Section 119(f) of the Act states that ``a participant in a program

funded under this part shall be eligible for the national service

educational award if the participant served in an approved national

service position.'' However, the Act provides no guidance on what kinds

of Higher Education service-learning programs involve participants in

positions eligible to be approved AmeriCorps positions.

Since institutions of higher education are eligible to apply for

AmeriCorps program support, campus-based programs fitting one or more

of the AmeriCorps program types described in Sec. 2522.110 should apply

as AmeriCorps programs rather than as Higher Education service-learning

programs. This reflects the idea that Higher Education service-learning

programs should have a distinctive service-learning emphasis; it was

not intended to be a grant program that merely supplements the

AmeriCorps funds.

The Corporation examined whether certain other types of positions

in a Higher Education service-learning programs should be provided

AmeriCorps educational awards. In Sec. 2519.320 of this rule, the

Corporation retains flexibility on this issue. In the fiscal year 1994

application, the Corporation expects to provide AmeriCorps educational

awards only to programs with positions designed to increase

participation in community service on campus, to develop projects and

partnerships in the community, or to facilitate service-learning in

campus-based programs. They are similar to other AmeriCorps positions

such as service-learning coordinators for school-based service-learning

programs or crew leaders in youth corps. Positions of this type are

essential for the longevity and progress of the service movement.

Any Higher Education service-learning program whose participants

receive educational awards must meet the minimum AmeriCorps program

requirements described in Section 2522.100 of this rule. As Higher

Education service-learning programs, however, they will be reviewed

according to selection criteria and priorities that apply to all Higher

Education service-learning applicants.

(3) Treatment of Existing Grantees of the ACTION Student Community

Service Program and the Commission on National and Community Service

ACTION and Commission grantees may seek funds to continue and build

on activities carried out under their current grants. In the fiscal

year 1994 application, the Corporation requires these grantees to

submit an application that will be reviewed on a competitive basis

according to the selection criteria applicable to all Higher Education

service-learning applicants. However, the Corporation will give

preference to applicants that offer evidence of positive performance

relative to stated objectives under their existing grants. This policy

is consistent with the Corporation's intent to select among all Higher

Education service-learning applicants on the basis of quality, while

giving existing grantees in good standing sufficient opportunity to

develop and become self-sustaining.

Applicants for renewal funding are expected to reduce their

dependence on Federal funds and to demonstrate clearly their potential

for sustainability, in accordance with the guidelines in the

application.

(4) Priorities

This rule gives priority to proposals that (among other

characteristics) demonstrate the commitment of the higher education

institution as a whole and specify how grant funds will be used to

strengthen the capacity of institutions of higher education to support

service.

The Corporation aims to fund programs supported not only by

students but also by the college or university presidents, faculty

members, and even trustees. An institutional commitment, beginning with

the institution's top leadership, enhances program quality and

sustainability by making resources from diverse areas of the

institution available to the program, by ensuring continuity of the

program as students come and go, and by signaling to the community that

the institution views the program as an integral part of--not an ``add-

on'' to--its core functions.

Moreover, as colleges and universities across the Nation develop

more model programs, the Corporation aims to fund efforts to link

individual initiatives within a campus or across several campuses in

supportive networks that facilitate replication of effective models,

delivery of training and technical assistance, access to information

and resources, development and dissemination of materials, and

evaluation of impacts. These activities, which build the capacity of

higher education institutions to improve the quality of community

service and service-learning programs, require strong infrastructures

within and across institutions.

AMERICORPS PROGRAM ISSUES

Section I: Programmatic Issues

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

AmeriCorps is about getting things done. It will engage the energy

and idealism of the American people, especially young people, in

addressing the most critical educational, public safety, human, and

environmental needs of our communities. It will strengthen communities

and the civic character of our people through service, and reward those

who answer the call to service with enhanced educational opportunity.

The purpose of the AmeriCorps grant program, therefore, is to support

locally driven programs that meet rigorous national standards. This

strategy will enable communities across the Nation to channel the

unique talents and creativity of America toward effectively addressing

these most important needs. For these efforts to be successful,

however, it is essential to ensure that they provide direct and

demonstrable benefits that are valued by communities.

To achieve this outcome, the Corporation has attempted through

these regulations to provide clear guidance to programs seeking

assistance under the grant program. First, the regulations clarify the

nature of service activities eligible for support under the Act.

Second, to enhance the collective impact that all programs will have

within the four broad issue areas specified by law, the Corporation has

also exercised its authority to establish national priorities. Third,

to ensure that each of the diverse programs supported through the grant

program is of the highest possible quality, the Corporation has also

specified minimum program requirements that all programs must address.

And finally, the Corporation has clarified issues pertaining to

participant eligibility and benefits.

(B) Eligible Service Activities

(1) Description of Eligible Service Activities

There are numerous pressing needs throughout our communities that

may be appropriately addressed by AmeriCorps programs. But given the

realities of limited resources and the extent to which other public,

private and non-profit responses to many of these needs already exist,

it is important that an AmeriCorps program undertake activities that

are appropriate to the program's overall mission and capacity and that

achieve the greatest positive impact possible. To this end, the

Corporation has provided a framework for eligible service activities

that builds on the parameters specified in the law.

The Corporation's proposed regulation (as set forth in part 2520)

limits service to activities that provide a direct benefit to the

community where they are performed or that involve the supervision of

participants or volunteers whose service provides a direct benefit to

the community where it is performed. The Corporation determined, based

upon the inclusion in the Act of several program types involving such

supervision, such as service-learning coordinator programs, that

Congress intended for supervision of participants or others performing

service to be included as an eligible service activity, provided that

the service of those supervised would itself qualify.

In determining whether service ``provides a direct benefit to the

community where it is performed,'' the Corporation will take into

consideration several factors, including whether the service must be

performed physically in the community to be effective and whether the

service brings participants face-to-face with residents of the

community served or in contact with the physical environment that is

the ``beneficiary'' of the service. Direct service includes physical

projects like renovating low-income housing or creating a playground in

a vacant lot, as well as less tangible projects like tutoring,

mentoring and conflict resolution.

To further define what constitutes a ``direct benefit,'' the

Corporation's proposed regulation offers several examples of activities

that would not meet this test: fundraising, clerical work, and

research. This list is not intended to be limiting; other activities

may also fail the ``direct benefit'' test. However, if an activity does

not provide a direct benefit, it is not necessarily altogether

prohibited. Rather, unless it falls into one of the ``prohibited''

categories discussed below, the activity may be performed if it is

incidental to the direct service. For example, a team whose project

involves providing meals, transportation, and health services to the

homebound might conduct a door to door survey of community residents to

help locate those in need of services; if they then went on to provide

those services, this kind of research would be an appropriate activity

for the team.

(2) Prohibited Activities

Prohibited activities (specified in Sec. 2520.30) may not be

performed by participants in the course of their duties, at the request

of program staff, or in a manner that would associate the activities

with the AmeriCorps program or the Corporation. These activities

include: influencing legislation, as defined in the section of the IRS

code relating to non-profit organizations; organizing protests,

petitions, boycotts, or strikes; assisting, promoting or deterring

union organizing; participating in partisan political activities; and

performing religious activities, such as conducting worship services or

engaging in religious proselytization. Of course, participants may

engage in any of these activities at their own initiative, on their own

time, and in a manner that is not associated with their participation

in the program.

(3) General Guidance

In all cases, service activities must result in a specific

identifiable service or improvement that otherwise would not be

provided with existing funds or volunteers and that does not duplicate

the routine functions of workers or displace paid employees. Further,

service opportunities should be appropriate to the skill levels of

participants, and they should provide a long-lasting, identifiable, and

demonstrable benefit that is valued by the community.

While the Corporation reserves the right to further restrict

eligible service, it has not done so because it recognizes that the

character of service often depends on its content and context. For

example, distributing leaflets may provide a ``direct benefit'' if the

leaflets inform readers about the availability of free immunizations or

how to conserve energy in the home. Conversely, distributing leaflets

supporting a political candidate, or urge individuals to write their

legislators about an issue, would be prohibited. Given the great

educational, public safety, human, and environmental needs of our

communities, it should not be difficult for programs to identify

projects that clearly provide a direct benefit.

(C) Establishment of State and National Priorities

(1) State Priorities

As discussed earlier, States must establish and, through the State

planning process, periodically alter priorities in the areas of

educational, public safety, human, and environmental needs. These

priorities apply to programs that receive assistance (funding or

AmeriCorps educational awards) provided on a formula basis as described

in Sec. 2521.30(a)(1). The State priorities will be subject to

Corporation review as part of the AmeriCorps application process under

Subpart C of part 2522 of this rule.

(2) National Priorities

In order to concentrate national efforts on addressing certain

educational, public safety, human, and environmental needs, the

Corporation will establish and, after review of the strategic plan

approved by the Corporation's Board of Directors, periodically alter

priorities regarding the AmeriCorps programs that will receive

assistance (funding or AmeriCorps educational awards) and the purposes

for which such assistance may be used. These priorities apply to

assistance provided on a competitive basis as described in

Sec. 2521.30(a)(2) and (b)(3), and to any assistance provided through a

subgrant of such funds.

(a) National Priorities for Fiscal Year 1994. For fiscal year 1994,

the Corporation has established the following national priorities

within each of the four broad issue areas:

(i) Education. (A) School Readiness: Furthering early childhood

development; and

(B) School Success: Improving the educational achievement of

school-age children.

(ii) Public safety. (A) Crime Prevention: Reducing the incidence of

violence; and

(B) Crime Control: Improving criminal justice services, law

enforcement, and victim services.

(iii) Human needs. (A) Health: Providing independent living

assistance and home-and community-based health care; and

(B) Home: Rebuilding neighborhoods and helping people who are

homeless.

(iv) Environment. (A) Neighborhood Environment: Reducing community

environmental hazards; and

(B) Natural Environment: Conserving, restoring, and sustaining

natural habitats.

(b) Application of Priorities to Programs. The National priorities

established by the Corporation apply to programs seeking State

competitive and national direct grants from the Corporation, as

specified in Sec. 2521.30 of this rule. Programs included in the State

formula application are not governed by these priorities, but rather by

priorities established by the State consistent with part 2513 of this

rule. A more thorough description of how these National priorities will

affect program selection in each of the major grant areas is described

in Section II, Subsection B, Number 3 of this Supplementary Information

section, below.

(D) Minimum Program Requirements To Ensure Quality

In an effort to ensure that all programs supported by the

Corporation are high quality, the Corporation has specified a number of

minimum requirements (in addition to those already provided in the law)

that all programs must satisfy. These provisions, specified in

Sec. 2522.100 of this rule, seek not only to enhance the quality of

individual programs, but to further the ability of each program to

contribute to the achievement of the overall goals and purposes of

AmeriCorps as set forth by the Corporation.

Because the minimum program requirements represent elements

essential to the success of any AmeriCorps program, every program

receiving assistance from the Corporation through part 2522 of this

rule is required to address each requirement. The following sections

discuss the most salient of these requirements:

(1) Getting Things Done

First and foremost, every AmeriCorps program that receives funding

or AmeriCorps educational awards from the Corporation must address

educational, public safety, human, and environmental needs, and provide

a direct and demonstrable benefit that is valued by the community. This

requirement reflects the Corporation's intent to make efficient use of

limited funds--to have every grant made to an AmeriCorps program in

some way help to address our Nation's most pressing needs.

(2) Strengthening Communities

In addition to addressing the Nation's most pressing community

needs, the Corporation also seeks to strengthen the communities in

which we live through AmeriCorps programs. As social and economic

forces continually drive people apart, the need arises to promote

opportunities for diverse Americans to enjoy common experiences and

share common values that, in the words of the President, ``strengthen

the cords that bind us together as a people.'' Thus, the Corporation

has established the requirement that each program must seek ``to

strengthen communities and encourage mutual respect and cooperation

among citizens of different races, ethnicities, socioeconomic

backgrounds, educational levels, among both men and women and

individuals with disabilities.''

This requirement reinforces several of the Corporation's goals for

AmeriCorps. First, it affirms that a necessary ingredient of active,

productive citizenship is the ability of diverse citizens to live and

work together, notwithstanding differences in race, class, gender,

physical or mental ability, etc. Second, the requirement supports the

objective of strengthening not just individual relationships among

people, but the collective relationships among all Americans as

expressed in the spirit of community and in citizens' sense of personal

responsibility to that community. Third, it acknowledges that diversity

within programs can be an effective resource for community problem-

solving. Finally, the requirement supports a number of legislative

objectives and requirements found within the Act.

For example, an initial finding of the statute is that ``Americans

desire to affirm common responsibilities and shared values, and join

together in positive experiences, that transcend race, religion,

gender, age, disability, region, income, and education.'' Furthermore,

section 179 of the Act instructs the Corporation to evaluate programs

based on their effectiveness in ``recruiting and enrolling diverse

participants * * * based on economic background, race, ethnicity, age,

marital status, education levels, and disability.'' These legislative

provisions thus reinforce the Corporation's objective.

One way in which this important objective may be accomplished is to

involve diverse participants in programs. Therefore, the Corporation

requires each program to seek actively to engage participants from

diverse backgrounds in AmeriCorps, including individuals from the

community served. It also recognizes that in practice, it is not always

possible (or in some cases desirable) for this objective to be realized

in every case. Specifically, the Corporation recognizes two instances

in which programs may lack diversity in one or more ways:

First, despite its best efforts, a program simply may be unable to

recruit the participants necessary to achieve diversity in some

respect. In recognition of this the Corporation requires that programs

``seek to achieve'' rather than ``ensure'' diversity. However, programs

will be required to specify the specific strategy or activities to be

undertaken to recruit participants in accordance with this provision.

Second, some programs may have legitimate, substantive or

philosophical reasons to involve individuals who share a particular

characteristic. Examples of such programs include, but are not limited

to the following: (1) A youth corps or other program might be designed

to impart specific job skills and provide basic education through

service-learning and thus might lack educational or economic diversity

by design; (2) a professional corps that requires participants to

possess specific post-secondary training necessarily would lack

educational diversity.

Although such programs would thus lack diversity in one or more of

the required aspects, they nevertheless must strive for diversity in

other areas. For instance, a professional corps enlisting participants

of a common educational background would still be required to seek to

include a racially and ethnically diverse group of individuals,

individuals with disabilities, and both men and women. Equally

important, all programs should undertake activities that will provide

opportunities for citizens who might not otherwise serve, work or learn

together to do so, regardless of what the overall composition of the

program might be.

While the Corporation is committed to making AmeriCorps

opportunities available to Americans of all backgrounds, it will also

ensure, consistent with the Act, that at least 50 percent of

Corporation funds provided to States will go to programs that operate

in areas of greatest need and that place a priority on recruiting

participants who are residents in these high need areas (as specified

in Sec. 2521.30(a)(3)(iii) of this rule), or on Federal or other public

lands. The Corporation does not consider this requirement, which

affects the overall national composition of programs and participants,

at odds with its goals of encouraging the participation of citizens of

all backgrounds.

The Corporation recognizes that recruiting and retaining diverse

participants requires special efforts. This is particularly true for

qualified individuals with disabilities, including people with mental

disabilities . Because the Corporation intends to assist programs in

achieving the goal of diversity, the Corporation anticipates making

technical and other assistance available to programs to assist in the

attainment of recruitment goals. In addition to program development

assistance for strengthening recruitment or outreach components of

individual programs, the Corporation will make other resources

available to programs, including financial support for programs seeking

to involve qualified individuals with disabilities (as described in

Sec. 2524.50 of this rule), as well as referral information on

participants identified through the national recruiting system

described in Sec. 2522.210 of this rule and in section (E)(3), below.

(3) Participant Selection Requirements

Through this rule, the Corporation offers guidance to programs

regarding participant selection. First, the proposed regulation

encourages programs to select participants who possess leadership

potential and a commitment to the goals of the AmeriCorps program. This

guidance is not intended to discourage the enrollment of individuals

who have not attained educational or job success; rather, it

acknowledges that within every social strata, there are people who

possess leadership ability that has not been tapped or directed at

productive activities. Second, the regulation calls for programs to

select participants in a non-political, non-partisan, and non-

discriminatory manner. The third participant selection rule is found in

the Act itself--the requirement that programs establish minimum

qualifications for participants. Among other things, this provision

prohibits AmeriCorps participants from performing service that (1) is

or was recently performed by paid employees (2) would infringe upon the

promotional opportunities of paid employees (3) would supplant the

hiring of employees or (4) would reduce the hours, wages, or benefits

of paid employees.

Finally, although the Corporation expects that most programs will

involve young adults or recent college graduates as participants, the

regulations encourage programs to consider intergenerational approaches

because of the natural mentoring relationships that arise in these

programs. For example, a youth corps might involve seniors on each crew

or a corps of young attorneys might include retired lawyers

volunteering on a part-time basis.

In addition, the Corporation may require programs to establish pre-

service orientation and training periods for participants. The goal of

such periods would be to establish a common orientation process for all

programs and participants that would be tied to the efforts to create a

national identity. The Corporation might specify, for example, that the

official AmeriCorps logo may not be worn until participants have

satisfactorily completed the orientation period and have been

officially enrolled in the program through the administration of a

national oath. These efforts, among other things, may reduce

prospective attrition rates and contribute to a positive esprit de

corps across programs.

The statute also directs the Corporation to establish a national

leadership pool and a national system for the recruitment of

participants; States also must establish recruitment systems. National

and State recruitment will contribute to the diversity of the overall

participant pool by supplementing local recruitment with participants

from across the Nation and with participants who possess specialized

skills or training. The national and State recruitment efforts will

also facilitate the participation of individuals who desire to serve

but live in areas where there are few or no AmeriCorps programs

available. The Corporation may therefore require programs to select a

small percentage of participants from the national recruitment pool. In

addition, as specified in the application materials, the Corporation

may provide for the coverage of certain relocation expenses for a

limited number of participants who are recruited through the national

referral system. While the Corporation will not require programs to

select any participants through the national system in fiscal year

1994, programs are strongly encouraged to do so.

(4) AmeriCorps Identification

In addition to those activities noted in paragraph (3) above, the

Corporation will also require programs to agree to identify themselves

as part of a larger national effort and to participate in such

AmeriCorps activities as the Corporation may specify. Examples might

include the use of a national logo or common application and

informational materials as well as participation in special activities

such as a national service day, a conference or common training, or the

use of a common orientation component. This provision would not

preclude an AmeriCorps program from developing its own training or

materials, or from using its own name as the primary identification for

the program. These efforts not only will enhance the visibility of the

AmeriCorps programs but will contribute to a national recognition of

the value and importance of the work being undertaken by the programs.

(5) Promoting Active, Productive Citizenship

In addition to ``Getting Things Done'' in communities throughout

the Nation, another central goal for all AmeriCorps programs is to

promote active, productive citizenship on the part of all participants,

which may include fostering a sense of personal responsibility and a

life-long ethic of service. To this end, programs are encouraged to

design projects that employ service-learning methods to enhance

participants understanding of the relationship between the activities

undertaken to address needs and the larger social context in which the

efforts are made. In addition, programs must provide participants with

appropriate training and support to carry out assignments, including

background information on the community in which the service will be

performed and on why the particular project is needed. Finally, because

AmeriCorps programs seek to promote active citizenship, and because

voting is a critical component of citizenship in any democracy, every

program must encourage, in a non-partisan manner, each participant

eligible to do so to register to vote.

(6) Start of Operations

To further the goal of creating a national identity for programs,

this rule requires all programs to agree to begin operations at such

times as the Corporation may reasonably require. Creating ``classes''

of participants who all begin and ``graduate'' from their terms of

service during the same time period will foster a greater sense of

national identity. The Corporation's current policy requires

participants to begin service in June, September, or January. The

Corporation may waive this requirement for programs that can

demonstrate compelling reasons for alternative starting dates.

This requirement should also contribute toward the achievement of

other programmatic goals. For example, common schedules and operating

timelines will enable the Corporation to support, where appropriate,

staff and participant training. In addition, this provision will enable

many programs' term of service to track the traditional school year,

making the recruitment of college and college-bound participants

easier. For example, a program that begins in January and ends in

October would require participants to miss two years of school, whereas

a program that begins in September and ends in June would only require

participants to miss one year of school.

In addition, this rule states that programs must agree to comply

with any policy the Corporation may implement regarding filling

approved AmeriCorps positions left vacant by attrition. The Corporation

is currently considering a policy which would allow programs to fill

such vacant positions only within the first month of the enrollment of

a given class of participants. The Corporation encourages interested

parties to comment on this proposed policy. This provision is aimed at

providing a sense of cohesion within each AmeriCorps program.

Experience shows, especially in team- or crew-based programs, that the

process of continually filling positions left vacant by attrition tends

to erode the sense of teamwork and identity among participants and can

interrupt an efficient flow of operations, thereby affecting the

quality of service provided in the community. Through this provision,

the Corporation would require programs to wait until the next approved

intake period before enrolling additional participants.

(7) Allocation of Educational Awards Within Programs

Because of the limited amount of funding available for program

assistance, the Corporation anticipates that in some cases programs

(especially existing programs) may not apply for or receive adequate

support for all participants enrolled in the program, and the potential

may thus arise for some participants (who are serving in approved

AmeriCorps positions) to receive AmeriCorps educational awards while

others do not. The Corporation is therefore requiring every applicant

to describe the rationale for its distribution of educational awards to

program participants in those cases where distinctions among

participants are necessary. In general, this distribution should treat

equally all participants doing the same or essentially similar work.

This reflects a matter of principle as well as a pragmatic concern for

the equal treatment of participants within a single program.

The Corporation recognizes that equal treatment may not be feasible

or desirable in some instances. For example, an intergenerational

program or a program with a specialized component or division assigned

special projects may make distinctions among participants that justify

the provision of educational awards to some but not to others.

Similarly, a program may choose to offer alternative post-service

benefits to participants in lieu of the AmeriCorps educational awards

provided by the Corporation. AmeriCorps programs are strongly

encouraged to offer alternative post-service benefits to participants

who will not receive AmeriCorps educational awards. The Corporation

will evaluate on a case-by-case basis the rationales of programs that

do not plan to provide all participants with educational awards.

However, the Corporation anticipates that it will not approve

rationales based solely on a determination of economic need of

participants.

(8) Evaluation Requirements

In order to ensure that only high quality programs continue to

receive Corporation support, AmeriCorps programs must perform

continuous monitoring and evaluation. The provisions of this rule

emphasize the importance of monitoring and evaluation at all levels--by

individual programs, States or grantmaking entities, and the

Corporation.

This rule allows programs to conduct internal rather than

independent evaluations. The Corporation will conduct independent

evaluations at the national level because, due to economies of scale,

that is where they will be most cost-effective. Each program, State,

and grantmaking entity must collect data and cooperate fully in all of

the Corporation's monitoring and evaluation activities.

A key provision of the Corporation's evaluation strategy requires

all programs to set annual objectives in concert with the Corporation

and applicable grant-making entity. Programs will be required to track,

and report to the Corporation, progress towards these objectives.

Programs will be evaluated annually, in part, based on their success at

achieving their objectives.

Finally, this rule promotes continuous quality improvement and

provides examples of techniques available to programs.

(E) Program Types and Size

(1) Program Types

Section 2522.110 of this rule lists fourteen discrete types of

service programs that may qualify for AmeriCorps program funding. These

types, while sharing the goal of meeting our Nation's pressing needs,

differ in terms of which need is addressed, how the participants are

organized, the age and background of the participants, and the nature

of the sponsoring organization.

After careful and thorough consideration, the Corporation decided

not to include in the regulations any program types not listed in the

Act. This decision is not an attempt to restrict the types of eligible

AmeriCorps programs. On the contrary, it was specifically intended to

leave open-ended the types of programs that may be eligible.

The Act states that the Corporation may designate other AmeriCorps

types aside from those listed to qualify for AmeriCorps grants. The

Corporation decided that instead of attempting to list additional types

of programs, it would interpret this provision broadly, allowing for

the eligibility of any program type that meets the criteria applicable

to all programs.

The fourteen program types listed are clearly eligible for support,

and they may serve as guidelines for developing programs. However,

programs that meet the Corporation's eligibility and quality criteria

but that do not fit one of these types will not be disadvantaged in the

selection process. Conversely, because the Corporation wishes to fund

the highest quality programs that meet the Nation's most pressing

needs, the Corporation will not give priority to a program simply

because it fits the description of one of the listed program types.

Finally, any organization considering applying should determine

whether they are more appropriately a project sponsor than a program. A

program is responsible for recruiting, selecting, and training

participants, providing them benefits and support services, engaging

them in regular group activities, and placing them in projects. While

the program may also serve as the project sponsor by supervising the

day-to-day service of participants, the program may instead place

participants in projects overseen by another organization.

For example, a local police department could apply for funds to run

a community policing support program. It would recruit and select

participants, train them, and supervise them in a variety of projects.

In this case, the police department would be both the program and the

project sponsor. Alternatively, an organization that runs a program may

work in collaboration with one or more other organizations that will

serve as project sponsors. For example, a community-based organization

(CBO) may apply for funds to operate an early childhood development

corps. The CBO, as the program, would recruit and select participants,

provide them with specialized training in child development, and bring

them back together regularly for additional training and other

activities. The participants would be assigned individually or in small

groups to child care, Head Start, and preschool programs in the

community, which would serve as project sponsors.

In general, organizations who can engage productively no more than

four participants or that lack the capacity to perform the duties,

required of programs should consider becoming project sponsors. Such an

organization may form a partnership with another organization in the

community with a shared vision and mission that is interested in

becoming a program sponsor. Together, the organizations in the

partnership should be able to present a coherent program, including

common training and ongoing group activities, rather than a loosely

federated consortia with unrelated elements. Such an organization may

also contact the State Commission for information about funded programs

in the area that might place participants with the organization, or

contact the State ACTION office about the possibility of a VISTA being

assigned there.

(2) Minimum Program Size

It is extremely important for all programs, regardless of type, to

be large enough to achieve a demonstrable impact on the community

served. Thus, while the actual size of each program may vary depending

on the size of the community in which it operates, the design of the

program, and other factors, in general the Corporation encourages

programs to enroll at least twenty full-time equivalent participants,

regardless of whether participants are placed individually or in teams.

And while the Corporation will likely fund programs that exceed this

preferred minimum size, any applicant seeking support for a program

that does not intend to enroll at least twenty participants should

demonstrate why a smaller program is necessary or appropriate to a

specific circumstance.

This guideline should not only enhance the impact that programs

will have on a particular issue or within specific communities, but it

should also increase the ability of the Corporation and State

Commissions to ensure the delivery of high quality programming and

compliance with legislative and regulatory requirements. Accomplishing

these outcomes would be significantly more difficult with many small

groups of participants dispersed throughout a State or region.

It is important to note that this requirement relates to programs,

not to project sponsors. Thus, while programs should enroll at least

twenty participants, there is no minimum requirement for the number of

AmeriCorps participants which may be placed in an approved service site

or organization.

(F) Participant Eligibility and Benefits

(1) Terms of Service

Section 2522.220 specifies appropriate definitions and guidance

pertaining to terms of service. This rule clarifies that participants

shall receive benefits, including AmeriCorps educational awards, only

for their first two terms of service, regardless of whether those terms

of service are full-time, part-time, or a combination of both. It also

establishes that admission to a second or further term of service is

contingent upon successful completion and a positive performance review

of the first term. (Sec. 2522.220(c)(i) of this rule explains the

performance review.)

Participants and programs have substantial latitude in mixing

different types of terms of service. For example, a high school

graduate could participate full-time in a youth corps for one year, use

his or her educational award to pay for two years of community college,

participate in a part-time AmeriCorps program during college, and earn

another award to help pay the costs of attending a four-year

university. Alternatively, a participant could serve two consecutive

1\1/2\ year part-time terms of service while attending college; such a

participant would thus, in total, serve 1800 hours and earn two part-

time educational awards. A good example of this type of mixing of terms

of service would be a during-college program analogous to the Reserve

Officer Training Corps program, which engages participants in part-time

service during college, followed by a full-time placement after

graduation.

(2) Release from Terms of Service

Generally, participants can be released for two reasons: (i) they

want to be released due to compelling personal circumstances; or (ii)

they are released from the program for cause. In both cases, this rule

puts primary responsibility for determining when to release a

participant in the hands of the programs. Programs should be aware that

participants released due to compelling personal circumstances may

receive prorated educational awards whereas those released for cause

may not.

In addition, this rule requires programs to establish in writing

clear guidelines that establish the circumstances under which

participants will be released for cause. These documents must be signed

by the participant and by a representative of the program. The

Corporation encourages programs to establish attainable but high

standards for participant conduct. The Corporation requires programs to

release participants for cause if they are convicted of a felony. If

participants are charged with a violent felony or the sale or

distribution of a controlled substance, or if they are convicted of the

possession of a controlled substance, programs must suspend their

service without a living allowance and without receiving credit for

hours missed.

A participant who is wrongly released or suspended for cause will

receive credit for any service missed and reimbursement for missed

stipends. This rule further describes the conditions under which

participants whose service has been suspended may be reinstated, the

impact of release for cause, and the grievance procedure available to

participants. (See Sec. 2522.230)

(3) Living Allowances

In general, the Act requires that all programs receiving

Corporation assistance provide living allowances to full-time

participants. The amount of the living allowance must be at least the

average annual amount provided to VISTA volunteers (approximately

$7,440 for FY 1994 or about $4.40 per hour assuming a total of 1700

hours served) but not more than twice that amount. Of this, the

Corporation's share may not exceed 85% of the basic VISTA allowance (or

approximately $6,375). Programs must therefore provide a cash match for

their share of the stipend.

There are a number of exceptions to these requirements: a program

that was in existence prior to September 21, 1993, is by law exempt

from meeting the minimum stipend requirement; programs may, but are not

required to, provide living allowances to part-time participants; and

the Corporation may waive or reduce the minimum requirement at its

discretion (see Sec. 2522.240(b)(4) of this rule).

With this rule the Corporation also clarifies that the

Corporation's share will not exceed 85% of the living allowance,

regardless of whether the allowance has been reduced or prorated from

the minimum full-time allowance. Thus, if a program provides part-time

participants who serve 900 hours per year with an annualized stipend of

$3,960, the Corporations share would not exceed $3,366 (85% of the

part-time allowance).

Finally, the Corporation will pay no share of participant stipends

for a professional corps described in Sec. 2522.110(b)(3) that provides

stipends to participants in excess of the maximum allowance. However, a

program involving professionals that wishes to seek Corporation support

for participant stipends or benefits while not technically a

``professional corps'' may do so by applying under the general

provision (Sec. 2522.110(g)). Such a program would be subject to the

same restrictions on stipends as other AmeriCorps programs.

(4) Child Care

The Act requires that programs provide child care or a child care

allowance to any full-time participant who needs such assistance in

order to participate. The regulations define need based on three

factors: total family income of the participant must be less than 75

percent of the State median income; the participant must reside with

and be a parent or guardian of a child under the age of 13; and the

participant must not be receiving child care assistance from another

source at the time of acceptance into the program, unless the

participant would become ineligible for child care by virtue of

enrollment in the program. These requirements were selected to be

consistent with the Child Care and Development Block Grant Act of 1990,

the major program through which the Federal government provides child

care to low- and middle-income families. To ensure that funded care

meets minimum health and safety standards, the regulations also tie

eligible providers and the amount of the child care allowance to the

Child Care and Development Block Grant of 1990. In implementing this

provision, the Corporation expects to reserve program funds for child

care benefits. Programs are asked in their applications to indicate how

many participants they expect to require such benefits. This will help

the Corporation determine the amount of funds that should be reserved.

(5) Health Insurance

The legislation requires the provision of health care benefits to

full-time AmeriCorps participants who are not otherwise insured. The

regulations provide for the Corporation to establish a minimum benefits

package and to tie the amount of funding for health care policies to an

affordable policy that provides these minimum benefits. The Corporation

welcomes comments on the contents of the minimum benefits package. Any

program wishing to provide alternative benefits may do so with approval

from the Corporation, provided that the policy has a fair market value

equal to or greater than the minimum benefits package.

Section II: Available Grants and Distribution of Funds

(A) Types of Grants Available

Eligible applicants may apply for planning, operating, or

replication grants. Applicants seeking operating or replication grants

also may apply for AmeriCorps educational awards. In addition, an

applicant may seek AmeriCorps educational awards only.

(1) Planning Grants

The purpose of a planning grant is to bring a program to the verge

of implementation so that it may compete successfully for operating

assistance in the following grant cycle. The Corporation will make

planning grants available to eligible applicants that already have

identified a sound concept for an AmeriCorps program, but that require

resources in order to plan, develop, and prepare the program for

implementation. (In this sense, planning grants more accurately may be

called ``development grants.'')

For example, a planning grant might be appropriate for an applicant

that has already identified the type of program to be developed,

including key design elements such as the specific need(s) to be

addressed, types of projects to be conducted, and kinds of participants

to be recruited. The program might lack, however, a specific training

or education curriculum, or it might need to build additional community

partnerships to identify specific service projects and activities to be

conducted. It might also lack a specific staffing or recruitment plan

and materials, or it might need to raise additional matching funds.

Thus, while the specific elements of the program might require

developmental assistance, the program design is nevertheless clear

enough to enable the Corporation to evaluate fully the nature of the

program and the prospective activities that it will undertake

(including the expected impact it will have on a particular issue or

problem). While the average size of grants awarded for planning and

development will vary by circumstance and need, in general, grants will

range from $50,000 to $250,000, depending on the size of the

prospective full-time program, and may cover a period of between six

months and one year, depending on the expected timing of the next grant

cycle.

(2) Operating Grants

The purpose of an operating grant is to support an applicant that

is ready to implement a fully developed new or expanded program.

Operating grants may include a short planning phase to complete the

final stages of program development before implementation. The

Corporation may award operating grants for a term of up to three years,

with annual renewal funding subject to periodic assessment of program

quality, successful performance against stated objectives, and

availability of appropriations. In general, the size of an operating

grant will reflect the size and costs of the proposed program. However,

the Corporation anticipates making few operating grants in excess of $4

million. While there are no absolute limitations on the number of

AmeriCorps educational awards an applicant may seek, the Corporation

will apportion these positions in a manner consistent with the

reasonable needs of programs. Moreover, programs are encouraged to take

a cost-effective approach based on per-participant costs. The

Corporation also encourages new or start-up programs to start

relatively small (generally between 20 and 50 participants, depending

on the needs of the program) in order to ensure high quality operations

in the first year. For new programs proposing multi-State or multi-site

operations, the Corporation also encourages piloting efforts in a

limited number of communities or locations to ensure quality before

undertaking significant expansion.

(3) Replication Grants

The purpose of a replication grant is to support the replication to

other sites or programs of a program model or component that has a

track record of success, identifiable core elements that account for

its effectiveness, and sufficient adaptability to local circumstances.

In its first year, the Corporation will evaluate proposals for

replication against criteria similar to those that apply to operating

grants. In future years, the Corporation may establish criteria that

are specific to replication grants, including a requirement for

independent evaluation results demonstrating the quality and

effectiveness of the program seeking replication.

The terms and size of replication grants, as well as the allotment

of AmeriCorps educational awards, are the same as for operating grants

as described in paragraph 2 above.

(4) Educational Awards Only

For programs that have adequate resources to cover program costs

and that meet all the requirements for an AmeriCorps program set forth

in part 2522 of this rule, the Corporation may make grants consisting

only of AmeriCorps educational awards. This rule clarifies that these

grants may be made either to programs that do not apply for program

assistance or to programs that apply for but do not receive program

assistance (see Sec. 2521.30(c)).

These types of grants are integral to the overall success of

AmeriCorps: they are an efficient use of limited resources; and they

allow for the inclusion of high-quality programs that might otherwise

be excluded due to the supplantation rule (which states that

Corporation assistance cannot supplant State, local or private funds).

However, programs that receive this type of grant must be of at least

as high-quality as programs that receive program assistance.

(5) Other Assistance

(a) Program development, training and technical assistance. The

Corporation will make grants to provide program development, training,

and technical assistance to improve the quality of service projects,

assist in the recruitment of diverse participants, improve educational

or other materials, and for other purposes (see Sec. 2524.40 of this

rule; also see part 2532, which describes other grants available for

training and technical assistance).

(b) Challenge grants. Section 2524.40 of this rule allows the

Corporation to make challenge grants to programs already receiving

Corporation assistance. With these challenge grants the Corporation may

provide up to $1 in assistance for every dollar raised by a program in

excess of the matching funds required for its existing Corporation

grant. More details concerning the specifics of this program are

provided in Sec. 2524.40 of this rule.

The Corporation views the challenge grant program as an important

component of its efforts to support AmeriCorps. It allows the

Corporation to leverage funds and expand the scope and reach of the

highest-quality AmeriCorps programs. However, because programs

generally will not receive AmeriCorps program grants until three-

quarters of the way through the fiscal year, the Corporation

anticipates making only a limited number of challenge grants in fiscal

year 1994 .

(c) Grants for outreach to qualified individuals with disabilities.

The Act authorizes the Corporation to make grants:

(i) To assist AmeriCorps grantees in placing applicants who require

reasonable accommodation (as defined in Sec. 101(9) of the Americans

with Disabilities Act of 1990) (42 U.S.C. 12111(9)) or auxiliary aids

and services (as defined in section 3(1) of such Act) (42 U.S.C.

12102(1)) in an AmeriCorps program; and

(ii) To conduct outreach activities to qualified individuals with

mental or physical disabilities to recruit them for participation in

AmeriCorps programs.

(d) Disaster relief. With this rule, the Corporation has determined

that in light of limited resources for this grant program, disaster

relief grants will only be made available to enable national and

community service programs to respond quickly and effectively to a

Presidentially-declared disaster.

The Corporation has also clarified eligibility requirements by

specifying that any AmeriCorps program (including youth corps, the

National Civilian Community Corps, VISTA, and other programs authorized

under the Domestic Volunteer Services Act) or grant making entity (such

as a State or Federal agency) that is supported by the Corporation may

apply to the Corporation for disaster relief grants.

Finally, the Corporation has specified that due to the limited

duration of disaster relief activities, it may waive certain matching

or program requirements if appropriate.

(B) Distribution of AmeriCorps Funds and Educational Awards

(1) State Formula Allotment and Corresponding Educational Awards

The Act specifies that of amounts available for allocation under

the grant program, the Corporation will make one-third available to

eligible State applicants through a population-based formula. For

fiscal year 1994, the Corporation expects that $51,833,333 will be

available for award by formula allotment. Because the Corporation is

committed to supporting only high quality AmeriCorps programs, this

formula distribution is not and will not be treated as an entitlement

for states. These regulations specify that only those applicants that

submit high quality applications consistent with the requirements

contained in part 2522 of this rule and have an approved State Plan

under part 2513 will receive their formula allotment. The Corporation

is committed to working with States to ensure that the programs funded

through their formula allotment will meet the quality standards

established in this rule. For fiscal year 1994, all States must submit

to the Corporation a notice of intent to apply for formula funds by

March 31, 1994. The formula allotment for States not intending to apply

(or that do not submit a notice of intent to apply by the required

date) will be made available to eligible local applicants within the

State consistent with Sec. 2521.30(d) of this rule.

In addition, the Act instructs the Corporation to distribute to

States receiving their formula allotment a ``corresponding allotment''

of AmeriCorps educational awards; however, the statute does not clarify

what ``corresponding allotment'' means. The Corporation has therefore

determined that the appropriate interpretation of the legal meaning of

the expression ``corresponding allotment'' is the number of educational

awards that directly corresponds with the expected number of approved

AmeriCorps positions to be supported with program assistance.

Because a direct correlation does not exist between program dollars

and educational awards, the Corporation determined that it needed to

establish a plausible monetary relationship between the total value of

a State's formula award and the number of educational awards it would

receive. This relationship was determined by dividing each State's

formula award by the anticipated average Federal share of the cost of

an AmeriCorps position, calculated at $13,800 per participant (Program

Money$13,800=Educational Awards).\1\ Basing the definition of

``corresponding allotment'' on a relationship between program dollars

and educational awards reflects the Corporation's intent to ensure that

any State receiving program assistance for the support of AmeriCorps

participants would be ensured of receiving the requisite number of

educational awards for those participants. Thus, according to the above

calculus, Ohio, for example, will receive $2,228,498 through its

formula allotment and will also receive 161 AmeriCorps educational

awards. The overall expected distribution of formula grants and

educational awards is provided by State in the table below.

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

\1\This amount is exclusive of the national service educational

award, which is provided separately through the National Service

Trust Fund. This award represents an average estimated cost per

participant for start-up programs based on the experience of the

national service model programs funded by the Commission on National

and Community Service. Average costs for established programs,

including youth corps programs, are generally significantly lower.

Because the Corporation anticipates funding start-up programs as

well as programs that build on the infrastructure of existing

programs and organizations, and because the Corporation will

strongly encourage programs to exceed the minimum matching

requirements, it is expected that many programs will achieve

significantly lower average costs per position.

Formula Allocation of Program Funds and AmeriCorps Educational Awards to

States\1\

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

Program Educational

State funds awards

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

Alabama....................................... $831,565 60

Alaska........................................ 112,977 8

Arkansas...................................... 483,521 35

Arizona....................................... 752,837 55

California.................................... 6,107,718 443

Colorado...................................... 677,088 49

Connecticut................................... 674,582 49

Delaware...................................... 136,874 10

District of Columbia.......................... 124,841 9

Florida....................................... 2,661,624 193

Georgia....................................... 1,332,191 97

Hawaii........................................ 228,283 17

Idaho......................................... 207,141 15

Illinois...................................... 2,347,085 170

Indiana....................................... 1,138,927 83

Iowa.......................................... 570,551 41

Kansas........................................ 508,771 37

Kentucky...................................... 757,132 55

Louisiana..................................... 867,509 63

Maine......................................... 252,425 18

Maryland...................................... 982,217 71

Massachusetts................................. 1,234,071 89

Michigan...................................... 1,909,484 138

Minnesota..................................... 897,970 65

Mississippi................................... 529,412 38

Missouri...................................... 1,051,644 76

Montana....................................... 164,498 12

Nebraska...................................... 324,351 24

Nevada........................................ 246,884 18

New Hampshire................................. 228,004 17

New Jersey.................................... 1,586,048 115

New Mexico.................................... 311,489 23

New York...................................... 3,693,483 268

North Carolina................................ 1,362,733 99

North Dakota.................................. 131,279 10

Ohio.......................................... 2,228,498 161

Oklahoma...................................... 646,322 47

Oregon........................................ 584,123 42

Pennsylvania.................................. 2,440,838 177

Puerto Rico................................... 736,670 53

Rhode Island.................................. 205,912 15

South Carolina................................ 717,574 52

South Dakota.................................. 143,281 10

Tennessee..................................... 1,002,281 73

Texas......................................... 3,491,927 253

Utah.......................................... 353,656 26

Vermont....................................... 115,641 8

Virginia...................................... 1,272,453 92

Washington.................................... 1,000,500 72

West Virginia................................. 368,770 27

Wisconsin..................................... 1,004,349 73

Wyoming....................................... 93,332 7

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

Totals...................................... 51,833,333 3,756

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

\1\The actual amount of each State's grant will be proportionally

reduced if the Corporation chooses to set aside money for participant

health and/or child care costs. In addition, numbers are based on the

1990 census but will be updated to incorporate the latest census

estimates from the Census Bureau.

The Corporation will consider the number of educational awards that

corresponds to a State's formula allotment as a minimum, and not as a

maximum, number of educational awards potentially provided to a State.

Thus, a State's ``minimum'' formula and award allotments should not

necessarily drive the design or size of programs applying for

assistance through State applications. Indeed, insofar as the formula

application includes high quality, cost-effective programs that request

more educational awards than would otherwise be provided through the

minimum allotment, those programs would be eligible to receive

additional awards from the Corporation on a competitive basis.

This mechanism for distributing educational awards not only

satisfies the legislative requirement but also makes sense for policy

and programmatic reasons. In making this determination, the Corporation

did, however, consider other alternatives. For example, the Corporation

considered the possibility of distributing the awards on a basis

proportional to the distribution of formula grants. Thus a State

receiving 12% of the total amount of funding available by formula

allocation would also receive the same percentage of educational

awards. The Corporation did not choose this option for several reasons.

First, from a legal standpoint, if the Congress had intended for

there to be a direct, proportional correlation between the overall

distribution of program funds and the overall distribution of

AmeriCorps educational awards, it would not have created educational

award set-asides for VISTA and CCC volunteers; nor would it have

allowed for the distribution of educational awards to programs the

Corporation does not fund or programs, such as professional corps, that

necessitate different levels of Federal support than other programs.

Second, from a programmatic standpoint, the distribution of

educational awards on a strict proportional basis would have resulted,

in some cases, in the unfortunate consequence of leaving some States

with insufficient programmatic funds to support the number of

participants for whom they would have received educational awards.

Finally, this approach also would have resulted in a lack of

flexibility on the part of the Corporation to provide support to

programs on the basis of quality and need, rather than on the basis of

an arbitrary proportional rule that, as noted above, bears no

relationship to anticipated or real program costs.

In short, the Corporation's need to support quality programs, to

ensure adequate financial support for all approved AmeriCorps positions

and educational awards within those programs, and the need to retain

flexibility to respond to individual State and program needs are

addressed through this distributive scheme.

(2) State Competition

In order to receive consideration for competitive funds, a State

must receive its formula allotment. In addition to the grants made

available to States by formula allocation, the Corporation will make at

least one-third of program funds, as well as an appropriate number of

educational awards as determined by the Corporation, available to

States on a competitive basis. For fiscal year 1994, the Corporation

expects that $51,833,333 will be available for this competition. The

following priorities will govern the competitive distribution of

AmeriCorps funds and educational awards to States:

(a) Priority for small states. The Corporation is committed to

ensuring that every State is able to participate in a meaningful way in

the AmeriCorps grant program. Specifically, the Corporation seeks to

enable every State that so desires to support at least one high quality

AmeriCorps program that meets the preferred minimum size guidelines of

20 full-time equivalent participants as stipulated in section I(D)(2),

above. Thus, for fiscal year 1994 the Corporation has established a

priority for small States, whereby any State that: (i) Does not

otherwise receive through the legislatively required formula allocation

adequate funding to support at least 20 full-time AmeriCorps positions,

and the same number of educational awards, and (ii) which can

demonstrate the existence of a high quality program(s), will receive

priority consideration for assistance through competitive State

funding.

In essence, this priority effectively establishes a small State

floor in the amounts of $276,100\2\ and 20 AmeriCorps educational

awards for those affected States (indicated in the table in section

II(B)(1)) that meet the quality and need criteria indicated above. This

priority does not, however, constitute a guarantee of assistance to any

State. Although the priority for small States will result in programs

otherwise supported through a State's formula allotment receiving

limited competitive funding, these programs will not be required to

address the national priorities established by the Corporation,

notwithstanding the provision specified in Sec. 2522.410(b)(1)(ii) of

this rule. Thus, every State meeting the guidelines will be able to

support at least one program of the minimum preferred size that

addresses State-based priorities.

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

\2\This figure was calculated by multiplying the preferred

minimum number of national service participants per state (20) by

the average Federal cost per participant ($13,800)

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

(b) National issue priorities. All programs, except those affected

by paragraph (a) above, that are submitted through State applications

for competitive funding should address the national issue priorities

explained in section I(C)(2) of this supplementary section. In general,

most activities conducted by programs should substantially address one

or more of the national priorities. However, the Corporation may grant

waivers if a program demonstrates that its proposed activities are (i)

more essential for their communities and (ii) not being met in any

other way.

(c) Priority for existing grantees. In fiscal year 1994, the

Corporation will give priority to National Service Demonstration

Programs and American Conservation and Youth Service Corps Programs

that received funding from the Commission on National and Community

Service. While this one-year priority does not constitute a guarantee

for renewal funding, the Corporation expects that those programs that

meet the minimum requirements and quality standards stipulated in this

rule will receive support. In addition, States should give priority to

these programs as well.

(3) Direct National Competition

(a) Allocation. After funds have been allotted to the States and

set aside for Indian tribes and U.S. territories, any remaining

AmeriCorps program funds will be distributed directly by the

Corporation on a competitive basis. In fiscal year 1994, the

Corporation anticipates making $48.8 million available for award in

this category. In general, subdivisions of States, Indian tribes,

public or private nonprofit organizations (including labor

organizations), institutions of higher education, and Federal agencies

may apply for these funds, although no more than one-third may go to

Federal agencies. Unless a program has a clear and compelling reason

not to do so, programs funded through this competition should address

any national priorities established pursuant to Sec. 2522.410(b)(1)(ii)

of this rule.

(b) Limitations for fiscal year 1994. The Corporation will limit

this category of funding in fiscal year 1994 to the following:

(i) Programs operated or funded by Federal agencies.

(ii) Programs operated or funded by national nonprofit

organizations.

(iii) Professional corps programs.

(iv) Programs operated in more than one State.

The Corporation intends to use this category of funding primarily

to support programs that are national or regional in scope.

In general, programs that are operated locally by nonprofits,

subdivisions of States or institutions of higher education can and

should apply through their respective States; doing so will increase

the chances that the programs are part of a comprehensive State plan,

which will enable the Corporation to ensure that all local programs are

appropriately monitored and receive technical assistance necessary to

support high-quality programs.

To clarify the eligibility of applicants in fiscal year 1994, the

Corporation will consider a national nonprofit organization to be one

whose membership, activities, constituencies, or mission is national in

scope. In addition, although programs operated or funded by States are

not otherwise eligible to receive direct national competitive funds,

those National Service Demonstration Programs supported by the

Commission on National and Community Service that operate in more than

one State may compete for support in fiscal year 1994.

(c) Agreements with Federal agencies. Technically, when a Federal

agency competes for and receives program funds under this category, the

Corporation will not give that agency a grant but rather will enter

into a contract or cooperative agreement that includes the transfer of

funds. Federal agencies may either subgrant to other nonprofits or

other eligible entities, or operate programs directly. Through this

rule the Corporation has clarified the scope and purposes of the

prospective awards to Federal Agencies as follows:

(i) AmeriCorps grants should serve as ``seed money'' to leverage

agencies' existing resources and grant-making capacity toward the goal

of integrating service more fully into agencies' programs and

activities. Agencies should plan, ultimately, to support independently

service initiatives developed or expanded with Corporation assistance.

(ii) Only Cabinet level departments and independent agencies may

apply. Bureaus, division, and local and regional offices of such

departments and agencies can only apply through the central department

or agency. An application may, however, include proposals for more than

one program. The primary purpose of this restriction is to ensure that

all national and community service efforts within a department or

agency are centrally coordinated and are part of a coherent strategy.

The Corporation also expects that many programs supported by

Federal agencies with Corporation assistance will be sub-granted or

operated in partnership with community-based organizations.

(C) Application Requirements/Issues

(1) Content and Degree of Specificity

In Secs. 2522.300-320 of this rule, the Corporation specifies the

application requirements for all applicants seeking AmeriCorps program

assistance, including national service educational awards. While the

Corporation will provide applicants with additional guidance through

approved application materials, the Corporation will require every

applicant--regardless of whether the applicant is a State or other

eligible entity applying directly to the Corporation--to include a

complete, detailed description of the proposed program(s) to be funded.

In essence, applicants will not be able to apply to the Corporation

for assistance for the purpose of subgranting awards to programs or

organizations that are not yet known at the time of application.

Especially in the case of States or other subgranting entities,

applicants will therefore need to know the specific programs to be

proposed and will need to provide required information on such programs

at the time of application. This requirement will ensure that the

Corporation will have complete information with which to select the

highest quality programs.

In general, this requirement will apply to States for both formula

and competitive applications, although the degree of specificity about

programs may vary slightly. In fiscal year 1994, the Corporation--

through the application materials--will require States to summarize in

the narrative of the proposal information on programs proposed under

the formula allotment (although States will be required to provide a

complete application for each program in the appendix to the State's

application). Specific, detailed information will be required for each

individual program included in any application for competitive funding.

In addition, the statute requires that the Corporation obtain

certain information on all programs prior to making any award. This

information includes:

(a) A description of service placements. The Act requires that an

application for AmeriCorps program funds and/or educational awards

include a description of the positions into which participants will be

placed, as well as a description of the minimum qualifications that

individuals must meet to be placed in those positions.

With this rule, the Corporation requires that such descriptions

describe the nature of specific tasks to be performed by participants.

Although individual ``job descriptions'' are not required for every

participant, applicants should clearly identify the specific nature of

assignments to be performed by participants within service projects.

This provision not only addresses a legislative requirement but also

provides additional information that will enable the Corporation to

assess the expected impact the program will achieve.

(b) Coordination with State Plan. The Corporation proposes to

require all applicants that are not States coordinate their activities

with the application of the State, including the State Plan, so as to

build upon existing programs and not duplicate efforts. Applicants

applying directly to the Corporation in fiscal year 1994 will be

required to coordinate their planned efforts with the State in which

the program(s) will operate, notwithstanding the fact that the

application of the State will be due to the Commission after the

applications of applicants other than States. The application should

identify efforts undertaken to this effect, including documentation of

meetings or correspondence.

(2) Special Requirements for State Applicants

(a) Number of programs in the competitive portion of a State

application. To ensure that States submit only the highest quality

programs for funding, the Corporation has limited the number of

programs a State may include in its application for competitive funding

as indicated in the table below. Every State may include at least three

programs, and each State may include an additional program for each

full percentage point of the population that State contains. New York,

for example, will receive the initial three, plus an additional seven

corresponding to the 7% of the total population New York contains, for

a total of ten.

Maximum Number of Programs That May Be Included in States' Applications

for Competitive Funding

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

Maximum

State number of

programs

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

Alabama..................................................... 5

Alaska...................................................... 3

Arkansas.................................................... 4

Arizona..................................................... 4

California.................................................. 15

Colorado.................................................... 4

Connecticut................................................. 4

Delaware.................................................... 3

District of Columbia........................................ 3

Florida..................................................... 8

Georgia..................................................... 6

Hawaii...................................................... 3

Idaho....................................................... 3

Illinois.................................................... 8

Indiana..................................................... 5

Iowa........................................................ 4

Kansas...................................................... 4

Kentucky.................................................... 4

Louisiana................................................... 5

Maine....................................................... 3

Maryland.................................................... 5

Massachusetts............................................... 5

Michigan.................................................... 7

Minnesota................................................... 5

Mississippi................................................. 4

Missouri.................................................... 5

Montana..................................................... 3

Nebraska.................................................... 4

Nevada...................................................... 3

New Hampshire............................................... 3

New Jersey.................................................. 6

New Mexico.................................................. 4

New York.................................................... 10

North Carolina.............................................. 6

North Dakota................................................ 3

Ohio........................................................ 7

Oklahoma.................................................... 4

Oregon...................................................... 4

Pennsylvania................................................ 8

Puerto Rico................................................. 4

Rhode Island................................................ 3

South Carolina.............................................. 4

South Dakota................................................ 3

Tennessee................................................... 5

Texas....................................................... 10

Utah........................................................ 4

Vermont..................................................... 3

Virginia.................................................... 5

Washington.................................................. 5

West Virginia............................................... 4

Wisconsin................................................... 5

Wyoming..................................................... 3

-----------

Totals................................................ 256

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

Because of the limited amount of funding available, the selection

process will be very competitive, with only about one in five proposed

programs likely to receive support. Furthermore, the Corporation does

not anticipate that any one State will receive more than a third of the

available funds, and most States will receive considerably less. States

are advised to submit applications proposing only coherent, high

quality programs that: address the program and size requirements

explained in part 2522 of this rule; are consistent with the State

plan; and are cost-effective. States will not increase the chances of

their programs receiving funding by increasing the total number of

programs they submit.

(b) Use of competitive funds to support programs included in the

formula portion of a State application. The cost of programs included

in the formula application may not exceed a State's formula allotment.

However, from the competitive State funds, States may request

additional funds and educational awards for programs listed in the

formula section of the applications if either (i) the State receives

small State priority consideration (as explained in Sec. II(B)(2),

above), or (ii) programs listed in the formula portion of the

application meet the national priorities explained in Sec. I(C)(2),

above. Nevertheless, States should clearly indicate which programs will

be supported with formula assistance if competitive funding is not

received.

(c) Limitation on State-run programs. The Act requires an assurance

that at least sixty percent of Corporation assistance provided to a

State will be used to support programs that are not operated by the

State or State agency. However, the Corporation may waive this

requirement if a State demonstrates that it did not receive an adequate

number of acceptable applications from applicants other than States

during the competitive selection process.

The Corporation recognizes that this provision may be problematic

for some States with large existing AmeriCorps programs previously

supported by the Commission on National and Community Service,

especially if the programs are operated by the State (through a

department or agency). Such States should not attempt to comply with

the 60% requirement if doing so would necessitate submission of more

than five program proposals for competitive funding, proposals with

inflated budgets, or proposals for programs that are not of high

quality. In order to ensure that States with large existing grantees

may participate, the Corporation will consider such States unable to

comply.

(D) Selection Criteria Issues

In order to preserve maximum flexibility from year to year to

respond to changing priorities, the proposed regulations do not

substantively add to or modify the selection criteria listed in the

statute, except that, for State applicants, the quality of the State

plan will be a criterion in the selection of programs. As explained in

the ``State Plan'' section of this Supplementary Section above, the

quality of the State plan will be one factor in determining whether a

State's application for its formula allotment is accepted or rejected,

and insofar as a State has a high-quality State plan it will benefit

those programs in the competitive selection process as well. Other

changes or additions to the selection criteria will be provided

annually in the Corporation's application materials.

Investment for Quality and Innovation Issues

(1) Purpose

The Investment for Quality and Innovation activities are a

relatively small but nevertheless critical component of the

Corporation's overall national and community service efforts.

Activities funded under this part aim to build service infrastructure,

and include training, technical assistance, fellowships, service

awards, clearinghouses, research, recruitment, and innovative and

demonstration programs.

The Investment for Quality and Innovation activities apply to a

broad spectrum of service areas, including, but not limited to, the

service-learning and AmeriCorps programs described in parts 2515-2524

of this rule. (Conversely, the training and technical assistance

activities described in part 2524 of this rule target strictly the

AmeriCorps programs described in parts 2520-2523.) All of these

activities, however, are aimed at improving the quality of the service

field and, ultimately, at finding the best ways to meet the Nation's

needs through service.

(2) Priorities

This rule divides these activities into three groups: Innovative

and Special Demonstration Programs; Technical Assistance, Training, and

Other Service Infrastructure-building Activities; and Special

Activities. The precise activities that are allowable under each area

are specified in parts 2531-2533. Given the limited resources that will

be allotted to these activities (the Corporation anticipates the

availability of $15 million in fiscal year 1994), the Corporation may

exercise its statutory authority to set priorities that will limit the

categories of activities that will be eligible for funding. If the

Corporation chooses to establish such priorities for fiscal year 1994,

it will seek to concentrate funds on those activities that will be most

effective and efficient in building service infrastructure.

Miscellaneous Requirements

Interested parties should be advised that because the assistance

provided under the authority of this rule constitutes Federal financial

assistance for the purposes of title VI of the Civil Rights Act of 1964

(which bars discrimination based on race, color, or national origin),

title IX of the Education Amendments of 1972 (which bars discrimination

on the basis of gender), the Rehabilitation Act of 1973 (which bars

discrimination on the basis of disability), and the Age Discrimination

Act of 1975 (which bars discrimination on the basis of age), grantees

will be required to comply with the aforementioned provisions of

Federal law.

Grant recipients will be expected to expend Corporation grants in a

judicious and reasonable manner, consistent with pertinent provisions

of Federal law and regulations. Grantees must keep records according to

Corporation guidelines, including records that fully disclose the

amount and disposition of the proceeds of a Corporation grant. The

Inspector General of the Corporation (or other authorized official)

shall have access, for the purpose of audit and examination, to the

books and records of grantees that may be related or pertinent to the

Corporation grant.

Grantees should further be advised that Uniform Administrative

Requirements for Grants and Cooperative Agreements to State and Local

Governments, and Administrative Requirements for Grants and Cooperative

Agreements to other than State and Local Governments, as well as

regulations for the Privacy Act, Freedom of Information Act, Sunshine

Act, Government-wide Debarment and Suspension, and Government-wide

Requirements for Drug-Free Workplace will also be published prior to

awarding grants.

As required by the Regulatory Flexibility Act, it is hereby

certified that this rule will not have a significant impact on small

business entities.

The Corporation has separately submitted to the Office of

Management and Budget, under the terms of the Paperwork Reduction Act,

application packages to be used by applicants when applying for

Corporation grants. To request copies of the applications, please

contact the Corporation for National and Community Service at the

address listed above.

As required by the Paperwork Reduction Act of 1980, the Corporation

will submit the information collection requirements contained in this

rule to the Office of Management and Budget for its review (44 U.S.C.

3504(h)). The information collection requirements are needed in order

to provide assistance to parties affected by these regulations, in

accordance with statutory mandates.

(Catalog of Federal Domestic Assistance Numbers: 94.003 for State

Commissions, Alternative Administrative Entities, and Transitional

Entities; 94.004 for K-12 Service-Learning Programs; 94.005 for

Higher Education Service-Learning Programs; 94.006 for AmeriCorps

Programs; 94.007 for Investment for Quality and Innovation Programs)

List of Subjects

45 CFR Part 2510

Grant programs--social programs, Volunteers.

45 CFR Part 2513

Grant programs--social programs, Reporting and recordkeeping

requirements, Volunteers.

45 CFR Part 2515

Grant programs--social programs, Nonprofit organizations,

Volunteers.

45 CFR Part 2516

Elementary and secondary education, Grant programs--social

programs, Indians, Nonprofit organizations, Reporting and recordkeeping

requirements, Volunteers.

45 CFR Part 2517

Community development, Grant programs--social programs, Nonprofit

organizations, Reporting and recordkeeping requirements, Volunteers.

45 CFR Part 2518

Grant programs--social programs, Nonprofit organizations, Reporting

and recordkeeping requirements, Volunteers.

45 CFR Part 2519

Colleges and universities, Grant programs--social programs,

Nonprofit organizations, Reporting and recordkeeping requirements,

Volunteers.

45 CFR Part 2520

AmeriCorps, Grant programs--social programs, Volunteers.

45 CFR Part 2521

AmeriCorps, Grant programs--social programs, Volunteers.

45 CFR Part 2522

AmeriCorps, Grant programs--social programs, Reporting and

recordkeeping requirements, Volunteers.

45 CFR Part 2523

AmeriCorps, Grant programs--social programs, Volunteers.

45 CFR Part 2524

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

Volunteers.

45 CFR Part 2530

Grant programs--social programs, Volunteers.

45 CFR Part 2531

Grant programs--social programs, Volunteers.

45 CFR Part 2532

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

45 CFR Part 2533

Decorations, Medals, Awards, Scholarships and fellowships,

Volunteers.

45 CFR Part 2540

Administrative practice and procedure, Grant programs--social

programs, Reporting and recordkeeping requirements, Volunteers.

Dated: January 3, 1994.

Catherine Milton,

Vice President and Director of National and Community Service Programs.

Accordingly, the Corporation amends title 45, chapter XXV of the

Code of Federal Regulations by adding parts 2510, 2513, 2515 through

2524, 2530 through 2533, and 2540 to read as follows:

PART 2510--OVERALL PURPOSES AND DEFINITIONS

Sec.

2510.10 What are the purposes of the programs and activities of the

Corporation for National and Community Service?

2510.20 Definitions.

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

Sec. 2510.10 What are the purposes of the programs and activities of

the Corporation for National and Community Service?

The National and Community Service Trust Act of 1993 established

the Corporation for National and Community Service (the Corporation).

The Corporation's mission is to engage Americans of all ages and

backgrounds in community-based service. This service will address the

Nation's educational, public safety, human, and environmental needs to

achieve direct and demonstrable results. In doing so, the Corporation

will foster civic responsibility, strengthen the ties that bind us

together as a people, and provide educational opportunity for those who

make a substantial commitment to service. The Corporation will

undertake activities and provide assistance to States and other

eligible entities to support national and community service programs

and to achieve other purposes consistent with its mission.

Sec. 2510.20 Definitions.

The following definitions apply to terms used in 45 CFR parts 2510

through 2550:

Act. The term Act means the National and Community Service Act of

1990, as amended (42 U.S.C. 12501 et seq.).

Administrative costs. The term administrative costs means costs

associated with the overall administration of a Corporation program.

(1) Administrative costs include such costs as the following:

(i) Indirect costs (i.e., costs identified with two or more cost

objectives but not identified with a particular cost objective) as

described in applicable provisions of Office of Management and Budget

Circulars that relate to indirect costs.

(ii) Costs for financial, accounting, or contracting functions.

(iii) Costs for insurance that protects the entity that operates

the program.

(iv) Costs for salaries and benefits of the director and any other

administrative staff of the program.

(2) Administrative costs do not include allowable costs directly

related to program operations. These program costs include such costs

as the following:

(i) Costs for living allowances and training of participants.

(ii) Costs for staff training.

(iii) Costs for travel.

(iv) Costs related to the evaluation of the program.

(v) Costs for salaries and benefits of staff who recruit, train,

place, or supervise participants.

(3) Particular costs such as those associated with staff who

perform both administrative and program functions may be prorated

between administrative costs and costs directly related to program

operations.

Adult volunteer. The term adult volunteer means an individual, such

as an older adult, an individual with a disability, a parent, or an

employee of a business or public or private nonprofit organization,

who--

(1) Works without financial remuneration in an educational

institution to assist students or out-of-school youth; and

(2) Is beyond the age of compulsory school attendance in the State

in which the educational institution is located.

AmeriCorps. The term AmeriCorps means the combination of all

AmeriCorps programs and participants.

AmeriCorps educational award. The term AmeriCorps educational award

means a national service educational award described in section 147 of

the Act.

AmeriCorps participant. The term AmeriCorps participant means any

individual who is serving in--

(1) An AmeriCorps program;

(2) An approved AmeriCorps position; or

(3) Both.

AmeriCorps program. The term AmeriCorps program means--

(1) Any program that receives approved AmeriCorps positions;

(2) Any program that receives Corporation funds under section 121

of the Act; or

(3) Both.

Approved AmeriCorps position. The term approved AmeriCorps position

means an AmeriCorps position for which the Corporation has approved the

provision of an AmeriCorps educational award as one of the benefits to

be provided for successful service in the position.

Carry out. The term carry out, when used in connection with an

AmeriCorps program described in section 122 of the Act, means the

planning, establishment, operation, expansion, or replication of the

program.

Chief Executive Officer. The term Chief Executive Officer, except

when used to refer to the chief executive officer of a State, means the

Chief Executive Officer of the Corporation appointed under section 193

of the Act.

Community-based agency. The term community-based agency means a

private nonprofit organization (including a church or other religious

entity) that--

(1) Is representative of a community or a significant segment of a

community; and

(2) Is engaged in meeting educational, public safety, human, or

environmental community needs.

Corporation. The term Corporation means the Corporation for

National and Community Service established under section 191 of the

Act.

Economically disadvantaged. The term economically disadvantaged

means, with respect to an individual, an individual who is determined

by the Chief Executive Officer to be low-income according to the latest

available data from the Department of Commerce.

Elementary school. The term elementary school has the same meaning

given the term in section 1471(8) of the Elementary and Secondary

Education Act of 1965 (20 U.S.C. 2891(8)).

Indian. The term Indian means a person who is a member of an Indian

tribe, or is a `Native', as defined in section 3(b) of the Alaska

Native Claims Settlement Act (43 U.S.C. 1602(b)).

Indian lands. The term Indian lands means any real property owned

by an Indian tribe, any real property held in trust by the United

States for an Indian or Indian tribe, and any real property held by an

Indian or Indian tribe that is subject to restrictions on alienation

imposed by the United States.

Indian tribe. The term Indian tribe means--

(1) An Indian tribe, band, nation, or other organized group or

community, including--

(i) Any Native village, as defined in section 3(c) of the Alaska

Native Claims Settlement Act (43 U.S.C. 1602(c)), whether organized

traditionally or pursuant to the Act of June 18, 1934 (commonly known

as the `Indian Reorganization Act', 25 U.S. C. 461 et seq.); and

(ii) Any Regional Corporation or Village Corporation, as defined in

subsection (g) or (j), respectively, of section 3 of the Alaska Native

Claims Settlement Act (43 U.S.C. 1602 (g) or (j)), that is recognized

as eligible for the special programs and services provided by the

United States under Federal law to Indians because of their status as

Indians; and

(2) Any tribal organization controlled, sanctioned, or chartered by

an entity described in paragraph (1) of this definition.

Individual with a disability. Except as provided in section 175(a)

of the Act, the term individual with a disability has the meaning given

the term in section 7(8)(B) of the Rehabilitation Act of 1973 (29

U.S.C. 706(8)(B)), and includes an individual with a physical or mental

impairment.

Infrastructure-building activities. The term infrastructure-

building activities refers to activities that increase the capacity of

organizations, programs and individuals to provide high quality service

to communities.

Institution of higher education. The term institution of higher

education has the same meaning given the term in section 1201(a) of the

Higher Education Act of 1965 (20 U.S.C. 1141(a)).

Local educational agency (LEA). The term local educational agency

has the same meaning given the term in section 1471(12) of the

Elementary and Secondary Education Act of 1965 (20 U.S.C. 2891(12)).

National nonprofit. The term national nonprofit means any nonprofit

organization whose mission, membership, activities, or constituencies

are national in scope.

National service laws. The term national service laws means the Act

and the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4950 et

seq.).

Objective. The term objective means a desired accomplishment of a

program.

Out-of-school youth. The term out-of-school youth means an

individual who--

(1) Has not attained the age of 27;

(2) Has not completed college or its equivalent; and

(3) Is not enrolled in an elementary or secondary school or

institution of higher education.

Participant. (1) The term participant means an individual enrolled

in a program that receives assistance under the Act.

(2) A participant may not be considered to be an employee of the

program in which the participant is enrolled.

Partnership program. The term partnership program means a program

through which an adult volunteer, a public or private nonprofit

organization, an institution of higher education, or a business assists

a local educational agency.

Program. The term program, unless the context otherwise requires,

and except when used as part of the term academic program, means a

program described in section 111(a) (other than a program referred to

in paragraph (3)(B) of that section), 117A(a), 119(b)(1), or 122(a) of

the Act, or in paragraph (1) or (2) of section 152(b) of the Act, or an

activity that could be funded under sections 198, 198C, or 198D of the

Act.

Program sponsor. The term program sponsor means an entity

responsible for recruiting, selecting, and training participants,

providing them benefits and support services, engaging them in regular

group activities, and placing them in projects.

Project. The term project means an activity, carried out through a

program that receives assistance under the Act, that results in a

specific identifiable service or improvement that otherwise would not

be done with existing funds, and that does not duplicate the routine

services or functions of the employer to whom participants are

assigned.

Project sponsor. The term project sponsor means an organization, or

other entity, that has been selected to provide a placement for a

participant.

Qualified individual with a disability. The term qualified

individual with a disability has the meaning given the term in section

101(8) of the Americans with Disabilities Act of 1990 (42 U.S.C.

12111(8)).

School-age youth. The term school-age youth means--

(1) Individuals between the ages of 5 and 17, inclusive; and

(2) Children with disabilities, as defined in section 602(a)(1) of

the Individuals with Disabilities Education Act (20 U.S.C. 1401(a)(1)),

who receive services under part B of that Act.

Secondary school. The term secondary school has the same meaning

given the term in section 1471(21) of the Elementary and Secondary

Education Act of 1965 (20 U.S.C. 2891(21)).

Service-learning. The term service-learning means a method under

which students or participants learn and develop through active

participation in thoughtfully organized service that--

(1) Is conducted in and meets the needs of a community and is

coordinated with an elementary school, secondary school, institution of

higher education, or community service program, and with the community;

(2) Helps foster civic responsibility;

(3) Is integrated into and enhances the academic curriculum of the

students or the educational components of the community service program

in which the participants are enrolled; and

(4) Includes structured time for the students and participants to

reflect on the service experience.

Service-learning coordinator. The term service-learning coordinator

means an individual trained in service-learning who identifies

community partners for LEAs; assists in designing and implementing

local partnerships service-learning programs; provides technical

assistance and information to, and facilitates the training of,

teachers; and provides other services for an LEA.

State. The term State means each of the several States, the

District of Columbia, the Commonwealth of Puerto Rico, the United

States Virgin Islands, Guam, American Samoa, and the Commonwealth of

the Northern Mariana Islands. The term also includes Palau, until the

Compact of Free Association is ratified.

State Commission. The term State Commission means a State

Commission on National and Community Service maintained by a State

pursuant to section 178 of the Act. Except when used in section 178,

the term includes an alternative administrative entity for a State

approved by the Corporation under that section to act in lieu of a

State Commission.

State educational agency (SEA). The term State educational agency

has the same meaning given that term in section 1471(23) of the

Elementary and Secondary Education Act of 1965 (20 U.S.C. 2891(23)).

Student. The term student means an individual who is enrolled in an

elementary or secondary school or institution of higher education on a

full-time or part-time basis.

Subdivision of a State. The term subdivision of a State means a

governmental unit within a State other than a unit with Statewide

responsibilities.

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

SELECTION CRITERIA

Sec.

2513.10 Who must submit a State Plan?

2513.20 What are the purposes of a State Plan?

2513.30 What information must a State Plan contain?

2513.40 How will the State Plans be evaluated?

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

Sec. 2513.10 Who must submit a State Plan?

The fifty States, the District of Columbia and Puerto Rico, through

a Corporation-approved State Commission, Alternative Administrative

Entity, or Transitional Entity must submit a comprehensive national and

community service plan (``State Plan'') in order to apply to the

Corporation for support under parts 2515 through 2524 of this chapter.

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

The purposes of the State Plan are:

(a) To set forth the State's plan for promoting national and

community service and strengthening its service infrastructure,

including how Corporation-funded programs fit into the plan;

(b) To establish specific priorities and goals that advance the

State's plan for strengthening its service program infrastructure and

to specify strategies for achieving the stated goals;

(c) To inform the Corporation of the relevant historical background

of the State's infrastructure for supporting national and community

service and other volunteer opportunities, as well as the current

status of such infrastructure;

(d) To assist the Corporation in making decisions on applications

to receive formula and competitive funding under Sec. 2521.30 of this

chapter and to assist the Corporation in assessing a State's

application for renewal funding for State administrative funds as

provided in part 2550 of this chapter; and

(e) To serve as a working document that forms the basis of on-going

dialogue between the State and the Corporation and which is subject to

modifications as circumstances require.

Sec. 2513.30 What information must a State Plan contain?

The State Plan must include the following information:

(a) An overview of a State's experience in coordinating and

supporting the network of service programs within the State that

address educational, public safety, human, and environmental needs,

including, where appropriate, a description of specific service

programs. This overview should encompass programs that have operated

independently of and/or without financial support from the State;

(b) A description of the State's priorities and vision for

strengthening the service program infrastructure, including how

programs proposed for Corporation funding fit into this vision. The

plan should also describe how State priorities relate to any national

priorities established by the Corporation;

(c) A description of the goals established to advance the State's

plan, including the strategies for achieving such goals. With respect

to technical assistance activities (if any) and programs proposed to be

funded by the Corporation, the plan should describe how such activities

and programs will be coordinated with other service programs within the

State. The plan should also describe the manner and extent to which the

proposed programs will build on existing programs, including

Corporation programs such as Serve-America, Higher Education, and

programs funded under the Domestic Volunteer Service Act and other

programs;

(d) A description of the extent to which the State entity has

coordinated its efforts with the State educational agency (SEA) in the

SEA's application for school-based service learning funds;

(e) A description of how the State reached out to a broad cross-

section of individuals and organizations to obtain their participation

in the development of the State plan, including a discussion of the

types of organizations and individuals who were actually involved in

the process and the manner and extent of their involvement; and

(f) Such other information as the Corporation may reasonably

require.

Sec. 2513.40 How will the State Plans be evaluated?

State plans will be evaluated on the basis of the following

criteria:

(a) The quality of the plan as evidenced by:

(1) The development and quality of realistic goals and objectives

for moving service ahead in the State;

(2) The extent to which proposed strategies can reasonably be

expected to accomplish stated goals;

(3) The extent of input in the development of the State plan from a

broad cross-section of individuals and organizations including

community-based agencies; organizations with a demonstrated record of

providing educational, public safety, human, or environmental services;

residents of the State, including youth and other prospective

participants, State Education Agencies; traditional service

organizations; and labor unions;

(b) The sustainability of the national service efforts outlined in

the plan, as evidenced by the extent to which they are supported by:

(1) The State, through financial, in-kind and bi-partisan political

support, including the existence of supportive legislation; and

(2) Other support, including the financial, in-kind and other

support of the private sector, foundations, and other entities and

individuals; and

(c) Such other criteria as the Corporation deems necessary.

PART 2515--SERVICE-LEARNING PROGRAM PURPOSES AND DEFINITIONS

Sec.

2515.10 What are the service-learning programs of the Corporation

for National and Community Service?

2515.20 What definitions apply to service-learning programs?

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

Sec. 2515.10 What are the service-learning programs of the Corporation

for National and Community Service?

(a) There are three service-learning programs:

(1) School-based programs, described in part 2516 of this chapter.

(2) Community-based programs, described in part 2517 of this

chapter.

(3) Higher education programs, described in part 2519 of this

chapter.

(b) Each program gives participants the opportunity to learn and

develop their own capabilities through service-learning, while

addressing needs in the community.

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

In addition to the definitions in Sec. 2510.20 of this chapter, the

following definitions apply to terms used in parts 2515 through 2519 of

this chapter.

Grantmaking entity. (1) For school-based programs, the term

grantmaking entity means a public or private nonprofit organization

experienced in service-learning that--

(i) Submits an application to make grants for school-based service-

learning programs; and

(ii) Was in existence at least one year before the date on which

the organization submitted the application.

(2) For community-based programs, the term grantmaking entity means

a qualified organization that--

(i) Submits an application to make grants to qualified

organizations to implement, operate, expand, or replicate community-

based service programs that provide for educational, public safety,

human, or environmental service by school-age youth in two or more

States; and

(ii) Was in existence at least one year before the date on which

the organization submitted the application.

Partnership. The term partnership means an organization comprised

of two or more entities that have entered into a written agreement

specifying the responsibilities of each partner with respect to a

service-learning program.

Qualified organization. The term qualified organization means a

public or private nonprofit organization, other than a grantmaking

entity, that--

(1) Has experience in working with school-age youth; and

(2) Was in existence at least one year before the date on which the

organization submitted an application for a service-learning program.

U.S. Territory. The term U.S. Territory means the Virgin Islands,

Guam, American Samoa, the Commonwealth of the Northern Mariana Islands,

and Palua, until the Compact of Free Association with Palau is

ratified.

PART 2516--SCHOOL-BASED SERVICE-LEARNING PROGRAMS

Subpart A--Eligibility to Apply

Sec.

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

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

Subpart B--Use of Grant Funds

2516.200 How may grant funds be used?

Subpart C--Eligibility to Participate

2516.300 Who may participate in a school-based service-learning

program?

2516.310 May private school students participate?

Subpart D--Application Contents

2516.400 What must a State or Indian tribe include in an

application for a grant?

2516.410 What must a grantmaking entity, local partnership, or LEA

include in an application for a grant?

2516.420 What must an LEA, local partnership, or qualified

organization include in an application for a subgrant?

Subpart E--Application Review

2516.500 How does the Corporation review the merits of an

application?

2516.510 What happens if the Corporation rejects a State's

application for an allotment grant?

2516.520 How does a State, Indian tribe, or grantmaking entity

review the merits of an application?

Subpart F--Distribution of Funds

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

distributed?

Subpart G--Funding Requirements

2516.700 Are matching funds required?

2516.710 Are there limits on the use of funds?

2516.720 What is the length of each type of grant?

2516.730 May an applicant submit multiple applications for the same

project?

Subpart H--Monitoring and Evaluation Requirements

2516.800 What are the purposes of monitoring and evaluation?

2516.810 By what standards will service-learning programs be

evaluated?

2516.820 What must grantees and subgrantees do to monitor and

evaluate the effectiveness of their programs?

2516.830 What must a Corporation grantee do to monitor and evaluate

the effectiveness of the programs of its subgrantees?

2516.840 Must grantees or subgrantees perform independent

evaluations?

2516.850 What will the Corporation do to evaluate the overall

success of the service-learning program?

2516.860 Will information on individual participants be kept

confidential?

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

Subpart A--Eligibility to Apply

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

(a) The following entities may apply for a direct grant from the

Corporation:

(1) A State, through a State educational agency (SEA) as defined in

Sec. 2510.20 of this chapter. For the purpose of this part, ``State''

means one of the 50 States, the District of Columbia, the Commonwealth

of Puerto Rico, and, except for the purpose of Sec. 2516.600 (b), U.S.

Territories.

(2) An Indian tribe.

(3) A U.S. Territory as defined in Sec. 2515.20 of this chapter.

(4) A grantmaking entity as defined in Sec. 2515.20 of this

chapter.

(5) For activities in a nonparticipating State, a local educational

agency (LEA) as defined in Sec. 2510.20 of this chapter or a local

partnership as described in Sec. 2516.110.

(b) The types of grants for which each entity is eligible are

described in Sec. 2516.200.

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

Entities that may apply for a subgrant from a State, Indian tribe,

or grantmaking entity are:

(a) An LEA, for a grant from a State for planning school-based

service-learning programs.

(b) A local partnership, for a grant from a State or a grantmaking

entity to implement, operate, or expand a school-based service learning

program.

(1) The partnership must include an LEA and one or more community

partners. The partnership may include a private for-profit business or

private elementary or secondary school.

(2) The community partners must include a public or private

nonprofit organization that has demonstrated expertise in the provision

of services to meet educational, public safety, human, or environmental

needs; was in existence at least one year before the date on which the

organization submitted an application under this part; and will make

projects available for participants, who must be students.

(c) A local partnership, for a grant from a State or a grantmaking

entity to implement, operate, or expand an adult volunteer program. The

partnership must include an LEA and one or more public or private

nonprofit organizations, other educational agencies, or private for-

profit businesses.

(d) A qualified organization as defined in Sec. 2515.20 of this

chapter, for a grant from a State or Indian tribe for planning or

building the capacity of the State or Indian tribe.

Subpart B--Use of Grant Funds

Sec. 2516.200 How may grant funds be used?

Funds under a school-based service-learning grant may be used for

the purposes described in this section.

(a) Planning and capacity-building for States and Indian tribes.

(1) A State or Indian tribe may use funds to pay for planning and

building its capacity to implement school-based service-learning

programs. These entities may use funds either directly or through

subgrants or contracts with qualified organizations.

(2) Authorized activities include the following:

(i) Providing training for teachers, supervisors, personnel from

community-based agencies (particularly with regard to the utilization

of participants) and trainers, conducted by qualified individuals or

organizations experienced in service-learning.

(ii) Developing service-learning curricula to be integrated into

academic programs, including the age-appropriate learning components

for students to analyze and apply their service experiences.

(iii) Forming local partnerships described in Sec. 2516.110 to

develop school-based service-learning programs in accordance with this

part.

(iv) Devising appropriate methods for research and evaluation of

the educational value of service-learning and the effect of service-

learning activities on communities.

(v) Establishing effective outreach and dissemination of

information to ensure the broadest possible involvement of community-

based agencies with demonstrated effectiveness in working with school-

age youth in their communities.

(b) Implementing, operating, and expanding programs. (1) A State or

grantmaking entity may use funds to make subgrants to local

partnerships described in Sec. 2516.110(b) to implement, operate, or

expand school-based service-learning programs.

(2) If a State does not submit an application that meets the

requirements for an allotment grant under Sec. 2516.400, the

Corporation may use the allotment to fund applications from those local

partnerships for programs in that State.

(3) A grantmaking entity may use funds to provide technical

assistance and training to appropriate persons relating to its

subgrants.

(c) Planning programs. (1) A State may use funds to make subgrants

to LEAs for planning school-based service-learning programs.

(2) If a State does not submit an application that meets the

requirements for an allotment grant under Sec. 2516.400, the

Corporation may use the allotment to fund applications from LEAs for

planning programs in that State.

(3) Authorized activities include paying the costs of--

(i) The salaries and benefits of service-learning coordinators as

defined in Sec. 2510.20 of this chapter; and

(ii) The recruitment, training, supervision, and placement of

service-learning coordinators who are participants in an AmeriCorps

program described in parts 2520 through 2524 of this chapter or who

receive AmeriCorps educational awards.

(d) Adult volunteer programs. (1) A State, Indian tribe, U.S.

territory, or grantmaking entity may use funds to make subgrants to

local partnerships described in Sec. 2516.110(c) to implement, operate,

or expand school-based programs involving adult volunteers to utilize

service-learning to improve the education of students.

(2) If a State does not submit an application that meets the

requirements for an allotment grant under Sec. 2516.400, the

Corporation may use the allotment to fund applications from those local

partnerships for adult volunteer programs in that State.

(e) Planning by Indian tribes and U.S. Territories. If the

Corporation makes a grant to an Indian tribe or a U.S. Territory to

plan school-based service-learning programs, the grantee may use the

funds for that purpose.

(f) Allowable expenses. An LEA, local partnership, or qualified

organization may use funds under this part for the Corporation share of

reasonable costs related to the supervision of participants, program

administration, transportation, insurance, evaluations, and other

reasonable expenses related to the funded activities.

Subpart C--Eligibility To Participate

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

program?

Students who are enrolled in elementary or secondary schools on a

full-time or part-time basis may participate in school-based programs.

Sec. 2516.310 May private school students participate?

(a) Yes. To the extent consistent with the number of students in

the State or Indian tribe or in the school district of the LEA involved

who are enrolled in private nonprofit elementary or secondary schools,

the State, Indian tribe, or LEA must (after consultation with

appropriate private school representatives) make provision--

(1) For the inclusion of services and arrangements for the benefit

of those students so as to allow for the equitable participation of the

students in the programs under this part; and

(2) For the training of the teachers of those students so as to

allow for the equitable participation of those teachers in the programs

under this part.

(b)(1) If a State, Indian tribe, or LEA is prohibited by law from

providing for the participation of students or teachers from private

nonprofit schools as required by paragraph (a) of this section, or if

the Corporation determines that a State, Indian tribe, or LEA

substantially fails or is unwilling to provide for their participation

on an equitable basis, the Corporation will waive those requirements

and arrange for the provision of services to the students and teachers.

(2) Waivers will be subject to the consultation, withholding,

notice, and judicial review requirements of section 1017(b) (3) and (4)

of the Elementary and Secondary Education Act of 1965 (20 U.S.C.

2727(b)).

Subpart D--Application Contents

Sec. 2516.400 What must a State or Indian tribe include in an

application for a grant?

In order to apply for a grant from the Corporation under this part,

a State (SEA) or Indian tribe must submit the following:

(a) A three-year strategic plan, or a revision of a previously

approved three-year strategic plan, for promoting service-learning

through programs under this part. The application of a SEA must include

a description of how the SEA will coordinate its service-learning plan

with the State Plan under part 2513 of this chapter and with other

federally-assisted activities.

(b) A proposal containing the specific program, budget, and other

information specified by the Corporation in the grant application

package.

(c) Assurances that the applicant will--

(1) Keep such records and provide such information to the

Corporation with respect to the programs as may be required for fiscal

audits and program evaluation; and

(2) Comply with the nonduplication, nondisplacement, and grievance

procedure requirements of part 2540 of this chapter.

Sec. 2516.410 What must a grantmaking entity, local partnership, or

LEA include in an application for a grant?

In order to apply to the Corporation for a grant, a grantmaking

entity, local partnership, or LEA must submit the following:

(a) A detailed description of the proposed program goals and

activities. The application of a grantmaking entity must include--

(1) A description of how the applicant will coordinate its

activities with the State Plan under part 2513 of this chapter and with

other federally-assisted activities; and

(2) A description of how the program will be carried out in more

than one State.

(b) The specific program, budget, and other information specified

by the Corporation in the grant application package.

(c) Assurances that the applicant will--

(1) Keep such records and provide such information to the

Corporation with respect to the program as may be required for fiscal

audits and program evaluation;

(2) Prior to the placement of a participant, consult with the

appropriate local labor organization, if any, representing employees in

the area who are engaged in the same or similar work as that proposed

to be carried out by the program, to prevent the displacement and

protect the rights of those employees;

(3) Develop an age-appropriate learning component for participants

in the program that includes a chance for participants to analyze and

apply their service experiences; and

(4) Comply with the nonduplication, nondisplacement, and grievance

procedure requirements of part 2540 of this chapter.

(d) For a local partnership, an assurance that the LEA will serve

as the partnerships fiscal agent.

Sec. 2516.420 What must an LEA, local partnership, or qualified

organization include in an application for a subgrant?

In order to apply for a subgrant from an SEA, Indian tribe, or

grantmaking entity under this part, an applicant must include the

information required by the Corporation grantee.

Subpart E--Application Review

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

application?

(a) In reviewing the merits of an application submitted to the

Corporation under this part, the Corporation evaluates the quality,

innovation, replicability, and sustainability of the proposal on the

basis of the following criteria:

(1) Quality, as indicated by the extent to which--

(i) The program will provide productive meaningful, educational

experiences that incorporate service-learning methods;

(ii) The program will meet community needs and involve individuals

from diverse backgrounds (including economically disadvantaged youth)

who will serve together to explore the root causes of community

problems;

(iii) The principal leaders of the program will be well qualified

for their responsibilities;

(iv) The program has sound plans and processes for training,

technical assistance, supervision, quality control, evaluation,

administration, and other key activities; and

(v) The program will advance knowledge about how to do effective

and innovative community service and service-learning and enhance the

broader elementary and secondary education field.

(2) Replicability, as indicated by the extent to which the program

will assist others in learning from experience and replicating the

approach of the program.

(3) Sustainability, as indicated by the extent to which--

(i) An SEA or grantmaking entity applicant demonstrates the ability

and willingness to coordinate its activities with the State Plan under

part 2513 of this chapter and with other federally assisted activities;

(ii) The program will foster collaborative efforts among local

educational agencies, local government agencies, community based

agencies, businesses, and State agencies;

(iii) The program will enjoy strong, broad-based community support;

and

(iv) There is evidence that financial resources will be available

to continue the program after the expiration of the grant.

(b) The Corporation also gives priority to proposals that--

(1) Involve participants in the design and operation of the

program;

(2) Reflect the greatest need for assistance, such as programs

targeting low-income areas;

(3) Involve students from public and private schools serving

together;

(4) Involve students of different ages, races, genders,

ethnicities, abilities and disabilities, or economic backgrounds,

serving together;

(5) Are integrated into the academic program of the participants;

(6) Best represent the potential of service-learning as a vehicle

for education reform and school-to-work transition;

(7) Develop civic responsibility and leadership skills and

qualities in participants;

(8) Demonstrate the ability to achieve the goals of this part on

the basis of the proposal's quality, innovation, replicability, and

sustainability; or

(9) Address any other priority established by the Corporation for a

particular period.

(c) In reviewing applications submitted by Indian tribes and U.S.

Territories, the Corporation--

(1) May decide to approve only planning of school-based service-

learning programs; and

(2) Will set the amounts of grants in accordance with the

respective needs of applicants.

Sec. 2516.510 What happens if the Corporation rejects a State's

application for an allotment grant?

If the Corporation rejects a State's application for an allotment

grant under Sec. 2516.600 (b)(2) the Corporation will--

(a) Promptly notify the State of the reasons for the rejection;

(b) Provide the State with a reasonable opportunity to revise and

resubmit the application;

(c) Provide technical assistance, if necessary; and

(d) Promptly reconsider the resubmitted application and make a

decision.

Sec. 2516.520 How does a State, Indian tribe, or grantmaking entity

review the merits of an application?

In reviewing the merits of an application for a subgrant under this

part, a Corporation grantee must use the criteria and priorities in

Sec. 2516.500.

Subpart F--Distribution of Funds

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

distributed?

(a) Of the amounts appropriated to carry out this part for any

fiscal year, the Corporation will reserve not more than three percent

for grants to Indian tribes and U.S. Territories to be allotted in

accordance with their respective needs.

(b) The Corporation will use the remainder of the funds

appropriated as follows:

(1) Competitive Grants. From 25 percent of the remainder, the

Corporation may make grants on a competitive basis to States, Indian

tribes, or grantmaking entities.

(2) Allotments to States. (i) From 37.5 percent of the remainder,

the Corporation will allot to each State an amount that bears the same

ratio to 37.5 percent of the remainder as the number of school-age

youth in the State bears to the total number of school-age youth of all

States.

(ii) From 37.5 percent of the remainder, the Corporation will allot

to each State an amount that bears the same ratio to 37.5 percent of

the remainder as the allocation to the State for the previous fiscal

year under Chapter 1 of Title I of the Elementary and Secondary

Education Act of 1965 (20 U.S.C. 2711 et seq.) bears to the allocations

to all States.

(iii) Notwithstanding other provisions of paragraph (b)(2) of this

section, no State will receive an allotment that is less than the

allotment the State received for fiscal year 1993 from the Commission

on National and Community Service. If the amount of funds made

available in a fiscal year is insufficient to make those allotments,

the Corporation will make additional funds available from the 25

percent described in paragraph (b)(1) of this section for that fiscal

year to make those allotments.

(3) For the purpose of paragraph (b) of this section, ``State''

means one of the 50 States, the District of Columbia, and the

Commonwealth of Puerto Rico.

(c) If a State or Indian tribe does not submit an application that

meets the requirements for approval under this part, the Corporation

(after making any grants to local partnerships or LEAs for activities

in nonparticipating States) may use its allotment for States and Indian

tribes with approved applications, as the Corporation determines

appropriate.

(d) Notwithstanding other provisions of this section, if less than

$20,000,000 is made available in any fiscal year to carry out this

part, the Corporation will make all grants to States and Indian tribes

on a competitive basis.

Subpart G--Funding Requirements

Sec. 2516.700 Are matching funds required?

(a) Yes. The Corporation share of the cost of carrying out a

program funded under this part may not exceed--

(1) Ninety percent of the total cost for the first year for which

the program receives assistance;

(2) Eighty percent of the total cost for the second year;

(3) Seventy percent of the total cost for the third year; and

(4) Fifty percent of the total cost for the fourth year and any

subsequent year.

(b) In providing for the remaining share of the cost of carrying

out a program, each recipient of assistance must provide for that share

through a payment in cash or in kind, fairly evaluated, including

facilities, equipment, or services, and may provide for that share

through State sources, local sources, or Federal sources (other than

funds made available under the national service laws).

(c) However, the Corporation may waive the requirements of

paragraph (b) of this section in whole or in part with respect to any

program in any fiscal year if the Corporation determines that the

waiver would be equitable due to a lack of available financial

resources at the local level.

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

Yes. The following limits apply to funds made available under this

part:

(a)(1) The recipient of a direct grant from the Corporation may

spend no more than five percent of the grant funds on administrative

costs for any fiscal year.

(2) If a Corporation grantee makes a subgrant to an entity to carry

out a service-learning program, the Corporation grantee may determine

how the allowable administrative costs will be distributed between

itself and the subgrantee.

(b)(1) An SEA or Indian tribe must spend between ten and 15 percent

of the grant to build capacity through training, technical assistance,

curriculum development, and coordination activities.

(2) However, the Corporation may waive this requirement in order to

permit an SEA or a tribe to use between ten percent and 20 percent of

the grant funds to build capacity. To be eligible to receive the

waiver, the SEA or tribe must submit an application to the Corporation.

(c) Funds made available under this part may not be used to pay any

stipend, allowance, or other financial support to any participant in a

service-learning program under this part or part 2517 or 2519 of this

chapter except reimbursement for transportation, meals, and other

reasonable out-of-pocket expenses directly related to participation in

a program assisted under this part.

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

(a) One year is the maximum length of--

(1) A planning grant under Sec. 2516.200 (a), (c) or (f); and

(2) A grant to a local partnership for activities in a

nonparticipating State under Sec. 2516.200 (b) and (d).

(b) All other grants are for a period of up to three years, subject

to satisfactory performance and annual appropriations.

Sec. 2516.730 May an applicant submit multiple applications for the

same project?

No. The Corporation will reject an application if the application

describes a project proposed to be conducted using assistance requested

by the applicant and the project is already described in another

application pending before the Corporation.

Subpart H--Monitoring and Evaluation Requirements

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

(a) Monitoring is a continuous effort to assess performance and

improve quality. Evaluation is an assessment of program effectiveness

and outcomes at the end of a given period of time.

(b) Every monitoring and evaluation requirement serves one or more

of the following purposes:

(1) Ensuring quality programs.

(2) Examining the benefits of national and community service.

(3) Fulfilling legislative requirements.

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

evaluated?

The Corporation will evaluate programs based on the following:

(a) The extent to which the program meets the objectives

established and agreed to by the grantee and the Corporation before the

grant award.

(b) The extent to which the program is cost-effective.

(c) Other criteria as determined and published by the Corporation.

Sec. 2516.820 What must grantees and subgrantees do to monitor and

evaluate the effectiveness of their programs?

Grantees and subgrantees must undertake the following activities:

(a) Monitor management effectiveness, the quality of services

provided, and the satisfaction of both participants and service

recipients. Monitoring should be a continuous process, allowing for

frequent feedback and quick correction of weaknesses. Monitoring

approaches such as community advisory councils, participant advisory

councils, peer reviews, quality control inspections, and service

recipient and participant surveys are encouraged.

(b) Track progress toward pre-established objectives. Objectives

must be established by programs and approved by the Corporation.

Programs must submit to the Corporation (or the Corporation grantee as

applicable) periodic performance reports and, as part of an annual

report, an annual performance report.

(c) Collect and submit to the Corporation (through the Corporation

grantee as applicable) the following data:

(1) The total number of participants in each program and basic

demographic characteristics of the participants including sex, age,

economic background, education level, ethnic group, disability

classification, and geographic region.

(2) Other information as required by the Corporation.

Sec. 2516.830 What must a Corporation grantee do to monitor and

evaluate the effectiveness of the programs of its subgrantees?

A Corporation grantee that makes subgrants must undertake the

following activities:

(a) Ensure that subgrantees comply with the requirements of

Sec. 2516.820.

(b) Track program performance in terms of progress toward pre-

established objectives; ensure that corrective action is taken when

necessary; and submit to the Corporation periodic performance reports

and, as part of an annual report, an annual performance report for each

subgrantee.

(c) Collect from programs and submit to the Corporation the

descriptive information required in Sec. 2516.820(c)(1).

Sec. 2516.840 Must grantees or subgrantees perform independent

evaluations?

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

Sec. 2516.850 What will the Corporation do to evaluate the overall

success of the service-learning program?

(a) The Corporation will conduct independent evaluations. These

evaluations will consider the opinions of participants and members of

the communities where services are delivered. If appropriate, these

evaluations will compare participants with individuals who have not

participated in service-learning programs. These evaluations will--

(1) Study the extent to which service-learning programs as a whole

affect the involved communities;

(2) Determine the extent to which service-learning programs as a

whole increase academic learning of participants, enhance civic

education, and foster continued community involvement; and

(3) Determine the effectiveness of different program models.

(b) The Corporation will also determine by June 30, 1995, whether

outcomes of service-learning programs are defined and measured

appropriately, and the implications of the results from such a study

for authorized funding levels.

Sec. 2516.860 Will information on individual participants be kept

confidential?

(a) Yes. The Corporation will maintain the confidentiality of

information regarding individual participants that is acquired for the

purpose of the evaluations described in Sec. 2516.850. The Corporation

will disclose individual participant information only with the prior

written consent of the participant. However, the Corporation may

disclose aggregate participant information.

(b) Grantees and subgrantees under this part must comply with the

provisions of paragraph (a) of this section.

PART 2517--COMMUNITY-BASED SERVICE-LEARNING PROGRAMS

Subpart A--Grant Applications

Sec.

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

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

Subpart B--Use of Grant Funds

2517.200 How may grant funds be used?

Subpart C--Eligibility to Participate

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

program?

Subpart D--Application Contents

2517.400 What must a State Commission or grantmaking entity include

in an application for a grant?

2517.410 What must a qualified organization include in an

application for a grant or a subgrant?

Subpart E--Application Review

2517.500 How is an application evaluated?

Subpart F--Distribution of Funds

2517.600 How are funds for community-based service-learning

programs distributed?

Subpart G--Funding Requirements

2517.700 Are matching funds required?

2517.710 Are there limits on the use of funds?

2517.720 What is the length of a grant?

2517.730 May an applicant submit multiple applications for the same

project?

Subpart H--Evaluation and Monitoring Requirements

2517.800 What are the evaluation and monitoring requirements for

community-based programs?

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

Subpart A--Grant Applications

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

(a) The following entities may apply for a direct grant from the

Corporation:

(1) A State Commission established under part 2550 of this chapter.

(2) A grantmaking entity as defined in Sec. 2515.20 of this

chapter.

(3) A qualified organization as defined in Sec. 2515.20 of this

chapter.

(b) The types of grants for which each entity is eligible are

described in Sec. 2517.200 of this chapter.

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

Entities that may apply for a subgrant from a State Commission or

grantmaking entity are qualified organizations that have entered into a

partnership with one or more--

(a) Local educational agencies (LEAs);

(b) Other qualified organizations; or

(c) Both.

Subpart B--Use of Grant Funds

Sec. 2517.200 How may grant funds be used?

Funds under a community-based service-learning grant may be used

for the purposes described in this section.

(a) A State Commission or grantmaking entity may use funds--

(1) To make subgrants to qualified organizations described in

Sec. 2517.110 to implement, operate, expand, or replicate a community-

based service program that provides direct and demonstrable

educational, public safety, human

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