42 U.S.C. § 12571 — Authority to provide assistance and approved national service positions

(a) Provision of assistance. If money has been appropriated for this purpose, the Corporation^* for National and Community Service may give grants to States, parts of States, territories, Indian^* tribes, public or private nonprofit organizations, and institutions of higher education. The grants may help the recipients—
(1) carry out full-time or part-time national service programs, including summer programs, described in subsection (a), (b), or (c) of 42 U.S.C. § 12572; or
(2) make grants supporting other national service programs described in subsection (a), (b), or (c) of 42 U.S.C. § 12572 that other entities carry out.

(b) Restrictions on agreements with Federal agencies.
(1) Agreements authorized. The Corporation may enter into an agreement between Federal agencies, other than a grant agreement, with another Federal agency. The agreement may support a national service program that the other agency carries out or otherwise supports. When it enters the agreement, the Corporation may approve positions as approved national service positions for that program.
(2) Prohibition on grants. The Corporation may not give a grant under this section to a Federal agency.
(3) Consultation with State^* Commissions. A Federal agency that carries out or supports a national service program must consult the State Commissions for the States where projects under the program will take place. The consultation must help ensure that those projects do not duplicate projects carried out by State or local national service programs.
(4) Support for other national service programs. In an appropriate case, a Federal agency that enters an agreement under paragraph (1) must enter into a contract or cooperative agreement with an entity that is carrying out a high-quality national service program in a State. That program must already exist in the State on the date of the contract or cooperative agreement. The contract or cooperative agreement must support the national service program.
(5) Application of requirements. A requirement under this chapter that applies to an entity receiving assistance under this section must also be treated as applying to a Federal agency that enters an agreement under this subsection. This does not include a requirement limited to an entity receiving assistance under subsection (a). This rule applies even though a Federal agency may not receive financial assistance under the agreement.

(c) Provision of approved national service positions. As part of providing assistance under subsection (a), and when providing approved national service positions under subsection (b), the Corporation must—
(1) approve the national service educational awards described in division D for participants who serve in national service programs carried out with that assistance; and
(2) deposit money in the National Service Trust established in 42 U.S.C. § 12601(a). The amount must equal—
(A) the value of a national service educational award under 42 U.S.C. § 12603, multiplied by
(B) the total number of approved national service positions that will be provided or otherwise approved.

(d) Five percent limitation on administrative costs.
(1) Limitation. For a fiscal year, no more than 5 percent of the assistance provided under subsection (a) to the original grant recipient, or transferred to that recipient, may pay administrative costs incurred by—
(A) the recipient of the assistance; and
(B) national service programs carried out or supported with the assistance.
(2) Rules on use. By rule, the Corporation may prescribe how, and to what extent—
(A) assistance under subsection (a) may pay administrative costs; and
(B) the part of the assistance available for administrative costs should be divided between—
(i) the original recipient of the grant or transfer under subsection (a); and
(ii) national service programs carried out or supported with the assistance.

(e) Matching funds requirements.
(1) Requirements. Except as provided in 42 U.S.C. § 12594, the Corporation may pay no more than 75 percent of the cost of carrying out a national service program that receives assistance under subsection (a). This includes the costs of member living allowances, employment-related taxes, health care coverage, workers’ compensation, and other necessary operating costs. The 75-percent limit applies whether the assistance is provided directly or as a subgrant from the original recipient.
(2) Calculation. The program must provide the remaining share of the cost—
(A) through a cash or in-kind payment that is fairly valued, including facilities, equipment, or services; and
(B) it may provide that share through State, local, or other Federal sources, but not by using money made available under the national service laws^*.
(3) Cost of health care. When the program provides a cash payment under paragraph (2)(A) for the remaining share, it may count no more than 85 percent of the cost of a health care policy described in 42 U.S.C. § 12594(d)(2) toward that share.
(4) Waiver. For a fiscal year, the Corporation may waive all or part of paragraph (1)’s requirements for a national service program if it decides that the waiver would be fair because financial resources are not available at the local level.
(5) Other Federal funds.
(A) Recipient report. A recipient of assistance under this section must report to the Corporation the amount and source of any Federal money, other than money provided by the Corporation, used to carry out the program for which the assistance is available. This does not apply to a recipient that receives assistance through a fixed-amount grant under 42 U.S.C. § 12581(l).
(B) Corporation report. Each year, the Corporation must report to the authorizing committees^* information about each recipient that uses other Federal money to carry out such a program. The report must include the amounts and sources of that other money.

(f) Plan for approved national service positions. The Corporation must—
(1) develop a plan to—
(A) set the number of approved national service positions at 88,000 for fiscal year 2010;
(B) increase the number of approved positions to—
(i) 115,000 for fiscal year 2011;
(ii) 140,000 for fiscal year 2012;
(iii) 170,000 for fiscal year 2013;
(iv) 200,000 for fiscal year 2014;
(v) 210,000 for fiscal year 2015;
(vi) 235,000 for fiscal year 2016; and
(vii) 250,000 for fiscal year 2017; and
(C) ensure that these increases are achieved through an appropriate balance of full-time and part-time service positions;
(2) within 1 year after April 21, 2009, submit to the authorizing committees a report on the plan’s status; and
(3) subject to available appropriations and quality service opportunities, carry out the plan.