42 U.S.C. § 12581 — Provision of assistance and approved national service positions

(a) One percent allotment for certain territories. Each year, the Corporation must set aside 1 percent of the money it uses for assistance under section 12571(a). This 1 percent goes as grants to the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands, once the Corporation approves each territory's application under section 12582. Each territory's share is based on its population compared to the total population of all four territories. (b) Allotment for Indian tribes. The Corporation must also set aside at least 1 percent of that same funding for grants to Indian tribes. These grants are awarded competitively. (c) Reservation of approved positions. The Corporation must make sure that every person chosen in a year to serve as a VISTA volunteer, or as a participant in the National Civilian Community Corps under division E, gets the national service educational award described in division D, if that person qualifies for it. The money needed to pay for these awards comes out of the total funding otherwise available for approved positions under subsections (d) and (e). (d) Allotment for competitive grants. (1) In general. The Corporation may set aside up to 62.7 percent of its funding for competitive grants. These grants go to the states named in subsection (e)(1), to nonprofits that want to run programs in two or more of those states, and to Indian tribes. (2) Equitable treatment. When judging applications, the Corporation must treat urban and rural applicants fairly, treat applicants of different sizes fairly, and treat state and national nonprofit applicants fairly. (3) Encore service programs. The Corporation should try to give at least 10 percent of this money and these positions to programs for older adult ("encore") volunteers, unless too few good applications come in. (4) Corps programs. The Corporation must pick at least two of the specific "national service corps" described in section 12572(a) to receive these grants, and may also pick other programs described in section 12572(b). (e) Allotment to certain States on formula basis. (1) Grants. The Corporation must give a grant to every state, the District of Columbia, and Puerto Rico that submits an approved application under section 12582. (2) Allotments. Each one gets a share of 35.3 percent of that year's funding, based on its population compared to the total population of all the states, D.C., and Puerto Rico. (3) Minimum amount. No matter what the formula says, each approved state must get at least $600,000, or 0.5 percent of the total formula funding — whichever amount is bigger. (f) Effect of failure to apply. If a state or territory does not apply, does not tell the Corporation it plans to apply, or has its application rejected, the Corporation can use that state or territory's share in two ways: (1) it can give grants to other community-based groups to run national service programs in that same state or territory; or (2) it can give the unused money to other states or territories whose applications were approved. (g) Application required. The Corporation can only give assistance or approved positions under this section if the recipient submitted an application under section 12582. (h) Approval of positions subject to available funds. The Corporation cannot approve more national service positions in a year than it has money in the National Service Trust to cover, and it must account for the cost of educational awards based on completed service. If there is not enough money to pay every eligible participant the maximum award, the Corporation can make reasonable adjustments to the program rules. (i) Sponsorship of approved national service positions. (1) Sponsorship authorized. The Corporation can make deals with people or organizations who offer to sponsor national service positions and pay for the educational awards themselves. Positions created this way go where the sponsorship agreement says, and they do not count against the normal limit on how many positions the Corporation can approve. (2) Deposit of contribution. Money given under a sponsorship agreement goes into the National Service Trust until it is needed. (j) Reservation of funds for special assistance. (1) Reservation. From money appropriated under section 12681(a)(2), the Corporation may set aside whatever amount it thinks is right to fund the special assistance described in section 12576(b) and (c). (2) Limitation. This reserved amount cannot be more than $10,000,000 in a year. (3) Timing. The Corporation must set aside this amount, and the amount described in subsection (k), before it hands out any other funding under this division. (k) Reservation of funds to increase the participation of individuals with disabilities. (1) Reservation. The Chief Executive Officer must set aside at least 2 percent of the money appropriated each year for this division and for divisions D, E, and H. This money funds grants to public or private nonprofits that help more people with disabilities take part in national service, and funds related demonstration projects. (2) Limitation. This reserved amount cannot be more than $20,000,000 in a year. (3) Remainder. If any of this reserved money is not given out as grants under this subsection, the Chief Executive Officer can use it for other activities described in section 12681(a)(2). (l) Authority for fixed-amount grants. (1) In general. (A) The Corporation can give some grants as a fixed dollar amount, instead of basing them on the program's actual costs. (B) Except for fixed-amount grants supporting programs under section 12581a, for one year after the Serve America Act took effect, the Corporation could only use fixed-amount grants for programs offering full-time positions. (2) Determination of amount. Each fixed-amount grant must be set at an amount that is clearly less than what it actually costs to run the program. The Corporation bases the per-person amount on: (i) whether the organization can manage the money and get results; (ii) how many approved positions the program has; (iii) how the program is designed; (iv) whether the program serves disadvantaged youth or otherwise costs more to run; and (v) other factors the Corporation may weigh under section 12585. (3) Requirements for grant recipients. When the Corporation gives a fixed-amount grant, it must require the recipient to: (i) return a share of the grant money if a participant serves fewer hours than the minimum required for a completed term; (ii) report on the program's performance using the Corporation's standard measures; (iii) cooperate with any evaluation the Corporation conducts; and (iv) promise to raise additional funds to support the program, on top of federal money. The Corporation may also add other conditions based on how risky it judges the grant to be. (4) Other requirements not applicable. Fixed-amount grants are not subject to the usual limits on administrative costs or the usual matching-fund paperwork. (5) Rule of construction. None of this excuses a grant recipient from following chapter 75 of title 31 or OMB Circular A-133.