80172 Federal Register / Vol. 89, No. 191 / Wednesday, October 2, 2024 / Proposed Rules 

(f) Copies of records. * * *. 

* * * * * 

(Approved by the Office of Management and 

Budget under control numbers 1513–0053, 

1513–0057, and 1513–0115) 

Signed: September 23, 2024. 

Mary G. Ryan, 

Administrator. 

Approved: September 24, 2024. 

Aviva R. Aron-Dine, 

Deputy Assistant Secretary, Tax Policy. 

[FR Doc. 2024–22470 Filed 10–1–24; 8:45 am] 

BILLING CODE 4810–31–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 81 

RIN 2900–AS17 

Legal Services for Veterans—Legal 

Assistance for Access to VA Programs 

Grant Program 

AGENCY: Department of Veterans Affairs. 

ACTION: Proposed rule. 

SUMMARY: The Department of Veterans 

Affairs (VA) proposes to amend its 

regulations to implement a new 

authority requiring VA to establish a 

pilot program to assess the feasibility of 

awarding grants to eligible entities to 

establish new legal assistance clinics or 

enhance existing legal assistance clinics 

and pro bono efforts to provide certain 

legal assistance to veterans and 

individuals who served in the Armed 

Forces. This rulemaking provides 

proposed grant program eligibility 

criteria, application requirements, 

scoring criteria, constraints on the 

allocation and use of grant funds, and 

other requirements necessary to 

implement the grant program. 

DATES: Comments must be received on 

or before December 2, 2024. 

ADDRESSES: Comments may be 

submitted through www.regulations.gov. 

Except as provided below, comments 

received before the close of the 

comment period will be available at 

www.regulations.gov for public viewing, 

inspection, or copying, including any 

personally identifiable or confidential 

business information that is included in 

a comment. We post the comments 

received before the close of the 

comment period on 

www.regulations.gov as soon as possible 

after they have been received. VA will 

not post on www.regulations.gov public 

comments that make threats to 

individuals or institutions or suggest 

that the commenter will take actions to 

harm an individual. VA encourages 

individuals not to submit duplicative 

comments; however, we will post 

comments from multiple unique 

commenters even if the content is 

identical or nearly identical to other 

comments. Any public comment 

received after the comment period’s 

closing date is considered late and will 

not be considered in the final 

rulemaking. In accordance with the 

Providing Accountability Through 

Transparency Act of 2023, a 100 word 

Plain-Language Summary of this 

proposed rule is available at 

Regulations.gov, under RIN 2900–AS17. 

FOR FURTHER INFORMATION CONTACT: 

Madolyn Gingell, National Coordinator, 

Legal Services for Veterans, Veterans 

Justice Programs, Clinical Services, 

Veterans Health Administration, 

Department of Veterans Affairs, at 

Madolyn.Gingell@va.gov or (239) 223– 

4681. 

SUPPLEMENTARY INFORMATION: 

Background 

On January 1, 2021, the William M. 

(Mac) Thornberry National Defense 

Authorization Act for Fiscal Year 2021, 

Public Law 116–283 (the Act), was 

signed into law and authorized 

appropriations for defense activities and 

various other purposes. Section 548(b) 

of the Act directed the Secretary of VA 

(Secretary) to establish a pilot program 

to assess the feasibility and advisability 

of awarding grants to eligible entities to 

establish new legal assistance clinics or 

enhance existing legal assistance clinics 

or other pro bono efforts in locations 

other than VA facilities to provide 

certain legal assistance to veterans and 

individuals who served in the Armed 

Forces. VA proposes to implement this 

pilot program by creating the Legal 

Services for Veterans—Legal Assistance 

for Access to VA Programs Grant 

Program (Grant Program) in new part 81 

of title 38, Code of Federal Regulations 

(CFR). 

The primary purpose of the Grant 

Program is to provide certain legal 

assistance to former service members to 

assist them in gaining access to VA 

benefits. Because a former service 

member’s discharge is often a barrier to 

VA benefits, VA believes the Grant 

Program would provide needed 

assistance with improving the character 

of discharge for those individuals whose 

current discharge status renders them 

ineligible for VA benefits. Attorneys are 

well-suited to help individuals navigate 

these processes, and the proposed Grant 

Program would directly fund the 

provision of legal assistance with any 

VA program, with improving the status 

of a military discharge or 

characterization of service, and with 

seeking a review of a military record 

before a board of correction of military 

or naval records, consistent with 

Section 548(b) of the Act. The Grant 

Program would serve a broad group of 

individuals, not just those who meet the 

statutory definition of veteran under 38 

U.S.C. 101(2), and would also assist any 

individual discharged or released from 

the Armed Forces, including those who 

served in a reserve component. 

To be eligible for VA programs and 

services, an individual’s military 

discharge or release must generally be 

under ‘‘other than dishonorable 

conditions’’ (e.g., honorable, under 

honorable conditions, general), a 

standard established in the statutory 

definition of veteran under 38 U.S.C. 

101(2). A military discharge or release 

under certain conditions, regardless of 

the character of service listed on an 

individual’s Certificate of Uniformed 

Service (DD Form 214/5), could also 

constitute a statutory bar to VA 

programs and services under 38 U.S.C. 

5303. However, in certain 

circumstances, individuals that do not 

meet the statutory definition under 38 

U.S.C. 101(2) could qualify for VA 

programs and services if they receive a 

favorable outcome through a military 

service discharge review board, a board 

for correction of military or naval 

records, or VA’s character of discharge 

determination. 

In late September 2021, VA sought 

input from 18 veterans service 

organizations and legal services 

organizations to inform development of 

the criteria and requirements for 

implementation of the Grant Program. 

VA asked the organizations to provide 

comments on: (1) the types of VA 

programs to be focused on; (2) any 

additional assistance that should be 

provided beyond what is specified in 

the Act; (3) criteria that should be 

emphasized during the grant selection 

process; (4) how VA should require 

grantees to target individuals eligible to 

receive legal assistance without regard 

for the conditions of discharge or release 

from the Armed Forces; (5) criteria that 

should be used to assess the 

effectiveness of the Grant Program; (6) 

and any additional factors VA should 

consider for the Grant Program. 

VA received input from two veterans 

service organizations and three legal 

services organizations. Multiple 

commenters stated the Grant Program 

should prioritize approving grant 

applicants that: operate in underserved 

areas; would provide legal assistance to 

improve the status of a military 

discharge or characterization of service; 

and would provide legal assistance to 


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those who are ineligible for VA health 

care. Almost all commenters suggested 

VA prioritize approving grant applicants 

that have experience providing legal 

assistance to veterans instead of 

prioritizing grant applicants who would 

expand their current program to newly 

provide legal assistance to veterans or 

grant applicants who would start an 

entirely new legal assistance program. 

In addition, commenters suggested VA 

prioritize grant applicants that engage in 

community outreach to former service 

members, considering both the direct 

outreach of the applicant as well as the 

applicant’s relationships with 

community partners serving these 

individuals. Additionally, some 

commenters suggested that VA allow 

grantees to provide a broad range of 

legal assistance beyond what is 

specified in the Act. These comments 

were considered during development of 

the proposed Grant Program criteria and 

requirements, and the feedback VA 

received is publicly available at 

www.regulations.gov as ‘‘Supporting & 

Related Material’’ to this rulemaking. 

38 CFR Part 81—Legal Services for 

Veterans—Legal Assistance for Access 

to VA Programs Grant Program 

The Legal Services for Veterans— 

Legal Assistance for Access to VA 

Programs Grant Program (Grant 

Program) would be established in new 

part 81 of title 38, CFR, to provide 

clarity and establish criteria for 

applicants and grantees who may 

participate in the Grant Program. These 

new regulations would ensure 

consistency in the overall 

administration of the Grant Program and 

would provide transparency to eligible 

entities applying for and administering 

a legal assistance grant. 

The purpose, scope, and definitions 

applicable to the Grant Program would 

be established in proposed §§ 81.0 and 

81.5. Eligibility for entities seeking a 

legal assistance grant would be 

established in proposed § 81.10. Eligible 

individuals seeking legal assistance 

from a grantee would be established in 

proposed § 81.15. The types of legal 

assistance that could be provided to 

eligible individuals under the Grant 

Program would be established in 

proposed § 81.20. Grant Program 

application, scoring, and selection 

criteria for new grantees and renewals 

would be established in proposed 

§§ 81.25 through 81.50. Grantee 

requirements would be established in 

proposed §§ 81.55 through 81.115. The 

proposed content and structure of new 

part 81 are described in further detail 

below. 

§ 81.0 Purpose and Scope 

Proposed 38 CFR 81.0 would explain 

the purpose and scope of part 81. 

Proposed paragraph (a) would state that 

the purpose is to implement the Legal 

Services for Veterans—Legal Assistance 

for Access to VA Programs Grant 

Program to award grants to eligible 

entities to establish new legal assistance 

clinics or enhance existing legal 

assistance clinics or other pro bono 

efforts providing legal assistance to 

eligible individuals. Proposed paragraph 

(b) would state that part 81 applies only 

to the provision of legal assistance in 

locations other than VA facilities to 

align with section 548(b)(1) of the Act. 

These statements would be consistent 

with the intent, purpose, and scope of 

the Grant Program established in section 

548(b) of the Act. 

We note that the present Grant 

Program is distinct from the program 

established by Section 548(a) of the Act, 

codified in 38 U.S.C. 5906, which 

directs VA to facilitate the provision of 

pro bono legal assistance by a qualified 

legal clinic at certain VA locations. 

Legal assistance authorized under 

section 548(a) of the Act is provided at 

VA facilities, operates through pro bono 

legal clinic partnerships with VA, and is 

only available to veterans, surviving 

spouses of veterans, and children of 

deceased veterans using the statutory 

definition of veteran under 38 U.S.C. 

101(2). 

The present Grant Program is also 

distinct from the grant program 

authorized by 38 U.S.C. 2022A, codified 

in 38 CFR part 79 as the Legal Services 

for Homeless Veterans and Veterans AtRisk for Homelessness Grant Program 

(hereinafter referred to as LSV–H), 

which awards grants to provide a wide 

range of legal services directly 

addressing the needs of homeless 

veterans and veterans at-risk for 

homelessness, and also uses the 

statutory definition of veteran under 38 

U.S.C. 101(2). While the authority for 

the LSV–H grant program is distinct 

from the present Grant Program, we 

relied on the LSV–H grant program 

regulations in 38 CFR part 79 when 

drafting these proposed regulations. VA 

believes maintaining as much 

consistency as possible between these 

two similar grant programs will allow 

for ease of administration and use by 

VA, eligible entities, and eligible 

individuals alike. In our discussion 

below, we note the instances where we 

relied on the LSV–H regulations to 

develop this rulemaking. 

81.5 Definitions 

Proposed 38 CFR 81.5 would set forth 

the definitions, in alphabetical order, for 

terms that apply throughout part 81 and 

to any Notice of Funding Opportunity 

(NOFO) for the Grant Program. 

VA would define applicant as an 

entity meeting the eligibility criteria of 

§ 81.10 that submits an application for 

a legal assistance grant announced in a 

NOFO for the Grant Program 

administered under this part. VA would 

define applicant in this manner since 

only an eligible entity as defined in 

§ 81.10 could submit an application for 

a legal assistance grant in accordance 

with § 81.25. This proposed definition is 

based on a plain language 

understanding of the term and would be 

similar to the definition used in the 

LSV–H grant program (see 38 CFR 79.5). 

VA would define Armed Forces as 

having the meaning given to that term 

in 38 U.S.C. 101(10). Section 101(10) of 

title 38, U.S.C., defines Armed Forces as 

the United States Army, Navy, Marine 

Corps, Air Force, Space Force, and 

Coast Guard, including the reserve 

components thereof. Defining this term 

would be necessary to further identify 

eligible individuals in proposed 38 CFR 

81.15, and we would use the definition 

of Armed Forces in 38 U.S.C. 101(10) to 

maintain consistency among VA 

programs. 

VA would define grantee as an 

eligible entity that is awarded a legal 

assistance grant under this part. This 

proposed definition is based on a plain 

language understanding of the term and 

would be similar to the definition used 

in the LSV–H grant program (see 38 CFR 

79.5). 

VA would define legal assistance 

clinic as an entity or program whose 

primary purpose is to provide legal 

assistance to individuals on a pro bono 

basis. The definition would refer 

collectively to both the individuals 

providing pro bono assistance and to the 

legal services rendered. The term would 

not be a reference to a certain physical 

space, as legal assistance clinics may 

operate remotely or virtually. This 

definition would be consistent with the 

term’s common usage in the legal 

community. 

VA would define legal assistance 

grant as a grant awarded under this part. 

This definition is a plain language 

understanding of the term. 

VA would define nonprofit entity as 

an entity that meets the requirements of 

26 U.S.C. 501(c)(3), (6), or (19), which 

establish the criteria for tax exempt 

status by the Internal Revenue Service. 

This definition would be necessary to 

further define eligible nonprofit entities 


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under proposed 38 CFR 81.10 and 

would be similar to the definition used 

in the LSV–H grant program (see 38 CFR 

79.10(c)). 

Nonprofit organizations classified 

under section 501(c)(3) include certain 

entities operated exclusively for 

religious, charitable, scientific, public 

safety testing, literary, or educational 

purposes; to foster amateur sports 

competition; or for the prevention of 

cruelty to children or animals; and that 

do not substantially participate in 

legislative or political activities. To be 

eligible under section 501(c)(3), no net 

earnings of the entity may benefit a 

private shareholder or individual. 

Nonprofit organizations classified 

under section 501(c)(6) include business 

leagues, chambers of commerce, realestate boards, boards of trade, or 

professional football leagues (whether or 

not administering a pension fund for 

football players). To be eligible under 

section 501(c)(6), no net earnings of the 

entity may benefit a private shareholder 

or individual. 

Nonprofit organizations classified 

under section 501(c)(19) are those 

entities comprised of current or former 

members of the Armed Forces of the 

United States; or an auxiliary unit, 

society, trust, or foundation associated 

with such entity as long as it is 

organized in the United States or any of 

its possessions, and a majority of its 

members are past or present members of 

the Armed Forces of the United States, 

with the remainder comprised mostly of 

individuals who are cadets or former 

members of the Armed Forces of the 

United States. To be eligible under 

section 501(c)(19), no net earnings of the 

entity may benefit a private shareholder 

or individual. 

VA would define Notice of Funding 

Opportunity (NOFO) using the meaning 

given in 2 CFR 200.1, or successor 

regulations. Section 200.1 defines 

NOFO as a formal announcement of the 

availability of Federal funding through 

a financial assistance program from a 

Federal awarding agency. The NOFO 

provides information on the award, who 

is eligible to apply, the evaluation 

criteria for selection of an awardee, the 

required components of an application, 

and how to submit an application. The 

NOFO is any paper or electronic 

issuance that an agency uses to 

announce a funding opportunity, 

whether it is called a ‘‘program 

announcement,’’ ‘‘notice of funding 

availability,’’ ‘‘broad agency 

announcement,’’ ‘‘research 

announcement,’’ ‘‘solicitation,’’ or some 

other term. The Grant Program would be 

subject to the requirements of 2 CFR 

part 200, which establishes the uniform 

administrative requirements, cost 

principles, and audit requirements for 

Federal awards to non-Federal entities. 

This definition would also be consistent 

with the LSV–H grant program (see 38 

CFR 79.5). 

VA would define participant as an 

individual meeting the eligibility 

criteria of 38 CFR 81.15 who receives 

legal assistance from a grantee under 

this part. This is a plain language 

understanding of the term. 

VA would define reserve component 

as having the meaning given to that term 

in 10 U.S.C. 10101. Section 10101 of 

title 10, U.S.C., (the title applicable to 

the Armed Forces of the United States) 

defines the reserve components of the 

Armed Forces as the Army National 

Guard of the United States, the Army 

Reserve, the Navy Reserve, the Marine 

Corps Reserve, the Air National Guard 

of the United States, the Air Force 

Reserve, and the Coast Guard Reserve. 

We would refer to section 10101 to 

provide further clarity on the specific 

types of service that would qualify as 

reserve component service, because 

VA’s definition of ‘‘Armed Forces’’ in 38 

U.S.C. 101(10) does not individually 

define the term ‘‘reserve components’’. 

Defining this term would be necessary 

to further identify eligible individuals in 

proposed 38 CFR 81.15. 

VA would define State as any of the 

several States of the United States, the 

District of Columbia, the 

Commonwealth of Puerto Rico, any 

territory or possession of the United 

States, or any agency or instrumentality 

of a State exclusive of local 

governments. This would be similar to 

the definition of the term found in 38 

U.S.C. 101(20), as well as the definition 

used in the LSV–H grant program (see 

38 CFR 79.5). 

VA would define subcontractor as any 

third-party contractor, of any tier, 

performing work directly for an eligible 

entity. This is a common understanding 

of the term and would be consistent 

with the definition used in the LSV–H 

grant program (see 38 CFR 79.5). 

VA would define suspension as an 

action by VA that temporarily 

withdraws VA funding under a legal 

assistance grant, pending corrective 

action by the grantee or pending a 

decision by VA to terminate the legal 

assistance grant. Suspension of a legal 

assistance grant would be a separate 

action from suspension under VA 

regulations or guidance implementing 

Executive Orders 12549 and 12689, 

‘‘Debarment and Suspension.’’ This 

definition would be consistent with the 

definition used in the LSV–H grant 

program (see 38 CFR 79.5). However, 

with regards to implementing Executive 

Orders 12549 and 12689, VA has added 

the word guidance, as not all of VA’s 

implementations of Executive Orders 

are regulatory. Suspension is addressed 

in proposed 38 CFR 81.110, which is 

further discussed in this rulemaking. 

VA would define withholding to mean 

that payment under a legal assistance 

grant would not be made until such 

time as VA determines that the grantee 

provides sufficiently adequate 

documentation and/or actions to correct 

a deficiency for the legal assistance 

grant. This term is defined in this 

manner as it is intended to provide a 

general description of how this term is 

used in 2 CFR part 200, which governs 

VA grant programs, including the legal 

assistance grant program. This term 

relates to withholding payment of a 

legal assistance grant pursuant to 38 

CFR 81.110, which is further discussed 

in this rulemaking. This definition 

would be similar to the definition used 

in the LSV–H grant program (see 38 CFR 

79.5). 

§ 81.10 Eligible Entities 

Proposed 38 CFR 81.10 would set 

forth the criteria for an entity to be 

considered eligible for the Grant 

Program. This section would be 

consistent with the provisions specified 

in section 548(b)(2) of the Act, which 

state that an eligible entity is a veterans 

service organization or other nonprofit 

organization specifically focused on 

assisting veterans; an entity specifically 

focused on assisting veterans and 

associated with an accredited law 

school; a legal services organization or 

bar association; or such other type of 

entity as VA considers appropriate for 

purposes of the Grant Program. This 

section would also provide additional 

criteria for such entities to be 

considered eligible for a legal assistance 

grant. 

Proposed 38 CFR 81.10 would state 

that an eligible entity must be a 

nonprofit or public entity that meets the 

following requirements. 

Proposed § 38 CFR 81.10(a) would 

establish the types of nonprofit entities 

that could be eligible for a legal 

assistance grant. While nonprofit status 

is required only in section 548(b)(2)(A) 

for an organization that is ‘‘specifically 

focused on assisting veterans’’, 

proposed § 81.10(a) would require that 

all of the entities set forth in proposed 

paragraphs (1) through (5) operate in a 

nonprofit status to be eligible for a legal 

assistance grant. We would include this 

additional requirement to ensure that 

only organizations who do not operate 

for profit would be eligible for a legal 

assistance grant as we believe that 

would be consistent with the intent of 


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the Grant Program, but we note that the 

majority of these entities already operate 

in a nonprofit status. As discussed 

previously, ‘‘nonprofit entity’’ would be 

defined in proposed § 81.5 as an entity 

that meets the requirements of 26 U.S.C. 

501(c)(3), (6), or (19). 

Proposed 38 CFR 81.10(a)(1) would 

state that a veterans service organization 

(VSO) that is specifically focused on 

assisting veterans and recognized by VA 

in accordance with 38 U.S.C. 5902 

would be eligible for a legal assistance 

grant. This would be consistent with 

section 548(b)(2)(A) and (e)(2) of the 

Act. We note that section 548(b)(2)(A) of 

the Act limits eligibility to VSOs 

‘‘specifically focused on assisting 

veterans’’, but we do not believe 

Congress intended to limit eligibility 

only to those VSOs providing services 

exclusively to veterans as defined in 38 

U.S.C. 101(2). Such an interpretation 

would render the language in section 

548(b)(1)(A) of the Act, which states that 

‘‘individuals who served in the Armed 

Forces’’ are eligible, superfluous. 

Therefore, even though the VSO must 

specifically focus on veterans, we would 

consider VSOs that provide services to 

more than just veterans (specifically 

those individuals eligible under 

proposed 38 CFR 81.15) to be eligible 

organizations under proposed 

§ 81.10(a)(1). To the extent that Congress 

did not intend this outcome under 

section 548(b)(2)(A) of the Act, VA 

would use its discretion under section 

548(b)(2)(D) of the Act to include VSOs 

that may also provide services to 

eligible individuals who do not meet the 

criteria to be a veteran under in 38 

U.S.C. 101(2). 

Proposed 38 CFR 81.10(a)(2) would 

state that an organization that is 

specifically focused on assisting 

veterans, but is not a VSO in accordance 

with proposed paragraph (a)(1), would 

be eligible for a legal assistance grant. 

This would be consistent with section 

548(b)(2)(A) of the Act. Similar to 

proposed 38 CFR 81.10(a)(1), VA would 

consider organizations specifically 

focused on assisting veterans that 

provide services to more than just 

veterans (specifically those individuals 

eligible under proposed § 81.15) to be 

eligible organizations under proposed 

§ 81.10(a)(2). 

Proposed 38 CFR 81.10(a)(3) would 

state that an entity associated with a law 

school accredited by the American Bar 

Association and specifically focused on 

assisting veterans would be eligible for 

a legal assistance grant. This would be 

consistent with section 548(b)(2)(B) of 

the Act. Many law schools operate one 

or more pro bono (no cost) legal 

assistance clinics as part of their 

curriculum. These legal assistance 

clinics allow law students to provide 

legal assistance directly to clients under 

the supervision of a licensed attorney. 

The areas of law and types of 

individuals served by these legal 

assistance clinics vary among law 

schools. Section 548(b)(2)(B) of the Act 

specifies that these entities must be 

‘‘associated with an accredited law 

school.’’ VA would require accreditation 

by the American Bar Association (ABA), 

as it is the largest and most universal 

accreditation standard for legal 

education in the United States. 

According to the Law School 

Admissions Council, only 35 law 

schools in the United States are not 

ABA-accredited, compared to nearly 

200 law schools accredited by the ABA. 

See https://www.lsac.org/choosing-lawschool/find-law-school/non-abaapproved-law-schools/ and https://

www.americanbar.org/groups/legal_

education/resources/aba_approved_

law_schools/. VA proposes to adopt this 

accreditation criteria because the ABA 

requires strict adherence to uniform 

academic standards and using this 

standard would provide for 

transparency and consistency among 

Grant Program applicants. See https://

www.americanbar.org/groups/legal_

education/resources/standards/. 

Proposed 38 CFR 81.10(a)(4) would 

state that a legal services organization 

would be eligible for a legal assistance 

grant. Legal services organizations are 

entities whose primary purpose is to 

provide pro bono legal assistance to 

individuals. Commonly referred to as 

‘‘legal aid,’’ each State has one or more 

organizations providing these services, 

which are typically limited to lowincome individuals. Legal services 

organizations may operate from a 

defined physical space using attorneys 

employed by the organization, or they 

may be structured as a network of 

attorneys providing pro bono services in 

their individual capacity to clients upon 

referral from the organization. Legal 

services organizations operate in a 

nonprofit status and are therefore 

distinct from law firms that operate for 

profit but may provide limited pro bono 

services. VA would not add any 

additional criteria for a legal services 

organization to be considered eligible, 

because these organizations are 

structured similarly and are easily 

identifiable within the legal community. 

This would be consistent with section 

548(b)(2)(C) of the Act. 

Proposed 38 CFR 81.10(a)(5) would 

state that a bar association, which is an 

organization of lawyers aligned at the 

national, State, or local level, would be 

eligible for a legal assistance grant. 

Some bar associations serve a regulatory 

function, while others are solely a 

professional organization for members. 

VA would not add any additional 

criteria for a bar association to be 

considered eligible, because these 

organizations are structured similarly 

and are easily identifiable within the 

legal community. This would be 

consistent with section 548(b)(2)(C) of 

the Act. 

Proposed 38 CFR 81.10(b) would 

establish the three categories of public 

entities that would be eligible for the 

Grant Program, which would be 

consistent with section 548(b)(2)(D) of 

the Act. 

Proposed 38 CFR 81.10(b)(1) would 

state that a local government, which 

would be further defined as a county, 

municipality, city, town, township, 

local public authority (including any 

public and Indian housing agency under 

the United States Housing Act of 1937), 

school district, special district, 

intrastate district, council of 

governments (whether or not 

incorporated as a nonprofit corporation 

under state law), any other regional or 

interstate government entity, or any 

agency or instrumentality of a local 

government, would be eligible for a 

legal assistance grant. 

Proposed paragraph (b)(2) would state 

that a State government would be 

eligible for a legal assistance grant. We 

would not include any further 

definition, as this term is commonly 

understood by the public. 

Proposed paragraph (b)(3) would state 

that a Federally recognized Indian tribal 

government would be eligible for a legal 

assistance grant. We would further 

define this term as the governing body 

or a governmental agency of any Indian 

tribe, band, nation, or other organized 

group or community (including any 

Native village as defined in section 3 of 

the Alaska Native Claims Settlement 

Act, 85 Stat. 688) certified by the 

Secretary of the Interior as eligible for 

the special programs and services 

provided by him through the Bureau of 

Indian Affairs. Using this definition 

would establish consistency and 

uniformity among Federal agencies in 

the administration of grants and 

cooperative agreements to State, local, 

and federally recognized Indian tribal 

governments. Inclusion of these public 

entities would be consistent with the 

LSV–H grant program (see 38 CFR 

79.10). 

§ 81.15 Eligible Individuals 

Proposed 38 CFR 81.15 would set 

forth the individuals eligible to receive 

legal assistance from grantees under the 

Grant Program. Proposed paragraph (a) 


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80176 Federal Register / Vol. 89, No. 191 / Wednesday, October 2, 2024 / Proposed Rules 

would establish the first criterion for an 

individual to be eligible for legal 

assistance, stating that the individual 

must have served in the Armed Forces, 

including individuals who served in a 

reserve component of the Armed Forces. 

This criterion would be consistent with 

the definition of individuals eligible to 

receive legal assistance described in 

section 548(b)(1)(A) of the Act. 

As explained previously, ‘‘Armed 

Forces’’ and ‘‘reserve component’’ 

would be defined in proposed 38 CFR 

81.5 as having the meaning given to 

those terms in 38 U.S.C. 101(10) and 10 

U.S.C. 10101, respectively. We would 

not use the term ‘‘veteran’’ as defined in 

38 U.S.C. 101(2) in proposed 38 CFR 

81.15(a), because the title 38 definition 

is narrower than those who would be 

explicitly eligible under section 

548(b)(1)(A) of the Act regarding 

character of discharge. Relying on the 

definition of ‘‘reserve component’’ in 10 

U.S.C. 10101 would also clarify that an 

individual who was called to serve in 

the Army or Air National Guard of the 

United States (pursuant to the authority 

to federalize the State militia under title 

10, U.S.C.) would be eligible to receive 

legal assistance, while an individual 

who served only in the Army or Air 

National Guard of an individual State 

(pursuant to the authority to maintain a 

State militia under title 32, U.S.C.) 

would not be eligible to receive legal 

assistance. An individual who was 

never called to Federal service in the 

Army or Air National Guard of the 

United States, but who served only in 

the Army or Air National Guard of an 

individual State, would not be eligible 

for any VA services, regardless of the 

individual’s military discharge or 

characterization of service, and such 

individual would therefore receive no 

benefit from the types of legal assistance 

able to be provided under the Grant 

Program as established in proposed 38 

CFR 81.20. 

Proposed 38 CFR 81.15(b) would 

establish the second criterion, stating 

that the individual must have been 

discharged or released therefrom, 

regardless of the conditions of such 

discharge or release. Proposed 

paragraph (b) would also state that for 

the purpose of determining eligibility, 

‘‘discharged or released’’ refers to the 

official termination of service in the 

component of the Armed Forces in 

which the individual served. This 

would be a commonsense interpretation 

of the term and would be necessary to 

ensure consistent application among the 

different terminology and 

documentation used by each military 

service and its reserve component(s). 

The conditions of an individual’s 

discharge or release would not be 

considered in determining eligibility for 

legal assistance under the Grant 

Program, which would be a deviation 

from the majority of VA programs and 

services that use the statutory definition 

of veteran under 38 U.S.C. 101(2) and 

require an individual’s discharge or 

release to be ‘‘under conditions other 

than dishonorable.’’ This section would 

be consistent with the eligibility criteria 

specified in section 548(b)(1)(A) of the 

Act. 

§ 81.20 Legal Assistance 

Proposed 38 CFR 81.20 would set 

forth the types of legal assistance 

eligible individuals could receive from 

grantees under the Grant Program. This 

section would be consistent with 

sections 548(b)(1)(A) of the Act and 38 

U.S.C. 5906(c) with one limitation, 

which is discussed in further detail 

below. 

Section 548(b)(1)(A) of the Act cites to 

38 U.S.C. 5906(c) to establish the types 

of legal assistance that may be provided 

under the Grant Program. Section 

5906(c) provides for the following types 

of legal assistance: legal assistance with 

any program administered by the 

Secretary; legal assistance associated 

with improving the status of a military 

discharge or characterization of service 

in the Armed Forces, including through 

a discharge review board or seeking a 

review of a military record before a 

board of correction for military or naval 

records; and such other legal assistance 

as the Secretary considers appropriate 

and determines may be needed by 

eligible individuals. 

Proposed 38 CFR 81.20(a) would 

explain that legal assistance could be 

provided with regard to any VA 

program administered by the Secretary. 

This would include navigating the full 

range of VA programs and services such 

as claims and appeals for compensation 

and pension, education, health care, 

loans, national cemetery matters, and 

VA character of discharge 

determinations. This would be 

consistent with section 548(b)(1)(A) of 

the Act and 38 U.S.C. 5906(c)(1). 

Pursuant to 38 U.S.C. 5901, no one can 

act as an agent or attorney in the 

preparation, presentation, or 

prosecution of any claim under laws 

administered by VA unless such 

individual has been recognized for such 

purposes by VA. VA implemented this 

authority and established a formal 

accreditation process in 38 CFR 14.626 

through 14.637. We would include a 

note to proposed paragraph (a) to state 

that a grantee must be accredited 

consistent with §§ 14.626 through 

14.637 before acting as an agent or 

attorney in the preparation, 

presentation, or prosecution of any 

claim under laws administered by VA. 

Proposed 38 CFR 81.20(b) would 

explain that legal assistance could be 

provided to improve the status of a 

military discharge or characterization of 

service in the Armed Forces, including 

through a discharge review board. 

Proposed paragraph (b) would further 

explain that legal assistance could also 

be provided in seeking review of a 

military record before a board of 

correction for military or naval records. 

This would be consistent with section 

548(b)(1)(A) of the Act and 38 U.S.C. 

5906(c)(2). 

During consultation, we received two 

comments encouraging VA to include 

legal assistance for any type of legal 

issue an eligible individual may be 

facing. We considered this input, but for 

the purposes of the Grant Program, we 

would not incorporate into regulation 

the ‘‘other legal assistance’’ provision in 

38 U.S.C. 5906(c)(3). Limiting legal 

assistance provided under the Grant 

Program to the areas specifically listed 

in 38 U.S.C. 5906(c)(1) and (2) would 

allow grantees to devote maximum 

resources to ensure this expanded 

population of eligible individuals can 

access VA programs and services for 

which they may be eligible. That is, VA 

believes it is critical to focus the legal 

assistance offered under the Grant 

Program on enabling eligibility for VA 

programs and services and does not 

intend to add assistance under 

5906(c)(3) at this time. 

§ 81.25 Applications for Legal 

Assistance Grants 

Proposed 38 CFR 81.25 would set 

forth the process for eligible entities to 

apply for a legal assistance grant under 

this part. 

Proposed paragraph (a) would provide 

the requirements for an application 

package to be considered complete, as 

described in further detail in the NOFO. 

To select eligible entities in accordance 

with the criteria provided in section 

548(b)(6) of the Act, Grant Program 

application packages would require the 

following information: 

Proposed 38 CFR 81.25(a)(1) would 

state that applicants must provide 

documentation demonstrating the entity 

is eligible to apply for a legal assistance 

grant under proposed § 81.10. This 

would ensure VA had necessary 

information to determine the applicant’s 

eligibility status and would be 

consistent with section 548(b)(2) of the 

Act. 

Proposed 38 CFR 81.25(a)(2) would 

state that applicants must describe their 

capacity, and the capacity of any 


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identified subcontractors, to provide 

legal assistance to eligible individuals. 

This would be consistent with section 

548(b)(6)(A) of the Act. 

Proposed 38 CFR 81.25(a)(3) would 

state that applicants must describe the 

legal assistance they would provide and 

the identified need for that assistance 

among eligible individuals. This would 

be consistent with section 548(b)(6)(B) 

of the Act. 

Proposed 38 CFR 81.25(a)(4) would 

state that applicants must also provide 

documentation that demonstrates their 

need for financial assistance from a legal 

assistance grant. This would be 

consistent with section 548(b)(6)(C) of 

the Act. 

Proposed 38 CFR 81.25(a)(5) would 

state that applicants must provide a 

description of the geographic area or 

community served by the applicant. 

This would be consistent with section 

548(b)(6)(D) of the Act. 

Proposed 38 CFR 81.25(a)(6) through 

(14) would set forth additional 

information necessary to ensure that VA 

could adequately evaluate applicants for 

the purposes of this Grant Program. 

These application criteria would be 

similar to criteria used in the LSV–H 

grant program (see 38 CFR 79.25). 

Proposed paragraph (a)(6) would state 

that applicants must describe the 

physical location where legal assistance 

will be provided to eligible individuals, 

if applicable (that is, if the applicant 

would be utilizing a physical space). 

Proposed paragraph (a)(7) would state 

that applicants must describe how they 

will ensure that legal assistance is 

provided to eligible individuals. 

Proposed paragraph (a)(8) would state 

that applicants must describe the 

characteristics of the eligible 

individuals who will receive legal 

assistance provided by the applicant. 

This criterion would provide an 

opportunity for applicants to explain if 

their proposed program would reach 

special populations, such as medically 

underserved or tribal individuals, and 

would be consistent with section 

548(b)(6)(B) and (E) of the Act. 

Proposed paragraph (a)(9) would state 

that applicants must provide an 

estimate with supporting 

documentation of the number of eligible 

individuals who will receive legal 

assistance provided by the applicant. 

Proposed paragraph (a)(10) would 

state that applicants must provide 

documentation relating to their ability 

to maintain appropriate levels of 

qualified staff and coordinate with any 

identified subcontractors. 

Proposed paragraph (a)(11) would 

state that applicants must provide 

documentation relating to their capacity 

to effectively administer a legal 

assistance grant. This documentation 

would need to address the applicant’s 

accounting practices and financial 

controls; capacity for data collection 

and reporting required under part 81; 

and experience administering other 

Federal, State, or county grants similar 

to the Grant Program under this part. 

Proposed paragraph (a)(12) would 

state that applicants must provide 

documentation of their managerial 

capacity. This documentation would 

need to address the applicant’s capacity 

to coordinate the provision of legal 

assistance by the applicant or by other 

organizations on a referral basis; 

continually assess the needs of 

participants for legal assistance; 

coordinate the provision of legal 

assistance with services provided by 

VA; customize legal assistance to the 

needs of eligible individuals; and 

comply with and implement the 

requirements of part 81 throughout the 

term of the legal assistance grant. 

Proposed paragraph (a)(13) would 

state that applicants must provide 

documentation demonstrating that 

adequate financial support will be 

available to carry out the legal 

assistance for which the grant is sought 

consistent with the application. 

Proposed paragraph (a)(14) would 

state that applicants must provide any 

additional information that VA deems 

appropriate, which VA would 

specifically list in the NOFO. This 

inclusive provision would allow VA to 

further tailor application requirements 

throughout the duration of the Grant 

Program, if necessary. 

Proposed paragraph (b) would state 

that subject to funding availability, 

grantees could apply for renewal of a 

legal assistance grant if the grantee’s 

program will remain substantially the 

same. To apply for renewal, a grantee 

would be required to submit a complete 

legal assistance grant renewal 

application package, as described in the 

NOFO. This would allow VA to renew 

legal assistance grants in a timely and 

efficient manner without lapse in the 

provision of legal assistance to 

participants from year to year. This 

would be consistent with the LSV–H 

grant program (see 38 CFR 79.25(b)). 

Proposed paragraph (c) would state 

that VA could request, in writing, that 

an applicant or grantee, as applicable, 

submit other information or 

documentation relevant to the 

application. This would be distinct from 

proposed paragraph (a)(14), which 

allows additional information to be 

requested within the NOFO. If an 

application caused concern or failed to 

address all required information, 

proposed paragraph (c) would allow VA 

to collect all necessary information to 

properly evaluate each applicant or 

grantee. 

81.30 Threshold Requirements Prior to 

Scoring Legal Assistance Grant 

Applicants 

Proposed 38 CFR 81.30 would set 

forth the threshold requirements that 

must be met before VA would score 

legal assistance grant applicants 

pursuant to § 81.35. 

Proposed paragraphs (a) through (h) of 

§ 81.30 would state that an application 

would be scored by VA if it 

demonstrates that the entity is eligible 

to receive a legal assistance grant under 

§ 81.10; if it is filed within the time 

period established in the NOFO and any 

additional information or 

documentation requested by VA under 

§ 81.25(c) is provided within the time 

frame established by VA; if it is 

completed in all parts; if the activities 

for which the legal assistance grant is 

requested would be eligible for funding 

under this part; if the applicant’s 

proposed participants would be eligible 

to receive legal assistance under this 

part; if the applicant agrees to comply 

with the requirements of this part; if the 

applicant does not have an outstanding 

obligation to the Federal government 

that is in arrears and does not have an 

overdue or unsatisfactory response to an 

audit; and if the applicant is not in 

default by failing to meet the 

requirements for any previous Federal 

assistance. 

By establishing these threshold 

requirements in regulation, applicants 

would be able to clearly determine 

whether they meet the minimum 

standard before beginning the intensive 

process of preparing and submitting a 

legal assistance grant application. This 

section would serve as an 

administrative checklist for applicants 

and would be similar to the LSV–H 

grant program (see 38 CFR 79.30). These 

threshold requirements would also 

ensure that VA could effectively utilize 

its resources by scoring only complete 

applications that could be eligible to 

receive a legal assistance grant. 

81.35 Scoring Criteria for Legal 

Assistance Grant Applicants 

Proposed 38 CFR 81.35 would set 

forth the criteria to score legal assistance 

grant applicants. VA would establish 

scoring criteria for awarding grants to 

allow VA to distribute legal assistance 

grants consistent with section 548(b) of 

the Act and VA’s goals and objectives 

for the Grant Program, which would be 

further detailed in the NOFO. 


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This section would not include 

specific point values for each criterion 

but would state that point values would 

be set forth in the NOFO. This would 

provide VA the flexibility to adjust 

point values throughout the 

administration of the Grant Program, if 

necessary. Values for these criteria 

could vary according to their likelihood 

to impact the successful development 

and operation of the applicant’s 

program. The proposed scoring criteria 

would be substantially similar to those 

developed for the LSV–H grant program 

(see 38 CFR 79.35). 

Proposed 38 CFR 81.35(a) would state 

that VA would award points based on 

the background, qualifications, 

experience, and past performance of the 

applicant and any subcontractors 

identified by the applicant in the legal 

assistance grant application, as 

demonstrated by the criteria described 

in proposed paragraphs (a)(1) and (2) of 

this section. These criteria would ensure 

that the applicant has the necessary and 

relevant background as well as the 

experience to provide legal assistance 

consistent with section 548(b)(6)(A) of 

the Act. 

Background and organizational 

history. Proposed 38 CFR 81.35(a)(1) 

would establish how VA would assess 

an applicant’s background and 

organizational history. VA would score 

an applicant’s background and 

organizational history relevant to the 

provision of legal assistance. VA would 

also score whether the applicant 

maintains organizational structures with 

clear lines of reporting and defined 

responsibilities, as well as whether the 

applicant has a history of complying 

with agreements and not defaulting on 

financial obligations. All ‘‘background 

and organizational history’’ 

requirements listed for an applicant 

would also be scored for any 

subcontractors identified by the 

applicant. 

Organization and staff qualifications. 

Proposed paragraph (a)(2) would 

establish how VA would assess an 

applicant’s organization and staff 

qualifications. VA would award points 

based on the applicant’s experience 

working with and providing legal 

assistance to individuals who would 

meet the criteria for eligibility specified 

in § 81.15. VA would consider an 

applicant’s experience working with 

former members of the Armed Forces, 

who are the individuals eligible for legal 

assistance under proposed § 81.15, as 

well as an applicant’s experience 

working with VA programs and services 

important to ensure the needs of eligible 

individuals will be met through the 

Grant Program. This would be 

especially relevant given that the legal 

assistance available under the Grant 

Program concerns only VA programs 

and services and military service-related 

matters. 

Applicants would be scored based on 

their qualifications to provide legal 

assistance, including the professional 

qualifications of staff and the ability to 

properly supervise law students, if 

applicable. Scoring would take into 

consideration whether attorneys are 

properly licensed, in good standing as a 

member of their State bar, and not 

subject to professional disciplinary 

action. Scoring would also consider 

whether an applicant associated with a 

law school has appropriate staff to meet 

applicable standards for supervising law 

students engaged in student practice. 

The rules for supervising law students 

eligible to practice law under the 

supervision of a practicing attorney vary 

among jurisdictions. 

To ensure that Grant Program 

resources could be allocated 

appropriately, VA would award points 

based on the experience of the 

applicant’s staff in administering 

programs similar to the Grant Program. 

All ‘‘organization and staff 

qualifications’’ requirements listed for 

an applicant would also be scored for 

any subcontractors identified by the 

applicant. 

Proposed paragraph (b) would state 

that VA would award points based on 

the applicant’s program concept and 

legal assistance plan, as demonstrated 

by the criteria listed in proposed 

paragraphs (b)(1) through (7). These 

criteria would be used to determine 

whether the applicant has a fully 

developed program concept and plan 

able to meet the intent of section 548(b) 

of the Act and this part. These criteria 

would be instrumental in assessing the 

potential effectiveness of an applicant’s 

proposed program and allocating 

resources to the greatest benefit of 

eligible individuals. 

Need for the program. Proposed 38 

CFR 81.35(b)(1) would establish how 

VA would assess the need for the 

program. Applicants would receive 

points based on the ability to 

demonstrate a need amongst eligible 

individuals, as well as an understanding 

of the legal assistance needs unique to 

eligible individuals, in the area or 

community the program would serve. 

VA would also consider the applicant’s 

demonstration of need for financial 

assistance from the legal assistance 

grant to serve eligible individuals. These 

selection criteria would be consistent 

with section 548(b)(6)(B) and (C) of the 

Act. 

Outreach and screening plan. 

Proposed 38 CFR 81.35(b)(2) would 

establish how VA would assess the 

applicant’s outreach and screening plan 

for eligible individuals. Applicants 

would receive points based on their 

outreach and referral plan to identify 

and assist eligible individuals in need of 

legal assistance covered by the Grant 

Program. Applicants would also need to 

demonstrate a plan to process and 

receive legal assistance referrals and 

assess and accommodate the needs of 

referred eligible individuals. 

Program concept. Proposed paragraph 

(b)(3) would establish that points would 

be awarded based on the feasibility of 

the applicant’s program concept, size, 

scope, and staffing plan. Program 

concept scoring would also include 

whether the applicant’s program is 

sufficiently designed to meet the legal 

needs of eligible individuals. 

Program implementation timeline. 

Proposed paragraph (b)(4) would 

establish that points would be awarded 

based on the timeliness of the proposed 

program. This would account for the 

applicant’s ability to begin providing 

legal assistance to eligible individuals as 

quickly as possible and within a 

specified timeline. Applicants would 

also be scored on the timeliness of their 

hiring plan or their plan to utilize 

present staff for the program. 

Collaboration and communication 

with VA. Proposed paragraph (b)(5) 

would establish that points would be 

awarded based on the applicant’s plan 

to coordinate services with local VA 

facilities. 

Ability to meet Grant Program 

expectations. Proposed paragraph (b)(6) 

would establish that points would be 

awarded based on the demonstration of 

commitment to ensuring the applicant’s 

program meets VA’s requirements, 

goals, and objectives for the Grant 

Program as specified in the NOFO. 

Capacity to undertake program. 

Proposed paragraph (b)(7) would 

establish that points would be awarded 

based on whether the applicant has 

sufficient capacity, including staff 

resources, to undertake the proposed 

program. 

Proposed paragraph (c) would state 

that VA would award points based on 

the applicant’s quality assurance and 

evaluation plan, as demonstrated by the 

criteria in proposed paragraphs (c)(1) 

through (4). These factors would be 

used to assess whether applicants will 

be equipped to adequately evaluate, 

monitor, report on, remediate, and 

manage the proposed program. These 

criteria would ensure that applicants 

selected for participation in the Grant 

Program would be able to provide the 


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information needed by VA to routinely 

assess the effectiveness of the Grant 

Program. 

Program evaluation. Proposed 

paragraph (c)(1) would establish that 

points would be awarded based on the 

creation of clear, realistic, and 

measurable metrics that align with the 

Grant Program’s aim of addressing the 

legal needs of eligible individuals and 

through which the applicant’s program 

performance can be continually 

evaluated. 

Monitoring. Proposed paragraph (c)(2) 

would establish that points would be 

awarded based on the applicant’s ability 

to monitor the proposed program. Points 

awarded would consider whether the 

applicant has adequate controls in place 

to regularly monitor the program, 

including any subcontractors, for 

compliance with all applicable laws, 

regulations, and guidelines. Whether the 

applicant has adequate financial and 

operational controls in place to ensure 

the proper use of legal assistance grant 

funds would also be considered. VA 

would score the feasibility of the 

applicant’s plan for ensuring that their 

staff, and any subcontractors, are 

appropriately trained and comply with 

the requirements of part 81. 

Remediation. Proposed paragraph 

(c)(3) would establish that points would 

be awarded based on the applicant’s 

plan to establish a system to remediate 

noncompliant aspects of the program if 

and when they are identified. 

Management and reporting. Proposed 

paragraph (c)(4) would establish that 

points would be awarded based on 

whether the applicant’s program 

management team has the capability 

and a system in place to provide timely 

and accurate reports at the frequency set 

by VA. 

Proposed paragraph (d) would state 

that VA would award points based on 

the applicant’s financial capability and 

plan, as demonstrated by the criteria 

listed in proposed paragraphs (d)(1) and 

(2). These criteria ensure that funds 

would be provided only to applicants 

who have considered the costs and have 

an acceptable plan to secure necessary 

funding for the consistent provision of 

legal assistance to eligible individuals. 

Organizational finances. Proposed 

paragraph (d)(1) would establish that 

points would be awarded based on the 

financial stability of the applicant and 

any identified subcontractors. 

Financial feasibility of the program. 

Proposed paragraph (d)(2) would 

establish that points would be awarded 

based on the applicant’s plan to obtain 

all funding necessary to operate the 

proposed program for the period of the 

legal assistance grant. VA would also 

score the cost-effectiveness of the 

applicant’s proposed program and the 

ability to effectively implement it onbudget. 

Proposed paragraph (e) would state 

that VA would award points based on 

the applicant’s connections within the 

community, a factor VA considers key 

to ensuring the success of the 

applicant’s proposed program and the 

Grant Program overall. Applicants 

would demonstrate this through the 

criteria listed in proposed paragraphs 

(e)(1) through (4). VA acknowledges that 

applicants may not have existing 

relationships but could develop them 

over time. Additionally, VA 

understands that applicants without 

these connections could obtain them 

through relationships with community 

partners. 

Area or community linkages. 

Proposed paragraph (e)(1) would 

establish that points would be awarded 

based on the applicant’s plan to develop 

or rely on existing linkages with VA, 

Federal, State, local, and tribal 

governments, agencies, and private 

entities for the purpose of providing 

additional legal assistance to eligible 

individuals. 

Past working relationships. Proposed 

paragraph (e)(2) would establish that 

points would be awarded based on the 

applicant’s (or applicant’s staff’s), and 

any identified subcontractors’ (or 

subcontractors’ staff’s) successful past 

working relationships and linkages with 

public and private organizations that 

provide legal and non-legal supportive 

services to eligible individuals. 

Local presence and knowledge. 

Proposed paragraph (e)(3) would 

establish that points would be awarded 

based on the applicant’s presence in the 

area or community to be served by the 

applicant, as well as the applicant’s 

understanding of the dynamics of that 

area or community. 

Integration of linkages and program 

concept. Proposed paragraph (e)(4) 

would establish that points would be 

awarded based on how the applicant’s 

linkages to the area or community 

would enhance the effectiveness of the 

proposed program. 

81.40 Selection of Grantees 

Proposed 38 CFR 81.40 would set 

forth the process for awarding legal 

assistance grants to applicants. These 

criteria would be consistent with the 

selection criteria in section 548(b)(6) of 

the Act and similar to the LSV–H grant 

program (see 38 CFR 79.40). 

Proposed paragraph (a) would state 

that VA would score all applicants 

meeting the threshold requirements 

specified in § 81.30 using the scoring 

criteria specified in § 81.35. 

Proposed paragraph (b) would state 

that applicants would be grouped 

within the applicable funding priorities 

if such priorities are set forth in the 

NOFO. Establishing funding priorities 

in the NOFO would provide VA the 

flexibility to update changing priorities 

quickly and efficiently throughout the 

conduct of the Grant Program. 

Proposed paragraph (c) would state 

that applicants receiving the minimum 

amount of total points and points per 

category set forth in the NOFO would be 

ranked in order from highest to lowest 

scores, within their respective funding 

priority group, if any. The minimum 

amount of total points and points per 

category would be specified in the 

NOFO and could change annually. 

Establishing point values in the NOFO 

would provide VA the flexibility to 

address changing requirements 

throughout the administration of the 

Grant Program. 

Proposed paragraph (d) would state 

that VA would use the applicant’s 

ranking as the primary basis for 

selection for funding. VA would ensure 

that at least one legal assistance grant is 

distributed to an eligible entity in each 

State, if VA determines that there is 

such an entity in a State that has 

applied for a legal assistance grant and 

meets the requirements specified in 

§ 81.30. This would be consistent with 

the requirement specified in section 

548(b)(3) of the Act and would also 

account for the requirement to consider 

the geographic diversity of applicants 

specified in section 548(b)(6)(D) of the 

Act. 

Proposed 38 CFR 81.40(e) would state 

that VA would fund the highest-ranked 

applicants for which funding is 

available, within the highest funding 

priority group, if any, subject to the 

provisions of proposed paragraph (d) of 

this section. If funding priorities have 

been established, VA would select 

applicants in the next highest funding 

priority group based on their rank 

within that group, to the extent funding 

is available and subject to the provisions 

of proposed paragraph (d) of this 

section. 

Proposed paragraph (f) would state 

that VA could select an applicant for 

funding when sufficient funds become 

available if the applicant would have 

been selected but for a procedural error 

committed by VA. This provision would 

apply only if there is no material change 

in the information that would have 

resulted in the applicant’s selection. A 

new application would not be required. 


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80180 Federal Register / Vol. 89, No. 191 / Wednesday, October 2, 2024 / Proposed Rules 

§ 81.45 Scoring Criteria for Grantees 

Applying for Renewal of Legal 

Assistance Grants 

Proposed 38 CFR 81.45 would set 

forth the criteria to score legal assistance 

grantees applying for renewal of a 

previously awarded grant. Utilization of 

these scoring criteria would allow VA to 

review and evaluate grantees 

appropriately to ensure that only 

successful programs would receive 

additional grant funding. These criteria 

would be consistent with section 548(b) 

of the Act and similar to the LSV–H 

grant program (see 38 CFR 79.45). 

Proposed paragraph (a) would state 

that VA would award points based on 

the success of the grantee’s program. 

Success would be determined by the 

overall satisfaction of program 

participants, if such information was 

available, as well as the timeliness of 

the legal assistance provided to 

participants by the grantee. VA would 

score how well the grantee developed 

and sustained relationships with 

community partners to refer eligible 

individuals in need of legal assistance. 

Grantees would also be scored on their 

effectiveness in conducting outreach to 

eligible individuals, demonstrated 

through increased engagement of 

participants. 

Proposed paragraph (b) would state 

that VA would award points based on 

the cost effectiveness of the grantee’s 

program, demonstrated by showing that 

the cost per participant was reasonable 

and that the program was effectively 

implemented within budget. 

Proposed paragraph (c) would state 

that VA would award points based on 

how well the program complied with 

Grant Program goals and requirements. 

VA would consider whether the 

grantee’s program was administered in 

accordance with VA’s goals for the 

Grant Program as described in the 

NOFO; with all applicable laws, 

regulations, and guidelines; and with 

the legal assistance grant agreement. 

Proposed paragraph (d) would state 

that VA would award points based on 

the continued need of the grantee’s 

program for financial assistance from 

the Grant Program to serve eligible 

individuals. This would be consistent 

with section 548(b)(6)(C) of the Act. 

81.50 Selection of Grantees for 

Renewal of Legal Assistance Grants 

Proposed 38 CFR 81.50 would set 

forth the process for selecting grantees 

applying for renewal of legal assistance 

grants. VA would score grantees seeking 

renewal using a simplified process 

considering the success, cost 

effectiveness, and compliance of their 

program with Grant Program 

expectations. These criteria would be 

consistent with section 548(b) of the Act 

and similar to the LSV–H grant program 

(see 38 CFR 79.50). 

Proposed 38 CFR 81.50(a) would state 

that VA would score all grantees 

meeting the threshold requirements 

specified in § 81.30 using the scoring 

criteria specified in § 81.45. 

Proposed paragraph (b) would state 

that grantees receiving the minimum 

amount of total points and points per 

category set forth in the NOFO would be 

ranked in order from highest to lowest 

scores. 

Proposed paragraph (c) would state 

that VA would use the grantee’s ranking 

as the basis for selection for funding and 

would fund the highest-ranked grantees 

for which funding is available. 

Proposed paragraph (d) would state 

that VA could award any deobligated 

funds to an applicant or existing grantee 

at its discretion. If VA chose to award 

deobligated funds to an applicant or 

existing grantee, proposed paragraph 

(d)(1) would state that VA could first 

offer the deobligated funds to the 

applicant or grantee with the highest 

score under the relevant NOFO that 

applies for, or is awarded a renewal 

grant in, the same community as, or a 

proximate community to, the affected 

community. Such applicant or grantee 

would have to have the capacity and 

agree to provide prompt services to the 

affected community. 

The relevant NOFO refers to the most 

recently published NOFO which covers 

the geographic area including the 

affected community, or for multi-year 

grant awards, the NOFO for which the 

grantee, who is offered additional funds, 

received the multi-year award. If the 

first such applicant or grantee offered 

the deobligated funds refuses, proposed 

paragraph (d)(2) would state that VA 

could then offer the deobligated funds 

to the next highest-ranked applicant or 

grantee, per the criteria in proposed 

paragraph (d)(1) of this section. VA 

would continue on in rank order until 

the deobligated funds were awarded. 

Under proposed paragraph (d)(3), VA 

could offer to award funds under other 

conditions, or could choose not to 

award the deobligated funds at all, 

when VA deems it appropriate based on 

other relevant factors. 

Proposed paragraph (e) would state 

that VA could select a grantee for 

renewed funding when sufficient funds 

become available if the grantee would 

have been selected for renewal but for 

a procedural error committed by VA. 

This provision would apply only if 

there is no material change in the 

information that would have resulted in 

the grantee’s selection. A new 

application would not be required. 

81.55 General Operation Requirements 

Proposed 38 CFR 81.55 would set 

forth the requirements for the operation 

of legal assistance programs 

administered pursuant to this part. 

These requirements would further the 

effective administration of the grantee’s 

program, ensure that the legal needs of 

eligible individuals are being properly 

addressed, and would be similar to the 

LSV–H grant program (see 38 CFR 

79.55). 

Eligibility documentation. Proposed 

paragraph (a) would explain how 

grantees must handle and record the 

eligibility of participants. Prior to 

providing legal assistance, grantees 

must verify and document an 

individual’s eligibility using the criteria 

specified in § 81.15. Once a grantee 

begins providing legal assistance, the 

grantee must continue to provide legal 

assistance as long as the participant 

remains eligible and has a need for legal 

assistance. If a participant becomes 

ineligible or the grantee is unable to 

meet the participant’s legal needs, the 

grantee would be required to provide 

information about other programs and 

resources or provide a referral to 

another organization able to meet the 

participant’s need. 

Legal assistance documentation. 

Proposed paragraph (b) would explain 

how grantees must document 

information about the legal assistance 

provided to participants. Grantees 

would have to document the legal 

assistance provided and how it was 

provided. Grantees would have to 

document the duration of the legal 

assistance provided and document the 

goals for the provision of such 

assistance. Grantees would also have to 

document any measurable outcomes of 

the legal assistance provided as 

determined by VA, such as whether the 

participant’s legal issue was resolved. 

This information is necessary to VA to 

evaluate the success of the Grant 

Program and how to allocate funds. 

Confidentiality. Proposed paragraph 

(c) would explain that grantees must 

maintain the confidentiality of 

participant records related to the 

provision of legal assistance. Grantees 

would have to establish and implement 

procedures ensuring the confidentiality 

of participant records, as well as 

information related to the address or 

location where legal assistance is 

provided. The procedures established 

by a grantee must be consistent with the 

attorney-client confidentiality rules of 

the applicable State bar. 


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Notifications to participants. 

Proposed paragraph (d) would explain 

that grantees would need to provide 

certain information to participants. Prior 

to providing legal assistance, grantees 

would inform participants that legal 

assistance is being paid for, in whole or 

in part, by VA. Participants would also 

have to be notified of the specific type 

of legal assistance available through the 

grantee’s program, as well as any 

conditions or restrictions on the receipt 

of legal assistance by the participant. 

Assessment of funds. Proposed 

paragraph (e) would explain that 

grantees must regularly assess how grant 

funds can be used alongside other 

available funds and services to ensure 

the continuity of program operations 

and assist participants. This would 

encourage grantees to search for and 

leverage additional resources that could 

improve the grantee’s program and the 

legal and non-legal needs of 

participants. 

Administration of legal assistance 

grants. Proposed paragraph (f) would 

explain that grantees must properly 

administer legal assistance grants. This 

would include compliance with the 

requirements of this part, with the legal 

assistance grant agreement, and with 

other applicable Federal, State, and 

local laws and regulations. Grantees 

would also be responsible for ensuring 

that the activity of subcontractors is in 

compliance. 

While proposed § 81.55 would not 

include a reporting requirement for the 

information required from grantees in 

this section, grantees would be required 

to include such information in a report 

to VA as required and specified in 

§ 81.95. This report, discussed in further 

detail in the discussion of § 81.95 

below, would contain information 

relating to a grantee’s operational 

effectiveness, fiscal responsibility, 

compliance with the legal assistance 

grant agreement, and legal and 

regulatory compliance. Additionally, 

the records required under this section 

would need to be maintained for at least 

three years as specified in § 81.100, 

which is also discussed in further detail 

below. These provisions would be 

consistent with the reporting 

requirement found in section 548(b)(7) 

of the Act. 

81.60 Fee Prohibition 

Proposed 38 CFR 81.60 would explain 

that grantees would be prohibited from 

charging a fee to participants for 

providing legal assistance funded by a 

legal assistance grant under this part. 

This prohibition would be mandated by 

section 548(b) of the Act, which requires 

‘‘pro bono legal assistance’’ for the 

program and would be similar to the 

LSV–H grant program (see 38 CFR 

79.60). 

We note that attorneys providing 

services in connection with 

representation for benefits outside of 

this Grant Program may be eligible to 

recover fees and expenses under the 

provisions of 38 CFR 14.636 and 14.637. 

Section 14.636 authorizes accredited 

agents and attorneys to collect 

reasonable fees directly related to the 

representation of individuals before VA 

and the Board of Veterans’ Appeals 

through a fixed fee, an hourly rate, a 

percentage of benefits recovered, or a 

combination of such bases. Section 

14.637 authorizes accredited agents and 

attorneys to be reimbursed for certain 

nonrecurring expenses such as travel, 

copying records, and expert opinions 

incurred directly in the prosecution of 

a claim for benefits. However, because 

the attorneys providing legal assistance 

under the Grant Program must provide 

such assistance pro bono in accordance 

with the authorizing statute, the fee 

prohibition in proposed § 81.60 would 

apply irrespective of the provisions in 

§ 14.636. The fee prohibition in 

proposed § 81.60 would also apply 

despite the ability for accredited 

attorneys and agents outside of this 

program to collect certain 

reimbursement expenses under § 14.637 

because these fees are only authorized 

pursuant to a fee agreement, and a fee 

agreement would not be executed in the 

provision of pro bono legal assistance 

under the Grant Program. 

§ 81.65 Notice of Funding Opportunity 

Proposed 38 CFR 81.65 would 

provide information on the Notice of 

Funding Opportunity (NOFO). The 

NOFO would be a formal announcement 

published on www.grants.gov that 

communicates specific details about the 

availability and award of legal 

assistance grants to the public. This 

section would be similar to the LSV–H 

grant program (see 38 CFR 79.65). 

This section would explain what 

would be identified in the NOFO, 

including the location to obtain legal 

assistance grant applications, as well as 

the date, time, and place to submit 

completed applications. The NOFO 

would identify the estimated amount 

and type of funding available, including 

the maximum amount and the length of 

each award. The NOFO would identify 

specific point values for each criterion 

specified in proposed § 81.35 and 81.45 

along with the minimum number of 

total points and points per category that 

an applicant or grantee would need to 

receive for a legal assistance grant to be 

funded. The NOFO would identify any 

maximum uses of grant funds for 

specific types of legal assistance and the 

timeframes and manner of payment for 

legal assistance grants. The NOFO 

would also identify any additional 

information necessary for the 

application process as determined by 

VA, including the requirements, goals, 

and objectives of the Grant Program. 

§ 81.70 Legal Assistance Grant 

Agreements 

Proposed 38 CFR 81.70 would 

provide information on legal assistance 

grant agreements, which would be the 

written agreements executed between 

VA and grantees. These agreements 

would be legally enforceable and 

provide assurance to VA that grantees 

would use awarded funds properly. 

This section would be similar to the 

LSV–H grant program (see 38 CFR 

79.70). 

Proposed paragraph (a) would state 

that VA would draft and execute a legal 

assistance grant agreement with an 

applicant after the applicant is selected 

for a legal assistance grant in accordance 

with § 81.40. Upon execution of the 

agreement, VA would obligate funds to 

cover the amount of the approved legal 

assistance grant, subject to the 

availability of funding. The grantee 

would be required to agree, and ensure 

that each subcontractor agrees, to 

operate the program in accordance with 

their application and the provisions of 

part 81. Grantees would also need to 

agree to comply with other terms and 

conditions established by VA for 

purposes of carrying out the Grant 

Program in an effective and efficient 

manner. Such terms and conditions 

would include recordkeeping and 

reports for program monitoring and 

evaluation purposes. Grantees would be 

required to agree to provide additional 

information deemed appropriate by VA. 

Proposed paragraph (b) would state 

that VA would draft and execute a legal 

assistance grant agreement with a 

grantee after such grantee is selected for 

grant renewal in accordance with 

§ 81.50. Upon execution of the 

agreement, VA would obligate funds to 

cover the amount of the approved legal 

assistance grant, subject to the 

availability of funding. The renewed 

legal assistance grant agreement would 

contain the same provisions described 

in proposed § 81.70(a). 

Proposed paragraph (c) would explain 

that Grant Program funds could not be 

used to replace Federal, State, tribal, or 

local funds previously used, or 

designated for use, to assist eligible 

individuals. 


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§ 81.75 Program or Budget Changes 

and Corrective Action Plans 

Proposed 38 CFR 81.75 would set 

forth the process for modifications to a 

grantee’s program or budget and would 

provide for the use of a corrective action 

plan (CAP). These provisions would 

provide necessary oversight and control 

of grantees’ programs, allowing VA to 

address deficiencies and ensure grant 

funds are used properly. This section 

would be similar to the LSV–H grant 

program (see 38 CFR 79.75). 

Proposed paragraph (a) would state 

that a grantee must submit a written 

request to VA to modify a legal 

assistance grant for any proposed 

significant change that would alter its 

legal assistance program. If approved, 

VA would issue a written amendment to 

the legal assistance grant agreement. A 

grantee would need to receive VA 

approval prior to implementing a 

significant change. 

Proposed paragraph (a)(1) would state 

that significant changes would 

include—but would not be limited to— 

a change in the grantee or any 

subcontractors identified in the legal 

assistance grant agreement; a change in 

the area or community served by the 

grantee; additions or deletions of legal 

assistance provided by the grantee; a 

change in category of eligible 

individuals to be served; and a change 

in budget line items that are more than 

ten percent of the total legal assistance 

grant award. 

Proposed paragraph (a)(2) would state 

that VA’s approval of changes would be 

contingent upon the grantee’s amended 

application retaining a sufficient rank to 

have been competitively selected for 

funding in the year the application was 

granted. Modification requests would 

need to contain a description of, and 

justification for, the revised proposed 

use of legal assistance grant funds. 

Proposed paragraph (b) would state 

that VA could require a grantee to 

initiate, develop, and submit a CAP if, 

on a quarterly basis, actual legal 

assistance grant expenditures vary from 

the amount disbursed to a grantee for 

that same quarter or actual legal 

assistance grant activities vary from the 

grantee’s program description provided 

in the legal assistance grant agreement. 

A CAP would need to identify the 

expenditure or activity source that has 

caused the deviation, describe the 

reason(s) for the variance, and provide 

specific proposed corrective action(s) 

and a timetable for accomplishment of 

the corrective action. After receipt, VA 

would inform the grantee, by letter, 

whether the CAP is approved or 

disapproved. If the CAP is disapproved, 

VA would make suggestions to improve 

the proposed CAP and request 

resubmission. VA could also take other 

remedial actions in accordance with this 

part. 

Proposed paragraph (c) would state 

that grantees must inform VA in writing 

of any grantee address changes and key 

personnel changes, such as a new 

executive director, legal assistance grant 

program director, or chief financial 

officer. Notice of these changes would 

need to be given to VA within 30 days 

of the change. 

§ 81.80 Faith-Based Organizations 

Proposed 38 CFR 81.80 would state 

that faith-based organizations would be 

eligible, on the same basis as other 

organizations, to participate in the Grant 

Program under this part. This section 

would reference the requirements of 38 

CFR part 50. Part 50 explains that faithbased organizations are eligible to 

participate in VA’s grant-making 

programs on the same basis as any other 

organizations, that VA will not 

discriminate against faith-based 

organizations in the selection of service 

providers, and that faith-based and 

other organizations may request 

accommodations from program 

requirements and may be afforded such 

accommodations in accordance with 

Federal law. 

VA would apply the provisions of 

part 50 to the Grant Program established 

under part 81. However, we would not 

restate the provisions of part 50 in part 

81. In the event that VA makes future 

amendments to part 50, such 

amendments would apply to the Grant 

Program without further need to amend 

part 81. 

§ 81.85 Visits To Monitor Operations 

and Compliance 

Proposed 38 CFR 81.85 would set 

forth VA’s authority to conduct visits for 

the purpose of inspecting a grantee’s 

legal assistance grant program for 

compliance with the requirements of 

this part. The ability to conduct 

inspections and monitor operations 

would provide critical oversight for 

legal assistance grants and would be 

similar to the LSV–H grant program (see 

38 CFR 79.85). 

Proposed paragraph (a) would 

authorize VA to make visits at 

reasonable times to all grantee locations 

where legal assistance grant funds are 

being utilized. The purpose of these 

visits would be to review grantee 

accomplishments and management 

control systems and to provide technical 

assistance as required. VA would 

conduct these inspections of program 

locations and records of a grantee at 

such times as necessary to determine 

compliance with the provisions of this 

part. 

If the visit would be to the premises 

of the grantee or a subcontractor, the 

grantee, and any subcontractor, would 

need to provide all reasonable facilities 

and assistance for the safety and 

convenience of the VA representatives 

in the performance of their duties. If 

legal assistance would be provided at a 

participant’s home or a location away 

from the grantee’s place of business, VA 

could accompany the grantee but would 

only visit a participant’s home with 

consent of the participant. All visits and 

evaluations would be performed in such 

a manner as to not unduly delay 

services. 

Proposed paragraph (b) would clarify 

that the authority to inspect would not 

provide VA with authority over the 

management or control of any applicant 

or grantee under this part. 

§ 81.90 Financial Management and 

Administrative Costs 

Proposed 38 CFR 81.90 would set 

forth the financial management 

expectations for grant funds. While this 

section would specifically mention 

certain general principles, it would also 

orient readers to the full financial 

management requirements of 2 CFR part 

200. This reference would ensure that 

applicants and grantees would be aware 

that legal assistance grants would be 

subject to the additional requirements of 

part 200. VA would refer to part 200 

rather than including all applicable 

provisions to prevent the necessity of 

changes to this part if changes to part 

200 are later made. This section would 

be similar to the LSV–H grant program 

(see 38 CFR 79.90). 

Proposed paragraph (a) would state 

that grantees must comply with 

applicable requirements of the Uniform 

Administrative Requirements, Cost 

Principles, and Audit Requirements for 

Federal Awards under 2 CFR part 200, 

which applies to all Federal funds 

awarded to non-Federal entities. 

Proposed 38 CFR 81.90(b) would state 

that grantees must use a financial 

management system that provides 

adequate fiscal control and accounting 

records and meets the requirements 

established in 2 CFR part 200. Financial 

management requirements are currently 

located in § 200.302. 

Proposed 38 CFR 81.90(c) would state 

that payment up to the amount specified 

in the legal assistance grant must be 

made only for allowable, allocable, and 

reasonable costs in conducting the work 

under the grant. The determination of 

allowable costs would need to be made 

in accordance with the applicable 


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Federal cost principles found in 2 CFR 

part 200. Cost principles are currently 

located in §§ 200.400 through 200.476. 

Proposed 38 CFR 81.90(d) would 

adopt the requirement in 2 CFR 200.414, 

or successor regulations, that all 

grantees may request indirect costs by 

applying the negotiated indirect cost 

rate established with their Federal 

cognizant agency; by applying a de 

minimis rate as described in 2 CFR 

200.414(f), or successor regulations, if 

they do not have a negotiated indirect 

cost rate; or requesting to negotiate an 

indirect cost rate with VA or their 

Federal cognizant agency. 

§ 81.95 Grantee Reporting 

Requirements 

Proposed 38 CFR 81.95 would set 

forth the reporting requirements for 

legal assistance grantees. These 

requirements would be consistent with 

section 548(b)(7) of the Act, which 

states that legal assistance grantees must 

report on their activities and the 

utilization of grant funds in accordance 

with criteria established by VA. These 

requirements would allow for oversight 

and prudent management of taxpayer 

dollars and would be similar to the 

LSV–H grant program (see 38 CFR 

79.95). 

Proposed 38 CFR 81.95(a) would state 

that VA could require grantees to 

provide, in such form as may be 

prescribed, such reports or answers in 

writing to specific questions, surveys, or 

questionnaires as VA determines 

necessary to carry out the Grant 

Program. 

Proposed paragraph (b) would state 

that grantees must submit to VA at least 

once per year, or at another frequency 

set by VA, a report containing 

information on the grantee’s 

performance under the Grant Program. 

This report would contain data 

concerning the operational effectiveness 

and fiscal responsibility of the grantee, 

as well as the grantee’s compliance with 

the legal assistance grant agreement and 

all applicable laws and regulations. The 

report would need to include a 

breakdown of how the grantee utilized 

legal assistance grant funds, the number 

of participants assisted, and describe the 

legal assistance provided to 

participants. Because the Grant Program 

would serve an expanded population of 

eligible individuals, this report would 

also need to include critical data on 

each participant, including gender, age, 

race, service era, branch of service, 

component, and status of military 

discharge or characterization of service. 

The information specified in proposed 

paragraph (b) would be critical to 

analyze and monitor the grantee’s 

performance, and VA would be able to 

request any additional information if 

necessary. 

Proposed paragraph (c) would state 

that VA retains the discretion to request 

additional reports or information 

needed to fully assess the provision of 

legal assistance under this part. This 

inclusive provision would allow VA to 

collect all necessary information to 

properly assess and develop the Grant 

Program, and VA anticipates that 

requests under proposed paragraph (c) 

would vary on a based on the grantee’s 

circumstances. This provision would 

also allow VA to clarify any information 

received in other reports from a grantee, 

if necessary. 

Proposed paragraph (d) would state 

that grantees must connect financial 

data to performance data and develop 

unit cost information whenever 

practical. This data would be 

instrumental in evaluating the financial 

efficiency of the grantee’s program and 

the individual legal assistance provided. 

Proposed paragraph (e) would state 

that all pages of reports must cite the 

grantee’s legal assistance grant number 

and be submitted in a timely manner as 

specified in the grant agreement. 

Proposed paragraph (f) would state 

that grantees must provide consent to 

post report information on the internet 

and in other ways deemed appropriate 

by VA. Additionally, grantees would be 

required to redact confidential 

information based on attorney-client 

privilege, unless the privilege has been 

waived by the client. These provisions 

would allow VA to keep the public 

informed of the availability and 

progression of the Grant Program. 

§ 81.100 Recordkeeping 

Proposed 38 CFR 81.100 would set 

forth the recordkeeping requirements for 

legal assistance grantees. To document 

compliance with the requirements of the 

Grant Program, grantees would be 

required to maintain all relevant records 

for three years (unless a longer period is 

otherwise required by VA) and produce 

them upon request by VA. Maintaining 

records for this period would provide 

VA the information it needs to oversee 

and manage the Grant Program. This 

provision would be consistent with the 

recordkeeping requirements for Federal 

awards found in 2 CFR 200.334, as well 

as the reporting requirement found in 

section 548(b)(7) of the Act. This 

provision would also be similar to the 

LSV–H grant program (see 38 CFR 

79.100). 

§ 81.105 Technical Assistance 

Proposed 38 CFR 81.105 would 

explain that VA would provide 

technical assistance to applicants and 

grantees, as necessary, to help them 

meet the requirements of this part. This 

assistance would be provided directly 

by VA or through contracts with 

appropriate public or nonprofit private 

entities. Assistance could include 

resources for planning, development, 

and provision of legal assistance to 

eligible individuals. VA could also offer 

training sessions to help applicants and 

grantees understand and implement the 

Grant Program. This section would also 

be similar to the LSV–H grant program 

(see 38 CFR 79.105). 

§ 81.110 Withholding, Suspension, 

Deobligation, Termination, and 

Recovery of Funds by VA 

Proposed 38 CFR 81.110 would 

explain that VA would enforce part 81 

through appropriate actions such as 

withholding, suspension, deobligation, 

termination, recovery of funds by VA, 

and any other allowable actions in 

accordance with 2 CFR part 200. This 

section would be similar to the LSV–H 

grant program (see 38 CFR 79.110). 

Similar to proposed 38 CFR 81.90, 

proposed § 81.110 would reference 2 

CFR part 200 to ensure that applicants 

and grantees would be aware that legal 

assistance grants would be subject to the 

additional requirements of part 200. 

Remedies for noncompliance and 

collection of funds are currently located 

in §§ 200.208, 200.305, 200.339 through 

200.343, and 200.346. Rather than 

including all applicable provisions, VA 

would refer to part 200 to prevent the 

necessity of changes to part 81 if 

changes to part 200 are later made. 

Certain enforcement actions under 

proposed 38 CFR 81.110, such as 

suspension and termination, could 

result in a disruption of legal assistance 

to participants. We do not propose to 

regulate the responsibilities of grantees 

to continue providing services or to 

coordinate the transfer of participants to 

other sources of legal support. Instead, 

we would include such requirements 

and responsibilities in the grant 

agreement that VA and the grantee 

would enter into, which would ensure 

any disruption and impact on 

participants is minimized as much as 

possible. 

§ 81.115 Legal Assistance Grant 

Closeout Procedures 

Proposed 38 CFR 81.115 would 

explain that legal assistance grants 

would be closed out in accordance with 

the provisions of 2 CFR part 200. 

Similar to proposed 38 CFR 81.90 and 

81.110, proposed § 81.115 would 

reference 2 CFR part 200 to ensure that 

applicants and grantees are aware that 


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legal assistance grants would be subject 

to these additional requirements. VA 

would refer to part 200 rather than 

include the relevant requirements in 

this section in case changes are later 

made to part 200. Procedures for closing 

out Federal awards are currently located 

in §§ 200.344 and 200.345. 38 CFR 

81.115 would be similar to the LSV–H 

grant program (see 38 CFR 79.115). 

Executive Orders 12866, 13563, and 

14094 

Executive Order 12866 (Regulatory 

Planning and Review) directs agencies 

to assess the costs and benefits of 

available regulatory alternatives and, 

when regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety effects, and other advantages; 

distributive impacts; and equity). 

Executive Order 13563 (Improving 

Regulation and Regulatory Review) 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 

promoting flexibility. Executive Order 

14094 (Executive Order on Modernizing 

Regulatory Review) supplements and 

reaffirms the principles, structures, and 

definitions governing contemporary 

regulatory review established in 

Executive Order 12866 of September 30, 

1993 (Regulatory Planning and Review), 

and Executive Order 13563 of January 

18, 2011 (Improving Regulation and 

Regulatory Review). The Office of 

Information and Regulatory Affairs has 

determined that this rulemaking is not 

a significant regulatory action under 

Executive Order 12866, as amended by 

Executive Order 14094. The Regulatory 

Impact Analysis associated with this 

rulemaking can be found as a 

supporting document at 

www.regulations.gov. 

Regulatory Flexibility Act 

The Secretary hereby certifies that 

this proposed rule would not have a 

significant economic impact on a 

substantial number of small entities as 

they are defined in the Regulatory 

Flexibility Act (5 U.S.C. 601–612). To 

the extent there is any such impact, it 

would result in financial assistance to 

eligible entities who apply for a legal 

assistance grant. Therefore, pursuant to 

5 U.S.C. 605(b), the initial and final 

regulatory flexibility analysis 

requirements of 5 U.S.C. 603 and 604 do 

not apply. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

of 1995 requires, at 2 U.S.C. 1532, that 

agencies prepare an assessment of 

anticipated costs and benefits before 

issuing any rule that may result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

(adjusted annually for inflation) in any 

one year. This proposed rule would 

have no such effect on State, local, and 

tribal governments, or on the private 

sector. 

Paperwork Reduction Act 

This proposed rule includes 

provisions constituting collections of 

information under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501– 

3521) that require approval by the Office 

of Management and Budget (OMB). 

Accordingly, under 44 U.S.C. 3507(d), 

VA has submitted a copy of this 

rulemaking action to OMB for review. 

OMB assigns control numbers to 

collections of information it approves. 

VA may not conduct or sponsor, and a 

person is not required to respond to, a 

collection of information unless it 

displays a currently valid OMB control 

number. Section 81.25 contains 

application provisions for legal 

assistance grants, including renewals. 

Section 81.75 contains provisions for 

program or budget changes and 

submission of corrective action plans. 

Section 81.95 contains grantee reporting 

requirements. These sections are 

collections of information under the 

Paperwork Reduction Act of 1995. If 

OMB does not approve the collections 

of information as requested, VA will 

immediately remove the provisions 

containing a collection of information or 

take such other action as is directed by 

OMB. 

Comments on the new collection of 

information contained in this 

rulemaking should be submitted 

through www.regulations.gov. 

Comments should be sent within 60 

days of publication of this rulemaking. 

The collection of information associated 

with this rulemaking can be viewed at 

www.reginfo.gov/public/do/PRAMain. 

OMB is required to make a decision 

concerning the collection of information 

contained in this rulemaking between 

30 and 60 days after publication of this 

rulemaking in the Federal Register. 

Therefore, a comment to OMB is best 

assured of having its full effect if OMB 

receives it within 30 days of 

publication. This does not affect the 

deadline for the public to comment on 

the provisions of this rulemaking. 

The Department considers comments 

by the public on collections of 

information in— 

• Evaluating whether the collections 

of information are necessary for the 

proper performance of the functions of 

the Department, including whether the 

information will have practical utility; 

• Evaluating the accuracy of the 

Department’s estimate of the burden of 

the collections of information, including 

the validity of the methodology and 

assumptions used; 

• Enhancing the quality, usefulness, 

and clarity of the information to be 

collected; and 

• Minimizing the burden of the 

collections of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology, 

e.g., permitting electronic submission of 

responses. The collections of 

information contained in 38 CFR 81.25, 

81.75, and 81.95 are described 

immediately following this paragraph, 

under their respective titles. 

Title: Application for the Legal 

Services for Veterans—Legal Assistance 

for Access to VA Programs (LSV–A) 

Grant Program. 

OMB Control No: 2900–xxxx (New/ 

TBD). 

CFR Provision: 38 CFR 81.25. 

• Summary of collection of 

information: The new collection of 

information in 38 CFR 81.25 contains 

application provisions for the LSV–A 

Grant Program. 

• Description of need for information 

and proposed use of information: This 

information is needed to award legal 

assistance grants to eligible entities. 

• Description of likely respondents: 

Nonprofit private and public legal 

service entities applying for grants. 

• Estimated number of respondents 

per year: 100. 

• Estimated frequency of responses: 

Once annually. 

• Estimated average burden per 

response: 1,440 minutes. 

• Estimated total annual reporting 

and recordkeeping burden: 2,400 hours. 

• Estimated cost to respondents per 

year: Using VA’s average annual number 

of respondents, VA estimates the 

application information collection 

burden cost to respondents as 

$137,112.00 per year * (2,400 burden 

hours × $57.13 per hour). 

Title: Renewal Application for the 

Legal Services for Veterans—Assistance 

with Access to VA Programs (LSV–A) 

Grant Program. 

OMB Control No: 2900–xxxx (New/ 

TBD). 

CFR Provision: 38 CFR 81.25. 

• Summary of collection of 

information: The new collection of 

information in 38 CFR 81.25 requires 

grantees who want to renew their LSV– 

A grant to file a renewal application. 


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• Description of need for information 

and proposed use of information: VA 

needs this information to renew legal 

assistance grants previously awarded. 

• Description of likely respondents: 

Grant program grantees seeking a 

renewal of funds. 

• Estimated number of respondents: 

85. 

• Estimated frequency of responses: 

Once annually. 

• Estimated average burden per 

response: 1,200 minutes. 

• Estimated total annual reporting 

and recordkeeping burden: 1,700 hours. 

• Estimated cost to respondents per 

year: Using VA’s average annual number 

of respondents, VA estimates the 

renewal application information 

collection burden cost to respondents as 

$97,121.00 per year * (1,700 burden 

hours × $57.13 per hour). 

Title: Budget Changes and Corrective 

Action Plan (CAP) for the Legal Services 

for Veterans—Legal Assistance for 

Access to VA Programs (LSV–A) Grant 

Program. 

OMB Control No: 2900–xxxx (New/ 

TBD). 

CFR Provision: 38 CFR 81.75. 

• Summary of collection of 

information: The new collection of 

information in 38 CFR 81.75 would 

require grantees to inform VA of 

changes to their approved program 

through an amendment process. 

• Description of need for information 

and proposed use of information: This 

information is needed for a grantee to 

inform VA of significant changes that 

will alter a grant program approved by 

VA. In addition, VA may require 

grantees to initiate, develop, and submit 

to VA for approval corrective action 

plans (CAPs) if actual legal assistance 

grant expenditures vary from the 

amount disbursed to a grantee for that 

same quarter or actual legal assistance 

grant activities vary from the grantee’s 

program description provided in the 

LSV–A grant agreement. 

• Description of likely respondents: 

Grantees who desire to modify their 

approved grant program. 

• Estimated number of respondents: 

10. 

• Estimated frequency of responses: 

Once annually. 

• Estimated average burden per 

response: 120 minutes. 

• Estimated total annual reporting 

and recordkeeping burden: 20 hours. 

• Estimated cost to respondents per 

year: Using VA’s average annual number 

of respondents, VA estimates the total 

CAP information collection burden cost 

to respondents as $1,142.60 per year * 

(20 burden hours × $57.13 per hour). 

Title: Quarterly Performance 

Reporting Requirements for the Legal 

Services for Veterans—Legal Assistance 

for Access to VA Programs (LSV–A) 

Grant Program. 

OMB Control No: 2900–xxxx (New/ 

TBD). 

CFR Provision: 38 CFR 81.95. 

• Summary of collection of 

information: The new collection of 

information in 38 CFR 81.95 would 

require the grantee to submit reports 

pertaining to operational effectiveness 

and other applicable LSV–A grant 

agreement requirements. 

• Description of need for information 

and proposed use of information: VA 

will use this information to determine 

grantee program effectiveness and 

compliance with the requirements for 

the LSV–A Grant Program. 

• Description of likely respondents: 

Program grantees for the current grant 

award year. 

• Estimated number of respondents: 

85. 

• Estimated frequency of responses: 

Quarterly = 4 times per year. 

• Estimated average burden per 

response: 60 minutes. 

• Estimated total annual reporting 

and recordkeeping burden: 340 hours. 

• Estimated cost to respondents per 

year: Using VA’s average annual number 

of respondents, VA estimates the total 

performance report information 

collection burden cost to respondents as 

$19,424.20 per year * (340 burden hours 

for respondents × $57.13 per hour). 

Title: Bi-Annual Finance Reporting 

Requirements for the Legal Services for 

Veterans—Legal Assistance for Access 

to VA Programs (LSV–A) Grant Program. 

OMB Control No: 2900–xxxx (New/ 

TBD). 

CFR Provision: 38 CFR 81.95. 

• Summary of collection of 

information: The new collection of 

information in 38 CFR 81.95 would 

require the grantee to submit reports 

pertaining to cost effectiveness, fiscal 

responsibility, and other applicable 

LSV–A grant agreement requirements. 

• Description of need for information 

and proposed use of information: VA 

will use this information to determine 

grantee program effectiveness and 

compliance with the requirements for 

the LSV–A Grant Program. 

• Description of likely respondents: 

Program grantees for the current grant 

award year. 

• Estimated number of respondents: 

85. 

• Estimated frequency of responses: 

Bi-annually = 2 times per year. 

• Estimated average burden per 

response: 60 minutes. 

• Estimated total annual reporting 

and recordkeeping burden: 170 hours. 

• Estimated cost to respondents per 

year: Using VA’s average annual number 

of respondents, VA estimates the total 

finance report information collection 

burden cost to respondents as $9,712.10 

per year * (170 burden hours for 

respondents × $57.13 per hour). 

* The total burden cost to respondents 

for the information collections 

associated with the LSV–A Grant 

Program regulation is estimated to be 

$264,511.90. 

Assistance Listing 

The Assistance Listing number and 

title for the program affected by this 

document is 64.056, Legal Services for 

Veterans Grants. 

List of Subjects in 38 CFR Part 81 

Administrative practice and 

procedure; Armed Forces; Armed Forces 

Reserves; Disability benefits; Grant 

programs—health; Grant programs— 

law; Grant programs—social programs; 

Grant programs—veterans; Grants 

administration; Health care; Lawyers; 

Legal services; Military law; Military 

personnel; Nonprofit organizations; 

Public assistance programs; Reporting 

and recordkeeping requirements; 

Veterans. 

Signing Authority 

Denis McDonough, Secretary of 

Veterans Affairs, approved and signed 

this document on September 27, 2024, 

and authorized the undersigned to sign 

and submit the document to the Office 

of the Federal Register for publication 

electronically as an official document of 

the Department of Veterans Affairs. 

Luvenia Potts, 

Regulation Development Coordinator, Office 

of Regulation Policy & Management, Office 

of General Counsel, Department of Veterans 

Affairs. 

For the reasons stated in the 

preamble, the Department of Veterans 

Affairs proposes to amend 38 CFR 

chapter I to add part 81 to read as 

follows: 

PART 81—LEGAL SERVICES FOR 

VETERANS—LEGAL ASSISTANCE 

FOR ACCESS TO VA PROGRAMS 

GRANT PROGRAM 

Sec. 

81.0 Purpose and scope. 

81.5 Definitions. 

81.10 Eligible entities. 

81.15 Eligible individuals. 

81.20 Legal assistance. 

81.25 Applications for legal assistance 

grants. 

81.30 Threshold requirements prior to 

scoring legal assistance grant applicants. 

81.35 Scoring criteria for legal assistance 

grant applicants. 


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81.40 Selection of grantees. 

81.45 Scoring criteria for grantees applying 

for renewal of legal assistance grants. 

81.50 Selection of grantees for renewal of 

legal assistance grants. 

81.55 General operation requirements. 

81.60 Fee prohibition. 

81.65 Notice of Funding Opportunity 

(NOFO). 

81.70 Legal assistance grant agreements. 

81.75 Program or budget changes and 

corrective action plans. 

81.80 Faith-based organizations. 

81.85 Visits to monitor operations and 

compliance. 

81.90 Financial management and 

administrative costs. 

81.95 Grantee reporting requirements. 

81.100 Recordkeeping. 

81.105 Technical assistance. 

81.110 Withholding, suspension, 

deobligation, termination, and recovery 

of funds by VA. 

81.115 Legal assistance grant closeout 

procedures. 

Authority: 38 U.S.C. 501, Section 548(b) 

of Pub. L. 116–283, and as noted in specific 

sections. 

§ 81.0 Purpose and scope. 

(a) Purpose. This part implements the 

Legal Services for Veterans—Legal 

Assistance for Access to VA Programs 

Grant Program to award grants to 

eligible entities to establish new legal 

assistance clinics or enhance existing 

legal assistance clinics or other pro bono 

efforts providing legal assistance to 

eligible individuals. 

(b) Scope. This part applies only to 

the provision of legal assistance in 

locations other than VA facilities. 

§ 81.5 Definitions. 

For purposes of this part and any 

Notice of Funding Opportunity (NOFO) 

issued under this part: 

Applicant means an entity meeting 

the eligibility criteria of § 81.10 that 

submits an application for a legal 

assistance grant announced in a NOFO 

under this part. 

Armed Forces has the meaning given 

to that term in 38 U.S.C. 101(10). 

Grantee means an eligible entity that 

is awarded a legal assistance grant 

under this part. 

Legal assistance clinic means an 

entity or program whose primary 

purpose is to provide legal assistance to 

individuals on a pro bono basis. 

Legal assistance grant means a grant 

awarded under this part. 

Nonprofit entity means an entity that 

meets the requirements of 26 U.S.C. 

501(c)(3), (6), or (19). 

Notice of Funding Opportunity 

(NOFO) has the meaning given to this 

term in 2 CFR 200.1, or successor 

regulations. 

Participant means an individual 

meeting the eligibility criteria of § 81.15 

who receives legal assistance from a 

grantee under this part. 

Reserve component has the meaning 

given to that term in 10 U.S.C. 10101. 

State means any of the several States 

of the United States, the District of 

Columbia, the Commonwealth of Puerto 

Rico, any territory or possession of the 

United States, or any agency or 

instrumentality of a State exclusive of 

local governments. 

Subcontractor means any third-party 

contractor, of any tier, performing work 

directly for an eligible entity. 

Suspension means an action by VA 

that temporarily withdraws VA funding 

under a legal assistance grant, pending 

corrective action by the grantee or 

pending a decision by VA to terminate 

the legal assistance grant. Suspension of 

a legal assistance grant is a separate 

action from suspension under VA 

regulations or guidance implementing 

Executive Orders 12549 and 12689, 

‘‘Debarment and Suspension.’’ 

Withholding means that payment 

under a legal assistance grant will not be 

made until such time as VA determines 

that the grantee provides sufficiently 

adequate documentation and/or actions 

to correct a deficiency for the legal 

assistance grant. 

§ 81.10 Eligible entities. 

To be an eligible entity under this 

part, the entity must be a nonprofit or 

public entity that meets the following 

requirements. 

(a) A nonprofit entity must be: 

(1) A veterans service organization 

that is specifically focused on assisting 

veterans and recognized by the 

Secretary in accordance with 38 U.S.C. 

5902; 

(2) An organization that is specifically 

focused on assisting veterans but is not 

a veterans service organization under 

paragraph (a)(1); 

(3) An entity associated with a law 

school accredited by the American Bar 

Association and specifically focused on 

assisting veterans; 

(4) A legal services organization; or 

(5) A bar association. 

(b) A public entity must be: 

(1) A local government, which is a 

county, municipality, city, town, 

township, local public authority 

(including any public and Indian 

housing agency under the United States 

Housing Act of 1937), school district, 

special district, intrastate district, 

council of governments (whether or not 

incorporated as a nonprofit corporation 

under state law), any other regional or 

interstate government entity, or any 

agency or instrumentality of a local 

government; 

(2) A State government; or 

(3) A federally recognized Indian 

tribal government, which is the 

governing body or a governmental 

agency of any Indian tribe, band, nation, 

or other organized group or community 

(including any Native village as defined 

in section 3 of the Alaska Native Claims 

Settlement Act, 85 Stat 688) certified by 

the Secretary of the Interior as eligible 

for the special programs and services 

provided by the Bureau of Indian 

Affairs. 

§ 81.15 Eligible individuals. 

To be eligible for legal assistance 

under § 81.20, an individual must: 

(a) Have served in the Armed Forces, 

including individuals who served in a 

reserve component of the Armed Forces; 

and 

(b) Have been discharged or released 

therefrom, regardless of the conditions 

of such discharge or release. For the 

purpose of determining eligibility, 

‘‘discharged or released’’ refers to the 

official termination of service in the 

component of the Armed Forces in 

which the individual served. 

§ 81.20 Legal assistance. 

Legal assistance provided under this 

Grant Program is limited to the 

following: 

(a) Legal assistance with any VA 

program administered by the Secretary. 

Note to paragraph (a): A grantee must 

be accredited consistent with §§ 14.626 

through 14.637 before acting as an agent 

or attorney in the preparation, 

presentation, or prosecution of any 

claim under laws administered by VA. 

(b) Legal assistance associated with: 

(1) Improving the status of a military 

discharge or characterization of service 

in the Armed Forces, including through 

a discharge review board; or 

(2) Seeking a review of a military 

record before a board of correction for 

military or naval records. 

§ 81.25 Applications for legal assistance 

grants. 

(a) To apply for a legal assistance 

grant, an applicant must submit to VA 

a complete legal assistance grant 

application package, as described in the 

NOFO. A complete legal assistance 

grant application package includes the 

following: 

(1) Documentation that demonstrates 

the applicant is an eligible entity under 

§ 81.10; 

(2) A description of the capacity of the 

applicant, and any identified 

subcontractors, to provide legal 

assistance to eligible individuals; 

(3) A description of the legal 

assistance to be provided by the 

applicant and the identified need for 


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such legal assistance among eligible 

individuals; 

(4) Documentation that demonstrates 

the applicant’s need for financial 

assistance from a legal assistance grant; 

(5) A description of the geographic 

area or community served by the 

applicant; 

(6) A description of the physical 

location where the applicant will 

provide legal assistance to eligible 

individuals, if applicable; 

(7) A description of how the applicant 

will ensure that legal assistance is 

provided to eligible individuals; 

(8) A description of the characteristics 

of eligible individuals who will receive 

legal assistance provided by the 

applicant; 

(9) An estimate with supporting 

documentation of the number of eligible 

individuals who will receive legal 

assistance provided by the applicant; 

(10) Documentation relating to the 

applicant’s ability to maintain 

appropriate levels of qualified staff and 

coordinate with any identified 

subcontractors; 

(11) Documentation relating to the 

applicant’s capacity to effectively 

administer a grant under this section 

that describes the applicant’s: 

(i) Accounting practices and financial 

controls; 

(ii) Capacity for data collection and 

reporting required under this part; and 

(iii) Experience administering other 

Federal, State, or county grants similar 

to the Grant Program under this part. 

(12) Documentation of the managerial 

capacity of the applicant to: 

(i) Coordinate the provision of legal 

assistance by the applicant or by other 

organizations on a referral basis; 

(ii) Assess continuously the needs of 

participants for legal assistance; 

(iii) Coordinate the provision of legal 

assistance with services provided by 

VA; 

(iv) Customize legal assistance to the 

needs of eligible individuals; and 

(v) Comply with and implement the 

requirements of this part throughout the 

term of the legal assistance grant; 

(13) Documentation that demonstrates 

that adequate financial support will be 

available to carry out the legal 

assistance for which the grant is sought 

consistent with the application; and 

(14) Any additional information as 

deemed appropriate by VA and listed in 

the NOFO. 

(b) Subject to funding availability, 

grantees may submit an application for 

renewal of a legal assistance grant if the 

grantee’s program will remain 

substantially the same. To apply for 

renewal of a legal assistance grant, a 

grantee must submit to VA a complete 

legal assistance grant renewal 

application package, as described in the 

NOFO. 

(c) VA may request in writing that an 

applicant or grantee, as applicable, 

submit other information or 

documentation relevant to the legal 

assistance grant application. 

(The Office of Management and Budget 

has approved the information collection 

provisions in this section under control 

number 2900–XXXX.) 

§ 81.30 Threshold requirements prior to 

scoring legal assistance grant applicants. 

VA will only score applicants who 

meet the following threshold 

requirements: 

(a) The application demonstrates that 

the entity is eligible to receive a legal 

assistance grant under § 81.10; 

(b) The application is filed within the 

time period established in the NOFO, 

and any additional information or 

documentation requested by VA under 

§ 81.25(c) is provided within the time 

frame established by VA; 

(c) The application is completed in all 

parts; 

(d) The activities for which the legal 

assistance grant is requested are eligible 

for funding under this part; 

(e) The applicant’s prospective 

participants are eligible to receive legal 

assistance under this part; 

(f) The applicant agrees to comply 

with the requirements of this part; 

(g) The applicant does not have an 

outstanding obligation to the Federal 

government that is in arrears and does 

not have an overdue or unsatisfactory 

response to an audit; and 

(h) The applicant is not in default by 

failing to meet the requirements for any 

previous Federal assistance. 

§ 81.35 Scoring criteria for legal 

assistance grant applicants. 

VA will score applicants who apply 

for a legal assistance grant. VA will set 

forth specific point values to be 

awarded for each criterion in the NOFO. 

VA will use the following criteria to 

score these applicants: 

(a) VA will award points based on the 

background, qualifications, experience, 

and past performance of the applicant, 

and any subcontractors identified by the 

applicant in the legal assistance grant 

application, as demonstrated by the 

following: 

(1) Background and organizational 

history. 

(i) Applicant’s, and any identified 

subcontractors’, background and 

organizational history relevant to 

providing legal assistance. 

(ii) Applicant, and any identified 

subcontractors, maintain organizational 

structures with clear lines of reporting 

and defined responsibilities. 

(iii) Applicant, and any identified 

subcontractors, have a history of 

complying with agreements and not 

defaulting on financial obligations. 

(2) Organization and staff 

qualifications. 

(i) Applicant, and any identified 

subcontractors, have experience 

working with individuals who meet the 

eligible individual criteria in § 81.15. 

(ii) Applicant, and any identified 

subcontractors, have experience 

providing legal assistance to individuals 

who meet the eligible individual criteria 

in § 81.15. 

(iii) Applicant’s staff, and any 

identified subcontractors’ staff, are 

qualified to provide legal assistance, 

and as applicable, are in good standing 

as a member of the applicable State bar. 

In the case of an entity associated with 

a law school, applicant maintains 

appropriate staff to meet applicable 

standards for supervising law students 

authorized to practice within the 

jurisdiction. 

(iv) Applicant’s staff, and any 

identified subcontractors’ staff, have 

experience administering programs 

similar to the Grant Program under this 

part. 

(b) VA will award points based on the 

applicant’s program concept and legal 

assistance plan, as demonstrated by the 

following: 

(1) Need for the program. 

(i) Applicant has shown a need 

amongst eligible individuals in the area 

or community where the program will 

be based. 

(ii) Applicant demonstrates an 

understanding of the legal assistance 

needs unique to eligible individuals in 

the area or community where the 

program will be based. 

(iii) Applicant has shown a need for 

financial assistance from a legal 

assistance grant in order to serve eligible 

individuals. 

(2) Outreach and screening plan. 

(i) Applicant has a feasible outreach 

and referral plan to identify and assist 

eligible individuals in need of legal 

assistance. 

(ii) Applicant has a plan to process 

and receive legal assistance referrals for 

eligible individuals. 

(iii) Applicant has a plan to assess 

and accommodate the needs of referred 

eligible individuals. 

(3) Program concept. 

(i) Applicant’s program concept, size, 

scope, and staffing plan are feasible. 

(ii) Applicant’s program is designed to 

meet the legal needs of eligible 

individuals. 

(4) Program implementation timeline. 


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(i) Applicant’s program will be 

implemented in a timely manner and 

legal assistance will be delivered to 

eligible individuals as quickly as 

possible and within a specified 

timeline. 

(ii) Applicant has a feasible hiring 

plan in place to meet the applicant’s 

program timeline or has existing staff to 

meet such timeline. 

(5) Collaboration and communication 

with VA. Applicant has a feasible plan 

to coordinate services with local VA 

facilities. 

(6) Ability to meet Grant Program 

expectations. Applicant demonstrates 

commitment to ensuring that its 

program meets VA’s requirements, 

goals, and objectives for the Grant 

Program as identified in the NOFO. 

(7) Capacity to undertake program. 

Applicant has sufficient capacity, 

including staff resources, to undertake 

the program. 

(c) VA will award points based on the 

applicant’s quality assurance and 

evaluation plan, as demonstrated by the 

following: 

(1) Program evaluation. Applicant has 

created clear, realistic, and measurable 

metrics that align with the Grant 

Program’s aim of addressing the legal 

needs of eligible individuals and 

through which the applicant’s program 

performance can be continually 

evaluated. 

(2) Monitoring. 

(i) Applicant has adequate controls in 

place to regularly monitor the program, 

including any subcontractors, for 

compliance with all applicable laws, 

regulations, and guidelines. 

(ii) Applicant has adequate financial 

and operational controls in place to 

ensure the proper use of legal assistance 

grant funds. 

(iii) Applicant has a feasible plan for 

ensuring that the applicant’s staff and 

any subcontractors are appropriately 

trained and comply with the 

requirements of this part. 

(3) Remediation. Applicant has an 

appropriate plan to establish a system 

for remediating noncompliant aspects of 

the program if and when they are 

identified. 

(4) Management and reporting. 

Applicant’s program management team 

has the capability and a system in place 

to provide to VA timely and accurate 

reports at the frequency set by VA. 

(d) VA will award points based on the 

applicant’s financial capability and 

plan, as demonstrated by the following: 

(1) Organizational finances. 

Applicant, and any identified 

subcontractors, are financially stable. 

(2) Financial feasibility of the 

program. 

(i) Applicant has a realistic plan for 

obtaining all funding required to operate 

the program for the period of the legal 

assistance grant. 

(ii) Applicant’s program is costeffective and can be effectively 

implemented on-budget. 

(e) VA will award points based on the 

applicant’s area or community linkages 

and relations, as demonstrated by the 

following: 

(1) Area or community linkages. 

Applicant has a plan for developing or 

relying on existing linkages with 

Federal (including VA), State, local, and 

tribal governments, agencies, and 

private entities for the purpose of 

providing additional legal assistance to 

eligible individuals. 

(2) Past working relationships. 

Applicant (or applicant’s staff), and any 

identified subcontractors (or 

subcontractors’ staff), have fostered 

successful working relationships and 

linkages with public and private 

organizations providing legal and nonlegal supportive services to eligible 

individuals. 

(3) Local presence and knowledge. 

(i) Applicant has a presence in the 

area or community to be served by the 

applicant. 

(ii) Applicant understands the 

dynamics of the area or community to 

be served by the applicant. 

(4) Integration of linkages and 

program concept. Applicant’s linkages 

to the area or community to be served 

by the applicant enhance the 

effectiveness of the applicant’s program. 

§ 81.40 Selection of grantees. 

VA will use the following process to 

select applicants to receive legal 

assistance grants: 

(a) VA will score all applicants that 

meet the threshold requirements set 

forth in § 81.30 using the scoring criteria 

set forth in § 81.35. 

(b) VA will group applicants within 

the applicable funding priorities if 

funding priorities are set forth in the 

NOFO. 

(c) VA will rank those applicants who 

receive at least the minimum amount of 

total points and points per category set 

forth in the NOFO, within their 

respective funding priority group, if 

any. The applicants will be ranked in 

order from highest to lowest scores, 

within their respective funding priority 

group, if any. 

(d) VA will use the applicant’s 

ranking as the primary basis for 

selection for funding. However, VA will 

ensure that legal assistance grants are 

distributed to at least one eligible entity 

in each State, if VA determines that 

there is such an entity in a State that has 

applied for a legal assistance grant and 

meets the requirements set forth in 

§ 81.30. 

(e) Subject to paragraph (d) of this 

section, VA will fund the highestranked applicants for which funding is 

available, within the highest funding 

priority group, if any. If funding 

priorities have been established, to the 

extent funding is available and subject 

to paragraph (d) of this section, VA will 

select applicants in the next highest 

funding priority group based on their 

rank within that group. 

(f) If an applicant would have been 

selected but for a procedural error 

committed by VA, VA may select that 

applicant for funding when sufficient 

funds become available if there is no 

material change in the information that 

would have resulted in the applicant’s 

selection. A new application will not be 

required for this purpose. 

§ 81.45 Scoring criteria for grantees 

applying for renewal of legal assistance 

grants. 

VA will score grantees who are 

applying for a renewal of a legal 

assistance grant. VA will set forth the 

specific point values to be awarded for 

each criterion in the NOFO. VA will use 

the following criteria to score grantees 

applying for renewal of a legal 

assistance grant: 

(a) VA will award points based on the 

success of the grantee’s program, as 

demonstrated by the following: 

(1) Participants were satisfied with 

the legal assistance provided by the 

grantee. 

(2) The grantee delivered legal 

assistance to participants in a timely 

manner. 

(3) The grantee implemented the 

program by developing and sustaining 

relationships with community partners 

to refer eligible individuals in need of 

legal assistance. 

(4) The grantee was effective in 

conducting outreach to eligible 

individuals and increased engagement 

of participants seeking legal assistance 

provided by the grantee. 

(b) VA will award points based on the 

cost effectiveness of the grantee’s 

program, as demonstrated by the 

following: 

(1) The cost per participant was 

reasonable. 

(2) The grantee’s program was 

effectively implemented within budget. 

(c) VA will award points based on the 

extent to which the grantee’s program 

complied with the Grant Program’s 

goals and requirements, as 

demonstrated by the following: 

(1) The grantee’s program was 

administered in accordance with VA’s 


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goals for the Grant Program as described 

in the NOFO. 

(2) The grantee’s program was 

administered in accordance with all 

applicable laws, regulations, and 

guidelines. 

(3) The grantee’s program was 

administered in accordance with the 

grantee’s legal assistance grant 

agreement. 

(d) The continued need of the 

grantee’s program for financial 

assistance from the legal assistance 

grant in order to serve eligible 

individuals. 

§ 81.50 Selection of grantees for renewal 

of legal assistance grants. 

VA will use the following process to 

select grantees applying for renewal of 

legal assistance grants: 

(a) So long as the grantee continues to 

meet the threshold requirements set 

forth in § 81.30, VA will score the 

grantee using the scoring criteria set 

forth in § 81.45. 

(b) VA will rank those grantees who 

receive at least the minimum amount of 

total points and points per category set 

forth in the NOFO. The grantees will be 

ranked in order from highest to lowest 

scores. 

(c) VA will use the grantee’s ranking 

as the basis for selection for funding. VA 

will fund the highest-ranked grantees 

for which funding is available. 

(d) At its discretion, VA may award 

any deobligated funds to an applicant or 

existing grantee. If VA chooses to award 

deobligated funds to an applicant or 

existing grantee, funds will be awarded 

as follows: 

(1) VA may first offer to award the 

deobligated funds to the applicant or 

grantee with the highest grant score 

under the relevant NOFO that applies 

for, or is awarded a renewal grant in, the 

same community as, or a proximate 

community to, the affected community. 

Such applicant or grantee must have the 

capacity and agree to provide prompt 

services to the affected community. For 

the purposes of this section, the relevant 

NOFO is the most recently published 

NOFO which covers the geographic area 

that includes the affected community, or 

for multi-year grant awards, the NOFO 

for which the grantee, who is offered the 

additional funds, received the multiyear award. 

(2) If the first such applicant or 

grantee offered the deobligated funds 

refuses the funds, VA may offer to 

award the funds to the next highestranked applicant or grantee, per the 

criteria in paragraph (d)(1) of this 

section, and continue on in rank order 

until the deobligated funds are awarded. 

(3) VA, at its discretion, may choose 

to award the deobligated funds under 

other conditions, or may choose to not 

award the deobligated funds at all, 

when VA determines appropriate based 

on consideration of other relevant 

factors. 

(e) If a grantee would have been 

selected but for a procedural error 

committed by VA, VA may select that 

grantee for funding when sufficient 

funds become available if there is no 

material change in the information that 

would have resulted in the grantee’s 

selection. A new application will not be 

required for this purpose. 

§ 81.55 General operation requirements. 

(a) Eligibility documentation. 

(1) Prior to providing legal assistance, 

grantees must verify and document an 

individual’s eligibility for legal 

assistance using the criteria set forth in 

§ 81.15. 

(2) Once the grantee initiates legal 

assistance, the grantee will continue to 

provide legal assistance to the 

participant so long as the individual 

continues meet the eligibility criteria set 

forth in § 81.15. 

(3) If a grantee finds that a participant 

is ineligible to receive legal assistance 

under this part, or the grantee is unable 

to meet the legal needs of that 

participant, the grantee must provide 

information on other available programs 

and resources or provide a referral to 

another legal services organization that 

is able to meet the participant’s need. 

(b) Legal assistance documentation. 

For each participant who receives legal 

assistance from the grantee, the grantee 

must document the legal assistance 

provided, how such assistance was 

provided, the duration of the assistance 

provided, goals for the provision of such 

assistance, and measurable outcomes of 

the legal assistance provided as 

determined by VA, such as whether the 

participant’s legal issue was resolved. 

(c) Confidentiality. Grantees must 

maintain the confidentiality of records 

kept in connection to legal assistance 

provided to participants. Grantees that 

provide legal assistance must establish 

and implement procedures to ensure the 

confidentiality of: 

(1) Records pertaining to any 

participant, and 

(2) The address or location where 

legal assistance is provided. 

Such confidentiality must be consistent 

with the grantee’s State bar rules on 

confidentiality in an attorney-client 

relationship. 

(d) Notifications to participants. Prior 

to initially providing legal assistance to 

a participant, the grantee must notify 

each participant of the following: 

(1) The legal assistance is being paid 

for, in whole or in part, by VA; 

(2) The specific legal assistance 

available to the participant through the 

grantee’s program; and 

(3) Any conditions or restrictions on 

the receipt of legal assistance by the 

participant. 

(e) Assessment of funds. Grantees 

must regularly assess how legal 

assistance grant funds can be used in 

conjunction with other available funds 

and services to ensure continuity of 

program operations and to assist 

participants. 

(f) Administration of legal assistance 

grants. Grantees must ensure that legal 

assistance grants are administered in 

accordance with the requirements of 

this part, the legal assistance grant 

agreement, and other applicable 

Federal, State, and local laws and 

regulations. Grantees are responsible for 

ensuring that any subcontractors carry 

out activities in compliance with this 

part. 

§ 81.60 Fee prohibition. 

Grantees must not charge a fee to 

participants for providing legal 

assistance that is funded with amounts 

from a legal assistance grant under this 

part. Grantees may not recover fees 

otherwise authorized under 38 CFR 

14.636. 

§ 81.65 Notice of Funding Opportunity 

(NOFO). 

When funds are available for legal 

assistance grants, VA will publish a 

NOFO on Grants.gov. The NOFO will 

identify: 

(a) The location for obtaining legal 

assistance grant applications; 

(b) The date, time, and place for 

submitting completed legal assistance 

grant applications; 

(c) The estimated amount and type of 

legal assistance grant funding available, 

including the maximum grant funding 

available per award; 

(d) The length of term for the legal 

assistance grant award; 

(e) Specific point values to be 

awarded for each criterion listed in 

§§ 81.35 and 81.45; 

(f) The minimum number of total 

points and points per category that an 

applicant or grantee, as applicable, must 

receive for a legal assistance grant to be 

funded; 

(g) Any maximum uses of legal 

assistance grant funds for specific legal 

assistance; 

(h) The timeframes and manner for 

payments under the legal assistance 

grant; and 

(i) Other information necessary for the 

legal assistance grant application 


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process as determined by VA, including 

the requirements, goals, and objectives 

of the Grant Program. 

§ 81.70 Legal assistance grant 

agreements. 

(a) After an applicant is selected for 

a legal assistance grant in accordance 

with § 81.40, VA will draft a legal 

assistance grant agreement to be 

executed by VA and the applicant. 

Upon execution of the legal assistance 

grant agreement, VA will obligate legal 

assistance grant funds to cover the 

amount of the approved legal assistance 

grant, subject to the availability of 

funding. The legal assistance grant 

agreement will provide that the grantee 

agrees, and will ensure that each 

subcontractor agrees, to: 

(1) Operate the program in accordance 

with the provisions of this part and the 

applicant’s legal assistance grant 

application; 

(2) Comply with such other terms and 

conditions, including recordkeeping 

and reports for program monitoring and 

evaluation purposes, as VA may 

establish for purposes of carrying out 

the Grant Program, in an effective and 

efficient manner; and 

(3) Provide such additional 

information as deemed appropriate by 

VA. 

(b) After a grantee is selected for 

renewal of a legal assistance grant in 

accordance with § 81.50, VA will draft 

a legal assistance grant agreement to be 

executed by VA and the grantee. Upon 

execution of the legal assistance grant 

agreement, VA will obligate legal 

assistance grant funds to cover the 

amount of the approved legal assistance 

grant, subject to the availability of 

funding. The legal assistance grant 

agreement will contain the same 

provisions described in paragraph (a) of 

this section. 

(c) No funds provided under this part 

may be used to replace Federal, State, 

tribal, or local funds previously used, or 

designated for use, to assist eligible 

individuals. 

§ 81.75 Program or budget changes and 

corrective action plans. 

(a) Change in legal assistance grant 

agreement. A grantee must submit to VA 

a written request to modify a legal 

assistance grant for any proposed 

significant change that will alter its legal 

assistance program. If VA approves such 

change, VA will issue a written 

amendment to the legal assistance grant 

agreement. A grantee must receive VA’s 

approval prior to implementing a 

significant change. 

(1) Significant changes include, but 

are not limited to: 

(i) A change in the grantee or any 

subcontractors identified in the legal 

assistance grant agreement; 

(ii) A change in the area or 

community served by the grantee; 

(iii) Additions or deletions of legal 

assistance provided by the grantee; and 

(iv) A change in category of eligible 

individuals to be served; and a change 

in budget line items that are more than 

10 percent of the total legal assistance 

grant award. 

(2) VA’s approval of changes is 

contingent upon the grantee’s amended 

application retaining a sufficient rank to 

have been competitively selected for 

funding in the year that the application 

was granted. 

(3) Each legal assistance grant 

modification request must contain a 

description of, and justification for, the 

revised proposed use of legal assistance 

grant funds. 

(b) Corrective action plan. VA may 

require that the grantee initiate, 

develop, and submit to VA for approval 

a corrective action plan (CAP) if, on a 

quarterly basis, actual legal assistance 

grant expenditures vary from the 

amount disbursed to a grantee for that 

same quarter or actual legal assistance 

grant activities vary from the grantee’s 

program description provided in the 

legal assistance grant agreement. 

(1) The CAP must identify the 

expenditure or activity source that has 

caused the deviation, describe the 

reason(s) for the variance, provide 

specific proposed corrective action(s), 

and provide a timetable for 

accomplishment of the corrective 

action. 

(2) After receipt of the CAP, VA will 

send a letter to the grantee indicating 

that the CAP is approved or 

disapproved. If disapproved, VA will 

make beneficial suggestions to improve 

the proposed CAP and request 

resubmission or take other actions in 

accordance with this part. 

(c) Grantees must inform VA in 

writing of any key personnel changes 

(e.g., new executive director, grant 

program director, or chief financial 

officer) and grantee address changes 

within 30 days of the change. 

(The Office of Management and Budget 

has approved the information collection 

provisions in this section under control 

number 2900–XXXX.) 

§ 81.80 Faith-based organizations. 

Organizations that are faith-based are 

eligible, on the same basis as any other 

organization, to participate in the Grant 

Program under this part in accordance 

with 38 CFR part 50. 

§ 81.85 Visits to monitor operations and 

compliance. 

(a) VA has the right, at all reasonable 

times, to make visits to all grantee 

locations where a grantee is using legal 

assistance grant funds in order to review 

grantee accomplishments and 

management control systems and to 

provide such technical assistance as 

may be required. VA may conduct 

inspections of all program locations and 

records of a grantee at such times as are 

deemed necessary to determine 

compliance with the provisions of this 

part. If a grantee delivers services in a 

participant’s home, or at a location away 

from the grantee’s place of business, VA 

may accompany the grantee. If the 

grantee’s visit is to the participant’s 

home, VA will only accompany the 

grantee with the consent of the 

participant. If any visit is made by VA 

on the premises of the grantee or a 

subcontractor under the legal assistance 

grant, the grantee must provide, and 

must require its subcontractors to 

provide, all reasonable facilities and 

assistance for the safety and 

convenience of the VA representatives 

in the performance of their duties. All 

visits and evaluations will be performed 

in such a manner as will not unduly 

delay services. 

(b) The authority to inspect carries 

with it no authority over the 

management or control of any applicant 

or grantee under this part. 

§ 81.90 Financial management and 

administrative costs. 

(a) Grantees must comply with 

applicable requirements of the Uniform 

Administrative Requirements, Cost 

Principles, and Audit Requirements for 

Federal Awards under 2 CFR part 200. 

(b) Grantees must use a financial 

management system that provides 

adequate fiscal control and accounting 

records and meets the requirements set 

forth in 2 CFR part 200. 

(c) Payment up to the amount 

specified in the legal assistance grant 

must be made only for allowable, 

allocable, and reasonable costs in 

conducting the work under the legal 

assistance grant. The determination of 

allowable costs must be made in 

accordance with the applicable Federal 

cost principles set forth in 2 CFR part 

200. 

(d) In accordance with 2 CFR 200.414, 

or successor regulations, grantees may, 

in regard to indirect costs: 

(i) Apply the negotiated indirect cost 

rate established with their Federal 

cognizant agency; 

(ii) Apply a de minimis rate, as 

described in 2 CFR 200.414(f), or 


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successor regulations, if they do not 

have a negotiated indirect cost rate; or 

(iii) Request to negotiate an indirect 

cost rate with VA or their Federal 

cognizant agency. 

§ 81.95 Grantee reporting requirements. 

(a) VA may require grantees to 

provide, in such form as may be 

prescribed, such reports or answers in 

writing to specific questions, surveys, or 

questionnaires as VA determines 

necessary to carry out the Grant 

Program. 

(b) At least once per year, or at the 

frequency set by VA, each grantee must 

submit to VA a report containing 

information relating to operational 

effectiveness; fiscal responsibility; legal 

assistance grant agreement compliance; 

and legal and regulatory compliance. 

This report must include a breakdown 

of how the grantee used the legal 

assistance grant funds; the number of 

participants assisted; information on 

each participant’s gender, age, race, 

service era, branch of service, 

component, and status of military 

discharge or characterization of service; 

a description of the legal assistance 

provided to each participant; and any 

other information that VA requests. 

(c) VA may request additional reports 

or information to allow VA to fully 

assess the provision of legal assistance 

under this part. 

(d) Grantees must relate financial data 

to performance data and develop unit 

cost information whenever practical. 

(e) All pages of the reports must cite 

the assigned legal assistance grant 

number and be submitted in a timely 

manner as set forth in the grant 

agreement. 

(f) Grantees must provide VA with 

consent to post information from reports 

on the internet and use such 

information in other ways deemed 

appropriate by VA. Grantees must 

clearly redact information that is 

confidential based on attorney-client 

privilege, unless that privilege has been 

waived by the client. 

(The Office of Management and Budget 

has approved the information collection 

provisions in this section under control 

number 2900–XXXX.) 

§ 81.100 Recordkeeping. 

Grantees must ensure that records are 

maintained for at least a 3-year period 

(unless a longer period is otherwise 

required) to document compliance with 

this part. Grantees must produce such 

records at VA’s request. 

§ 81.105 Technical assistance. 

VA will provide technical assistance, 

as necessary, to applicants and grantees 

to meet the requirements of this part. 

Such technical assistance will be 

provided either directly by VA or 

through contracts with appropriate 

public or nonprofit private entities. 

§ 81.110 Withholding, suspension, 

deobligation, termination, and recovery of 

funds by VA. 

VA will enforce this part through 

such actions as may be appropriate. 

Appropriate actions include 

withholding, suspension, deobligation, 

termination, recovery of funds by VA, 

and actions in accordance with 2 CFR 

part 200. 

§ 81.115 Legal assistance grant closeout 

procedures. 

Legal assistance grants will be closed 

out in accordance with 2 CFR part 200. 

[FR Doc. 2024–22606 Filed 10–1–24; 8:45 am] 

BILLING CODE 8320–01–P 


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