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[Federal Register Volume 90, Number 11 (Friday, January 17, 2025)]
[Rules and Regulations]
[Pages 5721-5724]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-00984]

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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Part 2522

RIN 3045-AA84

AmeriCorps State and National Updates

AGENCY: Corporation for National and Community Service.

ACTION: Final rule.

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SUMMARY: The Corporation for National and Community Service (operating 
as AmeriCorps) is revising regulations governing the number of terms 
for which AmeriCorps will fund living allowances and other benefits for 
AmeriCorps State and National members. Specifically, this rule 
increases the flexibility of the current rule by providing that 
AmeriCorps funding may be used for living allowances and other benefits 
for members for as long as it takes the members to either earn the 
aggregate value of two full-time Segal Education Awards or four terms, 
whichever is longer.

DATES: This rule is effective January 17, 2025.

FOR FURTHER INFORMATION CONTACT: Jennifer Bastress Tahmasebi, Deputy 
Director, AmeriCorps State and National, at 
[email protected], (202) 606-6667; or Elizabeth Appel, 
Associate General Counsel, at [email protected], (202) 967-5070.

SUPPLEMENTARY INFORMATION:
I. Background
II. Overview of Final Rule (Sec.  2522.235)
III. Response to Public Comments
    A. Comments in Support of Proposed Rule
    B. Comments in Opposition to Proposed Rule
    C. Comments Requesting Changes to Proposed Rule
IV. Regulatory Analyses
    A. Executive Orders 12866 and 13563
    B. Regulatory Flexibility Act
    C. Small Business Regulatory Enforcement Fairness Act (SBREFA)
    D. Unfunded Mandates Reform Act of 1995
    E. Paperwork Reduction Act
    F. Executive Order 13132, Federalism
    G. Takings (Executive Order 12630)
    H. Civil Justice Reform (Executive Order 12988)
    I. Consultation with Indian Tribes (Executive Order 13175)
    I. Good Cause for Immediate Effective Date

I. Background

    The National and Community Service Act of 1990, as amended, 42 
U.S.C. 12501 et seq., aims to encourage United States citizens to 
engage in national service and to expand education opportunity by 
rewarding individuals who participate in national service with an 
increased ability to pursue higher education. Specifically, the Act 
establishes the National Service Trust and authorizes AmeriCorps to use 
funds from that Trust to provide education awards to eligible 
individuals who have fulfilled a term of service in an approved 
national service position and meet other applicable requirements. The 
Act also requires AmeriCorps State and National programs to provide 
living allowances and certain other benefits to full-time national 
service program participants. Notices of funding opportunity specify 
that programs may to choose to provide living allowances with 
AmeriCorps funding to members who serve less than full-time.
    The ``term of service'' that members serve in AmeriCorps State and 
National can be of different lengths, depending on the needs of the 
program. Full-time service is defined as 1,700 hours of service during 
a period of not more than one year. See 45 CFR 2522.220(a)(1). Part-
time service is defined as 900 hours of service during a period of not 
more than two years. See 45 CFR 2522.220(a)(2). Reduced part-time terms 
of service may include terms at a reduced number of hours for 
categories of participants in certain approved AmeriCorps programs and 
on a case-by-case basis. See 45 CFR 2522.220(a)(3). Summer program 
terms are considered part-time programs and members serve less than 
1,700 hours. See 45 CFR 2522.220(a)(4).
    Under 45 CFR 2525.50, AmeriCorps State and National members can 
earn up to the value of two full-time education awards. Because full-
time and less than full-time (e.g., part-time, reduced part-time, 
summer) terms of service have different hour requirements, each takes a 
different number of terms to reach the aggregate value of the two full-
time education awards. 45 CFR 2522.220; 2525.100.
    During the period that AmeriCorps State and National members are 
serving and earning Segal Education awards, AmeriCorps funds living 
allowances and other member benefits (e.g., financial benefits during 
an extended term of disaster-related service, childcare, health care). 
The current regulation, which took effect October 1, 2024, allows 
members to serve as many terms as necessary to earn the value of two 
full-time education awards, regardless of whether those terms are 
served on a full-time or less than full-time time basis. The prior 
regulation allowed AmeriCorps funding to support members' living 
allowances and benefits for up to four terms of service.

II. Overview of Final Rule

    Overall, this final rule is intended to increase the flexibility of 
AmeriCorps State and National regulations that removed the four-term 
limit on AmeriCorps funding for AmeriCorps State and National members' 
living allowances and other benefits. See 89 FR 46024 (May 28, 2024).
    The final rule, which appears at 45 CFR 2522.235, retains the 
current provision that allows AmeriCorps funding for living allowances 
and other member benefits for the number of terms it takes to earn the 
aggregate value of two full-time education awards and also reinstates 
the former provision that allowed AmeriCorps funding for up to four 
terms. Thus, living allowances and other benefits for members who serve 
less than full time may continue to be funded for however many terms it 
takes those members to earn the aggregate value of two education 
awards, while living allowances and other benefits for members who have 
earned the aggregate value of two full-time education awards in fewer 
than four terms may continue to be funded up to four terms.

III. Response to Public Comments

    AmeriCorps published a proposed rule on August 28, 2024, at 89 FR 
68845 and received 46 public comments in response by the September 27, 
2024, comment deadline. Summaries of the points raised in those 
comments, and AmeriCorps' responses, are provided here. No changes to 
the proposed regulatory text were made in response to these comments or 
otherwise, as explained in the response to comments.

A. Comments in Support of Proposed Rule

    Several commenters stated their general support for providing 
AmeriCorps funding for members' living allowances and other benefits 
for service in AmeriCorps State and National programs for either four 
terms or as many terms needed to attain the aggregate value of two-full 
time education awards, whichever is longer. The commenters highlighted 
that the flexibility in term limits supports members, grantees, and the 
communities served by, for example:

[[Page 5722]]

protecting members' opportunity to serve; offering the necessary 
support for members to complete their service; supporting members' 
personal and professional growth; enabling members to earn the 
statutorily allotted two Segal Education awards; benefiting the grantee 
organizations through members' institutional knowledge and providing 
organizations with the ability to better determine recruitment and 
funding needs; creating a value-added benefit for communities and 
people served; and ensuring continuity of service in rural and remote 
communities.
    Other commenters specifically noted that allowing continued service 
into third and fourth terms, after two education awards have been 
attained, is beneficial. For example, one commenter described the 
importance of her experience as a member who continued to serve a third 
term of service after earning the aggregate value of two full-time 
education awards and credited her third term of service as contributing 
to her growth as a leader, allowing her to earn her teaching 
certification, and changing the trajectory of her life. A commenter 
speaking from the perspective of a grantee stated that third- and 
fourth-year full-time members contribute institutional knowledge and 
expertise to programs, a ``spirit of service,'' efficacy, and 
continuity at service sites. Another commenter noted that consecutive 
terms of service translate into professional development and leadership 
opportunities for AmeriCorps members. Several commenters expressed the 
importance of allowing up to four terms for programs in rural and 
remote communities where members typically serve full-time and it can 
be difficult to recruit members due to smaller applicant pools.
    Some commenters emphasized their support for continuing to allow 
members to serve beyond four terms until they have earned the value of 
two full-time education awards. One commenter noted that some members 
serve only during summers and require more than four terms to earn the 
value of two full-time education awards. Another commenter stated that 
the major issue their organization encountered was that members reached 
the four-term limit (under the prior rule) before they earned the 
maximum education award and that allowing them to continue to serve to 
earn the education award addresses this issue.
    Response: This final rule carries forward the proposal that allows 
AmeriCorps funding to be used for living allowances and other benefits 
for as long as it takes members to either earn the aggregate value of 
two Segal Education Awards or four terms, whichever is longer. 
AmeriCorps agrees that the flexibility provides the benefits noted by 
the commenters above.

B. Comments in Opposition to the Proposed Rule

    A few commenters expressed opposition to the rule in general. 
Several expressed opposition to the regulation's imposition of any 
limit on the use of AmeriCorps funding for member benefits. Some of 
these commenters suggested that imposing a term limit on members' 
service is an effort to fix an issue that does not exist. The 
commenters stated that only a minute percentage of members serve for 
third and fourth terms in AmeriCorps State and National programs, and 
that assumptions that members will serve indefinitely, or that extended 
terms prevent others from engaging in service, are unwarranted. These 
commenters stated that any limit presents a barrier to service and 
discourages service at different stages of life.
    Response: AmeriCorps declines to remove all limits to the time 
during which it will fund members' living allowances and other benefits 
because such limits are necessary to safeguard taxpayer funds and 
encourage and support members' transition to higher education or the 
workforce.
    One commenter opposed the four-term limit prong of the rule, 
suggesting that the four-term timeframe is too long. They stated that 
after their third and fourth years, members no longer actively gain new 
skills and should instead transition from AmeriCorps into the 
workforce.
    Response: The final rule reinstates the four-term limit that 
previously existed to account for situations described by other 
commenters whereby members may want to continue serving after earning 
the value of two education awards and the organization and community 
benefit from their continued service.
    Several commenters from AmeriCorps State and National sponsor/
grantee organizations criticized the Agency's statements that terms are 
``unlimited'' as misleading because the organizations rely on the 
AmeriCorps funding for members' living allowances and other benefits 
and would have to absorb the living allowance and benefit costs for 
members serving beyond the AmeriCorps-funded limit (when the member 
earns the value of two full-time education awards or four terms, 
whichever is longer) in order to truly allow for ``unlimited'' terms. 
These commenters stated that the financial burden would lead to reduced 
capacity of organizations--particularly in rural and remote areas--
fewer serving members, diminished community impacts, and programmatic 
struggles to maintain ongoing efforts.
    Response: AmeriCorps is not changing its approach to limiting 
funding of living allowances and other benefits for members after a 
certain point, it is only changing the point at which the limit 
occurs--that is, when the member earns the value of two full-time 
education awards or has served four terms, whichever is longer. The 
final rule makes clear, as the proposed rule did, that programs may 
choose to fund or not to fund additional member terms. Programs may 
base their decisions on their financial capacity and the potential 
effects cited by the commenters.
    One commenter expressed criticism of the either/or nature of the 
rule. The commenter highlighted the potential for members who struggle 
to meet expectations and are engaged under an improvement plan to 
continue to be eligible for continued terms and benefits.
    Response: Organizations can hold AmeriCorps State and National 
members to performance standards and may decline continued service by a 
member who fails to meet their performance standards.

C. Comments Requesting Changes to the Proposed Rule

    A handful of commenters suggested incorporating a waiver option 
that allows programs to request an extension on the number of terms 
supported by AmeriCorps. These commenters stated that some members, 
such as individuals with disabilities or members serving in rural 
communities where recruiting is difficult, may benefit from serving 
beyond four full-time terms.
    Response: The final rule does not include a waiver option but 
AmeriCorps may consider incorporating one in the future.
    Some commenters suggested that AmeriCorps State and National align 
the member term limits to that of the Volunteers in Service to America 
(VISTA) program. Commenters stated that the proposed term limit should 
be increased to five years, equivalent to the current term limit of 
VISTA members, to provide consistency across streams of service.
    Response: The five-year term limit that applies to VISTA members 
reflects that VISTA terms are by their nature full-time, such that each 
term is roughly equivalent to a year. In contrast, AmeriCorps State and 
National

[[Page 5723]]

members may serve summer, part-time, or reduced part-time terms in lieu 
of full-time terms. Imposing a limit based on years rather than terms 
would prevent members who serve less than full-time from earning the 
maximum education award value.
    Several commenters sought clarification on how term limits and 
education award limits are tracked. Commenters noted that a program's 
access to how many terms a member has served is only available once 
that member's enrollment is pending, which creates a significant 
recruitment burden, as few members know with precision how many terms 
they have served.
    Response: AmeriCorps will keep this tracking challenge in mind as 
it develops its new online member system.
    Similarly, a few commenters asked for clarification on whether 
AmeriCorps will fund a member's entire term if they earn the maximum 
education award mid-way through a term.
    Response: If a member earns the maximum education award mid-way 
through a term (and has already served four terms), AmeriCorps will 
continue to fund the member's service through the completion of that 
term.
    One commenter requested clarification on how incomplete terms will 
be considered in calculating a member's progress toward a term limit.
    Response: AmeriCorps' online member management system tracks an 
individual's number of terms.
    One commenter proposed changing the four-term limitation to the 
equivalent of four terms of full-time service. Among the reasons the 
commenter provided for this suggestion were that it would clarify what 
terms count toward the limit and ensure less-than-full-time members do 
not ``term out'' before accessing the same opportunities and education 
award value as full-time members.
    Response: The commenter's suggestion is a novel approach. If 
AmeriCorps considers adopting this suggestion in the future, it will do 
so through a new proposed rulemaking.
    Two commenters suggested that, in anticipation of Congressional 
legislation that proposes an increase in the number of education awards 
a member is eligible for, the regulatory language should be broadened 
in an effort to provide flexibility. They suggested updating the 
language from ``two full-time education awards'' to the ``statutorily 
allowed maximum education awards.''
    Response: The final rule retains the language specifying two full-
time education awards because that language reflects the current 
statute. Should Congress change that statutorily allowed maximum, 
AmeriCorps will undertake a separate rulemaking to update the 
regulation to reflect that change.

IV. Regulatory Analyses

A. Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. The Office of Information and Regulatory Affairs in the 
Office of Management and Budget has determined that this rule is not a 
significant regulatory action, and therefore is not subject to review 
under Section 6(b) of Executive Order 12866, Regulatory Planning and 
Review.

B. Regulatory Flexibility Act

    As required by the Regulatory Flexibility Act of 1980 (5 U.S.C. 601 
et seq.), AmeriCorps certifies that this rule will not have a 
significant economic impact on a substantial number of small entities. 
Most AmeriCorps State and National grantees are State Commissions and 
organizations that do not meet the definition of a small entity. 
Therefore, AmeriCorps has not performed the regulatory flexibility 
analysis that is required under the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.) for rules that are expected to have such results.

C. Small Business Regulatory Enforcement Fairness Act (SBREFA)

    The Office of Information and Regulatory Affairs in the Office of 
Management and Budget has determined that this is not a major rule 
under 5 U.S.C. 804(2) because this rule: (1) does not have an annual 
effect on the economy of $100 million or more; (2) will not cause a 
major increase in costs or prices for consumers, individual industries, 
federal, state, or local government agencies, or geographic regions; 
and (3) does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or on the ability of 
U.S.-based enterprises to compete with foreign-based enterprises in 
domestic and export markets.

D. Unfunded Mandates Reform Act of 1995

    For purposes of title II of the Unfunded Mandates Reform Act of 
1995, 2 U.S.C. 1531-1538, as well as Executive Order 12875, this 
regulatory action does not contain any Federal mandate that may result 
in increased expenditures in Federal, State, local, or Tribal 
governments in the aggregate, or impose an annual burden exceeding $100 
million on the private sector.

E. Paperwork Reduction Act

    Under the PRA, an agency may not conduct or sponsor a collection of 
information unless the collections of information display valid control 
numbers. This rule does not include any information collection.

F. Executive Order 13132, Federalism

    Executive Order 13132, Federalism, prohibits an agency from 
publishing any rule that has federalism implications if the rule 
imposes substantial direct compliance costs on State and local 
governments and is not required by statute, or the rule preempts State 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive order. This rulemaking does not have any 
federalism implications, as described above.

G. Takings (Executive Order 12630)

    This rule does not affect a taking of private property or otherwise 
have taking implications under Executive Order 12630 because this 
proposed rule does not affect individual property rights protected by 
the Fifth Amendment or involve a compensable ``taking.'' A takings 
implication assessment is not required.

H. Civil Justice Reform (Executive Order 12988)

    This rule complies with the requirements of Executive Order 12988. 
Specifically, this rulemaking: (a) meets the criteria of section 3(a) 
requiring that all regulations be reviewed to eliminate errors and 
ambiguity and be written to minimize litigation; and (b) meets the 
criteria of section 3(b)(2) requiring that all regulations be written 
in clear language and contain clear legal standards.

I. Consultation With Indian Tribes (Executive Order 13175)

    AmeriCorps recognizes the inherent sovereignty of Indian Tribes and 
their right to self-governance. We have evaluated this rulemaking under 
our consultation policy and the criteria in Executive Order 13175 and 
determined

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that this rule does not impose substantial direct effects on federally 
recognized Tribes.

J. Good Cause for Immediate Effective Date

    AmeriCorps has determined, pursuant to 5 U.S.C. 553(d)(3), that 
good cause exists to make this rule effective upon publication, because 
this rule relieves a restriction by increasing the amount of time 
AmeriCorps will fund members' living allowances and other benefits 
beyond the point when the member attains the value of two full-time 
education awards, up to the point the member has served four terms, so 
long as the member has not already served four terms by the time the 
member attains the value of two full-time education awards. In other 
words, the final rule increases flexibility by providing AmeriCorps 
funding for the longer of the service time it takes a member to attain 
the value of two full-time education awards or serve four terms. The 
primary purpose of a delayed effective date is unnecessary for this 
rule because there is no time needed to prepare to comply with, or take 
other action to comply with, this rule. The four-term limit preexisted 
the October 1, 2024, rule that replaced that limit with the amount of 
time it takes a member to earn the value of two full-time education 
awards, and this final rule reinstates that four-term limit when it 
exceeds the time it takes a member to earn the value of two full-time 
education awards.

List of Subjects in 45 CFR Part 2522

    Grant programs-social programs, Reporting and recordkeeping 
requirements, Volunteers.

    For the reasons stated in the preamble, under the authority of 42 
U.S.C. 12651c(c), the Corporation for National and Community Service 
amends chapter XXV, title 45 of the Code of Federal Regulations as 
follows:

PART 2522--AMERICORPS PARTICIPANTS, PROGRAMS, AND APPLICANTS

0
1. The authority citation for part 2522 continues to read as follows:

    Authority:  42 U.S.C. 12571-12595; 12651b-12651d; E.O. 13331, 69 
FR 9911, Sec. 1612, Pub. L. 111-13.

0
2. Revise Sec.  2522.235 to read as follows:

Sec.  2522.235  Is there a limit on the number of terms an individual 
may serve in an AmeriCorps State and National program?

    The number of terms an individual may serve in an AmeriCorps State 
and National program is not limited, but the limitations in paragraphs 
(a) and (b) of this section apply.
    (a) An individual may attain only the aggregate value of two full-
time education awards.
    (b) AmeriCorps will fund the benefits described in Sec. Sec.  
2522.240 through 2522.250 only for the number of terms needed to attain 
the aggregate value of two full-time education awards or for four 
terms, whichever is longer. Grantees may choose to fund benefits for 
any additional terms.

Andrea Grill,
Acting General Counsel.
[FR Doc. 2025-00984 Filed 1-16-25; 8:45 am]
BILLING CODE 6050-28-P
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