The awards are sponsored by the James Madison Memorial Fellowship Foundation, an endowment in the U.S. Treasury initially created with a federal appropriation. The Foundation's principal thrust is the awarding of fellowships for graduate study of the principles, framing and history of the U.S. Constitution. James Madison Fellows are expected to enroll in programs of graduate study that lead either to master's degrees in American history or political science, or to related master's degrees in education that permit a concentration to pursue careers as secondary teachers of American history, American government or social studies. Fellowships do not support study toward doctoral degrees or teacher certificates. Under certain circumstances, Fellowships may support study toward second master's degrees.
Participants also visit historical sites associated with the nation's founding generation.
Attendance at the institute is required of all Fellows, normally following the commencement of their studies. Experienced teachers, known as Senior Fellows, may receive support for up to five years of part-time graduate study. Aspiring teachers, known as Junior Fellows, may receive support for up to two years of full-time graduate study. In return for Fellowship support, Fellows must teach in secondary schools for not less than one year for each full academic year of study for which they receive assistance. The Foundation annually selects at least one Junior or Senior Fellow from each state.