‘‘(2) EXCEPTION.—The requirements in para-
graph (1) do not apply to an individual serving in 
an approved national service position who is enrolled 
in an elementary or secondary school and is pro-
viding tutoring services through a structured, school- 
managed cross-grade tutoring program. 
‘‘(e) REQUIREMENTS FOR TUTORING PROGRAMS.— 
Each tutoring program that receives assistance under the 
national service laws shall— 
‘‘(1) offer a curriculum that is high quality, re-
search-based, and consistent with the State aca-
demic content standards required by section 1111 of 
the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6311) and the instructional pro-
gram of the local educational agency; and 
‘‘(2) offer high quality, research-based pre- and 
in-service training for tutors.’’. 
SEC. 1303. TYPES OF POSITIONS. 
Section 123 (42 U.S.C. 12573) is amended— 
(1) in paragraph (2)(A) by inserting after ‘‘sub-
division of a State,’’ the following: ‘‘a Territory,’’; 
and 
(2) in paragraph (5) by inserting ‘‘National’’ 
before ‘‘Civilian Community Corps’’. 
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SEC. 1304. CONFORMING REPEAL RELATING TO TRAINING 
AND TECHNICAL ASSISTANCE. 
Section 125 (42 U.S.C. 1257) is repealed. 
SEC. 1305. ASSISTANCE TO STATE COMMISSIONS; CHAL-
LENGE GRANTS. 
Section 126 (42 U.S.C. 12576) is amended— 
(1) in subsection (a)— 
(A) 
in 
paragraph 
(1), 
by 
striking 
‘‘$125,000 
and 
$750,000’’ 
and 
inserting 
‘‘$200,000 and $825,000’’; and 
(B) by striking paragraph (2) and insert-
ing the following: 
‘‘(2) MATCHING
REQUIREMENT.—In making 
grants to a State under this subsection, the Cor-
poration shall require the State to provide matching 
funds in the following amounts: 
‘‘(A) 
FIRST
$100,000.—For 
the 
first 
$100,000 of grant amounts provided by the 
Corporation, a State shall not be required to 
provide matching funds. 
‘‘(B) AMOUNTS GREATER THAN $100,000.— 
For grant amounts of more than $100,000 and 
not exceeding $200,000 provided by the Cor-
poration, a State shall provide $1 from non- 
Federal sources for every $2 provided by the 
Corporation. 
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‘‘(C) AMOUNTS GREATER THAN $200,000.— 
For grant amounts of more than $200,000 pro-
vided by the Corporation, a State shall provide 
$1 from non-Federal sources for every $1 pro-
vided by the Corporation.’’; and 
(2) in subsection (c)— 
(A) in paragraph (1), by striking ‘‘to na-
tional service programs that receive assistance 
under section 121’’ and inserting ‘‘to programs 
supported under the national service laws’’; and 
(B) by striking paragraph (3) and insert-
ing the following: 
‘‘(3) AMOUNT
OF
ASSISTANCE.—A challenge 
grant under this subsection may provide, for an ini-
tial 3-year grant period, not more than $1 of assist-
ance under this subsection for each $1 in cash raised 
from private sources by the program supported 
under the national service laws in excess of amounts 
required to be provided by the program to satisfy 
matching funds requirements. After an initial 3-year 
grant period, grants under this subsection may pro-
vide not more than $1 of assistance for each $2 in 
cash raised from private sources by the program in 
excess of amounts required to be provided by the 
program to satisfy matching funds requirements. 
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The Corporation may permit the use of local or 
State funds as matching funds if the Corporation 
determines that such use would be equitable due to 
a lack of available private funds at the local level. 
The Corporation shall establish a ceiling on the 
amount of assistance that may be provided to a na-
tional service program under this subsection.’’. 
SEC. 1306. ALLOCATION OF ASSISTANCE TO STATES AND 
OTHER ELIGIBLE ENTITIES. 
Section 129 (42 U.S.C. 12581) is amended to read 
as follows: 
‘‘SEC. 129. PROVISION OF ASSISTANCE AND APPROVED NA-
TIONAL SERVICE POSITIONS. 
‘‘(a) 1–PERCENT ALLOTMENT FOR CERTAIN TERRI-
TORIES.—Of the funds allocated by the Corporation for 
provision of assistance under section 121(a) for a fiscal 
year, the Corporation shall reserve 1 percent for grants 
to the United States Virgin Islands, Guam, American 
Samoa, and the Commonwealth of the Northern Mariana 
Islands upon approval by the Corporation of an applica-
tion submitted under section 130. The amount allotted as 
a grant to each such Territory under this subsection for 
a fiscal year shall be equal to the amount that bears the 
same ratio to 1 percent of the allocated funds for that 
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fiscal year as the population of the Territory bears to the 
total population of such Territories. 
‘‘(b) ALLOTMENT
FOR INDIAN TRIBES.—Of the 
funds allocated by the Corporation for provision of assist-
ance under section 121(a) for a fiscal year, the Corpora-
tion shall reserve at least 1 percent for grants to Indian 
tribes, to be allotted by the Corporation on a competitive 
basis. 
‘‘(c) ALLOTMENT FOR NATIONAL GRANTS.—Of the 
funds allocated by the Corporation for provision of assist-
ance under section 121(a) for a fiscal year, the Corpora-
tion shall reserve 23 percent for grants to nonprofit orga-
nizations to operate a program in 2 or more States. 
‘‘(d) 
ALLOTMENT
FOR
STATE
COMPETITIVE 
GRANTS.—Of the funds allocated by the Corporation for 
provision of assistance under subsection (a) of section 121 
for a fiscal year, the Corporation shall reserve 37.5 per-
cent for innovative grants to States on a competitive basis. 
‘‘(e) ALLOTMENT TO CERTAIN STATES ON FORMULA 
BASIS.— 
‘‘(1) GRANTS.—Of the funds allocated by the 
Corporation for provision of assistance under sub-
section (a) of section 121 for a fiscal year, the Cor-
poration shall make a grant to each of the several 
States, the District of Columbia, and the Common-
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wealth of Puerto Rico that submits an application 
under section 130 that is approved by the Corpora-
tion. 
‘‘(2) ALLOTMENTS.—The amount allotted as a 
grant to each such State under this subsection for 
a fiscal year shall be equal to the amount that bears 
the same ratio to 37.5 percent of the allocated funds 
for that fiscal year as the population of the State 
bears to the total population of the several States, 
the District of Columbia, and the Commonwealth of 
Puerto Rico, in compliance with paragraph (3). 
‘‘(3) 
MINIMUM
AMOUNT.—Notwithstanding 
paragraph (2), the minimum grant made available to 
each State approved by the Corporation under para-
graph (1) for each fiscal year must be at least 
$500,000. 
‘‘(f) EFFECT OF FAILURE TO APPLY.—If a State or 
Territory fails to apply for, or fails to give notice to the 
Corporation of its intent to apply for an allotment under 
this section, or the Corporation does not approve the appli-
cation consistent with section 133, the Corporation may 
use the amount that would have been allotted under this 
section to the State or Territory to— 
‘‘(1) make grants (and provide approved na-
tional service positions in connection with such 
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grants) to other grantmaking entities under section 
121 that propose to carry out national service pro-
grams in such State or Territory; and 
‘‘(2) make a reallotment to other States or Ter-
ritories with approved applications submitted under 
section 130, to the extent grant-making entities do 
not apply as described in paragraph (1). 
‘‘(g) APPLICATION REQUIRED.—The allotment of as-
sistance and approved national service positions to a re-
cipient under this section shall be made by the Corpora-
tion only pursuant to an application submitted by a State 
or other applicant under section 130. 
‘‘(h) APPROVAL OF POSITIONS SUBJECT TO AVAIL-
ABLE FUNDS.—The Corporation may not approve posi-
tions as approved national service positions under this 
subtitle for a fiscal year in excess of the number of such 
positions for which the Corporation has sufficient available 
funds in the National Service Trust for that fiscal year, 
taking into consideration funding needs for national serv-
ice educational awards under subtitle D based on com-
pleted service. If appropriations are insufficient to provide 
the maximum allowable national service educational 
awards under subtitle D for all eligible participants, the 
Corporation is authorized to make necessary and reason-
able adjustments to program rules. 
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‘‘(i) SPONSORSHIP OF APPROVED NATIONAL SERV-
ICE POSITIONS.— 
‘‘(1) SPONSORSHIP
AUTHORIZED.—The Cor-
poration may enter into agreements with persons or 
entities who offer to sponsor national service posi-
tions for which the person or entity will be respon-
sible for supplying the funds necessary to provide a 
national service educational award. The distribution 
of these approved national service positions shall be 
made pursuant to the agreement, and the creation 
of these positions shall not be taken into consider-
ation in determining the number of approved na-
tional service positions to be available for distribu-
tion under this section. 
‘‘(2) DEPOSIT OF CONTRIBUTION.—Funds pro-
vided pursuant to an agreement under paragraph 
(1) shall be deposited in the National Service Trust 
established in section 145 until such time as the 
funds are needed. 
‘‘(j) RESERVATION OF FUNDS FOR SPECIAL ASSIST-
ANCE.—From amounts appropriated for a fiscal year pur-
suant to the authorization of appropriations in section 
501(a)(2) and subject to the limitation in such section, 
the Corporation may reserve such amount as the Corpora-
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tion considers to be appropriate for the purpose of making 
assistance available under section 126. 
‘‘(k) RESERVATION OF FUNDS TO INCREASE THE 
PARTICIPATION OF INDIVIDUALS WITH DISABILITIES.— 
From amounts appropriated for a fiscal year pursuant to 
the authorization of appropriations in section 501(a)(2) 
and subject to the limitation in such section, the Chief 
Executive Officer shall reserve an amount that is not less 
than 1 percent of such amount (except that the amount 
reserved may not exceed $10,000,000), in order to make 
grants to public or private nonprofit organizations to in-
crease the participation of individuals with disabilities in 
national service and for demonstration activities in fur-
therance of this purpose.’’. 
SEC. 1307. ADDITIONAL AUTHORITY. 
Part II of subtitle C of title I is amended by inserting 
after section 129 (42 U.S.C. 12581) the following: 
‘‘SEC. 129A. EDUCATION AWARDS ONLY PROGRAM. 
‘‘(a) IN GENERAL.—From amounts appropriated for 
a fiscal year to provide financial assistance under this sub-
title and consistent with the restriction in subsection (b), 
the Corporation may, through fixed amount grants under 
subsection (d), provide operational assistance to programs 
that receive approved national service positions but do not 
receive funds under section 121(a). 
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‘‘(b) LIMIT
ON CORPORATION GRANT FUNDS.— 
Operational support under this section may not exceed 
$600 per individual enrolled in an approved national serv-
ice position and may reach $800 per individual if the pro-
gram supports at least 50 percent disadvantaged youth. 
‘‘(c) INAPPLICABLE PROVISIONS.—The following pro-
visions shall not apply to programs funded under this sec-
tion: 
‘‘(1) The limitation on administrative costs 
under section 121(d). 
‘‘(2) The matching funds requirements under 
sections 121(e) and 140. 
‘‘(3) The living allowance and other benefits 
under sections 131(e) and section 140 (other than 
individualized support services for disabled members 
under section 140(f)). 
‘‘(d) FIXED AMOUNT GRANTS.— 
‘‘(1) GENERAL.—For purposes of subsection 
(a), and subject to the limitations in this subsection, 
the Corporation may, upon making a determination 
described in paragraph (2), approve a fixed amount 
grant that is not subject to the Office of Manage-
ment and Budget cost principles and related finan-
cial recordkeeping requirements. 
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‘‘(2) DETERMINATION.—Before approving a 
fixed amount grant, the Corporation must determine 
that— 
‘‘(A) the reasonable and necessary costs of 
carrying out the terms of the grant significantly 
exceed the amount of assistance provided by the 
Corporation; or 
‘‘(B) based on the nature or design of the 
grant, any assistance provided by the Corpora-
tion can be reasonably presumed to be expended 
on reasonable and necessary costs.’’. 
SEC. 1308. STATE SELECTION OF PROGRAMS. 
Section 130 (42 U.S.C. 12582) is amended— 
(1) in subsection (a)— 
(A) by inserting after ‘‘State,’’ the fol-
lowing: ‘‘Territory,’’; and 
(B) by striking ‘‘institution of higher edu-
cation, or Federal agency’’ and inserting ‘‘or in-
stitution of higher education’’; 
(2) in subsection (c)(1), by striking ‘‘jobs or’’; 
(3) in subsection (f)— 
(A) in paragraph (1), by striking ‘‘a pro-
gram applicant’’ and inserting ‘‘an applicant’’; 
and 
(B) in paragraph (2)— 
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