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Section 125 (42 U.S.C. 1257) is repealed.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 inserting 
the following: 
‘‘(2) MATCHING
REQUIREMENT.—In making 
grants to a State under this subsection, the Corpora-
tion 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 Corpora-
tion, 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 inserting 
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 re-
quired 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 pro-
gram to satisfy matching funds requirements. The 
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Corporation may permit the use of local or State 
funds as matching funds if the Corporation deter-
mines that such use would be equitable due to a lack 
of available private funds at the local level. The Cor-
poration shall establish a ceiling on the amount of as-
sistance that may be provided to a national 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 pro-
vision 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 application sub-
mitted 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 fiscal year as the 
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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 assistance 
under section 121(a) for a fiscal year, the Corporation 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 Corporation 
shall reserve 23 percent for grants to nonprofit organiza-
tions 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 percent 
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-
wealth of Puerto Rico that submits an application 
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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 Dis-
trict of Columbia, and the Commonwealth of Puerto 
Rico, in compliance with paragraph (3). 
‘‘(3) MINIMUM AMOUNT.—Notwithstanding para-
graph (2), the minimum grant made available to each 
State approved by the Corporation under paragraph 
(1) for each fiscal year must be at least $600,000. 
‘‘(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 
grants) to other grantmaking entities under section 
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121 that propose to carry out national service pro-
grams in such State or Territory; and 
‘‘(2) make a reallotment to other States or Terri-
tories 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 recipi-
ent under this section shall be made by the Corporation only 
pursuant to an application submitted by a State or other 
applicant under section 130. 
‘‘(h) APPROVAL OF POSITIONS SUBJECT TO AVAILABLE 
FUNDS.—The Corporation may not approve positions 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 con-
sideration funding needs for national service educational 
awards under subtitle D based on completed service. If ap-
propriations are insufficient to provide the maximum al-
lowable national service educational awards under subtitle 
D for all eligible participants, the Corporation is authorized 
to make necessary and reasonable adjustments to program 
rules. 
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