‘‘(i) may permit disbursal of the 
award to the parents of the youth that 
have established a qualified tuition pro-
gram account under section 529 of the In-
ternal Revenue Code of 1986, for deposit 
into the account; but 
‘‘(ii) shall not otherwise permit dis-
bursal of the award to the parents; or 
‘‘(B) enter into a contract with a private 
sector organization to hold the educational 
award funds and disburse the educational 
award as described in subparagraph (A). 
‘‘(3) DISBURSEMENTS
BY
CHIEF
EXECUTIVE 
OFFICER.—If the Chief Executive Officer decides 
under section 162(a)(2)(B) to reserve educational 
award funds, the Chief Executive Officer shall dis-
burse the educational award as described in para-
graph (2)(A). 
‘‘SEC. 162C. SUPPLEMENTAL GRANTS. 
‘‘(a) IN GENERAL.—The Chief Executive Officer may 
award a supplemental grant to an eligible entity that dem-
onstrates the matters described in subsection (b), to assist 
the entity in carrying out a community service project in 
accordance with the requirements of this part, as deter-
mined appropriate by the Chief Executive Officer. 
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‘‘(b) APPLICATION.—To be eligible to receive a sup-
plemental grant under subsection (a), an entity shall sub-
mit an application to the Chief Executive Officer, at such 
time, in such manner, and containing such information as 
the Chief Executive Officer may require, including infor-
mation demonstrating— 
‘‘(1) that the entity received a subgrant under 
section 162A for a community service project; and 
‘‘(2) that the entity would be unable to carry 
out the project without substantial hardship unless 
the entity received a supplemental grant under sub-
section (a). 
‘‘(c) AMOUNT OF GRANT.—The Chief Executive Offi-
cer shall award such a grant to an eligible entity for the 
project in the amount obtained by multiplying $250 and 
the number of youth who will participate in the project 
(to be used for project expenses). 
‘‘SEC. 162D. INDIAN TRIBES AND TERRITORIES. 
‘‘From the funds made available to carry out this 
part under section 165(b)(2)(A) for any fiscal year, the 
Chief Executive Officer shall reserve an amount of not 
more than 3 percent for payments to Indian tribes, the 
United States Virgin Islands, Guam, American Samoa, 
and the Commonwealth of the Northern Mariana Islands, 
to be used in accordance with the requirements of this 
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part, as determined appropriate by the Chief Executive 
Officer. 
‘‘PART II—SUMMER OF SERVICE NATIONAL 
DIRECT GRANT PROGRAM 
‘‘SEC. 163. NATIONAL DIRECT GRANTS. 
‘‘(a) GRANTS.— 
‘‘(1) IN GENERAL.—The Chief Executive Offi-
cer shall award grants on a competitive basis to pub-
lic or private organizations (referred to individually 
in this part as an ‘organization’)— 
‘‘(A) to carry out quality assurance activi-
ties under subsection (d); and 
‘‘(B) to pay for the Federal share of the 
cost of carrying out a community service pro-
gram— 
‘‘(i) in a State where the State Com-
mission does not apply for funding under 
part I; or 
‘‘(ii) in multiple States. 
‘‘(2) FUNDS FOR EDUCATIONAL AWARDS.—The 
Chief Executive Officer shall decide whether funds 
appropriated to carry out this part and available for 
educational awards (referred to in this part as ‘edu-
cational award funds’) shall be— 
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‘‘(A) included in the funds for such grants 
to organizations and any subgrants to local pro-
viders; or 
‘‘(B) reserved by the Chief Executive Offi-
cer, deposited in the National Service Trust for 
educational awards, and disbursed according to 
paragraphs (1) and (3) of section 163B(d). 
‘‘(3) PERIODS OF GRANTS.—The Chief Execu-
tive Officer shall award the grants for periods of 3 
years. 
‘‘(4) AMOUNTS OF GRANTS.—The Chief Execu-
tive Officer shall award such a grant to an organiza-
tion for a program in a sum equal to— 
‘‘(A) the amount obtained by multiplying 
$500 and the number of youth who will partici-
pate in the program (to be used for program 
expenses); 
‘‘(B) unless the Chief Executive Officer de-
cides to deposit funds for educational awards in 
the National Service Trust, as described in 
paragraph (2)(B), an additional amount equal 
to the amount described in subparagraph (A) 
(to be used for educational awards); and 
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