(i) in the heading, by striking ‘‘PRO-
GRAM APPLICANT’’ and inserting ‘‘APPLI-
CANT’’; 
(ii) in the matter preceding subpara-
graph (A), by striking ‘‘program appli-
cant’’ and inserting ‘‘applicant’’; 
(iii) in subparagraph (A)— 
(I) by inserting after ‘‘subdivision 
of a State,’’ the following: ‘‘Terri-
tory,’’; and 
(II) by striking ‘‘institution of 
higher education, or Federal agency’’ 
and inserting ‘‘or institution of higher 
education’’; and 
(iv) in subparagraph (B)— 
(I) by inserting after ‘‘subdivision 
of a State,’’ the following: ‘‘Terri-
tory,’’; and 
(II) by striking ‘‘institution of 
higher education, or Federal agency’’ 
and inserting ‘‘or institution of higher 
education’’; and 
(4) in subsection (g), by striking the period and 
inserting ‘‘or is already receiving financial assistance 
from the Corporation.’’. 
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SEC. 1309. CONSIDERATION OF APPLICATIONS. 
Section 133 (42 U.S.C. 12585) is amended— 
(1) in subsection (b)(2)(B), by striking ‘‘jobs 
or’’; 
(2) in subsection (c), by redesignating para-
graph (8) as paragraph (9) and inserting after para-
graph (7) the following: 
‘‘(8) The extent to which the program generates 
the involvement of volunteers.’’; and 
(3) in subsection (d)(2)— 
(A) by striking subparagraphs (A) and 
(G), and redesignating subparagraphs (B) 
through (F) as subparagraphs (A) through (E), 
respectively; 
(B) in subparagraph (D) (as so redesig-
nated), by adding ‘‘and’’ at the end; and 
(C) in subparagraph (E) (as so redesig-
nated), by striking ‘‘; and’’ and inserting a pe-
riod. 
SEC. 1310. DESCRIPTION OF PARTICIPANTS. 
Section 137 (42 U.S.C. 12591) is amended— 
(1) in subsection (a)— 
(A) by striking paragraph (3); and 
(B) by redesignating paragraphs (4), (5), 
and (6) as paragraphs (3), (4), and (5), respec-
tively; 
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(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘para-
graph (4)’’ and inserting ‘‘paragraph (3)’’; and 
(B) in paragraph (2), by striking ‘‘between 
the ages of 16 and 25’’ and inserting ‘‘a 16- 
year-old out of school youth or an individual be-
tween the ages of 17 and 25’’; and 
(3) in subsection (c), by striking ‘‘(a)(5)’’ and 
inserting ‘‘(a)(4)’’. 
SEC. 1311. SELECTION OF NATIONAL SERVICE PARTICI-
PANTS. 
Section 138 (42 U.S.C. 12592) is amended— 
(1) in subsection (a) by striking ‘‘conducted by 
the State’’ and all that follows through ‘‘or other en-
tity’’ and inserting ‘‘conducted by the entity’’; and 
(2) in subsection (e)(2)(C) by inserting before 
the semicolon at the end the following: ‘‘, particu-
larly those who were considered at the time of their 
service disadvantaged youth’’. 
SEC. 1312. TERMS OF SERVICE. 
Section 139 (42 U.S.C. 12593) is amended— 
(1) in subsection (b)(1), by striking ‘‘not less 
than 9 months and’’; 
(2) in subsection (b)(2), by striking ‘‘during a 
period of—’’ and all that follows through the period 
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at the end and inserting ‘‘during a period of not 
more than 2 years.’’; and 
(3) in subsection (c)— 
(A) in paragraph (1)(A), by striking ‘‘as 
demonstrated by the participant’’ and inserting 
‘‘as determined by the organization responsible 
for granting a release, if the participant has 
otherwise performed satisfactorily and has com-
pleted at least 15 percent of the original term 
of service’’; 
(B) in paragraph (2)(A), by striking ‘‘pro-
vide to the participant that portion of the na-
tional service educational award’’ and inserting 
‘‘certify the participant’s eligibility for that por-
tion of the national service educational award’’; 
and 
(C) in paragraph (2)(B), by striking ‘‘to 
allow return to the program with which the in-
dividual was serving in order’’. 
SEC. 1313. ADJUSTMENTS TO LIVING ALLOWANCE. 
Section 140 (42 U.S.C. 12594) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘para-
graph (3)’’ and inserting ‘‘paragraphs (2) and 
(3)’’; 
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(B) by striking paragraph (2); 
(C) by redesignating paragraph (3) as (2); 
(D) by inserting after paragraph (2) (as so 
redesignated) the following: 
‘‘(3) FEDERAL WORK-STUDY STUDENTS.—The 
living allowance that may be provided to an indi-
vidual whose term of service includes hours for 
which the individual receives Federal work study 
wages shall be reduced by the amount of the individ-
ual’s Federal work study award.’’; 
(E) in paragraph (4), by striking ‘‘a re-
duced term of service under section 139(b)(3)’’ 
and inserting ‘‘a term of service that is less 
than 12 months’’; 
(2) in subsection (b), by striking ‘‘shall include 
an amount sufficient to cover 85 percent of such 
taxes’’ and all that follows through the period at the 
end and inserting ‘‘may be used to pay such taxes.’’; 
(3) in subsection (c)— 
(A) in paragraph (1) by adding ‘‘and’’ at 
the end; 
(B) by striking paragraph (2); and 
(C) by redesignating paragraph (3) as (2); 
(4) in subsection (d)(1), by striking the second 
sentence; and 
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(5) by striking subsections (g) and (h). 
Subtitle D—Amendments to Sub-
title D (National Service Trust 
and Provision of National Serv-
ice Educational Awards) 
SEC. 1401. AVAILABILITY OF FUNDS IN THE NATIONAL 
SERVICE TRUST. 
Section 145 (42 U.S.C. 12601) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)(B), by striking ‘‘sec-
tion 148(e)’’ and inserting ‘‘section 148(f)’’; 
and 
(B) in paragraph (2), by striking ‘‘pursu-
ant to section 196(a)(2)’’ and inserting ‘‘pursu-
ant to section 196(a)(2), if the terms of such 
donations direct that they be deposited in the 
National Service Trust’’; and 
(2) in subsection (c), by striking ‘‘for payments 
of national service educational awards in accordance 
with section 148.’’ and inserting ‘‘for— 
‘‘(1) payments of summer of service educational 
awards and national service educational awards in 
accordance with section 148; and 
‘‘(2) payments of interest in accordance with 
section 148(f);’’. 
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