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Federal Register / Vol. 89, No. 103 / Tuesday, May 28, 2024 / Rules and Regulations
AmeriCorps estimates that the
reduction in required match will total
less than $100 million annually and
anticipates that reducing the burden on
programs to raise and report these
dollars will increase economic benefits
to the programs and the communities
they serve. It has been estimated that
each taxpayer dollar spent on
AmeriCorps and AmeriCorps Seniors
programs generates an over $17 return
in benefits to society, program members,
and the government. See Dominic
Modicamore and Alix Naugler,
AmeriCorps and Senior Corps:
Quantifying the Impact, Voices for
National Service by ICF Incorporated,
LLC, pp. 33–34 (July 2020) https://
voicesforservice.org/wp-content/
uploads/2020/07/ICF_AmeriCorps-and-
Senior-Corps_Quantifying-the-Impact_
FINAL.pdf (note: the return on
investment is based on a total of
AmeriCorps and AmeriCorps Seniors
programs and does not disaggregate the
return for AmeriCorps State and
National). Benefits to members include
increased educational attainment and
employment outcomes and benefits to
society include the cost savings,
reduced spending, and additional
income resulting from national service.
This final rule does not increase the
amount of Federal funding invested in
AmeriCorps State and National
programs, but by reducing required
match, the rule allows programs to
devote more time to outcome-producing
activities that may, in turn, increase
benefits overall.
C. Criteria for Waiving Match
Requirements—§ 2521.70
This rule revises the criteria that
grantees must demonstrate when they
request a waiver of the matching
requirements. Currently, the regulation
requires grantees to demonstrate: (1) a
lack of resources at the local level; (2)
that the lack of resources is unique or
unusual; (3) the efforts the grantee has
made to raise matching resources; and
(4) the amount of matching resources
the grantee has raised or reasonably
expects to raise. The final rule instead
specifies four criteria and requires
grantees to demonstrate only one of
them, and in addition provide
supporting documentation and a
description of the efforts made to raise
match. The final rule’s waiver criteria
mirror the waiver criteria required in
AmeriCorps Seniors programs, with one
additional criterion to allow waivers for
organizations with revenue of less than
$500,000. Specifically, under the final
rule, grantees have to demonstrate one
of the following: initial difficulties in
developing local funding sources during
the first three years of operations; an
economic downturn, natural disaster, or
similar event in the grantee’s service
area that severely restricts or reduces
sources of local funding support; the
unexpected discontinuation of local
support from one or more sources that
a project has relied on for a period of
years; or an organizational revenue of
less than $500,000.
The current regulations’ waiver
requirements are overly burdensome to
grantees and enhance the risk that
AmeriCorps funds will not be fully
expended, because grantees must return
AmeriCorps funds at closeout if they do
not meet the match requirement or
receive a waiver. The new waiver
criteria reduce this burden and provide
more consistency with AmeriCorps
Seniors’ match waiver criteria. To
ensure consistency between the
programs, the new AmeriCorps State
and National match waiver criteria are
identical in wording to AmeriCorps
Seniors’ match waiver criteria, with one
additional criterion. The additional
criterion in this final rule, for
organizations with less than $500,000 in
revenue (as shown on an IRS Form 990,
for example), is intended to encourage
new, small organizations and those with
programs in underserved communities.
The rule still requires a description of
efforts made to raise matching resources
but clarifies that this description must
be provided with the waiver request.
D. Limit on Number of Terms an
Individual May Serve in AmeriCorps
State and National—§ 2522.235
The current regulation provides that
individuals who serve in AmeriCorps
State and National may receive the
benefits offered by AmeriCorps for
serving up to, but not more than, four
terms. It also includes information on
how terms are calculated if an
individual is released early under
various circumstances. The benefits
offered to AmeriCorps members include
the AmeriCorps Segal Education Award
from the National Service Trust upon
successful completion of their terms of
service. Benefits during service include
a living allowance, financial benefits
during an extended term of disaster-
related service, childcare, and health
care.
Separate regulations at 45 CFR
2525.50 limit participants to receiving
no more than the value of two full-time
education awards. The final rule
removes the four-term limit, thus
allowing any individual to serve as
many terms as necessary to earn the
value of two full-time education awards,
regardless of whether those terms are
served on a full-time, part-time, or
reduced part-time basis. This revision
removes an artificial barrier on
individuals’ ability to continue to serve.
In 2010, AmeriCorps established the
four-term limit in the current
regulations to ensure that there would
be opportunities for all interested
Americans to serve because, at the time,
applications for AmeriCorps far
exceeded available positions. See 75 FR
51395, 51406–07 (August 20, 2010). An
excess demand for AmeriCorps
positions no longer exists to justify this
term limit. Even accounting for the
possibility that demand will at some
point exceed the number of AmeriCorps
positions available, the current
regulation’s term limit is too broad a
prohibition. Service terms vary
considerably, encompassing full-time,
part-time, reduced part-time, quarter-
time, and minimum-time terms, as well
as any term from which one exits after
serving 15 percent of the agreed term of
service. Treating each of these terms of
service as equivalent for the purposes of
a term limit is unfair to those who may
have served shorter terms of service but
would like to serve more. Individuals
should be encouraged, rather than
discouraged, from participating in
national service. AmeriCorps believes a
term limit is unnecessary, as there is
already an existing limit to education
awards—a significant incentive for
participation in national service. To
align with this existing limit to
education awards funded by
AmeriCorps, the final rule clarifies that
AmeriCorps will fund benefits (e.g.,
living allowance, financial benefits
during an extended term of disaster-
related service, childcare, and health
care) only up to the number of terms
needed to attain those education
awards.
III. Comments on Proposed Rule and
Responses
AmeriCorps published a proposed
rule with updates to the AmeriCorps
State and National regulations on
October 6, 2023. See 88 FR 69604. In
response, AmeriCorps received 370
comment submissions by the December
5, 2023, comment deadline.
Commenters included national service
associations, State service commissions,
organizations carrying out AmeriCorps
State and National programs, former and
current AmeriCorps members, and
others. Overall, many commenters
stated that they agreed with
modernizing the regulations to make
them more equitable and effective but
asserted that the proposed rule provided
only superficial changes, added
complexity and bureaucracy by relying
on waivers, and would lead to increased
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