Title 42 › Chapter CHAPTER 129— - NATIONAL AND COMMUNITY SERVICE › Subchapter SUBCHAPTER I— - NATIONAL AND COMMUNITY SERVICE STATE GRANT PROGRAM › § 12636
The Corporation can stop, end, or pull approved national service positions tied to a grant or contract if it finds a major failure to follow the rules. It must set rules so suspensions only happen in emergencies and then only in 30-day blocks that total no more than 90 days. Payments or position removals cannot happen unless the recipient gets reasonable notice and a full, fair hearing. Hearings must be held where the recipient can get to them. Hearings are recorded or transcribed, and anyone can look at the record. States may pass laws that help run these programs if those laws agree with these rules. Serving in these programs does not affect a person’s federal student financial aid, except for aid from this program. Any group that gets program money must have a system for handling complaints from participants, unions, or other interested people. Except for fraud or crimes, complaints must be filed within 1 year of the event. A hearing must happen within 30 days of filing, and a decision within 60 days. If a filer loses or no decision comes in 60 days, they can ask for binding arbitration. The parties should pick an independent arbitrator together. If they cannot, the Chief Executive Officer will pick one within 15 days after a request. Arbitration must start within 45 days of the request or within 30 days after the CEO’s pick, and the arbitrator must decide within 30 days of the start. Costs are split, unless a participant, union, or individual wins—then the state or local grantee must pay all costs and the winner’s attorney fees. A placement that is the subject of a complaint cannot happen unless it follows the complaint’s outcome. Available fixes include suspending or ending payments, blocking placements, selecting or reinstating individuals, changing service terms, and, if an employee was displaced, reinstatement, back pay, restored job terms, and other fair relief. Arbitration awards can be enforced in any federal district court.
Full Legal Text
The Public Health and Welfare — Source: USLM XML via OLRC
Legislative History
Reference
Citation
42 U.S.C. § 12636
Title 42 — The Public Health and Welfare
Last Updated
Apr 6, 2026
Release point: 119-73