Title 42 › Chapter 129— NATIONAL AND COMMUNITY SERVICE › Subchapter I— NATIONAL AND COMMUNITY SERVICE STATE GRANT PROGRAM › § 12636
The Corporation can stop or cut off grant or contract payments, or remove approved national service positions, if a recipient seriously breaks the rules. Payments may only be paused for emergencies in one or more 30-day blocks, up to 90 days total. Payments or designations cannot be ended unless the recipient gets reasonable notice and a fair hearing. Hearings must be held where they are easy for the recipient to attend. A transcript or recording must be made and anyone can look at it. States may pass laws to carry out these programs so long as those laws match these rules. Federal student aid is not tied to doing service, except aid given under this chapter. Any group that gets help must have a way for participants, labor groups, and other interested people to file complaints about projects or placements. Except for fraud or crime claims, complaints must be filed within 1 year of the problem. A hearing must happen within 30 days of the complaint and a decision within 60 days. If the filer loses or no decision is reached in 60 days, they can ask for binding arbitration with a neutral arbitrator chosen by both sides or appointed by the Chief Executive Officer within 15 days. Arbitration must start within 45 days of the request (or within 30 days after the CEO names an arbitrator) and must be decided within 30 days of the start. Costs are split unless an individual or labor group wins, in which case the state or local grantee pays all costs and lawyers’ fees. A contested placement cannot go forward until the complaint is resolved. Remedies can include pausing or ending payments, blocking placements, reinstating or changing a participant’s service terms, and in displacement cases restoring the employee, paying lost wages and benefits, and other relief. Arbitration awards can be enforced in federal court.
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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 5, 2026
Release point: 119-73not60