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Title 42, The Public Health and WelfareRelease 119-110

§12636 Notice, Hearing, and Grievance Procedures

Title 42 › CHAPTER 129 — NATIONAL AND COMMUNITY SERVICE › SUBCHAPTER I — NATIONAL AND COMMUNITY SERVICE STATE GRANT PROGRAM › § 12636

Last updated Sep 22, 2026|Official source

Summary

The Corporation may stop or end payments or take away approved national service job designations when it finds a serious failure to follow the rules of this program. Payments should not be stopped except in emergencies, and emergency suspensions may be for one or more 30-day periods but not more than 90 days total. Payments cannot be ended or designations revoked unless the recipient gets reasonable notice and a chance for a full and fair hearing. Hearings must be held in places convenient for the recipient. A transcript or recording must be made and anyone may inspect it. States may pass laws to run these programs so long as they agree with these rules. The law does not make service performance a condition for getting federal student financial aid, except for aid given under this chapter. Organizations that get program money must have a clear grievance process for participants, labor groups, and others about projects or proposed placements. Except for claims about fraud or crime, grievances must be filed within 1 year of the event. Hearings must be held within 30 days of filing, and a decision must be made within 60 days. If a filer loses or no decision is reached in 60 days, they may ask for binding arbitration. The parties pick an arbitrator together, or the Chief Executive Officer will appoint one within 15 days if they cannot agree. Arbitration must start within 45 days of the request, or within 30 days after the CEO names an arbitrator, and the arbitrator must decide within 30 days after arbitration begins. Costs are shared unless the individual, labor group, or other interested person wins; then the state or local applicant must pay all costs and attorney fees. A placement challenged by a grievance cannot go forward unless it follows the grievance outcome. Allowed remedies include suspending or ending payments, blocking placements, selection or reinstatement of applicants or participants, changes in service terms, and for displaced employees, reinstatement, lost wages and benefits, restored work terms, and other fair relief. Arbitration awards can be enforced in any U.S. district court, no matter the amount or citizenship of the parties.

Full Legal Text

Title 42, §12636

The Public Health and Welfare, Source: USLM XML via OLRC

(a)In general
(1)Suspension of payments
The Corporation may in accordance with the provisions of this subchapter, suspend or terminate payments under a contract or grant providing assistance under this subchapter, or revoke the designation of positions, related to the grant or contract, as approved national service positions, whenever the Corporation determines there is a material failure to comply with this subchapter or the applicable terms and conditions of any such grant or contract issued pursuant to this subchapter.
(2)Procedures to ensure assistance
The Corporation shall prescribe procedures to ensure that—
(A)assistance provided under this subchapter shall not be suspended for failure to comply with the applicable terms and conditions of this subchapter except, in emergency situations, a suspension may be granted for 1 or more periods of 30 days not to exceed a total of 90 days; and
(B)assistance provided under this subchapter shall not be terminated or revoked for failure to comply with applicable terms and conditions of this subchapter unless the recipient of such assistance has been afforded reasonable notice and opportunity for a full and fair hearing.
(b)Hearings
Hearings or other meetings that may be necessary to fulfill the requirements of this section shall be held at locations convenient to the recipient of assistance under this subchapter.
(c)Transcript or recording
A transcript or recording shall be made of a hearing conducted under this section and shall be available for inspection by any individual.
(d)State legislation
Nothing in this subchapter shall be construed to preclude the enactment of State legislation providing for the implementation, consistent with this subchapter, of the programs administered under this subchapter.
(e)Construction
Nothing in this subchapter shall be construed to link performance of service with receipt of Federal student financial assistance, other than assistance provided pursuant to this chapter.
(f)Grievance procedure
(1)In general
An entity that receives assistance under this subchapter shall establish and maintain a procedure for the filing and adjudication of grievances from participants, labor organizations, and other interested individuals concerning projects that receive assistance under this subchapter, including grievances regarding proposed placements of such participants in such projects.
(2)Deadline for grievances
Except for a grievance that alleges fraud or criminal activity, a grievance shall be made not later than 1 year after the date of the alleged occurrence of the event that is the subject of the grievance.
(3)Deadline for hearing and decision
(A)Hearing
A hearing on any grievance conducted under this subsection shall be conducted not later than 30 days after the filing of such grievance.
(B)Decision
A decision on any such grievance shall be made not later than 60 days after the filing of such grievance.
(4)Arbitration
(A)In general
(i)Jointly selected arbitrator (ii) Appointed arbitrator
In the event of a decision on a grievance that is adverse to the party who filed such grievance, or 60 days after the filing of such grievance if no decision has been reached, such party shall be permitted to submit such grievance to binding arbitration before a qualified arbitrator who is jointly selected and independent of the interested parties.
(B)Deadline for proceeding
An arbitration proceeding shall be held not later than 45 days after the request for such arbitration proceeding, or, if the arbitrator is appointed by the Chief Executive Officer in accordance with subparagraph (A)(ii), not later than 30 days after the appointment of such arbitrator.
(C)Deadline for decision
A decision concerning a grievance shall be made not later than 30 days after the date such arbitration proceeding begins.
(D)Cost
(i)In general
Except as provided in clause (ii), the cost of an arbitration proceeding shall be divided evenly between the parties to the arbitration.
(ii)Exception
If a participant, labor organization, or other interested individual described in paragraph (1) prevails under a binding arbitration proceeding, the State or local applicant described in paragraph (1) that is a party to such grievance shall pay the total cost of such proceeding and the attorneys’ fees of such participant, labor organization, or individual, as the case may be.
(5)Proposed placement
If a grievance is filed regarding a proposed placement of a participant in a project that receives assistance under this subchapter, such placement shall not be made unless the placement is consistent with the resolution of the grievance pursuant to this subsection.
(6)Remedies
Remedies for a grievance filed under this subsection include—
(A)suspension of payments for assistance under this subchapter;
(B)termination of such payments;
(C)prohibition of the placement described in paragraph (5);
(D)in a case in which the grievance is filed by an individual applicant or participant—
(i)the applicant’s selection or the participant’s reinstatement, as the case may be; and
(ii)other changes in the terms and conditions of service applicable to the individual; and
(E)in a case in which the grievance involves a violation of subsection (a) or (b) of section 12637 of this title and the employer of the displaced employee is the recipient of assistance under this subchapter—
(i)reinstatement of the displaced employee to the position held by such employee prior to displacement;
(ii)payment of lost wages and benefits of the displaced employee;
(iii)reestablishment of other relevant terms, conditions, and privileges of employment of the displaced employee; and
(iv)such equitable relief as is necessary to correct any violation of subsection (a) or (b) of section 12637 of this title or to make the displaced employee whole.
(7)Enforcement
Suits to enforce arbitration awards under this section may be brought in any district court of the United States having jurisdiction of the parties, without regard to the amount in controversy and without regard to the citizenship of the parties.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsec. (e), was in the original “this Act”, meaning Pub. L. 101–610, Nov. 16, 1990, 104 Stat. 3127, known as the National and Community Service Act of 1990, which is classified principally to this chapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 12501 of this title and Tables.

Amendments

2009—Subsec. (a)(2)(A). Pub. L. 111–13, § 1604(1), substituted “1 or more periods of 30 days not to exceed a total of 90 days” for “30 days”. Subsec. (f)(1). Pub. L. 111–13, § 1604(2)(A), substituted “An entity” for “A State or local applicant”. Subsec. (f)(6)(D), (E). Pub. L. 111–13, § 1604(2)(B), added subpar. (D) and redesignated former subpar. (D) as (E). 1993—Subsec. (a)(1). Pub. L. 103–82, § 402(b)(1), substituted “Corporation” for “Commission” in two places. Pub. L. 103–82, § 116(a)(1), inserted “, or revoke the designation of positions, related to the grant or contract, as approved national service positions,” after “assistance under this subchapter”. Subsec. (a)(2). Pub. L. 103–82, § 402(b)(1), substituted “Corporation” for “Commission” in introductory provisions. Subsec. (a)(2)(B). Pub. L. 103–82, § 116(a)(2), inserted “or revoked” after “terminated”. Subsec. (e). Pub. L. 103–82, § 116(b), inserted before period at end “, other than assistance provided pursuant to this chapter”. Subsec. (f). Pub. L. 103–82, § 116(c), amended subsec. (f) generally, substituting pars. (1) to (6) for former pars. (1) to (6) relating to same subjects and adding par. (7).

Statutory Notes and Related Subsidiaries

Effective Date

of 2009 AmendmentAmendment by Pub. L. 111–13 effective Oct. 1, 2009, see section 6101(a) of Pub. L. 111–13, set out as a note under section 4950 of this title.

Effective Date

of 1993 AmendmentAmendment by section 116 of Pub. L. 103–82 effective Oct. 1, 1993, see section 123 of Pub. L. 103–82, set out as a note under section 1701 of Title 16, Conservation. Amendment by section 402(b)(1) of Pub. L. 103–82 effective Oct. 1, 1993, see section 406(a) of Pub. L. 103–82, set out as a note under section 5061 of this title.

Reference

Citations & Metadata

Citation

42 U.S.C. § 12636

Title 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110