§12530. Limitations on uses of funds
(a) Administrative costs
(1) Limitation
Not more than 5 percent of the amount of assistance provided to a State educational agency, Indian tribe, or grantmaking entity that is the original recipient of a grant or allotment under subsection (a), (b), (c), or (d) of section 12524 of this title for a fiscal year may be used to pay for administrative costs incurred by-
(A) the original recipient; or
(B) the entity carrying out the service-learning programs supported with the assistance.
(2) Rules on use
The Chief Executive Officer may by rule prescribe the manner and extent to which-
(A) such assistance may be used to cover administrative costs; and
(B) that portion of the assistance available to cover administrative costs should be distributed between-
(i) the original recipient; and
(ii) the entity carrying out the service-learning programs supported with the assistance.
(b) Capacity-building activities
(1) In general
Except as provided in paragraph (2), not less than 10 percent and not more than 15 percent of the amount of assistance provided to a State educational agency or Indian tribe that is the original recipient of a grant or allotment under subsection (a), (b), (c), or (d) of section 12524 of this title for a fiscal year may be used to build capacity through training, technical assistance, curriculum development, and coordination activities, described in section 12521(a)(1) of this title.
(2) Waiver
The Chief Executive Officer may waive the requirements of paragraph (1) in order to permit an agency or a tribe to use not less than 10 percent and not more than 20 percent of such amount to build capacity as provided in paragraph (1). To be eligible to receive such a waiver such an agency or tribe shall submit an application to the Chief Executive Officer at such time, in such manner, and containing such information as the Chief Executive Officer may require.
(c) Local uses of funds
Funds made available under this subpart may not be used to pay any stipend, allowance, or other financial support to any student who is a participant under this division, except reimbursement for transportation, meals, and other reasonable out-of-pocket expenses directly related to participation in a program assisted under this subpart.
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