AUTHORITY TO ESTABLISH AND OPERATE PROGRAMS.

SEC. 301. AUTHORITY TO ESTABLISH AND OPERATE PROGRAMS. (a) Limitation on Grants and Contracts.—Section 122(d) (42 U.S.C. 4992(d)) is amended— (1) by redesignating paragraph (3) as paragraph (4); and (2) by inserting after paragraph (2) the following new paragraph: “(3) After the date of enactment of the Domestic Volunteer Service Act Amendments of 1989, no grant or contract under this part may exceed $250,000.”. (b) Prohibition Against Use of Funds for Certain State Offices.—Section 122 (42 U.S.C. 4992) is amended by adding at the end the following new subsection: “(e) None of the amounts made available under section 501(c) for fiscal year 1990 or subsequent fiscal years may be expended for the purpose of establishing or operating any State office with respect to volunteerism.”.