ASSISTANCE TO STATE COMMISSIONS; CHALLENGE GRANTS.

SEC. 1305. ASSISTANCE TO STATE COMMISSIONS; CHALLENGE GRANTS. Section 126 (42 U.S.C. 12576) is amended—(1) in subsection (a)—(A) in paragraph (1)—(i) by striking “$125,000 and $750,000” and inserting “$250,000 and $1,000,000”; and(ii) by striking “501(a)(4)” and inserting “501(a)(5)”; and(B) by striking paragraph (2) and inserting the following:“(2) Matching requirement.—In making a grant to a State under this subsection, the Corporation shall require the State to agree to provide matching funds from non-Federal sources of not less than $1 for every $1 provided by the Corporation through the grant.“(3) Alternative.—Notwithstanding paragraph (2), the Chief Executive Officer may permit a State that demonstrates hardship or a new State Commission to meet alternative matching requirements for such a grant as follows:“(A) First $100,000.—For the first $100,000 of grant funds provided by the Corporation, the State involved shall not be required to provide matching funds.“(B) Amounts greater than $100,000.—For grant amounts of more than $100,000 and not more than $250,000 provided by the Corporation, the State shall agree to provide matching funds from non-Federal sources of not less than $1 for every $2 provided by the Corporation, in excess of $100,000.“(C) Amounts greater than $250,000.—For grant amounts of more than $250,000 provided by the Corporation, the State shall agree to provide matching funds from non-Federal sources of not less than $1 for every $1 provided by the Corporation, in excess of $250,000.”;(2) by striking subsection (b) and inserting the following:“(b) Disaster Service.—The Corporation may undertake activities, including activities carried out through part A of title I of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.), to involve programs that receive assistance under the national service laws in disaster relief efforts, and to support, including through mission assignments under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), nonprofit organizations and public agencies responding to the needs of communities experiencing disasters.”; and(3) in subsection (c)—(A) in paragraph (1), by striking “to national service programs that receive assistance under section 121” and 123 STAT. 1501 inserting “to programs supported under the national service laws”; and(B) by striking paragraph (3) and inserting the following:“(3) Amount of assistance.—A challenge grant under this subsection may provide, for an initial 3-year grant period, not more than $1 of assistance under this subsection for each $1 in cash raised from private sources by the program supported under the national service laws in excess of amounts required to be provided by the program to satisfy matching funds requirements. After an initial 3-year grant period, a grant under this subsection may provide not more than $1 of assistance under this subsection for each $2 in cash raised from private sources by the program in excess of amounts required to be provided by the program to satisfy matching funds requirements. The Corporation may permit the use of local or State funds under this paragraph in lieu of cash raised from private sources if the Corporation determines that such use would be equitable due to a lack of available private funds at the local level. The Corporation shall establish a ceiling on the amount of assistance that may be provided to a national service program under this subsection.”.