Home/Federal/Federal Register/2023-13819

Proposed Rule2023-13819

Veteran and Spouse Transitional Assistance Grant Program

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published

July 5, 2023

Issuing agencies

Veterans Affairs Department

Abstract

The Department of Veterans Affairs (VA), as authorized under the Johnny Isakson and David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act of 2020, proposes regulations to establish the Veteran and Spouse Transitional Assistance Grant Program (VSTAGP). VA would establish grant application procedures and evaluative criteria for determining whether to issue funding to eligible organizations providing transition services to former members of the Armed Forces who were separated, retired, or discharged, as well as their spouses.

Full Text

<html>
<head>
<title>Federal Register, Volume 88 Issue 127 (Wednesday, July 5, 2023)</title>
</head>
<body><pre>
[Federal Register Volume 88, Number 127 (Wednesday, July 5, 2023)]
[Proposed Rules]
[Pages 42891-42900]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-13819]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 80

RIN 2900-AR68

Veteran and Spouse Transitional Assistance Grant Program

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Department of Veterans Affairs (VA), as authorized under
the Johnny Isakson and David P. Roe, M.D.

[[Page 42892]]

Veterans Health Care and Benefits Improvement Act of 2020, proposes
regulations to establish the Veteran and Spouse Transitional Assistance
Grant Program (VSTAGP). VA would establish grant application procedures
and evaluative criteria for determining whether to issue funding to
eligible organizations providing transition services to former members
of the Armed Forces who were separated, retired, or discharged, as well
as their spouses.

DATES: Comments must be received on or before August 4, 2023.

ADDRESSES: Comments must be submitted through <a href="http://www.Regulations.gov">www.Regulations.gov</a>.
Except as provided below, comments received before the close of the
comment period will be available at <a href="http://www.Regulations.gov">www.Regulations.gov</a> for public
viewing, inspection, or copying, including any personally identifiable
or confidential business information included in a comment. We post the
comments received before the close of the comment period on the
following website as soon as possible after they have been received:
<a href="http://www.Regulations.gov">www.Regulations.gov</a>. VA will not post on <a href="http://www.Regulations.gov">www.Regulations.gov</a> public
comments that make threats to individuals or institutions or suggest
that the commenter will take actions to harm an individual. VA
encourages individuals not to submit duplicative comments. We will post
acceptable comments from multiple unique commenters even if the content
is identical or nearly identical to other comments. Any public comment
received after the comment period's closing date is considered late and
will not be considered in the final rulemaking.

FOR FURTHER INFORMATION CONTACT: Kenneth Fenner, Program Analyst,
Outreach, Transition and Economic Development, Veterans Benefits
Administration, 1800 G Street SW, Washington, DC 20006; 202-461-9412
(this is not a toll-free telephone number). If you use a
telecommunications device for the deaf (TDD) or a text telephone (TTY),
call the Federal Relay Service (FRS) toll-free at 1-800-877-8339.

SUPPLEMENTARY INFORMATION: Public Law 116-315, the Johnny Isakson and
David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act of
2020 (the Act), was enacted on January 5, 2021. Section 4304 of the
Act, codified at 38 U.S.C. 4100 note, authorizes the Secretary of
Veterans Affairs (SECVA) to establish a grant program and issue grants
to eligible organizations for the provision of transition services to
former members of the Armed Forces who were separated, retired, or
discharged from the Armed Forces, and spouses of such former members.
SECVA delegated authority for implementing section 4304 to the Office
of Outreach, Transition and Economic Development (OTED) within VA's
Veterans Benefits Administration. VA proposes to amend its regulations
by adding Sec. Sec. 80.1 through 80.17 of title 38 CFR to implement
this new grant authority.
According to the U.S. Department of Labor's Transition Assistance
Program, approximately 200,000 men and women leave U.S. military
service and return to civilian life each year. This process is known as
the military-to-civilian transition. In a study published in 2015, more
than 8,500 Veterans, active-duty Service members, National Guard and
Reserve members, and military dependents identified their most
significant transition challenges as:
<bullet> Navigating VA programs, benefits, and services (60%);
<bullet> Finding a job (55%);
<bullet> Adjusting to civilian culture (41%);
<bullet> Addressing financial challenges (40%); and
<bullet> Applying military-learned skills to civilian life
(39%).\1\
---------------------------------------------------------------------------

\1\ Zoli, C., Maury, R., & Fay, D. (2015). Missing perspectives:
Servicemembers' transition from service to civilian life. <a href="https://surface.syr.edu/ivmf/7/">https://surface.syr.edu/ivmf/7/</a>.
---------------------------------------------------------------------------

While a plethora of services exist to assist former Service members
with their post-military transition, barriers persist limiting
Veterans' ability to use them effectively.\2\ A 2021 survey conducted
by the George W. Bush Institute found that 55% of Veterans ``who needed
but did not receive employment services did not know how to access
them,'' and roughly a third of Veterans ``who needed but did not
receive education benefits did not know how to access them.'' \3\
Furthermore, there is a need to more specifically address the post-
discharge needs of unique subgroups. For example, most existing
transition-related literature focuses on male Veterans' experience, yet
based on a national survey conducted in 2019, only 12% of women
Veterans reported satisfaction with available resources.
---------------------------------------------------------------------------

\2\ Morgan et al. (2020). Reducing barriers to post-9/11
veterans' use of programs and services as they transition to
civilian life. BMC Health Services Research 20, 525. <a href="https://doi.org/10.1186/s12913-020-05320-4">https://doi.org/10.1186/s12913-020-05320-4</a>.
\3\ George W. Bush Institute. (2021). Stand-To 2021: Advancing
Veteran Employment, Education, & Health and Well-Being. <a href="https://gwbcenter.imgix.net/Resources/gwb-ivmf-stand-to-2021.pdf">https://gwbcenter.imgix.net/Resources/gwb-ivmf-stand-to-2021.pdf</a>.
---------------------------------------------------------------------------

To assist VSTAGP participants in addressing these challenges and in
response to section 4304 of the Act, Outreach, Transition, and Economic
Development (OTED) would issue grants to eligible organizations to
provide transition services to former members of the Armed Forces who
were separated, retired, or discharged, as well as their spouses.
VSTAGP is intended to be a workforce program providing intensive
client-centered case management services tailored to the unique
employment needs of program participants. In this respect, VSTAGP will
compliment other workforce programs and will assist Veterans and their
spouses with navigating numerous transitional resources. VA proposes to
accept applications from organizations that can determine a definitive
need for the project in a defined service delivery area, such as those
currently providing transition services and organizations desiring to
provide transition services. Allowable transition services could
include resume assistance, interview training, job recruitment training
and related services that would result in a successful transition as
determined by the Secretary. Related services would include, but are
not limited to, employment placement services, employment education
and/or training and employment referrals. To the extent feasible,
services should be informed by existing evidence on effective
approaches to supporting the transition, including research on
evidence-based workforce development approaches.
Applications for VSTAGP funding proposals must clearly show through
a comprehensive and coherent narrative how they will place program
participants into jobs that are meaningful and sustainable. Successful
applicants must describe their overall approach and strategy for
providing a set of employment services leading to the successful
transition of members of the U.S. Armed Forces who are separated,
retired, or discharged, as well as their spouses. The strategy must
include procedures for outreach, assessment, intake and follow-up
services that enhance transition, as well as any other anticipated
outcome. Applicants must also identify and fully describe the support
services that will be provided to participants as part of the
applicant's strategy to promote, prepare and improve the participant's
transition. A participant flow chart, Gantt chart or similar graphic to
show the sequence and mix of services is also required. Examples of
historically successful placement strategies are on-the-job

[[Page 42893]]

training (OJT), registered apprenticeship, pre-arranged placements,
direct hire, collaboration with temporary to permanent agencies and
partnerships with trade schools that guarantee high permanent
employment placement rates. Further, applicants must include detailed
budgets for their proposed project to include a concise narrative to
support the budget request. Applicants must propose a budget that
supports the targeted population, the service delivery area(s) and the
Veterans and spouses to be served.
Awarded programs will be expected to conduct outreach, intake and
assessment, employment training, job placement, and employment
retention services.
Proposed Sec. 80.1 would set forth the purpose of VSTAGP, as noted
above. As this is a new VA authority, we propose to define terms in
Sec. 80.2 that would be referenced in Sec. Sec. 80.1 through 80.17.
For the ``eligible recipient (organization)'' definition, we propose to
list various entities that currently are providing or may desire to
provide transition services described in section 4304(b) of the Act and
then provide more specific definitions of the listed entities (a list
of entity definitions can be found on pages 27-30). We also propose to
define the term ``participant'' as a former member of the U.S. Armed
Forces who was separated, retired, or discharged from the U.S. Armed
Forces or spouse of such former member who receives services for which
a VSTAGP grant is awarded.
In Sec. 80.3, we would provide general information about VSTAGP
grants. For example, Sec. 80.3(b) would state that the maximum amount
of a grant award to a grantee and the total maximum amount available
for all grants would be specified in the Notice of Funding Opportunity
(NOFO). Section 80.3(d) would clarify that an eligible entity may
receive only one VSTAGP grant and that VA would award only one VSTAGP
grant in any one location as specified in the NOFO. Section 80.3(e)
would provide that a VSTAGP grant would be awarded for a maximum period
of 5 years. Section 80.3(f) would note the statutory funds matching
requirement for grantees, and Sec. 80.3(g) would prohibit a grantee
from charging fees to a participant or requiring a participant to
participate in other activities sponsored by the grantee.
VA would publish at <a href="http://www.grants.gov">www.grants.gov</a> a NOFO that would include the
grant application and other requirements. The Office of Management and
Budget (OMB) requires the issuance of a NOFO and publication of other
information to ensure that eligible organizations have the information
required to apply for grants. Proposed Sec. 80.4 would set out certain
provisions that would be included in a NOFO which is also required per
appendix I to 2 CFR part 200--Full Text of the Notice of Funding
Opportunity, including instructions on how interested parties could
apply for a grant. At a minimum, the NOFO will include application
filing requirements, scoring criteria, deadlines for submission,
estimates of the total available funding, the maximum funding available
to a single grantee, a description of eligible entities or other
eligibility requirements necessary to receive the grant and a
description of the program including the program goals and objectives,
a reference to the relevant Assistance Listings, and a description of
how the award will contribute to the achievement of the program's goals
and objectives. These components are consistent with 2 CFR 200.203,
which requires the issuance of a NOFO that includes information
describing the funding opportunity, eligible organizations, application
submission and review, and Federal award administration requirements.
Additional information in a NOFO would include cost sharing or matching
information, priority preferences, description of allowable uses/
activities, timeframes and manner of grant payments, reporting
requirements, evaluation criteria, and other information commonly
utilized in Federal grant programs that VA deems necessary for the
application process.
We propose to describe in Sec. 80.5 that, to apply for a VSTAGP
grant, an applicant must submit a complete grant application package as
described in a NOFO posted at <a href="http://www.grants.gov">www.grants.gov</a>. An applicant may need to
provide a well-articulated project narrative that describes proposed
program services that would best address the scope of the NOFO. The
content that may be required in the narrative may have to describe
program design (including outreach), recruitment and engagement plans,
assessments process, identify any local area network service providers
and address the applicant's ability and capacity to administer the
grant.
In selecting awardees, VA will want to consider an applicant's
experience with similar programs as defined by the NOFO or related work
in that particular field or subject matter. Applicants will need to
propose a budget of costs and proposed expenditures. Other budgetary
requirements may be included in the NOFO. These disclosures will help
VA to more fully assess the extent to which an applicant has considered
all aspects of planning and the likelihood of successful completion of
grant objectives. Because grants awarded under this program require
cost-sharing or matching funds, an applicant will have to provide
evidence of secured cash matching funds from non-Federal sources that
are at least equal to Federal grant funds awarded by VA or an
explanation of the applicant's ability to secure commitments to receive
such funding. In this section, VA also proposes a catch-all provision
to allow for flexibility in assessing proposed budget narrative to
including matching fund requirements that would be published in the
NOFO. Applicants, whether successful or not, would not be entitled to
reimbursement of pre-award costs.
As proposed under Sec. 80.7, VA would review completed grant
applications, as described in the NOFO. Applications would have to be
submitted on time and meet the minimum application and other NOFO
requirements. The NOFO would include information about the scoring
process and clarify the minimum point totals per scoring category that
an applicant must receive to be considered for a grant. Proposed Sec.
80.7(b) would explain how VA would score and rank the grant applicants
and select grant recipients. VA would rate all grant applications
against each other to determine the likelihood of successful
implementation of the grant program published in the NOFO and would
consider other factors, as explained in Sec. 80.6, when evaluating an
applicant's qualifications for the grant award. Factors such as an
applicant's past performance on a prior award, an applicant's fiscal
integrity, or risk assessments are examples of other considerations
that would affect VA's scoring of grant applications. VA would conduct
a risk assessment prior to issuing VSTAGP awards. The results of this
pre-award risk assessment would be used to determine if specific terms
and conditions are needed upon award. Grants would be awarded based on
a competitive application process. Section 4304 provides priority
preferences for organizations that either (1) provide multiple forms of
services, or (2) are located in a State with (a) a high rate of
unemployment among Veterans; (b) a high rate of usage of unemployment
benefits for recently separated members of the Armed Forces; or (c) a
labor force or economy that has been significantly impacted by a
covered public health emergency. Any grant made would have to be
matched by the recipient organization with funds at least equal to the
funds awarded by VA.
As proposed under Sec. 80.8, VA may approve VSTAGP grant
applications in whole or in part subject to conditions

[[Page 42894]]

VA deems necessary to ensure full flexibility in meeting Departmental
or programmatic goals as identified in the NOFO. VA may also disapprove
an application because it does not rank sufficiently high in relation
to other applications. Further, VA may defer action on applications for
reasons that require further review or additional time to meet grant
requirements, such as lack of funds. In all instances, VA would convey
decisions in writing to applicants on all grant submissions. As noted,
under proposed Sec. 80.17, VA application decisions are discretionary
and are not subject to appeal.
VA proposes to include a withdrawal provision in Sec. 80.9.
Applicants would be able to submit a request in writing to the VA point
of contact specified in the published NOFO to withdraw their
application from consideration. Applicants should provide a rationale
for the withdrawal request.
For grant awards, VA proposes in Sec. 80.10 to memorialize the
awards in an agreement, in accordance with the terms set out in Sec.
80.10 and in the NOFO. As a condition of receiving a VSTAGP grant,
grantees and grantee subrecipients (e.g., contractors and other
entities utilized by a grantee to execute grant requirement), would
have to agree to operate their programs in accordance with VA
regulations in proposed Sec. Sec. 80.1 through 80.17, Federal
regulations in 2 CFR part 200 and parts 25 and 170, if applicable, the
information provided in the grant application, and the terms of the
grant agreement. Part 200 provides uniform guidance and government-wide
terms and conditions for the management of awards and the
administration of Federal grants. This rulemaking provides additional
guidance and conditions specifically for administering VSTAGP grants.
Adherence to the government-wide rules would be mandatory, and
compliance with the additional rules specific to VSTAGP grants would
ensure program integrity across all VSTAGP grants and VA awards.
Pursuant to proposed Sec. 80.10(b)(3), included among those terms
would be the grantees' compliance with recordkeeping and reporting
requirements provided in proposed Sec. 80.16 and as specified in the
Terms and Conditions section of the grant agreement. Under proposed
Sec. 80.12, within 120 days after the last day of the grant period,
grantees would have to submit a final report to VA that meets the
requirements set forth in the NOFO.
Additionally, upon execution of the grant agreement, VA would
obligate grant funds, as provided in proposed Sec. 80.11, to the
extent such costs are authorized by VA in the NOFO or the grant
agreement or authorized subsequently by VA in writing, should the need
arise.
As proposed in Sec. 80.13(a), VA may terminate a grant agreement
if a grantee does not comply with the terms of the grant agreement.
Under proposed Sec. 80.13(b), if VA determines that recovery of funds
is necessary for violations of the grant agreement or unauthorized use
of grant funds, VA would notify grantees in writing of the intent to
recover grant funds. Grantees would have 30 days to submit
documentation refuting the proposed recovery, which VA would review for
a final determination. If VA makes a final decision that action would
be taken to recover grant funds from the grantee, VA would stop further
payments of grant funds under this part until the grant funds are
recovered and the condition that led to the decision to recover grant
funds has been resolved, unless the grant agreement has been
terminated. If the grant agreement has been terminated, no future
payments would be issued upon recovery. VA believes these measures
would help safeguard Federal funds and ensure the appropriate use of
the VSTAGP grant funds awarded.
As part of VA's duty to ensure fiscal responsibility, VA proposes
in Sec. 80.14 to conduct site visits to grantee locations to review
grantee accomplishments and management control systems. In addition, VA
may conduct, as needed, inspections of grantee records to determine
compliance with the provisions of this part. All visits and evaluations
would be performed with minimal disruption to the grantee to the extent
practicable. Further, as proposed in Sec. 80.15, VA would enforce 2
CFR part 200 regulations to ensure all VSTAGP grant recipients comply
with the requirements of the Single Audit Act of 1996 and use a
compliant financial management system based on OMB cost principles. As
proposed in Sec. 80.16, grantees would have to produce, upon VA's
request, records maintained in accordance with 2 CFR 200.337.

Executive Orders 12866, 13563 and 14094

Executive Order 12866 (Regulatory Planning and Review) directs
agencies to assess the costs and benefits of available regulatory
alternatives and, when regulation is necessary, to select regulatory
approaches that maximize net benefits (including potential economic,
environmental, public health and safety effects, and other advantages;
distributive impacts; and equity). Executive Order 13563 (Improving
Regulation and Regulatory Review) emphasizes the importance of
quantifying both costs and benefits, reducing costs, harmonizing rules,
and promoting flexibility. Executive Order 14094 (Executive Order on
Modernizing Regulatory Review) supplements and reaffirms the
principles, structures, and definitions governing contemporary
regulatory review established in Executive Order 12866 of September 30,
1993 (Regulatory Planning and Review), and Executive Order 13563 of
January 18, 2011 (Improving Regulation and Regulatory Review). The
Office of Information and Regulatory Affairs has determined that this
rulemaking is a significant regulatory action under Executive Order
12866, as amended by Executive Order 14094. The Regulatory Impact
Analysis associated with this rulemaking can be found as a supporting
document at www.regulations.gov.

Regulatory Flexibility Act

The Secretary hereby certifies that this proposed rule would not
have a significant economic impact on a substantial number of small
entities as they are defined in the Regulatory Flexibility Act (5
U.S.C. 601-612). Receiving or not receiving a grant is unlikely to have
a significant economic impact on small entity applicants. Therefore,
pursuant to 5 U.S.C. 605(b), the initial and final regulatory
flexibility analysis requirements of 5 U.S.C. 603--604 do not apply.

Unfunded Mandates

The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C.
1532, that agencies prepare an assessment of anticipated costs and
benefits before issuing any rule that may result in the expenditure by
State, local and tribal governments, in the aggregate or by the private
sector, of $100 million or more (adjusted annually for inflation) in
any one year. This proposed rule would have no such effect on State,
local and tribal governments or on the private sector.

Paperwork Reduction Act

This proposed rule contains provisions constituting new collections
of information under the provisions of the Paperwork Reduction Act of
1995 (44 U.S.C. 3501-3521) that require approval by OMB. Accordingly,
under 44 U.S.C. 3507(d), VA has submitted a copy of this rulemaking
action to OMB for review and approval.
OMB assigns control numbers to collections of information it
approves. VA may not conduct, or sponsor, and a person is not required
to respond to, a

[[Page 42895]]

collection of information unless it displays a currently valid OMB
control number. Proposed 38 CFR 80.5, 80.12 and 80.16 contain
collections of information under the Paperwork Reduction Act of 1995.
If OMB does not approve the collections of information as requested, VA
will immediately remove the provisions containing collections of
information or take other action as directed by OMB.
Comments on the new collections of information contained in this
rulemaking should be submitted through <a href="http://www.Regulations.gov">www.Regulations.gov</a>. Comments
should indicate that they are submitted in response to ``RIN 2900-
AR68--Veteran Transitional Assistance Grant Program'' and should be
sent within 30 days of publication of this rulemaking. The collections
of information associated with this rulemaking can be viewed at:
<a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>.
OMB is required to make a decision concerning the collections of
information contained in this proposed rule between 30 and 60 days
after the publication of this document in the Federal Register.
Therefore, a comment to OMB is best assured of having its full effect
if OMB receives it within 30 days of publication. This does not affect
the deadline for the public to comment on the proposed rule. Notice of
OMB approval for this information collection will be published in a
future Federal Register document.
The Department considers comments by the public on proposed
collections of information in:
<bullet> Assessing whether the proposed collections of information
are necessary for the proper performance of the functions of the
Department, including whether the information will have practical
utility;
<bullet> Assessing the accuracy of the Department's estimate of the
burden of the proposed collections of information, including the
validity of the methodology and assumptions used;
<bullet> Enhancing the quality, usefulness, and clarity of the
information to be collected; and
<bullet> Minimizing the burden of the collections of information on
those who are to respond, including through the use of appropriate
automated, electronic, mechanical, or other technological collection
techniques or other forms of information technology, such as permitting
electronic submission of responses.
The collections of information contained in 38 CFR 80.5, 80.12 and
80.16 are described immediately following this paragraph.

Title: SF-424 Application for Federal Assistance.
OMB Control No: 2900-8080

<bullet> Summary of collection of information: The new collection
of information in proposed 38 CFR 80.5 would require VSTAGP grant
applicants to submit the SF-424 as a minimum requirement to qualify for
a VSTAGP grant.
<bullet> Description of the need for information and proposed use
of information: The collection of information would be necessary to
determine applicant eligibility for a VSTAGP grant. VA would use this
information to score completed grant applications.
<bullet> Description of likely respondents: Eligible recipients, as
defined in proposed Sec. 80.2, that are interested in applying for a
VSTAGP grant.
<bullet> Estimated number of respondents: 200 per year.
<bullet> Estimated frequency of responses: Annually.
<bullet> Estimated average burden per response: 1 hour.
<bullet> Estimated total annual reporting and recordkeeping burden:
1 hour.
<bullet> Estimated annual cost to respondents for the hour burdens
for collections of information: According to the U.S. Bureau of Labor
Statistics Mean Hourly Earnings, the cost to each respondent would be
$28.01, making the total cost for respondents an estimated $5,602.00
(200 respondents x 1 burden hour x $28.01 per hour). (Source: May 2021
BLS National Occupational Employment and Wage Estimates, Code: 00-0000,
All Occupations: <a href="https://www.bls.gov/oes/current/oes_nat.htm#00-0000">https://www.bls.gov/oes/current/oes_nat.htm#00-0000</a>).
<bullet> Estimated cost to the Federal Government: There is no
projected incremental increase in the cost burden to the Federal
Government with the requirement of the SF-424, Application for Federal
Assistance. OTED currently has existing personnel, systems, and
processes (or other resources) in place to receive and review their
grant applications. Any additional cost for agency system development,
maintenance, and enhancements should not be attributed to the use of
SF-424, and therefore its use is not expected to alter annualized
Federal costs.

Title: SF-424A Budget Information--Non-Construction Programs
OMB Control No: 4040-0006

<bullet> Summary of collection of information: The new collection
of information in proposed 38 CFR 80.5 would require VSTAGP grant
applicants to submit the SF-424A as a minimum requirement to qualify
for a VSTAGP grant.
<bullet> Description of the need for information and proposed use
of information: The collection of information would be necessary to
determine applicant eligibility for a VSTAGP grant, to document
proposed costs, and to determine allowability of proposed costs. VA
would use this information to score completed grant applications and
for general management of VSTAGP awards.
<bullet> Description of likely respondents: Eligible recipients, as
defined in proposed Sec. 80.2, that are interested in applying for a
VSTAGP grant.
<bullet> Estimated number of respondents: 200 per year.
<bullet> Estimated frequency of responses: Annually.
<bullet> Estimated average burden per response: 3 hours.
<bullet> Estimated total annual reporting and recordkeeping burden:
3 hours.
<bullet> Estimated annual cost to respondents for the hour burdens
for collections of information: According to the U.S. Bureau of Labor
Statistics Mean Hourly Earnings, the cost to each respondent would be
$84.03, making the total cost for respondents an estimated $16,806.00
(200 respondents x 3 burden hours x $28.01 per hour). (Source: May 2021
BLS National Occupational Employment and Wage Estimates, Code: 00-0000,
All Occupations: <a href="https://www.bls.gov/oes/current/oes_nat.htm#00-0000">https://www.bls.gov/oes/current/oes_nat.htm#00-0000</a>).
<bullet> Estimated cost to the Federal Government: There is no
projected incremental increase in the cost burden to the Federal
Government with the requirement of the SF-424A, Budget Information--
Non-Construction Programs. OTED currently has existing personnel,
systems, and processes (or other resources) in place to receive and
review their grant applications. Any additional cost for agency system
development, maintenance, and enhancements should not be attributed to
the use of the SF-424A, and therefore its use is not expected to alter
annualized Federal costs.

Title: 4040-0010 Project/Performance Site Location(s)
OMB Control No: 4040-0010

<bullet> Summary of collection of information: The new collection
of information in proposed 38 CFR 80.5 would require VSTAGP grantees to
submit the primary location and any other locations where project
activity would occur.
<bullet> Description of the need for information and proposed use
of information: The collection of information would be necessary to
ensure adequate geographic coverage.

[[Page 42896]]

<bullet> Description of likely respondents: Eligible recipients, as
defined in proposed Sec. 80.2, that are interested in applying for a
VSTAGP grant.
<bullet> Estimated number of respondents: 200 per year.
<bullet> Estimated frequency of responses: Annually.
<bullet> Estimated average burden per response: 5 minutes.
<bullet> Estimated total annual reporting and recordkeeping burden:
5 minutes.
<bullet> Estimated annual cost to respondents for the hour burdens
for collections of information: According to the U.S. Bureau of Labor
Statistics Mean Hourly Earnings, the cost to each respondent would be
$2.33, making the total cost for respondents an estimated $466.83 (200
respondents x ((5 burden minutes x $28.01 per hour)/60 minutes)).
(Source: May 2021 BLS National Occupational Employment and Wage
Estimates, Code: 00-0000, All Occupations: <a href="https://www.bls.gov/oes/current/oes_nat.htm#00-0000">https://www.bls.gov/oes/current/oes_nat.htm#00-0000</a>).
<bullet> Estimated cost to the Federal Government: There is no
projected incremental increase in the cost burden to the Federal
Government with the requirement of the 4040-0010 Project/Performance
Site Location(s). OTED currently has existing personnel, systems, and
processes (or other resources) in place to receive and review their
grant applications. Any additional cost for agency system development,
maintenance, and enhancements should not be attributed to the use of
form 4040-0010 Project/Performance Site Location(s), and therefore its
use is not expected to alter annualized Federal costs.
Title: 4040-0013 Certification Regarding Lobbying
OMB Control No: 4040-0013

<bullet> Summary of collection of information: The new collection
of information in proposed 38 CFR 80.5 would require VSTAGP applicants
to submit the Certification Regarding Lobbying form if requesting an
award greater than $100,000.
<bullet> Description of the need for information and proposed use
of information: The collection of information would be necessary for
applicants to attest to the certifications regarding lobbying. This
collection may not be required of every applicant.
<bullet> Description of likely respondents: Eligible recipients, as
defined in proposed Sec. 80.2, that are interested in applying for a
VSTAGP grant.
<bullet> Estimated number of respondents: 198 per year.
<bullet> Estimated frequency of responses: Annually.
<bullet> Estimated average burden per response: 15 minutes.
<bullet> Estimated total annual reporting and recordkeeping burden:
15 minutes.
<bullet> Estimated annual cost to respondents for the hour burdens
for collections of information: According to the U.S. Bureau of Labor
Statistics Mean Hourly Earnings, the cost to each respondent would be
$7.00, making the total cost for respondents an estimated $1,386.49
(198 respondents x ((15 burden minutes x $28.01 per hour)/60 minutes)).
(Source: May 2021 BLS National Occupational Employment and Wage
Estimates, Code: 00-0000, All Occupations: <a href="https://www.bls.gov/oes/current/oes_nat.htm#00-0000">https://www.bls.gov/oes/current/oes_nat.htm#00-0000</a>).
<bullet> Estimated cost to the Federal Government: There is no
projected incremental increase in the cost burden to the Federal
Government with the requirement of the 4040-0013 Certification
Regarding Lobbying. OTED currently has existing personnel, systems, and
processes (or other resources) in place to receive and review grant
applications. Any additional cost for agency system development,
maintenance, and enhancements should not be attributed to the use of
4040-0013 Certification Regarding Lobbying, and therefore its use is
not expected to alter annualized Federal costs.

Title: Quarterly Performance Reports (IT instrument)
OMB Control No: 2900-xxxx (New/TBD)

<bullet> Summary of collection of information: The new collection
of information in proposed 38 CFR 80.12 would require VSTAGP grantees
to submit quarterly performance reports.
<bullet> Description of the need for information and proposed use
of information: The collection of information would be necessary to
monitor grantee performance and document the success of the program.
<bullet> Description of likely respondents: Grantees.
<bullet> Estimated number of respondents: 10 per year.
<bullet> Estimated frequency of responses: Quarterly.
<bullet> Estimated average burden per response: 1 hour per quarter.
<bullet> Estimated total annual reporting and recordkeeping burden:
4 hours.
<bullet> Estimated annual cost to respondents for the hour burdens
for collections of information: According to the U.S. Bureau of Labor
Statistics Mean Hourly Earnings, the cost to each respondent would be
$112.04, making the total cost for respondents an estimated $1,120.40
(10 respondents x 4 burden hours x $28.01 per hour). (Source: May 2021
BLS National Occupational Employment and Wage Estimates, Code: 00-0000,
All Occupations: <a href="https://www.bls.gov/oes/current/oes_nat.htm#00-0000">https://www.bls.gov/oes/current/oes_nat.htm#00-0000</a>).
<bullet> Estimated cost to the Federal Government: There is no
projected incremental increase in the cost burden to the Federal
Government with the requirement of the Quarterly Performance Reports
(IT instrument). OTED currently has existing personnel, systems, and
processes (or other resources) in place to receive and review grant
applications. Any additional cost for agency system development,
maintenance, and enhancements should not be attributed to the use of
Quarterly Performance Reports (IT instrument), and therefore its use is
not expected to alter annualized Federal costs.

Title: SF-425 Federal Financial Report
OMB Control No: 4040-0014

<bullet> Summary of collection of information: The new collection
of information in proposed 38 CFR 80.12 would require VSTAGP grantees
to submit quarterly financial reports to assess financial expenditure
compliance under this grant program.
<bullet> Description of the need for information and proposed use
of information: The collection of information would be necessary to
monitor grantee compliance with financial requirements.
<bullet> Description of likely respondents: Grantees.
<bullet> Estimated number of respondents: 10 per year.
<bullet> Estimated frequency of responses: Quarterly.
<bullet> Estimated average burden per response: 1 hour per quarter.
<bullet> Estimated total annual reporting and recordkeeping burden:
4 hours.
<bullet> Estimated annual cost to respondents for the hour burdens
for collections of information: According to the U.S. Bureau of Labor
Statistics Mean Hourly Earnings, the cost to each respondent would be
$112.04, making the total cost for respondents an estimated $1,120.40
(10 respondents x 4 burden hours x $28.01 per hour). (Source: May 2021
BLS National Occupational Employment and Wage Estimates, Code: 00-0000,
All Occupations: <a href="https://www.bls.gov/oes/current/oes_nat.htm#00-0000">https://www.bls.gov/oes/current/oes_nat.htm#00-0000</a>).
<bullet> Estimated cost to the Federal Government: There is no
projected incremental increase in the cost burden to the Federal
Government with the requirement of the SF-425 Federal Financial Report.
OTED currently has existing personnel, systems, and

[[Page 42897]]

processes (or other resources) in place to receive and review grant
applications. Any additional cost for agency system development,
maintenance, and enhancements should not be attributed to the use of
SF-425 Federal Financial Report, and therefore its use is not expected
to alter annualized Federal costs.

Title: Additional Reports (IT instrument)
OMB Control No: 2900-xxxx (New/TBD)

<bullet> Summary of collection of information: The new collection
of information in proposed 38 CFR 80.12 would require VSTAGP grantees
to provide additional performance reports, as needed, to assess the
provisions of services under this grant program.
<bullet> Description of the need for information and proposed use
of information: The collection of information would be necessary to
assess project accountability and effectiveness.
<bullet> Description of likely respondents: Grantees.
<bullet> Estimated number of respondents: 10.
<bullet> Estimated frequency of responses: Once.
<bullet> Estimated average burden per response: 1 hour.
<bullet> Estimated total annual reporting and recordkeeping burden:
1 hour.
<bullet> Estimated annual cost to respondents for the hour burdens
for collections of information: According to the U.S. Bureau of Labor
Statistics Mean Hourly Earnings, the cost to each respondent would be
$28.01, making the total cost for respondents an estimated $280.10 (10
respondents x 1 burden hour x $28.01 per hour). (Source: May 2021 BLS
National Occupational Employment and Wage Estimates, Code: 00-0000, All
Occupations: <a href="https://www.bls.gov/oes/current/oes_nat.htm#00-0000">https://www.bls.gov/oes/current/oes_nat.htm#00-0000</a>).
<bullet> Estimated cost to the Federal Government: There is no
projected incremental increase in the cost burden to the Federal
Government with the requirement of the Additional Reports (IT
instrument). OTED currently has existing personnel, systems, and
processes (or other resources) in place to receive and review grant
applications. Any additional cost for agency system development,
maintenance, and enhancements should not be attributed to the use of
Additional Reports (IT instrument), and therefore its use is not
expected to alter annualized Federal costs.

Title: Recordkeeping
OMB Control No: 2900-xxxx (New/TBD)

<bullet> Summary of collection of information: The new collection
of information in proposed 38 CFR 80.16 would require VSTAGP records to
be maintained. VA officials are entitled access to any documents,
papers, or other records which are pertinent to the VSTAGP award for
audits, examinations, excerpts, and transcripts. This also includes
timely and reasonable access to VSTAGP personnel for interviews and
discussions related to such documents.
<bullet> Description of the need for information and proposed use
of information: The collection of information would be necessary to
access project records.
<bullet> Description of likely respondents: Grantees.
<bullet> Estimated number of respondents: 10.
<bullet> Estimated frequency of responses: Annually.
<bullet> Estimated average burden per response: 1 hour.
<bullet> Estimated total annual reporting and recordkeeping burden:
1 hour.
<bullet> Estimated annual cost to respondents for the hour burdens
for collections of information: According to the U.S. Bureau of Labor
Statistics Mean Hourly Earnings, the cost to each respondent would be
$28.01, making the total cost for respondents an estimated $280.10 (10
respondents x 1 burden hour x $28.01 per hour). (Source: May 2021 BLS
National Occupational Employment and Wage Estimates, Code: 00-0000, All
Occupations: <a href="https://www.bls.gov/oes/current/oes_nat.htm#00-0000">https://www.bls.gov/oes/current/oes_nat.htm#00-0000</a>).
<bullet> Estimated cost to the Federal Government: There is no
projected incremental increase in the cost burden to the Federal
Government as a result of this requirement. OTED currently has existing
personnel, systems, and processes (or other resources) in place to
receive and review their grant applications. Any additional cost for
agency system development, maintenance, and enhancements should not be
attributed to Recordkeeping, and therefore its use is not expected to
alter annualized Federal costs.

Assistance Listing

The Assistance Listing number and title for the program affected by
this document is 64.058, Veteran Transitional Assistance Grant Program.

List of Subjects in 38 CFR Part 80

Administrative practice and procedure, Armed forces, Employment,
Grant programs--veterans, Reporting and recordkeeping requirements,
Transition, Veterans.

Signing Authority

Denis McDonough, Secretary of Veterans Affairs, approved and signed
this document on May 3, 2023, and authorized the undersigned to sign
and submit the document to the Office of the Federal Register for
publication electronically as an official document of the Department of
Veterans Affairs.

Jeffrey M. Martin,
Assistant Director, Office of Regulation Policy & Management, Office of
General Counsel, Department of Veterans Affairs.

For the reasons stated in the preamble, VA proposes to amend title
38 by adding part 80 as set forth below:

PART 80--VETERAN TRANSITIONAL ASSISTANCE GRANT PROGRAM

Sec.
80.1 Purpose and use of grant funds.
80.2 Definitions.
80.3 Grants--general.
80.4 Notice of Funding Opportunity (NOFO).
80.5 Applications.
80.6 Additional factors for selecting applications.
80.7 Scoring and selection.
80.8 Disposition of applications.
80.9 Withdrawal of grant application.
80.10 Grant agreement.
80.11 Payments under the grant.
80.12 Grantee reporting requirements.
80.13 Termination of grant; recovery of funds.
80.14 Compliance review requirements.
80.15 Financial management.
80.16 Recordkeeping.
80.17 Non-appealability of grant award decisions.

Authority: 38 U.S.C. 501, 512; Pub. L. 116-315, sec. 4304.

Sec. 80.1 Purpose and use of grant funds.

Sections 80.1 through 80.17 establish the Veteran Transitional
Assistance Grant Program (VSTAGP). Under this program, VA may provide
grants to eligible organizations defined in Sec. 80.2 to provide
transition services and intensive client centered case management
services tailored to the unique employment needs of program
participants to include, but not limited to such services, such as
resume assistance, interview training, job recruitment training and
related services, that will help in a successful transition from
military to civilian life.

(Authority: Pub. L. 116-315, sec. 4304)

Sec. 80.2 Definitions.

For purposes of this part and any Notice of Funding Opportunity
(NOFO) issued pursuant to this part:
(a) Applicant means an eligible organization that submits an
application

[[Page 42898]]

for a VSTAGP grant as announced in a NOFO.
(b) Eligible recipient (organization) means one of the following:
(1) State government;
(2) County government;
(3) Local government;
(4) Institution of Higher Education;
(5) Indian/Native American tribal government (Federally
recognized);
(6) Nonprofit organization; or
(7) Faith-based organization;
(c) State government means any of the fifty States of the United
States, the District of Columbia, the Commonwealth of Puerto Rico, any
territory or possession of the United States, or any agency or
instrumentality of a State government.
(d) County government means a county government entity or any
corresponding unit of government under any other name in States that do
not have county organizations and, in those States in which the county
government does not have jurisdiction over highways, any local
government unit vested with jurisdiction over local highways.
(e) Local government means a government entity for a county;
borough; municipality; city; town; township; parish; local public
authority (including any public housing agency under the United States
Housing Act of 1937); special district; school district; intrastate
district; council of governments, whether or not incorporated as a
nonprofit corporation under state law; and any other agency or
instrumentality of a multi-regional, intra-State or local government.
(f) Institution of Higher Education (IHE) means a public or private
educational institution that provides an educational program for which
the institution awards a bachelor's degree or provides not less than a
2-year program that is acceptable for full credit toward such a degree,
or awards a degree that is acceptable for admission to a graduate or
professional degree program, subject to review and approval by the
Secretary and is accredited by a nationally recognized accrediting
agency or association, or if not so accredited, is an institution that
has been granted pre-accreditation status by such an agency or
association that has been recognized by the Secretary for the granting
of pre-accreditation status, and the Secretary has determined that
there is satisfactory assurance that the institution will meet the
accreditation standards of such an agency or association within a
reasonable time.
(g) Indian/Native American tribal government (Federally recognized)
means a governing body of a tribe, band, pueblo, community, village, or
group of native American Indians, or Alaska Natives, that qualifies as
an Indian tribal government upon a determination by the Internal
Revenue Service that the governing body exercises governmental
functions.
(h) Nonprofit organization means any corporation, trust,
association, cooperative, or other organization, not including IHEs,
that:
(1) Is operated primarily for scientific, educational, service,
charitable, or similar purposes in the public interest;
(2) Is not organized primarily for profit; and
(3) Uses net proceeds to maintain, improve, or expand the
operations of the organization. In accordance with section 18 of the
Lobbying Disclosure Act of 1995 (Pub. L. 104-65) (codified at 2 U.S.C.
1611), non-profit entities incorporated under section 501(c)(4) of the
Internal Revenue Code that engage in lobbying activities are not
eligible to receive Federal funds or grants. (Note: After receiving a
grant, such organization may not engage in any activities, including
awareness-raising or advocacy activities, that include fundraising for,
or lobbying of, U.S. Federal, state, or local governments (see 2 CFR
200.450 for more information).)
(i) Faith-based organization means a nonprofit organization that is
affiliated with, supported by, or based on a religion or religious
group.
(j) Grantee means an applicant that is awarded a grant under this
part.
(k) In-demand industry sector or occupation means:
(1) An industry sector that has a substantial current or potential
impact (including through jobs that lead to economic self-sufficiency
and opportunities for advancement) on the State, regional, or local
economy, as appropriate, and that contributes to the growth or
stability of other supporting businesses, or the growth of other
industry sectors; or
(2) An occupation that currently has or is projected to have a
number of positions (including positions that lead to economic self-
sufficiency and opportunities for advancement) in an industry sector so
as to have a significant impact on the State, regional, or local
economy, as appropriate.
(l) Notice of Funding Opportunity (NOFO) means a Notice of Funding
Opportunity published by VA at <a href="http://Grants.gov">Grants.gov</a> (<a href="https://www.grants.gov">https://www.grants.gov</a>)
alerting eligible entities of the availability of VSTAGP grants and
containing information about the VSTAGP grant application process in
accordance with Sec. 80.4.
(m) Grant agreement means a legal instrument of financial
assistance between a Federal awarding agency or pass-through entity and
a non-Federal entity that is consistent with 31 U.S.C. 6302 and 6304.
(n) Participant means a former member of the U.S. Armed Forces who
was separated, retired, or discharged from the U.S. Armed Forces, or
spouse of such former member, who receives services for which a VSTAGP
grant is awarded.
(o) Spouse means an individual lawfully married to a former member
of the U.S. Armed Forces who was separated, retired, or discharged from
the U.S. Armed Forces.
(p) Covered public health emergency means an emergency with respect
to COVID-19 declared by a Federal, State, or local authority in
accordance with Public Law 117-4, sec. 2(e)(3).

(Authority: Pub. L. 116-315, sec. 4304)

Sec. 80.3 Grants--general.

(a) Grants. VA will award VSTAGP grants to eligible applicants
selected under Sec. 80.8(a)(1).
(b) Maximum amounts. The maximum amount to be awarded to each
grantee and the total maximum amount for all grants will be specified
in the annually published NOFO.
(c) Number of grants awarded. The number of grants VA will award
will depend on the total amount of grant funding available at VA's
discretion and the funding amount awarded to each grantee, which is
based on each grantee's proposal.
(d) Grant award limitation. An eligible entity may receive only one
VSTAGP grant, and only one VSTAGP grant will be awarded in any one
location as specified in the NOFO.
(e) Period of performance. VSTAGP grants will be awarded for a
maximum period of 5 years, beginning on the date on which the VSTAGP
grants are awarded. They will not be extended or renewed.
(f) Amount of grant. A grant under this section shall be in an
amount that does not exceed 50% of the amount required by the
organization to provide the services described in paragraph (b) of this
section.
(g) No participant charges. A grantee may not charge any
participants a fee for services provided by the grantee or require any
participants to participate in other activities sponsored by the
grantee as a condition of receiving services for which the VSTAGP grant
is made.

(Authority: Pub. L. 116-315, sec. 4304)

[[Page 42899]]

Sec. 80.4 Notice of Funding Opportunity (NOFO).

When funds are available for VSTAGP grants, VA will publish a NOFO
at <a href="http://Grants.gov">Grants.gov</a> (<a href="https://www.grants.gov">https://www.grants.gov</a>). The NOFO will identify:
(a) The location for obtaining VSTAGP grant applications, including
the specific forms that will be required;
(b) The date, time, and place for submitting completed VSTAGP grant
applications;
(c) Priority population categories;
(d) The estimated total amount of funds available and the maximum
funds available to a single grantee;
(e) Matching funds requirements;
(f) The minimum number of total points and points per category that
an applicant must receive to be considered for a grant and information
regarding the scoring process;
(g) Any timeframes and manner for payments under the VSTAGP grant;
(h) A description of eligible entities or other eligibility
requirements necessary to receive the grant; and
(i) Other information necessary for the VSTAGP grant application
process, as determined by VA, including contact information for the
office that will oversee the VSTAGP within VA.