Of funds appropriated for the purpose of this part under section 5081 of this title, not more than 30 percent for the fiscal year ending September 30, 1984, and for each fiscal year thereafter, may be obligated for the direct cost of supporting volunteers in programs or projects carried out pursuant to grants and contracts made under section 5042(12) [1] of this title.

No funds shall be obligated under this part pursuant to grants or contracts made after December 13, 1979, for new projects for the direct cost of supporting volunteers unless the recipient of each such grant or contract has been selected through a competitive process which includes—

(1) public announcements of the availability of funds for such grants or contracts, general criteria for the selection of new recipients, and a description of the application process and the application review process; and

(2) a requirement that each applicant for any such grant or contract identify, with sufficient particularity to assure that the assignments of volunteers under such grants and contracts will carry out the purpose of this part, the particular poverty or poverty-related problems on which the grant or contract will focus, and any such grant or contract shall specifically so identify such problems.

(Pub. L. 93–113, title I, § 108, as added Pub. L. 94–293, § 4(a)(1), May 27, 1976, 90 Stat. 525; amended Pub. L. 96–143, § 4, Dec. 13, 1979, 93 Stat. 1075; Pub. L. 98–288, § 8, May 21, 1984, 98 Stat. 191; Pub. L. 101–204, title VII, § 703, Dec. 7, 1989, 103 Stat. 1821.)