---
kind: "section"
citation: "34 C.F.R. § 675.26"
title: "34"
number: "675.26"
heading: "FWS Federal share limitations."
url: "https://uscodex.org/cfr/34/675.26"
---

# §675.26. FWS Federal share limitations.

- (a)
  - (1) The Federal share of FWS compensation paid to a student employed other than by a private for-profit organization, as described in [§ 675.23](/cfr/34/675.23.md), may not exceed 75 percent unless the Secretary approves a higher share under paragraph [(a)(2)](#a-2) or (d) of this section.
  - (2) The Federal share of the compensation paid to a student may exceed 75 percent, but may not exceed 90 percent, if—
    - (i) The student is employed at a private nonprofit organization or a Federal, State, or local public agency that—
      - (A) Is not a part of, and is not owned, operated, or controlled by, or under common ownership, operation, or control with, the institution;
      - (B) Is selected by the institution on an individual case-by-case basis;
      - (C) Would otherwise be unable to afford the costs of this employment; and
    - (ii) The number of students compensated under [paragraph (a)(2)(i)](#a-2-i) of this section is not more than 10 percent of the total number of students paid under the FWS Program at the institution.
  - (3) The Federal share of the compensation paid to a student employed by a private for-profit organization may not exceed 50 percent.
  - (4) An institution may not use FWS funds to pay a student after he or she has, in addition to other estimated financial assistance, earned $300 or more over his or her financial need.
- (b) The institution may not include the following when determining the Federal share:
  - (1) **Fringe benefits such as paid sick days, paid vacations, or paid holidays.**
  - (2) The employer's share of social security, workers' compensation, retirement, or any other welfare or insurance program that the employer must pay on account of the student employee.
- (c) If an institution receives more money under an employment agreement from an off-campus employer than required employer costs, its not-Federal share, and any share of administrative costs that the employer agreed to pay, the excess funds must be—
  - (1) Used to reduce the Federal share on a dollar-for-dollar basis;
  - (2) Held in trust for off-campus student employment next year; or
  - (3) **Refunded to the off-campus employer.**
- (d) For each award year, the Secretary authorizes a Federal share of 100 percent of the compensation earned by a student under this part if—
  - (1) The work performed by the student is for the institution itself, for a Federal, State, or local public agency, or for a private nonprofit organization; and
  - (2)
    - (i) **The institution in which the student is enrolled—**
      - (A) **Is designated as an eligible institution under—** (1) The Developing Hispanic-Serving Institutions Program ([34 CFR part 606](/cfr/34/part606.md));

        (2) The Strengthening Institutions Program, American Indian Tribally Controlled Colleges and Universities Program, or Alaska Native and Native Hawaiian-Serving Institutions Program ([34 CFR part 607](/cfr/34/part607.md));

        (3) The Strengthening Historically Black Colleges and Universities Program ([34 CFR part 608](/cfr/34/part608.md)); or

        (4) The Strengthening Historically Black Graduate Institutions Program ([34 CFR part 609](/cfr/34/part609.md)); and

      - (B) Requests that increased Federal share as part of its regular FWS funding application for that year;
    - (ii) The student is employed as a reading tutor for preschool age children or children who are in elementary school;
    - (iii) The student is performing family literacy activities in a family literacy project that provides services to families with preschool age children or children who are in elementary school;
    - (iv) The student is employed as a mathematics tutor for children who are in elementary school through the ninth grade; or
    - (v) The student is employed in community service activities and is performing civic education and participation activities in a project as defined in [§ 675.18(g)(4)](/cfr/34/675.18.md?p=g-4).

## Notes

### Amendments

[52 FR 45770, Dec. 1, 1987, as amended at 59 FR 61417, 61419, Nov. 30, 1994; 61 FR 60396, Nov. 27, 1996; 62 FR 63439, Nov. 28, 1997; 63 FR 52855, Oct. 1, 1998; 64 FR 58294, Oct. 28, 1999; 66 FR 34039, June 26, 2001; 71 FR 45698, Aug. 9, 2006; 74 FR 55950, Oct. 29, 2009]

### Authority

Authority: 20 U.S.C. 1070g, 1094; 42 U.S.C. 2751-2756b; unless otherwise noted

### Source

Source: 52 FR 45770, Dec. 1, 1987, unless otherwise noted.

### Amendments

[52 FR 45770, Dec. 1, 1987, as amended at 59 FR 61417, 61419, Nov. 30, 1994; 61 FR 60396, Nov. 27, 1996; 62 FR 63439, Nov. 28, 1997; 63 FR 52855, Oct. 1, 1998; 64 FR 58294, Oct. 28, 1999; 66 FR 34039, June 26, 2001; 71 FR 45698, Aug. 9, 2006; 74 FR 55950, Oct. 29, 2009]