(a) Administrative costs Not more than 5 percent of the amount of assistance provided to a State Commission, grantmaking entity, or qualified organization that is the original recipient of a grant under section
12542 (a) of this title for a fiscal year may be used to pay for administrative costs incurred by
(1) the original recipient; or
(2) the entity carrying out the community-based service programs supported with the assistance.
(b) Rules on use The Chief Executive Officer may by rule prescribe the manner and extent to which
(1) such assistance may be used to cover administrative costs; and
(2) that portion of the assistance available to cover administrative costs should be distributed between
(A) the original recipient; and
(B) the entity carrying out the community-based service programs supported with the assistance.
