45 C.F.R. § 2525.30
(a) Except as provided in paragraph (b) of this section, an Eligible Individual who is convicted under Federal or State law of the possession or sale of a controlled substance is not eligible to use his or her education award from the date of the conviction until the end of a specified time period, which is determined based on the type of conviction as follows:
(1) For conviction of the possession of a controlled substance, the individual is ineligible from the date of conviction for—
(iii) For a third or subsequent conviction, indefinitely, as determined by AmeriCorps according to the following factors:
(2) For conviction of the sale of a controlled substance, the individual is ineligible from the date of conviction for—
(b) AmeriCorps will restore the Eligible Individual's access to use the education award if AmeriCorps determines that the individual has successfully completed a legitimate drug rehabilitation program, or in the case of a first conviction that the individual has enrolled in a legitimate drug rehabilitation program and: