OMB Proposes Major Grant Reform Ideas
Issue Brief 12-15
On February 28, 2012, the Office of Management and Budget (OMB) released an advanced notice of proposed guidance in the Federal Register that outlines reform ideas for federal grants and cooperative agreements involving state and local governments as well as universities and nonprofit organizations. The reforms relate to audit requirements, cost principles, and administrative requirements. The reforms are a result of several executive orders to reduce administrative burdens and increase flexibility, while at the same time targeting improper payments and improving program performance. Moreover, they reflect some of the ideas from various OMB working groups comprised of federal, state, and local representatives as well other key groups that have convened in response to presidential directives on administrative flexibility and reducing improper payments.
Because of the potential magnitude of these changes, OMB issued this advanced notice to receive feedback prior to developing a proposal. Comments must be received April 30, 2012 (extended from the original deadline of March 29, 2012).