Section text and notes
Pub. L. 97–25896 Stat. 1000 Pub. L. 98–16997 Stat. 1113 Pub. L. 99–547, § 2(b)(2)100 Stat. 3060 Pub. L. 103–272, § 4(f)(1)(S)108 Stat. 1362 Pub. L. 104–287, § 6(a)(1)110 Stat. 3398 (, , ; , §§ 1(1), 3(a), , ; , , ; , , ; , , .)
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Historical and Revision Notes |
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Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
6101(1) | 31:1701(4). | Dec. 28, 1977, Pub. L. 95–220, § 2, 91 Stat. 1615. |
6101(2) | 31:1701(2). | |
6101(3) | 31:1701(1). | |
6101(4) | 31:1701(3). | |
In the section, the word “Federal” is omitted as unnecessary.
In clause (1), the word “unit” is substituted for “subdivision” for consistency in the revised title. The words “direct operational” are omitted as unnecessary.
In clause (3)(A), the words “money, property, services, or” are omitted as being included in “anything of value”. The word “for” is substituted for “the principal purpose of which is to accomplish” to eliminate unnecessary words. In subclause (i), the words “grants, loans, loan guarantees, scholarships, mortgage loans, insurance or other types of” are omitted as being included in “financial assistance”. In subclause (ii), the word “goods” is omitted as being included in “property”. The words “and service activities of regulatory agencies” are omitted as being included in “services”. In subclause (iii), the words “expert and technical information” are substituted for “technical assistance, and counseling, statistical and other expert information” to eliminate unnecessary words.
In clause (3)(B), the words “or procurement of property or services for the direct benefit or use of the Government” are added for consistency in subtitle V of the revised title.
In clause (4)(A), the words “or benefits” are omitted as being included in “assistance”. Subclause (ii) is included for consistency in the revised title because the District of Columbia is stated when a provision is meant to apply to the District. In subclause (vi), the word “grouping” is omitted as being included in “political subdivision or instrumentality”. In subclauses (vii)–(ix), the words “profit or nonprofit” are omitted as surplus. In subclause (ix), the words “individual of the United States” are substituted for “domestic . . . individual” for clarity.
Editorial Notes
Amendments
Pub. L. 104–287Pub. L. 103–2721996—Par. (4)(B). made technical amendment to directory language of . See 1994 Amendment note below.
Pub. L. 103–272Pub. L. 104–2871994—Par. (4)(B). , as amended by , substituted “agency.” for “agency” at end.
Pub. L. 99–5471986—Par. (4)(B). substituted “assistance from an agency for an agency” for “a department, agency, or instrumentality of the Government.”
Pub. L. 98–169, § 1(1)1983—Pars. (5), (6). , added pars. (5) and (6).
Pub. L. 98–169, § 3(a)Par. (7). , added par. (7).
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Pub. L. 104–287, § 6(a)110 Stat. 3398 , , , provided that the amendment made by that section is effective .
Short Title of 2026 Amendment
Pub. L. 119–106, § 1140 Stat. 1014
Short Title of 2022 Amendment
Pub. L. 117–219, § 1136 Stat. 2271
Short Title of 2021 Amendment
Pub. L. 117–40, § 1135 Stat. 337
Short Title of 2014 Amendment
Pub. L. 113–101, § 1128 Stat. 1146
Short Title of 2008 Amendment
Pub. L. 110–252, title VI, § 6201122 Stat. 2387
Grant Transparency
Pub. L. 118–140138 Stat. 1657
SHORT TITLE.
“This Act may be cited as the ‘Grant Transparency Act of 2023’.
NOTICES OF FUNDING OPPORTUNITY TRANSPARENCY.
Definitions .—
Agency .—
Competitive grant .—
Evaluation or selection criteria .—
Notice of funding opportunity .—
Rating system .—
Transparency Requirements .—
Applications; Data Elements.—
In general .—
Contents .—
Rule of Construction .—
No Additional Funds .—
Effective Date.—
In general .—
No retroactive effect .—
Reporting on Use of Funds
Pub. L. 116–136, div. B, title V, § 15011134 Stat. 540
Exemption From Certain Reporting Requirements for Certain Agricultural Producers
Pub. L. 115–334, title I, § 1707132 Stat. 4529
Definition of Exempted Producer .—
Exemption .—
Purposes
Pub. L. 113–101, § 2128 Stat. 1146
Requirements and Limitations for Suspension and Debarment Officials of the Department of Defense, the Department of State, and the United States Agency for International Development
Pub. L. 112–239, div. A, title VIII, § 861126 Stat. 1857
Requirements .—
Duties of Interagency Committee on Debarment and Suspension .—
section 873 of Pub. L. 110–417[Amended , set out below.]
Covered Agency .—
Role of Interagency Committee on Debarment and Suspension
Pub. L. 110–417122 Stat. 4557 Pub. L. 111–383, div. A, title X, § 1075(e)(16)124 Stat. 4375 Pub. L. 112–239, div. A, title VIII, § 861(b)126 Stat. 1858
Requirement .—
Date of Submittal of Annual Reports .—
Definitions .—
Federal Funding Accountability and Transparency
Pub. L. 119–106, § 2(d)140 Stat. 1015
Definitions .—
Director .—
Relevant agency .—
Secretary .—
Usaspending.gov .—
Initial compilation .—
Plan .—
Pub. L. 110–252, title VI, § 6202(b)122 Stat. 2387
Pub. L. 109–282120 Stat. 1186 Pub. L. 110–252, title VI, § 6202(a)122 Stat. 2387 Pub. L. 113–101, § 3128 Stat. 1146 Pub. L. 117–40, § 2(a)135 Stat. 337 Pub. L. 119–106140 Stat. 1014–1016
SHORT TITLE.
“This Act may be cited as the ‘Federal Funding Accountability and Transparency Act of 2006’.
FULL DISCLOSURE OF ENTITIES RECEIVING FEDERAL FUNDING.
Definitions .—
Director .—
Entity .—
Federal agency .—
Federal award .—
Object class .—
Program activity .—
Searchable website .—
Secretary .—
In General.—
Website .—
Scope of data .—
Designation of agencies .—
Agency responsibilities .—
Website .—
Subaward Data.—
Pilot program.—
In general .—
Termination .—
Reporting of subawards.—
In general .—
Extension of deadline .—
Exception .—
Construction .—
Report.—
In general .—
Contents .—
Publication .—
Annual Report .—
FULL DISCLOSURE OF FEDERAL FUNDS.
In General .—
Information To Be Posted.—
Funds .—
Budget justifications.—
Definitions .—
Information .—
Format .—
Deadline .—
Rule of construction .—
Quality of Information.—
In general .—
Federal agency responsibility .—
Authority to verify accuracy .—
Display Standards .—
Agency Reporting Determination .—
DATA STANDARDS.
In General.—
Establishment of standards .—
Data elements .—
Requirements .—
Deadlines.—
Guidance .—
Agencies.—
In general .—
Noninterference with auditability of department of defense financial statements.—
In general .—
Limitation .—
Notification .—
Website .—
Consultation .—
Other Transaction Agreement Data .—
SIMPLIFYING FEDERAL AWARD REPORTING.
In General .—
Pilot Program.—
Establishment .—
Requirements .—
Data collection .—
Reporting and evaluation requirements .—
Termination .—
Report to congress .—
Government-wide implementation .—
ACCOUNTABILITY FOR FEDERAL FUNDING.
Inspector General Reports.—
In general .—
Deadlines .—
Comptroller General Reports.—
In general .—
Deadlines .—
Recovery Accountability and Transparency Board Data Analysis Center.—
In general .—
Data availability .—
Transfer .—
CLASSIFIED AND PROTECTED INFORMATION.
NO PRIVATE RIGHT OF ACTION.
“Nothing in this Act shall be construed to create a private right of action for enforcement of any provision of this Act.”
Pub. L. 119–106, § 3(b)(2)140 Stat. 1017
Federal Financial Assistance Management Improvement
Pub. L. 106–107113 Stat. 1486 Pub. L. 108–271, § 8(b)118 Stat. 814 , , , as amended by , , , which required Federal agencies to streamline and simplify the application, administrative, and reporting procedures for Federal financial assistance programs, ceased to be effective on .
Uniform Suspension, Debarment or Exclusion From Procurement or Nonprocurement Activity
Pub. L. 103–355, title II, § 2455108 Stat. 3327 Pub. L. 111–84, div. A, title VIII, § 815123 Stat. 2408 Pub. L. 115–232, div. A, title VIII, § 836(g)(4)132 Stat. 1873
Requirement for Regulations .—
Authority To Grant Exception .—
Definitions .—
Transfer of Personnel, Property, Records, and Appropriations
Pub. L. 98–169, § 797 Stat. 1115
Executive Documents
Ex. Ord. No. 12549. Debarment and Suspension of Participants in Federal Programs
Ex. Ord. No. 12549, , 51 F.R. 6370, provided:
By the authority vested in me as President by the Constitution and laws of the United States of America, and in order to curb fraud, waste, and abuse in Federal programs, increase agency accountability, and ensure consistency among agency regulations concerning debarment and suspension of participants in Federal programs, it is hereby ordered that:
Section 1. (a) To the extent permitted by law and subject to the limitations in Section 1(c), Executive departments and agencies shall participate in a system for debarment and suspension from programs and activities involving Federal financial and nonfinancial assistance and benefits. Debarment or suspension of a participant in a program by one agency shall have government-wide effect.
(b) Activities covered by this Order include but are not limited to: grants, cooperative agreements, contracts of assistance, loans, and loan guarantees.
(c) This Order does not cover procurement programs and activities, direct Federal statutory entitlements or mandatory awards, direct awards to foreign governments or public international organizations, benefits to an individual as a personal entitlement, or Federal employment.
Sec. 2. To the extent permitted by law, Executive departments and agencies shall:
(a) Follow government-wide criteria and government-wide minimum due process procedures when they act to debar or suspend participants in affected programs.
(b) Send to the agency designated pursuant to Section 5 identifying information concerning debarred and suspended participants in affected programs, participants who have agreed to exclusion from participation, and participants declared ineligible under applicable law, including Executive Orders. This information shall be included in the list to be maintained pursuant to Section 5.
(c) Not allow a party to participate in any affected program if any Executive department or agency has debarred, suspended, or otherwise excluded (to the extent specified in the exclusion agreement) that party from participation in an affected program. An agency may grant an exception permitting a debarred, suspended, or excluded party to participate in a particular transaction upon a written determination by the agency head or authorized designee stating the reason(s) for deviating from this Presidential policy. However, I intend that exceptions to this policy should be granted only infrequently.
Sec. 3. Executive departments and agencies shall issue regulations governing their implementation of this Order that shall be consistent with the guidelines issued under Section 6. Proposed regulations shall be submitted to the Office of Management and Budget for review within four months of the date of the guidelines issued under Section 6. The Director of the Office of Management and Budget may return for reconsideration proposed regulations that the Director believes are inconsistent with the guidelines. Final regulations shall be published within twelve months of the date of the guidelines.
Sec. 4. There is hereby constituted the Interagency Committee on Debarment and Suspension, which shall monitor implementation of this Order. The Committee shall consist of representatives of agencies designated by the Director of the Office of Management and Budget.
Sec. 5. The Director of the Office of Management and Budget shall designate a Federal agency to perform the following functions: maintain a current list of all individuals and organizations excluded from program participation under this Order, periodically distribute the list to Federal agencies, and study the feasibility of automating the list; coordinate with the lead agency responsible for government-wide debarment and suspension of contractors; chair the Interagency Committee established by Section 4; and report periodically to the Director on implementation of this Order, with the first report due within two years of the date of the Order.
Sec. 6. The Director of the Office of Management and Budget is authorized to issue guidelines to Executive departments and agencies that govern which programs and activities are covered by this Order, prescribe government-wide criteria and government-wide minimum due process procedures, and set forth other related details for the effective administration of the guidelines.
Sec. 7. The Director of the Office of Management and Budget shall report to the President within three years of the date of this Order on Federal agency compliance with the Order, including the number of exceptions made under Section 2(c), and shall make such recommendations as are appropriate further to curb fraud, waste, and abuse.
Ex. Ord. No. 12689. Debarment and Suspension
Ex. Ord. No. 12689, , 54 F.R. 34131, provided:
By the authority vested in me as President by the Constitution and laws of the United States of America, and in order to protect the interest of the Federal Government, to deal only with responsible persons, and to insure proper management and integrity in Federal activities, it is hereby ordered as follows:
SectionDefinitions 1. . For purposes of this order:
(a) “Procurement activities” refers to all acquisition programs and activities of the Federal Government, as defined in the Federal Acquisition Regulation.
(b) “Nonprocurement activities” refers to all programs and activities involving Federal financial and nonfinancial assistance and benefits, as covered by Executive Order No. 12549 [set out above] and the Office of Management and Budget guidelines implementing that order.
(c) “Agency” refers to executive departments and agencies.
SecGovernmentwide Effect.. 2.
(a) To the extent permitted by law and upon resolution of differences and promulgation of final regulations pursuant to section 3 of this order, the debarment, suspension, or other exclusion of a participant in a procurement activity under the Federal Acquisition Regulation, or in a nonprocurement activity under regulations issued pursuant to Executive Order No. 12549, shall have governmentwide effect. No agency shall allow a party to participate in any procurement or nonprocurement activity if any agency has debarred, suspended, or otherwise excluded (to the extent specified in the exclusion agreement) that party from participation in a procurement or nonprocurement activity.
(b) An agency may grant an exception permitting a debarred, suspended, or otherwise excluded party to participate in procurement activities of that agency to the extent exceptions are authorized under the Federal Acquisition Regulation, or to participate in nonprocurement activities of that agency to the extent exceptions are authorized under regulations issued pursuant to Executive Order No. 12549.
SecImplementation.. 3.
(a) The Office of Management and Budget may assist Federal agencies in resolving differences between the provisions contained in the Federal Acquisition Regulation and in regulations issued pursuant to Executive Order No. 12549. The Office of Management and Budget may determine the date of resolution of differences and then shall notify affected agencies of that date.
(b) To implement this order, proposed regulations amending the Federal Acquisition Regulation and the agency regulations issued pursuant to Executive Order No. 12549 shall be published simultaneously within 6 months of the resolution of differences.
(c) Final regulations shall be published simultaneously within 12 months of the publication of the proposed regulations, to be effective 30 days thereafter.
Ex. Ord. No. 14332. Improving Oversight of Federal Grantmaking
Ex. Ord. No. 14332, , 90 F.R. 38929, provided:
By the authority vested in me as President by the Constitution and the laws of the United States of America, and to improve the process of Federal grantmaking while ending offensive waste of tax dollars, it is hereby ordered:
SectionPurpose 1. . Every tax dollar the Government spends should improve American lives or advance American interests. This often does not happen. Federal grants have funded drag shows in Ecuador, trained doctoral candidates in critical race theory, and developed transgender-sexual-education programs. In 2024, one study claimed that more than one-quarter of new National Science Foundation (NSF) grants went to diversity, equity, and inclusion and other far-left initiatives. These NSF grants included those to educators that promoted Marxism, class warfare propaganda, and other anti-American ideologies in the classroom, masked as rigorous and thoughtful investigation.
The harm imposed by problematic Federal grants does not stop at propagating absurd ideologies. An unsafe lab in Wuhan, China—likely the source of the COVID–19 pandemic—engaged in gain-of-function research funded by the National Institutes of Health. The NSF gave millions to develop AI-powered social media censorship tools—a direct assault on free speech. Taxpayer-funded grants have also gone to non-governmental organizations that provided free services to illegal immigrants, worsening the border crisis and compromising our safety, and to organizations that actively worked against American interests abroad.
Even for projects receiving Federal funds that serve an ostensibly beneficial purpose, the Government has paid insufficient attention to their efficacy. For example, a significant proportion of the results of federally funded scientific research projects cannot be reproduced by external researchers. Even at Harvard and Stanford, once considered among America’s most prestigious universities, senior researchers have resigned following accusations of data falsification. A substantial portion of many Federal grants for university-led research goes not to scientific project applicants or groundbreaking research, but to university facilities and administrative costs.
The grant review process itself also undermines the interests of American taxpayers. Writing effective grant applications is notoriously complex, and grant applicants that can afford legal and technical experts are more likely to receive funds—which can then further support these non-mission functions. In addition, there is insufficient interagency coordination and review by relevant subject matter experts to reduce duplication. As a result, the best proposals do not always receive funding, and there is too much unfocused research of marginal social utility.
In short, there is a strong need to strengthen oversight and coordination of, and to streamline, agency grantmaking to address these problems, prevent them from recurring, and ensure greater accountability for use of public funds more broadly. The Government holds tax revenue in trust for the American people, and agencies should treat it accordingly.
Sec.Definitions 2. . For purposes of this order:
section 551 of title 5(a) The term “agency” has the meaning given to it in , United States Code, except that such term includes only agencies that have the statutory authority to award, offer, or manage Federal grants and does not include the Executive Office of the President or any components thereof.
(b) The term “agency head” means the highest-ranking official or officials of an agency, such as the Secretary, Administrator, Chairman, Director, Commissioners, or Board of Directors, unless otherwise specified in this order.
(c) The term “Director” means the Director of the Office of Management and Budget (OMB).
(d) The term “discretionary award” or “discretionary grant” means a grant that is a “discretionary award” as that term is defined in 2 CFR 200.1. It does not include programs where legislation establishes an entitlement to the funds on the part of the recipient, such as block grants; those awarded based on a statutory formula; or disaster recovery grants.
(e) The term “funding opportunity announcement” means a “notice of funding opportunity” as defined in 2 CFR 200.1, as it pertains to a discretionary award.
(f) The term “grant” means any “grant agreement or grant” as defined in 2 CFR 200.1, “cooperative agreement” as defined in 2 CFR 200.1, or similar award of financial assistance, including foreign assistance awards.
(g) The term “regulation” means an agency statement of general or particular applicability and future effect designed to implement, interpret, or prescribe law or policy or describing the procedure or practice requirements of an agency, including, without limitation, regulations, interpretative rules, and statements of policy.
(h) The term “senior appointee” means an individual appointed by the President, a non-career member of the Senior Executive Service, or an employee encumbering a Senior Level, Scientific and Professional, or Grade 15 position in Schedule C of the excepted service.
Sec.Strengthening Accountability for Agency Grantmaking 3. . (a) Each agency head shall promptly designate a senior appointee who shall be responsible for creating a process to review new funding opportunity announcements and to review discretionary grants to ensure that they are consistent with agency priorities and the national interest. For the avoidance of doubt, this process shall not guarantee any particular level of review or consideration to funding applicants except as consistent with applicable law. As consistent with applicable law, this review process shall incorporate, at a minimum:
(i) review and approval of agency funding opportunity announcements by one or more senior appointees or their designees;
(ii) continuation of existing coordination with OMB;
(iii) to the extent appropriate to the subject matter of the announcements, review by designated subject-matter experts as identified by the agency head or the agency head’s designee;
(iv) review of funding opportunity announcements and related forms to ensure that they include only such requirements as are necessary for an adequate evaluation of the application and are written in plain language with a goal of minimizing the need for legal or technical expertise in drafting an application;
(v) interagency coordination to determine whether the subject matter of a particular funding opportunity announcement has already been addressed by another agency announcement and, if so, whether one of the announcements should be modified or withdrawn to promote consistency and eliminate redundancy;
(vi) for scientific research discretionary grants, review by at least one subject matter expert in the field of the application, who may be a member of the grant review panel, the program officer, or an outside expert; and
(vii) pre-issuance review of discretionary awards to ensure that the awards are consistent with applicable law, agency priorities, and the national interest, which shall involve in-person or virtual discussion of applications by grant review panels or program offices with a senior appointee or that appointee’s designee.
(b) Agency heads shall designate one or more senior appointees to review discretionary awards on an annual basis for consistency with agency priorities and substantial progress. Such review shall include an accountability mechanism for officials responsible for selection and granting of the awards.
(c) Until such time as the process specified in subsection (a) of this section is in place, agencies shall not issue any new funding opportunity announcements without prior approval from the senior appointee designated under subsection (a) of this section, except as required by law.
Sec.Considerations for Discretionary Awards 4. . (a) Senior appointees and their designees shall not ministerially ratify or routinely defer to the recommendations of others in reviewing funding opportunity announcements or discretionary awards, but shall instead use their independent judgment.
(b) In reviewing and approving funding opportunity announcements and discretionary awards, as well as in designing the review process described in section 3(a) of this order, senior appointees and their designees shall, as relevant and to the extent consistent with applicable law, apply the following principles, including in any scoring rubrics used to assess grant proposals:
(i) Discretionary awards must, where applicable, demonstrably advance the President’s policy priorities.
(ii) Discretionary awards shall not be used to fund, promote, encourage, subsidize, or facilitate:
(A) racial preferences or other forms of racial discrimination by the grant recipient, including activities where race or intentional proxies for race will be used as a selection criterion for employment or program participation;
(B) denial by the grant recipient of the sex binary in humans or the notion that sex is a chosen or mutable characteristic;
(C) illegal immigration; or
(D) any other initiatives that compromise public safety or promote anti-American values.
(iii) All else being equal, preference for discretionary awards should be given to institutions with lower indirect cost rates.
(iv) Discretionary grants should be given to a broad range of recipients rather than to a select group of repeat players. Research grants should be awarded to a mix of recipients likely to produce immediately demonstrable results and recipients with the potential for potentially longer-term, breakthrough results, in a manner consistent with the funding opportunity announcement.
(v) Applicants should commit to complying with administration policies, procedures, and guidance respecting Gold Standard Science.
(vi) Discretionary awards should include clear benchmarks for measuring success and progress towards relevant goals and, as relevant for awards pertaining to scientific research, a commitment to achieving Gold Standard Science.
(vii) To the extent institutional affiliation is considered in making discretionary awards, agencies should prioritize an institution’s commitment to rigorous, reproducible scholarship over its historical reputation or perceived prestige. As to science grants, agencies should prioritize institutions that have demonstrated success in implementing Gold Standard Science.
(c) Nothing in this order shall be construed to discourage or prevent the use of peer review methods to evaluate proposals for discretionary awards or otherwise inform agency decision making, provided that peer review recommendations remain advisory and are not ministerially ratified, routinely deferred to, or otherwise treated as de facto binding by senior appointees or their designees. Further, nothing in this order shall be construed to create any rights to any particular level of review or consideration for any funding applicant except as consistent with applicable law.
Sec.Revisions to the Uniform GuidancePublic Law 116–28315 U.S.C. 4651Public Law 117–167Public Law 117–58 5. . (a) The Director shall revise the Uniform Guidance and other relevant guidance to streamline application requirements and to further clarify and require all discretionary grants to permit termination for convenience, including when the award no longer advances agency priorities or the national interest, but subject to appropriate exceptions, including agreements entered into in furtherance of international trade agreements or those awarded by the Department of Commerce under title XCIX of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 () [ et seq.], the CHIPS Act of 2022 ([, div. A, see Tables for classification]), or division F of the Infrastructure Investment and Jobs Act () [see Tables for classification].
(b) The Director shall further revise the Uniform Guidance and other relevant guidance to appropriately limit the use of discretionary grant funds for costs related to facilities and administration.
Sec.Implementation and Termination Clauses 6. . (a) Within 30 days of the date of this order [], each agency head shall review the agency’s standard grant terms and conditions and submit a report to the Director detailing:
(i) whether the agency’s standard terms and conditions for discretionary awards permit termination for convenience and include the termination provisions described in 2 CFR 200.340(a), including the provisions that an award may be terminated by the agency “if an award no longer effectuates the program goals or agency priorities” or, in the case of a partial termination by the recipient, if the agency “determines that the remaining portion of the Federal award will not accomplish the purposes for which the Federal award was made”;
(ii) whether the agency’s standard terms and conditions for discretionary foreign assistance awards permit termination based on the national interest; and
(iii) the approximate number of active discretionary awards at the agency, as well as the approximate percentage of funding obligated under those awards that contains termination provisions allowing for termination under the circumstances described in subsection (i) of this section.
(b) Each agency head shall, to the maximum extent permitted by law and consistent with relevant Executive Orders or other Presidential directives, take steps to revise the terms and conditions of existing discretionary grants to permit immediate termination for convenience, or clarify that such termination is permitted, including if the award no longer advances agency priorities or the national interest. Each agency head shall ensure that such terms are included in all future discretionary grants and likewise shall take steps to revise all applicable regulations binding on or incorporated in discretionary grant terms and conditions to require such terms. Agency heads shall take action to incorporate these new terms and conditions into all future amendments to grant awards.
(c) To the extent practicable and consistent with applicable law, agency heads shall insert in future discretionary grant agreements terms and conditions that:
(i) prohibit recipients from directly drawing down general grant funds for specific projects without the affirmative authorization of the agency; and
(ii) require grantees to provide written explanations or support, with specificity, for requests for each drawdown.
Sec.General Provisions 7. . (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
(d) If any provision of this order, or the application of any provision to any person or circumstance, is held to be invalid, the remainder of this order and the application of its provisions to any other persons or circumstances shall not be affected thereby.
(e) The costs for publication of this order shall be borne by the Office of Management and Budget.
Ex. Ord. No. 14395. Establishing the Task Force To Eliminate Fraud
Ex. Ord. No. 14395, , 91 F.R. 13485, provided:
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:
SectionPurpose and Policy 1. . American taxpayers fund a vast benefits system for citizens in need that includes housing, food, medical care, cash assistance, and more. States administer these federally funded programs, and some States have embraced loopholes that avoid individual eligibility validation, allow self-certification of eligibility, and expand eligibility far beyond what the Congress intended. Worse, despite accepting Federal funds, some States have refused to institute basic fraud controls such as providing enrollee information to the Federal Government that would allow it to verify eligibility. As a result, illegal aliens, criminals, foreign gangs, bureaucrats, State and local officials, non-governmental organizations, and ineligible providers exploit these programs—which are intended to provide a safety net to lawfully eligible Americans—with ease. This exploitation and lack of controls to prevent it have resulted in widespread fraud, waste, and abuse at the expense of the American taxpayers who pay for and utilize these programs, contributing substantially to the national debt.
Self-dealing political actors use such public benefits programs to solidify control over their communities and our political systems. Due to lax immigration policy and immigration fraud, certain public officials admit into our country, and provide sanctuary from Federal immigration laws to, migrant populations who are likely to rely on means-tested, public assistance programs (welfare) and increase the political support and power of the public officials providing the benefits. This increased support incentivizes public officials to maximize the flow of welfare to these communities and makes public officials who do so more powerful. Many of these public officials then fail to police these programs—and in some cases, willfully turn a blind eye to fraud, waste, and abuse within them—to ensure that welfare flows to these migrants. Due to insufficient election integrity measures, some migrants who are not eligible to vote do so anyway, with the same public officials permitting widespread ballot harvesting schemes that compromise our election integrity and help these public officials remain in power.
The staggering fraud and waste in Minnesota alone is a case in point. Federal prosecutors in the State estimate that Medicaid fraud in recent years could total in the billions. Nearly 9 percent of the roughly $866 million spent on food stamps in Minnesota each year is estimated to be spent in error. The non-profit Feeding our Future engineered a scam that stole nearly $250 million intended to feed needy children in Minnesota by opening fake meal sites and submitting fraudulent claims for millions of meals that were never served. One of the defendants in this scam was also charged with submitting false claims to an autism services program that was subject to widespread fraud. Hundreds of millions of dollars in Federal childcare funding to Minnesota were stolen by an organized ring of Somali immigrants and others who used the stolen money to purchase cars, property, and luxury travel, and sent the funds overseas. The Federal Government is investigating allegations that some of the United States taxpayer dollars subject to fraud in Minnesota were even funneled to one of Africa’s most heinous terror groups. All of this was ignored or undetected by State officials. There is also strong reason to believe that similar problems exist in other States, including California, Illinois, New York, Maine, and Colorado. In fact, Minnesota and 20 other States filed a lawsuit to block the Federal Government from even conducting a basic review to determine whether their enrollees are in fact eligible for taxpayer-funded benefits under the Supplemental Nutrition Assistance Program. Such extensive, undetected fraud could only exist in a system that ignores it.
Fraud and mismanagement in these programs constitutes theft of the hard-earned tax dollars from Americans paying into these programs, and of the benefits owed to Americans who need them. The failure to ensure sufficient Federal oversight to prevent fraud, waste, and abuse has allowed irresponsible State politicians to increase Federal spending in their own States, which has contributed to inflation for health care services, housing, utilities, and groceries.
Making matters worse, the previous administration adopted policies that weakened the Federal Government’s oversight of State administration and distribution of Federal funds under these programs, including by reducing commonsense verification measures, expanding access without adequate controls, tolerating unacceptable error rates, creating conditions in which fraud was institutionally tolerated and therefore flourished, and enabling individuals with substantial means to improperly access benefits.
My Administration will use all available resources and authorities to fight fraud, close loopholes, enforce eligibility rules, and protect benefits for eligible Americans, while ensuring States administering Federal benefits programs do the same.
Sec.Establishment of the Task Force 2. . (a) There is hereby established within the Executive Office of the President a Task Force to Eliminate Fraud (Task Force).
(b) The Vice President of the United States shall serve as the Chairman of the Task Force. The Chairman of the Federal Trade Commission shall serve as Vice Chairman of the Task Force, shall preside over the Task Force at the direction of the Chairman or in his absence, and shall exercise all powers of the Chairman herein defined at his direction or in his absence. The Chairman shall designate an Executive Director, who shall administer and execute the day-to-day operations of the Task Force, and who shall report to the Vice Chairman. The Assistant to the President for Homeland Security shall serve as the Senior Advisor to the Task Force.
(c) In addition to the Chairman, the Vice Chairman, and the Senior Advisor, the Task Force shall include appropriate representatives from the following executive departments and agencies (agencies), or components:
(i) the Department of the Treasury;
(ii) the Department of Justice;
(iii) the Department of Agriculture;
(iv) the Department of Labor;
(v) the Department of Health and Human Services;
(vi) the Department of Housing and Urban Development;
(vii) the Department of Education;
(viii) the Department of Veterans Affairs;
(ix) the Department of Homeland Security;
(x) the Small Business Administration;
(xi) the Office of Management and Budget; and
(xii) other agencies, inspectors general, or components within the Executive Office of the President, as determined by the Chairman.
(d) The Chairman or the Vice Chairman shall convene regular meetings of the Task Force, determine its agenda, and direct its work, consistent with this order. The Executive Director shall assist in the performance of these duties. The Chairman may designate any member of the Task Force to preside over meetings of the Task Force in the absence of the Vice Chairman.
(e) The Task Force shall coordinate with the Homeland Security Council on any matters related to law enforcement, public safety, national security, transnational crime, and organized criminal activity.
Sec.Operation and Priorities of the Task Force 3. . (a) The Task Force shall, on behalf of the President, coordinate and accelerate a comprehensive national strategy to stop fraud, waste, and abuse within Federal benefit programs, including programs administered jointly with State, local, tribal, and territorial partners. The Task Force shall advise the President and, on behalf of the President, shall coordinate the work of appropriate member agencies to:
Pub. L. 104–193(i) develop measures to improve eligibility verification processes in Federal benefits programs and maximize enforcement of eligibility requirements, including program-specific requirements and the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 [, see Tables for classification];
(ii) develop appropriate controls that operate before funds are obligated or disbursed to prevent improper payments in Federal benefits programs, including by coordinating agency action to determine when ongoing fraud or potential fraud require proactively pausing certain types of funding until such controls can be established;
(iii) evaluate indicators of fraud and high-risk vulnerabilities to fraud, including major fraud trends and cross-program and large-scale schemes, which shall include considering the current and potential use by member agencies of third-party contractors to maximize efficacy in detecting fraud;
(iv) promote the facilitation of information and data sharing and coordination between State, local, tribal, and territorial governments and the Federal Government, and benefit-providing agencies and law enforcement agencies;
(v) disrupt and dismantle fraud networks and facilitators, including providers, contractors, or other entities and repeat cross-program offenders through interagency information sharing and coordination;
(vi) investigate and disrupt the mechanisms through which fraud is committed, including any mechanisms involving facilitation of fraud by Federal, State, local, tribal, or territorial officials;
(vii) prevent remittance transfers that involve the proceeds of Federal benefits fraud, as appropriate and consistent with applicable law;
(viii) audit and ensure prospective compliance monitoring, including for use in identifying fraud in Federal benefits programs; and
(ix) analyze identifying information for all providers or retailers associated with redemption of benefits to inspect for fraud and develop a process by which member agencies recommend policies for wide-scale revalidations or reauthorization to deter fraudulent providers, as appropriate and to the extent consistent with applicable law.
(b) Each agency administering Federal benefit programs shall, consistent with applicable law, provide to the Task Force information concerning such programs that the Task Force deems relevant to advising the President and coordinating efforts to uncover benefits fraud and increase fraud-detection capability.
(c) The Task Force shall be subject to the President’s direct supervision and control. The Task Force, through the Chairman, shall provide frequent updates to the President regarding its work and shall ensure that its actions are consistent with the President’s directions.
Sec.Improved Controls and Fraud-Prevention Measures 4. . (a) Each agency administering Federal benefit programs represented on the Task Force shall identify the agency’s benefit transactions and processes that are most susceptible to fraud schemes, which may include new enrollments, redeterminations, provider enrollments, eligibility self-attestation procedures, changes to payment destinations or payees, or transactions involving third party intermediaries. Within 30 days of the date of this order [], each such agency shall submit to the Chairman and Vice Chairman of the Task Force descriptions of such transactions and processes and suggested measures to prevent such fraud.
(b) Within 60 days of the date of this order, the Task Force shall coordinate member agency efforts to adopt, as appropriate, minimum anti-fraud requirements for transactions and processes identified under subsection (a) of this section to prevent fraud and loopholes that allow for systemic abuse and exploitation. If such transactions and processes involving Federal funding are administered by a State, local, territorial, or tribal jurisdiction, then the Task Force and appropriate member agencies shall address how such jurisdictions can demonstrate implementation of the anti-fraud requirements. The Task Force and its member agencies also shall examine and recommend, as appropriate, any ways that Federal funds may be withheld from jurisdictions that do not have adequate anti-fraud requirements. Specifically, such anti-fraud requirements may include:
(i) screening, proof of identity, and eligibility verification;
(ii) pre-payment integrity and risk controls, including affirmative documentation requirements concerning services provided;
(iii) information-and data-sharing processes, updated criteria, minimum integrity checks, cross-program risk indicators, and coordinated recovery and enforcement pathways to prevent immigration sponsor and beneficiary and household-related related fraud, abuse, or improper usage;
(iv) appropriate use of providers, vendors, contractors, nonprofit organizations, intermediaries, and service organizations; and
(v) audit and remedial measures, including suspension, termination, repayment, exclusion, and debarment actions, as appropriate.
(c) Within 90 days of the date of this order, each member of the Task Force shall submit to the Chairman and the Vice Chairman of the Task Force a measurable implementation plan concerning the measures identified or developed under this order.
Sec.Administration 5. . The heads of other agencies shall, upon the request of the Chairman or the Vice Chairman, provide administrative and technical support, or information required by the Task Force to carry out its functions.
Sec.Maximizing Taxpayer Pursuit of Fraud Involving Taxpayer Dollars 6. . The Attorney General shall:
31 U.S.C. 3730(a) take appropriate action to promote the meritorious pursuit by private persons of civil actions under concerning fraud within Federal benefit programs; and
31 U.S.C. 3730(a)(4)(b) ensure prompt review of such actions, including within the 60-day period contemplated by to the maximum extent practicable.
Sec.General Provisions 7. . (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
(d) The costs for publication of this order shall be borne by the Department of the Treasury.