The White House’s Office of Management and Budget (OMB) issued updated guidance on April 4 to improve the management of Federal grants and financial assistance totaling more than $1.2 trillion each year.
The updates to the guidance – known as the Uniform Grants Guidance – represent a significant milestone in the management of Federal funds, allowing funding recipients to focus more on mission outcomes rather than administrative overhead.
“This administration continues to focus on efforts to streamline, simplify, and make more accessible the processes, systems, and data standards associated with Federal financial assistance to reduce burden on Federal agencies, applicants, and recipients,” OMB Director Shalanda Young said in an April 4 memo to agencies.
“This memorandum describes a government-wide approach that will reduce burden for agencies and recipients, ensure transparency and accountability, and identify specific opportunities for increased coordination throughout the lifecycle of Federal financial assistance – all to deliver results for the American people,” Young added.
The updated guidance is the product of extensive engagement with stakeholders – the revision process included the review of more than 3,200 public comments to understand pain points in the grantmaking process.
Among the major changes to the guidance is simplifying Notices of Funding Opportunities (NOFOs) to make it easier for first-timers and smaller organizations to apply for Federal funding.
“Agencies should increase NOFOs’ accessibility, readability, and clarity of NOFOs while also using the grantmaking process as a tool to identify and address supply chain gaps,” an OMB blog on the new guidance says.
Additionally, the revision looks to strengthen the Federal Program Inventory (FPI), which is a new searchable tool with key information about all Federal programs that provide financial assistance. Agencies will be required to improve the descriptions of their programs, or “Assistance Listings,” which feed the inventory.
The guidance also calls on agencies to better design their funding programs for Tribal Nations “in a manner that better recognizes and supports Tribal sovereignty and self-determination.”
“By revising the Uniform Grants Guidance and issuing the implementation memorandum, the Biden-Harris administration is empowering Americans to find Federal programs that can help them in a time of need,” the OMB blog says. “This will make it easier to apply for Federal funds and track how money is spent. Together, this new guidance will deliver a stronger and more transparent Federal government.”
