Grants CAP Goal: Proposed Changes to Title 2 of the Code of Federal Regulations (2 CFR) Now Open for Public Comments
Original Press Release Published on January 21, 2020
OMB Releases Revisions To Title 2 of the code of Federal Regulations, beginning a foundational shift to results-oriented accountability for federal grants.
Proposals include new requirements to manage performance of federal grants, implement standards in accordance with newly signed GREAT ACT, and increase cost transparency
WASHINGTON, D.C. Today, the White House Office of Management and Budget released a proposal to make major revisions to Title 2 of the Code of Federal Regulations (CFR) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Title 2 of the CFR, including 2 CFR 200 (Uniform Guidance) is the single comprehensive place in the CFR where OMB policy guidance on Federal grants and other types of agreements resides.
The 2 CFR revision reflects the foundational shift outlined in the President’s Management Agenda (PMA) to set the stage for enhanced result-oriented accountability for grants. This guidance is the beginning of the Administration’s pivot toward actions geared to focus on improved stewardship and ensuring that the American people are receiving value for funds spent on grant programs.
The proposed revisions to 2 CFR amplify and institutionalize the vision of the President’s Management Agenda (PMA), implement new statutory requirements and reduce burden to recipients by clarifying existing rules. The proposed revisions were made with the potential for more agile future revisions.
The revisions focus on the importance of program design with clear goals and objectives to achieve intended results. In addition, the proposed guidance clarifies that merit reviews must be conducted with the objective of selecting recipients that are most likely to be successful in delivering results based on program objectives outlined in the program design. In alignment with the PMA, there is also a focus on standardization of terminology and implementation of standard data elements. The revisions also emphasize transparency, to include indirect cost rate agreements posted on a public website and aligning with the Digital Accountability and Transparency Act (DATA Act) by expanding the types of Federal financial assistance to which they apply beyond grants and cooperative agreements to include loans, insurance contributions, and direct appropriations.
“OMB thanks the representatives from several Federal grantmaking agencies who helped develop proposed revisions to 2 CFR. OMB is committed to hearing from key stakeholders as we look for bold ways to improve results-oriented accountability for grants.” - Margaret Weichert, Deputy Director for Management, Office of Management and Budget
More information about the proposed revisions and an OMB public listening session will be posted to Performance.gov.
These proposals were drafted under the direction of the Chief Financial Officers Council (CFOC). OMB looks forward to engaging in a dialogue with key stakeholders over the 60-day comment period and working closely with our interagency partners on reviewing comments received later this spring.
Public comments due March 23, 2020
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For additional information about the President’s Management Agenda and Results-Oriented Accountability for Grants, please visit the Grants CAP Goal Page.