The document from the Office of Management and Budget (OMB), dated June 2021, provides a comprehensive overview of federal grant management, focusing on recent legislative, regulatory, and administrative changes. It traces the substantial growth in federal grant funding from 1960 to 2020 and highlights significant federal responses such as the American Rescue Plan Act of 2021 (ARPA), which allocated $1.9 trillion for COVID-19 relief across various sectors including health, education, unemployment insurance, and support for individuals, states, and local governments. The document underscores the importance of advancing racial equity, restoring trust in government through scientific integrity, and promoting accountability and transparency in the stewardship of federal resources.
Key recent policy and regulatory updates are detailed, including revisions to Title 2 of the Code of Federal Regulations (2 CFR), which emphasize results-oriented accountability, standardize grant management practices, ensure transparent indirect cost rates, and align with statutory and authoritative requirements such as the Federal Acquisition Regulation and NDAAs. Special attention is given to OMB memoranda, particularly M-21-20, which introduces equity-oriented results and flexibilities designed to reduce administrative burdens during pandemic recovery efforts. The document also details the federal grants lifecycle, stresses the importance of performance management, and provides resources and contact information to assist agencies in implementing and complying with these changes. Overall, the guidance aims to enhance efficiency, accountability, and inclusion in the federal grants process.
