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APRIL 04, 2024
The Biden-Harris Administration Finalizes Guidance to Make Grants More Accessible and Transparent for Families, Communities, and Small Businesses
REVISED OMB GUIDANCE REDUCES BURDENS ON GRANT RECIPIENTS AND INCREASES TRANSPARENCY WITH RESPECT TO MORE THAN $1.2 TRILLION IN ANNUAL FEDERAL FINANCIAL ASSISTANCE.
Today, the Biden-Harris Administration is announcing substantial updates to the Office of Management and Budget’s Guidance for Federal Financial Assistance, which sets the foundational requirements for agencies in making grants and providing other forms of Federal financial assistance, such as cooperative agreements and loans.
Each year, the Federal government provides more than $1.2 trillion in funding for thousands of programs through grants and other forms of financial assistance. From life-saving health care and after-school programs that keep our children safe, to improved critical infrastructure and research and development that helps our industries remain world leaders in health, science, and technology, the Federal government’s investments directly improve the daily lives of every American.
These updates to what is known as the Uniform Grants Guidance will streamline and clarify requirements for Federal funding. This will mean that recipients can invest in mission outcomes rather than in administrative overhead, while ensuring Federal agencies can effectively safeguard taxpayer resources. These changes will allow agencies and recipients of Federal funds to focus more time and money on delivering meaningful results for the American people.
The updated Uniform Grants Guidance also instructs agencies to make grant announcements as clear and concise as possible. This will make it easier for eligible recipients, including in underserved communities, to access critical funding. In addition, the updated Guidance gives recipients confidence that they can use Federal funds to invest in the continuous improvement of their programs by making clear that funding be used to support quality evaluation, data gathering and analysis, and community engagement. It also instructs agencies to engage affected communities – including nonprofit organizations, labor unions, and Tribal governments –as well as requiring recipients to use responsible contractors. Finally, the guidance materially reduces burden on recipients, as outlined in more detail below.
This is the most substantial revision to the Uniform Grants Guidance since it went into effect ten years ago and reflects significant input from over 50 Federal agencies as well as states, local governments, Tribal organizations, nonprofits, colleges and universities, and companies. In addition, the revision process included the review of more than 3,200 public comments in order to understand pain points and pinpoint inconsistencies in different agencies’ implementation of the previous version of the Guidance.
To accompany the finalized revisions to the Uniform Grants Guidance, OMB is also publishing an implementation memorandum that will direct agencies to put the revisions into effect by October 1, 2024, and provide additional tools to strengthen and streamline the administration of Federal financial assistance.
The finalized Uniform Grants Guidance will:
- Reduce unnecessary compliance costs. The Guidance will modify numerous requirements to simplify compliance. For example, the updates reduce the number of additional “prior approvals” that recipients must receive from Federal agencies for spending money on specific activities. The Guidance also clarifies ambiguous terms so that recipients can comply with the same requirement in the same way, regardless of funding source. It also increases focus on the importance of data and evaluation in program development and implementation.
- Remove barriers to entry. High administrative costs mean that some worthy projects never seek or obtain funding to begin with and never get off the ground. Among many changes to help remedy this, the guidance will result in revised Notices of Funding Opportunities (NOFOs) to make it easier for non-experts and smaller organizations to apply for Federal funding. The Guidance includes a complete revision of the NOFO requirements for Federal agencies and underscores the importance of clearly communicating in plain language (including with a new Executive Summary section) only the essential information that is needed for applicants to understand program objectives and application requirements. Further, these revisions ensure that grant announcements are accessible to a wide group of eligible applicants, including in underserved communities, and offer pre-award technical assistance.
- Ensure assistance serves intended communities. Communities most in need of assistance are often least able to navigate the complex processes of applying for grant opportunities. Eliminating the requirement to use English language in notices, applications, and reporting will make grants more accessible to everyone. This is just one example of how the updated guidance will allow for more equitable access across communities.
In addition to setting an implementation deadline of October 1, 2024, for the Uniform Grants Guidance, OMB’s implementation memorandum provides agencies direction on how to strengthen the whole lifecycle of Federal financial assistance. These measures include:
- Instructing agencies to further simplify their NOFOs. 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.
- Strengthening the Federal Program Inventory (FPI). The FPI is a new comprehensive, searchable tool with critical information about all Federal programs that provide grants, loans, or direct payments to individuals, governments, firms or other organizations. Agencies will be required to improve the official descriptions of their programs, or Assistance Listings, which feed the inventory.
- Supporting programs for Tribal nations. Consistent with Executive Order 14112, the memorandum relays ways for grants.
The White House
Americans invest more than a trillion dollars each year in grants and other Federal financial assistance. 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. 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.
Please copy and paste the grant proposal templates and guidance below.
Grant Proposal Templates and Guidance
1. Cover Page
• Title: Grant Proposal for [Project Name]
• Name of Your Organization
• Contact Information (Address, Phone, Email)
• Date of Submission
2. Executive Summary
• Brief overview of your organization and its mission.
• Summary of the proposed project and its goals.
• Amount of funding requested.
3. Introduction
• Background of your organization and its connection to the community.
• Explanation of how your project aligns with the Biden-Harris Administration's initiative to support African American families, communities, and small businesses.
4. Statement of Need
• Detailed description of the specific challenges faced by African
American communities that your project aims to address.
• Statistics or examples to illustrate the importance and urgency of addressing these needs.
5. Project Goals and Objectives
• Goals: Broad, long-term aims of your project.
• Objectives: Specific, measurable outcomes you expect to achieve.
6. Project Design and Implementation
• Description of the activities your project will undertake to achieve its goals.
• Timeline: Proposed schedule for implementation.
• Partnerships: Any collaborations with other organizations or stakeholders.
7. Budget
• Detailed breakdown of expenses:
◦ Personnel costs
◦ Supplies and materials
◦ Travel and transportation
◦ Other relevant expenses
• Justification for each budget item.
8. Evaluation Plan
• Methods for evaluating the success of your project.
• Metrics and indicators to measure progress and impact on African
American families, communities, and small businesses.
9. Sustainability and Future Funding
• Plan for sustaining the benefits of your project beyond the grant period.
• Strategies for securing future funding or support.
10. Organizational Capacity
• Description of your organization’s capabilities and experience in implementing similar projects.
• Key personnel and their roles in the project.
11. Conclusion
• Summary of why funding your project is crucial for supporting African American communities.
• Gratitude for considering your proposal and supporting the Biden-Harris Administration's initiative.
12. Attachments
• Additional documents that support your proposal:
◦ IRS determination letter (if applicable)
◦ Letters of support from community partners or stakeholders
◦ Project designs or blueprints (if applicable)
13. Contact Information
• Name and contact details of the primary person to contact regarding the proposal.
Ensure your proposal is clear, compelling, and directly addresses the priorities outlined by the Biden-Harris Administration for grants aimed at benefiting African American families, communities, and small businesses.
Here’s a simplified guide to writing a grant proposal that aligns with the Biden-Harris Administration’s initiatives to make grants more accessible and transparent for families, communities, and small businesses:
Grant Proposal Guide: Supporting Families, Communities, and Small Businesses
1. Introduction
• Start by introducing your organization and what you aim to achieve with your project.• Explain how your project supports families, communities, or small businesses, especially in African American communities.
2. Project Goals
• Clearly state your project’s main objectives. What do you want to accomplish?• Link these goals to how they will benefit families, communities, or small businesses.
3. Project Activities
• Describe the specific activities your project will involve. What will you do to achieve your goals?• Outline a timeline for when each activity will happen.
4. Budget
• Break down the costs of your project:• How much will go to paying people involved?
• What expenses are needed for supplies, equipment, or other materials?
• Are there any costs for travel or other necessary expenses?
• Explain why each expense is necessary to achieve your project’s goals.
5. Impact and Benefits
• Describe how your project will make a positive impact. How will it help families, communities, or small businesses? • Provide examples or stories that illustrate the benefits your project will bring.6. Evaluation Plan
• Explain how you will measure the success of your project. What indicators will show that it’s working?• Outline how you will gather feedback from the people benefiting from your project.
7. Sustainability
• Discuss how your project will continue to benefit families, communities, or small businesses after the grant period ends.• Are there plans to secure additional funding or support to sustain your project’s impact?
8. Conclusion
• Summarize why your project is important and why it should receive funding under the Biden-Harris Administration’s guidelines.• Thank the reviewers for considering your proposal.
9. Attachments
• Include any additional documents that support your proposal, such as letters of support from community members or partners.10. Contact Information
• Provide contact details for someone who can answer questions about your proposal. By following these steps, you can create a clear and compelling grant proposal that aligns with the Biden-Harris Administration’s efforts to support families, communities, and small businesses, particularly those in African American communities. Good luck with your grant proposal!OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
THE DIRECTOR
April 4, 2024
M-24-11
MEMORANDUM FOR HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES
FROM: Shalanda D. Young
SUBJECT: Reducing Burden in the Administration of Federal Financial Assistance
The Biden-Harris Administration is making it possible for recipients of Federal funding
to focus more on the people they serve and to deliver results for their communities. This
Memorandum builds on previous efforts by providing direction to Federal agencies on improving
the management of Federal financial assistance to ensure the consistent implementation of
Federal financial assistance policy.
accessible the processes, systems, and data standards associated with Federal financial assistance
to reduce burden on Federal agencies, applicants, and recipients. The American people are our
customers and their experiences are central to the design of products and processes to deliver
services. Government must also work to deliver services more equitably and effectively,
especially for those who have been historically underserved.
published revised guidance to Federal agencies on administering and managing Federal awards
in Title 2 of the Code of Federal Regulations (CFR). In addition, this memorandum describes a
Government-wide approach that will reduce burden for agencies and recipients, ensure
1 As used in this memorandum, the terms “Federal agency” and “agency” have the same meaning
as “Federal agency” in 2 CFR 200.1, and the term “Federal financial assistance” has the meaning
set forth in 2 CFR 200.1.2 See, e.g., Executive Order (E.O.) 13985, Advancing Racial Equity and Support for
Experience and Service Delivery to Rebuild Trust in Government; E.O. 14091, Further
Advancing Racial Equity and Support for Underserved Communities through the Federal
Government; E.O. 14112, Reforming Federal Funding and Support for Tribal Nations To Better
Embrace Our Trust Responsibilities and Promote the Next Era of Tribal Self-Determination.
Presidential Memorandum of January 27, 2017, on Restoring Trust in Government Through
Scientific Integrity and Evidence-Based Policymaking. 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.
I. Implementation of Title 2 of the CFR
The lifecycle of Federal financial assistance must begin with clear and concise guidance
on administration and management of Federal awards that is consistently implemented across all
Federal agencies. To achieve that, the Administration conducted a comprehensive process to
revise and strengthen Title 2 of the CFR, which includes the administrative requirements, cost
principles, and audit requirements for Federal awards. This process included multiple
opportunities for the public to provide feedback on potential and proposed policy revisions
including on opportunities to reduce administrative burdens for applicants and recipients. See 88
FR 8480 (Feb. 9, 2023) (request for information); 88 FR 69390 (Oct. 5, 2023) (notice of
proposed guidance). As a result of this effort, OMB has published revisions to Title 2 of the
CFR (2024 Revisions).
These revisions will improve stewardship of Federal funds, promote equitable access to
programs and services, reduce administrative burden for agencies, applicants, and recipients, and
facilitate streamlined and effective oversight and implementation of Federal programs. Among
other things, the revisions eliminate several prior approval requirements, increase multiple
thresholds that trigger additional requirements, and clarify requirements for agencies and
recipients.
For recipients to realize the maximum benefit of the 2024 Revisions, Federal agencies
must implement them quickly and consistently. See 2 CFR 200.106. Consistent with 2 CFR
200.106 and applicable law, Federal agencies must take appropriate steps to ensure the 2024
Revisions are effective for all Federal awards issued on or after October 1, 2024. Agencies
should ensure that Federal award terms and conditions, notices of funding opportunities
(NOFOs), internal agency policies and procedures, agency templates, and another program
documents reflect the 2024 Revisions for those Federal awards.
By May 15, 2024, all Federal agencies must submit to OMB their plan for implementing
the 2024 Revisions.
II. Implementation of Pre-Award Efficiencies to Promote Transparency and Equity
Federal financial assistance is at the core of how the Federal Government delivers
services. Even though Federal financial assistance enables vital services to be delivered in
communities across the country, identifying opportunities and applying for assistance can
sometimes be a source of burden for applicants. Administrative processes that are difficult and
time-consuming are obstacles to getting critical funding to intended destinations, especially
2. underserved communities.
Federal programs, the availability of funding, and how to apply for and receive those resources.
In keeping with this Administration’s commitment to honoring our trust and treaty
obligations to Tribal Nations, Federal agencies should design and administer Federal funding and
support programs for Tribal Nations in a manner that better recognizes and supports Tribal
sovereignty and self-determination, as consistent with applicable law and to the extent
practicable. 4 Section 5 of E. O. 14112 directs Federal agencies to increase the accessibility, equity,
flexibility, and utility of Federal funding and support programs for Tribal Nations. As most
relevant here, E.O. 14112 specifies that agencies shall design, revise, provide waivers for, and
otherwise administer Federal funding and support programs for Tribal Nations to achieve the
following objectives, to the maximum extent practicable, appropriate, and consistent with
applicable law: i. promotes compacting, contracting, co-management, co-stewardship, and other
vii. respect Tribal data sovereignty and recognize the importance of Indigenous Knowledge by, when
On February 15, 2024, OMB launched the Federal Program Inventory (FPI)—a new
comprehensive, searchable tool with critical information about all domestic Federal financial
assistance programs. The FPI makes it easier for applicants and potential recipients to find
programs, ensures the effective stewardship of taxpayer funds, and further increases Government
transparency. The FPI uses Assistance Listings, which are the comprehensive Government-wide
source of Federal financial assistance program information produced by the executive branch.5
The FPI connects program and performance information from program Assistance Listings to
spending information required by the Digital Accountability and Transparency Act of 2014.6
OMB is committed to continuing to improve the FPI by working with Federal agencies to
add information to each listing to make the FPI more comprehensive, useful, and consistent with
other sources. To that end, by June 1, 2024, agencies must identify the Assistance Listings
associated with each program or activity reported under the Payment Integrity Information Act
(PIIA) of 20197 and submit to OMB a crosswalk of Assistance Listings and program or activity
names used when fulfilling the requirements under PIIA.
Further, to the maximum extent practicable, for each newly authorized Federal financial
assistance program, Federal agencies must create and maintain one Assistance Listing. For all
existing Assistance Listings, agencies must identify where multiple programs have historically
been included in a single Assistance Listing, and, where appropriate and in consultation with
relevant congressional committees and stakeholders, create a separate Assistance Listing for each program.
require extensive engagement with OMB and congressional committees and potential changes to
agency systems. To help this transition, by November 15, 2024, agencies must complete an
5 2 C.F.R. 200.203.
6 Pub. L. 113–101.
7 Pub. L. 116–117.
establishing a single Assistance Listing, where appropriate, for each program.
Notices of Funding Opportunities (NOFOs)
In recent years, the annual paperwork burden imposed by Federal agencies on the public
has been in excess of nine billion hours. 8That burden presents obstacles for too many otherwise
qualified potential recipients of Federal financial assistance and undermines Federal programs.
To combat that burden, beginning today, Federal agencies must design and execute a plan
to increase the accessibility, readability, clarity, and design of their NOFOs for new discretionary
assistance programs where Federal awards are selected on a competitive basis. To improve the
applicant experience, Federal agencies must announce specific NOFOs for Federal financial
assistance that will be openly competed. NOFOs should be limited in length and only request
information necessary for effective communication of program objectives. In particular, Federal
to prepare individuals for employment, providing professional development and training
opportunities, or strengthening U.S. infrastructure, particularly in underserved communities.
Using the Council on Federal Financial Assistance (COFFA)-developed template,
Federal agencies must conduct an assessment to identify the NOFOs that will be prioritized for
simplification in fiscal year (FY) 2025. The template will include several factors, such as
statutory complexity, and prioritize for simplification those NOFOs that have higher numbers of
applicants, make frequent awards, make a large number of awards, and have average award
amounts that would be appropriate for limited capacity or first-time applicants, such as those
between $1 million and $50 million. Based on the prioritization assessment, Federal agencies
existing NOFOs until all NOFOs have been simplified according to guidelines provided by
COFFA. Federal agencies should write NOFOs in plain language to reduce complexity and
improve accessibility. To that end, agencies should ensure that NOFOs are written at a reading
level that is accessible to the potential applicants of the relevant grant. As a general guideline for
existing NOFOs, agencies should aim to reduce word count by 25 percent over the previously
issued version. Agencies should also eliminate unnecessary provisions, and move content that is
not directly related to the core activities to be performed under the Federal award (such as any
assurances) to appendices on linked webpages. Agencies should also consider how translating
NOFOs into other languages may ensure people with limited English proficiency c
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