The move would allow federal grant recipients to donate money and equipment to coronavirus relief efforts.
The Trump administration is allowing agencies to redirect federal grants and other financial assistance awards to tackle the novel coronavirus pandemic.
Under an exception ordered by the Office of Management and Budget, agencies can allow grant recipients to donate medical equipment and supplies purchased with federal funds to hospitals and other local entities serving the public in responding to the COVID-19 outbreak. The exception also applies to labor and contract services funded by federal agencies.
OMB’s move aims to make it easier for organizations that receive federal funds, which usually are granted with strict limitations, to donate medicine, personal protective equipment and other needed items to those on the pandemic’s front lines.
Agencies must work with their legal offices to ensure compliance with applicable laws and should document all changes regarding repurposed funds, items or labor. Michael Rigas, OMB’s acting deputy director for management, said agencies “must advise recipients that they should not assume additional funds will be available should the donations or repurposing of funds result in any type of shortage.”
OMB previously made it easier for entities to apply for, receive and extend federal grants. It also provided administrative relief, such as financial management and audit requirements, for award recipients.