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Posted by on Sep 30, 2013

Grants Management Contingency Plans During a Government Shutdown


Unless Congress acts by midnight, the federal government will shut down. In preparation for a potential shutdown, OMB required all agencies to develop and publish contingency plans.  Each agency’s contingency plan can be found here.

 A government shutdown will affect grant recipients. While work on most grant programs may continue, agency staff will be unavailable to provide oversight, technical assistance, or prior approval to recipients. Most recipients will also be able to draw down funds, but payment processing will be halted.  “High risk” recipients may be prevented from drawing down funds.

 While no new grant awards will be made during a government shutdown, will continue normal operations.  Application deadlines will most likely be unaffected by a shutdown, but applicants should double-check funding announcements to determine any changes to close dates. Applications submitted through during a shutdown will be processed and stored until agency officials return to work.

Listed below is information from agency contingency plans as it pertains to grants management. Recipients should contact their awarding agencies as soon as possible to address specific problems before a government shutdown occurs.

 U.S. Department of Agriculture

  • Foreign Agricultural Service: Most FAS assistance will continue to operate under normal circumstances.
  • Rural Development: No new grant awards will be made.

U.S. Department of Education

  • Formula funding under Titles I and II will continue as normal.

U.S. Department of Health and Human Services

  • No awards will be made.
  • Most agencies will not be able to monitor grants.
  • Payments for some grant programs will be suspended.

U.S. Department of Homeland Security

  • Oversight, accounting, administration, payment processing, and other grant management activities will not continue.
  • Performance on grant projects may continue, but recipients should be aware that program assistance will not be available.

U.S. Department of Housing and Urban Development

  • Staff will monitor payment system to ensure recipients can draw down funds.
  • Recipients will not be able to receive additional CDBG funds.
  • The Homeless Assistance Program will continue to operate as normal.

U.S. Department of the Interior

  • Mandatory grants under the Office of Insular Affairs will continue.

U.S. Department of Justice

  • OJP, COPS, and the Office of Violence Against Women are funded from no-year funds, and operations will continue as normal.

U.S. Department of State

  • No new awards will be made.

U.S. Department of Transportation

  • No new grants will be made.
  • Some grant programs will be suspended during a shutdown.

Corporation for National and Community Service

  • “For the most part, previously awarded grants and cooperative agreements will not be affected.”
  • Recipients should be able to draw down funds from the Payment Management System.
  • There will be no CNCS oversight or assistance provided to recipients.
  • No new grants will be awarded.

Denali Commission

  • No new grants or cooperative agreements will be awarded.

Environmental Protection Agency

  • Grant projects can continue to operate.
  • EPA staff will not be available to make payments until a shutdown ends.
  • Most recipients should be able to draw down funds.
  • Recipients must stop work on grants if they require EPA involvement or prior approval.
  • Recipients should document allowable costs related to a work stoppage.

Institute of Museum and Library Services

  • No new grants will be awarded.
  • Applications will not be accepted.
  • Payments will not be processed.
  • Previously scheduled grant review panels may only meet for the first day of a shutdown.

 National Science Foundation

  • Work on projects may continue as long as it does not require NSF staff intervention.
  • No payments will be made to recipients.

 To stay informed of the latest developments, follow @Mgmt_Concepts on Twitter.

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