As federal grant recipients are aware, the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) underwent a significant review and revision this past year, culminating in revisions to 2 C.F.R. Part 200 published by the Office of Management and Budget (“OMB”) on April 22, 2024 (89 Fed. Reg. 30046).

The updated Uniform Guidance terms incorporated as compliance requirements for federal awards are, per the final OMB rule, to be implemented by awarding agencies no later than October 1, 2024, for all awards made thereafter. Awarding agencies were also provided flexibility to implement the revised Uniform Guidance sooner.

As we near October 1, 2024, we have received many questions about implementation. Unfortunately, in following agency updates and federal register notices relating to 2 C.F.R. Part 200, we have only observed clear implementation guidance from the following agencies:

• U.S. Agency for International Development (“USAID”) (via final rule at 89 Fed. Reg. 63073)
• U.S. Department of Agriculture (“USDA”) (via final rule at 89 Fed. Reg. 68321)
• U.S. Department of Education (“ED”) (via July 2024 FAQ document)
• Gulf Coast Ecosystem Restoration Council (via final rule at 89 Fed. Reg. 75445)[1]
• National Aeronautics and Space Administration (“NASA”) (via final rule at 89 Fed. Reg. 75947)[2]

A memorandum issued by OMB in conjunction with the final guidance directed federal awarding agencies to submit implementation plans to OMB by no later than May 15, 2024 (Memorandum M-24-11).  Unfortunately, those plans have not been made public.

Most notably, we have yet to see how the Department of Health and Human Services (“HHS”) will implement the updates, a matter of significance because HHS: (1) is the largest federal grant-making agency and serves as the federally designated Quality Service Management Organization (“QSMO”) for grants management; (2) has, since the advent of the Uniform Guidance, implemented its version through separate regulations at 45 C.F.R. Part 75; and (3) never adopted the last set of substantial revisions, implemented by OMB in 2020.

We welcome any information from industry on the above topic and will be happy to share such information for the benefit of all recipients and subrecipients managing federal awards.  Please feel free to send information to Feldesman Partner Scott S. Sheffler.

For inquiries related to the updated Uniform Guidance or other federal grants matters, please contact Partner Scott S. Sheffler (ssheffler@feldesman.com) or Managing Partner Ted Waters (ewaters@feldesman.com).

[1]This client alert was updated on September 16, 2024 to add reference to the Gulf Coast Ecosystem Restoration Council’s implementation. The Gulf Coast Ecosystem Restoration Council’s implementation notice was issued the same date.

[2]This client alert was updated on September 17, 2024 to add reference to the National Aeronautics and Space Administration’s (“NASA”) implementation. NASA’s implementation notice was issued the same date.