Rule2022-21500
USAID Grant Regulations: Removing the Program Income Restriction on For-Profit Entities
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 4, 2022
Effective
November 3, 2022
Issuing agencies
Agency for International Development
Abstract
The U.S. Agency for International Development (USAID) is issuing a final rule amending its grant regulations to remove a prohibition on for-profit entities from adding program income to a Federal award. This change allows any USAID assistance recipient-- whether nonprofit or for-profit--to add program income earned by the recipient to the Federal award. This will align USAID's approach to program income with other Federal agencies.
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 191 (Tuesday, October 4, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 191 (Tuesday, October 4, 2022)]
[Rules and Regulations]
[Page 60059]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-21500]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 87, No. 191 / Tuesday, October 4, 2022 /
Rules and Regulations
[[Page 60059]]
AGENCY FOR INTERNATIONAL DEVELOPMENT
2 CFR Part 700
RIN 0412-AB01
USAID Grant Regulations: Removing the Program Income Restriction
on For-Profit Entities
AGENCY: U.S. Agency for International Development.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The U.S. Agency for International Development (USAID) is
issuing a final rule amending its grant regulations to remove a
prohibition on for-profit entities from adding program income to a
Federal award. This change allows any USAID assistance recipient--
whether nonprofit or for-profit--to add program income earned by the
recipient to the Federal award. This will align USAID's approach to
program income with other Federal agencies.
DATES: Effective November 3, 2022.
FOR FURTHER INFORMATION CONTACT: Lyudmila Bond, USAID/M/OAA/P, 202-285-
8319, or <a href="/cdn-cgi/l/email-protection#53233c3f3a302a3e323a3f313c2b132620323a377d343c25"><span class="__cf_email__" data-cfemail="f4849b989d978d99959d98969b8cb48187959d90da939b82">[email protected]</span></a> for clarification of content or
information pertaining to status or publication schedules. All
communications regarding this rule must cite RIN No. 0412-AB01.
SUPPLEMENTARY INFORMATION:
A. Background
USAID published a proposed rule on June 17, 2022 (87 FR 36411), to
amend 2 CFR part 700 to allow any USAID assistance recipient--whether
nonprofit or for-profit--to use the ``addition method'' for managing
program income under a Federal award, aligning USAID's approach to
program income with the U.S. Government-wide approach. The public
comment period closed on August 16, 2022.
B. Discussion and Analysis
Only one respondent submitted a public comment in response to the
proposed rule. USAID reviewed the comment, but it was outside of the
scope of the rule. As a result, no changes were made to the final rule.
C. Regulatory Considerations and Determinations
1. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action and, therefore, was not
subject to review under section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993. This rule is not a major rule
under 5 U.S.C. 804.
2. Regulatory Flexibility Act
The rule will not have an impact on a substantial number of small
entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C.
601, et seq. Therefore, an Initial Regulatory Flexibility Analysis has
not been performed.
3. Paperwork Reduction Act
The rule does not establish a new collection of information that
requires the approval of the Office of Management and Budget under the
Paperwork Reduction Act (44 U.S.C. chapter 35).
List of Subjects in 2 CFR Part 700
Grant programs, Grants administration.
For the reasons discussed in the preamble, USAID amends 2 CFR part
700 as set forth below:
PART 700--UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND
AUDIT REQUIREMENTS FOR FEDERAL AWARDS
0
1. The authority citation for 2 CFR part 700 continues to read as
follows:
Authority: Sec. 621, Public Law 87-195, 75 Stat 445, (22 U.S.C.
2381) as amended, E.O. 12163, Sept 29, 1979, 44 FR 56673; 2 CFR 1979
Comp., p. 435.
Sec. 700.13 [Amended]
0
2. Amend Sec. 700.13 by removing and reserving paragraph (a)(2).
Mark Anthony Walther,
Chief Acquisition Officer.
[FR Doc. 2022-21500 Filed 10-3-22; 8:45 am]
BILLING CODE P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on October 4, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.