Proposed Rule2024-17316
Veterans Legacy Grants Program Improvements
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
August 12, 2024
Issuing agencies
Veterans Affairs Department
Abstract
The Department of Veterans Affairs (VA) proposes to amend its Veterans Legacy Grants Program (VLGP) regulations to align them with regulatory updates to the uniform administrative requirements and other requirements for Federal awards and makes additional revisions to improve the process for administration of the grant program. This rulemaking proposes housekeeping amendments to key terms, legal citations, and definitions and extends timelines for reporting and other grant recipient requirements.
Full Text
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<title>Federal Register, Volume 89 Issue 155 (Monday, August 12, 2024)</title>
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[Federal Register Volume 89, Number 155 (Monday, August 12, 2024)]
[Proposed Rules]
[Pages 65572-65575]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-17316]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 38
RIN 2900-AS13
Veterans Legacy Grants Program Improvements
AGENCY: Department of Veterans Affairs.
ACTION: Proposed rule.
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SUMMARY: The Department of Veterans Affairs (VA) proposes to amend its
Veterans Legacy Grants Program (VLGP) regulations to align them with
regulatory updates to the uniform administrative requirements and other
requirements for Federal awards and makes additional revisions to
improve the process for administration of the grant program. This
rulemaking proposes housekeeping amendments to key terms, legal
citations, and definitions and extends timelines for reporting and
other grant recipient requirements.
DATES: Comments must be received on or before October 11, 2024.
ADDRESSES: Comments must be submitted through <a href="http://www.regulations.gov">www.regulations.gov</a>.
Except as provided below, comments received before the close of the
comment period will be available at <a href="http://www.regulations.gov">www.regulations.gov</a> for public
viewing, inspection, or copying, including any personally identifiable
or confidential business information that is included in a comment. We
post the comments received before the close of the comment period on
<a href="http://www.regulations.gov">www.regulations.gov</a> as soon as possible after they have been received.
VA will not post on <a href="http://Regulations.gov">Regulations.gov</a> public comments that make threats
to individuals or institutions or suggest that the commenter will take
actions to harm an individual. VA encourages individuals not to submit
duplicative comments; however, we will post comments from multiple
unique commenters even if the content is identical or nearly identical
to other comments. Any public comment received after the comment
period's closing date is considered late and will not be considered in
the final rulemaking. In accordance with the Providing Accountability
Through Transparency Act of 2023, a 100 word Plain-Language Summary of
this proposed rule is available at <a href="http://Regulations.gov">Regulations.gov</a>, under RIN 2900-
AS13.
FOR FURTHER INFORMATION CONTACT: John Williams, Senior Grants
Management Specialist, Veterans Legacy Grants Program, National
Cemetery Administration, Department of Veterans Affairs, 810 Vermont
Avenue NW, Washington, DC 20420. Telephone: (314) 348-4073 (this is not
a toll-free number).
SUPPLEMENTARY INFORMATION: VA proposes changes to the regulations
governing Veterans Legacy grants to make housekeeping and clarifying
edits, described below. These revisions would implement various
programmatic improvements for applicants. Additionally, in April 2024,
the Office of Management and Budget (OMB) published revisions to
Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (also known as the Uniform Guidance at
2 CFR part 200). Current VLGP regulations reference outdated 2 CFR part
200 throughout and in this rulemaking we propose changes to reflect
revised sections, where appropriate.
Replacing the Term ``Notice of Funding Availability'' With ``Notice of
Funding Opportunity''
VA proposes to replace the terms ``Notice of Funding Availability''
and ``NOFA'' with ``Notice of Funding Opportunity'' and ``NOFO'',
respectively, in 38 CFR 38.715(k) and throughout the VLGP regulations
to align them with OMB's use and definition of the term ``Notice of
funding opportunity'' in 2 CFR 200.1 and 200.204. Under the revised
definition, the term ``NOFO'' would be defined as ``a formal
announcement of the availability of a Federal funding opportunity
published in the OMB-designated government-wide website <a href="http://Grants.gov">Grants.gov</a>
(<a href="http://www.grants.gov">http://www.grants.gov</a>) in accordance with Sec. 38.725 and 2 CFR 200.1
and 200.204.'' Consistent with the definition in 2 CFR 200.1, a NOFO
would provide information on the award, who is eligible to apply, the
evaluation criteria for selection of an awardee, required components of
an application, and how to submit the application. This change is
intended to reduce the potential for grant recipient confusion due to
discrepancies between terminology used in the VLGP regulations and the
<a href="http://Grants.gov">Grants.gov</a> website.
Replacing the Term ``Grantee'' With ``Recipient''
VA proposes to replace the term ``Grantee'' with ``Recipient'' in
38 CFR 38.715(j) and to make similar changes throughout the VLGP
regulations where applicable. This change would be consistent with
OMB's use of the term ``Recipient'' as the entity that receives a
Federal award directly from a Federal awarding agency. The alignment of
these terms is intended to reduce any confusion for the public
regarding the VLGP. The definition would clarify that ``recipient''
does not include a subrecipient or individual that is a beneficiary of
the award.
Consolidating the Publication Location of the NOFO
OMB uniform grant guidance requires a funding agency to provide
public notice of Federal financial assistance programs. Current 38 CFR
38.725 requires VA to publish funding opportunity announcements in both
the Federal Register and in <a href="http://Grants.gov">Grants.gov</a>. VA proposes to discontinue the
requirement in its current regulation to post NOFOs in the Federal
Register. Because <a href="http://Grants.gov">Grants.gov</a> is an OMB-designated government-wide
website and is recognized as the primary Federal system used for
publication of notices concerning Federal funding opportunities and
financial assistance, see 89 FR 30072 (Apr. 22, 2024), VA proposes to
use <a href="http://Grants.gov">Grants.gov</a> as the primary source of publication for its funding
opportunity announcements. VA believes this change would make the VLGP
award procedures more efficient and would eliminate the duplicative
publication requirement in the Federal Register, which may often result
in additional processing time.
Updating the Terminology of Additional Factors for Deciding
Applications
VA proposes to amend 38 CFR 38.735 (Additional factors for deciding
applications) by updating the terminology in the regulation to align it
with the terminology and process framework established in 2 CFR part
200. Specifically, VA would amend the heading in 38 CFR 38.735(a) from
``Applicant's performance on prior award'' to ``Applicant's history of
performance''. History of performance is a principal factor considered
when evaluating an applicant's application. 2 CFR 200.206(b)(2)(iii).
VA would revise the description for additional clarity and consistency
on this deciding factor. The revised language would state that VA may
consider the applicant's record
[[Page 65573]]
in managing Federal awards, if it is a prior recipient of a Federal
award, including timeliness of compliance with applicable reporting
requirements and conformance to the terms and conditions of any
previous Federal award. The current language is specific to the
applicant's noncompliance with requirements and limits the scope of
evaluation to past written evaluation reports, memoranda on
performance, and completion of prior submissions. The proposed language
would expand VA's ability to review and consider a broader scope of
relevant conduct that may impact an applicant's evaluative rating under
the merit review process.
VA proposes to also amend the heading in 38 CFR 38.735(b) from
``Applicant's fiscal integrity'' to ``Applicant's financial stability''
to align it with 2 CFR 200.206(b)(2)(i), which includes an applicant's
``financial stability'' among the principal evaluative factors to
consider. In addition, VA proposes to remove the reference to 2 CFR
200.205 within the description, which would provide flexibility for the
VLGP regulation if future edits are made to 2 CFR part 200.
Extending the Timeframe for Recipients To Fulfill Reporting
Requirements
VA proposes to amend 38 CFR 38.765 (Recipient reporting
requirements) to allow 120 calendar days after the end date of the
period of performance for a grant recipient to submit a final report.
Currently, the regulation only allows for a grant recipient to submit
this information no later than 60 days after the last day of the grant
period. The amended language would align with the closeout requirements
under 2 CFR 200.344 (Closeout) and provide the grant recipient with the
standard time period to submit required financial, performance, and
other reports after the period of performance has concluded.
Changes to Authority Citations
VA proposes to revise authority citations for the VLGP regulations.
VA proposes to revise the authority citation for Sec. 38.715 by
removing the reference to 2 CFR 200.203, which governs the requirement
to provide public notice of Federal financial assistance programs, and
adding in its place a reference to 2 CFR 200.1, which defines the term
``notice of funding opportunity,'' and 2 CFR 200.204, which sets forth
requirements of notices of funding opportunities. VA proposes to revise
the authority citation for Sec. 38.725 by removing the reference to 2
CFR 200.203 and adding in its place a reference to 2 CFR 200.204.
VA also proposes to revise the authority citation for Sec. 38.730
by removing the reference to 2 CFR 200.203 and adding a reference to 2
CFR 200.208, which sets forth specific conditions for federal grant
awards. VA proposes to revise the authority citation for Sec. 38.735
by removing the reference to 2 CFR 200.203 and adding a reference to 2
CFR 200.206, which provides that the Federal awarding agency will
review risk posed by applicants. VA proposes to revise the authority
citation for Sec. 38.740 by removing the reference to 2 CFR 200.203
and adding a reference to 2 CFR 200.205, which provides that the
Federal awarding agency will have a merit review process for proposals.
VA also proposes to revise the authority citation for Sec. 38.745 by
removing the reference to 2 CFR 200.203 and adding a reference to 2 CFR
200.211, which sets forth information contained in a Federal award. VA
proposes to revise the authority citation for Sec. 38.750 by removing
the reference to 2 CFR 200.203 and adding a reference to 2 CFR 200.204,
which governs notices of funding opportunities generally. VA proposes
to revise the authority citation for Sec. 38.755 by removing the
reference to 2 CFR 200.203 and adding a reference to 2 CFR 200.211,
which sets forth information contained in a Federal award.
VA also proposes to revise the authority citation for Sec. 38.760
by removing the reference to 2 CFR 200.203 and adding a reference to 2
CFR 200.305, which governs Federal payments. VA proposes to revise the
authority citation for Sec. 38.765 by removing the reference to 2 CFR
200.203 and adding a reference to 2 CFR 200.344, which governs closeout
of federal awards. VA proposes to revise the authority citation for
Sec. 38.770 by removing the reference to 2 CFR 200.203 and adding a
reference to 2 CFR 200.339 and 200.410, which sets forth remedies for
noncompliance and addresses collection of unallowable costs,
respectively. VA proposes to revise the authority citation for Sec.
38.775 by removing the reference to 2 CFR 200.203 and adding a
reference to 2 CFR 200.329, which governs monitoring and reporting
program performance. VA also proposes to revise the authority citation
for Sec. 38.780 by including a reference to 2 CFR 200.476, which is
included as part of the regulations governing general cost principles.
VA proposes to revise the authority citation for Sec. 38.785 by
removing the reference to 2 CFR 200.333, which governs fixed amount
subawards, and adding a reference to 2 CFR 200.334-200.338, which
govern record retention and access.
Executive Orders 12866, 13563 and 14094
Executive Order 12866 (Regulatory Planning and Review) directs
agencies to assess the costs and benefits of available regulatory
alternatives and, when regulation is necessary, to select regulatory
approaches that maximize net benefits (including potential economic,
environmental, public health and safety effects, and other advantages;
distributive impacts; and equity). Executive Order 13563 (Improving
Regulation and Regulatory Review) emphasizes the importance of
quantifying both costs and benefits, reducing costs, harmonizing rules,
and promoting flexibility. Executive Order 14094 (Executive Order on
Modernizing Regulatory Review) supplements and reaffirms the
principles, structures, and definitions governing contemporary
regulatory review established in Executive Order 12866 of September 30,
1993 (Regulatory Planning and Review) and Executive Order 13563 of
January 18, 2011 (Improving Regulation and Regulatory Review). The
Office of Information and Regulatory Affairs has determined that this
rulemaking is not a significant regulatory action under Executive Order
12866, as amended by Executive Order 14094. The Regulatory Impact
Analysis associated with this rulemaking can be found as a supporting
document at <a href="http://www.regulations.gov">www.regulations.gov</a>.
Regulatory Flexibility Act
The Secretary hereby certifies that this proposed rule would not
have a significant economic impact on a substantial number of small
entities as they are defined in the Regulatory Flexibility Act, 5
U.S.C. 601-612. The amendments proposed in this rule would likely not
be determinative of whether small entities receive or do not receive a
grant because they would have limited impact on small entities
complying with grant application and reporting requirements. In
addition to some technical revisions to the VLGP regulations, this rule
would merely align those regulations to updates to the uniform
administrative requirements and other requirements for Federal awards
(2 CFR part 200). Therefore, pursuant to 5 U.S.C. 605(b), the initial
and final regulatory flexibility analysis requirements of 5 U.S.C. 603
and 604 do not apply.
Unfunded Mandates
The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C.
1532, that
[[Page 65574]]
agencies prepare an assessment of anticipated costs and benefits before
issuing any rule that may result in the expenditure by State, local,
and tribal governments, in the aggregate, or by the private sector, of
$100 million or more (adjusted annually for inflation) in any one year.
This proposed rule would have no such effect on State, local, and
tribal governments, or on the private sector.
Paperwork Reduction Act
Although this proposed rule contains collection of information
under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C.
3501-3521), there are no provisions associated with this rulemaking
constituting any new collection of information or any revisions to the
existing collection of information. The collections of information for
38 CFR 38.730 are currently approved by the Office of Management and
Budget (OMB) and have been assigned OMB control numbers 4040-0004,
4040-0006, 4040-0007, and 4040-0013.
Assistance Listing
The Assistance Listing number and title for the program affected by
this document are 64.204, Veterans Legacy Grants Program.
List of Subjects in 38 CFR Part 38
Administrative practice and procedure, Cemeteries, Claims, Crime,
Grants programs--veterans, Veterans.
Signing Authority
Denis McDonough, Secretary of Veterans Affairs, approved this
document on July 31, 2024, and authorized the undersigned to sign and
submit the document to the Office of the Federal Register for
publication electronically as an official document of the Department of
Veterans Affairs.
Luvenia Potts,
Regulations Development Coordinator, Office of Regulation Policy &
Management, Office of General Counsel, Department of Veterans Affairs.
For the reasons stated in the preamble, the Department of Veterans
Affairs proposes to amend 38 CFR part 38 as set forth below:
PART 38--NATIONAL CEMETERIES OF THE DEPARTMENT OF VETERANS AFFAIRS
0
1. The authority citation for part 38 continues to read as follows:
Authority: 38 U.S.C. 107, 501, 512, 531, 2306, 2400, 2402,
2403, 2404, 2407, 2408, 2411, 7105.
0
2. Amend Sec. 38.715 by:
0
a. In paragraph (a) introductory text, removing ``Notice of Funding
Availability'' and adding in its place ``Notice of Funding
Opportunity''.
0
b. Removing ``NOFA'' each place it appears and adding in each place
``NOFO''.
0
c. Revising paragraphs (j) and (k) and the authority citation.
The revisions read as follows:
Sec. 38.715 Definitions.
* * * * *
(j) Recipient means an eligible recipient (or entity) that is
awarded a VLGP grant under this part. It does not include a
subrecipient or individual that is a beneficiary of the award.
(k) Notice of Funding Opportunity (NOFO) means a formal
announcement of the availability of a Federal funding opportunity
published in the OMB-designated government-wide website <a href="http://Grants.gov">Grants.gov</a>
(<a href="http://www.grants.gov">http://www.grants.gov</a>) in accordance with Sec. 38.725 and 2 CFR 200.1
and 200.204.
(Authority: 38 U.S.C. 501(d), 2400 note, 2 CFR 200.1 and 200.204))
Sec. 38.720 [Amended]
0
3. Amend Sec. 38.720 by:
0
a. Removing ``grantee'' and ``grantee's'' each place they appear and
adding in each place ``recipient'' and ``recipient's'', respectively.
0
b. Removing ``NOFA'' each place it appears and adding in each place
``NOFO''.
0
4. Amend Sec. 38.725 by:
0
a. Revising the section heading and introductory text.
0
b. In the authority citation, removing ``2 CFR 200.203'' and adding in
its place ``2 CFR 200.204''.
The revisions read as follows:
Sec. 38.725 Notice of Funding Opportunity (NOFO).
When funds are available for VLGP grants, VA will publish a NOFO at
<a href="http://Grants.gov">Grants.gov</a> (<a href="http://www.grants.gov">http://www.grants.gov</a>). The NOFO will identify:
* * * * *
0
5. Amend Sec. 38.730 by:
0
a. Removing ``NOFA'' each place it appears and adding in each place
``NOFO''.
0
b. In the authority citation, removing ``2 CFR 200.203'' and adding in
its place ``2 CFR 200.208''.
0
c. Adding a parenthetical reference at the end of the section.
The revision reads as follows:
Sec. 38.730 Applications.
* * * * *
(The Office of Management and Budget has approved the information
collection provisions in this section under control numbers 4040-
0004, 4040-0006, 4040-0007, and 4040-0013)''.
0
6. Amend Sec. 38.735 by:
0
a. Revising paragraphs (a) and (b).
0
b. In the authority citation, removing ``2 CFR 200.203'' and adding in
its place ``2 CFR 200.206''.
The revisions read as follows:
Sec. 38.735 Additional factors for deciding applications.
(a) Applicant's history of performance. VA may consider the
applicant's record in managing Federal awards, if a prior recipient of
a Federal award, including timeliness of compliance with applicable
reporting requirements and conformance to the terms and conditions of
any previous Federal award.
(b) Applicant's financial stability. Applicants must meet and have
maintained standards of financial stability for participation in
Federal grant programs.
(Authority: 38 U.S.C. 501(d), 2400 note, and 2 CFR 200.206)
Sec. 38.740 [Amended]
0
7. Amend Sec. 38.740 by:
0
a. Removing ``NOFA'' each place it appears and adding in each place
``NOFO''.
0
b. In the authority citation, removing ``2 CFR 200.203'' and adding in
its place ``2 CFR 200.205''.
Sec. 38.745 [Amended]
0
8. Amend Sec. 38.745 by, in the authority citation, removing ``2 CFR
200.203'' and adding in its place ``2 CFR 200.211''.
Sec. 38.750 [Amended]
0
9. Amend Sec. 38.750 by, in the authority citation, removing ``2 CFR
200.203'' and adding in its place ``2 CFR 200.204''.
Sec. 38.755 [Amended]
0
10. Amend Sec. 38.755 by:
0
a. In the introductory text, removing ``grantee'' and adding in its
place ``recipient''.
0
b. In the authority citation, removing ``2 CFR 200.203'' and adding in
its place ``2 CFR 200.211''.
0
11. Amend Sec. 38.760 by:
0
a. Revising paragraph (a).
0
b. In paragraph (b), removing ``NOFA'' and adding in its place
``NOFO''.
0
c. In the authority citation, removing ``2 CFR 200.203'' and adding in
its place ``2 CFR 200.305''.
The revision reads as follows:
Sec. 38.760 Payments under the grant.
(a) Recipients are to be paid in accordance with 2 CFR 200.305.
* * * * *
0
12. Amend Sec. 38.765 by:
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0
a. Revising the section heading and paragraph (a).
0
b. In the authority citation, removing ``2 CFR 200.203'' and adding in
its place ``2 CFR 200.344''.
Sec. 38.765 Recipient reporting requirements.
(a) Final report. The recipient must submit to VA, no later than
120 calendar days after the end date of the period of performance, all
financial, performance, and other reports as required by the terms and
conditions of the Federal award.
* * * * *
0
13. Amend Sec. 38.770 by:
0
a. Removing ``grantee'' each place it appears and adding in each place
``recipient''.
0
b. Revising the authority citation.
The revision reads as follows:
Sec. 38.770 Recovery of funds by VA.
* * * * *
(Authority: 38 U.S.C. 501(d), 2400 note, 2 CFR 200.339 and 200.410)
Sec. 38.775 [Amended]
0
14. Amend Sec. 38.775 by:
0
a. Removing ``grantee'' each place it appears and adding in each place
``recipient''.
0
b. In the authority citation, removing ``2 CFR 200.203'' and adding in
its place ``2 CFR 200.329''.
Sec. 38.780 [Amended]
0
15. Amend Sec. 38.780 by:
0
a. In paragraph (b), removing ``grantees'' and ``Grantees'' each place
they appear and adding in each place ``recipients'' and ``Recipients'',
respectively.
0
b. Removing ``2 CFR 200.400-200.475'' each place it appears and adding
in each place ``2 CFR 200.400-200.476''.
0
16. Revise Sec. 38.785 to read as follows:
Sec. 38.785 Record retention and access.
Recipients must ensure that records are maintained and accessible
in accordance with 2 CFR 200.334-200.338. Recipients must produce such
records at VA's request.
(Authority: 38 U.S.C. 501(d), 2400 note, and 2 CFR 200.334-200.338)
[FR Doc. 2024-17316 Filed 8-9-24; 8:45 am]
BILLING CODE 8320-01-P
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